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 25, 2009 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • NBC Highlights Strength of Community Banks
  • CBAI Makes Presentation at Rural Economic Summit
  • ICBA Economic Stimulus Summary Available
  • Critical ICBA Proposals Included in Stimulus Package
  • Obama Housing Plan Released
  • Financial Groups Work to Remove Cramdown Provision
  • U. S. Senator Praises Community Banks
  • CBAI’s Lounsberry Speaks at Randolph County Federation Meeting
  • ICBA Discusses Community Banking with President Obama
  • Baker Market Update
  • Baker Market Report on Mortgage-Backed Securities
  • FinCEN Releases Mortgage Fraud Analysis
  • CDD Annual Spring Conference Scheduled for March
  • FASB Announces Fair Value Projects
  • Equity Cash-Out at Eight-Year Low
  • New CBSC Program Helps Bank Directors Save Money!
  • Prepare for Growth at the 2009 SHAZAM EFT Forum
  • 2008 Foreclosure Filings Set Record
  • Farmland Values Drop in Fourth Quarter
  • Rural Index Shows Weakness in Farm Prices and Equipment Sales
  • Saturday Night Entertainment Set for CBAI Convention
  • SBA Issues Fraud Alert on Rebate Scam


  • NBC Highlights Strength of Community Banks

    NBC Nightly News last week featured a
    story on the role of community banks in revitalizing the economy. The report notes that the nation’s more than 8,000 community banks are not in financial trouble because they are conservative, common-sense lenders.

    “Community bankers like to say they know their customers by name, whereas at a big bank you’re just a number,” said NBC reporter Roger O’Neil. “It’s been suggested that rather than tongue-lashing the nation’s big bankers who made bad decisions, Congress should start listening to small bankers with good ideas.”

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    CBAI Makes Presentation at Rural Economic Summit

    On February 24 CBAI President Bob Wingert addressed an audience of local citizens and business people attending the Rural Economic Summit in Elmwood, Illinois. Organized by Fred Paige, President of Farmers State Bank of Elmwood, and supported by other community banks in the area, the Summit dealt with the economic and financial crisis and its effects on rural America. Other speakers included Mike Doherty, senior economist at the Illinois Farm Bureau; Gene Vaughan of AFM Farm Care; and Dean Warner of Farmers State Bank. Wingert
    discussed the causes of the financial meltdown and cited the key distinctions between community banks and the large regional and money center banks.

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    ICBA Economic Stimulus Summary Available

    ICBA prepared a comprehensive summary of the economic stimulus package signed into law last week by President Obama. The summary includes ICBA proposals contained in the law and other provisions affecting community banks. ICBA has also summarized the executive compensation provisions and updated its Proposals for Economic Recovery to reflect ICBA policy recommendations passed in stimulus plan.
    Read ICBA Summary of Stimulus. Read Executive Compensation Summary. Read ICBA Proposals for Economic Recovery.

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    Critical ICBA Proposals Included in Stimulus Package

    The $787 billion economic stimulus package signed into law by President Obama includes a variety of ICBA policy proposals and other provisions benefiting community banks and the broader economy. For more details,
    click here.

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    Obama Housing Plan Released

    The Obama administration has released its
    plan to help potentially troubled homeowners who are current on their loans keep current. Based on available details, CBAI and ICBA believe that the Homeowner Affordability and Stability Plan is an important step in helping homeowners and stabilizing the economy and financial system. The plan’s benefits are only available for loans on owner-occupied homes that meet conforming loan limits.

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    Financial Groups Work to Remove Cramdown Provision

    In a united effort, ICBA and other financial groups
    urged House leaders to remove the bankruptcy “cramdown” provision from H. R. 1106, legislation designed to reduce foreclosures and make permanent the higher deposit insurance limits. The “cramdown” language would allow bankruptcy judges to cram down mortgage debt and change loan terms. CBAI has communicated with the entire Illinois congressional delegation to reject the cramdown provision.

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    U. S. Senator Praises Community Banks

    Community banks have an outspoken ally in U. S. Senator Amy Klobuchar (D-Mn), who wrote in a Washington Post
    article on February 24, 2009, that community banks conducted business prudently and did not cause the financial meltdown. She emphasized that it is essential to distinguish between the safe and sound community banks and the high-flying Wall Street money center banks for the consumer’s benefit. CBAI encourages its members to share this article with their customers and their elected officials.

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    CBAI’s Lounsberry Speaks at Randolph County Federation Meeting

    CBAI Senior Vice President of Governmental Relations Kraig Lounsberry spoke to community bankers and guests attending the winter meeting of the Randolph County Bankers Federation at Chester Country Club on February 24. Lounsberry provided a legislative update on both state and federal issues to the approximately 45 community bankers in attendance. He stressed the importance of community bankers speaking with one voice to make clear the distinctions between community banks and the large money center banks.

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    ICBA Discusses Community Banking with President Obama

    Representing the community-banking profession, ICBA Executive Vice President of Government Relations Karen Thomas attended a small White House reception on February 18 hosted by President and Mrs. Obama and Vice President and Mrs. Biden.

    When asked by President Obama how community banks are doing in the current environment, Thomas told the president that community banks continue to be strong, safe and stable and are working hard in addressing the challenges of the current economy, including working closely with their customers. She also emphasized that community banks didn’t engage in the high-risk activities that have contributed to the current financial downturn and continue to lend and serve their communities.

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    Baker Market Update

    Stimulus package signed into law; Fed releases its January 27-28 FOMC meeting minutes, indicating a downward revision; wholesale prices for January rose faster than anticipated; and more.
    Click here.

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    Baker Market Report on Mortgage-Backed Securities

    Numerous questions have been raised about prepayment impacts and relative value in the market for agency mortgage-backed securities. For the essential points of the plan, and Baker’s view of the expected impact of each point,
    click here.

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    FinCEN Releases Mortgage Fraud Analysis

    The Financial Crimes Enforcement Network (FinCEN) today released its lastest mortgage fraud analysis titled “Filing Trends in Mortgage Loan Fraud,” that shows suspicious activity reports (SARs) filed on suspected mortgage fraud increased 44 percent in the 12 months ending June 2008 compared to the previous year.
    See Full Release.

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    CDD Annual Spring Conference Scheduled for March

    The
    CDD Annual Spring Conference and Mini-Exposition is scheduled for March 25-26, 2009, at the DoubleTree Hotel in Bloomington. This conference combines motivational, energetic, and informative general sessions with important messages for today’s banker, as well as six breakout sessions with practical solutions and ideas that can be immediately implemented at the bank and a fun-filled social event. Additional conference highlights include: • Lee Wetherington, senior vice president of Goldleaf Technologies, located in Hahira, GA, both begins and concludes the Spring Conference with his sessions entitled, “What Works, What Won't: Solutions for 2009” and “The $25,000 Pyramid (Oh, Alright, The $25.00 Pyramid),” respectively.

    The Mini-exposition, following the Business Meeting Luncheon, includes a fabulous dessert table.

    Social Event — This event includes dinner, cash bar, and features comedian Tim Cavanaugh. Cavanaugh has appeared on a prime time ABC comedy special and has been seen on Comcast, Showtime, and Comedy Central. Cavanaugh is a regular guest on “The Bob & Tom Show.”

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    FASB Announces Fair Value Projects

    The Financial Accounting Standards Board
    announced four new projects to improve application guidance used to determine fair value and the disclosure of fair value estimates. The projects were added in response to the SEC’s recent study on mark-to-market accounting. ICBA has been urging the SEC and FASB to provide additional guidance and changes to fair value requirements.

    The projects address determining active or inactive markets and distressed transactions; applying fair value to interests in alternative investments such as private equity and hedge funds; and improving disclosures about fair value measurements. The FASB said it expects to complete the projects in time for year-end disclosures.

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    Equity Cash-Out at Eight-Year Low

    In the fourth quarter of 2008, U.S. homeowners cashed out $17.5 billion in home equity through the refinance of prime first-lien mortgages, the lowest amount since the first quarter of 2001, according to
    Freddie Mac’s quarterly refinance review. This is down from a revised $28 billion in the third quarter. In addition, 14 percent of refinancing homeowners paid in extra money when they refinanced, reducing their mortgage debt. This is the highest cash-in share since the fourth quarter of 2004 when 19 percent of refinancing homeowners put cash into home equity.

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    New CBSC Program Helps Bank Directors Save Money!

    Now, outside bank directors can access member pricing on office supplies and furniture! CBSC and Midwest Office Supply, the association’s preferred provider of office products, have developed a
    program that enables the board members of CBAI member banks to purchase office supplies and furniture at deeply discounted prices exclusively for CBAI member banks.

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    Prepare for Growth at the 2009 SHAZAM EFT Forum

    Preparing your institution for EFT growth will be more important than ever during the upcoming year. At this year’s EFT Forum, SHAZAM will provide the tools needed to help prepare for this new growth. Keynote speaker, Jim Welch, will share his knowledge of the next generation of EFT users and examine the seven critical generational customer insights that will drive current and future business growth. Registration information and more,
    click here.

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    2008 Foreclosure Filings Set Record

    Foreclosures in 2008 were up 81% from 2007 and 225% from 2006, according to RealtyTrac. The larger-than-expected figure prompted lawmakers to call for more aggressive efforts to aid troubled homeowners. Banks repossessed more than 850,000 properties in 2008.
    See article.

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    Farmland Values Drop in Fourth Quarter

    According to the most recent
    AgLetter from the Federal Reserve Bank of Chicago, there was a four-percent quarterly decrease in Seventh District farmland values in the fourth quarter of 2008. Still, there was a five-percent annual increase in the value of “good” agricultural land for the District.

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    Rural Index Shows Weakness in Farm Prices and Equipment Sales

    The Rural Mainstreet Index for February found a continuing decline in farmland prices and farm equipment sales in the Midwest. The Index is based on a survey of community bank presidents in a 10-state area, including Illinois, conducted by Creighton University in Omaha, Nebraska.
    See report.

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    Saturday Night Entertainment Set for CBAI Convention

    The Saturday night dinner dance at
    CBAI’s 35th Annual Convention & Expo in Schaumburg features the Cherry Poppin’ Daddies. Nineteen years ago, University of Oregon chemistry major and future front-man Steve Perry shared his vision of a punk-rock-rhythm meets jazz-horn-sound with his fellow musician friends — the Cherry Poppin’ Daddies were born. Soon this eclectic group was selling out local clubs, distinguishing themselves by incorporating big-band swing into its mix. As the “swing scene” gained mass acceptance, Mojo Records got behind the band’s already available compilation, “Zoot Suit Riot: The Swingin’ Hits of . . .” Two million copies later, “Zoot Suit Riot” was dominating the swing and ska revivals in the mainstream press and commercial radio.

    Perry and company then recruited notables like Tony Visconti and the late free jazz icon Dewey Redmond for their follow-up album, “Soul Caddy.” This album found the band resuming its tradition of eclecticism and experimentation in the studio. After a hiatus, the group found a new spark after seeing its hit single, “Zoot Suit Riot” spotlighted on major network shows such as “So You Think You Can Dance.” In 2007, Cherry Poppin’ Daddies entered the studio once again, and released its sixth full-length recording, “Susqehanna,” on June 10, 2008. As energetic and entertaining as ever, this horn-heavy, eight-piece band is sure to get attendees on their feet with its jazzy, swingin’, big-band sound.

    Click here to register.

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    SBA Issues Fraud Alert on Rebate Scam

    The Small Business Administration issued a
    warning on February 18 telling firms not to respond to letters falsely claiming to have been sent by the agency asking for bank account information to qualify them for federal tax rebates. The fraudulent letters use what appears to be SBA letterhead and say that the recipients must provide the names of their banks and account information to be eligible for a tax rebate under the Economic Stimulus Act. Recipients of the letters should contact the Office of Inspector General at (800) 767-0385 or e-mail OIGHotline@sba.gov.

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    CBAI

           

    CBAI's PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 3/31/09



    TELEPHONE/WEBCASTS THROUGH 3/31/09



    OTHER EVENTS THROUGH 4/28/09


    3/25-26 CBAI’s Career Development Division Spring Conference, DoubleTree Hotel, Bloomington

    4/20 CBAI Group 6 Meeting, Soangetaha Country Club, Galesburg

    4/22 CBAI Marketing Conference, Crowne Plaza, Springfield - (Materials to be made available soon –
    save the date!)


    4/22 CBAI Capital Conference, Hilton Hotel, Springfield

    4/27 CBAI Group 13 Meeting, Stone Creek Golf Course, Makanda

    4/28 CBAI Group 11 Meeting, Roland Barkau Memorial Golf Course, Okawville


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