Volume 8, Issue 3 The Banker’s Advocate September 30, 2011


Exams add check of S.A.F.E. Act Hot Topic


By Richard S. Plotkin Editor


Compliance with


S.A.F.E. Act requirements will be evaluated as part of safety-and-soundness ex- aminations conducted by the Bank Department. Residential mortgage


loan originators employed by regulated financial insti- tutions were required to complete initial registration


by July 29 with the Nation- wide Mortgage Licensing System and Registry (NMLS).


Federal registration has


been the focus during the ramping up of this portion


See HOT TOPIC, Page 5 Concentrations draw Speaking from experience


Assistant Deputy Bank Commissioner Larry Hillyard has been examining Arkansas banks for more than 38 years. In the December 31 issue of The Banker’s Advocate, Hillyard will share his views on the most recent downturn in banking and what new lessons he has learned during this challenging period.


proactive supervision The recent focus on in- dustry concentrations has been primarily directed at commercial real estate and land development. Finan- cial institutions exhibiting a high level of, or rapid


See STRESS, Page 2


Earnings higher, but challenges persist The Commissioner’s View


Two of the many note- worthy messages conveyed at the 2011 State Bank Commissioners meeting at the Federal Reserve Bank of St. Louis on September 7 are:


1. Bank performance is


on a positive slope. 2. The downturn in the housing market will con- tinue into 2012.


Unfortunately, pessimis-


tic Point Number 2 – along with overall weak eco- nomic conditions – can flatten the upward slope referred to in optimistic Point Number 1. For now, at least, the numbers from the second quarter are encouraging. Return on Assets for


commercial banks with main offices in Arkansas was 1.10 percent as of June 30, 2011, up from 0.77 per- cent at year-end 2010. For commercial banks aggre- gated nationally, ROAA is 0.88 percent, compared


See VIEW, Page 3 Candace Franks


growth in, this type of lending have experienced negative impacts to equity and financial performance resulting from a recent de-


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