Monthly Archives:' August 2015

New Texas Account Disclosure Web Seminar

Join the Independent Bankers Association of Texas for a complimentary web seminar about the ins and outs of the new Texas account disclosure in Senate Bill 1791, presented by IBAT General Counsel and Kennedy Sutherland LLP attorney, Karen M. Neeley. The web seminar will discuss what is required, what is not required and give practical advice on how to implement this disclosure at your bank.

Please plan to attend this informative program on Thursday, September 3, 10 -11 a.m. During the webinar, you will have the opportunity to submit questions online.

Register here

S.B. 1791, sponsored by Sen. Rodney Ellis (TX-13), requires financial institutions to notify people about the option to create a “pay on death” account, a type of bank account that allows ownership of the account to pass to beneficiaries when the account holder dies without the need for probate administration. The legislation was signed by Governor Abbott on May 22, 2015 and became effective September 1st.

Neeley to Present at Financial Institutions Forum

Karen M. Neeley, Senior Attorney at Kennedy Sutherland LLP, will present at the Padgett Stratemann’s 2015 Financial Institutions Forum on Wednesday, August 26th, 2015 at the Club at Sonterra in San Antonio, Texas. Neeley will cover “Emerging Hot Topics in Regulatory Compliance” from 10:45 – 11:30 am. Specifically, Neeley will touch on Employment Issues, Operations Issues, ADA, BSA/AML, CFPB and UDAP.

8:00 • 9:00           Registration and Continental Breakfast

9:00 • 9:15           Seminar Overview and Padgett, Stratemann & Co., L.L.P Update
Kathleen Fields, CPA, PS&Co.

9:15 • 9:45           Taxes After Tangible Asset Regulations
Lisa Contreras, CPA, PS&Co.

9:45 • 10:30         A Day in the Life of Today’s Community Banker
Chris Williston, President & CEO, Independent Bankers Association of Texas

10:30 • 10:45        Break

10:45 • 11:30        Emerging Hot Topics in Regulatory Compliance
Karen M. Neeley, Senior Counsel, Dykema Cox Smith

11:30 • 12:00        Compliance Update
Annette Evans, CPA, CRCM, PS&Co.

12:00 • 1:00          Lunch

1:00 • 1:45            What is Your Bank Worth?
Curtis Carpenter, Principal & Head of Investment Banking
Sheshunoff & Co. Investment Banking

1:45 • 2:30            Banking System Performance and Regulatory Hot Topics
Kurt Purdam, Dir. of Bank & Trust Supervision, Texas Dept. of Banking

2:30 • 2:45            Break

2:45 • 3:15            It’s a New HR World
Connie Collins, SPHR, SHRM-SCP, PI, PS&Co.

3:15 • 4:00            Accounting Update
Steven Griffith, CPA, CRCM, PS&Co.

Register Now

Karen M. Neeley Joins the Firm

Kennedy Sutherland LLP is pleased to announce Karen M. Neeley has joined the Firm, effective Augusta 24, 2015, as Senior Attorney and will establish an Austin, Texas office. Karen has provided legal services to community banks throughout Texas and beyond for over 30 years. In addition to serving as General Counsel for the Independent Bankers of Texas, she is a permanent member of the Board of Directors of the Texas Association of Bank Counsel. Karen advises banks on regulatory compliance, examination preparation, policies and procedures and has special expertise in Bank Secrecy Act, fair lending and other consumer compliance matters.

This expertise will complement Kennedy Sutherland’s community bank corporate, securities and regulatory practice involving capital and debt offerings, bank holding company formation and expansion, mergers and acquisitions, loan documentation and tax credit finance practice.

“The addition of Karen Neeley to our team brings a very powerful dynamic to our Firm and her legislative focus and experience is a welcome complement to our efforts on behalf of the industry in Washington DC,” commented Patrick J. Kennedy, Jr. , Managing Partner.

Karen stated, “Kennedy Sutherland is a great fit for me and my banking clients, many of whom we already share in common. The Firm has been a leader in the community banking industry and we look forward to many more years of important gains for our clients.”

Kennedy Sutherland LLP provides a full complement of services for the community banking industry including corporate, securities, bank regulatory and complex transactions, including government guaranteed lending, tax credit and community development finance. The firm has expertise in bank technology and new products and services. The Firm maintains offices in San Antonio and Austin, Texas but enjoys serving clients nationwide.

For more information contact:

Patrick J. Kennedy, Jr.
Kennedy Sutherland LLP
112 E. Pecan St., Suite 2810
San Antonio, Texas 78205
210-228-4431 direct office
210-213-0279 mobile
Karen M. Neeley
Kennedy Sutherland LLP
1717 W 6th Street, Suite 441
Austin, TX 78703
512- 289-0594 mobile

Kennedy Sutherland LLP Covers Sub S Bank's Mergers & Acquisitions

Kennedy Sutherland LLP attorney, Patrick J. Kennedy, Jr., will present at the 4th Annual Strategic Opportunities: Merger & Acquisitions Prospects for 2016 Regional Conference at the Ritz in New Orleans on September 24, 2015. Mr. Kennedy will present specifically on Buying or Selling a Subchapter S Bank. During the session he will cover unique aspects of Sub S Banks in M&A. and discuss S Corp bank’s flow through tax treatment dynamic. He also will providea guideline for best practices for board fiduciary duties. In addition he will give examples of dividends and cash flow needs, how to structure the shareholder agreements and alternative growth and tax reform possiblities for future Sub S banks.

Register Now

Co-Sponsored by:
Texas Bankers Association
Louisiana Bankers Association
Arkansas Bankers Association
Mississippi Bankers Association
Oklahoma Bankers Association

Who Should Attend:
With an emphasis on free-wheeling, peer-to-peer sharing of ideas and resources, the conference aims for compact, relevant programming specifically designed for strategic decision-makers – senior executives who are shaping the community banking markets of tomorrow by finding ways to succeed today.

What This Conference Offers:

  • Unique program format and content
  • Emphasis on peer sharing by bank leaders
  • Networking with the most active acquirers and advisers in the region
  • Updates on all important M&A trends and regulatory developments
  • Strategies for managing independence
  • Special coverage for Sub S banks
  • The latest on capital funding and IPO options

Remarks Before EGRPRA Meeting

On Tuesday, August 4, 2015, in Kansas City, Mo., the Office of the Comptroller of the Currency(OCC), the Board of Governors of the Federal Reserve System (FRB), and the Federal Deposit Insurance Corporation (FDIC) (collectively, the agencies) held the fourth in a series of outreach meetings as part of the interagency effort to reduce regulatory burden as required by the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA). The outreach meetings provides interested parties an opportunity to comment on regulatory burden reduction directly to the agencies’ staff members and senior management.

During the outreach meeting in Kansas the FDIC Vice Chairman, Thomas M. Hoenig, said well-capitalized banks that stick to traditional banking should be eligible for exemption from some regulations. Hoenig stated, “I think it is fair to say there is broad agreement that the regulatory burden should be eased for community banks. However, what is proving more difficult is finding agreement on what exactly defines a traditional bank and what specific regulatory changes would give such banks meaningful relief without compromising bank soundness or consumer protections.” Further, he stated “regulators should use discretion when examining for compliance with regulations that clearly have little to do with the bank being examined….the public needs commercial banks to provide credit to small businesses and consumers across the country without the burdensome constraints of misdirected regulation.”

Read Hoenig’s remarks

Community Bank Sensible Regulation Act

Senator Susan M Collins [R-ME] on July 21, 2015 introduced S. 1799, The Community Bank Sensible Regulation Act. The legislation would allow for banking regulators to have more discretion in reducing community bank burden. Last week, Senator Collins successfully was able to add the legislation to the financial services appropriations bill before it was approved by the Senate Appropriations Committee. It was included along with legislation from Senate Banking Committee Chairman Richard Shelby (R-Ala.) containing various provisions from ICBA’s Plan for Prosperity. Should the legislation be enacted community and regional banks under $10 billion in assets would greatly benefit and become exempt from regulations like the Volker Rule.

TBA Files Freedom of Information Act Request with CFPB

The Texas Bankers Association (TBA) announced on its website that it has filed a Freedom of Information Act (FOIA) Request with the CFPB to obtain all documentation the CFPB requested from bank software processors on the overdraft activity of their bank customers.

In a memo, dated June 2nd, to state banking associations, the American Bankers Association raised concerns about the costs to industry of the CFPB’s use of its expansive authority to gather information under Section 1022 of the Dodd-Frank Act. The ABA stated in the memo that one of the processors had informed its clients that it may pass on to them the processor’s costs in responding to the CFPB’s order. The memo encouraged the Bureau to seek all relevant information before engaging in rulemaking, insist that the Bureau fund its data collection efforts, and support the introduction of legislation to address Section 1022 of the Dodd-Frank Act.

In its announcement, the TBA states that it was informed by its members that one of the processors would be billing its client banks for the cost of producing the information sought by the CFPB regarding overdraft checking programs. The TBA commented that it “objects to this third-party data search on both legal and customer privacy grounds” and is “concerned about the breadth of this data sweep and why the CFPB’s information requirements could not be satisfied with a representative cross-sampling rather than a demand request apparently sent to every major processor in the banking industry.”

According to the TBA, in addition to seeking “copies of all factual and analytical surveys and investigations conducted by the CFPB, or on its behalf by third parties,” its FOIA request also seeks “access to any legal analysis relied upon by way of supporting the CFPB’s legal authority for the issuance of the information orders.”