SWGSB Millenium Scholarship

Each year the SW Graduate School of Banking Foundation offers bankers who are members of the Independent Bankers Association of Texas a $1,000 scholarship to the SW Graduate School of Banking at Southern Methodist University in Dallas, Texas.  The scholarship – called the “SWGSB Millennium Scholarship” – is applied toward the first-year (new students) tuition for the School.  “It is our way of giving back to the banking community that has so generously supported the SWGSB Foundation for five decades,” said S. Scott MacDonald, Ph.D., president and CEO of the SWGSB Foundation.

Those wishing to apply for the scholarship should submit their scholarship application to the Independent Bankers Association of Texas, which will make the final selection.  The scholarship must be used for the 2014 Session of the SW Graduate School of Banking, which will be held May 26 – June 6, 2014.  For more information on the SW Graduate School of Banking, please call (214) 768-2991, e-mail swgsb@swgsb.org, or visit the School’s web site.  The 2014 SWGSB brochure is now available online.

Visit our Banking Schools page for additional information about the SW Graduate School of Banking.

The Results Are In

As community bankers continue to consider the impact of new CFPB mortgage rules on their own lending practices, Washington policymakers are already pressing for a response to reports that credit availability is tightening.  

In an IBAT member survey last week, two-thirds (66.9%) of respondents reported that their lending practices will be affected by the rules.  Of more than 150 banks who have responded to the survey, 13% indicated that the rules have lead their bank to cease making residential mortgage loans. More than half (53%) indicated that they will limit the types of residential mortgage loans made.

In those areas in which banks plan to cease making mortgage loans, approximately one-fourth report that there is no other lender in their area that will fill the void.

Last week, American Banker reported on the disproportionate impact of the rules on sole proprietors and the feedback of IBAT members echoes this concern in particular.  In the current political environment, an immediate fix is unlikely. However, IBAT thanks all who participated in the survey and offered their feedback for us to pass along to members of Congress. Please continue to pass along your feedback on the impact of your rules to IBAT Deputy General Counsel Shannon Phillips.

Deluxe Exchange 2014

IBAT is pleased to support the Deluxe Exchange Conference 2014, February 10-12, 2014 at the Boca Resort & Club, a Waldorf Astoria Resort, in Boca Raton, Florida. Deluxe has extended their deadline for IBAT Member Banks to register at a discounted rate of $675 through January 31st so sign up now using IBAT’s registration code: IBSC14.

During this two-day conference you'll explore ways to drive revenue through the customer lifecycle while enhancing experience and managing cost, all in an intimate setting where you'll have direct access to peers and experts in the financial services industry. You'll hear from top analysts from firms such as Forrester, Javelin, AITE and Synergistics Research as well as a keynote address from Author and Journalist Malcolm Gladwell.

Please check out the Deluxe Exchange website for additional information or call me with your questions.

Last Call for Tour de Texas

IBAT Chairman Jay Gober, Commissioner Charles Cooper of the Texas Department of Banking and IBAT staff are busy preparing for the upcoming Regional Meetings (Tour de Texas), beginning next week. We will be traveling to 16 Texas cities in January and March to conduct briefings on our regulatory and legislative agenda.

Join us January 27-30 in:

  • Graham
  • Fort Worth
  • Amarillo
  • Lubbock
  • El Paso
  • San Angelo
  • Waco
  • San Antonio

We encourage you to take a few minutes and register for one or more of the meetings. This will be an opportunity for you to learn about our efforts and help us fine-tune our legislative agenda for 2014.

Click here for additional information and to register.

Week in Review: Jan. 17, 2014

Sometimes, trying to figure out all the economic news that is heaped upon us can be as dicey as trying to figure out who actually is the First Lady of France. Both endeavors involve more than a few mixed signals. We’ll leave Monsieur Hollande to work on his mixed signals; we’ve got enough of our own. And for the past week, our mix of mixed signals has mainly favored the positive, beginning with the National Federation of Independent Business Optimism Index. The survey of 800 small business owners pushed this measure to 93.9 from the prior month’s 92.5. Of particular note was the significant strengthening in the hiring outlook for these small businesses. On the heels of this cheery news came a Retail Sales release that included a .3% downward revision in November’s figures while showing a .2% increase in December. If one excludes autos, that figure registered a .7% jump for December. That mix sounds a little better.

Click here to read the full week in review.

Call for Nominations

Nominations are now being accepted for the Teaching Excellence in Financial Literacy Award.  The IBAT Education Foundation-hosted program recognizes elementary, middle and high school teachers who use innovative, fun and effective methods to teach financial education in the classrooms.

Three award recipients from across the state will be selected, and each will receive $1,000. Additionally, IBAT and local community bankers will recognize the winners during ceremonies at their schools. The goal of this award program is to celebrate teachers who provide their students with the foundation necessary - understanding savings and credit, how to budget and the importance of making informed decisions - to make sound financial decisions for the rest of their lives.

Bankers can nominate teachers from their area schools by downloading and completing the nominations packet.

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

New Regulations

As the new CFPB mortgage rules rolled out last week, IBAT began collecting data on community bank response to the rules via a short, five minute survey.  

"Over the last year, we've heard from a number of IBAT members who have said they'll be pulling back or ceasing to make mortgage loans in light of the new rules," IBAT President and CEO Chris Williston said. "While we've passed these anecdotes along to lawmakers and regulators, we have received requests for more data on the industry's response," he added. "The survey will provide us with the requested information."

The four questions in this survey will give those of you who make mortgage loans (and those who don't) an opportunity to express your opinions on how regulations have and will restrict credit on Main Street. All IBAT member banks are encouraged to complete the survey, regardless of whether or not your bank is currently engaged in residential mortgage lending.  The answers we receive from those of you who are not engaged in mortgage lending are as important as the answers from our mortgage lending members.

Additionally, as your bank continues to encounter various issues in adapting to the new mortgage rules, we encourage you to send specific information on your challenges to Shannon Phillips, IBAT Deputy General Counsel.

More than 90 IBAT members have already answered the survey.  One banker summed up the rules' effect on credit availability in simple terms - "what a nightmare."   Click here to complete the survey.


On its website last week, the CFPB called the Ability-to-Repay and Qualified Mortgage rule (ATR/QM rule) "a 'back-to-basics' approach to mortgage lending that will protect consumers from the debt trap of a mortgage they can't afford" and added that it is "a common-sense approach policy that responsible lenders have already been following for decades."  This comment seems to presume that the ATR/QM rule provides the exclusive method for responsible mortgage lending.  For generations, without an ATR/QM rule, Texas' community bankers have made the mortgages their customers wanted and could afford to repay. Texas' community bankers will continue to make mortgage loans their customers can afford; however, the ATR/QM rule may cause some to leave the market while forcing others to stop offering the loans their customers want.

The CFPB posted a number of items on its website in the past week, mostly geared toward mortgage consumers. We have compiled them below:

USA Today Op/Ed: New mortgage rules protect American dream.

The Texas Independent Banker

The January/February edition of the IBAT magazine, The Texas Independent Banker, is now online.  This opening issue of 2014 focuses on hot topics facing the banking industry, including:

Additionally, the issue includes IBAT's 2014 Education Calendar and a look ahead to TechMecca 2014.

Week in Review: January 10, 2014

For many folks across the country, the week’s biggest news was how frigid the weather has been. Well, not to be outdone by the polar vortex, the Bureau of Labor Statistics (BLS) released their first jobs report of the New Year this morning and it too, is a bit chilling. While the .3% drop in the Unemployment Rate (now 6.7%) might warm the hearts of some, the trifling addition of only 74k to Non-Farm Payrolls left many job seekers out in the cold. Last month’s number got better, though, as it was revised to 241k from 203k. Cold comfort for the 10.4 million people still unemployed. Also not encouraging was another .2% drop in the Labor Force Participation Rate to 62.8%. That’s a .8% drop for all of 2014. The Employment/Population ration was unchanged for the same period at... Read more in the Baker Market Update.

Winter Summit Early Bird Pricing

Time is running out for "early bird" pricing and guaranteed hotel accommodations for Winter Summit XIV, February 9-11 in South Lake Tahoe. January 13th is the cutoff date for both, after which registration rates will increase and room rates and availability cannot be guaranteed.

Join top Texas bank regulators, attorneys and your colleagues for a meaningful learning experience in a relaxed and beautiful setting. Registration and additional information can be accessed here.

Happy Anniversary!

IBAT would like to congratulate Dublin National Bank on 100 years for community banking in Texas.  Shannon Phillips, IBAT’s Deputy General Counsel, was on-hand during the celebration in December and presented the bank with a resolution on behalf of the IBAT Board of Directors. 

The bank, organized by John G. Harris, R. W. Higginbotham, Dr. T. Y. Lewis and H. A. Smith, was chartered in February of 1893 and remains in its original location - at the intersection of Patrick Street and Elm Street. It was the first bank in Erath County and fifteenth in the state. Turns out Dublin Ben Hogan is not the only famous thing to come out Dublin.

IBAT AM Success

NEW YORK, Oct. 31, 2013 /PRNewswire/ -- Newtek Business Services, Inc. (NASDAQ: NEWT) (www.thesba.com) The Small Business Authority®, today announced that its subsidiary, SBA-licensed 7(a) non-bank lender, Newtek Small Business Finance, Inc. ("NSBF"), has been selected to service a $400 million portfolio of SBA 7(a) loans for a large institutional client. The servicing has transferred and is currently part of Newtek's loan servicing portfolio.

Barry Sloane, Chairman, President and Chief Executive Officer of Newtek Business Services, Inc. said, "We are extremely pleased to announce that our total loan servicing portfolio has exceeded $1.0 billion, a level that not only represents a milestone in the Company's operating history, but also exceeds our previously stated expectation, of at least $700 million for 2013, by a meaningful margin.  Our ability to add this $400 million in loan servicing further demonstrates our industry-recognized expertise as a Standard and Poor's select-rated small-balance commercial loan servicer.  We expect to continue to grow the loan servicing aspect of our business across all 50 states through a combination of organic growth in loan origination volume and through the disciplined acquisition of third-party loan servicing opportunities.  As such, during our third quarter 2013 financial results conference call on November 6, 2013, we look forward to updating our servicing portfolio guidance for 2013, based on the recent addition of $400 million in loan servicing, as well as issuing new guidance for 2014 regarding our loan servicing portfolio."

About Newtek Business Services, Inc.

Newtek Business Services, Inc., The Small Business Authority®, is a direct distributor of a wide range of business services and financial products to the small- and medium-sized business market under the Newtek® brand. Since 1999, Newtek has helped small- and medium-sized business owners realize their potential by providing them with the essential tools needed to manage and grow their businesses and to compete effectively in today's marketplace. Newtek provides one or more of its services to over 100,000 business accounts and has positioned the Newtek® and The Small Business Authority brands as a one-stop-shop provider of such business services. According to the U.S. Small Business Administration, there are over 27.5 million small businesses in the United States, which in total represent 99.7% of all employer firms.

Newtek Business Services, The Small Business Authority ®, provides the following products and services:

  • The Newtek Advantage™: A mobile real-time SMB management platform that puts all of a business's critical transactions and economic, eCommerce and web site traffic data on a smartphone, tablet, laptop or PC. The Newtek Advantage™ provides the intelligence that businesses require and will give them the advantage to succeed.  This revolutionary platform will allow owners and operators of small- and medium-sized businesses to manage their businesses from their mobile device anywhere, anytime, all without an IT department.
  • Electronic Payment Processing: eCommerce, electronic solutions to accept non-cash payments, including credit and debit cards, check conversion, remote deposit capture, ACH processing, and electronic gift and loyalty card programs.
  • Web Hosting:  Full-service web host which offers eCommerce solutions, shared and dedicated web hosting and related services including domain registration and online shopping cart tools.
  • eCommerceA suite of services that enable small businesses to get up and running on-line quickly and cost effectively, with integrated web design, payment processing and shopping cart services.
  • Business Lending: A broad array of lending products.
  • Insurance Services: Commercial and personal lines of insurance, including health and employee benefits in all 50 states, working with over 40 insurance carriers.
  • Web Services: Customized web design and development services.
  • Data Backup, Storage and Retrieval: Fast, secure, off-site data backup, storage and retrieval designed to meet the specific regulatory and compliance needs of any business.
  • Accounts Receivable Financing: Receivable purchasing and financing services.
  • Payroll: Complete payroll management and processing services. 

The Small Business Authority® is a registered trade mark of Newtek Business Services, Inc., and neither are a part of or endorsed by the U.S. Small Business Administration.

Note Regarding Forward-Looking Statements

Statements in this press release including statements regarding Newtek's beliefs, expectations, intentions or strategies for the future, may be "forward-looking statements" under the Private Securities Litigation Reform Act of 1995.  All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the plans, intentions and expectations reflected in or suggested by the forward-looking statements. Such risks and uncertainties include, among others, intensified competition, operating problems and their impact on revenues and profit margins, anticipated future business strategies and financial performance, anticipated future number of customers, business prospects, legislative developments and similar matters.  Risk factors, cautionary statements and other conditions which could cause Newtek's actual results to differ from management's current expectations are contained in Newtek's filings with the Securities and Exchange Commission and available through http://www.sec.gov.

For more information, please visit www.thesba.com.

Newtek Business Services, Inc.
Barry Sloane
Chairman and CEO