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 10, 2010 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • CBAI Attends Durbin Press Conference on Small Business Lending
  • Administration Announces Proposed SBA Lending Initiatives
  • Small-Business Lending Plan Music to Many Ears
  • Regulators Issue Joint Statement on Lending to Small Businesses
  • Volcker Proposes Financial Reforms
  • Who Is Really Dividing the Banking Industry?
  • Washington’s Governor Urges Regulators to Address Harsh Exams
  • Congresswoman Schakowsky Moves to Community Bank
  • Your Voice Can Make a Difference: Come to Washington!
  • Regulators Stress Compliance with Business Continuity Planning
  • USDA to Announce Long-term Agricultural Projections
  • Updates on the Economy
  • Baker Market Update
  • Brag About YOUR Bank: 2010 BKD Award Entry Form Now Available
  • CBAI’s 20th Annual Officer Compensation Survey Now Online!
  • Kasasa™: Helping Community Banks Thrive In Today’s Market
  • It’s Time to Consider “Change” in Planning for 2010
  • A Real “One – Two” Punch in the Fight for the Business Customer!
  • Abound Resources Survey: Efficiency a Common Denominator in Community Bank 2010 Plans
  • FREE Community Banking Week Materials Now Available
  • Closing Session Speaker at 36th Annual Convention Announced
  • CBAI Lending Seminars -- February 17-19
  • How to Prepare for a Remote Deposit Capture Exam -- February 17-18
  • CBAI Banking Essentials -- February 23-24


  • CBAI Attends Durbin Press Conference on Small Business Lending

    CBAI leadership bankers joined Illinois Senator Richard J. Durbin this week to introduce the Adminstration's new $30 billion small business lending program at a news conference in Chicago.
    More.

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    Administration Announces Proposed SBA Lending Initiatives

    Two new small business lending initiatives have been proposed by the Obama Administration to help increase access to capital and create jobs. They include a refinancing program for small business owner-occupied commercial real estate and an expanded working capital loan program. The Administration also called on Congress to authorize a permanent increase of the maximum loan sizes for the SBA 7(a), 504, and microloan programs.
    See Fact Sheet.

    Meanwhile, the National Federation of Independent Business (NFIB) described the initiatives as misdirected based on the contention that the top problem for small businesses is weak demand rather than a lack of credit. NFIB asserts that stimulus should focus on reviving consumer spending.

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    Small-Business Lending Plan Music to Many Ears

    And, in a related story from the Chicago Tribune:
    Some worry if Obama's
    proposal may not be too little and too late.

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    Regulators Issue Joint Statement on Lending to Small Businesses

    On February 5, 2010, the federal regulatory agencies and the Conference of State Bank Supervisors issued a
    joint statement that banks that engage in prudent small business lending after performing a comprehensive review of a borrower’s financial condition will not be subject to supervisory criticism for small business loans made on that basis.

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    Volcker Proposes Financial Reforms

    Paul Volcker, former chairman of the Federal Reserve and current chairman of the president’s Economic Recovery Advisory Board, recently called on Congress to enact needed reforms of the financial system. He
    recommends that commercial banks not be allowed to own or sponsor hedge funds and private equity funds, nor should they be permitted to engage in proprietary trading (placing bank capital at risk in search of speculative profit). He also urged creation of a new systemic-risk authority to resolve failing giant banks in an orderly liquidation or merger.

    He noted that big banks want to return to business as usual. “They will argue that they themselves and intelligent regulators and supervisors… can maintain needed surveillance, foresee the dangers and manage the risks. In contrast I will tell you that is no substitute for structural change… I’ve been there—as regulator, as central banker, as commercial bank official and director – for almost 60 years. I have observed how memories dim.” Volcker concluded with a grim warning, “We need to face up to needed structural changes, and place them into law. To do less will simply mean ultimate failure – failure to accept responsibility for learning from the lessons of the past and anticipating the needs of the future.”

    Volcker’s proposals are included in CBAI’s recommendations for reform.

    CBAI’s federal platform also recommends that Congress: 1) restore Glass-Steagall provisions to prevent the common ownership of commercial banks and investment banks; 2) base FDIC assessments on total assets less tangible capital rather than domestic deposits, a change that will more equitably apportion assessments so that big banks pay more and small banks pay less; 3) establish a systemic risk fund that is pre-funded by the too-big-to-fail banks so that taxpayers aren’t at risk; and 4) break up the TBTF banks and make them smaller. CBAI is the only banking association in Illinois that supports these important reform measures.

    In addition, CBAI is urging Congress to exempt community banks from further burdensome regulations and to increase regulations for the shadow banking industry (mortgage banking, etc.) that contributed to the financial crisis.

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    Who Is Really Dividing the Banking Industry?

    “. . . every time ICBA speaks out on behalf of community banks, we’re accused of being “divisive”—or worse. In a game as old as Washington, the big banks and their hired guns stack the deck, then turn around and accuse us of playing unfairly.” Read the
    blog of ICBA President Cam Fine.

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    Washington’s Governor Urges Regulators to Address Harsh Exams

    During a
    news conference on February 8, 2010, Washington Governor Christine Gregoire called on federal regulators to address the overly harsh examination environment to help keep credit flowing to small businesses. She was joined at the news conference by John Collins, President of the Community Bankers of Washington. ICBA, CBAI and other community banking associations across America have repeatedly urged regulators to address the ubiquitous problem of overly aggressive examiners and mixed messages among the regulatory agencies. CBAI applauds Governor Gregoire’s efforts.

    In December, CBAI board member Matt Gambs, President of Diamond Bank, FSB, Schaumburg, participated in a meeting at the White House that addressed small business lending issues and the regulatory exam environment.

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    Congresswoman Schakowsky Moves to Community Bank

    In a recent article titled
    “Ending My Abusive Relationship” in "The Hill" newspaper, Congresswoman Jan Schakowsky (D-IL) details her frustration with mega-banks and her satisfaction with a community bank, Devon Bank, Chicago. (Distributed with permission from Representative Schakowsky and Richard Loundy of Devon Bank.)

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    Your Voice Can Make a Difference: Come to Washington!

    REGISTER TODAY for the 28th Annual CBAI Washington Visitation! April 25- 27, Renaissance Mayflower Hotel, Washington, D.C. Click here for more information. Please contact
    Megan Stieren or Jessie Schmidt at 217/529-2265 if you have questions or comments.

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    Regulators Stress Compliance with Business Continuity Planning

    The FFIEC has upgraded expectations for business resumption planning and preparedness. Due to a far greater reliance on technology, changes in business processes, and significant increases in disaster circumstances, the joint agencies have substantially raised the bar on business continuity planning. The expectation is that each institution develop a plan that gets them back to normal business operations in a timely fashion, and the plan needs to be tested and fully documented.
    More.

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    USDA to Announce Long-term Agricultural Projections

    The U. S. Department of Agriculture is expected to release new 10-year agricultural projections tomorrow (February 11). They will be available on the Office of the Chief Economist web site at www.usda.gov/oce. The projections will cover crop and livestock commodities, and agricultural trade and aggregate indicators such as farm income and food prices through 2019.
    See News Release.

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    Updates on the Economy

    Small-Business Optimism Index Climbs

    Confidence among small businesses increased in January for the first time in three months, according to the National Federation of Independent Business Index. The primary reasons for optimism were an improved outlook for sales and a reduction in the number of companies planning to cut stockpiles. The Small Business Administration reported that small businesses represent more than 99 percent of all U.S. employers and have created 64 percent of all new jobs in the past 15 years.
    See Article.

    Groundhog Day for Chicago’s Economy?

    Chicago Federal Reserve economist Bill Testa offers an historical perspective on Chicago’s economy since 1980 and what might be ahead. See Report.

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    Baker Market Update

    Mixed surveys report January payrolls decline by 20,000 but jobless rate drops to 9.7%.
    More.

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    Brag About YOUR Bank: 2010 BKD Award Entry Form Now Available

    What sets your bank apart? Maybe it’s an innovative product or service – perhaps it’s a community or philanthropic effort. Let CBAI know with a nomination for the BKD Award, co-sponsored by CBAI and BKD, LLP.

    Click here for Award brochure.
    Click here for Entry form.

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    CBAI’s 20th Annual Officer Compensation Survey Now Online!
    FREE Member Benefit: Survey Now Online in New, Easy-to-Use Format!

    CBAI members that complete the Compensation Survey receive results for FREE. Officers’ salaries & benefits, directors’ fees, support personnel, vacations, holidays, and more are compared. New online survey format makes it easier than ever to complete.
    Click here to begin.

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    Kasasa™: Helping Community Banks Thrive In Today’s Market

    BancVue has recently launched the first national brand of innovative banking products, Kasasa™. The brand was developed to help community banks improve their competitive standing against mega banks and direct banks. By promoting the consumer-first philosophy of the accounts and community banks through large-scale marketing efforts, Kasasa aims to reinvigorate community banking across the country. For more details about Kasasa™,
    click here.

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    It’s Time to Consider “Change” in Planning for 2010

    CBAI member banks that have already deployed or are considering the deployment of Self Service Coin processing should take into account a wide variety of potential benefits… reduced teller labor, increased branch foot traffic and 100% customer face time on coin transactions. Many, however, need to recognize the real marketing value that can result in low-cost core deposit growth, increased customer wallet share, new customer acquisition, an enhanced (and potentially differentiated from competition) customer experience, customer retention and brand prominence… all of these can impact your 2010 budget and stretch it even farther! To see how CBAI Members have benefited with the addition of QuickChange™,
    click here to view our testimonial video. For additional information on the Talaris QuickChange™, click here.

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    A Real “One – Two” Punch in the Fight for the Business Customer!

    To assure victory in today’s extremely challenging environment for both your institution and your business customers, opportunities exist for your institution in 2010 to implement services and practices that promote immediate and long-term sustainable growth in the highly sought after small-business market segment.
    Check Resultz, CBSC’s endorsed provider for Business Account NSF Electronic Check Recovery, offers just such an opportunity to encourage organic growth, strengthen relationships with current customers, and attract new businesses through this value-added service offering.

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    Abound Resources Survey: Efficiency a Common Denominator in Community Bank 2010 Plans

    The top priority for community bank CEOs this year is balance sheet clean up while credit union CEOs are more focused on consumer loan growth. Both community bank and credit union CEOs, however, rank efficiency improvement as their number-two priority.

    According to Abound Resources’ newest survey results
    (download results), CEOs generally feel that the worst is over for community financial institutions (CFIs). With 2009 behind them, this group is fairly optimistic about the year ahead. About 40% of community-bank CEOs expressed optimism about the upcoming year.

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    FREE Community Banking Week Materials Now Available

    Community Banking Week 2010 is scheduled for April 4-10. Contact the CBAI Department of Communications to order your free kit:
    Bobbi Watson.

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    Closing Session Speaker at 36th Annual Convention Announced

    Kevin Beckemeyer, CBAI Special Events Committee Chairman, and president of Legence Bank, Eldorado, announced that Lee Wetherington, AAP, and director of Strategic Insight for Jack Henry & Associates, Inc. will address participants of CBAI 36th Annual Convention during the closing general session on Saturday, October 2, 2010, in Louisville. Beckemeyer said the Special Events committee selected Wetherington because he delivers a fantastic blend of content and humor. He stated, “No one has a better understanding of the trends and implications of the new technologies than Lee Wetherington”.

    Wetherington will address “Technology as a Strategy for the Upturn.” In tight times banks typically get back to basics: reducing expenses and increasing profitability. He believes community banks that leverage technology wisely will capitalize on growth trends in payments, win the core deposits and, most important, secure that small percentage of customers who make banks profitable.

    More information regarding CBAI’s 36th Annual Convention & Expo will be available soon!

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    CBAI Lending Seminars -- February 17-19

      ANALYZING CASH FLOW FROM INCOME-PRODUCING OR RENTAL REAL ESTATE
      • Demonstrates the key variables and concepts for determining real estate cash flow, plus primary analytical techniques such as stress-testing.
      • Explores where to find information from existing sources, such as tax returns, and what additional information may be needed, such as customer rent rolls.

      REVIEWING & INTERPRETING COMMERCIAL REAL ESTATE APPRAISALS
      • While this program touches on the major issues of the entire appraisal process, including selecting and engaging a qualified appraiser, the emphasis is 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 your bank's CRE portfolio, including dealing with problem, credits, stress testing, and the appraisal process.
    Leading these three consecutive lending seminars is Richard Hamm of Advantage Consulting & Training in Hunstville, AL. These seminars may be attended as a three-day series or as stand-alone courses.

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    How to Prepare for a Remote Deposit Capture Exam -- February 17-18

    The FFIEC issued guidance for the Risk Management of Remote Deposit Capture in January 2009, and while the guidance provides a broad overview of remote deposit capture and regulatory expectations regarding implementation, there are specific requirements you are expected to implement. This seminar answers these questions and helps you get your policies, procedures, and risk mitigation strategies in compliance with the guidance and with best industry practices. Susan Orr, president of Susan Orr Consulting, Ltd., an IT regulatory compliance consulting and IT audit firm for the financial services field, leads this seminar.

    For more information or to register, please
    click here.

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    CBAI Banking Essentials -- February 23-24

    The Community Bankers Association of Illinois (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, 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, senior consultant of Young & Associates, Inc., Kent, OH, 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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    CBAI

           

    CBAI's PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 03/31/2010



    TELEPHONE/WEBCASTS THROUGH 03/12/2010




    OTHER CBAI EVENTS THROUGH 04/17/2010


    CBAI 2010 Capital Conference: Wednesday, February 24, Springfield Hilton Hotel

    Community Banking Week in Illinois, April 4-10. For a free kit, contact the CBAI Department of Communications: bobbiw@cbai.com or cbaicom@cbai.com.

    28th Annual CBAI Washington Visitation: April 25-27, Renaissance Mayflower Hotel, Washington, D.C.


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