Fun Fact Friday

Money can't buy happiness, but how much would it take to
make you feel successful?

A recent
survey conducted by CareerBuilder
found that the answer for most Americans
might be less than you'd think.  According to the survey, "the vast
majority of U.S. workers - 75 percent - don't feel that they need to earn six
figures in order to be successful."

Twenty-eight percent of respondents said that a salary of
$50,000 to $70,000 a year would give them a feeling of success.  Twenty
three percent put the number at less than $50,000.  Only one in ten said
that it would take $150,000 or more.

Men were twice as likely than women to say it would take six-figures
for them to feel successful.   

TAG Extension

just over six months to go until the December 31 expiration of full FDIC
coverage for non-interest-bearing transaction accounts, IBAT is stepping up the
efforts to gain support for five year extension of the program.  First
crafted by the FDIC in October 2008, the Transaction Account Guarantee (TAG)
program was meant to stabilize the banking system and protect depositors.
 In 2010, Congress, with bi-partisan support, modified and extended the
coverage for two years.  

full coverage of these deposits provides a counter-balance to Congress'
failure to end the implied "too big to fail" de facto protection of
deposits at the largest American banks, providing small businesses with
confidence to keep their transaction accounts with community banks.  

has drafted letters to the Texas Congressional delegation
urging their support on this issue and is currently distributing a letter to the editors of Texas newspapers to raise
awareness of this issue among the small business community.

Silver Alert


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


The Harris County Sheriff's Office is searching for Alberto
M. Montalvo, diagnosed with Dementia,
white male, 88 years old, DOB 10/10/1923, 5' 6", 193 lbs, gray Hair, brown Eyes,
wearing a beige polo shirt over a white t-shirt, blue
jeans, and brown loafers.  He has a scar on his face and bruises on his

The senior
citizen was last seen at 9:00 am, 6/20/12 at 7866 Battleoak
Drive, Houston, TX, driving a white, 2000
Chevy Silverado with TX License Plate 29MXP5.

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 Harris County Sheriff's Office at 713-755-7427.

News Media
Point of Contact is

Harris County Sheriff's Office at 713-755-7427.

Charles Cooper

Banking Commissioner Charles Cooper was elected Treasurer of the Conference of
State Bank Supervisors (CSBS), the Washington-based organization representing
the state banking departments across the country. Cooper has previously served
on the CSBS Board of Directors, and most recently was Chairman of the
Legislative Committee.

extends our sincere congratulations for this well-deserved honor, and
appreciates the Commissioner's willingness to take a leadership role in this
important organization and in the future of community banking.

Crop Insurance


the Senate continues debate on the 2012 farm bill this week, the bill faces
approximately 100 amendments, several of which could harm community banks by
reducing crop insurance participation and funding. There is also a troubling
amendment to limit farmers' access to USDA guaranteed farm real estate loans
through the use of term limits.  

proposals would likely have several negative unintended consequences for ag
bankers and their farm customers. Making crop insurance protection
unaffordable, particularly for those who pay the most in overall premiums,
would cause producers to reduce participation, resulting in a higher risk pool
of insured producers, higher loss ratios over time, and increased premium rates
for those that remain in the program.

ICBA has prepared talking points on this issue.  We urge you to
review the talking points and consider calling Senator
Hutchison at 202-224-5922 and Senator Cornyn at 202-224-2934 to voice your
opposition to the onerous amendments to the farm bill.

Basel III Regulation

week, IBAT received numerous phone calls and emails from Texas community
bankers in response to the announcement of the Federal Reserve Board's proposed
rule: Regulatory Capital Rules: Regulatory Capital,
Implementation of Basel III, Minimum Regulatory Capital Ratios, Capital
Adequacy, Transition Provisions, and Prompt Corrective Action
members have expressed concern primarily over the treatment of trust preferred
securities and other non-qualifying capital instruments which would be phased
out of capital regardless of the asset size of the issuer.

is in the process of researching this provision, in addition to the proposal to
recognize unrealized gains and losses on all available-for-sale securities in
Tier 1 Capital.  Further, we will be meeting with senior regulatory
officials in mid-July to discuss the community bank concerns relative to the
proposed rule, continuing our history of involvement on this developing issue.

official comment letter is in the works and will be available to you well in
advance of the September 7, 2012 deadline assigned by the Federal Reserve. We
will obviously strongly encourage you to comment on what we believe to be yet
another example of unnecessary regulatory burden on the community banking

2012 LD Executive Committee

During the recent IBAT Leadership Conference,
Brandon Bartek of Mills County State Bank in Early was elected Chairman of the
IBAT Leadership Division. Other officers elected include Kevin Monk of Alliance
Bank in Sulphur Springs, Chairman-Elect; Michael Moores of Citizens National
Bank in Henderson, Vice Chairman; and Mark Sheffield of Roscoe State Bank in
Bastrop as Secretary-Treasurer.   Angie Brown of First National Bank
in Giddings will serve as Immediate Past Chairman.

Zach Dean of
Fort Davis State Bank was elected to the Leadership Division Board of

directors include Lawson Allen, Jason Brummerhop, Anita Collins, Kirk Hudson,
Michael Marshall, John G. "Butch" Northcut and Gary Wells.

A sampling
of photos from the 2012 Leadership Conference is now
online, with more to come over the next several days.  

 Members of the IBAT Leadership Division Executive Committee (back, left
to right) Michael Moores, Mark Sheffield, Kevin Monk, (front, left to right)
Brandon Bartek, Angie Brown and retiring LD Board Member Gary Wells.

Making a Difference Award

is looking for that one person in your bank that goes above and beyond the call
of duty - the person who everyone looks to for ideas or assistance, whose
attitude inspires others to do more, or whose service to the community sets an
example for others. 

you know someone who fits this profile, please consider nominating him/her for IBAT's
Making A Difference Award.
  Nominations are now open for the 2012
award and will be accepted until Monday, June 18, 2012.  Award recipients will be selected by an outside panel of
judges and will be honored during the IBAT Annual Convention, October 6-9, at the Hilton Austin Hotel.
All nominees will be included in the IBAT magazine and on the IBAT website.

If you're interested in nominating one of your co-workers, please click
for full contest rules and entry guidelines.

"Mobile Wallet"

The "mobile wallet" has been a much talked about concept
over the last several years, with little result for most consumers.  In
2011, Google rolled out its mobile wallet app on select devices, but the launch
was marred by a security breach and low adoption.  While Google's missteps
appeased the naysayers, the real test for mobile wallet technology has always
rested at the feet of Apple and its history of influencing consumer behavior
and expectations.

Last week, Apple took the first steps towards a full mobile
wallet solution with Passbook, a new native app announced for the forthcoming
iPhone software update.  At launch, Passbook will allow consumers to add
their gift cards, boarding passes, movie tickets and other commonly used
"passes" to the device for easy scanning. 

While Passbook is hardly a game-changer in its first
iteration, it allows Apple to test and perfect the software side of mobile
payments while the stakes are lower.  It has been widely suspected that
the new iPhone, due to launch in Q4 this year, will incorporate a near-field
communication (NFC) chip that will communicate directly with point of sale
terminals at retailers around the world.  At that point, Passbook will
likely include the ability to connect Passbook to Visa, Mastercard and other
major credit card accounts.

Civil Money Penalties

November 2011 we reported that there
was activity by FDIC examiners whereby they were citing banks for carrying the Civil
Money Penalties endorsement for scheduled Directors & Officers on the
bank's D&O policy. May 30, 2012 delivered a new chapter to the
saga when legislation was introduced that would prohibit executives from
purchasing civil money penalties coverage or any other type of "clawback"
coverage to protect them from penalties intended to be punitive in nature.

bill was introduced by Representative Barney Frank and is entitled, "Executive
Compensation Clawback Full Enforcement Act
".  Experts in the insurance industry believe
it's likely to pass because there's no significant opposition.  The Civil Money Penalties coverage developed largely
due to competition - if one carrier offered it, everyone else had to follow or
they would lose market share.  A few
insurance carriers elected not to provide the coverage, but soon were forced to
add it, just to gain or keep business. 
Simultaneously, the cost for the coverage has historically been cheap -
not an exaggeration - at $25 per director or officer, it has been too cheap for
many banks to pass up!  Recently, due to
the controversy, some insurance carriers have been adding the endorsement, upon
request by the bank, to the bank's D&O policy. Without additional premium,
there's no money in it for the insurance industry - so they're not expected to
challenge the new legislation.

proposed Act allows insurance for an individual's defense costs. The insurance
industry's traditional D&O policies generally allow for defense costs for
these types of allegations; however the penalties and returned compensation
amounts associated are the real questions of the argument. If Representative Frank's
bill is passed, it's likely that those questions will be answered. Most insurance carriers and brokers, which
have been wrestling with the dilemma for the past year, will welcome the
resolution of these issues.  Unless
there's a call from the banking industry to take on the challenge we believe
the Civil Money Penalties endorsements will be removed from policies, with a
return of the unearned premiums as soon as the bill, as written, becomes law.

hesitate to contact Carol Troy or Connie Tolles of IBAT FS for more
information.  For additional articles on
the topic, we refer you to the following discussions:



Fun Fact Friday

We all know that crime doesn't pay, but perhaps the more
appropriate saying would be "Crime doesn't pay very much."  This,
according to a new research study conducted by economists in the United States
and the UK. 

Published in the journal Significance,
the study claims that US bank robbers made out with an average of $4,330
per person.  British robbers did slightly better, averaging £12,706 (about
$20,000).   At that rate, it would take three successful bank
robberies for a single-bank robber to surpass a poverty-level income as defined
by the United States
Department of Health and Human Services

"Given that the average UK wage
for those in full-time employment is around £26 000, it will give him a modest
lifestyle for no more than 6 months. If he decides to make a career of it, and
robs two banks a year to make a sub-average income, his chances of eventually
getting caught will increase: at 0.8 probability per raid, after three raids or
a year and a half his odds of remaining at large are 0.8 × 0.8 × 0.8 = 0.512;
after four raids he is more likely than not to be inside. As a profitable
occupation, bank robbery leaves a lot to be desired," the researchers

Making a Difference Award

Is there one special person in your bank who contributes above and beyond? The person everyone looks to for ideas or help. The person who contributes through attitude, character and deeds far more than their required job description. Or perhaps in addition to his or her bank responsibilities, this individual makes important contributions to the local community through volunteer efforts in the schools, hospitals, and civic organizations.

This is your opportunity to nominate this special person for the IBAT Making a Difference Award.  IBAT is accepting nominations for this award through June 18.

Award recipients will be selected by an outside panel of judges and will be honored during the IBAT Annual Convention, October 6-9, at the Hilton Austin Hotel. All nominees will be included in the IBAT magazine and on the IBAT website.

Nominees cannot be bank or branch presidents or chief executive officers.

Be detailed in your responses in order to provide the judges with the most complete overview of your nominee. Also, be sure to include a photo (digital preferred). Complete the nomination form and return to Mae Beth Palone:

Via Mail: 1700 Rio Grande Ste 100, Austin, TX 78701
Via E-Mail: mbpalone@ibat.org
Via FAX: 512.275.2269

Basel III Regulation

a somewhat surprising move, the Federal Reserve issued a notice for proposed
rulemaking titled Regulatory Capital Rules: Regulatory Capital,
Implementation of Basel III, Minimum Regulatory Capital Ratios, Capital
Adequacy, and Transition Provisions
that seeks to put all U.S. banks under
the Basel III capital standards. The impact of this proposed rule is
somewhat mitigated by the fact that most community banks across the country are
already held to much higher capital standards (either explicitly or implicitly)
by their primary regulator.  In addition to increasing the capital reserve
requirements, the proposed rules also require capital of a
"higher-quality." The subject standards proposed for capital quality
means the Fed will be taking a harder look at the risk involved in assets held
by the bank. There is a 90-day comment period for the proposed rules. If
finalized in September of this year, the rules would be phased in beginning
January 2013.

will be reviewing and commenting on this proposal.

Please contact Steve Scurlock for more information.