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Community Bankers Association of Illinois
Community Bankers Association of Illinois    Community Bankers Association of Illinois CBAI E-Newsletter Sponsor - SHAZAM
 
     A Bi-Weekly News Bulletin for CBAI Members                                    January 18, 2017

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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • ICBA Launches ‘Plan for Prosperity’ Legislative Platform for New Congress
  • Fine: Take a Stand for the Financial CHOICE Act
  • CBAI Urges OCC to Delay Moving Forward in Chartering New Fintech Companies
  • OCC Outlines Top Risks Facing Banking Profession
  • FDIC Spotlights Long-Term Community Bank Strategies
  • Register Now for Increasing Access to Affordable Mortgage Credit Workshop
  • CBAI Congratulates Congressman Hultgren for Ascension to Committee Leadership
  • Luetkemeyer Named to Head Key Financial Services Subcommittee
  • SAVE the DATE: 2017 FHLB-Chicago Member Meetings
  • The 2016 Federal Reserve Payments Study Released
  • Responding to Claims of Potential ADA Website Compliance Violations
  • Internal Audit Considerations for CECL
  • Investment News From THE BAKER GROUP
  • Power Your Potential with the 2017 SHAZAM Forum
  • Generational Borrowing Habits: The Skinny on Boomers, GenX, Millennials, and iGen
  • BankOnIT Deploys Virtual Engineers
  • New Resources Help Utilize .BANK Domain
  • See a Digital Edition of the Latest Banknotes Magazine!
  • Is This the Year Someone in Your Bank Celebrates 50 Years in Community Banking?
  • CBAI LEGAL: Can RESPA Violation Cause Divorce?
  • CBIS Nicoud: Banks Can Protect Themselves from Auto-Loan Collateral Loss
  • CBAI Announces Opening Speaker at 43rd Annual Convention
  • Community Bank Directors’ College Scheduled for January 24 & 25
  • Community Reinvestment Act Set for January 31 & February 1
  • Ag Lenders’ Conference Slated for February 7


  • ICBA Launches ‘Plan for Prosperity’ Legislative Platform for New Congress

    The Independent Community Bankers of America last week unveiled its 2017 Plan for Prosperity regulatory relief platform for the 115th Congress. The new Plan for Prosperity, which was also shared with the Trump transition team and key Congressional offices, is a pro-growth regulatory relief agenda that outlines a set of aggressive measures that would eliminate onerous regulatory burdens on community banks that stifle lending and innovation.

    ICBA’s revamped Plan for Prosperity, which CBAI supports, builds on the solid foundation of its past installment, which advanced last year in both the House and Senate through more than 60 bills embodying nearly every provision of the plan. Community bank-specific provisions were also included in the House Financial Services Committee’s robust Financial CHOICE Act, which will continue to be a major focus in 2017.

    “Much more work needs to be done for our nation’s nearly 6,000 community banks and the small towns, suburban and urban areas they serve,” ICBA President Cam Fine said. “ICBA’s Plan for Prosperity is the unequivocal place to start.” See ICBA Release. Read Plan for Prosperity.

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    Fine: Take a Stand for the Financial CHOICE Act

    While ICBA and CBAI are hitting the ground running on regulatory relief in the new Congress, House Financial Services Committee Chairman Jeb Hensarling (R-Texas) is doing the same.

    In a new blog post, ICBA President Cam Fine noted that Hensarling’s soon-to-be-introduced Financial CHOICE Act—the primary vehicle in this Congress for rolling back excessive financial regulation—takes a comprehensive approach to regulatory relief.

    “Quite simply, government rules are harming the people they are supposed to help and are in desperate need of a complete overhaul,” Fine wrote. “I call on all community bankers from coast to coast to join us in supporting this important legislation and urging Congress to pass it as soon as possible.”

    ICBA’s newly released Plan for Prosperity outlines measures policymakers can pass to eliminate the onerous regulatory burden on community banks that stifles lending and innovation. The pro-growth plan focuses on community bank access to capital, regulatory relief, mortgage reform, bank oversight and examination, tax relief, and agriculture and rural America. Read Fine’s Blog Post. Read ICBA Plan for Prosperity.

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    CBAI Urges OCC to Delay Moving Forward in Chartering New Fintech Companies

    In a January 13, 2017, comment letter, CBAI urged the Office of Comptroller of the Currency (OCC) to delay moving forward with chartering new fintech companies until a number of concerns have been addressed and resolved. Read Full Article. Read Comment Letter.

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    The ability to batch-transfer funds efficiently and cost-effectively is an essential element in a cash management program. SHAZAM’s ACH services offers a cost-effective and efficient alternative to process transactions, such as direct deposits and government benefits, direct payments and business-to-business payments, e-checks, tax payments, child-support payments and much more. LEARN MORE about SHAZAM ACH and the benefits of membership today!



    OCC Outlines Top Risks Facing Banking Profession

    The Office of the Comptroller of the Currency said last week that strategic, credit, operational and compliance risks remain top risk concerns for national banks and federal savings associations. In its Semiannual Risk Perspective, the OCC said strategic risk remains high as banks consider business model changes and face revenue challenges. Meanwhile, banks continue to ease underwriting practices, face cybersecurity threats, and work to comply with mortgage disclosure and Military Lending Act requirements. Read OCC Release.

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    FDIC Spotlights Long-Term Community Bank Strategies

    The FDIC recently released highlights of its April 2016 Community Banking Conference, which focused on strategies for long-term success. Transcripts from four conference panels discuss the community banking model, regulatory developments, managing technology challenges, and ownership structure and succession planning. The agency also discussed its responses to issues raised at the conference, including outreach meetings and a handbook on de novo institutions. Read FDIC Release.

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    Register Now for Increasing Access to Affordable Mortgage Credit Workshop

    CBAI is partnering with the FDIC, FRB, and the OCC

    Registration is now open for the Increasing Access to Affordable Mortgage Credit Workshop which will be held on Thursday, January 26, 2017, at the Federal Deposit Insurance Corporation, 300 South Riverside Plaza, Suite 1700, in Chicago. The Federal Deposit Insurance Corporation, Federal Reserve Bank of Chicago, Office of the Comptroller of the Currency, and the Community Bankers Association of Illinois are partnering to offer this single family mortgage credit workshop for banks and other participants. This day-long intensive workshop will provide information on affordable mortgage and refinancing products that may be helpful in meeting the needs of low and moderate income customers and other underserved communities.Register Now.

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    CBAI Congratulates Congressman Hultgren for Ascension to Committee Leadership

    CBAI has extended congratulations to Illinois Congressman Randy Hultgren (R-14) for his ascension to Vice-Chairman of the Subcommittee on Capital Markets, Securities and Investments of the House Financial Services Committee for the 115th Congress. This subcommittee has jurisdiction over capital markets, capital formation, venture capital, market structure and securities, including the Securities and Exchange Commission (SEC). CBAI looks forward to working with Congressman Hultgren on important issues that affect community banks and their communities.

    Hultgren Named Co-Chair of Congressional FinTech and Payments Caucus

    Congressman Hultgren has also been named a Co-Chair of the Congressional FinTech and Payments Caucus, an informal group of members dedicated to innovation, growth and education in the emerging fintech arena. The Caucus serves as a resource for members and their staffs to learn how fintech companies are changing the way financial services are delivered to consumers and businesses.

    CBAI is keenly interested in fintechs and their impact on the community banking profession. Last week CBAI submitted a comment letter to the OCC on the Agency’s proposal to move forward with considering applications for national banking charters for fintech companies. CBAI’s believes fintechs must compete fairly with community banks and that fintechs approved for national banking charters must not have all of the advantages of being a national bank with limited requirements, regulations, and liability. CBAI congratulated Congressman Hultgren on being named Co-Chair of the FinTech and Payments Caucus and looks forward to working with him on fintech issues as they intersect with the interests and concerns of community banks.

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    Luetkemeyer Named to Head Key Financial Services Subcommittee

    Congressman Blaine Luetkemeyer (R-MO), who spoke at CBAI’s annual convention in Kansas City last September and is a strong advocate for community banking, will chair the House Financial Services Subcommittee on Financial Institutions and Consumer Credit that could be at a nexus of Republican efforts to peel away at Obama administration regulations on financial institutions after Donald Trump becomes president.

    Luetkemeyer was a leading critic of Operation Choke Point, an Obama initiative aimed at payday lending and at banks and other third-party processors providing services to industries that may pose a risk to the institutions' reputations. He said the program was a thinly-disguised attempt to go after legitimate businesses the administration likes, such as gun and ammunition merchants. He is a former community banker from St. Elizabeth, Missouri. Read More.

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    SAVE the DATE: 2017 FHLB-Chicago Member Meetings

    The 2017 FHLB-Chicago Member Meetings are coming to a city near you this spring. Agenda topics include balance sheet management strategies, strategies for a changing rate environment, 2017 economic outlook, and the FHLB-Chicago's 2016 financial results. Watch for your meeting invitation with event registration dates to arrive soon. Read More.

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    The 2016 Federal Reserve Payments Study Released

    The Federal Reserve Payments Study 2016 (2016 study) is the sixth in a series of triennial studies conducted since 2001 by the Federal Reserve System to estimate aggregate trends in noncash payments in the United States. Additional detailed information will be released in 2017 as the results of further analysis become final.

    U.S. noncash payments, including debit card, credit card, ACH, and check payments, are estimated to have totaled over 144 billion with a value of almost $178 trillion in 2015, up almost 21 billion payments or about $17 trillion since 2012.

    The number of debit card payments (including payments with prepaid and non-prepaid cards) grew to 69.5 billion in 2015 with a value of $2.56 trillion, up 13.0 billion or $0.46 trillion since 2012. The number of credit card payments reached 33.8 billion in 2015 with a value of $3.16 trillion, up 6.9 billion or $0.61 trillion since 2012. The number of check payments fell to 17.3 billion with a value of $26.83 trillion, down 2.5 billion or $0.38 trillion since 2012. Access Payments Study.

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    Responding to Claims of Potential ADA Website Compliance Violations

    Recently, there has been a resurgence of aggressive demand letters from plaintiffs’ law firms. Unlike the rash of demand letters regarding flimsy patent claims that many community bankers have experienced in the past, this new breed has found a novel source for trolling small businesses: the Americans with Disabilities Act (ADA).

    Community banks clearly support the ADA and work to ensure access to their services for individuals with disabilities. The demand letters in question allege that recipient community banks’ websites are not in compliance with the ADA’s online accessibility standards. The law firms claim that community banks and other businesses are violating Title III of the act by operating websites that are not sufficiently accessible to individuals with visual disabilities. Read More.

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    Internal Audit Considerations for CECL

    Successfully implementing the new credit impairment standard will require significant time and cross-functional resources. Upfront planning for data collection and developing and documenting new internal controls around the additional information required will help ensure a smooth transition.

    The current expected credit loss (CECL) model likely will change internal audit’s risk assessments and audit approach. Due to the estimation uncertainty, materiality of the loan loss provision, level of judgment on key data and assumptions, the new model is likely to give rise to one or more significant risks of material misstatement. Read More.

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    Investment News From THE BAKER GROUP

    Baker Market Update

    The National Federation of Independent Business’s Optimism Index jumped in December by the most it has since 1980 and is now at its highest level since 2002. Things are looking up for small businesses. Way up. An ever-increasing number of small business owners report that they are ramping up plans to expand their businesses and increase hiring as they perceive the advent of better times ahead. Let the good times roll. See Baker Market Update.

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    Power Your Potential with the 2017 SHAZAM Forum

    It’s important to be one step ahead of the game when it comes to the financial services profession. There is always a new trend or implementation right around the corner, which is why it’s vital to stay up to date in areas like cybersecurity, fraud or transaction routing. SHAZAM’s annual forum, which will be April 11-13 at Des Moines Marriott Downtown, is a great opportunity to learn directly from banking experts on current issues. Read More.

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    Generational Borrowing Habits: The Skinny on Boomers, GenX, Millennials, and iGen

    The traditional life-stage model has been very useful for community banks and their marketers. After all, if you’re a newlywed or just about to retire, your financial needs will be very different. Banks that want to grow their loan portfolios need to understand these generational differences. Learn More.

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    BankOnIT Deploys Virtual Engineers

    BankOnIT has incorporated a new service into its Banker’s Private Cloud® solution that allows technical issues to be addressed more accurately, more efficiently and with faster resolution times for client banks. These improved capabilities are only available through BankOnIT’s own virtual engineers.

    The Bankers Private Cloud® Virtual Engineers utilize artificial intelligence (AI) decision support systems while simultaneously working alongside human engineers. The combination provides capabilities that are not possible with people or AI systems alone. The virtual engineers have been able to resolve 85% more cases automatically. BankOnIT is a preferred marketing partner of CBAI. See BankOnIT Blog.

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    New Resources Help Utilize .BANK Domain

    The operator of the .BANK web domain, fTLD Registry Services, last week released updated guides on utilizing a .BANK domain as well as an implementation checklist. The resources are intended to support the planning and implementation of a .BANK domain; provide a framework for communicating a .BANK domain plan to employees, customers and stakeholders; and educate executives, technology teams and third-party providers. In addition, fTLD updated its frequently asked questions and list of third-party providers that can help banks with .BANK security requirements. Read More.

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    See a Digital Edition of the Latest Banknotes Magazine!

    Just CLICK HERE to view a flipbook of the January edition of Banknotes. Want to subscribe? Contact Andrea Cusick at cbaicom@cbai.com.

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    Is This the Year Someone in Your Bank Celebrates 50 Years in Community Banking?

    CBAI recognizes bankers marking 50 years in community banking with a beautiful, engraved commemoration and an article in Banknotes magazine. If 2017 is the year of the anniversary, there is no cost to the bank for this recognition. Contact Andrea Cusick at cbaicom@cbai.com or 800/736-2224.

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    CBAI LEGAL: Can RESPA Violation Cause Divorce?

    Over the years, there have been many claims of damages caused by alleged RESPA or TILA violations. Obviously, the most common are monetary damages or loss of a home through a foreclosure that was allegedly avoidable but for the lender’s violation. A unique claim of damages was discussed in a recent (January 11, 2017) opinion from the U.S. Court of Appeals for the Seventh Circuit: an allegation that stress from a loan default triggered by a RESPA dispute led to the dissolution of the mortgagors’ marriage. See Most Recent CBAI LEGAL.

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    CBIS Nicoud: Banks Can Protect Themselves from Auto-Loan Collateral Loss

    Regulators are warning that auto-loan delinquencies are rising according to a recent issue of American Banker magazine. Not as alarming as the previous 2008 subprime mortgage crisis, but these exposures can create collateral loss for community banks. Read More from CBIS Nicoud.

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    CBAI Announces Opening Speaker at 43rd Annual Convention

    CBAI is pleased to announce the Opening Breakfast speaker at CBAI’s 43rd Annual Convention & Expo on September 14-16, 2017, at the Crowne Plaza in Springfield. As a nine year old boy, John O’Leary was burned on 100 percent of his body and was given a one percent chance to live. His amazing journey of survival illustrates the incredible power of the human spirit. John and his family kept their experience private until his parents wrote a book, Overwhelming Odds, to thank the family and friends who supported them on their journey of healing. This book led to organizations around the world requesting to hear first-hand how John defied the odds. Since then, John has empowered more than 500,000 people to Live Inspired. In March 2016, his book On Fire: The 7 Choices to Ignite a Radically Inspired Life, became an instant #1 National Bestseller. His emotional story-telling, unexpected humor, and authenticity make each of his presentations truly transformational. Read More.

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    Community Bank Directors’ College Scheduled for January 24 & 25

    The Community Bank Directors’ College was developed in close cooperation with both state and federal regulators and is designed to teach individuals how to become more effective, capable, and supportive members of their banks’ board of directors. Its goal is to graduate directors who return to your bank more active, more knowledgeable, and more decisive. In effect, they will be an even bigger asset to your community bank. The College provides a thorough understanding of bank operations and bank directors’ responsibilities. The college is recommended for both new and seasoned bank directors. It is structured as two, two-day sessions. Either may be attended as a stand-alone course. The first session is being held at the CBAI Headquarters in Springfield on January 24 & 25, 2017, and the second session is June 27, & 28, 2017

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    Community Reinvestment Act Set for January 31 & February 1

    CBAI is pleased to offer the “Community Reinvestment Act,” the second quarter of the Community Bankers for Compliance (CBC) program in Springfield on January 31 and in Lisle on February 1. The Community Reinvestment Act has major impacts on all parts of the bank operation, and has new FAQ's which were promulgated in 2016. This session provides a comprehensive overview of all parts of the regulation. All of the FAQs, both existing and new, are included in the appropriate section of the manual, so the manual will be a complete review of the entire regulation. Additional information regarding this subject will be available to all attendees on the web. We conclude the day with a case study, time permitting. Compliance officers should attend this session. In addition, all personnel with responsibilities for CRA management, including senior management, auditors, and others should also consider joining us for this session. Leading this seminar is Bill Elliott, CRCM, senior consultant and manager of compliance with Young & Associates, Inc., Kent, OH.

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    Ag Lenders’ Conference Slated for February 7

    This jammed-packed day takes a look at a variety of issues facing agricultural lenders. Attend CBAI’s 2017 Ag Lenders’ Conference to develop the skills and tools to better understand the issues affecting your farm and agribusiness customers and to meet their credit needs. A mini-expo featuring the latest in products and services for ag lenders also highlights the day. Topics covered include “Managing Weather Risk: Planning for 2017” with Eric Snodgrass, director of the Undergraduate Studies Department of Atmospheric Science University of Illinois at Urbana-Champaign; “Global Economics: Points to Ponder” and “New Insights on Credit Analysis” with Dr. David Kohl, professor emeritus, Virginia Tech, Blacksburg, VA; and “Top Trends in Used Machinery” with Greg Peterson, aka “Machinery Pete.”

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