Connected To Community Banking!
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 20, 2016

Graphic
Graphic
Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • CBAI Ag Lenders’ Conference Scheduled for February 3
  • FHFA Responds to the Powerful Voice of Community Banks
  • CBAI's 26th Annual Officer Compensation Survey Now Online!
  • CBAI Supports ICBA’s Position on Proposed FDIC Assessment Changes
  • Bair: Stop Treating Small Banks as If They Caused the Crisis
  • Time to Dismiss the ‘Big Myth’ About Fannie and Freddie
  • Hurley: Recent Bank Guilty Pleas Aren’t Enough
  • Community Banker: Differentiate Between Community Banks and Wall Street
  • De Novo Market Could Be Warming Up
  • Five Things Banks Must Do When Adopting Electronic Signatures
  • Investment News From THE BAKER GROUP
  • Rural Index Falls Below Growth Neutral for Fourth Straight Month
  • Fed’s Beige Book: Economic Activity Up in 9 of 12 Districts
  • Early-Bird Registration Rate Extended for ICBA Convention
  • BancVue Has New Name, Investment Partner, and Growth Plans
  • Harland Clarke: Yes, It Really Is Possible to Grow Non-Interest Income
  • IRS Makes Free Identity Theft Videos Available to Taxpayers
  • CBIS Nicoud: Record Flooding Serves as a Stark Reminder
  • CBAI LEGAL: Required Records of Hours Worked by Bank Officers
  • How Online Fraud Will Evolve in 2016
  • Plan Now for "America Saves Week" on February 22-27
  • CBAI Announces Group Meeting Schedule and After-Dinner Presentation
  • Cyber-Security Seminar Set for January 26 & 27
  • CBC Program: RESPA in a TRID World To Be Held February 2 & 3


  • CBAI Ag Lenders’ Conference Scheduled for February 3

    CBAI will offer it's annual “Ag Lenders’ Conference” at the Crowne Plaza in Springfield on February 3, 2016. This jammed-packed day takes a look at a variety of issues facing agricultural lenders. Attend CBAI’s 2016 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 “Illinois Farmland Values – At an Interesting Intersection” with Dale Aupperle, AFM, ARA, president of Heartland Ag Group, Ltd., Forsyth, IL; “Chapter 12 Bankruptcy Reorganization” with Kevin Stine, attorney and shareholder, Mathis, Marifian & Richter, Ltd., Belleville, IL; and “Credit Risk 2016: Answers to Critical Questions” and “Effective Traits of a Winning Ag Lender-Producer Team” with Dr. David Kohl, Professor Emeritus, Virginia Tech, Blacksburg, VA.

    Back to top


    FHFA Responds to the Powerful Voice of Community Banks

    The Federal Housing Finance Agency (FHFA) has made a significant concession to community banks in its final rule regarding membership in Federal Home Loan Banks. The FHFA will not require members to maintain an ongoing minimum level of specified residential mortgages as a condition of eligibility for membership in Federal Home Loan Banks. This positive development was the direct result of the FHFA receiving more than 1,300 comment letters from primarily community banks (and their associations), all but a small handful urging the FHFA to not implement the harmful proposed rule. Read CBAI Release. Read FHFA Final Rule.

    Back to top


    CBAI's 26th Annual Officer Compensation Survey Now Online!

    How does your bank’s compensation stack up? CBAI’s 26th Annual Officer Compensation Survey registers officer salaries, incentives, benefits, total compensation and more. It also tabulates support personnel’s benefits and compensation, plus compensation to bank directors. Peer results will include information based on bank asset size and geographical location. RESULTS FREE TO CBAI MEMBERS THAT PARTICIPATE!

    For a .pdf of the survey to use as a worksheet, click here.

    To complete the actual survey, click here.

    Back to top


    CBAI Supports ICBA’s Position on Proposed FDIC Assessment Changes

    ABA Sides with Mega Bank Position

    The ICBA recently responded to an FDIC Notice of Proposed Rulemaking (NPR) regarding changes to FDIC assessments. The ICBA’s response on behalf of the nation’s community banks differs radically from the joint response by the ABA, the Financial Services Roundtable (“representing the largest integrated financial companies”) and The Clearing House (“owned by the world’s largest commercial banks”). CBAI proudly supports the community bank position on this important issue and urges the FDIC to incorporate ICBA’s recommendations in the final rule. Read ICBA Comment Letter. Read ABA Comment Letter.

    Back to top


    SHAZAM’s 2016 Forum will be here before you know it, so be sure to add it to your list of “must attend” conferences. We have a full schedule of industry experts ready to share valuable information to keep your organization operating successfully. You won’t want to miss this great opportunity to learn, network with industry peers and have a great time! Early bird registration ends January 31 so register today!



    Bair: Stop Treating Small Banks as If They Caused the Crisis

    Former FDIC Chairman Sheila Bair recently urged regulators and Congress to stop treating community banks as if they caused the financial crisis. She wrote, “In their understandable eagerness to show a toughened regulatory posture to a disillusioned public, regulators cast a wide supervisory net. In the process, they failed to sufficiently differentiate regional and community banks — bread-and-butter lenders that for the most part remained healthy and profitable before, during and after the crisis — from the main actors in the subprime debacle: the originators of toxic mortgages and the big firms that structured all those exotic securities and derivatives products on top of them.” Read Bair Article.

    Back to top


    Time to Dismiss the ‘Big Myth’ About Fannie and Freddie

    Wall Street financial institutions, not Fannie Mae and Freddie Mac, were the chief culprits of the 2008-09 financial crisis, according to a new op-ed by Josh Rosner of Graham Fisher & Co. He wrote on InsideSources that the government-sponsored enterprises’ loan inventory performed relatively well during the crisis, which was set off by the too-big-to-fail megabanks’ risky mortgage-backed securities. He noted that today the greatest risk to the financial system is excessive concentration with five banks controlling 40 percent of the nation’s deposits. Read Rosner’s Op-Ed.

    Back to top


    Hurley: Recent Bank Guilty Pleas Aren’t Enough

    If the Justice Department is going to make headway this year in convincing critics that it is serious about prosecuting systemically important banks, recent guilty pleas aren’t enough, Boston University’s Cornelius Hurley wrote in a new op-ed. Recent pleas were defined by what didn’t happen—no licenses yanked, no charters revoked—signaling that regulators continue to think that some institutions remain too big to jail.

    “Most would argue, however, that there should be some proportionality between the offense and the punishment,” Hurley wrote. “As it stands now, there is no proportionality, just a ‘Get out of Jail Free’ card for the big-bank perpetrator.” Read Hurley’s Op-Ed.

    Back to top


    Community Banker: Differentiate Between Community Banks and Wall Street

    In a recent guest column in the Waco Tribune, Texas community banker David Littlewood cited the distinction between community banks offering personalized service and the megabanks following a one-size-fits-all approach. The president of First National Bank in McGregor, Texas, noted that community banks are the backbone of small businesses while risky practices at the largest banks drove the 2008 financial meltdown.

    “Basically, small banks don’t put all of our eggs in one basket, just like we shouldn’t put big banks and community banks together in the same garbage bag,” Littlewood wrote. “So while sitting in silence after watching ‘The Big Short,’ ears ringing with indignant rage at the thought of how so many on Wall Street could play craps with the American and global economy for personal gain, remember: Not all bankers are bad, greedy or unscrupulous.” Read More.

    Back to top


    De Novo Market Could Be Warming Up

    According to some new bank formation advisors, there will likely be more new bank charter applications in the relatively near future across the country. They also noted that a new bank requires more capital and a stronger and deeper management team than ever before. CBAI has continually urged regulators, especially the FDIC, to be more accommodative in the chartering process. Read More.

    Back to top


    Five Things Banks Must Do When Adopting Electronic Signatures

    Moving to electronic signatures can please customers and help your bottom line – and it’s not rocket science to install. But “easy” is the wrong word – it’s not complicated, but only if you know the landscape, pay attention to detail, and make the move for the right reasons.

    To help you evaluate this decision, here’s a list of five things a bank must do before adopting electronic signatures. If you go forward with an e-signature solution, make sure you have covered these points before you begin. Read More.

    Back to top


    Investment News From THE BAKER GROUP

    Baker Market Update

    Retail sales fell by 0.1% in December. As a harbinger of fourth-quarter growth, that raises concerns about the momentum of consumer spending. For all of 2015, the 2.2% increase represents the weakest sales year since 2009. The perception of improving labor-market conditions was bolstered by a jump in the Fed’s Labor Market conditions Index to 2.9; up from the previous 2.7. See Baker Market Update.

    Baker Economic Brief

    Bond prices are sharply higher this morning on a relatively weak CPI report, and continuing anxiety about crude oil and the global economy. The 10yr Treasury yield is now 1.98%, its lowest point since last October and the 2yr is .83%, more than 20bps below its close on the day the Fed tightened last month. Crude oil prices remain under pressure as WTI is now trading at $27.67 / bbl. Turmoil from overseas is pushing the safe-haven trade in US Treasuries as China reported a 6.9% growth rate, its lowest since 1990. See Baker Economic Brief.

    The Baker Group Webinar Series

    Back to top


    Rural Index Falls Below Growth Neutral for Fourth Straight Month

    The Creighton University Rural Mainstreet Index for December fell from November’s weak reading, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. Overall: The Rural Mainstreet Index (RMI), which ranges between 0 and 100, sank to 41.5 from November’s 43.7. This is the fourth straight month the overall index has declined, reflecting weakness stemming from lower agriculture and energy commodity prices and from downturns in manufacturing. Adding to the economic malaise was the free fall in beef prices over the past month. Bank CEOs expect another 5.9 percent decline in farmland over the next year. Read Mainstreet Economy Report.

    Back to top


    Fed’s Beige Book: Economic Activity Up in 9 of 12 Districts

    The Federal Reserve’s latest Beige Book indicated that economic activity expanded in nine of its 12 districts based on recently collected data. Reports on the banking and finance sector were overall positive. Lending activity improved, loan demand grew in three districts, and credit conditions generally improved. The residential and commercial real estate markets generally improved, consumer spending grew, and manufacturing and agricultural conditions weakened. The St. Louis and Chicago FRBs reported modest economic growth. This report will be used at the Fed’s meeting on January 26-27. See Fed’s Beige Book Report.

    Back to top


    Early-Bird Registration Rate Extended for ICBA Convention

    Early-bird registration for ICBA Community Banking LIVE—which offers $300 in savings—has been extended to Friday, February 5. The most comprehensive educational and networking event in the profession is scheduled for March 6-10 in New Orleans. Rich and trending content at more than 60 education sessions; dynamic general session speakers including Tony La Russa, John Stossel , and Josh Linkner; peer networking opportunities; and the largest venue of products and services on planet Earth are on the agenda. Learn More and Register.

    CBAI and Its Business Partners to Host Reception for Illinois Community Bankers

    Illinois community bankers, spouses and guests attending the ICBA Convention are invited to join with their colleagues at a reception compliments of the Community Bankers Association of Illinois (CBAI) and its business partners The Baker Group, iHELP, KASASA, SHAZAM, and Wolters Kluwer. This popular event is scheduled for 5:00 p.m. to 7:00 p.m., Monday, March 7, 2016, at the Hilton New Orleans Riverside. Bankers registered to attend the convention should expect to receive an invitation to the reception during the first week of February.

    Back to top


    BancVue Has New Name, Investment Partner, and Growth Plans

    BancVue, a preferred service provider of Community BancService Corporation, is partnering with a private equity firm that supports the development of high-growth companies such as BancVue, called The Riverside Company. As a result of the new partnership, “BancVue” is now “Kasasa.” Banks’ relationship teams remain the same as the firm’s leadership and employee base stay in place to ensure a seamless experience for its clients. While the Riverside team won’t change the day-to-day delivery of its service to banks, it does bring an expert, seasoned team to serve as strategic-thought partners. Read Press Release.

    Back to top


    Harland Clarke: Yes, It Really Is Possible to Grow Non-Interest Income

    Non-interest income comprises approximately 34 percent of bank income and almost 27 percent of credit union income. The problem is fees - the major source of non-interest income - are generally unpopular. They are often cited as a reason why account holders switch financial institutions. So the key to building non-interest income is doing so in ways that are less painful for account holders. Read More.

    Back to top


    IRS Makes Free Identity Theft Videos Available to Taxpayers

    In coordination with the state revenue departments and the tax industry, the Internal Revenue Service is releasing a series of YouTube video tax tips designed to provide critical information to help people protect their tax and financial data. The videos, part of the continuing Security Summit effort combating identity theft and refund fraud, are part of an ongoing effort to educate taxpayers and provide them tools to stay safe online. The second identity theft video tip features Rick Reames III, Director of the South Carolina Department of Revenue and is available now. See Series of YouTube Video Tax Tips. See IRS Release.

    Back to top


    CBIS Nicoud: Record Flooding Serves as a Stark Reminder

    We know that, if we choose to operate a business or own a home in a designated high-risk flood zone, we can expect to be threatened by flooding, if not dramatically impacted at some point in our lives.

    But the reality is that a substantial amount of flooding’s consequences are suffered outside FEMA-designated risk zones. Read More from CBIS Nicoud Insurance Services.

    Back to top


    CBAI LEGAL: Required Records of Hours Worked by Bank Officers

    An Illinois Department of Labor rule with which many employers may not be familiar requires that an employer track the daily hours worked in a work week by anyone employed, including senior corporate officers who are exempt from federal Fair Labor Standards Act overtime benefits. However, the “penalty” for non-compliance might not compel employers to insist that CEOs, EVPs, etc. report their hours worked to the H.R. Department. See Most Recent CBAI LEGAL.

    Back to top


    How Online Fraud Will Evolve in 2016

    While 2015 is drawing to a close, the security fraud community is preparing for more battles ahead in 2016. And next year, consumer-facing web and mobile apps are up against a much more sophisticated and prolific enemy as bad actors continue to evade traditional security defenses, leverage the latest mobile hacker tools to impersonate legitimate users and take control of consumer accounts en masse.

    To prepare users for the year ahead, researchers at DataVisor released its top fire online fraud predictions for 2016. See Predictions.

    Back to top


    Plan Now for "America Saves Week" on February 22-27

    America Saves Week is an annual opportunity to help prmote positive savings behavior and for consumers to assemble their own savings plans. Learn more about why saving is to important and how to get started helping your customers begin building their nest eggs. Read More.

    Back to top


    CBAI Announces Group Meeting Schedule and After-Dinner Presentation

    CBAI leaders and executive staff are visiting 11 locations on the 2016 Group Meeting tour this spring. Bankers from more than 200 banks typically participate in these enjoyable and informative events each year. Consisting of an optional golf outing and a dinner meeting, Group Meetings also provide an excellent opportunity to get the latest information on key banking issues and catch up with friends and peers. (Note: The Group 1, 2 & 3 meeting will include a lunch, meeting, and golf outing.)

    This year’s after dinner presentation is “The FinTech Revolution,” presented by Michael Peterson, manager of financial institution sales at FiTech in Fort Worth, TX. Find out how community banks fit into and compete in the evolving payments landscape. Make plans now to attend! See 2016 Group Meeting Schedule.

    Back to top


    Cyber-Security Seminar Set for January 26 & 27

    What do these four topics have to do with each other? They are four of the top regulatory hot topics and examination focus areas for 2016. As we know, regulators have been very focused on cyber security and have engaged in several cyber-security initiatives over the last several years. In June of 2015 the agencies issued the Cyber Assessment Tool and while not mandatory, it is definitely an expectation that financial institutions will complete the Assessment. If you look at the declarative statements in Part Two of the Assessment you will noticed a significant number that relate to management oversight, outsourced third-party risk-management (vendor management) and incident response. More recently, the regulators updated the Business Continuity Planning Handbook with Appendix J: Strengthening the Resilience of Outsourced Technology Services which, while in the Business Continuity Planning Handbook, has ties to outsourcing; and the Management Handbook that has 53 references to cyber security. Leading this seminar is Susan Orr, founder of Susan Orr Consulting, Ltd. Orr is a leading financial services expert with vast regulatory, risk-management, and security best-practice knowledge and expertise. Details Here.

    Back to top


    CBC Program: RESPA in a TRID World To Be Held February 2 & 3

    The second quarterly Community Bankers for Compliance (CBC) seminar, this program focuses on what RESPA still requires, even though most mortgage loans are governed more by the TRID rules than RESPA. Even with the advent of TRID, the actual RESPA regulation has not changed substantially and still contains many features that need to be considered in the average mortgage loan. In addition to reviewing the regulatory language RESPA and its commentary, we will take a look at the recently changed examination procedures regarding RESPA. The latest OCC version was actually published prior to TRID (April 2015), so we will not focus extensively on this slightly out-of-date version. However, during the last quarter of 2015, both the FDIC (55 pages) and the Federal Reserve (84 pages) issued new examination procedures. We will include relevant portions of all of the examination manuals to offer a broad perspective regarding what the examiners are being told by their agencies to review, with particular emphasis on how these new examination procedures will or could impact your institution. There are circumstances when the Good Faith Estimate and HUD-1 still must be used, however, they are extraordinarily limited. We will discuss those situations in which they are still required and the examination procedures for both of these documents. However, we will not perform a line-by-line review regarding the completion instructions of these forms. Other than the limitation regarding the GFE and HUD-1, we will fully review all other sections of the regulation and the accompanying exam procedures. Leading this seminar is Bill Elliott, CRCM, senior consultant and manager of compliance at Young & Associates, Inc., Kent, OH.

    Back to top


    CBAI




    CBAI
    PROFESSIONAL
    DEVELOPMENT PROGRAMS
    THROUGH 03/15/2016











    CBAI
    TELEPHONE/WEBCASTS THROUGH 02/29/2016









    CBAI
    RECOMMENDED SERVICES



    CBAI
    INSURANCES



    CBAI
    FOUNDATION



    CBAI
    PUBLICATIONS


    Finer Points Blog

    800.736.2224 (IL) | 217.529.2265 | www.cbai.com

    DISCLAIMER:The association is not responsible for and has no control over the subject matter, content, information, or graphics when viewing links attached to this association's site. If you do not wish to receive e-mails from Community Bankers Association of Illinois (CBAI), 901 Community Drive, Springfield, IL 62703, through CBAI in the future, please click here. - OR - If you would like to be removed from the CBAI e-mail database, please click here.

    © 2016 Community Bankers Association of Illinois. All Rights Reserved.