Teach the Teacher

The award-winning IBAT Teach the Teacher Program™ will hit the road early next month. The program, which generally has 30-60 participating educators, will be held in:

  • Abilene (TEA Region 14) on June 6,
  • San Angelo (TEA Region 15) on June 7 and
  • Waco (TEA Region 12) on June 10.

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 public high school curriculum. However, this one-day program addresses students of all ages so K-12 teachers attend to learn engaging and practical approaches to teach money management to students.

We are currently looking for bank and associate member sponsors to ensure this program can continue to grow to meet the increasing demand from teachers and administrations across the state. Also, we welcome your assistance in spreading the word about Teach the Teacher in TEA Regions 14, 15 and 12. The Education Foundation's mission is Building Financially Literate Communities Across Texas, and we know we can fulfill this with your help.

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

May HOTCO Meeting

The upcoming Heart of Texas Compliance Officers (HOTCO) meeting will feature IBAT General Counsel Karen Neeley providing an update on fair lending. She will review the current status of fair lending following the U.S. Supreme Court decision on fair lending and ECOA. In addition, she will look at the recent CFPB redlining cases and discuss what they mean for banks.

As a reminder, HOTCO is an association for compliance officers at banks and credit unions in Travis County and surrounding areas.

We invite all compliance officers to attend this informative meeting on May 24, 2016 at 6 p.m. at Morelia Mexican Grill in Pflugerville. Additional information can be found here.

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

CECL Saga Moves Forward

The Financial Accounting Standards Board (FASB) announced last week that it intends to proceed with the controversial Current Expected Credit Loss (CECL) proposal for calculating Allowance for Loan and Lease Losses (ALLL), including the issuance of a final iteration in June. Importantly, a number of concessions were made to accommodate community bank concerns as reflected in a recent Bloomberg article. ICBA has been leading the charge to effect revisions, and IBAT appreciates its efforts. 

“This continues to be a moving target,” said IBAT Executive Vice President Steve Scurlock. “We are obviously pleased that FASB has listened to the very viable concerns of the community banking industry and is moving toward a more reasonable set of expectations for the smaller players. Our bankers have more than enough regulatory burden to deal with at the moment, and any revisions to the calculation of ALLL should be tailored appropriately and proportionately. We will continue to meet with the various regulatory authorities and engage on behalf of our members as these changes are implemented.”

Staff contact: Steve Scurlock, sscurlock@ibat.org, 512-275-2226

The Texas Independent Banker

The May/June 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

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.

TRID Rule Comment Letter

The CFPB is going back to the drawing board to address key areas of concern regarding the TILA/RESPA integrated disclosures. In a letter issued last week, the Bureau indicated a late-July beginning to the formal process required for amendments to be made to the rules. 

In the letter, CFPB Director Richard Cordray thanked members of the industry for their ongoing feedback regarding the rules and the technical challenges they have created.

“We continue to seek your active engagement in providing us with concrete information about technical problems…detailed and precise information is most helpful and will enable us to fully understand the concerns and evaluate how to best provide guidance,” Cordray said. 

IBAT will send timely notification to all members when the notice of proposed rulemaking is issued in July.

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

IBAT Discusses Hard-Hitting Issues

During last week's Congressional Visit, several Texas community bankers and IBAT staff members had an hour-long meeting with Consumer Financial Protection Bureau (CFPB) Director Richard Cordray. The meeting, arranged by Texas Department of Banking Commissioner Charles Cooper, was an opportunity for Texas community bankers to express their thanks for the recent interim final rule that greatly expanded the number of small bank creditors able to serve rural and underserved markets. The participants also addressed the need for additional clarification on this rule and a host of other issues.

Commissioner Cooper and IBAT President and CEO Chris Williston were joined by IBAT Chairman Rogers Pope, Jr. from Texas Bank and Trust, John Jay from Roscoe State Bank, Brad Tidwell from Citizens National Bank, Christopher Doyle from Texas First Bank, Cliff McCauley from Frost Bank and Kelly Goulart from IBAT. 

Discussions included a request to clarify the two-year look-back period for a small creditor to qualify as serving a rural or underserved area, ability-to-repay challenges for small business owners and ranchers, and the scope of "Know Before You Owe" (TRID). Director Cordray was especially appreciative of the firsthand experiences of Texas community bankers and promised serious consideration of the issues raised.

Following the meeting last Thursday, the CFPB sent a letter to various trade groups announcing that in late July it will begin a process that could amend the "Know Before You Owe" rules. While it is unclear exactly what changes might be considered, the process itself could bring much-needed clarification to the rules.

"It was a very informative and positive meeting, and Director Cordray was engaged and receptive to the feedback our bankers provided," said Williston. "We want to express our sincere appreciation to Commissioner Cooper for laying the groundwork to make this meeting possible. He was the one who really made it happen."

Staff contact: Kelly Goulart, kgoulart@ibat.org, 512-275-2231

DC Trip Recap

Last week, 120 representatives from the Texas community banking industry took IBAT’s message to Capitol Hill in Washington, D.C. as part of the association’s 24th Annual Congressional Visit.

In meetings with members of the Texas Congressional delegation, IBAT members urged co-sponsorship of key pieces of legislation to allow regulators the ability to right-size new regulations based on a bank’s risk profile, place greater Congressional oversight on the activities of the CFPB and raise the data security standards for merchants handling sensitive payment information.

While meetings were productive and IBAT members were well received, the cloud of presidential politics hung over the proceedings with several lawmakers explicitly noting that “not much is likely to get done” in a presidential election year.

“IBAT members were not deterred by the ‘do-nothing’ attitudes they were confronted with,” said IBAT President and CEO Chris Williston. “Everyone realizes that we’re playing the long game, and community bankers are determined to keep up the drumbeat until Congress addresses the damage it has inflicted on the industry by punishing community banks for the misdeeds of others.”

In addition to meetings conducted by members on Capitol Hill, IBAT General Counsel Karen Neeley and Deputy General Counsel Shannon Phillips met with staff of the CFPB on the topic of overdraft protection. During that meeting, CFPB staff indicated that they are very much still in the “fact finding” portion of overdraft rulemaking and the release of any proposal is not imminent.

Staff contact: Steve Scurlock, sscurlock@ibat.org, 512-275-2226

Baker Market Update: May 2, 2016

It’s been surprising to many, that a week that was pregnant with the potential for surprises didn’t really produce any; the NFL draft notwithstanding.  The deviations from expectations that did occur were not really all that surprising to those that have been paying attention.

Last week’s first unsurprising “surprise” came with a report that New Home Sales fell by 1.5% in March. More surprising than that was the revision of February’s 2% gain into a 0.4% decline. Oops. And, the 2% increase in Durable Goods Orders that would have been just what the doctor ordered, became a disappointing rise of just 0.8%.  That rise becomes a 0.2% fall when transportation components are taken out of the equation.  It is no mystery that weak business investment continues to be the manifestation of business uncertainty.

Read more in the Baker Market Update

Best of Community Banking Awards

By now, you should have received the 2016 Best of Community Banking (BOCB) Awards mailing that includes the brochure and entry form. 2016 marks the 25th year of this award competition, which provides an opportunity for you to showcase your bank, employees and officers, and the contributions made to keep your local community thriving and prosperous.

Categories include architectural design, community service, financial literacy and marketing. Entries are due to IBAT by 5 p.m. on Monday, June 27, 2016.

Special thanks to this year’s sponsors:

  • Bank Compensation Consulting
  • BKD, LLP
  • CalTech
  • Federal Home Loan Bank
  • Fenimore, Kay, Harrison and Ford, LLP
  • Garland Heart
  • Rogers-Ford, L.C. Architecture and Interior Design
  • TransFund

All entries will be displayed during the IBAT Annual Convention at La Cantera Hill Country Resort in San Antonio, September 24-27, 2016. Gold Eagle Award winners will be recognized during the Best of Community Banking Awards luncheon on September 26, 2016.

Staff contact: Mae Beth Palone, mbpalone@ibat.org, 512-275-2219

Teaching Excellence Nominations

IBAT has honored Texas teachers with the Teaching Excellence in Financial Literacy Award since 2010. This award recognizes and celebrates teachers who demonstrate innovation and success promoting financial literacy in grades K-12. Local community bankers and associate members are encouraged to nominate outstanding teachers in their communities. Three winners are selected annually, and these teachers each receive a $1,000 award from the IBAT Education Foundation.

An ideal nominee is a public, charter or private school educator dedicated to promoting financial education. This individual displays a passion for teaching and understands the importance of preparing today's students for tomorrow's financial decisions. Bankers/associate members and their teacher nominees will need to submit an application that includes the nomination form, letter of support and a teacher application form. A panel of judges will review the applications and announce the winners by May 20, 2016. 

We invite all IBAT members to seek out and nominate exemplary teachers in their local schools. The application deadline is Today. 

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

Dine and Demo

IBAT’s Dine and Demo, a successful new series, kicked off last month. The next webinar will take place on May 24, 2016, and now is the perfect time for bankers to register. In case you missed the first one and are wondering, what is Dine and Demo?

The IBAT Dine and Demo series is a quarterly lunchtime webinar, noon-1 p.m., in which up to seven companies provide product demonstrations in seven minutes or less. There is no cost for bankers to attend so order in lunch, gather your team around the conference room table and see the best that industry providers have to offer from the comfort of your own bank.

The lineup for the second webinar includes CalTech and S&P Global Market Intelligence, along with five pending companies. It promises to be a well-rounded group worthy of your time.

We’ve heard from bankers about your lack of time to meet with providers – Dine and Demo is the solution. We highly encourage you to participate in this free program on May 24, 2016. Register and learn more about Dine and Demo here.

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

Off-Site Loan Reviews

The Federal Reserve announced an option for examiners to review loans off-site during full-scope or target examinations. If a state member bank or U.S. branch and agency of a foreign banking organization with less than $50 billion in total assets is amenable and can send legible and sufficiently comprehensive loan information to the Federal Reserve in a secure manner, examiners may conduct an off-site loan review.

If you are a state member bank, the Federal Reserve should query you prior to examination to confirm your interest in the off-site loan review program.

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