Prohibiting the Use of Reputation Risk by Regulators

The OCC and FDIC have issued a final rule that codifies the elimination of reputation risk from their supervisory programs. The rule also prohibits the agencies from encouraging institutions to close customer accounts or take other actions because of a person or entity’s political or religious beliefs. 

Trump Administration Seeks Further Changes to CFPB 

The Trump administration is asking a federal appeals court for permission to reduce the CFPB’s current staffing from 1,174 to 556 workers.  

Hope Bryant, First Citizens Bank

AML Programs

The FDIC and OCC are seeking public comment on a proposed rule to amend their requirements for institutions to establish and maintain effective risk-based anti-money laundering and countering the financing of terrorism (AML/CFT) programs designed to identify, assess, and mitigate risks of illicit finance.

The amendments are intended to align each agency’s AML/CFT rules with changes concurrently proposed by FinCEN.

FDIC ‘Consumer Compliance Supervisory Highlights’ Report

The FDIC has released its annual Consumer Compliance Supervisory Highlights report. In order, the most frequently cited violations related to compliance with the Truth in Lending Act (TILA) / Regulation Z, the Electronic Fund Transfer Act (EFTA) / Regulation E, the Flood Disaster Protection Act (FDPA) / 12 CFR Part 339, the Truth in Savings Act (TISA) / Regulation DD, and the Home Mortgage Disclosure Act (HMDA) / Regulation C.

Stablecoin Regulations for Nonbanks

The Treasury Department has proposed a new rule to establish what factors it will consider when nonbank stablecoin issuers request to be subject to state regulation rather than federal regulation, as permitted under the Genius Act. The proposal outlines how Treasury would evaluate whether a state framework provides comparable oversight and consumer protections.

The Genius Act allows nonbank stablecoin issuers with a consolidated total outstanding issuance of less than $10 billion to opt for regulation under a state-level regulatory regime, provided that the state’s regime is “substantially similar” to the federal regulatory framework.

Under the proposal, states would have discretion in areas such as capital standards, but there would be uniform state and federal standards for reserve requirements and for anti-money laundering and sanctions program requirements.

FBI Report on Cybercrime Losses

The FBI has published a new report related to cybercrimes. Americans lost nearly $20.9 billion to cybercrime last year, a 26% increase from the year before. The average loss among all victims was $20,699. That average increased to $62,604 when crypto was involved. Complaints involving cryptocurrency accounted for more than $11 billion in total losses, a 22% increase from 2024.

Report of the NCBA Nominating Committee

The NCBA Nominating Committee met in March to select the following slate of nominees to take office at the NCBA Convention in June in keeping with NCBA by-laws. The Committee is composed of all past NCBA Chairs still active in banking, and each year the current NCBA Chairman appoints a past chair to lead the process.

Many thanks to Jim Hansen of PNC for chairing the Nominating Committee this year, and congratulations to our nominees. They are:

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Driving Community Prosperity with Reciprocal Deposits

Community banks, which make up at least 90% of all banks nationwide, are the backbone of American small businesses. An ICBA report found that roughly 60% of small business loans and over 80% of agricultural loans come from community banks.

But community banks face steep challenges, including net interest margin compression, compliance and cybersecurity burdens, and new, often digital-only, competitors. In fact, 94% of respondents to IntraFi’s Q4 2025 survey of bank executives say they expect deposit competition to remain at current levels or increase over the next year.

To stay competitive and continue providing the vital banking services their communities depend on, community banks need every advantage available to attract and retain high-value relationships. Reciprocal deposits are an essential tool that allow community banks to support local deposit and lending needs, enabling banks to offer large depositors access to millions in FDIC insurance while keeping funds local to lend in the community.

North State Bank Grows SBA Lending Team with Addition of David Harper

North State Bank is growing its Government Lending team, announced Director of government Lending Marty Ferguson. David Harper joins as Vice President and SBA Business Development Officer, bringing more than 25 years of experience in financial services, with a specialized focus on SBA and commercial lending.

“David understands the critical role SBA financing plays in strengthening local economies,” said Ferguson. “His relationship-driven approach will further enhance our ability to serve small business owners throughout the Carolinas and beyond.”

David Harper, North State Bank

Harper’s career spans nearly three decades in commercial real estate and financial services, where he has developed a strong reputation for helping businesses access capital and scale effectively. His expertise in the SBA 504 loan program positions him as an asset to North State Bank’s expanding SBA lending operations.

Sell your cleverness and buy bewilderment. 
Cleverness is mere opinion; 
bewilderment is intuition.

- Rumi