It Has Saved Our Bank Numerous Times.”
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Bottom Line “It has saved our bank numerous times.” In the early ‘80s, Mr. Heitkamp and ValueBank Texas were looking for a network partner that understood the needs of a community bank. PULSE was the perfect fit. Over the years, ValueBank has utilized many of our innovative products and services to help them grow. When it comes to fraud detection, they rely on DebitProtect®. It provides early warnings on fraudulent card activity, which has helped them significantly reduce their fraud losses. That’s good for ValueBank’s bottom line. “If you’re not using DebitProtect, you better take a good look at it.” To take a good PULSE look at DebitProtect and hear what else Mr. Heitkamp had to say, go to: ©2013 pulsenetwork.com/debitprotect THE TEXAS INDEPENDENT VOLUME XXXIX NO. 1 BANKER january/february 2013 Advocacy 21 Winning with Franchise Players: Perk Up Your Personnel Playbook by William Granville III 23 Despite New Regulation, Debit Growth Remains Robust 24 The Lege is Back in Town By Steve Scurlock 26 Regulatory Agencies: A Quick Preview of Coming Attractions By Karen Neeley 28 Strategic Risk: What the Board of Directors Should Know About It and What They Should Do About It By Cathy Ghiglieri 30 How Banks Can Safely Embrace Bring-Your-Own-Device Bonnie Kankel / Editor in Chief By Don Jackson Mary E. Lange / Contributing Editor Darlene Revers / Advertising Manager 33 IBAT Financial Services — Your Safety Net Amanda Morcombe / Advertising Assistant Terry Young / Association News Editor 34 So You’re Ready to Step It Up? John Wilson / Cover Design/Illustration By Steve Scurlock Barbara Jezek / Design/Production IBAT’s bi-monthly magazine, The Texas Independent Banker, welcomes letters from readers. The Texas Independent Banker, January/February, Volume XXXIX, DEPARTMENTS Issue 1. Published bi-monthly by the Independent Bankers Association of Texas, 1700 Rio Grande Street, Suite 100, Austin, TX 78701, 512/474-6889, 4 Up Front 14 Personnel Update Bottom Line FAX 512/322-9004. Inquiries should be sent to the Editor. Editorial guidelines are available upon request. Advertising rates may be obtained by contacting 6 Foundation Footprints 16 Association News “It has saved our bank numerous times.” Advertising Sales at 800/749-4228 or 512/474-6889. Advertisements do not imply sponsorship by IBAT. ©2013 by the Independent Bankers Association of 8 Services Solutions 18 Leadership Division News In the early ‘80s, Mr. Heitkamp and ValueBank Texas were looking for a network Texas. No part of this publication may be reproduced in partner that understood the needs of a community bank. PULSE was the perfect fit. any form without written permission of the publisher. Opinions expressed in this publication do not necessarily General Counsel’s Corner 44 IBAT Calendar Over the years, ValueBank has utilized many of our innovative products and services reflect official policy of the Independent Bankers 10 Association of Texas. to help them grow. When it comes to fraud detection, they rely on DebitProtect®. Interest Rates 45 Advertising Directory It provides early warnings on fraudulent card activity, which has helped them 12 significantly reduce their fraud losses. That’s good for ValueBank’s bottom line. “If you’re not using DebitProtect, you better take a good look at it.” To take a good Quote: Zig Ziglar look at DebitProtect and hear what else Mr. Heitkamp had to say, go to: ©2013 PULSE ©2013 January/February 2013 www.ibat.org ★ 3 UP FRONT Small Affairs ivil war historians are almost unanimous in their con- Wall Street must be revisited and refined to allow community clusion that the fate of the war turned on one historic banks to return to days of serving the needs of small business battle…the battle for Little Round Top at Gettysburg. and consumers with appropriate regulation and less government On July 2, 1863, Union Colonel Joshua Lawrence interference. Chamberlain, a mere school teacher from Maine, was But the battle can only be won if there is commitment of Cordered to take his 20th Maine, along with the 83rd Pennsylva- every community bank stakeholder, director, officer, employee nia, the 44th New York and the 16th Michigan to the crest of to immerse themselves in the conflict. For far too long, far too Little Round Top to protect it against a confederate advance. many have allowed others to wage the battle alone. A vast Chamberlain’s troops were outnumbered nearly three to one by majority have relied on peers to carry the load of contributing the 15th Alabama under the Command of William Oates. to bank political action committees, carry the community bank The fighting that ensued was fast and furious. Some 40,000 message to elected officials and regulators or participated in rounds were exchanged in the course of 90 minutes; saplings other initiatives designed to provide ICBA and IBAT the tools halfway up the hill were gnawed in half by bullets. The Union necessary for maximum effectiveness. troops had withstood three advances by Confederate troops. It is a new year. It is a fresh start. It is our time. We stand Recognizing that a third of his troops had fallen and conclud- ready to mount a major offensive legislative initiative in the ing that Little Round Top would be impossible to hold by mere 113th Congress to save this industry from further peril and defensive measures, Chamberlain placed himself in the front of restore a modicum of balance to bank regulation. Ask yourself, the line and gave the order to “Fix Bayonets.” His haggard and your directors and every employee in your bank what they are depleted troops charged down the hill. prepared to do to assist in this effort. It might be as simple as Surprised at the offensive charge, the 15th Alabama was developing a personal relationship with your member of Con- soundly defeated, the left flank was secured, and the Confed- gress, or writing a check to ICBA or IBAT’s political action eracy was deprived of marching onto Richmond and beyond. committee or even travelling to Washington to lobby on behalf When reflecting on the battle for Little Round Top, Oates of this effort. was quoted as follows. “We ran like a bunch of scolded dogs. It’s time to dismiss the conve- We had the numbers and yet we were severely defeated with this nience to just let someone else do single act of valor. Great events (the Civil War) sometimes turn it. Resolve in the new year that on comparatively small affairs.” you can make a difference regard- A single act of valor. A defining moment. less how small you perceive your Today, the community banking industry finds itself contribution to be. immersed in a war of its own. It is a fight for relevance and sur- Take a lesson from history. vival in a dynamic financial services marketplace. Through no Great events sometimes turn on fault of their own, community bankers wince at the high burden comparatively small affairs. ★ cost of oppressive regulation brought about by institutions less responsive to the needs of their marketplace; seeking gain at the expense of risk and customer vulnerability. Outnumbered by hordes of Wall Street lobbyists and an opportunistic Congress, CHRISTOPHER L. community bankers find themselves seeking bold leadership to WILLISTON, CAE, is conquer the long odds they perceive as stacked against them. President and Chief But it is a battle that can be won. A growing recognition Executive Officer of the exists in the halls of Congress that community banks and small communities across this vast land must be saved. Sentiment Independent Bankers persists that if the industry is to be saved then the shackles of Association of Texas. regulation brought about to curb the destructive practices of 4 ★ The Texas Independent Banker January/February 2013 FOUNDATION FOOTPRINTS How Well Do We Know Our Local School Leaders? An investment in Texas that will provide rich returns! s True Texas Community Bankers, we know we play a other industry group, have our finger on the pulse of our local definitive role in the evolving story of the Texas econ- economies. The super charged successes surrounding oil and omy and the number of jobs it can bring to an area. gas drilling, university and medical school expansions, innova- That is a given. tions in technology, manufacturing or Formula One auto races Looking toward the future, we now have an oppor- have created a gold rush for some areas of our state; the drought Atunity to play a definitive role in the evolving story of our Texas impacting our ranching and agricultural sectors is creating eco- education system and the 4.9 million students who pass through nomic uncertainty in others. Each of these successes and declines our local schools needing a solid grounding in personal financial is matched by families moving toward growth and opportunity. management. In our role as community bankers, we are acutely aware As you read ahead to Steve Scurlock’s legislative overview of this ebb and flow. We see it on our Main Streets. We see it in this issue (“The Lege is Back in Town”), the Texas Legislature in our local school capacity of both overflow and underutilized convenes this month. Among the many issues confronting our campuses, in our local taxing authorities, with graduating high elected leaders is the continued focus on growing our economy school students making individual decisions to either stay in our with good paying jobs, meeting our obligations with responsible communities or move away. taxes, addressing the shortages of water, and preparing our grow- Community banking, local economies, local education with ing young population for life with a good education.