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

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

Better Way, Better Day

In Speaker of the House Paul Ryan’s “Better Way” speech to America last week, he unveiled his comprehensive legislative vision for the next Congress. On the heels of Chairman Jeb Hensarling’s proposal to replace the Dodd-Frank Act, Ryan’s “Better Way” plan includes a number of similar proposals aimed at reducing regulatory burden on the nation’s financial institutions. Among the proposals in Ryan’s plan are:

  • A framework to offer highly capitalized and well-managed financial reforms as an option for relief from some regulatory requirements;
  • Restructuring of the Consumer Financial Protection Bureau to put it under the governance of a five-member commission and congressional appropriations;
  • A requirement on financial regulators to do a cost-benefit analysis when writing rules and an additional requirement for Congressional approval of all rules that are estimated to cost the economy more than $100 million a year;
  • Automatic QM status for all mortgage loans held in portfolio; and
  • Removal of the $50 billion threshold for a bank to be determined a “systemically important financial institution,” replacing it with a multifactor test. 

“We are encouraged to see so many regulatory relief items elevated to Speaker Ryan’s list of priorities for the nation,” said IBAT President and CEO Chris Williston. “To get the economy back on track and ensure national prosperity, we must have a strong financial services system grounded in community banking,” he said.

Williston also added a note of optimism and encouragement – “for all community bankers who have lamented the lack of Congressional action on regulatory reform, Speaker Ryan’s proposals should signal that the continued and untiring voice of community bankers are being heard at the highest levels of Congress. Now is the time to redouble our efforts!”

The Better Way Taskforce Report on the economy can be found online here (financial reform section begins on page 39).

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

CECL Update

After years of formulating the “Current Expected Credit Loss” (CECL) model, the Financial Accounting Standards Board (FASB) last week released its standard updating the guidance on recognition and measurement of credit losses for financial assets.

IBAT appreciates the aggressive advocacy of ICBA regarding this significant change to the calculation of loss exposure in the asset portfolio and also is pleased that FASB has recognized the unique challenges faced by community banks in implementing and maintaining a potentially complex new process. 

“FASB has spoken, and now the regulators must determine how this will be applied to banks of all sizes,” said IBAT Executive Vice President Steve Scurlock. “IBAT will continue to be highly engaged with the various regulators to ensure that expectations and oversight are reasonable, scalable and consistent. Community bankers have had enough, and our goal is to make this transition as painless as possible.”

CECL becomes effective in 2020 for SEC registrants and in 2021 for others. IBAT will post analysis and commentary in a new CECL Resources page on our website, and we will add to this page as more information becomes available.  

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

Support the IBAT PAC

This is a friendly reminder that September 1, 2016 is the deadline to have your IBAT PAC Auction item included in the Auction Guide. While we will happily accept items after that date, they won’t be listed in the guide. If you would like to donate an item to the PAC Auction, click here for the online pledge form or here to download a PDF. The online form allows you to submit a photo of your item, which will be used in the guide. If you’re not into shopping, you may send us a personal check or credit card number and we’ll do the shopping for you!

New this year, we'll have a surprise auctioneer for our live auction, so be sure to attend and help raise funds for the IBAT PAC.

Our Dream Vacation sweepstakes is back and entries are available by submitting this form or calling the IBAT office at 800-749-4228 (ask for Jessenia Villarreal). The winner will receive a $5,000 gift card. To download the order form and see official rules, click here.

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

Baker Market Update: June 20, 2016

Jimmy Bullard says he’s not going to play anymore. He’s taking his dots and going home. Home for him is St. Louis, where he has a job as President of the local Federal Reserve Bank. The game he’s not going to play anymore is the dot-plot game that the FOMC loves to resurrect each quarter and did so again when they met earlier this week. To be fair to Mr. Bullard, he refrained from sharing his long-run interest rate projection with the rest of the group because the St. Louis Fed is switching to a new forecasting style that doesn’t incorporate a long-run estimate. That seems like a good way to avoid an errant forecast and one wonders why some other FOMC members hadn’t already thought of that.

Read More in the Baker Market Update


We'd like to remind you that your Best of Community Banking (BOCB) Award entries are due at the IBAT office by Monday, June 27 at 5 p.m.

This is your opportunity to showcase the contributions of your bank and employees to your customers and community through architecture, community service, financial literacy and marketing.  Click here to download the brochure and entry form.

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 and the Best of Show recipient 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