IBAT's Bottom Line April 20, 2009


NewsIBAT's Compliance Forum

Have you been wondering what has happened to IBAT’s Compliance Forum
Back in January we launched our new website, and things look a little
different now.  What used to be called the Compliance Forum is now the
Compliance Users Group.  To access the Compliance Users Group you won’t
have to re-enroll on a separate site with a separate login like you did
on the old forum site.  Your single login on the new IBAT site gets you
access to all website features.

Once in the group you can
review existing discussions and reply, or post new discussions
(topics).  Our Deputy General Counsel, Shannon Phillips, reviews the
group discussions daily to make sure that every question is getting
answered.  You will also start receiving some additional emails from
group activity.  If you don’t want more emails in your inbox then go to
the notifications sections of your personal user settings and change
all of the group notifications to “daily”, “weekly” or “never”,
whatever your preference is.  Click here to learn more.

IBAT Capitol Report

Capitol ReportIt’s been a busy week here in Austin.  Governor Perry has received a lot of national press attention for his remarks at Wednesday’s tea party.  And with only six weeks left in the session, Legislators are scrambling to take care of business.

On the foreclosure front, thank you to everyone who heeded our call to action on SB 472.  We’re not out of the woods yet, though…we anticipate that the newspaper industry will try again to force banks to publish foreclosure notices for four weeks.

Please take a moment to read this week’s Capitol Report, and please watch your email in case we need to send any other requests for immediate action.

The latest Capitol Report is available here.

Capitol Comments April 2009

Capitol CommentsRead the latest Capitol Comments here.

Legal Ease Question of the Week

Legal Ease QuestionQuestion: We have a homestead purchase loan that we are working on.  The loan will remain in-house. With the current $8,000 tax credit for first time homebuyers, we are looking at getting 10% down and requiring an $8,000 principal reduction within 120 days. On the TIL, if we calculate the APR on the original loan balance less the $8,000, should that cover us and should the payment schedule include the $8,000?  Should we do a detailed payment schedule using the initial term and then recalculate the remainder of the loan after the reduction.

To find out the answer, click here.

Enter the 2009 BOCB Awards

BOCBMake plans to enter IBAT’s 2009 Best of Community Banking Awards
competition.  While Wall Street financial institutions have gambled
with our nation’s economic stability, community banks have continued
their safety and soundness practices to keep their local economies and
communities strong and thriving.

Now is the time to highlight the contributions of your community bank
to your colleagues, while giving your customers, shareholders and
employees one more reason to be proud.  

must be received at the IBAT Office by 5:00 PM on June 30.  The Best of
Community Banking Awards Luncheon will take place on Tuesday, October
13, 2009 at the Westin La Cantera Resort in San Antonio during the 35th
IBAT Annual Convention.  All qualified entries will be on display
during the convention.

Special thanks to our sponsors for this year's competition:
CSI, Computer Services Inc.
BKD, LLP, CPAs and Advisers
The Genesis Group
Rogers-Ford, LC, Architects and Interior Design
Integrated Bank Technology, Inc.

Welcome New Members

WelcomeDe Novo Members

Affiliate Member

  • Thomas M. Murray, Associate Attorney, Hutto & Lucksinger, L.L.P., Burnet, TX

Associate Member

Follow IBAT on LinkedIn

LinkedInIs LinkedIn your portal to the professional networking world on the internet?  Now you can use your existing LinkedIn account to keep track of IBAT activities

You can join IBAT on LinkedIn thru our Independent Bankers Association of Texas group.  Think of it as one of our homes away from home at the IBAT website.  We have the latest news updates on all the happenings at IBAT, and a forum for discussions.  It’s a great shortcut to what is going on over at the IBAT website.  You can find the IBAT group at www.linkedin.com/groups?gid=1849094&trk=hb_side_g

What is LinkedIn?  LinkedIn is a free and professional business networking site designed to help you control your professional identity online.  You stay connected with other business associates and can use the site to stay informed about general industry news.  It’s also a great site to discuss, learn and seek recommendations from current and former co-workers. 

If you are not currently a LinkedIn member you can sign up at www.linkedin.com.  There is a profile setup process and a process that allows you to located and network with potential business associates.

Sign up today and receive the latest news from IBAT as it happens.

Governor’s Mansion Restoration Fund Deadline Extended to May 29

Mansion RestorationWe Need Your Help

Due to a few requests from our members, IBAT has extended the deadline to collect donations for the restoration of the Governor’s Mansion to May 29th.  If you need any supplies (posters, donation box, counter cards or statement stuffers), you can call IBAT at 800.749.4228 and ask for Mae Beth.

After the May deadline, we will ask all of you who have participated to send one check for all of your collections payable to the Governor’s Mansion Restoration Fund.  IBAT will present one check to First Lady Anita Perry with a list of all of the banks that have participated in this effort.  Thank you for your support.

Thanks to all of the banks who have volunteered to collect donations for the Governor’s Mansion restoration project.  IBAT members already helping in this effort include:
Amarillo National Bank
American Bank of Texas, Marble Falls
American National Bank, Gonzales
Citizens Bank, Claude
Citizens National Bank, Henderson
D'Hanis State Bank
First-Lockhart National Bank
First National Bank of Bastrop
First National Bank of Hico
First National Bank, Jasper
First National Bank, Quanah
First National Bank, Wichita Falls
First State Bank, Clute
First State Bank, Louise
First State Bank of Uvalde
Happy State Bank
Lakeside National Bank, Rockwall
Liberty National Bank, Paris
Menard National Bank
Mills County State Bank, Goldthwaite
Pioneer Bank, SSB, Dripping Springs
Preferred Bank, Houston
Round Top State Bank
Star Bank, Fort Worth
Texas Leadership Bank, Royse City

Statement Stuffers are also available.  To view, click here: Governor's Mansion Statement Stuffers

For a complete Order Form with pricing, click here: Governor's Mansion Order Form

Read the: Governor's Mansion Press Release and the Governor's Mansion Fact Sheet.

The restoration drive runs through May 29.  For additional information, call Mae Beth at 800.749.4228.

Solutions from Services




Top Performing Overdraft Privilege Program Can Boost Your Bottom Line

Current economic conditions are creating challenges for banks and customers alike.  Overdraft privilege programs enable banks to boost profitability and provide a safety net for customers in the event they overdraw their account.  If you don’t currently have an overdraft privilege program in place, now is the time to act. 
It is also important that once you have an overdraft program in place to continually monitor industry regulations and operational changes.  A Performance Review by John M. Floyd & Associates, an IBAT Services endorsed provider since 2004, can ensure that your existing program is in compliance and giving you the results you expect!
For a free Overdraft Privilege Analysis, CLICK HERE or contact James Atwood, JMFA Regional Director at 877.668.4857 or James.Atwood@JMFA.com.


Subchapter S Banks Please Note:

Sub SAs you may have heard, the American Recovery and Reinvestment Act of 2009, the economic stimulus package enacted this past February, contained reform provisions on the treatment of built-in gains for S corporations. The Act reduced the recognition period for the built-in gains (BIG) tax from ten years to seven years for the taxable years beginning in 2009 and 2010. There have been a number of questions about exactly which years the BIG tax reforms come into play. To clarify, if an S corporation’s seventh taxable year is either 2008 or 2009, then the BIG tax will not apply for the S corporation’s eighth taxable year (2009 or 2010, respectively), as well as every subsequent year thereafter. Please feel free to contact Bruce Toppin, Executive Director of the Subchapter S Bank Association with any questions or comments. He can be reached at (210) 228-9961 or by email at info@subsbanks.org.

Ice Storms, Hurricanes, Tornadoes, Fire: How Would You Communicate With Your Staff?

HotlineIBAT has improved its Emergency Hotline!  Make sure the person in charge of your Business Continuity/Disaster Preparedness plan knows about this.  With the revamped IBAT Emergency Hotline, your employees can now (1) call the toll free IBAT Emergency Hotline, enter a voice mail box number specifically dedicated to your company and hear a message left by one of your staff members, and/or (2) go to the new IBAT web site, click on a page specifically dedicated to your company and view messages posted by one of your staff.

Each firm must pre-register to participate but it's FREE and EASY.
  This benefit is courtesy of your IBAT membership.  

Information on the plan, step-by-step instructions and the registration form is online at:
http://www.ibat.org/pdfs/2009/04/07/ibat-emergency-hotline-instructions.  Click on "Download this PDF."

On the Education Front

LD The 2009 Leadership Conference

Tune In, Turn It Up
June 18-20, 2009
Hyatt Regency Hill Country Resort
San Antonio, TX

More Information . . .


Underbanked Financial Services Forum

SMCUnderstand the attitudes, needs and behaviors of the underbanked and learn key-takeaways from industry innovator peers at the 4th Annual Underbanked Financial Services Forum taking place June 1-3, 2009 at The Westin Galleria Dallas, Dallas, TX. Register online now with your exclusive $995 IBAT rate.  Call 800-803-3424 or visit: http://www.sourcemediaconferences.com/CFSI09/ibat

Subchapter S Bank Association

Sub S

Click here to view the Sub S Webinar, Investment Management for Sub-S Banks: Focus on the Bond Portfolio on April 29. 

Click here for more information on upcoming Subchapter S Bank Association events, including the Regional Conferences.

April Is Financial Literacy Month

JAApril is Financial Literacy Month

Thanks to all of you who teach financial literacy classes in your local schools.  Staffer Darlene Revers recently joined with IBAT's partner, Junior Achievement, to teach a financial literacy class to fourth-graders at one of the local elementary schools.  Click here to read about her experience.  If you're involved in teaching financial literacy classes in your community, let us know so we can share your experience on the web! 

Baker Market Update

Baker GroupStocks continued a five week rally as positive earnings reports from the banking sector bolstered market confidence. Read More in the Baker Market Update.

Although this information has been obtained from sources, which we believe to be reliable, we do not guarantee its accuracy. This is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.

Community Banking Month

Community BankingCommunity Banking Month is just around the corner.  During the month of April, IBAT members will join our counterparts from across the nation to celebrate the real economic backbone of the United States—the community bank.  With all of the talk centered around the recession, bailouts, and Wall Street failures, the one thing that has not changed is you—the Main Street community banker.  You’re still strong and well-capitalized.  You still have money to lend—and continue to make good loans—thanks to your practical, sound and responsible fiscal management.  Let Wall Street handle the gloom and doom.  Let community banks step up to let customers know that your doors are open and you’re ready to lend to your neighbors and local businesses—just like always!

IBAT has requested a proclamation from Governor Rick Perry designating April as Community Banking Month in Texas.  Our national affiliate, ICBA, has easy turnkey press materials and marketing ideas posted on their website (www.icba.org) to help you celebrate Community Banking Month!

Texas Community Banks—Main Street Proud

Coming Soon

For a complete listing of upcoming events, CLICK HERE.  Meanwhile, please mark your calendar for some of our key upcoming events.

IBAT Nuts and Bolts of Banking
April 28-29 - Austin

Congressional Visit
May 12-14 - Washington, D.C.

IBAT/SWACHA Bank on Boot Camp
June 2-3 - Austin

Bank on Boot Camp
June 3-4 - Austin

IBAT Leadership Conference
June 18-20 - San Antonio

IBAT 35th Annual Convention
October 10-13 - Westin La Cantera Resort, San Antonio