Lisa Riley, a 24-year Wells Fargo bank-er, has been named community bank-ing regional presi-dent for NM. She will have responsi-bility for sales, ser-vice, operations, financial, and hu-man resources management in Wells Fargo’s NM region, which has 1,200 team mem-bers, $5.26 billion in deposits, and 97 locations in 53 communities. She succeeds Greg Winegardner, who was named Wells Fargo’s regional presi-dent for Utah in July. She is based in Albuquerque.

Volume 135, No. 19November 9, 2009

In This Issue...

Warranty Rights for Payor Banks with Remotely Created Checks Feature..............................................3

Charter Activity..............................9

Classified.......................................10

Please route this issue:

www.bankersdigest.com

Riley

Riley Named Wells Fargo’s Community Banking Regional President for New Mexico Region

Oklahoma Banker “Kell” Kelly Named ABA Vice Chairman at Chicago Annual Convention

Gutierrez Tapped Risk Management OfficerFidelity Homestead Savings Bank, New Orleans, LA, has appointed Kate Gutierrez senior vice president and risk management officer. She will serve as an advisor to senior manage-ment in the areas of risk, finance, and accounting, and will work very closely with the compliance and audit departments. She will serve at the bank’s corporate headquarters at 201 St. Charles Ave. She has more than 20 years bank-ing experience with concentrations in commercial and consumer collections, consumer compliance, underwriting, and retail banking. She joins Fidelity from First Tennessee Bank where she was a credit consultant in the loan re-hab and recovery department. Gutierrez earned a business admin-istration and a master of management degrees from Aquinas College, Grand Rapids, MI Q

Gutierrez

Since 2004, Riley has managed com-munity banking for Wells Fargo’s Met-ro Phoenix West region. She also has been responsible for the integration of AZ’s Wachovia offices. Earlier, Riley was community banking president for Wells Fargo in Scottsdale. She also has managed Wells Fargo’s Premier Banking, Small Business Banking, and Membership Banking programs in AZ and held positions as Phoenix Com-munity Banking president and Arizona human resources director. Riley earned a BBA degree from the University of Arizona. She serves on the boards of direc-tors of the Greater Phoenix Urban League and the Arizona Educational Foundation Q

Albert C. “Kell” Kelly, president/CEO, SpiritBank, Bristow, OK, has been elected to serve as vice chairman of the American Bankers As-sociation for 2009-2010 dur-ing the associ-ation’s annual convention in Chicago held in October. He joins the team lead by Arthur C. Johnson, a MI banker, 2009-2010 ABA chairman; Stephen P. Wilson, an OH banker, chairman-elect; and William R. White, a MI banker, treasurer. Kelly, a graduate of the University of

Oklahoma School of Law, entered the banking business full time in the early 1990’s when he joined family-owned

American Na-tional Bank of Bristow. Under his direction, the bank was rebranded Spir-itBank in the late 1990’s and has expanded into the Okla-homa City and Tulsa markets. Kelly has been active in the

Oklahoma Bankers Association serv-ing as OBA chairman and on the gov-ernment relations committee, among other association duties Q

(L to R) Stephen P. Wilson, Arthur C. Johnson, Albert C. “Kell” Kelly, and William R. White

Page 2 BANKERS DIGEST November 9, 2009

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p e o p l e TeXAS

Mutual of Omaha Bank has launched a mortgage lending operation in TX and appointed John V. Kelly III as TX re-gion manager of residential mortgage sales, the company announced. Based in Dallas, Kelly will lead the bank’s mortgage team in offering a compre-hensive portfolio of home financing solutions statewide, including con-ventional, FHA and VA loans, jumbo loans, bridge notes, second liens, and construction loans, including a one-time close product. “As we begin a significant expan-sion in Texas, our comprehensive port-folio of mortgage solutions will serve as a major driver of our growth,” said Robert Strong, president of Mutual of Omaha Bank’s Texas market. Kelly has more than 25 years of experience in

Mike Rossi, senior vice president and CFO for NexBank, SSB, Dallas, was se-lected as one of 32 CFOs from compa-nies in North TX honored for out-standing perfor-mance in the 2009 Dallas Business Jour-nal CFO of the Year Awards. Rossi, who has over 15 years of financial experience, has served with NexBank since 2005, leading not only the financial reporting of NexBank, but other bank departments including ac-counting, marketing and advertising, legal, and information technology. “Mike is the only CFO that Nex-Bank has had,” said Davis Deadman, NexBank’s president and CEO. “ Mike provides wisdom and guidance to every component of NexBank that is essential for growth and retention of profits,” he said. NexBank is headquartered in the NexBank Building, Galleria II Tower. Originally founded in 1922, the bank was purchased in 2004 by a group of Dallas-based investors Q

Rossi

mortgage banking, most recently serv-ing as president and broker/owner of Advantage Residential Mortgage Com-pany in Irving. Prior to that, he served as senior loan officer and production manager for North American Mortgage Company also based in Irving. Kelly earned a BBA degree in finance and real estate from The University of Texas at Arlington. He has served on the JP Morgan Chase Broker Advisory Coun-cil and the JP Morgan Chase Home Eq-uity Broker Advisory Council Q

NexBank SVP RossiReceives CFO Honor

Kelly Appointed to Lead Mutual of Omaha’s TX Residential Mortgage Sales

CORRECTIONF. Scott Dueser, chairman and presi-dent/CEO of First Financial Bank-shares Inc., Abilene, was named the 2009 Abilene Citizen of the Year by the Abilene Chamber of Commerce. His last name was mispelled in the Octo-ber 26, 2009, issue story headline and story as Duesser Q

McCuistion & Associates, Inc. 305 W. Woodard, Suite 210 Denison, TX 75020 mccuistion@mccuistion.com (903)464-9555

I am indebted to Dennis. He delivered beyond any hope or expectation for our board.Michael Menzies, CEO, Easton (MD) Bank & Trust, Chairman ICBA 2009

Thank you for facilitating an outstanding strategic planning session for the directors and management of Lincoln Bank. Lincoln Federal Saving Bank

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A banker re-cently called me inquir-ing about the bank’s rights 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

f e A T u r e

ByDavid Boneno

General CounselLouisiana Bankers Association

www.lba.org

(continued on Page 9)

RISK MANAGEMENTWarranty Rights for Payor

Bank with Remotely Created Checks

B D

FEATURE

concerns involving an increased risk of fraud with remotely created checks and the need for a uniform rule to ap-ply throughout the country, the Feder-al Reserve sought to address the issue by amending Regulation CC. The Federal Reserve issued a fi-nal rule, effective July 1, 2006, which amended Regulation CC to create transfer and presentment warranties under which a bank that transfers or presents a remotely created check and receives a settlement or other con-sideration, warrants to the transferee

bank, any subsequent collecting bank, and the paying bank that the person on whose account the remotely creat-ed check is drawn authorized the issu-ance of the check in the amount stated on the check and to the payee stated on the check. (12 CFR 229.34(d)(1)). The final rule applies to remotely created checks drawn on both con-sumer and non-consumer accounts. The warranties apply only to banks and ultimately shifts liability for losses attributable to an unauthor-

Page � BANKERS DIGEST November 9, 2009

p e o p l e TeXAS

Betsill Named AVP, Payment Services at Dallas Fed

Hendricks Named VP/CLO, American HB Sand Springs

The Federal Reserve Bank of Dallas has named Joe Betsill assistant vice presi-dent with continu-ing responsibility for the payments services depart-ment. Previously, Bet-sill held positions as an operations manager and as a bank examiner. Before his employ-ment at the Dallas Fed, he served with two Austin-area banks. Betsill holds a BBA degree from The University of Texas at Arlington. He retired from the U.S. Coast Guard Reserve in 2004 as a senior chief boat-swain’s mate. He was recalled to ac-tive duty for over 18 months during his reserve career: Operations Desert Shield (1990), Noble Eagle (2001), and Enduring Freedom (2003) Q

Betsill

Jonathan Hendricks has been named vice president of American Heritgage Bank’s north branch on Adams Rd. in Sand Springs. He will primarily serve as a commerical loan officer. Hendricks has eight years of banking experience. He most recently served as a vice president and commercial loan portfolio manager with Spirit-Bank in Tulsa. American Heritage Bank is based in Sapulpa and was established in 1905, making the bank one of the oldest in-dependently-owned banks in the Tulsa market Q

oKlAHoMA

Centennial Bank in Cabot Taps Carter EVPDavy Carter has been hired by Centen-nial Bank in Cabot as executive vice president, general counsel and chief lending officer, for its east region which includes Beebe, Cabot, Heber Springs, Jacksonville, Mountain View, Searcy, and Ward. The announcement was made by Tracy French, regional president. Carter has over 13 years of com-bined financial and legal experience. His new duties include oversight of bank lending and operations, and ap-pointment to the regional board of di-rectors and general legal counsel. Carter is the state representative for District 48 where he sits on both the House Judiciary and State Agen-cies Committee and is chair of the Constitutional Issues Subcommittee. He is a graduate of Arkansas State University in Jonesboro with a bache-lor’s degree in corporate finance. He also holds a JD with honors from the University of Arkansas School of Law. He is an alumnus of the Graduate School of Banking at LSU Q

FC Holdings Names Black CEO in ShakeupNigel Harrison, CEO of FC Holdings Inc., the parent company of First Com-munity Bank, N.A., Sugar Land, has stepped down as FC Holdings’ presi-dent/CEO but remains on the board of directors. Andy Black, who was hired by Harrison in April 2009 as CEO of First Community Bank, has now as-sumed the title of CEO of the parent company. According to an article by Greg Barr, Houston Business Journal writer, the changes were made by NY private eq-uity firm JLL Partners LLC, the parent company’s majority owner. Eight of the bank’s board members also resigned, and JLL Partners ap-pointed three directors to fill certain vacancies. Mark Clements is now the bank’s chairman of the board. First Community lost money in 2007 and 2008 and reported a $13 million loss through the first half of 2009 Q

ArKANSAS reGulATorS

Fed Chooses Parkinson as Head of Bank SupervisionThe Federal Reserve in late October named Patrick Parkinson, a longtime staff economist, to head bank supervi-sion and regulation, effective immedi-ately. The appointment was reported in an article in The Wall Street Journal by Sudeep Reddy and Damian Paletta. Parkinson, who holds a doctorate in economics at the University of Wis-consin, has served as a top advisor to Fed chairman Ben Bernanke and his predecessor Alan Greenspan. Re-cently, he took a leave from the Fed to serve as an architect of the Obama Administration’s proposed overhaul of financial regulation. Parkinson joined the Fed in 1980 and served in the Division of Bank-ing Supervision and Regulation in the 1980s. But, he has served most of his Fed career in the Division of Research and Statistics. He most recently served as the division’s deputy direc-tor, working on financial regulation is-sues throughout the Fed system. As head of bank supervision, Par-kinson will work closely with the Fed’s newest governor, Daniel T. Tarullo, who was an advisor to President Obama during his election campaign and who heads the committee of gov-ernors overseeing bank supervision Q

TeXAS

November 9, 2009 BANKERS DIGEST Page 5

p e o p l e

IBERIABANK, Lafayette, has named Gregory A. King executive vice presi-dent and president of the Birming-ham, AL, market. King began his banking career with Highland Bank in Birming-ham. He joined AmSouth Bank in 1997 (later bought by Regions Bank) where he served in a number of roles. He worked in the Metropolitan commercial bank-ing group as an assistant relationship manager and then as vice president and commercial banking relationship manager. He moved to Chattanooga, TN, in 2005 to serve as senior vice president and sales manager for C&I banking in SE TN and North GA. He most recently served as senior vice president and market manager for

middle market C&I banking in North Central AL for Regions Bank. King earned a BS degree in ac-counting from Birmingham-Southern College and an MBA degree from The University of Alabama at Birming-ham. Active in the Birmingham commu-nity, King currently serves on the ex-ecutive committee and as treasurer for Pathways. He previously served on the Committee of 25 for Girls Inc. of Central Alabama, is a member of the Builders Society of the United Way of Central Alabama, and an active sup-porter of the Greater Alabama Council Boy Scouts of America. IBERIABANK entered the AL market in February 2009 when it named Russ Ford Jr. executive vice president and president of the Mobile market. The bank set up an LPO with plans to open branches later. In August it took over CapitalSouth Bank in Birmingham in an FDIC-assisted transaction Q

louISIANA

Resource Bank in Covington, has an-nounced recent promotions. Doug Ferrer has been promoted to execu-tive vice president and chief credit of-ficer. Curt Keay has been promoted to executive vice president and chief administrative officer. Ferrer previously served as senior lending officer for the $350 communi-ty bank. He has served in the banking industry since 1985. In his 23 years as a banker, he served with five financial institutions. He holds a BS degree in finance from Lousiana Tech University and an MBA degree from Southeast-ern Louisiana University. Keay previously served as senior vice president responsible for human resources and marketing. The bank has also announced Phil Jackson has been named security offi-cer and Jennifer Young assistant vice president and branch manager of the Covington office at 5100 Village Walk, Ste. 102. Resource Bank, founded in 1998, re-ports over $381 million in assets and ap-proximately $300 million in deposits Q

Ferrer and Keay Are EVPs, Resource Bank

Metairie Bank HR Director Mitzi Still Dies at Age 50Guaranty Savings Bank, Metairie, has lost its human resources director Mit-zi Still who died on October 12. She was a resident of Westwago at the time of her death. The 50-year old banker held the title of vice president Q

Fidelity Homestead Savings Bank, New Orleans, has announced that Cheri Viola and Sheila Wagner have joined the Fidelity team. Viola is a new senior personal bank-er at the Hammond branch at 500 CM Fagan Dr. She most recently worked as a business banker with Whitney National Bank in Ponchatoula. Wagner is the new operations man-ager in Slidell at 1901 Gause Blvd. She most recently served as a personal banker with IBERIABANK Q

Viola and Wagner Join Fidelity Homestead Savings

IBERIABANK Taps King President in AL market

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N e W S W A T C H louISIANA

Guaranty Savings Bank, Metairie, has announced the opening of a full-ser-vice branch in the Elmwood Business Park at 5700 Citrus Blvd., Ste. K, in Harahan. The location will serve the Harahan and River Ridge markets on the East Bank. The leadership team at the Elm-wood location includes vice president Dan Ross, a New Orleans banker with over 30 years of private banking ex-perience, and branch manager Geoff Artigues, who has eight years of retail banking experience. The branch has a staff of five bankers. Guaranty operates six banking of-fices and a mortgage production of-fice with locations in New Orleans, Metairie, Mandeville, Ponchatoula, Harvey, and Elmwood. The bank was established in 1937. Its holding com-pany, GS Financial Corp., trades on the NASDAQ stock exchange Q

Guaranty Savings Bank Opens Branch in Harahan

Simmons First Announces Public Offering of StockSimmons First National Corporation, Pine Bluff, announced on November 3 that it has commenced an underwrit-ten public offering of approximately $65 million of its common stock. The underwriters will have a 30-day option to purchase up to an additional 15% of the offered amount of common stock from Simmons First, to cover over-al-lotments, if any. According to a news release, the shares will be issued pursuant to a prospectus supplement filed as part of a shelf-registration previously filed with the SEC on September 9, 2009. Simmons First intends to use the net proceeds from this offering for general corporate purposes and pos-sible future acquisitions of other fi-nancial services businesses, including possible FDIC-assisted acquisitions. Simmons First is a multi-bank fi-nancial holding company. It conducts its business through eight community banks operating 88 offices, of which 84 are financial centers, located in 47 communities in AR. The company’s common stock trades on the NASDAQ Global Select Market under the sym-bol “SFNC.” Simmons reported a 18% increase

in its net income ($7.7 million) for the third quarter over the same period in 2008. The company said while loan demand remains soft its banks are continuing to provide loans to its cus-tomers. Simmons reported a $2 mil-lion gain in the third quarter when it sold some of its student loans Q

The number of TX banks offering fi-nancial education increased in 2008, but there is plenty of room for im-provement, according to a recently released survey. The survey -- a five-year joint effort by the Texas Department of Banking, Tex-as Bankers Foundation, and the Edu-cation Foundation of the Independent Bankers Association of Texas (IBAT) -- revealed that 56% of the 220 banks responding have an active financial ed-ucation outreach in their communities. This is an increase of 9% over 2007, the initial year of the project. Ninety-two percent of the largest banks surveyed offer education ser-vices, compared to 37% of the small-est banks. However, among those that do not participate in financial literacy programs, a majority are interested in becoming active participants. When asked if there was an interest in learning more about financial lit-eracy, 80% wanted a financial literacy starter kit, and 60% expressed an in-terest in attending a train-the-trainer session for Money Smart, Building Wealth, and Junior Achievement. The survey also showed that 25% of the banks offer financial education in Spanish and 47% offer the literacy 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

More Texas Banks Offering Financial Literacy Training

TeXASArKANSAS

November 9, 2009 BANKERS DIGEST Page �

N e W S W A T C H

U.S. Bank Acquires FBOP’s Corporation’s Banking Subsidiaries, Enters TX Market and Expands AZ Market Presence; 114 YTD FailuresU.S. Bancorp, Minneapolis, MN, an-nounced on October 30 its lead bank, U.S. Bank NA, Minneapolis, MN, has acquired the banking subsidiaries of FBOP Corporation of Oak Park, IL, from the FDIC. The nine banking sub-sidiaries were closed on October 30 by federal and state bank regulators, and the FDIC was appointed receiver. The nine banks that are part of this transaction include: BankUSA, N.A., Phoenix, AZ; California National Bank, Los Angeles, CA; Citizens National Bank, Teague, TX; Madisonville State Bank, Madisonville, TX; North Hous-ton Bank, Houston, TX; Pacific Na-tional Bank, San Francisco, CA; Park National Bank, Chicago, IL; San Diego National Bank, CA; and Community Bank of Lemont, IL. The FDIC entered in a P&A trans-action with U.S. Bank to acquire ap-proximately $18.4 billion in assets and assume approximately $18.3 billion in liabilities, including $15.4 billion of both insured and uninsured deposits, of the nine failed banks. In addition, substantially all loans (approximate-ly $14.4 billion) are subject to a loss sharing agreement with the FDIC. The transaction adds scale to U.S. Bank’s footprint in CA, IL, and AZ, and provides an entry into the TX retail mar-ket. The nine banks had 153 offices. According to a U.S. Bancorp press re-lease, the nine banks involved in this transaction will continue to operate

fAIleD BANKS

under their current names and will be re-branded as U. S. Bank branches in the near future. U. S. Bancorp, with $265 billion in assets as of September 30, 2009, is the parent company of U.S. Bank, the sixth largest commercial bank in the nation. Prior to this transaction, U.S. Bank had 570 branches in CA, 75 in AZ, and 127 in IL. Four banks were closed in the Bank-ers Digest coverage area of AZ and TX. BankUSA, N.A., Phoenix, AZ, was closed by the OCC. The bank served the Phoenix, Mesa, and Scottsdale markets. Citizens National Bank, Teague, TX, was closed by the OCC. The bank served the Freestone County market in east Central TX with one location. Madisonville State Bank, Madison-ville, TX, North Houston Bank, Hous-ton, TX, were closed by the Texas De-patment of Banking. As of September 30, 2009, North Houston Bank had deposits of approximately $308 mil-lion, including $68 million in brokered deposits. At the same date, Madison-ville State Bank had deposits totaling approximately $225 million, includ-ing $70 million in brokered deposits. North Houston Bank and Madison-ville State Bank were the second and third state-chartered banks in TX to fail in 2009. Banking commissioner Charles Cooper stated the banks experienced

similar problems related to poor asset quality and insufficient liquidity. Loss-es resulting from the write-down of Fannie Mae and Freddie Mac preferred stock and other investments depleted each bank’s capital. These deficiencies were compounded by deterioration in the commercial loan portfolios and an over-reliance on brokered deposits Q

The Independent Bankers Association of Texas drew its first breath in March 1974 in downtown Dallas when 80 independent bankers went public in support of the new organization. The story of the formation and the first 35 years of the history of IBAT have been told in a book, Your Commu-nity Is Our Community: The First 35 Years of the Independent Bankers Association of Texas. The book was underwritten by contributions to the IBAT Education Foundation and distributed at IBAT’s 35th annual convention held last

IBAT Celebrates First 35 Years at 2009 Conventionmonth in San Antonio. The book was written by Terry Young, a career journalist and media consultant. His relationship with IBAT dates back to the “opt-out” campaign in 1995. The 175-page book chronicles the history of IBAT using an unique IBAT Timeline from 1974 to the present. The timeline contains the names of IBAT leadership, significant IBAT develop-ments, and important laws and regula-tions in the banking industry. The book contains numerous photos and images from IBAT’s annual meetings Q

Page � BANKERS DIGEST November 9, 2009

C h a r t e r

a c t i v i t yArizonaBRANCHES The OFFICE OF THE COMPTROL-LER OF THE CURRENCY has received an application by The Harris Bank NA, Scottsdale, to relocate a branch from 2375 E. Camelback Rd. to 2555 E. Camelback Rd., Ste. 160, Phoenix.ArkansasMERGERS AND ACQUISITIONS The FEDERAL RESERVE BANK OF ST. LOUIS has filed an application by First National Security Company, Hot Springs, to acquire 100% of Heritage Capital Corporation, Jonesboro, and thereby indirectly acquire Heritage Bank, Jonesboro.LouisianaBRANCHES The OCC has approved applica-tions by Whitney National Bank, New Orleans, for branches: 1801 Country Club Rd., Lake Charles, and 2202 N. Westshore Blvd., Tampa, FLOklahomaBRANCHES The OCC has approved an appli-cation by The First National Bank in Marlow for a branch at 228 W. Oak Main, Comanche.TexasCHARTERS The OCC has approved a thrift to national converstion application by Wells Fargo Bank South, N.A., Hous-ton, involving Wachovia Bank, fsb.BRANCHES The OCC has received an application by North Texas Bank, N.A., Decatur, for a 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,

r e G u l A T o r S

The Independent Community Bankers of America (ICBA) said that it generally supports the FDIC’s prepaid assess-ment proposal as a way to address li-quidity needs of the Deposit Insurance Fund (DIF), but the FDIC should short-en the prepayment period from three years to two years and collect a third year of prepaid assessments at the end of 2010 if the DIF’s liquidity needs have not been met. ICBA’s comments were submitted to the FDIC in a letter. Visit www.icba.org to read the letter. “The advantage of the two-year pre-payment, with the option to require an additional year, is that it gives the FDIC an opportunity to reevaluate the industry and the economy at the end of 2010 and make another determina-tion of future DIF losses and liquid-ity needs,” said Karen Thomas, ICBA executive vice president for govern-ment relations. “A two-year prepay-ment would also alleviate some of the liquidity pressure associated with a three-year prepayment and mitigate the impact on industry earnings, capi-tal and lending activities.” In its comment letter, ICBA strongly recommended that the assessment base used for the prepayment calcu-lation be the same assessment base that was used for the second-quarter special assessment—an institution’s total assets minus its Tier 1 capital. “A broader assessment base...would result in a fairer assessment system,

with the larger banks paying a share of the assessments that is proportional to their size, rather than their share of domestic deposits,” said Thomas. To that end, ICBA strongly supports the Bank Accountability and Risk Assess-ment Act of 2009 (H.R. 2897), which would broaden the assessment base for FDIC deposit insurance premiums and create a separate risk-based as-sessment for too-big-to-fail banks that represent a systemic threat to our na-tion’s financial system. ICBA also recommended that the FDIC use a significantly lower estimat-ed annual deposit growth rate when computing the prepaid assessment for banks located in parts of the country that historically have had slower de-posit growth rates. ICBA noted that many community banks, particularly those located in small towns and ru-ral areas, have not experienced a 5% annual deposit growth in recent years, especially in a low-interest-rate envi-ronment. In addition, the FDIC should establish an earlier refund method for banks that have not exhausted their prepaid assessment by Dec. 31, 2012, and annual refunds should be made soon after the end of any year when a bank has significantly overpaid its pre-paid assessment. ICBA commended the FDIC for con-cluding that the prepaid assessment should qualify for a zero risk weight under the risk-based capital require-ments and for establishing a proce-dure for banks to apply for an exemp-tion from the prepaid assessment. Comments for the FDIC’s Notice of Proposed Rulemaking were due by Oc-tober 28 Q

ICBA Recommends FDIC Shorten Prepayment Period, Other Tweaks to Notice of Proposed Rulemaking

Cross Plains, to relocate its home office to an existing branch location at 1208 S. Main St., Boerne, with the current home office at 1012 NW Main St., Cross Plains, becoming a branch location Q

November 9, 2009 BANKERS DIGEST Page 9

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

N e W S W A T C H

Feature (continued from Page 3)

The American Bankers Association has serious concerns about the applica-tion of the Iowa Credit Union League and its wholly-owned subsidiary -- Af-filiates Management Co. -- to become a bank holding company by acquiring CrediCard National Bank in Tucson, AZ, the ABA said recently in a com-ment letter to the Chicago Federal Re-serve Bank. “To allow a [tax-exempt] credit union trade association … to become a bank holding company and acquire a national bank could create an unlevel playing field by allowing

ABA Expresses Concerns About Iowa CU League Becoming a BHCthe holding company to conduct its operations at a significantly lower cost and pass on the benefits to the tax-ex-empt credit unions on whose behalf it advocates,” the ABA said. The associa-tion also pointed out that a national bank charter affords a broader lending scope and investment opportunities than a corporate credit union charter. “Allowing credit unions to benefit from the broader activities of the national bank subsidiary of the corporate cred-

it union would undercut the competi-tiveness of banks, to the detriment of consumers and the broader economy. We believe these likely consequences are inconsistent with the statutory re-quirement that an applicant meet the convenience and needs of the com-munity to be served.” The comment letter was reported in Keith Legget’s Credit Union Watch: Keep-ing an Eye on the Credit Union Scene at http://creditunionwatch.blogspot.com QTBIA Ad-Bankers Digest:Layout 1 1/7/2009 9:24 AM Page 1

Page 10 BANKERS DIGEST November 9, 2009

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C l A S S I f I e D AUSTIN COMMUNITY BANK with $80MM assets seeking strong CEO/PRESIDENT with minimum of 20 years banking experience. Must have CEO experience. Strong bank-ing, lending, strategic planning, and regulatory experience required. Send resume, references, and sal-ary requirements to dgordon@tex-ascountrybank.com or fax to (512) 261-0037.

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An independent community bank is in need of a CHIEF LENDING OFFI-CER. The bank is a 90-year institu-tion with 120MM in assets located in East Texas. The bank is search-ing for a community leader with strong formal credit management and training obtained through a successful background in communi-ty banking. Based on qualifications, an excellent compensation and benefit package is provided as well as assistance in relocation. Send re-sume to bankersdigest@bankersdi-gest.com, subject line Box O-2.

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Page 12 BANKERS DIGEST November 9, 2009

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PERIODICAL

the long-term asset management business of Columbia Management to Ameriprise Financial. Established in 1985, First Republic Bank is based in San Francisco, CA. It operates preferred banking or trust of-fices stretching from the West Coast, Las Vegas, NV, to New York City, and Boston, MA. The private equity firms in the deal include General Atlantic LLC and Col-ony Captial, which combined will own roughly 50% of the bank, and other in-vestors will own between 5% and 10% stakes Q

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Bank of America Agrees to Sell First Republic Bank To Private Equity Investor GroupBank of America Corp., Charlotte, NC, has agreed to sell First Republic Bank to a group of private equity firms for more than $1 billion,according to an article in The Wall Street Journal by Peter Lattman and Daniel Fitzpatrick. As part of the deal, the bank’s top management, including founder and chairman James Herbert II, are ex-pected to stay on board. The investor group will acquire about $12 billion in assets, leaving about $2 billion in assets with BofA.

The deal is valued at roughly First Re-public’s book value. BofA inherited First Republic from its acquisition of Merrill Lynch & Co., which acquired the bank in September 2007 as part of its strategy to bolster MLC’s high-end wealth management business. MLC paid $1.8 billion for the private bank which at the time of its pur-chase reported $10 billion in assets. BoA reported that after a review of its assets, First Republic did not have a strategic fit. In September, BoA sold