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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                     February 5, 2014

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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • Cost of Data Breaches Should be Borne by Responsible Parties
  • Senate Passes Long-Stalled Farm Bill
  • Survey Reveals Cautious Optimism Among Community Bank CEOs
  • 2013 Results: Illinois Community Banks Posted Profits and Grew Assets
  • CBAI Compensation Survey Now Online
  • CBAI's 30th Annual Capital Conference Registration Opens! Early Bird Ends March 26!
  • The Fed’s Double Standard Enables Bad Bankers
  • ICBA: “Community Banks Still Specialists at Small-Business Lending”
  • House GOP Blocks Vote on Bill to Delay Hikes in Flood Insurance Premiums
  • CDD Spring Meeting to be Held March 18-19
  • SHAZAM: Mobile Bill Payment Interest and Usage Increasing
  • Time to Plan Your Community Banking Week Celebration!
  • ICBA Community Banking Live 2014 Convention -- Plan Now to Attend!
  • FHLB Chicago Announces Disaster Relief Program
  • What’s Special about Your Bank?
  • Baker Market Update
  • Mortgage-Servicing Summaries To Be Added to CBAI Legal Link Library
  • Risk Management Practices Should Include Proper Insurance Coverage
  • Harland Identifies Hot Marketing Trends for 2014
  • Financing Building Efficiency Projects
  • Could Your Bank Be a Target?
  • Credit Risk Management Workshop Scheduled for February 11-12
  • Banking Essentials to be Held February 18-19
  • Commercial Lending Institute Set for February 19-21
  • Mark Your Calendar for CBAI’s 40th Annual Convention & Expo


  • Cost of Data Breaches Should be Borne by Responsible Parties

    The ICBA this week told Congress that community banks are absorbing the costs of making their customers whole following recent data breaches at major retailers, including the costs of reissuing cards and responding to customer concerns. ICBA said those costs should ultimately be the responsibility of the parties at fault for the breaches. Retailers, on the other hand, are arguing that banks need to move to chip-and-PIN technology versus magnetic stripe technology. However, while many banks are making that migration, it would not have protected against all breaches such as “card-not-present” transactions (online purchases).
    See ICBA Release.

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    Senate Passes Long-Stalled Farm Bill

    The United States Senate passed the ICBA-CBAI advocated Agricultural Act of 2014 (H.R. 2642) by a wide bipartisan majority (68-32). The bill now goes to the President who is widely expected to sign it into law. The farm bill includes several provisions that will spur rural economic growth including strengthening crop and revenue insurance programs and removing term limits on USDA guaranteed operating loans.
    Read More.

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    Survey Reveals Cautious Optimism Among Community Bank CEOs

    A recent survey of community bank CEOs conducted by Abound Resources found that 59% of respondents are “somewhat or very optimistic” about the upcoming year in banking. The finding represents a marked increase in optimism compared to a few years ago.

    The regulatory burden and interest rate environment lead the list of concerns for 2014, while growing commercial loans, expanding the online presence, and improving small business market share were top priorities for growth.
    See Abound Release.

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    2013 Results: Illinois Community Banks Posted Profits and Grew Assets

    According to Bank Trends, a CBSC-preferred provider of a community bank peer analysis tool, 86% of Illinois community banks (those with assets less than $10B) were profitable in Q4, posting a median Pretax ROA of 0.81% and a median ROE of 5.48% during the quarter. Core earnings (calculated as pretax, pre-provision return on equity) were 11.73% in Q4, which was a decline from 11.9% in Q3 and 12.7% in Q4 2012.
    Read More.

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    CBAI Compensation Survey Now Online

    How does your bank compensation stack up? CBAI’s 24th 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. Participating CBAI members receive the Survey results free-of-charge.

    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, CBAI Senior Vice President Communications.

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    CBAI's 30th Annual Capital Conference Registration Opens! Early Bird Ends March 26!

    Mark your calendar to attend the Community Bankers Association of Illinois’ 30th Annual Capital Conference. This important event will be held Wednesday, April 9th at The Hilton Hotel in downtown Springfield. Registration begins at 11 a.m., followed by lunch at 11:30 a.m.

    As an additional incentive to participate, Early Bird Registration is $100 per bank ($150 after March 26th). Bring as many officers, directors and employees as you would like for just one low price. In addition to lunch, a legislative reception with heavy hors d oeuvres is also included. A block of rooms has been reserved at The Hilton Hotel at the rate of $109 per night. To make reservations, contact The Hilton Hotel at 800/445-8667 and indicate that you are with CBAI.
    Register Now!

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    The Fed’s Double Standard Enables Bad Bankers

    CBAI and ICBA have been hammering away for years about the egregious double standard between the treatment of mega banks and community banks by federal agencies. Now the editor of the American Banker newspaper, Neil Weinberg, has weighed in on this important issue. Every community banker who believes that too-big-to-fail and asset concentration does not impact them should read the following article.
    See AB Article.

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    ICBA: “Community Banks Still Specialists at Small-Business Lending”

    In response to a factually-questionable editorial on community bank small business lending, ICBA’s Terry Jorde countered that banks with less than $10 billion in assets provide nearly 60% of the profession’s small-business loans. She also noted that in the third quarter of 2013 small-business lending at banks with less than $1 billion in assets was up 3.8% from the previous quarter, while banks with more than $100 billion in assets, lending was down a whopping 9.5% from the second quarter.
    See AB Article.

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    House GOP Blocks Vote on Bill to Delay Hikes in Flood Insurance Premiums

    Yesterday House Republican leaders blocked a vote on a Senate-passed bill to reform flood insurance and delay premium hikes intended to put the program on a sounder financial footing. ICBA advocated for passage of the measure to delay premium increases because it will hurt thousands of ordinary citizens and the banks that try to help them. Despite the measure having 182 House sponsors, without the support of the House Republican leadership, passage is unlikely.
    See AB Article.

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    CDD Spring Meeting to be Held March 18-19

    The CDD Annual Spring Meeting is scheduled for March 18-19, at the Hilton Hotel in Springfield. This conference combines motivational, energetic, and informative general sessions with important messages for today’s banker, as well as six breakout sessions with practical solutions and ideas that can be immediately implemented at the bank and a fun-filled social event. Additional conference highlights include:

      David Kemp, president of Bankers Management Inc., is conducting two general sessions at the conference entitled, “The Next Two – Three Years in Community Banking,” and “Leadership That Gets Results!”
      Two networking sessions and the Business Meeting Luncheon, featuring a legislative update, elections of officers, and the Career Banker and Economic Educator of the year awards, are conducted at the conference.
      Social Event – Join us on March 18 from 7 – 9:30 p.m. for an evening of networking fun at the Hilton Hotel where Coole 2 Duel will take the stage. Back by popular demand, Coole 2 Duel will have a dueling piano show. Make sure you bring you requests! This event includes an appetizer buffet, cash bar, and of course, music. This event is included in your registration fee.

    Register Now!

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    SHAZAM: Mobile Bill Payment Interest and Usage Increasing

    According to recent Javelin research, 12.5 million American consumers are starting to use mobile bill pay with vast potential for growth. A 2013 Market Rates Insight survey found that nearly 50 percent of consumers were interested in using mobile bill pay services through their financial institutions. According to an ath Power Consulting Study, one in three consumers would be willing to pay for mobile banking services. As a result, the revenue potential for mobile bill pay is significant for community banks.
    See SHAZAM Blog.

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    Time to Plan Your Community Banking Week Celebration!

    Celebrate Community Banking Week 2014 the week of April 6-12! Free materials are available for the asking – just contact Bobbi Watson at 800/736-2224 or
    bobbiw@cbai.com.

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    ICBA Community Banking Live 2014 Convention -- Plan Now to Attend!

    Make Plans Now to Attend! ICBA Community Banking Live 2014® will be like no community banking conference you’ve attended. We are again setting the standard, raising the bar and creating a masterpiece that will be the community banking event of the year and you’re invited!

    Why Attend?

      1. Access to DYNAMIC industry leaders

      2. Connect with community bankers from all over the country who share your zest for our DISTINCT profession

      3. Choices of dozens of INTERACTIVE educational workshops and roundtables

      4. Wake up each day in a place so MAGICAL that you might just find yourself smiling just listening to the waves lap against the sand

      5. Participate in the world’s largest most COMPREHENSIVE gathering of community bankers in the world

      6. Explore hundreds of products and services ESSENTIAL for your bank

    Learn More and Register Today!

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    FHLB Chicago Announces Disaster Relief Program

    Last week the Federal Home Loan Bank of Chicago introduced the Community First Disaster Relief Program which will initially assist several communities in Illinois that were affected by severe storms in November 2013. The FHLBC will provide financial assistance to people living and working in the affected areas through its member institutions.
    See FHLBC Release.

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    What’s Special about Your Bank?

    Nominations are being taken now for the 2014 CBAI Award for Excellence and Innovation, Sponsored by BKD, LLP. In 2013, Legence Bank, Eldorado was the winner for its entry, Legence University, which provides an extensive financial-literacy curriculum for school-age children through adults. Does your bank have a special program, product, service, philanthropic effort, or civic project? Tell us about it! (Your bank need not be a BKD client to enter.)

    For more information about the BKD Award,
    Click Here.

    For a BKD Award nomination form, Click Here.

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    Baker Market Update

    This sure feels like one of those weeks in which things just haven’t “felt” right. If one asked the folks in the Deep South, they would probably agree that dealing with paralyzing snow and ice hasn’t felt right. Even the taciturn members of the FOMC might admit that seeing Mr. Bernanke at the head of the big, shiny table for the last time feels a little funny (not ha-ha funny). Something else that’s funny about this week, in fact this whole month, is that bonds are up and stocks are down.
    See Baker Market Update.

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    Mortgage-Servicing Summaries To Be Added to CBAI Legal Link Library

    On or before March 1, 2014, information about the updated federal mortgage servicing regulations will be added under the Legal Link Library tab, available online to CBAI member banks in the “Members Only” section of CBAI’s website (
    www.cbai.com). The current mortgage-servicing regulations, codified under the Real Estate Settlement Procedures Act (“RESPA”) regulations in Regulation X and the Truth in Lending regs in Regulation Z, became effective on January 10, 2014 and are hundreds of pages in length. The summaries to be added online under the Legal Link Library will be designed as a user-friendly reference, but with links to the full regulations for bankers or for bank attorneys, compliance officers or consultants who prefer to see the full text of the regs.

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    Risk Management Practices Should Include Proper Insurance Coverage

    Regulatory requirements and periodic inspections of risk management policies have led many financial institutions to reassess and enhance their risk management practices. According to a Wall Street Journal article citing a recent global survey from Deloitte Touche Tohmatsu Limited (DTTL), approximately two-thirds of financial institutions (65%) reported an increase in spending on risk management and compliance, up from 55% in 2010, to address rising risk concerns. Proper insurance coverage is an important aspect of risk management.
    Read CBIS Nicoud Article.

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    Harland Identifies Hot Marketing Trends for 2014

    CBSC marketing partner Harland-Clarke as identified marketing trends worthy of consideration by community banks in 2014.
    See Marketing Trends.

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    Financing Building Efficiency Projects

    Buildings consume more than 40 percent of the world’s energy output and emit an equivalent amount of the carbon emissions into the atmosphere. Federal and state governments are responding with subsidies and changes in the tax code, which attract businesses to create new products, jobs, and revenue.
    Learn More.

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    Could Your Bank Be a Target?

    You've probably heard about the recent Target Stores data breach but what if your bank was the target? Hackers want to steal financial data-and your bank has a lot of it. Don't risk the customer backlash and regulatory fallout: Learn quick ideas on how you can improve security, reduce risks and meet regulators' expectations on information security.
    See BankOnIT Article.

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    Credit Risk Management Workshop Scheduled for February 11-12

    Every institution tries to assess risk and predict future patterns in the credit portfolio. The better the information those efforts produce, the better the financial management that is possible, particularly in the area of reserves and capital. Effective credit-risk management cuts across many levels of the bank. This
    seminar examines how credit-risk management affects the board and leadership, the front lines, and the technical staff. Board members, credit administration, credit review, credit risk officers, and chief risk officers would all benefit from attending this seminar. Leading this seminar is Jeff Judy, principal and founder of Jeff Judy & Associates, Bloomington, MN.

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    Banking Essentials to be Held February 18-19

    A must for the newer community bank employee, the
    Banking Essentials 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. Adam Witmer, compliance consultant with Young & Associates, which serves client banks in the Midwest, leads the third quarter “Regulatory Guidelines & Examinations,” scheduled for February 18. Having nearly 10 years of experience in banking, Witmer performs in-bank compliance consulting, conducts compliance training, and writes articles for various compliance publications. Leading the fourth session on February 19, “Integrated Bank Security, Compliance, & Customer Service,” is Jim Rechel, president of The Rechel Group, Inc. which specializes in security intervention solutions. Rechel was director of bank protection for Fifth Third Bank in Cincinnati, OH, and had responsibility for the fraud prevention and investigation program for the credit- and debit-card portfolios.

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    Commercial Lending Institute Set for February 19-21

    This
    three-day institute provides 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 documentation. Case studies are used to reinforce learning and represent typical community bank borrowers. Topics covered on day one include a review of corporate income-tax returns, and financial statement review. Credit and ratio analysis, asset-conversion cycle analysis, and cash-flow analysis are addressed on day two. Day three examines financial forecasting, commercial-loan documentation, and writing credit memos. Jeffery Johnson, president and founder of Bankers Insight Group, Atlanta, GA, heads this distinguished faculty. He is joined by Robert M. Swartz, manager, and Gary Genenbacher, CPA and partner, both of BKD, LLP.

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    Mark Your Calendar for CBAI’s 40th Annual Convention & Expo

    Mark your calendar! You won't want to miss CBAI's 40th Annual Convention and Exposition. Plans are well underway and it promises to be our best one yet! Scheduled for September 18-20, 2014, it will be held at the Marriott Downtown in Chicago. Please
    click here to add a reminder to your Outlook calendar for CBAI's showcase event! Then read the upcoming issues of Banknotes, our bi-monthly magazine, and the various publications for complete details and registration forms. This year's convention features high-quality speakers and educational break-out sessions from which to choose, 100 firms exhibiting the latest in bank products and services; and outstanding social events including the Annual Golf Tournament, the Welcoming Reception and Live and Silent Auctions; and the fabulous Saturday Dinner Dance.

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