State Budget Signed Into Law

Governor Josh Stein has signed Senate Bill 257 – the 2026 Appropriations Act – into law. The Governor noted that, after extended delays, it is the first state budget in more than two years. He commended the teacher pay raises and salary increases for public safety officers, but criticized the General Assembly for cutting more than 1,000 state government positions and shifting more power away from the executive branch.

As noted in last week’s Bulletin, the budget bill adjusts personal income tax rates. The current rate is 3.99% but the rate would lower to 3.49% in 2027, 2028, and 2029; 3.24% in 2030, 2031, and 2032; and 2.99% after 2032.

Budget Technical Corrections Bill

The Governor also signed into law a separate bill – H 56 – that makes a series of predominantly technical corrections to the budget bill and in other contexts. Section 3.3 filed at the request of an NCBA member bank makes a tweak to the financial exploitation prevention provisions in S. 595. In the context of the new transaction delays and refusals statute – GS 108A-117.1, it adds to (h):

“The rights and remedies under this section are in addition to any rights and remedies for which the parties have contracted. Nothing in this section limits any contractual rights or remedies.” 

NCBA and OBL Come Together for 2026 Annual Convention

Bankers from North Carolina and Ohio came together last week on Sea Island, Georgia, for the 2026 NCBA/OBL Annual Convention.

Held at The Cloister, the convention offered a valuable opportunity for banking leaders from both states to learn, connect and reflect on the issues shaping the industry. Throughout the week, attendees took part in informative sessions, thoughtful discussions and meaningful conversations with colleagues and friends from across the banking community.

NCBA extends its sincere thanks to the Ohio Bankers League, event sponsors, speakers, attendees and everyone who helped make this year’s convention well organized, engaging and memorable. We are grateful to everyone who joined us and helped bring the North Carolina and Ohio banking communities together.

The event also served as a reminder that the best conventions strike the right balance: strong educational programming, valuable networking, new connections, fellowship and time to enjoy the setting.

A full gallery of convention photos is available here.

First Horizon CIO Named One of American Banker’s Most Innovative People in Finance

First Horizon Corporation announced that Mohan Sankararaman, Executive Vice President and Chief Information Officer, has been named one of American Banker’s 2026 Most Innovative People in Finance. The recognition highlights leaders helping shape the future of financial services through technology, innovation and forward-looking leadership.

Notable Banking Bills

Shortly before breaking for the July 4 holiday, the U.S. House Financial Services Committee passed ten bills. Among the list is H.R. 5755 – the FCRA Liability Harmonization Act – that would harmonize the Fair Credit Reporting Act with other financial consumer protection laws by capping statutory damages in class action lawsuits, eliminating punitive damages and limiting attorney’s fees. Rep. Tim Moore is a cosponsor of the bill.

Also of note is H.R. 9329 – the SEC Reform and Restructuring Act – that requires the SEC before proposing a regulation to assess the costs and benefits of the regulation and only issue the regulation (in a plain English and easy-to-understand format) if the benefits of the regulation justify the costs of the regulation.

Finally, the list includes H.R. 9331 – the STOP Payments Fraud Act of 2026 - to amend the Expedited Funds Availability Act to provide exceptions in the case of fraudulent checks or wire transfers. 

Fed Joins Other Agencies with Comment Request

The Federal Reserve is inviting comment on a proposed rule that would require its supervised banks to establish and maintain effective anti-money laundering and countering the financing of terrorism programs reasonably designed to identify, assess, and mitigate risks of illicit finance. The amendments are intended to align with changes proposed by FinCEN and corresponding changes previously proposed by the other federal banking agencies on April 10, 2026.

21st Century ROAD to Housing Act Set to Become Law on July 10

H.R. 6644 – the 21st Century ROAD to Housing Act – includes provisions of importance to banks, cleared a final vote on June 23, and was originally scheduled for a signing ceremony on June 24.

However, President Trump abruptly canceled the event and announced that he would refuse to sign the bill unless Congress passed the separate SAVE America Act / H.R. 7296 / S. 3752 – a bill to require documentary proof of citizenship to register to vote and photo ID at the polling place, or a copy of the photo ID to obtain a mail-in ballot.

Despite that pronouncement by the President, the U.S. House presented the bill to him on June 29 shortly before going on recess. Under Section 7 of the U.S. Constitution, the President generally must return (veto) a bill within ten days (Sundays excepted) after it has been presented to him or else the bill becomes law even without his signature. Absent a veto or a pivot to sign the bill into law, H.R. 6644 will automatically become law at midnight at the end of the day on July 10.

CRA-Eligible Communities

The federal banking agencies have released the 2026 list of distressed or underserved nonmetropolitan middle-income geographies where revitalization or stabilization activities are eligible to receive CRA consideration. Revitalization or stabilization activities in these geographies are eligible to receive CRA consideration under the community development definition for 12 months after publication of the current list.

Results of Payments Study

The Federal Reserve has released findings from its 2025 triennial payments study – a collaborative effort of the Federal Reserve Bank of Atlanta and the Federal Reserve Board that is released every three years. The information shows how consumers and businesses chose to make noncash payments, using different types of cards, ACH payments, and checks. Overall, the number of noncash payments more than tripled since 2000.

Cards once again were used most frequently, accounting for over three quarters of payments by number. Payments using the ACH system continued to account for the majority of noncash payments by value. 

OCC Mortgage Performance Report 

The OCC has released the first quarter 2026 mortgage metrics report, which showed that 97.7% of first-lien mortgages in the federal banking system were current and performing at the end of the quarter. 

Trading Revenue

The OCC has reported cumulative trading revenue of U.S. commercial banks and savings associations of $16.3 billion in the first quarter of 2026. A total of 1,192 insured U.S. national and state commercial banks and savings associations held derivatives.

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First Horizon Names Jason Triplett Western NC Area President

First Horizon Bank has named Jason Triplett Western North Carolina Area President for its Mid-Atlantic Region. Triplett, who also serves as Head of Commercial Banking, will lead community banking, associate and community engagement, and market share growth across Asheville, Boone, Hickory and Lenoir. He reports to Laura Bunn, Mid-Atlantic Regional President.

HomeTrust Bank Adds Specialized Healthcare Banking Division

Asheville-based HomeTrust Bank has launched a new Healthcare Banking Division to serve medical, dental and veterinary practices across the Southeast. The division will provide practice acquisition and buy-in financing, equipment loans, owner-occupied commercial real estate lending, SBA lending, treasury management, deposit services and other tailored banking solutions. The new division is led by healthcare banking officers Evan Deyerle, Richard Novak and Ricardo Palacio.

"Remember that what you now have was once among the things you only hoped for."

- Epicurus