Connected To Community Banking!
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 30, 2016

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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • Register Now to Attend CBAI's 32nd Annual Capital Conference on April 20!
  • Sign Up for CBAI's 34th Annual Call on Washington Set for April 24-27
  • Registration Now Open for Groups 5, 6, 7, 10, 11, 12, & 13 Meetings
  • House Coalition Urges Agencies to Tailor Community Bank Regulations
  • CBAI Urges Community Bank Regulatory Relief in Final EGRPRA Letter
  • ICBA Issues Summary on CFPB Mortgage Relief Rule
  • Fine: Mortgage Relief Recognizes Community Banks’ Unique Role
  • FHFA: Fannie, Freddie Delinquency Rates at New Lows
  • GAO Report: “Financial Regulatory Structure Should Be Simpler”
  • Investment News From THE BAKER GROUP
  • Rural Mainstreet Economy Remains Weak in March
  • Four Reasons Consumers are Better Off with a Community Bank
  • FDIC Publishes "Customer Cybersecurity Guide"
  • HMDA Reporting Change: Loan-Volume Thresholds
  • “Branch of Future” Will Resemble Branch of Today
  • Today's Students Are Tomorrow's Best Customers!
  • The Staying Power of Checks
  • CBIS Nicoud: Cyber & Related Threats
  • Illinois Recycles $2.3 Million in Federal Small-Business Funds
  • Is Your Technology Provider a Strategic Partner with Your Bank?
  • CBAI LEGAL: Justice Scalia’s SCOTUS Vacancy Affects Banking Case
  • Register Today for Early-Bird Pricing at CBAI’s Convention & Expo
  • Residential Real Estate Lending Institute Scheduled for April 4-6
  • Accounting Basics/Refresher to be Held April 11
  • Directors’ Workshop Scheduled for April 12-14


  • Register Now to Attend CBAI's 32nd Annual Capital Conference on April 20!

    CBAI's Capital Conference is scheduled for Wednesday, April 20 at the Wyndham Springfield City Centre (formerly Hilton Springfield). Make your voice heard with your local legislators and banking regulators. In addition to hands-on lobbying at the state Capitol, the agenda will include meetings with constitutional officers, legislative leaders and regulators. The day will begin with the annual luncheon and conclude with the very popular legislative reception.

    The cost for this event is only $100 per institution ($150 after April 1) and covers the cost for ALL, so please bring as many officers, directors, and employees as you wish. Register Here!

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    Sign Up for CBAI's 34th Annual Call on Washington Set for April 24-27

    The Call on Washington is an annual lobbying trip organized by the Community Bankers Association of Illinois. For 33 years, community bankers from across Illinois have been traveling to Washington, D.C. to express their positions on issues to federal regulators and their Members of Congress.

    The up-to-the-minute briefings by expert staff from Washington and face-to-face meetings with regulators and legislators provide first-hand knowledge of the pressing issues facing community banking. We cannot make a difference sitting idly by and allowing change to take place without providing input! Let your voice be heard by those who can affect the process.

    This year’s Call on Washington will be in conjunction with ICBA’s 2016 Washington Policy Summit. Along with CBAI coordinated events, Illinois’ entire delegation is also invited to attend ICBA’s Summit meetings and events. Register Here!

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    Registration Now Open for Groups 5, 6, 10, 11, 12, & 13 Meetings

    CBAI leaders and executive staff are visiting 11 locations on the 2016 Group Meeting tour this spring. Bankers from nearly 200 banks participate in these enjoyable and informative events each year. Consisting of an optional golf outing and a dinner meeting, Group Meetings also provide an excellent opportunity to get the latest information on key banking issues and catch up with friends and peers. The opening portion of each Group Meeting focuses on critical legislative and association issues. CBAI President Bob Wingert provides updates on Association projects and community banking in general; and Senior Vice President of Governmental Relations Kraig Lounsberry offers an up-to-the-minute report of banking-related legislative activities. This year’s after dinner topic is “The Financial Technology Revolution,” presented by Michael Peterson, manager of financial institution sales at Fitech Payments. The wind of change in the payments world is gaining in strength as financial technology’s “fintech” potential to alter how, where and when payments are made – as well as who it is that facilitates them. Registration is now open for Groups 5, 6, 10, 11, 12, & 13, so register today! See Meeting Schedule Here!

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    CBAI Connected to Community Banking is sponsored by The SHAZAM Network: Nothing is more important than keeping yourself, your employees and your customers safe. As the violence of robbery continues to harm financial institutions across the nation, are you prepared? SHAZAM now offers crime response training for the financial services sector with our robbery and crisis management consultant (who has over 30 years of experience in the criminal justice field). Training options include a threat assessment, a robbery course and an active shooter workshop. Help keep your organization safe. Sign up today!



    House Coalition Urges Agencies to Tailor Community Bank Regulations

    A bipartisan coalition of 131 House members expressed deep concerns with the community bank impact of expanding regulatory burdens. In a letter to federal financial regulators, the lawmakers called for regulations that are tailored to the differing business models, risk profiles and compliance resources of regulated institutions.

    The letter, spearheaded by Representatives Scott Tipton (R-Colo.) and David Scott (D-Ga.), asks the regulators to identify their efforts to tailor regulations, areas where they lack authority to tailor their rules, and how they can take additional action. This week’s message follows a recent letter from 329 House members calling on the Consumer Financial Protection Bureau to reduce the regulatory burden on community banks.

    CBAI and ICBA continue push for tiered regulations. ICBA’s Plan for Prosperity, which CBAI supports, includes a comprehensive set of provisions to relieve community banks from excessive regulatory burdens. Read Coalition Letter. See Plan for Prosperity.

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    CBAI Urges Community Bank Regulatory Relief in Final EGRPRA Letter

    CBAI urged broad regulatory relief for community banks in its final Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) comment letter. The EGRPRA Act of 1996 requires that banking regulations be reviewed by the agencies at least once every 10 years. The purpose of this review is to identify outdated, unnecessary, or unduly burdensome regulations and consider how to reduce regulatory burden on insured depository institutions. CBAI urged regulators to act swiftly to identify and implement changes in regulations that will help ease the regulatory burden which threatens the survival of many community banks. Read More.

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    ICBA Issues Summary on CFPB Mortgage Relief Rule

    ICBA issued a summary of the Consumer Financial Protection Bureau’s interim final rule easing mortgage requirements for many community banks. The ICBA Plan for Prosperity provision, which passed among the regulatory relief provisions procured in December’s FAST Act, significantly expands the number of community banks eligible for escrow and balloon-loan exemptions under the CFPB’s Regulation Z mortgage rules.

    Effective March 31, small creditors that make a single loan in a rural or underserved area in the previous year can take advantage of the Qualified Mortgage safe harbor for portfolio balloon loans and the higher-priced loan escrow exemption for rural lenders. The interim final rule is the result of years of ICBA, state association and community bank advocacy with the CFPB and Congress. Read ICBA Summary. Read More from CFPB.

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    Fine: Mortgage Relief Recognizes Community Banks’ Unique Role

    It was a long time coming, but the Consumer Financial Protection Bureau’s recently updated mortgage regulations will ease unnecessary restrictions on many community banks, ICBA President and CEO Cam Fine wrote in a new blog post. Fine wrote that the CFPB’s expanded Regulation Z exemptions will allow many community banks to continue meeting the unique needs of their customers.

    “This isn’t an example of ICBA, our affiliated state associations and community bankers achieving some abstract policy goal,” Fine wrote. “No, this is a case of policymakers acknowledging the benefit of a service that community bankers have offered for generations.”

    ICBA recently issued a summary of the interim final rule, which significantly expands the number of community banks eligible for escrow and balloon-loan exemptions under the CFPB’s Regulation Z mortgage rules. Read Fine’s Blog Post.

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    FHFA: Fannie, Freddie Delinquency Rates at New Lows

    The serious delinquency rate at Fannie Mae and Freddie Mac fell below 1.5 percent at the end of the fourth quarter, from a peak of 4.93 percent in the first quarter of 2010, according to the Federal Housing Finance Agency (FHFA). The total number of loans that are 60 or more days delinquent dropped 3 percent during the quarter to the lowest number since the first quarter of 2008. The FHFA said Fannie and Freddie completed 47,769 foreclosure-prevention actions in the fourth quarter of 2015, which brings their total to more than 3.6 million since September 2008. See FHFA Report.

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    GAO Report: “Financial Regulatory Structure Should Be Simpler”

    Congress should consider streamlining the financial regulatory structure and give the Financial Stability Oversight Council broader authority to respond to systemic risks, according to Government Accountability Office report published earlier this week. This issue has been debated for many years, and CBAI recognizes that the best interests of community banks could be impacted by structural changes to the regulatory framework. Since its inception in 1974, CBAI has supported the dual banking system that provides the option of state and national chartering and supervision. See GAO Report.

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    Investment News From THE BAKER GROUP

    Baker Market Update

    Recently we've learned that existing home sales fell by 7.1% in February. New Home Sales fared a little better with a 2% rise, but they got rocked in January with a 7% drop, and the market was expecting a bit more of a rebound. Home prices inched up a little bit with a 0.5% rise in the Federal Housing Finance Agency Home Price Index. A See Baker Market Update.

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    Rural Mainstreet Economy Remains Weak in March

    For the seventh straight month, the Rural Mainstreet Economic Index fell below growth neutral. The Index is based on survey results of community bank CEOs throughout the Midwest and compiled by Creighton University. The survey also found that farm equipment sales declined to a record low level, and farmland prices are down by an estimated 6.7 percent over the past year. See News Release. Read Mainstreet Economy Report.

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    Four Reasons Consumers are Better Off with a Community Bank

    According to Jackson Wise of Kasasa, consumers are better off doing business with a local community bank compared to a mega bank, and studies prove it. Not only do many community banks offer free checking, they also offer rewards in the form of high interest, cash back, and fee refunds. Community banks also provide better and more personalized service, and they invest in the local community. Read Kasasa Blog.

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    FDIC Publishes "Customer Cybersecurity Guide”

    Earlier this month the FDIC published a Winter 2016 special edition of its FDIC Consumer News entitled "A Bank Customer's Guide to Cybersecurity.” Regulatory authorities are very concerned about cybersecurity and have recognized it as the number one risk facing community banks today. The level of risk can be increased by your customers’ lack of understanding of cybersecurity issues.” Read BankOnIT Blog.

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    HMDA Reporting Change: Loan-Volume Thresholds

    As part of Wolters Kluwer’s continuing efforts to keep CBAI members informed of key developments relating to the Home Mortgage Disclosure Act (HMDA) Rule changes, regulatory expert Amy Downey notes that the Consumer Financial Protection Bureau has recently changed its stance on the use of home equity lines of credit in the institutional coverage definition. These thresholds are effective starting Jan. 1, 2018 and are calculated using lending volumes for the previous two calendar years—2017 and 2016. This clarification comes from the final rule (pages 79-82). See HMDA Final Rule. See Wolters Kluwer's HMDA Resource Center.

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    “Branch of Future” Will Resemble Branch of Today

    Despite a decline in branch traffic over the past 20 years, the pace has slowed. Over the past five years, teller transactions have declined a mere 1.9% as surveys have found that most bank customers continue to place value on physical offices.

    For more information on three basic branch design models that analysts believe will dominate financial services over the next 20 years, Click Here.

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    Today's Students Are Tomorrow's Best Customers!

    iHELP Private Student Loan Program can keep those customers banking with you, without risk to your bank. iHELP is a fully insured and administered student loan product that currently provides over 250 ICBA member banks access to a program for private student lending, both in-school and to refinance existing loans. Additionally, iHELP has partnered with the CBAI's Foundation for Community Banking to offer a Referral Partner program to CBAI member banks that will help fund the Foundation’s Scholarship programs while offering affordable student loans to Illinois residents.

    iHELP is hosting two webinars to share how community banks can easily offer iHELP Private Student Loans to their customers and community while giving back to the CBAI Foundation for Community Banking. Your bank DOES NOT make the student loan. There is no liability, but this program allows you to positively assist your customers when they seek help for college funding.

    Webinar information:
    Tuesday, April 5, 2016 3:00 pm, Eastern Daylight Time
    Event address for attendees: https://ihelploan.webex.com/ihelploan/onstage/g.php?MTID=e4722464782212d4027b017da3f3e211b
    Audio conference information
    -------------------------------------------------------
    US TOLL: +1-415-655-0001
    Access code: 668 698 981

    OR

    Wednesday, April 6, 2016 11:00 am, Eastern Daylight Time (New York, GMT-04:00)
    Event address for attendees: https://ihelploan.webex.com/ihelploan/onstage/g.php?MTID=e19a029fe9b6f75d91df244f189faef2a
    Audio conference information
    -------------------------------------------------------
    US TOLL: +1-415-655-0001
    Access code: 667 732 819

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    The Staying Power of Checks

    Cash may be king, but when it comes to making big purchases, who really carries around that much green? Online bank transfers, although now more common, are not always practical for brick-and-mortar shopping. Swiping a credit card isn't an option if you're buying from small businesses that don't accept them. That leaves the trusty paper check. Sure, the check has seen better days. But even in an increasingly paperless society, checks continue to have staying power. Read More.

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    CBIS Nicoud: Cyber & Related Threats

    (Part 3 in a Series of 3)

    Not a day passes we don’t hear something in the news concerning cyber and related threats impacting financial institutions, retail merchants, and individuals. Recent reports indicate that EVERY TWO SECONDS someone’s personal identity is compromised! How do we navigate through all of these messages to identify our exposures, define a strategy to handle risk, implement our response program, and monitor or adjust under changing conditions? Read More from CBIS Nicoud.

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    Illinois Recycles $2.3 Million in Federal Small-Business Funds

    Illinois State Small Business Credit Initiative is now a self-sustaining lending source for Illinois small businesses, according to the U.S. Treasury Department’s quarterly SSBCI report. The report cites that Illinois has recycled three percent of its original SSBCI funds. Illinois will continue to use the funds to reinvest in the local community as SSBCI-funded loans are repaid and investment earnings are realized. Nationally, the SSBCI program has disbursed more than $1.3 billion of the total SSBCI allocation to participating states since the program’s inception. SSBCI is expected to help spur up to $15 billion in additional private sector lending and investing. To get involved with the SSBCI program, Click Here. Access State-by-State Quarterly Results.

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    Is Your Technology Provider a Strategic Partner with Your Bank?

    Authored by Steve Heckard of Austin Associates, this article stresses the importance of maintaining bank and vendor relationships. He notes that the key to achieving a beneficial vendor relationship is managing the relationship and that responsibility falls squarely on the bank. He states that too much is at stake to remain passive with a technology vendor, and dysfunction can eventually lead to a new core vendor search. He provides four important questions to ask about the current status of your bank and its vendor relationships. Read More.

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    CBAI LEGAL: Justice Scalia’s SCOTUS Vacancy Affects Banking Case

    The vacancy on the U.S. Supreme Court resulting from the death of Justice Antonin Scalia has made one of its first impacts, and it affected a banking case involving the Equal Credit Opportunity Act. See Most Recent CBAI LEGAL.

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    Register Today for Early-Bird Pricing at CBAI’s Convention & Expo

    Registration is now open for CBAI’s 42nd Annual Convention & Expo, scheduled for September 15-17, 2016, at the Marriott Downtown Kansas City. Expert speakers on the hottest community banking topics fill an education agenda featuring 20 break-out sessions. Eric Boles, president of The Game Changers Inc., a company dedicated to maximizing employee commitment and performance, takes the stage for this year’s Opening Breakfast. A highly acclaimed keynote speaker and consultant, Boles learned many principles of team dynamics and leadership from his experience playing in the National Football League (NFL) with the New York Jets and the Green Bay Packers. Also on the agenda is the Welcoming Reception with BancPac Live and Silent Auction, a jam-packed exhibit hall with nearly 90 booths, fun partner’s programs exploring the exciting city of Kansas City, a Closing General Session, and much more. Our annual showcase event closes with the only group dedicated to recreating the Motown experience in both music and dance, The Fabulous Motown Revue. Performing together for more than 25 years, members of The Fabulous Motown Revue have played with The Four Tops, Martha Reeves, Natalie Cole, Aretha Franklin, Ray Charles, Mary Wilson, The Temptations, and many other Motown favorites. Early-bird Registration Here.

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    Residential Real Estate Lending Institute Scheduled for April 4-6

    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 on day one include secondary mortgage market, loan applications and interviewing, lending to self-employed borrowers, and underwriting. Day two discusses regulatory compliance, loan origination, and construction financing and site visit. Day three concludes the institute with how to analyze appraisals and loan processing. David Kemp, founder and president of Bankers Management, Inc., a financial management consulting and training firm in College Park, GA, heads the distinguished faculty. Joining Kemp on the faculty is Bill Elliott, CRCM, senior consultant and manager of compliance with Young & Associates, Inc., in Kent, OH.

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    Accounting Basics/Refresher to be Held for April 11

    This seminar provides participants with a refresher on the basics of accounting. It demonstrates the 10-step cycle, leading up to the creation of the income statement, statement of owner’s equity, balance sheet, and statement of cash flows and how these financial statements connected to one another. Numerous “hands-on” examples are included to reinforce the accounting concepts. Anyone who is in need of a refresher on the basics of accounting would benefit from attending this seminar. Topics covered include the four major financial statements; rules of credits and debits; accrual versus cash-basis accounting; adjusting entries; accounting for inventories and receivables; long-term disabilities and depreciation; analysis of notes to the financial statements; and types of financial statements and the CPA opinion. Leading this seminar is Jeffery Johnson, president of Bankers Insight Group, Atlanta, GA, who has more than 25 years’ experience in banking.

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    Directors’ Workshop Scheduled for April 12-14

    Being a member of a community bank's board of directors is a challenging and rewarding experience. The community bank director has duties to the institution, its stockholders, and its depositors. And, he or she has responsibilities to the public-at-large. Offered in three locations, CBAI gathered top banking experts to make this comprehensive, one-day Spring Directors' Workshop a must-attend. Topics covered include strategy development; balance-sheet analysis; and a regulatory panel. Leading this workshop is John Oliver, founder of Laurel Management Systems, Inc., Palm Springs, CA.

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