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 13, 2008 Graphic
Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois

  • Federal Home Loan Banks Continue Merger Discussions
  • Keynote Speakers for Spring Group Meetings Introduced
  • Capitol Steps To Entertain at CBAI's 34th Annual Convention
  • Baker Market Update
  • Paper Costs Rise - Act Now To Save Money
  • CBAI Members Selected for FDIC Small-Dollar Loan Pilot
  • How Harland Clarke Enhances Data Security
  • CBAI Officer Compensation Survey Now Online
  • Business-Debit Programs Can Increase Your Bottom Line
  • 24th Annual Capital Conference Scheduled for 2/20/08
  • New Group Insurance Coverage
  • Legal Link: Bank Regulators Permit Tax-Preparation Services
  • Fifteen CBAI Members Appointed to ICBA Committees
  • FundsXpress™ White Paper: Protecting Your Customers Against Phishing

  • Federal Home Loan Banks Continue Merger Discussions
    Last week, the American Banker newpaper reported that the boards of the Federal Home Loan Banks of Chicago and Dallas have approved merger plans. However, the FHLB Chicago immediately sent an e-mail to all of its members stating that merger discussions with the FHLB Dallas continue, but a definitive agreement has not been reached. Any such agreement would need to be disclosed in a SEC filing and the FHLB Chicago would also notify its members directly. Also, the Federal Housing Finance Board, which regulates the 12 Home Loan banks, must approve any merger between FHLBs.

    According to the story, sources say the Chicago bank will essentially sell itself to the Dallas bank. The cease-and-desist order issued to the Chicago bank last October, which imposed capital requirements and dividend restrictions, would likely be lifted. This would give members in the Chicago bank's district a better shot at dividend payments in the future.

    CBAI has called on the Federal Housing Finance Board to allow member shareholders to vote on the merger. In a letter dated January 8, CBAI Chairman Kent Siltman said in part:

      "…Our association has no pre-disposition on the merits of such a merger. However, we do have questions regarding the benefits of a merger to shareholding banks, both financially and in regard to the future delivery of services. It is our belief that subjecting a proposed merger to a vote of the shareholder banks would elicit a thorough explanation of the merits and provide us with a solid basis on which to form a judgment."
    To view the complete text of Chairman Siltman's letter, click here.

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    Keynote Speakers for Spring Group Meetings Introduced
    The 2008 Group Meeting after-dinner presentation, led by IDentity Theft LOSS Prevention, LLC, Ottawa Lake, MI, provides a broad overview of identity-theft and information-security issues in the workplace. Either Tom Glanville, founder and CEO; Frank Mitchell, chief operations officer; or Mark Mitchell, vice president of sales and marketing, will both educate and entertain as they share their experiences of consulting with businesspeople and other individuals.

    Banks' and Associate Members' Group Meeting Invitations will be mailed approximately six weeks prior to their meetings. For a complete schedule of Group Meetings,
    click here.

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    Capitol Steps To Entertain at CBAI's 34th Annual Convention
    The Saturday night dinner dance features the Capitol Steps, a troupe of Congressional staffers - turned comedians who travel the U.S. satirizing the very people and places that once employed them. No matter who holds office, the Steps contend there is never a shortage of updated material. Thus, don't be surprised if their material includes George Bush's latest malapropism or the Presidential election and its contenders. So plan now to attend to hear the Capitol Steps special brand of comedy and find out who makes and does not make the hit parade.

    The CBAI 34th Annual Convention is September 11-13 at the Crowne Plaza Hotel in Springfield. For more information,
    click here.

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    Baker Market Update
    Treasuries rally as market sees paltry 0.6% GDP for Q1, lackluster 30Yr government auction; housing woes still deteriorating market conditions; business activity wanes in January.
    More details.

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    Paper Costs Rise - Act Now To Save Money
    The price of copy paper will increase a minimum of six percent on February 18, 2008. Community BancService Corporation, Inc. (CBSC) has negotiated with Midwest Office Supply to provide CBAI members the opportunity to purchase copy paper NOW and save money.

    attached flyer describes this special offer in greater detail.

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    CBAI Members Selected for FDIC Small-Dollar Loan Pilot
    Two CBAI members have been selected by the FDIC to participate in a two-year pilot program intended to identify best practices in affordable small-dollar loan programs. They are First United Bank, Crete and Community Bank of Wheaton/Glen Ellyn in Glen Ellyn. The project will examine existing small-dollar loan programs in 30 banks and determine how to replicate the programs throughout the banking profession.

    The FDIC wants to evaluate profitable programs that utilize automatic savings components, streamlined loan application processing, payment periods beyond a single payment cycle, interest rates below 36 percent, low or no origination fees, no prepayment penalties, and access to financial education. FDIC Chairman Sheila Bair stated, "Our goal is to identify small-dollar loan programs that are profitable for lenders and affordable alternatives to payday loans and other high-cost loans that are harming consumers and communities across America." For more information, please
    click here.

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    How Harland Clarke Enhances Data Security
    Chief Information Security Officer, John Petrie, describes how Harland Clarke enhanced its data protection and security practices for its clients and their customers.
    Click here to read the full story.

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    CBAI Officer Compensation Survey Now Online
    The 18th Annual CBAI Officer Compensation Survey will provide your bank with officer salaries, incentive, and benefits by bank asset size and geographical location. In addition, it includes support personnel pay, directors' fees, vacation information, and more. Results are FREE to CBAI member banks that participate. To access the Survey,
    click here.

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    Business-Debit Programs Can Increase Your Bottom Line
    Debit cards have become the fastest-growing payment method for consumers. Following that trend, more and more businesses are choosing debit as their payment method of choice for everyday business expenses. The growth in popularity and usage of debit cards among businesses creates a unique opportunity for your bank to increase its bottom line with a business debit card program. For full story,
    click here.

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    24th Annual Capital Conference Scheduled for 2/20/08
    Capital Conference is CBAI's premier annual event for community-bank officers and directors from across the state to come to our state capital and discuss legislative and regulatory issues of interest with elected officials. The Agenda includes a briefing on legislation, regulation, and litigation affecting banking today, a presentation by Rich Miller of Capitol Fax acclaim, direct lobbying at the state capitol, group meetings with State Treasurer Alexi Giannoulias and State Senate Minority Leader Frank Watson, and a sumptuous legislative reception. For further details and to register,
    click here.

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    New Group Insurance Coverage
      Do you know someone that is in a long-term care facility because of an illness or accident?
      Does your health plan provide for a stay at a long-term care facility?
      Do you qualify for government assistance in a long-term care facility?
      Have you set aside money for a long recovery period in case of sickness or accident?
    If you are like 93% of Americans, you have no idea how you would pay for a stay in a long-term care facility. Now is the time to consider long-term care protection. The cost of care is rising and the premiums will never be as affordable as they are today. CBIS can write a Group Long-Term Care policy for your bank that has comprehensive coverage and competitive prices.

    Group Long-Term Care plans are guarantee-issue, portable, and include carve-outs for selected employees, including directors. Long-Term Care premiums are tax-deductible and benefits are tax free.

    Don't miss this unique opportunity to protect your employees and directors from financial ruin and offer them a chance to maintain their dignities during unexpected accidents or illnesses.

    To learn more about Group Long-Term Care Insurance, please contact Tedd Teeter @ 800-736-2224 or

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    Legal Link: Bank Regulators Permit Tax-Preparation Services
    Both the federal Office of the Comptroller of the Currency ("OCC") and the Illinois Department of Financial and Professional Regulation ("IDFPR") permit banks to offer tax-preparation services. The relevant OCC regulation (12 CFR 7.1008) states:

      "A national bank may assist its customers in preparing their tax returns, either gratuitously or for a fee."
    IDFPR adopted the same position with respect to state-chartered banks when it issued Interpretive Letter #97-01 in January of 1997. In that Interpretive Letter, IDFPR concluded, "tax preparation services are financial services that are incidental to an Illinois bank's statutory authority to carry on a 'general banking business,' and, therefore, are permissible activities pursuant to Section 3 of the (Illinois Banking) Act." IDFPR also cited the OCC regulation as additional authority, given the fact that the "wild card" or "parity" language in Section 5(11) of the Illinois Banking Act authorizes state banks to engage in the same activities permitted for national banks.

    Interpretive Letter #97-01 mentioned with approval the bank's plan to execute an "engagement letter" defining the relationship between the bank as tax preparer and the customer/tax payer. The engagement letter included the disclaimer that the customer was responsible for submitting accurate and complete information to the bank, and that the bank assumed no responsibility to verify the information provided by the customer. The engagement letter also disclosed that the bank was merely offering the service of preparing the tax return and was not offering expert advice, tax planning, or interpretations of tax laws. IDFPR concluded that such disclosures represented "appropriate care to establish clearly that the Bank is not serving as an expert tax consultant in preparing a customer's return."

    Legal Link is a free CBAI member benefit. For answers to your general, banking-related legal questions, contact Jerry Cavanaugh in the "Members Only" section of the CBAI web site,

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    Fifteen CBAI Members Appointed to ICBA Committees
    The incoming chairman of the Independent Community Bankers of America (ICBA) has appointed 15 CBAI members to serve on various ICBA standing committees for the annual period commencing in March, 2008. Cynthia Blankenship, vice chairman of Bank of the West in Grapevine, TX, will become ICBA chairman during ICBA's National Convention and Techworld on March 2-6, 2008, in Orlando. She will follow current ICBA Chairman Jim Ghiglieri of the Alpha Financial Group, Toluca, IL and former CBAI chairman.

    All ICBA appointees from Illinois are CBAI members:

       Jim Ashworth (Carlinville)  Regulation Review Committee
         ICBA State Director
       Mike Estes (Fisher)  Tax Committee
       Mark Field (Liberty)  Regulation Review Committee
       Jim Ghiglieri (Toluca)  Executive Committee
         Congressional Affairs Committee
         Policy Development Committee
         Strategic Planning Committee
       Tom Gooding (Hillsboro)  Regulation Review Committee
       Gerry Johnson (Grand Ridge)  Lending Committee
       Larry Maschhoff (Normal)  Regulation Review Committee
       Greg Ohlendorf (Beecher)  Membership/Marketing Committee
       John Schneider (Springfield)  ICBA Political Action Committee
       David Schroeder (Buffalo Grove)  Congressional Affairs Committee
       Sam Scott (Bethany)  FHLB Task Force
         Lending Committee
       Kent Siltman (Walnut)  Agriculture Rural America Committee
       Preston Smith (Mulberry Grove)  ICBA Political Action Committee
       Mary Sulser (Chester)  Bank Education Committee
       Andy Tinberg (Oak Forest)  Payments and Technology Committee
    In addition, Jim Shafer of Tremont serves on the ICBA Board of Directors as an ICBA State Director who was elected by his peers in the northern half of Illinois. CBAI congratulates and thanks these dedicated community bankers who have agreed to invest their time and knowledge to advance the cause of community banking through ICBA in Washington, D. C.

    CBAI affiliates only with ICBA at the national level. ICBA is the largest financial institution association in the nation with nearly 5,000 members.

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    FundsXpress White Paper: Protecting Your Customers Against Phishing
    As you are no doubt aware, fraudulent e-mail scams are a growing problem. Increasingly, consumers are receiving e-mails and/or pop-ups requesting personal financial and confidential information.

    To view the entire white paper from CBSC preferred-service provider FundsXpress™,
    click here.

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    Capital Conference 2/20/08 - Register Now!

    CBAI's Professional Development Programs thru 2/29:

    › Loan Review Fundamentals and Reviewing Individual Loans & Portfolio Segments

    › Banking Essentials: Regulatory Guidelines
    & Examinations

    › CEO Forums

    Telephone/Webcasts thru 2/29:

    › BSA Exam Issues for Non-Resident Aliens

    › Robbery Response Training: Fulfilling Your Staff's BPA Requirements

    › Establishing, Revising or Improving a Risk Management Program

    CBAI 18th Annual Officer Compensation Survey Deadline: 4/2

    Community Banking Week in Illinois
    4/6 - 4/12

    CBAI's 34th Annual Convention:
    "Hometown Heroes", 9/11-13, 2008
    Crowne Plaza Hotel,


    Officer Compensation Survey

    Web-Site Hosting

    Market Analysis and Branch Planning

    Market Opinion Research

    Institutional Investment Services

    Check Printing/Direct Marketing Services

    Credit Cards

    Merchant Cards

    Debit/ATM Network Services

    Internet Banking

    Overdraft Privilege

    Compliance Software

    Mortgage Lending

    Office Supplies and Furniture

    Disaster Recovery Facilities

    Loan Audit Review

    Club Account Strategies

    Currency Equipment

    Debt Collection

    Manufactured Housing Lending

    Reward Checking

    UCC Search, Retrieval and Filing

    Fraud Resources

    "Winning Communities"

    Career Center and Message Board

    Travellers Cheques, Foreign Exchange Services


    Life and Disability

    Health Savings Accounts

    Employee Benefits

    Benefits Financing Alternatives

    Executive and Director Compensation




    Annual Essay Scholarship

    William C. Harris Memorial Scholarship

    The SHAZAM® Scholarship

    Donor Recognition

    How to Contribute



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