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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 15, 2017

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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • Capital Conference Registration Is Underway!
  • Distrust of Large Institutions Makes 2017 the Year of the Community Bank
  • Editorial: It’s Time to Move Ahead with Financial Reform
  • Yellen Offers Community Bank Regulatory-Relief Suggestions
  • OCC Details Regulatory Relief Final Rule
  • 94% of Illinois Banks Were Profitable in Q4-2016
  • Banks are Finally Sprouting Anew in America
  • Bill Would Increase USDA Loan Levels
  • Investment News From THE BAKER GROUP
  • Rural Mainstreet Economic Index Remained Weak in January
  • USDA Projects Continuing Financial Deterioration
  • Download a Free HMDA Readiness Project Plan Now!
  • Make Plans Now to Attend CBAI’s 2017 Group Meetings!
  • Your Peers Are Completing the CBAI Compensation Survey – Don’t Be Left Out
  • CBAI LEGAL: Certification of Trust
  • CBIS Nicoud: Cyber Breach Preparedness for Community Banks
  • Independent Banker Spotlights Future of Banking
  • BSA/AML Conference Slated for February 23
  • How to Deal with Difficult Employee Situations Set for March 1 & 3
  • iGen Is in Your Bank – Are You Ready? to be Held March 2
  • Universal Teller Seminar Scheduled for March 3


  • 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 33rd Annual Capital Conference will be held Wednesday, April 5 at the Wyndham Springfield City Centre (formerly the Hilton Hotel). The day begins with a legislative briefing and luncheon. This year's guest keynote speaker is newly elected Illinois Comptroller Susana Mendoza. 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!

    REGISTER NOW! The Early Bird Special is ONLY $100 per institution!

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    Distrust of Large Institutions Makes 2017 the Year of the Community Bank

    According to Maryland community banker Drew McKone, between the cross-sales scandal at Wells Fargo, a record-breaking data breach at Yahoo and a tumultuous election season complete with fake news, consumers trust in large organizations continues to decline.

    He notes that, for the banking profession, this level of distrust poses a huge challenge. In the eyes of the consumer, it would be easy to assume that nearly all institutions engage in some unsavory practices. But instead of assuming the role of the victim, community banks need to turn the challenge into an opportunity and use what happened at Wells as a teachable moment to affirm what differentiates community banks from big banks. Read More.

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    Editorial: It’s Time to Move Ahead with Financial Reform

    Congressman Barry Loudermilk (R-Ga) last week cited several poignant reasons why financial reform needs to happen now. While the financial crisis of 2007-2008 took a toll on the nation’s economy, his home state of Georgia was hit particularly hard, losing more banks than any other state in the nation and posting the highest foreclosure rates in the country for many months.

    Loudermilk said, “I believe the Financial Services Committee and Congress are on the right path to move sound policies to protect consumers, while giving every American access to needed financing – whether they seek to buy a home or start a new business. We must take advantage of this window of opportunity and enact conservative, free-market financial reforms that will unleash economic growth.” See The Hill Editorial.

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    The ability to batch-transfer funds efficiently and cost-effectively is an essential element in a cash management program. SHAZAM’s ACH services offers a cost-effective and efficient alternative to process transactions, such as direct deposits and government benefits, direct payments and business-to-business payments, e-checks, tax payments, child-support payments and much more. LEARN MORE about SHAZAM ACH and the benefits of membership today!



    Yellen Offers Community Bank Regulatory-Relief Suggestions

    Federal Reserve Chair Janet Yellen said this week that Congress might want to consider exempting community banks from the Volcker rule and federal incentive-compensation standards. Responding to questions during her testimony before the Senate Banking Committee, Yellen said the Fed and other agencies are taking steps to reduce regulatory burdens on community banks. She also indicated that an interest rate increase could come at the Federal Open Market Committee’s March meeting. Read More.

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    OCC Details Regulatory Relief Final Rule

    The Office of the Comptroller of the Currency issued a bulletin on its January 23 final rule designed to reduce burdens on national banks and federal savings associations. Among its provisions, the rule removes certain notice and disclosure requirements, simplifies certain licensing rules for mutuals, and clarifies national bank director oath requirements. Read OCC Bulletin.

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    94% of Illinois Banks Were Profitable in Q4-2016

    BankTrends, the CBAI’s preferred provider for Call Report data and peer analysis, has just released its fourth-quarter financial performance summary for Illinois community banks. View Report.

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    Banks are Finally Sprouting Anew in America

    Eight groups have filed applications in recent months with the FDIC to open new banks, spurred by an improving economy and an expected deregulatory push by Republicans in Washington.

    That is the most in a year since regulators clamped down on bank startups following the financial crisis, though it pales in comparison to the hundreds of applications regulators routinely received annually in the precrisis period. Three of the eight bank applications were in California. The remaining startups are in Georgia, Texas, Florida and Tennessee.

    CBAI has long-advocated new bank formations and continually urges the FDIC and other regulators to be accommodative. CBAI also provides guidance on the bank formation process. Read More. See CBAI Bank Formation Guide.

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    Bill Would Increase USDA Loan Levels

    Congressmen Mike Bost (R-Il) and Jim Costa (D-Ca) introduced CBAI and ICBA-supported legislation to update Farm Service Agency lending amounts to increase access to credit for farmers and ranchers. With USDA loan programs failing to keep pace with the cost of running agricultural businesses, the Beginning Agriculturist Lifetime Employment Act (H.R. 831) would more than double USDA guaranteed farm loans and increase direct loan levels. Read Release.

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    Investment News From THE BAKER GROUP

    Baker Market Update

    Will President Trump’s prediction of a “phenomenal” announcement regarding taxes be meaningful? Only time will tell. In the meantime, the longest bond rally in eight months came to an end last week. Another surprise was the nosedive in consumer credit. Read the details here. See Baker Market Update.

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    Rural Mainstreet Economic Index Remained Weak in January

    The Creighton University Rural Mainstreet Index remained weak in January with a reading below growth neutral for the 17th straight month, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. Survey Results at a Glance:

    • For a 17th straight month, the Rural Mainstreet Index remained below growth neutral.
    • Almost one-third of bank CEOs indicated that soaring loan defaults represented the greatest Rural Mainstreet banking threat for 2017.
    • Almost nine of ten bankers reported that low agriculture commodity represented the biggest threat to the rural economic for 2017.
    • Eighty percent of bankers expect the Federal Reserve to raise interest rates in the first half of 2017.
    • States with January Rural Mainstreet expansions: Illinois, Iowa, Missouri, Nebraska, and South
    Dakota; States with January Rural Mainstreet contractions: Colorado, Kansas, Minnesota, North Dakota and Wyoming.

    The January RMI for Illinois improved to a regional high of 63.2 from 34.2 in December. The farmland-price index climbed to 34.6 from December’s 17.9. The state’s new-hiring index rose to 55.0 from last month’s 52.4. Illinois job growth over the last 12 months; Illinois Rural Mainstreet, +1.4 percent; Urban Illinois +0.6 percent. See Mainstreet Economy Report.

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    USDA Projects Continuing Financial Deterioration

    The USDA’s Economic Research Service released its latest farm income forecasts showing the potential for continuing deterioration in the farm financial outlook. Net cash farm income for 2017 is expected to rise by 1.8 percent to $82.2 billion, adjusted for inflation. However, net farm income, which includes inventory flows and economic depreciation, is forecast down 8.7 percent to $54.8 billion. See USDA Forecasts.

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    Download a Free HMDA Readiness Project Plan Now!

    Many banks are struggling to get their arms around all of the areas where HMDA will impact your processes and employees. Using a project plan to scope out who and what can be helpful. Wolters Kluwer can help you get started with a sample plan to evaluate the impact of the expanded regulations and identify strengths, gaps and weaknesses in your current plan. Download the Wolters Kluwer Free Project Plan Today!

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    Make Plans Now to Attend CBAI’s 2017 Group Meetings!

    CBAI leaders and executive staff are visiting 11 locations on the 2017 Group Meeting Tour this spring. Bankers from nearly 200 banks participate in these enjoyable and informative events each year. For this year’s after-dinner presentation, you will hear from one of two experts from SHAZAM Network on either the topic of creating a robbery program at your bank or the topic of developing beneficial relationships with the local media. The opening portion of each Group Meeting focuses on critical legislative and association issues. CBAI President Bob Wingert will provide updates on Association projects and community banking in general, and Senior Vice President of Governmental Relations Kraig Lounsberry will offer an up-to-the-minute report of banking-related legislative activities.

    Consisting of an optional golf outing and a dinner meeting, each Group Meeting provides an excellent opportunity to get the latest information on key banking issues and catch up with friends and peers. (Note: The Groups 1, 2 & 3 meeting follow a different format). Make plans now to attend! See Group Meetings Schedule. See Group Meetings Agenda. See After Dinner Presenter Information.

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    Your Peers Are Completing the CBAI Compensation Survey – Don’t Be Left Out

    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 2017 Compensation Survey now and receive the confidential results at no cost. National compensation experts BalancedComp have 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

    Thanks to sponsor IZALE Financial Group, the results are free for CBAI Members that complete the survey.

    Click Here to begin the Survey. Click Here to print a paper copy of the Survey to use as a worksheet. Click Here for a list of benchmark positions.

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    CBAI LEGAL: Certification of Trust

    Under Illinois’ “Trusts and Trustees Act,” a bank may act upon a “certification of trust” to the same extent as if the bank possessed the entire trust agreement. In fact, there may be occasions where the bank has less liability exposure under a certification of trust as opposed to requiring delivery of the entire trust agreement for the bank’s records. Read Most Recent CBAI LEGAL.

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    CBIS Nicoud: Cyber Breach Preparedness for Community Banks

    State and federal regulators require community banks to have a disaster-recovery plan in place. That has long been the case, but regulators have only recently begun to enforce the requirement that the plan extends to exposure to cyber breaches.

    The good news is that some carriers have evolved underwriting practices and support services to help community bankers understand what needs to be done to prevent an attack, and what actions bankers need to immediately take in the event of a breach.

    The more troubling reality: technology and cyber threats are evolving faster than insurance contracts. That underscores two realities for community bankers. Read More.

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    Independent Banker Spotlights Future of Banking

    The February issue of ICBA’s Independent Banker magazine focuses on the future of banking and features articles on robo-advisors, data analysis, commercial lending and comprehensive tax reform. This month’s issue also previews the upcoming ICBA Community Banking LIVE® convention, scheduled for March 15-19 in San Antonio. Read More.

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    BSA/AML Conference Slated for February 23

    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 continues 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. This one-day program is designed to focus specifically on all applicable BSA activity over the last 12 months. This program helps to keep BSA personnel informed of industry trends, regulatory focuses, proposed rules, and other information relevant to the BSA professional. This conference is ideally suited to employees with BSA/AML responsibilities who have a basic understanding of anti--money laundering laws and regulations, including BSA officers, compliance officers, auditors, head tellers, and risk managers. Leading this seminar is Adam Witmer, senior consultant with Young & Associates, Inc., where he focuses on regulatory compliance.

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    How to Deal with Difficult Employee Situations Set for March 1 & 3

    Conflict in the workplace today is time consuming, costly, and generally unproductive. Hopefully, most employees want to please their supervisors and be successful in their jobs. Then what happens to create conflict on the job? What happens to cause a “good” employee to be a “difficult” employee? This training identifies the specific employee problem situations faced by managers, supervisors, training officers and human resources officers. It focuses on four proven approaches for dealing with difficult employee situations. Attendees learn tools and techniques to recognize and resolve conflicts early –– before they become problems. Leading this seminar is Dianne Barton, founder and president of Performance Solutions, Inc., Kennesaw, GA, a training and consulting company that specializes in providing solutions to the key challenges facing community banks today in attracting, selling, and servicing their customers.

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    iGen Is in Your Bank – Are You Ready? to be Held March 2

    Gen Y, the iGen is invading your bank, and by 2020 will comprise 40% of customers. They're savers and investors. They're fickle. They've killed Aeropostle and PacSun. They glorified Chipotle, and then murdered it. So how do you appeal the the iGen without "breaking the bank?" This entertaining seminar helps you determine specific actions to maximize the banking experience, and to increase the effectiveness of your sales efforts. Banks that embrace some of the ideas, techniques, and strategies discussed, will grab the lead over the competition. Senior executives, executives, vice presidents of retail, consumer lending, wealth management, branch management, branch managers, directors of marketing, marketing coordinators, and anyone responsible for improving the banking experience or increasing customer volumes in a community bank would benefit from attending this program. Topics covered include behind the scenes; key purchasing data for iGen; volunteerism and entrepreneurship; social media approaches; creating adult moments; retention tactics; iGen and the banking relationship; and 2017 and beyond. Leading this seminar is Duane F. Sobecki, CEO of Focused Results, LLC, Fishers, IN, a sales strategy, consulting, and training firm.

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    Universal Teller Seminar Scheduled for March 3

    With reduced in-branch transactions and customer visits and increase in technology, less traditional teller functions are needed. No longer can a frontline team member say: “It's not my job!” Today's frontline team is shifting from traditional positions (tellers, new-account representatives, financial service representatives, etc.) to a multi-tasking, “universal” banker. Today's customer base is shifting from the traditional, visit the bank twice a week, to quick response, electronic banking relationships with the bank. This workshop focuses on the essentials for today's universal banker in providing exceptional service, making referrals, and building profitable relationships from millennials to baby boomers. All bank employees in customer-contact positions throughout the bank including, frontline staff, branch managers and marketing directors would benefit from attending. Leading this seminar is Dianne Barton, founder and president of Performance Solutions, Inc., Kennesaw, GA, a training and consulting company that specializes in providing solutions to the key challenges facing community banks today in attracting, selling, and servicing their customers.

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