IBAT News

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IBAT's goal is to provide a diversity of opinions and viewpoints about national banking news.  Some news articles do not necessarily reflect the opinion of the Independent Bankers Association of Texas.

Bankers Digest Current Feature July 26, 2010 Issue
Ted Landis and Madhavi Mantha

More than one quarter of all households in the U. S. are unbanked or underbanked.

In some states, such as Texas, the figure is even higher – nearly 36 percent. As financial institutions begin emerging from the recession in search of new sources of growth, interest in this large pool of potential customers is mounting... read more.

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IBAT's goal is to provide a diversity of opinions and viewpoints about national banking news.  Some news articles do not necessarily reflect the opinion of the Independent Bankers Association of Texas.

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Dallas Beige Book
July 28, 2010
Federal Reserve Bank of Dallas
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The Federal Reserve System's latest Beige Book survey has been released. The Dallas Beige Book, along with a link to the national summary and reports from other Federal Reserve Districts, is available online.

This summary of current economic conditions is based on information collected on or before February 22, 2010. This report summarizes comments received from businesses and other contacts outside the Federal Reserve and does not reflect the views of Federal Reserve officials.

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IBAT's goal is to provide a diversity of opinions and viewpoints about national banking news.  Some news articles do not necessarily reflect the opinion of the Independent Bankers Association of Texas.

S&P: Home Prices Up in May
Home prices were up a seasonally adjusted 0.5 percent in May from a month ago, according to the S&P/Case-Shiller home price indices. On an annual basis, the 10-city index was up 5.4 percent, and the 20-city index was up 4.6 percent. Read More from Standard & Poor's.

Source: ICBA NewsWatch Today, read NewsWatch Today archives here.

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Picture: IBAT's lobby team (Jim Wise, our longtime DC lobbyist, Steve Scurlock and Chris Williston) with Chairman Frank and Congressman Ruben Hinojosa.  Special thanks to Congressman Hinojosa for arranging this meeting.

This week the Senate will take up the Small Business Lending Fund Initiative which will make available some $30 billion dollars of new capital available to qualifying community banks.  The bill cleared a major hurdle last week when the Senate invoked cloture allowing debate and final vote to proceed.

As we previously reported, the credit union lobby was working hard to attach an amendment by Mark Udall (D) Colorado that would authorize expansion of permissible commercial lending thresholds.  It now appears that such an amendment will not be considered in the final bill.  IBAT went on record last week co-signing a letter with ICBA and some thirty other state community bank associations supporting the bill so long as the credit union amendment was not part of the final package.

IBAT President and CEO Chris Williston and IBAT Executive Vice President Steve Scurlock held numerous meetings with House and Senate members (as well as senior regulators) in Washington last week to express our displeasure with the credit union power grab and to encourage our public officials to assist community banks in the implementation of the rules that will soon be considered as mandated by the Dodd-Frank Financial Reform legislation.

We know the credit unions will not go down easily.  Chairman Frank has vowed to hold a hearing on the credit union request sometime after the August  Congressional recess. So we can breathe easy for at least another month, however should you have the opportunity to visit with your member of Congress over the recess period, please reinforce to him or her the importance of this issue (details of which are in our letter) and the unfairness of allowing any tax exempt competitor the opportunity to expand into your "bread and butter" lending sweet spot.

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Over the course of this past year, ICBA, the Independent Community Bankers of America, has worked hand in hand with IBAT, fighting against competing financial interests as financial reform has raged through the halls of Congress.  ICBA and IBAT fought hard to keep collateral damage from Wall Street banking reform away from the community banking industry.  Now that the fight is over and we have a new Financial Reform law, it is time to dig out of the rubble and find the silver lining in a law that will produce over 500 new regulations for the banking industry.

Camden R. Fine, President and CEO of ICBA, will be speaking directly to IBAT Members at our upcoming Annual Convention, on Sunday, September 26, during the morning general session.  Fine will present an ICBA update on the state of community banking, and what the new financial reform law will mean to all community bankers.  Cam Fine is a 35 year veteran of both community banking and the halls of Congress.  In his blog, The Finer Points you will find a chronology, through past blog posts, of the struggle to keep Wall Street banking reform away from community banks.  In his most recent post, Fine talks about what is right and wrong with the new Financial Reform law. 

Join Cam Fine and many of your fellow Texas community bankers in Fort Worth on September 25-28, at the IBAT Annual Convention to discuss financial reform and a whole lot more.  To see a complete list of all convention activities, including other keynote speakers and educational breakout sessions click here.  While you're with us in Fort Worth, don't forget to visit our tabletop exhibitors to check out the latest products and services to keep you on the cutting edge and one step ahead of the competition.

You can follow all of the Convention activities on the IBAT Facebook Fan Page or Twitter.  This year's Twitter hash tag for all convention activities is #IBAT10.

We'd like to thank the IBAT Convention sponsors for helping make registration fees a little easier on your budget.  You can click here for a complete list.

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IBAT's goal is to provide a diversity of opinions and viewpoints about national banking news.  Some news articles do not necessarily reflect the opinion of the Independent Bankers Association of Texas.

Bankers Digest Current Feature: July 19, 2010 Issue
COMMENTARY: Still Bothering with Derivatives
Marshall E. Surratt, Banking Industry Historian

With recent items about derivatives still in the news, and with discussions for or against regulating them in the U.S. Senate and U.S. House of Representatives, we continue to wonder -- who uses these financial derivatives? Financial derivatives which were supposedly created to alleviate uncerntainties, have also proven tempting to use for quick profits... read more.

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IBAT's goal is to provide a diversity of opinions and viewpoints about national banking news.  Some news articles do not necessarily reflect the opinion of the Independent Bankers Association of Texas.

American Banker  |  Tuesday, March 30, 2010
By Cheyenne Hopkins

WASHINGTON — A key banking industry argument against the creation of a consumer protection agency — that the new division would write rules that conflict with safety and soundness standards — is shaky... read more.

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You can read American Banker for free through IBAT's subscriptionprogram. Click here to learn more.

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Financial Regulatory Reform Legislation is expected to be signed into law next week.  This legislation will change the rules for the financial services industry imposing new compliance burdens. 

Sections of the bill will go into effect on various dates in the future.  IBAT will offer a series of webinars providing guidance as the details of the various sections of the bill are finalized.

The first session "Financial Reform: Overview & Impact on Community Banks" is scheduled for August 6 and will be conducted by Jeff Gerrish of  Gerrish, McCreary, Smith. 

"Historical".  "Generational".  "Some bad, some good".  "Ugh".  Descriptives abound regarding the new legislation we will all be living with for the foreseeable future.  Much analysis has already been written, with much more to come.  The "knowns" are a mixed bag of positives for community banking, as well as some clearly negative provisions.  The anticipation of a plethora of new regulatory burden on top of what we're already choking on tops our list of downsides, and such appears to be a common fear based upon our many conversations and communications with community bankers from across the state.  As one community banker put it, "Let's see . . . take away fee income, heap on new and costly regulations, tell us who we have to hire, who we can loan to under what terms and underwriting standards, what products we can offer and what we get to charge for said products . . . sounds like a recipe for success to me." But just think where we would have been if we would have been on the sidelines when the whole financial reform debate began.  The many good provisions obtained were the direct result of strong community bank advocacy at the state and national levels.  We have our friends at ICBA to thank for that. There's an old joke about "a pony in here somewhere".  That "pony", or silver lining if you will, is that community banking has finally been recognized as a separate and worthwhile sector of the financial services industry among the press, public and elected and appointed officials.  Worth saving, worth nurturing and worth treating differently than the mega-banks. We can't recall an issue that has garnered more community banker involvement and engagement.  That's important, as this battle will go on for some time.  It will be incumbent upon all of us to "kick it up a notch" in our level of involvement to ensure we as an industry can profitably continue to serve our communities and customers as we have historically done. Your volunteer leadership and staff at IBAT are already working to influence the next chapter of this long and continuing saga.  Take a brief breath, stay tuned and be prepared to continue to engage in this arduous process.

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July 15, 2010.  Mark this day down as the day the United States Congress finally passed sweeping financial reform that, at least for now, changes the face of our financial system the likes of which we have not seen since the days following the Great Depression.

For almost 16 months we have been diligent in our attempts to keep you informed on all the legislative developments as this landmark legislation made its way through House and Senate committee hearings and markups, floor votes and amendments and ultimately the final committee report vote.  Next week the President will sign this bill into law.  You and the entire IBAT family have been diligent and responsive in our repeated requests to contact your Congressional representatives and advocate the community bank position.

We can all take pride in the many important concessions that were made because of your involvement.  We won on many crucial issues ably led by the ICBA in Washington...issues that have already been documented by us and many others.  But as we often cited, other important battles were lost, and must be corrected.

Make no mistake.  The process is far from over. In many ways IBAT's and ICBA's work has only just begun.  The process of implementing some 533 regulations, 60 studies and 94 reports called for in the legislation will begin the moment the ink begins to dry from the President's pen.  To put our challenge in perspective, the last significant banking reform measure to pass Congress, Sarbanes Oxley, only provided for 16 new regulations and 6 studies.  As I told a group of IBAT endorsed vendors gathered in Austin yesterday, the devil will be in the implementation of the details and subsequent rulemaking to ensure that the community bank franchise remains vibrant and relevant.

Over the coming days and months you can be assured that your association will redouble its efforts to support the ICBA as we seek legislative changes in some of the onerous provisions that were enacted and to weigh in forcefully and without compromise to mitigate the regulatory burden impact to your bank.  Your active participation in this process will be more important than ever to respond quickly as legislation is introduced or when comment letters are invited.

Christopher Williston, CAE concluded his remarks to the IBAT vendor partners yesterday by reminding them of the lessons of generational banking legislative history: with every great challenge there comes great opportunity.  The legislative goodwill that community banks now enjoy in Congress has never been more pronounced.  We will only fail if indeed we admit defeat.  Instead we must capitalize immediately and ride that goodwill to positive legislative changes and a recommitment of all community bank stakeholders to be militantly engaged in the process going forward.

I know the industry.  I know the people who fight for you in Austin and Washington.  And I know we are up to the challenge.

Again, it is a pleasure to represent this great industry and I am confident that community banking will emerge all the stronger because of your involvement and support.  We are blessed to have yours.

-Christopher Williston, CAE

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Click here for the Capitol Comments Archives.

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IBAT's goal is to provide a diversity of opinions and viewpoints about national banking news.  Some news articles do not necessarily reflect the opinion of the Independent Bankers Association of Texas.

Bankers Digest Current Feature: July 12, 2010 Issue
ACH TRANSACTIONS
Reprinted with Permission from The BSA Examiner© Wayne Barnett Software

An amendment to the NACHA Operating Rules went into effect June 18, 2010. (www.nacha.org, visit Recent Amendments under ACH Rules) The amendment codifies the requirement for banks to assess, document, and manage their ACH operating risks. It reiterates that banks can terminate or suspend ACH agreements with customers or thirdparty senders that breach the Rules; and it directs banks to establish the following three new loss-prevention procedures... read more.

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IT Security Summit Topics

• Changing Times, Changing Threats
• Managing Security and Compliance in the Advent of New and
• Emerging Technologies
• My Malware is More Profitable Than Your Malware
• Enterprise Risk Management: What Does It All Mean?
• How to Talk to Your Executives and Board About Security
• Roundtable Discussion: Lessons Learned on the Front Lines of
• Securing an IT Infrastructure

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Watch the Slide Show!

See pictures from the conference on Facebook and Flickr.

The 2010 IBAT Leadership Conference, Lessons in Leadership was held June 17-19 at the Horseshoe Bay Marriott, Horseshoe Bay, TX.  This year's conference had a strong attendance that opened with a preconference workshop delivered by Chris Zervas on conflict resolution solutions.   

On Thursday morning, golfers enjoyed the Ram Rock Golf Course.  Longest Drive went to Paige Nash.

Tournament Results

First Place	Second Place	Third place
Mike Brophy	Jim Crawford	Dennis Simmons
Mark Few	Derek McGee	Kevin Downing
Kevin Monk	Milton McGee	Bill Maxwell
Jacob Thompson	Mike Rehm	Les Robbins

Each of the general sessions was structured to build awareness and encourage lessons in leadership.  Lee Wetherington opened the conference with Leveraging Technology to Lead.  His message inspired attendees to reflection on their technology strategy. Immediately following Lee's presentation, everyone moved into exhibitor speed dating.  Each attendee visited the table top exhibitors for two minutes and rotated clockwise to ensure each exhibitor could converse with all. 

We revamped Money Camp for all registered children.  Activities included designing their own coin purses, piggy banks, how to write a check, and how to pack a picnic basket.  The children and some adults learned how to walk with confidence. The children were led by IBAT's mascot, Champ, into the exhibit hall for a piggy bank parade.  Each exhibitor was armed with nickels to inspire the kiddos to save. 

Thursday's opening reception included 40 exhibit booths displaying products and services important to our industry.  We delivered a full house to brand as new customers to all exhibitors in attendance.    For the fourth time we had a purse and toy auction to raise money for the Foundation and raised $3454.00 for the IBAT Education Foundation. 

On Friday morning, we opened the general session with a perspective panel discussion with bankers representing a diverse region of the state.  IBAT's own Chris Williston led conference goers in a valuable session on Lessons in Leadership.

Friday night, conference goers gathered for a 25^th Birthday Celebration.  Attendees enjoyed the band, Red Alert, and networked with fellow colleagues in a relaxed and family-friendly atmosphere. 

On Saturday, the IBAT Leadership Board served a pancake breakfast to all families in attendance.  Following pancakes, Coach Brad McCoy led an inspiring session on Preparing to be Prepared to a standing room only crowd.

Mark your calendars for next year! 

June 16-18, 2011

Hyatt Regency Hill Country Resort and Spa

San Antonio, TX

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It's time to gather your thoughts about what to donate to the IBAT Leadership Division silent and live PAC auctions. The auctions will take place Monday, September 27, 2010 at the Renaissance Worthington Hotel in Fort Worth. Our infamous auctioneer Craig Buford,will be calling and we'll see what goes on the auction block. Come have some fun with us! Get your donation in no later than September 17.

Click here for more information.

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We are pleased to announce that we have finalized plans for two important IBAT events in 2011. First, in preparation for the 2011 State legislative session, we will have an exclusive IBAT Community Banking Legislative Day on January 25-26. Make plans to be in Austin by mid afternoon on the 25th to attend an IBAT advocacy forum and group dinner. Briefings and a luncheon with elected officials are planned on January 26th.

Second, the IBAT Annual Washington Congressional Visit is scheduled May 3-5. For the past several years, we have been pleased to bring a large (well over100) contingent of Texas community bankers to D.C.  The consistent and growing recognition of the importance of our segment of the financial services industry among lawmakers is a result of your increased involvement in the process.  We anticipate that there will be much work to do in D.C. yet again next year in the aftermath of financial reform legislation.

Additional information and registration opportunities will be forthcoming. Please plan to join your community banking colleagues at both of these important meetings, both offered at no charge.

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IBAT's goal is to provide a diversity of opinions and viewpoints about national banking news.  Some news articles do not necessarily reflect the opinion of the Independent Bankers Association of Texas.

Volcker Pushes for Reform, Regretting Past Silence
By LOUIS UCHITELLE

Paul Volcker in his office with his wife, Anke Dening. He helped to write part of the current financial overhaul bill.
He left behind a group of legislators in Washington still trying to nail down a controversial attempt to overhaul the nation’s financial regulations in the wake of the country’s most serious economic crisis since the Great Depression... read more.

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IBAT's goal is to provide a diversity of opinions and viewpoints about national banking news.  Some news articles do not necessarily reflect the opinion of the Independent Bankers Association of Texas.

Photo by: Vanessa Monsisvais / El Paso Times

Woman will head Downtown Lions Club
By María Cortés González / El Paso Times

EL PASO -- Kelly Wiseman has become the first female president in the El Paso Downtown Lions Club's 87-year history.

While excited about making history 10 years after joining the club, Wiseman -- a compliance officer for [IBAT Member] United Bank of El Paso -- is more interested in continuing the organization's long-standing tradition of community service... read more.

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IBAT's goal is to provide a diversity of opinions and viewpoints about national banking news.  Some news articles do not necessarily reflect the opinion of the Independent Bankers Association of Texas.

SAN ANGELO, Texas — The editorial “Banks should foot the bill, not the U.S. taxpayers,” in Thursday’s Standard-Times misses the point.

It may sound appealing to say that the financial entities that created the meltdown should pay for the costs associated with proposed regulations, but in reality, when our government imposes significant new regulations, the consumers end up paying for them. The financial entities will raise their fees and interest rates and treat the new regulatory expenses as another cost of doing business... read more.

IBAT Member Gary D. Cox is president of Texas Bank in San Angelo.

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Late last week the Senate finally approved an extension to the National Flood Insurance Program,  H.R. 5569.  It extends the National Flood Insurance Program through September 30, 2010, and makes the reauthorization of the program retroactive to May 31, 2010, thereby making it possible to purchase flood insurance; renew existing flood insurance policies; increase flood insurance coverage; and honor policies negotiated during the time the program lapsed.  The legislation will now be sent to the President for signature.

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IBAT's goal is to provide a diversity of opinions and viewpoints about national banking news.  Some news articles do not necessarily reflect the opinion of the Independent Bankers Association of Texas.

House Passes National Flood Insurance Program Extension Bill
Independent Insurance Agents & Brokers of America
Bill extends the program for five years and includes business interruption and additional living expense coverage. Read more.

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Last week was anything but dull in our nation's capitol, with the primary business being financial reform (HR4173).  Following an all night session of the House and Senate conference committee the prior week, the political posturing began in earnest to find the necessary votes to pass the bill in the House...and pass it did early Wednesday evening largely along party lines.  Only two Texas Democrats crossed over to vote with Republicans against the measure– Representatives Henry Cuellar and Chet Edwards.  IBAT communicated our opposition to the conference committee report to every House congressional office early in the week.

All eyes are now on the Senate to find the sixty votes necessary to invoke cloture and clear the way for an up or down vote.  At this writing, only fifty-seven Senators have indicated their support for the bill and Senate leadership is working hard to find at least three Republicans to advance the bill and send it to the President for signature.  Industry observers largely expect that a bill will pass despite heavy opposition.

If the necessary votes are not found for the bill in the Senate or the Senate ultimately rejects the measure, financial reform legislation will be back to square one.  The conference report on the Dodd/Frank bill would be dead...there is no procedure that would allow the conference to reopen negotiations on HR 4173.

Texas Senators Hutchison and Cornyn remain opposed to the conference report despite their strong and persistent leadership and success in making the bill more palatable for community banks.

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On June 23rd, IBAT was honored with a visit by 14 members of Longview based Texas Bank and Trust's new Corporate University, along with two senior officers: Connie Milligan, Senior Vice President/Director of Personnel; and Karen Partee, Senior Vice President/Director of Public Relations.  The group is made up of junior level officers nominated and selected by Texas Bank and Trust's executive management team.  Each member is seen as a future manager and senior officer in the bank.  The group meets once a month for seven months and they focus on a deeper look into the organization and leadership development.  For leadership development, they are using John Maxwell's book "The 21 Irrefutable Laws of Leadership".

The purpose of the trip to Austin was to familiarize the group with their state trade groups and their involvement, on the bank's behalf, with their government officials and regulators.  

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First Bank of Farmersville, TX celebrated its 125th anniversary on June 29, 2010. For over 120 years First Bank has supported local communities with proven financial and lending services as well as a deep commitment to civic involvement. [First Bank's] commitment to friendliness, integrity, and teamwork empowers [them] to serve [their] community better than any outside organization could.

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IBAT's goal is to provide a diversity of opinions and viewpoints about national banking news.  Some news articles do not necessarily reflect the opinion of the Independent Bankers Association of Texas.

American Banker  |  Tuesday, June 30, 2009
By Katie Kuehner-Hebert

A college student, dressed conservatively and boasting a 3.5 grade point average, walks into a U.S. bank branch to cash a check. Just another day — only this "customer" ... read more.

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You can read American Banker for free through IBAT's subscription program. Click here to learn more.

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With foreclosures on the rise, more and more attention is being given to residential mortgage lending by Congress, the Texas Legislature and regulators. Significant changes to Regulation Z have been made by the Fed. In addition, the new administration has elected to NOT delay the implementation of sweeping RESPA changes. At the same time, Fair Lending enforcement is being aggressively pursued.

The Lending Summit will put you on top of these changes, prepared to handle implementation.

In addition, the program will provide information on the recently adopted Home Valuation Code of Conduct, Finance Commission Home Equity Modification Advisory. We will also review loan modification issues for all types of lending and tax lien financing issues.