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Community Bankers Association of Illinois
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     A Bi-Weekly News Bulletin for CBAI Members                                    March 15, 2017

Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • Community Bankers Meet with President Trump
  • Register Now for CBAI's 35th Annual Call on Washington!
  • Luetkemeyer: Make an Impact at ICBA Capital Summit
  • Fine Lays Out Case for Community Bank Relief in New Op-Ed
  • Trump Appointees Can Roll Back Bank Rules, Pence Economist Says
  • CBAI Thanks Congressman Hultgren for Addressing OCC’s Proposed Fintech Charters
  • Opinion: Dodd-Frank, Obamacare Grew Out of Same Faulty Reasoning
  • Report on Recent CBAI Staff Visit to Washington
  • Register Today for CBAI's Capital Conference on April 5th!
  • ICBA Testifies on Success of SBA Community Bank Loans
  • FDIC Spotlights Credit Risk Trends
  • Investment News From THE BAKER GROUP
  • Study: Credit Card Debt Nears Record All-time High
  • Make Plans Now to Attend CBAI’s 2017 Group Meetings!
  • Closing the Digital Divide Between Banks and Customers
  • Why Grit Is More Important Than IQ When Trying To Become Successful
  • CBAI LEGAL: No Setoff for Deficiency Debtor from Sale of Foreclosed Property
  • FREE Webinar: Get the Latest on New Household Acquisition Strategies
  • Robot Banking: Just Because We Can?
  • Showcase Your Bank with the Most Powerful Form of Advertising!
  • What Are the Banks in Your Area Paying Employees? Find Out!
  • ICBA Webinar: Ask the Experts - Chip Fallback
  • Register Today for Early-Bird Pricing for CBAI's 43rd Annual Convention!
  • Seminar for the Community-Bank Attorney Set for March 17
  • Asset/Liability Management Seminar Scheduled for March 21
  • Residential Real-Estate Lending Institute Slated for March 28-30
  • Lending 101 Scheduled for March 22 & 23

  • Community Bankers Meet with President Trump

    Community bankers from the Independent Community Bankers of America (ICBA) met last Thursday with President Donald Trump and other senior officials at the White House to discuss how to unleash the full economic potential of community banks by passing targeted regulatory relief.

    The ICBA community bankers in attendance were:

    • ICBA Chairman Rebeca Romero Rainey, chairman and CEO of Centinel Bank of Taos, N.M.,
    • ICBA Chairman-Elect R. Scott Heitkamp, president and CEO of ValueBank Texas in Corpus Christi, Texas, and
    • ICBA Vice Chairman Timothy K. Zimmerman, president and CEO of Standard Bank in Monroeville, Pa.
    In the meeting with President Trump, Treasury Secretary Steven Mnuchin, National Economic Council Chairman Gary Cohn, and White House Chief of Staff Reince Priebus, the ICBA community bankers and ICBA President Cam Fine shared examples of how excessive regulatory burdens affect their ability to serve their customers, make loans and create jobs at the local level. They also discussed ICBA’s Plan for Prosperity, a pro-growth platform to eliminate onerous regulatory burdens on community banks that inhibit lending and innovation.

    ICBA and CBAI are advocating for a tiered system of regulations that treat smaller banks differently than global financial behemoths, tailoring regulations to a bank's size, business model, complexity and risk. The Trump White House largely shares that view. President Trump stated, "Community banks are the backbone of small business in America. We are going to preserve our community banks." Read Washington Post Article. Read Reuters Article. See ICBA Release.

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    Register Now for CBAI's 35th Annual Call on Washington!

    This Congressional Session holds more potential for meaningful regulatory relief than any other in the past 30 years. We need your participation in a grassroots campaign by attending CBAI's 35th Annual Call on Washington which will be held at the Grand Hyatt Washington from April 30 to May 3, 2017.

    CBAI bankers from across Illinois will travel to Washington, D.C. and call on their members of Congress to support issues of importance to Illinois community banks. YOUR VOICE DOES MAKE A DIFFERENCE! Now is the time to get involved.

    Again this year our Call on Washington will be held in conjunction with the ICBA's 2017 Capital Summit. Along with CBAI coordinated events, our entire delegation will attend ICBA's meetings and events. CLICK HERE for more information and to register.

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    Luetkemeyer: Make an Impact at ICBA Capital Summit

    A new video from Congressman Blaine Luetkemeyer (R-Mo.) encourages community bankers to attend the 2017 ICBA Capital Summit, scheduled for April 30-May 3 in Washington. Luetkemeyer, a former community banker and current chairman of the House Subcommittee on Financial Institutions and Consumer Credit, says that members of Congress need to hear directly from community bankers. He spoke at CBAI's convention in Kasas City last September.

    “Only you as a community banker can inform, impact and inspire lawmakers to make the right decisions that allow you to better serve our communities,” Luetkemeyer says. “That’s why being face to face with your members of Congress and regulators is so important.” See Luetkemeyer Video.

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    Fine Lays Out Case for Community Bank Relief in New Op-Ed

    In a recent op-ed ICBA President Cam Fine advocated community bank regulatory relief to promote localized growth that radiates out to the broader global economy. In International Banker, Fine wrote that freeing community banks from regulations designed for larger and riskier financial firms will produce a positive economic impact while preserving access to local banking.

    “Community banks are not demanding regulatory relief for the sake of regulatory relief itself,” Fine wrote. “Reform is needed so community banks can best serve their local communities, fully utilize new technologies and partnerships, continue to improve the customer experience, create jobs, and support economic growth and opportunity into the future.” Read the Op-Ed.

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    SHAZAM offers a wide array of training topics to keep you and your staff up to date and informed on products and services in the financial services industry. With more than 80 years of combined experience, the SHAZAM training team is well prepared and educated. From a regional seminar about debit card fraud, ATM operations and chargebacks to an on-site training for a topic of your choice, rely on our team as your training experts! Learn more about SHAZAM’s training services today!

    Trump Appointees Can Roll Back Bank Rules, Pence Economist Says

    The Trump administration’s initial efforts to attack financial regulations will include directing federal agencies to reverse changes that have been made through guidance rather than formal rule-making, a key aide to Vice President Mike Pence said last week.

    The White House is trying to fill vacancies at the banking-industry watchdogs “in short order,” Mark Calabria, Pence’s chief economist, said at a National Association for Business Economics conference in Washington. Once President Donald Trump’s people are in place, he said, they can quickly roll back supervisory efforts they think aren’t appropriate. Read Bloomberg Article.

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    CBAI Thanks Congressman Hultgren for Addressing OCC’s Proposed Fintech Charters

    In a March 10, 2017, letter to Comptroller Thomas Curry, 34 members of the House Financial Services Committee (HFSC) wrote the OCC regarding its intention to issue special purpose national banking charters to fintech companies without providing details of the charter or an opportunity for comment. CBAI thanks Illinois Congressman Randy Hultgren (R-14th) for taking a leadership position in examining and questioning the OCC’s fintech charter initiative. Read More.

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    Opinion: Dodd-Frank, Obamacare Grew Out of Same Faulty Reasoning

    Kevin Villani, chief economist at Freddie Mac from 1982 to 1985, and an economic and financial consultant and principal of University Financial Associates LLC, believes that the current partisan war over the Dodd-Frank Act is just one dispute in a broader ideological divide about the government’s role in industry. He notes that this dispute, which has deep historical roots, includes a similar battle over Obamacare. The common disagreement at issue with both laws is the extent to which politicians should subsidize their constituents indirectly through regulation of private companies.

    He concludes that the history of government-subsidized health care and financial “reform” efforts provides a lesson on what policymakers should avoid, and hopes that Congress will take heed and restore market competition in the financial services and health insurance industries. Read BankThink Article.

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    Report on Recent CBAI Staff Visit to Washington

    CBAI’s Vice President of Federal Governmental Relations, David Schroeder, recently visited the office of each member of the Illinois Congressional Delegation, met with officials at the Federal Deposit Insurance Corporation (FDIC), Office of Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (Fed Reserve), Consumer Financial Protection Bureau (CFPB), and the Conference of State Bank Supervisors (CSBS), and conferred with senior legislative staff at the Independent Community Bankers of America (ICBA). He urged support for several regulatory relief measures on behalf of Illinois community banks. See Report.

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    Register Today for CBAI's Capital Conference on April 5th!

    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. CBAI's 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!

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    ICBA Testifies on Success of SBA Community Bank Loans

    The Independent Community Bankers of America (ICBA) last week testified before Congress on the value of the Small Business Administration’s 7(a) loan program to local small-business lending. Cynthia Blankenship, president and CFO of Bank of the West in Grapevine, Texas, said the program allows community banks to provide credit to a broader range of borrowers and ensure sound underwriting.

    Blankenship emphasized that community banks are the most steadfast and preferred small-business lenders, noting that during the financial crisis of 2008-9 community bank small-business lending increased amid a decline in lending by the nation’s largest banks. Separately, a study by seven Federal Reserve Banks found community banks had the highest lending and satisfaction scores among small-business borrowers—out-distancing credit unions, large banks and online lenders by a wide margin. Read ICBA Release. See Fed Study Findings.

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    FDIC Spotlights Credit Risk Trends

    The FDIC’s latest issue of Supervisory Insights identifies trends in credit risk and emphasizes to bankers and examiners that now is the time to heed long-standing principles of sound risk-management practices. The winter 2016 edition also includes an overview of recently released regulations and supervisory guidance. The quarterly publication focuses on how bank regulation and policy are put into practice in the field. Read FDIC Supervisory Insights.

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    Investment News From THE BAKER GROUP

    Baker Market Update

    Information received since the Federal Open Market Committee met in February indicates that the labor market has continued to strengthen and that economic activity has continued to expand at a moderate pace. Job gains remained solid and the unemployment rate was little changed in recent months. Household spending has continued to rise moderately while business fixed investment appears to have firmed somewhat. See Baker Market Update.

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    Study: Credit Card Debt Nears Record All-time High

    U.S. consumers racked up $89.2 billion in credit card debt during 2016, pushing outstanding balances to $978.9 billion, which is roughly $3 billion below the all-time record set in 2007, according to WalletHub’s latest Credit Card Debt Study, based on Federal Reserve data released last week. WalletHub projects that in 2017 the current record will be surpassed by at least $100 billion. Read More with Consumer Tips. See WalletHub Study.

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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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    Closing the Digital Divide Between Banks and Customers

    Jim Marous, co-publisher of The Financial Brand, believes that customer experience is the new competitive battleground. In a recent article, he notes that by 2020 customer experience will overtake price and product as a key brand differentiator, and figuring out how to make this shift is an imperative for financial institutions.

    He emphasizes that Millennials and members of Gen Z will only continue to gain wealth and spending power, and they won’t hesitate to walk away from a financial institution if they aren’t satisfied. Banking in the future is going to be all about the customer relationship, and the foundation for that is built on a good customer experience at every interaction. He believes that banks can rise to the new challenges presented by the digital age and give customers the seamless experiences they’ve come to expect. Read More.

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    Why Grit Is More Important Than IQ When Trying To Become Successful

    According to psychologist Angela Duckworth, the secret to outstanding achievement isn’t talent. It’s a special blend of persistence and passion that she calls “grit.” Being gritty, according to Duckworth, is the ability to persevere. It’s about being unusually resilient and hardworking.

    Duckworth has spent years studying people, trying to understand what it is that makes high achievers so successful. And what she found surprised even her. It wasn’t SAT scores. It wasn’t IQ scores. It wasn’t even a degree from a top-ranking business school that turned out to be the best predictor of success. “It was this combination of passion and perseverance that made high achievers special,” Duckworth said. “In a word, they had grit.” CBAI believes that grit is a core competency of most community bankers who demonstrate persistence in a challenging environment and a passion for community-based banking. Read More.

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    CBAI LEGAL: No Setoff for Deficiency Debtor from Sale of Foreclosed Property

    The Illinois Appellate Court for the Second District, in the case of Old Second National Bank vs. Jafry, rejected the request by Guarantors that their individual liability for deficiency judgment must be offset to the extent that the mortgagee bank subsequently sold the proposed property for more than its judicial sale bid. Read Most Recent CBAI LEGAL.

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    FREE Webinar: Get the Latest on New Household Acquisition Strategies

    Learn best practices for household acquisition as well as the latest trends and developments. Harland Clarke will share a market snapshot, relationship strategies and product innovations to help you acquire more new households. Register Today!

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    Robot Banking: Just Because We Can?

    In-branch technology that improves operational efficiency and the customer experience is central to community banking. Is this where banking is headed? Removing the human element altogether from the branch experience is certainly possible, but is it plausible? Today it seems that technology enables possibilities that seemed beyond comprehension only a few years ago. However, care must be taken to apply technology to banking in such a way as to add real value for the bank or for its customer, and not just ‘because we can.’

    The linked article is presented by Welch Systems, a CBSC preferred provider of new and refurbished currency handling equipment, ATMs, Teller Cash Recyclers (TCRs), and shredders. For more information, contact Jeff Radtke, Welch Systems General Manager, via email at, or phone 800/322-2657. Read Article.

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    Showcase Your Bank with the Most Powerful Form of Advertising

    Take advantage of Midwest's 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 you to ensure a seamless experience when choosing between multiple products and getting the best quality and pricing available.

    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. See Flyer for exclusive CBAI offer plus $50 off $300+ order!

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

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    What Are the Banks in Your Area Paying Employees? Find 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 CBAI 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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    ICBA Webinar: Ask the Experts - Chip Fallback

    Do you have questions about what fallback transactions are and how they are caused? Join Ask the Experts for a live web-based Q & A on Tuesday, March 28 at 1 p.m. Visa, Inc.'s fallback expert, Lori Hodges, will discuss the basics of fallback transactions including why they occur, and tips and best practices to avoid them. Time will be allotted for questions from attendees following the presentation. This webinar is appropriate for your bank's risk and fraud staff and any employee involved in the production, processes, systems and services that enable the chip platform. Managers and supervisors are also encouraged to attend. Register Today.

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    Register Today for Early-Bird Pricing for CBAI's 43rd Annual Convention!

    Registration is now open for CBAI’s 43rd Annual Convention & Expo, scheduled for September 14-16, 2017, at the Crowne Plaza in Springfield, IL. Expert speakers on the hottest community banking topics fill an education agenda featuring 20 break-out sessions. This year's Opening Breakfast Speaker is John O’Leary. At the age of nine, John created a massive explosion in his home and was burned on 100% of his body. He was given 1% chance to live. His epic story of survival, emotional story-telling, unexpected humor, and authenticity make his presentations truly transformational. Also on the agenda is the Welcoming Reception with BancPac Live and Silent Auction, a jam-packed exhibit hall with more than 90 booths, the Annual Business Meeting Luncheon, and much more. The Closing General Session features Jeff Havens, one of the most in-demand speakers in North America. In his hysterical keynote, Us vs. Them, you'll learn a simpler way of looking at your own generational picture, and you'll also learn how to understand, recognize, and resolve every generational issue facing today's workforce.

    Don't wait! Register today for early-bird pricing at CBAI's annual showcase event! You won't want to miss it! Register Here!

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    Seminar for the Community-Bank Attorney Set for March 17

    To help community-bank attorneys obtain the latest information regarding the myriad of legislative, legal, and regulatory mandates facing community banks, as well as to meet the Supreme Court of Illinois-ordered requirements for Minimum Continuing Legal Education (MCLE), CBAI developed this comprehensive one-day education session entitled, “Seminar for the Community-Bank Attorney.” This seminar utilizes the expertise of a number of attorneys who specialize in banking law related topics. CBAI has been approved for 5.5 hours of MCLE credit. Any attorney who sits on a community bank board of directors, acts as legal counsel to a community bank, or has an interest in these topics would benefit from attending. This seminar provides an update on recent legislation and case law affecting financial institutions, cybersecurity, other Illinois banking statutes, and an employment law update. Leading these sessions are Jerry Cavanaugh, general counsel, Community Bankers Association of Illinois, Springfield, IL; Stan Orszula, partner, Barack Ferrazzano Financial Institutions Group, Chicago; and Aimee Delaney, partner, Hinshaw & Culbertson LLP, Chicago.

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    Asset/Liability Management Seminar Scheduled for March 21

    We are still in the early days of the nation's new political administration, but the anticipation of new economic policies and their implementation by new policymakers have stirred up high hopes for greater growth, more inflation, and along with those things, higher interest rates. Will the new administration's policies help produce these results while also lowering taxes and reducing burdensome regulations? Many questions remain unanswered and despite the watershed improvements in consumer confidence and business optimism, the longed for outcomes are far from foregone conclusions. This program describes the potential risks posed by this new set of economic prospects and discusses ways for community banks to best prepare for them. Discussions also include topical regulatory and reporting issues related to interest rate risk, along with the types of analysis necessary for regulatory compliance. A changing economic environment also means potential changes to strategic investment portfolio considerations and the changing relative values among security selection alternatives. Specifically, new considerations for mortgage-backed security characteristics and the possible effect of tax rate changes on the muni market will be highlighted. This discussion includes some of the possible ways that community bank portfolio managers can best prepare for not only the risk that rates will rise, but also the risk that they won't. Lester Murray associate partner and Drew Simmons senior vice president at The Baker Group leads this program.

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    Residential Real-Estate Lending Institute Slated for March 28-30

    This three-day mini-institute provides the real-estate lending professional with a solid foundation for managing and producing a quality mortgage portfolio. This hands-on institute includes exercises in buying and selling mortgages in the secondary markets, a visit to a construction site, and analysis of the tax return of a self-employed borrower. The institute’s objective is to assist the participants in three areas: improved customer service, more efficient processing and servicing and stronger underwriting. All of these should result in increased earnings from the mortgage portfolio. The “new” underwriting findings are also discussed. Topics covered include regulatory compliance, loan application and interviewing, secondary mortgage market, lending to self-employed borrowers, underwriting, closing documentation, construction financing and site visit, loan originations, appraisals, and loan processing. David Kemp, founder and president of Bankers Management, Inc., College Park, GA, and Aaron Lewis, consultant with Young & Associates, Inc., Kent, OH, lead this institute.

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    Lending 101 Scheduled for March 22 & 23

    As a rookie in the bank lending game, you likely have already began training on available products, services, and programs offered through your institution. In addition to those options, you need to be prepared for the blitz of regulatory lending requirements you will be faced with in your field. We provide the playbook to help you tackle lending compliance and score success for you and your lending team. This one-day school is designed for new lenders, processors, auditors, and compliance personnel new to commercial and/or consumer lending. Whether your job is to process the loan, decision the loan, assemble the document package, or review the loan for compliance, the information provided will be useful to you. Leading this seminar is Dawn Kincaid of Brode Consulting Services, Inc., who began her banking career while attending Ohio State University, Columbus.

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    THROUGH 04/25/2017






    Finer Points Blog

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