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Alyssa, don't miss these important MBA updates...
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Thank you BEST exhibitors and sponsors. Your support enhances our ability to host an engaging and memorable two-day event, featuring top-notch speakers, educational sessions, networking, exhibit hall and so much more.
The MBA Team can’t wait to see you and your teams at the BEST Conference March 20-22! We’re ready for a great few days of networking and learning. Not signed up yet? Join us! #MBABEST
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MBA SERVICE CORPORATION
MBA Service Corporation Endorsed Insurance Partner Distributed Distribution Checks
Michigan Bankers Association (MBA) and American Bankers Association (ABA) member banks headquartered in Michigan are entitled to receive a distribution check for their directors and officers (D&O), bond, cyber, property & casualty, and related insurance from this program coverage through the Michigan Bankers Association Service Corporation (MBASC) Endorsed Partner, American Bankers Mutual Insurance, Ltd. With this 34th consecutive distribution, American Bankers Mutual Insurance, Ltd, the re-insurer for the ABA-endorsed insurance program, announced that $100 million has been declared in distributions since the program’s inception, $3.5 million in distributions for this year and just over $4.1 million shared with Michigan headquartered banks since 1991. Read the Press Release.
For questions on the American Bankers Mutual Insurance, Ltd program, please reach out to Jill Verscheure at [email protected] or (517) 507-6933.
Pictured above: Kenneth Kelly, Chairman and CEO, First Independence Bank, and Treasurer of ABA Board of Directors; Jill Verscheure, SVP of MBA Service Corporation; Ray Biggs, President & CEO, West Shore Bank and Incoming Chair, MBA Board of Directors; and Rann Paynter, President & CEO, Michigan Bankers Association.
|  | Pictured: At the ABA Conference for Community Bankers, Rann Paynter, President & CEO, Michigan Bankers Association and Jill Verscheure, SVP of MBA Service Corporation, shared in the celebration with the Michigan banks receiving a distribution. From left to right (back row) Mary Mrozinski, SVP Digital Services & Customer Experience Innovation, West Shore Bank; Jeremy Holmes, SVP and COO, West Shore Bank; Tim Jewell, President & CEO, Eaton Community Bank; John Waldron, President & CEO, Southern Michigan Bank & Trust; Matthew Keene, President & CEO, Citizens National Bank of Cheboygan and MBA Board of Directors; Eric Beckhusen, President & CEO, Century Bank & Trust and Treasurer, MBA Board of Directors; Jay Prokupek, VP, Chief Digital Officer, Bank of Ann Arbor; Rann Paynter, President & CEO, Michigan Bankers Association; (Front Row) Ray Biggs, President & CEO, West Shore Bank and Incoming Chair of MBA Board of Directors; Jill Verscheure, SVP of MBA Service Corporation; and Roxanne Daust, President & CEO of Range Bank and Chairman of MBA Board of Directors. | |
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GRADUATE SCHOOL OF BANKING
2024 Prochnow Educational Foundation/MBA Scholarship Announcement
We are delighted to extend our heartfelt congratulations to Amy Lynn DesJardins, Loan Operation & Commercial Credit Administrator at Peoples State Bank of Munising (PSB) and graduate of the MBA Perry Schools of Banking, for being honored with the 2024 Prochnow Educational Foundation Scholarship to attend the Graduate School of Banking – Madison (GSB). Ms. DesJardins has been an integral part of PSB since 2015, where she plays a key role in underwriting commercial loans and overseeing the day-to-day operations of loan processing.
The Prochnow Educational Foundation Scholarship recipients are chosen based on involvement in banking, the association, and the community. The scholarships pay $1,500 per session toward GSB tuition for each of three GSB resident sessions, totaling $4,500. Applicants must be entering their first year at GSB.
We commend Ms. DesJardins on this well-deserved recognition and wish her continued success in her educational and professional endeavors.
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FRAUD
AG Nessel and Michigan Bankers Association Kick-off National Consumer Protection Week with the #BanksNeverAskThat Anti-Phishing Campaign
To kick-off National Consumer Protection Week, the MBA and Michigan Attorney General Dana Nessel partnered to promote #BanksNeverAskThat, a nationwide campaign educating consumers about the persistent threat of phishing scams. Since pitching to statewide media, 25 media outlets have published the press release and 9 television networks have interviewed the Attorney General statewide. Read the release. Watch the video.
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ECONOMY
Michigan Banks Encourage Businesses in Northern Michigan and the Upper Peninsula to Contact Their Bank if Experiencing Economic Hardship Due to Weather-Related Issues
A few weeks ago, the UP 200 was canceled due to a lack of snowfall and an unusually warm winter. Despite this setback, the economic development efforts associated with the event persisted. Roxanne Daust, President and CEO of Range Bank, and Rick Nebel, CEO & Director of Peoples State Bank, both active members of the board of InvestUP, engaged in discussions addressing the impact on businesses in the U.P. and Northern Michigan that heavily rely on typical weather patterns for their livelihoods. Notably, both Daust and Nebel have a history of collaboration with InvestUP's director, Marty Fittante, through their involvement with the MBA during Fittante's tenure in Senator Casperson's office. The conversations delved into past initiatives for weather-related economic relief, involving the Michigan Economic Development Corporation (MEDC), as described in the following press release. Read the press release. Read the press release.
While an EIDL loan may be suitable in some cases, it is not always the ideal solution. Encouraging troubled customers to communicate their needs with their bankers, the MBA emphasizes the importance of finding collaborative solutions. The MBA extends gratitude to Rick, Roxanne, Marty, and several other Northern Michigan and U.P. bankers who provided valuable input.
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FEDERAL RESERVE SYSTEM
Comment Letter to the Fed on Regulation II Proposed Rule
McClain, Huizenga and Bergman joined together on a letter to Chairman Jerome Power, expressing their concerns about the proposed changes to Regulation II. They have highlighted potential repercussions on low-balance, overdraft fee-free accounts, asserting that the proposed rule's language may unintentionally undermine recent, significant progress in integrating low-moderate-income (LMI) consumers into the mainstream banking system.
"We believe the language of the proposed rule could unintentionally undermine recent, significant progress in bringing low-moderate-income (LMI) consumers into the mainstream banking system," they stated.
The MBA commends Congresswoman McClain, Congressman Huizenga, and Congressman Bergman for their proactive stance on this matter. Read the letter.
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GARNISHMENT
Progress on Garnishment Bills
MBA met last week, in our continued efforts to reform aspects of HB 4900 and SB 408, with the workgroup addressing concerns. In and ideal world, need based government benefits would be protected from garnishments, however, most state benefits and tax deductions are not specifically coded for identification and would be nearly impossible to isolate in garnishment calculations. At a minimum the industry needs and effective hold harmless for these instances where a bank becomes the collection arm of the courts. Work with re-evaluating realistic garnishment thresholds is also taking place.
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GRASSROOTS
MBA with Lansing Leadership
The MBA advocacy team met this week with the quadrant leaders on policy initiatives and concerns. With a desire to focus on how the state addresses economic growth and housing, we shared our overall concerns with the flow likely well intended but detrimental policies that have been introduced that derails progress. MBA and our member banks will continue to have active seats at the table with both parties in both chambers of state government to shape policy best for banks, our customers and communities.
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CONGRESS
Powell: Broad Changes Likely Coming to Basel Endgame Proposal
Federal Reserve Chairman Jerome Powell said earlier this week that he expects there will be “broad and material” changes to the proposed Basel III endgame capital standards before they are finalized, although he was unsure whether the Fed would re-propose the rule to kick off a second round of public comment and analysis.
Powell appeared before the House Financial Services Committee for the first of two Fed reports to Congress this week. Questioned by committee Chairman Patrick McHenry (R-N.C.) about public comments from a broad range of interests expressing concern about the proposed standards, Powell said the Fed has just reached the stage where it can begin making decisions about how to proceed but not on the substance of the proposal itself. Watch a recording of the hearing.
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CONGRESS
Powell: Fed Will ‘Carefully’ Review Input on Debit Interchange Proposal
Fed Chairman Jerome Powell said yesterday during a House Financial Services Committee hearing that the agency will “carefully” review all public comments it receives about its proposal to lower the cap on debit card interchange fees, with the comment period recently extended to May 12. Committee member Rep. Blaine Luetkemeyer (R-Mo.) questioned Powell about the potential for the rule change to harm low- to moderate-income individuals by making it more difficult for banks to provide affordable banking services. In response, Powell said the rule is still out for public comment, and that federal law requires the Fed to make a decision on the cap.
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VIEWPOINT
ABA Questions Unexplained FDIC, Fed Decisions That Cost Banks Billions
With the FDIC’s cost estimate for the spring 2023 bank failures to the Deposit Insurance Fund (DIF) coming in 25% higher than predicted, eyes are on decisions the FDIC and Fed made that may have driven up the cost. In particular, a new ABA Viewpoint article explores the FDIC’s decision to seek financing from the Federal Reserve instead of other, cheaper sources, as well as the Fed’s unexplained decision to charge the FDIC “penalty pricing” on the loan—decisions that drove the cost to the DIF up by as much as $2.5 billion. Read the article.
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POLITICS AND POLICY
CFPB $8 Credit Card Late Fee Rule Comes Amid White House Fee Crackdown
The Consumer Financial Protection Bureau will release a final rule last week that is expected to save consumers $10 billion a year in credit card late fees. The rule is part of a larger effort by the White House to crack down on illegal fees and price hikes that President Biden will address in the State of the Union. Read more.
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CONGRESS
Growing Number of Lawmakers Seek Investigation of Navy Federal Credit Union
Two dozen House lawmakers last week called on federal regulators to investigate the nation’s largest credit union following reports of racial disparities in its lending practices, adding their voices to a growing number of members of Congress demanding answers from the institution.
In a joint letter, 21 members of the New Democrat Coalition and Congressional Hispanic Caucus urged regulators to ensure that Navy Federal Credit Union is adhering to fair lending laws following a CNN report that concluded the institution rejected minority applicants for conventional home purchase mortgages at a much higher rate than white applicants. They also sent a letter to former Navy Federal CEO Mary McDuffie asking a series of questions about the credit union’s fair lending processes. (McDuffie stepped down at the end of February and was succeeded by Dietrich Kuhlmann.)
In a separate joint letter last week, Reps. Emanuel Cleaver, II (D-Mo.), ranking member of the House Financial Services Subcommittee on Housing and Insurance, Steven Horsford (D-Nev.), chairman of the Congressional Black Caucus, and Sydney Kamlager-Dove (D-Calif.) urged the CPFB and National Credit Union Administration to investigate Navy Federal’s lending practices. Read the New Democrat Coalition and Congressional Hispanic Caucus letters. Read the joint letter from the three lawmakers.
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ABA RESOURCES
ABA Accepting Nominations for Emerging Leaders, DEI Awards
ABA is now accepting nominations for both the ABA Emerging Leader Awards and the ABA Diversity, Equity and Inclusion Awards. The Emerging Leader Awards identify and recognize the next generation of bank leaders who are committed to the highest standards of achievement and service to the industry and their communities. The DEI Awards honor and recognize ABA member banks for their internal-facing programs, initiatives and activities focused on improving DEI for their workforces.
Learn more about the ABA Emerging Leader Awards, with submissions due June 30.
Learn more about the ABA DEI Awards, with submissions due May 31.
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ECONOMY
Report: FOMC Sees Progress in Inflation Fight
At 5.25% to 5.5%, the target range for the federal funds rate has likely reached its peak in a cycle of policy tightening that began in early 2022, the Federal Reserve said Friday in the first of its biannual reports to Congress on monetary policy. At the same time, the report noted that the Federal Open Market Committee does not expect to reduce the target range until committee members have greater confidence that inflation is moving sustainably toward 2%.
The report also noted that stress in the banking system has receded since the bank failures last year, and that banks’ regulatory risk-based capital ratios remained solid and increased broadly, as bank profits were robust and banks reduced capital distributions. Still, it cautioned that vulnerabilities in the financial sector remain “notable,” as losses in the fair value of long-dated bank assets remain significant. Read the report.
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2024 ANTI-MONEY LAUNDERING/BANK SECRECY ACT (AML/CFT/BSA)
Two-Day Compliance School | May 14-15 | Lansing or Virtual
This seminar assists financial institutions in meeting the annual training requirements imposed by the BSA regulations and provides attendees with the opportunity to network with other professionals interested in AML/BSA compliance.
Who Should Attend
This program is designed for personnel who have management-level responsibilities for AML/CFT/BSA compliance. Individuals with retail banking, risk management, compliance, audit, operational, corporate banking, and training responsibilities will benefit from this program.
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It's Time to Fight Back!
Banks are losing money to criminals every day.
The Fraud Academy is a “first of its kind” two-day school that will train employees at all levels of your institution on fraud risk and what they can do to fight it.
Learn from FBI, Secret Service Agents and more. Customized for bankers like you. Join us at this multi-state event in downtown Lexington or virtually!
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PROFESSIONAL DEVELOPMENT
Financial Institutions Advisor: Insights for 2024 and beyond
Stay ahead of the latest developments for financial institutions in 2024. From post-CECL adoption best practices to identifying cybersecurity vulnerabilities, our expert guidance can help navigate challenges ahead. Download the 2024 Financial Institutions Advisor.
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MBA SERVICE CORPORATION
Keeping Small Business Afloat While Addressing Risk
Gonzo bankers, we are facing events that will cause an immediate impact on the small businesses in our communities and in our portfolios, and now more than ever, we need to show our stuff! Read the article.
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MBA SERVICE CORPORATION
Ready or Not, Here Comes COPPA
If you’re a parent, you probably have an opinion on screen time. As we get further and further into the internet age and parents rely on online tools for education and entertainment (and even babysitting), more and more online platforms target children. Because of this, the Federal Trade Commission (FTC) also has an opinion on screen time. The FTC recently proposed changes to the Children’s Online Privacy Protection Rule (COPPA) that places new restrictions on the use and disclosure of children’s personal information and further limits the ability of companies to condition services on the collection of children’s data.
Bank Compliance Leader Award
Bankers Alliance is excited to announce its first annual Bank Compliance Leader Award. Banks will have the opportunity to recognize an individual in their institution who has had a positive impact not only as a compliance leader within the bank but also the community and industry. Please review and share the submission page with your fellow bankers. Submit your nominations here.
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MBA SERVICE CORPORATION ENDORSED PARTNER
The Latest from Bankers Alliance
View the Compliance Alliance Question of the Week.
Banking Matters Podcast - Learn about today’s financial trends, topics, and practical matters on the Banking Matters Podcast. Listen to new episodes every Monday! Listen now.
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The “Pay Yourself” scam is on the rise. Don’t fall for bogus bank fraud alerts, 'cause #BanksNeverAskThat. Visit BanksNeverAskThat.com to see if you can outsmart scammers.
#ConsumerProtectionAwarenessWeek
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#FrameOfMindFriday How many hours of sleep are you getting at night? https://conta.cc/3gbgELk | |
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March is #WomensHistoryMonth, and we're excited to celebrate the remarkable women who have left an indelible mark on the world of banking and finance.
But what exactly is Women's History Month? Back in 1987, responding to a petition by the National Women’s History Project, Congress passed Pub. L. 100-9, officially designating March 1987 as the inaugural “Women’s History Month.” From 1988 to 1994, Congress continued to pass resolutions authorizing the President to proclaim March of each year as Women’s History Month.
Let's honor and recognize the trailblazing women who have shaped the financial landscape!
#HerStory #WomensHistoryMonth2024
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