Reaching Millennials

A new study by ICBA and The Center for Generational Kinetics took an in-depth look at millennials and their banking behavior. This generation is of special importance to the banking industry, especially community banks, as it encompasses 80 million Americans ages 19-37 years old who are currently or will soon make important banking decisions and establish long-term habits. How can you capitalize on this?

Survey findings show that millennials are the most entrepreneurial generation to date with nearly 40 percent planning to start a business in the next two years. And they’re going to need a small business loan. The best part? These millennials want banks that don’t treat them like a number, find it important to have a personal relationship with customers and are locally owned. According to findings, below are recommendations to ensure community banks attract and retain millennial customers:

  • Make millennial customers feel like VIPs.
  • Adapt to millennials’ communication profile (think visual as in computer/tablet screens and embrace social media).
  • Create an entrepreneur advisory board.

Additionally, the survey uncovered that millennials require an online banking option and they’re not as interested in the number of ATMs as many don’t carry more than $5 on them at any given time. More information about millennials’ banking habits can be found in this recent story.

Honoring a Texas Trailblazer

Congressman Randy Neugebauer will receive the IBAT Trailblazer Award at a luncheon in Lubbock today.

The Trailblazer Award, which celebrates its 17th anniversary this year, provides special recognition to an elected official who is especially supportive of the independent community banking industry. Nominees must be a state or federal legislator, support and exemplify the entrepreneurial spirit of Texas, and exhibit the courage and independent spirit of Texas community bankers.

Neugebauer is a key member of the House Committee on Financial Services, chairing the Subcommittee on Housing and Insurance. He has been a tireless advocate for causes of importance to community banks and small businesses, especially in the wake of Dodd-Frank. In an opening statement given during a committee meeting on the four year anniversary of Dodd-Frank, Neugebauer summed up his estimation of the law’s legacy and impact, saying, “Regulatory burdens [brought about by Dodd-Frank] have an enormous impact on the health of our economy and have introduced a new type of risk to our economy called regulatory risk.”

“Randy ‘gets it.’ He understands our business and the challenges we face, and more importantly has a terrific grasp on the importance of community banking not only to our economy on a micro and macro basis, but the role we play in fulfilling the hopes and dreams of our customers,” said Steve Scurlock, Executive Vice President of IBAT. “The community banking industry and the constituents of Congressional District 19 are blessed to have this gentleman serving in Congress.”

Dell Sale!

Due to the popularity of Dell's September discount for IBAT members, the 40% off all Latitude computers deal has been extended for the month of October!  Whether you're in the market for a new computer or anything else from Dell, remember that IBAT members save an average of 31% on their orders from Dell.

Visit Dell's website or contact Bryan Horten, IBAT’s Strategic Account Manager, at 512-942-9120 to order. For the best price, remember to use the coupon codes below, as well as IBAT member ID link GS126658178, when placing your order. The offer is valid for IBAT member banks and bank employees. Please pass on this email, or download the flyer and post it somewhere in the bank where everyone can see it.

There are three ways to order:

  1. Visit Dell's IBAT member website;
  2. Call 1-800-757-8442 and mention IBAT members link #GS126658178; or
  3. For orders of more than 5 units, call Bryan Horten, IBAT's Strategic Account Manager, at 512-942-9120.

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

Happy Anniversary Bank Texas!

IBAT would like to congratulate Bank Texas Quitman on celebrating 100 years as a nationally chartered bank. Bank Texas has been an IBAT member since 1978!

The celebration will take place on Monday, October 20, 2014, with a reception from 1:30-3:30. Presentations will be at the beginning on the program. 

Baker Market Update: Oct. 20, 2014

From the flight deck: “The Captain has turned on the fasten-seat-belts sign. There could be some turbulence ahead.” Ya’ think? Volatility has been this week’s predominant theme for both credit and equity markets as a variety of factors have triggered massive rallies and sell-offs and then more rallies followed by the inevitable sell-off before rallying again. All of this back and forth resulted, at one point, in a yield below 2% for the Benchmark Ten Year Treasury Note during Thursday’s big rally. That, of course, was before this morning’s sell-off backed it up to around 2.20%. Well, 2.21%.

Read more in the Baker Market Update.

Congratulations to Boyce Brown

Congratulations to S. Boyce Brown, Chairman, President and Chief Executive Officer of Extraco Corporation in Waco, for being named to the Federal Reserve Board’s Community Depository Institutions Advisory Council (CDIAC).

CDIAC advises the Board on the economy, lending conditions and other issues of interest to community depository institutions. Members are selected from representatives of commercial banks, thrift institutions and credit unions serving on local advisory councils at the 12 Federal Reserve Banks. One member of each of the Reserve Bank councils serves on CDIAC, which meets twice a year with the Federal Reserve Board in Washington.

“The Fed has been responsive to a number of our concerns over the past several years, and we believe this Council plays a significant role in clarifying the impact of regulatory burden on community banks,” said Steve Scurlock, IBAT Executive Vice President. “Boyce brings much to the table, and he will provide the Fed Board of Governors and senior regulatory officials with a terrific perspective of the real world of main street community banking.”

Are You Ready?

Last week, the Consumer Financial Protection Bureau (CFPB) released its updated Readiness Guide for mortgage rules to include information on the new TILA-RESPA integrated disclosure rule. The guide is intended to help banks evaluate their readiness for complying with the mortgage rule changes.

The TILA-RESPA integrated disclosure rule is effective for transactions in which the creditor receives an application on or after August 1, 2015. The Bureau has an entire page of resources dedicated to the implementation of the rules, which includes:

If your team needs more information on compliance with new CFPB mortgage rules, the FDIC is hosting a free teleconference on October 22 to help bankers better understand ability to repay/qualified mortgage rules, as well as loan originator compensation rules.

Comment on FHLB Rule

In a comment letter filed with the Federal Housing Finance Agency late last month, IBAT called upon the agency to abandon a proposed requirement that each member of a Federal Home Loan Bank (FHLB) maintain at least 1% of its assets in long-term home mortgage loans and at least 10% of its assets in residential mortgage loans. The comment period, which had an original deadline of November 12, 2014, has been extended to January 12, 2015.

The letter, drafted by IBAT President and CEO Chris Williston, points to the onerous mortgage rules promulgated by the Consumer Financial Protection Bureau (CFPB) earlier this year, which have resulted in reduced mortgage lending activity by many community banks. Williston expressed concern that the CFPB rules, coupled with new threshold requirements for FHLB membership, “could disqualify many [community] banks.”

IBAT members are encouraged to use our letter as a guide in drafting your own response to the proposed rule. As always, it is also recommended that you include specific information regarding the potential impact on your bank in your comment letter. Please use this extension as an opportunity to share your thoughts about the proposed rule.

Week in Review: October 14, 2014

What kind of week was it? Well, it was a week like all weeks; filled with the events that alter and illuminate our times. We lost a little of our illumination in the wee hours Wednesday morning as the Earth’s shadow temporarily dimmed the reflected glow of the moon. Also dimming are Earth’s economic prospects, and that may be altering how the Fed views the road ahead for the domestic economy. This week’s release of September’s FOMC minutes reveals a growing concern that weak or negative growth in the EU and elsewhere could crimp our own potential.

Read more in the Baker Market Update.

Salary Survey Insights

The results of IBAT’s 2014 Community Bank Compensation and Benefits survey are now available to purchase and download. The full report includes compensation information on the twenty-five most requested job positions, as well as information on director pay and employee benefits.

Here are just a few of the data points highlighted in this year’s survey:

  • Outside directors were paid an average of $789 for attendance at a regular board meeting and $391 for a special board meeting.
  • Two- thirds of the responding banks experienced an increase in health insurance premiums of 0%-10%, while nearly one-third experienced increases of 11%-25%.
  • 42% of respondents in urban areas utilized signing bonuses for key new hires last year, compared to only 17% of rural respondents.

If you did not participate in the survey but are interest in purchasing the full report, please contact Christopher Williston to gain access.

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

IBAT Office Closure

In observance of Columbus Day, the IBAT office will be closed on Monday, October 13, 2014. 

The office will reopen for regular hours of operations on Tuesday, October 14.


Vehicle Registration Changes

The Texas Department of Motor Vehicles is offering a webinar that will provide an overview of the new “Two Steps, One Sticker” program—a result of House Bill 2305 enacted during the 83rd Legislative Session. This single sticker program requires verification of vehicle inspection prior to registration or renewal and will begin statewide on March 1, 2015.

This program overview will be helpful for those responsible for title and registration of vehicles in Texas, including submitting paperwork to the local county tax assessor-collector to record lien information.

Click here to register for the webinar on Thursday, October 16 from 1-3 p.m. 

Staff contact: Shannon Phillips, sphillips@ibat.org, 512-275-2221