IBAT News

Legislative Update


A variety of press reports have indicated that Chairman Jeb Hensarling appears willing to move S. 2155, a bill focused on community bank regulatory burden relief, separate from a package of bipartisan bills that he hopes to move forward. In a speech before the U.S. Chamber of Commerce late last week, the Chairman said he is open to passing this important legislation without changes so long as “other pathways” to advancing several bills passed on a bipartisan basis in the House exist. Further, the Trump administration has indicated that the President will sign the bill and is hopeful to do so before Memorial Day.

“We are obviously delighted with this news,” said IBAT President and CEO Chris Williston. “IBAT’s position on this issue has not changed and has been communicated clearly throughout the process. Our strong preference—shared by virtually all major banking and credit union trade groups, which is a rarity—is to get this important bill, without amendment, through the House of Representatives as soon as possible. We have also encouraged the Senate to take up and consider a package of bills that has passed the House on a bipartisan basis. S. 2155 is a fragile compromise and contains much of what we have been working on and hoping for throughout the past eight years. We are optimistic the House and Senate can come to a ‘win-win’ agreement to get this bill through the process.”

IBAT encourages continued communication with your respective members of Congress to express your strong support for S. 2155.

2018 Bank Operations Institue


Registration is now open for the 2018 Bank Operations Institute (BOI). This two-year banking school will take you on a week-long journey—October 7-12, 2018 in Dallas—that provides practical bank management and leadership strategies necessary for successful community bank operations.

The community banking focused curriculum offers strategic insight into banking technology, best practices, administrative processes and project management with an emphasis on practical, real-world banking issues. Hosted at the renowned Southwestern Graduate School of Banking at Southern Methodist University, BOI teaches students the skills required for effective and profitable bank operational management.

Baker Market Update: 4.30.18


The doctrine of relativism and the belief that there are no absolute truths seldom make their way into economic discussions, but maybe they should. Absolutely. Otherwise, we might not be able to feel good about this morning’s report that GDP grew at 2.3% in the first quarter and, of course, we want to feel good. We can do that by pointing to the pre-release estimate of just 2%, and relative to that, 2.3% looks pretty good. But, after all the tax-cut hubbub and consumer confidence that’s downright cocky, the Q1 results may be in need of a little absolution.

Read More in the Baker Market Update

Celebrations


Designed to recognize the best employers in the state, ‘The 100 Best Companies to Work for in Texas’ was conducted by Best Companies Group in partnership with the Texas Association of Business (TAB) and Texas Society for Human Resource Management. This program recognizes companies in the state that make it a priority to create a culture where employees love to come to work. Participation was open to companies with 15 or more employees. TAB will host an awards banquet in Austin next month to honor companies that made the list.

Congratulations to the following IBAT members that made the list:

  • Vista Bank (#12, medium company category, 100-499 employees)
  • Texas Bank and Trust (#23, medium company category)
  • Citizens National Bank (#27, medium company category)
  • Texan Bank (#11, small company category, 15-99 employees)
  • CalTech (#20, small company category)
  • SouthWest Bank (#23, small company category)

Cyber News


It probably doesn’t come as a surprise that last week U.S. and U.K. officials issued a joint technical alert warning of malicious cyber activity carried out by the Russian government. According to the Department of Homeland Security (DHS), FBI and U.K. National Cyber Security Centre, state-sponsored cyber actors are using compromised routers to conduct spoofing activity to support espionage, extract intellectual property and prepare for future attacks.

The joint alert offers mitigation strategies and encourages recipients who find signs of malicious cyber activity to alert DHS’s National Cybersecurity and Communications Integration Center.

Legislative


The Agriculture and Nutrition Act of 2018 (H.R. 2) passed the House Agriculture Committee by a 26-20 bipartisan vote. While the bill is still in draft form and expected to change significantly as it moves through Congress, Chairman Mike Conaway is committed to delivering a new bill before the current one expires on September 30.

One of the many benefits of this bill is that improving the current crop insurance program allows farmers and ranchers to obtain and repay bank loans.

Baker Market Update: 4.23.18


The Federal Reserve released the latest edition of its Beige Book this week and the good news is, it still goes with everything. Beige is the new black. The near-universal sentiment from all twelve Fed districts was that import tariffs do not go well with much of anything, and never will. Concerns about input prices and skilled labor shortages are becoming an oftrepeated refrain from all corners of the nation. Good news if you’re rooting for inflation, like the Fed. Not so good if yours is a business that lacks pricing power, like almost everybody’s. And if your business is a Starbucks, well, you’ve got other problems.

Read More in the Baker Market Update

In Remembrance


The community banking family is mourning the loss of Gayle Earls, who passed away early Friday morning after a valiant battle with cancer. Gayle profoundly touched the lives—personally and professionally—of many of us across Texas and the nation, and he will be missed. One of the many ways he served our industry was through his time on the IBAT board.

“Gayle was larger than life,” said Chris Williston, IBAT President and CEO. “He was not only an integral part of IBAT for decades, but was also a mentor and a friend to me and so many in this industry. He was indeed a legend, and I’m grateful to have had Gayle as part of my life.”

His obituary details a life well lived and provides information on the services this week celebrating Gayle’s life. The IBAT family extends our sincere condolences to Gayle’s family and many friends, and shares in grieving for a true friend of community banking.

  

Regulatory


The House passed legislation to exempt community banks with less than $10 billion in assets and less than five percent of their assets tied to trading from the Volcker Rule. The Volcker Rule Regulatory Harmonization Act (H.R. 4790) passed on a 300-104 vote with 78 Democrats joining the Republican majority to revise the ban enacted by the 2010 Dodd-Frank Act and originally proposed by former Fed Chairman Paul Volcker.

This legislation passed as the House prepares to take up community bank regulatory relief following Senate passage of S. 2155, which also contains the Volcker Rule provision.

Community Banking Month


To show that Friday the 13th isn’t a scary day and to recognize Community Banking Month, Texas First Bank came up with a fun way to celebrate. All client service professionals surprised their 13th customer of the day with $13, plus they had a little party. See photos of their Friday the 13th fun on IBAT’s Facebook page.

We love highlighting the many ways our banks celebrate Community Banking Month and show their customer appreciation. Please email Lindsey Gehrig with information (and photos, if you have them) or tag IBAT on your Facebook posts!

 

Mark Your Calendar


IBAT and ePayResources are pleased to once again offer ACH Boot Camp – Fundamentals Basic Training, June 5-6, 2018 at IBAT headquarters in Austin. If you’re ready to get “whipped into ACH shape,” this two-day program is for you. Whether you’re new to the ACH world or a seasoned veteran, you will walk away with a fundamentally sound understanding of how to win the battle for compliant, efficient ACH operations.

Register today for this interactive course and you will:

  • Learn how to identify ACH network participants;
  • Discover how an understanding of ACH terms and payment formats can expedite the resolution of customer inquiries;
  • Navigate the maze of the ACH Rules Book to find the information you need;
  • Decode an ACH entry to understand the message being received;
  • Chart the course of an ACH return entry;
  • Dig through the technical specifications of an ACH file; and

Identify and quickly troubleshoot errors. 

Baker Market Update: 4.16.18


Markets- Treasuries yields and equities alike drifted up this week volatility continued to decline from the mid-February run-up. Yields across the curve are up modestly (2Yr 2.36%, 10Yr 2.82%) and the 10s-2s spread remains tight around 50bps. This is the tightest spread this cycle, and to place in historical context- 50bps occurred only a few months away from the beginnings of the Great Recession in 2007. Given the current levels of rates, two more hikes of Fed Funds would invert the yield curve, which typically portends a recession. Of course, correlation does not imply causation but since 1950 given the Fed’s 13 hiking cycles, 10 landed ended in recession. June’s Fed meeting holds an 87% likelihood we’ll see a hike of 25 basis points and prospects for a third hike in 2018 (perhaps September) are hovering around 67%. On top of the two, more likely three rate hikes, the Fed also needs to unwind their balance sheet to the tune of about $600 billion a year. Analysts have indicated that this volume would translate to approximately 100bps tightening in short term rates.

Read More in the Baker Market Update

Help Pass S. 2155


It’s an important week for our industry as community bankers gather in Washington, D.C. for both ICBA’s Capital Summit and IBAT’s Annual Congressional Visit. This year’s visits are especially important as we await the House vote on the Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155). President Trump is ready to sign the bill into law, making a statement last week that passing S. 2155 “should be done fairly quickly.”

While the bill’s supporters include the President, it’s up to House members to keep the momentum going. Whether you’re in Washington or at home, we encourage you to take action by signing ICBA’s petition urging the House to provide community bankers with much-needed regulatory relief.

 

FinCEN


The Financial Crimes Enforcement Network (FinCEN) issued new frequently asked questions to assist covered financial institutions understand the scope of the Customer Due Diligence Requirements for Financial Institutions final rule published in May 2016. The rule requires banks to implement a formal customer due diligence program and identify the beneficial owners of legal entity customers by May 11, 2018. Access the FAQ here.

 

Register Now!


Succeeding in a highly competitive marketplace is top of mind for every community banker in our state. While there are plenty of training resources available for HR and operations professionals, most are not specific to community banking. IBAT recognized this need, as well as the unique role HR and operations staff play at community banks, and created the Human Resources and Operations Summit.

Join us April 24-25, 2018 at the Omni Mandalay in Irving for an overview of recent regulatory changes, litigation of interest and practical recommendations for implementation at community banks. Topics that will be addressed in depth include employment compliance priorities, HR audit, employee engagement strategies, hiring and nurturing generations, vendor management and more. Click here for additional information and to register.

Call for Entries


The call for entries is officially open for the 2018 Best of Community Banking (BOCB) awards program. Be on the lookout for the BOCB brochure and entry form to hit mailboxes this week. 2018 marks the 27th year of celebrating the outstanding accomplishments of IBAT members through this award.

If you haven’t heard the exciting news, we’ve made two big changes this year. First, entry is now free! While we always have good turnout, we hope this will encourage new banks to participate. We know budgets get tighter every year and want to showcase the work our members do in their banks and in their communities without it having to be a budget line item.

Second, we've added a category—bank culture. This will include employee recognition, training and development, and incentives, as well as internal marketing and anything focused on employees and developing bank culture. We know many member banks have employee-centric programs that fit this category and can’t wait to learn about them.

Mark your calendar for June 22, 2018, this year’s entry deadline. Please contact Lindsey Gehrig with any questions.

Security


Last week was not a good one for security. Under Armour announced that an estimated 150 million MyFitnessPal accounts were compromised in February. Affected information includes usernames, email addresses and passwords. According to reports, no credit card data was stolen.

The bad news continued for Saks Fifth Avenue and Lord &Taylor. More than five million credit card numbers were stolen with information from 125,000-plus cards already released on the dark web. According to cybersecurity experts, the breach began in May of last year and continued until the present. As the investigation is still in the early stages, it is unsure what other information may have been stolen.

IBAT is among a handful of witnesses invited to testify at an interim hearing tomorrow before the House Committee on Business and Industry. We have long advocated for consistent treatment (Gramm Leach Bliley standards) for all entities keeping sensitive customer data, prompt notification of both the affected customer and their financial institution, as well as restitution of costs resultant from a data breach, including card reissue and fraud loss reimbursement to any impacted financial institution.

Baker Market Update: 4.02.17


Who doesn’t remember The China Syndrome, that classic thriller from 1979? Some readers of a certain age may recall that the film’s star, Jack Lemmon, played the role of a nuclear power plant supervisor who narrowly avoids causing a radioactive catastrophe when a faulty gauge induces him to do exactly the wrong thing at exactly the wrong time. Has anyone else noticed that the late Mr. Lemmon looks a lot like the redoubtable Jerome Powell? 

Read More in the Baker Market Update

Celebration


Mark your calendars for a celebration that is 30 years in the making. As previously announced, IBAT’s President and CEO Chris Williston will step down from his position at the end of 2018, following 30 years of leadership at IBAT. The association has scheduled a retirement celebration in Williston’s honor to be held at Austin Country Club on Thursday, December 6, 2018.

Rooms have been secured at Hotel Granduca near Austin Country Club. Reservations are not open at this time, but we will let you know as soon as hotel accommodations can be secured!

In response to several requests from bank and associate members, IBAT is looking for hosts to help underwrite the event and celebrate Williston’s many achievements throughout the years. The cost to host is $1,000, and each host will be recognized at the event and in the IBAT magazine. Click here to download the host form. Help us celebrate and send off our fearless leader in true Williston style!

Accepting Applications


The CFPB is currently accepting applications for its Community Bank Advisory Council. The group provides relevant information about trends and practices, and ensures the Bureau hears directly from community bankers. Fifteen positions are currently available. If you or someone at your bank is interested, you can learn more and apply here.

IBAT member Ricky Leal has served a three-year term and had this to say about it: “It’s been a very good experience interacting with the Bureau and meeting awesome community bankers from across the country.”

Legal Ease


What specific information are we required to obtain for ‘beneficial owners’? Are we required to obtain copies of identification documents? Do we have to keep copies of identifying documents?

Learn the answer here. For this week's Legal Ease in a printable PDF, click here.

Contact Kelly Goulart (512-275-2231) or Janie Daniel (512-275-2221) if you have further questions or need clarification on the topic above.

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.

Baker Market Update: 3.26.18


When FDR once told the nation that the only thing to fear was fear itself, he left out the part about “fear itself” being plenty scary all on its own. And, “fear itself” is non-denominational. Doesn’t matter if it’s fear of a trade war, fear of a real war, or fear of the Fed; fear is scary. When investors become frightened, they sell the things that scare them, like stocks, and they buy the things that don’t scare them as much, like bonds. And that’s what happened yesterday after China announced plans to retaliate against U.S. tariffs on steel and aluminum with some tariffs of its own on things it imports from America; like pork, soybeans, and ginseng. Yes, China buys ginseng from the United States. Who knew? 

Read More in the Baker Market Update

IBAT's Magazine


Have you had a chance to open your print issue of the latest The Texas Independent Banker magazine? If not, good news – the March/April issue is now available online. If you missed the magazine’s new look, be sure to check it out. It will not disappoint.

This month’s cover feature delves into tax relief and what it means for community banks. Other articles include:

If you have article suggestions for future issues, please email Neil Ferguson to let him know.

Congratulations


The 2018 ICBA Convention is in the books, and it was historic for several reasons. A comprehensive regulatory relief bill (S. 2155) was passed as the convention gaveled in its opening session. And a new president and CEO, Rebeca Romero Rainey, was welcomed by the more than 3,000 bankers and industry partners in attendance.

“We are thrilled to work alongside Rebeca and the ICBA agenda,” said IBAT President and CEO Chris Williston. “She will be an outstanding advocate and ambassador for community banking.”

IBAT also congratulates retiring ICBA president and CEO Camden Fine on an extremely successful 15-year tenure at the helm of ICBA.

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