Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois Community Bankers Association of Illinois
 
     A Bi-Weekly News Bulletin for CBAI Members           February 9, 2011 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • CBAI Urges Illinois Congressmen to Repeal 1099 Tax Burden
  • Agencies Propose Reporting Changes for OTS Institutions
  • Fine Expresses Overdraft Concerns in Meeting with FDIC Chairman
  • Midwest Office Supply Announces NEW Purchasing Site
  • Study -- New Accounts Most at Risk for ID Fraud
  • Fed Economic Symposium Forecasts Economic Growth in 2011
  • Nearly 30% of Mortgages Remain Underwater
  • Most Believe Government and Big Business Work Against Them
  • Former CBAI Chairman Bill Lannon Passes Away
  • CBAI’s Improved Compensation Survey Now Online
  • Chicago Fed First Quarter 2011 Economic Perspectives
  • Baker Market Update
  • Agencies Launch Registry for Mortgage-Loan Originators
  • CBAI Member Supports Students Through iHELP® Student-Loan Program
  • Best of Breed Versus Single Vendor
  • Early Registration Now Open for Capital Conference!
  • CBAI Banking Essentials Series Returns in February
  • CBAI Human Resources Seminar Set for February 23 & 24
  • CBAI Offers Three Lending Programs in February
  • Save the Date for CBAI’s Community Bank Marketing Conference
  • Saturday Night Entertainment for 37th Annual Convention Rocks!


  • CBAI Urges Illinois Congressmen to Repeal 1099 Tax Burden

    The Community Bankers Association of Illinois (CBAI) is urging the Illinois Congressional delegation to support the bipartisan effort to eliminate the burdensome 1099 reporting requirement created by the Health Care Reform Act of 2010. CBAI is asking members of the Illinois delegation to support repeal legislation in the Senate, and cosponsor H.R. 4 - Small Business Paperwork Mandate Elimination Act of 2011 – in the House.
    More.

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    Agencies Propose Reporting Changes for OTS Institutions

    The federal bank and thrift regulators announced proposed changes to reporting requirements for institutions regulated by the Office of Thrift Supervision. The proposed changes would require OTS-regulated savings associations to file quarterly call reports beginning with the March 31, 2012, report date instead of Thrift Financial Reports. Savings associations also would be required to file data through the FDIC Summary of Deposits in place of the OTS Branch Office Survey beginning June 30. The plan would end collection of monthly median cost-of-funds data from savings associations, effective January 31, 2012, and would require savings and loan holding companies to file the same reports with the Federal Reserve that bank holding companies file, beginning March 31, 2012.

    Under the proposal, savings associations and their holding companies would continue their current reporting processes until the effective dates noted above. The changes are due to provisions of the Wall Street Reform Act requiring the transfer of OTS functions to the Office of the Comptroller of the Currency, FDIC, Federal Reserve Board and Consumer Financial Protection Bureau on July 21.
    Read More.

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    Fine Expresses Overdraft Concerns in Meeting with FDIC Chairman

    ICBA President and CEO Cam Fine met recently with FDIC Chairman Sheila Bair to reiterate the community banking industry’s concerns with the agency’s
    final guidance on overdraft programs. Fine noted that the guidance is based on outdated information, includes several onerous provisions and fails to explicitly exempt ad hoc overdraft payment programs, as requested by ICBA in its September comment letter. He recommended that the FDIC should delay the effective date of the guidance until 2013 at the earliest, ensure that examiners are not enforcing the guidance prematurely and expressly exempt ad hoc programs.

    The guidance includes provisions requiring financial institutions to monitor for excessive customer use of the programs, contact customers who have incurred more than six overdrafts in a rolling 12-month period and institute daily fee limits, among other provisions.

    Bair told Fine that the FDIC is carefully reviewing ICBA’s concerns. She said the agency is looking at ways to make clarifications and adjustments that avoid unintended consequences. She indicated that the FDIC would work with ICBA to clarify exam procedures for both bankers and examiners, continue outreach to bankers and further clarify that ad hoc programs are not the target of the guidance. Read ICBA Recommendations.

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    Midwest Office Supply Announces NEW Purchasing Site

    Midwest launched its NEW Next Generation Purchasing Site for
    MidwestOfficeSupply.com. Take a Sneak Peek!

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    Study -- New Accounts Most at Risk for ID Fraud

    The latest consumer fraud trends indicate that losses from new account fraud far exceed those associated with other types of fraud, and consumers and law enforcement are now relying on financial institutions for more sophisticated detection and prevention, according to a recent Javelin Strategy survey.
    See Article.

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    Fed Economic Symposium Forecasts Economic Growth in 2011

    The Chicago Fed’s Annual Economic Outlook Symposium, held on December 3, 2010, featured more than 100 economists and business analysts which concluded that the nation’s economy will grow at a faster pace than in 2010. The participants also concluded that the housing sector will improve markedly while the unemployment rate will only slightly decline.
    See Chicago Fed Letter.

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    Nearly 30% of Mortgages Remain Underwater

    According to a quarterly real estate market survey by Zillow.com, 27% of homeowners with mortgages owe more than their homes are worth, an increase from the previous quarter as home prices declined 2.6% nationwide during the last three months of 2010.
    See CNNMoney.com Article.

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    Most Believe Government and Big Business Work Against Them

    A recent Rasmussen survey found that 68% of likely U.S. voters believe that government and big business work together against the interests of consumers and investors. That position is equally shared among liberals and conservatives, Republicans and Democrats.
    See Report.

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    Former CBAI Chairman Bill Lannon Passes Away

    Bill Lannon, 70, lost his three-year battle with cancer and passed away on January 28. He was the fourth generation of Lannons at the State Bank of Saunemin. He served as chairman of Community Bankers Association of Illinois in 1984-85; held many committee positions at CBAI; was chairman of the Building Committee that formulated the plans for and oversaw the construction of CBAI’s permanent headquarters in Springfield; and was state director of the Independent Community Bankers of America. CBAI President Bob Wingert described Bill as a loyal advocate of community banking who invested his heart and soul in the cause and gained many friends along the way.

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    CBAI’s Improved Compensation Survey Now Online

    How does your bank’s compensation package stack up? CBAI’s 22nd 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.

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

    To complete the actual survey, click here.

    For questions, contact Andrea Cusick, SVP Communications.

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    Chicago Fed First Quarter 2011 Economic Perspectives

    Competition in Mortgage Markets: The Effect of Lender Type on Loan Characteristics
    Examines how competition among lenders affects mortgage loan characteristics. The author finds that, on average, banks issue safer mortgages than independent mortgage banks. Further, mortgages from banks with a branch in the local market where the property is tend to be safer than mortgages from banks without a local branch.

    Monitoring Financial Stability: A Financial Conditions Index Approach
    Monitoring financial stability requires an understanding of both how traditional and evolving financial markets relate to each other and how they relate to economic conditions. This article describes two new indexes of financial conditions that aim to quantify these relationships.
    Read Stories.

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    Baker Market Update

    Fewer jobs were added in January than expected, yet the jobless rate fell by .4 percent; and the savings rate fell .2%.
    More.

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    Agencies Launch Registry for Mortgage-Loan Originators

    Federal regulators announced that the Nationwide Mortgage Licensing System and Registry has begun accepting registrations.
    More.

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    CBAI Member Supports Students Through iHELP® Student-Loan Program

    Midwest Bank of Western Illinois, Monmouth is the first Illinois bank to commit loan capital to the iHELP® private student-loan program. Midwest Bank of Western Illinois will serve iHELP® as the originating iHELP® lender for the state. iHELP® is a simple, transparent and low-cost private lending program that is offered through local community banks to help their customers achieve their higher-education goals. The iHELP® program is being rolled out nationwide, with six states already processing loans and an additional 15 states in the "due diligence" process. CBAI has committed to support the ICBA-sponsored program.

    For more information about iHELP® private student loan program, contact Ann Anderson at 303/621-2533 or
    aanderson@ihelploan.com.

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    Best of Breed Versus Single Vendor

    Outsourcing to a single service provider not only saved time, but was expected to provide greater efficiency and cost reduction through perceived easier management of overheads interacting with one services provider. But community banks soon began to realize the risks and challenges of executing such large deals. Terry Dooley, chief information officer at SHAZAM, discusses the issues bankers should consider before adopting a “one size fits all” approach to selecting payment vendors.
    More.

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    Early Registration Now Open for Capital Conference!

    The Community Bankers Association of Illinois’ 27th Annual Capital Conference will take place April 13 at the State House Inn in downtown Springfield. Capital Conference is an important event that benefits all community bankers throughout Illinois. Scheduled activities provide bankers with the opportunity to meet with elected officials, legislative leaders and legislators while they are in session. Many issues vital to community banks will be on CBAI's Legislative Agenda for the 2011 Spring Session of the Illinois General Assembly. Your knowledge and involvement will help you individually and our organization as a whole, as our grassroots strength continues to grow. We need your help and participation to be successful!

    The early registration fee is $150 per institution and covers the cost of all registrants. Bring as many of your officers, directors, and employees as you can. After March 25, 2011 the registration fee is $200 per institution.

    A block of rooms has been reserved at The State House Inn at the rate of $98.99 per night. To make reservations, contact The State House Inn at 217/528-4358 and indicate that you are with the Community Bankers Association of Illinois.

    Register Today!

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    CBAI Banking Essentials Series Returns in February

    CBAI will offer quarters three and four of
    “Banking Essentials,” four one-day seminars offered in Springfield February 22 & 23. 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. Bryan Bradley of Young & Associates, Inc., leads the third quarter of the Banking Essentials Series, “Regulatory Guidelines and Examinations.” Bradley brings to Young & Associates extensive experience working in financial services. 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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    CBAI Human Resources Seminar Set for February 23 & 24

    CBAI is pleased to offer
    Human Resources Seminar: Preparing for a New Decade of Pro-Employee Regulation.” While many bank executives view their institutions' human-resource function as a guardian of their human-capital investments, few senior managers fully appreciate that effective cost containment can make the human-resource department a profit center. Unfortunately, we face an economic and political climate that encourages costly litigation. This program offers practical advice and best employment practices to help Illinois community bankers take proactive steps to avoid the expense and distraction of labor and employment litigation.

    Leading this seminar is Leonard Sachs, partner-in-charge of the Labor and Employment Group, and Tracy Litzinger, partner, both of Howard and Howard Attorneys PLLC, a business-law firm with offices in Michigan, Illinois, and Nevada.

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    CBAI Offers Three Lending Programs in February

    ANALYZING CASH FLOW FROM INCOME-PRODUCING OR RENTAL REAL ESTATE, INCLUDING GLOBAL CASH FLOW AND THE NEW APPRAISAL GUIDELINES
    This program demonstrates (from case studies) the key variables and concepts for determining CRE cash flow, plus primary analytical techniques such as transaction-level stress-testing. It also explores where to find information from existing sources, such as tax returns, and what additional information may be needed, such as customer rent rolls. Another important element is a global analysis of a borrower's or guarantor's multiple real estate holdings, as well as relevant personal resources and overall guarantor strength.

    THE NEW APPRAISAL GUIDELINES AND REVIEWING
    & INTERPRETING CRE APPRAISALS
    This program 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. Fundamental principles and features of appraisals are covered, as well as the primary analytical techniques such as net operating income (NOI) for basic, income-producing properties and discounted cash flow for acquisition and development (A&D) loans. This class also reviews the newly issued (December 2, 2010) Interagency Appraisal and Evaluation Guidelines. Further, we cover “assessing collateral values” from the October 2009 Policy Statement on Prudent CRE Loan Workouts.

    MANAGING YOUR BANK’S COMMERCIAL REAL-ESTATE PORTFOLIO (Including Dealing with Problem Credits, Stress-Testing,
    and the New Appraisal Guidelines)
    This program 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. Included is a discussion of CRE problem loans and workouts (October of 2009 Policy Statement on Prudent CRE Loan Workouts) and portfolio-level stress-testing. We also cover supervisory loan-to-value limits, appraisal and environment risk policies, plus a roundtable discussion of the newly-issued (December 2, 2010) Interagency Appraisal and Evaluation Guidelines.

    Leading these three seminars is Richard Hamm of Advantage Consulting & Training in Hunstville, Alabama. These seminars may be attended as a three-day series or as stand-alone courses.

    For more information, or to register, please
    click here.

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    Save the Date for CBAI’s Community Bank Marketing Conference

    CBAI’s fifth annual Community Bank Marketing Conference has been scheduled for May 12 at the Crowne Plaza in Springfield. This year’s keynote speaker, Roxanne Emmerich, CEO of The Emmerich Group, has been described as America's most sought-after workplace transformation expert. She is listed by Sales and Marketing Management magazine as one of the 12 most requested speakers in the country for her ability to transform negative workplace performance and environments into "bring it on" results-oriented cultures. In her keynote presentation, “Thank God It’s Monday,” Emmerich will enlighten participants on how to turn their team from "snooze-button hitters" to "rock-star performers" and create a buzz-worthy environment customers will love. With other hot topics on the agenda including a legislative and regulatory update, customer service and sales, developing an effective PR strategy, and mobile banking, this conference is a can’t miss for marketing officers and senior management alike. A mini-expo featuring the latest in marketing products and services for the community bank also highlights the day. More details will be available soon, so mark your calendar today for an event you won’t want to miss!

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    Saturday Night Entertainment for 37th Annual Convention Rocks!

    Back by popular demand, taking the stage at the Saturday Dinner Dance at CBAI’s 37th Annual Convention and Expo in Milwaukee is
    The Pink Flamingos. The Pink Flamingos is one of the most successful, dynamic, and completely unique entertainment groups touring today. The group provides a wide range of music, from elegant and classy dinner music to Broadway show tunes; from themed extravaganzas, to an energetic and unpredictable dance party. The Pinks combine audience participation with choreography, outrageous original costuming, hand-painted backdrops, theatre bits, and music everyone knows to produce an evening often described as unexpected, unprecedented, and unforgettable! Make plans now to attend on September 22-24.

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    CBAI's PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 3/18/2011



    TELEPHONE/WEBCASTS THROUGH 3/18/2011




    CBAI Events
    Technology Conference, February 10, 2011, Crowne Plaza, Springfield

    Community Banking Week in Illinois, April 3 - 9. Order FREE materials from bobbiw@cbai.com

    CBAI's 27th Annual Capital Conference - April 13 - State House Inn in downtown Springfield. Register Today!

    Marketing Conference - May 12 - Crowne Plaza, Springfield (details available soon)


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