1. 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

2. 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

3. DBCF’s Authority

4. DBCF’s Authority
Banking Division

5. DBCF’s Authority
Consumer Finance Division

6. DBCF’s Authority
Mortgage Division

7. Bank Regulation/Charters

8. Bank Regulation/Charters
State Chartered Institutions

9. Bank Regulation/Charters
National Charter

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

11. 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

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

13. Bank Examiners

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

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

17. Why Banks are Regulated?

18. Protect the safety of the public’s savings

19. Maintain public confidence in the integrity of the banking system

20. Evaluate a bank’s adherence to laws and regulations

21. Help the FDIC protect the Insurance Fund

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

23. Recognize emerging risks and develop effective corrective measures

24. Types of Safety and Soundness Exams

25. 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

26. CAMELS

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

28. 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.

29. Capital Adequacy

30. Asset Quality

31. Management

32. Earnings

33. Liquidity

34. Sensitivity to Market Risk

35. Other
Processes

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

37. Cycle

38. 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.

39. 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.

40. 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.

41. 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.

42. S
Facing Banks

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

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