the prospects for banking reform at this stage in the presidential race

Transcription

THE PROSPECTS FOR BANKING REFORM AT THIS STAGE IN THE PRESIDENTIAL RACE
FTN
FINANCIAL
PORTFOLIO ADVISORS
Contents
8
12
20
V O LU M E 1 0 5 • N O. 6 • J U N E 2 0 1 6
30
Features
Columns
8
4
Telling stories
Message from the President
Is there really a vacation for our bankers?
Meet TBA Chairman and storyteller Jim Purcell
6
12 Inspire. Innovate. Engage.
Chairman’s Forum
A glimpse into the coming year
132nd Annual Convention brings bankers together in Grapevine
18 Meet your 2016-17 Texas Bankers
Association Board of Directors
20 50-Year Bankers honored
32
34
Your Advocate
The prospects for banking reform at this
stage in the presidential race
Texas Bankers Foundation celebrates careers of 11 honorees
35
30 Community Banker Spotlight
Banker to Banker
A stellar evening at the Texas Bankers
Hall of Fame Gala
Compliance Hotline
The CFPB proposes new ban
on mandatory arbitration clauses
Bringing a vision to community banking in San Antonio
Kenneth L. Burgess, Jr.
Immediate Past Chair
Departments
Dean O. Bass
Community Bankers Council Chair
22 News & Trends
Charlotte M. Rasche
Regional Bankers Council Chair
28 Partner Focus
J. Mark Riebe
Government Relations Council Chair
Jim R. Purcell
Chairman
EDITORIAL OFFICES:
203 West 10th Street,
Austin, Texas 78701-2388
512-472-8388
fax 512-473-2560
www.texasbankers.com
James D. Dreibelbis
Vice Chair
Gary Claxton
Treasurer
Olivia Carmichael Solis
Editor
Katherine Kolstedt
Art Director
Jocelyn Carby
Associate Editor
Jamie Tanner
Assistant Editor
@TEXASBANKERS
J. Eric T. Sandberg Jr.
TBA President/CEO
ADVERTISING OFFICES:
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36 Bank People
37 Classifieds
38 Banking Bytes
FIND US ON SOCIAL MEDIA
TEXAS BANKING • JUNE 2016
3
TEXAS BANKERS ASSOCIATION
BOARD OF DIRECTORS
Eddie Aldrete, International Bank of Commerce, San Antonio
ERICSANDBERG
TBA PRESIDENT & CEO
MESSAGE FROM THE PRESIDENT
R. Mark Bain, First United Bank, Lubbock
Dean O. Bass, Spirit of Texas Bank, SSB, Conroe
Micah C. Boles, First National Bank of Bosque County, Valley Mills
Kenneth L. Burgess, Jr., FirstCapital Bank of Texas, N.A., Midland
Is there really a vacation
for our bankers?
w
While Congress only has 100 days of work scheduled for the 2016
calendar, it is my guess that you have closer to 300 days of work
scheduled for this year.
Margins are getting smaller, expense ratios are under increased
scrutiny, compliance issues seem to be growing, competition from
lightly regulated industries (fintech, credit unions, farm credit) is
impacting your customers, almost daily changes in technology are
changing the way banks do business and your staff is very busy.
What do we as an industry do?
Issues applicable to TBA may be slightly different, but nevertheless for your trade association to remain relevant for you, we must
keep up with or ahead of these changes.
Here are just a few examples of what we anticipate at the state
level next year: changes to home equity and construction lien lending
laws, a deficit in the state budget that must be addressed — and we
will be a part of the discussion — and a change in the insurance coverages for hail and windstorm.
This is just a handful of legislative issues and, hopefully, when you
are reading this you will be planning on attending one of the Texas
Tour stops, which are scheduled to start June 13. Additionally, at
these gatherings we hope you will provide input as to issues of interest for the upcoming Texas legislative session.
Our insurance agency has engaged another professional staff
person, Richard Strynadka, to call on banks. Richard has been writing insurance for bankers for more than 20 years and brings that
experience to complement our agency.
And I am sure you have heard or read about the new AD&D policy,
which is FREE to members. If you have not, please contact any of us
at TBA and we will forward you the information.
You hear so much about federal legislation that I will not review it
at this time, but be aware that the regulatory issues brought by FASB,
CFPB, etc. are the drivers causing worker fatigue and increased
stress in the workplace. We continue to work with the ABA on these
technical issues.
Compliance Alliance is adding new customers weekly! One might
ask why, but the answer is obvious: Bank staff is inundated with new
challenges in this area on a regular basis. The staff at Compliance
Alliance continues to grow and, like you, they are constantly reviewing new requirements to make sure you have the latest information.
So, while summer is upon us and the election season is in full gear,
bankers receive very little respite from either the heat or the stress.
Rest assured, your TBA staff is here to assist and hopefully provide
you some peace of mind when you do take that needed vacation.
4
Gary Claxton, Panola National Bank, Carthage
R. Terry Cullen, CTFA, First National Bank in Port Lavaca
Morris E. DeFriend, The Farmers State Bank, Groesbeck
Greg Dodds, Texas Bank, Brownwood
James D. Dreibelbis, Woodforest National Bank, The Woodlands
David A. Emerick, JPMorgan Chase Bank, NA, Austin
Robert R. Franklin, Jr., CommunityBank of Texas, N.A., Houston
Jordan Gresham, The First State Bank, Louise
Jesse Lee Haggard, III, The First National Bank of Trinity
John L. Holt, Jr., NexBank Capital, Inc., Dallas
Michael R. Hoskins, Texas Advantage Community Bank, NA, Alvin
Robert Hulsey, American National Bank of Texas, Terrell
Thad W. Jennings, Community Bank & Trust, Waco
Roger Kalina, Texas Financial Bank, Big Lake
Steven S. Mack, Texas Heritage Bank, Boerne
Randy McCurley, The First State Bank of Mobeetie
Michael O’Rourke, TIB-The Independent BankersBank, Farmers Branch
David Osborn, WestStar Bank, El Paso
Jim R. Purcell, The State National Bank, Big Spring
Joe Quiroga, Texas National Bank, Edinburg
Charlotte M. Rasche, Prosperity Bank, Sugar Land
J. Mark Riebe, Texas Bank Financial, Weatherford
Raymond H. Rust, III, Commercial Bank of Texas, N.A., Nacogdoches
J. Eric T. Sandberg, Jr., Texas Bankers Association, Austin
Reave J. Scott, Coleman County State Bank, Abilene
Steve Stapp, R Bank, Round Rock
Roy D. Thompson, Texas Hill Country Bank, Kerrville
Kathy Tittle, Community Bank, Longview
Gary P. VanDeventer, Post Oak Bank, N.A., Liberty
Don R. Waters, Liberty Bank, Hurst
Cee Yager, Worthington National Bank, Fort Worth
Guy W. Young, First National Bank, Quitaque
Expressed opinions in any signed article of Texas Banking are those
of the author and do not necessarily reflect the viewpoint of editors or
the Texas Bankers Association on the subject. While this magazine
makes reasonable efforts to establish the integrity of advertisers, it
does not endorse advertised products or services unless specifically
so stated. Texas Banking © 2016, Texas Bankers Association. Articles
may not be reproduced or reprinted without the expressed written permission of the Texas Bankers Association.
Texas Banking (ISSN 0885-6907) is published monthly by the Texas
Bankers Association, 203 W. 10th St., Austin TX 78701-2388.
Periodicals Postage Paid at Austin, TX and at additional mailing
offices. POSTMASTER: Send address changes to Texas Banking,
Texas Bankers Association, 203 W. 10th St., Austin TX 78701-2388.
Annual dues of TBA members include $20 for each one-year subscription to Texas Banking. Annual rates for additional subscriptions
are $48 for member banks and $96 for non-members.
DATE
YOUR TBA LEGISLATIVE TEAM
CITY
SESSION
June 13 McAllen
Breakfast
June 13 Corpus Christi
Lunch
June 13 Victoria
Reception
June 14 San Angelo
Breakfast
June 14 Abilene
Lunch
June 14 Midland
Reception
June 15 Lubbock
Breakfast
June 15 Amarillo
Lunch
June 15 Fort Worth
Reception
June 16 Dallas
Breakfast
June 16 Sugar Land
Lunch
June 16 The Woodlands Reception
Eric Sandberg
John Heasley
Celeste Embrey
June 17 Lufkin
Breakfast
June 17 Kilgore
Lunch
June 20 San Antonio
Lunch
June 21 Waco
Lunch
June 22 Austin
Lunch
Join your TBA Legislative Team to get an update on federal
issues and the upcoming state legislative session.
JIMPURCELL
TBA CHAIRMAN
CHAIRMAN’S FORUM
A glimpse into the coming year
b
Back when I was a young man and
starting out in the banking industry
veteran bankers offered advice and
gave me a glimpse of what to expect
in my career. Likewise, I was offered
advice and words of wisdom before I
married Vickie. I was told what to
expect from the relationship and how
to make a marriage work.
Many years later, as I reflect on
their counsel, I’ve found that both
marriage and banking were pretty
much like they said they would be.
But they weren’t what I expected at
the time. Until you live through these
experiences, you don’t realize all of
the implications. Life is full of surprises, victories and defeats.
Recently, several TBA Past
Chairmen approached me and told
me what to expect from my year as
chairman: Your term will go by
quickly; it will be an experience of a
lifetime; and you’ll meet many new
bankers, just to name a few. But I’m
sure, when my term is over, it won’t
be exactly as I had envisioned.
The term begins with a whirlwind
tour of the state. The TBA Texas Tour
starts with breakfast in McAllen on
June 13 and ends after visiting 17
different locations. The objective of
the Texas Tour is to share what is
going on in Washington, D.C., and
discuss potential legislation coming
up in Austin next year.
While this is valuable information,
it’s equally important to hear opinions
from the different bankers who attend
these meetings. We make better decisions when we have all of the facts
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and, by visiting with a broad range of
bankers in different settings, more
people can participate and voice their
concerns and ideas of how to make
TBA and our industry better.
The upcoming Texas Legislative
Session will be important from a protections standpoint for banking.
There will be a tremendous amount
The opportunity
we have to blend
the wisdom of the
mature members
with the energy and
ideas of the new
generation of bankers
is one that needs
to be acted upon.
of new Senate and House members.
It’s important that we make contact
and form relationships with them
prior to the start of the session. That
way, when a call is needed in favor of
or opposition to pending legislation,
our elected officials will already know
us, our banks and communities.
In addition, we will hold meetings
of the TBA Board of Directors,
Community Bankers Council,
Government Relations Council and
MDP (Management Development
Program). The past TBA Chairmen
continue to be involved in TBA so
they can better our industry.
The opportunity we have to blend
the wisdom of the mature members
with the energy and ideas of the new
generation of bankers is one that
needs to be acted upon. The talent
pool we have needs to continue to be
active, from the new bankers to the
past board or committee members.
There will be TBA’s major conferences: CFO, Senior Management
Summit, Security & Risk
Management, Technology, HR &
Operations and Ag Conferences. This
will be an opportunity for your bank to
participate and strengthen your
organization. It will give me the
chance to meet all different levels of
bankers in the state — operations,
lending and frontline staff — not just
the ones who attend Convention. Not
only will I get to meet these bankers
and find out what is most important to
them, but I’ll be able to see potential
leaders develop their skills to promote
our industry for years to come.
This summer is already filled with
meetings, including ABA’s
Leadership Conference and Central
States — both important learning
opportunities. We live in a busy
world that takes a lot of effort to stay
engaged. If we look back at successful endeavors, we will see that they
involved and engaged a focused
group. I look forward to all of the surprises the year may bring to our
dedicated members.
TELLING STORIES
Meet TBA Chairman and storyteller Jim Purcell
By Olivia Carmichael Solis
In 2012, a small bank in Big Spring — population 28,000
— did what no bank had dared to do. The State National
Bank filed a lawsuit challenging the constitutionality of the
Consumer Financial Protection Bureau and its unlimited
power and excessive regulations.
And, although a judge threw out the lawsuit in 2013, the U.S.
Court of Appeals for the District of Columbia Circuit unanimously ruled that the bank had legal standing to proceed.
To understand how a small bank located in the crossroads
of West Texas challenged the bureaucracy you have to know
a little bit about the bank and its chairman of the board,
Opening day at State National Bank of Big Spring.
8
Jim Purcell, who was recently
elected to serve as chairman of the
Texas Bankers Association.
The motto of the 107-year-old
bank is “Time-tried and panic-tested.”
It’s been through depressions and
droughts. It is one of seven banks
and eight credit unions in Big Spring.
It was also the only bank in Big
Spring to reopen after the Bank
Holiday of 1933. Purcell is proud of
the fact that no employees were laid
off during that time, although everyone — from the president on down
— received a 50 percent cut in pay.
“Tough times required tough decisions,” Purcell explains. “But we have
@TEXASBANKERS
to survive and the community has to
have a bank.”
Purcell, who has been at the helm
of State National Bank since 1988,
believes in the power of hope. It’s
what makes customers repay their
loans. It’s what keeps banks in business, even when regulations pile up
and the burdens seem insurmountable.
“In spite of the regulations, in
spite of the economy, in spite of
Congress, in spite of competition, we
must continue our journey,” he says.
“We are the lifelines of the economy
and our communities. We, like our
customers, can never lose hope.”
Telling stories
Purcell also believes in the power of
collecting and telling stories. “It is
how we inspire the success of others
— by our actions,” he says. “It is why
we are trusted by our customers.”
Purcell starts with a personal
story: “One Saturday, I went to the
bank with one of my grandchildren.
While I was reviewing some reports,
my grandchild, out of the blue, says,
‘When I grow up Poppy I am going
to be a banker.’ I asked, ‘Why do you
want to be a banker?’ ‘Because I
want to help people like you do.’”
Although the banking industry is
very influential in the communities it
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serves, bankers are hesitant to tell
others about the good they do. “Texas
bankers are involved in so many civic
and community activities that we don’t
have time to list all of them,” he says.
“We are hesitant to toot our horn
about the influence we have on the
success of our communities.”
For his Convention Chairman’s
Address, Purcell solicited stories from
the TBA Board of Directors. The stories he related dealt with bankers
helping the elderly avoid fraud and
abuse. One was about a customer on
his deathbed who requested that his
banker visit him so he could thank
him for his advice and ask that he
guide his wife in the family business.
Two stories were about customers
who needed money but, due to
extraordinary circumstances, were
not available to sign notes. In the first
instance, a banker helped a customer purchase a pickup so he could
get home after 9/11; in the second, a
banker cut cashier’s checks to pay
his customer’s subcontractors when
he was stuck in an airport.
In another story, a banker asked
his grandfather what he really loved
about banking. He replied, “Son, look
around. Look at the garments we
wear, look outside at all the buildings
and look at the electronics, the comforts of life, the car we are in and the
services we enjoy. Somebody had an
idea, and they went to their bank and
their banker believed in them.”
There was one story about a man
who needed $60,000 to build a mid-
“We are the
lifelines of the
economy and our
communities.
We, like our
customers,
can never
lose hope.”
10
Jim Purcell enjoys a light moment during questioning by Congressman Barney Frank in 2012. Purcell testified before
the House Oversight and Investigations Subcommittee on Dodd-Frank’s impact on community banks.
size boat that could withstand the
rough waters of the Gulf of Mexico.
His English was poor and he had no
credit history. Based on the man’s
reputation as a hard worker and the
pleading of his young daughter, the
bank made the loan. Two decades
later, the family owns eight gulf
shrimp trawlers, a fish dock and an
ice-and-fuel house.
These are the stories Purcell
believes must be told, especially
when engaging with elected officials.
The accidental banker
Purcell’s story begins on a remote
ranch in East-Central New Mexico,
where his early interests leaned
toward running cattle and farming.
The school bus ride was about 50
miles to and from school, with only a
couple miles of paved roads.
Purcell met Vickie, his wife of 42
years, on a blind date in 1973 in Las
Cruces, N.M. They were both attending different colleges at the time: he
was at New Mexico State University in
Las Cruces, and she was at Eastern
New Mexico University. Vickie had
been staying with her brother — an
acquaintance of Purcell’s — during
her spring break. By December of
that year, the couple had married.
“There are two things I swore I
would never do: go out with a redhead and on a blind date,” he
laughs. “Four kids and 11 grandchildren later, here we are.”
After graduating from college,
Purcell returned to his roots and continued farming and ranching. After
tearing up his knee, however, his
doctor told him to stay off tractors
and horses for a year. With a degree
in ag business and finance, Purcell
set out to find a job. “Did I know anything about banking?” Purcell asks.
“Not really, but I knew people
needed to borrow money, so I
thought I could be an ag lender.”
He started his banking career in
1975 in the bookkeeping department
at Citizens State Bank in Dalhart —
one of the coldest places in Texas,
he recalls. His heart was in lending,
though, so the bank president
encouraged him to get his feet wet
by collecting charged-off loans. “If
those could be collected, the basis
for lending money would have been
learned,” he recalls.
Purcell made contact with his customers on evenings and weekends,
requesting only the payments they
could afford and on schedules they
could adhere to. Within six months,
with occasional reminders, the bank
collected several hundred thousand
dollars of charged off loans. And
Purcell learned a valuable lesson:
“You can’t let your customers lose
hope. If they do, they won’t pay you
back.”
Five and a half years later, Purcell
made the move to Farmers State
Bank in Hart as president. After that,
he helped charter a de novo, North
Texas Bank and Trust, in Gainesville.
In 1988, he was asked to make the
move to Big Spring to serve as president of State National Bank by the
founder’s grandson, John Currie.
Although he was hesitant to move to
Big Spring, the persistence and kindness shown by Currie to Purcell made
him reconsider. Purcell found more
than a job at Big Spring — he found a
second family. “It’s a family bank, and
Mr. Currie has treated me like a son.”
The uniqueness of Big Spring
The Purcells have embraced the
community of Big Spring, which is in
a rocky gorge between two high
foothills of the Caprock escarpment
in West Texas. It is a unique area
topographically that is located partly
in the Permian Basin, South Plains
and Edwards Plateau.
The area’s economy depends on
cotton farming, oil and gas activity
and some cattle ranching, although
recent droughts have diminished the
number of operations. Big Spring
also depends on income from a veterans hospital, junior college, oil and
gas refinery, state hospital and minimum and medium-level prisons.
The oil and gas refinery, which
employs many entrepreneurial engineers, originates a number of
patents.
With six other banks and eight
credit unions in town, competition is
@TEXASBANKERS
Purcell enjoys “hunting” with his camera.
fierce. But competition has been
encouraged by the bank since its
founder purchased a bank building
from a competitor during the Great
Depression so the owners could
have money to open a competing
bank. “Mr. Currie thought the community was better with two banks
than just one,” Purcell explains.
“Competition is good because it
brings out the best in you and will
keep you on track.”
Telling stories with photos
Several years ago, Purcell acquired a
new hobby — photography. He was
invited as a community representative to travel to Israel. While there, he
documented his travels with a digital
camera he had recently purchased.
He was quickly hooked on photography and has since documented
several more trips, including
Southern England and Africa, where
he “hunted” with his camera.
Although his photographs have
appeared in a book and several magazines, it is, perhaps, the creativity of
his yearly Christmas cards, picturing
his growing number of grandchildren,
that attract the most attention.
The Purcells have four children
and 11 grandchildren.
• Cody, an athletic trainer, who lives
in Mansfield with his wife, Reka and
two children, Logan and Lakyn.
• Lance, who works in banking
technology and lives in Amarillo
with his wife Carolina and daughter, Catalina.
• Brandi Wilde, a speech pathologist, who lives in Graham with her
husband, Stuart, and children,
Madilyn, Macee, Cooper, Coleman
and Casen.
• John, a pipeline inspector and
entrepreneur, who lives in Big
Spring with his wife, Stacy, and
children, Tanner, Kaitlyn and
Karter.
“All of our children do something
in service-related fields, whether it’s
coaching or raising money for the
YMCA,” he says. “Whatever their
involvement, all of them help someone else.”
The Purcell family includes four children and 11 grandchildren.
11
132nd Annual Convention brings
bankers together in Grapevine
The speakers at the 132nd Annual
Convention, held May 4-6 at the
Gaylord Texan in Grapevine, kept to
the theme of “Inspire. Innovate.
Engage.” with topics ranging from
technological innovations to igniting
leadership, fighting cyber attacks
and grassroots engagement.
Congressman Mike Rogers, who
served as chairman of the House
Intelligence Committee (2011-2015),
warned attendees during his keynote
address that cyber crime is the
newest strategic challenge for the
United States.
In 2008, Russia fundamentally
changed the way we looked at cyber
warfare in America, Rogers said. The
small Baltic state of Estonia experienced a series of cyber attacks at
the hands of the Russians in retaliation for removing a Soviet war
monument. Since then, there have
been a series of attacks from nation
states to intimidate political opponents or punish enemies.
“We had never seen nation states
use technology to punish international companies,” Rogers said in
reference to the 2014 hacking of the
Eric Sandberg delivers his state-of-the-association
The MarketPlace was the place to be for cutting-edge products and services.
address.
TBA presents a $250,000 check for a matching endowment for the Commercial Banking Program at the Mays
Business School at Texas A&M University. The presentation included, left to right, Eli Jones, dean; TBA President Eric
Sandberg; Dr. James Kolari, director, Robert Messer of American National Bank Terrell, chairman of the advisory
TBA’s Kimberly Pargin helps Bill Goetz register.
12
board; and Member Relations Officer Donny Palmer.
cars, HVAC systems, airplane
controls and air traffic controllers.
Anything that is connected to the
Internet has vulnerabilities, he
cautioned.
Las Vegas Sands. Iranian hackers
broke into the casino and destroyed
data after owner Sheldon Adelson
gave a speech saying Iran must not
get a nuclear weapon.
North Korea’s high profile attack of
Sony Pictures employed a wiper virus
that took out the operating systems.
Before that, the hackers stole internal
emails, movie scripts and memos.
“The ‘Internet of Things’ is
coming, and 28 billion things are
going to be connected to the
Internet,” Rogers warned.
He added that there is no limit to
what terrorists are getting ready to
do — from disrupting our ability to
communicate via satellites to hacking applications that control
pacemakers, Internet-connected
AmyK helps bankers “ignite leadership.”
ABA President Rob Nichols discusses the association’s strategy.
Other speakers included:
• AmyK, who focused on “Igniting
Leadership,” offered strategies to
improve individuals’ performance
Gerald Stowers of Execupay presents at the
Enjoying the Taste of Texas reception are, left to right, Wes Hoskins, Charlotte Rasche and Bob Dowdell.
@TEXASBANKERS
MarketPlace Demo Theater.
13
and get them invested in the company culture. She provided a
handout for aligning brilliance that
included: determining individual
and collective strengths, pointing
out what’s working, outlining objectives, figuring out payoffs, relating
concerns and making tweaks to
meet and exceed objectives.
• David Wasserman, U.S. House
editor for The Cook Political
Report, who discussed the “2016
Election Road Map.” Because of
their low favorability ratings,
Donald Trump (24 percent favorable) and Hillary Clinton (32
percent favorable) should be
losing by a landslide. Instead,
we’re in the midst of the “Great
Paradox of 2016.” Several factors
An attendee tests his strength in the MarketPlace.
are contributing to this unusual
election, including the decentralization of news and information,
polarization of both parties, badly
divided opposition and record distrust of Congress.
• Lee Wetherington, director of
Strategic Insight for Jack Henry &
Associates, who focused on “The
Innovation Question: What, How &
Ken Burgess delivers his Chairman’s Address.
Jim DeMasi discusses the economic and interest rate
outlook in a breakout session.
Michael Brown presents the Texas economic outlook.
Shane Ferrell identifies technology trends.
Lee Wetherington focuses on “The Innovation Question:
What, How & Why Now?”
14
Pictured at the “Taste of Texas” reception are, left to right, Patti Schnell, Paula Cooper, Paul Moxley and Paula Moxley.
Why Now?” Banks, perceived as
“laggards in innovation,” must be
willing to “fail fast and cheap in
the exploration of reasonable
ideas and opportunities.” “2016 is
the year of ‘fintegration’ — the
rebundling of banking, with banks
coming together with fintechs and
bringing together a better user
experience for customers,”
Wetherington said.
• A panel comprised of TBA’s Eric
Sandberg, John Heasley and
Celeste Embrey that highlighted
the importance of grassroots
engagement. Attendees viewed a
video from Texas Rep. Chris
Paddie on the importance of relationships between bankers and
elected officials, and bankers in
the audience related stories of
their grassroots experiences.
• American Bankers Association
President Rob Nichols, who discussed the association’s strategy
for candidate donations: “If we
find a champion for pro banking
policy, we will max out contributions to that person. If we find a
member of Congress who sup-
Congressman Mike Rogers delivers the keynote address.
David Wasserman discusses the “paradox of the 2016 election.”
Joel Updegraff evaluates key asset-liability
Greg Schaffer highlights cybersecurity threats and how
management trends.
to manage them.
Barret Howell tells bankers how to market to millennials.
Gathering in the MarketPlace are, left to right, Banking Commissioner Charles Cooper, Mike Mauldin, Jim Goldston
The Money Booth is always a popular MarketPlace
and Ken Burgess.
attraction.
@TEXASBANKERS
15
ports anti-bank policy, we will find
his challenger and max out [contributions] to that person.”
In addition to the regular program,
a number of breakout sessions dealt
with important topics, including the
Texas economic outlook, marketing
to millennials, cybersecurity, assetliability management, technology
trends and the interest rate outlook.
Recognizing award recipients
The Thursday and Friday luncheons
honored the Cornerstone and Leaders
in Financial Education winners and the
50-Year Bankers who have served their
industry for a half century or more.
For the second year, the Texas
Bankers Foundation donated
$20,000 to the Homes4Wounded
Heroes program of the Military
Warriors Support Foundation toward
three years of family and financial
mentorship.
This year, the recipient was
Retired U.S. Army Specialist Richard
Carson. John Gavin, Wells Fargo
regional president, presented Carson
with a ceremonial key to his home,
which was donated by Wells Fargo.
TBA Chairman Ken Burgess, on
behalf of TBA, presented the
Commercial Banking Program at the
Dean Bass, Gary Claxton and Andy Smith discuss their grassroots accomplishments during TBA’s Grassroots Engagement panel.
TBA Chairman Jim Purcell (left) hands a Chairman’s Plaque to outgoing Chairman Ken Burgess.
Jim Purcell delivers his Chairman’s Address.
Scott Daugherty accepts the Chairman’s Award on
behalf of Compliance Alliance from Ken Burgess.
16
Dick Amis, John Brockman and Pat Bassano visit at the “Taste of Texas” reception.
Mays Business School at Texas A&M
University with a $250,000 check for
a matching endowment for the program.
Burgess, as part of his last official
duty, presented a Chairman’s Award
to the staff of Compliance Alliance
for their role in helping the banking
industry cope with the onslaught of
regulations being written as a result
of Dodd-Frank.
Changing of the guard
The Annual Convention is the time
when a new slate of officers is
elected and the new Board of
Directors takes office. The newly
elected officers include Chairman Jim
Purcell, chairman and CEO of The
State National Bank in Big Spring;
Vice Chair Jay Dreibelbis, president
and COO of Woodforest National
Bank in Houston; and Treasurer Gary
Convention was capped off with the
BankPac Live Auction, which raised
$31,400, and the Chairman’s Dinner,
which paid tribute to the incoming
chairman. Music was provided by
Jon Christopher Davis and the Lone
Star Attitude Band.
Tim Teske and Kevin Kogucz reconnect in the
Commissioner of Savings and Mortgage Lending
Bill Goetz helps generate $31,400 in BankPac
MarketPlace.
Caroline Jones visits with Sara Bass.
contributions by bidding at the BankPac Live Auction.
Jim and Vickie Purcell listen to a toast in their honor.
Bankers and guests enjoy dancing to the music of Jon Christopher Davis and the Lone Star Attitude Band.
Jim Purcell takes the stage at the Chairman’s Dinner along with several of his grandchildren.
@TEXASBANKERS
Claxton, president and COO of
Panola National Bank in Carthage.
Chairman’s Dinner
Jay Dreibelbis bids on an item at the BankPac Auction.
17
EXECUTIVE COMMITTEE
Meet your 2016-17 Texas Bankers
Chair
Vice Chair
Treasurer
Jim R. Purcell
James D. Dreibelbis
Gary Claxton
Kenneth L. Burgess Jr.
The State National Bank,
Big Spring
Woodforest National Bank,
The Woodlands
Panola National Bank,
Carthage
FirstCapital Bank of Texas,
N.A., Midland
Chair, Community Bankers
Council
Chair, Government
Relations Council
Chair, Regional Bankers
Council
Dean O. Bass
J. Mark Riebe
Charlotte M. Rasche
Spirit of Texas Bank, SSB,
Conroe
Texas Bank Financial,
Weatherford
Prosperity Bank, Sugar Land
Immediate Past Chair
COUNCIL REPRESENTATIVES
* The president and CEO of TBA also serves as a member of the Executive Committee
18
Vice Chair, Gov.
Relations Council
GRC BankPac
Committee Chair
Vice Chair, Community
Bankers Council
Vice Chair, Regional
Bankers Council
Chair, Bank
Leadership Council
Chris Edward Aldrete
Kenneth L. Burgess, Jr.
John L. Holt, Jr.
David A. Emerick
Jordan Gresham
International Bank of
Commerce, San Antonio
FirstCapital Bank of Texas, N.A.,
Midland
NexBank Capital, Inc.,
Dallas
JPMorgan Chase Bank, NA,
Austin
CBC Representative
Trust Representative
Discretionary
Appointment
Discretionary
Appointment
Guy W. Young
Thad W. Jennings
Michael G. O'Rourke
First National Bank,
Quitaque
Community Bank &
Trust, Waco
TIB-The Independent
BankersBank, Farmers Branch
Roy D.
Thompson
The First State Bank, Louise
Texas Hill Country
Bank, Kerrville
DISTRICT REPRESENTATIVES
Association Board of Directors
DISTRICT 1
DISTRICT 2
R. Mark Bain
Randy McCurley
David W. Osborn
First United Bank,
Lubbock
The First State Bank of
Mobeetie
WestStar Bank, El Paso
R. Terry Cullen,
CTFA
First National Bank in
Port Lavaca
Steven S. Mack
Joe Quiroga
Texas Heritage Bank,
Boerne
Texas National Bank,
Edinburg
DISTRICT 3
DISTRICT 4
Robert R.
Franklin, Jr.
Michael R.
Hoskins
Gary P.
VanDeventer
CommunityBank of
Texas, N.A., Houston
Texas Advantage
Community Bank, N.A.,
Alvin
Post Oak Bank, N.A.,
Liberty
Micah C. Boles
Morris DeFriend
Steve Stapp
First National Bank
Bosque County, Valley
Mills
The Farmers State
Bank, Groesbeck
R Bank, Round Rock
DISTRICT 5
Jesse Lee
Haggard, III
The First National Bank of
Trinity
DISTRICT 6
Raymond H. Rust, III Kathy Tittle
Robert A. Hulsey
Don R. Waters
Cee Yager
Community Bank,
Commercial Bank of
Texas, N.A., Nacogdoches Longview
American National
Bank of Texas, Terrell
Liberty Bank, Hurst
Worthington National
Bank, Fort Worth
DISTRICT 7
District
1
District
6
District
District
1
Greg Dodds
Roger W. Kalina
Reave J. Scott
Texas Bank,
Brownwood
Texas Financial Bank, Big
Lake
Coleman County State
Bank, Abilene
7
District
District
5
4
District
3
District
2
@TEXASBANKERS
19
Texas Bankers Foundation celebrates careers of 11 honorees
O
n May 6, during the Texas
Bankers Association’s 132nd Annual
Convention in Grapevine, 11 bankers
were honored with a 50-Year Banker
Award. During a special luncheon,
their careers were celebrated and
their dedication to the banking industry was recognized.
To put these bankers’ longevity
into perspective, consider this: 50
years ago, we had a Texan in the
White House — LBJ served as president from 1963 to 1969. In 1966, the
cost of a first-class stamp was 5
cents, “The Sound of Music” won the
Academy Award for Best Picture and
Star Trek made its debut.
The family median income was
$7,400. The cost of a gallon of gas?
20
32 cents. There have been a lot of
changes in 50 years!
One thing that hasn’t changed is
the commitment bankers have to their
customers and communities. These
11 bankers have devoted their entire
careers to helping their customers
achieve their dreams.
Larry Burns
Larry Burns of Maypearl, president
and CEO of the Cowboy Bank of
Texas, began his banking career as a
bookkeeping clerk and mailroom
operator at Park Cities Bank in Dallas.
He went on to work for Texas Bank
and Trust in Dallas as a bank officer
and department manager.
Burns has been with the Cowboy
Bank of Texas for 11 years. He has
spent 39 years of his 50-year career
in senior management of Texas community banks.
Harry Frankson
Harry Frankson of Port Lavaca is an
executive vice president at the Port
Lavaca branch of the International
Bank of Commerce (IBC). He began
his career in 1963 as a bookkeeper at
First State Bank and Trust Company
in Port Lavaca.
When the bank was acquired by
IBC in 1994, he became a loan officer
dealing with commercial and agricultural loans.
Frankson is an active member of
his community, where he has been
involved with a number of organizations, including the Calhoun County
Independent School District, assisting with their building and expansion
initiatives.
Larry Fraser
Larry Fraser of Houston, a director for
Allegiance Bank, began his banking
career in February 1964 as vice president at Medical Center National Bank.
He’s been with a number of banks
in the Houston area during his 58year career. While serving as senior
vice president at Sharpstown Bank,
Fraser discovered fraud, theft and
deceit by management and testified
before a grand jury.
While chairman of the three-bank
holding company Texas Capital
Bancshares, the bank challenged the
state’s branching law, becoming a
pioneer of statewide branching.
Carolyn Sue Maass
Carolyn Sue Maass of Brenham is a
senior vice president and commercial
banker at Brenham National Bank.
She began her banking career in the
bookkeeping department of First
National Bank after graduating from
Brenham High School in 1960.
In 1966, Maass joined Farmers
National Bank (now Brenham
National Bank) as a bookkeeper. She
has held many positions during her
time at the bank, including being the
first female loan officer in Brenham.
She has won the Brenham Banner
Press Reader’s Choice “Favorite Loan
Officer” award several times.
Sherrie N. Matlock
Sherrie N. Matlock of Granbury was
with First National Bank, Granbury,
her entire 50-year career. She retired
as vice president in December.
She began her career when she
accepted a part-time position with the
bank. She soon became a full-time
employee and held positions as a
teller, bookkeeper, in new accounts
and the note department, secretary,
bank officer, board member and
board secretary.
During her career, she watched the
bank grow from 12 or 13 employees
and one location to 135 employees
and six locations.
@TEXASBANKERS
Charles E. McMahen
Charles E. McMahen of Houston is a
director of BBVA Compass
Bancshares Inc. and chairman of the
risk committee for Compass Bank.
McMahen began his banking career
in 1966 at Texas Commerce
Bancshares.
In 1995, McMahen was appointed
by Gov. Bush to serve on the
University of Houston Board of
Regents; he served for six years,
including two years as chairman of
the board.
Gov. Perry appointed McMahen to
chair the Governor’s Business Council,
a position he held for seven years.
Robert P. Russell
Robert P. Russell of White Oak began
his 55-year career as a bookkeeper at
Bank of Morehouse in Bastrop, La.
He was with two other Louisiana
banks before moving to Texas in 1984
and taking the position of vice president/cashier at the Bank of Longview.
In 1987, Russell accepted an offer
as a vice president and cashier with
White Oak State Bank and was with
the bank until it was purchased by
Citizens National Bank, Henderson, in
2013. He remained with Citizens in a
part-time position until he officially
retired in June 2015.
Russell attributes his longevity in
banking to working with good people.
committees for both the Texas Bankers
Association and the Independent
Bankers Association of Texas.
Jim Underwood
Jim Underwood of Graham, senior
executive vice president of First State
Bank in Graham, began his banking
career as a teller with City National
Bank in Wichita Falls. He has been
with First State Bank since 1991.
Underwood has served in the
Rotary Club of Graham since 1970,
was a member of the Army National
Guard for six years and was a
member of the Graham Chamber of
Commerce Red Coats. He was also a
board member of the Graham Junior
Livestock Association, a director of
the Graham East Water Supply and is
a member of the First United
Methodist Church in Graham.
Patricia Wagers
Patricia Wagers of Fort Worth, executive vice president and cashier for
Woodhaven National Bank, began her
banking career as a bookkeeper at
First National Bank in Columbus,
Miss.
In 1981, she moved to Fort Worth
and has worked for Overton Bank &
Trust, Frost Bank, Arlington National
Bank and Woodhaven National Bank.
Wagers was a member of the
National Association of Bank Women
and the Bank Administration Institute.
H. Wayne Smith
H. Wayne Smith of Naples began his
banking career at the age of 18 when
he became a runner for Industrial
National Bank in Dallas. His willingness and ability to learn led him to be
placed in an intensive training program. After completing the program,
he was promoted to vice president.
In 1965, Smith came to Morris
County National Bank as a vice president. In 1968, he was promoted to
president, CEO and secretary to the
board. He remained in this position
until his retirement in 2002. He continued to serve on the bank’s board
of directors until January 2016.
Smith was instrumental in forming
the North East Texas Bankers
Association. He served on various
Patricia Williams
Patricia Williams of Brenham began
her banking career as a bookkeeper
at First National Bank in Brenham.
In 1984, Williams accepted a position as a loan secretary at Brenham
National Bank. She later transferred
to the credit administration department and is now supervisor of credit
administration. Williams also handles
consumer and commercial real estate
loans.
Williams is a member of the First
Baptist Church in Brenham and
taught Sunday school for many
years. She was also active in local
organizations including 4H,
Washington County Fair and Girl
Scouts.
21
INDUSTRYNEWS
Texas Bankers Foundation donates $20,000 Frost Bank ranks
to Homes4WoundedHeroes program
highest in Texas in
customer satisfaction
The Texas Bankers Foundation donated $20,000 toward three years of family and financial mentorship for Retired U.S.
Army Specialist Richard Carson (third from left). Also shown are, left to right, TBA President and CEO Eric Sandberg;
Linda Carson (hero’s mother); Dave Lieske, senior director of business development for the Military Warriors Support
Foundation; Texas Bankers Foundation Chair Patty Steelman; and TBA Past Chairman Ken Burgess.
Texas Bankers Foundation, the charitable arm of the Texas Bankers
Association, donated $20,000 to the
Homes4WoundedHeroes program of
the Military Warriors Support
Foundation toward three years of
family and financial mentorship for
Retired U.S. Army Specialist Richard
Carson, who was injured in 2010 in
Afghanistan.
Specialist Carson served over three
and a half years in the U.S. Army as a
combat medic. He deployed to
Afghanistan in support of Operation
Enduring Freedom for eight months,
where he sustained combat injuries.
Among his many commendations,
Carson received a Purple Heart,
Combat Medical Badge, Afghanistan
Campaign Medal with two campaign
stars and a National Defense Medal.
The presentation was made May 5
at the Texas Bankers Association’s
132nd Annual Convention in
22
Grapevine by Dave Lieske, senior
director of business development for
the Military Warriors Support
Foundation, through their
Homes4WoundedHeroes program.
John Gavin, Wells Fargo regional
president, presented Carson with a
ceremonial key to the home, and
Texas Bankers Foundation Chair Patty
Steelman and TBA President and
CEO Eric Sandberg presented the
$20,000 check for the mentorship.
“This is an impressive, national
program that was brought to TBA’s
attention due to the role the banking
industry plays in the program’s success,” said TBA Chairman Ken
Burgess. He added that the banking
industry is supporting the program
through the donation of mortgagefree homes, sponsorship of three
years of family and financial mentorship and raising awareness in their
communities.
For the seventh consecutive year, Frost
Bank received the
highest ranking in
customer satisfaction
in Texas in the J.D.
Power 2016 U.S.
Retail Banking
Satisfaction Study.
Eleven retail banks in
Texas were ranked, including regional
and large banks.
With an index score of 862, Frost
ranked highest in customer satisfaction
among all retail banks in Texas. That is
56 index points above the Texas region
average of 806 and 69 points above
the national average of 793.
Survey respondents gave Frost
very high scores in product offerings,
facility, account information, fees and
channel activities — which include
branch, website, ATM, call center and
telephone and mobile banking —
according to the J.D. Power study.
Based on the Power Circle Ratings on
JDPower.com, Frost received “among
the best” marks in all categories.
“It’s always nice to be recognized
for our value proposition, which is
based on our strong culture,” said
Frost Chairman and CEO Phil Green.
“We stay consistent every time we
interact with our customers, and they
recognize that and appreciate it. We
work to find ways to honor our customers and make their lives better.”
J.D. Power has studied retail banking for 11 years, but conducted a
separate ranking for Texas banks for
only seven years. Frost has topped
the Texas list every year since its
inception. The customer satisfaction
study is the longest-running and most
in-depth survey of the retail banking
industry, with more than 75,000 customers covering various aspects of
their banking experience.
BBVA Compass to move San Antonio corporate offices
BBVA Compass is set to become an
even more prominent part of the San
Antonio landscape by recently
announcing that it will claim some
choice square footage inside Weston
Centre, the city’s tallest office building, which will display the bank’s logo
prominently atop the building’s north
and south sides.
The bank signed a lease last
month and will move to the center of
the city’s financial district by early to
mid-2017. BBVA Compass will
occupy 9,600 square feet in the lobby
for a retail branch, and 19,000 square
feet on the second floor for corporate
offices.
“BBVA Compass has a solid
record of investing in the San Antonio
area and we have deep roots within
the community,” said BBVA Compass
San Antonio Market CEO Andrea
Smith. “Our move gives us an even
stronger presence and allows us to
better serve our community by taking
part in downtown’s ongoing revitalization. The sign is a visual that
reinforces our commitment to banking on a brighter future for our
customers and all of San Antonio.”
Weston Centre will undertake
extensive renovations to the new
Credit card market
mirrors solid
consumer sector
Healthy consumer spending and continued labor strength were the driving
forces behind a steady year-over-year
increase in credit card use at the end
of last year, according to the American
Bankers Association’s latest Credit
Card Market Monitor.
Monthly purchase volumes rose
5.9 percent for subprime accounts,
3.0 percent for prime accounts and
3.1 percent for super-prime accounts
BBVA Compass space. Offices on the
second floor will boast an open space
layout to maximize collaboration and
innovation. The offices will feature WiFi and Bluetooth technologies, shared
public spaces, collaboration areas
and private meeting rooms.
The workspaces will be modeled
after those at BBVA Compass Plaza in
Houston and those in the Dallas corporate offices after their renovations.
BBVA Compass’ efforts to connect
and build up the city are multifaceted.
It recently donated $1 million to San
Antonio-based LiftFund, the nation’s
largest nonprofit microlender, and
added the Spurs’ Becky Hammon, the
first full-time female coach in the NBA,
to its roster of brand ambassadors.
PLATFORM. COMPANY. MISSION.
Virtual banking solutions built to deliver a
VTWN[WPKƂGFGZRGTKGPEG for your customers. See how.
Q2ebanking.com/one-TBA
see “Credit Card,” p. 26
@TEXASBANKERS
23
INDUSTRYNEWS
Frisco Station, a 242-acre mixed-use
development located within Frisco
along the Dallas North Tollway, is
partnering with Southside Bank to
finance the development’s infrastructure. The bank will provide the Frisco
Station Partnership, which is composed of Hillwood, Rudman
Partnership and Van Trust Real
Estate, with a three-year revolving
line of credit for constructing road,
water, sewer and other utilities.
Initial construction will begin this
month and will include infrastructure
to support office development along
Warren Parkway, as well as extend to
the core of Frisco Station to support
planned urban living, retail and hospitality projects.
24
Van Trust
Southside Bank to finance Frisco Station infrastructure
Frisco Station will have more than
5 million square feet of office and
corporate campuses, 2,400 urban
living units, unique destination food
and beverage concepts, hotel and
conference facilities and more than
250,000 square feet of retail and
mixed uses.
“Frisco Station is a marquee project in one of the fastest growing
areas in the region,” said Tim Carter,
North Texas regional president of
Southside Bank. “The presence of
Toyota, Liberty Mutual and other
major corporations within the Collin
County portion of the North Texas
region is spurring unprecedented
growth in Frisco, and Southside Bank
is proactively seeking opportunities
to facilitate new projects that will further support the city’s economic
expansion.”
Headquartered in Tyler, Southside
Bank has $5.2 billion in assets and
currently operates more than 60
banking facilities in East, North and
Central Texas.
We Wish to Welcome
and Thank Our Newest
Associate Members
Bexley receives Lifetime Achievement Award
The Texas Bankers
Association presented its
first Lifetime Achievement
E
SOCIAT
AS
Award in April to Dr. Jim
Bexley, chair of the SmithHutson Endowed Chair of
ME
MBER
Applied Micro Technology, Inc.
921 W. New Hope Dr., Suite 201
Cedar Park, TX 78613-6785
Phone: 512-986-6093
[email protected]
www.lqas.com
Applied Micro Technology Inc. (AMT) is
a privately held company. AMT was
founded to provide supplemental functions to existing lending information
systems. We built LQAS in 1984. Loan
review capabilities were installed in
1989. Enterprise imaging was deployed
in 1991. The loan review export was
developed in 2003. Pinpoint Loan
review export was accepted for use by
the OCC in 2007. The first remote loan
review was conducted in 2008. This
should reduce the cost of reviews to at
least half of current levels. The iPad
Loan Assistant, which gives the lender
electronic credit and collateral files anywhere, was introduced in 2015.
The owner of the company is a
former examiner and commercial
lender. All key personnel are from the
Texas banking industry.
Banking at Sam Houston
State University. The award,
in recognition of Dr. Bexley’s
contributions to the
university’s banking
program and the industry,
was presented at the Texas
Bankers Hall of Fame Gala.
Dr. Bexley was also
recognized at TBA’s Annual
Convention last month in
Grapevine.
Securities America Inc.
12325 Port Grace Blvd.
La Vista, NE 68128-8204
Phone: 866-346-4568
[email protected]
www.fi-sa.com
Securities America’s mission is to foster
the success of financial professionals so
they can provide objective counsel to
their clients. Advisors benefit from our
programs in practice management and
advisory services supported by state-ofthe-art technology. Banks can gain a
competitive advantage with Securities
America’s Financial Institutions Division.
Our turnkey programs maximize existing
customer relationships and drive dollars
into both depository and investment
products. Securities America is owned
by Ladenburg Thalmann Financial
Services (NYSE: LTS).
@TEXASBANKERS
25
INDUSTRYNEWS
Credit Card
continued from page 23
in the fourth quarter compared to the
same period a year earlier.
The May 2016 Monitor, which
reflects data from last year’s fourth
quarter, also found that the number of
new credit card accounts jumped to
80.3 million — up 16.3 percent from a
year earlier.
New accounts experienced doubledigit percentage growth for all three
risk categories, including a 26 percent
year-over-year increase in new subprime accounts. New subprime
accounts continue to remain well
below pre-recession levels. The steady
growth in new accounts resulted in a
post-recession high of 323 million total
open credit card accounts, up 5.8 percent from a year prior.
“Recent growth in the credit card
market largely mirrors what we’re
seeing in the economy’s consumer
sector,” said Jess Sharp, executive
director of ABA’s Card Policy Council.
“Labor markets continue to perform
well, wages are slowly climbing and
gasoline prices remain low — all of
which translates into a healthier outlook for both consumers and the
credit card market.”
The ABA report also provides evidence that while consumers are
increasingly using credit, they’re also
continuing to spend within their
means. The share of Dormant credit
card accounts declined 0.7 percentage points to 28.1 percent of all
accounts. This was offset by gains in
“ Regular Mystery Shopping from The
Genesis Group helps improve customer
service. We value their knowledge of
the banking
industry and
the outstanding
service we
receive.”
both Revolver accounts (account
holders who carry a monthly balance), which increased 0.4 points to
42.1 percent of all accounts, and
Transactor accounts (account holders
who pay their balance in full each
month), which rose 0.3 points to 29.7
percent of all accounts.
As a share of disposable income,
credit card credit outstanding
increased to 5.38 percent, but is still
in line with historic lows.“Even as
consumers more actively use their
credit cards, they continue to do a
good job of managing credit to
ensure they’re spending within their
means,” said Sharp.
The report demonstrates how card
issuers are managing risk while also
expanding access to credit. Average
credit lines rose markedly for new
prime (+1.6 percent) and super-prime
(+2.4 percent) accounts, while credit
lines for new subprime accounts experienced slower growth (+0.4 percent).
This reflects a recent market trend
whereby issuers are extending credit
to borrowers with lower credit scores
or limited credit history — many of
whom may have been unable to open
a credit card account since the recession — but in smaller initial amounts
that can increase over time with a
good payment history.
TBA calendar of events
Ju n e
13
14
15
16
17
Call the Texas-based bank marketing experts today!
Melissa Kinion, CEO
Virginia Grimes, President
800-725-3800 U www.forGenesis.com
20
21
22
Au gu st
24
26
2016 Texas Tour, McAllen,
Corpus Christi and Victoria
2016 Texas Tour, San Angelo,
Abilene and Midland
2016 Texas Tour, Lubbuck,
Amarillo and Fort Worth
2016 Texas Tour, Dallas, Sugar
Land and The Woodlands
2016 Texas Tour, Lufkin and
Kilgore
2016 Texas Tour, San Antonio
2016 Texas Tour, Waco
2016 Texas Tour, Austin
2016 Texas Tour, El Paso
TBA PROFESSIONAL DEVELOPMENT
TBA Schools & Conferences
Real Estate Lending School
SCHOOLS
BSA/AML Compliance School Sept. 12-14, Austin
June 13-15, San Antonio
CONFERENCES
Compliance Management
CFO Conference
School
June 8-10, Lost Pines
Aug. 8-9, Austin
Bank Director School
Aug. 25-27, Richardson
June 2016
HR Webinar Series
Webinar Seriers
3 1:30-3:30 p.m.
(HR Compliance)
24 1:30-3:30 p.m.
(HR Audit)
Untangling the Web of Fee
Disclosures
Webinar
7 1:30-3:30 p.m.
Same Day ACH
Webinar
8 1:30-3:30 p.m.
Mobile Threats & Best
Practices
Webinar
9 1:30-3:30 p.m.
New Accounts in Texas
13 McAllen
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Senior Management Summit
Financial Literacy Summit
July 26-27, Farmers Branch
HR & Operations
Aug. 17-19, San Antonio
Marketing
Sept. 21-23, San Antonio
July 13-15, San Antonio
Accounting Essentials
Webinar
29 1:30-3:30 p.m. (Part 3)
Compliance Checklists
17 1:30-3:30 p.m.
Webinar
(Bank Accounting)
5 1:30-3:30 p.m.
20 1:30-3:30 p.m.
(Consumer)
(Business Accounting)
19 1:30-3:30 p.m.
(Commercial)
What to Expect in Your First
TRID Exam
Webinar
Flood Insurance Review &
Update
21 10:00 a.m.-12:00 p.m. Webinar
12 1:30-3:30 p.m.
Conducting Investigations
Webinar
ATM Security
21 1:30-3:30 p.m.
Webinar
14 1:30-3:30 p.m.
Payments Fraud
Webinar
Lending Basics for Support
22 1:30-3:30 p.m.
Personnel
Webinar
How Ordinary People
15 1:30-3:30 p.m.
Become Extraordinary
Leaders
Demystifying Liquidity
Webinar
Requirements Webinar
27 Odessa
23 1:30-3:30 p.m.
18 1:30-3:30 p.m.
28 Abilene
Commercial
Real
Estate
Equipment
Lease Financing
29 Arlington
Webinar
Webinar
30 Tyler
27 1:30-3:30 p.m. (Part 1)
20 1:30-3:30 p.m.
The Top 10 Mistakes
28 1:30-3:30 p.m. (Part 2)
Sales on the Frontline
Webinar
Webinar
Branch Transformation Boot
14 1:30-3:30 p.m.
21 1:30-3:30 p.m.
(Financial Statements) Camp
Webinar
16 1:30-3:30 p.m.
CIP
& CDD Final Rule
29 1:30-3:30 p.m. (Part 1)
(Appraisals)
Webinar
30 1:30-3:30 p.m. (Part 2)
22 1:30-3:30 p.m.
Certified Banking Security
Technology Professional
14-15 Arlington
New Overtime Rules
15 1:30-3:30 p.m.
All webinars are Central Time
July 2016
Government Compliance
Issues: Accounts, Checks,
Auditing for Compliance
Prepaid Student Cards
Webinar
Webinar
1 1:30-3:30 p.m. (Part 1)
11 1:30-3:30 p.m. (Part 2)
25 1:30-3:30 p.m.
All featured ABA courses are facilitated online
courses. Course lengths vary from five to 16 weeks
and are noted for each course. For full descriptions
and a list of self-paced online courses, please visit
our website at www.texasbankers.com. Email
[email protected] with questions.
June 2016
The Banking Industry
6 4 Weeks
General Accounting
6 16 Weeks
Managing Funds, Liquidity & Capital
6 6 Weeks
Analyzing Bank Performance
20 7 Weeks
20 4 Weeks
CFTA Review
20 12 Weeks
Introduction to Trust Products &
Services
20 5 Weeks
July 2016
5 4 Weeks
Banks Lines of Business
5 5 Weeks
Consumer Lending
11 16 Weeks
Economics for Bankers
11 16 Weeks
Introduction to Mortgage Lending
11 16 Weeks
Law & Banking Applications
11 16 Weeks
Leading a Bank to Profitability
11 7 Weeks
Money & Banking
11 16 Weeks
16 4 Weeks
Bank Lines of Business
18 5 Weeks
Introduction to Ag Lending
18 8 Weeks
Law & Banking Principles
18 16 Weeks
@TEXASBANKERS
27
PARTNERFOCUS
The importance of investing
in user experience
BY WILL FERRELL
Experience “schmicksperience” —
a phrase that has no doubt been
uttered by many a banking executive
in response to a member of their
staff espousing the benefits of
investing in their accountholders’
online experience.
Yours truly has witnessed such
reactions first-hand more times than I
can count. As one who believes
strongly in the value of providing a
quality user experience for digital
banking customers, I’m hopeful that
the past 18 months have convinced
the skeptics who remain to give it
serious consideration. Investing in
user experience might just be the
secret ingredient you’ve been searching for to reinvigorate your customers
and your business.
Why 18 months? Because it was
within the past 18 months that Capital
One — yes, that Capital One —
acquired San Francisco-based
Adaptive Path. Why was this so significant, you ask? Because Adaptive
Path and the folks they employ are
considered by many as the gurus of
user experience; aka, UX.
The huge-font verbiage that adorns
the Adaptive Path corporate home
page makes it very clear what they do
and what they believe: “Great businesses are built on great experiences.
We make those experiences happen.”
If you explore their website further
you’ll encounter such statements as,
“When Adaptive Path was founded
(2001), UX firms didn’t exist.” Not
only are they considered the original
gurus of UX, you could also say they
invented the space.
It is a space whose ideas and
beliefs, sadly, aren’t given a whole lot
of credence by many in the banking
28
community. Which, to an extent, I can
understand. With net interest margins
the lowest in forever, compliance
costs skyrocketing and interchange
incomes demolished by Durbin, it
probably is difficult for a banking
executive to grasp the idea of pouring
a bunch of money into something like
user experience.
Ironically, however, the aforementioned issues are the very reason
banks should invest in their accountholders’ digital banking experience.
Not because PayPal, Amazon and
Apple are doing so, or because millennials demand quality user
experiences, but because investing in
the experience for your accountholders can dramatically improve your
business.
Point of fact: When comparing the
six-year stock performance of companies known to invest heavily in their
customers’ experience versus those
not known for investing in customer
experience, Forrester Research found
that the companies that invested the
most outperformed the S&P with
close to triple the returns, at a cumulative total of +43 percent. The
bottom 10 generated a negative
cumulative return of -34 percent.
Furthermore, the same research
discovered that every dollar invested
in UX yields $100 in return — a whopping 100x return on investment! Then
there’s the most famous of all UX
improvement stories: The $300 Million
Button. A major U.S. retailer — widely
suspected to be Amazon — with one
simple modification to their checkout
process, realized an increase of $6
million in sales the very first week, an
increase that remained constant
throughout the year.
At Q2, UX is everything. Things
like interfaces, uptime and all the
requisite features and functionality
are now table stakes. Where the
proverbial rubber meets the road is
in the experience provided to
accountholders.
In the past 12 months alone,
we’ve collected more than 1,300 UX
surveys from bankers and accountholders across the country. We’ve
interviewed countless others in
person, and collected more than 50
hours of back office personnel and
accountholders on video, utilizing
our solutions while we examined
their facial expressions, body language and in-session behaviors.
All of which was done in order to
get the experience just right — to
enable our clients to provide the most
intuitive, engaging and consistent
experience possible to their accountholders. All to improve our clients’
business — all to strengthen community financial institutions.
It’s old news that we’re officially in
the “digital era,” and it’s even older
news that folks aren’t visiting their
local branches very often these days;
the two go hand-in-hand. As consumers grow more and more
accustomed to the slick, intuitive and
engaging online experiences afforded
them by the likes of Google,
Facebook, Amazon and myriad
others, while simultaneously avoiding
the branch in favor of the online
channel, is there anything wiser a
banker can do than invest in their
own online user experience?
Will Ferrell is vice president of marketing for Q2.
512-560-3674
[email protected]
www.q2ebanking.com
100+ ENDORSED PRODUCTS AND SERVICES
The TBASCO Board of Directors grants endorsement to select providers after a thorough
vetting process has been completed by TBASCO staff. With TBASCO’s reputation for
integrity and thorough due diligence, banks can trust TBA endorsed solutions.
Contact Wanda Stevens at 800-462-7295
[email protected] | www.texasbankers.com/tbasco
COMMUNITY BANKER SPOTLIGHT
Bringing a vision to community
banking in San Antonio
DAVIDBOHNE
CEO, BROADWAY BANK
1
2
3
d
David Bohne has always been into
numbers; that’s his baseline connection to banking. His banking career
began in 1993 when USAA sought
him out while he was working for
accounting firm Deloitte & Touche in
San Antonio.
All of Bohne’s 22-year banking
career was spent with USAA until he
started a new chapter of his career as
CEO of Broadway Bank on May 2.
His love of numbers has evolved into
a drive to “make banking fun again.”
“It’s been a tough environment
30
4
economically and regulatory wise;
our challenge as bankers is to make
this fun again because the talent we
need in the future, they’re not coming
to us in droves,” Bohne says of
appealing to a new generation of
employees. “We need them to help
us shape the wave of the future.”
Growing up in San Antonio
Bohne’s father was in the military and
the FBI. That career led the family to
move a lot; as a child, Bohne lived in
California, Canada, South Dakota,
Alabama, Washington, D.C., and San
Antonio.
“I spent from elementary school
on in Helotes,” Bohne says. “Back
then, it was a small town but now the
city has kind of engulfed it so it’s part
of San Antonio.”
Bohne wanted to follow in the footsteps of his father by becoming an
FBI agent after he graduated from
Texas A&M University with a bachelor
of business administration degree in
1989.
However, he ran into a roadblock
in the form of an FBI hiring freeze for
agents. He instead accepted a position with Deloitte & Touche.
Start of a banking career
Bohne had some familiarity with
USAA before he got the call to join
their finance department in 1993. “I
knew USAA because my dad was a
member and my mom had worked
there back in the ’50s.”
Bohne found himself in the unique
position to move to different roles at
USAA for roughly two years at a time.
His favorite role was heading a product management team. “I liked the
creativity aspect, keeping up with
competitors and creating better experiences for customers,” he says.
He also enjoyed running the
bank’s call center and interacting with
frontline staff because “you got to
see the magic happen — employees
stepping in to provide great customer
service.”
In 2005, Bohne became USAA’s
CFO and he was named bank president in 2007. While serving as
president, USAA’s assets grew from
$44 billion to more than $69 billion.
Bohne left USAA under amicable
terms in February 2015.
Vision for Broadway Bank and the
future of banking
As the new CEO of Broadway Bank
($3 billion in assets), Bohne has the
challenge to continue all the things
the bank does well while imparting
his own vision for the direction of the
bank.
“Take care of the employees and
the employees will take care of the
customers — I think Broadway Bank
has been doing that for a long, long
time,” Bohne says. “That’s something
I want to continue; I don’t want to
lose that focus.”
Looking to the future, Bohne plans
to put more emphasis on what the
next generation of banking will be.
Bohne says he wants to hone in
on the retail side of the bank but he’ll
also have a heavy focus on technology. “There’s a whole new generation
of folks that don’t know anything
other than banking on their iPhone so
they expect that,” Bohne says. “We’re
not walking away from the face-toface and personal model; we’re just
adding to that.”
He’s of the opinion that the retail
business of banking is going to look
and feel much like Amazon.
The San Antonio community
Broadway Bank recently celebrated
its 75th anniversary. The bank’s
slogan is, “We’re here for good.”
As a longtime San Antonio native,
Bohne is particularly fond of the
slogan: “It’s about longevity. But it
has multiple meanings; we’re here for
our customers, community and
employees.”
In that vein, Bohne is excited to
get involved philanthropically with
Broadway Bank’s Care Corp. Bank
employees volunteered more than
13,500 hours last year to 138 charitable organizations.
He formerly served on the boards
of United Way San Antonio, the San
Antonio Children’s Shelter and the
United Services Organization (USO)
of San Antonio.
Life outside of banking
Bohne and his wife, Cathy, have been
married for 25 years. They have two
children.
Though he and Cathy both went to
Texas A&M, their daughter is a nursing
student at the University of Texas.
“We’re still absorbing that, trying to
figure out how that happened but
we’re really proud of her,” Bohne says.
Bohne coached his eighth-grade
son’s AAU team this past season. At
6’ 3” his son competes in basketball
and football.
One of Bohne’s favorite pastimes
is to take their boat out on Lake LBJ
to spend time as a family.
Who is your hero?
George Washington
What is your favorite book?
The Bible
What is your favorite movie?
“Silverado”
Who is your favorite U.S.
President?
Ronald Reagan
What are your favorite sports
teams?
San Antonio Spurs, Dallas
Cowboys and Texas A&M
Aggies!
What is your favorite quote?
“Success occurs when
opportunity meets preparation.”
— Zig Ziglar
OPPOSITE PAGE LEFT TO RIGHT: 1 Cathy, Kendall,
Weston and David Bohne enjoying a recent trip to
Six Flags Fiesta Texas. 2 Bohne took over as CEO
of Broadway Bank on May 2 after 22 years with
USAA. 3 Bohne coached his son Weston’s AAU
basketball team this past season. 4 Bohne with
his daughter Kendall, a nursing student at the
University of Texas at Austin.
@TEXASBANKERS
31
DONNYPALMER
TBA MEMBER RELATIONS OFFICER
BANKER TO BANKER
A stellar evening at the Texas
Bankers Hall of Fame Gala
i
It was another stellar evening at Sam
Houston State University for the
Fourth Annual Gala honoring some
of Texas’ finest bankers as they were
inducted into the Texas Bankers Hall
of Fame. This year, four special
bankers were honored in the ceremony emceed by Dr. James B.
Bexley, the chair of the Smith-Hutson
Endowed Chair of Banking. The gala
was attended by bankers from all
over the State.
From left to right: Terry Tuggle, Lowell “Stretch” Smith,
Dr. Jim Bexley, Charles Cheever Jr. and Marshall
Bookman Peters.
Charles E. Cheever Jr.
The first inductee was Charles E.
Cheever Jr., chairman emeritus of
Broadway Bank in San Antonio.
Cheever, a former TBA chairman,
started his banking career in 1961 as
a 32-year-old working alongside his
father and bank founder, Col.
Charles E. Cheever Sr.
Cheever graduated from West
Point in 1949 and served in the Air
Force, rising to the rank of lieutenant
colonel. He received his J.D. degree
from the University of Texas. Cheever
has held seemingly every position of
leadership available in San Antonio
and Central Texas. His family is
active in managing the bank today
and they continue his fine example
as a great community banker.
Bank of Bryan. He graduated from
the University of Texas and is a CPA.
He completed his MBA from Texas
A&M University.
Peters has been heavily involved
in education, serving on boards and
councils in many Texas educational
institutions. He has been honored as
the Outstanding Alumnus of the
Mays School of Business at TAMU,
where he has endowed several professorships.
As a community banker, he has
served on most of the business and
civic endeavors in the Bryan/College
Station area. Bookman and his wife,
Florence, are active in the First
Presbyterian Church of Bryan and he
has served for many years on the
Presbyterian Foundation.
Marshall Bookman Peters
Marshall Bookman Peters, another
former TBA chairman, started his
banking career in 1961 and rose to
be chairman and CEO at First City
32
Lowell “Stretch” Smith
Lowell Smith, affectionately known
as “Stretch,” served as the TBA
chairman in 1987 while serving as
the chairman at the First State Bank
of Rio Vista. Most of us remember it
as the “Cow Pasture Bank” where
besides a drive through teller, they
also had a landing strip behind the
bank to allow for “fly-in” deposits!
Smith has served in every leadership capacity in Johnson County and
is the first recipient of a “Lifetime
Achievement Award” from the
Cleburne Chamber of Commerce. He
received an Honorary Doctorate of
Business Administration from Texas
Wesleyan University as well as had a
middle school named for him in
Cleburne.
Smith and his wife, Shirley, continue the family tradition of ranching
in Rio Vista, which dates back to
1887. They are active in the First
United Methodist Church of
Cleburne.
Terry Tuggle
Terry Tuggle started his banking
career with two of the most prolific
Texas bank holding companies,
Texas Commerce and First Republic.
He moved to Killeen to become president of the First National Bank of
Texas in 1988.
He now serves as chairman and
CEO of First Community Bancshares
and its other local institution, the Fort
Hood National Bank. Under his leadership, FHNB became the first bank
to have a location on a military base.
Since then, Tuggle has received
see “Banker to Banker,” p. 37
JOHNHEASLEY
TBA GENERAL COUNSEL
YO U R A DV O C AT E
The prospects for banking reform
at this stage in the presidential race
a
Almost six years after the passage of
the Dodd-Frank Act, every banker in
the state knows that unless some
major changes are made at the federal level we will continue to see the
increasing consolidation of community banks.
There are already 150 fewer banks
in Texas than there were when the act
was signed. Stockholder pressure to
sell has even hit banks in the $50 billion to $100 billion range because
they labor under the same increasing
costs that the trillion dollar banks can
more easily absorb. The bigs are getting bigger and smaller charters are
getting harder to find.
With the national party conventions more than a month away, it is
fairly certain that it will be a
Trump/Clinton battle in the fall.
Bernie Sanders is continuing to gain
delegates but the Democratic super
delegates have enough votes to
make sure that Secretary Clinton is
the nominee. Sanders’ unforeseen
popularity, especially with younger
voters, is forcing Clinton to the left
on issues like foreign policy, the minimum wage and banking.
Bernie wants to break up the big
banks and reinstitute the GlassSteagall Act. These are
crowd-pleasers at his rallies. Hillary
only wants to enforce Dodd-Frank
and consider a few amendments to
the act. (This could explain a recent
rush of campaign funds to her from
Wall Street.)
Riding to Hillary’s rescue is
Massachusetts Sen. Elizabeth
Warren, who is showing her value to
34
Clinton in her attacks on Donald
Trump. As Trump’s antagonist,
Warren is filling the space that would
normally be occupied by sniping
between the Clinton and Sanders
campaigns.
Warren’s jabs at Trump on Twitter
include allegations of his “racism,
sexism and xenophobia.” She also
tweeted that he gets more support
from “KKK” types than from
Republican leaders. Her office told
CNN that her attacks on Trump have
generated more than 45 million
views on Facebook.
Warren is the only Democratic
woman in the Senate who has not
endorsed Clinton. She has not
endorsed Sanders either. As such,
she is in the role to play the party
unifier at the convention. And, in
order to placate Sanders supporters,
don’t be surprised if she is Clinton’s
running mate. A Clinton/Warren victory in November would make any
major changes to Dodd-Frank next to
impossible.
On the Republican side, Donald
Trump continues his efforts to placate congressional Republicans, the
very group he ran against on the
campaign trail. He has already
received more Republican primary
votes than any candidate since the
days of smoke-filled rooms and 72
percent of Republican votes support
him.
With the collapse of the
“AnybodybutTrump” effort, most congressional Republicans are likely to
come out in support of him. Trump
will need their support. He needs to
raise $1.5 billion to have an effective
campaign. Trump, like the other candidates that he vanquished, has
been a vocal opponent of DoddFrank.
Most of the Washington types, the
columnists and pundits, think that
Trump’s campaign will be a disaster
akin to the Goldwater loss in 1964.
They predict a Clinton victory, a
Democratic majority in the Senate
and a narrowed majority of
Republican control in the House.
The new Senate Majority Leader
would most likely be Chuck Schumer
of New York, who has historically
been a friend to Wall Street but not
commercial banking. The Senate
Banking Chair would be Sherrod
Brown of Ohio, a consumer advocate
who believes that the CFPB can do
no wrong.
The argument for Trump is that
the Washington types have been
wrong about everything for the last
year. They predicted that a
Republican like Bush or Rubio would
prevail and that Hillary would have a
cake walk to her coronation.
The biggest wild card is that
Trump is polling well among voters
who have not voted in large numbers
for Republicans since Reagan. In
some polls he is competitive or
ahead of Clinton in states like Florida
and Ohio. A strong Trump campaign
makes Democratic control of the
Senate much more difficult.
This election is going to have
more impact on banking than any
election since the 1930s. Let’s hope
we get the right change this time.
o
VICTORIASTEPHEN
ASSOCIATE GENERAL COUNSEL, COMPLIANCE ALLIANCE
COMPLIANCE HOTLINE
The CFPB proposes new ban
on mandatory arbitration clauses
o
On May 5, the Consumer Financial
Protection Bureau dealt another blow
to the financial services industry. The
CFPB issued a 377-page proposal
that would effectively block the use
of mandatory arbitration clauses that
have come to be the norm in most
financial agreements today.
As the CFPB is quick to point out,
the proposal does not ban arbitration
clauses entirely, but merely requires
that consumers be provided other
options for dispute resolution. This is
precisely what gives the proposal its
real teeth.
These clauses not only mandate
arbitration, but also usually include
waivers that require consumers to
sign away their rights to bring class
action lawsuits. Without arbitration as
the exclusive form of dispute resolution, the floodgates to class action
lawsuits will be suddenly flung open.
According to the findings from the
CFPB’s own three-year study, consumers have been “effectively
prohibit[ed]” from bringing the vast
majority of potential claims by the
industry’s widespread use of arbitration clauses or “contract gotchas,”
as it likes to call them.
Because the cost of individually
litigating a claim tends to outweigh
any benefit that might result, often
the only feasible way of bringing a
small claim is together with a class of
other consumers with the same one.
When the Bureau’s proposal goes
into effect, consumers will be able to
aggregate tens, hundreds or even
thousands of small claims into large
class action suits.
@TEXASBANKERS
Although arbitration clauses would
be banned, generally, the proposal
would continue to allow some arbitration at the individual level. In those few
cases in which it would be allowed,
the Bureau has made clear that it will
be extensively monitored for abuse.
Besides the added scrutiny, many
in the industry have commented that
bifurcating their dispute resolution
process just isn’t a viable option.
With the added costs of litigation and
the enhanced scrutiny of what limited
arbitration would be permitted, it’s
There’s a question of
whether the CFPB has
even considered many
of the potentially unintended consequences
to the consumer...
safe to say that most financial companies would simply not be able to
afford the two avenues.
There can end up being drawbacks on the other side of the fence,
too. There’s a question of whether the
CFPB has even considered many of
the potentially unintended consequences to the consumer, the primary
and obvious one being that someone
has to absorb the increased costs of
class action litigation. And, hint, hint,
it won’t be just the institutions. If institutions have to bear more legal costs,
you can be sure that consumers will
see correlative price increases.
This is without considering that
class actions in general provide little
restitution to plaintiffs, but excellent
payoffs for plaintiffs’ lawyers. The
CFPB’s own study showed that an
astronomical 87 percent of class
action lawsuits provide absolutely no
financial compensation to consumers. The lawyers, on the other
hand, can make more than a million
dollars per case on average.
Finally, there’s also the lingering
question of whether the CFPB even
has the authority to impose this
unconditional ban on mandatory arbitration. Opposers assert that the
Dodd-Frank Act asked for no more
than a study on arbitration clauses,
while the CFPB claims that Congress
also allowed it to reform the practice if
“certain conditions are met.” With such
wide disparity in the interpretation of
the Bureau’s authority, legal challenges to the new rule are inevitable.
Although the final rule will go into
effect 30 days after being published
in the Federal Register, there will be
an added 180-day delay period from
that date. Based on the current projected timeline, the ban would begin
to be imposed on agreements
entered into sometime in the middle
of 2017, although there is still debate
over whether some current agreements would be grandfathered. Read
the full proposal here:
http://files.consumerfinance.gov/f/
documents/CFPB_Arbitration_
Agreements_Notice_of_Proposed_
Rulemaking.pdf
35
BANKPEOPLE
ABILENE
FIRST FINANCIAL BANK, N.A.
Daniel P. Neely to senior vice president of
Treasury Management Sales.
FRISCO
TEXAS BANK AND TRUST COMPANY
Brad Shelton to senior vice president and
commercial lending officer.
Daniel P. Neely
Brad Shelton
Jason McCrary
Colt Edwards
Shane R. Smith
Vince Fertitta
Jeffrey Nelson
John Cruz
Matthew Delgado
Alyssa Hartlage
LONGVIEW
TEXAS BANK AND TRUST COMPANY
Jason McCrary to assistant vice president
of financial reporting in the accounting division. Colt Edwards to vice president and
commercial lender.
MCGREGOR
TFNB YOUR BANK FOR LIFE
Shane R. Smith to vice president and loan
officer at the South Bosque location.
SAN ANTONIO
BANK OF AMERICA
Vince Fertitta to market president.
BROADWAY BANK
Jeffrey Nelson to chief investment officer,
executive vice president in the Wealth
Management IMG team. John Cruz to
senior vice president, commercial lender in
the Commercial Banking Division. Matthew
Delgado to senior vice president, commercial lender in the Middle Market Commercial
Banking Division. Alyssa Hartlage to senior
vice president, commercial real estate lender
in the Commercial Banking Division.
What have we done for you lately?
Want additional piece of mind? TBA has you covered. We
are now providing up to $50,000 in accidental death and
dismemberment (AD&D) coverage for any bank officer
with any TBA-member bank who is injured during a committed or attempted felonious assault.
It costs your bank nothing. TBA is providing this coverage,
and the additional peace of mind, as a member benefit.
For more information, contact the Texas Bankers Insurance
Agency at 800-318-4142 or [email protected].
This is just one of the many benefits of TBA membership.
Check out www.texasbankers.com.
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3KDVH,,,(QYLURQPHQWDO6LWH$VVHVVPHQWV$VEHVWRV/HDG0ROG&RPSOLDQFH$XGLWV6WRUPZDWHU&RPSOLDQFH3URSHUW\&RQGLWLRQ5HSRUWV
3KDVH(QJLQHHULQJ¶V3KDVH,UHSRUWVFRPSO\ZLWKWKH(3$¶VHQYLURQPHQWDOVLWHDVVHVVPHQWUHTXLUHPHQWV
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36
CLASSIFIEDADS
If you would like to place a position-wanted or available ad or an ad to sell or buy new and used bank equipment, call
800-356-8805 ext. 357 or email [email protected]. The costs for classified ads are $100 for the first 30
words, and $10 for each additional 10 words. Blind box ads are $20 extra.
NOW AVAILABLE — 2015 Fall Texas
Banking Red Book ($50 plus S&H) with
June 30, 2015, financial data. To order,
call 800-336-1120, ext. 7053 or order at
www.TexasRedBookOnline.com.
Texas Banking eBook — The Texas
Banking eBook is readable on iPhone/
iPad and all other smartphones and
Banker to Banker
continued from page 32
many of the most prestigious military
awards offered to civilians and has
worked tirelessly serving military families in Central Texas. Under his
leadership, FNBT has grown to more
than 300 banking centers in Texas,
New Mexico and Arizona. He has also
served in many leadership capacities
in Killeen and Central Texas. Tuggle
tablets with eBook/ePub capability.
The eBook contains the same information as the Red Book print edition, plus
special interactive features such as
phone and website links, searchability
by banks and city, and the ability to
make notes, highlight entries and
bookmark pages. To purchase, go to
http://Bankers-eStore.com.
ONLINE RED BOOK NOW
AVAILABLE — Texas Banking Red
Book Online brings you all the information from the print version, plus
the interactive benefits of online,
including searchability by individual
name, financial institution, primary
and branch locations, or asset size.
For more information, go to
www.TexasRedBookOnline.com.
and his wife, Joyce, live in Killeen
and have two sons also living in
Texas.
Following these presentations,
TBA President Eric Sandberg, TBA
Treasurer Jay Dreibelbis and I presented Dr. Bexley and SHSU officials
with a check from the TBA
Foundation for $250,000 to kick off a
matching program to endow another
banking chair for the banking program at SHSU. We are hopeful the
Texas banking community will
embrace this effort to further educate
another generation of bankers.
As a cap to the gala, we also surprised Dr. Bexley with the first TBA
“Lifetime Achievement Award” in honor
of his many years of service to our
industry. He and his wife, Elsie, have
spent 20 years building the banking
program at SHSU and we wanted to
show them our appreciation.
Congratulations to all on this significant milestone in our industry.
[email protected]
INDEX TO ADVERTISERS
For information on advertising in Texas Banking magazine, please email [email protected]
Company Name
Phone
Website
Page
BKD, LLP
713-499-4600
www.bkd.com
25
Country Club Bank
800-288-5489
www.ccbcm.com
39
Compliance Alliance
888-353-3933
www.compliancealliance.com
33
FTN Financial
800-456-5460
www.ftnfinancial.com
2
Hollerbach & Associates, Inc.
210-226-2556
www.hollerbach.com
24
Pentegra Retirement Services
800-872-3473
www.pentegra.com
40
Phase Engineering, Inc.
800-419-8881
www.PhaseEngineering.com
36
Q2 Software, Inc.
512-560-3674
q2ebanking.com/one-TBA
23
Texas Bankers Insurance Agency
800-318-4142
www.texasbankers.com/insurance
7
The Genesis Group
800-725-3800
www.forGenesis.com
26
@TEXASBANKERS
37
BANKINGBYTES
TBA FACTS AND STATS
FINANCIAL REPORT
BY THE NUMBERS
Sources of revenue for fiscal year 2015
59.5%
43.4%
May ʻ11
Cash Reserves
EM BERS
SOCIAL MEDIA
FOLLOWERS
2,500+
500+ likes
1,150+
MEMBER
BRANCHES
~
210
5,100
$10,404,439
$9,025,378
40%
$7,067,452
$0
$5,865,635
$2M
50%
45.9%
$5,216,241
$4M
60%
52.3%
SOCIAT
AS
M
454
Cash Reserves as a percentage of next yearʼs Revenue Budget
67.8%
$12M
70%
$6M
27
MEMBER BANKS
Commissions
$1,657,630
11.3%
$10M
TEXAS M&As
E
Bank Dues
$2,599,771
17.8%
Product Sales
$3,071,718
21.0%
$8M
531
Trust Dues
$219,319
1.5%
Royalties
$944,557
6.5%
5
NEW
MEMBERS
TEXAS BANKS
Program Revenue
$5,619,021
38.4%
Other
$523,144
3.6%
30%
20%
10%
0%
MEDIAN
ASSET SIZE
$195,534,500
TOTAL
BANKERS
TRAINED
8,000+
May ʻ12 May ʻ13 May ʻ14 May ʻ15
% Cash Reserve to Operating Revenue Budget
“The fact that somebody robs a bank
and gives the money back doesn’t
mean they didn’t actually rob the bank.”
— Fred Gibson, the FDIC’s inspector general, com-
VOLUNTEERS
314
“Member banks having more than $10 billion in assets will be materially damaged by the resulting dilemma: either accept a severely
reduced return on a highly illiquid asset, or leave the Federal Reserve
System altogether.”
menting on incidents in which former FDIC employees
— The American Bankers Association, in a comment letter opposing the December 2015 leg-
“inadvertently” downloaded sensitive agency data
islation that substantially cut the dividends paid on the Federal Reserve Bank stock in order to
using portable media drives. In some cases, the
fund a portion of the national transportation system.
former employees lied to cover up their mistakes.
“Consumers will get less and pay more
if the CFPB’s proposal to sideline arbitration and promote class actions is
ultimately adopted.”
— ABA President Rob Nichols, discussing the
CFPB’s proposal to restrict the use of arbitration
clauses in consumer financial contracts.
“Instead of ending ‘Too Big to Fail’ & taxpayer-funded bailouts, DoddFrank enshrined them into law.”
— Tweet from Chairman of the U.S. House Committee on Financial Services Jeb Hensarling.
“The true cost of Dodd-Frank cannot be measured in terms of just
dollars and cents. The true cost includes all the small businesses that
were not started, the innovative products not produced, the workers
not hired, the homes not purchased and the dreams of financial independence and economic security unfulfilled.”
— Jeb Hensarling, discussing Dodd-Frank and the House Committee on Financial Services’s
upcoming plan to offer reforms.
38

the prospects for banking reform at this stage in the presidential race

Transcription

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