Legal Ease: May 25, 2017

Is a SAR subject to a subpoena? Our attorney has suggested that we refrain from filing a SAR on one individual because it may be discoverable.

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.

.Bank Update

fTLD Registry Services, operator of the .BANK domain, recently provided an update about domain usage and security requirement changes. .BANK continues to gain acceptance with an 18 percent increase in activated .BANK domain names in the first quarter of 2017.

With newly approved fTLD security requirement changes, the availability of resources to support .BANK domain name activation (including a new third-party provider program) and updated resources such as an implementation planning checklist, it’s easier and more secure to obtain a .BANK domain name.

For more information about recent changes or general .BANK inquiries, feel free to contact fTLD Registry Services Managing Director Craig Schwartz here or call 202-589-2532.

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

Dell Deals

During the month of May, Dell is celebrating Small Business Month with Double Discounts for IBAT member banks, bank employees and customers. Don't miss out! You can place your order online by clicking here. On average, IBAT members save 30% on orders by using the Dell/IBAT link number: GS126658178.

May special offers include:

  • Coupon Offer: DOUBLESERVER
    Additional 20% off select PowerEdge Servers $899+
  • Coupon Offer: DOUBLEDISCOUNT
    Additional 10% off select OptiPlex/Latitude
  • Coupon Offer: DOUBLEXPS
    Save Additional 10% off select XPS and Inspiron PCs (weeks 1-4 only)

Be sure to place your order before May 26! 

Staff contact: Curt Nelson, cnelson@ibat.org, 512-275-2240

Repealing the Durbin Amendment

Representative Ted Budd from North Carolina—a member of the Financial Services Committee—is attempting to gather signatures for a letter to House GOP leaders that would urge them to let members vote on repealing the Durbin Amendment. While language to repeal the debit card fee cap is included in Chairman Hensarling’s Financial CHOICE Act, which has broad GOP support, the swipe fee provision is dividing Republicans. Budd is an outspoken critic of the regulation.

On a related note, the Electronic Payments Coalition released a Durbin Amendment animated explainer video. The video highlights the fact that big-box retailers have pocketed $42 billion from the Durbin Amendment, while community banks and consumers are carrying the burden. Thanks to ICBA for sharing this video.

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

IBAT's Renewal with Diebold

We are pleased to announce IBAT’s renewal of our long-standing Diebold Nixdorf endorsement. A trusted community bank partner for more than 150 years, Diebold Nixdorf offers products and services that enrich the customer experience and ensure that IBAT member banks always utilize up-to-date and efficient technology to meet their customers’ needs. IBAT will continue to endorse physical security products as well as additional self-service products, including ATMs, interactive ATMs and in-lobby teller systems.

An added benefit included in the endorsement renewal is an enhanced service escalation process exclusively for IBAT members. Diebold Nixdorf has created a toll-free number and email address solely for IBAT members who need to escalate service. This process will occur if a service call is not responded to within eight hours, a technician is not able to resolve the issue after two attempts or the same terminal has more than four outages per year due to Diebold hardware or software.

“We are pleased to continue our successful relationship with Diebold Nixdorf,” said IBAT Services President Curt Nelson. “The products and services offered by Diebold Nixdorf will provide IBAT member banks with the solutions necessary to meet the changing demands of the marketplace.” 

Staff contact: Curt Nelson, cnelson@ibat.org, 512-275-2240

White Paper

Last week, ICBA delivered to the Treasury Department a comprehensive white paper to bolster economic growth through tiered community bank regulations. “Community Bank Regulatory Relief: A Roadmap to Economic Growth and Prosperity” lays out the economic benefits of community banks, the challenge of overregulation and its effect on industry consolidation, and regulatory solutions.

The white paper, which complements the Plan for Prosperity regulatory relief platform, offers solutions to:

  • Strengthen community bank mortgage lending through targeted reforms;
  • Ease commercial lending rules to mitigate the negative impact on small businesses and farms;
  • Reform punitive Basel III capital rules and refocus them on the largest financial firms;
  • Address growth-inhibiting burdens stemming from the Consumer Financial Protection Bureau, Bank Secrecy Act, quarterly call report and examination environment; and
  • Review the credit union industry’s tax and regulatory exemptions.

Community bankers, led by Texan Scott Heitkamp, met with Treasury officials on April 5, 2017 to detail many of these recommendations in response to President Trump’s recent executive order to review financial regulations.

In comments made before the Senate Banking Committee last week, Treasury Secretary Steven Mnuchin said that the Department’s first report to the President regarding financial regulations will focus on regulatory relief measures for community banks.  

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

Legislative Session

Last week was a very good one for IBAT’s proactive legislative agenda with several bills passing out of the second chamber and on to the Governor’s desk. A comprehensive update was sent yesterday in the latest edition of IBAT’s Legislative Insider

The last week or so has also been filled with some extraordinary drama, as the Senate and House pushed their respective agendas and priorities. The “buzz” around the Capitol seems to be centered on whether there will be a special session (or several). At this juncture, that appears to be contingent upon whether the two chambers and their leadership can agree upon a handful of issues, including the budget, bathroom access, property taxes and whether several state agencies will continue to exist. 

We at IBAT are certainly looking forward to sine die next Monday and are hopeful that logic and reason – if such are indeed possible, especially at this point in this process – will prevail on the big issues remaining to be addressed this week.

In the meantime, please 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

Meet our New Team Member

IBAT is pleased to welcome experienced technology officer Mike McCormack, Vice President of Information Management, to the team. He will oversee iMIS, IBAT’s new database. McCormack brings nearly 30 years of experience covering database administration, network and website management, and technology development.

He most recently served as chief technology officer of the American Society for Cell Biology. McCormack is a graduate of the University of Pittsburg. He and his wife moved to Austin from Maryland.

Please feel free to email him to say welcome. 

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

Baker Market Update: May 22, 2017

Geopolitical risks are something that investors have always had to deal with. The concern is usually focused upon events that occur on foreign shores. This week, the shores in question are the banks of the Potomac.

Controversies swirling around the administration continue to build toward an uncertain crescendo amid growing perceptions that a variety of entanglements may further sidetrack President Trump’s ambitious agenda to breathe life into what some see as a flagging economy.

Read More in the Baker Market Update

Fun Fact Friday: May 19, 2017

Dr Pepper was invented in Waco in 1885. The Dublin Dr Pepper, 85 miles west of Waco, still uses pure imperial cane sugar in its product. There is no period after the Dr in Dr Pepper.


Consumer Tips

IBAT's May Consumer Tips article looks at different ways to help pay for college. The cost of college rises every year and is overwhelming for many families. However, a four-year degree is more important than ever in today’s competitive workforce. These tips look at various funding options that can help make college a reality for many students.

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

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

Legal Ease: May 18, 2017

Are we required to have flood insurance on inventory that is our only collateral but housed in a building that is located in a Special Flood Hazard Area (SFHA)?

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.

2017 Bankers Hall of Fame

Five community bankers were recently named to the 2017 Texas Bankers Hall of Fame at Sam Houston State University (SHSU) in Huntsville. The following individuals were recognized for their significant contributions to the banking industry:

  • B.A. Donelson, The First State Bank of Stratford
  • George Martinez, Sterling Bank and Allegiance Bank, Houston
  • Milton S. McGee, Jr., Citizens National Bank, Henderson
  • Jack Griggs, Southwestern Bancorp, Inc., Sanderson and Texas Heritage Bank, San Antonio
  • The late Milton L. Payne, First State Bank & Trust Co., Carthage

From l to r: Jim Payne accepting for the late Milton L. Payne; Milton S. McGee, Jr.;
B.A. Donelson; George Martinez and Jack Griggs are officially inducted into
the Texas Bankers Hall of Fame.


Donelson, Martinez and McGee are all former IBAT Chairmen and held many other IBAT leadership positions throughout their long community banking careers.

The Texas Bankers Hall of Fame was established by the Smith-Hutson Endowed Chair of Banking at SHSU to honor bankers who have served their industry, community and state. The honorees were inducted at the Fifth Annual Texas Bankers Hall of Fame Gala at SHSU on April 27, 2017. Congratulations to these distinguished bankers, and thank you for the vital role you play in the Texas community banking industry.

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

Pressure Builds to Reverse HMDA

The Consumer Financial Protection Bureau (CFPB) is facing increasing calls to modify—or rescind entirely—the requirements to collect and report expanded HMDA data elements added, in part, under the Dodd-Frank Act. The Community Lending Enhancement and Regulatory Relief (CLEARR) Act introduced in late April by Rep. Blaine Luetkemeyer would repeal Dodd-Frank provisions that require the collection and reporting of certain loan data information.

Last week, the stand-alone Homeowner Information Privacy Protection Act was introduced by Reps. Randy Hultgren and Andy Barr. It would effectively accomplish the same goal by granting a one-year delay for reporting the new data while at the same time calling for additional studies. 

IBAT has consistently opposed the expansion of reporting under the CFPB HMDA rule. In a recent comment letter submitted on behalf of IBAT members, IBAT General Counsel Karen Neeley concluded with this persuasive statement:

“Only 10 of the 25 proposed data fields were directly mandated by Congress in the Dodd-Frank Act (Section 1094). We believe the CFPB has not provided any compelling evidence that the collection and disclosure of the additional data 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. We understand that the statutorily identified fields should be added to HMDA reporting; however, we believe the additional fields create unsupportable costs and privacy risks for consumers.”

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

State Legislative Tidbits

We’re in the final two weeks of the 85th Texas Legislative Session, and all is pretty normal at the moment. The Senate and House are not playing particularly well together, “offended” groups are going “nuclear” and killing bills indiscriminately, tempers are flaring, and we are hoping that several of our bills currently teed up will move through the final stages to become law in the coming days. 

As has been our practice throughout the Session, we plan to send a full recap next Monday with a new edition of IBAT’s Legislative Insider.

We are also pleased to announce that IBAT's popular end-of-session webinar will be held Tuesday, June 27, 10-11:30 a.m. Registration is now open. We encourage you and your staff to listen in as we go over the good, the bad and the ugly from the 85th Texas Legislative Session.

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

Williston Retirement Update

In case you missed Friday’s email from IBAT Chair Darla Rooke, she announced that IBAT President and CEO Chris Williston plans to delay his retirement for at least one year to maintain the momentum and avoid disruption when the prospect of meaningful regulatory relief is more likely than ever before.

Williston was originally scheduled to relinquish his President and CEO title at the end of the 2017 calendar year and stay on with IBAT through mid-year 2018 to allow for the transition to new leadership. With this news, the IBAT Executive Committee has dissolved its search committee and will begin anew at the appropriate time.

It’s time now to ensure that each and every one of us is focused on doing everything we can to get regulatory relief to the finish line.

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

Baker Market Update: May 15, 2017

A reminder to all:  this coming Sunday is Mother’s Day. So, if you haven’t already done it, go out and buy something nice for your Mother. And while you’re at it, get a little something for yourself; the economy needs it. The much-anticipated Retail Sales report from the Census Bureau came out this morning and it was, in a word, tepid. So, don’t be tepid when selecting a gift for the person who brought you into this world.

Read More in the Baker Market Update