IBAT's 85th Texas Legislature

Don’t forget to register for IBAT’s 85th Texas Legislature recap webinar on June 27, 10-11:30 a.m. As is customary, we will provide a thorough recap of legislation and issues emanating from the Session that will impact your bank.

Please join us for this free program from the comfort of your office, and we encourage your staff to sit in as well.

Register here today. You’ll receive both audio and web instructions prior to the webinar.

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

Cybersecurity Tool

The Federal Financial Institutions Examination Council (FFIEC) released an update to the Cybersecurity Assessment Tool. The FFIEC revised its IT Examination Handbook with updated Information Security and Management booklets. The updated tool also provides additional response options, which allow financial institutions to include supplementary behaviors, practices and processes to support their cybersecurity activity assessment.

The revised assessment tool and related information can be found here

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

Consumer Tips

IBAT's June Consumer Tips article looks at various ways to save money when traveling abroad. While international travel is a dream for many, the cost of doing so means it might never be a reality. These tips address how to save on many aspects of travel, including airfare, lodging, food, entertainment and more.

Please feel free to share the June Consumer Tips with your bank customers.

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

Cooper Op-Ed

Texas Department of Banking Commissioner Charles Cooper penned his thoughts about the need for regulatory reform in an op-ed that has been published in several newspapers, including the San Antonio Express-News and Houston Chronicle. In the piece titled “Making Federal Reforms Work for Our Communities,” he focuses on the need for community bank regulatory relief.

The Commissioner writes in his op-ed:

“Perhaps the best place to start is where there is bipartisan support. In my recent visit to Washington, D.C., I met with members of the Texas delegation and others in Congress. The one unifying topic—regulatory right-sizing for community banks.”

He then goes on to highlight House Financial Services Committee Chairman Jeb Hensarling’s Financial CHOICE Act that would right-size regulations for a post-crisis environment. This comprehensive regulatory reform bill is set for a House vote this week. It passed the committee last month on a 34-26 vote. An executive summary of the bill can be found here. Special thanks to the Commissioner for sharing his expert opinion and to Chairman Hensarling for championing much-needed, long-overdue regulatory reform for community banks.

We highly encourage you to share Commissioner Cooper’s op-ed with your local newspaper. Please contact Lindsey Gehrig if you have questions, need assistance or would like the Commissioner’s head shot to submit with the op-ed.

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

IBAT Supports Lawsuit

Last week, IBAT joined ICBA and community banking associations from around the country in signing on to an amicus curiae brief supporting the American Bankers Association’s (ABA) lawsuit against the National Credit Union Administration’s (NCUA) proposed amendment to credit union field-of-membership rules.

The brief focuses on the liberal interpretations of federal law employed by the NCUA that would expand the scope and ability of credit unions to operate beyond “localized communities of interest.”

In IBAT’s comment letter on the rule, IBAT President and CEO Chris Williston spoke out against the seemingly endless expansion of credit union power provided to the industry by the NCUA.

“If the NCUA cannot or will not narrowly interpret the limits Congress placed on these tax-exempt entities to keep them focused on their statutory purpose, then, yes, credit unions should either pay their fair share of income tax or convert to bank charters,” Williston said. 

Check future issues of IBAT’s Bottom Line newsletter for more coverage of ABA’s lawsuit against NCUA.

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

2017 BOCB Awards

It’s that time of year – time to start thinking about what your bank will submit for the 2017 Best of Community Banking (BOCB) Awards competition. This marks the 26th year of celebrating the outstanding accomplishments of IBAT member banks.

The BOCB program recognizes the vital role your bank plays in your community. It is an opportunity to showcase and honor the best-of-the-best efforts of IBAT members in four categories:

  • architectural design,
  • community service,
  • financial education and
  • marketing.

As always, all entries will be displayed at the Annual IBAT Convention in September at the Fairmont Hotel in downtown Austin. Gold award winners will be recognized during the BOCB Awards luncheon on Monday, September 11.

The entry deadline is Friday, June 30. The BOCB brochure and entry form were mailed last week so please be on the lookout for these important materials. We can’t wait to learn about the extraordinary programs IBAT banks have taken on throughout the past year! 

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

Baker Market Update: June 5, 2017

It’s the first Friday of the month, and this morning’s Jobs Report was a real covfefe. It might look okay if observed from a galloping horse, but even a cursory scratch of the surface tells a different story. Yes, the Unemployment Rate fell by a tenth to 4.3%, but we’re all too familiar with the biggest reason for that; the Labor Force Participation Rate fell to 62.7% from 62.9%. The paltry addition of 138k to Non - Farm Payrolls continues the deceleration of job growth, the number of folks not-in-the-labor-force grew by 608k, the non-institutionalized civilian population grew by 179k, the civilian labor force fell by 429k, and the employment/population ratio dropped to 60% from 60.2%. But hey, this is the lowest Unemployment Rate since 2001, so happy days are here again!

Read More in the Baker Market Update

HDMA Comment Letter

Last week, IBAT filed comments on proposed amendments to data reporting requirements under the Home Mortgage Disclosure act. In the comment letter filed by IBAT President and CEO Chris Williston, IBAT requested that the CFPB adopt changes to address ambiguities and misunderstandings in the treatment of:

  • Multifamily loans,
  • Purchased loans,
  • Land contracts and leases,
  • Final action and
  • Safe harbor for use of geocoding tool.

The letter went on to express concern that “the CFPB has not provided any compelling evidence that the collection and disclosure of [many additional data points] provides benefits that outweigh the significant burden it will place on financial institutions and the risk it will pose to the security of the financial information contained therein.”

Staff contact: Kelly Goulart, kgoulart@ibat.org, 512-275-2231

CBA + BOCB Award

ICBA is seeking nominations for its 2017 National Community Bank Service Awards, which recognize community banks that help sustain and improve their communities through community service and volunteer efforts. Banks may be nominated or can nominate themselves, and submissions are due this Friday, June 2. Additional information can be found here.

If you plan to submit an IBAT Best of Community Banking (BOCB) Award entry in the community service or financial literacy category, it could also meet the requirements for the ICBA Community Bank Service Award. While the BOCB deadline is just under a month away—due Friday, June 30—this is incentive to get your bank’s award entry together this week to meet ICBA’s deadline!

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

Legal Ease: June 1, 2017

Our applicant is an attorney who wants to add a large office and reception area on to his home to work out of full time. Is this application subject to TRID?

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.

Supreme Court Opinion

The United States Supreme Court issued a very short opinion in Heartland LLC v. Kraft Foods Group Brands LLC, concluding that venue for patent cases was limited by the patent law, which has its own venue section. The Supreme Court held that this venue provision is not preempted by the general venue statute. Repeatedly the opinion notes that a domestic corporation “resides” where it is incorporated. Of course, this may make Delaware the new go-to venue since many corporations are incorporated there!

Further, the statute specifies that an action may be brought “in the judicial district where the defendant resides, or where the defendant has committed acts of infringement and has a regular and established place of business.” (28 USC sec. 1400(b).) So online transactions wouldn’t expand jurisdiction. Also, it appears the law means that a business incorporated in Texas could be sued in the specific district where it resides—not the entire state. Otherwise, that underscored language would be surplusage.

Since the Eastern District of Texas is the rocket docket, it is important to be able to argue that a particular case must be brought where the infringing party actually resides in the state of Texas. Otherwise, Texas corporations will still be in the rocket docket for patent cases.

Staff contact: Karen Neeley, kneeley@kslawllp.com, 210-802-4631

Fayetteville Bank Celebrates

Congratulations to Fayetteville Bank on its 100th anniversary. It has proudly served Fayette and the surrounding counties since 1917. Fayetteville Bank has gone through many changes in its long history and has continuously enjoyed stable and steady growth in deposits and earnings.

(L. to R.) Kyle Holloway, Fayetteville Bank President; Mark Few, IBAT;
James Lindemann, Fayetteville Bank Chairman


The bank’s directors, officers, employees and customers celebrated the 100th anniversary with food, drinks and commemorative gifts on May 20, 2017. IBAT’s Mark few attended and presented Fayetteville Bank President Kyle Holloway and Chairman James Lindemann with a resolution applauding the bank and all those who are a part of it for their service and contribution to the local community and the financial industry in Texas.

Staff contact: Mark Few, mfew@ibat.org, 512-275-2224

Texas Legislature

The 85th Texas Legislature adjourned on Monday afternoon, ending a regular session fraught with intramural battles between the House and Senate as well as among members regarding a variety of controversial issues.

Because the Senate did not pass a “sunset safety net” bill, which would have kept several state agencies (including the Texas Medical Board, the regulator of medical doctors) alive after September 1, all indications are that Governor Abbott will call a special session and announce the dates sometime this week. Still undecided are the issues that will be on the agenda, as Lt. Governor Patrick has been pushing for more aggressive action on bathrooms and property taxes. Lots of drama for those of us who live and work in this world.

The latest IBAT Legislative Insider was sent yesterday and provides an update on much of our proactive agenda as well as some other bills of interest. For a full review of the session and issues impacting your bank, don’t forget to register for IBAT’s 85th Texas Legislature recap webinar on June 27, 10-11:30 a.m.

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

Baker Market Update: May 30, 2017

For those unclear about the FOMC’s resolve to effect another rate hike when next they meet, the release of its May minutes should have provided a little bit of clarity. Only a little bit, though, because well, this is the Fed we’re talking about. A single, cherry-picked excerpt from the May minutes reveals that “most participants judged that if economic information came in about in line with their expectations, it would soon be appropriate for the Committee to take another step in removing some policy accommodation.” With words like “if,” “about,” “soon,” “some,” that’s kinda sorta about as definitive as it gets from our policy-makers.

Read more in the Baker Market Update.

The Texas Independent Banker

Independent Banker, is now available online. Click here to view the full table of contents or link directly to specific content below:

As always, if you have suggestions for future content to be featured in The Texas Independent Banker magazine, please contact Bonnie Kankel. We welcome your thoughts and ideas.

Staff contact: Bonnie Kankel, bkankel@ibat.org, 512-474-6889

Sneak Peek at LD Conference

Thinking about registering for IBAT’s 32nd Annual Leadership Conference? Watch the video below to find out what all the buzz is about and then click here to register or find additional information.

We hope to see you June 22-24, 2017 at Horseshoe Bay Resort!

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


Happy Memorial Day & Office Hours

In observance of Memorial Day, the IBAT office will be closed Monday, May 29 and will reopen for regular business hours on Tuesday, May 30.

With solidarity, the IBAT family says, "thank you," to the families of those who have been lost in current and past armed conflicts.  We are eternally grateful for the ultimate sacrifice that has been made by many for the freedom we enjoy. 

Happy Memorial Day and God Bless America!

Memorial Day Flag Instructions

Office of the Governor Greg Abbott

Memorial Day Memo to State Agency Leaders and Interested Parties for 2017

Displaying the state and national flags is an important duty in carrying out our mission for the people of the state of Texas. In addition to creating an identity for the people of Texas, the proper display of flags leads the people into times of joy and mourning, and into times of reflection and celebration. 

On the morning of Monday, May 29, both the State of Texas and U.S. flags should be raised briskly to full-staff and then slowly lowered to half-staff until noon.  At noon, both the State of Texas and U.S. flags should be raised briskly to full-staff for the remainder of the day.  Flags should be at full-staff on Tuesday, May 30. 

You are not required to schedule employees for duty on holiday or weekend hours only to comply with flag-flying issues. These requirements only apply to days that your agency normally displays the flag. 

In all questions, you should consult your in-house general counsel to see how they interpret the laws to your specific situation.

Contact Greg you have any questions:

Gregory Scott Davidson, Executive Clerk and
Director of Constituent Communication Division
Office of the Governor ● P.O. Box 12428 ● Capitol Station ● Austin, Texas 78711
(512) 463-1800