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TRANSCRIPT
January/February 2014 www.ibat.org ★ 3
20 IBAT's 2014 Education Schedule
By Julie Courtney, CAE, CMP
24 Implementing a Successful Strategic Plan Involves a Multi-Level Approach: Connecting the Dots Between Drafting the Plan and Successful Results
By Keith Hughey
26 Organizing Sales & Marketing Data to Improve ROI By Guenther Hartfeil
30 What Banks Should Know About the End of Support for XP
By Denney James
32 Tech Mecca 2014: The Premier Technology Conference & Expo for Financial Institutions
34 Are You One of the 20%?
By Steve Scurlock
INDEPENDENT BANKERVOLUME XL NO. 1
JANUARY/FEBRUARY 2014
Quote: Chris Williston
Departments
4 Up Front
6 Foundation Footprints
8 Services Solutions
10 Frontline Leadership
12 General Counsel’s Corner
14 Interest Rates
IBAT’s bi-monthly magazine, The Texas Independent Banker, welcomes letters from readers. The Texas Independent Banker, January/February, Volume XL, Issue 1. Published bi-monthly by the Independent Bankers Association of Texas, 1700 Rio Grande Street, Suite 100, Austin, TX 78701, 512/474-6889, FAX 512/322-9004. Inquiries should be sent to the Editor. Editorial guidelines are available upon request. Advertising rates may be obtained by contacting Advertising Sales at 800/749-4228 or 512/474-6889. Advertisements do not imply sponsorship by IBAT. ©2014 by the Independent Bankers Association of Texas. No part of this publication may be reproduced in any form without written permission of the publisher. Opinions expressed in this publication do not necessarily reflect official policy of the Independent Bankers Association of Texas.
Bonnie Kankel / Editor in Chief
Mary E. Lange / Contributing Editor
Darlene Revers / Advertising Manager
Leslee Walker / Advertising Assistant
John Wilson / Cover Design/Illustration
Barbara Jezek / Design/Production
16 Personnel Update
18 Association News
42 IBAT Calendar
44 IBAT Around the State
45 Advertising Directory
46 Compliance Guy
THE TEXAS
4 ★ The Texas Independent Banker January/February 2014
CHRiStoPHER L.
WiLLiSton, CAE, is
President and Chief
Executive Officer of the
Independent Bankers
Association of Texas.
Up Front
Resolutions
and so we begin another year.Don’t count me among all the well-intentioned
people who start each year with a myriad of New Year’s resolutions. I learned long ago that deciding one day to change one’s longstanding behavioral patterns was
nothing more than an exercise in futility.Lose weight. Better manage time between family and work.
Travel less. Say “no” more often. I’ve tried and failed. The end always justified the means.
Business resolutions are different. Constructed primarily from budget expectations built from the strategic plan, they are more easily managed and monitored. And executed correctly, these resolutions often result in celebration rather than failure.
I’m proud of the effort the IBAT management team and our very dedicated volunteers put into the strategic planning and annual budgeting process. All initiatives are measured against one objective: does the product or service add value to membership?
So what have we resolved for 2014? Here are our top five priorities.
Double Down on DC Lobby EffortsWe acknowledge that it is almost impossible to manage
effective lobby efforts from 2,000 miles away. And while IBAT staff has an excellent relationship with members of the Texas Congressional delegation and actively engages in the legisla-tive and regulatory process with the ICBA, the IBAT Board has committed even more financial resources in 2014 to work on advancing legislation to reduce the oppressive regulatory environment.
IBAT has secured additional “feet on the ground” in DC by retaining the services of the Policy Resolution Group of Bracewell and Giuliani effective January 1. In addition, IBAT will continue its longstanding relationship with Jim Wise of the PACE Group for DC lobbying efforts.
Few state associations can match the financial commit-ment we have made to improving the community bank business model, and advancing our long-term goal of achieving a two-tiered regulatory system.
Telling the Community Bank Story
IBAT and ICBA have made great strides through aggres-sive public relations and social media efforts in segregating com-munity banks from the systemically risk-averse banks. Over the
past two years our communication efforts have resulted in over 500 media stories and opinion pieces.
We will continue to pound away with supporting media efforts making the case that community banks are essential to small business lending and economic growth and should not be subjected to rules governing too big to fail financial institutions.
An Invaluable Compliance ResourceIBAT has made the commitment to assist our member insti-
tutions in navigating the maze of current and prospective regu-lations resulting from the passage of Dodd-Frank, and we believe it to be disingenuous to profit from an industry desperately seek-ing support and guidance.
We will continue to make available access to our experi-enced team of legal counsel and compliance specialist free of charge and expand our compliance forum to share best prac-tices and collaborative problem solving among IBAT’s member institutions.
Help Members Manage Non-Interest ExpenseIBAT Services continues to search for cooperative group
buying opportunities through its endorsed product and service offerings. Members benefitted by receiving over $2.5 million in direct discounts in 2013.
The addition of the full Dell product line of desktops, laptops, servers and hardware and software accessories will likely double the aggregate member savings in 2014.
IBAT’s insurance subsidiary, IBAT Financial Services, will con-tinue to expand its product line and insurance underwriters to secure competitive pricing to managing financial exposure and risk.
Educational Offerings Second to None
More than 10,000 directors, officers and employees partici-pated in IBAT educational sum-mits, workshops, conferences and
(Continued on page 42)
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6 ★ The Texas Independent Banker January/February 2014
Changes to the BoardIn the December issue of The Texas Independent Banker,
we were delighted to announce that Kay Bailey Hutchison had accepted the position of the Foundation’s honorary chairman. I also am delighted to announce several additional changes as we lace up our running shoes and prepare for 2014.
Ringing in the new:
Mack Neff, President & CEO, Integrity Bank, HoustonMary Scott Nabers, President and CEO, Strategic Partnerships,
AustinCliff McCauley, Senior Executive Vice President, Frost,
San AntonioSteve Sievert, Executive Vice President, Communications-Market-
ing, PULSE, Houston
These outstanding new board members share our vision and will be contributing to the conversations at the board table and working together with our fellow board members:Charles T. Doyle, Chairman, Texas Independent Bancshares,
Texas CityGary D. Edmiston, Senior Business Consultant, UT Permian
Basin Small Business Development CenterCatherine Ghiglieri, JD, President, Ghiglieri & Co., AustinCharles E. Greef, Partner, Hunton
and Williams, DallasKen Greer, Advisory Director, First
National Bank-Mount VernonRobert Hulsey, President & CEO,
American National Bank of Texas, Terrell
Mary Lange, President, IBAT Edu-cation Foundation, Austin
Bobbie McMillan, President & CEO, The Commercial Bank, Mason
Michael Thompson, President & CEO, Extraco Banks, Temple
Ringing out the old:
While we are delighted with our progress, I would be remiss if I did not also celebrate the board members who have helped us reach
WiLLARD J. StiLL is
the Board Chairman
of the IBAT Education
Foundation and Vice
Chairman of American
Bank, N.A. in Waco
FoUnDation Footprints
Community Bankers Get It
at the beginning of a New Year, we pause to recognize the IBAT Education Foundation as it moves forward into 2014. Let me begin with our most recent celebra-tions and close with the exciting changes to the Foun-dation Board of Directors.
First the celebrations:In late December, the Foundation was awarded a $30,000
grant from the Office of Consumer Credit Commissioner (OCCC) which administers the Texas Financial Education Endowment Fund, to support the IBAT Teach the Teacher™ financial literacy program. In 2014, we are planning to hold this award-winning 6 hour program in the Texas Education Agency Service Centers of Edinburg, Fort Worth, Wichita Falls, San Angelo and Beau-mont. Thanks to the growing local focus with community banker sponsors and PULSE, we have already taken this program to eight other regions of the state as we move toward our goal of taking the IBAT Teach the Teacher™ to all 20 TEA regions.
And, in late December, our community bank members were generous in their year-end contributions. We had met our bud-geted goal the night before Christmas, and I am happy to report here in the first quarter that we have exceeded our expectations. This makes our story to the corporate community even more compelling when they see our own members “getting it,” and financially supporting our Foundation and its mission of build-ing financially literate communities. As a reminder to our board and staff that these efforts are not a sprint, what we have under-taken is in fact a marathon! (Continued on page 41)
8 ★ The Texas Independent Banker January/February 2014
services solUtions
RoGERS PoPE, JR.
is Chair of the iBAt
Services Board and
Vice Chairman and
Chief operating officer
of texas Bank and trust,
Longview.
Going Online is Key to Growing Your Business
From pizzas to potential homes, consumers are shopping online for everything — including mortgages for those homes. But many banks are missing out on business because they don’t offer a robust online application.
IBAT Members are Turning to D+H Mortgagebot
To help lenders meet rising consumer demand for online options, IBAT has recently endorsed D+H Mortgagebot. Mort-gagebot provides the industry’s only true end-to-end, Soft-ware-as-a-Service (SaaS) lending platform — Mortgagebot Enterprise®.
Over 1,300 lenders nationwide — including many IBAT members — use Enterprise to provide self-serve applications online while still maximizing every branch opportunity.
Using innovative cloud-computing technology allows lenders to stay open around the clock, allowing borrowers to complete applications anytime and anywhere it’s convenient for them. And applicants find the application process, which takes as few as 20 minutes, an easy, sat-isfying experience.
In the branch, Enterprise empowers all associates to quote rates and complete applications to better serve borrowers and alleviate the workload for loan officers. The web-based solutions empower loan officers to be more productive and mobile, and deliver instant disclosures, eliminating bottlenecks and easing compliance complexities.
The platform eliminates cumbersome, manual processes and also helps streamline all processing requirements, increase loan production, reduce operat-ing costs and enhance service. Enterprise’s processing through post-closing capabilities provide lenders administrative interface, real-time data management and more efficient, paperless docu-ment imaging.
Leveling the Playing Field for Community Lenders
For community lenders,
Enterprise is the affordable, scalable tool needed to level the playing field against large lenders. Enterprise gives bankers a competitive edge over institutions that do not have web appli-cations — better positioning them for future business growth.
Advanced Compliance Support
Enterprise alleviates compliance burdens with solutions that provide accurate rates and fees, instant disclosures at the point of sale, back-end processing (UCDP, UAD, ULDD, Equifax UDM, Fannie Mae Early Check), disclosure alerts to help meet RESPA, TILA, MDIA and Regulation B, and automated updates – avail-able only with 100% web-based, cloud technology.
Looking Ahead Through the Cloud
In 2012, 53 percent of Mortgagebot clients originated more than half their volume through Enterprise — and these num-bers are projected to rise as volume and rates continue to drive demand for online technology.
Industry fluctuations make online-application capability a necessity for long-term lending success. Built-in optimization of online-application capability has changed the face of mortgage lending because of its success in adjusting to external factors, and the channel (by far the low-est cost channel for loan-volume growth) can give lenders cost-effi-cient scalability through the right platform. ★
To learn how D+H Mortgagebot can help you, contact Dustin McClelland at 281-256-9106 or dustin.mcclel-
10 ★ The Texas Independent Banker January/February 2014
KEVin MonK
is Chairman of the
Leadership Division and
Senior Vice President at
Alliance Bank in Sulphur
Springs.
Frontline leaDership
Success…Value…Involvement
i can’t believe that 2013 is already over and we are starting a new year. Even more so, I can’t believe that my term as Leadership Division Chairman is halfway over. Time truly flies when you are busy with so many successes as a Division. From the success in raising money for the PAC at last fall’s
IBAT Convention to the continued rollout and success of the new Leadership Division structure, 2013 was good and 2014 will be even better.
Membership in the IBAT Leadership Division is at an all time high, with the current number of members as of this writ-ing at 563. With the wildly popular success of last summer’s Leadership Division Conference to the many regional meetings held across the state to the success of the new regional structure, more and more community bankers are seeing the value of being a part of the Leadership Division. If no one in your bank has become involved, I encourage you to take the time to do so. You will not be disappointed.
The new structure has also allowed us to bring more value to the membership through various regional meetings. From golf tournaments and sporting clay shoots, to networking events and luncheons, to cocktail receptions and mixers, to learning about credit scores and even a family fun day at a water park, we have offered it all…and we aren’t stopping there. Check the IBAT website for upcoming events in your region and if there is some-thing you want to hear about or do, please let us know and we will do our best to bring it to you!
A heartfelt congratulations to my dear friend Julie Mayrant with Woodforest National Bank for being selected by IBAT Chairman Jay Gober to serve on the IBAT Board of Directors. Julie’s hard work and commitment to the Leadership Division and community banking made her an easy choice as one of Jay’s Chairman Picks for appointment to the IBAT Board. Although we will miss her on the Leadership Board, she will be an excel-lent member of the IBAT Board.
Don’t forget IBAT’s TechMecca Conference coming up next month at the Renaissance Arboretum in Austin. This is an opportunity for community bankers across the state to gather and see and hear what is new and evolving in technology as it relates to our industry. It is not just for the techies at your bank. If you are involved in the management of your bank, you need to be there. It is one of the best events you will attend this year!
Also, please consider partici-pating in the IBAT Congressional visit in Washington DC on April 29–May 2. You may not think you can make a difference, but I assure you the whole is much more power-ful than the individual pieces. It is vitally important that our congres-sional leaders hear and see us and the passion we have for community banking. Make plans to attend.
“Alone we can do so little; together we can do so much” — Helen Keller
Until next time…God Bless! Kevin ★
2 3 4 5
6
7 8 9
10
11
1 LD Area Region 1
LD Area Region 6
LD Area Region 8
LD Area Region 11
LD Area Region 10
LD Area Region 9
LD Area Region 5
LD Area Region 4
LD Area Region 3
LD Area Region 2
LD Area Region 7
Speaking of the new structure, the remaining regions will convert to the new regional structure early this year. It seems like only yesterday when we began discussions on ways to get bankers involved in the Leadership Division. Through the new regional structure, there is a place and a role for every commu-nity banker who wants to volunteer their talents to the Leader-ship Division. Regions 1 and 5 will conduct elections in March for new chairpersons in those regions. If you are a member in either region and are interested in being involved in that capac-ity, please let us know.
12 ★ The Texas Independent Banker January/February 2014
General coUnsel’s corner
KAREn nEELEy
received her BA and
JD from the University
of Texas at Austin.
She is a director for
the Texas Association
of Bank Counsel and
General Counsel for the
Independent Bankers
Association of Texas.
Mining the Internet for Compliance Resources
regulatory compliance burden has taken first place in the race for biggest threat to community banking. The number and complexity of rules just keeps growing at an amazing pace. This translates to increased costs to banks just to keep up. In smaller institutions, compli-
ance officers commonly wear multiple hats. Thus, it is important to be able to find good sources of information. And when that information is freely available, that is even better.
So, let’s look at the Internet to find those sources.
IBAT Web Page
For IBAT members, one of the first and best resources is quite simply the association’s web page (ibat.org) and newslet-ters. The legal section includes Capitol Comments, a monthly recap of regulatory news and changes, which includes quick links to the primary sources along with a helpful analysis. The weekly e-Newsletter includes the hottest news along with the legal case study for the week (Legal Ease). Bankers can share knowledge in the IBAT Compliance Forum. In addition, there are white papers on compliance topics and a cache of the Legal Ease columns.
Regulatory Web PagesEach of the state and federal regulators has its own web
page. Each of these has a search feature. These pages typically include links to regulations, examination materials, handbooks, consumer resources, guidance, interpretative letters and other useful material. As a practical matter, this means that you can pull up federal regulations online rather than subscribe to a ser-vice. Also, you have ready access to explanatory materials. For example, the exam manuals explain various regulations. The Interagency Fair Lending Examination Procedures is an excel-lent explanation of fair lending rules and expectations.
The FDIC has an institution directory which can be used to obtain info on other banks and holding companies. Similarly, the state regulators have sections for their regulated entities. Thus, you can quickly check on the license status of a mortgage broker, insurance agent, money service business or other entity that is required to have a state license or registration. This can be very useful as part of due diligence on new customers or vendors.
The CFPB’s web page is aimed more at consumers than at financial institutions. However, its “Law & Regulation” section includes regulations, guidance, and a very complete resource on the mortgage rules. These include online Small Entity
Compliance Guides that are very readable and helpful. In addi-tion, there are videos on each of the mortgage rules which can be watched online. Alternatively, you can print out the transcript.
Training Materials
The FDIC’s web page includes under “News & Events” its links to various meetings and conferences. Training materials and PowerPoint presentations on a variety of topics are avail-able. These include CRA, Compliance Management, Cyber Fraud, Director’s Roles and Responsibilities, Fair Lending, Flood Insurance, Interest Rate Risk, Third Party Risk, and more.
Similarly, the Federal Reserve has a specific web page devoted to directors called Bank Director’s Desktop. It includes training for directors. In addition, it links to the OCC publica-tions for directors! These OCC publications include the Direc-tor’s Toolkit, which includes several guides as well as The Direc-tor’s Book—The Role of a National Bank Director.
Consumer Education
Many banks provide newsletters to their customers. In addi-tion, they need educational material on overdraft protection and how to avoid excessive overdrafts in order to satisfy Best Practices. Both the FDIC and the Fed have brochures that can be downloaded and then used to meet this need. In addition, the FDIC has an array of consumer news and informa-tion resources, including a regular newsletter, which can be a good outreach tool for a community bank. For many years, the FDIC has made available a brochure on Your Insured Deposits. In addition, there is a deposit calculator avail-able online, which can be useful at the new accounts desk.
UpdatesVirtually all of the regulatory
web sites include a way to subscribe to that agency’s e-mail news list. This is free, but it can quickly fill up your inbox! However, you will
January/February 2014 www.ibat.org ★ 13
get proposed and final regulations when they come out (before they are actually printed in the Federal Register), news items, guidance and other resource material. For example, FinCEN (Financial Crimes Enforcement Network) publishes guidance from time to time on various BSA issues. These can be received from the FinCEN Update subscription as they come out. The Texas Department of Banking publishes a regular newsletter that summarizes and links to important regulatory developments.
Due Diligence ResourcesThe Texas Secretary of State has a portal, SOSDirect, which
provides inexpensive, quick filing for UCC-1s and the like as well as for corporate and other business organization filings. In addition, it provides great search capabilities. This can facilitate a bank’s verification of customer ID under the Customer Identi-fication Program required by the USA PATRIOT Act as well as helpful information for loan underwriting. Even if the agency is closed, the web page is always “open for business.”
In addition, it is always smart to perform a search through Google or some other search engine to look for news items, liti-gation in the news, complaints and the like.
Texas Legislative ResourcesThe Texas Legislature Online is a very comprehensive web
site that includes information and links to the Texas House and its members as well as the Texas Senate and its members. It has
useful material on pending and passed legislation. In addition, it links to the Legislative Reference Library as well as the Texas Administrative Code, constitution and statutes. Unfortunately, these are not updated quickly for the changes from the most recent legislative session. However, they are a good starting point.
Employment LawBoth the Texas Workforce Commission and the U.S.
Department of Labor have web pages that provide a wealth of information about state and federal employment laws, including workplace posters which can be downloaded. The DOL material includes simple “fact sheets” from the Wage and Hour Division on the Fair Labor Standards Act as well as basic information on all federal employment laws.
Other Resources
The items described above are the most significant to financial institutions as they grapple with the growing regula-tory compliance matters. Of course there is much more that is useful—like the U.S. Census page, EDGAR (for SEC filings), and other state and federal agency material. And there is much that is just for fun—or a time waster—depending on your per-spective! Hopefully this quick overview will provide you with new ideas about ways to mine the Internet for free compliance materials. ★
14 ★ The Texas Independent Banker January/February 2014
interest rates
(Continued on page 42)
JEFFREy F. CAUGHRon
is Associate Partner with
The Baker Group LP
Interest Rate Risk A Priority for 2014
The Banking Environment:
As we move into a new year, the US economy continues to plod along at a slow and steady pace. Things are getting better, but we’re still far from where we were before the “Great Reces-sion” began. Meanwhile, the banking landscape has improved markedly as earnings have clocked sixteen consecutive quarters of year-over-year increase. Returns on assets remain below pre-recession levels, but they’re higher than a year ago and com-fortably above one percent. Much of the improved performance comes from healthier asset quality. Loan losses have declined to levels not seen since 2007, and provisions have fallen nearly forty percent. All of this is good news, but make no mistake; banks face a multitude of challenges ahead.
Spotlight on Interest Rate Risk:Not the least of these challenges is that of potential inter-
est rate risk. Regulatory agencies have once again elevated IRR as a focal point for examiners, as evidence suggests that many financial institutions are taking on higher levels of interest rate risk. Balance sheets have changed noticeably in recent years as loan demand has been weak and short-term rates have hugged historic lows. This could leave them significantly exposed to a sustained increase in interest rates.
In October, the FDIC released an FIL on Sensitivity to Mar-ket Risk (IRR). Simultaneously, the OCC conducted a webinar to address the IRR issues they thought most important. There is a consensus among regulators that the essential risk for banks stems from long-term (or high duration) assets funded by non-maturity deposits that have surged into bank balance sheets in the wake of the Great Recession. The influx of “surge depos-its” has regulators concerned about the potential for fast rising interest expense from rate sensitive liabilities. At the same time, asset values could come under greater pressure than in past rate cycles because effective durations are relatively high. The price risk of some investment portfolios has increased significantly in the past few years due to lengthened maturities, options risk, and declining yields.
Management Tools:The regulatory concerns should cause bank mangers to pon-
der several questions about the reporting tools that they have at their disposal:1. Do we have reports that project securities depreciation rela-
tive to capital in a rising rate environment?
2. Does our IRR model shock the fair value of regulatory and risk-based capital ratios as well simple equity capital?
3. Do we have a way to model faster re-pricing liabilities rela-tive to earning assets?
4. Are “floors” on loans modeled properly in our IRR system?5. Do we have reports that show how our balance sheet liquid-
ity is affected by rising interest rates?6. What if we just want to look at securities cash flow?
Risk Management decision-making depends on thorough and meaningful data in a useable report format. The five ques-tions above are good ones to consider when assessing the ade-quacy of an IRR reporting system.
Risk, Capital, and Stress Tests:It makes good sense to measure and monitor the relation-
ship between unrealized losses and capital. And this extends to various measures of capital itself. For example, if we apply the mark-to-mark adjustment for securities to risk based capi-tal measures, we can more closely capture a total picture of the bank’s relative risk. All else being equal, a bank that makes rela-tively few loans can sometimes justify a higher level of interest rate risk than a bank with a high loan/deposit ratio. Similarly, well-capitalized banks with pris-tine asset quality can tolerate more interest rate risk than those with high “Texas Ratios.”
Institutions should run stress tests on assumptions for non-maturity deposits in IRR models to identify exposure to rising rates and higher interest expense. Back tests and assumptions reviews should ensure that floors on loans are being modeled properly. The dynamics of balance sheet cash flows should be reported and reviewed, and invest-ment cash flow projections tracked for different rate environments.
Banks have again been given a “heads up” from examiners on interest rate risk. With proper reporting tools, good policies, and sound processes, the regulatory
Winning the Performance Challenge
Member: FINRA and SIPC Oklahoma City, OK Austin, TX Birmingham, AL Indianapolis, IN Salt Lake City, UT Springfield, IL 800.937.2257*The Baker Group LP is the sole authorized distributor for the products and services developed and provided by The Baker Group Software Solutions, Inc.
For 35 years, The Baker Group has helped community financial institutions steer through unpredictable
economic environments with the use of robust tools and resources for interest rate risk and investment
portfolio management. Moving through 2014, we must set our focus on strategies that raise our
and meet new challenges. Our task is to help financial institutions develop effective
processes and strategies for optimal in any environment.
Our proven approach of total resource integration
utilizing software and products developed by Baker’s
Software Solutions* — combined with our solid investment
experience and advice — makes us the investment firm of
choice for financial institutions. When facing the challenge
of an uncertain environment, The Baker Group can help
you win the performance challenge.
Asset/Liability Management for High PerformanceEvaluate Earnings and Capital at Risk
Simulate Stressed Rate Scenarios
Analyze Risk Management Strategies
High Performance Investment StrategiesDevelop Quarterly Strategies
Determine Optimal Relative Value
Manage Risk vs. Reward Tradeoff
Education for High PerformanceTailored Board Education
Webinars for ALCO
Interest Rate Risk Seminars
To find out how The Baker Group can assist your institution in defining and meeting its financial
objectives, call your Baker representative or Ryan Hayhurst at 800.937.2257.
Winning the Performance Challenge
Member: FINRA and SIPC www.GoBaker.comOklahoma City, OK | Austin, TX | Birmingham, AL | Indianapolis, IN | Salt Lake City, UT | Springfield, IL | 800.937.2257*The Baker Group LP is the sole authorized distributor for the products and services developed and provided by The Baker Group Software Solutions, Inc.
For 35 years, The Baker Group has helped community financial institutions steer through unpredictable
economic environments with the use of robust tools and resources for interest rate risk and investment
portfolio management. Moving through 2014, we must set our focus on strategies that raise our
performance and meet new challenges. Our task is to help financial institutions develop effective
processes and strategies for optimal performance in any environment.
Our proven approach of total resource integration
utilizing software and products developed by Baker’s
Software Solutions* — combined with our solid investment
experience and advice — makes us the investment firm of
choice for financial institutions. When facing the challenge
of an uncertain environment, The Baker Group can help
you win the performance challenge.
Asset/Liability Management for High PerformanceEvaluate Earnings and Capital at Risk
Simulate Stressed Rate Scenarios
Analyze Risk Management Strategies
High Performance Investment StrategiesDevelop Quarterly Strategies
Determine Optimal Relative Value
Manage Risk vs. Reward Tradeoff
Education for High PerformanceTailored Board Education
Webinars for ALCO
Interest Rate Risk Seminars
To find out how The Baker Group can assist your institution in defining and meeting its financial
objectives, call your Baker representative or Ryan Hayhurst at 800.937.2257.
16 ★ The Texas Independent Banker January/February 2014
Shannon Hinders Eubank Corpus
personnel UpDate
Peterson Brown Mason
Andrews
J. Russell Shannon has been elected to the Federal Reserve Bank of Dallas board of directors by its member banks. He will serve a three-year term starting Janu-ary 1, 2014. Shannon, president, CEO and chairman of the board of National Bank of Andrews for the past 27 years, has 35 years of experience in the banking industry. As a Dallas Fed board member, he will provide input into regional economic conditions as part of the Federal Reserve’s monetary policy functions. Shannon is a graduate of Sam Houston State University and Texas Tech University Intermediate School of Banking.
Happy
Gary Hinders has been elected presi-dent of Happy State Bank. Hinders gradu-ated from West Texas A&M University with a Bachelor’s of Science degree in Agriculture Business and Economics. He is also a graduate of the Southwest Gradu-ate School of Banking at Southern Meth-odist University and Texas Tech School
of Applied Banking. Hinders began his banking career as a credit analyst with Happy State Bank in 1992. He has served in many capacities related to lending and most recently as executive vice president in charge of lending.
J. Alan Eubank has been promoted to president of the Pampa market for Happy State Bank. He joined Happy in 2011 and has served as senior vice president in com-mercial lending since that time. Eubank graduated from Texas Tech University with a Bachelor of Science degree in Agricultural Economics and Finance and has over 17 years of banking experience.
Ryan Monroe, who previously served as president of Happy State Bank’s Pampa market, has relocated to Amarillo. He joined the bank in 2008 and has 18 years of banking experience. Monroe will serve as senior vice president in commercial, oil and gas lending at the Amarillo down-town location. He will continue work-ing with his existing lending relation-ships and assist in Pampa when needed. Monroe obtained a Bachelor’s of Business
Administration degree from Wayland Baptist University.
Houston
David Corpus has been appointed by Governor Rick Perry to the Teacher Retirement System of Texas Board of Trustees with a term to expire in 2019. Corpus is a senior vice president of Com-munityBank of Texas in its Houston region. With 29 years in finance and bank-ing, Corpus has also been involved with the creation of charter schools in Texas for the past 17 years. As one of nine board members, Corpus will serve as a trustee for the $117.5 billion TRS trust fund, securities and other assets. He earned his Bachelor’s degree and Master of Business Administration from Our Lady of the Lake University at San Antonio.
Debbie Peterson has been named vice president and director of compliance for Integrity Bank. Peterson’s 38 years of banking experience have been mostly in the lending division, focusing on resi-dential construction. Debbie recently
January/February 2014 www.ibat.org ★ 17
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achieved the designation of Certified Community Bank Compliance Officer, and is an active member of IBAT and Jr. Achievement. Integrity Bank recently opened two new locations, now serving clients in The Woodlands and in South-east Houston.
Longview
Barry Brown, a naval reserve captain with more than 30 years’ banking experi-ence, has joined Texas Bank and Trust as president of the bank’s Dallas market. Brown will lead the bank’s expansion into the north Texas Metroplex. He served most recently as president of the Bank of the Ozarks’ Manatee-Sarasota market, located on the Florida Gulf Coast. Brown holds a Bachelor of Arts degree in Busi-ness Administration/Finance from South-eastern Louisiana University. A Captain in the United States Navy Reserve, Sup-ply Corps, Brown is an Operation Desert Shield/Desert Storm and Iraqi Freedom veteran.
Paul Mason has joined the staff of Texas Bank and Trust Company as vice president and portfolio manager in the bank’s trust division. Mason has over eight years of experience in the investment man-agement field, and most recently worked in Northern Trust’s Houston office as an associate portfolio manager. In his new role with Texas Bank and Trust, he will be responsible for managing existing portfo-lios for trust, retirement plan services and investment management accounts, as well as helping to develop new business for the division. Mason holds a bachelor of busi-ness administration degree from Abilene Christian University.
San Angelo
CalTech has announced that Mark Conlon and Eric Durbin were recently promoted to mentor, the highest level engineer at the company. The mentor role is a technical role but also a leader-ship role in which the mentor works with growing engineers to develop their tech-nical skills as well as customer relation-ship skills. Conlon has been with CalTech for six years, and Durbin has been with CalTech for five years. ★
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AssociAtion news
18 H The Texas Independent Banker January/February 2014
First American Payment systems offers next Day Merchant Funding
First American Payment Systems recently announced the release of Next Day Funding, which allows qualifying merchants to receive their funds in half the time of traditional processing time-lines. Next Day Funding will positively impact businesses that rely on cash flow to meet operational obligations.
“In a year marked by enhancements to our mobile solutions and the introduc-tion of our proprietary tablet POS system, we are excited to announce the addition of Next Day Funding to our partners and merchants,” Neil Randel, chief executive officer of First American Payment Sys-tems, said.
H
Diebold Helps secure one of the Largest Gold Mines in the world
Diebold, Incorporated is helping to secure Pueblo Viejo Gold Mine, one of the largest gold mines in the world. Located in the Dominican Republic, the Pueblo Viejo Mine has proven and probable gold reserves of 25 million ounces.
“Diebold’s experience in securing large sites helped us approach the Pueblo Viejo Mine project holistically, defining security systems and strategies to mitigate both external and internal threats,” Mike Mateo, vice president of the Latin Amer-ica Division at Diebold, said.
To secure this high-value site, Die-bold installed and implemented advanced video surveillance, access control, intru-sion detection and perimeter monitoring systems. The company integrated these systems via a customized software applica-tion, enabling on-site security personnel to efficiently monitor the entire property in real time.
newtek Business services selected to service $400 Million
Loan PortfolioNewtek Business Services, Inc.
announced that its subsidiary Newtek Small Business Finance, Inc. has been selected to service a $400 million portfolio of SBA 7(a) loans for a large institutional client. The servicing has transferred and is currently part of Newtek’s loan servic-ing portfolio.
“We are extremely pleased to announce that our total loan servicing portfolio has exceeded $1.0 billion, a level that not only represents a milestone in the company’s operating history but also exceeds our previously stated expecta-tion,” Barry Sloane, chairman, president and chief executive officer of Newtek Business Services, Inc. said.
H
Fiserv Announces Guardian Analytics FraudMAP solutions
Fiserv, Inc. announced that it will offer Guardian Analytics FraudMAP solutions, delivering integrated behav-ior-based anomaly detection solutions to Fiserv consumer and business banking cli-ents. The agreement provides Fiserv cli-ents with a new option for strengthening layered security and meeting the Federal Financial Institutions Examination Coun-cil expectations for anomaly detection.
FraudMAP is widely deployed at financial institutions to proactively pre-vent consumer and commercial fraud. The solution protects against a wide range of account takeover threats including mal-ware, phishing, social engineering, vish-ing, data breaches and payments fraud.
“We are committed to providing our clients with industry-leading layered secu-rity solutions tightly integrated into our
banking products,” Tom Cypher, presi-dent of product management and devel-opment at Fiserv, said. “FraudMAP is the latest addition to our existing suite of pro-tections and provides a new and proven approach to detecting suspicious account activity and payments.”
H
iBAt esPs Honored Among top Fintech companies
Several of IBAT’s Endorsed Service Providers made the list of American Banker’s FinTech100 – Top 100 Compa-nies in Fintech. Those honored at this year’s event included: •Diebold,Incorporated •FirstData •D+H •ComputerServices,Inc.
Additionally, the following IBAT associate members were also included on the list: •ACIWorldwide,Inc. •BancVueLtd •FIS •JackHenry&Associates,Inc. •TotalSystemServices,Inc.
(TSYS)
H
swAcHA services corporation Partners with Aptys solutions
SWACHA Services Corporation has officially partnered with Aptys Solutions to strengthen payment processing oppor-tunities for financial Institutions. Aptys Solutions is able to consolidate payment processing including an end-to-end auto-mated clearing house (ACH) solution for originating, analyzing, processing, receiv-ing, managing and monitoring ACH transactions.
“We chose to partner with Aptys Solutions because of its turnkey ACH
January/February 2014 www.ibat.org H 19January/February 2014 www.ibat.org H 19
solutions that provide strong competitive advantages for our members and other cli-ents,” Tim Quisenberry, AAP, president of SWACHA Services, said.
Aptys’ ACH technology provides financial institutions with a cost-effective and efficient method for processing ACH transactions through a unified payments platform. This offers lower transaction processing costs and more efficient clear-ing services for managing payments today and in the future.
SWACHA also reported that elec-tronic payments continue to rapidly become the most preferred form of bill payment among consumers, according to a recent survey of more than 600 Texans. In SWACHA’s 2013 Consumer Insights
Survey, 88 percent of respondents reported they pay at least one bill elec-tronically, up from 82 percent in 2009; and nearly half of those indicated they have increased their use of electronic payments compared to 12 months ago as payment method trends continue to shift from traditional paper checks to mobile and online platforms.
H
calyx software introduces calyx Verifyde
Calyz Software now offers govern-ment-required regulatory mortgage com-pliance reports through Calyx Verifyde. This new product will create reports that provide financial institutions with a one-
stop solution that adheres to reporting regulations at both the state and federal levels.
“We wanted to keep Verifyde simple, so we created bundles to match each busi-ness type, with the specific state and fed-eral reporting needs to match,” Dennis Boggs, executive vice president of business development at Calyx Software, said.
Additionally, Calyx Software has expanded The Calyx Network with an interface update. The Calyx Network allows users of Point to connect directly with lenders and mortgage service provid-ers. The November update will be auto-matically installed into Point versions 8.0 and higher when users open their software and connect to the Internet. H
Looks like Happy State Bank needs a bigger drive-through.
20 H The Texas Independent Banker January/February 2014
Along with political advocacy, banker education stands at the center of IBAT’s mission. Through the IBAT Education Foundation, we’ve built a unique lineup of live summits designed to meet the needs of community bankers. IBAT leaders survey the landscape of changing regulations and new challenges to the industry, adapting our educational lineup to assist your staff and directors each year.
There is no better way to nurture the future of our industry and the success of your enterprise than committing to education. Consider the variety of programs offered by IBAT — including education summits, Leadership Conference, cluster programs, webcasts and the Annual Conven-tion — to meet your staff ’s educational needs in 2014.
eDUcAtion cALenDARWinter Summit
February
9-11• South Lake Tahoe •
This summit offers plenty of network-ing opportunities and social time with the speakers and other attendees, along with a fabulous venue, reasonably priced accom-modations and lots of fun. Education sessions are designed to encourage audi-ence questions and participation. You’ll have the opportunity to candidly discuss
pertinent issues with senior officials from the OCC, FDIC, Fed and Banking Depart-ment. Three of the preeminent banking lawyers in Texas will address current hot topics impacting your bank and your bot-tom line. And, finally, you can take part in a lively discussion on the present state of the economy, predictions for the future and appropriate strategies for investing in turbulent times.
Hold, Fold or Raise? An M&A Workshop for
Community Banks
February
20-21 • Dallas •
IBAT remains committed to a vibrant and healthy environment for indepen-dent community banks and continues to work for legislative relief to foster long-term success for the industry. Neverthe-less, we understand that market forces
IBAT’s 2014 education
scheduleBy Julie courtney, cAe, cMP
January/February 2014 www.ibat.org H 21
inevitably may present you and your bank with opportunities to buy, sell or merge. Thus, we want to arm you with knowl-edge to make informed decisions in this financially important area. Specifically, as a bank director, CEO or senior officer, you need to be fully prepared to objectively and capably assess whether the most appropriate strategic plan for your bank involves being a buyer, merger partner, or perhaps, a seller.
Credit Analysis Summit
March
18• Dallas •
This one day program is designed to introduce critical financial and non-finan-cial credit analysis considerations, docu-mentation, monitoring and other impor-tant factors central to the review of most major loan types. The program emphasizes ratio analysis, balance sheet and income statement trends, SFAS 95 cash flow anal-ysis and non-financial considerations criti-cal to sound underwriting principles.
Advanced Credit Analysis Summit
March
19-20 • Dallas •
Intended for a more experienced audience, this program covers financial statement analysis concepts and SFAS 95 cash flow analysis in more depth, applying UCA cash flow analysis to specific types of loans. Case studies are used to cover underwriting issues, policy guidelines, working capital needs, business risks, col-lateral valuation, borrowing base financ-ing, and other issues as they pertain to commercial credits.
How to Create and Maintain a Sales Culture in
a Community Bank
March
26-27 • San Antonio •
This program explores the concepts and skills necessary to establish an effec-tive sales environment in your bank. You will learn about the key components in structuring a sales environment, how to develop employees’ attitudes and abilities toward selling, as well as tools and tech-niques to identify customer needs and successfully sell your bank’s products and services.
Lending Compliance Summit
April
17-18• San Antonio •
This summit will provide an overview of recent regulatory changes, litigation of interest and practical recommendations for implementation at community banks, along with moderated “best practices” ses-sions. Come for the latest information and an unparalleled opportunity to network and share ideas with your peers!
Nuts and Bolts of Banking Summit
April
29-30• San Antonio •
In this program, ideal for beginning bank employees, you will learn about the complete banking process, including how banking institutions are structured and regulated along with what banks do and how they do it. This is also a perfect learn-ing opportunity for bank suppliers who could use a primer on how a bank works.
Bank on Boot Camp
June
3-4 • Austin •
IBAT teams up with SWACHA to bring you this two-day ACH educa-tional event designed to help you attack the ACH rules, explore new ACH rules, chart the course of the ACH return items, navigate the maze of an ACH file, and mitigate the risk management enemy in all its forms.
(Continued on page 22)
22 H The Texas Independent Banker January/February 2014
29th Annual Leadership Conference
June
26-28• San Antonio •
This 2½ day conference is designed to inspire and involve the leaders of commu-nity banks. All Leadership Division mem-bers, presidents, CEOs, CFOs, executive management, branch managers as well as up and coming employees are encouraged to attend. In addition to first-class speakers and educational sessions, the conference is an excellent opportunity for network-ing and sharing ideas and solutions with peers. With a resort location and family-friendly agenda, attendees are encouraged to combine professional development with a family vacation.
officers. The summit spotlights success-ful programs that earn CRA credit where local bankers have promoted financial education initiatives, and demonstrates practical ways you can bring financial lit-eracy information to your community.
Operations Compliance Summit
August
14-15• Dallas •
The operations side of the bank con-tinually faces challenges with increased regulations and aggressive consumer pro-tection actions. Furthermore, litigation against banks has exposed several areas of concern. The speakers at this program will provide an overview of recent regula-tory changes, litigation of interest, as well as practical recommendations for imple-mentation at community banks.
Appraisals Summit
August
28• San Antonio •
This course provides attendees with the underlying knowledge and skills required in reviewing a commercial real estate appraisal to determine compli-ance with appraisal regulations and stan-dards as provided by the Uniform Stan-dards of Professional Appraisal Practice (“USPAP”). Through case studies and exercises, participants will evaluate the real estate appraisal as a key component in the credit risk assessment process for commercial real estate loans.
34th Annual Bank Operations Institute (BOI)
October
12-17• Dallas •
Guided by the industry’s top regula-tors and educators, BOI builds its program around moving operations officers from the back room to the boardroom. Here the emphasis is on practical, real-world issues and solutions. BOI takes students through the nuts and bolts of operations to a new level of strategic thinking and presentation. Students from a multi-state area attend BOI for one week each fall for two years. The program is taught by noted regulators, bankers, educators, and profes-sionals with an emphasis on the practical skills needed for effective and profitable operational management.
Certified Community Bank Director Seminar
October
31-November
1• Dallas •
The Certified Community Bank Director (CCBD) designation is a collab-oration of and administered by the Inde-pendent Bankers Association of Texas and the SW Graduate School of Banking
eDUcAtion cALenDAR
Financial Literacy Summit
July
24-25 • Dallas •
This seminar will benefit anyone involved in their financial institution’s community outreach program: senior management, compliance officers, mar-keting officers and business development
January/February 2014 www.ibat.org H 23
Foundation. This certification covers the regulatory and fiduciary responsibilities of bank directors, board structures and pro-cesses, effective board governance and expectations of board members by regula-tors, examiners and shareholders.
Investment & Asset/Liability Management Summit
November
6• San Antonio •
Community banks continue to oper-ate in an environment characterized by intense competition, regulatory scrutiny, and economic uncertainty. This program will help shed light on some important changes taking place in the financial industry and their impact on community banks. With the regulatory landscape as a backdrop, the discussion will then shift to a macro-economic review and its influence of and implications for both investment portfolio strategy and inter-est rate risk management. The discussion will continue with specific investment product analyses and potential strategic alternatives. Throughout the program, emphasis will be focused on the need for community banks to develop compatible and complementary strategies that will promote the optimal utilization of the investment portfolio as a valuable man-agement tool.
the excellent training they receive locally, the benefit for IBAT member banks is they can send an unlimited number of employees for one flat rate. It is training you need, where you want it! Offerings include such topics as BSA/AML, culti-vating proactive customer advisors, and fair lending.
COMPLIANCE SEMINARSIBAT cosponsors compliance pro-
grams with Professional Bank Services (PBS). PBS has conducted seminars throughout the U.S. for more than 20 years. They provide educational programs to thousands of bankers through their relationship with 25 banking associations and several banking agencies. Training clients include various financial institu-tion regulatory agencies.
Compliance Topics Covered for 2014•Anti-MoneyLaundering&Bank
Secrecy Act School•TexasDepositDocumentation•HMDA•RESPA•Dodd–FrankUpdate–RegZ,Band
RESPA•IntroductiontoLendingCompliance•MortgageDisclosureWorkshop
WEBCAST/TELEPHONE SEMINARSIn conjunction with Financial Edu-
cation, Inc., telephone/webcast seminars are a very economical way to train your employees and directors. For one low price, everyone in the bank can sit in on the program with the use of a speaker-phone and a computer.
Additionally, by choosing the web-cast option, participants will also be able to view online visuals as the presentation is delivered. The sessions are one hour and fifteen minutes in length with a fif-teen minute question and answer period.
*Because you are a member of the Independent Bankers Association of Texas, you have access to participate in these webcasts at the Member rate. H
IT Security SummitDate TBD
• Dallas •
This summit is designed for CEOs, COOs, security officers and anyone responsible for risk management of a community bank’s information technol-ogy department. Speakers will cover the hot topics facing community banks’ IT departments from a banker viewpoint and the regulatory issues of the IT exam.
Head Teller SchoolDates & Location TBD
Whether new to the position or very experienced, tellers and customer ser-vice representatives will benefit from this seminar. The program will develop and improve skills in recruiting, retaining and managing employees; achieving outstand-ing customer service; cross-selling bank products and services; and best practices relating to bank robberies, fraud, Reg CC compliance and Fed Funds availability, among others.
Branch Manager Certification SchoolDates & Location TBD
During two two-day sessions, par-ticipants will learn about managing staff – hiring, coaching, team building; moni-toring and improving customer service; as well as setting sales goals and effective selling. They will also learn tips and tech-niques for becoming more organized and efficient, and how to set realistic goals and objectives for the branch.
CLUSTER PROGRAMSIBAT’s Cluster Programs provide cost-
effective training for your employees and directors. Bankers from numerous banks in a close geographic area are invited to participate in a live two-hour evening workshop on a banking hot topic. Besides
24 H The Texas Independent Banker January/February 2014
Community banks continue to address the challenges posed by an ever-changing marketplace, economic and regulatory uncertainty, and shifting customer ser-vice expectations. As a
result, having a clearly defined strategy for setting goals, focusing resources and mea-suring outcomes is essential, regardless of whether an institution is in the acquisi-tion mode; is preparing to sell; or simply implementing new programs and services to position itself as the primary financial services provider for its customer.
Unfortunately, too many bank leaders still adhere to the belief that strategic deci-sions are developed based on the 30,000-foot perspective of the corner office and board room. And while it is imperative for management and the board to be on the same page regarding the overall direction the bank will take going forward, strategic planning should involve much more than an upper management point of view.
The ABCs of an effective strategic plan
To be effective, a strategic plan should have no more than three major strategic initiatives and the planning process includes the perspectives of staff at every level of the organization who are tasked with the everyday responsibil-ity of implementing the proposed actions and changes. While not everyone will
necessarily provide input of a strategic nature, the tactical ideas shared by those on the front line can provide valuable insight relative to operational realities, customer needs and any procedural inef-ficiencies that need to be addressed.
In order to jump start staff involve-ment in the strategic planning process, management should create an initial communications outline that:•sharesthebank’svision,missionand
values;•gathersstaffinputregardingchallenges
and opportunities for improvement; •explainstheroleeachstaffmember
plays in making the bank successful; and•definesspecific,measurablestepsfor
employees to complete in relation to the plan.
Once implementation begins, each strategic initiative should be given an owner who will take responsibility for moving it to completion. Throughout the process, effective use of project manage-ment tools can help to identify bottle-necks and help to redirect project efforts when necessary.
In addition, it is important to have survey tools in place that enable manage-ment to determine how employees are reacting to the changes that are affecting the workplace, and ultimately whether or not customers are experiencing an improved service experience.
Creating emotional ownership to support organizational improvements
Developing the type of culture where employees feel that their opinions are valued creates an emotional connection between their efforts and the resulting benefits for the organization. When peo-ple feel that emotional “ownership,” they are more likely to work harder to ensure that goals are met and they are more alert to additional ways that enable the institu-tion to deliver better results and greater value to its customers.
Measuring momentum and results
At regular intervals, management should convene the staff to share exam-ples of how the plan is progressing and to acknowledge the important role everyone is playing to help the bank reach its stra-tegic goals.
Also, at least once a year manage-ment should take the initiative to gather feedback on how well they have kept their promises, managed the planning process and supported the efforts of staff in moving the organization forward. Not only does this serve as a good way to close the loop on the current year, it strength-ens the sense of teamwork and leads to a higher level of customer care. H
Keith Hughey is Senior Consultant for John M. Floyd & Associates.
implementing a successful strategic Plan
involves a Multi-Level Approach
connecting the dots between drafting the plan and successful results
By Keith Hughey
26 H The Texas Independent Banker January/February 2014
Over 400 years ago, Francis Bacon said “Knowledge is power. If knowledge is utilized properly it yields money which is power in today’s times.” The same is true today. Knowledge is
more important than ever in the business world and has led to much more effec-tive sales and marketing through the use of customer, prospect, officer, branch and market information and analytics. Today, bankers can be equipped to answer ques-tions like: “Who are my best customers?”, “Who is most likely to buy?”, “Which sales officers need coaching?”, “How many new customers did we get last week?”, “Which branches have the most untapped oppor-tunities?” and many more.
The raw material of knowledge is data. It becomes knowledge when placed into context and combined with the expe-rience and creativity of people. Banks are awash with data, but data needs to be organized and accessible. The accessibil-ity is provided by business intelligence
solutions like SNL Banker. This paper will discuss three key ways to organize data for sales and marketing purposes: Household-ing, Product Grouping and Household Assignments. These form the foundation for understanding the customer relation-ship, assessing customer opportunities, establishing new goals and assigning responsibility for execution.
Householding
Householding is the process whereby individuals or businesses are linked to all their customer accounts and are then brought together as joint decision-makers whenever it makes sense. For example, Jo Smith owns a savings account, Josephine Smith owns a mortgage and Jossie Smith owns a credit card. If there are common data attributes (e.g., email address or tax ID), these three different names can all be brought together as one person with three accounts. If Josephine has a joint checking account with Alex Mays and shares an address and phone number, they can be brought together as a household.
Similarly, if three businesses are owned by two people, those three businesses can be separately identified as customers but can also be brought together as a household if there is enough visible evidence to link them together. Householding software uses account information such as tax ID or name and combines it with special lookup tables (e.g., nicknames) to process business rules which define individuals, households and addresses. Each of these outputs is given a special key or number that does not change over time. Plus, each of these keys is attached to every name and account on the system. For SNL Banker, a super household key is also produced— more on that later.
Above is an example of a simple household. The constant household key is shown but the address key and customer keys are not displayed. These two indi-viduals, who do not appear related based on their name, share an address and own a joint checking account together. Note that Desirae does not own a credit card with the bank even though Emerson has
organizing sales & Marketing Data to Improve ROI
by Guenther Hartfeil
January/February 2014 www.ibat.org H 27
one. Since credit cards are sold and used individually, a great cross-sell opportunity is to identify all households with two or more adult customers but only one credit card.
If the sales force has access to this view, their pre-call planning can be done in record time. The relationships and products held in the household can be quickly viewed prior to calling the cus-tomer. Householding also saves time at the front line by reducing double-calling efforts. There is no reason to approach Desirae and Emerson separately to sell a mortgage or home equity line. Systems like SNL Banker perform householding weekly and update account information nightly to ensure that bank officers have up-to-date views of their customers. This saves time, and more importantly, pro-vides officers the data they need to be more effective in their role.
With householding, executive man-agement can assess and set goals for both adding new households and reducing lost ones. They can compare the number of new and lost households by branch or officer and design campaigns, refocus on customer service or coach employees to increase the number of net new house-holds (i.e., new minus lost). Executing an onboarding process for new checking cus-tomers is a best practice that reduces attri-tion. Call the customer in a week to make sure all materials have been delivered (e.g., checks, debit cards) and call again in
a month to sell more products and inquire about service delivery. Establish goals to sell some key sticky services such as bill pay at the time checking accounts are opened. It is easier to track what occurred when customers and households are accu-rately identified.
SNL Banker also links individual households together into super households based on joint account ownership (e.g., someone in Household A owns a joint CD with someone in Household B). Just as a customer key can only be assigned to one household, a household key can only be assigned to one super household.
Super households can inform both your retention and sales strategies. On the retention side, it’s important to review the super household composition before doing something that negatively impacts a par-ticular member of that super household. For example, if a young person asks for an NSF waiver, one thing to consider is if he or she is tied to other individuals or house-holds that are high value relationships.
On the sales side, someone like mort-gage bankers can view their customers to see who else they know. If the bank-ers have a good relationship with these customers, they may be able to refer them other members of the super household.
Product Grouping
The product grouping process aggre-gates bank products in increasingly broad levels. Banks sell hundreds, even
thousands of products (e.g., 30-day Jumbo Step Rate CD). Sifting through all the products is tedious and time consum-ing. Different levels of aggregation help bankers discover sales opportunities and coaching opportunities that could be easily overlooked. For example, a bank’s Senior checking account could be catego-rized as a non-interest checking account, more broadly as a checking account, and even more broadly as a deposit account. Think of these as levels with deposits at level 1, checking at level 2 and so on. Each level of aggregation offers a different perspective and may also involve a differ-ent sales force. Certainly, product manag-ers will also want access to the most gran-ular products, and that is provided within systems like SNL Banker.
A key performance indicator is the cross-sell ratio (i.e., the number of prod-ucts or services per customer or house-hold). The cross-sell ratio typically counts the number of product types a client owns rather than the number of accounts. Every bank seems to calculate this differ-ently so it is very hard to compare them bank to bank. For example, some banks count virtually every account so that if a household has three CDs and a checking account, their cross-sell number is four. Other banks may look at that same house-hold and say their cross-sell number is two (they own CDs and Checking). Another bank may look at that same household and
(Continued on page 28)
rganizing ales & Marketing Data to Improve ROI
by Guenther Hartfeil
28 H The Texas Independent Banker January/February 2014
levels, even the broadest. For example, how many commercial households have a credit relationship without deposit accounts? Since attrition is highest among those with fewer products, how much is it worth to keep the credit only customers? Does this call for a campaign to cross-sell other products?
Some banks focus attention at level 1 or a layer down to define a “sweet spot” they want to target. What percent of retail households have deposits, credit and either investments or insurance? What percent should the bank target? A hybrid model with checking is shown since checking is critical for defining a bank as the customer’s primary financial institution.
It is impossible to present a full model in this article. Please ask a SNL Banker adviser or sales professional for more details.
Household Assignments
Household Assignment is the pro-cess of assigning accounts, customers and households to the appropriate branch, officer or channel for sales and/or ser-vice responsibility. These assignments are
come up with a cross-sell of three if the household has two 90-day CDs and one 180-day CD. If SNL Banker clients orga-nize their product level definitions fairly consistently, it is much easier to show and understand peer comparisons and develop meaningful goals.
SNL has developed a recommended aggregation schema. These recommen-dations are based on a number of factors such as:•whethertheproductsaresubstitutes
for one another,•whethertheretendtobedifferentsales
forces supporting the products,•whetherdemandestimatesareavail-
able from outside parties at a particular level of aggregation (e.g., demand estimates for equity credit are readily available but demand estimates for 100% equity lines are not so one level of aggregation is all equity credit),
•howregulatorsviewproductaggregates(e.g., per FDIC reports), and
•whethersomekeybusinessareaswouldbe over- or under-counted based on the business rules (e.g., insurance, with many product categories like life or property insurance and variations within those categories, should not be at the same level as non-interest checking with only a few product offerings).
The broadest, first level of product aggregation is [is shown in the chart] above:
It is useful to look at cross-sell at all
often not present or correct on existing bank systems. For example, a customer may have opened a checking account at Branch A fifteen years ago but has moved and is now using Branch B for all their banking needs. The GL system will assign the checking account and hence customer to Branch A. The branch that can best impact future sales and service satisfaction is Branch B. Similarly, sales officers come and go over time so the assigned account officer may no longer be relevant. It is important to know where to send a lead list for sales and who to hold account-able for excess attrition if service is poor. It is also useful to evaluate the assigned household “book of business” for cross-sell opportunities.
Best practice is to assign each house-hold to a branch, except those living well outside the service area or households that do not consider themselves bank cus-tomers (e.g., they only own an indirect loan). Assign even those households that opened all their accounts online. If possi-ble, use branch and ATM transaction data to determine which branch will be the primary branch, usually the branch fre-quented the most by key household mem-bers. If transaction data is not available, assign the branch with the most recently opened accounts. If there are no branch opened accounts, consider the household location to find the nearest branch.
For officer assignments, match assigned officer keys on bank systems to current employees and their job titles. If the employee is no longer working as the relevant officer, assign the household to the relevant managers and let them reas-sign on the system. Identify job titles that are generalists and assign as many house-holds as practical to those generalists (not
Organizing Sales & Marketing cont’d
January/February 2014 www.ibat.org H 29
more than they can handle). Identify offi-cer types who do not service customers and assign their customers to the appro-priate service area (e.g., assign all mort-gage customers to the mortgage phone unit for service).
Much more information is avail-able on this topic, but the key is to hold the appropriate people accountable for sales and service and be able to review and compare correctly assigned books of business to find cross-sell and coaching opportunities.
Summary
With Householding, Product Group-ing and Household Assignments in place, banks can efficiently find and pursue cross-sell, up-sell, activation and reten-tion strategies. Householding allows accu-rate and easy views of the full customer relationship; however, the household needs to be assigned to selling and service officers and channels in order to execute those strategies. Plus, it is easier to find the opportunities when products and ser-vices are grouped together or bankers will miss the forest for the trees.
Many types of reports are available or can be created to show cross-sell, up-sell activation or retention opportunities. For example, Officers 1 and 4 have a 5% pen-etration of credit cards into their books of business, but the average is 15% for simi-lar books of business. As another exam-ple, 40% of commercial households only have one product or service, so the single product loan customers are targeted with a special offer. Once the opportunities are identified, lists can be produced and sent to the appropriate channel or person. The underlying infrastructure required for these reports and more is Household-ing, Product Grouping and Household Assignments.
To learn how SNL Banker can help you use data to improve your sales and marketing ROI, contact: Julie Jones at 434.951.4419 or [email protected]. H
Guenther Hartfeil is Associate Director of Prod-uct Management at SNL Financial. twitter
Follow IBAT on Twitter at twitter.com/myibat
DEGREES IN BANKING
SAM HOUSTON STATE UNIVERSITY COLLEGE OF BUSINESS ADMINISTRATION
Contact us for a free brochure.866-BEARKAT or (936) 294-3764, email: [email protected]
shsu.edu/see/banking
COLLEGE OF BUSINESS ADMINISTRATION
30 H The Texas Independent Banker January/February 2014
Security experts continue to urge that businesses in all sectors take steps now to avoid security and opera-tional risks associated with Microsoft’s April 8, 2014 support termination for
Windows XP. Banks in particular are warned that,
in order to avoid problems that could potentially arise within their networks, ATMs, POS terminals and work stations, they should take steps now to migrate to Windows 7 or 8. This comes from the Federal Financial Institutions Examina-tion Council (FFIEC) in their October 7, 2013 alert.
Because Microsoft will no longer be providing security updates and patches for XP, systems will be more susceptible to hackers. There will be undoubtedly be an increased risk inherently but many experts agree that hackers will purposely target systems left with XP running.
A statistic that best expresses this point is the malware encounter rate vs. the malware infection rate. According to Microsoft’s own data, Windows XP users are six times more likely to be infected with malware than Windows 8 users and almost twice as likely as Windows 7 users.
What many analysts suspect will hap-pen is that when Microsoft ends support for XP, hackers will wait for the security patches for Windows 7 and Windows 8 to be released and use that information to
see if it applies also to Windows XP. Since Windows XP will never receive that spe-cific security patch, this might create a groundswell of security holes in most XP machines still in use.
Concerns with Compliance
Not only are banks at risk with secu-rity, some regulators say that compliance with security mandates could also be an issue once Microsoft ends the XP support. One such mandate is the Payment Card Industry Data Security Standard.
As noted in the aforementioned FFIEC XP Alert, failing to update oper-ating systems could result in application incompatibilities and increased risk for data theft and/or unauthorized additions, deletions and changes to data.
In the FFIEC Information Technol-ogy Handbook, certain recommendations are outlined for banking institutions: •Conductongoingriskassessmentsto
identify and measure risks that could result from the continued use of XP throughout the organizations and vendors.
•Considertheimpactonbusinessconti-nuity and disaster recovery.
•Considercompatibilitywithothersys-tems and applications, as well as costs and new risks.
•Developanimplementationplantoprioritize changes and monitor related third party mitigation and migration activities.
•Monitorriskandensurethe
effectiveness of controls is tested peri-odically with results reported to senior management or the board of directors.
ATMs Running XP
You don’t have to be a security expert to understand the potential risk of run-ning XP on an ATM. It is the same reason banks are no longer running IBM’s OS/2 — no support for security patches.
According to Dean Stewart, Die-bold’s Senior Director of Core Product Solutions, approximately 75% of banks have ATMs running XP. Based on that statistic, there will be many banks still running XP on their ATMs after the April cutoff date.
This poses a number of problems for banks: running an unsupported operating system would render a financial institu-tion noncompliant with payment card industry requirements. Fines from a bank declared noncompliant could cost the bank thousands of dollars every month. For community banks, this cost could be crippling.
Time is Running Out
With less than six months before Microsoft ends their support of the still popular Windows XP, many analysts agree that companies must have a migration plan in place or risk facing compliance issues.
What many CIOs do not realize is that the average enterprise deployment can take 18 to 32 months to fully deploy,
what Banks should Know About the end of Support for
January/February 2014 www.ibat.org H 31
(Continued on page 45)
support end date, with a few weeks of real world, real time testing.
Tips, Tools and Last Minute Advice
Many businesses have attempted to migrate to Windows 7 and failed. They have failed to properly analyze their appli-cations well enough to make the move or communicate the plan effectively across all lines of business.
Microsoft is not going to extend sup-port to any company unless they purchase Microsoft’s custom support option. There are other businesses outside of Microsoft that will continue to update XP machines with security patch updates and other updates that will keep the machines secure and up to date. The cost of both of these services will far exceed the cost of migrating to Windows 7 for most small businesses.
Community banks that have yet to even start the migration process have options aside from buying Microsoft’s cus-tom support. Here are some steps banks should consider before choosing the solu-tion that is right for them:
STEP 1: Assess and planThis should be the obvious first step;
however, if it’s not done right, banks can really trip themselves up. Migration sup-port products (like Dell’s ChangeBase) are designed to automate the applica-tion compatibility testing, remediation, packaging and virtualization phases of a
according to Microsoft. Banks still utilizing Windows XP should be in some stage of planning and applica-tion testing to ensure the migration deployment is complete before end of support.
Banks need to guarantee that they are
keeping pace and adapting their work-
place to meet gov-ernment regula-tions and new IT
environments. This means ensuring they have the most effec-tive tools in place to carry out the migration and to maintain any new
technology follow-ing deployment.
The next sev-eral months should
be used to evalu-ate Windows 7 and Windows
8 and to plan a migration accordingly. The goal
should be to be completely off XP before the
By Denney James
hat Banks hould Know About the end of Support for XP
32 H The Texas Independent Banker January/February 2014
the Premier technology conference & expo for Financial institutions
February 3–4, 2014Renaissance Arboretum Hotel Austin
iBAt’s unique financial institution technology show, Tech-Mecca, will be here before you know it. This year’s show focuses on the CORE areas of concern for community bankers, Compli-ance, Operations, Risk management and Enterprise efficiency.
We know that, with any decision to implement new tech-nology solutions into your bank, there are a number of individu-als and departments that must first sign off. That’s why IBAT is committed to making TechMecca a cost-effective event for Texas community bankers, offering a “three for the price of one” special on registration. That’s three attendees for the low cost of $695.
For more information or to register, visit www.ibat.org/techmecca.
TECHMECCA AGENDA
sUnDAY, FeBRUARY 2, 2014
6:30-10:00PMOptional Super Bowl Party
MonDAY, FeBRUARY 3, 2014
7:30AM-5:00PMConference Registration
9:00-10:15AMOpening General Session: Prosecuting Wall Street — a Business Ethics Session from Citigroup Whistle-blower — Richard Bowen
10:30-11:30AMConcurrent Sessions • IsYourBankReadyforToday’sMortgageCustomer? •BankerPerspectives:MobileStrategy •FederalReservePaymentsUpdate •LeveragingBigDataforBigResults
11:30am-2:30pmExpo Hall Open (Includes Lunch)
2:30-3:30pmInteractive General Session
3:30-5:30pmExhibit Hall Open/Exhibitor & Attendee Networking Reception
Tuesday, February 4, 2014
7:30-10:30amConference Registration
7:30-8:30amExpo Hall Open (Includes Breakfast)
8:30-9:30amConcurrent Sessions • EMVForum:FollowingtheExpecta- tionsofEMVandHowitWillImpact YourBank,MerchantsandCustomers •CurrentITChallengesinBankingand EfficientSolutions •TheLurkingMenace:Cybercrime,Data SecurityandPrivacyRights •10ThingsCoreProvidersDon’tWant YoutoKnow
9:45-10:45amConcurrent Sessions • TheAtoZ’sofVendorManagement •UnderstandingandBuildingaProactive • ATMUpgradePlantoStayCompliant andCompetitive • EmergingTechnologies:IT&Opera- tionsinLightofFinancialReform • IndustryHotTopic
11:00am-12:00pmInteractive General Session
12:00-1:30pmExpo Hall Open (Includes Lunch)
1:30-2:30pm
sPONsOrsTitanium SponsorsDellDell SecureWorksDiebold
platinum SponsorsAvTek SolutionsD+H MortgagebotDeluxePULSE
Gold SponsorsBank Technology NewsFirst American Payment
Systems
Silver SponsorYennik
Bronze SponsorGlory
Closing General Session: FromtheFutureBack-wards: KnowingNextNow— Lee Wetherington
2:30pmGrand Prize Drawing & Conference Concludes
eXHIbITOrs21st Century Financial
ServicesAbound ResourcesAccuSource SolutionsACI WORLDWIDEAmerican Bank SystemsAutoFX2Automated Business SystemsAutomated Systems, Inc.AvTek SolutionsThe Baker GroupBanc Statements, Inc.Banker’s ToolboxBKD, LLPCachet Financial SolutionsCalTechCardinal Software, Inc.CFC Technology CorporationColumbus Data ServicesComputer Service Profession-
als, Inc. (CSPI)CoNetrixCustom Card SystemsCustom Vault CorporationD+H MortgagebotDatacard GroupDBSI, Inc.Dell Inc.Deluxe Financial ServicesDieboldFirst American Payment
Systems, LLC
January/February 2014 www.ibat.org ★ 33
First Datafisoc, Inc./Buzz PointsGlory (USA) Inc.High CottonI.T. WorksIBT, Inc.Jack Henry & AssociatesMarch NetworksMEA Financial Enterprises,
LLC.Nautilus HysongNetwork Box USA, Inc.PrintMail Systems, Inc.PROFORMANCEPULSEResilient Intelligent NetworksSecurity Center, Inc.SHAZAMSMA SolutionsSNL FinancialSupernal SoftwareSWACHATechnique Data Systems, IncTransFundUnicom Technologies, Inc.VerafinVSoft CorporationWebEquity Solutions, LLC
34 ★ The Texas Independent Banker January/February 2014
20%20%20%20%20%20%20%20%20%20%
20%
20%
20%
20%
20%
“Every man owes part of his time and money to the business or industry to which he is engaged. No man has a moral right to withhold his support from an
organization that is striving to improve conditions within his sphere.”
PresidentTheodoreRoosevelt,1908
Are You One of the 20%?
By Steve Scurlock
March 1 marks the beginning of IBAT’s 2014 PAC Drive campaign. Last year we had 87 banks conduct PAC Drives, some for the first time, and most as a continuing effort to support the community banking message and encourage bank staff to be engaged in the process. The IBAT Leadership Division
Board of Directors has taken on the task of challenging all IBAT member banks to raise a minimum of $1,000 in 2014.
We have a number of members who continue to raise the bar and contribute thousands of PAC dollars each year. We owe you a huge thank you and encourage you to keep up the good work! Our goal is to dramatically increase the number of IBAT members participating in this important initiative.
That is why the IBAT Leadership Division’s Board of Direc-tors has decided to focus on increasing in-bank PAC Drives for 2014. Monies from the IBAT PAC and IBAT FedPAC are used to work toward the election of members of the Texas Legisla-ture and U.S. Congress who understand the important role of independent community banks in the economic vitality of our communities, state and nation. Wouldn’t you agree that each community bank should participate in this effort?
This is our industry and we should all be not only willing, but eager to raise PAC dollars to help elect those individuals
who support our industry and not rely solely on the generosity of a few of our members for this fundraising effort.
One of America’s favorite pastimes is to complain about the government, but if we don’t contribute to change, it does little good to complain.
As you well know, community banks are the lifeblood of many Texas cities and towns. IBAT continues to aggressively work for you – and only you — in Austin and Washington, D.C. But we need your help, with both your involvement and your financial support.
We hope you will be receptive when you hear from your local Leadership Division regional representative asking you to conduct a PAC Drive. Members of the Leadership Division will be happy to visit your bank and talk with you, your board and employees on the importance of a PAC Drive. They can suggest fun ways to raise money for the PAC, but in most cases, all it takes is “the ask.”
Plus, complete your PAC Drive by April 25th and your name goes in to a drawing for a barbecue dinner for you and your staff prepared and served by your IBAT staff!
The challenges are significant, but we are convinced com-munity bankers will rise to the occasion. We hope we can count on you to move the “20%” to “100%”!
Steve Scurlock is Executive Vice President for IBAT.
January/February 2014 www.ibat.org ★ 35
THaNk yOu TO THe FOllOwINg baNks FOr cONducTINg Pac drIves IN THe lasT year!
First State Bank, AbernathyAmarillo National BankFirst National Bank of BallingerBallinger National BankAustin County State Bank, BellvilleState National Bank of Big SpringTexas Heritage Bank, BoerneBrady National BankBrenham National BankCitizens State Bank, BuffaloFirst Bank, BurkburnettFirst State Bank of BurnetFirst National Bank of ByersFirst State Bank & Trust, CarthageFarmers State Bank, CenterCitizens Bank, ClaudeWestern Bank, CoahomaFirst Bank, ConroeValueBank Texas, Corpus ChristiCommunity National Bank & Trust
of Texas, CorsicanaTIB-The Independent BankersBank,
DallasVeritex Community Bank, DallasAccessBank Texas, DentonDilley State BankThe First National Bank of Eagle
LakeUnited Bank of El Paso del NorteFort Davis State BankPecos County State Bank, Fort
StocktonSouthwest Bank, Fort WorthFirst State Bank, GainesvilleMoody National Bank, GalvestonHomeTown Bank, N.A., GalvestonMills County State Bank,
GoldthwaiteSage Capital Bank, GonzalesFirst State Bank, GrahamBank of the West, GrapevineFarmers State Bank, GroesbeckGruver State BankHappy State BankFirst National Bank of HebbronvilleCitizens National Bank, HendersonFirst National Bank of HerefordD’Hanis State Bank, HondoIntegrity Bank, ssb, HoustonIndustry State Bank
PresIdeNT’s cIrcle
★ over $1,000
Keary Barnes, CatalystFinancialCompany,Houston
Brandon Bartek, MillsCountyStateBank,Goldthwaite
Peter Bennis, PinnacleBank,FortWorthCynthia Blankenship, BankoftheWest,Grapevine
H. Gary Blankenship, BankoftheWest,Grapevine
Craig Buford, CBAofOklahoma,OklahomaCity,OK
Philip Cecil, LibertyNationalBank,ParisJohn Cornyn, U.S.Senate,Washington,DCCharles Doyle, TexasIndependentBancshares,Inc.,TexasCity
Doak Dunkin, DialDunkin&Associates,Harlingen
Clinton Dunn, FirstStateBank,MesquiteWade Easley, FirstNationalBankofHerefordKathleen Fields, Padgett,Stratemann&Co.,L.L.P,SanAntonio
David Fuller, PointBank,PilotPointJay Gober, FirstStateBank,GrahamScott Heitkamp, ValueBankTexas,CorpusChristiChristy Hester, TexasBankandTrust,LongviewJeb Hughes, CommunityNationalBank,MidlandJ. Keith Hughey, JohnM.Floyd&Associates,SanAntonio
John Jay, RoscoeStateBankCary Johnson, FirstStateBankofBurnetMayo Kasling, FirstNationalBankofHughesSprings
Robert Marling, WoodforestNationalBank,Spring
Julie Mayrant, WoodforestNationalBank,SpringCliff McCauley, FrostBank,SanAntonioMilton McGee, TexasLeadershipBank,Henderson
Michael Montgomery, FirstStateBank-Rice,Ennis
Kenneth Moore, AnahuacNationalBankMichael Murphy, SageCapitalBank,GonzalesCharles “Mack” Neff, IntegrityBank,ssb,Houston
Phillip Newsom, CommercialStateBank,PalmerJohn Northcut, StockmensNationalBank,CotullaBank PAC, GuarantyBondBank, MountPleasant
PSCO PAC, Padgett,Stratemann&Co,LLP,SanAntonio
Carlton Palmer, StrategicRiskAssociates,LLC,McKinney
Lester Parker, UnitedBankofElPasodelNorteJim Payne, FirstStateBank&Trust,CarthageVictor Pierson, MoodyNationalBank,GalvestonRogers Pope, Jr., TexasBankandTrust,LongviewZan Prince, FirstNationalBankofWeatherfordAlan Renfroe, CenderaBank,BellsTroy Robinson, BankTexas,QuitmanDeborah Scanlon, BKD,LLP,HoustonGreg Schwertner, FirstNationalBankofBallingerSteve Scurlock, IBAT,Austin
(Continued on page 36)
Junction National BankKilgore National BankFirst National Bank Texas, KilleenKleberg First National Bank,
KingsvilleLamesa National BankLlano National BankTexas Bank and Trust, LongviewFirst Bank & Trust, LubbockMason BankThe Commercial Bank, MasonBorder Capital Bank, McAllenFirst State Bank, MesquiteCommunity National Bank,
MidlandFirst National Bank of MoodyGuaranty Bond Bank,
Mount PleasantFirst National Bank of Mount
VernonMuenster State BankSouthwest Bank, OdessaOzona National BankLiberty National Bank, ParisPoint Bank, Pilot PointLegacyTexas Bank, PlanoFirst National Bank in Port
LavacaFirst State Bank-RiceRoscoe State BankTexas Leadership Bank,
Royse CityTexas State Bank, San AngeloLone Star Capital Bank, N.A.,
San AntonioFirst Community Bank, N.A.,
San BenitoFirst National Bank of ShinerAlliance Bank, Sulphur SpringsTexas First Bank, Texas CityFirst National Bank of Bosque
County, Valley MillsWaggoner National Bank, VernonCommunity Bank & Trust, WacoCitizens National Bank of Texas,
WaxahachieFidelity Bank, Wichita FallsFirst National Bank of WinnsboroYoakum National BankFirst State Bank, Yoakum
36 ★ The Texas Independent Banker January/February 2014
David Seitze, FrostBank,SanAntonioJoe Sharp, FirstBairdBancshares,Inc.,BedfordMark Singleton, CitizensNationalBankofTexas,Waxahachie
Justin Steinbach, FrostBank,DallasGlen Thurman, FirstNationalBankofMoodyBradley Tidwell, CitizensNationalBank,Henderson
Lynn Vincent, FirstStateBank&Trust,CarthageSteven Warner, AlignFinancialServicesConsultants,Inc.,Austin
Chris Williston, IBAT,Austin
Pac sTaTesmeN
★ $800-$999
Hazem Ahmed, IntegrityBank,ssb,HoustonAbel Castro, FirstBank&Trust,LubbockDoak Crabtree, HappyStateBank,StratfordCurtis Griffith, CityBank,LubbockDickie Heathcott, CroweHorwathLLP,DallasKenneth Horton, FirstCapitalBank,QuanahKevin Monk, AllianceBank,SulphurSpringsTom Turner, FirstStateBank,Abernathy
Pac delegaTes
★ $500-$799Glenn Biggs, FirstStateBank,AbernathyGlenn Biggs, TexasHeritageBank,BoerneMicah Boles, FirstNationalBankofBosqueCounty,ValleyMills
Cleve Breedlove, AccessBankTexas,DentonL. F. Bridges, AllianceBank,SulphurSpringsAngie Brown, FirstNationalBank,GiddingsCarl Cecil, LibertyNationalBank,ParisDavid Chadwick, FarmersStateBank,CenterC.R. Cloutier, MidSouthBankTexas,N.A.,Lafayette,LA
Charles Comer, BankoftheWest,FortWorthDoyle Cooper, TexasLeadershipBank,RoyseCityWayne Cooper, AllianceBank,SulphurSpringsJulie Courtney, IBAT,AustinRuth Ann Crowson, AllianceBank,SulphurSprings
Zach Dean, FortDavisStateBankMickey Eddins, AllianceBank,SulphurSpringsRoger Elliott, AllianceBank,SulphurSpringsRandall Ferguson, FirstNationalBankofAlvinRobert Gerry, IntegrityBank,ssb,HoustonJohn Gilliam, FirstNationalBankofBosqueCounty,ValleyMills
Judy Gillis, AllianceBank,SulphurSpringsJack Griggs, FirstStateBank,AbernathyC. T. Head, MillsCountyStateBank,GoldthwaiteCharles Helm, AllianceBank,SulphurSpringsJ. Pat Hickman, HappyStateBank,AmarilloIsrael Hinojosa, FirstNationalBankofHebbronville
Janey Holstien, IBAT,AustinBrooke Jamieson, TIB-TheIndependentBankersBank,Irving
Ursula Jimenez, IBAT,AustinRamona Jones, IBATServicesInc.,AustinBonnie Kankel, IBAT,AustinTimothy Koch, UniversityofSouthCarolina,Columbia,SC
David Lacy, CommunityBank&Trust,WacoJames Law, AllianceBank,SulphurSpringsRicky Leal, FirstCommunityBank,N.A.,Harlingen
Steve Mack, TexasHeritageBank,BoerneTommy McCulloch, FidelityBank,WichitaFallsMichael McKenzie, AllianceBank,SulphurSprings
Craig Meier, MeierAuctioneers,EnnisRonnie Miller, CommunityNationalBank,HondoMichael Moores, CitizensNationalBank,Henderson
Frank Morris, FirstStateBank,GainesvillePatty Mullins, IBAT,AustinJeff Nunn, CitizensBank,AmarilloMichael O’Rourke, TIB-TheIndependentBankersBank,Dallas
Mae Beth Palone,IBAT,AustinRalph Preuss, AllianceBank,SulphurSpringsTodd Price, FirstStateBank,MesquiteDarlene Revers, IBAT,AustinMarty Rivers, FirstStateBank-DowntownDenton
Craig Roberts, GuarantyBondBank,SulphurSprings
Thomas Sellers, AllianceBank,SulphurSpringsJ. Michael Terrell, WaggonerNationalBank,Vernon
Carol Troy, IBATFinancialServices,AustinTerry Tuggle, FirstNationalBankTexas,KilleenValarie Ure, IBATFinancialServices,AustinRichard Ware, AmarilloNationalBankChristine Weinzapfel, MuensterStateBank,Gainesville
Robert Weinzapfel, MuensterStateBankDavid Willmann, LlanoNationalBankJames Worsham, AllianceBank,SulphurSprings
Pac ParTNers
★ $300-$499Susan Allen, TexasHeritageBank,SanAntonioKenneth Black, CitizensNationalBank,Henderson
Blake Bozman, VeritexCommunityBank,DallasCarol Chiu, IntegrityBank,ssb,HoustonWindol Cook, TIB-TheIndependentBankersBank,Jacksonville
Lance Davis, BKD,LLP,Jackson,MSKathryn Deason, CitizensNationalBank,Henderson
Kenneth Derks, EquiasAlliance,LLC,PlanoTieman Dippel, BrenhamNationalBankSheila Dixon, CitizensNationalBank,TylerChristopher Doyle, TexasFirstBank,TexasCityTroy England, FirstBank, ConroeDavid Estes, TexasHeritageBank,CrossPlainsBetsy Flencher, CitizensStateBank,SomervilleBen Flencher, CitizensStateBank,SomervilleKyle Frazier, IntegrityBank,ssb,Houston
Richard Gasdia, AporiaSolutions,Inc.,HoustonKelly Goulart, IBAT,AustinMark Griege, VeritexCommunityBank,DallasWendy Griffin, SchertzBank&TrustDonna Harrelson, TexasBankandTrust,Longview
Gordon Huddleston, VeritexCommunityBank,Dallas
Kyle Irwin, GruverStateBankDavid Jones, HappyStateBank,AmarilloBill Kacal, IntegrityBank,ssb,HoustonJerry Kacal, IntegrityBank,ssb,HoustonJoe Kim King, BradyNationalBankFred Leonard, IntegrityBank,ssb,HoustonDavid Linaburg, TIB-TheIndependentBankersBank,Dallas
Chip Lynch, IndependentCommunityBankersofAmerica,Dallas
Scott McDonald, DavisKinard&Co,PC,Abilene
Bobbie McMillan, TheCommercialBank,MasonRyan Morris, FirstStateBank,GainesvilleKaren Neeley, Cox,Smith,Matthews,Inc.,Austin
Curt Nelson, IBATServicesInc.,AustinJames O’Jibway, AustinCountyStateBank,Bellville
Paul Painter, AllianceBank,GreenvilleMike Pearce, BankoftheWest,GrapevineStanley Pinkham, McLendon-ChisholmJimmy Rasmussen, HomeTownBank,N.A.,Galveston
Albert Reese, IntegrityBank,ssb,HoustonMark Roe, JohnM.Floyd&Associates,BurlesonBill Saunders, AccuSourceSolutions,CarrolltonCharles Shanley, JohnM.Floyd&Associates,Baytown
Mark Sheffield, RoscoeStateBank,BastropKathy Smith, BankCompensationConsulting,Inc.,Plano
Alinaghi Soudjani, HappyStateBankJeff Stewart, ComancheNationalBankDavid Stovall, Stovall,Grandey&AllenCPA,FortWorth
Dewey Stringer, IntegrityBank,ssb,HoustonJohn Sughrue, VeritexCommunityBank,DallasVican Tan Sun, IntegrityBank,ssb,HoustonTim Teske, GreenBank,N.A.,DallasTim Turbeville, FirstStateBank,GainesvillePaul Urban, TexasHeritageBank,SanAntonioJeffery Van Wart, IntegrityBank,ssb,HoustonBrian White, FirstNationalBankofMoodyMark Williamson, WestTexasStateBank,SnyderGary Wooley, IntegrityBank,ssb,HoustonCody Yanchak, FirstAmericanPaymentSystems,LLC,FortWorth
Pac FrIeNds
★ $101-299Don Abernathy, TheBankersBank,OklahomaCity,OK
David Alford, CitizensNationalBank,HendersonRonald Alfred, BrenhamNationalBankRandy Andrews, TexasBankandTrust,Longview
PAC cont’d
January/February 2014 www.ibat.org ★ 37
Mark Anton, IntegrityBank,ssb,HoustonKerri Araujo, CitizensNationalBankofTexas,Waxahachie
Sam Armstrong, ValueBankTexas,CorpusChristiMichele Arvo, TIB-TheIndependentBankersBank,Dallas
Thomas Atkinson, TIB-TheIndependentBankersBank,Dallas
Bartlett Barry, AccuSourceSolutions,CarrolltonChristine Beaulieu, MuensterStateBankCraig Berry, TIB-TheIndependentBankersBank,Dallas
Jacob Bezner, FirstStateBank,GainesvilleStan Bickel, FirstNationalBankofBallingerBonnie Blackman, BankersDigest,DallasWendy Blaeser, D+HMortgagebot,Mequon,WIRicky Bowman, RoscoeStateBank,SweetwaterBrandon Braden, TexasStateBank,SanAngeloDon Briscoe, TIB-TheIndependentBankersBank,Dallas
Scott Brown, nCino,Prattville,ALJohn Buttery, LlanoNationalBankMarsha Byrd, TexasBankandTrust,GladewaterStan Callahan, AmarilloNationalBankAlvia Calvert, HappyStateBank,DumasThomas Canfield, MasonBankBarbara Carney, TIB-TheIndependentBankersBank,Dallas
Charles Carpenter, TexasBankandTrust,TerrellGina Carter, CalTech,FortWorthCraig Chaikin, TexasBankandTrust,LongviewAaron Clark, LamesaNationalBankJames Coleman, IntegrityBank,ssb,HoustonRobert Coleman, FirstNationalBankinGrahamGary Cox, TexasStateBank,SanAngeloJohn Currie, StateNationalBankofBigSpringRandy Curtis, FirstNationalBankTexas,KilleenJ. Raymond David, PointBank,PilotPointJoseph David, PointBank,PilotPointRobert David, PointBank,PilotPointNeilson Davis, FarmersStateBank,CenterW. I. Davis, FarmersStateBank,CenterFranklin Deaderick, SouthwestBank,OdessaHarold Deem, FirstStateBank,GainesvilleLawrence Del Papa, TexasFirstBank,GalvestonMary Diaz, FirstNationalBankTexas,KilleenScott Dickerson, TexasBankandTrust,LongviewShawn Dillon, FirstAmericanPaymentSystems,LLC,FortWorth
Deborah Dinsmore, IntegrityBank,SSB,HoustonMatthew Doyle, TexasFirstBank,TexasCityKevin Drew, TIB-TheIndependentBankersBank,Dallas
John Eastwood, BankoftheWest,GrapevineJohn Elliott, SouthwestBank,LubbockTim Farley, CitizensNationalBank,MountEnterprise
Chris Favre, IntegrityBank,ssb,HoustonGeorge Fisk, LegacyTexasBank,PlanoJason Flanagan, CitizensNationalBank,Henderson
Diane Francis, TIB-TheIndependentBankersBank,Dallas
Elwood Freeman, LamesaNationalBankLinda Galligher, AllianceBank,SulphurSprings
Geoffrey Gallo, DoerenMayhew,HoustonAlicia Garrison, TIB-TheIndependentBankersBank,Dallas
Mark Gibson, FirstNationalBankofBosqueCounty,ValleyMills
Ross Glenn, HappyStateBank,AmarilloChad Golden, TIB-TheIndependentBankersBank,Irving
Patrick Gray, TIB-TheIndependentBankersBank,Dallas
Alina Greavu, IBAT,AustinVirginia Grimes, TheGenesisGroupLLC,McKinney
Luke Grizzaffi, FirstStateBank,GainesvilleJack Gruber, D’HanisStateBank,HondoJesse Haggard, FirstNationalBankofTrinityKerry Hall, IBAT,AustinBen Hatcher, FirstStateBank,GainesvilleSteve Haverlah, LlanoNationalBankDanette Heffner, CitizensNationalBank,Henderson
Harlan Heitkamp, ValueBankTexas,CorpusChristi
Lita Herrera, IBAT,AustinGary Hinders, HappyStateBank,AmarilloJimmy Hoerster, LlanoNationalBankPeggy Hogan, CitizensNationalBankofTexas,Waxahachie
Bud Holmes, HappyStateBank,LubbockTerry Hoover, TIB-TheIndependentBankersBank,Dallas
Carol Hopper, CitizensNationalBank,HendersonTodd Huckabee, CrockettNationalBank,SanAngelo
James Hudson, TIB-TheIndependentBankersBank,Dallas
Jeff Irwin, GruverStateBankRobert Jenkins, IntegrityBank,ssb,HoustonTom Jester, PointBank,PilotPointJohn Johnson, HappyStateBank,CanadianMichael Johnson, TIB-TheIndependentBankersBank,Dallas
Jason Jones, RoscoeStateBank,SweetwaterPhilip Jones, BankOnHold,Edmond,OKVance Jones, TexasStateBank,SanAngeloJanine Kasper, DeluxeCorporation,Larkspur,COScott Kelley, TIB-TheIndependentBankersBank,Dallas
Melissa Kinion, TheGenesisGroup,LLC,McKinney
Jack Kleinecke, TIB-TheIndependentBankersBank,Victoria
Sue Lehrer, NewportBoardGroup,HoustonClaude Lewis, ValueBankTexas,CorpusChristiDavid Litton, CitizensNationalBank,HendersonPenni Livingston, TIB-TheIndependentBankersBank,Dallas
Jana Longbotham, HappyStateBankWallace Lynch, PointBank,PilotPointLindsey Manwarren, CitizensNationalBankofTexas,Waxahachie
James May, ValueBankTexas,CorpusChristiBrent McCasland, CalTech,SanAngeloGregg McCoury, FarmersStateBank,CenterNikki McDaniel, FirstNationalBankTexas,Killeen
James McElray, IntegrityBank,ssb,Houston
Laura McKethan, CitizensNationalBank,Henderson
Ryan Mecredy, TIB-TheIndependentBankersBank,Dallas
George Meisenheimer, CitizensNationalBank,WhiteOak
Maggi Metheany, TIB-TheIndependentBankersBank,SanJose,CA
Scott Miers, LamesaNationalBankCharles Miller, FirstBank,WichitaFallsAnita Minor, BankoftheWest,GrapevineJessica Molina, IBAT,AustinDianne Monroe, HappyStateBank,DumasLuke Motley, FarmersStateBank,CenterAnn Murphy, PointBank,PilotPointPatti Nethery, FirstNationalBankTexas,KilleenBryan Nowlin, LamesaNationalBankSteve Oates,FarmersStateBank,CarthageRonny Ortowski, FirstStateBank,GainesvilleJoe Parker, FirstNationalBankofByersSam Parker, TexasBankandTrust,LongviewClint Patrick, MillsCountyStateBank,EarlySteve Patrick, MillsCountyStateBank,Goldthwaite
Jessica Pelache, FirstNationalBankTexas,KilleenDebra Peterson, IntegrityBank,ssb,HoustonCharlie Phillips, IntegrityBank,ssb,HoustonShannon Phillips, IBAT,AustinJerry Pinkston, FarmersStateBank,CenterRogers Pope, TexasBankandTrust,LongviewCarroll Putnam, TIB-TheIndependentBankersBank,Dallas
Allan Rasmussen, HomeTownBank,N.A.,Friendswood
Charles Redfearn, PointBank,PilotPointMichael Rehm, JeffersonBank,SanAntonioLloyd Reiter, FirstStateBank,GainesvilleDarlene Renken, YoakumNationalBankMerrill Reynolds, ReynoldsWilliamsGroup,NewBraunfels
Michael Rhodes,LamarNationalBank,ParisNelwyn Richardson, CitizensNationalBank,Henderson
Russ Richardson, StarBankofTexas,FortWorthEduardo Rios, TexasFirstBank,HoustonDarla Rooke, JunctionNationalBankRichard Scanio, AmericanBank,CorpusChristiJohn Schmitz, FirstStateBank,GainesvilleMichael Scott, FirstCommunityBank,N.A.,SanBenito
Kevin Sebade, MuensterStateBankDavid Seim, HappyStateBank,LubbockMike Smith, CitizensNationalBank,HendersonPeter Smith, HappyStateBank,LubbockJonathan Stephens, SouthwestBank,LubbockLinda Stephens, IntegrityBank,ssb,HoustonAlan Strittmatter, PointBank,PilotPointPaul Sturm, PointBank,PilotPointDale Swinburn, HappyStateBank,CanadianScott Tankersley, CalTech,SanAngeloBecky Tanner, CitizensNationalBank,HendersonBruce Taylor, TIB-TheIndependentBankersBank,Dallas
David J. Temple, TIB-TheIndependentBankersBank,Dallas
(Continued on page 38)
38 ★ The Texas Independent Banker January/February 2014
Beverly Texada, TIB-TheIndependentBankersBank,Dallas
Charles Thomas, FirstStateBank&Trust,Carthage
Joseph Thomas, TexasStateBank,SanAngeloMichael Thompson, ExtracoBanks,N.A.,Temple
Greg Todd, TIB-TheIndependentBankersBank,Dallas
John Todd, FirstStateBank,MesquiteAmanda Traywick, CitizensNationalBank,Longview
Ben Turbeville, FirstStateBank,GainesvilleTom Turner, CitizensStateBank,DallasGeorge Waggoner, FirstNationalBankTexas,Conroe
Lyle Walden, TIB-TheIndependentBankersBank,Dallas
Don Walker, FarmersStateBank,CenterWilliam Ware, AmarilloNationalBankWill Welch, CalTech,SanAngeloGary Wells, HappyStateBank,AmarilloBrenda Wendt, WoodforestNationalBank,SpringChuck White, FirstBank,WichitaFallsChristopher Williston, IBAT,AustinSue Winford, LamesaNationalBankTony Wooster, CitizensNationalBank,Henderson
Pac Pals
★ $100John Able, IntegrityBank,ssb,HoustonDrew Albright, TIBMortgage,LubbockDeanna Alfred, BrenhamNationalBankCharles Amato, SWBC,FinancialServicesDivision,SanAntonio
Norma Anzuldua, KlebergFirstNationalBank,Kingsville
Lee Ardell, TexasFirstBank,TexasCityFrank Armstrong, FirstNationalBankofHebbronville
Stewart Armstrong, KlebergFirstNationalBankofKingsville
Mike Atkins, SouthwestBank,OdessaJ. R. Avant, DilleyStateBankJeff Avant, DilleyStateBankJohn Awalt, FarmersStateBank,GroesbeckGeorge Bailey, UnitedBankofElPasodelNorteDotsy Balentine, HomeTownBank,N.A.,Galveston
John Ballard, CitizensBank,ClaudeKelly Barclay, OzonaNationalBank,WimberleyWilliam Barfield, FirstNationalBankofHebbronville
Bobby Barker, HappyStateBank,DumasDavid Barnes, FirstStateBank,YoakumJennifer Barnett, CitizensNationalBank,Longview
Jim Barron, TexasBankandTrust,LongviewW. H. Bauer, FirstNationalBankinPortLavacaDouglas Bean, OzonaNationalBankJoe Bean, OzonaNationalBankDon Beaty, FirstNationalBankofWinnsboroGail Beeman, TexasBankandTrust,Longview
Sammy Bell, FirstNationalBankofWinnsboroSandra Bergey, YoakumNationalBankMichael Bernhardt, FirstBank,WichitaFallsShane Best, TexasBankandTrust,LongviewDennis Bettison, TexasFirstBank,TexasCityDebbie Bigelow, AmarilloNationalBankJohn Billups, ProsperityBank,VictoriaRandy Bjork, TexasBankandTrust,LongviewJoe Blackshear, TexasFirstBank,TexasCityPatricia Blackshear, TIB-TheIndependentBankersBank,Irving
Bill Blackwell, MillsCountyStateBank,Goldthwaite
Darrell Blum, BrenhamNationalBankJoe Boaz, ProsperityBank,NewWaverlyGary Boening, YoakumNationalBankWaymon Boyd, FirstNationalBankinPortLavaca
Bryan Bradley, FarmersStateBank,MexiaHenry Bradley, FirstBank,OklahomaCity,OKGeorge Brannies, MasonBankGeorge Briant, HappyStateBankDebra Bridges, MillsCountyStateBank,Goldthwaite
Joseph Bright, MuensterStateBankCraig Brooks, ProsperityBank,KatyBarry Brown, FirstBank&Trust,LubbockF. E. Brown, KilgoreNationalBankJoe Brown, BorderCapitalBank,McAllenRichard Browning, SouthwestBank,OdessaJames Bryan, HappyStateBankDewey Bryant, SouthwestBank,OdessaVernon Bryant, SouthwestBank,FortWorthJo Ann Buchanan, FortDavisStateBankDanny Buck, LoneStarCapitalBank,N.A.,SanAntonio
Bruce Buenger, IndustryStateBankBryan Bumpas, JacksboroNationalBankThomas Burdett, HappyStateBank,AmarilloMichelle Burnett, FirstNationalBankTexas,Killeen
William Buttery, LlanoNationalBankChris Cabbiness, FirstNationalBankofHerefordJoe Calvert, IntegrityBank,ssb,HoustonDickey Campbell, TexasFirstBank,TexasCityJoe Cannon, FarmersStateBank,GroesbeckAmy Capps, MasonBankRichard Carlton, SouthwestBank,OdessaEdward Carrasco, FirstFinancialBank,N.A.,SanAngelo
Kent Carruthers, TheCitizensBankofClovis,NM
Pamela Cernoch, IndustryStateBank,NewUlmMargaret Cherryhomes, JacksboroNationalBankJohn Childers, FirstNationalBankofBallingerAllan Childs, PecosCountyStateBank,FortStockton
Mitchell Chouke, TexasFirstBank,GalvestonKenneth Clark, FirstNationalBankinPortLavaca
John Clemens, AmarilloNationalBankPhilip Cloud, BankoftheWest,GrapevineChristopher Cole, SouthwestBank,OdessaWilliam Coleman, LibertyNationalBank,ParisGlynn Collier, MillsCountyStateBank,Goldthwaite
Dan Collins, FarmersStateBank,GroesbeckJim Collins, D’HanisStateBank,HondoGary Colman, YoakumNationalBankGreg Colquitt, CitizensNationalBank,LongviewGary Conway, RoscoeStateBankDanny Copeland, CitizensNationalBank,Henderson
Debbie Cox, FirstStateBank,GainesvilleJames Cox, SouthwestBank,OdessaJerry Craft, JacksboroNationalBankMichael Crain, AllianceBank,SulphurSpringsTom Cravens, SouthwestBank,ArlingtonDebra Crawford, TIB-TheIndependentBankersBank,Dallas
James Crawford, BankersHealthcareGroup,Inc.,Syracuse,NY
Trey Crim, KilgoreNationalBankRichard Cullen, FirstNationalBankinPortLavaca
Sarah Cypert, FirstBank&Trust,LubbockJames Dangelmayr, MuensterStateBankFranklin Darilek, ProsperityBank,VictoriaDavid Daspit, TexasFirstBank,HoustonCarl Davis, FirstNationalBankofWinnsboroJames Davis, FortDavisStateBankJohn Davis, RoscoeStateBank,SweetwaterMichael Davis, BradyNationalBankSteven Davis, GruverStateBankLarry Day, TexasBankandTrust,LongviewJamie Dean, FortDavisStateBankPamela DeCeault, KilgoreNationalBankMorris DeFriend, FarmersStateBank,GroesbeckJulie Degelia, AllianceBank,GreenvilleRichard Dial, TexasBankandTrust,LongviewFrank Diebel, FirstNationalBankinPortLavacaStacy Dienst, HomeTownBank,N.A,GalvestonRay Dierschke, FirstNationalBankofBallingerT. H. Dippel, BrenhamNationalBankDavid Doyle, TexasFirstBank,TexasCityPatrick Doyle, TexasFirstBank,TexasCityL. D. Due, FirstBank,WichitaFallsJ.R. Duke, FirstStateBank&Trust,CarthageTom Duren, MillsCountyStateBank,GoldthwaiteJames Dyer, FortDavisStateBankJim Dyer, FortDavisStateBankMichael Ebie, FirstStateBank,MesquiteGary Edmiston, SecurityBank,OdessaWilliam Ellis,TexasLeadershipBank,RoyseCityDavid Epke, FirstNationalBankTexas,KilleenLeslie Escalante, ProsperityBank,VictoriaMaurice Estlinbaum, HomeTownBank,N.A.,Galveston
Liz Estrada, CitizensBank-ClaudeBranch,Tucumcari,NM
Gary Farley, IntegrityBank,ssb,HoustonJames Farley, SouthwestBank,LubbockRocky Farrar, HappyStateBankTammy Feagley, AllianceBank,SulphurSpringsDick Fellers, HappyStateBankMark Fields, AmarilloNationalBankNelson Finch, JeffersonBank,SanAntonioFrancis Fisher, MuensterStateBankPaul Fisk, TexasLeadershipBank,RoyseCityGary Flemmons, TexasLeadershipBank,RoyseCity
PAC cont’d
January/February 2014 www.ibat.org ★ 39
William Flori, TIB-TheIndependentBankersBank,Dallas
Gary Ford, HamlinNationalBankJoe Ford, HamlinNationalBankPatricia Foster, FirstNationalBankTexas,KilleenKousta Foteh, IntegrityBank,ssb,HoustonRobert Fullbright, FirstNationalBankofHebbronville
Burnie Galle, IndustryStateBankGreg Garland, FirstBank&Trust,LubbockKyle Garner, TIB-TheIndependentBankersBank,Irving
Gregory Garrison, HomeTownBank,N.A.,Galveston
Donald Gartman, TexasFirstBank,TexasCityCarlos Garza, TexasFirstBank,TexasCityRay Geistweidt, MasonBankMike Gilbert, TexasLeadershipBank,RoyseCityGene Giles, FirstStateBank&Trust,CarthageCecil Glovier, HappyStateBank,AmarilloKenneth Goates, TexasBankandTrust,TylerBarry Gober, FirstStateBank,GrahamCharles Gober, FirstStateBank,GrahamMert Goldman, UnitedBankofElPasodelNorteBryan Gonzalez, FirstNationalBankofHebbronville
Gail Graham, TexasBankandTrust,TylerHerbert Graham, SouthwestBank,OdessaCody Graves, MillsCountyStateBank,Goldthwaite
Tom Graves, MillsCountyStateBank,Goldthwaite
Jerry Graybill, JacksboroNationalBankBill Greenhaw, TIB-TheIndependentBankersBank,Dallas
Sheila Gresham, CitizensNationalBank,Henderson
Lew Ellyn Gross, IndustryStateBankMichael Hackebeil, D’HanisStateBank,HondoHoward Hackney, TexasBankandTrust,Longview
Fred Haemisegger, IntegrityBank,ssb,HoustonLinda Hahn, KlebergFirstNationalBankofKingsville
Larry Haire, KilgoreNationalBankCliff Hale, CitizensNationalBank,LongviewKenneth Hall, TexasBankandTrust,LongviewScott Hall, FirstNationalBankofHerefordRussell Hammonds, JunctionNationalBankGeorge Hansard, PecosCountyStateBank,FortStockton
Travis Hardwick, TexasFirstBank,HoustonWilliam Harper, FirstStateBank,GrahamWendy Harris, MillsCountyStateBank,EarlyJames Hartley, IndustryStateBankJohn Hasskarl, BrenhamNationalBankSonja Havens, FirstNationalBankTexas,KilleenRayburn Haynie, FirstNationalBankinPortLavaca
Mark Heinze, BallingerNationalBankBill Hellen, FirstNationalBankofHebbronvilleDolphy Hellman, MuensterStateBankClaude Henry, TexasBankandTrust,TylerA. G. Hermann, FirstStateBank,Yoakum
(Continued on page 40)
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40 ★ The Texas Independent Banker January/February 2014
John Hermann, FirstStateBank,YoakumGuillermo Hernandez, UnitedBankofElPasodelNorte
Hank Hernandez, UnitedBankofElPasodelNorte
Gerald Hess, MuensterStateBankHue Hillis, CitizensStateBank,BuffaloFred Hilscher, FirstNationalBankofShinerMarshall Hodge, TexasBankAndTrust,CantonAntoinette Hoelscher, TexasStateBank,SanAngelo
Mike Holbert, TexasBankandTrust,LongviewMalcolm Holland, VeritexCommunityBank,Dallas
Scott Hollyfield, BankoftheWest,GrapevineJohn Hooker, FirstBank,IowaParkRob Houser, CalTech,SanAngeloRobert Huff, SouthwestBank,OdessaBill Hughes, FarmersStateBank,GroesbeckDavid Hughes, FarmersStateBank,GroesbeckCynthia Hundl, FirstNationalBankofShinerRobby Hymel, D’HanisStateBank,HondoJacqueline Ilse, KlebergFirstNationalBankofKingsville
Clint Irwin, GruverStateBankJohn Irwin, GruverStateBank,AmarilloMark Irwin, GruverStateBankJim Ivy, PecosCountyStateBank,FortStocktonClaud Jacobs, FirstStateBank,YoakumRick Jamieson, TIB-TheIndependentBankersBank,Irving
Christina Janecka, CitizensNationalBank,Corsicana
M. C. Jeu, IntegrityBank,ssb,HoustonJerry Johnson, FirstBank,BurkburnettA. C. Jones, FirstNationalBankofHebbronville,CorpusChristi
Tim Jones, ProsperityBank,CollegeStationGregg Jordan, AmarilloNationalBankJohn Jordan, ProsperityBank,VictoriaMurray Jordan, BradyNationalBankBarry Josserand, FirstNationalBankofHerefordTina Jourdan, TIB-TheIndependentBankersBank,Dallas
Tim Kahanek, ProsperityBank,VictoriaJonathan Kalich, FirstNationalBankofShinerMichael Kalina, FirstNationalBankofShinerSam Kana, FirstNationalBankofEagleLakeJames Kangerga, TexasLeadershipBank,RoyseCity
Kevin Kaplan, ProsperityBank,CorpusChristiEugene Kasberg, FirstNationalBankofBallingerDon Kaspar, FirstNationalBankofShinerDouglas Kaspar, FirstNationalBankofShinerScott Keeling, FirstNationalBankofHerefordBrad Keitt, CitizensNationalBank,HendersonTom Kelley, YoakumNationalBankTerry Keltz, BradyNationalBankRoss Kerns, AmarilloNationalBankTom Key, CommunityNationalBank&TrustofTexas,MineralWells
Joey Kimbrough, HamlinNationalBank
PAC cont’d Bentley King, PecosCountyStateBank,FortStockton
Charles King, TexasBankandTrust,LongviewFrankKing,BradyNationalBankJoe Kim King, FirstNationalBankofBallingerMason King, SouthwestBank,FortWorthRonny Knight, FirstNationalBankofWinnsboroFred Knipling, FirstNationalBankinPortLavacaCorey Krusa, AmarilloNationalBankMike Kuhlman, HappyStateBank,CanyonDouglas Kunkle, FirstBank,WichitaFallsSherri Kusak, FirstStateBank,YoakumKenneth Kvinta, FirstStateBank,YoakumGary Lain, HamlinNationalBankHarlan Lambert, PecosCountyStateBank,FortStockton
Bill Landiss, FirstNationalBank,GiddingsMary Laughinghouse, D’HanisStateBank,Hondo
Steve Lewis, JeffersonBank,SanAntonioBrad Lindemann, IndustryBancshares,Inc.James Lindemann, IndustryBancshares,Inc.John Loeffler, JunctionNationalBankBarney Loesch, BrenhamNationalBankDon Long, OzonaNationalBankWarren Longmire, TexasFirstBank,HitchcockLarry Lott, TexasLeadershipBank,RoyseCityDale Lunsford, TexasBankandTrust,LongviewDavid Magness, TexasLeadershipBank,RoyseCity
James Maloney, UnitedBankofElPasodelNorteDave Marlow, YoakumNationalBankMark Marshall, BradyNationalBankRussell Marshall, ProsperityBank,VictoriaGustavo Martell, UnitedBankofElPasodelNorte
Dora Martinez, KlebergFirstNationalBank,Kingsville
Mario Martinez, FirstNationalBankofHebbronville
Laurie Mayfield, D’HanisStateBank,HondoBill McCandless, LoneStarCapitalBank,SanAntonio
Jennifer McCarty, CitizensNationalBankofTexas,Waxahachie
Michael McCullick, D’HanisStateBank,HondoSteve McIlhaney, MainStreetChecks,Inc.,Norman,OK
Drayton McLane, III, HappyStateBankDrayton McLane, Jr., HappyStateBankJim McVay, UnitedBankofElPasodelNorteJ.C. Melcher, FirstNationalBankinPortLavacaJames Mellody, TexasLeadershipBank,RoyseCityJames Meredith, FirstNationalBankTexas,Killeen
Elam Miles, MillsCountyStateBank,GoldthwaiteFrosty Miller, LlanoNationalBankJan Mills, FirstNationalBankofWinnsboroDavid Minear, FirstNationalBankofShiner,Bellville
George Minear, FirstNationalBankofShinerKelly Minear, FirstNationalBankofShiner,Richmond
Randy Mitchell, FirstNationalBankofWinnsboroT. M. Mobley, KilgoreNationalBankLisa Moeller, IndustryStateBank,Columbus
Maggie Molina, UnitedBankofElPasodelNorteNancy Mullins, FirstNationalBankTexas,KilleenLee Murchison, FirstBank,WichitaFallsWilliam Murphy, VeritexCommunityBank,PlanoAndrew Murr, JunctionNationalBankMaurita Myers, TexasBankandTrust,LongviewCharles Napier, UnitedBankofElPasodelNorteDean Narrell, RoscoeStateBank,SweetwaterWilliam Natho, FirstNationalBankofShinerPat Nault, KilgoreNationalBankDon Neill, DEI,BrownwoodRita Nelson, FirstNationalBankTexas,KilleenDebbie Norman, FirstNationalBankTexas,Killeen
David Norris, HappyStateBank,AmarilloSam Nunn, CitizensBank,AmarilloDaniel Odom, WesternBank,LubbockDeborah Odom, GruverStateBankBruce Orr, FirstBank&Trust,LubbockGiancarlo Ortega,TexasFirstBank,HoustonPatrick Pace, HamlinNationalBank-RuleCenterBob Pagan, HomeTownBank,N.A.,GalvestonSheri Parish, TexasBankandTrust,LongviewDonnie Park, FirstBank,WichitaFallsKelly Park, ProsperityBank,VictoriaBryan Peeler, FanninBank,BonhamCarlos Pena, TexasFirstBank,TexasCityDarlene Pence, TIB-TheIndependentBankersBank,Dallas
Joe Perrin, FirstNationalBankofHerefordJohn Perrin, FirstNationalBankofHerefordClark Peveto,CommunityNationalBank&TrustofTexas,MineralWells
Riley Peveto, CommunityNationalBank&TrustofTexas,MineralWells
George Peyton, HappyStateBank,CanadianEdward Pfeil, ProsperityBank,VictoriaDan Phillips, KilgoreNationalBankPat Plaia, TexasFirstBank,WinnieCharles Pluenneke, MasonBankJoyce Pope, TexasBankandTrust,LongviewCatherine Potter, TexasFirstBank,TexasCityGreg Pruitt, FirstNationalBank,RotanMatt Ramsey, AmarilloNationalBankChris Rand, FarmersStateBank,GroesbeckCorky Randolph, AllianceBank,RockwallNancy Ray, CommunityNationalBank&TrustofTexas,MineralWells
Mary Reeves, FirstNationalBankofMoody,Dallas
Barry Renfroe, TIB-TheIndependentBankersBank,Boerne
Glenn Renken, YoakumNationalBankTot Richards, FirstStateBank,GrahamTerry Richey, SouthwestBank,OdessaJ.D. Riggs, RoscoeStateBankJohn Ritchie, CommunityNationalBank&TrustofTexas,MineralWells
Richard Ritchie, CommunityNationalBank&TrustofTexas,MineralWells
Don Roark, FirstBank&Trust,LubbockFrank Roddie, BradyNationalBankGary Rothwell, FirstBank&Trust,LubbockRonald Rudloff, IndustryStateBankEd Rumage, JacksboroNationalBank
January/February 2014 www.ibat.org ★ 41
Gary Rusch, AllianceBank,GreenvilleRobert Russell, CitizensNationalBank,Henderson
Richard Sadler, FarmersStateBank,GroesbeckJoe Saladino, HomeTownBank,N.A.,GalvestonCraig Sanders, AmarilloNationalBankAllen Sanderson, FanninBank,BonhamJohn Satterwhite, FirstNationalBankofWinnsboro
Billy Saucier, FirstNationalBankofWinnsboroClyde Sawyer, PecosCountyStateBank,FortStockton
Richard Scalzitti, IntegrityBank,ssb,HoustonMarcus Scarborough, CitizensBank,TuliaFrank Scheer, FirstSecurityBank,N.A.,FlowerMound
Paul Scheurer, TIB-TheIndependentBankersBank,Dallas
Sandra Schmidt, IndustryStateBankMarcia Schmitz, MuensterStateBankMark Schmutz, ProsperityBank,KatyPatrick Schully, FirstStateBank,GainesvilleDavid Schulz, IndustryStateBankMilton Schwartz, MillsCountyStateBank,Goldthwaite
Greg Schwertner, BradyNationalBankCharlie Sellers, HamlinNationalBankHanna Shanar, IntegrityBank,ssb,HoustonJames Sheridan, TexasBankandTrust,TylerStephen Sherrill, CitizensBank,ClaudeStuart Shiloff, UnitedBankofElPasodelNorteWilliam Shine, FirstNationalBankTexas,KilleenBen Shirey, TexasBankandTrust,CantonTraci Shore, TIB-TheIndependentBankersBank,Dallas
Mary Shows, YoakumNationalBankBeny Shuping, HamlinNationalBankKeith Shurtleff, AllianceBank,SulphurSpringsBrian Sims,HappyStateBankThomas Sipp, TIB-TheIndependentBankersBank,Irving
Trent Sisemore, HappyStateBank,AmarilloEdward Smien, FirstNationalBankTexas,KilleenAlfred Smith, HappyStateBankAmelia Smith, FirstLockhartNationalBankJoy Smith, TIB-TheIndependentBankersBank,Houston
Robert Smith, SageAdvisoryServices,AustinStanley Sommer, BrenhamNationalBankAnnette Sorrells, FirstNationalBankofHebbronville
Donald Sparks, ProsperityBank,VictoriaRichard Spencer, TexasBankandTrust,LongviewDonald Spiess, BrenhamNationalBankBarbara Spiller, JunctionNationalBankRob Roy Spiller, JunctionNationalBankR.E. Spradlin, KilgoreNationalBankDrew Springer, BallingerNationalBankPhillip Springer, BallingerNationalBankWillis Stamper, JacksboroNationalBankPatrick Stanley, AmarilloNationalBankAaron Starks, TIB-TheIndependentBankersBank,Dallas
Robert Stennis, ProsperityBank,CollegeStation
(Continued on page 43)
IBAT 1/3 pgTIB Jan/Feb 2014
this new level of activity. These four indi-viduals are leaving our board after many years of service to the Foundation and we are so proud of all they have helped the Foundation accomplish. They include:J. Pat Hickman, HappyStateBank,oneofourfoundingmembers.
Michaux Nash recentlyretiredfromAmeri-canNationalBankofTexas,oneofourfoundingmembers.
Darrell Brown, ExecutiveDirector,StudentEngagement,TarletonStateUniversity
Steve Doty, ComplianceConsultant,McGregor
We can never say thank you enough for years of service, idea sharing, dona-tions of time, money and the personal energy they have so faithfully provided.
We are excited by your support and encouragement as we work to accomplish our mission. One important goal of the Foundation is to remind Texans that True Community Bankers make a difference
in every community they serve. We will keep you updated with the Foundation Footprints e-newsletter.
Best wishes for 2014 to be a very good year for our industry and for each one of you. ★
FOUNDATION FOOTPRINTS cont’d from page 6
2014 Teaching Excellence in Financial Literacy award
Nominate a deserving teacher from your local school district and help us honor their commit-ment and contributions to promoting financial
literacy in our public schools.
Nominations deadline –
march 31
42 ★ The Texas Independent Banker January/February 2014
IBaT CalendarJanuary
28–30 IBAT Regional Meetings (Round 1)
February3–4 TechMecca, Austin
9–11 Winter Summit XIV, Lake Tahoe
20–21 Hold, Fold or Raise? An M&A Workshop for Community Banks
march10–13 IBAT Regional Meetings (Round 2)
18 Credit Analysis Summit
19–20 Advanced Credit Analysis Summit
26–27 Sales Culture Summit
april17–18 Lending Compliance Summit
29–30 Nuts & Bolts of Banking Summit
29–30 22nd Annual Congressional Visit
may1–2 22nd Annual Congressional Visit
June3–4 Bank on Boot Camp
26–28 Leadership Conference, San Antonio
July24–25 Financial Literacy Summit
august14–15 Operations Compliance Summit
28 Appraisals Summit
september27–30 IBAT Convention, Fort Worth
October12–17 Bank Operations Institute, Dallas
31 Certified Community Bank Directors Program
November1 Certified Community Bank Directors Program
6 Investment & Asset/Liability Management Summit
webinars in 2013. Our goal is to make available vital training offerings and low-est cost educational alternatives across all functional banking lines, consistent with the needs identified by the membership.
I sincerely hope you will resolve to utilize the tremendous benefits offered through your association and engage in our program of work. Your involvement and support will ensure that we are suc-cessful in meeting the growing demands of you, our members.
And it just might result in realizing the lofty resolutions and goals you have established for your own institution. ★
UP FRONT cont’d from page 4
challenge can be met and the potential risks managed for a smooth and profitable 2014. ★
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INTEREST RATES cont’d from page 14IBaT 40TH aNNUaL CONVENTION
sePTember 27–30, 2014
wOrTHINgTON reNaIssaNce HOTel • FOrT wOrTH
laundering activity. Do you identify and consider both velocity and variety? Are there other ways than just reports to help identify unusual or suspicious activity? If your bank does not do both, the picture may not be complete, and you might get hit by a big surprise! ★
Kelly Goulart is IBAT’s Regulatory Compliance Manager.
COMPLIANCE GUY cont’d from page 46
For information about any of these programs, contact Julie Courtney at 800-749-4228 or [email protected], or visit www.ibat.org.
January/February 2014 www.ibat.org ★ 43
welcOme New members®
baNksThe First National Bank of mertzon mort mertz, president & CEO
patriot Bank, Houston W. Don Ellis, Chairman & CEO
assOcIaTe membersaccumatch property Tax Intelligence Ryan Liebbe, National Director of Sales Dallas, TX www.accumatch.com
Property Tax Servicer. We have created an automated platform that has the ability to match parcel num-bers through our proprietary matching technology. This allows our clients real time service with a fast turnaround. All delinquent taxes are monitored and reported on a monthly basis with no annual fee.
Corrigo Incorporated Tom Kay, Director National accounts allen, TX www.corrigo.com
The work order network powered by Corrigo is an easy-to-use web-based application that provides IBAT members the ability to effectively control costs
across their branches – tracking repairs, mainte-nance, assets, warranties + manage and source service providers.
Henry & peters, p.C. Gary penkilo, Cpa, Officer/Shareholder Tyler, TX www.henrypeters.com
Henry & Peters, P.C. currently provides accounting services to 25 financial institutions. Besides tax and audit services, we provide internal audit services, consulting, regulatory compliance, trust audit ser-vices, mergers and acquisitions, and capital planning and projects. We currently serve banks with asset sizes from $17 million to over $2 billion.
Holman Capital Corporation Lance S. Holman, president & CEO Rancho Santa margarita, Ca www.holmancapital.com
Holman Capital specializes in originating tax-exempt and taxable debt solutions issued by governments, universities, and hospitals. We finance their essential purpose capital equipment, real property, infrastruc-ture, and technology needs. Holman Capital provides its banking partners with pricing intelligence, credit
expertise, and loan volume to build a diversified pub-lic finance portfolio.
Outsource aTm paul albright, Vice president Cypress, TX www.outsourceatm.com
Outsource ATM provides ATM managed services, allowing financial institutions to focus on their core competencies and offload a resource drain. Our part-ners get the marketing and financial benefits; we take on the risk and regulations, hard costs, headaches, maintenance and management of the ATMs. Own the benefits, not the hardware.
Treasurer’s Choice processing Clayton Hosterman, principal/Founder Dallas, TX www. treasurerschoice.com
Treasure’s Choice Processing unites community banks with community brick and mortar and e-com-merce merchants. We have the tools, relationships, and solutions to allow banks to help ALL merchants accept and process credit card transactions driving unparalleled, stable, non-interest income from these relationships with the potential of raising average revenue per merchant over 50%. ★
Mark Stevenson, TexasStateBank,SanAngeloMark Stewart, ProsperityBank,VictoriaWebster Stickney, HappyStateBank,CanadianConnie Stockbridge, MasonBankRon Stovall, RoscoeStateBankWilliam Stovell, FirstNationalBankofHerefordDavid Strayhorn, FirstBank,BurkburnettTony Street, CommunityNationalBank&TrustofTexas,MineralWells
Richard Stuart, CommunityNationalBank&TrustofTexas,MineralWells
Bryan Studdard, RoscoeStateBankVican Sun, IntegrityBank,ssb,HoustonTommy Tatum, FirstNationalBankofHerefordMatthew Tavern, HappyStateBank,AmarilloGary Taylor, TexasBankandTrust,LongviewWilliam Thiele, YoakumNationalBankG. E Thompson, FirstStateBank,YoakumMace Thurman, FirstNationalBankofMoodyRussell Thurman, FirstNationalBankofMoodyGilbert Tijerina, FirstNationalBankofHerefordSusan Tomchesson, ProsperityBank,SugarLandJohn Clyde Tomlinson, TexasBankandTrust,Longview
Cheryl Traudt, ExtracoBanks,N.A.,TempleToby Tripp, SouthwestBank,OdessaEddie Tucker, FirstStateBank,Graham
Frankie Tupa, FlatoniaNationalBank,FlatoniaChan Turner, TexasBankandTrust,LongviewJim Underwood, FirstStateBank,GrahamHerschel Vansickle, ProsperityBank,VictoriaBrian Vincent, HappyStateBankBrent Wade, AmarilloNationalBankMarjorie Wagner, CitizensNationalBank,Henderson
R. A. Wagner, FirstNationalBankofShinerTravis Wall, FirstStateBank&Trust,CarthageMark Walling, TexasBankandTrust,TylerClaude Walter, MuensterStateBankPat Ware, AmarilloNationalBankDavid Watson, YoakumNationalBankMichael Weaver, FirstNationalBankofShiner,Cuero
Paul Weaver, SouthwestBank,OdessaHenry Weinzapfel, MuensterStateBankKay Wesson, RoscoeStateBank,BastropCyd West, FirstNationalBankTexas,KilleenLinda West, HappyStateBankKatie Whitson, CitizensBank,ClaudeCharlie Williams, CitizensNationalBank,Longview
J. David Williams, CentennialBank,KerrvilleLarry Williams, RoscoeStateBankPerry Williams, HappyStateBank,AmarilloKaren Williamson, FirstNationalBankofMoody
Blan Willoughby, FirstNationalBankinPortLavaca
David Wilson, TexasBankandTrust,LongviewGaddis Wittjen, TexasFirstBank,TexasCityJohn Womack, KlebergFirstNationalBank,Kingsville
Rex Wood, TIB-TheIndependentBankersBank,Dallas
Ernest Woodward, PecosCountyStateBank,FortStockton
Jerry Woolverton, TexasBankandTrust,TylerM.J. Wooten, LlanoNationalBankBob Wright, RoscoeStateBankJack Wu, FirstNationalBankinPortLavacaF. Randolph Young, UnitedBankofElPasodelNorte
James Young, FirstBank&Trust,LubbockKenneth Zapalac, NationalBank&Trust,LaGrange ★
PAC cont’d
march 1 marks the beginning of
IBaT’s 2014 paC Drive Campaign
44 ★ The Texas Independent Banker January/February 2014
IBAT Around
the State
and beyond
Around Around
October 1-2IBaT attends the pULSE Conference in New Orleans.
October 3IBaT Leadership Division Region 5 hosts a luncheon in mount pleasant and a dinner in Longview.
IBaT participates in the West Texas/San angelo area Bankers meeting.
October 7IBaT attends a meeting of the Financial Services Sec-tor Work Group at the Texas Department of Insurance in austin.
October 7-10IBaT participates in the annual meeting of all the community bankers associa-tions in Virginia.
October 8IBaT attends the South Central Texas Bankers association meeting in Schulenburg.
October 8-9IBaT Education hosts the 2013 Dodd-Frank Update! Regulations Z, B, and RES-pa Seminar in Harlingen.
October 10-11IBaT attends the Texas association of Bank Coun-sel annual Convention in austin.
October 13-18IBaT Education presents the 2013 Bank Operations Insti-tute in Dallas.
October 15IBaT Education and pBS co-host the 2013 Texas Deposit Documentation in Lubbock.
October 15-16IBaT Services visits member banks in Northeast Texas.
October 16IBaT Education and pBS co-host the 2013 Texas Deposit Documentation in arlington.
IBaT Leadership Division Region 1 hosts the Florida Scramble Golf Tournament in amarillo.
October 17-18IBaT participates in The Baker Group’s annual Semi-nar in Oklahoma City.
October 18IBaT celebrates with mills County State Bank at
its 125th anniversary in Goldthwaite.
October 23IBaT attends TIB’s board meeting in Irving.
IBaT staff attends profes-sional advocacy association of Texas Conference in austin.
October 24IBaT Leadership Division Regions 3 and 4 host the DFW Educational Luncheon and Golf Tournament at the Hackberry Creek Country Club - Las Colinas in Irving.
October 25IBaT speaks at the fall meet-ing of the mays Business School Banking program in College Station.
IBaT Services participates in the advantage Health plans Trust Board of Trustees meeting in Oklahoma City.
October 27-30IBaT attends ICBa’s fall meetings in West Virginia.
October 29IBaT celebrates 100 years of community banking with The First State Bank, Columbus.
October 31 - November 2IBaT Education hosts The Certified Community Bank Director’s program in Dallas.
November 4-6IBaT participates in the ICBa BSa/amL Institute in Dallas.
November 5-6IBaT Education presents Dodd-Frank Update! Regula-tions Z, B, and RESpa Semi-nar in San antonio.
November 5-7IBaT attends BaI in Denver.
November 7IBaT Education presents Dodd-Frank Update! Regula-tions Z, B, and RESpa Semi-nar in Irving.
IBaT hosts the associate member Houston area Net-working Event.
IBaT Leadership Division Region 9 gathers for a networking event and round table discussion in Houston.
November 7-8IBaT Education hosts the IBaT Investments & asset/Liability management Sum-mit in Dallas.
November 9IBaT Education Foundation presents the 2013 IBaT Teach the TeacherTm pro-gram in Houston.
November 12IBaT speaks to a commu-nity focus outreach meeting sponsored by Woodforest National Bank in North Rich-land Hills
IBaT celebrates the 75th anniversary of mG archi-tects in Houston.
November 14IBaT Education presents the Waco area Cluster program: BSa/amL – What’s Essential in 2013?
IBaT participates in the Hill Country meeting of Finan-cial Women in Texas in Kerrville.
November 19IBaT celebrates with Integri-ty Bank at the grand opening of its pasadena branch.
IBaT speaks at the South plains Bankers association meeting in Lubbock.
November 19-20IBaT Education presents the Branch manager Sum-mit Sessions 3 & 4 in The Woodlands.
November 20IBaT, TBa and FDIC present the 2013 FDIC Banker Out-reach in austin.
November 20-22IBaT Education participates in the annual gathering in New Orleans of the educa-tion departments of all the community bankers associations.
November 21IBaT speaks to the austin association of Financial professionals.
November 22IBaT, TBa and FDIC present the 2013 FDIC Banker Out-reach in Richardson.
a
January/February 2014 www.ibat.org ★ 45
aDVERTISING DIRECTORY
accuSource Solutions www.accusourcesolutions.net pg 2
aNICOwww.anico.com pg 9
avtek Solutions www.avteksolutions.com pg 17
BKD, LLp www.bkd.com pg 17
Caltech www.caltech.com pg 48
First american payment Systems http://www.first-american.net/ pg 47
Granville Financial Group www.granvillegrp.com pg 13
IBaT Services www.ibat.org/services pgs 11, 39
IBaT Services Success Story www.diebold.com pg 7
Sam Houston State University www.shsu.edu pg 29
The Baker Group www.gobaker.com pg 15
The Bankers Bankwww.thebankersbank.com pg 29
TIBwww.mybankersbank.com pg 41
Transfund www.transfund.com pg 5
prosper Bank, prosper110 years
★Guaranty Bond Bank, mount pleasant
100 years
aNNIversarIes
migration. Starting a migration project a bit prematurely without discovery and planning can actually cost banks time and money because they could end up starting over.
STEP 2: Build a standard imageAt this point in the game, efficiency
is of the utmost concern. It is best prac-tice to create a standard image that will be utilized on all Windows 7 systems going forward. In fact, for future Windows migrations, it would be a good idea to make notes of steps that you planned and executed to ensure proper execution. Be sure to include on the standard image all applications that are required on all base computer images.
STEP 3: Verify applicationsBanks should verify that their appli-
cations are supported on Windows 7. This can be the tricky (and most expensive) part of the process. If banks invested a ton of money in custom software, they may be required to upgrade that software to ensure compatibility with Windows 7.
STEP 4: Capture user settings This might seem like a minuscule fac-
tor, but this one task can make the differ-ence between a successful or unsuccessful migration. It involves transferring each user’s network, operating system, applica-tion and data settings. Imagine a bank with 10 branches, 100 employees, 30 network printers, network drive mapping, favorites and security settings, and then imagine the time it would take to individually handle just this task. There should also be policy
in place to inform users what files will be lost in the migration— typically personal music and video files.
STEP 5: Migrate and measureEnsure that, if you are deploying new
servers during this process, it is included in step one of this process. Make any required network adjustments such as enabling multicasting. Identify and docu-ment test cases; then create a phased roll-out. Once you have completed all of the above the migration can begin.
STEP 6: Metrics The board of directors and executive
team will be looking for reporting follow-ing the migration to measure the key data points from a high level perspective. The key metrics of interest will be total num-ber of clients migrated, problems reported during the migration process, overall migration status and verification that the bank is compliant with all licensing.
During the planning process banks will need to identify how the migration will look: will you upgrade your current machines, buy new client workstations or virtualize the end-user computing? Each option has its benefits and drawbacks. Although this process might seem daunt-ing, there are plenty of resources for banks to utilize. A wise man once said “A jour-ney of a thousand miles starts with the first step.” ★
Denney James is the Strategic Account Man-ager for IBAT at Dell. For more information on how Dell can help your bank with the migration process contact Denney at 512.728.8763 or email him at [email protected].
What Banks Should Know About the End of Support for XP cont’d
46 ★ The Texas Independent Banker January/February 2014
By Kelly Goulart
THE COMPLIANCE GUY
mining for...Unusual Activity?
Last month, Saddle River Valley Bank, a two-branch New Jersey community bank whose assets were acquired by Center Bancorp Inc. in 2012, agreed to pay $8.2 million to settle claims that it vio-lated anti-money laundering laws. That same month, CommunityOne Bank in North Carolina agreed to a $400,000 restitution
payment with the Department of Justice to settle a claim that the bank failed to file suspicious activity reports and maintain an effective AML program. The case was brought when regulators charged that CommunityOne should have detected and reported a Ponzi scheme that was operated by a bank customer for two and a half years and involved laundering $35 million dollars through accounts at the bank. The les-son for community banks is that anti-money laundering and “Know Your Customer” violations are not just a big bank problem.
In an interview after the settlement was reached, Brian Simpson, CEO of CommunityOne, on the topic of “Know Your Customer” said, “It’s an issue that the entire industry needs to recognize. Perpetrators of financial crimes and fraud have to conduct their fraud through a banking institu-tion, so we all must be vigilant to be sure we play our part and work with law enforcement to stop financial crimes.”
While most community banks operate with a business model focused on relationship building and knowing the customer, that does not mean that those banks are immune from being targeted and used by those involved in criminal enterprises. To have an effective AML program, banks must evolve from just the iden-tification and monitoring of high risk customers (enhanced due diligence) to an integrated approach that includes transaction monitoring across all bank products and services.
In today’s community bank, an effective AML program must include a great deal of granularity to identify and report unusual activity. Each and every employee needs to be on the lookout for attempts to structure transactions to avoid reporting or record-keeping. That means identifying and reporting unusual and or suspicious activity that is contrary to what we would expect to see. It’s one thing to identify activity that clearly meets the threshold for filing a suspicious activity report — the proverbial low hanging fruit — and it is quite another to identify activity designed to mask and obscure that activity. Remember that all it takes is a reasonable basis for concluding that a crime has been
committed, is being committed, or may be committed — and structuring is a crime that has been committed, is being committed, or may have been committed.
What does a bank need to watch out for? One thing to identify and track is the amount and velocity in which money is moved. The purpose of money laundering is to move money around, and that translates to veloc-ity. What tools does the bank have in place to iden-tify transactions that are unexplained, repetitive, or show unusual patterns? That all relates to velocity of movement and requires tools to identify.
Many community banks rely on system reports that lack any historical look back — in other words, the system reports are static and not dynamic. That is a fundamental weakness. A
good example of that is the Cash Transaction Report. Typ-ically those reports give the cash in and cash out on a par-
ticular business day to help identify transactions greater than $10,000 in a single or multiple transactions. But they are static reports — and to make matters even worse, some banks have the reporting thresh-
old for those reports set too high or too low. But by far the big-gest problem with those types of reports is the lack of historical data — it is impossible to identify repetitive or unusual patterns based upon that single static snapshot. There are a multitude of other reports available including wire transfer logs, suspect kiting reports, overdraft reports, and delinquent loan reports. However, they all suffer if they are static and not dynamic. The identification of patterns requires a historical look back.
Another key to identifying suspicious activity related to money laundering is the volume (related to velocity) and the variety of transactions. This requires comparing data across a number of product and service lines, perhaps even across mul-tiple platforms. Departmental and functional area data needs to be compiled and reviewed to help identify unusual and suspi-cious activity.
Real world example here…I was at a bank that had a bor-rower (an auto body shop) making loan payments with travel-ers checks. If we had not been alerted to that by the loan staff, we would not have seen that on any report. The lesson learned there is that you can’t rely on reports alone — no matter how good those reports are.
So consider ways you identify potential anti-money (Continued on page 42)
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1stPayPOS™ provides increased capabilities over traditional countertop terminals in a simple and easy to use format.
Get business started right out of the box!
Call us at 817-317-7213 to find out about our bank programs.
• Quick & easy setup
• Remote management
• Cloud backup
• Tracks all payment types
Key Benefits Include Plus tons of standard features
Inventory tracking
Personnel tracking
CRM tool
Loyalty offers
Sales Analytics
Print, email, or text receipts
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