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

Dell Deals

Last month we announced Dell's Double Discounts specials in honor of Small Business Month. If you were unable to take advantage of the savings, you're in luck: Dell has brand new deals going on for IBAT member banks, bank employees and customers. Between today and July 6, you can take advantage of the offers below, on top of the "Always On" offers highlighted in blue. Don't miss out! You can place your order online by clicking here.

Special June Offers Include:

·         Save an extra 5% off select OptiPlex desktops designed for business use.

·         Save an extra 5% off select Latitude laptops designed for business use.

·         Save an extra 5% off select XPS desktops designed for the ultimate PC experience.

·         Save an extra 5% off select XPS laptops designed for the ultimate PC experience.

·         Save an extra 5% off select Inspiron desktops designed for home and home office.

·         Save an extra 5% off select Inspiron laptops designed for home and home office.

·         Save an extra 10% off select PowerEdge Servers $899 and up.

·         Save an extra 10% off select Precision Fixed & Mobile Workstations designed for professional creators. USE COUPON CODE: EXTRA10%WKS

·         Save an extra 5% off select Dell Electronics & Accessories.

But that's not all! Between now and July 1, you can also save 25% on select Dell monitors. Use coupon code MONITOR25 when you place your order.

The following offers will be available to IBAT members between May 1, 2017 and July 29, 2017. Simply visit Dell's website and include the Dell/IBAT link number (GS126658178) with each order to take advantage of the current deals.

Always On Offers Include:

  • Coupon Offer: EXTRA10%PES 
    Additional 10% off select PowerEdge Servers and Dell Precision Workstations
  • Coupon Offer: EXTRA5%PC
    Additional 5% off select OptiPlex/Latitude
  • Coupon Offer: SAVE5%PC
    Save Additional 5% off select XPS and Inspiron PCs
  • Coupon Offer: STACK5%
    Save an extra 5% on Dell electronics and accessories (Dell Branded Only)

Share the News:
Please feel free to share this email with your staff and customers. For your convenience, you can download the flyer and post it somewhere in the bank where everyone can see it. Please be sure to include the Dell/IBAT link number (GS126658178) with each order.

Ordering is easy! 
Visit Dell's website or contact Bryan Horten, IBAT’s Strategic Account Manager, at 512-942-9120 to order. As a reminder, whenever ordering Dell equipment please be sure to include the unique Dell/IBAT link number GS126658178

New FDIC Chair

Late last week, President Trump announced his intention to nominate House aide James Clinger as a member of the Federal Deposit Insurance Corporation (FDIC) and as chairman of the board once Martin Gruenberg's term ends in late November. If confirmed, he would serve a six-year term as FDIC Board member and five-year term as FDIC Chairman.

Clinger worked for the House Financial Services Committee for a combined 20 years in roles including assistant staff director, senior banking counsel and most recently, chief counsel. He also served as deputy assistant attorney general from 2005 to 2007 in between decade-long Hill positions.

“We look forward to working with Jim on common-sense rules and Dodd-Frank reforms,” said Chris Williston, IBAT President and CEO. “His work for the House Financial Services Committee will serve him well in this new role.”

A spot on the FDIC Board has been open since Jeremiah Norton left in 2015. If confirmed, Clinger would join FDIC Chairman Gruenberg and Vice Chairman Tom Hoenig, Acting Comptroller of the Currency Keith Noreika and CFPB Director Richard Cordray.

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

IBAT Needs Your Input

IBAT needs your input! An email went out last week to chief credit officers and senior credit officers asking for five minutes of their time to represent Texas community banks in an important survey.

The CFPB is assessing the ability to repay (“ATR”) and qualified mortgage (“QM”) rule to determine the effectiveness of the rule in meeting the objectives of the Dodd-Frank Act. The CFPB prides itself on being “data driven;” thus, the assessment will be largely dependent on data from HMDA, the National Mortgage Database and Informa Research Services. In addition, the assessment is subject to public comment.

IBAT will make recommendations for changing the ATR/QM rule, particularly regarding the “small creditor” exceptions. In support of our comments and recommendations, we would like to collect data on credit availability and problems with ATR in rural communities, especially for farmers and those who are self-employed.

Please ensure your bank is heard by having the appropriate representative complete our nine-question survey, if they haven’t done so already. Thank you for your valuable feedback. 

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

Baker Market Update: June 19, 2017

For those investors that love ironic twists, and who doesn’t, they had to appreciate the bond rally that took place on the very day that the FOMC effected its inexorable rate hike on Wednesday. Janet Yellen’s reverberating conviction that higher growth and rising inflation are on the way have failed to strike a chord with those bond market denizens who reside in the reality of undersized expansion and disinflation.

Read More in the Baker Market Update

USAA Patent

As previously reported, USAA has been sending letters “inviting” banks to license the patent rights to its remote deposit capture (RDC) technology for which the financial services giant holds approximately 50 patents.

IBAT is working with ICBA to research and develop a response to these “invitations.” In the meantime, we are still asking for any member bank that receives a letter from the Epicenter law firm representing USAA to please contact Mark Few with the following information:

  1. A copy of the letter;
  2. Do you currently offer consumer mobile check deposit?;
  3. Vendor’s name;
  4. Have you reviewed your contract to determine if the vendor is responsible for product licensing and any patent allegations?; and
  5. A synopsis of communication with your vendor about the letter.

IBAT and ICBA do not have a recommended response strategy at this time but we are working to gather more information. It is very important to let us know as soon as possible if your bank has been contacted. Additional updates will be forthcoming as the situation warrants.

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

Legal Ease: June 15, 2017

Are mobile banking transactions subject to the Electronic Funds Transfer Act (Regulation E)?

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.

National Homeownership Month

Did you know that June is National Homeownership Month? This is the perfect time to educate customers about the home loan and mortgage services your bank provides.

More than two-thirds of Americans believe that owning a home is an essential part of the American Dream. Your bank can play a pivotal role in making this dream come true for many in your community. Seize this timely opportunity by sharing information on social media. It’s as easy as:

  • Facebook: Celebrate National Homeownership Month by letting us make your dream of owning a home come true! Stop by today – we can help explain and simply the process. #HomeownershipMonth
  • Twitter: It’s National #HomeownershipMonth! Let us help make this dream come true for your family.

Even President Trump got in on the action, issuing a proclamation that officially declares June 2017 as National Homeownership Month. Additionally, ICBA has created a customizable release (first release in Media Templates section) that can be shared with your local media or on your website. Spread the word about this important month.

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

Financial Literacy Summit

A recent CEO survey found that helping customers save money to buy a car or a house, educate a child or for retirement can mean a 50 percent increase in loyalty. Educating your local community about making better financial decisions is clearly an investment worth making, and the 2017 Texas Financial Literacy Summit is the premiere training opportunity to do just that.


If you’re looking for ways to strengthen your local ties and make a deeper impact, then consider attending the 11th Annual Texas Financial Literacy Summit. The IBAT Education Foundation has once again partnered with Texas Bankers Foundation to bring you speakers and sessions that will leave you inspired and equipped to empower individuals of all demographics to make sound financial choices.


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

IBAT's Salary Survey

Data collection is now open for IBAT’s 2017 Community Bank Salary and Compensation Survey.  

The IBAT Salary Survey is the gold standard in community bank salary, benefits and directors’ compensation data. As a participant in the survey, you’ll receive a complimentary copy of the comprehensive PDF report AND online access to our custom reporting tool (an $850 value), both of which will be available in early September.

There are two easy ways to participate:

Data collection will remain open through the month of July, with anticipated release of the survey results in mid-September. 

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

Texas Banking Town Hall Meetings

The Texas Department of Banking will host four town hall meetings – in Dallas, San Antonio, Bryan/College Station and Lubbock – this summer to give community bankers an open forum to discuss issues impacting their banks. Topics discussed will also be used for the 5th Annual Community Banking in the 21st Century Conference, held in early October. 

  • Dallas – July 10, 2017 (registration deadline July 3)
  • San Antonio – August 1, 2017 (registration deadline July 24)
  • Bryan/College Station – August 2, 2017 (registration deadline July 24)
  • Lubbock – August 16, 2017 (registration deadline August 9)

Registration is free of charge but space is limited to 50 seats per location. Please register here for the location you wish to attend as soon as possible. Email Phil Lena or call 512-475-1336 with any questions. 

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