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Community Bankers Association of Illinois
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     A Bi-Weekly News Bulletin for CBAI Members                   February 6, 2013 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • Report Tells Congress: “Too-Big-To-Fail Has Not Been Resolved”
  • ICBA’s Fine: “Downsize the TBTF Banks”
  • CBAI Announces After-Dinner Speaker at 2013 Group Meetings
  • How Community Banks Can Compete Against the Oligopolies
  • Justice to Sue S&P Over Faulty Ratings of Toxic Investments
  • Agriculture’s Super Bowl Surprise
  • Chicago Fed Reports on Community Bank Symposium
  • FHLB Chicago Announces Fourth Quarter Dividend
  • Baker Market Update
  • U.S. Home Prices Post Big Jump, But Not in Illinois
  • Where Did Your Bank Rank in Q4?
  • How Does Your Bank Stack Up?
  • State Department of Revenue Issues Tax Refund VISA Debit Card
  • The Many Challenges of EMV in the U.S.
  • How to Successfully Launch a New Credit Card Program
  • Last Chance to Enter Drawing for Scholarship to Community Bankers School
  • FNB Mattoon Accepts the “Kasasa Challenge” from BancVue
  • “I Luv My Community Bank” Campaign Is Back
  • 2013 Community Banking Week in Illinois is April 1 – 6
  • Save The Date! CBAI Capital Conference - April 17, 2013
  • 31st Annual CBAI Call on Washington to be Held April 23-26, 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


  • Report Tells Congress: “Too-Big-To-Fail Has Not Been Resolved”

    The Special Inspector General for the Troubled Asset Relief Program (SIGTARP) last week filed a written report with Congress emphasizing that more change is needed to address the root causes of the financial crisis and the resulting bailout. The report urged reducing risk in large, complex, and highly interconnected financial firms via constraints on leverage, minimizing complexity and interconnectedness, and increasing capital requirements. CBAI agrees with the general tenor of the report and further advocates downsizing the mega banks as part of a TBTF resolution prescription.
    More Information.

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    ICBA’s Fine: “Downsize the TBTF Banks”

    In response to a recent Frontline episode on the absence of criminal prosecution of mega bank management since the financial crisis exploded in 2008, ICBA President Cam Fine publicly announced that the time has come to restore sanity and accountability in our financial system, and too-big-to-fail firms should be downsized and split up.

    Fine noted, “These financial firms are so large and so interconnected that they not only have access to lower-cost funding and to a seemingly limitless taxpayer backstop, but they are also immune from criminal prosecution.” CBAI and ICBA have supported downsizing the mega banks for many years and recently announced support for Federal Reserve Bank of Dallas President Richard Fisher’s call to restructure and downsize TBTF firms.
    See ICBA Release.

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    CBAI Announces After-Dinner Speaker at 2013 Group Meetings

    CBAI is pleased to announce that Felix Brandon Lloyd of BancVue will be the after-dinner speaker at the 2013 Group Meetings. In his presentation, “Doing Good and Doing Well – The Power of Financial Education,” Lloyd discusses current trends in financial literacy in the banking profession and how you can offer a financial education experience that builds relationships with countless schools and families. CBAI leaders and executive staff will visit 11 locations on the 2013 Group Meeting tour this spring. Bankers from more than 200 banks 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. Groups 1, 2 & 3 will include a Continental breakfast, meeting, lunch, and regulator panel.

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    How Community Banks Can Compete Against the Oligopolies

    Financial analyst Andrew Kahr explains how community banks can easily and profitably compete against the megabanks by operating more efficiently with nimbleness, flexibility, and personalized outreach. CBAI also believes community banks of all sizes can and will compete effectively and profitably for years to come.
    See Kahr Article.

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    Justice to Sue S&P Over Faulty Ratings of Toxic Investments

    According to the Washington Post, the U. S. Justice Department plans to file a civil lawsuit against the ratings agency Standard & Poor’s alleging that S&P gave top ratings to securities backed by shoddy residential mortgages which played a major role in the Wall Street meltdown 2007-08.

    Senator Charles Grassley (R-Iowa) expressed concern that a civil case is not good enough. “Most civil suits are simply the cost of doing business and aren’t enough. Unfortunately, this appears to be another instance of the civil case-only, ‘too-big-to-jail’ mentality at the Justice Department.” CBAI concurs with the Senator’s observations, noting that a civil action once again demonstrates the existence of a hideous double standard in the treatment of large Wall Street firms versus Main Street banks.
    See Washington Post Article.

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    Agriculture’s Super Bowl Surprise

    “So God Made a Farmer”

    Among the highly anticipated Super Bowl ads last Sunday was a little gem that has given inspiration to America’s family farms. A two-minute Ram Truck commercial featured “So God Made a Farmer,” presented by legendary broadcaster Paul Harvey during the 1978 National Future Farmers of America Convention. Illinois farmers and community bankers have long been partners in the production of grains and livestock for the nation and the world. May that partnership be enduring and strong.
    See Illinois Farm Bureau Article and Super Bowl Ad.

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    Chicago Fed Reports on Community Bank Symposium

    In its most recent Fed Letter, the Federal Reserve Bank of Chicago provided a summary of the key presentations and discussions at its annual Community Bankers Symposium on November 9, 2012. CBAI and the Federal Home Loan Bank of Chicago hosted a dinner the evening before the Symposium for Illinois community bankers.
    See Chicago Fed Letter.

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    FHLB Chicago Announces Fourth Quarter Dividend

    The Chicago FHLB last week announced a cash dividend at an annualized rate of 0.30% per share for the fourth quarter of 2012. The dividend will be paid by crediting the accounts of FHLB member banks as of February 13, 2013.
    See FHLB Announcement.

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    Baker Market Update

    Last week’s light calendar of data was more than made up for this week as economic statistics filled the air. The air in China was filled with something else. Not all the numbers were bad, though; some were worse. The always highly anticipated Jobs Report was released by the Bureau of Labor Statistics this morning and showed that the Unemployment Rate ticked up a tenth to 7.9%.
    Read More.

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    U.S. Home Prices Post Big Jump, But Not in Illinois

    Chicago Area Bucks Trend With Declining Prices

    U.S. home prices rose for the tenth consecutive month in December, posting the largest gain in more than six years, according to analysts at CoreLogic. Excluding distressed sales, prices were up 7.5 percent in a yearly basis. Meanwhile, the Chicago area experienced a 2.3 percent decline in home prices in December. Four states posted home price depreciation: Delaware, Illinois, New Jersey, and Pennsylvania.
    See Chicago Tribune Article.

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    Where Did Your Bank Rank in Q4?

    The fourth quarter Illinois ROE Map is now available for CBAI members! See how your bank stacks up to the competition.
    Read More.

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    How Does Your Bank Stack Up?

    The 24th Annual CBAI Officer Compensation is underway. Results are categorized by asset size and geographical location and are FREE to CBAI members that participate!
    Access Survey Now!

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    State Department of Revenue Issues Tax Refund VISA Debit Card

    The Community Bankers Association of Illinois is aware that the Illinois Department of Revenue (“Revenue”) has circulated a one page information sheet (“notification”) informing financial institutions that Revenue has issued VISA prepaid debit cards for State tax refund payments in lieu of drawing paper checks for tax refunds.
    Read More.

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    The Many Challenges of EMV in the U.S.

    A recent
    article by Terry Dooley, Senior Vice President and CIO of SHAZAM®, addresses EMV. According to Dooley, EMV is receiving a lot of well-deserved attention. Overseas, this technology has proven its ability to create a more secure transaction and to reduce fraud. As the benefits of EMV technology continue to surface globally, so do the challenges this technology presents to the U.S. payments industry.

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    How to Successfully Launch a New Credit Card Program

    Visa Consumer Credit Product Launch Playbook Webinar

    Expanding your community bank's payment products to include credit cards can help you stay relevant with your customers. Join ICBA Bancard and Visa for an informative one-hour webinar
    Thursday, February 14, 2013 at 1:00 p.m. (Central) where Lisa McCracken, business leader within Visa's Marketing Consulting team will provide an overview of the company's new Program Launch Marketing Playbook. Participants will also glean proven strategies to help community bankers successfully launch a new credit card program or bring outsourced portfolios in-house.

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    Last Chance to Enter Drawing for Scholarship to Community Bankers School
    Drawing to be held 2/15

    The CBAI Foundation for Community Banking will conduct a drawing for one bank to receive a two-year scholarship to the Community Bankers School. Will your bank be in the drawing?

    Eligible banks are those that have donated or pledged at least $2,500 to the Foundation, which endows the 29 scholarships offered annually to deserving individuals. Donations are 100% tax deductible. To donate or pledge today, either contact Andrea Cusick, Foundation Administrator, at 800/736-2224 or
    cbaicom@cbai.com. Or click here to complete the donor card.

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    FNB Mattoon Accepts the “Kasasa Challenge” from BancVue

    First National Bank, Mattoon (FNBM) has accepted the matching-gift challenge of BancVue®, the creator of Kasasa®. The bank, already a long-time donor to the CBAI Foundation for Community Banking, has pledged more than $10,000 to become a Gold Donor. In doing so, the additional sum that is has pledged will be matched by BancVue. BancVue is the most recent Presidential-level Donor to the Foundation and has endowed a scholarship called the “Kasasa Scholarship” in its name for the children and grandchildren of community bankers. The first Kasasa Scholarship will be awarded at the CBAI Convention in September. Any CBAI member bank that is also a proud member of BancVue’s Kasasa family will have its tax-free donations to the Foundation matched by BancVue. The Foundation offers 29 scholarships annually to deserving students. BancVue is a preferred service provider of Community BancService Corporation. For more information, contact Andrea Cusick, Foundation administrator, 800/736-2224 or
    cbaicom@cbai.com.

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    “I Luv My Community Bank” Campaign Is Back

    The ICBA’s annual “I Luv My Community Bank” campaign has returned — just in time for Valentine’s Day. This national marketing and communications campaign celebrates the love that customers have for their community banks. The campaign will run again in conjunction with Community Banking Month in April. Testimonials and submissions from consumers will be accepted at
    www.iluvmycommunitybank.com and on the ICBA Facebook page from February 14 – April 12. The top 10 testimonial finalists will be chosen by a panel of judges and announced on ICBA’s Facebook page on April 15, where bankers and consumers will be able to vote for their favorite through April 30. The top five winners, chosen by Facebook votes, will be announced on May 1 and they will receive one of five $500 gift cards, courtesy of ICBA.

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    2013 Community Banking Week in Illinois is April 1 – 6

    For FREE materials, contact Bobbi Watson at 800/736-2224 or
    bobbiw@cbai.com.

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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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    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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