Dodd-Frank Wall Street Reform and Consumer Protection Act

1. Dodd-Frank Wall Street Reform and Consumer Protection Act

2. Banking and Financial CompaniesCapital Requirements • The “Collins Amendment” • Risk-based and leverage capital requirements that currently apply to U.S. insured depository institutions will apply to BHCs, thrift holding companies and systemically important nonbank financial companies • Banking regulators must issue rules to implement this change by January, 2012 • Phase-in of Collins Amendment capital requirements may coincide with implementation of Basel III recommendations

3. Banking and Financial CompaniesCapital Requirements • Key Exceptions – Collins Amendment does not apply to: • Securities issued by BHCs subject to the Federal Reserve’s “Small Bank Holding Company Policy Statement” • TARP CPP securities • Securities issued before May 19, 2010 by a BHC (or other depository institution holding company), with assets less than $15 billion at December 31, 2010 • Key Impact – Eliminate Tier 1 capital treatment for Trust Preferred Securities (unless issuer is otherwise excepted)

4. Banking and Financial CompaniesDeposit Insurance Reform • New Assessment Base for FDIC Deposit Insurance = Average total consolidated assets, less average tangible equity • Impact – shift DIF assessment burden to larger banks that finance assets with significant non-deposit funding sources and other liabilities • Changes to DIF Reserve Ratio: • No upper limit • Minimum reserve ratio raised to 1.35% from 1.15% • FDIC Assessment Authority – the FDIC may now collect assessments to cover the cost of regular and special examinations

5. Banking and Financial CompaniesDeposit Insurance Reform • Deposit Account Insurance: • Maximum deposit insurance increases to $250,000, with retroactive application to certain FDIC receiverships between January and October 2008 • Deposit insurance for noninterest bearing transaction accounts extended to December 31, 2012 • FDIC has additional authority to require reports from insured institutions, after consultation with other federal regulators • Content of these reports is not specified • Previously, the other federal banking regulators needed to consent before the FDIC could require additional reports

6. Banking and Financial Companies Other Regulatory Reforms • Prohibition on Charter Conversion when Formal or Informal Supervisory Action is Pending • Relaxation of Bank De Novo Interstate Branching • Expanded Restrictions on Affiliate Transactions including what is “Covered”, Collateral Requirements, Coverage for Financial Subsidiaries, and more • Greater Restrictions on Transactions with Insiders

7. Banking and Financial CompaniesSmall Business Lending Fund • SBLF was adopted by the U.S. House of Representatives; currently under consideration by U.S. Senate • Objective – to encourage lending to small businesses • Mechanics – U.S. Treasury would purchase up to $30 billion of preferred stock in community banks and other eligible institutions • Key Characteristics – Participants must submit a small business lending plan; preferred stock dividend rate decreases as lending to small businesses increases • TARP Refinance – SBLF would permit participating institutions to refinance TARP CPP securities