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Community Bankers Association of Illinois
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     A Bi-Weekly News Bulletin for CBAI Members                                    February 14, 2018

Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • Register Today for CBAI's 36th Annual Call on Washington!
  • Senator Hatch Speaks Out Against Credit Union Power Grab
  • ICBA: More, Not Fewer, Community Banks Needed
  • Fed Drops Hammer on Wells Fargo
  • OCC, CFPB Heads Meet on Regulatory Burden
  • Investment News from THE BAKER GROUP
  • USDA’s Perdue: New Farm Bill Needed
  • ICBA and Farm Groups Seek USDA Farm Loan Funding
  • USDA Unveils Interactive Site for Ag Producers
  • Powell Replaces Yellen as Federal Reserve Board Chairman
  • CBAI's 34th Annual Capital Conference Registration is Underway
  • When It Comes to Your Debit-Card Program, It’s Hardly a Level Playing Field
  • TRID Disclosure Document Confusion
  • Community Banking Week in Illinois Is Coming!
  • The 2018 CBAI Compensation Survey Is Now Online!
  • CBIS: Fiduciary Rule Update for Bankers
  • CBAI LEGAL: Split Decisions in Guarantor, TILA Rescission Cases
  • CBAI Announces After-Dinner Presentation at 2018 Spring Group Meetings
  • CBAI Announces Opening Breakfast Speaker at 44th Annual Convention & Expo
  • Commercial Lending Institute Set for February 21-23
  • BSA/AML Conference Scheduled for March 7
  • Asset/Liability Management Seminar Slated for March 8

  • Register Today for CBAI's 36th Annual Call on Washington

    CBAI's Call on Washington is to be held April 8-11, 2018, at the Grand Hyatt Washington. This is an annual lobbying trip organized by the CBAI. For 35 years, community bankers from across Illinois have been traveling to Washington, D.C. to express their position on issues to their Members of Congress.

    Call on Washington will once again be in conjunction with ICBA’s 2018 Capital Summit. Along with CBAI coordinated events, Illinois’ entire delegation is also invited to attend ICBA’s meetings and events.

    The timing of this years Call on Washington couldn't be better as legislators debate the meaningful regulatory relief prevision of S.2155. Community bankers need to continue to lobby Congress to push this bill over the finish line. See More Details and Register Here.

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    Senator Hatch Speaks Out Against Credit Union Power Grab

    On January 31, 2018, Senate Finance Chairman Orrin Hatch (R-Utah) sent a letter to the National Credit Union Administration expressing concern that credit unions may be operating beyond their tax-exempt purpose. Noting that the credit union tax exemption is valued at approximately $2.9 billion this year, Hatch cited several of the NCUA’s CBAI and ICBA opposed actions, including rules on field of membership, commercial lending, and alternative capital.

    ICBA promptly expressed appreciation to the Senator for his stand. “ICBA thanks Senator Hatch for speaking out against the tax-exempt credit union industry, which for too long has enjoyed the benefits of competing with tax-paying community banks,” ICBA President and CEO Cam Fine said.

    Also recently, a Tax Foundation analyst said lawmakers should reexamine the credit union tax exemption given changes in the financial services industry. CBAI and ICBA strongly support repealing the tax exemption, which was strongly advocated during the tax reform debate. Read Hatch Letter. See ICBA Release. Read Tax Foundation Report.

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    ICBA: More, Not Fewer, Community Banks Needed

    Those who encourage banking consolidation for private gain fail to recognize its significant societal cost in decreasing access to financial services, ICBA President and CEO-elect Rebeca Romero Rainey wrote in a new op-ed. Responding to an American Banker op-ed that said the United States would be better served with half as many banks, Romero Rainey wrote that we should instead work to expand the profession. CBAI applauds her strong response.

    “We’ve consolidated enough,” Romero Rainey wrote. “Instead, tailoring our regulatory system and easing the compliance burden will help promote access to financial services that puts customers and local communities first.” Read Op-Ed.

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    Have you finalized your 2018 training plan? This is a great opportunity to prepare your organization to move out of disaster mode quickly and toward a resolution with SHAZAM Media Relations Training. Or, educate your community and invite business owners, city officials and law enforcement to participate in our Crisis Management skimming and card-cloning presentation. Spots are filling quickly, contact SHAZAM today.

    Fed Drops Hammer on Wells Fargo

    The Federal Reserve voted unanimously on February 2, 2018, to impose an unprecedented enforcement action against Wells Fargo in response to its phony-accounts scandal, restricting the bank’s future growth, while Wells said it would remove four members of its board of directors.

    “Responding to recent and widespread consumer abuses and other compliance breakdowns by Wells Fargo, the Federal Reserve Board on Friday announced that it would restrict the growth of the firm until it sufficiently improves its governance and controls,” the Fed said in its release.

    CBAI applauds the actions of the Federal Reserve. For several years CBAI has called on regulators to address the abuses of the mega banks and the double standard in regulatory actions between community banks and mega banks. Read ICBA Release. See Market Reaction.

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    OCC, CFPB Heads Meet on Regulatory Burden

    Comptroller of the Currency Joseph Otting said he shares Consumer Financial Protection Bureau Acting Director Mick Mulvaney’s willingness to reevaluate unnecessary regulatory burdens. Following a meeting with Mulvaney last week and citing his delayed implementation of the bureau’s Home Mortgage Disclosure Act final rule, Otting said unnecessary burdens harm the economy without making the system safer. Read Otting’s Statement.

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    Investment News from THE BAKER GROUP

    Baker Market Update

    A reversal of fortune can happen quickly in the world of investing, and many of those who started out the week sippin’ the wine are now finding themselves stompin’ the grapes. To make matters worse, even grape futures are down. And bond prices, which unlike stocks have at least a tangential connection to reality, have gotten a little nicked-up, too. See Baker Market Update.

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    USDA’s Perdue: New Farm Bill Needed

    Agriculture Secretary Sonny Perdue told Congress last week that the Trump administration’s regulatory relief efforts will help struggling farmers, but a new farm bill and adequate funding remain necessary. Testifying before the House Agriculture Committee, Perdue said producers have experienced over the past four years the steepest decline in net farm income since the Great Depression, with many operations vulnerable to low prices. Read Perdue’s Statement.

    LaHood Proposes "One and Done" Farm Program Sign-up

    Farmers could sign up for federal farm programs just once during the next farm bill under legislation introduced last week by U. S. Representative Darin LaHood (R-Peoria). HR 4904, the Lessening Regulatory Burdens on our Farmers Act, would amend the 2014 farm bill. It would allow the USDA’s Farm Service Agency to automatically renew enrollment each year. No additional sign-ups would be required unless business changes to the farming operation occur. Read More.

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    ICBA and Farm Groups Seek USDA Farm Loan Funding

    ICBA and several farm-related groups sent a letter to House and Senate appropriations committee leaders last week seeking adequate funding and flexibility for USDA farm-lending programs. The letter asks lawmakers to provide flexibility for funding the Farm Service Agency’s farm-loan programs, noting that winter and spring months are particularly busy for farm-loan activity. Read Coalition Letter.

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    USDA Unveils Interactive Site for Ag Producers

    The USDA unveiled, the new interactive website for agricultural producers. The site will add features in the coming months to allow producers to make appointments with USDA offices, file forms, and apply for USDA programs. Visit the USDA Site.

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    Powell Replaces Yellen as Federal Reserve Board Chairman

    Jerome Powell last week replaced Janet Yellen as chairman of the Federal Reserve. Yellen served as Fed chair since February 2014 and previously as vice chair, while Powell has been a member of the Board of Governors since May 2012.

    In a statement, ICBA thanked Yellen for her service and said the association looks forward to working with Powell. See Federal Reserve Release. Read ICBA Statement.

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    CBAI's 34th Annual Capital Conference Registration is Underway!

    Your Advocacy Is Crucial

    For one day every year, CBAI member bankers make their voices heard face-to-face with lawmakers at the state Capitol. The 34th Annual Capital Conference will be held Wednesday, April 18, 2018 at the Wyndham Springfield City Centre (formerly the Hilton Hotel). The day begins with a legislative briefing and luncheon. After lunch, with key talking points in hand, our constituency moves to the State Capitol to meet with regulators and legislators. The day is capped off with a reception for bankers, legislators and regulators at the top of the Wyndham, which affords sweeping views of the Capital City. This is an opportunity you don't want to miss!

    The Early-bird special is ONLY $100 per institution. After April 1, 2018, the cost will be $150 per institution. REGISTER TODAY!

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    When It Comes to Your Debit-Card Program, It’s Hardly a Level Playing Field

    Increasingly, the rules and circumstances for the use and cost of your debit-card program are being dictated to you. A small group of very large and very powerful companies are setting the terms for when and how your cardholders can access their money, and how much the whole transaction is going to cost. They can do it because they own the technology, they control the rule-making, and they certify how almost all forms of electronic payment are taken. There’s a lot of influence wielded by a group of public companies that have shareholders to answer to. Read More.

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    TRID Disclosure Document Confusion

    While some lenders mistakenly assume that only two documents—the Loan Estimate and Closing Disclosure—matter under new TRID rules, other disclosure documents in fact still have applicability, depending on the loan. Consultants from CBSC preferred provider Wolters Kluwer help clarify the circumstances for use of various loan disclosure documents. Read More.

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    Community Banking Week in Illinois Is Coming!

    April 1-7, 2018 is the 28th Anniversary of Community Banking Week in Illinois. This year’s theme is “Community Bankers Are Always Ready to Help.” Community banks are inviting friends and neighbors to help celebrate the independent spirit that is the hallmark of locally run banks.

    For your FREE kit, contact Bobbi Watson at

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    The 2018 CBAI Compensation Survey Is Now Online!

    Results Are FREE for Members That Participate and You’re Not Going to Believe How Easy It Is to Complete!

    Is your bank competing effectively with your peers to attract, reward and retain the top talent in today’s job market? What is your strategy to win the race for qualified leadership and employees?

    Complete the 2018 CBAI Compensation Survey now and receive the results at no cost. BalancedComp, a national compensation expert, is partnered with CBAI to:

    1. ease the process of participating - possible to complete in under 30 minutes
    2. increase the survey's relevance to today’s banking environment
    3. enhance the resulting data's usability

    Survey results remain confidential and free to CBAI member participants, thanks to sponsor IZALE Financial Group.

    Click Here to Begin the Survey!

    Click Here for a .pdf of the survey to use as a worksheet.

    Click Here for a .pdf of the list of Benchmark Positions.

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    CBIS: Fiduciary Rule Update for Bankers

    In 2017, more than 6,700 lawsuits were filed against employers under the Employee Retirement Income Security Act, which was roughly in line with ERISA litigation from the previous year.

    The arm of the Labor Department that oversees the retirement and health care plans that employers sponsor—the Employee Benefits Security Administration—recovered $1.1 billion in fines and “corrections” to workplace benefits plans last year. Read More from CBIS Gallagher.

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    CBAI LEGAL: Split Decisions in Guarantor, TILA Rescission Cases

    A disbarred attorney failed to dodge his liability as a guarantor by raising a “promissory estoppel” defense, but a mortgagor was permitted to argue a TILA rescission claim after a foreclosure action had been filed against her. Read Most Recent CBAI LEGAL.

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    CBAI Announces After-Dinner Presentation at 2018 Spring Group Meetings

    CBAI leaders and executive staff are visiting 11 locations on the 2018 Group Meeting tour this spring. Bankers from nearly 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. (Note: The Group 1& 2 Meeting will follow a different format).

    This year’s after-dinner presentation is titled, "What You Don't Know Can Hurt You: Managing Technology Risk," with Sara Nielsen, who is senior vice president of technology and compliance at BankOnIT. Hear from a former regulator about the importance of a strong technology risk management program which will help to ensure that your bank is properly protected in this dynamic risk environment.

    The opening portion of each Group Meeting focuses on critical legislative and association issues. CBAI President Kraig Lounsberry will provide updates on Association projects and community banking in general; and Senior Vice President of Governmental Relations Jerry Peck will offer an up-to-the-minute report of banking-related legislative activities. See the schedule of Group Meetings that follows and make plans now to attend!

      Please Note: During the CBAI Annual Convention in September, the membership voted for changes in the structure of CBAI Groups. For efficiency, the former Groups 2 and 3 were combined, which occasioned changes in the numbering of all CBAI Groups with the exceptions of 1 and 2. Please refer to the document below for your bank’s current Group number.

    For the more information on the after-dinner presentation, the Group Meeting Schedule, and the new configuration of CBAI Groups, please Click Here.

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    CBAI Announces Opening Breakfast Speaker at 44th Annual Convention & Expo

    CBAI is pleased to announce the Opening Breakfast Speaker at the 44th Annual Convention & Expo, scheduled for September 27-29 at the Hyatt Regency at The Arch, St. Louis, MO. Kevin Brown's unconventional path to business and personal success taught him that winning in business and in life requires anything but conventional thinking. His resume includes an eclectic mix of career stops that ultimately led him to the purchase of a franchise at the age of 17. For nearly two decades Brown was a sales and marketing executive who helped grow a little-known family business into an industry giant with annual revenues reaching two billion dollars. After a career in franchising that spanned 30 years, Brown decided to retire from corporate America and pursue his passion for effecting positive change for as many people and organizations as possible. In his presentation, “The Hero Effect™ - Creating a Culture of Heroes at Every Level,” Brown takes his most requested program and focuses The HERO Effect™ principles on leadership. The foundation of this program can be summed up in one powerful idea -- we reproduce what we are! This program is designed to help participants create an environment where people are inspired to be the best version of themselves and deliver world-class performance to the people they serve; develop a team of people who are committed, focused and on fire for the brand they are helping to build; and design and deliver an organizational obsession statement that drives high performance and a world-class customer experience. Read More.

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    Commercial Lending Institute Set for February 21-23

    This three-day institute provides your commercial lenders with a solid foundation for producing and managing a quality loan portfolio. It focuses on analytical tools such as ratio, financial, cash flow analysis, as well as commercial loan structuring to enhance repayment capacity. Topics covered on day one include financial-statement review, credit and ratio analysis, asset-conversion cycle analysis, and ratio interpretation. Cash budgeting, loan structuring, commercial-loan documentation, and credit-risk management are among the topics on day two. Day three examines cash-flow analysis, financial forecasting, and writing credit memos. Jeffery Johnson, president and founder of Bankers Insight Group, Atlanta, Georgia, heads this faculty. He is joined Robert M. Swartz, manager, and Gary Genenbacher, CPA and partner, both of BKD, LLP.

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    BSA/AML Conference Scheduled for March 7

    The annual BSA/AML conference is the place to keep up-to-date with current BSA/AML activity and trends. Regulatory expectations for BSA remain high, and there continue to be subtle changes in the enforcement of the rules. This means there is a continued need to focus on the effective and meaningful elements of a BSA program. This conference will discuss many “need-to-know” issues for the BSA/AML professional. Each topic will be considered in depth, with a hands-on, interactive, and practical approach. This one-day program is designed to focus specifically on all applicable BSA activity over the last 12 months. The agenda for this annual conference changes each year and typically includes (as applicable) an overview of recent FinCEN activity such as enforcement actions and proposed regulatory changes, as well as applicable case studies, industry hot topics and an interactive round table discussion. Leading this conference is Bill Elliott, CRCM, senior consultant and manager of compliance at Young & Associates, Inc.

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    Asset/Liability Management Seminar Slated for March 8

    With the Federal Reserve amid its first tightening cycle in more than a decade, finding a balance between interest-rate risk, liquidity and performance has never been more critical. You can improve your liquidity position by holding a lot of cash, but performance suffers. You can increase performance with long-term fixed rate assets but may have to take on significant IRR to get there. Managing any one of these issues in isolation is easy but managing all three simultaneously is a challenge that all community banks must face. This program explores the unique relationship between IRR, liquidity and performance and give you specific ideas about how to manage all three simultaneously. It begins with a discussion of the current economic environment and the outlook for Federal Reserve monetary policy before looking at recent banking industry trends including a high-performance banking analysis. Discussions include topical regulatory and reporting issues related to interest-rate risk, liquidity and investments. Case studies are used to develop a Dynamic Liquidity Risk Management process and to present recommendations about how to improve investment portfolio performance while also managing IRR. It also examines the impact of recently passed tax reform on municipal bond valuations and whether banks should change their investment-portfolio management decisions as a result. Attendees see bank-specific data and analysis that include a peer group comparison, non-maturity deposit analysis, surge balance study and a Liquidity Stress Test. These analyses can be provided to each attendee after the session takes place. Ryan W. Hayhurst, managing director and member of the board of directors, and Matt Harris, CFA, senior vice president, at The Baker Group, Oklahoma City, lead this program.

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    THROUGH 04/30/2018






    Finer Points Blog

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