• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Subchapter S Bank Association

Join Login
  • Twitter
  • Linkedin
  • YouTube
  • About Us
    • Patrick J. Kennedy, Jr.
  • Register Now for the 2021 Conference!
  • Newsletter
  • Events
  • FAQs
  • Membership
  • Contact Us

Primary Sidebar

Recent Posts

  • Calling All Bank Directors September 29, 2021
  • Updated Summary of Key Provisions HR 748 April 4, 2020
  • 199A Final Regulations: Loan Sales are included but Trust Income is not April 1, 2019
  • Section 199A Final Regulations for Subchapter S Banks- Webinar 2/21/2019 February 25, 2019
  • Joint letter of ABA, ICBA and Sub S Bank Associations October 10, 2018

Tags

Bank Holding Company Bank Secrecy Act Basel III built-in gains capital capital access Capital Access for Small Business Bank Act capital raising CFPB charitable contributions community banking Community Reinvestment Act cyber attacks dividends Dodd-Frank FDIC Federal Reserve Federal Reserve Board HR 2789 HR 3287 Inadvertent Termination Internal Revenue Code IRS legislation mergers mortgage loans Net Investment Income OCC performance Preferred Stock qualified mortgage SBLF S Corp Banks S Corp Modernization Act Shareholder Agreements shareholders Shareholder Succession Small Business Lending Fund stock Sub S Banks taxation tax extenders Tax Reform Tier 1 Capital Treasury

Archives

  • September 2021
  • April 2020
  • April 2019
  • February 2019
  • October 2018
  • November 2017
  • August 2017
  • July 2017
  • June 2017
  • March 2017
  • January 2017
  • November 2016
  • October 2016
  • September 2016
  • July 2016
  • May 2016
  • April 2016
  • March 2016
  • November 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • April 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • May 2013
  • January 2013
  • August 2012
  • July 2012
  • November 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • December 2010
  • September 2010

Basel III

April 10, 2015

Yellen Responds to Sub S Basel Fix

Federal Reserve Chairman, Janet Yellen, declined to pursue a policy change that would solve a tax liability problem for Subchapter S shareholders should . . .

Basel III

October 21, 2014

Congressional Letter on Capital & Tax Treatment of Sub S Banks

Below, please find a link to the Congressional Letter signed by 43 Congressional Representatives over the continued concern over the capital and tax . . .

Basel III, dividends

July 22, 2014

FDIC Releases Guidance for S Corporation Banks

The FDIC, yesterday afternoon, issued guidance outlining the circumstances under which the Agency would approve an S corporation bank’s request for relief from the dividend restrictions imposed under the Basel III capital conservation buffer. Exceptions will generally be granted to 1- and 2- rated banks which are adequately capitalized and are not subject to a written supervisory directive. While the guidance only applies to capital conservation buffer considerations, it does recognize that there may be other circumstances such as a bank returning to a healthy condition that might present circumstances where a dividend exception could be granted. The Agency noted that it does not expect the concern to be an issue for some time as a result of the three year phase-in through 2019. We are pleased that the FDIC recognizes the unique circumstances under which S corporation banks operate and hope this guidance will result in greater recognition and willingness by the Agencies to consider case by case dividend approvals to pay taxes in a broader set of circumstances, beyond the capital conservation buffer issue. Importantly, the Agency recognizes that the ability to pay dividends is a crucial element of an S corporation bank’s capital access strategy. A more detailed description of the issuance follows.

Basel III, capital conservation buffer, dividends, FDIC

April 28, 2014

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

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.

Basel III

March 25, 2014

Basel III Capital Rule for Subchapter S Banks

On behalf of the Subchapter S Bank Association we have sent a letter to Chair Yellen, Comptroller Curry and Chairman Gruenberg expressing our continued concern regarding the unequal treatment depository institutions and their holding companies that elect to be taxed under Subchapter S of the Internal Revenue Code (IRC) receive compared to their peers taxed under Subchapter C, especially when considered in the context of the capital conservation buffer rules presently contained in Basel III and regulatory dividend restriction policy.

Basel III, Dodd-Frank, S Corp Banks

February 7, 2014

ABA & Subchapter S Bank Association Seeks Action

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.

Basel III

November 19, 2013

Agencies Release a Regulatory Capital Estimation Tool for Community Banks

The federal bank regulatory agencies today released an estimation tool to help community banks understand the potential effects of the recently revised regulatory capital framework on their capital ratios. The revised framework implements the Basel III regulatory capital reforms and certain changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

Basel III, community banking, Consumer Protection Act 2010, Dodd-Frank, FDIC, Federal Reserve, OCC

October 1, 2013

Patrick J. Kennedy Quoted in ‘Basel III Creating Headaches for S Corp Banks’

Patrick J. Kennedy, President of the Subchapter S Bank Association, was recently quoted in the American Banker Association’s article, “Basel III Creating Headaches for S Corp Banks.”

Basel III, Sub S Banks

Footer

Subchapter S Bank Association

112 East Pecan St., Suite 2810
San Antonio, TX 78205
Phone: 210-228-9500
Fax: 210-228-0781

Share On

Follow On

Proudly sponsored by the
AABD logo
Click here to learn more or to join the AABD
  • About Us
  • Register Now for the 2021 Conference!
  • Newsletter
  • FAQs
  • Join
  • Contact Us
© 2023. Subchapter S Bank Association. All Rights Reserved.