Changing Customer Addresses Case

In the case of Francisco Calleja-Ahedo v. Compass Bank in the First Court of Appeals, the customer, a resident of Mexico, asked the bank to send his account statements to his brother in Texas. A fraudster then redirected the statements to another address and debited the account. The account owner did not review his account statements for at least six months after the first unauthorized transaction. The court held that because the statements were not sent or made available to the customer, his duty to inspect and discover unauthorized transactions was not triggered.

In its amicus curiae letter, IBAT asserted that if a bank uses the appropriate security measures it should be able to rely on an address change request. Additionally, the customer should have some accountability for managing his financial affairs.

Staff contact: Shannon Phillips | sphillips@ibat.org | 512-275-2221

The Texas Independent Banker

The July/August 2016 digital edition of IBAT’s magazine, The Texas Independent Banker, is now available online. Click here to view the full table of contents or link directly to specific content below:

As always, if you have suggestions for future content to be featured in The Texas Independent Banker magazine, please contact Bonnie Kankel. We welcome your thoughts and ideas. 

Staff contact: Bonnie Kankel | bkankel@ibat.org | 512-474-6889

Hensarling Reg Relief Plan

Financial Services Committee Chairman Jeb Hensarling last week released additional information regarding his “Financial CHOICE Act,” which allows banks of all sizes an “off-ramp” to avoid a number of costly and cumbersome regulatory requirements.

“IBAT applauds the Chairman for his willingness to aggressively push for legislative changes to bring some relief to the community banking sector,” stated Chris Williston, IBAT President and CEO. “As previously indicated, we are fully supportive of these efforts and appreciate the opportunity to provide input on this important process.”  

Staff contact: Chris Williston | cwilliston@ibat.org | 512-474-6889

Data Collection Underway

Data collection is now open for IBAT’s 2016 Community Bank Salary and Compensation Survey.  

The IBAT Salary Survey is the gold standard in community bank salary, benefits and directors’ compensation data. This year we’ve made it even better with an expanded benefits section to provide insights into health insurance benefit trends in light of the continued implementation of the Affordable Care Act.

As a participant in the survey, you’ll receive a complimentary copy of the comprehensive PDF report AND online access to our custom reporting tool (an $850 value), both of which will be available in early September. Data collection will be open until July 31, 2016. Click here to participate

Staff contact: Christopher Williston | clwilliston@ibat.org | 512-275-2208

IBAT Webinars

Did you know? IBAT, in conjunction with Financial Education, Inc., hosts close to 150 webinars a year. Webinars are a very economical way to train your staff for one low price. Everyone can sit in on the program with the use of a speakerphone and a computer, or access archived webinars on-demand.

Topics are broken up by category or by date and include:

  • Auditing & Accounting
  • Collection
  • Compliance
  • Directors
  • Frontline and New Accounts
  • Human Resources
  • IT
  • IRA
  • Lending
  • Operations
  • Security & Fraud
  • Senior Management

You can access a complete listing of upcoming webinars and archived webinars here.

Success in Galveston

Thank you to everyone who attended IBAT's 31st Annual Leadership Conference last week in Galveston. This year’s conference included more than 225 attendees (64 first-timers) and their families, who connected with one another through focused leadership training and collaborative conversations on hot topics in the areas of lending, sales and marketing.

Congratulations to Kevin Monk, Senior Vice President and Senior Operations Officer at Alliance Bank, for receiving the 2016 Excellence in Leadership Award. Monk served on the IBAT Leadership Division Board of Directors from 2005 to 2015, including a year as Chair. He currently serves on the IBAT Services Inc. Board of Directors. In addition to his IBAT service, Monk is an active volunteer in his community, holding leadership roles with Lake Country CASA and Hopkins County Chamber of Commerce.

“Kevin has his priorities in the right place – his faith, his family and his work, and he walks that every day,” said Tom Sellers, President and Chief Executive Officer of Alliance Bank.  

IBAT was also pleased to honor Five*Star Award winners: Fenimore, Kay, Harrison & Ford, LLP; Advantage Health Plans Trust; and BKD. Additionally, congratulations to Ryan Morris of First State Bank for winning the Disney Adventure Raffle grand prize. Our congratulations also go to Sam Nunn of Citizens Bank, Mack Neff of Integrity Bank and Angie Brown of First National Bank for winning other great prizes in the raffle. Thanks to all who supported the IBAT Education Foundation through this raffle, which raised nearly $20,000.

Finally, the ever-popular IBAT Money Camp video is now online. Photos from this year’s event will be linked in next week’s Bottom Line. Save the date for the 32nd Annual Leadership Conference at Horseshoe Bay Resort, June 21-24, 2017

Staff contact: Julie Courtney | jcourtney@ibat.org | 512-275-2227

Event Registration

Due to implementation of a systems upgrade taking place this week, IBAT’s online registration system will be down. To minimize the impact on IBAT members, we have replaced all online registration links with PDF registration forms that can be faxed or emailed to IBAT. 

If you need assistance registering for any IBAT event, please contact Leslee Walker by email or at 512-474-6889. We apologize for the inconvenience.

Staff contact: Leslee Walker | lwalker@ibat.org | 512-275-2214

Register Now

Calling all CRA and marketing officers! We invite you to join us in Dallas, July 26-27, for the 2016 Texas Financial Literacy Summit. Don't miss this year's program and the CRA Roundtable in a NEW Dallas location - the corporate headquarters of TIB-The Independent BankersBank.

In addition to the most current news on Texas Education Agency (TEA) Personal Literacy Standards by TEA Representative Jim Doris, attendees will learn about proven education solutions for elementary, middle and high school students. Most of our speakers this year are community bankers who will share their stories about the rewards of financial literacy outreach.

Check out the full schedule and register here

Staff contact: Mary Lange | mlange@ibat.org | 512-275-2224

IBAT Compliance Conference

IBAT is proud to offer a new Compliance Conference specifically designed for today’s community bank officer. This in-depth program, which includes a combination of lecture and case studies, will teach skills and provide information necessary to survive and thrive in a post-Dodd-Frank world.

The conference is designed for compliance and/or operations officers to decide the specific topics they need to know in order to advance their existing knowledge.

Attendees may choose a one-day, two-day or three-day registration based on individual needs.

  • Day one covers residential mortgage lending as well as consumer installment lending, including Texas and federal laws and regs;
  • Day two focuses on issues of interest to both lending and operations compliance officers with segments on an effective compliance management program, marketing, overdraft programs, and mobile banking; and
  • Day three covers operations issues ranging from personnel concerns to vendor relationships to facilities issues.

This conference will take place in Arlington, August 3-5, 2016. Click here to register or for additional information.

Staff contact: Jessica Hernandez, jhernandez@ibat.org, 512-275-2207

Baker Market Update: June 27, 2016

Legend has it that early in the great depression President Hoover’s Treasury Secretary, Andrew Mellon, advised him to “Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate.” Then, of course, there would be nowhere to go but up. Crisis management indeed. These days, policymakers try mightily to smooth out the business cycle and minimize financial market volatility. That should work much better, right? Um… So much for that idea.

Read More in the Baker Market Update

FFIEC Annual Privacy Notice

The Federal Reserve Board issued a consumer alert regarding the FFIEC’s revised interagency examination procedures for Reg. P. The alert states that beginning December 4, 2015 (the effective date of the FAST Act), banks meeting these two conditions may cease providing annual privacy notices to customers:

  • The bank solely shares nonpublic personal information in accordance with the provisions of GLBA sections 502(b)(2) or 502(e) or regulations prescribed under GLBA section 504; and
  • The bank hasn’t changed its policies and practices with respect to disclosing and protecting nonpublic personal information since its most recent privacy disclosure to its customers.

According to the alert, a bank meeting the two conditions should not be cited for failing to provide an annual privacy notice or for providing an annual privacy notice using an improper delivery method.

Staff contact: Shannon Phillips, sphillips@ibat.org, 512-275-2221

Financial Literacy Summit

Calling all CRA and marketing officers! We invite you to join us in Dallas, July 26-27, for the 2016 Texas Financial Literacy Summit. Don't miss this year's program and the CRA Roundtable in a NEW Dallas location - the corporate headquarters of TIB-The Independent BankersBank.

In addition to the most current news on Texas Education Agency (TEA) Personal Literacy Standards by TEA Representative Jim Doris, attendees will learn about proven education solutions for elementary, middle and high school students. Most of our speakers this year are community bankers who will share their stories about the rewards of financial literacy outreach. Check out the full schedule here

Teach the Teacher Program

The award-winning IBAT Teach the Teacher Program™ will hit the road again next month with a stop in Kilgore on July 22, 2016. Hosted by the IBAT Education Foundation and launched in 2011, Teach the Teacher addresses the Texas Legislature's unfunded mandate to provide financial education as a part of Texas public and charter high school curriculum. This six-hour instructional methods course addresses the Texas Educations Agency’s standards and provides teachers with engaging and practical approaches to teach money management.

We are currently seeking bank and associate member sponsors to help underwrite the Kilgore program. We invite sponsors to attend the program to network and see the impact first-hand. The Education Foundation's mission is Building Financially Literate Communities Across Texas, and we know we can fulfill this with your help.

If you and your organization share our passion for financial education, we also invite you to attend the upcoming Texas Financial Literacy Summit, July 26-27, 2016 in Dallas.

Staff contact: Mary Lange, mlange@ibat.org, 512-275-2224

Durbin Amendment

Legislation introduced last week would repeal the Durbin Amendment, a provision of Dodd-Frank that created government-mandated price fixing of interchange rates on payment card transactions. The measure, H.R. 5465, was introduced by Chairman Randy Neugebauer of Lubbock. 

In a press release issued upon filing of the bill, Neugebauer called the Durbin Amendment “an egregious example of the Federal government picking winners and losers…represent[ing] crony capitalism at its worst.” Neugebauer went on to note that repealing the Durbin Amendment would restore competition to the marketplace.

“The Durbin Amendment was the icing on the cake of bad policies enacted under Dodd-Frank,” said IBAT President and CEO Chris Williston. “IBAT will pull out all the stops to support efforts to see its repeal.”

Staff contact: Chris Williston, cwilliston@ibat.org, 512-474-6889

2016 Director Assembly

Mark your calendar for the 143rd Assembly for Bank Directors at the Ritz-Carlton in New Orleans, September 15-18, 2016. You’re invited to join your bank director and senior management peers from across North America forCommunity Banking: Achieving and Sustaining a Competitive Advantage,offered by the SW Graduate School of Banking Foundation.

Presented by industry insiders and renowned strategists, topics on the agenda include ways to improve value, enterprise risk management, regulatory environment, new legal responsibilities, performance metrics, M&A strategies and community banking for a new generation, among others. The workshops are led by experts who can help guide and develop a solid plan for each bank’s unique situation.

This program is designed to complement a financial institution's own efforts in assembling a board with exceptional strategic vision and oversight. Availability is limited so register now, and reserve your hotel by August 18, 2016 to ensure the group rate. 

Staff contact: Chris Williston, cwilliston@ibat.org, 512-474-6889

Delay the New Overtime Rule

Over the past couple of weeks, IBAT staff has heard from many community bankers and other trade associations representing small business about the potential draconian effects of the Department of Labor’s (DOL) new overtime rule. The rule has sparked much controversy because it essentially doubles the threshold to be exempt from the Fair Labor Standards Act.

IBAT strongly encourages all IBAT members to write to members of Congress urging their support of H.R. 4773 and S. 2702, the Protecting Workplace Advancement Act, which would cause the DOL to delay and study this rule before its effective date of December 1, 2016.

“This new rule will essentially capture an additional 4.2 million workers, including many mid-level bank employees, who will now be non-exempt,” said IBAT President and CEO Chris Williston. “It will increase compensation costs while having a negative effect on employee morale, punishing those who demonstrate their dedication and commitment by working longer hours.”

Congress will be recessing soon and time is limited. Please consider writing your letter today! We also encourage those interested in an educational resource on this topic to register for Understanding the New Overtime Rules webinar on July 8, 2016. 

Staff contact: Chris Williston, cwilliston@ibat.org, 512-474-6889