IBAT News

Bank Directors' Conference


The Bank CEO
Network will host the 10th Annual Community Bank Directors' Conference March 25-26, 2013 at
the Omni Mandalay Hotel at Las Colinas in Irving, TX.

Conference
topics will include the most current and pertinent issues happening in our
industry. For details, please see the full agenda.  You and your guests are invited
to attend the Singer/Songwriter Pickin' Party on Monday night,
March 25th.

We encourage
you to take a few minutes and register for the event online. There is a high probability
that the 2013 event will sell out.

Please
visit the Bank Directors' Conference website for any additional information.

Silver Alert


AFFECTED TEXAS
COUNTIES AND/OR NWS REGIONS:

NWS BROWNSVILLE

         

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

The LOS
FRESNOS POLICE DEPARTMENT is searching for ELIAS REYES, diagnosed
with Alzheimer's, WM, 74years old, DOB 02/02/1938, HEIGHT 5' 4", WEIGHT 130
lbs, BLACK/GRAY Hair, BROWN Eyes, CAST ON LEFT ARM, TATTOO ON RIGHT ARM OF
BOXER AND "LUPITA" ON RIGHT HAND.                                                                                      

The senior
citizen was last seen at 5:00 AM, 12/03/2012 at 304 W 8TH STREET,
LOS FRESNOS, TX.

Law
enforcement officials believe this senior citizen's disappearance poses a
credible threat to HIS/HER own health and safety.

If you have
any information regarding this missing senior citizen, contact the LOS FRESNOS
POLICE DEPARTMENT AT 956/233-4473.

News
Media Point of Contact is
LOS FRESNOS POLICE
DEPARTMENT AT 956/233-4473.

Abound Resources Survey


Abound Resources is conducting a survey of CEOS, Finance, Operations, IT and Compliance executives designed to identify priorities for the coming year, gather views on key industry issues and then share that information with the industry.  

We invite you to take just 3 to 5 minutes to complete the survey, which will close Friday, December 7th.

To access the CEO Survey, please click here.

To access the Finance, Operations, IT and Compliance executives Survey, please click here.

All survey participants will receive a copy of a white paper created by Abound Resources outlining the results of the study and registration to the "Insights into 2013" webinar in January where Abound will present the highlights of the survey.

For more information please contact Gordon Moore at gmoore@ibat.org, or 512-275-2245.

Teaching Excellence Award


The deadline
to submit your nominations for IBAT's Teaching Excellence in Financial Literacy award
has been extended to December 31, 2012. 

Teachers play a significant role in how students learn these basics. IBAT wants
to recognize teachers' importance in conveying the basics of a financial
education in an effective and fun manner. There is a prize - $1,000 cash award
to three individuals who will be recognized by IBAT and local community bankers
during ceremonies at their respective schools. 

To be
considered for this award, each teacher must be nominated by an IBAT member in
good standing. Nominees must answer the questions on the teacher application form. Some IBAT members are
working with local principals on this process.

If you would
like to nominate a teacher in your community who has tackled the important
topic of Financial Literacy this past year, please submit your nomination form along with a letter of support for
your nominee.

Nomination Deadline is December
31, 2012!

LegacyTexas Bank


With collection boxes over flowing
and staff volunteers ready to go to work, LegacyTexas Bank has taken on the
look of a bustling military shipping center. On Thursday, November 29th,
from 5:30 p.m. to 7:30 p.m., bank employees gathered to assemble and package
thousands of care items that have been donated to U. S. troops serving around
the world. The assembly took place on the third floor of the
bank's corporate offices at 5000 Legacy Drive in Plano.

The effort is all part of the
LegacyTexas Bank Salute to Troops, an annual collection and packing project
centered around Veterans Day.

About LegacyTexas Bank

LegacyTexas Bank is an independent
community bank with $1.6 billion in assets. 
In business since 1963, LegacyTexas Bank currently has 20 branches
throughout Tarrant, Collin, Dallas and Parker Counties. LegacyTexas Group is
the financial holding company for LegacyTexas Bank and also includes
LegacyTexas Insurance Services and LegacyTexas Title. For more information,
visit www.LegacyTexasBank.com.

ATM Lawsuit Dismissed


Two favorable rulings were handed down in November on cases involving Texas Community Banks facing allegations of ADA violations when one of their ATMs allegedly did not operate properly for a blind Plaintiff. Vendors specific to the Community Banking industry stepped up to defend these actions, in a great display of advocacy.  Experience has taught us that how these first cases are treated has a large impact on whether more are filed.  

The lawsuits were iniated by the same lawyers who vigorously pursued the EFTA “class actions” for lack of a second sign on your ATM. The rulings affect only two of the many cases that allege non-compliance against community banks nationwide.  

The legal background for these suits came from federal and state statutes, as well as regulations designed to remove architectural barriers for the disabled.  These statutes generally track Title III of the Americans with Disabilities Act [the “ADA”], which requires places of public accommodation, a term defined in the ADA to include banks, to provide disabled customers with reasonable and appropriate accommodations that enable them to partake of the bank’s services to the same extent as non-disabled customers because of their disability.

To implement the ADA, the Department of Justice established an advisory committee to create accessibility guidelines that became known as the ADA Accessibility Guidelines, usually referred to as ADAAG.  There are two comprehensive sets of these ADAAG, one issued in 2004 and another issued in 2010.  The 2010 Standards, which incorporate the 2004 standards and include provisions governing ATMs, became effective on March 15, 2012.  Under the ADAAGs, at least one ATM at every location must meet the specific requirements. The ADAAGs treat lobby ATMs and drive-up ATMs at the same facility as two different locations; therefore, say the Plaintiffs, machines at both locations must comply.  The issue will be particularly acute at drive-up ATMs, where it is more difficult to provide a reasonable alternative service.

The best way to avoid these problems is to make sure your ATMs are compliant; if they provide audible services for visually-impaired users, check the functionality from time to time to make sure it works.  The response for many banks has been to order new, compliant equipment.  However, some manufacturers were not able to deliver it prior to the effective date of the law, due to the high demand of last minute orders. 

Another avenue that's important in these matters is insurance.  To ensure that coverage is not lost because of late notice, submit the claim early!  Early reporting may also generate a dialogue with the insurer that leads to some additional support, just as occurred when IBAT Financial Services worked with insurers to secure coverage for the aforementioned EFTA suits as well as these ADA claims involving the ATMs.

In the case of the EFTA suits, Travelers was first to provide defense and Chubb followed suit, once prompted by IBAT Financial Services.  In the ATM claims, Chubb and Everest provided defense and potentially settlement through some broadening endorsements that may or may not have been part of each policyholder's coverage. Once prompted, Travelers followed suit with defense coverage in their standard policy form.  IBAT Financial Services has been very vigorous in advocating for the unique coverage needs of IBAT member community banks and in explaining to insurers how to meet those needs through practical changes to coverage that have helped IBAT members obtain coverage on an ongoing basis. 

Other vendors were also prompt to step up in assisting with these claims concerns, including Cox Smith Matthews who received favorable rulings this month that dismissed two cases due to lack of standing.  The court stated that since the Plaintiff lived between 7-20 miles from the ATMs in question; had never visited more than one ATM owned by each of the banks and was not a customer of either bank the ATMs in question were not the most "conveniently located" and therefore the precedent case relied upon by the Plaintiff did not persuade the Court that damages were incurred by the Plaintiff. 

Our sincere appreciation goes out to our service partners who continue to help IBAT serve the needs of our members and spring into action, as a true advocate of Texas Community Banks!

TAG Expiration


The FDIC issued a Financial Institution Letter (FIL-45-2012) entitled Notice of Expiration: Temporary Unlimited Coverage for Noninterest-Bearing Transaction Accounts on November 5, 2012.  The TAG program was designed to prevent excessive withdrawals and thus protect banks that did not fit the "too big to fail" model during the financial crisis.  The program provided unlimited deposit insurance to noninterest bearing transaction accounts (NIBTAs) while leaving coverage for other deposits held by the same person in the same ownership category at $250,000 in the aggregate.

After being extended three times, the TAG program will expire effective January 1, 2013 without Congressional action to extend the program.  ICBA, IBAT and other groups are working hard to extend this program, but there are no guarantees at this juncture. 

Without the program, non-interest-bearing transaction account balances held by the same person in the same ownership category will be aggregated with any other deposits and insured up to the standard maximum deposit insurance amount of $250,000.

In the FIL, the FDIC strongly encouraged banks to provide notice to NIBTA depositors of the expiration of unlimited deposit insurance.  Model language for both a separate written notice and a shorter notice for account statements was provided by the FDIC.  IBAT General Counsel Karen Neeley recommends banks use the model language for providing notice to noninterest bearing transaction accountholders impacted by the change.

Other action steps that should be taken include:

  • Remove the "Notice of Changes in Temporary FDIC Insurance Coverage for Transaction Accounts" signage on December 31, 2012;
  • Review deposit account agreements and new account packages for information about the TAG program and ensure the information accurately reflects the change in coverage as of January 1, 2013 (remove any reference to the TAG program);
  • Stress test the loss of TAG funds based upon several scenarios.  You will want to document the impact and how you will manage the potential outflows;
  • Encourage depositors who may be affected to contact their bank officer as soon as possible to explore ways to maximize insurance coverage.  Even better - proactively contact those customers who may be affected by this change.  Don't forget about using the FDIC's Electronic Deposit Insurance Estimator (EDIE) to help depositors understand levels of coverage; and
  • Use this event as an opportunity to train your staff and educate your depositors on the basics of FDIC Insurance.  There is a Deposit Insurance FAQ on the FDIC web site that provides very helpful information.

Happy Thanksgiving!


Despite the many challenges we face as an
industry and as a nation, we pause to give thanks this week for our many
blessings this Holiday Season... blessings of family, friends, country and
community, and the freedoms afforded to us by so many who serve or have served.

We give special thanks for the opportunity to work in such a good and honorable
profession; an industry that has withstood the test of time for over 200 years
and provides local communities and families with resources to enhance quality
of life and keep the hope and spirits of millions of citizens alive.

Your IBAT family of dedicated volunteers and staff thank you for your continued
support and wish you and yours a Happy Thanksgiving!

Please
note
that our offices will be closed from 12:00p.m. on Wednesday, November 21
until 8:00a.m. on Monday, November 26.

Capitol Comments

The
November 2012 edition of Capitol Comments is now
available on the IBAT website.

Articles
in this issue include:

  • Agencies
    delay regulatory capital rulemakings;
  • FDIC:
    TAG is done on December 31;
  • CFPB
    gives additional time for banks to provide certain new disclosures;
  • Video:
    CFPB Consumer Advisory Board meeting;
  • OCC
    guidance on stress tests of banks larger than $10 billion;
  • FDIC
    revised standards or creditworthiness for investment securities;
  • CFPB
    partners with companies who are "alternatives to traditional
    banks;"
  • OCC
    adjusting civil money penalties;
  • FHFA
    and CFPB develop National Mortgage Database;
  • FFIEC
    guidance for supervising technology service providers;
  • CFPB
    now accepting credit reporting complaints;
  • FinCEN
    advisory on filing SARs on Payment Processors;
  • OCC:
    Community bank stress testing;
  • CFPB:
    MLO's must provide details on disciplinary actions and convictions;
  • FFIEC:
    Impact of drought conditions on financial institutions;
  • CFPB:
    Annual report on student loans;
  • Paper
    check processing moves to Atlanta on December 31, 2012;
  • Fed
    Governor Elizabeth Duke speaks about community banks;
  • CFPB
    report on servicemembers' student loan debt;
  • Fed's
    2013 fee schedule;
  • Comptroller
    Curry speaks on risk management;
  • CFPB
    issues Supervisory Highlights: Fall 2012; and
  • CFPB
    proposes easier way for non-working spouse to get credit cards.

Amber Alert


THIS IS A CHILD
ABDUCTION ALERT ISSUED BY THE TEXAS AMBER ALERT NETWORK

THE TRINIITY
COUNTY SHERIFF'S OFFICE IS SEARCHING FOR SAVANNAH HURLEY, WHITE, FEMALE, 11
YEARS OLD, 06/27/2001, 4' 10", 120 LBS, BROWN HAIR, HAZEL EYES AND UNKNOWN
CLOTHING HAS SMALL GAP BETWEEN FRONT TEETH AND PIERCED EARS.

POLICE ARE
LOOKING FOR SHELLY JEAN HURLEY, WHITE, FEMALE, 46 YEARS OLD, 12/16/1965, 5'4",
110 LBS, BLONDE HAIR, BROWN EYES AND LAST SEEN WEARING BLUE JEANS, BROWN BELT,
MULTICOLOR SHIRT SHOWING MIDRIF, IN HER ABDUCTION.

THE SUSPECT, SHELLY JEAN HURLY, IS BELIEVED TO BE
DRIVING A MAROON 1996 SUBARU LEGACY STATION WAGON WITH ALABAMA LP#48738AZ.
THE SUSPECT WAS LAST HEARD FROM IN THE WOODLANDS, TEXAS.

LAW
ENFORCEMENT OFFICIALS BELIEVE THIS CHILD TO BE IN GRAVE OR IMMEDIATE DANGER.

IF YOU HAVE
ANY INFORMATION REGARDING THIS ABDUCTION, CALL THE TRINITY COUNTY SHERIFF'S
OFFICE.

NEWS MEDIA
POINT OF CONTACT IS
TRINITY
COUNTY SHERIFF'S OFFICE AT 936-642-1424.  END OF MESSAGE.

 

Kids' Christmas Card Contest


IBAT invites your children and
grandchildren to join in the holiday spirit by submitting an original color
drawing for the 2nd Annual IBAT Children's Christmas Card contest. The three
winning entries will receive a $250
gift card
.

This
year's contest theme is Holiday
Time in Texas
. Each young artist whose artwork is selected will
be featured on three card designs that we will send to our IBAT family and
friends this holiday season.

Click here for full entry rules.

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