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 8, 2012 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois

  • ACTION ALERT: Sign Online Petition Opposing Credit Union Power Grab
  • CBAI's Annual Officer Compensation Survey Online Now!
  • CBAI'S 2012 Capital Conference Set for April 17
  • President: Mega Banks Should Pay for Homeowner Relief Plan
  • Big Bank Fees May Drive Business to Community Banks
  • SEC Chronically Avoiding Sanctions on Mega Banks
  • New Research on Bank Transfer Day Demographics
  • FDIC Issues Final Rule Requiring Mega Bank Resolution Plans
  • Financial Roundtable Report Slammed as Big Bank Propaganda
  • Baker Market Update
  • Fed’s Bernanke: “Recovery Frustratingly Slow”
  • Rural Mainstreet Index Remains Strong
  • 2012 CBAI Call on Washington Scheduled for April 24-27
  • ICBA Publishes Dodd-Frank Act Reference Guide
  • Free FDIC Teleconference on Mortgage Loan Originator Compensation Set for February 21
  • Agencies Issue Guidance on Junior Lien Loan Loss Allowance
  • Community Banks May Unwittingly Be “Publicly Traded”
  • Social Media Landmines for Financial Services
  • THE BAKER GROUP Holds Seminar April 12-14 in Dallas, TX
  • ICBA Mortgage Solutions to Hold Complimentary Workshops in Illinois
  • CBAI Banking Essentials Scheduled for February 21 & 22
  • Lending Series Scheduled for February 22-24
  • Marketing Groups to be Held March 6 & 7
  • Deposit Documentation Set for March 5-8
  • 2012 Convention Opening Breakfast Speaker Announced


  • ACTION ALERT: Sign Online Petition Opposing Credit Union Power Grab

    Credit unions are poised to charge Capitol Hill by the busload to advance their member business lending bills (H.R. 1418/S. 509). Your action is urgently needed to help prevent these bills from moving forward . Please sign an online petition today so your voice opposing their unwarranted power grab is heard in Washington, D.C.
    Read CBAI Action Alert.

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    CBAI's Annual Officer Compensation Survey Online Now!

    CBAI's Annual Officer Compensation Survey is online and ready for completion. Free results to CBAI members that participate.
    Click here to access the Survey, which is custom-designed for community banks!

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    CBAI'S 2012 Capital Conference Set for April 17

    REGISTER NOW! CBAI'S 2012 Capital Conference will be held on Tuesday, April 17, at The Springfield Hilton. Your participation is important, especially during this election year. Make plans now to attend.

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    President: Mega Banks Should Pay for Homeowner Relief Plan

    President Obama last week proposed a homeowner relief plan that would allow homeowners who are current on their payments but owe more on their homes than their market value to refinance at lower rates with an FHA guarantee. He recommended that banks with more than $50 billion in assets be assessed a special tax to cover the estimated cost of up to $10 billion.
    See Bloomberg Article.

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    Big Bank Fees May Drive Business to Community Banks

    A recent Consumer Reports analysis found that, in an effort to offset higher regulatory costs, the mega banks are increasing fees to such extent that it may drive consumers to community banks and credit unions.

    Recent financial reforms are directed primarily at banks larger than $10 billion, resulting in the implementation of more fees and stricter account management standards. Experts predict a migration of consumers to small community-based institutions to attain greater savings and more affordable services.
    See Report.

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    SEC Chronically Avoiding Sanctions on Mega Banks

    Information contained in a New York Times article last week revealed that the Securities and Exchange Commission (SEC) has repeatedly allowed the largest banks to avoid punishments specifically applicable to fraud cases. By granting waivers to laws and regulations intended to deter securities fraud, the SEC has helped Goldman Sachs, JPMorgan Chase and other financial giants avoid liability from lawsuits and retain advantages normally reserved for the most dependable companies. Ultimately, the SEC’s actions constitute just another form of special treatment bestowed upon the too-big-to-fail banks by the government and underscore the importance of downsizing the mega banks and ending this egregious double standard.
    See New York Times Article.

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    New Research on Bank Transfer Day Demographics

    According to Javelin Research, primarily higher income individuals have left the mega banks in favor of community banks in response to Bank Transfer Day. While younger people like the concept of community banks, many are more attached to the tech offerings of the mega banks.
    See Full Article.

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    FDIC Issues Final Rule Requiring Mega Bank Resolution Plans

    As required by the Wall Street Reform Act, the FDIC recently issued a final rule requiring all banks with at least $50 billion in assets to submit periodic contingency plans for resolution in the event of failure. Currently, 37 mega banks are covered by the rule. Together, they hold more than $4 trillion in insured deposits, or about 61% of all insured deposits.

    While supportive of the requirement, CBAI has long advocated that Congress require downsizing the mega banks so they can be more effectively managed, regulated, and resolved without a taxpayer bailout. CBAI also supports restoration of the separation of commercial banking from investment banking to reduce overall risk to the financial system.
    See FDIC Release.

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    Financial Roundtable Report Slammed as Big Bank Propaganda

    Describing a recent report published by the Financial Services Roundtable as “a sophisticated propaganda campaign by a powerful lobby group,” MIT finance professor Simon Johnson said it illustrates what’s wrong with the industry and raises serious concerns about the people in charge.

    The Roundtable, which consists of the nation’s 100 largest financial firms, is lobbying for the repeal of the Wall Street Reform Act and against implementation of the Volcker rule, which prohibits most proprietary trading by banks. Johnson, who served as chief economist for the International Monetary Fund in 2007 and 2008, supports breaking up the mega banks and restoring Glass-Steagall provisions that separate commercial and investment banking. CBAI wholeheartedly agrees.
    See Bloomberg Article.

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    Baker Market Update

    Surprisingly positive unemployment news; home prices fell another 3.67% on a year-over-year basis; Institute of Supply Managers’ Index on both the manufacturing (up .2) and non-manufacturing (up 4.2); a 1.1% increase in Factory Orders reinforced these favorable numbers along with a 1.5% increase in Construction Spending.
    Read More.

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    Fed’s Bernanke: “Recovery Frustratingly Slow”

    In testimony before the U.S. House Budget Committee last week, Federal Reserve Chairman Ben Bernanke said while the economy has shown signs of recovery, it has been sluggish and remains vulnerable. He urged Congress to enact a long-term plan that reduces the budget deficit.
    Read Testimony.

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    Rural Mainstreet Index Remains Strong

    The Rural Mainstreet Index (RMI) in January attained its highest level since June 2007, although economic growth appears to be leveling off. The RMI is the product of a monthly survey of community bank CEOs in nonurban, agriculturally and energy-dependent portions of a 10-state area of the Midwest including Illinois and administered by Creighton University.

    Approximately one-fourth of the respondents indicated that a decline in agricultural commodity prices represents the largest threat for 2012. Meanwhile, the farmland price index fell in January after attaining a record level in December.
    See RMI Survey Results.

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    2012 CBAI Call on Washington Scheduled for April 24-27

    CBAI’s 2012 Call on Washington will be held in conjunction with the ICBA’s Washington Policy Summit, which is scheduled for April 24-27 at the Gaylord Resort and Convention Center in National Harbor, Maryland on the Potomac. Hundreds of community bankers from across the nation are expected to attend, and CBAI encourages member bank officers and directors to participate in this important event. It’s a perfect time to visit our nation’s Capital.

    Meetings will be scheduled with the Illinois congressional delegation and representatives of the various regulatory agencies, and presentations will be made by top-ranking government officials. Please mark your calendars now. Further details will be provided in the near future. For more information, please contact either Kraig Lounsberry, SVP Government Relations, at 800/736-2224 (
    kraigl@cbai.com) or David Schroeder, VP Federal Governmental Relations, at 847/909-8341 (davids@cbai.com).

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    ICBA Publishes Dodd-Frank Act Reference Guide

    The Dodd Frank Wall Street Reform Act of 2010 was a mixed bag for community banks. The overwhelming majority of the Act was rightly directed at Wall Street and addressing their greed, excess, and abuse of the American consumer. Community banks were engaged in all phases of the negotiations of the Act and earned 16 separate clear victories, exemptions and carveouts. One of the most impactful victories was a change in the assessment base for calculating FDIC deposit insurance premiums which will save community banks $4.5 billion over just the next three years. Wall Street was not happy with this change because now they are paying more of their fair share.

    The Act was not without challenges for community banks. Any increase in the regulatory burden is on top of the already significant burden community banks face every day. Now much of the implementation of the Act is in the hands of various banking regulators. We are commenting on the various proposed rules and strongly advocating to reduce the regulatory burden on community banks.

    The ICBA has published a
    reference guide which offers a detailed look at each of the Act's titles and whether or not they affect community banks. The color-coded guide will help community banks navigate the titles and regulations that will be issued in the months ahead.

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    Free FDIC Teleconference on Mortgage Loan Originator Compensation Set for February 21

    On Tuesday, February 21, the FDIC will host a 90 minute teleconference on the topic of mortgage loan originator compensation and bonuses. Participation by bank staff and directors is free, but requires pre-registration no later than Wednesday, February 15. For more information, please
    Click Here.

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    Agencies Issue Guidance on Junior Lien Loan Loss Allowance

    Federal regulatory agencies last week issued supervisory guidance on allowance for loan and lease losses (ALLL) estimation practices associated with loans and lines of credit secured by junior liens on one- to four-family residential properties (i.e., second mortgages and home equity lines of credit).
    See Regulatory Release.

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    Community Banks May Unwittingly Be “Publicly Traded”

    CBAI recently learned that some community banks may be subject to SEC rules applicable to publicly traded corporations, even though the bank never considered itself to be publicly traded.
    Read More.

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    Social Media Landmines for Financial Services:
    10 Legal Issues Every Bank Should Consider

    Before jumping head first into social media, financial institutions are well-advised to adopt a social media policy that both achieves the goals and protects from legal risks. When creating a social media policy for a financial institution, 10 issues, laws, and regulations should be considered.
    Read More.

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    THE BAKER GROUP Holds Seminar April 12-14 in Dallas, TX

    BAKER’s upcoming
    Investment Strategies and Interest Rate Risk Seminar will address specific bond-portfolio strategies to improve margin and mitigate unnecessary IRR.

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    ICBA Mortgage Solutions to Hold Complimentary Workshops in Illinois

    ICBA Mortgage Solutions will hold complimentary half-day workshops later this month in Springfield and Mt. Vernon as well as a webinar to address key mortgage lending issues including how to better manage mortgage lending fraud, compliance and credit risk, how to improve operational efficiencies, and how to grow market share and increase income. For more details and to register, Click Here.

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    CBAI Banking Essentials Scheduled for February 21 & 22

    CBAI is pleased to present quarters three and four of
    “Banking Essentials,” four one-day seminars offered in Springfield. 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. 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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    Lending Series Scheduled for February 22-24

    CBAI is pleased to offer
    three lending seminars on consecutive days in February. “Analyzing Cash Flow from Income-Producing or Rental Real Estate, Including Global Cash Flow,” “Appraisal Guidelines and Reviewing/Interpreting CRE Appraisals,” and “Managing Your Bank’s Commercial Real Estate Portfolio” may be attended as a series, or as a stand-alone course. 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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    Marketing Groups to be held March 6 & 7

    CBAI’s
    Marketing Groups provide opportunities for community bank marketing professionals to meet quarterly to discuss timely issues with their peers. The benefits are numerous. Members form lasting relationships with non-competing marketing professionals, solve pressing problems, obtain access to highly-respected industry experts, improve marketing practices in the bank, and bring back new resources and ideas from every meeting. Topics for discussion may include strategic planning, cross-selling techniques, design and layout secrets, budgeting, incentive programs, target marketing, non-traditional bank competition, surveys, and market research. The Groups are facilitated by Lori Philo Cook of InnovoMarketing, who has more than 20 years’ experience in bank marketing.

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    Deposit Documentation Set for March 5-8

    CBAI offers
    Deposit Documentation in four locations this March. Tellers, head tellers, new account representatives, and anyone opening accounts or dealing with customers on the deposit side will benefit from attending this seminar. The objectives of this seminar: to define the governing rules, regulations, and laws affecting deposit documentation; explain how the rules, regulations, and laws directly affect day-to-day operations and customer interactions; and show attendees how they can apply what they learn to new circumstances and situations. Tim Tedrick, CRCM, CRP, and executive officer at Wipfli LLP in Sterling, Illinois, leads this seminar.

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    2012 Convention Opening Breakfast Speaker Announced

    This year's Opening Breakfast Speaker at CBAI’s 38th Annual Convention & Expo is
    Dan Thurman, author of two books, a renowned speaker, and a recognized expert in delivering peak performances – on stage and in the workplace. As president of Motivation Works, Inc., he has worked with hundreds of clients and delivered thousands of presentations worldwide. Thurman helps organizations and individuals implement actions plans and move confidently through transitions. Scheduled for September 20-22, 2012, CBAI’s annual convention, “Building for Tomorrow,” will be held at the Hyatt Regency at The Arch in St. Louis, MO. More information will be available soon.

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    CBAI
    ACT Appraisal

    PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 3/31/2012


    TELEPHONE/WEBCASTS THROUGH 3/31/2012


    CBAI EVENTS
    CBAI’s Career Development Division Spring
    Conference & Exposition

    March 21-22, 2012 – Hilton Hotel, Springfield

    CBAI'S 2012
    Capital Conference

    April 17, 2012 – Hilton Hotel, Springfield

    CBAI’s 30th Annual
    Call on Washington

    April 24-27, 2012 – Gaylord Resort and Convention Center, National Harbor, Maryland



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