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 24, 2010 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • Illinois State Legislators Introduce “Move Your Money” Resolutions
  • Insured Banks Earn $914 Million in Fourth Quarter
  • Economic Updates and Indicators
  • Bernanke: Record-Low Rates Still Needed
  • Fine: ICBA Working to Craft Reform Bill to Benefit Community Banks
  • Your Voice Can Make a Difference: Come to Washington!
  • AIG Document Shows Goldman Sachs Created Most Toxic CDOs
  • Baker Market Update
  • Little River Band to Take the Stage at CBAI’s 36th Annual Convention!
  • FREE Community Banking Week Materials Now Available
  • Have You Checked Out the CBAI Classified Ads Lately?
  • CBAI’s 20th Annual Officer Compensation Survey Now Online!
  • CBAI Chicago-Area Vice President Terry Griffin Pens News Editorial
  • Community-Bank Advantages Challenge Historical Assumptions
  • CBAI Members Sought for Online Account Opening Survey
  • Loan Review/ALLL Seminar Scheduled for March 9-10, 2010
  • Deposit Documentation Training Scheduled for March 8-11, 2010
  • Operations/Technology Groups Begin in March 2010
  • State Regulators Launch Loan-Portfolio-Data Format
  • Fraudulent Electronic Funds Transfers (EFTs) Increasing


  • Illinois State Legislators Introduce “Move Your Money” Resolutions

    State Senator Dan Kotowski (D-33, Park Ridge) and State Representative Jim Sacia (R-89, Pecatonica) introduced resolutions in the Illinois Senate and House urging Illinois residents and local governments to “move their money” from large multi-state too-big-too-fail banks to Illinois-based community banks. SR 665 and HR 952 were introduced as part of a national movement for consumers to support their local community banks. CBAI strongly supports these resolutions and will urge legislators to support and co-sponsor the resolutions during CBAI’s 26th Annual Capital Conference being held in Springfield today.
    See Resolution.

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    Insured Banks Earn $914 Million in Fourth Quarter

    The FDIC
    reported yesterday (February 23) that insured commercial banks and savings institutions earned $914 million in the fourth quarter of 2009 compared to a $37.8 billion net loss in the fourth quarter of 2008. Noninterest income grew by 50% while noninterest expense declined by 14%. The FDIC also noted that asset quality continued to decline, but the rate of deterioration slowed for the third consecutive quarter. The FDIC also released its Quarterly Banking Profile which provides detailed financial results. A Performance Summary for Illinois insured institutions revealed a net loss of $558 million for the fourth quarter.

    The FDIC also reported that the number of banks on its “problem list” increased to 702, the highest since June of 1993. FDIC Chairman Sheila Bair indicated that bank failures in 2010 are likely to exceed the 140 failures in 2009.

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    Economic Updates and Indicators

    The Fed’s Take on the Midwest Economy

    Bill Testa of the Federal Reserve Bank of Chicago believes employment is expected to begin to grow again by mid-2010, but job trends are lagging in the Midwest.
    See Report.

    Chicago Fed National Activity Index Climbs

    The CFNAI, a weighted average of 85 existing monthly economic indicators, was slightly positive in January at +0.02 compared to -0.58 in December. The Index suggests that, consistent with the early stages of a recovery following a recession, the growth in national economic activity is beginning to near its historical trend. See Release.

    Conference Board’s Confidence Index Slumps

    Meanwhile, confidence among consumers fell in February to the lowest level in 10 months, according to the Confidence Board’s Confidence Index which is a Bloomberg News survey of economists. The primary concern was that job prospects may restrain spending needed to stimulate a recovery. See Article.

    Chicago-area Home Prices Continue Decline

    The Standard & Poor’s/Case-Shiller home price index for the Chicago area fell for the third straight month, suggesting that a recovery for the region’s housing market may be faltering. See Article.

    Rural Mainstreet Economic Index Declines

    For the first time since last August, the overall index for the Rural Mainstreet economy declined which indicates significant economic weakness, according to the February survey of community bank CEOs in a 10-state region. Business hiring was cited as the biggest challenge in 2010. See Results.

    Midwest Farmland Values Up Slightly

    The annual increase in farmland values was 2 percent in 2009 for the Seventh Federal Reserve District, according to the Chicago Fed’s most recent AgLetter. The data was based on 214 surveys from agricultural bankers. See Full Report.

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    Bernanke: Record-Low Rates Still Needed

    FRB Chairman Ben Bernanke told Congress today that record-low interest rates are still needed for an extended period to ensure that the economic recovery will last and to help ease the sting of high unemployment. He did not indicate when rates may increase.
    See Article.

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    Fine: ICBA Working to Craft Reform Bill to Benefit Community Banks

    ICBA President and CEO Cam Fine
    wrote in his latest blog post that ICBA is fighting to keep the considerable gains the community banking profession has earned in the House regulatory-reform bill and working to block any provisions that would impose new burdens on community banks. Fine noted that ICBA has not endorsed any final financial-reform bill. However, as the only national voice for the nation’s community banks, ICBA and its allies have been able to include positive gains in the House bill, such as an expanded assessment base that would shift hundreds of millions of dollars in FDIC assessment fees off of community banks.

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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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    AIG Document Shows Goldman Sachs Created Most Toxic CDOs

    A document recently placed into the congressional record that itemizes the mortgage securities on which banks like Goldman Sachs had purchased credit-default swaps from AIG reveals that Goldman created the most toxic collateralized-debt obligations (CDOs). Recognizing their poor performance, Goldman bought insurance from AIG to protect against CDO losses. The subsequent losses triggered insurance claims that took AIG to the brink of insolvency, and AIG was subsequently paid in full at taxpayer expense. The New York Fed quietly engineered the bailout and withheld full publication of the document for more than a year.
    See Article.

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    Baker Market Update

    The Federal Reserve increased its discount rate 25bps to 0.75%, as part of its continued effort to unwind its emergency lending facilities put in place at the height of the financial crisis.
    More.

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    Little River Band to Take the Stage at CBAI’s 36th Annual Convention!

    The highly-popluar Little River Band will perform during the Saturday evening dinner dance at CBAI's 36th Annual Convention (September 30 - October 2) in Louisville, Kentucky. Formed in Melbourne, Australia, in 1975, the original members came from successful Australian acts from the '60s and '70s. After finding immediate success in Australia, the band set its sights on cracking the U.S. market. Fueled by a very successful Australian hit single “Curiosity Killed the Cat,” the band began making promotional visits to the U.S. in 1976. This resulted in a U.S. hit single, “It's a Long Way There,” which broke into the Top 30. More concert performances in the U.S. followed, and, in 1977, “Help Is on Its Way” and “Happy Anniversary” both narrowly missed the U.S. Top 10. From 2006 to 2009, the band performed more than 350 live shows.

    There was also much studio activity in that time, with the recording of five new CDs. In May 2001, the Australasian Performing Right Association (APRA) named “Cool Change” as one of the Top 30 Australian songs of all time and the Little River Band was inducted into the Australian Recording Industry Association (ARIA) Hall of Fame in 2004. The current lineup blends new energy and arrangements to the classic hits, making new memories for the audience out of each live performance.

    Little River Band’s Greatest Hits
    “It’s a Long Way There”
    “Help Is on the Way”
    “Cool Change”
    “Reminiscing”
    “Man on Your Mind”
    The Other Guy”
    “The Night Owls”
    “Lonesome Loser”
    “Take It Easy on Me”
    “Down on the Border”
    “Lady”

    For more information about CBAI's 36th Annual Convention, please
    click here.

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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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    Have You Checked Out the CBAI Classified Ads Lately?

    New job openings have been posted. Go to:
    http://www.cbai.com/blog/. To place your classified ad, contact Andrea Cusick at cbaicom@cbai.com today!

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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.
    2010 Comp Survey
    Deadline April 30
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    CBAI Chicago-Area Vice President Terry Griffin Pens News Editorial

    CBAI's Terry Griffin responded to the closing of Park National Bank in Chicago in an editorial for a suburban Chicago newspaper.
    See Editorial.

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    Community-Bank Advantages Challenge Historical Assumptions

    National firm A.M. Best
    opines on the relative strengths of community banks in contrast to the mega banks.

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    CBAI Members Sought for Online Account Opening Survey

    BancVue, a CBAI Preferred Services Provider that delivers innovative, exciting and market-ready products, is seeking participation from community bank leaders in a short survey about their online account opening needs. The 2010 Online Account Opening Survey asks 14 questions and takes about five minutes to complete. Participants who complete the survey are invited to attend a free webinar, Capturing New Accounts Online, and can enter to win a drawing for a $100 gift card.
    Click here to take the survey.

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    Loan Review/ALLL Seminar Scheduled for March 9-10, 2010

    This cutting edge seminar examines current regulatory expectations for your community bank's loan review function (policies, scope, frequency, and independence), the loan reviewer's role in the ALLL process, risk grading, documentation review, as well as addressing findings and conclusions. ALLL cases from real community banking are used to reinforce concepts and keep learning at its highest. Leading this seminar are Matt Bollinger, CPA, senior manager, and Ancin Cooley, CIA, CISA, senior bank consultant, both of Lindgren, Callihan, Van Osdol & Co., Ltd., (LCV) Sterling, IL.

    For more information or to register, please
    click here.

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    Deposit Documentation Training Scheduled for March 8-11, 2010

    CBAI is pleased to offer
    “Deposit Documentation” in four locations this March. Each of the regulations, laws, and guidelines pertaining to deposit documentation have aspects that relate to the initial disclosures, but the emphasis of this class is on the how and why. Many things tellers and customer service representatives do 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. Challenges covered include: error resolutions, new-card issuance, replacement cards, delay of funds, honoring checks, split deposits, NSF checks, credit card checks, two-party checks, CD penalties, partial withdrawals, who can open an account, how can it be titled, identity theft, suspicious activity, and more. Tim Tedrick, CRCM, CRP, and executive officer at Lindgren, Callihan, Van Osdol, Ltd. in Sterling, Illinois, leads this seminar.

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    Operations/Technology Groups Begin in March 2010

    CBAI’s
    Operations/Technology Groups provide an opportunity for community bankers to exchange ideas, dissect problems, and discuss important issues with their peers. The Operations/Technology Groups are designed to be a rewarding experience where bankers can grow professionally and personally. In order to ensure that these community bankers have as much in common as possible without being competitors, individuals are assigned to groups, based on bank size and location. The groups meet four times a year in three locations: CBAI headquarters in Springfield, the Holiday Inn Select in Naperville, and the Holiday Inn in Mt. Vernon.

    The Springfield and Mt. Vernon groups are facilitated by Bert Purdy, manager at BKD, LLP in St. Louis. Tim Tedrick, executive officer with the accounting firm of Lindgren, Callihan, Van Osdol in Sterling, facilitates the Naperville group.

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    State Regulators Launch Loan-Portfolio-Data Format

    The Conference of State Bank Supervisors and American Association of Residential Mortgage Regulators
    launched a new data-file format to provide mortgage-loan originators with a standardized way to prepare loan-portfolio data for submission to state regulators. The Licensee Examination File will be available online beginning February 22.

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    Fraudulent Electronic Funds Transfers (EFTs) Increasing

    The FDIC Chicago Regional Office
    notes an increase in fraudulent EFTs at financial institutions resulting from compromised login credentials. As such, please accept this reminder of FDIC Special Alert 147-2009, dated August 26, 2009, which discusses this threat and lists guidance on authentication and information security for high-risk transactions.

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    CBAI

           

    CBAI's PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 04/9/2010



    TELEPHONE/WEBCASTS THROUGH 03/25/2010




    OTHER CBAI EVENTS THROUGH 04/17/2010


    CDD Annual Spring Conference: March 23 - 24, Hotel Pere Marquette, Peoria

    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.

    CBAI 2010 Group Meetings, April 19 – June 15

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


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