We are not set up for e-statements. We have a customer that uses our online banking and does not want a prited statement. Don't we have to print him a statement since we are not set up otherwise? Can a customer request no statement?

A customer may request no statement, but you cannot comply with their request. If you do not have e-statements then you are required to send a paper copy.

We are also not set up for e-statements. It is my understanding that a customer can not 'opt-out' of printed statements until and unless we can offer that customer an e-statement.

The customer can view the statement on-line, but we don't "proactively" tell the customer that the statement is available and here's a link.

The customer can opt-out of statements, but it would not be wise for the bank to allow that to happen, as things like bank liability under Regulation E would become unlimited.