Bank Examiners Ben Cayson Meghann Beamer Michael Sisco Sam Hubbard Mississippi Department of Banking and Consumer Finance Bank Examiners Ben Cayson Meghann Beamer Michael Sisco Sam Hubbard

Mississippi Department of Banking and Consumer Finance > Commissioner – Charlotte Corley > Deputy Commissioner – Rhoshunda Kelly > Director, Banking Division – Sam Hubbard > Chief Examiner – Roger Sinclair > Chief Examiner – Nicky Shelton > Supervisory Examiners > On-site Examiners (30) > 17th Largest Banking Department in the Country

DBCF’s Authority

DBCF’s Authority Banking Division

DBCF’s Authority Consumer Finance Division

DBCF’s Authority Mortgage Division

Bank Regulation/Charters

Bank Regulation/Charters State Chartered Institutions

Bank Regulation/Charters National Charter

Bank Regulation/Charters Fed Reserve State Charters can choose to be a member of the Fed Regulated jointly by the State and Fed Reserve

Bank Regulation/Charters Federal Deposit Insurance Corporation Is a Federal corporation that provides insurance to protect depositors FDIC regulates all banks that carry FDIC insurance; however, the FDIC mostly examines State chartered banks

Mississippi State Chartered Banks Under $1 Billion 63 $1 Billion - $10 Billion 4 Renasant, BankPlus, Bankfirst, Metropolitan Over $10 Billion 2 BancorpSouth, Whitney Total 69 *17 additional Nationally Chartered Banks in Mississippi

Bank Examiners

Bank Examiners Are appointed under state or federal law to inspect and audit the operations and accounts of banks

Bank Examiners Examiners determine: Unsafe and unsound practices Violations of law and regulation The adequacy of internal controls/procedures The general character of management

Why Banks are Regulated?

Protect the safety of the public’s savings

Maintain public confidence in the integrity of the banking system

Evaluate a bank’s adherence to laws and regulations

Help the FDIC protect the Insurance Fund

Identify the nature, severity, and cause of a banks’ problems

Recognize emerging risks and develop effective corrective measures

Types of Safety and Soundness Exams

Types of Safety and Soundness Exams Full Scope Examination – Detailed Evaluation of CAMELS Risk Focused Examination – Focuses on highest risk areas of institution Limited Scope Examination/Visitation – Flexible format and can be used to examine any concerns that might arise with the institution Types of Safety and Soundness Exams

CAMELS

CAMELS Examiners use the Uniform Financial Institution Rating System Which is known as CAMELS: Capital Asset Quality Management Earnings Liquidity Sensitivity to Market Risk

CAMELS CAMELS ratings are assigned based on a numerical scale from 1 to 5, with 1 indicating the highest rating, lowest degree of supervisory concern. A 5 rating indicates the lowest rating, highest degree of supervisory concern. The overall Composite rating is not an average and is determined by the degree of risk one component or several components could have on the institution.

Capital Adequacy

Asset Quality

Management

Earnings

Liquidity

Sensitivity to Market Risk

Other Processes

Strategic Planning and Budgeting – Future road map for banks Loan Discussion Specialty Exams – IT, BSA, and Trust Meetings with Management

Cycle

All State chartered banks under an Enforcement Action are joint exams with the FDIC and require a 12 month exam and a 6 month visitation.

All State chartered banks under an Enforcement Action are joint exams with the FDIC and require a 12 month exam and a 6 month visitation. All State chartered banks with assets over $1 billion require a 12 month exam and are joint with the FDIC.

All State chartered banks under an Enforcement Action are joint exams with the FDIC and require a 12 month exam and a 6 month visitation. All State chartered banks with assets over $1 billion require a 12 month exam and are joint with the FDIC. All State chartered banks with assets over $10 billion require a continuous exam and are joint with the FDIC.

All State chartered banks under an Enforcement Action are joint exams with the FDIC and require a 12 month exam and a 6 month visitation. All State chartered banks with assets over $1 billion require a 12 month exam and are joint with the FDIC. All State chartered banks with assets over $10 billion require a continuous exam and are joint with the FDIC. All State chartered/State member banks not under an Enforcement Action and under $1 billion require an 18 month exam and are alternated with the FDIC/Federal Reserve.

S Facing Banks

COMMUNITY BANKS COMPETING WITH LARGE INSTITUTIONS Loan demand Trust Preferred Securities Appraisals/Evaluations DATA SECURITY REGULATION Credit Unions Outsourcing Basel III Capital Requirements

Summary Mississippi Department of Banking and Consumer Finance Bank Examiners Laws and Regulations Exam Process Current Issues