2019 Journal of Community Bank Case Studies

Utah Valley University

THIRD PLACE:

EGRRCPA Provisions and Impct on Case Study Bank

$ Impact expected by year end 2019

Provision

Benefit Bank

Balance Sheet

Net Income

Simplified Capital Rule

N

N/A

N/A

Small Bank Holding Company Threshold

N

N/A

N/A

Highly Volatile CRE

N

N/A

N/A

Qualified Mortgage

N

N/A

N/A

Escrow Requirements

N

N/A

N/A

HMDA

N

N/A

N/A

Waiting Period on Credit Offers

N

N/A

N/A

Exam Cycle

Y

Unquantifiable

Unquantifiable

Volcker Rule

N

N/A

N/A

Short Form Call Report

N

N/A

N/A

People’s Utah Bancorp relies on third parties for compliance purposes. Jon Allen, chief compliance officer, explained, “Other than having an internal audit department, we also use external audit firms to help us with making sure our financial statements are accurate and controls are working the way they are designed to work to protect the bank and its consumers” (Allen). Allen also explained that they hire outside attorneys, consultants, and purchase both training and software to aid compliance efforts. Part III: Review of Relevant EGRRCPA Provisions and Impact on Bank The Economic Regulatory Relief and Consumer Protection Act (EGRRCPA) was signed by President Trump on May 24, 2018 with the intention of helping community banks receive

regulatory relief and thrive in a growing economy. However, People’s Intermountain Bank has yet to experience a significant and quantifiable change. As mentioned previously, People’s Intermountain Bank is a conservative, well-capitalized, and well-managed bank. It is a bank that strictly follows its core competencies and strategy. Due to the strategy and size of People’s Intermountain Bank, it has not been able to take advantage of many of the provisions outlined in S.2155. The effects of the provisions are as follows: Exam Cycle People’s Intermountain Bank saw minimal effect from S.2155 because of the bank’s strategy. The most relief felt by the bank came from the extension of the exam cycle. According to S.2155, banks under $3 billion in assets that receive positive CAMELS ratings (Capital adequacy, asset quality, management, earnings, liquidity,

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