Making an Impact in Your Communities

 There are 531 Banks, Thrifts & Savings and Loan Institutions in Texas and 5,533 branches.  We employ 150,000 Texans  We are the devoted stewards of more than $450 billion of Texans’ assets

 The Texas banking industry has outperformed the nation.  In 2015, Texas-based banks earned a return on assets (ROA) of 1.12 percent; banks nationwide earned an ROA of 1.04 percent.

 According to the Dallas Fed:  Texas banks are better positioned today than during the 1980s oil price collapse. The state economy is more diversified, with energy playing a smaller role.  The energy sector accounts for about 2 percent of Texas jobs, down from a high of 4.7 percent in 1982.

 According to the Dallas Fed:  Significant changes in the banking industry’s structure since the 1980s have bolstered Texas banks’ ability to weather low oil prices. ▪ Arguably, the most important of these involves the ability to conduct business across state lines.

The Truth About Banks Fact: The government invested $245 billion into TARP bank programs, a small portion of the $700 billion authorized. Banks have repaid $275 billion through principal and interest—a $30 billion positive return for taxpayers. (July 2015) Myth: The 2008 bailout was a government handout that cost taxpayers billions of dollars.

 Myth  Texas banks should provide account services at low or no cost.  Fact  Banks are for-profit businesses. We pay franchise taxes. We comply with myriad state and federal laws and regulations. As the volume of regulations increases, our profits decrease.

 Myth  Banks are responsible for the real estate market’s collapse.  Fact  Under-regulated NONBANK lenders are responsible for the housing market’s collapse. Banks only make loans they know will be repaid. Everyone loses in a residential foreclosure; banks are doing everything they can to avoid them.

 Myth  There is no difference between credit unions and banks.  Fact  Many credit unions have morphed into highly profitable institutions that look and act like banks. The major difference? Credit unions do not pay taxes or abide by the same rules as banks. Credit union (above), bank (below)

 Myth  Banks should be more heavily regulated.  Fact  Banks already must comply with more than 13,000 pages of regulations that are aimed at protecting depositors and ensuring a healthy, competitive banking system.

 Fact: Overregulation  The Dodd-Frank Act added an estimated 7,000 pages of new or expanded regulations. Managing the regulations is a significant challenge for any bank, but for the median-size bank with only 37 employees, it’s overwhelming.

 Customer deposits are protected by FDIC insurance. In the 83-year history of the FDIC, no one HAS EVER lost a penny of an insured deposit.  The FDIC has raised its coverage amount from $100,000 to $250,000 per depositor per insured bank.

 The FDIC insurance fund is financed ENTIRELY by bank premiums.  The FDIC is funded by its member institutions through premiums and assessments paid on deposits. FDIC Examines & Supervises 4,900 banks Examines banks for compliance with consumer protection laws Resolves institution failures Insures Deposits

 Banks are the Pillars of Your Communities  Historically, banks were the first businesses in town and provided the necessary capital for building homes, businesses and schools.  Thousands of commercial banks work with community and non-profit groups on projects throughout the state.

Financial Literacy Financial literacy and consumer education are top priorities for banks.

 The Community Reinvestment Act requires banks to lend to their entire market areas and, if necessary, have a strategy for lending in low- and moderate-income neighborhoods.  Nationwide, all lenders reported almost $75 billion in community development loans in 2014.

 The banking industry is committed to a color- blind, discrimination-free lending environment.  Banks have made a significant effort to serve customers in all communities. According to the Government Accountability Office, 41 percent of banks customers are of low and moderate income.

 Most Texas small businesses obtain capital from commercial bank loans.  Nationwide, small businesses get 65 percent of their loans from commercial banks and other depository institutions.  Small businesses represent 99.7 percent of the nation’s 27.9 million businesses.

 Texas banks donate thousands of hours and millions of dollars to charities every year.

 The Texas Bankers Association represents banks of all sizes, from the smallest bank in Texas (Oakwood State Bank) to the largest (JPMorgan Chase).  TBA is the oldest and the largest state bankers association.

Texas Banks Investing in their Communities