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,
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!
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.
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!
note that our offices will be closed from 12:00p.m. on Wednesday, November 21
until 8:00a.m. on Monday, November 26.
November 2012 edition of Capitol Comments is now
available on the IBAT website.
in this issue include:
delay regulatory capital rulemakings;
TAG is done on December 31;
gives additional time for banks to provide certain new disclosures;
CFPB Consumer Advisory Board meeting;
guidance on stress tests of banks larger than $10 billion;
revised standards or creditworthiness for investment securities;
partners with companies who are "alternatives to traditional
adjusting civil money penalties;
and CFPB develop National Mortgage Database;
guidance for supervising technology service providers;
now accepting credit reporting complaints;
advisory on filing SARs on Payment Processors;
Community bank stress testing;
MLO's must provide details on disciplinary actions and convictions;
Impact of drought conditions on financial institutions;
Annual report on student loans;
check processing moves to Atlanta on December 31, 2012;
Governor Elizabeth Duke speaks about community banks;
report on servicemembers' student loan debt;
2013 fee schedule;
Curry speaks on risk management;
issues Supervisory Highlights: Fall 2012; and
proposes easier way for non-working spouse to get credit cards.
THIS IS A CHILD
ABDUCTION ALERT ISSUED BY THE TEXAS AMBER ALERT NETWORK
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.
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.
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
POINT OF CONTACT IS TRINITY
COUNTY SHERIFF'S OFFICE AT 936-642-1424. END OF MESSAGE.
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
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.
PARK, Texas, November 6, 2012 - Innovation. Imagination. Integration. IBT,
a leading innovator of best of breed solutions of cost effective, enterprise
wide technology for financial institutions, today announced
that Roscoe State Bank
has selected to incorporate additional services into an already expansive
relationship with IBT.
Roscoe is utilizing IBT's comprehensive suite of products that includes Core
processing, Image Teller, and a host of other products within IBT's robust
suite. Roscoe State Bank extensively researched other organizations for over a
year before decidedly signing with IBT and adding new integrated channel
services such as internet banking with real-time alerts and bill pay.
began our relationship with IBT in 2009 after they acquired the core and
WinTeller division from Goldleaf and quickly began to expand from there. IBT,
just like our Bank, is growing as a company and is always looking for ways to
improve. They've done a great job with expanding their product line delivering
a state of the art integrated technology platform for the bank," stated Jared
Monday, Assistant VP & IT Officer.
decision point finally came down to the fact that, as a customer focused bank,
we felt more comfortable with an innovative organization where we can call the
owner on his cell phone to discuss and resolve any issue. For us, IBT's
willingness to expand and move quickly to improve their products helps us keep
up with the market's technology demands. We spent almost two years analyzing
options and we have never regretted our decision to choose IBT," said Mark Sheffield, Executive Vice President.
excellence and personal relationships with our customers is at the heart of
what we refer to as the IBT Difference." said President Mike Golebiowski,
About Roscoe State Bank
For over a century, the Roscoe State
Bank has remained an independently owned community bank providing the highest
level of customer service. Founded in 1906 in Roscoe, Texas, they have
enjoyed significant growth driven by their unique culture and marketing
strategy as evidenced by an average ANNUAL growth rate of over 15% since 2004.
They believe in convenience banking and working harder than the competition.
For more information, visit: www.roscoestatebank.com
in Cedar Park, Texas, IBT specializes in providing complete enterprise
automation for financial institutions with products such as core processing,
Check 21 proof automation, mobile banking, internet banking, document imaging
and Personal Financial Management applications complete with 24/7 support
services. The company focus is to push the innovation envelope to improve
process and deliver reliable real time information across all delivery
channels. The IBT suite of products delivers robust functionality and
flexibility with product creation making the cost of ownership affordable while
dramatically improving customer experience.
Discover "The IBT
Difference", Privately Held, Personal
Relationships and Total Commitment to our customers.
more information, visit www.IBTapps.com