A Bi-Weekly News Bulletin for CBAI Members January 12, 2011
 CBAI Sponsors Session on Small Business Lending Fund The Community Bankers Association of Illinois will sponsor an informative presentation by the U.S. Department of the Treasury and the Federal Reserve Bank of Chicago titled “Small Business Lending Fund - A Capital Opportunity,” on January 20, 2011 at the Westin O'Hare in Rosemont, Illinois. Deputy Assistant Secretary Donald Graves was selected by Treasury Secretary Timothy Geithner to implement the Small Business Lending Fund. Graves will discuss the program's features, terms and conditions, and plans for a successful implementation. He will also provide insights into the genesis of the Small Business Lending Fund, its road to passage, and the challenges in structuring the program. Jeremiah Boyle, the FRB of Chicago's Community Affairs Managing Director, will then review the results of a recent series of 7th Fed District meetings and will discuss opportunities and the outreach requirements of the Small Business Lending Fund. There is no fee to attend this presentation. For more details and to register, Click Here. Back to top Legislature Approves Massive Tax Hike But No Budget Reductions The Illinois legislature this week approved a 67% hike in the state personal income tax rate (from 3% to 5%) along with a 43% increase in the corporate income tax rate (4.9% to 7.0%). The tax increases are expected to raise an additional $6 billion annually. The rates are effective immediately and scheduled to sunset after four years. Republicans decried the increases and predicted job losses. More. However, rather than adopt spending reductions, the legislature approved caps on spending increases except for education, human services, and property tax relief. See Article. Back to top Senator Durbin Taking Lead in Defending Wall Street Reform Law Senate Majority Whip Richard Durbin (D-IL) is assuming the role as a primary defender of the Wall Street reform law enacted last year, filling the void left by the retirement of former Banking Committee chairman Chris Dodd. Durbin indicated that he will work to reject Republican efforts to water down or deny funding to implement the provisions of the law. See Full Article. Back to top Reform of Fannie and Freddie Unlikely This Year Housing experts believe reform of Fannie Mae and Freddie Mac will not occur this year due to its complexity and the continued fragile state of the housing market. However, hearings and behind-the-scenes discussions will take place throughout the year in anticipation of reform action in 2012. More. Back to top IRS and Treasury Sites Detail Small-Biz Tax Benefits The IRS has posted information on its website on tax changes for small businesses in 2011, including tax benefits from the Small Business Jobs Act of 2010. In addition to tax benefits, the act established the ICBA-advocated Small Business Lending Fund. Community banks can access applications for and information about the $30 billion fund for interested community banks on Treasury’s website. Visit IRS Site. Visit Treasury Site. Back to top Visa Plans Two-Tiered Interchange Rates Visa said it plans to implement a dual interchange schedule for issuing banks and credit unions in the wake of debit interchange regulation. Analysts say the move will put community banks and credit unions at an advantage over larger institutions. Last month, the Federal Reserve Board debuted its proposal to restrict interchange fees on debit cards at around 12 cents for institutions of $10 billion or more in assets. Smaller companies would not be restricted. More. ICBA Concludes Two-Tiered Plan Won’t Work for Community Banks Meanwhile ICBA has concluded that the two-tiered plan will continue to benefit big-box retailers that will steer customers to cheaper rate-controlled cards issued by large banks. ICBA reiterated its opposition to interchange price-fixing. See ICBA Release. Back to top OCC Outreach Meetings Scheduled The Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS) are sponsoring meetings across the nation to discuss the integration of the two agencies with emphasis on the OCC’s approach to supervision. The two meetings most convenient to Illinois community banks are 1) February 1-2, 2011 at the Chicago Hyatt Regency, 151 East Wacker Drive (800/233-1234), and 2) March 3-4, 2011 at the Indianapolis Marriott Downtown, 350 West Maryland Street (877-640-7666). To register, please call the OCC’s Barbara Jennings at 202/874-4707. See Meeting Agenda. Back to top Plan Now to Attend ICBA Convention Get together with 3,000 community bankers from across the United States at ICBA’s Annual Convention and Techworld on March 20-24, 2011 in beautiful and sunny San Diego. This fantastic convention features a great lineup of speakers including Fed Chairman Ben Bernanke, CFPB Chairman Elizabeth Warren, and MSNBC’s Joe Scarborough. In addition, there are more than 60 education workshops and more than 200 companies on display in Techworld. For more information and to register, Click Here. Back to top New Year’s Greetings from ICBA President Cam Fine Happy New Year ICBA members and fellow community bankers! Read Address. Back to top CFPB’s Warren Pledges Support for Community Banks at ICBA Elizabeth Warren, who is ramping up the new Consumer Financial Protection Bureau, said at ICBA’s Washington offices that community banks play a vital role in the financial system and the agency should avoid subjecting community banks to additional layers of regulations. More. Back to top Sageworks: Most Community Banks Plan to Lend More in 2011 CBSC marketing partner Sageworks recently released the results of a community bank survey which revealed that 58% of the respondents intend to increase commercial lending in 2011, while 38% plan to keep commercial lending steady. See Article. Back to top Baker Market Update The Labor Department announced this morning that the U.S. added 103,000 payrolls in December, fewer than forecasted. More. Back to top Rural Mainstreet Economic Index Advances The overall index for the Rural Mainstreet economy climbed above growth neutral 50.0 for the second straight month in December, advancing to its highest level in nearly two years. The Index, a compilation of results from a survey of community bank CEOs in a 10-state region, increased to 55.4 from 53.3 in November. Illinois’ RMI advanced above growth neutral for an eighth straight month with a December reading of 65.2, a regional high. Illinois experienced continuing increases in farmland prices, farm equipment sales, and job gains. See Report. Back to top CBAI Expresses Concerns About IDFPR’s “Confirmation of Understanding” on Foreclosure Practices At the request of the Illinois Department of Financial & Professional Regulation (“IDFPR”), CBAI is making available the “Confirmation of Understanding” form that IDFPR is asking each mortgage lender to sign and submit by January 21, 2011. However, CBAI has strong reservations about the legal authority for this IDFPR proposal and notes that the bank would “voluntarily” be taking on added compliance burdens that are not based on any existing law or rule. For more on CBAI’s concerns and to access the relevant documents, Click Here. Back to top The Truth about Fighting Card Fraud Protecting one of your bank’s most important resources — your credit- and debit-card portfolios — from fraud, identity theft, and data compromise has become an indisputable reality of electronic banking. More. Back to top Making Good from Bad: Winning Options for Redesigning Your Institution’s Retail Strategies You’re invited to a complimentary webinar on Tuesday, January 18, 2011 from 1:00 PM - 2:00 PM CST, presented by CBSC marketing partner Affinion. Click here to register. Back to top CBAI Announces Site for 37th Annual Convention Golf Outing CBAI is pleased to announce that the golf outing at the 37th Annual Convention and Expo will be held at The Bog Golf Course in Saukville, WI. The Bog is an Arnold-Palmer design that opened in 1996 and was immediately in Golf Digest's Top 10 Best New Courses in the country. The Bog is still ranked as one of the 10 Best Golf Courses in Wisconsin by Golf Digest, and from 2004 through 2009 it has been rated 4-stars by Golf Digest's “Places to Play!” The tournament will be held on Thursday, September 22, 2011, to kick off the convention. Back to top CBAI Offers Interest Rate Averages By County To take a "Test Drive," click here. Back to top CBAI's 2011 Education Catalog Now Available! CBAI has just completed the 2011 Education Catalog! This document highlights all the education courses scheduled for 2011 to date, including one-day seminars, institutes, and telephone/webcasts. For your convenience, training programs are categorized by job specifications, including lending, CEOs, front-line, directors, auditing, technology/operations, sales, marketing, compliance, and more. Information regarding the Community Bankers School, Career Development Division, Banking Essentials, and distance learning is also included. More education programs will be added to the on-line catalog periodically, so you can stay updated on the latest offerings. This catalog is a great resource in planning your training calendar for 2011. See Catalog. Back to top Calling All Community Bank Directors! The Community Bank Directors’ College will provide guidance to become a more effective, capable, and supportive member of a bank’s board of directors. The goal of the college to graduate directors who will be more active, more knowledgeable, and more decisive. The first session, which may be attended as a stand-alone course, will be held at Crowne Plaza in Springfield, IL, January 18 - 19. Topics include an overview of the role of the bank director; the changing landscape of banking; the director and the board; the loan process from the director’s view; the internal audit function; directors’ responsibilities in compliance; strategic technology planning and security update; regulators’ views of directors’ responsibilities; and a regulator panel. Back to top Branch Managers’ Forums Scheduled for January 19 & 20, 2011 CBAI is pleased to offer “Branch Managers’ Forum.” Robert Swartz, manager at BKD, LLP, Decatur, will facilitate the Springfield Forum, while Kathy Enbom, manager with WIPFLi LLP, will facilitate the Naperville Forum. CBAI organizes the forums based on bank size and market to ensure that branch managers have as much in common as possible without being competitors. Other consultants from a variety of firms may be invited to address each group on branch issues. This expertise would ordinarily cost thousands of dollars if you had to pay for it on a “real-time” basis. Forums meet quarterly at a date and location determined by the group members. Four to six issues are usually discussed at each session and the agenda is member-selected. Back to top Senior Lender Forums Scheduled for January 25-28, 2011 CBAI's "Senior Lender Forums" provide an opportunity for community bank lenders to discuss important issues with non-competing community bankers. They are designed to be a rewarding experience for participants to grow both personally and professionally. CBAI has four Senior Lender Forums and is seeking a few senior lenders from banks of all asset sizes to complete the Forums. Benefits of the Forums include improving the profitability and reducing the risk of your bank's loan portfolio, increasing your understanding of regulatory issues, solving your most pressing problems, obtaining access to highly-respected experts in the field, and forming lasting relationships with non-competing senior lenders. Paul Sims, president of Guided Solutions, Franklin, Tennessee, facilitates the Senior Lender Forums. Sims has spent 29 years in commercial banking and financial services, and has served as senior lender and chief operating officer for a community bank. Back to top |
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