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Summary
Title IX of the US Housing legislation could create a new growth pathway for community banks by easing constraints around deposits, bank formation and rural market expansion. By expanding the reciprocal deposit thresholds that are excluded from brokered-deposit treatment, the legislation may give community banks more flexibility to retain larger local relationships, including municipalities, businesses, nonprofits and other core community depositors without triggering more restrictive brokered-deposit rules.
The bill also looks beyond compliance relief to address the future pipeline of community banking. It directs regulators to streamline applications, provide caseworker support, encourage mentor relationships and review capital-raising and regulatory barriers that may slow new bank formation. A pilot program would also allow qualifying new community banks to phase in capital standards and adjust approved business plans as they build scale.
For rural markets, the legislation calls for a closer look at the rules and market conditions that limit depository institution growth, capital adequacy, profitability, and formation.
Join the S&P Global News & Research team and industry experts for a timely discussion on what the 21st Century ROAD Act could mean for community banking, from deposit strategy and new bank formation to rural market opportunity and long-term growth.
Speakers
S&P Global Market Intelligence
Lauren Seay
Senior Editor
Lauren leads S&P Global Market Intelligence's banking news, overseeing a team of reporters focused on covering banks of all sizes and bank regulation. She started at S&P as a banking reporter four years ago covering M&A, community banking and digital banking trends. Lauren is based in Charlottesville.
She holds a B.A. in communication with a concentration in journalism from George Mason University.
Klaros
Brian Graham
Partner
Brian Graham's four-plus decades of experience span the public and private sector. Early in his career he was a M&A investment banker at Morgan Stanley, the senior financial services aide to then-Congressman Charles E. Schumer during the thrift crisis, and as a staff member on the Brady Commission, which investigated the causes of the 1987 stock market crash. After holding various operating executive positions at Fannie Mae, Brian led the transformation of CapitalSource into a bank. He then led financial services investments as a partner in Blue Ridge Capital Management. He served most recently as CEO of BancAlliance, a network of more than 300 community banks that provides lending, fintech partnerships, vendor management and other services to its members.
Brian received his undergraduate degree from Harvard College and his MBA from Stanford University.
Troutman Pepper Locke
James Stevens
Partner
James is the co-leader of the firm’s Financial Services Industry Group. He has significant experience working with clients across the entire financial services sector, regularly working with public and private companies such as banks, neobanks, marketplace lenders, and other fintech and financial services providers and partners.
James provides comprehensive corporate and regulatory advice to clients in connection with matters such as formation, licensing, mergers and acquisitions, securities offerings and banking as a service (BAAS), and other program agreements. He has particular experience representing parties in complex change in control transactions involving total business plan changes, mass employee lift-outs, and other complicating factors. He also assists with employment agreements and short- and long-term incentive arrangements for executives and often serves as the principal outside counsel for his clients. James is recognized for providing innovative structuring and documenting solutions to help his clients’ business arrangements comply with regulatory requirements.
Questions?
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