IBAT's Bottom Line February 23, 2009

From the Desk of Chris Williston

This week, IBAT Chairman Milton McGee and I will be hitting the road again visiting eight Texas cities over the next three days.  625  IBAT member bankers and industry partners are registered, which speaks to the need for all of us to keep informed in the changing financial services marketplace.

We have already learned much in the eight cities we visited in early January.  Bankers have asked us to step up our external communication efforts with media who routinely report that all banks are in trouble and in need of a bailout.  And so we shall.  Already we have issued several editorial letters to Texas newspapers and next week your IBAT Board of Directors will review comprehensive plans for future efforts.

There is much your association can do, but it is incumbent on all you to be proactive with your local media when you see and hear stories that need rebuttal or clarification.  Remember you are the trusted financial advisor to many and your credibility carries great weight in the communities you serve.  Local media would be anxious to provide local color or opinion.  Invite them out for a visit and share your own perspective relative to the events of the day. The community banking story must be told!

I have begun telling my part of the story this morning with my first post to The Missing Linc, my blog on Texas Community Banking.  You can go to www.themissinglinc.com or find a link to it on our main website.  Drop by and tell me what you think.  The blog allows readers to post comments.

Let me know personally how we can help by dropping me an email at cwilliston@ibat.org.

U.S. Treasury’s Go Direct Campaign Urges Banks to Stand Up and Be Recognized for Promoting Direct Deposit

Whether your bank serves a small town, a large city or an entire region, customers in your community look to you for sound advice about their money. The U.S. Department of the Treasury’s Go Direct campaign is announcing a new recognition program for financial institutions that go the extra mile in promoting direct deposit to senior citizens, people with disabilities, veterans and other members who receive federal benefits. The six-month Go Direct Community Ambassadors Program<http://www.godirect.org/Go_Direct_Community_Ambassadors.cfm> launches in January and is aimed at community- and medium-sized financial institutions. The program is simple to implement and provides banks with a flexible way to demonstrate their commitment to the community’s financial health while gaining recognition from Treasury’s Go Direct campaign. All banks are invited to register online at www.GoDirect.org<http://www.GoDirect.org> by February 27, 2009.

Banks that successfully participate in the Community Ambassadors program will receive a letter of recognition and certificate from Go Direct. Participating banks will be offered a variety of options for sharing information about the benefits of direct deposit with their customers, including ordering free Go Direct materials.

The simple act of switching to direct deposit can have a meaningful, positive impact on the lives of your customers and on your community. Consider the following:

• Direct deposit is safer and easier than paper checks – in fact, when there is a problem with a Social Security payment, nine times out of 10 it is with a paper check, not a direct deposit payment.
• Direct deposit also provides “green” benefits by reducing the paper and energy required to distribute checks.
• And direct deposit saves taxpayers money. Since it was launched in 2005, the Go Direct campaign has generated more than two million enrollments in direct deposit representing significant savings to taxpayers in printing, mailing and other costs.

Raising awareness about the benefits of direct deposit is a community effort. More than 1,200 Go Direct partner organizations engage in direct deposit education efforts across the country – including financial institutions, non-profits, and community-based groups. For more information about the Community Ambassadors program or Go Direct, call 952-346-6055, or visit www.GoDirect.org.

Question: Our bank would like to make it mandatory that 100% of our employees' pay be direct deposited into a free checking account at our bank.  Is this allowable?

To find out the answer, click here.

President's Advisory Council on Financial Literacy

If you've been wondering about ways to define financial literacy versus financial education, take a look at this recently released report from the President's Advisory Council on Financial Literacy. Click here.

IBAT Appraisals Summit
March 5, 2009 - Omni Dallas Park West
More Information . . .

We Need Your Help

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:
American Bank of Texas, Marble Falls
American National Bank, Gonzales
Citizens Bank, Claude
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 of Uvalde
Lakeside National Bank, Rockwall
Liberty National Bank, Paris
Menard National Bank
Mills County State Bank, Goldthwaite
Pioneer Bank, SSB, Dripping Springs
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 April 30.  For additional information, call Mae Beth at 800.749.4228.

On Tuesday, President Obama signed into law the $787 billion economic stimulus package. The market’s reaction on has been generally negative as the perception is that the stimulus bill will not do much to grow the U.S. economy out of its recession. 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.

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

IT Security Summit
February 26 - San Antonio

Appraisals Summit
March 5 - Dallas

How to Create & Maintain a Sales Culture in a Community Bank Summit
March 18-19 - San Antonio

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

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

IBAT Leadership Conference
June 18-20 - San Antonio

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