The Winner Are...

Each year, the IBAT Education Foundation asks IBAT members to nominate educators in their area who teach financial education in innovative ways. The three winning teachers each receive a $1,000 reward and are invited to serve on the IBAT Teach the Teacher Program™ Advisory Board.

The 2015 winners are:

  • Christi Fuchs, Cuero Intermediate School, nominated by TrustTexas Bank, SSB (Cuero)
    Fuchs uses "building bucks," a 5th grade classroom dollar system that promotes classroom readiness, financial literacy, accountability and responsibility.
  • Cindy Reynolds, Dripping Springs High School, nominated by Pioneer Bank, SSB (Dripping Springs)
    Reynolds teaches her high school students financial literacy for small businesses by focusing on financial management concepts as freshmen, then has them run the student store as a small business project their junior year.
  • Kay Whitton, Jim Ned High School in Tuscola, nominated by Texas National Bank (Tuscola).
    Whitton uses a full-year Money Management program with her high school students.

IBAT appreciates the efforts of all applicants. Congratulations to the three deserving winners, and special thanks to the judges.

Complimentary Webinar

Please join us for a complimentary webinar where IBAT General Counsel Karen Neeley will discuss the ins and outs of the new Texas account disclosure in SB 1791. In the days before the September 1 effective date, we have received a lot of questions regarding this disclosure. This program will help you understand what is required, what is not required and give you practical advice on how to implement this disclosure at your bank. 

Please plan to attend this informative program on Thursday, September 3, 10 -11 a.m. During the webinar, you will have the opportunity to send in questions online. We will also have an open discussion at the end. Registration is now open.

We appreciate interest in this webinar and look forward to hearing from you. Contact Shannon Phillips.

Visa-Target Settlement

Target’s reimbursement to Visa issuers for the retailer’s massive data breach in 2013 was announced last week. According to the settlement, Target will pay Visa issuers as much as $67 million. It is currently working on a similar agreement with MasterCard issuers. While this amount is higher than the proposed $19 million settlement with Visa and MasterCard that fell through a few months ago due to insufficient support from MasterCard issuers, it is a fraction - less than 20 percent - of the $400 million cost to replace all compromised cards.

This data breach and the many others that have followed it continue to reaffirm that stronger federal data security and cybersecurity laws are needed immediately. IBAT strongly supports the Data Security Act (H.R. 2205/S. 961), which creates a national uniform standard for timely notification when a retail data breach occurs and applies consistent Gramm-Leach-Bliley data security standards to all businesses that handle secure customer data.

This legislation would also create consistent standards for the protection of consumer data, shift the liability for fraud losses to the entity that experiences the breach, and most importantly, reduce future instances of data breaches.

Social Media Leaders

ICBA recently released its Top 50 Community Bank Leaders in Social Media, and we’re proud to report that several IBAT member banks made the list.

Congratulations to:

  • Frost Bank (San Antonio),
  • Amarillo National Bank, City Bank (Lubbock),
  • Lone Star National (Pharr),
  • Woodforest National Bank (The Woodlands) and
  • First State Bank (Gainesville).

Those recognized were selected based on their engagement, content, number of followers and new content frequency. The social media leaders and influencers will be profiled in the September 2015 issue of ICBA Independent Banker.

You Can Stop CU Expansion

As reported in the Bottom Line on August 11, IBAT filed a comment letter strongly objecting to a proposed rule expanding the ability of credit unions to make small business loans. We are aware of outreach by an association representing credit unions to members of Congress on this issue and want to encourage you to contact your member of Congress, write a comment letter on this proposal or preferably, do both. 

We frequently hear from our members that credit unions in their markets are expanding aggressively, and offering both pricing and underwriting concessions to borrowers that are simply not possible for community banks to match. “Real-life” examples are especially compelling, and direct contact with your member of Congress on this issue to express your frustration is important.

Please refer to the August 11 article for specifics on the proposal and applicable links.

Board Nominations

Nominations are currently open for Directors of the Federal Reserve Bank of Dallas. The Bank is accepting nominations for Class A and Class B Directors in the form of a resolution of the member bank’s Board of Directors between now and August 27, 2015. 

Eligibility requirements for Class A and B Directors can be found on the FRB of Dallas website.

Save the Dates

Join us in a great new location next year for Winter Summit XVI, January 25-27, 2016. We will host Winter Summit at the gorgeous Westin Riverfront Resort & Spa at Beaver Creek Mountain in the heart of Vail Valley in Vail, CO. Our Beaver Creek resort features direct access to skiing and golf as well as year-round activities. The Westin is home to the 27,000-square-foot rejuvenating Spa Anjali and Richard Sandoval's Mexican restaurant, Maya. Experience total renewal while at Winter Summit.

What others have said about the Summit:

  • “While we are often frustrated with regulations and laws, it is incumbent on all of us as bankers to stay informed and communicate with our partners.”
  • “The Winter Summit is an excellent opportunity for you to discuss the 'rest of the story' with some of the best minds in our business in a relaxed setting. I support this program and highly recommend it to anyone who wants to stay on the leading edge of events facing our industry."

Registration for Winter Summit XVI will open soon but for now, mark your calendar!

Another not-to-be missed IBAT event to mark on your calendar is TechMecca 2016. You asked and we delivered - gone is the traditional trade show format of TechMecca! Join us in Austin on February 11-12, 2016 for 12 first-class breakout sessions, one cutting edge general session and 40 seven-minute demos from leading partners in the financial services industry. The new format will allow bankers to hear straight from the presenters about new products, services and opportunities.

Registration for TechMecca 2016 will open soon as well! Stay tuned to the Bottom Line for updates about both exciting events.

Contact Julie Courtney with any questions. 

Ready for Dove Season?

Please join us in Leadership Division Region 2 for a sporting clays tournament on August 27 at:

San Angelo Claybirds
Association Range
12026 US Highway 67 South

1:30 p.m. – Registration
2:00 p.m. – Start Time
5:30 p.m. – Barbecue Dinner (sponsored by CalTech)


(Trap, skeet, 5 stand and sporting clay ranges open at 1:00 p.m. at shooter’s expense)
Tournament with dinner: $85 per person
Tournament open to bank employees, customers, board members and sponsors.

Fee includes shells and meal. Shooters need to bring their own shotgun (auto, over/under or double barrel) and eye protection.
Golf/Hunting carts welcomed.

Sponsorships are available. Contact Joseph Thomas (Texas State Bank, San Angelo) at 325-944-7533.

Please join us in Leadership Division Region 10 for a sporting clays event on August 27 at:

Boswell-Porter 4-H Range in
Snook, TX
7676 County Road 247

3:00 p.m. - Registration
4:00 p.m. - Start Time
Prizes, dinner and drinks will follow.


The event is arranged to assist IBAT members in networking at the local level and to raise funds for the IBAT Legislative Fund in order to continue the fight in Washington. The event is open to all IBAT bankers, directors and affiliates.

Registration fees (include shotgun shells and dinner):

$125 per person (4 man team)
$25 per person for networking, dinner and drinks only (non-shooters)
Sponsorships are available at the following levels:

Gold: $500 | Silver: $250 | Bronze: $100

Baker Market Update: Aug. 24, 2015

These days, trying to make sense out of all the economic data that pours over us is like trying to read Chinese. Maybe that’s because the most significant data of late is written in Chinese. Just yesterday, markets were surprised by the weakest manufacturing report out of the PRC in 77 months. The dark clouds that seem to be forming over the world most populous nation may not be confined to the mainland. The fraying fortunes of Asia’s juggernaut have sparked concerns for the negative consequences that its economic downturn may bring to others. Like us.

Read more in the Baker Market Update.

Upcoming HOTCO Meeting

The Heart of Texas Compliance Officers (HOTCO) is a newly created association for compliance officers at banks and credit unions in Travis County and surrounding areas. For HOTCO’s third of four meetings in 2015, the topic will be ‘Signs, Signs, Everywhere are Signs! The Compliance Officer’s Responsibilities for Signs ’ presented by Annette Evans of Padgett Stratemann & Co., L.L.P.. 

We highly encourage all compliance officers to attend this informative meeting on September 9, 2015 at 6 p.m. at Morelia Mexican Restaurant in Pflugerville. Additional information can be found here. We hope to see you there!

Q3 Dell Sale

For the third quarter of 2015, Dell is offering IBAT member banks, bank employees and customers 35% off the list price of Optiplex and Latitude PCs. Please use current coupon code SAVE35BIZ.

Additional offers include:

  • Save an extra 10% on select XPS and Inspiron PCs
  • Save an extra 10% on select PowerEdge servers $1299 and above
  • Save an extra 10% on Dell Precision Workstations
  • Save up to an additional 10% on select Dell electronics and accessories

While these deals are offered until October 31, IBAT member savings are available from Dell all year long. On average, IBAT members enjoy savings of approximately 30% on each order. If you'd like to take advantage of the Q3 deal, visit Dell's website or contact Bryan Horten, IBAT’s Strategic Account Manager, at 512-942-9120. Be sure to include the unique Dell/IBAT link number GS126658178 when placing your order. For orders of more than five units, please contact Bryan.

Feel free to download the flyer listing the current discounts, and share it with your staff and customers

Diebold TAG Conference

Diebold’s ATM Users Group, The Advisory Group (TAG), will host its national conference at the Hilton San Diego Resort and Spa, September 13-16. IBAT members will receive a discounted registration fee. Attendees will benefit from industry and education sessions as well as interact with peers, Diebold executives and subject matter experts.

TAG was created in 1978 with the original purpose to serve as a beta test group for Diebold's first ATMs. Since then, it has developed into a thriving and energetic independent user group encompassing financial institutions and ATM deployers of all sizes.

Click here for addition information and to register for the TAG Conference.


What are the biggest challenges facing community banks? According to the Office of the Comptroller of the Currency’s Semiannual Risk Perspective, community banks are most challenged by operational and lending issues, including:

  1. Strategic risk caused by shifting bank strategy to adapt to low interest rates, competition and slow economic growth;
  2. Management succession and retention of key staff;
  3. Expansion into new products requiring specialized risk management expertise;
  4. Reliance on third-party vendors for operational and business functions;
  5. Increasing volume and sophistication of cyber threats; and
  6. Increasing BSA/AML risks.

Is your bank prepared to respond to these challenges? IBAT offers two great schools focused on developing the next generation of lenders and operations officers to help you respond to every challenge facing community banks:

  • Bank Operations Institute (October 11-16, 2015)
    BOI builds its innovative banking program around moving operations officers from the back room to the boardroom. The emphasis is on practical, real-world banking issues and sure-fire solutions
  • Bank Lending Institute (November 8-13, 2015)
    BLI offers strategic insight into both the present and future of banking technology, best practices, administrative processes and project management. The bank training emphasis is on practical skills and approaches required for effective and profitable bank lending management.

The Return of Patent Trolls

Throughout the past two weeks, dozens of IBAT members have responded to a request for information on a new round of letters sent to banks and litigation filed against banks by patent trolls. Many banks have received letters from the patent trolls identified in our emails, and several banks identified an additional patent troll who is sending letters to Texas community banks - Dr. Adaikkappan Periyakaruppan.

Shannon Phillips, IBAT Deputy General Counsel, says he defers to each bank’s legal counsel but suggests all banks that received one of these letters or were served with process take the following steps:

  1. Do not contact the sender of the letter directly, unless legal counsel recommends it.
  2. Check your appropriate vendor contract for an indemnity and duty to defend. In any event, promptly notify the vendor(s) in writing about these claims and ask them to provide a defense to the bank.
  3. Implement a “litigation hold” to make sure you don’t inadvertently destroy records that might relate to the threatened litigation. Don’t overlook emails that might relate to the programs that are under attack.
  4. Send a copy of the letter or pleadings to sphillips@ibat.org.

Thank you to all who have responded with your letters thus far.