Banks & the Shutdown

How Banks are Responding to the Government Shutdown

As the U.S. government shutdown drags on, banks are stepping in with relief measures to blunt the impact on affected customers. In Texas, Lubbock National Bank announced it will defer loan payments, waive late fees, and even suspend credit-reporting for federal employees and defense contractors. “A community bank takes care of their customers,” said LNB President Eddie Schulz.

In Ohio, Riverside Bank leaders say demand is still moderate but expect “more phone calls” if the shutdown continues. Banks are preparing a range of options — from personal loans to home-equity lines — to help clients bridge gaps until government funding resumes.

Meanwhile, banks across the nation remain open and fully operational despite the federal shutdown, since they operate independently from government appropriations. Customers can still access ATMs, mobile apps, and in-person services. However, experts note that some banking processes tied to federal agencies — such as income verification for loans or Small Business Administration approvals — may experience temporary delays.

What is Friends of Traditional Banking (FOTB)?

We are a non-partisan grassroots effort, organized by bankers. We are Main Street, not Wall Street; we are traditional community bankers, not investment bankers.

There are over 30,000 of us from coast to coast (including YOU!). There is no cost to be on the list for FOTB, and we won't spam you (just this monthly newsletter).

We choose two or three Congressional races each cycle that are hypercritical to banking, and encourage our membership to donate directly to those campaigns.

We're the inverse of a PAC--instead of spreading a little bit of money to a lot of campaigns, we focus a lot of money on a couple of key campaigns. These money bombs WORK. We encourage our members to support the PACs run by ICBA, ABA, and their local state associations. All are important arrows in the quiver of the banking industry, and all of these help shape Washington in different ways!

Hoskins Named to Represent Texas on FOTB Banker Board

W. Wesley "Wes" Hoskins has been appointed to represent Texas on FOTB's Nationwide Banker Board. Hoskins became a director for First Community Bank in 1992, and then in 1997 he became President and CEO and then Chairman where he remains today. He has had the opportunity to serve in several capacities for the Texas Bankers Association including being Chairman in 2009.

As an avid banking industry advocate, he has served in government relations, as National Bank PAC Chairman, and as a member of the Board of Directors for both Texas Bankers and American Bankers Associations. In 2013, he became a Board of Director for the Federal Home Loan Bank in Dallas.

In 2016, Wes was elected to serve as Port Commissioner for the Port of Corpus Christi, representing San Patricio County where he now serves as Vice Chairman. In April 2022, he was inducted into the Texas Bankers Hall of Fame. He has served in numerous local organizations from Driscoll hospital foundation to Corpus Christi Chamber Chairman.

In 2024, he joined the Governing Board of Directors for Driscoll Childrens Hospital. For the past 56 years, Wes has been a Texas licensed auctioneer. Both Wes’s and his wife, Janie’s, passion centers around activities that support children, and both are actively involved with Driscoll Children’s Hospital fundraising.

If you are from a state with a vacancy and interested in being considered as a Banker Board member, please contact mike@mikewinder.com

BANKER NEWS BITS:

House Financial Services Chair French Hill expressed concerns that the government shutdown is preventing the extension of the Defense Production Act (DPA) and National Flood Insurance Program (NFIP). "With this lapse in government funding, the American people are ultimately hurt by our critical work coming to a halt in Congress,” he said.

President Trump nominated Travis Hill as chairman of the board of the Federal Deposit Insurance Corp. this month. Hill has served as acting chairman since Jan. 20. His nomination has been met with praise by both ABA and ICBA leadership, as well as by Senate Finance Chair Sen. Tim Scott (R-SC).

Rep. Maxine Waters (D-CA) tells CFPB’s Vought not to use shutdown to furlough staff. "Using a government shutdown as a pretext to furlough staff would not only violate the CFPB’s statutory mandate but would cause direct harm to American consumers," the Ranking Democratic Member of the House Financial Services Committee wrote in a recent letter to Russell Vought, acting director of the Consumer Financial Protection Bureau.

Sen. Elizabeth Warren (D-MA) advocated for increasing the FDIC insurance cap, arguing that the current $250,000 cap was insufficient for many small and mid-sized businesses. The comments were part of a hearing by the Senate Banking Committee on deposit insurance reform for small business protection.

SPONSOR'S CORNER

Phishing for a Banker

A message from our sponsor BankOnITUSA:

Cyber attackers are constantly looking for ways to access financial institutions and the biggest most popular entry point is through email. Cyber attackers are targeting the email accounts of people you know, like or trust at entities such as trade associations, vendors, auditors and regulators. Taking over an email account of an individual at one of these entities allows the attacker to send malicious emails that are actually from the email account of the individual’s account that has been breached, but it is not the person you know sending it - it’s the cyber attacker.

Learn three tips to avoid phishing scams in the Information Security Brief from our platinum sponsor, BankOnIt HERE: https://insights.bankonitusa.com/information-security-brief-april-25

Want to provide content in our Sponsor's Corner? Reach out about being a partner! mike@friendsoftraditionalbanking.com

DONATE TO OUR CAUSE

PAID for by Friends of Traditional Banking. NOT authorized by any candidate or candidate's committee.

Friends of Traditional Banking is a non-partisan grassroots effort organized by bankers in 2012 to improve the political and regulatory environment for the traditional banking industry in the U.S. FOTB is the inverse of a PAC--instead of spreading a little bit of money to a lot of campaigns, they focus a lot of money on a couple of key campaigns.