June 15, 2019
Jeff Cardone presented at the New York Credit Union Association Excel 19 Forum on June 15, 2019. The presentation titled “Do You Want to Buy a Bank?” The presentation focused on how the acquisition of banks by credit unions has become more common. The presentation also analyzed the factors that drive credit union/bank transactions, including how a bank acquisition is structured, the regulatory approval process and key considerations when assessing whether an acquisition of a bank should be a part of the credit union’s strategic plan.
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June 6, 2019
To our clients and friends:
On May 24, 2019, the Office of the Comptroller of the Currency (“OCC”) issued its final rule (which becomes effective July 1, 2019) to allow a federal savings association with total consolidated assets of $20 billion or less as of December 31, 2017 to elect to operate with national bank powers without converting to a national bank charter. This election would allow an eligible federal savings association to exceed its statutory commercial and consumer lending limits and avoid compliance with the qualified thrift lender test.
While the final rule is welcome news for federal savings associations, significant interpretative questions remain as to how it may be utilized by a federal savings association subsidiary of a stock or mutual holding company. Specifically, the final rule does not address whether a subsidiary savings association of a savings and loan holding company that elects to operate with national bank powers would still be required to satisfy the qualified thrift lender test, which is a statutory requirement applicable to savings and loan holding companies. The OCC recognizes this issue and has directed all interpretative questions to the Federal Reserve. We have discussed this with the Federal Reserve Board staff and they are currently reviewing the final rule and its possible impact on savings and loan holding companies. However, they have not provided further guidance on this issue.
For more information, including a summary of the OCC’s final rule, please see the attached News Alert.
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June 4, 2019
Gary A. Lax presented as “Banking the Cannabis Industry” at the Maryland Bankers Association Annual Convention on June 4, 2019, in Amelia Island, FL. The presentation discussed marijuana-related businesses and Industrial Hemp, the status of federal and state laws, and the elements of a risk assessment and compliance program to on-board customers and provide financial products and services to these customers.
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May 30, 2019
Jeff Cardone presented at the Wisconsin Bankers 2019 Directors Summit on May 29 and May 30, 2019. The presentation titled “Corporate Governance Hot Buttons in Today’s Regulatory Environment.” The presentation focused on evolving trends in corporate governance, including topics related to regulatory reform, how M&A and capital alternatives fit into the Board’s strategic plan, incentive compensation, cybersecurity and vendor management.
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May 17, 2019
On May 9, 2019, Pathfinder Bancorp, Inc. (“Pathfinder”), Oswego, New York, the holding company for Pathfinder Bank, completed a private placement of $20.8 million of shares of common stock, a warrant to purchase shares of common stock, and shares of convertible perpetual preferred stock.
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