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Proposal ensures consistent, fair supervision

ICBA signaled support for a proposed rule regarding unsafe or unsound practices and matters requiring attention, but it called on regulators to ensure supervision is consistent across the banking agencies.

In a letter to the FDIC and OCC, ICBA:

• Said it is supportive of the agencies’ efforts to bring greater transparency and accountability to the supervisory process.
• Recommended clarifying definitions and standards for key concepts to provide a more consistent understanding of the terms.
• Said the agencies should guard against unintended constraints on matters requiring attention, or MRAs, by maintaining the agencies' abilities to address emerging risks. 
• Said the OCC and FDIC should ensure consistency across community bank supervision by coordinating with the Federal Reserve.

The joint proposal on unsafe and unsound practices and matters requiring attention would: 

• Establish a uniform definition for the term “unsafe or unsound practice” for the purposes of enforcement and supervision.
• Direct bank supervisors to prioritize concerns related to material financial risks over those regarding policies, process, documentation, and other nonfinancial risks.
• Establish uniform standards for when and how the agencies may communicate MRAs and nonbinding supervisory observations as part of the examination process. 
• Require the agencies to tailor their supervisory and enforcement actions and MRAs.   

Source: ICBA

Asset size thresholds adjusted

The Federal Reserve Board and the Federal Deposit Insurance Corp. (FDIC) announced updated asset-size thresholds for 2026 under Community Reinvestment Act (CRA) regulations. Small banks will be defined as institutions with assets below $1.65 billion as of Dec. 31 of either of the prior two calendar years, while intermediate small banks must have assets of at least $412 million as of Dec. 31 of both prior two calendar years and less than $1.65 billion as of Dec. 31 of either prior two years. The new thresholds are in effect from the latter of Jan. 1, 2026 or the date of publication in the Federal Register through Dec. 31, 2026.

Source: Federal Reserve; FDIC

Ruling to require CFPB to remain open

A district court judge ruled the administration may not allow the Consumer Financial Protection Bureau to run out of funding, rejecting the Justice Department's argument that no funds were legally available, a day before the agency was set to run out of funding.

• Key insight: The Trump administration would violate an existing court order if it allows the CFPB to run out of funding by declining to request money from the Federal Reserve.
• Supporting data: The Judge held that the Dodd-Frank Act requires the CFPB to request funding from the Fed's "combined earnings," even when the Fed's expenses exceed income.
• Forward look: The decision disrupts one of the administration's clearest paths to shutting down the CFPB just a day before the administration said it would exhaust funds.

Source: S&P Global Market Intelligence




An article from Gerrish, Smith, Tuck

Knowing and Understanding Your Corporate Documents

"An organization’s corporate documents need to help it, not hurt it, and a good review and evaluation every few years can really keep your organization on its toes and ready to act when the need arises."

In this article from ACB Associate Member Gerrish - Smith - Tuck, Philip Smith and Charles Plunkett detail situations where your documents may not keep pace with growth, technology. the board structure, shareholder rights, etc.

Click here to learn more.

Source: Gerrish - Smith - Tuck

Treasury offering non-binding penny guidance

The Treasury Department recently published non-binding guidance for businesses and consumers on handling various penny situations.

The frequently asked questions cover the end of penny production, timelines, how businesses can handle certain situations, rounding, and more.

Source: U.S. Treasury Department

TILA, CLA, FCRA thresholds for 2026

The Consumer Financial Protection Bureau issued annual threshold adjustments that are effective Jan. 1, 2026.

TILA: The CFPB issued a final rule amending the official interpretations for Regulation Z, which implements the Truth in Lending Act. Under the final rule:

• The threshold that triggers requirements to disclose minimum interest charges will remain unchanged at $1.
• For Home Ownership and Equity Protection Act loans, the adjusted total loan amount threshold for high-cost mortgages in 2026 will be $27,592.
• The adjusted points-and-fees dollar trigger for high-cost mortgages in 2026 will be $1,380.
• For qualified mortgages, the thresholds for the spread between the annual percentage rate and the average prime offer rate will range from 3.5 to 6.5 percentage points. 

Consumer Leasing: The CFPB finalized amendments to the regulations that implement the Consumer Leasing Act. The exemption threshold will increase from $71,900 to $73,400 effective Jan. 1.

Fair Credit Reporting Act: The CFPB issued the annual adjustment to the maximum amount consumer reporting agencies may charge consumers for making a file disclosure to a consumer under FCRA. The ceiling on allowable charges under Section 612(f) of the FCRA will increase to $16.00 for 2026. 

Source: CFPB

Agencies announce dollar thresholds for mortgage loan appraisals

The Consumer Financial Protection Bureau, the Federal Reserve Board, and the Office of the Comptroller of the Currency today announced that the 2026 threshold for higher-priced mortgage loans that are subject to special appraisal requirements will increase from $33,500 to $34,200.

The threshold amount will be effective January 1, 2026, and is based on the 2.1 percent annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as CPI-W, as of June 1, 2025.

The Dodd-Frank Act added special appraisal requirements for higher-priced mortgage loans to the Truth in Lending Act, including that creditors obtain a written appraisal based on a physical visit to the interior of the home before making a higher-priced mortgage loan. The rules implementing these requirements contain an exemption for loans at or below a threshold amount that is adjusted annually to reflect CPI-W increases.


Source: Federal Regulatory Agencies

2026 CRA software

The Federal Financial Institutions Examination Council announced that the 2026 Community Reinvestment Act Data Entry Software Release is now available on the FFIEC CRA website.

The free CRA Data Entry Software:

• Is designed to assist respondents in automating the filing of their CRA data.
• Includes editing features to help verify and analyze the accuracy of the data.
• Lists methods for submitting CRA data.

Source: FFIEC

OCC proposes preempting state laws on escrow interest


The OCC proposed issuing a preemption determination saying that federal law preempts state laws that eliminate OCC-regulated banks’ flexibility in paying interest or assessing fees on funds placed in real estate escrow accounts.

The OCC said:

• The proposed preemption determination would conclude that the National Bank Act preempts New York’s Gen. Oblig. Law section 5-601, the state’s interest-on-escrow law.
• Eleven other states have laws with substantively equivalent terms, and these laws would also be preempted.
• The proposed determination would complement the OCC’s notice of proposed rulemaking to codify national banks’ longstanding escrow accounts power, which the agency is concurrently issuing.

Comments on the proposal are due 30 days after it is published in the Federal Register. ICBA will be submitting comments.

Arkansas is not one of the states affected however, the OCC's interest in state law preemption is worth noting.



Source: OCC

Nonbanks dominate 2025 bank charter applications

Last year's surge in bank charter applications is set to continue into 2026 as technology and digital asset-focused companies get a warm welcome from federal regulators.

There were 31 US bank charter applications filed this year through Dec. 19, nearly four times 2024's total and the highest amount since at least 2018, according to S&P Global Market Intelligence data. The surge was largely led by nontraditional charters such as national trust bank charters and industrial loan companies (ILCs), as nonbank companies saw softening regulatory attitudes toward innovation in the bank space. Several digital-asset focused organizers even sought traditional commercial bank charters in 2025, and the trend is likely to continue, advisers said.

Nonbank applicants were "completely unwelcome" under the prior administration, but this year has brought a dramatic change with all business plans being welcome, said Troutman Pepper partner James Stevens. "Crypto people have a chance here. Before they really didn't have much of a chance to get past a filing. And so that has been a really monumental shift."

"It doesn't mean that everybody gets waved in and gets to get a bank charter. The standards continue to be very high and very rigorous. But I do think there is some openness to working through fintech, crypto or other nontraditional business plans," he added.

Source: S&P Global Market Intelligence

Branch closures hit 14-year low

US bank branch closures are at a 14-year low, after many banks rightsized their footprints post-COVID.

Branch closures are still outpacing openings, but the difference between the two has been shrinking for the past four years. So far this year through Sept. 30, US banks have closed a net 542 branches, the lowest point since 2011 and a five-fold decrease from nearly 3,000 net closures in 2021. Net closures spiked in 2020 and 2021 after branches closed in response to pandemic lockdowns and consumers became more comfortable with online banking.

However, many banks are now comfortable with their right-sized footprints and believe they have found the sweet spot between technology offerings and maintaining a physical presence, experts told S&P Global Market Intelligence. While the number of branches will continue to decline overall, the pace will remain muted, they said.

Arkansas had a net 35 branch closures since January 2020.

Source: S&P Global Market Intelligence