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

Disney Vacation

Once upon a time there was an organization named IBAT that worked very hard to help community banks prosper in a dark and overly regulated time. IBAT traveled far and wide in order to ensure decision makers understand that community banks are simply different, and they should not be burdened by the same laws as the biggest banks.

Once a year, IBAT invites everyone in the land to its Annual Leadership Conference. Even kids are invited to spend a few days at a magical resort where they could learn about money and spend time with their parents. In the year 2016, IBAT decided to make the event even more special by letting everyone purchase chances and be entered into a drawing to win a Disney Adventure or one of four additional prizes. Everyone was beyond excited and could not wait for the luncheon celebration on Friday, June 27 to hear the names of the lucky winners! Even those who did not attend the Conference were encouraged to purchase chances to win and share this wonderful opportunity with friends, colleagues and family members. 

Some people were unsure about purchasing these chances, but then found out that IBAT would use the money raised to help other children in the land learn about money. In fact, IBAT strived to  build "financially literate communities across Texas" and encouraged everyone to help keep young Texans educated about financial matters.

  • $20 (1 chance)
  • $100 (7 chances at $14.28 per chance)
  • $500 (40 chances at $12.50 per chance)
  • $1,000 (100 chances at $10 per chance)
Please stay tuned for the happily ever after part of our story.

Cyber Attack Warnings

Federal Financial Institutions Examination Council (FFIEC) members, including the Fed, FDIC, OCC and CFPB, jointly issued a statement to remind financial institutions to actively manage the risks associated with interbank messaging and wholesale payment networks. The statement is intended to alert financial institutions about specific risk mitigation techniques and does not contain new regulatory expectations.

According to the statement, recent attacks against interbank networks and wholesale payment systems have demonstrated capability to:

  • Compromise a financial institution’s wholesale payment origination environment, bypassing information security controls;
  • Obtain and use valid operator credentials with the authority to create, approve and submit messages;
  • Employ sophisticated understanding of funds transfer operations and operational controls;
  • Use highly customized malware to disable security logging and reporting, as well as other operational controls to conceal and delay detection of fraudulent transactions; and
  • Transfer stolen funds across multiple jurisdictions quickly to avoid recovery.

Additionally, the Dallas Field Office of the North Texas Electronic Crimes Task Force recently sent IBAT a joint U.S. Secret Service (USSS) / Homeland Security advisory warning regarding ransomware and a USSS advisory on PIN reset/ATM cash out attacks. You can view both of these, along with recent USSS warnings on DDOS extortion threat and mobile payment system vulnerability, on IBAT’s website

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

IBAT's June Consumer Tips

IBAT's June Consumer Tips article about natural disaster preparedness and insurance is now available online. Being prepared for a natural disaster can not only help ensure the safety of your loved ones but it can also help your family return to normal as quickly as possible. Consumers often don’t understand what is and is not covered by their homeowners insurance policy, so these tips help explain how standard policies work.  

Please feel free to share IBAT's June Consumer Tips with your bank customers.

Staff contact: Lindsey Gehrig, lgehrig@ibat.org, 512-275-2215

Win a Disney Vacation

In case you missed it, we officially kicked off our summer member drive, the IBAT Disney Adventure Raffle, and we'd like to invite you to participate. For one more week, we are selling chances to win $5,000 for a 2017 Disney adventure of your choosing, or one of four additional prizes. The winners will be announced during the 31st Annual Leadership Conference, which begins next week! You do not need to be present to win.

Purchasing chances not only enters you into the drawing, but your contribution also helps the Foundation accomplish its mission of "Building financially literate communities across Texas." Be part of the group that is helping young Texans statewide.In case you missed it, we officially kicked off our summer member drive, the IBAT Disney Adventure Raffle, and I'd like to personally invite you to participate. For ten days only, we are selling chances to win $5,000 for a 2017 Disney adventure of your choosing, or one of four additional prizes

How To Play
Chances can be purchased online. Feel free to share with your friends, colleagues and family.

  • $20 (1 chance)
  • $100 (7 chances at $14.28 per chance)
  • $500 (40 chances at $12.50 per chance)
  • $1,000 (100 chances at $10 per chance)

We’re very grateful for IBAT members like you who help fund our nonpartisan, nonprofit activities.

Hensarling Proposal

Casting the vision for where financial services legislation would be headed under a Republican Presidency and Congress, Chairman Jeb Hensarling laid out his plan to replace the Dodd-Frank Act last week. 

Hensarling’s comprehensive proposal, dubbed the Financial CHOICE Act, would include:

  • Relief from key provisions of Dodd-Frank for any bank maintaining a simple leverage ratio of 10% and a CAMELS rating of 1 or 2;
  • Key regulatory reform measures to grant QM status on all loans held in portfolio, tailor future regulations to institutions of varying risk profile and provide greater recourse to appeal a material supervisory determination;
  • A requirement of financial regulators to conduct a detailed cost-benefit analysis of all proposed regulations;
  • A repeal the Durbin amendment; and
  • A revised plan for oversight of so-called “too-big-to-fail” institutions. 

“Chairman Hensarling’s CHOICE Act is precisely the right prescription to get the American economy moving again,” said IBAT President and CEO Chris Williston. “It combines sensible regulatory relief for qualifying institutions, protects the American taxpayer and consumer from another Wall Street meltdown, and most importantly, holds all federal financial regulatory agencies accountable.”

“IBAT will do everything in our power to help the Chairman advance this agenda,” he added. 

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

Straus Luncheon

Last week, IBAT Executive Vice President Steve Scurlock and Legislative Counsel Meredyth Fowler traveled to the Pearl Studio in San Antonio for the IBAT Leadership Division Region 7 luncheon with Joe Straus, Speaker of the Texas House of Representatives.

Speaker Straus focused his remarks on the state of the Texas economy, the importance of continuing to foster a positive business climate to promote growth in the private sector and the serious issues the Texas House of Representatives plans to tackle during the 85th Legislative Session. Speaker Straus explained that the House will focus its efforts on improving public education and its funding, improving infrastructure across Texas, tackling transportation needs and addressing important mental health issues.

The luncheon was extremely well attended, and IBAT would like to extend a sincere thank you to Bruce Toppin with Rosenthal, Pauerstein, Sandoloski, and Agather LLP for helping IBAT organize this event.    

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

Flags at Half-Staff

Presidential Proclamation -- Honoring the Victims of the Attack in Orlando, Florida



As a mark of respect for the victims of the act of hatred and terror perpetrated on Sunday, June 12, 2016, in Orlando, Florida, by the authority vested in me as President of the United States by the Constitution and the laws of the United States of America, I hereby order that the flag of the United States shall be flown at half-staff at the White House and upon all public buildings and grounds, at all military posts and naval stations, and on all naval vessels of the Federal Government in the District of Columbia and throughout the United States and its Territories and possessions until sunset, June 16, 2016. I also direct that the flag shall be flown at half-staff for the same length of time at all United States embassies, legations, consular offices, and other facilities abroad, including all military facilities and naval vessels and stations. 

IN WITNESS WHEREOF, I have hereunto set my hand this 

twelfth day of June, in the year of our Lord two thousand sixteen, and of the Independence of the United States of America the two hundred and fortieth. 


Baker Market Update: June 13, 2016

There were some records set [last] week, but not the kind that tend to induce celebrations. An exception might lie with owners of long bonds; or even not-so-long bonds for that matter. They’re probably celebrating. The combination of recent, weak domestic employment data along with a gloomy World Bank growth outlook and the perception of an increase in Brexit risk has resulted in some all-time low yields (high prices) around the world. Safe-haven flows into U.S. Treasuries have helped drive the yield of the Benchmark Ten Year down to levels not seen since the February lows.

Read More in the Baker Market Update

Fun Fact Friday: June 10, 2016

It's time to look for loose change because some quarters produced in 1970 might be worth a pretty penny. A certain number of quarters produced in 1970 have a tiny misprint which makes them very valuable.

According to Good Housekeeping magazine, the coins were printed over 1941 Canadian quarters and therefore a tiny "1941" marking appears above the word "dollar" on the back of the coin. It's almost impossible to see without a little help, however bids for the coin with the mistake have topped more than $35,000 on eBay.

It's not clear how many coins actually have the mistake, so check your wallet and under your sofa cushions.

Branch Supply Store

In participation with Deluxe Strategic Sourcing (formerly AccuSource), IBAT is proud to bring you convenient, one-stop shopping for your branch supply needs. The IBAT Branch Supply Store now has a robust inventory of bankers' favorite items such as: financial supplies; tax, HR, HIPAA forms and products; checks and deposit supplies; general office supplies; and promotional products.

There is no need to manage multiple vendors or search for the best prices - we've already done the work for you! Visit the Branch Supply Store today and enjoy these introductory offers through September 30, 2016:

  • $10 off your order of $50 or more (code: IBAT10)
  • $25 off your order of $100 or more (code: IBAT25)

Free shipping applies to all orders over $50.

Staff contact: Lori Cortez, lcortez@ibat.org, 512-275-2222

And the Winners Are...

The IBAT Education Foundation recently announced the recipients of its 2016 Teaching Excellence in Financial Literacy Award:

  • Gabriela Rocha from Sanborn Elementary School in Amarillo, nominated by Kim Woolsey of Happy State Bank;
  • Debra Humphrey from Grandview Elementary School in Grandview, nominated by Zach Stewart of Grandview Bank; and
  • Holly Johnson of Wellington High School in Wellington, nominated by Lynn Bartlett of Wellington State Bank.

This award seeks to recognize educators from across Texas who teach financial education in innovative, fun and engaging ways. Each teacher receives $1,000 as part of the recognition. The award program is now in its seventh year. Previous award winners help create the curriculum for the IBAT Teach the Teacher Program™ with the ultimate goal of providing students the foundation necessary to make sound financial decisions for the rest of their lives.

Congratulations to these three teachers who are truly making a difference in the lives of young Texans.

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

Disney Vacation

Have you ever considered taking your kids or grandkids on a Disney Cruise or park adventure, and then the thought passed, caught up in the blur of other activities? Well, pause no more. Thanks to the generosity of several member donors, IBAT has put together a two-week fundraising raffle that benefits the IBAT Education Foundation that begins next week. The grand prize is $5,000 for a 2017 Disney adventure of your choosing. Yep, you'll have time to make a plan. Plus, there are 5 additional prizes.

Individual chances will be available starting next week for $20, but you can buy more and save:

  • 7 chances for $100,
  • 40 chances for $500 or 
  • 100 chances for $1,000.

The winners will be drawn and announced during the IBAT Leadership Conference on June 24.

We invite all IBAT members to participate in this fun activity that serves a great cause. Be on the lookout next week for details on how you can participate in the IBAT Disney Adventure Raffle.

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