Due to the numerous regulation that where put in place through the Frank-Dodd Wall Street Reform and Consumer Protection Act in 2010, many Pennsylvania's community banks find themselves struggling with keeping compliant.
The regulations were put in place to prevent the type of financial issues the country experienced in 2008; the mortgage meltdown being the key culprit.
The New Tripoli Bank has hired three people to handle regulatory compliance, alone. The Neffs National Bank in Lehigh County also believes that more smaller banks are hiring outside companies to help deal with the multitude of oversight from the Consumer Finance Protection Bureau--an organization created with the 2010 law that has the authority to implement the regulations on all sizes of banks.
According to Embassy Bank, therein lies the problem, the laws was put in place to regulate the larger banks and mortgage lenders. having that type of oversight on community banks is not only unnecessary, but costs the smaller banks so much more to remain compliant.
In fact, Snodgrass CPA, which audits Pennsylvania's Community Banks, believes that any bank without more than $100 million in assets will not be able to survive the next two years in the current regulatory environment.