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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 29, 2017

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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • Register Now for Capital Conference - Time Is Running Out!
  • Drive Employees to Sign Regulatory Relief Petition!
  • Sign Up Today for CBAI's 35th Annual Call on Washington!
  • Banking Agencies Fail in Joint Review of Banking Rules
  • ICBA Advocates Further De Novo Reforms Before Congress
  • Gruenberg: Deposit Insurance Fund Growth on Track
  • OCC: Mortgage Performance Continues to Improve
  • Registrations Now Open for the Group 5, 6, 8, 10, 11, 12, & 13 Meetings!
  • Investment News From THE BAKER GROUP
  • February Mid-America Economic Index Jumps to Highest Level in Three Years
  • Only Two Weeks Left to Complete the CBAI Compensation Survey
  • Cardholder Satisfaction - How to Remain Top of Wallet
  • What Motivates Millennials to Switch Banks
  • It’s Time to Pick Your Team
  • CBAI LEGAL: Bankruptcy Court Cannot Expand Deadlines
  • CBIS Nicoud: Storm Season Invites Review of Banks’ Disaster-Recovery Plans
  • Register Today for Early-Bird Pricing for CBAI's 43rd Annual Convention!
  • CDD Spring Meeting Scheduled for April 5-6
  • Compliance Institute Lending Session Set for April 10-13
  • Loan Documentation for Support Staff to be Held for April 18-20
  • Writing an Effective Credit Memo Slated for April 21


  • Register Now for Capital Conference - Time Is Running Out!

    Your Advocacy Is Crucial

    For one valuable day every year, CBAI member bankers make their voices heard. The 33rd Annual Capital Conference will be held Wednesday, April 5 at the Wyndham Springfield City Centre. The day begins with a legislative briefing and luncheon. This year's guest keynote speaker is political pund it Rich Miller, publisher of Capitol Fax and syndicated news columnist. 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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    Drive Employees to Sign Regulatory Relief Petition

    CBAI and ICBA are urging community bankers to drive employees to sign ICBA’s Petition supporting the ICBA Plan for Prosperity platform. The nation’s more than 760,000 community bank employees are a formidable force and are needed to advance meaningful regulatory relief.

    Join the community banking profession’s fight against burdensome regulations and forward the Petition link throughout your community bank. Sign the Petition Today!

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    Sign Up Today 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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    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!



    Banking Agencies Fail in Joint Review of Banking Rules

    Federal banking regulators last week released their joint report to Congress on outdated or unnecessary regulations under the current Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) review. In response, ICBA said the report fails to advance meaningful relief and largely recaps initiatives already required by Congress.

    “Today’s report falls far short of making the substantial impact on regulatory burden that ICBA has advocated in several comment letters and meetings since this EGRPRA review launched nearly three years ago,” ICBA President and CEO Cam Fine said. “Regulators have said at these meetings that if they don’t advance real and substantive relief under this EGRPRA review, then they will have failed. Today’s report clearly shows that they have.” CBAI fully concurs with ICBA’s assessment of the report.

    CBAI and ICBA have advocated meaningful reforms to a plethora of policy areas since the current EGRPRA review launched in June 2014, including exempting community banks from Basel III capital reforms, reducing the call report burden, encouraging de novo banking and raising Community Reinvestment Act asset thresholds. The failure of the regulatory agencies to meaningfully reduce regulatory burden underscores the importance of Congressional action on ICBA’s Plan for Prosperity. Read ICBA Release. See Agency Report.

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    ICBA Advocates Further De Novo Reforms Before Congress

    ICBA is pressing the FDIC for additional changes to the de novo application process.

    In a statement for last week's House Subcommittee on Financial Institutions and Consumer Credit hearing on ending the de novo drought, ICBA said the agency should streamline the financial projections and marketing plans that applicants must submit. Not only is the business plan requirement overly detailed and burdensome, but successful applicants are not permitted to deviate from their business plans without regulatory approval.

    ICBA won a significant change to de novo policy when the FDIC last year reduced from seven to three years the period of heightened de novo supervisory monitoring and capitalization. However, ICBA’s statement cites the need for additional reforms as well as regulatory relief under the ICBA Plan for Prosperity, which would help remove deterrents to de novo formation.

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    Gruenberg: Deposit Insurance Fund Growth on Track

    The FDIC Deposit Insurance Fund balance rose to $83.2 billion at year-end 2016, an increase of $10.6 billion over the previous year, FDIC Chairman Martin Gruenberg said last week at the FDIC board meeting. The DIF reserve ratio was 1.20 percent, the highest reserve ratio in nine years.

    Gruenberg said the DIF reserve ratio is expected to reach 1.35 percent in 2018, roughly two years ahead of its statutorily required schedule. He noted that community banks under $10 billion in assets will receive credits for the portion of their assessments that contribute to the increase in the reserve ratio from 1.15 percent to 1.35 percent. Read FDIC Chairman’s Remarks.

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    OCC: Mortgage Performance Continues to Improve

    The overall performance of first-lien mortgages continues to improve, and the number of loans in delinquency continues to decline, according to the Office of the Comptroller of the Currency’s (OCC) most recent quarterly report on mortgages.

    The OCC Mortgage Metrics Report, Fourth Quarter 2016, showed 94.7 percent of mortgages included in the report were current and performing at the end of the quarter, compared with 94.1 percent a year earlier. The report also showed that servicers initiated 45,495 new foreclosures in the fourth quarter 2016, a decrease of 5.1 percent from previous quarter and a decrease of 28.2 percent from a year earlier. Read More.

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    Registrations Now Open for the Group 5, 6, 8, 10, 11, 12, & 13 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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    Investment News From THE BAKER GROUP

    Baker Market Update

    Despite the FOMC’s quarterpoint nudge to Fed Funds, bond prices will finish higher than where they started. The lofty expectations generated by the changing of the guard in Washington, D.C., may be fluttering closer to earth as the realization sets in that campaign promises are easier to make than to fulfill. See Baker Market Update.

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    February Mid-America Economic Index Jumps to Highest Level in Three Years

    The Creighton University Mid-America Business Conditions Index, a leading economic indicator for a nine-state region stretching from Arkansas to North Dakota and including Illinois, rose for February, according the latest survey results.

    The Business Conditions Index, which ranges between 0 and 100, climbed in February to its highest level since April 2014 to a strong 60.5 from January’s 54.7. “This is the fourth consecutive month the index has increased and points to an improving regional manufacturing economy. I expect this to generate even healthier growth for both manufacturing and nonmanufacturing through the third quarter of this year,” said Ernie Goss, Ph.D., director of Creighton University’s Economic Forecasting Group and the Jack A. MacAllister Chair in Regional Economics in the Heider College of Business. Read Release.

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    Only Two Weeks Left to Complete the CBAI Compensation Survey

    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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    Cardholder Satisfaction - How to Remain Top of Wallet

    Cardholder satisfaction and loyalty are directly related to your institution’s ability to keep payments secure and convenient in a post-EMV® environment. In this session, we will discuss three card trends that will help you keep your cardholders happy and your cards top of wallet:

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    What Motivates Millennials to Switch Banks

    Research reveals that Millennials are willing to change their banking provider, and what might be needed for retail financial institutions to win over greater market share.

    In a research study commissioned by Kasasa (a CBAI preferred services partner) and conducted online by Harris Poll, Americans ages 18+ were asked about their perceptions of financial institutions, as well as the factors that influence where they conduct financial business and what they look for when seeking a new institution. The results offer insight into how community banks can tailor their strategy to meet consumer demand, build profitable relationships, and capture greater market share among Millennials.

    The playing field for brand recognition is more level than might be expected, and the motivators for switching are well within the reach of community banks. In fact, the vast majority of Millennials (83%) would switch banks if one offered more or better rewards (e.g., high interest rate on checking, cash back on purchases, ATM fee refunds) than another. Read More. See Kasasa Survey Results.

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    It’s Time to Pick Your Team

    Performance Delta, a CBSC preferred provider, has created a new program that will help strengthen the team atmosphere in a financial institution, while enhancing the banks bottom line. The program is called Performance Fantasy League (PFL) and it takes the concept of Fantasy Sports and applies it to every employee in every position to create a fun competition between teams. Read More.

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    CBAI LEGAL: Bankruptcy Court Cannot Expand Deadlines

    In its March 13, 2017 opinion in the case of Netzer v. Office of Lawyer Regulation, the U.S. Court of Appeals for the Seventh Circuit ruled that a Bankruptcy Court judge lacked discretionary authority to alter deadlines unambiguously codified in the Bankruptcy Code. Read Most Recent CBAI LEGAL.

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    CBIS Nicoud: Storm Season Invites Review of Banks’ Disaster-Recovery Plans

    More than three years ago, the FDIC issued an advisory statement clarifying a prohibition on director and officer policy riders that cover civil monetary penalties assessed on a bank’s leadership through administrative or civil action brought by regulators.

    While not a new subject, clarity of this restriction remains an important topic for community banks. Read More from CBIS Nicoud.

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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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    CDD Spring Meeting Scheduled for April 5-6

    The Career Development Division is pleased to announce the CDD Spring Meeting is scheduled for April 5-6, 2017, at the Wydham City Centre, Springfield, (formerly Hilton Hotel). The CDD Spring Meeting is geared toward honing professional and banking skills. This year, CDD members have an opportunity not only to attend the CDD Spring Meeting, but also participate in CBAI’s 33rd Annual Capital Conference. As a CDD Spring Meeting registrant, the fee for attending Capital Conference is included and registrants can attend one or all of the conference activities. CBAI’s Capital Conference, which takes place the day before the CDD Spring Meeting, emphasizes the legislative process, while offering an excellent balance of learning opportunities and peer networking. Many issues vital to community banks will be on CBAI’ s Legislative Agenda for future sessions of the Illinois General Assembly. Topics covered at the CDD Spring Meeting include “Developing the Next Generation of Community Bank Leaders” Christie Summervill, BalancedComp; “Accelerate Your Bank’s Performance” Chris Scaffidi, director of Market Development, The Pacific Institute; "New Customer Onboarding & The Omni Channel Experience - How to Maximize Retention & Accelerate Wallet Share" with Chuck Bruney, founder and CEO, Align FSC; and “Why Banks Should Re-Focus on Culture” with Karl Nelson, founder a CEO, KPN Consulting. The Spring Meeting also includes a networking session and the annual Business Meeting Luncheon.

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    Compliance Institute Lending Session Set for April 10-13

    Community banks are constantly faced with a bewildering array of ever-changing regulations. In response to this training need, CBAI is pleased to present the “Compliance Institute – Lending” this April. An introductory course for those compliance officers who are either new to banking or new to their positions, this four-day institute is designed to provide a comprehensive understanding of the major regulatory compliance regulations that have been determined to be “must knows” for all compliance officers. Topics covered include Regulation Z: Truth in Lending, Regulation B and the Fair Housing Act: Fair Lending, Regulation X: Real Estate Settlement Procedures Act, National Flood Insurance Program, Regulation C: Home Mortgage Disclosure Act, compliance management, privacy of customer information, FCRA and Regulation V (lending portion only), and Customer Identification Program (BSA). New compliance officers, internal auditors, compliance back-up personnel, and other bank employees who want to be comfortable with the compliance regulations should attend this informative program. This program is also an excellent “refresher” for experienced compliance personnel. Bill Elliott, CRCM, senior consultant and manager of compliance, and Adam Witmer, CRCM, senior consultant, both of Young & Associates, Inc., Kent, OH, lead this institute.

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    Loan Documentation for Support Staff to be Held for April 18-20

    Loan documentation is a critical component in lending. After the decision to make a loan has been made, the next step is the documentation-closing process. This part of the lending process is essential in order to avoid loan losses due to poor documentation. Many community banks assign this important responsibility to loan administrators with input from the sponsoring loan officer. If not performed properly, poor documentation can cause loans to be adversely classified, even if the underlying credit is sound or if the loan is performing as agreed. The purpose of this seminar is to provide participants with a good understanding of the loan-documentation process. Participants are exposed to the five steps in the loan-documentation process, which include identifying the borrower, identifying and documenting the collateral, evidencing the debt, attaching the collateral, and perfecting the security interest. Leading this seminar is Jeffery Johnson, president and founder of Bankers Insight Group, Atlanta, GA, who has more than 36 years' experience in banking.

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    Writing an Effective Credit Memo Slated for April 21

    After a detailed credit analysis of a loan request has been performed, it is now time to communicate your findings in writing. Credit memoranda are a primary means of communications within the banking field. In writing effective credit memoranda, it is not what you say that commands attention, but how you say it. Credit memoranda serve three functions: they provide information on the condition and status of a customer relationship; they provide a record of thoughts and actions; and they support or recommend action. The purpose of this course is to teach skills required to write an effective credit memo, placing emphasis upon factors or trends that are important without the need to state the obvious. In short, the credit memo should present relevant, material facts and the writer's thoughts and opinions. Leading this seminar is Jeffery Johnson, president and founder of Bankers Insight Group, Atlanta, GA, who has more than 36 years' experience in the banking field.

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