IBAT News

Best of Community Banking


Time is flying and as such, we’re extending the Best of Community Banking (BOCB) Award deadline to Wednesday, July 12. We know it takes a good amount of time and effort to create each BOCB entry, and we don’t want to rush you or miss out on your entry because time ran out.

Simply by doing what you do every day to help your customers and your community, you have a community service, financial education, marketing or architectural design achievement to highlight with a BOCB Award submission. And what better way to honor those who worked hard to make it happen? As always, entries will be displayed at the IBAT Annual Convention, Sept. 30-Oct. 3, 2017, at the Hilton Downtown Austin. Additionally, gold award winners will be recognized during the BOCB Awards luncheon Monday, October 2.

The BOCB brochure and entry form can be found here. Tell us about the extraordinary programs your bank has undertaken throughout the past year! Please contact Lindsey Gehrig if you have any questions or want to discuss a potential submission topic. 

Staff contact: Lindsey Gehrig, lgehrig@ibat.org, 512-275-2215

4th of July Office Hours


The 4th of July is a time for donning red, white and blue, backyard cookouts, community parades and fireworks.

But it is also a time to stop and reflect on this wonderful country of ours from “sea to shining sea.” A time to remember the foundation that our country was built on. A time to remember the courage our founding fathers displayed. And a time to appreciate the wonderful gift of freedom that we all enjoy and should never take for granted.

In observance of the July 4th holiday, the IBAT office will close on Monday, July 3, 2017 and July 4, 2017. Business hours will resume to normal on Wednesday, July 5.

From the IBAT family to yours, Happy Independence Day!

Legal Ease: June 29, 2017


We are making a $500,000 loan secured by three properties. One property is estimated at nearly $400,000, and the other two properties are estimated at $150,000 each. Because the loan is over $250,000 and no other exemption applies, do we need an appraisal on each property?

Learn the answer here.

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 or kgoulart@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.

ICBA


It’s hard to believe that we’re only a few weeks from the August congressional recess, during which members of Congress head back to their districts to meet face to face with constituents. ICBA is encouraging community bankers to invite members of Congress and staff to visit their banks during the recess period. In preparation, ICBA has created the comprehensive new “Meeting on Main Street” guide.

For those new to this process, or those who have done this many times before but would like a refresher, the guide includes tips that will help with both planning and the logistics of conducting a bank visit or in-district meeting.

Your one-on-one discussions with lawmakers and their staff about the challenges community bankers experience in the current regulatory environment can help frame their understanding of the urgent need to find solutions to the regulatory overreach that hinders your ability to serve customers. This is an important next step in the process towards meaningful regulatory relief for community banks.

Staff contact: Chris Williston, cwilliston@ibat.org, 512-474-6889

IBAT Honored


IBAT honored the three winners of the 2017 Five*Star Award—Kennedy Sutherland, LLP (Tier 1, 10 or fewer employees), CalTech (Tier 2, 11-199 employees) and PULSE, A Discover Company (Tier 3, 200 or more employees)—at last week’s Leadership Conference.

“We are honored to recognize this year’s Five*Star Award winners as they have shown dedication, commitment and passion for our industry, all while delivering exceptional service to their clients,” IBAT President and CEO Chris Williston said. “These companies not only provide value to Texas community banks, but they also advocate for and actively participate in important activities supporting our industry.”

Since 2002, IBAT has recognized associate members that routinely provide excellent service and innovative solutions that help community banks grow, enhance profits and gain efficiency with the Five*Star Award.

Staff contact: Darlene Revers, drevers@ibat.org, 512-275-2217

New Bottom Line


The IBAT office will be closed on Tuesday, July 4, in observance of Independence Day. There will be no regular edition of IBAT’s Bottom Line e-newsletter next week. 

Beginning Tuesday, July 11, we’ll try out a new format for the Bottom Line, which will continue throughout the month of July.  

We look forward to receiving your feedback on the experimental format, which will contain quick bullet point encapsulations of the news and information you’ve come to rely on from IBAT, as well as links to additional articles and information of interest to Texas community bankers.

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

Meet Your New LD Board


Thank you to all who participated in last week’s 32nd Annual IBAT Leadership Conference at Horseshoe Bay Resort. We hope you had as much fun as we did.

With the close of Leadership Conference comes the official beginning of the new 2017-2018 Leadership Division Board. The Leadership Division is divided into 13 regions, each of which hosts education and networking events for community bankers in the area throughout the year. Each region also has its own president, who also serves as the region’s board member.

Executive Committee

  • NEW Chairman Hazem Ahmed, Integrity Bank (Southeast Houston)
  • NEW Chairman-Elect Christy Hester, Texas Bank and Trust (Longview)
  • NEW Secretary-Treasurer Marty Rivers, First State Bank (Gainesville)
  • NEW Immediate Past Chairman Doak Crabtree, Happy State Bank (Stratford)

Board Members

  • NEW Region 1 President Geoff Phemister, Happy State Bank (Amarillo)
  • Region 2 President Peter Smith, Happy State Bank (Lubbock)
  • Region 3 President Barry Gober, First State Bank (Graham)
  • NEW Region 4 President Chad Golden, TIB-The Independent BankersBank (Farmers Branch)
  • Region 5 President Justin Steinbach, Frost Bank (Dallas)
  • Region 7 President Bruce Toppin, III, Rosenthal Pauerstein Sandoloski Agather LLP (San Antonio)
  • Region 8 President Audie Wienecke, TransFund (Hico)
  • Region 9 President Matt Crable, Texas First Bank (Pearland)
  • Region 10 President Cory Flencher, Citizens State Bank (Brenham)
  • Region 11 President Mary Lou Vicencio, Inter National Bank (McAllen)
  • Region 12 President Debbie Scanlon, BKD, LLP (Houston)
  • Region 13 President Bobby Priestley, First Lockhart National Bank (Austin)
  • At-Large Banker Brian May, Vista Bank (Austin)
  • At-Large Banker Brett McDowell, Centennial Bank (Lubbock)
  • At-Large Associate Member Kevin Moore, American National Insurance Company (League City)
  • At-Large Associate Member Melissa Nance, Advantage Health Plans Trust (Giddings)

We highly encourage you to participate in the engaging leadership events hosted in your region. Click here to see the region map.

Staff contact: Julie Courtney, jcourtney@ibat.org, 512-275-2227

Leadership Award


Congratulations to Debbie Scanlon, CPA, partner at BKD, LLP in Houston for receiving IBAT’s 2017 Excellence in Leadership Award. In case you somehow don’t know her, Scanlon is a member of the BKD National Financial Services Group and leads the Houston financial services practice. It’s safe to say she’s no stranger to Texas community banking.

With more than 25 years of experience providing audit and consulting services to a variety of financial institutions and companies, Scanlon has become one of commercial banking’s most respected advisers. She has served as a sponsor and supporter of IBAT in many ways, including always attending the Congressional Visit, Community Banking Day at the Capitol, strategic planning meetings and many other events every year, plus sponsoring the Best of Community Banking Awards. We honored her with the IBAT President’s Award in 2013, and she was a finalist for the Houston Business Journal’s 2016 Women Who Mean Business.

“Debbie is a leader among leaders and inspires others to contribute like she does. People want to work with her and if you need something, she is there without hesitation,” IBAT President and CEO Chris Williston said. “We are thrilled to call her one of our own and recognize her with this prestigious award,” he added. 

Staff contact: Chris Williston, cwilliston@ibat.org, 512-474-6889

 

Another Bank Regulation


Reprinted from CSBS Examiner

Given the important role community banks perform in the U.S. economy, last Thursday state regulators recommended regulatory reforms that are appropriate for smaller, less complex banks that do not pose systemic risk.

At a hearing of the U.S. Senate Committee on Banking, Housing and Urban Affairs, Charles G. Cooper, commissioner of the Texas Banking Department and immediate past chairman of CSBS, recommended four key changes:

  • Adopting an activities-based definition for community banks, which lawmakers and regulators can use to exempt smaller banks from regulations aimed at larger banks;
  • Reducing the complexity of capital rules for smaller banks;
  • Exempting from certain regulations community banks that retain mortgages in portfolio; and
  • Improving the transparency and timeliness of fair lending supervision.

Community banks provide about 45 percent of small loans to U.S. businesses and three-fourths of agriculture loans. But “community banks are disproportionately burdened by oversight that is not tailored to their business model or activities,” Cooper said. Listen to Commissioner Cooper’s opening testimony here.

Speaking on behalf of state regulators who oversee 78 percent of U.S. banks, Cooper called on Congress to abandon a one-size-fits-all approach to bank regulation and, instead, tailor regulations to different kinds of banks. He concluded: “I have seen many swings of the regulatory pendulum. Extreme swings to either side are wrong. We must all seek ways to ensure a balanced approach.” 

Staff contact: Chris Williston, cwilliston@ibat.org, 512-474-6889

IBAT's Compliance Conference


Back by popular demand, IBAT’s Compliance Conference is the must-attend event of the year for compliance and operations officers looking to survive and thrive in a post Dodd-Frank world. Join us August 2-4, 2017 in Arlington for this in-depth program led by experts from across the state that includes a combination of lecture and case studies.

Attendees may choose a one-day, two-day or three-day registration based on their needs:

  • Day 1: Lending Issues (residential mortgage & consumer installment lending, HMDA, TRID, Flood)
  • Day 2: Common Issues (marketing, mobile banking, insurance coverages)
  • Day 3: Operations Issues (vendor relationships, facilities issues, HR, elder abuse, BSA/AML)

Register here. We look forward to seeing you in August!

Staff contact: Julie Courtney, jcourtney@ibat.org, 512-275-2227

Baker Market Update: June 26, 2017


Cheers to the first week of summer! As I took my 2yr old daughter down the slide at our neighborhood pool for what felt like the 50th time yesterday evening, I realized there is a 100% chance that that I’ll carry her up those steps at least 1,000 more times between now and Labor Day. I’m confident in this prediction because I did the same for my son last summer. I’m also 100% sure I’ll be doing the same when my youngest turns two, following his brother’s and sister’s path at making sure their father’s back is nothing more than small handful of vertebra desperately keeping their old-man upright.

In the futures markets, predicting anything with that kind of certainty is rare. However just a few weeks ago, the implied probabilities for a Fed rate increase not only called for a 98% hike in June but for one at every meeting for the remainder of the year! Today, those probabilities have fallen dramatically with only a 16% chance for the September and November meetings, and a 43% chance for December. Much like my back after a summer of carrying toddlers up the pool ladder, that was short-lived!

Read More in the Baker Market Update.

BOCB Deadline Approaching


In case you somehow missed it, the deadline for the 2017 Best of Community Banking Awards is in less than two weeks on Friday, June 30. We want to thank those who have participated in recent years and will do so again this year, and encourage those who have never participated to enter this year.

Simply by doing what you do every day to help your customers and your community, you have a community service, financial education, marketing or architectural design achievement to highlight with a BOCB Award submission. And what better way to honor those who worked hard to make it happen? Join last year’s list of winners. As always, entries will be displayed at the IBAT Annual Convention, Sept. 30-Oct. 3, 2017, at the Hilton Downtown Austin. Additionally, gold award winners will be recognized during the BOCB Awards luncheon Monday, October 2.

The BOCB brochure and entry form can be found here. Tell us about the extraordinary programs your bank has undertaken throughout the past year! Please contact Lindsey Gehrig if you have any questions or want to discuss a potential submission idea. 

Staff contact: Lindsey Gehrig, lgehrig@ibat.org, 512-275-2215

IBAT Winter Summit XVIII


We are pleased to announce the IBAT Winter Summit has been booked! The venue will once again be the beautiful Westin Riverfront Resort and Spa at Beaver Creek in Avon, Colorado. Mark your calendar to join us January 15-17, 2018. 

While we are putting the final touches on the speaker lineup, we already have commitments from several of the top regulators in Texas. Additionally, we’re happy to report return engagement of the outstanding attorney panel featuring Sandy Brown, Rick Brophy and Chet Fenimore as well as an economic update from our friends at The Baker Group.

This always-popular program promises—and delivers—meaningful education opportunities, unparalleled networking and time to enjoy all the activities available in Vail Valley. Watch for more information and registration coming soon.

Staff contact: Julie Courtney, jcourtney@ibat.org, 512-275-2227

2017 Bank Lending Institute


Registration is now open for the 4th Annual Bank Lending Institute™ (BLI), which will be held November 5-10, 2017 in San Antonio. BLI is a two-year banking program that provides practical bank management and leadership strategies necessary for successful community bank lending.

The community banking focused curriculum is overseen by bankers, industry consultants, regulators and other experts in the financial services field. It offers strategic insight into both the present and future of banking technology, best practices, administrative processes and project management.

Hosted at the Westin Riverwalk in San Antonio, BLI puts an emphasis on real-life skills and approaches required for effective and profitable bank lending management. Click here to register or learn more.

Staff contact: Julie Courtney, jcourtney@ibat.org, 512-275-2227

Legal Ease: June 22, 2017


Can a bank include on the HMDA report loans on farmland with a single-family home on a case-by-case basis? I believe this is in Appendix D, and it says ‘An institution may select the standard on a case-by-case basis.’

Learn the answer here.

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 or kgoulart@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.

Bipartisan Push


A bipartisan group of lawmakers responded to the recent CFPB inquiry on small business reporting by calling on CFPB Director Richard Cordray to exempt community banks from upcoming regulations on small business loans.

A coalition consisting of 72 members of Congress—including Texas Representatives Henry Cuellar, Joe Barton, Mac Thornberry, Roger Williams, Michael Burgess and Ted Poe—said the data collection and reporting requirements under Section 1071 of the Dodd-Frank Act threaten to harm community bank lending and ultimately, decrease consumer and small business access to credit.

The congressional letter states:

Community banks’ direct, first-hand knowledge of their communities allows them to underwrite and customize small business loans that would be denied or passed over by lenders based outside of the community or that rely on algorithms and other impersonal methods of evaluating credit. If new rules under Section 1071 effectively drive community banks from the small business market, the creation, growth and survival of small business in thousands of American communities—including underserved rural towns and urban neighborhoods—would be threatened.

It is expected that legislation repealing the small business reporting requirements will be introduced soon.

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

Regulatory Relief


Last week the U.S. Department of the Treasury released its eagerly anticipated report on recommended actions to address regulatory burden for the American banking industry. The report, created in response to an Executive Order issued by President Trump earlier this year, aims to put financial regulation in alignment with certain core values, including a focus on “making regulations efficient, effective and appropriately tailored.”

The recommendations from the Department fall into distinct categories including:

  • Allowing community banks and credit unions to thrive with an exemption from Basel III risk-based capital requirements and overhaul of regulatory expectations for institutions under $10 billion.
  • Addressing the U.S. regulatory structure, recommending that Congress “take action to reduce fragmentation, overlap and duplication within the U.S. financial regulatory framework.”
  • Providing credit to consumers and businesses to drive economic growth and addressing “numerous regulatory factors that are unnecessarily limiting the flow of credit.”

“The Treasury Department report encapsulates exactly the concerns that IBAT has been expressing for almost a decade—that the legacy of Dodd-Frank is a disproportionate negative impact on institutions that played no role in the financial crisis that predicated its creation,” said Chris Williston, IBAT President and CEO

Many of the recommendations made by the Treasury Department are included in the CHOICE Act, which passed the House of Representatives as reported last week. We also anticipate Senate legislation to address these recommendations later this year.

Staff contact: Chris Williston, cwilliston@ibat.org, 512-474-6889

Pages