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                            February 4, 2015

Graphic
Graphic
Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • WSJ Article Highlights Community Bank Gains in Washington
  • Staff Visit to Washington Reinforces Support for Community Bank Positions
  • Register Now for CBAI's 31st Annual Capital Conference - April 15, 2015
  • CBAI Announces 2015 Group Meetings Schedule
  • 2015: The Year Banks Take Back Banking
  • 73 Percent of Community Banks Say Regulations Inhibit Mortgage Lending
  • CBAI Meets with FDIC's New Chicago Regional Ombudsman
  • The Time is Coming for De Novo Banks
  • Preparing for the New ACH Rules in 2015 and 2016
  • Free iHELP Webinar on How to Facilitate Customers' Student-Loan Requests
  • Investment News From THE BAKER GROUP
  • Take This Week's CBAI Quick Poll
  • SHAZAM: Advertising at the ATM
  • CBAI Legal: Contractor’s Platting Insufficient to Enforce Mechanic’s Lien
  • Recruiting New Bank Directors - Is Your House In Order?
  • CBAI's 2015 Education Catalog Now Available
  • Banking Essentials Scheduled for February 10 & 11
  • Seminar for the Community-Bank Attorney Set for February 13
  • Commercial Lending Institute To Be Held February 18-20
  • Deposit Documentation Scheduled for February 23-26


  • WSJ Article Highlights Community Bank Gains in Washington

    A Wall Street Journal article this week cited the growing influence of community banks and ICBA in Washington as evidenced by recent victories to relax regulations on QM rules and capital rules, and mandate representation on the Federal Reserve Board. In the article, ICBA President and CEO Cam Fine said the association’s legislative requests are key to boosting economic growth and that the nation’s community banks “are the local lenders” for consumers and small businesses nationwide. “We have at least one community banker in each congressional district in the nation,” Fine declared. “And in most districts we have multiple members. It makes for good grassroots.” CBAI works closely with ICBA to attain regulatory relief for community banks and believes more good results will occur during 2015. See WSJ Article.

    Back to top

    Staff Visit to Washington Reinforces Support for Community Bank Positions

    David Schroeder, CBAI’s vice president of federal governmental relations, visited every office of the Illinois Congressional delegation as well as the Federal Housing Finance Agency (FHFA), Office of the Comptroller of the Currency (OCC), Consumer Financial Protection Bureau (CFPB), and the Independent Community Bankers of America (ICBA) to discuss issues which are vitally important to Illinois’ community banks. See More.

    Back to top

    Register Now for CBAI's 31st Annual Capital Conference - April 15, 2015

    Capital Conference is slated for Wednesday, April 15. Headquarters are located at the Springfield Hilton Hotel in downtown Springfield. This is your opportunity to make your voice heard with your local legislators and banking regulators.

    Registration is only $100 per institution (after April 1, $150) and covers the cost for ALL, so please bring as many officers, directors, and employees as you wish. Register Here.

    Back to top

    CBAI Announces 2015 Group Meetings Schedule
    After-Dinner Presentation Selected

    CBAI leaders and executive staff are visiting 11 locations on the 2015 Group Meeting tour this spring. This year’s after dinner topic is “Evolving Your Branch to Achieve Peak Performance,” presented by Phil Walter, regional sales manager for Welch Systems, Inc., Peoria. Progressive community banks are transforming their branch operations by opting for interactive automated kiosks and an improved, more sales-oriented functional design. The branch isn't entering an end-cycle; rather it is evolving with more of a concentration on sales than service and greater operational efficiency. This presentation explores the many benefits of branch transformation to achieve peak performance.

    Consisting of an optional golf outing and a dinner meeting, each Group Meeting also provides an excellent opportunity to get the latest information on key banking issues and catch up with friends and peers. (Note: The Groups 1, 2 & 3 meeting will include a lunch, meeting, and golf outing.) Make plans now to attend! More Details Here.

    Back to top

    2015: The Year Banks Take Back Banking

    According to banking analyst Chris Nelson, 2015 is the year banks will begin to take back banking from nonbank competitors. Banks hold a big advantage with their ability to protect personal consumer information in an era of retailer data breaches. He believes the bank of the future will travel with the consumer via mobile banking applications that support their financial lifestyles. Read More.

    Back to top

    73 Percent of Community Banks Say Regulations Inhibit Mortgage Lending

    Approximately three-quarters of community bankers responding to an ICBA survey said new mortgage regulations are keeping them from making more residential mortgage loans.

    Among its other findings, the 2014 Community Bank Lending Survey also found that:

    • significant percentages of community banks are no longer active in the residential mortgage market, are considering an exit, or are exiting the market;
    • 78 percent of respondents reported increasing the number of staff members dedicated to lending compliance over the past five years; and
    • 66 percent of respondents said they do not provide loans that are outside the CFPB's Qualified Mortgage definition or would only do so in special cases.
    ICBA said the results show the negative impact of excessive community bank regulation and the need for Congress to act on ICBA’s Plan for Prosperity in the 114th Congress. The plan includes a variety of provisions to protect community banks from the CFPB’s mortgage rules and other regulatory burdens. Read ICBA Release. Read Executive Summary. View Survey Infographic. Read ICBA Plan for Prosperity.

    Back to top

    CBAI Meets with FDIC's New Chicago Regional Ombudsman

    At this recent meeting, CBAI's David Schroeder highlighted the importance of CBAI’s exclusive representation of Illinois’ community banks and reviewed CBAI's Federal Policy Priorities, which includes the need to address too-big-to-fail and support for tiered regulation for community banks. CBAI’s position on abolishing the Farm Credit System was also discussed. Read More.

    Back to top

    The Time is Coming for De Novo Banks

    CBAI has long advocated new bank chartering as a means of perpetuating the community banking profession. CBAI, in fact, offers guidance in the chartering process to investor groups. In recent years, however, new charters have been nonexistent due to the financial and economic woes brought on by excessive Wall Street greed.

    Now that market conditions have begun to improve, the FDIC has indicated it will look more favorably on charter applications. See Bank Director Article. See CBAI Guide to Organizing a Bank.

    Back to top

    Preparing for the New ACH Rules in 2015 and 2016

    Community banks should begin to prepare for several new ACH rules that will become effective in 2015 and 2016, according to Jennifer Kirk of the Electronic Core of Knowledge, a not-for-profit automated clearinghouse affiliated with NACHA. For more detailed information on some of the key changes, Click Here.

    Back to top

    Free iHELP Webinar on How to Facilitate Customers' Student-Loan Requests

    iHELP has partnered with CBAI Foundation for Community Banking to offer a Referral Partner program to CBAI member banks that also helps fund the Foundation’s scholarship programs while offering affordable private student loans to Illinois residents. The program includes both in-school loans and loan consolidation. What does your bank have to do to participate? Simply put the iHelp icon on your bank’s web site. That’s it!

    The icon will direct the parent or student to www.ihelploan.com. There, through a simple process, loan assistance may be forthcoming for qualified students. If the loan goes through, your bank receives fee income and the CBAI Foundation for Community Banking receives a donation. Your bank does not make the loan – it simply acts as a conduit.

    Want to learn more? A FREE WEBINAR will be held Tuesday, February 10, 2015, at 10 a.m. CST. Register Here.

    Back to top


    "CBAI Connected to Community Banking"
    Is Sponsored
    by The SHAZAM Network

    Why trust your core and platform services to anyone else? With SHAZAM Core Services you have the choice and flexibility to work with whatever technology you want. SHAZAM efficiently integrates with non-core applications and our openness to working with third-party vendors delivers unlimited possibilities for your success. Learn More.


    Investment News From THE BAKER GROUP

    Baker Market Update

    Patience is a virtue, and that makes Fed-head Janet Yellen a most virtuous central banker, indeed. We learned, following the FOMC’s annual pre-Super Bowl huddle, that the Committee would be exercising much of the aforementioned patience as it tackles the thorny question of just when to start raising interest rates. With the removal of its near-institutionalized “considerable time” reference, many observers feel that the Committee is running interference for a rate hike later this year. See More.


    Baker Economic Brief

    The pace of US GDP growth slowed to 2.6% in the fourth quarter according to the initial estimate from the Commerce Department. This follows a 5% rate in the third quarter and puts the final 2014 growth rate at 2.5%. Read More.


    Baker Webinar - The Regulatory Focus on Interest Rate Risk


    Baker MBS Market Strategies

    The MBA’s mortgage applications index increased 1.3% from last week, with refi volume up 2.5% and purchases down 2.3%. The most notable change on the week came from a 12.1% increase in government applications,reaching the highest level since June 2013. Read More.

    Back to top

    Take This Week’s CBAI Quick Poll

    Take this week’s Quick Poll if your bank currently offers a personal financial management solution (PFM). Click Here to view results of previous polls.

    Back to top

    SHAZAM: Advertising at the ATM

    A New York startup company is hoping to convince ATM users to watch ads in lieu of paying a fee to use their ATMs. The ATM video screens also relay national and local news through a partnership. The startup has launched more than 50 ATMs across Manhattan, Queens and Brooklyn in hopes of generating enough revenue from advertising to offset fee revenue. The company plans to eventually expand to Boston, Philadelphia and Washington, D.C. Interestingly, this concept may have a negative impact on large financial institutions (FIs), potentially opening the door for community FIs to attract some of these potential converts. Read SHAZAM Blog.

    Back to top

    CBAI Legal: Contractor’s Platting Insufficient to Enforce Mechanic’s Lien

    On January 27, the Third District Illinois Appellate Court ruled in the case of Christopher Burke Engineering vs. Heritage Bank of Central Illinois that a contractor is not entitled to enforce a filed mechanic’s lien against opposing interests of a secured lender bank in circumstances where the only service or benefit provided by the contractor was preliminary platting of vacant real estate intended for development and there was no evidence that the platting enhanced the value of the property. For more details on the case, Click Here.

    Back to top

    Recruiting New Bank Directors - Is Your House In Order?

    Banks need to keep in mind that prospective director candidates will likely be conducting due diligence on the bank at the same time the bank is conducting due diligence on the candidate. To ensure that your bank can attract top candidates for board positions, there are certain guidelines to consider before the recruiting process begins. Learn More.

    Back to top

    CBAI's 2015 Education Catalog Now Available

    CBAI's mission is to provide high-quality educational programs in a timely manner to individuals with all levels of banking experience. We strongly believe that the knowledge gained through these community bank focused programs can result in success for you, your employees, and your bank.

    The CBAI 2015 Education Catalog describes the many professional-development programs and various delivery systems available to you. View Catalog.

    Back to top

    Banking Essentials Scheduled for February 10 & 11

    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. Offered in one location, 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. While it is recommended that the individual attend all four quarters of the series to receive an entire overview of banking, each quarter's material stands alone; one quarter is not a prerequisite for another.

    Back to top

    Seminar for the Community-Bank Attorney Set for February 13

    To help community-bank attorneys obtain the latest information regarding the myriad of legislative, legal, and regulatory mandates facing community banks, as well as to meet the Supreme Court of Illinois-ordered requirements for Minimum Continuing Legal Education (MCLE), CBAI developed this comprehensive one-day education session entitled, “Seminar for the Community Bank Attorney.” Scheduled for February 13 in Springfield, this seminar provides an update on state laws and court cases impacting community banks; issues faced by secured lenders in sales of distressed assets; regulatory hot topics; marijuana in Illinois and nationally; and more. Speakers include Jerry Cavanaugh, Community Bankers Association of Illinois, Springfield; Mark Bogdanowicz, Howard & Howard Attorneys PLLC, Peoria, IL; Tim Sullivan, Hinshaw & Culbertson, Chicago; and representatives from the FDIC, OCC, Illinois Department of Financial and Professional Regulation, and the Federal Reserve Bank. CBAI has been approved for 5.5 hours of MCLE credit. Any attorney who sits on a community bank board of directors, acts as legal counsel to a community bank, or has an interest in these topics would benefit from attending. For more information or to register, please Click Here.

    Back to top

    Commercial Lending Institute To Be Held February 18-20

    This three-day institute provides your commercial lenders with a solid foundation for producing and managing a quality loan portfolio. It focuses on analytical tools such as ratio, financial, cash-flow analysis, as well as commercial-loan structuring to enhance repayment capacity. Topics covered on day one include financial-statement review, credit and ratio analysis, asset-conversion cycle analysis, and ratio interpretation. Cash budgeting, loan structuring, commercial-loan documentation, and credit-risk management are among the topics on day two. Day three examines cash-flow analysis, financial forecasting, and writing credit memos. Jeffery Johnson, president and founder of Bankers Insight Group, Atlanta, GA, heads this faculty. He is joined Robert M. Swartz, manager, and Gary Genenbacher, CPA and partner, both of BKD, LLP.

    Back to top

    Deposit Documentation Scheduled for February 23-26

    CBAI is pleased to offer “Deposit Documentation” in four locations this February. Each of the regulations, laws, or guidelines pertaining to deposit documentation have aspects that relate to the initial disclosures, but the emphasis of this class is on the how and why. Many things tellers and customer service representatives do are driven by these regulations, but too often circumstances can make it difficult for those employees to apply the regulations because they don't know the details. This seminar describes the requirements, explains in a straight-forward manner the basic principles, and then draws on real life experiences to explore how to apply those principles. Among the challenges covered are error resolutions, new-card issuance, replacement cards, delay of funds, honoring checks, split deposits, NSF checks, credit card checks, two-party checks, CD penalties, partial withdrawals, who can open an account, how can it be titled, who can I talk with about the account, identity theft, suspicious activity, and more. Tim Tedrick, CRCM, CRP, and partner at WIPFLi LLP in Sterling, leads this seminar. Tedrick is the head of the bank consulting practice and specializes in compliance, loan review, and internal audit.

    Back to top

    CBAI




    CBAI
    PROFESSIONAL
    DEVELOPMENT PROGRAMS
    THROUGH 03/15/2015







    CBAI
    TELEPHONE/WEBCASTS THROUGH 02/28/2015




    › Qualifying Borrowers Using Personal Tax Returns Part I
    › FinCEN Guidance on Banking Marijuana Businesses
    › Regulator Issues & Update for the Credit Analyst
    › Setting & Monitoring Effective ACH Exposure Limits
    › FFIEC Guidance & Recent Developments in Cyber Security Risk Management
    › Top 10 Compliance Mistakes in Advertising






    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.

    © 2015 Community Bankers Association of Illinois. All Rights Reserved.