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                              April 6, 2011 Graphic
Graphic
Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • Registration Still Open for CBAI's Capital Conference!
  • REGISTER NOW for CBAI's 29th Annual Washington Visitation!
  • Illinois Senate Approves Combining Treasurer’s and Comptroller’s Offices
  • Proudly Announce the Merits of Banking Locally!
  • ICBA’s Fine Discusses TARP and Interchange on Squawk Box
  • FDIC Releases Clarifications on Overdraft Guidance
  • ICBA and CBAI Support Bill Addressing Frivolous Patent Lawsuits
  • Repeal of 1099 Reporting Requirement Goes to the President
  • Treasury Offers Free Webinars on SBLF
  • ICBA Makes Recommendations on CFPB
  • Have You Completed Your CBAI Officer Compensation Survey Yet?
  • Lessons Learned from The Epsilon Breach
  • FTC Releases List of Top Consumer Complaints in 2010
  • Baker Market Update
  • Fed’s Midwest Economic Index Improved in February
  • Chicago Fed Introduces National Financial Conditions Index (NFCI)
  • FDIC Board Approves Joint Proposed Rule on Resolution Plans and Credit Exposure Reports for Covered Systemic Organizations
  • Lower Deposit-Insurance Assessments Now In Effect
  • Overcoming “Spreadsheet Inertia”: Steering Away from Excel-Based Risk Management Practices
  • 50 Years in Banking is an Accomplishment — Shouldn’t It Be Recognized?
  • Interest Rate Risk and Investment Management Set for April 11 & 12
  • Loan Documentation for Support Staff Offered Next Week
  • What You Need To Know about the UCC Set for April 13
  • Seven Proven Strategies to Come Out Ahead During a Recession
  • Register Today for Early-Bird Pricing for CBAI’s Annual Convention


  • Registration Still Open for CBAI's Capital Conference!

    CBAI's 27th Annual Capital Conference will take place on April 13, 2011 at the State House Inn in downtown Springfield. There are several legislative proposals pending action in the legislature affecting community banks, so
    community banker involvement is crucial. Register Today!

    Back to top

    REGISTER NOW for CBAI's 29th Annual Washington Visitation!
    May 1 - 4, Grand Hyatt, Washington, D.C.


    Washington Visitation is CBAI's annual lobbying trip to our Nation's Capital. Community bankers from across Illinois will be traveling to Washington, D.C. to express their opinions on important issues to members of Congress and federal regulators. YOUR VOICE CAN MAKE A DIFFERENCE! Now is the time to get involved. Nearly 50 bankers, guests, and staff have already registered, so please
    Register Now!

    Back to top

    Illinois Senate Approves Combining Treasurer’s and Comptroller’s Offices

    Late last week the Illinois Senate unanimously approved the merger of the Treasurer’s and Comptroller’s offices, a move which is backed by Treasurer Dan Rutherford and Comptroller Judy Baar Topinka. The combination will purportedly cut costs and improve operational efficiency. The House has to approve identical language or the proposal will fail. If approved, the issue will appear on the November ballot as a Constitutional amendment. CBAI supports the combination of the two agencies.
    See Statehouse News Article. Treasurer Rutherford will address attendees at CBAI’s Capital Conference next Wednesday, April 13. See Registration Information.

    Back to top

    Proudly Announce the Merits of Banking Locally!

    April is Community Banking Month in America, and this week CBAI is celebrating Community Banking Week in Illinois. ICBA and CBAI have prepared a customizable letter that you can personalize and send to your local media and customers to inform them of the merits of banking locally with your community bank.

    Take advantage of this great opportunity to help your customers and community recognize the importance of banking with a local community bank as compared to the mega banks on Wall Street.
    See Customizable Letter.

    Back to top

    ICBA’s Fine Discusses TARP and Interchange on Squawk Box

    ICBA President Cam Fine appeared last week on CNBC’s Squawk Box to discuss several key banking issues including TARP, the Small Business Lending Fund, and debit interchange.
    Hear his informative and inciting comments.

    Back to top

    FDIC Releases Clarifications on Overdraft Guidance

    The FDIC released a
    frequently-asked-questions document to clarify provisions of the agency’s final Overdraft Payment Supervisory Guidance. The document notes that the guidance does not apply to ad hoc overdraft payment programs and focuses instead on automated overdraft payment programs. It also notes, however, that institutions that authorize overdrafts on an ad hoc basis should manage potential risks.

    The FAQ document also clarifies the guidance’s requirement that banks provide follow-up for consumers that are chronic or excessive users of automated overdraft payment programs. According to the document, institutions may employ various techniques, based on individual customer profiles and general business practices, to contact excessive or chronic users to inform them of less-costly products and services that might meet their needs. For example, the institution’s overall approach could incorporate contacting a customer via telephone, in person, by mail or through electronic notifications.

    The FAQ further clarifies that two examples of ways in which an institution could demonstrate meaningful and effective follow-up are to provide enhanced periodic statements or employ a targeted outreach approach. It also includes an example of language that can be included on periodic statements of customers that meet the criteria of chronic use.

    The FAQs follow a recent teleconference that addressed concerns with and questions about the guidance. The FDIC announced plans for the teleconference and FAQs following a recent meeting between FDIC Chairman Sheila Bair and ICBA President Cam Fine regarding community bank concerns with the guidance.

    Community bankers can email the FDIC with further questions about the guidance. Read FDIC Q&As. Read ICBA Letter on Overdraft.

    Back to top

    ICBA and CBAI Support Bill Addressing Frivolous Patent Lawsuits

    ICBA, CBAI and a coalition of other financial services trade groups expressed support for House legislation to address poor-quality business-method patents that are plaguing the financial services industry. In a joint letter to the House Judiciary Committee, ICBA said financial firms are increasingly the target of meritless patent lawsuits brought by non-practicing entities that exploit flaws in the current system to extort money from legitimate businesses.

    The America Invents Act would establish an oppositional proceeding at the United States Patent and Trademark Office where business-method patents can be re-examined, using the best prior art, as an alternative to litigation. Also in the joint letter, the coalition advocated requiring any civil action alleging infringement of a business-method patent subject to the provisional proceeding should be stayed pending final resolution.
    Read Joint Letter.

    Back to top

    Repeal of 1099 Reporting Requirement Goes to the President

    The United States Senate this week voted 87 to 12 to repeal the CBAI-opposed 1099 reporting requirement. The bill now goes to the President who is expected to promptly sign it into law. Previously the House of Representatives voted 314 to 112 to repeal this requirement created by the Health Care Reform Act of 2010. The Act requires businesses that pay another individual or business $600 or more for goods and services to issue Form 1099s beginning in 2012.
    Read More.

    Back to top

    Treasury Offers Free Webinars on SBLF

    Beginning tomorrow, April 6, the U.S. Treasury and Promontory Interfinancial Network will hold free webinars to address key components of the Small Business Lending Fund. These one-hour sessions will discuss benefits, terms, eligibility, and application procedures.
    Click Here for more information and to register.

    Back to top

    ICBA Makes Recommendations on CFPB

    In Congressional testimony today, an ICBA spokesman offered the following recommendations to improve the operations of CFPB:

      • Restructure CFPB so it is governed by a five-member commission rather than a single director
      • Strengthen review of CFPB rules
      • Postpone transfer of functions to CFPB until its director is confirmed
      • Issue CFPB regulations jointly with the prudential regulator
      • Ensure that all fair-lending laws belong with the prudential regulator
      • Eliminate sampling examination authority
      • Relieve community banks from CFPB reporting and data collection
    CBAI concurs with these recommendations as they will focus CFPB on the real sources of risk and exempt community banks from needless requirements.
    See ICBA Press Release.

    Back to top

    Have You Completed Your CBAI Officer Compensation Survey Yet?

    CBAI listened to your suggestions. We added more categories of officers and included a “Total Compensation” category. Find out how your bank’s compensation stacks up!

    To print a copy of the survey for use as a worksheet,
    click here.

    To access the secure online survey instrument, click here.

    Back to top

    Lessons Learned from The Epsilon Breach

    Although the Epsilon breach may be the biggest of its kind, experts say the information accessed was limited in nature because it involved only email addresses and not other kinds of information such as Social Security or credit card numbers. The biggest risk for affected consumers is that they will receive more spam and phishing emails.

    Phishing messages look like legitimate communications from an organization such as a bank. These emails typically ask recipients to click on a link and provide personal information such as a password or Social Security number.

    According to experts, if you receive an email asking for personal information, delete it. Consumers should also ignore suspicious emails that ask for personal information and refrain from clicking any links embedded in those messages.

    “Consumers can't entirely avoid incidents such as the Epsilon breach without taking all of their activities offline. But practicing safe habits can mitigate the risks and help detect suspicious activity as early as possible,” said Jeremy Miller, director of operations for Kroll Fraud Solutions.

    Some of his tips include:

      •Frequently update security software on electronic devices and follow up on warning signs of potential identity theft such as the arrival of unexpected bills or collection letters.
      •Another way to vet potential phishing emails is to place the mouse cursor over the link embedded in the message. Most Web browsers and email systems will show the URL, and an address that looks unrelated to the organization purporting to send the message is a red flag.
      •Consumers also should look for signs that the websites they're visiting are deemed secure by a third party. A browser bar turning green is an indication that a site is safe.

    Back to top

    FTC Releases List of Top Consumer Complaints in 2010

    The FTC released the
    list of top consumer complaints received by the agency in 2010. The list showed that for the 11th year in a row, identity theft was the number one consumer complaint category. Of 1,339,265 complaints received in 2010, 250,854 – or 19 percent – were related to identity theft. Debt collection complaints were in second place, with 144,159 complaints. Click here to see the text of the report.

    The top consumer complaints were:
    Rank Category Number of Complaints Percentage
    1 Identity Theft 250,854 19%
    2 Debt Collection 144,159 11%
    3 Internet Services 65,565 5%
    4 Prizes, Sweepstakes and Lotteries 64,085 5%
    5 Shop-at-Home and Catalog Sales 60,205 4%
    6 Imposter Scams 60,158 4%
    7 Internet Auctions 56,107 4%
    8 Foreign Money/Counterfeit Check Scams 43,866 3%
    9 Telephone and Mobile Services 37,388 3%
    10 Credit Cards 33,258 2%

    For the first time, “imposter scams” – whereby imposters pose as friends, family, respected companies or government agencies to get consumers to send them money – made the top 10. The FTC also has issued a new consumer alert, “Spotting an Imposter”, to help consumers avoid imposter scams.

    Back to top

    Baker Market Update

    U.S. payrolls increased in March, beating expectations. March’s jobs figure is the sixth consecutive month that non-farm payrolls have increased. Core personal consumption expenditures ticked upward as expected.
    Read More.

    Back to top

    Fed’s Midwest Economic Index Improved in February

    With the manufacturing sector leading the way, the Midwest Economy Index increased for the fifth consecutive month and outperformed national growth. The Index is compiled by the Federal Reserve Bank of Chicago.
    See Fed Release.

    Back to top

    Chicago Fed Introduces National Financial Conditions Index (NFCI)

    Economists at the Federal Reserve Bank of Chicago recently unveiled a new index based on 100 indicators of financial activity that provides a comprehensive weekly update on U.S. financial conditions.
    Read More.

    Back to top

    FDIC Board Approves Joint Proposed Rule on Resolution Plans and Credit Exposure Reports for Covered Systemic Organizations

    The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) has approved a joint
    Notice of Proposed Rulemaking (NPR) for certain organizations to file and report resolution plans and credit exposure reports as required in Title I, Section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

    Back to top

    Lower Deposit-Insurance Assessments Now In Effect

    Lower deposit-insurance assessment premiums are now in effect for the nation’s community banks. Earlier this year, the
    FDIC board of directors finalized a CBAI and ICBA-advocated plan to impose parity in the deposit-insurance system by basing the assessment base on average total consolidated assets minus average tangible equity instead of domestic deposits. CBAI, the only Illinois banking trade association to support the new deposit-insurance system, has long advocated for the change, which was enacted in the Wall Street Reform Act. The new system will lower assessments for 98 percent of institutions with less than $10 billion in assets, saving community banks roughly $4.5 billion over the next three years and allowing them to reinvest those savings in their communities. Community bankers can quantify their savings with the FDIC’s assessment rate calculator.

    Back to top

    Overcoming “Spreadsheet Inertia”: Steering Away from Excel-Based Risk Management Practices

    As bank examiners and officers become increasingly conscious of the limitations of an Excel-based approach to underwriting and risk management, the demand for alternative solutions will continue to rise. Undoubtedly, other software applications will soon enable bankers to overcome “spreadsheet inertia” and prudently change their direction. CBSC preferred services provider Sageworks offers additional information.
    Read More.

    Back to top

    50 Years in Banking is an Accomplishment — Shouldn’t It Be Recognized?

    Has someone in your bank or a bank director achieved 50 years in banking? You may be surprised to learn that many community bankers achieve that milestone every year!

    If your bank has a director or employee whose professional ties to banking span 50 years, he or she is eligible for recognition with a handsome recognition award from CBAI. (If the 50-year anniversary has already passed, an award may be purchased from the association for $200.) In addition to the award, individuals celebrating a 50-year anniversary receive coverage in CBAI’s bi-monthly magazine Banknotes, the Illinois Financial Directory & Fact Book, and during the CBAI Annual Convention.

    Contact the CBAI Department of Communications at 800/736-2224 or
    cbaicom@cbai.com for more information.

    Back to top

    Interest Rate Risk and Investment Management Set for April 11 & 12

    CBAI is pleased to offer
    “Interest Rate Risk & Investment Management” in two locations next week. 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. Leading this seminar are Jeffrey Caughron and Ryan Hayhurst, both of THE BAKER GROUP, Oklahoma City, OK, a CBSC-preferred service provider of investment/asset/liability management.

    Back to top

    Loan Documentation for Support Staff Offered Next Week

    Loan documentation is a critical component to 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. 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 25 years’ experience in the banking field.

    Back to top

    What You Need To Know about the UCC Set for April 13

    This course covers the impact of the Uniform Commercial Code on secured transactions and focuses on the most relevant factors bankers and administrators need to know to stay in compliance with this very important code. The course focuses less on theory and more on the practical application of the rules under the UCC. The areas to be highlighted include collateral covered by the UCC; revised definitions of existing collateral covered; completing the financing statements properly; utilizing the proper collateral descriptions on security agreements and financing statements; filing the financing statements in the proper location; and other areas of concern. Leading this seminar is Jeffery Johnson, president and founder of Bankers Insight Group, Atlanta, GA.

    Back to top

    Seven Proven Strategies to Come Out Ahead During a Recession
    By Roxanne Emmerich

    Charlie Brown said it best—"Good Grief!" What an economy! Many of the brightest futurists are saying this is not one of those "cycles" we’ve been through a hundred times in the market but a longstanding shift. What will you do if they are right? In this article, Roxanne Emmerich, founder of The Emmerich Group, discusses what banks can do now to not only survive but prosper during this challenging time. Emmerich will be the keynote speaker at CBAI’s fifth annual Community Bank Marketing Conference May 12 in Springfield.
    Read Article.

    Back to top

    Register Today for Early-Bird Pricing for CBAI’s Annual Convention

    Take advantage of our lowest pricing by registering for CBAI’s 37th Annual Convention & Expo by April 30, 2011. Scheduled for September 22-24, 2011, this year’s convention will be held at the Hyatt Regency and Frontier Airlines Center in Milwaukee, WI. “Community Banking: Fueled by Loyalty” is highlighted by 24 educational break-out sessions featuring hot topics and expert speakers, a 98-booth exhibit hall, outstanding entertainment, and countless networking opportunities. You also won’t want to miss general sessions with National Speaker Association Hall of Fame inductee Mark Sharenbroich and Certified Speaking Professional Frank Bucaro.
    Don’t wait, register today!

    Back to top

    CBAI
    PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 5/15/2011


    TELEPHONE/WEBCASTS THROUGH 5/31/2011


    CBAI EVENTS


    CBAI's 27th Annual Capital Conference - April 13 - State House Inn in downtown Springfield. Register Today!

    Marketing Conference - May 12 - Crowne Plaza, Springfield

    CBAI's 29th Annual Washington Visitation -- May 1 - 4, Grand Hyatt, Washington, D.C. Register Now!

    Community Bankers School – July 10-15, Illinois Wesleyan University, Bloomington (details available soon)


    Finer Points Blog


    CBAI
    RECOMMENDED SERVICES



    CBAI
    INSURANCES



    CBAI
    FOUNDATION



    CBAI
    PUBLICATIONS







    800.736.2224 (IL) | 217.529.2265 | www.cbai.com

    DISCLAIMER:The association is not responsible for and has no control over the subject matter, content, information, or graphics when viewing links attached to this association's site. If you do not wish to receive e-mails from Community Bankers Association of Illinois (CBAI), 901 Community Drive, Springfield, IL 62703, through CBAI in the future, please click here. - OR - If you would like to be removed from the CBAI e-mail database, please click here.

    © 2011 Community Bankers Association of Illinois. All Rights Reserved.