The Dodd-Frank Act Small Bank Survey

Transcription

1 The Dodd-Frank Act Small Bank Survey Agreement to Participate Does your bank agree to participate in this study? (If your bank does not agree to participate, you will be redirected away from the survey.) Does your bank have more than $10 billion in assets? (If so, please do not participate in this survey.) Bank Characteristics 1. As of the end of the most recent quarter, what was your bank's approximate asset size? ($US) 2. As of the end of the most recent quarter, what were your bank's approximate total deposits? ($US) 3. As of the end of the most recent quarter, approximately how many employees (fulltime equivalent) did your bank have? 4. How is your bank chartered? o State-chartered and not a Federal Reserve member o State-chartered and a Federal Reserve member o Nationally chartered o Other 5. What type of charter does your bank hold? o Bank o Thrift (including savings association, savings bank, savings and loan association, or mutual) 6. Which of the following best describes your bank? o Local o Intrastate-Regional o Statewide o Interstate-Regional o National International 7. How many branches does your bank currently have? 8. How has the number of branches changed since 2008? o Stayed the same o Decreased o Increased

2 9. Which of the following describe your bank? Please check all that apply. o Public o Private o Closely held o Family-owned o Traded on an exchange o S Corp o C Corp o Mutual Other If you answered "other" to the question above, please briefly describe. 10. What best describes the organizational structure of your bank? o Subsidiary of a financial holding company o Stand-alone o Other If you answered "other" to the question above, please briefly describe. 11. Approximately what percentage of your bank's income was classified as interest income for FY2012? 12. Approximately what percentage of your bank's income was classified as non interest income for FY2012? 13. What was your bank's largest source for non-interest income for FY2012? 14. What was your bank's return on assets for FY2012? 15. In what state is your bank headquartered? 16. Which market type(s) best describes the geographic area your bank serves? Please check all that apply. o Rural (population less than 50,000) o Small metropolitan area (population greater than 50,000 and less than 500,000) o Large metropolitan area (population greater than 500,000) 17. How would your bank classify the primary geographic area(s) it serves based on census classification? Please check all that apply. o Low Income o Moderate Income o Middle Income o Upper Income

3 Products and Services 18. Please select from the following options to describe whether your bank currently offers the product or service, if your bank has discontinued the product of service as a result of the Dodd-Frank Act, and/or if your bank anticipates discontinuing the product or service as a result of the Dodd-Frank Act. Please check all that apply. Personal Checking Personal Savings Business Checking Business Savings Overdraft Protection Certificates of Deposit Credit Cards Debit Cards Residential Mortgages Home Equity Lines of Credit Mortgage Servicing Insurance Small Business Lending (SBA) Small Business Lending (non-sba) Agricultural Lending Commercial Real Estate Lending Construction and Development Lending Commercial and Industrial Lending Other Commercial Lending Securities and Investment Products Derivatives Remittance Transfers Not Currently Offered Currently Offered Discontinued as a Result of the Dodd-Frank Act Anticipate Discontinuing as a Result of the Dodd-Frank Act 19. Please identify, in the order of importance, the three products or services that contributed most to your bank s revenue in the past twelve months. (1) (2) (3)

4 20. Please identify, in order of importance, the three products or services that your bank anticipates will contribute most to its revenue in the next twelve months. (1) (2) (3) 21. Please identify any products, services, or lines of business that your bank has added or plans to add as a result of the Dodd-Frank Act. Resources Devoted to Regulatory and Compliance Activities 22. Did your bank engage in any of the following activities before the passage of the Dodd-Frank Act in July 2010? Please check all that apply. o Met with an elected official to discuss regulatory policy issues o Discussed regulatory issues with regulators (not including routine contacts with examiners) o Submitted public comments in connection with proposed regulations, including through a representative organization or outside law firm o Held a membership in a representative organization that engages in advocacy on regulatory issues o Engaged in other public advocacy such as letters to the editor, op ed pieces, open letters, or blog articles ne of the above 23. Has your bank engaged in any of the following activities after the passage of the Dodd-Frank Act in July 2010? Please check all that apply. o Met with an elected official to discuss regulatory policy issues o Discussed regulatory issues with regulators (not including routine contacts with examiners) o Submitted public comments in connection with proposed regulations, including through a representative organization or outside law firm o Held a membership in a representative organization that engages in advocacy on regulatory issues o Engaged in other public advocacy such as letters to the editor, op ed pieces, open letters, or blog articles ne of the above 24. Has your bank been contacted by any of the following regulatory authorities regarding the feasibility of implementing Dodd-Frank regulations? Please check all that apply. o State bank regulators o Federal Reserve o Office of the Comptroller of the Currency o Consumer Financial Protection Bureau o Federal Deposit Insurance Corporation o Securities and Exchange Commission o Commodity Futures Trading Commission

5 o o o State securities regulators State insurance regulators None of the above 25. Has your bank been contacted by regulatory authorities regarding your bank s participation in a small bank advisory council or panel to assess the impact of Dodd- Frank regulations on small banks? If you answered "yes" to the question above, please briefly describe the nature of the contact. 26. Who handles your bank's regulatory compliance? Please check all that apply. o In-house legal counsel o External legal counsel o In-house compliance personnel o External compliance personnel o External consultants o Other If you answered "other" to the question above, please briefly describe who handles your bank's regulatory compliance? 27. Has your bank engaged an outside consultant for assistance with regulatory changes related to the Dodd-Frank Act? 28. Does your bank plan to engage an outside consultant for assistance with regulatory changes related to the Dodd-Frank Act? 29. How has the amount of resources that your bank spends annually on regulatory compliance changed since the passage of the Dodd-Frank Act in July 2010? o Has decreased by more than 5% o Has decreased by less than 5% o Has not changed o Has increased by less than 5% o Has increased by more than 5% 30. How many compliance/legal personnel did your bank have in July 2010?

6 31. How many compliance/legal personnel does your bank have currently? 32. Does your bank anticipate hiring additional compliance/legal personnel in the next twelve months? If you answered "yes" to the question above, how many additional compliance/legal personnel does your bank plan to hire in the next twelve months? 33. Relative to the requirements of the Bank Secrecy Act (BSA), how does your bank expect the requirements imposed under the Dodd-Frank Act will compare? o Substantially less burdensome than the BSA o Slightly less burdensome than the BSA o As burdensome as the BSA o Slightly more burdensome than the BSA o Substantially more burdensome than the BSA Capital 34. What was your bank s Tier 1 capital ratio prior to July 2010? 35. What is your bank s Tier 1 capital ratio currently? 36. If your bank s Tier 1 capital has changed since July 2010, what accounts for the change? Please check all that apply. o Business reasons o Merger/Acquisition o Recommendation of bank regulators o Specific regulatory requirements o Anticipation of Basel III changes o Other If you answered "other" to the question above, please briefly describe. 37. What sources/strategies does your bank plan to pursue, if any, for increasing its Tier 1 Capital? Please check all that apply. o Retain earnings o Private placement o Public offering o Raise additional capital from existing shareholders o Sell assets o Cut dividends t applicable o Other

7 If you answered "other" to the question above, please briefly describe. 38. How does your bank anticipate its Tier 1 capital ratio will change in the next 5 years? o Stay the same o Increase o Decrease 39. If your bank anticipates a change in its Tier 1 capital ratio, what accounts for the anticipated change? Please check all that apply. o Business reasons o Merger/Acquisition o Recommendation of bank regulators o Specific regulatory requirements o Basel III changes o Other If you answered "other" to the question above, please briefly describe. 40. What effect will the phasing out of Trust Preferred Securities as Tier 1 capital have on your bank? 41. Did your bank participate, or is your bank currently participating, in any of the following programs? Please check all that apply. o Troubled Asset Relief Program (TARP) o Small Business Lending Fund (SBLF) o Community Development Capital Initiative (CDCI) 42. Does your bank plan to take advantage of the following programs? Please check all that apply. o Small Business Loan Fund (SBLF) o Community Development Capital Initiative (CDCI) FDIC Insurance 43. By approximately what percentage did your bank's rates for federal deposit insurance change following the passage of the Dodd-Frank Act? Please indicate whether the change was positive or negative.

8 44. Will your bank s activities or revenues change in response to the manner in which deposit insurance premiums are now assessed? If you answered "yes" to the question above, please briefly describe. 45. Has the discontinuation of the temporary unlimited FDIC coverage for non-interest bearing transaction accounts (TAG Program) affected your bank? If you answered "yes" to the question above, please briefly describe how your bank has been affected. 46. Is the current FDIC insurance coverage level adequate for the needs of your bank's customers? Interchange Fees 47. Has the Durbin Amendment's regulation of debit interchange fees and transaction routing affected your bank? t applicable If you answered "yes" to the question above, please briefly describe how your bank has been affected. 48. Has the Durbin Amendment affected your bank s customers? t applicable

9 If you answered "yes" to the question above, please briefly describe how your bank's customers have been affected. Municipal Advisors 49. The Dodd-Frank Act created a new registration obligation for municipal advisors. How many employees at your bank have registered as municipal advisors? 50. Has your bank changed the way it does business with municipalities in response to the new requirements regarding municipal advisors? t applicable If you answered "yes" to the question above, please briefly describe the changes. 51. Does your bank anticipate changing the way it interacts with municipalities in response to the new requirements regarding municipal advisors? t applicable If you answered "yes" to the question above, please briefly describe the anticipated changes. Regulatory Oversight 52. What agency is your bank's primary federal regulator? o Federal Reserve o Office of the Comptroller of Currency o Federal Deposit Insurance Corporation 53. Has your bank or its holding company s primary regulatory agency changed since July 2010? If you answered "yes" to the question above, please name the former regulatory agency and the current regulatory agency (in that order).

10 If you answered "yes" to the question above, please briefly describe how this change has affected your bank or its holding company'? 54. How well do your bank's regulatory agencies coordinate with one another? t at all o Very little o Somewhat well o Very well 55. Please provide an example/examples of the types of issues on which there has been coordination. 56. Please provide an example/examples of the types of issues on which there has not been coordination. 57. After the passage of the Dodd-Frank Act, how has the degree of certainty changed as to whether your bank s activities are governed by state law, federal law, or both? o Has decreased significantly o Has decreased slightly o Has not changed o Has increased slightly o Has increased significantly Volcker Rule 58. Although regulators have not yet finalized the Volcker Rule, which places limitations on banks proprietary trading and private fund activities, has your bank modified its activities in anticipation of changes? If you answered "yes" to the question above, please briefly describe the changes.

11 59. Does your bank anticipate that the Volcker Rule will affect the products and services your bank offers to its customers or the fees it charges? If you answered "yes" to the question above, please briefly explain. Incentive-Based Compensation 60. Has your bank changed the structure of its incentive based compensation since the passage of the Dodd-Frank Act in July 2010? t applicable If you answered "yes" to the question above, please briefly describe the changes. 61. How does your bank anticipate these changes will affect its employees' overall performance? o Decrease significantly o Decrease slightly change o Increase slightly o Increase significantly 62. How does your bank anticipate these changes will affect its ability to attract highquality employees? o Decrease significantly o Decrease slightly change o Increase slightly o Increase significantly Consumer Financial Protection Bureau 63. Has your bank hired additional compliance or legal personnel specifically in response to regulatory initiatives of the Consumer Financial Protection Bureau?

12 If you answered "yes" to the question above, how many additional personnel has your bank hired for this purpose? 64. Have initiatives of the Consumer Financial Protection Bureau affected your bank s business activities? If you answered "yes" to the question above, please briefly describe. 65. Has your bank been affected by conflicting mandates from the Consumer Financial Protection Bureau and your safety and soundness regulator? If you answered "yes" to the question above, please briefly describe. 66. Has your bank altered customer disclosures in response to Consumer Financial Protection Bureau initiatives, or does your bank anticipate doing so? If you answered "yes" to the question above, please briefly describe. 67. Does your bank anticipate its customers being affected by the initiatives of the Consumer Financial Protection Bureau? If you answered "yes" to the question above, please briefly describe. Mortgage Finance 68. In the past five years, how has your bank altered the nature, mix, and volume of mortgage products it offers to retail consumers?

13 69. If your bank has altered the nature, mix, and volume of mortgage products it offers, why has it done so? Please check all that apply. o For business reasons o In response to specific regulatory requirements o In response to bank examiner requests o In response to demand changes in the secondary market o In anticipation of future regulatory changes o Other If you answered "other" to the question above, please briefly describe. 70. Does your bank anticipate altering the nature, mix, and volume of mortgage products it offers in response to regulatory changes? If you answered "yes" to the question above, please briefly list or describe the anticipated changes. 71. Please rate how each of the following affects your bank s mortgage offerings. Consumer Financial Protection Bureau Definition of qualified mortgage Definition of qualified residential mortgage Significant Negative Impact Slight Negative Impact No Impact Slight Positive Impact Significant Positive Impact Unsure Basel III Pressure from bank examiners Low-interest rate environment Changed underwriting requirements by Fannie Mae and/or Freddie Mac 72. In the past five years, has your bank changed its mortgage underwriting practices? t applicable

14 If your bank has changed its mortgage underwriting practices, what was the reason and how have the practices changed? 73. How does your bank anticipate changing its mortgage underwriting requirements in the next two years? 74. If your bank anticipates changing mortgage underwriting requirements, please briefly describe the reason for, and nature of, the changes. 75. Does your bank anticipate that it will make any loans that do not meet the definition of a "qualified mortgage"? t applicable Derivatives 76. In the past five years, has your bank or its holding company engaged in derivatives transactions? If you answered "yes" to the question above, please briefly describe the types and purposes of the transactions. 77. Has your bank or its holding company already limited, or does your bank or its holding company anticipate limiting, its derivatives activities in response to new regulatory requirements? t applicable

15 If you answered "yes" to the question above, please briefly describe how your bank or its holding company will change its derivatives activities and the anticipated effect(s) of such changes. Fees and Revenues 78. On average, how have the fees your bank charges customers changed since the passage of the Dodd-Frank Act in July 2010? o Decreased by more than 5% o Decreased by less than 5% o Remained the same o Increased by less than 5% o Increased by more than 5% If fees have changed, what accounts for these changes?

16 79. What effect has the Dodd-Frank Act had on the fees associated with the following products or services that your bank offers? Not Applicable Decreased by more than 5% Decreased by less than 5% Remained the same Increased by less than 5% Increased by more than 5% Personal Checking Personal Savings Business Checking Business Savings Overdraft Protection Certificates of Deposit Credit Cards Debit Cards Residential Mortgages Home Equity Lines of Credit Mortgage Servicing Insurance Small Business Lending (SBA) Small Business Lending (non-sba) Agricultural Lending Commercial Real Estate Lending Construction and Development Lending Commercial and Industrial Lending Other Commercial Lending Securities and Investment Products Derivatives Remittance Services

17 80. How has your bank's return on equity changed since July 2010? o Decreased significantly o Decreased slightly o Has not changed o Increased slightly o Increased significantly 81. Does your bank anticipate that the Dodd-Frank Act s identification of large bank holding companies and certain non-bank financial institutions for special regulation will affect your bank's ability to fund its activities? If you answered "yes" to the question above, please briefly describe. 82. Rate the following areas of the Dodd-Frank Act according to their impact on your bank s earnings. Significant Negative Impact Slight Negative Impact No Impact Slight Positive Impact Significant Positive Impact Unsure FDIC Insurance Coverage New Capital Requirements Debit Card Interchange Fees Municipal Advisor Regulation Volcker Rule Volcker Rule Incentive-Based Compensation Consumer Financial Protection Bureau Changes in Mortgage Regulation Derivatives Regulation Systemic Risk Oversight Elimination of the Office of Thrift Supervision

18 Strategic Direction 83. How does your bank anticipate that loosened restrictions on branch banking will affect your bank? 84. Has your bank merged with or been acquired by another bank since July 2010? If you answered "yes" to the question above, please briefly describe why your bank engaged in the transaction(s). 85. Has your bank acquired another bank since July 2010? If you answered "yes" to the question above, please briefly describe why your bank engaged in the transaction(s). 86. Does your bank anticipate merging with, being acquired by, or acquiring another bank in the next five years? If you answered "yes" to the question above, please briefly describe. 87. Is your bank considering taking any of the following actions in the next five years? Please check all that apply. o Switching from a federal charter to a state charter o Switching from a state charter to a federal charter o Becoming a nonbank entity o Switching to a credit union charter o Switching to an industrial loan corporation charter o Discontinuing operations o Other

19 If you answered "other" to the question above, please briefly describe. 88. Does your bank anticipate further consolidation in the banking industry? 89. Is your bank or its holding company considering selling any subsidiary or affiliate operations in the next two years? t applicable If you answered "yes" to the question above, please briefly describe what is being considered and why. 90. Does the fact that the Dodd-Frank Act employs a different regulatory framework for larger banks influence decisions regarding your bank's size? If you answered "yes" to the question above, please briefly explain. 91. Does the fact that the Dodd-Frank Act employs a different regulatory framework for larger banks influence decisions regarding your bank's growth strategy? If you answered "yes" to the question above, please briefly explain. 92. How concerned is your bank about the current interest rate environment? t concerned at all o Slightly concerned o Concerned o Extremely concerned

20 Please briefly describe the nature of your bank's concerns about the current interest rate environment. 93. How concerned is your bank about future interest rate risk. t concerned at all o Slightly concerned o Concerned o Extremely concerned Please briefly describe the nature your bank's concerns about future interest rate risk. Credit Ratings 94. Under the Dodd-Frank Act, references to credit ratings must be eliminated from statutory and regulatory requirements. Has your bank altered its credit analysis practices in response to this provision or related guidance from regulators? If you answered yes to the question above, how has your bank altered its practices? Please check all that apply. o Contracted with outside firms to conduct credit analysis o Hired additional employees to conduct credit analysis o Altered the nature of the securities that your bank purchases o Other If you answered "other" to the question above, please briefly describe the changes. Other Issues 95. Please describe any other issues that are currently affecting the way your bank serves its customers. 96. Please describe any additional issues that your bank has identified as important for it or its customers as a result of the Dodd-Frank Act and corresponding regulations.

21 Follow Up Interview Dr. Rebecca Thacker, Associate Professor of Human Resources Management at Ohio University's College of Business, is conducting a follow-up interview based study for the Mercatus Center to explore in depth how Dodd-Frank compliance affects employees' behavior and individual productivity, and ultimately, bank performance. If your bank would be willing to participate in Dr. Thacker's study, please notify Dr. Thacker at thacker.ras@gmail.com.