IBAT's Bottom Line May 4, 2009



U.S. Senate Rejects Mortgage "Cramdown"

A well-publicized amendment by Illinois Senator Richard Durbin to allow bankruptcy judges to amend the terms and conditions of mortgage loans was soundly defeated yesterday (45-41) on the Senate floor.  The amendment to the important S. 896, which increases FDIC borrowing authority (a condition of lowering the special assessment), makes the $250,000 coverage level permanent along with other equitable revisions in FDIC coverage and assessments and brings some needed changes to the "Hope for Homeowners" program, and has long been opposed by IBAT.  We have had assurances for months from our two Senators that they would oppose.  We, along with over 120 IBAT members will have the opportunity to thank both of our Senators in person when we meet with them in Washington, D.C. later this month.

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 . . .

**Early Bird Deadline- Register before Friday, May 8 to receive early bird pricing!**



PACThanks to Our PAC Supporters

Thanks to everyone who conducted a Bank PAC Drive this year.  For a list of all participating banks, click here. The list includes PAC Drives conducted between April 18, 2008 and April 20, 2009.

Special congratulations to Ben Flencher and his crew at Citizens State Bank in Somerville,
winners in this year’s PAC drawing.  The IBAT staff will be visiting
Somerville in the near future to host an appreciation event for the

Thanks to you, more IBAT banks than ever before participated in this
year’s PAC Drive. This money will help finance the campaigns of those
men and women in Austin and Washington DC who understand the difference
between Main Street and Wall Street.  You are making a difference, and
your commitment is deeply appreciated! 

As you know, the next election cycle will include statewide races,
which “ups the ante” in the area of political contributions.  We urge
all community bankers to participate as they can in our various PAC
activities.  Your contributions make a huge difference in our ability
to “tell the community banking story!”

For more information, click here.
PAC Contribution Form

Texas Banker Educates Our Future Leaders

LEADSThe Charles T. Doyle Leadership Education and Development Series
Program (LEADS) was the vision of former Texas City Mayor Chuck Doyle. 
The Texas City ISD Foundation for the Future and the Texas City – La
Marque Chamber of Commerce Leadership Mainland have partnered together
to bring life to this project.  The LEADS program emerged to provide
leadership-training opportunities to select junior and senior high
school students from the following school districts:  Texas City, La
Marque, Dickinson and Galveston.  In April 2004, Mr. Doyle and Texas
First Bank pledged to underwrite the program for the next ten years. 
In honor of his commitment, the program’s name was changed to the
Charles T. Doyle Leadership Program.  Click here to learn more.

IBAT Legislative Priorities

CapitolThe legislative session plane is beginning its descent into adjournment.  With less than a month before the 81st Session adjourns sine die on June 1, the window of opportunity to pass legislation through both the House and Senate is narrowing.    The majority of IBAT initiatives have made it through the committee process and are awaiting action by the full House and Senate.  To track the progress of IBAT's pro-active agenda, click here.

Consumer Tips May 2009

CTDid you know that using the new $1 Presidential Coin can help our country save millions of dollars?  Read more in the May issue of Consumer Tips by clicking here.

IBAT Capitol Report

Capitol ReportPlease 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.

Solutions from Services


Coy Lewis

Do you ever wish you could outsource your bank's HR Department?

Many banks are looking for outsourcing opportunities to reduce fixed costs, yet provide
a high level of expertise. In the Human Resources area, this arrangement could consist of either having a consultant on call to render consulting expertise at any time or on-site on a scheduled basis. It would include, but would not be limited to, designing a performance appraisal procedure, reviewing HR files to ensure federal and state compliance, and consulting with supervisors regarding employer-employee situations which would alleviate possible exposure for you and your company with regard to labor laws. It affords your organization strict confidentiality of all human resource information, prompt completion of all daily work and projects, and the expertise and experience of several qualified H.R. consultants from the Coy Lewis Company.

IBAT suggests that you contact Coy Lewis at 800 569-3713!

Click here to see what others say about the expertise and experience of qualified HR consultants from the The Coy Lewis Company.

Legal Ease Question of the Week

Legal Ease QuestionQuestion: When an accountholder dies, is an affidavit of heirship sufficient for us to close the account and pay the funds to the heirs named in the affidavit?

To find out the answer, click here.

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

Meet the IBAT Staff

AGAs IBAT celebrates our 35th Anniversary this year, we wanted to introduce you to our staff
Many of the staff you know already and some that you may not be as
familiar with.  IBAT really is a family.  We laugh together…we cry
together…we get on each other’s nerves.  But at the end of the day, we
can always count on each other.

The IBAT family has 226 years of combined experience with the
association.  We recently asked the staff to complete a fun
questionnaire to give you a chance to get to know them better.  From
now until the Annual IBAT Convention, we’ll be featuring them on the IBAT website.  Enjoy and welcome to our home.

Can you identify this staff 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.

Compliance Forum

CUGIBAT'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.

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.

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.

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."

Subchapter S Bank Association

Sub S

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

Baker Market Update

Baker GroupOn Wednesday, the Fed met for the third time this year, deciding to maintain their target range for Fed Funds of zero to 0.25%. The Fed’s statement indicated the economy continues to decline, but “the pace of contraction appears to be somewhat slower.” 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.

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.

Coming Soon

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

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