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     A Bi-Weekly News Bulletin for CBAI Members                   February 4, 2013 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • CBAI Supports Dallas FRB Plan on "Too-Big-To-Fail"
  • CBAI Applauds GAO Study of "Too-Big-To-Fail"
  • Sam Scott Named Honorary Chairman of CBAI Foundation Campaign
  • "Community Banks Are Special"
  • CBAI and ICBA Encouraged by CFPB “Qualified Mortgage” Rule
  • CFPB Rule on Loan Originators Includes Concessions
  • CFPB Delays Remittance Rule Implementation
  • ICBA’s Fine: “A Promising Start at the CFPB”
  • Final Rule Issued on Appraisals for Higher-Priced Mortgages
  • Still Time to Register for ICBA Convention
  • Advertising Space Available in the E-News
  • Health-Care Reform Update from CBIS-Nicoud
  • Share Your Story, Celebrate Community Banking!
  • CBAI Compensation Survey Now Available Online
  • A Top 10 To-Do List for Community Bankers in 2013
  • Federal Reserve Plans New Study to Examine Nation’s Payments Usage
  • Scams Target Seniors
  • Baker Market Update
  • Economic Reports for Fed Districts Released
  • FSA Announces Signup for Farm Programs
  • Save The Date! CBAI Capital Conference - April 17, 2013
  • 31st Annual CBAI Call on Washington to be Held April 23-26, 2013
  • Technology Conference Scheduled for February 7, 2013
  • Lending Series Scheduled for February 12-14, 2013
  • Banking Essentials Set for February 19 & 20, 2013
  • Creating Solid Loan Demand Scheduled for February 26, 2013


  • CBAI Supports Dallas FRB Plan on "Too-Big-To-Fail"

    The Federal Reserve Bank of Dallas recently published a proposal titled Financial Stability: Traditional Banks Pave the Way. CBAI subsequently wrote Richard W. Fisher, Dallas Federal Reserve Bank President and CEO, expressing strong support for his prescription to end "too-big-to-fail."
    Read More.

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    CBAI Applauds GAO Study of "Too-Big-To-Fail"

    CBAI applauds the decision by the Government Accountability Office to study the economic benefits received by the “too-big-to-fail” megabanks as a result of actual or implied government bailouts. In the waning days of the 112th Congress U.S. Senators David Vitter (R-LA) and Sherrod Brown (D-OH) introduced legislation requiring the GAO to conduct this study (Vitter-Brown GAO Study on Government Subsidies of Megabanks). While this bill passed the Senate by unanimous consent, it was not taken up in the Republican-controlled House. In January Senators Vitter and Brown wrote the GAO to encourage this study, and last week the GAO announced it will conduct the study.
    Read More.

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    Sam Scott Named Honorary Chairman of CBAI Foundation Campaign

    CBAI Past Chairman and former Outstanding Member Sam Scott, chairman of Scott State Bank, Bethany, was named honorary chairman of the new fund-raising campaign for the CBAI Foundation for Community Banking.
    Click here to view details of Scott’s background and the enhanced scholarships programs of the Foundation.

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    "Community Banks Are Special"

    BankNews Editor Bill Poquette opines about the FDIC’s recent outreach to community banks, noting that the project confirms that community banks are special. He added that regulators "have not done enough to recognize the unique and vital role of community banks with policies that aid and abet their mission, rather than thwart it."
    Read More.

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    CBAI and ICBA Encouraged by CFPB “Qualified Mortgage” Rule

    ICBA and CBAI are encouraged that the Consumer Financial Protection Bureau’s final rule on consumers’ ability to repay mortgage loans includes accommodations for community banks. Provisions structuring the qualified mortgage standard as a legal safe harbor and treating certain balloon-payment loans as qualified mortgages will help Main Street lenders continue providing mortgage credit to meet the needs of their customers and communities.
    Read ICBA Release. Read CFPB Summary. Read CFPB Fact Sheet.

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    CFPB Rule on Loan Originators Includes Concessions

    The CFPB has released the final rule on mortgage loan originator qualification and compensation practices. The rule clarifies acceptable mortgage loan originator compensation structures, including participation in both qualified and non-qualified bonus and profit-sharing plans. Originators will be able to participate in both types of plans which CBAI and ICBA strongly supported.

    The rule also waived a provision to prohibit consumers from paying upfront discount points and fees to lower the interest rate. The bureau appears to have incorporated many suggestions offered by the CFPB Community Bank Advisory Council which is chaired by CBAI Past Chairman Robin Loftus of Security Bank, SB, Springfield. The majority of the rule becomes effective on January 10, 2014.
    See CFPB Release.

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    CFPB Delays Remittance Rule Implementation

    The CFPB this week announced a temporary delay in the effective date of its final rule on remittance transfers. In a comment letter sent to the bureau last week, the ICBA expressed appreciation that the CFPB will revisit certain issues of concern to community banks such as liability for consumer error and disclosure of foreign taxes and recipient bank fees. See CFPB Release. See ICBA Comment Letter.

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    ICBA’s Fine: “A Promising Start at the CFPB”

    In a recent assessment of the CFPB, ICBA President Cam Fine noted, “The CFPB, under Cordray’s leadership, so far has demonstrated – with deeds and not just words – that it is willing to listen to our concerns and ideas related to preserving a diversified home finance system that will continue to fully include community bank lenders.”
    See Fine Points.

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    Final Rule Issued on Appraisals for Higher-Priced Mortgages

    Last week six federal financial regulatory agencies issued the final rule that establishes new appraisal requirements for “higher-priced” mortgage loans. The rule exempts qualified mortgages, temporary bridge loans and construction loans, loans for new manufactured homes, and loans for mobile homes, trailers and boats that are dwellings.
    See FDIC Release.

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    Still Time to Register for ICBA Convention

    The “
    Greatest Community Banking Show on Earth” will take place on March 11-15, 2013, in Las Vegas. The ICBA Convention and Techworld is a showcase of talented speakers, educators, and bank service professionals. More than 2,000 community bankers regularly attend this informative event.

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    Advertising Space Available in the E-News

    Your firm could have been shown in this issue of E-News. To make sure you don’t miss another issue, call to advertise today!
    Read More.

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    Health-Care Reform Update from CBIS-Nicoud

    Mike Mahorney, benefits account executive of CBIS -- Powered by Nicoud Insurance, takes a look at what Obamacare may bring. With 2013 upon us, we are on the final stretch before many of the trigger points of Obamacare take effect in 2014. Many are asking questions such as, “What are these trigger points?”, “How do they affect our bank?”, “How do we prepare?” and “What actions should we be taking now?”
    Read More.

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    Share Your Story, Celebrate Community Banking!

    Financial literacy has become a modern-day dimension of community banking. ICBA's Independent Banker (IB) magazine would like to talk to community bankers whose banks actively support financial literacy efforts in their communities for a feature article that will appear in the April issue of the magazine.

    April is Community Banking Month and Financial Literacy Month. Share your story and help the community banking profession celebrate both contributions to your community!

    Please email a brief paragraph outlining your efforts to
    magazine@icba.org. Don’t forget to include your contact information.

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    CBAI Compensation Survey Now Available Online

    How does your bank compensation stack up? CBAI’s 23rd Annual Officer Compensation Survey registers officer salary, incentives, benefits, total compensation and more. It also tabulates support personnel benefits and compensation, plus compensation to bank directors. Peer results will include information based on bank asset size and geographical location.

    CBAI members that participate receive the results for free. Non-members that participate may purchase the results for $300.

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

    To complete the actual survey, click here.

    For questions, contact Andrea Cusick, SVP Communications, at cbaicom@cbai.com.

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    A Top 10 To-Do List for Community Bankers in 2013

    If you believe in the old adage that “the more things change the more they stay the same,” the thoughts of Northstar Strategies on making 2013 a better year will resonate. The seismic shifts in the banking profession over the past five years have undoubtedly presented new challenges, but if you are a community banker, it would be unwise to abandon the principles that made you successful pre-2008. To access a list of subjects that will help get the New Year off to good start,
    click here.

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    Federal Reserve Plans New Study to Examine Nation’s Payments Usage

    The Federal Reserve’s Retail Payments Office (RPO) will conduct a new study to determine the current volume and composition of electronic and check payments in the United States. This triennial study continues the research conducted by the Federal Reserve in 2001, 2004, 2007, and 2010.

    “While the Federal Reserve's 2013 Payments Study will continue to build upon trend information gathered in previous studies, this year's study casts a broader net across the evolving payments landscape," said Jim McKee, RPO SVP and the study’s executive sponsor. “The 2013 study will provide additional data on electronic payment methods, cash deposit and withdrawal information and, for the first time, limited third-party fraud information, in an effort to provide the industry with further insight on emerging trends."

    “The industry-wide participation in past studies has been extensive, appreciated and necessary in allowing us to continue to offer meaningful results,” McKee said. “We hope to continue to garner robust industry support in this mutually beneficial effort."

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    Scams Target Seniors

    The Illinois Department on Aging (“Agency”) and Springfield Police have reported a scam aimed at older citizens. In recent cases, the scammer telephones older citizens claiming to be an employee of the senior's bank to allegedly to rectify a situation in which a bank employee is supposedly stealing money from the senior’s account(s). The scammer convinces the senior that in order to help build a case against the phony thief, the senior should cooperate with the investigation by withdrawing money from the affected account and delivering it to a person who is, in fact, the scammer. In two recent cases in Springfield, the scammer took $7,000 from two seniors.
    See Agency’s News Release.

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    Baker Market Update

    If there is anyone out there who was not surprised by Lance Armstrong’s tearful confession to Oprah this week, maybe you were surprised by Thursday’s report of a 12.1% jump in Housing Starts last month.
    Read More.

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    Economic Reports for Fed Districts Released

    The “Beige Book” economic reports for the St. Louis and Chicago Federal Reserve Districts were released last week and provided evidence of modest economic expansion and easing credit conditions.
    See St. Louis Beige Report. See Chicago Beige Report.

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    FSA Announces Signup for Farm Programs

    The USDA’s Farm Service Agency (FSA) this week reminded producers that the Tax Relief Act of 2012 extended the 2008 Farm Bill for many commodity, disaster, and conservation programs through 2013. The extended programs include the Direct and Counter-Cyclical Payments Program (DCP), the Average Crop Revenue Election Program (ACRE), and the Milk Income Loss Contract Program (MILC). Signups for DCP and ACRE will begin on February 19, 2013.
    See Release.

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    Save The Date! CBAI Capital Conference - April 17, 2013

    Please save the date! CBAI’s 29th Annual Capital Conference will take place on Wednesday, April 17 at the State House Inn in Springfield. More details to follow.

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    31st Annual CBAI Call on Washington to be Held April 23-26, 2013

    Call on Washington is CBAI's annual lobbying trip to our Nation's Capital. Now in its 31st year, scores of community bankers from across Illinois will join with their colleagues from throughout the nation to meet with Members of Congress and federal bank regulators to express their opinions on important bank issues. YOUR VOICE CAN MAKE A DIFFERENCE! Now is the time to get involved. PLEASE PLAN TO JOIN US. More details to follow.

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    Technology Conference Scheduled for February 7, 2013

    CBAI’s 2013 Technology Conference features targeted solutions to meet the demands of community banks. Participants benefit from informative general and break-out sessions and roundtable discussions with your peers on the hottest technology issues. With more than 35 of the nation’s leading financial-service providers showcasing the latest products, participants also find solutions in the Exhibit Center. The Tech Conference combines a hands-on technology show with tech-targeted educational sessions. The topics are relevant and the speakers are experts. You are exposed to a multitude of new ideas at this year’s conference.

    There are still exhibit booths available! If you would like to exhibit at this year’s conference, Click Here.

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    Lending Series Scheduled for February 12-14, 2013

    CBAI offers
    three lending seminars on consecutive days in February, which may be attended as a series, or each may be attended as a stand-alone course. Analyzing Cash Flow from Income-Producing or Rental Real Estate, Including Global Cash Flow demonstrates (from case studies) the key variables and concepts for determining CRE cash flow, plus primary analytical techniques such as transaction-level stress-testing. Appraisal Guidelines and Reviewing/Interpreting CRE Appraisals briefly reviews the major issues of the entire appraisal process, including selecting and engaging a qualified appraiser, but focuses on reviewing the report for integration into the overall credit analysis. Managing Your Bank’s Commercial Real Estate Portfolio covers the major issues involved in managing a community bank's CRE portfolio, from the types of reports made to the board and senior management, to activities at the lender level to monitor individual loans. All three seminars are led by Richard Hamm, who provides consulting and training to banks and businesses as owner of Advantage Consulting & Training in Huntsville, AL.

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    Banking Essentials Scheduled for February 19 & 20, 2013

    A must for the newer community bank employee, this series is designed to provide a complete knowledge of banking principles and operations. It is also geared toward veteran employees as a refresher course. The four quarters are structured as two,
    two-day sessions, to cut down on travel for your convenience. As such, quarters one and two are offered on consecutive days in August and quarters three and four are offered on consecutive days in February. All seminars are held at the CBAI Headquarters in Springfield. Adam Witmer of Young & Associates, Inc., leads the third quarter of the Banking Essentials Series, “Regulatory Guidelines and Examinations.” James D. Rechel, president of The Rechel Group, Inc., which specializes in security intervention solutions, leads the fourth quarter, “Integrated Bank Security, Compliance, & Customer Service.”

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    Creating Solid Loan Demand Scheduled for February 26, 2013

    Creating solid loan demand is one of the major challenges facing community banking. Banks must balance the demand against their credit policies and the type of customers they wish to serve. The most effective approach to generating loans is to capture loans that your customers have at other institutions. In this informative and entertaining
    seminar, that strategy, as well as the marketing and sales efforts needed to encourage your customers and prospects to bring already existing loans at other financial institutions to your doorstep, is discussed. You also learn the most effective strategies for regenerating your mortgage efforts. Discover how to generate loan opportunities from commercial prospects as well. Learn the practices of the most successful community banks. Any commercial lender, business development officer, retail lender, mortgage originator, branch manager, or any other banker that must generate additional loan opportunities in a community bank would benefit from attending this seminar. Leading this seminar is Duane F. Sobecki, CEO of Focused Results, LLC, a sales strategy, consulting, and training firm.

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