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Bank: Farm Credit Bank of Texas Vendor:Misys


System: Fusionbanking LoanIQ


Summary Type of financial institution: Wholesale funding bank Headquarters: Austin, Texas Assets: $19.4 billion (2016) Project scope: Front-to-back lending system replacement System/vendor


replaced: FIS’s ACBS, Jack


Associates’ Silverlake System/vendor installed: Misys’ Fusionbanking LoanIQ


Functionality: Loan processing, general ledger, secondary deals and trading, front-to-back office support for commercial loans, trading, origination, sales, syndication, servicing and accounting


Interfaces: CustomLender from CCS (now also owned by Misys)


Selection team: Bank, consulting firm Selection time: 18 months Installation team: Bank, vendor Installation time: Around one year Level of satisfaction: Moderate


26 Henry &


Overview Farm Credit Bank of Texas (FCBT) is a user of Misys’ flagship syndicated lending system, Fusionbanking LoanIQ. FCBT implemented this in 2008 to replace the sector’s other main syndicated lending system, FIS’s ACBS. Prior to this, the bank also had a false start with Jack Henry’s much broader system, Silverlake.


• The bank’s structure and focus


FCBT is somewhat unusual in structure, as its focus is wholesale funding, providing services to 14 parent banks across New Mexico, Texas, Alabama, Mississippi and Louisiana. The lending, which is all originated by the 14 banks, is to agricultural farmers, ranchers, agribusinesses and aqua culture businesses, plus some residential lending activities.


The banks’ remit is to support rural US. The co-operative structure is replicated in three other such farm credit banks in the US and profits are distributed back to the borrowers.


FCBT’s aim is to have a zero cost margin.


There are large revolving lines of credit, in the region of $5.5 billion at the top end and in the $2-3 million range at the bottom. Some of the agribusiness loans are large ones, such as that of $500 million that closed at the end of 2014. The loans are held on FCBT’s books and, along with the


Core Banking Systems Case Studies: North America www.ibsintelligence.com


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