Making an Impact in Your Communities

There are 629 Banks, Thrifts & Savings and
Loan Institutions in Texas and 5,638 branches.

We employ 150,000 Texans

We are the devoted stewards of $499 billion
of Texans’ money and approximately $740
billion in assets

The Texas banking industry has outperformed
the nation.
 In 2011, Texas-based banks earned a return on
assets (ROA) of 1.1 percent; banks nationwide
earned an ROA of 0.9 percent.
 2012 marks the fifth consecutive year that Texas
banks have done better than their counterparts
nationwide in terms of profitability.
--Dallas Fed President Richard Fisher
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
$264 billion through
principal and
interest—a $19 billion
positive return for
taxpayers so far.
(May 2012)
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 11,000 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
5,000 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 75-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.
Examines &
Supervises
4,900
banks
Insures
Deposits
FDIC
Resolves
institution
failures
Examines
banks for
compliance
with consumer
protection
laws

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
Consumer
education and
financial
literacy 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.

Last year, Texas banks invested $26 billion in
affordable housing through the Community
Reinvestment Act and $13 billion in small
business loans.

The banking industry is committed to a colorblind, 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.

Small businesses get 65 percent of their loans
from commercial banks and other depository
institutions.

Small businesses represent 99.9 percent of
the nation’s 27.5 million businesses.

Texas banks donated $102 million directly to
charitable causes.

The Texas Bankers Association represents
banks of all sizes, from the smallest in the
nation (Oakwood State Bank) to the largest
(Bank of America).

TBA is the oldest and the largest state
bankers association.
Texas Banks Investing in their Communities