November 9, 2009 www.bankersdigest.com Volume 135, No. 19 Riley Named Wells Fargo’s Community Banking Gutierrez Tapped Risk Regional President for New Mexico Region Management Officer Lisa Riley, a 24-year Wells Fargo bank- Since 2004, Riley has managed com- Fidelity Homestead Savings Bank, er, has been named community bank- munity banking for Wells Fargo’s Met- New Orleans, LA, has appointed Kate ing regional presi- ro Phoenix West region. She also has Gutierrez senior dent for NM. She been responsible for the integration vice president and will have responsi- of AZ’s Wachovia offices. Earlier, Riley risk management bility for sales, ser- was community banking president for officer. She will vice, operations, Wells Fargo in Scottsdale. She also serve as an advisor financial, and - hu has managed Wells Fargo’s Premier to senior manage- man resources Banking, Small Business Banking, and ment in the areas management in Membership Banking programs in AZ of risk, finance, Wells Fargo’s NM and held positions as Phoenix Com- and accounting, region, which has Riley munity Banking president and and will work very Gutierrez 1,200 team mem- human resources director. closely with the bers, $5.26 billion in deposits, and Riley earned a BBA degree from the compliance and audit departments. 97 locations in 53 communities. She University of Arizona. She will serve at the bank’s corporate succeeds Greg Winegardner, who was She serves on the boards of direc- headquarters at 201 St. Charles Ave. named Wells Fargo’s regional presi- tors of the Greater Phoenix Urban She has more than 20 years bank- dent for Utah in July. She is based in League and the Arizona Educational ing experience with concentrations in Albuquerque. Foundation Q commercial and consumer collections, consumer compliance, underwriting, Oklahoma Banker “Kell” Kelly Named ABA and retail banking. She joins Fidelity Vice Chairman at Annual Convention from First Tennessee Bank where she was a credit consultant in the loan re- Albert C. “Kell” Kelly, president/CEO, Oklahoma School of Law, entered the hab and recovery department. SpiritBank, Bristow, OK, has been banking business full time in the early Gutierrez earned a business admin- elected to serve as vice chairman of 1990’s when he joined family-owned istration and a master of management the American American Na- degrees from Aquinas College, Grand Bankers As- tional Bank of Rapids, MI Q sociation for Bristow. Under 2009-2010 dur- his direction, Please route this issue: ing the associ- the bank was ation’s annual rebranded Spir- convention in itBank in the Chicago held late 1990’s and In This Issue... in October. He has expanded joins the team into the Okla- lead by Arthur homa City and Warranty Rights for Payor Banks C. Johnson, Tulsa markets. with Remotely Created Checks a MI banker, (L to R) Stephen P. Wilson, Arthur C. Johnson, Kelly has been Feature...... 3 2009-2010 ABA Albert C. “Kell” Kelly, and William R. White active in the chairman; Stephen P. Wilson, an OH Oklahoma Bankers Association serv- Charter Activity...... 9 banker, chairman-elect; and William ing as OBA chairman and on the gov- R. White, a MI banker, treasurer. ernment relations committee, among Classified...... 10 Kelly, a graduate of the University of other association duties Q p e o p l e NexBank SVP Rossi Kelly Appointed to Lead Mutual of Receives CFO Honor Omaha’s TX Residential Mortgage Sales Mike Rossi, senior vice president and Mutual of Omaha Bank has launched a mortgage banking, most recently serv- CFO for NexBank, SSB, Dallas, was se- mortgage lending operation in TX and ing as president and broker/owner of lected as one of 32 appointed John V. Kelly III as TX re- Advantage Residential Mortgage Com- CFOs from compa- gion manager of residential mortgage pany in Irving. Prior to that, he served nies in North TX sales, the company announced. Based as senior loan officer and production honored for out- in Dallas, Kelly will lead the bank’s manager for North American Mortgage standing perfor- mortgage team in offering a compre- Company also based in Irving. mance in the 2009 hensive portfolio of home financing Kelly earned a BBA degree in finance Dallas Business Jour- solutions statewide, including con- and real estate from The University of nal CFO of the Year ventional, FHA and VA loans, jumbo Texas at Arlington. He has served on the Awards. loans, bridge notes, second liens, and JP Morgan Chase Broker Advisory Coun- Rossi, who has Rossi construction loans, including a one- cil and the JP Morgan Chase Home Eq- over 15 years of time close product. uity Broker Advisory Council Q financial experience, has served with “As we begin a significant expan- NexBank since 2005, leading not only the financial reporting of NexBank, but sion in Texas, our comprehensive port- CORRECTION other bank departments including ac- folio of mortgage solutions will serve F. Scott Dueser, chairman and presi- counting, marketing and advertising, as a major driver of our growth,” said dent/CEO of First Financial Bank- legal, and information technology. Robert Strong, president of Mutual of shares Inc., Abilene, was named the “Mike is the only CFO that Nex- Omaha Bank’s Texas market. Kelly has 2009 Abilene Citizen of the Year by the Bank has had,” said Davis Deadman, more than 25 years of experience in Abilene Chamber of Commerce. His NexBank’s president and CEO. “ Mike last name was mispelled in the Octo- NEED A PRINT OR ON-LINE provides wisdom and guidance to ber 26, 2009, issue story headline and SUBSCRIPTION? CHANGE AN every component of NexBank that is story as Duesser ADDRESS OR NAME? Q essential for growth and retention of Visit www.bankersdigest.com profits,” he said. Slay Cashes Notes NexBank is headquartered in the NexBank Building, Galleria II Tower. SEND NEWS OF YOUR BANK? Originally founded in 1922, the bank email Quick Closing was purchased in 2004 by a group of [email protected] Dallas-based investors Q 214/221-4544 Fax 214/221-4546 1-800-856-9400 ankers igest® B Established D 1942 A Weekly Bank News Magazine (USPS 041180) Published every Monday at Dallas, Texas McCuistion & Associates, Inc. Copyright 2009 Bankers Digest® 305 W. Woodard, Suite 210 BONNIE JAMISON BLACKMAN, Publisher/Editor Denison, TX 75020 R. GILBERT BLACKMAN JR., Managing Editor [email protected] 9550 Forest Lane, Suite 125 Dallas, Texas 75243-5928 (903)464-9555 Phone 214/221-4544 Fax 214/221-4546 Dennis McCuistion E-mail: [email protected] website: www.bankersdigest.com Works with Boards of Directors to help them achieve competitive advantage Print subscription rate: & One year $37.00, single copy $1.00 Facilitates strategic planning and other corporate meetings Opinions expressed by columnists and writ- ers of bylined articles are not necessarily those of Bankers Digest. Editorial guidelines I am indebted to Dennis. He delivered beyond any hope or expectation may be obtained upon request. Articles and for our board. photos may be submitted to above address or sent via e-mail. Michael Menzies, CEO, Easton (MD) Bank & Trust, Chairman ICBA 2009 Periodical postage paid at Dallas, Texas POSTMASTER: Send address changes to Thank you for facilitating an outstanding strategic planning session for the Bankers Digest®, 9550 Forest Lane, Suite 125, directors and management of Lincoln Bank. Lincoln Federal Saving Bank Dallas, Texas 75243-5928.

Page  BANKERS DIGEST November 9, 2009 f e a t u r e RISK MANAGEMENT concerns involving an increased risk bank, any subsequent collecting bank, of fraud with remotely created checks and the paying bank that the person Warranty Rights for Payor and the need for a uniform rule to ap- on whose account the remotely creat- Bank with Remotely ply throughout the country, the Feder- ed check is drawn authorized the issu- al Reserve sought to address the issue ance of the check in the amount stated Created Checks by amending Regulation CC. on the check and to the payee stated By The Federal Reserve issued a fi- on the check. (12 CFR 229.34(d)(1)). David Boneno nal rule, effective July 1, 2006, which The final rule applies to remotely General Counsel amended Regulation CC to create created checks drawn on both con- Louisiana Bankers Association transfer and presentment warranties sumer and non-consumer accounts. www.lba.org under which a bank that transfers or The warranties apply only to banks A banker re- presents a remotely created check and and ultimately shifts liability for cently called receives a settlement or other con- losses attributable to an unauthor- BD me inquir- sideration, warrants to the transferee (continued on Page 9) ing about the bank’s rights FEATURE in a situation where the customer received his bank statement and notified the bank that there was a check that had been paid that was un- authorized. The check did not contain a traditional signature; instead it con- tained language that said the check had been authorized by the drawer and was a remotely created check. Sometimes, remotely created checks will contain the printed or typed name of the drawer on the signature line. Remotely created checks are increas- ingly being used for payment for tele- phone and internet based purchases or payments. Regulation CC was amended by the Federal Reserve Board in 2006 to pro- vide a definition for “remotely created check.” It means a check that is not created by the paying bank and that does not bear a signature applied, or purported to be applied, by the person on whose account the check is drawn. 12 CFR 229.2(fff). Typically, a customer who receives a statement containing a remotely created check that was not authorized, may demand that his deposit account be recredited by his or her bank on the basis that the check is not properly payable. (UCC 4-401). In a tradition- al check transaction, once the payor bank recredits the customer’s account, the payor bank looks to shift the loss to the upstream bank that presented the instrument for payment, but this is difficult to accomplish since the presenting bank and any transferring banks (collecting banks) make no war- ranty to the paying bank that the check is authorized. Recognizing the unique

November 9, 2009 BANKERS DIGEST Page  p e o p l e TEXAS ARKANSAS REGULATORS Betsill Named AVP, Payment Centennial Bank in Fed Chooses Parkinson as Services at Dallas Fed Cabot Taps Carter EVP Head of Bank Supervision The Federal Reserve Bank of Dallas has Davy Carter has been hired by Centen- The Federal Reserve in late October named Joe Betsill assistant vice presi- nial Bank in Cabot as executive vice named Patrick Parkinson, a longtime dent with continu- president, general counsel and chief staff economist, to head bank supervi- ing responsibility lending officer, for its east region which sion and regulation, effective immedi- for the payments includes Beebe, Cabot, Heber Springs, ately. The appointment was reported services depart- Jacksonville, Mountain View, Searcy, and in an article in The Wall Street Journal by ment. Ward. The announcement was made by Sudeep Reddy and Damian Paletta. Previously, Bet- Tracy French, regional president. Parkinson, who holds a doctorate sill held positions Carter has over 13 years of com- in economics at the University of Wis- as an operations bined financial and legal experience. consin, has served as a top advisor manager and as His new duties include oversight of to Fed chairman Ben Bernanke and a bank examiner. Betsill bank lending and operations, and ap- his predecessor Alan Greenspan. Re- Before his employ- pointment to the regional board of di- cently, he took a leave from the Fed ment at the Dallas Fed, he served with rectors and general legal counsel. to serve as an architect of the Obama two Austin-area banks. Carter is the state representative Betsill holds a BBA degree from for District 48 where he sits on both Administration’s proposed overhaul The University of Texas at Arlington. the House Judiciary and State Agen- of financial regulation. He retired from the U.S. Coast Guard cies Committee and is chair of the Parkinson joined the Fed in 1980 Reserve in 2004 as a senior chief boat- Constitutional Issues Subcommittee. and served in the Division of Bank- swain’s mate. He was recalled to ac- He is a graduate of Arkansas State ing Supervision and Regulation in the tive duty for over 18 months during University in Jonesboro with a bache- 1980s. But, he has served most of his his reserve career: Operations Desert lor’s degree in corporate finance. He Fed career in the Division of Research Shield (1990), Noble Eagle (2001), and also holds a JD with honors from the and Statistics. He most recently served as the division’s deputy direc- Enduring Freedom (2003) Q University of Arkansas School of Law. He is an alumnus of the Graduate tor, working on financial regulation is- School of Banking at LSU Q sues throughout the Fed system. As head of bank supervision, Par- TEXAS kinson will work closely with the Fed’s newest governor, Daniel T. Tarullo, FC Holdings Names who was an advisor to President Obama during his election campaign Black CEO in Shakeup and who heads the committee of gov- , CEO of FC Holdings Nigel Harrison ernors overseeing bank supervision Q Inc., the parent company of First Com- munity Bank, N.A., Sugar Land, has stepped down as FC Holdings’ presi- OKLAHOMA dent/CEO but remains on the board of directors. Andy Black, who was hired Hendricks Named VP/CLO, by Harrison in April 2009 as CEO of American HB Sand Springs First Community Bank, has now as- sumed the title of CEO of the parent Jonathan Hendricks has been named company. vice president of American Heritgage According to an article by Greg Bank’s north branch on Adams Rd. in Barr, Business Journal writer, the Sand Springs. He will primarily serve changes were made by NY private eq- as a commerical loan officer. uity firm JLL Partners LLC, the parent Hendricks has eight years of banking company’s majority owner. experience. He most recently served Eight of the bank’s board members as a vice president and commercial also resigned, and JLL Partners ap- loan portfolio manager with Spirit- pointed three directors to fill certain Bank in Tulsa. vacancies. Mark Clements is now the American Heritage Bank is based in bank’s chairman of the board. Sapulpa and was established in 1905, First Community lost money in 2007 making the bank one of the oldest in- and 2008 and reported a $13 million dependently-owned banks in the Tulsa market loss through the first half of 2009Q Q Page  BANKERS DIGEST November 9, 2009 p e o p l e LOUISIANA Ferrer and Keay Are IBERIABANK Taps King President in AL market EVPs, Resource Bank IBERIABANK, Lafayette, has named middle market C&I banking in North Resource Bank in Covington, has an- Gregory A. King executive vice presi- Central AL for Regions Bank. nounced recent promotions. Doug dent and president King earned a BS degree in ac- Ferrer has been promoted to execu- of the Birming- counting from Birmingham-Southern tive vice president and chief credit of- ham, AL, market. College and an MBA degree from The ficer. Curt Keay has been promoted King began his University of Alabama at Birming- to executive vice president and chief banking career ham. administrative officer. with Highland Active in the Birmingham commu- Ferrer previously served as senior Bank in Birming- nity, King currently serves on the ex- lending officer for the $350 communi- ham. He joined ecutive committee and as treasurer ty bank. He has served in the banking AmSouth Bank in for Pathways. He previously served on industry since 1985. In his 23 years as 1997 (later bought the Committee of 25 for Girls Inc. of King a banker, he served with five financial by Regions Bank) Central Alabama, is a member of the institutions. He holds a BS degree in where he served Builders Society of the United Way of finance from Lousiana Tech University in a number of roles. He worked in Central Alabama, and an active sup- and an MBA degree from Southeast- the Metropolitan commercial bank- porter of the Greater Alabama Council ern Louisiana University. ing group as an assistant relationship Boy Scouts of America. Keay previously served as senior manager and then as vice president IBERIABANK entered the AL market vice president responsible for human and commercial banking relationship in February 2009 when it named Russ resources and marketing. manager. He moved to Chattanooga, Ford Jr. executive vice president and The bank has also announced Phil TN, in 2005 to serve as senior vice president of the Mobile market. The Jackson has been named security offi- president and sales manager for C&I bank set up an LPO with plans to open cer and Jennifer Young assistant vice banking in SE TN and North GA. He branches later. In August it took over president and branch manager of the most recently served as senior vice CapitalSouth Bank in Birmingham in Covington office at 5100 Village Walk, president and market manager for an FDIC-assisted transaction Q Ste. 102. Resource Bank, founded in 1998, re- ports over $381 million in assets and ap- proximately $300 million in deposits Q Watch List Viola and Wagner Join Fidelity Homestead Savings Special Mention Fidelity Homestead Savings Bank, New Orleans, has announced that Cheri Viola and Sheila Wagner have joined the Fidelity team. Substandard Viola is a new senior personal bank- er at the Hammond branch at 500 CM Fagan Dr. She most recently worked Doubtful as a business banker with Whitney National Bank in Ponchatoula. Wagner is the new operations man- Loss ager in Slidell at 1901 Gause Blvd. She most recently served as a personal banker with IBERIABANK Q BoB CHidgey Metairie Bank HR Director However they describe them, [email protected] Mitzi Still Dies at Age 50 toll Free: 1-877-251-1528 Guaranty Savings Bank, Metairie, has lost its human resources director Mit- Briar Capital zi Still who died on October 12. She was a resident of Westwago at the will buy secured commercial time of her death. and secured real estate loans. www.briarcapital.com The 50-year old banker held the title of vice president Q briar capital bankers digest.indd 1 8/5/2009 9:39:53 AM November 9, 2009 BANKERS DIGEST Page  N E W S W A T C H ARKANSAS LOUISIANA TEXAS Simmons First Announces Guaranty Savings Bank More Texas Banks Offering Public Offering of Stock Opens Branch in Harahan Financial Literacy Training Simmons First National Corporation, Guaranty Savings Bank, Metairie, has The number of TX banks offering fi- Pine Bluff, announced on November 3 announced the opening of a full-ser- nancial education increased in 2008, that it has commenced an underwrit- vice branch in the Elmwood Business but there is plenty of room for im- ten public offering of approximately Park at 5700 Citrus Blvd., Ste. K, in provement, according to a recently $65 million of its common stock. The Harahan. The location will serve the released survey. underwriters will have a 30-day option Harahan and River Ridge markets on The survey -- a five-year joint effort by to purchase up to an additional 15% of the East Bank. the Texas Department of Banking, Tex- the offered amount of common stock The leadership team at the Elm- as Bankers Foundation, and the Edu- cation Foundation of the Independent from Simmons First, to cover over-al- wood location includes vice president Bankers Association of Texas (IBAT) lotments, if any. Dan Ross, a New Orleans banker with -- revealed that 56% of the 220 banks According to a news release, the over 30 years of private banking ex- perience, and branch manager Geoff responding have an active financial ed- shares will be issued pursuant to a ucation outreach in their communities. Artigues, who has eight years of retail prospectus supplement filed as part This is an increase of 9% over 2007, the banking experience. The branch has a of a shelf-registration previously filed initial year of the project. staff of five bankers. with the SEC on September 9, 2009. Ninety-two percent of the largest Guaranty operates six banking of- Simmons First intends to use the banks surveyed offer education ser- fices and a mortgage production of- net proceeds from this offering for vices, compared to 37% of the small- fice with locations in New Orleans, general corporate purposes and pos- est banks. However, among those that Metairie, Mandeville, Ponchatoula, sible future acquisitions of other fi- do not participate in financial literacy Harvey, and Elmwood. The bank was nancial services businesses, including programs, a majority are interested in established in 1937. Its holding com- possible FDIC-assisted acquisitions. becoming active participants. pany, GS Financial Corp., trades on Simmons First is a multi-bank fi- When asked if there was an interest the NASDAQ stock exchange nancial holding company. It conducts Q in learning more about financial lit- eracy, 80% wanted a financial literacy its business through eight community in its net income ($7.7 million) for the starter kit, and 60% expressed an in- banks operating 88 offices, of which third quarter over the same period in terest in attending a train-the-trainer 84 are financial centers, located in 47 2008. The company said while loan session for Money Smart, Building communities in AR. The company’s demand remains soft its banks are Wealth, and Junior Achievement. common stock trades on the NASDAQ continuing to provide loans to its cus- The survey also showed that 25% Global Select Market under the sym- tomers. Simmons reported a $2 mil- of the banks offer financial education bol “SFNC.” lion gain in the third quarter when it in Spanish and 47% offer the literacy Simmons reported a 18% increase sold some of its student loans Q training to noncustomers, mainly through health and financial fairs. The results revealed an untapped potential for banks to provide finan- cial education to senior citizens. Six- ty-seven percent of participants target high school students, 56% elementary students, and 48% middle schools. Only 15%, down from 19% in 2007, are aimed at seniors. Four main strategies were recom- mended from the findings: • Increase the number of financial eduction trainings for small and mid- sized banks. • Prioritize financial education with- in bank leadership • Include financial education as an integral part of engaging customers in using new products and services. • Facilitate collaboration between banks and nonbank financial educa- tion providers to reach community member beyond the banks’ customer base Q Page  BANKERS DIGEST November 9, 2009 N E W S W A T C H FAILED BANKS U.S. Bank Acquires FBOP’s Corporation’s Banking Subsidiaries, Enters TX Market and Expands AZ Market Presence; 114 YTD Failures U.S. Bancorp, Minneapolis, MN, an- under their current names and will be similar problems related to poor asset nounced on October 30 its lead bank, re-branded as U. S. Bank branches in quality and insufficient liquidity. Loss- U.S. Bank NA, Minneapolis, MN, has the near future. es resulting from the write-down of acquired the banking subsidiaries U. S. Bancorp, with $265 billion in Fannie Mae and preferred of FBOP Corporation of Oak Park, IL, assets as of September 30, 2009, is stock and other investments depleted from the FDIC. The nine banking sub- the parent company of U.S. Bank, the each bank’s capital. These deficiencies sidiaries were closed on October 30 by sixth largest commercial bank in the were compounded by deterioration in federal and state bank regulators, and nation. Prior to this transaction, U.S. the commercial loan portfolios and an the FDIC was appointed receiver. Bank had 570 branches in CA, 75 in over-reliance on brokered deposits Q The nine banks that are part of this AZ, and 127 in IL. transaction include: BankUSA, N.A., Four banks were closed in the Bank- Phoenix, AZ; National Bank, ers Digest coverage area of AZ and TX. , CA; Citizens National BankUSA, N.A., Phoenix, AZ, was Bank, Teague, TX; Madisonville State closed by the OCC. The bank served Bank, Madisonville, TX; North Hous- the Phoenix, Mesa, and Scottsdale ton Bank, Houston, TX; Pacific Na- markets. tional Bank, , CA; Park Citizens National Bank, Teague, National Bank, Chicago, IL; TX, was closed by the OCC. The bank National Bank, CA; and Community served the Freestone County market Bank of Lemont, IL. in east Central TX with one location. The FDIC entered in a P&A trans- Madisonville State Bank, Madison- action with U.S. Bank to acquire ap- ville, TX, North Houston Bank, Hous- proximately $18.4 billion in assets and ton, TX, were closed by the Texas De- assume approximately $18.3 billion in patment of Banking. As of September liabilities, including $15.4 billion of 30, 2009, North Houston Bank had both insured and uninsured deposits, deposits of approximately $308 mil- of the nine failed banks. In addition, lion, including $68 million in brokered substantially all loans (approximate- deposits. At the same date, Madison- ly $14.4 billion) are subject to a loss ville State Bank had deposits totaling sharing agreement with the FDIC. approximately $225 million, includ- The transaction adds scale to U.S. ing $70 million in brokered deposits. Bank’s footprint in CA, IL, and AZ, and North Houston Bank and Madison- provides an entry into the TX retail mar- ville State Bank were the second and ket. The nine banks had 153 offices. third state-chartered banks in TX to According to a U.S. Bancorp press re- fail in 2009. lease, the nine banks involved in this Banking commissioner Charles transaction will continue to operate Cooper stated the banks experienced

IBAT Celebrates First 35 Years at 2009 Convention The Independent Bankers Association month in San Antonio. of Texas drew its first breath in March The book was written by Terry Young, 1974 in downtown Dallas when 80 a career journalist and media consultant. independent bankers went public in His relationship with IBAT dates back to support of the new organization. the “opt-out” campaign in 1995. The story of the formation and the The 175-page book chronicles the first 35 years of the history of IBAT history of IBAT using an unique IBAT have been told in a book, Your Commu- Timeline from 1974 to the present. The nity Is Our Community: The First 35 Years timeline contains the names of IBAT of the Independent Bankers Association of leadership, significant IBAT develop- Texas. The book was underwritten by ments, and important laws and regula- contributions to the IBAT Education tions in the banking industry. The book Foundation and distributed at IBAT’s contains numerous photos and images 35th annual convention held last from IBAT’s annual meetings Q November 9, 2009 BANKERS DIGEST Page  r e g u l a t o r s ICBA Recommends FDIC Shorten Prepayment Period, Other Tweaks to Notice of Proposed Rulemaking C h a r t e r The Independent Community Bankers with the larger banks paying a share of of America (ICBA) said that it generally the assessments that is proportional a c t i v i t y supports the FDIC’s prepaid assess- to their size, rather than their share of ment proposal as a way to address li- domestic deposits,” said Thomas. To Arizona quidity needs of the Deposit Insurance that end, ICBA strongly supports the BRANCHES Fund (DIF), but the FDIC should short- Bank Accountability and Risk Assess- The OFFICE OF THE COMPTROL- en the prepayment period from three ment Act of 2009 (H.R. 2897), which LER OF THE CURRENCY has received years to two years and collect a third would broaden the assessment base an application by The Harris Bank NA, year of prepaid assessments at the end for FDIC deposit insurance premiums Scottsdale, to relocate a branch from of 2010 if the DIF’s liquidity needs have and create a separate risk-based as- 2375 E. Camelback Rd. to 2555 E. not been met. ICBA’s comments were sessment for too-big-to-fail banks that Camelback Rd., Ste. 160, Phoenix. submitted to the FDIC in a letter. Visit represent a systemic threat to our na- Arkansas www.icba.org to read the letter. tion’s financial system. MERGERS AND ACQUISITIONS “The advantage of the two-year pre- ICBA also recommended that the The FEDERAL RESERVE BANK OF payment, with the option to require FDIC use a significantly lower estimat- ST. LOUIS has filed an application by an additional year, is that it gives the ed annual deposit growth rate when First National Security Company, Hot FDIC an opportunity to reevaluate the computing the prepaid assessment for Springs, to acquire 100% of Heritage industry and the economy at the end banks located in parts of the country Capital Corporation, Jonesboro, and of 2010 and make another determina- that historically have had slower de- thereby indirectly acquire Heritage tion of future DIF losses and liquid- posit growth rates. ICBA noted that Bank, Jonesboro. ity needs,” said Karen Thomas, ICBA many community banks, particularly Louisiana executive vice president for govern- those located in small towns and ru- BRANCHES ment relations. “A two-year prepay- ral areas, have not experienced a 5% The OCC has approved applica- ment would also alleviate some of the annual deposit growth in recent years, tions by Whitney National Bank, New liquidity pressure associated with a especially in a low-interest-rate envi- Orleans, for branches: 1801 Country three-year prepayment and mitigate ronment. In addition, the FDIC should Club Rd., Lake Charles, and 2202 N. the impact on industry earnings, capi- establish an earlier refund method for Westshore Blvd., Tampa, FL tal and lending activities.” banks that have not exhausted their Oklahoma In its comment letter, ICBA strongly prepaid assessment by Dec. 31, 2012, BRANCHES recommended that the assessment and annual refunds should be made The OCC has approved an appli- base used for the prepayment calcu- soon after the end of any year when a cation by The First National Bank in lation be the same assessment base bank has significantly overpaid its pre- Marlow for a branch at 228 W. Oak that was used for the second-quarter paid assessment. Main, Comanche. special assessment—an institution’s ICBA commended the FDIC for con- Texas total assets minus its Tier 1 capital. cluding that the prepaid assessment CHARTERS “A broader assessment base...would should qualify for a zero risk weight The OCC has approved a thrift to result in a fairer assessment system, under the risk-based capital require- national converstion application by ments and for establishing a proce- Wells Fargo Bank South, N.A., Hous- Cross Plains, to relocate its home office dure for banks to apply for an exemp- ton, involving Wachovia Bank, fsb. to an existing branch location at 1208 S. tion from the prepaid assessment. BRANCHES Main St., Boerne, with the current home Comments for the FDIC’s Notice of The OCC has received an application office at 1012 NW Main St., Cross Plains, Proposed Rulemaking were due by Oc- by North Texas Bank, N.A., Decatur, for a becoming a branch location Q tober 28 Q branch at 211B S. Oak St., Roanoke.

The OCC has approved an appli-

cation by Texas Citizens Bank, N.A.,

Pearland, for a branch at 24701 SW Freeway, Ste. 700, Rosenberg. The TEXAS DEPARTMENT OF BANKING has approved an applica- tion by Southside Bank, Tyler, for a branch at 3815 SH 64 W., Tyler. The TXDB has received an applica- tion by First State Bank, Gainesville, for a branch at 2430 W. University Dr., Denton. The TXDB has received a branch flip application by Texas Heritage Bank,

Page  BANKERS DIGEST November 9, 2009 N E W S W A T C H ABA Expresses Concerns About Iowa CU League Becoming a BHC The American Bankers Association has the holding company to conduct its it union would undercut the competi- serious concerns about the applica- operations at a significantly lower cost tiveness of banks, to the detriment of tion of the Iowa Credit Union League and pass on the benefits to the tax-ex- consumers and the broader economy. and its wholly-owned subsidiary -- Af- empt credit unions on whose behalf it We believe these likely consequences filiates Management Co. -- to become advocates,” the ABA said. The associa- are inconsistent with the statutory re- a bank holding company by acquiring tion also pointed out that a national quirement that an applicant meet the CrediCard National Bank in Tucson, bank charter affords a broader lending convenience and needs of the com- AZ, the ABA said recently in a com- scope and investment opportunities munity to be served.” ment letter to the Chicago Federal Re- than a corporate credit union charter. The comment letter was reported in serve Bank. “To allow a [tax-exempt] “Allowing credit unions to benefit from Keith Legget’s Credit Union Watch: Keep- credit union trade association … to the broader activities of the national ing an Eye on the Credit Union Scene at become a bank holding company and bankTBIA subsidiaryAd-Bankers Digest:Layoutof the corporate 1 1/7/2009 cred- 9:24 http://creditunionwatch.blogspot.comAM Page 1 acquire a national bank could create Q an unlevel playing field by allowing Feature (continued from Page 3) ized remotely created check to the de- positary bank. (See Reg. CC, Section 229.34(d)(1)). It is important that any claim for warranty is asserted promptly because there is a defense available to the warranting bank. Section 229.34(d)(2) provides that if a paying bank asserts a claim for breach of warranty under paragraph (d)(1) of this section (for remotely created checks), the warrant- ing bank may defend by proving that the customer of the paying bank is precluded under UCC 4-406, as appli- cable, from asserting against the pay- ing bank the unauthorized issuance of the check. (See Reg. CC, Section 229.34(d)(2)). Under the amended Reg CC pro- visions, a bank that pays a remotely created check and is timely notified in accordance with 4-406 requirements, will be able to seek recovery from the collecting bank or bank of first deposit under a breach of warranty claim. There is interplay between state UCC laws and federal regs relative to remotely created checks. While each state has adopted into its law a ver- sion of the U.C.C., Reg CC is a federal regulation that applies nationwide. Commentary to the Reg. CC revisions points out that Section 608(b) of the Expedited Funds Availability Act pro- vides that Board rules prescribed un- der that Act shall supersede any pro- vision of state law, including the UCC as in effect in such state, that is incon- sistent with the Board rules. It further provides, that to the extent that state law is inconsistent with the Board’s rules on remotely created checks, the Board’s rules would supersede such state law Q November 9, 2009 BANKERS DIGEST Page  C L A S S I F I E D as. Good opportunity to be groomed B a n k e r s D i g e s t BANK STOCK FOR SALE to become President for candidate HOW TO CONTACT US with good experience. Sharon Emil- BANK STOCK: 24% of $19MM country iano, Babich & Associates, Sharon@ Fax to 214/221-4546. Mail responses to bank. 100% a possibility? Highly prof- babich. com, 214/823-9999, #306, Box Number c/o Bankers Digest, 9550 itable, excellent rating, only finan- www.babich.com. (see banking). Forest Ln., Ste. 125, Dallas, TX 75243- cial institution in town. Ray Mitchell, P.O. box 789, Bartlett, Texas 76511. LENDER OPPORTUNITIES in TEX- 5928. Phone: 214/221-4544. Email: [email protected] cell: 954/240- AS, NEW MEXICO, and OKLAHOMA. [email protected]. 2625. Strong business development and credit skills needed. Call or send resume to Harvey Urban, Babich Advertising rates are $35.00 for the first Services & Associates, [email protected] 25 words; $10.00 for each additional 10 INTERNAL AUDIT OUTSOURCING: 214-823-9999, #304. words per insertion. Ads which use a Bankers Time to improve or develop your in- Digest box number for forwarding responses ternal audit function? Our firm can ARKANSAS! I help great Bankers will be charged $5.00 additional per inser- help!! We provide administrative find great job opportunities. I work tion for postage and handling. Ads run on guidance or training to y