IBAT News

Baker Market Update: June 29, 2015


If Alexander Hamilton were alive today, he’d be spinning in his grave. Well, that’s what Yogi Berra might say. The nation’s first Treasury Secretary will lose his place on the ten-dollar bill if the current holder of that office has his way, and that would be upsetting to anyone; particularly a Founding Father who lost his life in a duel with that no-good Aaron Burr. Regardless of whose likeness adorns our currency these days, Americans have been spending more of it. We learned this week that Personal Spending rose by .9% in May, and if that still doesn’t sound like a lot, it was a whole lot better than April’s .1% increase. Helping to spur this spending uptick was the .5% rise in Personal Income. This is good news for Janet Yellen et al., who have been lamenting the absence of growth in the amount of money that people make and the presence of growth in the amount they haven’t been spending. Could things be turning around for the consumer?

Read more in the Baker Market Update.

Best of Community Banking


For all those who plan to submit Best of Community Banking (BOCB) Awardentries but haven’t done so yet, this is your friendly reminder that they’re due to IBAT by 5 p.m. on June 30. Categories include architectural design, community service, financial literacy and marketing.

All entries will be displayed during the IBAT Annual Convention at the Galveston Island Convention Center, September 19-22. Gold Eagle Award winners will be recognized during the Best of Community Banking Awards luncheon on Monday, September 21.

As we celebrate the 24th year of our BOCB Awards, we hope you will take this opportunity to showcase your bank, shareholders, officers, employees and the contributions you make to keep your local community thriving and prosperous.

Legislative Webinar


Please join us for our customary webinar to review the good - and not so good - that came out of the (almost over!) 84th Texas Legislature. This popular, convenient and free program will cover some of the big issues, as well as bills passed that may impact you and your bank. We are hopeful that Karen Neeley’s white paper will be completed and ready for distribution prior to the program.

Please plan to attend this informative program on Tuesday, June 30, from 2:00-3:30 p.m. During the webinar, you will have the opportunity to send in questions. We will also have an open discussion at the end. Registration is now open. We appreciate your engagement in this important process and look forward to hearing from you. 

Call to Action


The FDIC issued a proposed rule last week that would change the way that community banks are assessed for deposit insurance - basing assessment rates on the probability of failure over three years. 

The rule would impact banks with less than $10 billion in assets and that have been insured by the FDIC for at least five years. In a statement issued with the proposal, the FDIC said that changes in the assessment calculation would result in lower premiums for 60 percent of banks, with 20 percent paying more and 20 percent having no change in their premiums. 

IBAT plans to comment on the proposal within the 60-day comment period, currently open. To ensure that our comments capture the sentiment of the entire IBAT membership, we ask for your feedback on the proposal. To assist you in evaluating the proposed rule and assessment change, the FDIC has developed a Deposit Insurance Calculator to estimate your bank’s assessment.

If you would like to provide feedback to IBAT staff as our comment letter is developed, please do so by emailing Shannon Phillips, IBAT Deputy General Counsel.

Operations Compliance


The operations side of the bank is facing increasing challenges. Technology is driving more products, but creating new security and compliance burdens. Innovative products are bringing in more non-interest income, but also raising regulatory concerns. And non-bank agencies continue to poke around in bank records and operations!

New this year!
The Summit has added a panel of experts to conduct a case study concerning Cyber Security & Disaster Recovery.

Topics Include:

  • Cyber Security
  • Escheat Basics
  • Electronic Banking
  • CFPB Update
  • Common HR Mistakes for Today’s Bankers

Who Should Attend
This Summit will benefit anyone with responsibilities in the operations and compliance departments of community financial institutions. Learn more and register.

FDIC Banker Outreach


The Independent Bankers Association of Texas and the Texas Bankers Association have partnered with the FDIC to bring you this important update on current and emerging banking issues. Breakout sessions are tailored for directors, risk management staff and consumer compliance staff. Attendees will be provided with resource materials for future reference. There will be two meetings:

  • Austin - August 18 - Omni Austin Hotel Southpark 4140 Governor’s Row Austin, TX 78744 Free Parking 800-THE-OMNI
    Attendees may call the Omni Austin Hotel Southpark directly at 800-THE-OMNI and ask for the IBAT Education Foundation FDIC Banker Outreach Summit rate of $139.00 single occupancy. Reservations should be made by July 20, 2015.
  • Dallas - August 20 - Marriott Quorum by the Galleria 14901 Dallas Parkway Dallas, TX 75254 Discount Parking—$7.50 888-236-2427

Donate Today!


July 6 is the deadline to make your tax-deductible bank contribution to the Comfort Care Crew for Military Kids. Since 9/11, there have been at least 400 military kids a year on average who experience the loss of a parent in a combat-related death. In addition, more than 2,000 children of veterans are affected annually by the suicide of a parent.

Donations are used by the Comfort Crew to provide kits with age-appropriate support materials to help kids cope with challenges they may face growing up in a military family.

Checks should be made payable to the Comfort Crew and mailed to IBAT. We will present the checks to the Comfort Crew in mid-July on behalf of the community bankers of Texas. For additional information, visit the Comfort Crew website.

FEMA Tips


It’s sad that during times of tragedy and disaster, there are evil folks out there who will try to take advantage of those who are already hurting. Unfortunately that’s our current reality. Click here to access FEMA-prepared tips to defend yourself from fraudsters.

When it comes to a situation like this, the initial flooding may not be the only damage you need to consider. Mold and mildew can have a serious impact on your health long after clean-up is done. Click here to learn how you can clean, dry and discard mold in your bank or home following a flood

Whether you sustained damages during the recent Texas flooding or want to help those who did, it’s important to be cautious. Please share the above tips with others in your bank and community.

New Robocalling Rules


Last week, the Federal Communications Commission (FCC) approved new robocalling rules that reject most of the entreaties of banks and other companies. The Telephone Consumer Protection Act (1991) prevents banks and other businesses from making robocalls to a cell phone without the consumer's prior consent. Banks requested that the FCC change the standard so they would not be fined when unintentionally reaching the wrong person, particularly because there is no comprehensive database showing if a phone number has been reassigned.

The FCC’s rules carve out an exemption for the first wrong-number phone call but not for any subsequent calls to that number. Neither marketing nor debt-collection calls are allowed under these exemptions. However, the new rules exempt bank calls to customers concerning fraud alerts.

Ready, Set, .BANK


After many months of discussing .BANK, the general availability registration period is upon us. As a reminder, this is a new and more secure Internet domain for the banking industry.

ICBA, in partnership with EnCirca, offers a variety of resources about the registration process, how to secure a .BANK domain and why it’s encouraged to secure your bank’s domain name. Additionally, CalTech provided an information flyer to help clarify the process.

ICBA members using EnCirca for .BANK registration will receive a 10 percent discount. The process is relatively simple, and we highly recommend you review this information and begin the necessary steps to register, if you haven’t already done so. 

H.R. 2789


Last week, Representative Kenny Marchant introduced legislation (The Capital Access for Small Business Banks Act - H.R. 2789) to help Subchapter S banks raise capital. As introduced the bill would:

  • Raise the limit on S-Corp shareholders from 100 to 500;
  • Allow S-Corp banks to issue preferred stock without a cap;
  • Allow dividends on preferred stock to be deductible by the bank; and
  • Allow dividends issued to preferred stockholders to be treated as ordinary income.

“Capital formation is a top-burner issue for all community banks, especially Sub S banks,” said IBAT President and CEO Chris Williston. “We thank Representative Marchant and his staff for recognizing the importance of this issue and putting forth legislation for the nation’s S-Corporation banks.”

IBAT also thanks Pat Kennedy of The Subchapter S Bank Association and Cynthia Blankenship of Bank of the West in Grapevine for their advocacy efforts on this and other issues of concern to the 2,100 banks organized under Subchapter S.

Baker Market Update: June 22, 2015


The Fed’s Open Market Committee met this week and continued to plot their path toward “normalized” monetary policy. Janet Yellen and friends scattered their dots carefully to punctuate the fact that theirs would be a tortoise-like tightening (most likely) and nothing for markets to fear. Yellen said she’s pleased with the economy’s improvement since the end of an ugly first quarter, but she’s still looking for more “decisive” evidence of a durable turnaround. Bond prices rallied after her press conference as the 2yr T-Note yield, notable for its tendency to  follow Fed expectations, dropped several basis points  to .63%. The  10yr remained range-bound between 2.25 and 2.40%, and sits at 2.28% as of Friday morning. Fed Funds futures project a 53% probability that the funds rate will remain below .50% by year-end.

Read more in the Baker Market Update.

84th Legislative Session Over


As we celebrated Sine Die yesterday, the 84th Texas Legislature officially came to a close. IBAT would like to thank our dedicated elected officials for their hard work throughout the last five months. We are proud of our accomplishments on behalf of Texas community bankers this session, which include addressing issues related to debit card surcharge prohibition enforcement, payment for discovery of records, multiple party account payees and patent trolls.

While we were not successful in passing legislation related to data security breaches, gift card fraud and property tax lenders, we certainly moved the needle on these topics and created both broader awareness and support of these ongoing and increasingly costly problems.

Click here for an in-depth recap of our Texas legislative efforts, and remember to register for our end-of-session recap webinar on June 30, 2:00-3:30 p.m.

Financial Literacy


If you can attend only one more meeting out of the bank this year, make it the Texas Financial Literacy Summit. The IBAT Education Foundation and the Texas Bankers Foundation invite you to join us at the Dallas Federal Reserve, July 28-29, for this Summit. Financial education matters, and the agenda is full of ways to help your bank build a CRA strategy around this important topic. The program will address the following:

  • Why financially literate communities matter for Texas;
  • How financially educated communities support Texas economic development;
  • How Texas teachers are already engaged and making a difference with students; and
  • What the action plan is for local bankers, no matter their efforts to date.

Peruse the brochure, review the full agenda and learn who the presenters, moderators and panelists are here. A special room rate is available at Hotel ZaZa across the street from the Federal Reserve, and the reservation deadline is June 27. We hope to see you there!

Silver Alert: 6.18.15


AFFECTED TEXAS NWS REGIONS:

San Angelo, Fort Worth, Houston/Galveston, Corpus Christi

Brownsville, Austin/San Antonio

THIS IS A MISSING SENIOR ALERT ISSUED BY THE TEXAS SILVER ALERT NETWORK

THE COMAL COUNTY SHERIFF’S OFFICE IS SEARCHING FOR CLUTIS MALCOLM BECK DIAGNOSED WITH A COGNITIVE IMPAIRMENT, WHITE MALE 79 YEARS OLD, DOB 04/04/1936, HEIGHT 6’ 00”, WEIGHT 160 LBS, WHITE HAIR, BLUE EYES, HE IS WEARING A GREEN LONG SLEEVE BUTTON UP SHIRT AND GREEN PANTS

THE SENIOR CITIZEN WAS LAST SEEN AT 4:30 PM 06/17/2015 AT 5761 E. EVANS RD SAN ANTONIO, TEXAS 78266 DRIVING A WHITE 2002 FORD RANGER WITH TX LICENSE PLATE 78YXL8.

LAW ENFORCEMENT OFFICIALS BELIEVE THIS SENIOR CITIZEN’S DISAPPEARANCE POSES A CREDIBLE THREAT TO HIS OWN HEALTH AND SAFETY.

IF YOU HAVE ANY INFORMATION REGARDING THIS MISSING SENIOR CITIZEN, CONTACT THE COMAL COUNTY SHERIFF’S OFFICE AT 830-620-3400.

NEWS MEDIA POINT OF CONTACT IS COMAL COUNTY SHERIFF’S OFFICE AT 830-643-6699

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