Latest News Tagged With “2014”

Subchapter S Bank Association Announces Mobile Banking Partnership

Oct 23, 2014

The Subchapter S Bank Association today announced an exclusive relationship with Unwired Nation to promote the company’s Unwired Banking solution for mobile banking to more than 2,200 community banks in the US. The Association, dedicated to the promotion of issues affecting community banks organized as subchapter s taxable entities, made the announcement at its 17th annual conference. “Unwired is not new to mobile banking,” said Patrick J. Kennedy, Jr., President of Subchapter S Bank Association.  “In partnership with an industry-leading online banking provider, it has powered mobile-banking applications for community banks since 2011.  What the company is doing with Unwired Banking is ground breaking. We believe it’s critical for our members to have the best, most innovative and affordable mobile-banking platform possible as they compete against the big banks. Unwired Banking gives them exactly what they need at a price community banks can afford.” Further highlighting the affordability of the platform, Subchapter S Banks and Unwired Nation have announced a discount exclusively for Subchapter S-type banks.  Read more

Congressional Letter on Capital & Tax Treatment of Sub S Banks

Oct 21, 2014

Below, please find a link to the Congressional Letter signed by 43 Congressional Representatives over the continued concern over the capital and tax treatment of Subchapter S Banks. In particular, they ask that steps are taken to level the playing field between S Corp banks and C Corp banks in regards to Basel III capital conservation buffer rules. Read the Letter  Read more

Patrick J. Kennedy, Jr. to Speak at Bank Holding Company Association Fall Seminar

Aug 26, 2014

Join Patrick J. Kennedy, Jr. at the Bank Holding Company Association's Fall Seminar scheduled for October 6-7 at the Minneapolis Airport Marriott Hotel. Mr. Kennedy will be speaking at the Breakout session on Tuesday on Access to Capital and other Subchapter S Bank Issues. You can register for the conference here.    Read more

Subchapter S Bank Association, Digital Compliance Announce Strategic Partnership

Aug 21, 2014

In our continued quest to identify companies that provide forward thinking opportunities to financial institutions, we are pleased to announce a new partnership agreement with Digital Compliance and Subchapter S Bank Association. Through the partnership, Subchapter S Bank Association members will be introduced to Venminder, Digital Compliance’s dynamic, online vendor management solution for compliance documentation, contract management and guided exam report preparation.  An artful blend of cloud-hosted software and outsourced services, Venminder fits like a glove for community banks of all shapes and sizes.  Read more

S Corp Shareholder Basis Increase

Jul 23, 2014

On July 23, 2014, the Treasury Department and Internal Revenue Service (“IRS”) issued final regulations providing guidance on the circumstances under which an S corporation shareholder may increase their adjusted basis due to indebtedness of the S corporation. Internal Revenue Code (“Code”) Section 1366(d)(1) generally provides that the aggregate amount of losses and deductions taken by a shareholder in any tax year cannot exceed the sum of the shareholder’s adjusted basis in its stock and the adjusted basis of any indebtedness of the S corporation to the shareholder. To the extent a shareholder does not have sufficient basis in their stock to take losses in a particular year, they may use a loan to the S corporation to increase their basis and avoid having to carry forward losses to a subsequent year. The final regulations describe the circumstances under which such loans will be treated as “bona fide” indebtedness of the S corporation to the shareholder – allowing the shareholder to increase their basis by the amount of the indebtedness and recognize the losses currently.  Read more

Assessing the Impact of the Dodd-Frank Act Four Years Later

Jul 19, 2014

On Wednesday, July 23, 2014, the House Financial Services Committee will hold a hearing entitled “Assessing the Impact of the Dodd-Frank Act Four Years Later.” The hearing will explore a variety of specific provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. No. 111-203)—such as the Volcker Rule, the Orderly Liquidation Authority, and consumer financial protection provisions—and the cumulative effect that the legislation has had on the American financial services industry and the economy more generally over the four years since President Obama signed it into law. Most notably, the witness list includes former Congressman Barney Frank, who formerly chaired the Committee and for whom the Act is named (together with former Senator Chris Dodd).  Read more

Subchapter S Bank Association Mounts Grassroots Legislative Initiative

Jul 09, 2014

All too often Washington completely forgets about Subchapter S banks and their special needs and circumstances. We’ve seen it first-hand with the original TARP and SBLF programs. It is now more important than ever that the Subchapter S bank community work in a concerted effort with regulators and legislators to improve capital access to assure the long term ability of Sub S Banks to grow and serve their communities. This can only be achieved through discussion and policy-making that includes the needs and interests of Subchapter S banks at the outset of the process rather than as a mere afterthought. As many of you know, we have conducted meetings with a large number of Sub S bank CEOs from around the country and we continue to hear the concern expressed about long term capital accumulation amid increasingly challenging regulation. We also polled our membership on these issues, and the results were dramatically in favor of positive legislative action to increase the maximum number of allowable shareholders in a Subchapter S bank and to authorize the issuance of preferred stock. Based on the overwhelming support for these reforms, we are organizing a coalition of Subchapter S banks from around the country to begin the process of moving these legislative priorities forward.  Read more

The Sub S Bank Report Volume 17, Issue 2

Jun 23, 2014

      The Latest Edition of The Sub S Bank Report is Now Available for Registered Members Learn More About Net investment Income Tax, Tax Reform Proposal: Limitations on use of Cash Method of Accounting for Tax Purposes, Review of Family Shareholder Rules, S Corporation Tax Extenders Legislation,  Bank M&A Activity and Prices Increasing in 2014, and information on the upcoming 2014 Conference.    Read more

S Corporation Permanent Tax Relief Act of 2014

Jun 10, 2014

The S Corporation Permanent Tax Relief Act of 2014, which consist of HR 4453 (permanent 5-year BIG period) and HR 4454 (basis adjustment for charitable contributions) is expected to be considered by the Rules Committee later today with proposed debate and vote on the bill to take place on Thursday. The Subchapter S Bank Association supports making the five-year recognition period for built in gains permanent. This week's action marks the first time either the House or the Senate has considered a permanent fix.  The case for the shorter five-year recognition period is strong and is certain to help encourage investment. As Jim Redpath testified early this year: I find the BIG tax provision causes many S corporations to hold onto unproductive or old assets that should be replaced. Ten years is a long time and certainly not cognizant of current business-planning cycles. Many times I have experienced changes in the business environment or the economy which prompted S corporations to need access to their own capital, that if taken would trigger this prohibitive tax. This results in business owners not making the appropriate decision for the business and its stakeholders, simply because of the BIG tax." Permanently Extend 5-Year Recognition Period for Built-In Gains  Read more

House Ways and Means Committee Addresses S Corporation Tax Extenders

May 01, 2014

This week the House Ways and Means Committee held a markup of bills that would make permanent certain tax extenders designed to help small businesses. Two of these bills (H.R. 4453 and H.R. 4454) specifically address tax treatment of S corporations. The tax provisions included in both bills were a part of the S Corporation Modernization Act introduced in 2013.  Read more

Subchapter S Bank Association Quoted in “S Corp Consolidation Could Be Side Effect of Basel III”

Apr 28, 2014

Subchapter S Bank Association Presdient, Patrick J. Kennedy Jr., was quoted in the April 25th American Banker article entitled, “S Corp Consolidation Could Be Side Effect of Basel III.” In the article Mr. Kennedy joins others in expressing concern that Basel III could be the last straw for countless S corporation banks as they mull their futures. As we all know, currently banks would be required by Basel III to hold a certain level of capital; failure to do so could result in a prohibition against paying dividends to shareholders. Dividends are critical to those investors, who rely on the payments to cover tax obligations if the bank is profitable. For that reason we strongly believe S Corps face a greater burden under Basel III than C corporations, where the company is taxed for its profit. Concerns also exist that the proposed rules could force more S Corps to delay growth plans or opt to sell themselves.  Read more

Subchapter S - Call to Arms

Apr 23, 2014

The Sub S Bank Association was organized 17 years ago as a way of preserving, protecting and defending what its founders had achieved for community banking. Through the years, the Association has provided valuable educational content and served as a resource for problem solving and opportunity creation through its Annual Conference, Sub S Bank Reports, Webinars, Regional Meetings and one on one strategy seminars with member banks. In 2004, we were successful, with the help of many others, in amending the IRC to increase shareholder numbers from 75 to 100 and dramatically increasing the ability of families to maintain their shareholdings on a multi-generational level. In 2010, we raised over $100,000 to fund the successful  appeal of the TEFRA ruling to the benefit of the Sub S Bank Community, saving Sub S Banks millions of dollars in taxes. The Association has not had professional management largely because of scarce resources, but has been managed by the principals and staff of Kennedy Sutherland LLP, which has provided the substantive content and leadership for the Association since the legislation was passed in 1996. In 2013, we added professional resources which enabled us to expand our educational offering beyond our popular Annual Conference with the creation of a new high-impact conference called Community Banking in a New World (CBNW). The standing room only group of community bank CEOs who attended, were introduced to 25 different professionals sharing various ideas to deliver solutions to community banks' needs -- all focused on improving the bank bottom line and furthering its mission of serving its customers, communities and shareholders. We will continue both of these successful conferences scheduled for October 22-24, 2014 in San Antonio. Our focus will continue to be to provide opportunities for banks "to do well by doing good." TIME FOR ACTION During the past few weeks, we conducted meetings with a large number of Sub S bank CEOs from around the country and we continue to hear the concern expressed about long term capital accumulation amid increasingly challenging regulation. One of these is, of course, the Basel III Capital Conservation Buffer rules, which, thankfully, both ABA and ICBA have taken-up efforts to "fix" by gaining dividend rights for Sub S Banks. Our conclusion after these discussions is that future aggressive legislative and regulatory action needs to be undertaken by the nearly 2,200 community banks who maintain a Subchapter S election. In addition to our periodic congressional and small group bank meetings on these issues, we are considering additional action and respectfully request your assistance, advice and participation. Please complete our survey online or print the survey below and fax or scan your response to 210-228-0781 or Thank you very much. Very truly yours, Patrick J. Kennedy, Jr. President  Read more

Value Creating Initiatives

Apr 14, 2014

The genesis of the Subchapter S Bank Association came from the desire to drive value for community banks and their shareholders. During the last 17 years the Association has continued to work to protect that value and identify other ways in which Sub S banks can maximize their returns.    Read more

The Sub S Bank Report Volume 17 Issue 1

Apr 11, 2014

The Sub S Bank Report Volume 17 Issue 1 The Latest Edition of The Sub S Bank Report is Now Available for Registered Members Learn More About Net investment Income Tax, Subchapter S Bank Association's Letter to Regulators, Shareholder Agreements, Value Creating Incentives, and information on the upcoming 2014 Conference.  Read more

Tax Extenders

Apr 03, 2014

The Finance Committee is scheduled to meet today and the amendment list just released shows there's lots of demand for tax policy within the Committee. Over 90 amendments have been filed. Some of the amendments could have a direct effect on Subchapter S banks. Specifically, two benefits being considered are: • A two-year extension of the shorter, five-year holding period for built in gains; and • A two-year extension of the provision allowing the full deduction of appreciated property from an S corporation to a charity. These provisions have long been part of S Corporation Modernization legislation championed by Senators Cardin (D-MD), Hatch (R-UT), and Roberts (R-KS). Chairman Wyden's goal is to adopt a pared-back list of extenders through the end of next year and then use that time to develop and pass a more permanent reform of the tax code: "This bipartisan extenders package is the product of a Finance Committee that came together to provide needed certainty to the economy, protect jobs and maintain important priorities for working families," Wyden said. "With that said, I am determined this will be the last extenders bill on my watch. It's high time we focus on creating a new, 21st-century tax code, because the status quo is unacceptable.  Read more

Cyber-Attacks on ATM & Card Authorization Systems and DDoS

Apr 03, 2014

The Federal Financial Institutions Examination Council (FFIEC) issued a statements for financial institutions of the risks associated with cyber-attacks on Automated Teller Machine (ATM) and card authorization systems and the continued distributed denial of service (DDoS) attacks on public-facing websites. The statements describes steps institutions need to take to address these attacks and highlight resources institutions can use to help mitigate the risks posed by such attacks.  Read more

Sub S Board Member Weighs in on Ag Lending

Mar 11, 2014

American farmers and the banks that serve them have seen good years. Unfortunately, there are signs that the good times may be coming to an end. With commodity prices expected to fall, many agricultural lenders anticipate their clients could have trouble making loan payments this year and Farm banks are bracing for a tough year ahead — and hoping that it's no more than a one-year dip. Net farm income across the country is expected to drop 26% this year, to about $96 billion, according toprojections from the USDA. The projections are based on laregely on falling crop prices, particularly corn, wheat and soybeans — three cornerstone crops in the national economy that the USDA predicts will fall back close to their 2010 prices.  Read more

Are Small Banks Effected by Dodd-Frank?

Mar 06, 2014

A study was recently published by The Mercatus Center at George Mason University on the effects of Dodd-Frank on small banks, defined as banks with less than $10 billion in assets each serving mostly rural and small metropolitan areas. The 96 question, web based survey relied on responses from about 200 banks across 41 states and was conducted between July 2013 and September 2013.  A large majority (65.6%) of respondents viewed Dodd-Frank as more burdensome than the Bank Secrecy Act, and the participating banks reported substantially increased compliance costs in the wake of new regulations.    Read more

Sub S 2014 Convention Participation

Feb 17, 2014

The 17th Annual Subchapter S Bank Association Conference will take place October 23-24, 2014 in San Antonio, Texas at the Hilton Palacio Del Rio Hotel. The Subchapter S Bank Association’s Conference is the only conference specifically created to educate and help financial institutions maximize the benefits of their S Corporation election. This means attendees leave with an increased understanding of the full range of pertinent issues and the ability to be change agents in our industry. As a sponsor your company can benefit in a number of ways: -Recognition as a thought leader addressing issues that are critical to the future of S corporations -Opportunities to promote your company’s brand through a multitude of communication vehicles (PR, print, advertising, web, onsite) -Opportunity to meet and network with leaders in the industry from across the United States -Opportunity to submit topics for our speaking agenda I hope you will review the attached sponsorship document and invite you to partner with us on this tremendous event. Please note we have added additional benefits to our sponsorship package this year. Thank you for your consideration and if you have any questions please do not hesitate to contact us.  Read more

ABA & Subchapter S Bank Association Seeks Action

Feb 07, 2014

ABA urged federal regulators to remedy a provision in the Basel III capital standards that disadvantages the 2,000 community banks organized as Subchapter S corporations.  Read more

‘Heightened Expectations’ for Banks

Feb 04, 2014

The OCC recently released proposed amendments to its Part 30 regulations, which reflect the agency's "heightened expectations" for large banks. The "Interim Final Rule," contains risk-management standards for institutions with more than $50 billion in assets. It also places greater responsibility on board members, particularly independent directors, to ensure that the rules are followed and to require that banks have independent audit and risk-management officers who can go straight to the board with concerns. In the Interim Final Rule OCC has explicitly reserved authority to apply the guidelines to an institution with less than $50 billion in assets if the OCC determines that it is highly complex or otherwise presents a heightened risk.  Read more

Sole Proprietors Face Hurdles Obtaining QM Loans

Jan 13, 2014

Self-employed individuals and small-business owners may not meet the requirements of new mortgage rules that went into effect Friday and could face hurdles obtaining new home loans.  Read more

FDIC Issues List of Banks Examined for CRA Compliance

Jan 03, 2014

FDIC today issued its list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in October 2013.  Read more

Call for Presentations: Annual Conference

Dec 01, 2013

Whether you’re a new or seasoned speaker, we want to hear from you. We’re actively seeking new voices and topics at our upcoming Subchapter S Bank Association Conference. Any ideas, best practices, and challenges that you’ve encountered for S Corporations are fair game. If you have a compelling story to tell, submit a proposal (or two) to speak at the Annual Subchapter S Bank Association Conference on October 23rd and 24th.  Read more