Silver Alert: October 20, 2016



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


The Pearland Police Department is searching for Peter Jorgen Lanther, diagnosed with a Cognitive Impairment, White, Male, 86 years old, DOB 04/02/1930, HEIGHT 5’ 9”, WEIGHT 145 lbs, Grey Hair, Blue Eyes, Last seen  wearing gray flannel shirt and blue jeans .

The senior citizen was last seen at 06:00 PM, 10/18/2016 at 703 Flower Field Ct Pearland TX, driving a Silver/ Grey, 2007 Mercury Monterey with TX License Plate DBX5286.

Law enforcement officials believe this senior citizen’s disappearance poses a credible threat to his own health and safety.

If you have any information regarding this missing senior citizen, contact the Pearland Police Department at 281-997-4100.

News Media Point of Contact is at Pearland Police Department 281-997-4186.

HUD Funds for Texas

HUD Secretary Julián Castro awarded a total of $500 million to help Texas, Louisiana and West Virginia recover after severe flooding events that occurred earlier this year. Provided through HUD's Community Development Block Grant - Disaster Recovery (CDBG-DR) Program, these recovery funds will assist the most impacted communities that experienced the most serious damage to their housing stock.

Texas was awarded $45,200,000, and HUD will publish a notice in the Federal Register that will define the criteria for the use of these funds shortly. CDBG-DR grants can support a wide variety of activities, including housing redevelopment, business assistance and infrastructure repair.

Staff contact: Shannon Phillips, sphillips@ibat.org, 512-275-2221

Upcoming IT Security Summit

Cyber threats have become more sophisticated than ever and attackers are exploiting endpoints to gain access to your network’s most critical assets. Today's IT security officers have a lot to handlem, including:

  • Cyber threats,
  • Reputation risk,
  • Vendor management,
  • Risk assessments,
  • Social media,
  • Mobile payments and
  • Information security examinations.

IBAT is partnering with experts from the Federal Reserve Bank of Dallas, as well as Endorsed Service Providers SecureWorks and CalTech, to bring you the IT Security and Fraud Summit, November 9-10, 2016 in Dallas.  

The Dallas Fed will use current research to show attendees how the threat landscape has evolved and how advanced adversaries are now targeting endpoint security vulnerabilities. Click here to learn more and register.

Staff contact: Jessica Hernandez, jhernandez@ibat.org, 512-275-2207

Legal Ease

If an application is withdrawn or denied within three days of submission, does the bank have to provide the notice of the right to receive a copy of the appraisal under 1002.14(a)(2)?

Learn the answer here.

Staff contact: Shannon Phillips, sphillips@ibat.org, 512-275-2221
Staff contact: Kelly Goulart, kgoulart@ibat.org, 512-275-2231

Legal Ease is chosen from questions received through the IBAT Compliance Adviser Helpline, available to IBAT members free of charge at 1-800-749-4228, kgoulart@ibat.org or sphillips@ibat.org. IBAT members can also read and/or initiate discussions with other community bankers in the IBAT Compliance Forum. The Legal Ease archives are also available on IBAT2GO, the official IBAT mobile app.

2016 Bank Operations Institute


IBAT hosted its 36th Annual Bank Operations Institute (BOI) at Southern Methodist University (SMU) in conjunction with the SW Graduate School of Banking and SMU Cox School of Business on October 9-14, 2016. Sixty-seven community bankers from across the state attended the program, which offers strategic insight into the present and future of banking processes, project management, technology and cybersecurity.

Congratulations to the following class officers and top-performing students.

Level One Officers:

  • President Ryan Anderson from Woodforest National Bank in Conroe, Texas;
  • Vice President Amanda Hinsley from First National Bank of Floydada in Floydada, Texas; and
  • Secretary Joe Rudd from Marion State Bank in Marion, Texas.

Level Two Officers:

  • President Ryan Webb from Security Bank in Tulsa, Oklahoma; and
  • Vice President Katrina Grove from First Interstate Bank in Billings, Montana.

The top-performing students in level two this year were Joe Johnson from Western Bank in Coahoma, Texas; Greg Clayton from TIB-The Independent BankersBank in Dallas, Texas; and David Anderson from American Bank of Commerce in Wolfforth, Texas.

Learn more about BOI here, and contact us if you’re interested in the 2017 program.

BOI Level II Class BOI Level I Class

DOB Legislative Consideration

The Texas Department of Banking recently released its issues for legislative consideration for the 2017 session. This information was shared as part of the agenda for the upcoming Finance Commission of Texas meeting on October 21, 2016.

Included in the list of DOB legislative priorities are the following:

  • Provide that persons subject to prohibition orders may not serve as a director, officer or employee in state bank holding companies;
  • Prohibit felons from serving as an officer of a state bank or trust company; and
  • Provide Commissioner discretion for termination of supervision order.

The entire list can be found here. Additionally, the Department of Savings & Mortgage Lending’s items for legislative consideration can be found here.

“We appreciate the Banking Department, as always, giving us a heads up on its legislative priorities,” noted Steve Scurlock, IBAT Executive Vice President. “We look forward to working together throughout the 2017 session to help achieve these.”

Staff contact: Shannon Phillips, sphillips@ibat.org, 512-275-2221


FS-ISAC’s latest report for community institutions offers tips on managing third-party risk. The report focuses on a Software Engineering Institute (SEI) white paper titled Managing Third-Party Risk in Financial Services Organizations: A Resilience-Based Approach that encourages community institutions to focus on essential activities and risks, identify key cybersecurity requirements, ensure end-to-end processes and more.

Staff contact: Shannon Phillips, sphillips@ibat.org, 512-275-2221

IBAT Webinars

Did you know? IBAT, in conjunction with Financial Education, Inc., hosts close to 150 webinars a year. Webinars are a very economical way to train your staff for one low price. Everyone can sit in on the program with the use of a speakerphone and a computer, or access archived webinars on-demand.

Topics are broken up by category or by date and include:

  • Auditing & Accounting
  • Collection
  • Compliance
  • Directors
  • Frontline and New Accounts
  • Human Resources
  • IT
  • IRA
  • Lending
  • Operations
  • Security & Fraud
  • Senior Management

You can access a complete listing of upcoming webinars and archived webinars here.

MLO Licensing

IBAT recently responded to a letter from the Community Home Lenders Association to CFPB Director Richard Cordray recommending that MLO testing be expanded to include depository institution loan officers. This was precipitated by the Wells Fargo debacle, and it reinforced a longstanding desire by some in the mortgage industry to push additional requirements upon those in the banking industry making mortgage loans.

“Community banks and bankers continue to bear the brunt of the repercussions of bad behavior from others in the financial services industry,” stated Steve Scurlock, IBAT Executive Vice President. “We were opposed to the registration of community bank MLOs when Congress was debating this issue, and we are certainly opposed to placing yet more hurdles and expenses on those who are already heavily regulated. This is neither necessary nor beneficial public policy, and it would result in less availability and higher costs for those seeking mortgage loans. We are optimistic that the CFPB will not seriously consider this recommendation.”

Staff contact: Steve Scurlock, sscurlock@ibat.org, 512-275-2226

Blog Post

As we reported last week, a federal court found that the structure of the CFPB was unconstitutional. Additionally, we briefly identified the RESPA and statute of limitations issues addressed by the court.

IBAT General Counsel Karen Neeley posted a blog that sheds a little more light on the court’s decision and its implications.

Staff contact: Shannon Phillips, sphillips@ibat.org, 512-275-2221

Salary Survey Results

The results of IBAT’s 2016 Community Bank Salary and Compensation Survey—the gold standard in community bank salary, benefits and directors’ compensation data—are now available. Key benefits of the Salary Survey include:

  • New in 2016: Expanded benefits section to provide insights into health insurance benefit trends in light of the continued implementation of the Affordable Care Act;
  • Only the top 25 most essential job positions to reduce your time commitment;
  • Consolidated data filtration parameters to yield larger data pools for more valuable customized comparison reporting;
  • Comprehensive static report of survey results and online custom reporting tool for peer comparisons; and
  • Targeted questions on bank employee benefits.

Pricing information can be found here. If you participated in the survey, you should have received your complimentary copy of the comprehensive PDF report and online access to our custom reporting tool. If you would like to order a copy, please contact Christopher Williston.

Staff contact: Christopher Williston, clwilliston@ibat.org, 512-275-2208

Baker Market Update: Oct. 17, 2016

Wikileaks may have the inside scoop on lots of stuff, but it was the FOMC that released the minutes of its September meeting earlier this week. You remember, the one where nothing happened. It was also the one where something almost happened. If we can believe the content of the minutes, and according to the Russians we can, it was only the indomitable will of Janet Yellen that prevented the inmates from taking control of the asylum and raising interest rates. How long can she hold them off?

Read more in the Baker Market Update.

The CFPB Issues Continue

Despite the fact that there is no data supporting the need to modify the rules in Regulation E relating to payroll cards, which are working quite well, the CFPB amended Regulations E and Z to create consumer protections for prepaid financial products, including payroll cards. The rules also apply to government benefit cards but not to gift cards or health savings account cards.

The rules are effective October 1, 2017, although the requirement to submit account agreements to the CFPB is effective October 1, 2018. Below are the key changes with respect to payroll cards:

  • Add a requirement to provide pre-acquisition disclosures to consumers;
  • Add a requirement to include disclosures on the access device or, if no physical device, then on a website, mobile application or other entry point;
  • Require additional information on initial disclosures and revised model clauses;
  • Expand the circumstances under which a financial institution may be required to provide a change in terms notice;
  • Increase the time period that must be covered in account transaction histories that are provided under the periodic statement alternative;
  • Require additional fee information in periodic statements and account histories;
  • Add requirements regarding submission and consumer access to payroll card account agreements; and
  • In certain circumstances, subject payroll cards to Regulation Z and its credit card rules if the card can be used to access an overdraft credit feature.

The CFPB created a document that outlines these changes, which can be found on the CFPB’s prepaid rule implementation page. Other resources, including links to the rules, an executive summary, key changes for government benefit accounts, a prepaid account coverage chart, and model and sample pre-acquisition disclosure forms, can also be found on this page.

Click here to read IBAT’s March 23, 2015 comment letter informing the CFPB that changes were not needed for payroll cards.

Additional Compliance Resources

We now have additional Compliance Guidelines and Overviews on the IBAT website. While not developed with the intention of answering every question, they do provide a framework to guide the thought process and generate specific questions. At the bottom of each page is a link to the IBAT Legal Ease archive for that particular subject. Legal Ease provides in-depth answers to more specific questions. 

Recent Compliance Guidelines added include TRID Timing, Consumer Purpose Loans and ECOA vs FCRA Adverse Action Notice Requirements. Overviews include Power of Attorney and an updated Texas Fees and Charges. These can be found under the new Compliance Guidelines and Overviews section of the IBAT website. 

If you have specific compliance questions, feel free to email either Kelly Goulart or Shannon Phillips– a free member benefit.

Staff contact: Shannon Phillips, sphillips@ibat.org, 512-275-2221

LD Region 2 Luncheon

Congressman Randy Neugebauer, Chairman of the House Financial Institutions and Consumer Credit Subcommittee, shared his thoughts about the need to repeal the Durbin Amendment in a BankThink article in last week’s American Banker.

He begins by discussing how the retail lobby went “rent-seeking”—trying to gain subsidies by securing a special regulation that disadvantages competitors—in 2010 and found it through Sen. Dick Durbin and his debit interchange fee provision inserted in Dodd-Frank. Known as the Durbin Amendment, this provision has resulted in the successful transfer of more than $35 billion from one sector of the economy to another. What hasn’t happened is what the retail industry promised would: consumers would benefit from lower retail prices, retailers would invest in improving their payment security systems and small businesses would see a reduction in costs.

“While consumers wait for the promised cost savings to come their way, what they have received is an adverse impact on their options for banking services,” Neugebauer said. “According to separate studies, banking services have become more expensive and less accessible post-Durbin Amendment. The very consumers the amendment was intended to help are losing at both ends of the transaction.”

IBAT agrees with Chairman Neugebauer, and President and CEO Chris Williston recently wrote a Tyler Morning-Telegraph op-ed supporting the repeal of the Durbin Amendment.

Leadership Division Region 2 has invited Congressman Neugebauer to come speak at our luncheon on October 14. Please plan on arriving at 11:00 a.m. for registration. Following the legislative update, there will be an optional golf outing that provides a wonderful networking opportunity for you and your fellow community bankers in the region.

Lubbock Country Club
3400 Mesa Road

Registration Options
Single Lunch Seat: $60
Golf: $125
Golf for Lubbock Country Club Members: $15
Table of Ten for Lunch: $400