IBAT News

Flag Display


As a mark of respect for the victims of the senseless acts of violence
perpetrated on August 5, 2012, in Oak Creek, Wisconsin, 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, August 10, 2012. 
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.

The following flag(s) have been
directed to be flown at Half-Staff, or a Flag action has been requested:

  • United States Flag
  • State Flag  
  • Agency Flag  
  • Other Flag action

IN WITNESS WHEREOF, I have hereunto set my hand this sixth day of August,
in the year of our Lord two thousand twelve, and of the Independence of the
United States of America the two hundred and thirty-seventh.

BARACK OBAMA

Hensarling on Dodd-Frank


Last
week, Congressman Jeb Hensarling "celebrated" the two year
anniversary of Dodd-Frank via a Wall Street Journal
op/ed
, in which he characterized the bill as the "most confusing,
complex and harmful our capital markets have ever seen."

The
Congressman was front and center during debate on the bill, and shared IBAT's
position that it should not pass into law.  We encourage you to read this
piece, and appreciate Congressman Hensarling's continued efforts in this and
other areas of importance.

The Fiscal Cliff


As
the 112th Congress hobbles towards recess in anticipation of the November
general election, there seems to be little political will to steer the nation
away from the "fiscal cliff" by extending tax cuts first passed
during the Bush administration.  Both the Republican-controlled House and
Democrat-led Senate have passed their own tax bills.  

While much has been made of the political implications of the Congressional
game of chicken being played with the extension of the tax cuts, the actual
impact on the United States economy is now more clear, thanks to a study commissioned by ICBA, NFIB, the S
Corporation Association and the U.S. Chamber of Commerce.  

In
short, a tax increase on individuals making more than $250,000 will likely
translate into a loss of approximately 700,000 American jobs, including 56,000
in Texas.  The impact on Texas is second only to California, which is
expected to lose more than 76,000.  

IBAT
is particularly concerned for the 273 Texas financial institutions organized as
S-corporations, who would see a tremendous increase in their effective tax
rates.  Not only are individual bank shareholders likely to have their tax
rate increased to 36% or 39%, but dividends issued by the banks to cover the
shareholders' tax liability will be taxed at approximately 44% as part of the
"pay for" included in the Obama healthcare initiative.  

For
all of these reasons, IBAT has joined 120+ other organizations in urging House and Senate leaders to make the full extension of tax
cuts a priority.  

Diebold Supports Bank Expansion


Date(s): 2-Aug-2012 11:00 AM

Deposit and teller
automation technologies to provide convenience, efficiency for Austin-area
branches

Diebold delivers
advanced automation equipment and project design servicesto support Pioneer
Bank's expansion in the Austin, Texas area.

NORTH CANTON, Ohio, Aug.
2, 2012 /PRNewswire/ -- Diebold, Incorporated (NYSE: DBD) is
helping Pioneer Bank expand its presence in the Austin,
Texas, region by delivering advanced self-service and branch equipment,
as well as project design expertise. Based in Dripping
Springs, Texas, Pioneer Bank will soon open its first full service
branch in Austin. The bank turned to Diebold to
support this growth initiative, recognizing the company as a reliable solutions
provider.

At Pioneer Bank's newest branch in central Austin,
Diebold is installing an Opteva®
automated teller machine
(ATM) with full deposit
automation capabilities
. In addition, Diebold is providing
project assistance for a redesign of the bank's San
Marcos branch. Diebold will also provide additional solutions for the
bank's future branches.

Pioneer Bank chose Diebold based on a recommendation by the Independent
Bankers Association of Texas (IBAT). The IBAT
board of directors has endorsed several Diebold products and services,
including the company's Opteva ATMs, branch and drive-up equipment. Diebold
also received a 2012 IBAT Five*Star Award for providing service excellence and
innovative solutions to community banks.

"In addition to new locations, our expansion includes adding new
technologies that make the banking experience better and more convenient for
our customers," said Jeff Wilkinson,
president and chief executive officer, Pioneer Bank. "Diebold promises to
deliver the advanced solutions we need, which is why our new Austin branch features our first Diebold equipment. We
plan to outfit our new and existing branches with additional solutions from the
company."

The Austin branch's Opteva 750 ATM allows customers to make convenient,
envelope-free deposits. The deposit automation-enabled ATM features an enhanced
note acceptor
and a bulk document intelligent
depository moduleTM
to facilitate rapid self-service cash and check
deposits.

As part of Pioneer Bank's San Marcos branch
redesign, Diebold's product
application services (PAS) group
is providing design consultation and
architectural renderings. The group is assisting with the full branch design,
including the drive-thru area layout and placement of equipment and ATMs. PAS
offers a wide range of custom services, solutions and installation drawings to
support any design project.

"From our design services to our advanced technologies, Diebold is
honored to be a new trusted solutions and services provider for Pioneer
Bank," said Mychal D. Kempt, vice president,
North American sales and service operations, Diebold. "We are very excited
about the number of opportunities we are engaged with in North America around branch transformation.  Our
solution set and breadth of experience in the branch is expected and well
received in the marketplace."

About Pioneer Bank

From humble Texas beginnings, Pioneer Bank
has built a true community bank by putting customers first, listening to their
needs and providing them with high-quality financial services. Having built its
business from a mobile structure in Dripping Springs,
Texas, Pioneer Bank now has the largest share of deposits in Dripping Springs, and is serving all of Central Texas with new locations coming soon in Austin and San Marcos.
Further, as the result of its pending acquisition of Colorado Valley Bank,
Pioneer Bank will soon add locations in La Grange
and Weimar, Texas. For more information, visit http://www.pioneerbanktexas.com.

About Diebold

Diebold, Incorporated is a global leader in providing integrated
self-service delivery and security systems and services. Diebold employs more
than 16,000 associates with representation in nearly 90 countries worldwide and
is headquartered in the Canton, Ohio region, USA. Diebold is publicly traded on the New York Stock
Exchange under the symbol 'DBD.' For more information, visit the company's
website at www.diebold.com or
follow the company on Twitter: http://twitter.com/diebold_inc.

SOURCE Diebold, Incorporated

For a complete listing of our news releases, please click
here.

Media Relations, Kelly Piero, +1-330-490-3741, kelly.piero@diebold.com, or Investor
Relations, John Kristoff, +1-330-490-5900, john.kristoff@diebold.com

Tax Cut Letter


IBAT
joined a very diverse group of primarily national trade associations in a letter to the
United States Senate, urging a one year extension of all of the expiring tax
cuts, and urging the expedited consideration of comprehensive tax reform early
in the next Congress.

"Uncertainty regarding future tax rates is having a serious effect on
investment, hiring and expansion decisions by the drivers of economic vitality
and job creation - small business entrepreneurs," said Chris Williston,
President and CEO of IBAT.  "The 'fiscal cliff' is a looming
disaster, and over the near term, Congress must seriously deal with both the
revenue and spending sides of our nation's budget.  'Kicking the can down
the road' is not a solution."

Primaries Over – Finally


In what has been a much longer and more tedious primary
season than normal due to redistricting litigation, we thankfully reached a
conclusion last week with the runoff elections on Tuesday.  Your IBAT
political action committees participated in a number of these races, and what
follows is a brief "scorecard" on the results in those races:

  • Statewide -  You are no doubt aware that Ted Cruz
    defeated Lt. Governor David Dewhurst for the Republican nomination to succeed
    Senator Kay Bailey Hutchison.  Dewhurst was supported by the IBAT
    FedPAC.  Additionally, Supreme Court Justice David Medina, another
    recipient of IBAT PAC funds, lost in his re-election bid to Judge John Devine.
  • Congress -  The IBAT FedPAC contributed funds in three
    races, and each of the candidates won - Randy Weber (R - Surfside), Roger
    Williams (R - Weatherford) and Filemon Vela (D - Brownsville).
  • Texas Senate - The IBAT PAC contributed to incumbent
    Republican Senator Jeff Wentworth of San Antonio, who was soundly defeated by
    Dr. Donna Campbell of New Braunfels.
  • Texas House of Representatives -  Three incumbents
    supported by the IBAT PAC lost their seats in the Texas House.  Chuck
    Hopson (R - Jacksonville) was defeated by Nacogdoches attorney Travis Clardy in
    a close contest.  Sid Miller (R - Stephenville) lost to J.D. Sheffield of
    Gatesville, and Jim Landtroop (R - Plainview) was defeated by Ken King of
    Canadian.  Additionally, we supported Jamaal Smith, a former legislative
    staffer from Houston, who was defeated by Gene Wu in a Democratic
    contest. 

Winners supported by the IBAT PAC included Greg Bonnen (R -
Friendswood), J.M. Lozano (R - Kingsville) and Bennett Ratliff (R - Dallas).

Your government relations staff is
busy meeting with many of the newly elected candidates, and will continue this
process through the end of the year.  If you have a close relationship
with one of these individuals, please contact Mae Beth
Palone

We very much appreciate the involvement of the membership in
the political process, and urge you to get to know your new officeholders (if
applicable) in your area.  And, please don't forget the PAC Auction at our annual Convention on October 8.  Further information and contribution
forms are available on our website. 

Silver Alert: Leroy Collins


AFFECTED TEXAS COUNTIES AND/OR NWS REGIONS:

Houston,
Fort Worth, Corpus Christi, Austin/San Antonio, Shreveport, LA and Lake
Charles, LA

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

The Houston Police Department is searching for Leroy Collins, diagnosed
with Dementia, Black,
Male, 71 years old, DOB 01/24/1941
,
HEIGHT 5' 11", WEIGHT
150 lbs, Gray and White Afro Hair, Brown Eyes, and a beard
last seen wearing a blue baseball hat, a striped pullover shirt, and white
slacks.             

The senior
citizen was last seen at 11:00PM, 08/02/2012 at 9603
Homestead, Houston, Texas, driving a Red,
1993, Chevrolet, Suburban with TX License Plate
AD57386.

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 Houston Police Department at 713-731-5335.

News Media
Point of Contact is
Houston Police Department at
713-731-5335.

Win Your Dream Vacation!


The
2012 Dream Vacation tickets have arrived.  Each ticket is $10 and you have
the opportunity to win $5,000 toward your Dream Vacation!

We'd
like to thank our sponsors for making this event possible:

  • Bank
    of the West, Grapevine
  • HCSB,
    Kerrville
  • Independent
    Bank, McKinney
  • TIB-The
    Independent BankersBank, Dallas
  • ValueBank
    Texas, Corpus Christi

Dream
Vacation ticket sales benefit the IBAT PAC, so get your order in today!
Remember, due to state ethics laws, we can accept only personal checks and
personal credit cards.  Contributions are voluntary.

To order your tickets, call IBAT and ask for Patty or download the order form here.

The Fiscal Cliff


As the 112th Congress
hobbles towards recess in anticipation of the November general election, there
seems to be little political will to steer the nation away from the "fiscal
cliff" by extending tax cuts first passed during the Bush administration. 
Both the Republican-controlled House and Democrat-led
Senate have passed their own tax bills.  The House bill proposed extending
cuts across all brackets while the Senate bill followed the path advocated by
President Obama, excluding extension for individuals making more than $250,000
a year.  Neither bill is expected to find its way to the President's
desk. 

While much has been made of the political implications of
the Congressional game of chicken being played with the extension of the tax
cuts, the actual impact on the United States economy is now more clear, thanks
to a study
commissioned by ICBA, NFIB, the S Corporation Association and the U.S. Chamber
of Commerce. 

In short, a tax increase on individuals making more than
$250,000 will likely translate into a loss of approximately 700,000 American
jobs, including 56,000 in Texas.  The impact on Texas is second only to
California, which is expected to lose more than 76,000. 

The major source of job loss, according to the study, will
come from flow-through businesses like S-corporations, partnerships, LLCs and
sole proprietorships, which realize the tax liability of their company's
profits and losses on individual shareholder tax returns.  The study notes
that these businesses employ 54% of private sector American workers and pay 44%
of federal business income taxes. 

In an election season characterized by rhetoric about
economic "fairness," it is clear from the ICBA-backed study that raising taxes on
the highest earners ultimately results in loss of middle class jobs, including
jobs in manufacturing companies, 81% of which are flow-through
businesses. 

IBAT is particularly concerned for the 273 Texas financial
institutions organized as S-corporations, who would see a tremendous increase
in their effective tax rates.  Not only are individual bank shareholders
likely to have their tax rate increased to 36% or 39%, but dividends issued by
the banks to cover the shareholders' tax liability will be taxed at
approximately 44% as part of the "pay for" included in the Obama healthcare
initiative. 

For all of these reasons, IBAT has joined 120+ other
organizations in urging House
and Senate
(link needed) leaders to make the full extension of tax cuts a priority. 

Lending Compliance Summit

After months of testing "plain language" mortgage disclosures
with consumers, the Consumer Financial Protection Bureau proposed sweeping
changes to the RESPA and TILA disclosures.  At the Lending Compliance
Summit, August 15-16, Karen Neeley will take the 1099 page proposal, among
other difficult compliance issues, and distill them down into a brief,
understandable presentation. Although the disclosures are not final, Karen
expects the final disclosures to closely resemble those the CFPB proposed. The
rules will probably not be in effect until January 2013.  However, the
changes are so sweeping that banks simply must begin preparation for the
changes as soon as possible to assure that the right systems will be in place.

To learn more about the Lending Compliance Summitt, or to register, click here

Last Chance to Vote!


Last
reminder, last chance.  Today is election day.  The turnout will be
remarkably low, making your vote even more important.  If you've already
voted, thank you. If you haven't, you have until 7:00 this evening to do
so. Polling locations can be found here. A recap of candidates supported by the
IBAT PACs was provided in a prior edition of The Bottom Line.  

Your involvement in the political process is important and appreciated.

Baker Market Update


[Last]
Monday's bond rally that saw Ten Year Treasury Notes trade as low as 1.39%
shows that blistering temperatures and withering droughts are not the only
things setting records this summer. While the American corn crop may be dying
on the vine... well, stalk, that's still not as bad as the news out of Europe.
At [last] week's outset, market participants were greeted with renewed and
heightened fears about Greece's solvency along with renewed and heightened
fears about the efficacy of the planned bailout of Spanish banks. With those
circumstances adding to the renewed and heightened fears about a possible
crumbling of E.U. unity, that adds up to a lot of scared money looking for a safe
place to hide. The United States wasn't the only refuge from risk as record low
yields were also seen in Germany, the United Kingdom, and of course, Norway.

In an early morning release [Friday], the first estimate of Q2 GDP came in
slightly to the upside of expectations at a 1.5% quarterly growth rate. Along
with that, the Q1 growth rate was revised up slightly to 2.0% from the
previously announced 1.9%... Read more in the Baker Market Update.

Non-Resident Alien Deposits


Last
Thursday, the U.S. House of Representatives passed a bill that included an
amendment to block a recent IRS rule requiring the reporting of interest on
non-resident alien deposits.  The measure was in the form of an amendment
on a bill to bar federal agencies from issuing "significant" new
regulations until the unemployment rate falls below 6%.   

"Sadly, the NRA language and the bill itself is largely a symbolic
gesture," said Steve Scurlock, IBAT Executive Vice President.
 "The Senate reportedly has no plans to bring this bill up, as such
would point out that the IRS rule is unnecessary and misguided and will have a
deleterious impact on a number of community banks, the fragile economic
recovery and citizens of other countries seeking a safe haven for their
deposits.  Further, we are supportive of any measures to require federal
agencies to 'take a breather' from the avalanche of new rules and regulations,
and applaud the House of Representatives for their initiatives in this
area."

IBAT would like to express our sincere thanks to Texas Congressmen Ruben
Hinojosa, Quico Canseco and Henry Cuellar for their leadership role on the NRA
issue.  Congressman Hinojosa was one of three members of Congress to sign
the "Dear Colleague
Letter"
urging support of this amendment.  

Baker Market Update


With
much of America in mid-summer vacation mode [last] week, Fed Chairman
Ben Bernanke chose to spend part of his seasonal break at Washington
D.C.'s iconic theme park known as Capitol Hill. Never one to leave work
at the office, Mr. Bernanke commiserated with park employees about the
recent, disappointing slow-down in the pace of the current economic
recovery and the prospect for even less robust growth throughout the
remainder of the year. Other discussions centered around the possible
opening at year-end of the park's newest thrill ride known as "The
Fiscal Cliff." While much excitement has been generated by this new
ride's potential, park officials have not been very forthcoming on what
the possible features of this new attraction might be. Mr. Bernanke also
visited with other park personnel about possibly reopening
"Quantitative Easing", one of Ben's favorite rides. Even though he was
out of the office, the Chairman's comments still had the effect of
keeping yields on the Ten Year Treasury note pretty much at or below
1.50% for most of the week.

Despite
the vacation festivity, the week started off on a bit of a sour note
when, on Monday, Retail Sales recorded an unexpected 0.5% decline... Read more in the Baker Market Update.

Visa/MasterCard Settlement


"Friday's
settlement between Visa and MasterCard and retailers will likely have an
unfortunate impact on consumers and their buying behavior," said Chris
Williston, IBAT's President and CEO.  

The
settlement, which will now permit retailers to begin imposing a surcharge, or
"retailer checkout fee" each time a customer chooses to pay with a
credit card at the point of purchase, ends a seven year long class action suit
brought by large retailers.  Some retailers have already vowed that they
will ask Congress to intervene and establish artificial interchange price
controls on credit card transactions much like they successfully advocated on
debit card interchange with the infamous "Durbin amendment" to the
Dodd-Frank Act.

"IBAT
will strongly oppose any such efforts and Congress should reject further
government price controls in a system that has benefited all parties,"
Williston said.  Many payment industry analysts have predicted that the
settlement will ultimately raise costs for consumers who have relied on credit
card purchases as a convenient and secure method of payment without the imposition
of added interchange fees.

Vietnam Veterans Memorial


The long effort to build a monument at the Texas Capitol honoring hundreds
of thousands of Texans who served in the Vietnam War is finally on the way to
reality.  Work on the 14-foot bronze sculpture has begun at the Deep in the Heart Art
Foundry
in Bastrop, Texas.

The Texas Capitol Vietnam Veterans Monument project was approved by the Texas Legislature in
2005 by legislation co-sponsored by Vietnam veterans Senator Juan “Chuy”
Hinojosa and Representative Wayne Smith.  Earlier this year, IBAT put out
a call to Texas community bankers to help put the project over the top in
raising matching funds to begin work on the project.

“Thanks to the support of Texas individuals, veteran organizations, foundations,
and corporations, and with a $500,000 matching grant from the Texas Historical
Commission, we have now reached 80% of our fundraising goal,” said Robert
Floyd, chair of the committee that raised funds for the monument.  “We are
absolutely delighted to announce that production of the Texas Capitol Vietnam
Veterans Monument has begun.”

The 14-foot bronze sculpture
by artist Duke Sundt
features five infantry figures poised in patrol positions.  On the base
surrounding the fighting unit are bas relief panels depicting naval, artillery,
medical and aviation services that supported the combat patrol.  The 3,415
Texans killed in Vietnam will be remembered by “dog tags” personalized with
each man’s name, military service, hometown and date of loss.  The 3,415 tags will be entombed inside the
monument.

The Texas Capitol Vietnam Veterans Monument will be installed on the
northeast side of the Capitol grounds.  Dedication is tentatively
scheduled to occur in the fall of 2013.

The monument is accompanied by an online “Living Monument” featuring
profiles of Texans who served in the Vietnam War to extend the monument’s
educational reach.

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