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                   March 21, 2012 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois

  • 28th Annual CBAI Capital Conference on April 17 (Register Today!)
  • 30th Annual Call on Washington - Registration Deadline Extended to 3/23
  • Gruenberg: FDIC Focused on Future of Community Banking
  • Comptroller of the Currency Hosts Workshop in Illinois
  • CBSC Selects Bank Trends as Preferred Provider for Peer-Analysis Services
  • CSBS Urges Congress to Extend the TAG Program,
  • Departing Goldman Sachs Executive Hammers the Firm’s Culture
  • National Black Chamber President: "Durbin Hurts Small Businesses"
  • Baker Market Update
  • Rural Mainstreet Economy Remains Strong,
  • Lender Liability Suits On The Rise
  • Securities Rules for Private Equity Financings
  • FREE Seminar: Is Your Bank’s Security Program Moving in Right Direction?
  • CBAI Directors’ Workshop Scheduled for March 27-29
  • Interest Rate Risk and Investment Management Scheduled for April 4
  • Auditing Deposit Regulations Scheduled for April 5
  • CBAI Announces Saturday Night Entertainment at 38th Annual Convention


  • 28th Annual CBAI Capital Conference on April 17 (Register Today!)

    Register Today for CBAI’s 28th Annual Capital Conference. April 17th, 2012. Early Bird Registration of $175 per institution ends after March 30.
    Click here to register.

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    30th Annual Call on Washington

    CBAI's annual lobbying trip to Washington, D.C. has a new name and a new look. Please join your peers for CBAI's 30th Annual Call on Washington which will be held at the Gaylord National Harbor Hotel and Convention Center, National Harbor, Maryland. The delegation will call on members of Congress and federal regulators 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 Spring Policy Summit. Along with CBAI coordinated events, our entire delegation will also attend ICBA's meetings and events.
    CLICK HERE for more information and to register.

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    Gruenberg: FDIC Focused on Future of Community Banking

    The future of community banking is a top priority for the FDIC because the industry plays a crucial role in lending to small businesses and in rural, small-town and inner-city communities, FDIC Acting Chairman
    Martin Gruenberg said at the 2012 ICBA National Convention and Techworld. “Given the labor intensive, highly customized nature of many small-business loans, it is not clear that large institutions would easily fill that critical credit need if community banks were not there,” Gruenberg said at the convention’s first general session.

    Gruenberg also noted that the agency is focused on community banker concerns over regulatory obligations so it can better understand challenges facing community banks. He said the FDIC’s series of community bank roundtables, the FDIC Division of Insurance and Research’s comprehensive review of the evolution of community banking, and the agency’s review of the examination process will provide a better understanding of the profession.

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    Comptroller of the Currency Hosts Workshop in Illinois

    The Office of the Comptroller of the Currency will host a workshop for directors of nationally chartered community banks and federal savings associations in Springfield, Illinois, at the Hilton Springfield, April 2-4, 2012. The workshop will provide practical information that expands bank directors' skills and understanding of issues facing their banks. Entitled “A Director’s Challenge: Mastering the Basics,” the workshop is geared primarily to directors of national community banks and federal savings associations with assets of less than $5 billion who would like to review the fundamental requirements of their position. The workshop costs $99. Attendees receive pre-course reading and course materials, an OCC telephone seminar CD, a director’s toolkit, other supervisory material, and lunch. The workshop is limited to the first 35 registrants. For information or to register online, visit
    http://www.occ.gov/about/who-we-are/occ-for-you/bankers/bankers-education/directors-workshop-schedule.html or call 240-485-1700.

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    CBSC Selects Bank Trends as Preferred Provider for Peer-Analysis Services

    CBAI Members Receive a Discount on the Annual Subscription Fees

    Community BancService Corporation, Inc. (CBSC), the business-services affiliate of CBAI, has selected Bank Trends of San Francisco, CA as a preferred provider for Call-Report peer analysis. Bank Trends offers sophisticated peer-group and market analyses on key metrics such as profitability, earnings generation, credit quality, and efficiency. Additionally, it provides CBAI members with a 15% discount off of its already very low subscription rates. Annual subscription fees are based on bank asset size. Most CBAI members will pay a subscription of fee of $850 to $1,275. Co-founders Michael Stinson and Reid Ten Kley created Bank Trends as an Internet tool for the relationship managers at a correspondent bank in San Francisco. “It was designed to make complex financial analysis understood at a glance,” said Kley. “Ease of use is of primary importance to banks using a Call-Report analysis service along with the ability to easily change peer groups. Accessibility is as important as a low price”.

    CBAI members can learn more about Bank Trends and view a two-minute video at
    https://www.bank-trends.com. A more detailed 30-minutedemo can be scheduled
    at the web site, or contact Michael Stinson at michael@spotlight-financial.com,
    or 877/717-6743, or contact Reid Ten Kley at reid@spotlight-financial.com,
    or 877/717-6743.

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    CSBS Urges Congress to Extend the TAG Program

    In an American Banker op-ed, the Conference of State Bank Supervisors (CSBS) Chairman John Ducrest stated that CSBS strongly endorses an extension of the Transaction Account Guarantee (TAG) program which provides unlimited FDIC insurance coverage for non-interest-bearing transaction accounts.

    Chairman Ducrest wrote that while the banking industry is better off than it was several years ago banks continue to face a challenging economic environment. The TAG program "remains a useful tool to stabilize and strengthen community and regional banks across the nation." Further, "As long as there is a widespread perception that too-big-to-fail still exists, programs like the TAG that provide some equity in the banking industry must remain in place."
    READ American Banker op-ed.

    CBAI encouraged the CSBS to endorse an extension of the TAG program and applauds their decision. READ CBAI letter to the CSBS.

    To urge your congressman to support TAG Extension, please click here.

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    Departing Goldman Sachs Executive Hammers the Firm’s Culture

    Last week Greg Smith announced his resignation from Goldman Sachs after serving for 12 years as an advisor to hedge funds and asset managers worldwide. In a letter to the New York Times, Smith indicated that he left the firm because its culture has changed whereby the interests of the client is sidelined in favor of maximizing profits, even at the expense of the client.
    See Full Article.

    The pervasive greed on Wall Street that caused the recent financial crisis has apparently not been tamed nor have lessons been learned. CBAI and ICBA have long advocated that giant too-big-to-fail financial firms should be downsized so that, in the event of insolvency, they can be dissolved without relying on special government bailouts.

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    National Black Chamber President: "Durbin Hurts Small Businesses"

    The President of the National Black Chamber of Commerce, Harry Alford, last week criticized the Durbin amendment for increasing costs to small businesses. He said, “Government intervention in the interchange system might boost profits for giant retailers but it harms the interests of American small businesses.”
    See BankThink Article. CBAI and ICBA vigorously opposed the Durbin amendment last year and now supports efforts to repeal its provisions.

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    Baker Market Update

    Information received since the Federal Open Market Committee met in January suggests that the economy has been expanding moderately. Labor market conditions have improved further; the unemployment rate has declined notably in recent months but remains elevated.
    Read More

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    Rural Mainstreet Economy Remains Strong

    The Rural Mainstreet Index (RMI) is based on a monthly survey of community bank CEOs in 10 regional states including Illinois. This month the Index was unchanged from February’s strong 59.6 rating. Nearly four in 10 bankers reported that cash farmland rents grew by more than 10 percent during the past year, and very strong cash balances among farmers continue to weaken loan demand.
    See Full Report.

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    Lender Liability Suits On The Rise
    John Immordino, CBIS Powered by Nicoud

    Several times a year I like to stick my toe into the claims pool and check the temperature by contacting insurance carriers that specialize in community banks to determine the types of claims that are being filed by their insureds. The consensus is that Lender Liability suits are on the rise. To read more, please
    click here.

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    Securities Rules for Private Equity Financings
    Tim Sullivan, Hinshaw & Culbertson LLP

    In order to sell securities (notes, common stock, preferred stock, membership interests in an LLC), a company must either register the sale under federal and state securities laws or find an exemption from such registration requirements. Complying with the securities registration provisions of federal and state law is a time-consuming and costly process. Most small to mid-size companies do not want to spend the money or time it would take to register such sales. In addition, the registration of such sales with the SEC may subject the company to continued SEC reporting requirements. To read the complete white paper by Sullivan,
    click here.

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    FREE Seminar: Is Your Bank’s Security Program Moving in Right Direction?

    The security industry is constantly changing. What does security integration mean to you? What trends should you be paying attention to? What technology should you replace? How do you manage it all? During this session, these questions will be answered and will allow you to make informed decisions about your bank's security. For more information and to register,
    click here.

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    CBAI Directors’ Workshop Scheduled for March 27-29

    CBAI offers the annual "Directors’ Workshop" in three locations next week. "Community Bank Survival Guide: How to Stay Independent in a Consolidating Environment," shows how to increase value without a sale of the organization, and also discusses current trends in the M&A market from a buyer's standpoint and a seller's standpoint. Topics covered include fundamental board duties, tips for building a better board, ways to increase shareholder value without sale, new strategic planning techniques, buy, sell, or remain independent, new regulatory issues and trends, and key tips on ways to remain independent. Leading this seminar is Philip K. Smith, president and a member of the board of directors of the Memphis-based law firm of Gerrish McCreary Smith, PC, and its affiliated bank consulting firm, Gerrish McCreary Smith Consultants, LLC.

    For more information and to register, please
    click here.

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    Interest Rate Risk and Investment Management Scheduled for April 4

    CBAI is pleased to offer "Interest Rate Risk and Investment Management" in Springfield on April 4. This program focuses on the critical importance of investments and asset/liability management in the new regulatory and economic environments. Interest-rate risk, liquidity risk, cash-flow management, and security-selection techniques are discussed, as well as Fed Policy considerations and the interest-rate outlook generally. An integrated approach to balance-sheet risk management is emphasized as a guide for making investment decisions. There are also examples of recommended tools of analysis for security selection. Participants learn about relative value in different sectors of the bond market, and optimal measures of risk and reward. Topics covered include current market conditions, Fed policy, and the interest rate outlook; strategies for investments within the context of balance sheet management; security selection practices for the investment portfolio; asset/liability management techniques and regulatory issues; and interest rate risk processes and reporting requirements. Leading this seminar are Jeffrey Caughron and Ryan Hayhurst, both of THE BAKER GROUP, Oklahoma City, OK, a CBSC-preferred service provider of investment and asset/liability management.

    For more information and to register, please
    click here.

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    Auditing Deposit Regulations Scheduled for April 5

    "Auditing Deposit Regulations (DD, Privacy, Safeguarding, Advertising, Social Media)" will be held in Springfield on April 5. This seminar starts with an in-depth review of regulations from start to finish including the commentary, how to research it, and where to go to get answers. Then it focuses on audit programs, checklists, and audit aids to make the auditor more efficient. At the conclusion, time is devoted to report writing and presentation of findings. Objectives of the seminar include learning the overall coverage of these sometimes-overlooked regulations in order to audit it effectively; determining what is or is not interest, or a bonus, or a lottery; understanding the various disclosure requirements in order to audit effectively; and understanding the impact of sharing customer information, and what exactly a privacy notice should look like. This seminar should be attended by beginning and experienced internal auditors.Leading this seminar is Tim Tedrick, a partner at Wipfli, LLP, Sterling, IL, who specializes in compliance, consulting, and assistance.

    For more information and to register, please
    click here.

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    CBAI Announces Saturday Night Entertainment at 38th Annual Convention

    The Saturday night entertainment for the 38th Annual CBAI Convention & Expo is Paul Revere and The Raiders. The group consists of founding member Paul Revere, Doug Heath (group’s lead guitarist for more than 35 years), Ron Foos (bassist for more than 35 years), Danny Krause (keyboardist for more than 28 years), Darren Dowler (lead vocalist and Vocal Group Hall of Fame inductee) and Tommy Scheckel (drummer and newest member). Paul Revere and The Raiders had 23 consecutive hit singles including Indian Reservation, Kicks, Just Like Me, Hungry, Steppin' Out, Good Thing, Ups and Downs, Him or Me – What's It Gonna Be?, Stepping Stone, and Louie Louie. Scheduled for September 20-22, "Building for Tomorrow," will be held at the Hyatt Regency at The Arch in St. Louis, MO. The early-bird deadline is April 30, 2012, so register today!

    For the information on Paul Revere and The Raiders, please
    click here.

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    CBAI
    ACT Appraisal

    PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 5/15/2012


    TELEPHONE/WEBCASTS THROUGH 5/31/2012


    CBAI EVENTS
    CBAI'S 2012
    Capital Conference

    April 17, 2012 – Hilton Hotel, Springfield

    CBAI’s 30th Annual
    Call on Washington

    April 24-27, 2012 – Gaylord Resort and Convention Center, National Harbor, Maryland



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