p1aha4e5s51mqh16r1ecejra15sl6.jpg
A number of banks have recently crossed $10 billion in assets, where caps on interchange fees and mandatory stress testing kick in, and more are set to pass the threshold shortly. Here is a look at the annual toll regulation will take on many of those institutions.
p1ahc76ruj1mgj1cvq1pfv8721db46.jpg

Chemical Financial: $12 million

The Midland, Mich., company has projected that crossing $10 billion in assets will cost it $10 million in revenue in 2018 due to caps on debit card interchange fees, while increasing annual compliance costs by $2 million. The $9.3 billion-asset company, led by CEO David Ramaker, hopes to offset the hit by buying Talmer Bancorp.
p1aha4e5s6rij13ibrrr1mja8s67.jpg

United Community Banks: $11 million

United Community CEO Jimmy Tallent has estimated that the Blairsville, Ga., company could lose $9 million in interchange income and add up to $2 million in compliance-related expenses when it reaches the $10 billion-asset mark. The company has about $9.6 billion in assets now, with an acquisition pending.
p1aha4e5s61vsfb8e18qt1tpk1qbr8.jpg

Bank of the Ozarks: $10.7 million

The Little Rock, Ark., company crossed the $10 billion-asset threshold in the first quarter. The now-$11.4 billion-asset company, led by CEO George Gleason, expects to lose nearly $5.4 million annually because of the Durbin Amendment's cap on interchange fees. Compliance costs are expected to be $5.3 million higher in 2017 than they were last year.
p1aha4e5s61j00k20129eo9m107h9.jpg

Pinnacle Financial: $10 million

The Nashville company will approach $10 billion of assets after it buys Avenue Financial. It will likely cross that mark in the next year or two and, once it does, could lose nearly $8 million in annual interchange revenue. CEO Terry Turner has also estimated that Pinnacle faces more than $2 million in new compliance costs tied to stress testing and higher FDIC assessments.
p1aha4e5s6o6dg1goc1mq11ma9a.jpg

First Midwest Bancorp: $4.1 million or more

The $10.7 billion-asset First Midwest, led by CEO Michael Scudder, has said that a cap on interchange fees that should take hold in mid-2017 could cost it $4 million to $5.7 million in annual revenue. The company hasn't said how much its compliance costs could increase.
p1aha4e5s67ep4v5gm312vlgiob.jpg

BBCN Bancorp: $1.5 million or more

BBCN, led by CEO Kevin Kim will surpass $10 billion in assets when it buys Wilshire Bancorp. BBCN, which doesn't rely much on interchange, expects annual revenue to fall by $1.5 million when it crosses the regulatory threshold. It is unclear how BBCN's compliance costs will change once it starts reporting stress test results in mid-2018.
MORE FROM AMERICAN BANKER