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Community Bankers Association of Illinois
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     A Bi-Weekly News Bulletin for CBAI Members                                    February 17, 2016

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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • CBAI Urges NCUA to Withdraw its Field of Membership Proposal
  • CECL Update - CBAI Member Attends FASB Meeting
  • Illinois Congressman Randy Hultgren Introduces Call Report Relief Legislation
  • Former Bailout Chief Calls for Breakup of Mega Banks
  • CLEAR Act Cosponsors Now Exceed 100
  • Register Now to Attend CBAI's 32nd Annual Capital Conference!
  • How Does Your Bank’s Compensation Compare with Your Peers?
  • Investment News From THE BAKER GROUP
  • SHAZAM: Fighting Fraud in 2016
  • Career Development Division Spring Meeting Schedule and Agenda Announced
  • Can You Become An Adaptable Bank?
  • Your Bank Could Win a $1,000 Scholarship to the Community Bankers School!
  • Millennial Advice on How to Run a Bank
  • Midwest Office: Showcase Your Brand with the Most Powerful Form of Advertising!
  • Are You Ready for Community Banking Week in 2016?
  • CBIS Nicoud: What the Most Recent Data on Bank Robberies Tell Us
  • Cloud Computing, Regulators and Efficiency
  • CBAI Announces Golf Outing Location for 42nd Annual Convention & Expo
  • Deposit Documentation Slated for February 23-25
  • Commercial Lending Institute Set for February 23-25
  • Directors’ College Scheduled for February 29 & March 1
  • Business Development in Today’s Challenging Environment March 1 and October 12


  • CBAI Urges NCUA to Withdraw its Field of Membership Proposal

    CBAI responded forcefully to the National Credit Union Administration’s (NCUA) proposed expansion of its field of membership rule and urged its immediate withdrawal. The proposed rule is being framed by the NCUA as regulatory relief versus what it really is - a wholesale charter enhancement. It’s the latest in a series of industry efforts in that direction. The sweeping changes in this proposal would dramatically extend the credit union tax-advantaged status over taxpaying community banks. Read More.

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    CECL Update - CBAI Member Attends FASB Meeting

    A Strong Congressional Response, and CBAI Staff Lobbies Issue in Washington

    CBAI member Greg Ohlendorf, President and CEO of First Community Bank and Trust in Beecher, Illinois, was one of four CBAI/ICBA bankers who attended the February 4, 2016 meeting with the Financial Accounting Standards Board (FASB) to discuss community banks’ serious concerns with FASB’s proposed Current Expected Credit Loss (CECL) model. Backing the community bank position was a U.S. House of Representatives’ letter to FASB (January 29, 2016) signed by 62 bi-partisan members.

    CBAI’s Vice President Federal Governmental Relations, David Schroeder, supported the efforts of Ohlendorf and U.S. House members during his quarterly visit to Washington last week. He cited the harmful effects of the CECL model with the entire Illinois congressional delegation. Read More.

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    Illinois Congressman Randy Hultgren Introduces Call Report Relief Legislation

    CBAI thanks Illinois Congressman Randy Hultgren (R-14) for introducing legislation to provide Call Report relief to community banks. The Community Bank Reporting Relief Act (H.R. 4500) amends the Federal Deposit Insurance Act to permit reduced reporting requirements for the first and third quarters for highly-rated and well-capitalized institutions. The streamlined reports would provide sufficient information to regulators while being less burdensome to prepare for community banks. Call Report regulatory relief is supported by CBAI and is included in ICBA’s Plan for Prosperity. Read More.

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    SHAZAM’s 2016 Forum will be igniting new opportunities with inspirational speakers, informative sessions and networking events. Knowledgeable experts will enlighten you on topics such as fraud, core services, mobile wallets, laughter in the workplace and more! Don’t miss out on SHAZAM’s 2016 Forum. Register Today!



    Former Bailout Chief Calls for Breakup of Mega Banks

    Neel Kashkari, the newly minted Minneapolis Federal Reserve Bank president, is launching a major initiative to aggressively reduce the risks posed by the biggest banks. Kashkari ran the Troubled Asset Relief Program as an assistant Treasury secretary during the financial crisis. TARP distributed more than $400 billion in taxpayer dollars to buy up banks’ toxic assets. He said in a Brookings Institution speech on Tuesday that Congress has not done enough to protect the financial system from future major risks.

    “Failures of large financial institutions pose massively asymmetric risks to society that policymakers must consider,” Kashkari said. “We must acknowledge that the largest banks are still too big to fail.” To that end, he proposed three options for reducing risk at systemically important financial institutions: break up the biggest banks, turn others into public utilities by forcing them to hold large amounts of capital, and tax their leverage. CBAI has long advocated that the mega banks should be downsized so they can be more effectively supervised, managed, and resolved in the event of failure.

    President Kashkari said the Minneapolis Fed will deliver its final plan on ending the ongoing too-big-to-fail threat by the end of the year. He cited the savings-and-loan crisis of the 1980s and the dot-com bubble burst of 2000 as examples of industry-specific economic turbulence that nevertheless did not pose a threat of total economic collapse. The reserve bank will be hosting public symposiums starting in the spring, and it launched a website where researchers, industry professionals and others can share their ideas on how to address too-big-to-fail. Read Kashkari’s Speech. Read More from Minneapolis Fed.

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    CLEAR Act Cosponsors Now Exceed 100

    CBAI thanks Congressmen Mike Bost (R-12), Rodney Davis (R-13), Robert Dold (R-10), Randy Hultgren (R-14), Adam Kinzinger (R-16), Darin LaHood (R-18), and John Shimkus (R-15) for cosponsoring the Commercial Lending Enhancement and Regulatory Relief Act (H.R. 1233). This legislation, which is supported by CBAI and ICBA, recently crossed the century mark in bi-partisan cosponsors and contains a number of measures which will help ease excessive, redundant and costly regulations to help community banks dedicate more of their resources to promoting economic growth. Read Summary of CLEAR Act.

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    Register Now to Attend CBAI's 32nd Annual Capital Conference!

    CBAI's Capital Conference is scheduled for Wednesday, April 20 at the Wyndham Springfield City Centre. Make your voice heard with your local legislators and banking regulators. In addition to hands-on lobbying at the state Capitol, the agenda will include meetings with constitutional officers, legislative leaders and regulators. The day will begin with the annual luncheon and conclude with the very popular legislative reception.

    The cost for this event is only $100 per institution (after April 1, $150) and covers the cost for ALL, so please bring as many officers, directors, and employees as you wish. Register Here!

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    How Does Your Bank’s Compensation Compare with Your Peers?

    CBAI's 26th Annual Officer Compensation Survey Now Online!

    CBAI’s 26th Annual Officer Compensation Survey registers officer salaries, incentives, benefits, total compensation and more. It also tabulates support personnel’s benefits and compensation, plus compensation to bank directors. Peer results will include information based on bank asset size and geographical location. RESULTS FREE TO CBAI MEMBERS THAT PARTICIPATE!

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

    To complete the actual survey, click here.

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    Investment News From THE BAKER GROUP

    Baker Market Update

    In her semi-annual visit with Congress, Fed Chair Janet Yellen did her best to accentuate the positive, but was not quite able to eliminate the negative. While acknowledging the deterioration in financial conditions and global growth prospects (no small thing), she reminded all listeners that labor market conditions and the behavior of consumers are bright spots. See Baker Market Update.

    Baker Market Strategies

    February 2016 - Agency MBS Prepayments

    Some of the slowest speeds last month came from the mid to lower end of the coupon stack for conventionals, especially in longer term collateral. Fannie and Freddie 30yr 3.5s both fell to 6.4 CPR, a 29% and 23% decline respectively. See Baker Market Strategies.

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    SHAZAM: Fighting Fraud in 2016

    Even with security upgrades like EMV chip cards and tokenization, the form and frequency of fraud attempts will continue to evolve. SHAZAM offers a fraud fighting checklist for the new year. Read SHAZAM Checklist.

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    Career Development Division Spring Meeting Schedule and Agenda Announced

    Registration Now Open!

    The CDD Annual Spring Meeting, scheduled for May 24, 2016 at the Hyatt Regency at the Arch in St. Louis, is geared toward honing professional and banking skills. If you are a CDD member, then now is a great time to register for this information-packed event. If you are not yet a CDD member, now is the perfect time to join!

    In addition to the educational offerings, this year's meeting includes a fun and great networking opportunity at Busch Stadium on May 23, 2016, where the entertainment for the evening is a Cardinals/Cubs Baseball Game! For more information and to register, Click Here.

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    Can You Become An Adaptable Bank?

    According to a correspondent banker in Florida, if there is one thing community banks need to be successful it is not more technology, a more profitable loan product or new fee income services. What community banks need is culture and the ability to adapt. Chris Nichols believes the Adaptable Bank uses the market and national banks to help create a roadmap on how they can do it better. For an Adaptive Bank, its small size is a huge strategic advantage. Read More.

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    Your Bank Could Win a $1,000 Scholarship to the Community Bankers School!

    Visit iHELP’s Booth at the ICBA Convention (#703) to Register!

    iHELP, a provider of student loans for community banks, has graciously offered a $1,000 scholarship to the Community Bankers School for an Illinois bank represented at the upcoming ICBA Convention in New Orleans. Simply stop by the iHELP booth (#i703) to register. The winning name will be drawn Monday evening at the CBAI reception for Illinois bankers.

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    Millennial Advice on How to Run a Bank

    A student of the Millennial generation recommends three employee-related issues to address that will translate into memorable customer service. Read More.

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    Midwest Office: Showcase Your Brand with the Most Powerful Form of Advertising!

    Take advantage of the Midwest Office Print & Promotional Products Division and gain access to thousands of products that can be customized, personalized and created for all of your business needs. Midwest will work one-on-one with your bank to ensure a seamless experience when choosing between multiple products and getting the best quality and pricing available. Click Here to View the Specials and receive a $50 coupon off your next purchase of promotional products of $500 or more.

    Whether you are looking for marketing material to keep internally, or products for an upcoming social event or golf outing; Midwest Office can help bring together your brand and target audience to create memorable experiences that help grow your business. Using branded merchandise helps to engage, incentivize and inspire your audience by generating leads, building relationships and increasing market visibility.

    To place your next order, contact Midwest Office Sales Representative Kevin Gaffney at 217-303-5511 or email kgaffney@midwestoffice.com.

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    Are You Ready for Community Banking Week in 2016?

    Community Banking Week in Illinois is April 3-9 to coincide with National Community Banking Week in April. Order your bank’s FREE materials by contacting Bobbi Watson, CBAI Communications administrative assistant, at 800/736-2224 of bobbiw@cbai.com.

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    CBIS Nicoud: What the Most Recent Data on Bank Robberies Tell Us

    While considerable attention has been given to cyber crime protections over the past year for good reason, community banks and the leadership responsible for risk-management policies, must always be cognizant of threats from “traditional” criminals. According to the FBI, there were nearly 4,000 robberies, burglaries or larcenies committed against banks in 2014, the year for which the most recent data is available. Read More from CBIS Nicoud Insurance Services.

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    Cloud Computing, Regulators and Efficiency

    Banking regulators do not discourage outsourcing, and in many cases strongly encourage it, if a bank can obtain better services than it can provide internally and the bank maintains proper supervision over the outsourced vendor’s activities. Regulators also realize there are efficiencies to be gained with outsourcing. In many situations, outsourcing offers the institution a cost-effective alternative to in-house capabilities. Read BankOnIT Blog.

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    CBAI Announces Golf Outing Location for 42nd Annual Convention & Expo

    The golf outing at CBAI’s 42nd Annual Convention & Expo will be held at Swope Memorial Golf Course in Kansas City. Designed in 1934 by legendary architect A.W. Tillinghast, the course was once the home of the PGA Tour's Kansas City Open (1949), making it the only public course in the area to have hosted a PGA Tour event. This 18-hole par 72 course features 6,274 yards of golf with a course rating of 70.9 and a slope rating of 128 on Zoysia grass. Carved out of wooded land in Swope Park, this tight layout, along with its undulating fairways and multi-tiered greens, provides a true test of golf; one that even challenged legends Ben Hogan and Sam Snead. Skyline views of downtown, accompanied by the roars of lions from the K.C. Zoo below, give this course character that is unmatched anywhere in the city. Come out and experience what people consider the best course in K.C.!

    Book your room today for CBAI’s showcase event on September 15-17, 2016! Room rates are $159 plus tax for single or double occupancy. Call 800/303-0104 or visit HERE for reservations.

    Additional convention details will be available soon. For the more information Swope Memorial Golf Course, please Click Here.

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    Deposit Documentation Slated for February 23-25

    The objectives of this seminar are to define the governing rules, regulations, and laws affecting deposit documentation; explain how the rules, regulations, and laws directly affect day-to-day operations and customer interactions; and show attendees how they can apply what they learn to new circumstances and situations. Each of these regulations, laws, or guidelines have aspects that relate to the initial disclosures, but the emphasis of this class is on the how and why. Many activities of tellers and customer-service representatives are driven by these regulations, but too often circumstances can make it difficult for those employees to apply the regulations because they don't know the details. This seminar describes the requirements, explains in a straightforward manner the basic principles, and then draws on real-life experiences to explore how to apply those principles. Tellers, head tellers, new-account representatives, and anyone opening accounts or dealing with customers on the deposit side would all benefit from attending this seminar. Tim Tedrick CRCM, CRP, and partner at Wipfli LLP in Sterling, IL, leads this seminar.

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    Commercial Lending Institute Set for February 23-25

    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, A, heads this faculty. He is joined Robert M. Swartz, manager, and Gary Genenbacher, CPA and partner, both of BKD, LLP.

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    Directors’ College Scheduled for February 29 & March 1

    The Community Bank Directors’ College was developed in close cooperation with both state and federal regulators and is designed to teach individuals how to become more effective, capable, and supportive members of their bank’s board of directors. The College is offered once a year and provides a thorough understanding of bank operations and bank directors’ responsibilities. The college is recommended for both new and seasoned bank directors. It is structured as two, two-day sessions offered on a annual basis; either may be attended as a stand-alone course. The second session is being held at Northfield Inn and Conference Center in Springfield, IL, February 29 – March 1, 2016. Topics covered on the first day of Session II include Financial Management of Community Banks with Drew Simmons of THE BAKER GROUP, Oklahoma City, OK; Regulatory Examinations, Enforcement Actions, and Fiduciary Duties with John Geiringer, partner at Barack Ferrazzano Kirschbaum & Nagelberg LLP, Chicago; and Understanding Shareholder Value with Steve Clinton, Young & Associates, Inc., Kent, OH. Day two addresses Understanding Your Community Bank’s Risk with Tom Munz of Munz Consulting LLC, Mt. Prospect, IL; Is Your Strategic Planning a Waste of Time? with David Kemp, president of Bankers Management, Inc., College Park, GA; Community Bank Compensation with Scott Richardson, president of iZALE Financial Group, Schaumburg, IL; and an Exam Workshop with regulators from the FDIC, OCC, IDFPR, and Federal Reserve Bank of Chicago.

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    Business Development in Today’s Challenging Environment March 1 and October 12

    Having an effective and focused business development program is the key to the success of any bank’s growth. This program is designed to provide the foundational systems and develop the skills needed to be effective at making business calls on customers and prospects. This program has been divided into two separate training days. The first session, offered in March, is Developing a Business Development Strategy and Plan for Customers. The second session, offered in October, is Developing a Business Development Strategy and Plan for Prospects. You may attend both seminars or either of the seminars as a stand-alone course. Session one, which focuses on current customers, discusses topics including understanding the call process, increasing share of wallet with current customers, differentiating yourself and the competition, and handling challenging situations, and more. Session two, which focuses on prospective customers, covers topics including developing a prospecting program, turning a gatekeeper into an influencer, getting an appointment over the phone, making joint calls, five keys to getting a commitment, following up, action planning, and more. Leading these seminars is Dianne Barton, founder and president of Performance Solutions, Inc.

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