.thumbnail.jpg "2010 IBAT Leadership Division Amarillo Golf Tournament")
IBAT News
Call to Action
Co-sponsors Needed for Communities First Act
IBAT has issued a call to action for community bankers to urge their member of the U.S. House of Representatives to become co-sponsors of the IBAT inspired Communities First Act (HR 1697). The call comes after news that the bill will be marked up in the House Financial Services Committee in early March.
- The CFA contains dozens of significant regulatory relief provisions for community banks in the wake of Dodd/Frank, including:
- Allowing community banks to amortize losses on commercial real estate loans and other real estate owned over 10 years for regulatory capital purposes;
- Requiring the Securities and Exchange Commission to conduct a cost-benefit analysis before approving any proposed accounting change;
- Increasing the threshold number of bank shareholders that trigger SEC registration from 500 to 2,000; and
- Allowing the Financial Stability Oversight Council to veto Consumer Financial Protection Bureau rules that would adversely impact community banks.
BOCB Award Winner Citizens National Bank
Citizens National Bank Receives Bronze Medal for Community Service
Citizens National Bank received a Bronze medal in the Best of Community Banking Awards sponsored annually by the Independent Bankers Association of Texas (IBAT). The Henderson bank was recognized in the Community Service category for its 80th anniversary celebration, highlighted by the painting of a mural capturing aspects of news, business, history and landmarks of Rusk County during the 80 year period. Art teacher Janet Wallace won a contest to design the mural and muralist Denna Miller of Longview replicated the design on a downtown building.
Community Bank Bill Gaining Steam
Communities First Act (HR 1697) Continues to Make Progress in Washington
We are pleased to report that the Communities First Act (HR 1697), a broad bill aimed at specific regulatory burden and tax relief for community banks, continues to make progress in Washington.
This bill, an ICBA initiative strongly encouraged and supported by IBAT, was heard in Subcommittee last November, with additional action promised in the coming months. With the cosponsor tally now at 71, it continues to gain traction and momentum. Texas cosponsors include Canseco, Marchant, Poe and Sessions. Additionally, the Senate version of this initiative, S. 1600, counts among its cosponsors Senator Hutchison. We very much appreciate the support of these lawmakers on this “community bank centric” – and much needed – legislation. Detailed information on this bill is available here.
This issue is one of many that will be front and center on our upcoming trip to Washington, DC. For additional information and to register, please visit our website.
IBAT Member Vista Bank's 100 Year Anniversary
IBAT Member Vista Bank Celebrates 100 Year Anniversary
This year marks the 100th year Vista Bank has been serving West Texas. In appreciation of their valued clients they will hold a ribbon cutting January 25th at 5:30 PM at Vista Bank, located at 4621 50th Street.
News Facts:
- The Lubbock Chamber of Commerce will provide a ribbon cutting for Vista Bank's 100th Anniversary
- Ribbon Cutting will begin at 5:30 PM on Wednesday, January 25th at Vista Bank, 4621 50th Street
- Wine and hors d’oeuvres will be served
- Attendees can register to win a $100.00 VISA giftcard
(Drawing open to everyone. Limit one registration per person. Must be present to win.)
Vista Bank was founded in 1912 in Ralls, Texas. Today, the bank operates 10 full-service banking o ces in the communities of Abernathy, Crosbyton, Hale Center, Idalou, Lorenzo, Lubbock, Petersburg, Plainview, and Ralls. Read more about Vista Bank's history.
Didn’t Make It To TechMecca?
Were you unable to attend TechMecca? You can follow all the action online.
Follow live feeds from Twitter, Facebook and Flickr on the TechMecca Blog.
Political Season in High Gear
Thank You For Your Input and Involvement!
With tremendous uncertainty regarding the ultimate district lines, “who’s running where” and even the dates for the primary elections, we are well into our biannual process of determining which candidates to support. While we are waiting for some finality in the ever-dynamic redistricting saga for a number of open seats in the Texas House of Representatives and Congress, there are many districts and candidate slates that appear to be set regardless of how the process settles out.
And speaking of settling out, the U.S. Supreme Court issued an opinion on Friday in the State’s redistricting case. Because the Court remanded the case for further proceedings consistent with its opinion, it is unclear how that decision will affect the elections. Stay tuned. There are still a few balls in the air.
Some of you have already received communications from us seeking input on primary contests in your area. We appreciate your input and involvement, and want to make sure we are following the will of our members in each district. With over 30 open seats in various bodies, the chances are good you will have an opportunity to provide input in this process. Additionally, if you have any observations or opinions you wish to share, please call or e-mail us at any time.
Finally, sincere thanks to all of you who have faithfully supported the IBAT PACs over the years. You continue to make a difference for our industry!
Protect Your Collateral Values
Protect your portfolio from tax lien lenders!
In early December, we sent an email discussing steps to take to avoid impairment of your real estate collateral due to tax lien loans. As we approach the due date for 2011 property taxes, we encourage you to review this document and your procedures to ensure that your collateral is not impaired due to an unanticipated priority lien. We continue to receive calls and emails from banks that are dealing with the aftermath of a tax lien transfer, and hope to assist you in avoiding this unfortunate situation.
Texas Banks Find Success with SBLF
Report Shows SBLF Has Been Successful in Stimulating Lending
Nineteen Texas banks participated in the SBLF, seeing an average increase in small business lending of 29.6%.
The full list of participants in the SBLF is available via the Treasury Department’s website.
CATO Webinar
Corporate Account Takeover Guidance Issued by DOB
Late last week, the Texas Department of Banking (DOB) issued Supervisory Memorandum 1029: Standards for the Risk Management of Corporate Account Takeovers.
The Memorandum, along with extensive “Best Practices”, provides banks with a roadmap and tools to counter the increasing occurrence of this type of cybercrime. The materials were developed by a Task Force comprised of representatives from the DOB, U.S. Secret Service, SWACHA and the banking industry. Additional information regarding the Task Force, process and related resources are available online.
Additionally, the FFIEC Supplemental Guidance on Multifactor Authentication was effective January 1, 2012. The goal of the Supplemental Guidance is to prevent identity theft and financial fraud from the misuse of online banking applications.
Regardless of your charter type, we encourage you to review the materials on the DOB’s website, and to join in a webinar on January 25 at 3:00 PM for a thorough discussion of this important issue. A recording and collateral materials will be available online shortly after the live webinar.
2011 Summary of Deposits
The FDIC Quarterly Highlights from the 2011 Summary of Deposits
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 Featured Articles January 16, 2012 Issue
Source: FDIC Quarterly, Banking Profile Third Quarter 2011, Division of Insurance and Research
Each year as of June 30, the Federal Deposit Insurance Corporation (FDIC) collects deposit data for branches and offices of all FDIC-insured institutions. The resulting Summary of Deposits (SOD) is a valuable resource for analyzing deposit gathering and branching trends, as well as domestic deposit market share. The SOD data are available online... read more.
Read the Latest Missing Linc Blog Post
The Good and Bad of a Fully Functional CFPB
In an opinion piece and blog post circulated last week, IBAT President and CEO Chris Williston weighed in on President Obama’s recent appointment of a director to the Consumer Financial Protection Bureau.
“The absence of a director was creating a window during which unregulated, non-traditional financial entities such as payday lenders, private student lenders and other financial intermediaries could continue to escape direct oversight and rulemaking of the CFPB. Regulated financial institutions welcome the closing of that window,” Williston wrote.
However, the appointment of a director, Williston notes, does not come without concern for many community bankers who, “worry that the CFPB will propose rules that will hurt our customers and stifle our ability to provide competitive and innovate products for small businesses.”
The ultimate test of the CFPB, he concluded, will be “how the agency intends to implement ‘tiered regulation’ and resist the temptation to promulgate rules to fit all institutions.”
BOCB Award Winner First Victoria National Bank
First Victoria National Bank Receives Best of Community Banking Awards
| First Victoria National Bank received a Gold Medal, two Bronze Medals and a Certificate of Merit in the Best of Community Banking Awards sponsored annually by the Independent Bankers Association of Texas (IBAT). The Victoria bank was recognized in the Marketing category for a variety of programs by a panel of independent judges. The Gold Medal was awarded for a six-month e-Statement campaign tagged “Turn off the paper and we’ll turn on the dough” with customers receiving $10 for each account they switched to an e-statement. The program easily surpassed the goal of 775 new enrollments with 2,378 enrollments, equating to a $34,243 annualized reduction in statement printing expenses for the bank. The Bronze medals were awarded for a special “Big Day” celebration, inviting the community to an open house while offering new account specials, and for a people campaign, spotlighting personnel as the bank’s greatest asset. A Certificate of Merit was awarded for a campaign involving a new banking center in Spring. |
 |
 |
|
 |
|
 |
Register for the 2012 Congressional Visit
Register Now for IBAT's 2012 Congressional Visit
"We can simply hunker down and watch our franchises continue to erode, or you can join with me in becoming active in shaping our future."
-Scott Heitkamp, IBAT Chairman
Register now for IBAT's 2012 Congressional Visit
Obama Appoints CFPB Director
Richard Cordray Appointed as the Director of the Consumer Financial Protection Bureau
Last week, President Barack Obama took advantage of the current Congressional recess to appoint Richard Cordray as the Director of the Consumer Financial Protection Bureau (CFPB). Interestingly, the Senate remains in “pro-forma” session, which basically means they haven’t officially recessed for more than three days, and are doing so specifically to prevent “recess appointments”. Additionally, the language in Dodd Frank specifically refers to a “Senate confirmed” agency director prior to the CFPB having the authority to regulate nonbank financial services providers such as payday lenders, small loan companies and others. The only reason for a recess appointment is to avoid the confirmation process. This appointment will no doubt lead to prompt litigation and challenges, puts future rules and the enforcement authority of the CFPB in doubt, and raises questions regarding the legitimacy of future FDIC Board actions (CFPB Director has a seat on that Board) .
Senate Republicans had blocked the confirmation of any Director, believing that the CFPB should have oversight by a board, rather than an individual, and be subject to the appropriations process (to provide some level of Congressional oversight and leverage). IBAT has been supportive of legislative initiatives to provide these reasonable checks and balances on the new agency.
The President’s bold move will likely create additional political friction, and could result in further delay on the pending confirmations of several key bank regulatory appointments including the new Comptroller of the Currency (Tom Curry) and FDIC Chairman (Martin Gruenberg).
The CFPB is moving forward with plans to regulate the nonbank financial services providers, which will hopefully provide some consistent application of “the rules” under which we as community banks must operate. This is a very fluid situation, and we shall keep you apprised going forward.
The Latest Beige Book
The Federal Reserve System's Latest Beige Book Survey has Been Released
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.
-------------------------------
Dallas Beige Book
January 11, 2012
Federal Reserve Bank of Dallas
-------------------------------
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.
CRA Regulations
Community Reinvestment Act Annual Asset-Size Threshold Adjustment
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 Featured Article January 9, 2012 Issue
Source: Financial Institutions Letter, FIL-76-2011
The FDIC, the Federal Reserve Board, and the Office of the Comptroller of the Currency have published a final rule amending the Community Reinvestment Act (CRA) to adjust the asset-size threshold used to define “small bank” and “intermediate small bank” under the Act. Financial Institutions Letter (FIL-76-2011) is dated December 19, 2011. Statement of Applicability to institutions with total assets under $1 billion: FIL-76-2011 is applicable to all FDIC-supervised financial institutions... read more.
Gold Eagle Award Winner Bank of the West
Bank of the West Takes Home Gold Eagle Award for Financial Literacy
Congratulations to Bank of the West in Grapevine which took home the Gold Eagle Award for their Best of Community Banking entry in Financial Literacy. Making a deep commitment to financial literacy, Bank of the West has developed a financial literacy policy with eight different programs, each addressing different markets. Bank employees involved take a training course geared to the program they are responsible for and each yearly quarter, the bank changes focus, i.e., K-8th grade, high school, adult groups and one open choice quarter. The past year’s projects are extensive, well-defined programs across all age groups.
IBAT Member PointBank Enlists Social Media
IBAT Member PointBank Enlists Social Media Rewards to Improve Revenue, Image
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.
By Jackie Stewart
DEC 30, 2011
PointBank is looking to replace lost checking-account revenue by boosting its social media presence.
The bank, based in Pilot Point, Texas, will soon test BuzzBanking, a rewards program that lets customers earn points both for debit-card use and for publicizing their points-earning activities on Facebook and Twitter. The points can then be used to buy gift cards... read more.
Stay tuned for an exciting announcement about the new IBAT/American Banker subscription program at the Regional Meetings!
Watch IBAT's January Vlog
Watch The Corner Office: IBAT's January 2012 Vlog
YouTube blocked? Download the video file.
(Log in required, contact jkinzler@ibat.org with any questions.)
Community Bank in American Banker
Guns Welcome, Loans Needed at Chappell Hill Bank
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.
By Rachel Witkowski
Ask Texas banker Edward Smith for the key to surviving the worst economic slump in recent memory and he's apt to give a simple response: guns and ammo.
After Chappell Hill Bank was robbed early last year, Smith replaced the large "no firearms" warning at the bank's lone branch with a sign encouraging customers to carry licensed concealed weapons inside. The bank also pays employees to take a concealed firearms course... read more.
Stay tuned for an exciting announcement about the new IBAT/American Banker subscription program at the Regional Meetings!
Operations Alert
OPERATIONS ALERT: UDAP & Regulatory Problems with Overdraft Fees on Debit Cards
OPERATIONS ALERT: UDAP and regulatory problems with overdraft fees on debit cards in ad hoc programs.
Before a fee can be charged to a consumer who overdraws his or her account through a debit or ATM card, the bank must comply with Regulation E by providing a notice to the customer and obtaining an affirmative written consent from the customer as to the imposition of the fee. This requirement applies to all overdraft programs including both automated and ad hoc ones. A debit card transaction in an ad hoc environment could create an overdraft due to a “forced pay” resulting from the network rules. For example, a person pumping gas could swipe their card, be preauthorized for $1, pump $60 worth of gas, and the transaction must pay whether or not the customer actually has the full $60 in their account. The bank can’t charge a fee for the transaction unless the customer has authorized it in accordance with Reg E.
However, the Reg E form potentially misleads the customers into thinking that they are getting overdraft protection when in fact they will have overdrafts covered only when a card use is required to be covered by the depository bank due to the preauthorization system (forced pay). Thus, the only thing that the customer is opting in to is the right to be charged a fee. From a UDAP analysis, this situation is unfair and deceptive.
Currently, there is no sample notice that would be consistent with the model form but that would not be misleading. Thus, banks with ad hoc overdraft coverage can either stop charging an NSF fee for debit card usage or convert to automated programs. Regulators have required banks that have ad hoc programs to refund fees assessed on debit card overdrafts.
IBAT Banker Travis Jaggers in the News
Travis Jaggers, CommunityBank of Texas, Returns to Human Touch in Banking
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: Thomas B. Shea : For the Chronicle NEW CHIEF: Travis Jaggers is the new president of CommunityBank of Texas. Photo: Thomas B. Shea / © 2011 Thomas B. Shea
In his new role as president of the independent CommunityBank of Texas, Travis Jaggers is returning to his local banking roots. He started his career some 35 years ago as a part time-teller at First Pasadena StateBank while attending the University of Houston... read more.
IBAT Member Gives Back
American Bank Donates Bears to Women's Shelter of South Texas
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: KRISTV.com
Posted: Dec 29, 2011
by Ben Lloyd
CORPUS CHRISTI - Caseworkers with the Women's Shelter of South Texas were busy this morning collecting hundreds of teddy bears donated by customers and employees of American Bank.
Around 550 bears were donated at bank locations this year to benefit women, children, and sexual assault victims who receive services from the shelter... read more.
Getting the ‘Right People on the Bus’ Means Throwing Big Banks Off
Read the Latest Missing Linc Blog Post
In his December 20, 2011, American Banker editorial, “Community Banks Should Ask for a Divorce,” Robert H. Smith summarizes the growing frustrations of community bankers today in this way:
"Unfortunately the community banks of this country are thrown under the bus by just being a bank. They have been unable to disassociate themselves from extra costs and lost credibility resulting from the scarred reputation of the bigger banks. Today the community banks are subject to the same increased regulatory burden, increasing capital and general public disdain as the larger bank. It’s time for community banks to disassociate themselves from the big banks in the eyes of the public, the legislatures and the regulatory community. They must seek regulation under a different set of expectations, consistent with their size, capabilities and ability to compete consistent with community opportunities."
Smith, a former Chairman and CEO of Security Pacific Corp., now founder and director of a community bank in Newport Beach, California, “gets it.” Having made a living in a “too big to fail” bank and now having to survive and compete with Security Pacific’s acquiring institution, Bank of America, Smith conveys the mounting uncertainty of the future of community banks in a post Dodd-Frank era... read more.
IBAT Banker K.C. Wyatt in the News
K.C. Wyatt, Community National Bank & Trust, Elected TRA Board Vice-President
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: Corsicana Daily Sun
December 26, 2011
Wyatt elected vice-president of TRA Board
From Staff Reports Corsicana Daily Sun
ARLINGTON — The Trinity River Authority of Texas’ 25-member board of directors recently elected Kim C. Wyatt of Corsicana to a two-year term as vice president.
Gov. Rick Perry originally appointed Wyatt to represent Navarro County on TRA’s board of directors in 2004. He was reappointed in 2009... read more.