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aRTiCLeS


          customers. In another win for the banking industry, the bureau   Rural areas – where community banks hold more than two-
          exempted from the rule’s ability-to-repay test installment loans of   thirds of all deposits – continue to see higher per-capita banking
          more than 45 days, signaling the bureau’s interest in encouraging   office penetration, with 4.7 offices per 10,000 people, compared
          bank participation in this market.                      with 2.5 in urban areas. The rate of office closures was also faster
                                                                  in metropolitan and micropolitan areas, where branch closures
          To read more visit: https://www.consumerfinance.gov/about-
          us/newsroom/cfpb-statement-payday-rule/                 have less of an effect on the availability of financial services in
                                                                  those communities, and was driven by higher expenses, charter
                                                                  consolidation and technological improvements.
          FDIC: Community Banks
          Outpace Larger Banks in 2017                            To view the FDIC Quarterly visit: https://www.fdic.gov/
                                                                  bank/analytical/quarterly/2017-vol11-4/fdic-v11n4-3q2017.pdf
          Deposit Growth

          Community banks reversed a long-standing trend and reported   Threshold Raised for FHLB
          greater deposit growth in 2017 than larger banks, according to   Community Bank Membership
          the latest issue of the FDIC Quarterly. Reviewing figures from   Status
          the latest FDIC Summary of Deposits, the article showed that
          community banks saw deposits rise by 6.4 percent, while non-  The Federal Housing Finance Agency
          community banks saw them grow by 4.9 percent.           is raising the asset threshold used to
                                                                  determine whether a Federal Home
          Over the past five years, however, those figures are flipped,
          with non-community bank deposit growth outpacing that at   Loan Bank member is considered a
          community banks. From June 2016 to June 2017, all insured   “community financial institution.”
          deposits nationwide rose by $570 billion, or roughly 5.1 percent.   The new threshold – based on an
          As bank consolidation continued and larger banks continued   inflation adjustment – is $1.173 billion
          trimming their branch networks, deposits per institution rose by   in assets and took effect on Jan. 1.
          10 percent and deposits per office rose by 7.4 percent.  FHLB member banks under this threshold receive advantages
                                                                  in terms of the purposes for which they may receive long-term
          Community banks slightly increased their numbers of branches   advances and in the collateral they pledge to secure advances.
          in 2017 and over the previous five years, despite an ongoing
          trend in reduced  branch  numbers since 2008. Community   To read more visit: https://www.federalregister.gov/
                                                                  documents/2018/01/16/2018-00618/notice-of-annual-
          bank offices grew by 0.1 percent in 2017, while branches of non-  adjustment-of-the-cap-on-average-total-assets-that-defines-
          community banks fell by 3.3 percent – an accelerated pace from   community-financial
          previous years. Since 2012, the number of non-community bank
          branch offices have declined by 11.5 percent.


                                    MN Mortgage                   Pricing:
                                                                   MMA Members: $39 ($99 after February 16)
                                       Association                 Non-members: $99

                                              Hosting             Location:
                                                                   The Edina Country Club
          BREAKFAST MEETING WITH FANNIE MAE                        5100 Wooddale Ave
          February 21, 2018                                        Edina, MN 55424
                                                                  Program Agenda:
          Implementation of Day 1 Certainty
                                                                   8:00 – 8:30  am – Registration opens; Check-in and Networking
          We are all aware of Day 1 Certainty and what potential   8:30 – 8:40  am – Remarks from the MMA President and
          advantages it brings to our organizations, but how much               Speaker introduction
          of it are you able to put into practice within your lending   8:40 – 9:40  am – Implementation of Day 1 Certainty,
          model? Fannie Mae will discuss how to put the tools into              by Fannie Mae
          practice,  deliver  loans  more  confidently  and  create  a   9:40  – 10:00 am – Q & A
          greater client experience. Lower your risk on loans and
          learn how this tool is currently being used around the   Visit https://themma.memberclicks.net/2018-february-breakfast-
          country to improve efficiencies and operations.          meeting#/ to register or call 952.358.2440 for more information.



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