IBAT's Bottom Line March 9, 2009


NewsFDIC Special Assessment

Your IBAT staff and volunteer leadership has been focused on the FDIC
special assessment for the past week.  An email communique was sent
this morning updating you on the present state of play, the action of
your IBAT Board on Friday, as well as some key points to consider in
crafting your comment letters.  We urge you to comment on this
proposal, and to include personalized commentary regarding the impact
this will have on your bank's earnings and ability to serve your
communities.  Your staff and Board of Directors should also consider
filing comment letters.  Community banks in Texas neither participated
in nor profited from the excesses that created the current economic
problems.  We are however, paying a dear price, even before this latest
proposal from the FDIC.  Community bankers must stand together for
community banking. 

Director Reich Retires

John Reich, who most recently served as the Director of the OTS, retired at the end of last month.  John's last official action as a member of the FDIC Board was to vote "no" on the recently announced special assessment.  He has been a community banker, served as Chief of Staff for Senator Connie Mack, and was a member of the FDIC Board for a number of years.  A friend sent a copy of his letter to the OTS staff announcing his retirement.  An excerpt follows:

"Political appointees sometimes suffer somewhat from the label of being a political appointee.  It is a label that carries with it an implication of perhaps being a payoff for some level of political support.  And it also provides no assurance that the appointee has the background, qualifications, or even a strong interest in the field of responsibility.  Banking has been my complete focus for 36 of my 48 year career, and was a significant focus for the other 12 years on Capitol Hill.  Community banking in particular has been and continues to be a passion of mine.  I believe one of many lessons of the current economic environment is that banks that are deemed to have systemic implications and are therefore considered too big to fail - are also too big to manage, and too big to resolve.  Public policy going forward, in my opinion, should not encourage industry consolidation and the continued formation of such large enterprises, but should focus more on maintaining the health and viability of a strong nationwide community banking system.

We go through this life one time.  We enter with nothing and we take nothing with us when we depart.  We are remembered by our character, our integrity, and the relationships we had with our families, our friends, and our associates at work.  My memories of my time as a bank regulator will not be defined by the current financial crisis, but instead will be of the many good friends and positive relationships developed throughout my eight years as a regulator."

John is a good man, has been a tremendous friend to community banking and to IBAT, and will be greatly missed.  We obviously wish him the best in this new phase of his life.


We are so very sorry to report the tragic deaths of Rachel and Travis
Joiner, daughter and son of Shirley Joiner, Executive Vice President of
First National Bank in Eldorado.

Both were students at Texas A&M University.  The complete news story can be found here.

The IBAT Family mourns their loss.

Giant Pool of Money

A special program about the housing crisis produced in a special collaboration with NPR News. NPR answers all these questions: What does the housing crisis have to do with the turmoil on Wall Street? Why did banks make half-million dollar loans to people without jobs or income? And why is everyone talking so much about the 1930s? It all comes back to the Giant Pool of Money.

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

IBAT's 35th Anniversary

35th Anniversary1974 Memorable Events

As IBAT celebrates our 35th Anniversary, it is interesting to look back to see what memorable events have happened in the banking industry through these 35 years.  For example, in 1983, Banking Commissioner Robert Stewart resigned and James Sexton was appointed to the position.  When Commissioner Sexton took over the reins at the Texas Department of Banking, there were 1,547 banks in Texas.  This included 842 state charters and 705 national charters.  The number of independent banks domiciled in Texas was 1144.  (Source:  Federal Reserve and Comptroller’s Office June 30, 1982)

Now, test your trivia knowledge of these national Memorable Events in 1974.

1. What happened on August 9, 1974?
A.    Elvis Presley died
B.    Walter Cronkite broadcast his last CBS Evening News
C.    President Richard Nixon resigned from office

2. On April 8, 1974, which baseball player broke the homerun record?
A.    Willie Mays
B.    Hank Aaron
C.    Mark McGwire

3. In 1974, what caused the US to use daylight savings time all year?
A.    Wildfires in California
B.    The Great Northeast Power Blackout
C.    Fuel Shortage

4. Who did President Ford appoint as his Vice President?
A.    Nelson Rockerfeller
B.    Dan Quayle
C.    George H.W. Bush

5. In May 1974, the World’s Fair was held in what city?
A.    Seattle, Washington
B.    Chicago, Illinois
C.    Spokane, Washington

Answers:  1-C; 2-B; 3-C; 4-A; 5-C

Legal Ease Question of the Week

Legal Ease QuestionQuestion: After an owner of a CD passes, can the bank release the owner’s 1099 info to the beneficiary of the account?

To find out the answer, click here.

IBAT Foundation

FoundationApril is Coming

What are your plans to tell your story about the strength of your bank and your focus on community. There will be local, state and national proclaimations and media coverage all month playing up two markers: Financial Literacy Month AND Community Banking Month. Start your plan today. IBAT is focusing on financial education for senior citizens and kids 5th grade-high school. Help us tell the story of community bankers taking the lead on the local level. Email us your banker champions, plans and actions for our statewide messaging. Send to mlange@ibat.org

Also, the Texas Department of Banking is hosting a series of Train the Trainer sessions across Texas. The dates are: Houston, May 13, 2009; Dallas, August 19, 2009; Lubbock, November 4, 2009. Click here for the Registration Form.

Solutions from Services



BancVue's Newest Member

BancVue is proud to announce the newest addition to their team and YOUR sales representative for REWARDChecking®, Phil Linton. 

Phil Linton has been working with Texas banks for more than 25 years. As a Regional Sales Director for BancVue, Phil is based in Houston and is focused on providing innovative, long term growth solutions to community financial institutions in Texas.

Prior to joining BancVue, Phil spent 8 years working with Goldleaf Financial Services as the Vice President of Business Development and Bank Sales. Phil was a top performer, consistently exceeding sales goal. Phil also spent 16 years with Dun & Bradstreet. In his role as a National Account Manager, he worked with banks to implement risk based scoring models to improve bank loan portfolio management.

BancVue’s flagship product, REWARDChecking®, has helped more than 500 Community Financial Institutions across the country grow core deposits and attract new customers while lowering the total cost of funds. As of January 2009, 864,000 consumers have opened a REWARDChecking® account with deposits topping $7.7 Billion.

For more information on REWARDChecking®, contact Phil at 866.418.9590 or by email at phil.linton@bancvue.com.


FLagYou should have received a letter from IBAT this past week about the annual PAC Drive.  Please help our community banking industry by conducting a PAC Drive with not only your board of directors, but your employees.  To be entered in the drawing, we need:
1.    Your board members to contribute a minimum of $100 to either the IBAT PAC or the IBAT FedPAC
2.    Ask your employees to contribute to one of the two PACs.  And remember, the sale of Dream Vacation tickets counts as a PAC Drive.  Not only do your employees have an opportunity to contribute to the industry that provides their livelihood, they might also be in the Dream Vacation drawing during the IBAT Convention.

For more information, click here.
PAC Contribution Form
PAC Drive Drawing Information

On the Education Front

operations Operations Compliance Summit

April 7, 2009 - San Antonio, TX

More Information . . .

What you will learn:

  • Best practices for security intrusion notification
  • Tips for ID theft red flags
  • HR refresher and veterans’ rights
  • New liability for remotely created drafts
  • Compliance with stolen check reporting
  • BSA update
  • New school depository requirements


Texas Governor's Mansion Restoration

Mansion RestorationWe 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:
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
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 April 30.  For additional information, call Mae Beth at 800.749.4228.

Baker Market Update

Baker GroupThe Labor Department released its monthly payrolls report Friday morning . . . This morning’s payroll and unemployment reports highlight the likelihood of increased bankruptcies along with continued downward pressures on conumer spending, which typically has accounted for more than two-thirds of GDP. 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.

IBAT 17th Annual Congressional Visit

DC TripThe Time to Act is Now

Now is the time for community bankers to stand up and be counted in Washington!  Amid the turmoil of the failure of many of the mega banks, we can draw a clear distinction for our congressmen between Wall Street and Main Street.  But we can only convey this message by being united as we travel to Washington on May 12 to tell “our story.”  We had a record-breaking attendance in 2008.  Let’s break another record in 2009.  There is no fee to attend.  You just need to pay for your travel and hotel.  Make sure your franchise is protected on Capitol Hill!  Click HERE for more information.  Sponsorship opportunities are also available!

Coming Soon

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

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

Operations Compilance Summit
April 7 - San Antonio

FDIC Banker Outreach
April 14 - Austin

FDIC Banker Outreach
April 16 - Richardson

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