Supervisory Update News Summary

AS OF JULY 15, 2020

TITLE TYPE/DATE DESCRIPTION SOURCE

Consumer Financial Protection Bureau Launches Pilot Advisory Opinion Program to Provide Regulated Entities Clear Guidance and Improve Compliance

Press Release June 18, 2020

The CFPB launched a pilot advisory opinion (AO) program to publicly address regulatory uncertainty in the Bureau’s existing regulations. The pilot AO program will allow entities seeking to comply with regulatory requirements to submit a request where uncertainty exists.

CFPB

CFPB Issues Interpretive Rule on Method for Determining Underserved Areas

Press Release June 23, 2020

The CFPB issued an interpretive rule to provide guidance to creditors and other persons involved in the mortgage origination process about the way in which the Bureau determines which counties qualify as “underserved” for a given calendar year.

CFPB

CFPB Announces Tech Sprints To Empower Consumers, Reduce Regulatory Burden

Press Release June 29, 2020

The CFPB announced its first-ever Tech Sprints to reduce regulatory burden and improve consumer understanding of financial services. The Bureau’s Tech Sprints program will bring together regulators, technologists, software providers, consumer groups, and financial institutions to develop technological solutions to shared compliance challenges. The first Tech Sprint will kick off in October with another in March 2021.

CFPB

SUPERVISORY UPDATE NEWS SUMMARY

Texas Department of Banking 2 July 15, 2020

TITLE TYPE/DATE DESCRIPTION SOURCE

Consumer Financial Protection Bureau Issues Final Rule on Small Dollar Lending

Press Release July 7, 2020

The CFPB issued a final rule concerning small dollar lending in order to maintain consumer access to credit and competition in the marketplace. The final rule rescinds the mandatory underwriting provisions of the 2017 rule after re-evaluating the legal and evidentiary bases for these provisions and finding them to be insufficient. The final rule does not rescind or alter the payments provisions of the 2017 rule.

CFPB

Consumer Financial Protection Bureau Ratifies Prior Regulatory Actions

Press Release July 7, 2020

The CFPB ratified most regulatory actions the Bureau took from January 4, 2012 through June 30, 2020. The ratification of previous regulatory actions provides the financial marketplace with certainty that the rules are valid in light of the Supreme Court decision in Seila Law.

CFPB

NexBank, SSB, Dallas, Texas, Converts to a State-Chartered Bank

Press Release June 30, 2020

Banking Commissioner Charles G. Cooper announced today that NexBank, SSB, headquartered in Dallas, Texas, completed its conversion to a Texas state-chartered bank from a state savings bank. The bank will begin operating as NexBank under its new charter effective July 1, 2020.

TDB

Texas Banking Commissioner Issues Consent Order Prohibiting Further Participation Relating to Linda Patricia Escamilla

Press Release July 9, 2020

On July 6, 2020, Banking Commissioner Charles G. Cooper issued a Consent Order Prohibiting Further Participation against Linda Patricia Escamilla of Carrizo Springs, Texas, a former employee of Capital Bank of Texas, Carrizo Springs, Texas.

TDB

SUPERVISORY UPDATE NEWS SUMMARY

Texas Department of Banking 3 July 15, 2020

TITLE TYPE/DATE DESCRIPTION SOURCE

Interagency Examiner Guidance For Assessing Safety and Soundness Considering the Effect of the COVID-19 Pandemic on Institutions

Industry Notice 2020-09 June 23, 2020

PR-72-2020 June 23, 2020

FIL-64-2020 June 23, 2020

On June 23, 2020, state and federal banking agencies issued guidance to examiners for assessing the safety and soundness of financial institutions given the impact of the COVID-19 pandemic. The Texas Department of Banking contributed to the development of this guidance and examination staff will be assessing each financial institution following the supervisory principals outlined in the guidance.

TDB

FDIC FRB OCC NCUA

FDIC Unveils Redesigned Website

PR-70-2020 June 22, 2020

FIL-62-2020 June 22, 2020

For the first time in nearly a decade, the FDIC today unveiled a comprehensive overhaul of the agency’s flagship website. The newly redesigned FDIC.gov offers consumers, bankers, and analysts easier access to the agency’s most popular content, including information critical to financial institutions and consumers impacted by COVID-19.

FDIC

FDIC Issues Final Rule to Mitigate the Deposit Insurance Assessment Effect of Participation in the Paycheck Protection Program (PPP), the PPP Liquidity Facility, and the Money Market Mutual Fund Liquidity Facility

PR-71-2020 June 22, 2020

FIL-63-2020 June 22, 2020

The FDIC approved a final rule that mitigates the deposit insurance assessment effects of participating in the Paycheck Protection Program (PPP) established by the U.S. Small Business Administration and the Paycheck Protection Program Liquidity Facility (PPPLF) and Money Market Mutual Fund Liquidity Facility (MMLF) established by the FRB.

FDIC

Agencies Release List of Distressed or Underserved Nonmetropolitan Middle-Income Geographies

PR-73-2020 June 24, 2020

The FRB, FDIC, and OCC announced the availability of the 2020 list of distressed or underserved nonmetropolitan middle-income geographies. These are geographic areas where revitalization or stabilization activities are eligible to receive CRA consideration under the community development definition.

FDIC FRB OCC

SUPERVISORY UPDATE NEWS SUMMARY

Texas Department of Banking 4 July 15, 2020

TITLE TYPE/DATE DESCRIPTION SOURCE

FDIC Issues Rule to Codify Permissible Interest on Transferred Loans

PR-74-2020 June 25, 2020

The FDIC issued a final regulation to codify the agency’s longstanding guidance that the valid interest rate for a loan is determined when the loan is made, and will not be affected by a subsequent sale, assignment, or other transfer of the loan. The rule reaffirms the longstanding ‘valid when made’ doctrine, a nearly 200-year-old principle in contract law.

FDIC

Financial Regulators Modify Volcker Rule

PR-75-2020 June 25, 2020

Five federal regulatory agencies today finalized a rule modifying the Volcker rule’s prohibition on banking entities investing in or sponsoring hedge funds or private equity funds—known as covered funds. The final rule is broadly similar to the proposed rule from January.

FDIC FRB OCC SEC CFTC

Agencies Finalize Amendments to Swap Margin Rule

PR-76-2020 June 25, 2020

FIL-66-2020 June 25, 2020

Five federal agencies have finalized changes to their swap margin rule to facilitate the implementation of prudent risk management strategies at banks and other entities with significant swap activities.

FDIC FRB OCC FHFA FCA

Agencies Release Proposed Revisions to Interagency Questions and Answers Regarding Flood Insurance

PR-77-2020 June 26, 2020

FIL-67-2020 June 26, 2020

Five federal regulatory agencies today requested public comment on new and revised Interagency Questions and Answers Regarding Flood Insurance. The Interagency Questions and Answers, which provide information addressing technical flood insurance-related compliance issues, were last updated in 2011.

FDIC FRB OCC NCUA FCA

FDIC Makes Public May Enforcement Actions

PR-78-2020 June 26, 2020

The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in May. There are no administrative hearings scheduled for July 2020.

Included among the 18 orders and one notice issued was the modification of a Prohibition Order against David Mann, formerly of the Citizens State Bank, Woodville.

FDIC

SUPERVISORY UPDATE NEWS SUMMARY

Texas Department of Banking 5 July 15, 2020

TITLE TYPE/DATE DESCRIPTION SOURCE

FDIC Launches Competition to Modernize Bank Financial Reporting

PR-79-2020 June 30, 2020

The FDIC announced the start of a rapid prototyping competition to help develop a new and innovative approach to financial reporting, particularly for community banks.

FDIC

FDIC Issues List of Banks Examined for CRA Compliance

PR-81-2020 July 2, 2020

The FDIC issued its list of state nonmember banks recently evaluated for compliance with the CRA. The list covers evaluation ratings that the FDIC assigned to institutions in April 2020.

Four Texas state-chartered banks were evaluated during this period, with three receiving a Satisfactory rating and one receiving a rating of Outstanding.

FDIC

The FDIC Updates its Enforcement Actions Manual for Flood Insurance Civil Money Penalties

FIL-61-2020 June 18, 2020

The FDIC has updated its Formal and Informal Enforcement Actions Manual (manual) regarding the assessment of mandatory civil money penalties (CMPs) for certain pattern and practice violations of the National Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1973, as revised, 42 U.S.C. § 4012a (Flood Act) and Part 339 of the FDIC Regulations. The manual provides direction for professional staff related to the work necessary to pursue formal and informal enforcement actions. It is also intended to support the work of field office, regional office, and Washington office staff involved in processing and monitoring enforcement actions.

FDIC

FDIC Issues Final Rule Clarifying the Interest Rates State-Chartered Banks and Insured Branches of Foreign Banks May Charge

FIL-65-2020 June 25, 2020

On June 25, 2020, the FDIC Board of Directors authorized publication of a final rule that would clarify the law governing the interest rates that state-chartered banks and insured branches of foreign banks may charge. The final rule will take effect 30 days after publication in the Federal Register.

A copy of the final rule can be found on the FDIC’s website: https://www.fdic.gov/news/board/2020/2020-06-25-notice-dis-c-fr.pdf

FDIC

SUPERVISORY UPDATE NEWS SUMMARY

Texas Department of Banking 6 July 15, 2020

TITLE TYPE/DATE DESCRIPTION SOURCE

Consolidated Reports of Condition and Income for Second Quarter 2020

FIL-69-2020 July 10, 2020

The attached materials (here and here) pertain to the Consolidated Reports of Condition and Income (Call Report) for the June 30, 2020, report date. Please plan to complete as early as possible the preparation, editing, and review of your institution’s Call Report data and the submission of these data to the agencies’ Central Data Repository (CDR). Starting your preparation early will help you identify and resolve any edit exceptions before the submission deadline. If you later find that certain information needs to be revised, please make the appropriate changes to your Call Report data and promptly submit the revised data file to the CDR.

FDIC

Federal Complaint Filed Against Austin Man for Multi-Million Dollar Fraud Scheme Related to the SBA Paycheck Protection Program During COVID-19 Pandemic

Press Release June 18, 2020

In Austin today, federal authorities arrested Michael George McQuarn, 51 of Austin, for allegedly defrauding the U.S. Small Business Administration (SBA) Paycheck Protection Program of more than $2 million.

FDIC OIG

Texas Man Charged with COVID-Relief Fraud, False Statements and Money Laundering

Press Release June 23, 2020

A Texas man was charged in an indictment unsealed today with wire fraud, false statements to a financial institution and money laundering for his alleged participation in a scheme to file fraudulent loan applications seeking more than $3 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

FDIC OIG

Texas Man Charged with COVID Relief Fraud

Press Release June 24, 2020

A Houston funeral director has been taken into custody on allegations he fraudulently sought over $13 million in Paycheck Protection Program (PPP) loans.

FDIC OIG

SUPERVISORY UPDATE NEWS SUMMARY

Texas Department of Banking 7 July 15, 2020

TITLE TYPE/DATE DESCRIPTION SOURCE

Financial Regulators Issue Statement on Managing the LIBOR Transition

Press Release July 1, 2020

The members of the FFIEC highlighted the risks that will result from the transition away from LIBOR, and encouraged supervised institutions to continue their efforts to transition to alternative reference rates in order to mitigate financial, legal, operational, and consumer protection risks.

FFIEC

Federal Reserve Announces FraudClassifier Model to Help Organizations Classify Fraud Involving Payments

Press Release June 18, 2020

The FRB published the FraudClassifier model—a set of tools and materials to help provide a consistent way to classify and better understand the magnitude of fraudulent activity and how it occurs across the payments industry. The model was developed by the Fraud Definitions Work Group, which was comprised of FRB and payments industry fraud experts.

FRB

Federal Reserve Board Releases Results of Stress Tests for 2020 and Additional Sensitivity Analyses Conducted in Light of the Coronavirus Event

Press Release June 25, 2020

The FRB released the results of its stress tests for 2020 and additional sensitivity analyses that the Board conducted in light of the coronavirus event.

FRB

Federal Reserve Board Releases New Term Sheet for the Primary Market Corporate Credit Facility, Adding Pricing and Other Information

Press Release June 29, 2020

The FRB released a new term sheet for the Primary Market Corporate Credit Facility, adding pricing and other information. As detailed in an FAQ released today, pricing will be issuer-specific and informed by market conditions. Prices will also be subject to minimum and maximum spreads over comparable maturity Treasury securities.

FRB

SUPERVISORY UPDATE NEWS SUMMARY

Texas Department of Banking 8 July 15, 2020

TITLE TYPE/DATE DESCRIPTION SOURCE

Federal Reserve Board announces extension of rule change to bolster effectiveness of the Small Business Administration's Paycheck Protection Program

Press Release July 15, 2020

The FRB announced an extension of a rule change to bolster the effectiveness of the Small Business Administration's (SBA) Paycheck Protection Program (PPP). Like the earlier rule, the extension will temporarily modify the Board's rules so that certain bank directors and shareholders can apply to their banks for PPP loans for their small businesses.

FRB

Supervision of De Novo State Member Banks

SR 20-16 June 24, 2020

This letter provides guidance to FRB banks regarding the supervision of de novo state member banks (de novos), and the evaluation of de novo insured depository institutions seeking to become state member banks. For purposes of this letter, an insured depository institution is considered to be in the de novo stage until it has been operating for at least three years. Further, this letter applies to any commercial bank, thrift, Edge Act corporation, or industrial bank that has been in existence for less than three years and is converting to become a state member bank.

FRB

FASB Issues Taxonomy Staff Q&A Document on How to Apply the Taxonomy to COVID-19 Pandemic and Relief Disclosures

Press Release June 22, 2020

The FASB Taxonomy staff today issued a question-and-answer document (Q&A) that responds to frequently asked questions about the application of the US GAAP Financial Reporting Taxonomy (Taxonomy) to disclosures related to the effects of the coronavirus (also referred to as COVID-19) pandemic and relief efforts.

FASB

SUPERVISORY UPDATE NEWS SUMMARY

Texas Department of Banking 9 July 15, 2020

TITLE TYPE/DATE DESCRIPTION SOURCE

FinCEN Guidance Regarding Due Diligence Requirements under the Bank Secrecy Act for Hemp-Related Business Customers

Press Release June 29, 2020

FinCEN is issuing this guidance to address questions related to BSA/AML regulatory requirements for hemp-related business customers. This guidance explains how financial institutions can conduct due diligence for hemp-related businesses and identifies the type of information and documentation financial institutions can collect from hemp-related businesses to comply with BSA regulatory requirements. This clarification is intended to enhance the availability of financial services for, and the financial transparency of, hemp-related businesses in compliance with federal law. This guidance supplements the December 3, 2019 interagency statement on providing financial services to customers engaged in hemp-related businesses (December Hemp Statement)

FinCEN

FinCEN Issues Advisory on Imposter Scams and Money Mule Schemes Related to COVID-19

Press Release July 7, 2020

The FinCEN issued an advisory today to alert financial institutions to potential indicators of imposter scams and money mule schemes, which are two forms of consumer fraud observed during the COVID-19 pandemic. The advisory contains descriptions of these scams and schemes, financial red flag indicators for both, and information on reporting suspicious activity.

FinCEN

Advisory on the Financial Action Task Force-Identified Jurisdictions with Anti-Money Laundering and Combating the Financing of Terrorism Deficiencies

FIN-2020-A004 July 15, 2020

On June 30, 2020, the Financial Action Task Force (FATF) reissued its list of jurisdictions with strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing, with updates to two jurisdictions. The changes may affect U.S. financial institutions’ obligations and risk-based approaches with respect to relevant jurisdictions.

FinCEN

OCC Reports Mortgage Performance Remains Stable

NR 2020-78 June 16, 2020

The OCC reported the performance of first-lien mortgages in the federal banking system remained stable during the first quarter of 2020.

OCC

SUPERVISORY UPDATE NEWS SUMMARY

Texas Department of Banking 10 July 15, 2020

TITLE TYPE/DATE DESCRIPTION SOURCE

OCC Interim Final Rule Reduces Assessments in Response to COVID-19

NR 2020-79 June 22, 2020

OCC Bulletin 2020-63 June 22, 2020

The OCC approved an interim final rule (IFR) that will reduce assessments due to be paid to the OCC on September 30, 2020.

The OCC is providing this relief in response to the impact of the national emergency related to coronavirus (COVID-19).

OCC

OCC Highlights Key Risks for Federal Banking System

NR-2020-86 June 29, 2020

The OCC reported the key issues facing the federal banking system and the effects of the COVID-19 pandemic on the federal banking industry in its Semiannual Risk Perspective for Spring 2020.

OCC

OCC Announces Project REACh to Promote Greater Access to Capital and Credit for Underserved Populations

PR-2020-89 July 10, 2020

The OCC announced the launch of Project REACh to promote financial inclusion through greater access to credit and capital.

OCC

Prohibition Against Interstate Deposit: Annual Host State Loan-to-Deposit Ratios

OCC Bulletin 2020-61 June 17, 2020

The OCC, FRB, and FDIC (collectively, the agencies) issued on June 2, 2020, the host state loan-to-deposit (LTD) ratios. The OCC is issuing this bulletin to inform national banks1 about how these ratios are used to determine compliance with section 109 of the Riegle–Neal Interstate Banking and Branching Efficiency Act of 1994 (IBBEA).

OCC FDIC FRB

COVID-19 Relief Programs: Preemption

OCC Bulletin 2020-62 June 17, 2020

Federal, state, and local governments have taken many actions to respond to the economic disruption caused by the spread of COVID-19. While the OCC recognizes that a wide range of stakeholders, including state and local governments, have an important role to play in the country’s COVID-19 response, the agency reminds stakeholders that banks are governed primarily by uniform federal standards.

OCC

SUPERVISORY UPDATE NEWS SUMMARY

Texas Department of Banking 11 July 15, 2020

TITLE TYPE/DATE DESCRIPTION SOURCE

Unfair or Deceptive Acts or Practices and Unfair, Deceptive, or Abusive Acts or Practices: New Comptroller’s Handbook Booklet and Rescissions

OCC Bulletin 2020-65 June 29, 2020

The OCC issued the new “Unfair or Deceptive Acts or Practices and Unfair, Deceptive, or Abusive Acts or Practices” booklet of the Comptroller’s Handbook. This booklet is part of the Consumer Compliance series of the Comptroller’s Handbook. The booklet contains information for examiners regarding supervision of a bank’s practices related to section 5 of the FTC Act, which prohibits banks from engaging in unfair or deceptive acts or practices (UDAP), and sections 1031 and 1036 of the Dodd–Frank Wall Street Reform and Consumer Protection Act, which prohibit unfair, deceptive, or abusive acts or practices (UDAAP).

OCC

Fictitious Regulatory Agency Notification: Fictitious Notification Regarding the Release of Funds Supposedly Under the Control of the Office of the Comptroller of the Currency

OCC Alert 2020-3 June 22, 2020

Consumers have reported receiving fictitious email messages, allegedly initiated by the OCC or senior officials of the agency in conjunction with the Comision Ejecutiva de Atencion a Victimas (CEAV), regarding funds purportedly under the control of the OCC.

OCC

Governor Abbott Announces Temporary Pause Of Additional Reopening Phases

Press Release June 25, 2020

Governor Greg Abbott announced that the State of Texas will pause any further phases to open Texas as the state responds to the recent increase in positive COVID-19 cases and hospitalizations. Businesses that are permitted to open under the previous phases can continue to operate at the designated occupancy levels and under the minimum standard health protocols provided by the Texas Department of State Health Services.

TxGov

Governor Abbott Announces $41 Million in Federal COVID-19 Emergency Funding For Local Governments

Press Release July 15, 2020

Governor Greg Abbott today announced that his Public Safety Office (PSO) will provide $41 million in federal funds to assist cities and counties throughout the COVID-19 response. These funds come from the Coronavirus Emergency Supplemental Funding (CESF) Program authorized by the federal Emergency Appropriations for Coronavirus Health Response and Agency Operations Act. The first round of awards, totaling $7 million, will be distributed this week.

TxGov

SUPERVISORY UPDATE NEWS SUMMARY

Texas Department of Banking 12 July 15, 2020

TITLE TYPE/DATE DESCRIPTION SOURCE

Governor Abbott Takes Executive Action To Contain Spread Of COVID-19

Proclamation June 26, 2020

Governor Greg Abbott issued an executive order limiting certain businesses and services as part of the state’s efforts to contain the spread of COVID-19. This decision comes as the number of people testing positive for COVID-19 and the number of hospitalizations have increased and the positivity rate in Texas increased above 10%, which the Governor previously stated would lead to further preventative action. The targeted, measured directives in the executive order are based on links between certain types of businesses and services and the recent rise in positive cases throughout the state.

TxGov

Governor Abbott Extends Disaster Declaration

Proclamation June 30, 2020

Governor Greg Abbott extended a State of Disaster for all Texas counties in the midst of violent protests that endanger public safety and threaten property loss and damage. The original proclamation was issued May 31,2020.

TxGov

Governor Abbott Extends Disaster Declaration

Proclamation July 2, 2020

Governor Greg Abbott issued a proclamation extending his Disaster Declaration for all Texas counties in response to COVID-19, originally issued on March 13.

TxGov

Governor Abbott Establishes Statewide Face Covering Requirement, Issues Proclamation To Limit Gatherings

Proclamation July 2, 2020

Governor Greg Abbott today issued an Executive Order requiring all Texans to wear a face covering over the nose and mouth in public spaces in counties with 20 or more positive COVID-19 cases, with few exceptions. The Governor also issued a proclamation giving mayors and county judges the ability to impose restrictions on some outdoor gatherings of over 10 people, and making it mandatory that, with certain exceptions, people cannot be in groups larger than ten and must maintain six feet of social distancing from others.

TxGov

SUPERVISORY UPDATE NEWS SUMMARY

Texas Department of Banking 13 July 15, 2020

TITLE TYPE/DATE DESCRIPTION SOURCE

Governor Greg Abbott Renews Hurricane Harvey Disaster Declaration

Proclamation July 10, 2020

Texas Governor Greg Abbott has renewed a disaster proclamation for 60 counties affected by Hurricane Harvey. Included in the original proclamation of August 23, 2017, were the counties of Aransas, Austin, Bee, Brazoria, Calhoun, Chambers, Colorado, DeWitt, Fayette, Fort Bend, Galveston, Goliad, Gonzales, Harris, Jackson, Jefferson, Jim Wells, Karnes, Kleberg, Lavaca, Liberty, Live Oak, Matagorda, Nueces, Refugio, San Patricio, Victoria, Waller, Wharton and Wilson. Subsequently added on August 26, 2017, were Angelina, Atascosa, Bastrop, Burleson, Bexar, Brazos, Caldwell, Cameron, Comal, Grimes, Guadalupe, Hardin, Jasper, Kerr, Lee, Leon, Madison, Milam, Montgomery, Newton, Orange, Polk, Sabine, San Augustine, San Jacinto, Trinity, Tyler, Walker, Washington and Willacy counties.

TxGov

Governor Abbott Extends Statewide COVID-19 Disaster Declaration

Proclamation July 10, 2020

Governor Greg Abbott today issued a proclamation extending his Disaster Declaration for all Texas counties in response to COVID-19. Originally issued on March 13th, the Disaster Declaration provides the state a number of resources to effectively serve Texans as the Lone Star State continues to mitigate the spread of COVID-19.

TxGov

SBA and Treasury Announce New EZ and Revised Full Forgiveness Applications for the Paycheck Protection Program

Press Release June 17, 2020

Today, the U.S. Small Business Administration (SBA), in consultation with the Treasury, posted a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility Act of 2020, signed into law by President Trump on June 5, 2020.

Treasury

SBA and Treasury Announce Enhanced Transparency Regarding the Paycheck Protection Program

Press Release June 19, 2020

The U.S. Small Business Administration (SBA) and the Treasury have agreed with the bipartisan leaders of the U.S. Senate Small Business Committee to make public additional data regarding the Paycheck Protection Program (PPP). This agreement will ensure that the interests of both transparency and protections for small businesses are served.

Treasury

SUPERVISORY UPDATE NEWS SUMMARY

Texas Department of Banking 14 July 15, 2020

TITLE TYPE/DATE DESCRIPTION SOURCE

SBA and Treasury Announce Release of Paycheck Protection Program Loan Data

Press Release July 6, 2020

The U.S. Small Business Administration, in consultation with the Treasury, today announced it was releasing detailed loan-level data regarding the loans made under the Paycheck Protection Program (PPP). This disclosure covers each of the 4.9 million PPP loans that have been made.

Treasury

SUPERVISORY UPDATE NEWS SUMMARY

______________________________________________________________________________________________________________

Texas Department of Banking 15 July 15, 2020

INDUSTRY PUBLICATIONS

Department of Banking - Overall Texas Banking Activity - Data as of June 29, 2020

Department of Banking - Agency Profile - June 2020

Department of Banking - Top 100 Banks in Texas - Data as of March 31, 2020

Department of Banking - Banker Economic and Business Survey - Second Quarter 2020 Results

Department of Banking - Strategic Plan: Fiscal Years 2021-2025 - June 2020

Department of Banking - Workforce Plan: Fiscal Years 2021-2025 - June 2020

CSBS - Community Bank Sentiment - Second Quarter 2020

FDIC - State Profiles – First Quarter 2020 - Quarterly summary of banking and economic conditions in each state

FRB Beige Book - Summary of Commentary on Current Economic Conditions - July 15, 2020

FRB - Community Banking Connections – June 2020 - Article include Regulatory Actions in Response to COVID-19, CECL Corner: CECL and the CARES Act, Conducting Offsite Bank Examinations, and Loan Modifications and COVID-19

FRB Dallas - Southwest Economy – Second Quarter 2020 - Articles include: COVID-19, Oil Price Collapse to Challenge Banks in 2020; LiftFund’s Microlending Helps Small Businesses Battle COVID-19; Black Workers Face “Last Hired, First Fired.”

FRB Dallas - Your Texas Economy - An overview of the Texas economy as of June 22, 2020, examining job growth, unemployment trends, and the performance of key industry sectors

FRB Kansas City - What to Do about Fannie and Freddie: A Primer on Housing Finance Reform - July 9, 2020

FRB Saint Louis - The Impact of the Fed’s Response to COVID-19 So Far - June 16, 2020

FRB Saint Louis - The Rise of Cyber Branches in Banking - June 30, 2020

SUPERVISORY UPDATE NEWS SUMMARY

______________________________________________________________________________________________________________

Texas Department of Banking 16 July 15, 2020

OTHER RESOURCES

Bloomberg Business and Financial News

Consumer Financial Protection Bureau (CFPB)

The Financial Forecast Center - Discount Rate Information

FFIEC Information Technology Handbook InfoBase

FFIEC BSA/AML Examination Manual InfoBase

Financial Accounting Standards Board (FASB)

Financial Action Task Force (FATF)

Financial Crimes Enforcement Network (FinCEN)

Office of Foreign Assets Control, U.S. Treasury (OFAC)

Real Estate Market Reports (Texas A&M RE Center)

Simply Stated (CSBS podcast)

Temporary Liquidity Guarantee Program

Texas Constitution and Statutes

The Texas Economy – Texas Comptroller

Texas and National Economy – Federal Reserve Bank of Dallas

Troubled Asset Relief Program (TARP)

Uniform Bank Performance Reports (UBPR) and Users Guide

SUPERVISORY UPDATE NEWS SUMMARY

____________________________________________________________________________________________________________

Texas Department of Banking 17 July 15, 2020

ACRONYMS AND ABBREVIATIONS

ACRONYM/ABBREVIATION MEANING AML Anti-Money Laundering

ASU Accounting Standards Update

BIS Bank for International Settlements

BSA Bank Secrecy Act

CFR Code of Federal Regulations

CRA Community Reinvestment Act

CRE Commercial Real Estate

CFPB Consumer Financial Protection Bureau

CFTC Commodity Futures Trading Commission

CSBS Conference of State Bank Supervisors

Dodd-Frank Act The Dodd-Frank Wall Street Reform and Consumer Protection Act

DOJ Department of Justice

FASB Financial Accounting Standards Board

FC Finance Commission of Texas

FCA Farm Credit Administration

FDIC Federal Deposit Insurance Corporation

FDIC-OIG FDIC Office of Inspector General

FFIEC Federal Financial Institutions Examination Council

SUPERVISORY UPDATE NEWS SUMMARY

____________________________________________________________________________________________________________

Texas Department of Banking 18 July 15, 2020

ACRONYM/ABBREVIATION MEANING FHA Federal Housing Authority

FHFA Federal Housing Finance Agency

FinCEN Financial Crimes Enforcement Network

FRB (or Fed or FR) Federal Reserve Board or Federal Reserve

FTC Federal Trade Commission

HUD Housing and Urban Development Department

NCUA National Credit Union Association

OCC Office of the Comptroller of the Currency

OFAC Office of Foreign Asset Control

OIG Office of Inspector General

SDN Specially Designated National

SEC Securities and Exchange Commission

TDB Texas Department of Banking

TSSB Texas State Securities Board

Treasury U.S. Department of Treasury