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                   April 17, 2013 Graphic
Graphic
Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • Community Bankers Attending 29th Annual Capital Conference Today
  • CBAI 2013 Officer Compensation Survey Deadline Extended to April 30
  • Cam Fine Cites Good News on TBTF and Basel III
  • Lawmakers Growing Skeptical of Basel III
  • Legislation Introduced to Break Up Mega Banks
  • Commentary: “A Community Bank Is Not A Little Big Bank”
  • Mega Banks Shifting Risk to Murky Corners
  • Wait on TBTF Reform? That's Tempting Fate
  • CBAI Attends OCC Central District Meeting
  • ICBA Testifies in Support of Regulatory Relief
  • Federal Home Loan Bank of Chicago Sponsors CBAI Scholarship
  • ICBA President Cam Fine to Speak at CBAI Convention
  • Special Deal for CBAI Members – 30 Days of Bank Trends!
  • Register Today: Diebold Branch-Transformation Seminar St. Louis
  • FREE Webinar: All About Global Cash Flow Analysis
  • CBAI Leadership Meets with Congressman Randy Hultgren (R-14th)
  • Deduction Allowed for Certain Prepaid Expenses
  • How Is Your Bank Special? BKD Award Nominations Being Taken
  • The Banking Compliance Index: Measuring Regulatory Burden
  • KASASA Ad #3 "Win-Win"
  • Baker Market Update
  • St. Louis Fed Releases Study on Banks and Credit Unions
  • Analysis Identifies Best Metro Areas for Community Banking Services
  • S Corporation Modernization Act of 2013 Introduced
  • CBAI Community Bank Marketing Conference Scheduled for May 2
  • Home Mortgage Disclosure Act Seminar Scheduled for May 6 & 9
  • PART TWO: Lending Update – The New Rules and Their Impact on You! Scheduled for May 7, 8, & 15


  • Community Bankers Attending 29th Annual Capital Conference Today

    Community bankers from around the state traveled to Springfield today to participate in the 29th annual Capital Conference. State Treasurer Dan Rutherford keynoted the luncheon, and then the bankers headed to the Capitol for hands on lobbying with members of the General Assembly. In addition to individual meetings with legislators, attendees were able to watch the legislative session, and attend committee hearings and group meetings with legislative leaders. The day concludes at the State House Inn with attendees enjoying a casual evening with staff, legislators, regulators, and constitutional officers at the annual legislative reception.
    Click Here for a schedule of today’s events.

    Back to top

    CBAI 2013 Officer Compensation Survey Deadline Extended to April 30

    More than 100 community banks have completed the survey to date, but that’s not enough. We need your bank’s information as well. CBAI member banks that participate receive the results for FREE (a $300 savings!). Deadline extended to April 30..

    To complete the survey online,
    Click Here.

    To complete the survey as a worksheet, Click Here.

    Back to top

    Cam Fine Cites Good News on TBTF and Basel III

    In his bog this week, ICBA’s Cam Fine addresses the encouraging news as reflected in a letter from a group of bipartisan U.S. Senators who called on regulators to address the too-big-to-fail problem by advancing the Basel III capital guidelines only on the mega banks. They emphasized that a stricter capital regime is unnecessary for community banks.
    See Cam Fine’s Blog.

    ICBA Launches “Stop Too-Big-To-Fail” Website

    Recognizing that the specter of too-big-to-fail mega banks must be resolved, ICBA has established a new website calling on policymakers to end the TBTF problem and, in turn, reduce systemic risk, improve competition, and increase the availability of consumer credit. CBAI applauds ICBA for its significant efforts to lead the charge to resolve this intolerable double standard. Visit “End TBTF” Website.

    Back to top

    Lawmakers Growing Skeptical of Basel III

    Yesterday Senator Richard Shelby (R-Ala.) introduced legislation that calls on regulators to study the impact of the Basel III capital rules before implementing a final rule. Jeb Hensarling (R-Tx.), Chairman of the House Financial Services Committee, yesterday expressed skepticism about Basel III, noting that community banks don’t need onerous and complex capital standards.
    See AB Article.

    Back to top

    Legislation Introduced to Break Up Mega Banks

    Last week legislation to break up the TBTF mega banks was introduced in the U.S. House and Senate which requires the Treasury to 1) identify all banks, hedge funds, investment banks, and insurance companies that are too big to fail, and 2) break up those entities so that their failure would no longer cause a catastrophic effect on the American or global economy without a taxpayer bailout.
    See News Release.

    Back to top

    Commentary: “A Community Bank Is Not A Little Big Bank”

    In a Forbes article last week, Jim Blasingame, a respected expert on small business stated, “Wall Street’s too-big-to-fail banks were the parents of the 2008 financial crisis. But one-size-fits-all reform reaction to the crisis by Congress and regulators is turning Main Street banks into collateral damage, as if they were too-small-to-matter.”

    Blasingame noted that regulating community banks the same as the mega banks puts in jeopardy America’s small businesses and the economy. CBAI fully agrees and supports tiered regulations for community banks and downsizing the TBTF banks.
    See Forbes Article.

    Back to top

    Mega Banks Shifting Risk to Murky Corners

    Mega banks are using trading sleights of hand to reduce pressure on their capital requirements. The maneuvers include capital relief trades or regulatory capital trades whereby portions of risk, usually loans, are acquired by hedge funds and other less regulated corners of Wall Street. Some regulators are concerned that some transactions may not actually be taking risk off balance sheets when banks lend money to clients to invest in the trades.

    Most of the trades are structured as credit default swaps, a derivative that resembles insurance. Anat Admati, professor of finance at Stanford University, said, “These trades allow the banks to go to regulators and say the risk is gone. But it’s not gone at all; it’s just been pushed into a murky corner of the market.”
    See DealBook Article.

    Back to top

    Wait on TBTF Reform? That's Tempting Fate

    While tough questions about too-big-to-fail demand answers, the nation cannot afford to once again take a wait-and-see approach to the problem, ICBA President and CEO Cam Fine wrote in an
    American Banker op-ed. Fine wrote that the United States has been down this road before with the passage of the FDIC Improvement Act of 1991, which did not resolve the too-big-to-fail threat despite its advocates’ claims.

    Back to top

    CBAI Attends OCC Central District Meeting

    CBAI’s David Schroeder, Vice President Federal Governmental Relations, participated in an Office of Comptroller of the Currency’s (OCC) Central District Office - Trade Association Executives Meeting. This day-long meeting was the second in a series where the OCC Central District banking trade association executives had the opportunity to discuss a variety of banking industry issues and concerns.
    Read More.

    Back to top

    ICBA Testifies in Support of Regulatory Relief

    Yesterday, April 16, ICBA Chairman Bill Loving testified before the House Financial Services Subcommittee in support of ICBA’s Plan for Prosperity, a comprehensive platform of legislative recommendations that will provide meaningful relief for community banks.

    CBAI is in full support of the Plan for Prosperity and will carry that message to Washington next week via a delegation of more than 30 Illinois community bankers participating in CBAI’s 31st Annual Call on Washington.
    See ICBA Release.

    Back to top

    Federal Home Loan Bank of Chicago Sponsors CBAI Scholarship

    The Federal Home Loan Bank of Chicago (FHLBC) has made a generous donation to the CBAI Foundation for Community Banking, becoming a sponsor of the new two-year scholarship to the
    Community Bankers School, which is to be awarded annually. FHLBC joins THE BAKER GROUP in making this scholarship possible. See Release.

    Back to top

    ICBA President Cam Fine to Speak at CBAI Convention

    Highlighting the Friday Business Meeting Luncheon at CBAI’s convention is an address by
    Camden R. Fine, president and CEO of the Independent Community Bankers of America ® (ICBA). A native Missourian and career community banker, Fine became president and CEO of ICBA in March 2004. Prior to ICBA, Fine chartered and organized Midwest Independent Bank of Jefferson City, MO, serving as its president and CEO for nearly 20 years. Fine has been a passionate advocate for community bank issues for more than 20 years and has been featured and had opinion pieces published in The Wall Street Journal, The Washington Post, The New York Times, USA Today and The Hill newspapers. He has been recognized by The Hill newspaper and CEO Update as one of Washington, D.C.'s most effective and influential trade association CEOs and lobbyists for five consecutive years. Don’t miss CBAI’s 39th Annual Convention & Expo, “Community Bankers: Illinois’ Treasure,” scheduled for September 26-28, 2013, at the Crowne Plaza in Springfield. Early-bird registration is going on now! For more information and to register, Click Here.

    Back to top

    Special Deal for CBAI Members – 30 Days of Bank Trends!

    During this busy time of year we want to give the one thing you wish you had more of... TIME.

    Bank Trends, CBSC’s preferred provider for online peer group analysis and benchmarking services, will save you time and expand your opportunities for profitable growth this year. Beginning May 2, 2013, CBAI members may access Bank Trends peer reports and profitability analysis for 30 days FREE of Charge! This special offer coincides with the May 2, 2013 release of FDIC’s Q1 - 2013 Call Report data, which is the most current information available.
    See More.

    Back to top

    Register Today: Diebold Branch-Transformation Seminar St. Louis

    Thursday May 2nd , The Hilton St. Louis Frontenac, 9:00 AM – 2:00 PM

    This free seminar highlights four key areas:

      1. Key Trends Driving Branch Transformation
      2. What Consumers Are Really Saying
      3. How Financial Institutions Are Responding
      4. Discover Emerging Branch Solutions

    Diebold’s branch-transformation advisors use inside knowledge on today’s technologies and solutions to offer broad insight into how financial institutions are improving both the consumer experience and branch efficiency. Diebold’s subject-matter experts will share ideas to help your bank develop the optimal multichannel approach for engaging with your customers now and well into the future.
    Click here to register and to find out additional information.

    Back to top

    FREE Webinar: All About Global Cash Flow Analysis

    CBSC preferred partner Sageworks is offering a free webinar entitled “All About Global Cash Flow Analysis”. The global cash flow analysis of complex borrower scenarios introduces fresh challenges for corporations and financial institutions. For successful analysis and better credit decisions, it is critical that standards across the credit and lending departments are put in place for when to conduct a global cash flow analysis, what information to collect from borrowers, and how to analyze the information.

    Join Sageworks’ director of advisory services, Chuck Nwokocha, for an overview of the best practices for conducting a global cash flow analysis, adjusting for double counting, and how spreadsheet-based programs can lead to inconsistencies. The webinar will be conducted on Wednesday, May 8, 2013, from 1:00 – 2:00 pm CDT.
    Reserve your webinar seat now.

    Back to top

    CBAI Leadership Meets with Congressman Randy Hultgren (R-14th)

    CBAI Chairman Rick Jameson (Morton Community Bank), and Group Director Diana Torman (Prairie Community Bank, Marengo), joined with other bank and thrift members at a meeting hosted by the Federal Home Loan Bank of Chicago to introduce Congressman Hultgren (R-IL-14) to the FHLB and discuss community bank issues.
    Read More.

    Back to top

    Deduction Allowed for Certain Prepaid Expenses

    The IRS recently issued an advisory addressing the prepaid FDIC assessments mandated by the FDIC in late 2009 and advised on the extent to which taxpayers are required to capitalize amounts paid to acquire, create, or enhance intangible assets.

    The FDIC assessments in 2009 required insured institutions to prepay their 2010, 2011 and 2012 quarterly assessments in December 2009. The IRS concluded this prepayment was not deductible for income tax purposes because it failed the 12-month rule. However, there are certain prepaid expenses that may be deductible to most institutions.
    See Plante Moran Article.

    Back to top

    How Is Your Bank Special? BKD Award Nominations Being Taken

    Nominations are being taken for The BKD Award, sponsored by CBAI and the accounting firm BKD LLP. The purpose of the award is to bring recognition to banks with outstanding, innovative products/services or programs. Nominations are due at CBAI headquarters no later than June 3, 2013.

    Last year, the winner was Peoples’ Bank of Kankakee County, Bourbonnais. This year, your bank could be the winner!

      Click Here to learn more about the BKD Award.
      Click Here to download the BKD Award Nomination Form.
    If you have any questions, please contact the CBAI Department of Communications at 800/736-2224 or e-mail the CBAI Department of Communications at cbaicom@cbai.com.

    Back to top

    The Banking Compliance Index: Measuring Regulatory Burden

    As the regulatory burden on community banks has increased, measuring that burden has become a challenge for both banks and the agencies that govern them. According to the
    FDIC Community Banking Study conducted in late 2012, it was determined that the profession has no way to measure the cost of regulatory changes on financial institutions.

    To put an end to this guesswork, Continuity Control has launched the Banking Compliance Index (BCI). The BCI, released on a quarterly basis, measures the additional hours expended by the typical community financial institution to effectively process the quarter’s regulatory changes. These additional hours are represented as the necessary number of full-time employees (FTE) dedicated to managing this workload in order to keep the institution compliant. For Q1 2013, that number is 2.35.

    The BCI employs a data-driven approach for unique insights into the depth and breadth of regulatory compliance workload impact. It tracks:

  • Regulatory Changes: A total count of applicable financial regulatory changes throughout the quarter.
  • Page Volume: The number of pages associated with each of the regulatory changes—indicative of the complexity and workload involved with reviewing and interpreting each change.
  • Regulatory Workload: An assessment of the workload each regulatory change represents on the required roles and processes that require alterations as well as the complexity of them. Regulatory Workload is measured by the ‘work shovel’ on a scale of 1-10 (1 being the lowest workload, 10 the highest).
  • Enforcement Action Information (EA): Analysis of the public enforcement actions that have been issued during a quarter.
  • To view the BCI for Q1 2013, Click Here. Continuity Control is a CBAI Preferred Marketing Partner.

    Back to top

    KASASA Ad #3 "Win-Win"

    Free checking and savings accounts that are not only free, but go so far as to give you cash each month – sounds too good to be true, doesn't it? Kasasa’s “Win-Win” TV ad illustrates how Kasasa is more than a bank account. It’s a mutually beneficial relationship between community banks and account holders that says, “If you help us, we’ll help you.” The goal of this spot is to give potential customers a reason to actually believe what any bank has to say – too often scorned by broken megabank promises.

    Meet easy qualifications that save your community bank money and see more cash come full circle each month. It’s that simple. All while account holders can feel better about banking at a place that truly cares about them and their local community.
    See Ad.

    Want Kasasa to take your community bank to the next level? Contact Steve Prost via email at steve.prost@bancvue .com, or phone at 847.341.8003. Kasasa is on the of the many fine products of BancVue, a CBSC Preferred Marketing Partner.

    Back to top

    Baker Market Update

    When T.S. Eliot poetically described April as “the cruelest month”, it has always been believed that he was referring to the weather and how it can, as it did this week, snow on some of us living south of the Mason-Dixon line.
    Read More.

    Back to top

    St. Louis Fed Releases Study on Banks and Credit Unions

    This month the Federal Reserve Bank of St. Louis released a study titled “Banks and Credit Unions: Competition Not Going Away” which provides an historical review of the growth and evolution of the two competing types of financial institutions. The study concluded that since 1998 both groups have experienced similar trend growth, and the only safe prediction is that, over time, community banks and credit unions will continue to grow more similar.

    CBAI has long advocated that credit unions pay income taxes like commercial banks and opposes any further powers for credit unions.
    See St. Louis Fed Study.

    Back to top

    Analysis Identifies Best Metro Areas for Community Banking Services

    NerdWallet.com, the personal finance and credit card comparison website launched in 2010, conducted an analysis to determine which metro areas are best for community banking. Nine of the top 10 best areas are located in the Midwestern sector of the nation from Minnesota to Louisiana. Springfield, Illinois is cited as 7th best metro area for community banking services in the U.S.
    See NerdWallet Article.

    Back to top

    S Corporation Modernization Act of 2013 Introduced

    Legislation supported by ICBA, CBAI, and other business groups has been introduced in the U.S. House (H.R. 892) to increase S corporation access to capital by reducing ownership restrictions, easing restrictions that apply to converted S corporations, encouraging philanthropy by these businesses, and allowing IRAs to invest in S corporations.
    Read Joint Letter to Congress.

    Back to top

    CBAI Community Bank Marketing Conference Scheduled for May 2

    Designed by a committee of community-bank marketing professionals, the seventh annual
    Community Bank Marketing Conference features expert speakers, pertinent and informative topics, and peer networking. The keynote speaker is Tim Pannell, president and CEO of Financial Marketing Solutions (FMS), a nationally acclaimed advertising firm catering exclusively to financial institutions. Pannell opens the conference with “Creating a Clear Competitive Advantage Through Brand Communication.” Other hot topics on the agenda include “Building a Profitable Retail Marketing Strategy” with Jay Coakley, president of Coakley Strategic Solutions, Jefferson City, MO; “Loan Growth Through Effective Marketing” with Sean Cunningham, regional manager with Marquis Software Solutions, Minonk, IL; “Understanding EMV: Essential Information” with Kevin Christensen, vice president of audit at SHAZAM®, St. Peters, MO; and “The SoMoLo (Social/Mobile/Local) Movement” with Amber Farley, director of interactive services and media at Financial Marketing Solutions, Franklin, TN. A mini-exposition featuring the latest products and services benefitting the community bank and its marketing efforts also highlights the day.

    Back to top

    Home Mortgage Disclosure Act Seminar Scheduled for May 6 & 9

    While the Home Mortgage Disclosure Act (HMD) has existed for many years, recent regulatory activity has highlighted the potential for errors. With the probability of approximately 15 new fields for implementation in 2014, bankers must comprehend HMDA’s existing purpose, requirements, and expectations. This
    seminar includes a thorough review of the HMDA regulation. Additionally, changes in HMDA as expressed in the Dodd-Frank Act will be addressed. Should any of these requirements be released in a regulatory format, an in-depth analysis of this information will be provided. The seminar, at a minimum, allows you the opportunity to review your existing program to assure that it is “under control”, so when the time comes to deal with the new fields, you will find your bank ready to face the challenge. Leading this seminar is Bill Elliott, CRCM, senior consultant and manager of compliance at Young & Associates, Inc., Kent, OH.

    Back to top

    PART TWO: Lending Update – The New Rules and Their Impact on You! Scheduled for May 7, 8, & 15

    The next quarter of the
    CBC program continues the process of discussing the new regulations. In the previous quarter, the subjects that had the most immediate timetable (Escrow for HPMLs) and the regulation that will be the most invasive (Ability to Repay) were covered. But that is not the end of the story – there are more new changes which need preparation. This quarter’s presentation continues with mostly all lending-related regulations, and all new material. The new and updated regulations include requirements for escrow accounts (Regulation Z); TILA Ability to Repay (Regulation Z); high-cost mortgage and homeownership counseling amendments to the Truth in Lending Act (Regulation Z) and homeownership counseling amendments to the Real Estate Settlement Procedures Act (Regulation X); loan originator compensation requirements (Regulation Z); appraisals for higher-priced mortgage loans; disclosure and delivery requirements for copies of appraisals (Regulation B); and mortgage servicing rules under RESPA (Regulation X). Leading this seminar is Bill Elliott, CRCM, senior consultant and manager of compliance at Young & Associates, Inc., Kent, OH.

    Back to top

    CBAI


    PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 05/30/2013


    TELEPHONE/WEBCASTS THROUGH 05/30/2013




    CBAI's 2013 COMPENSATION SURVEY
    AVAILABLE ONLINE!
    TO START THE SURVEY
    CLICK HERE NOW!
    Deadline Extended to April 30



    CBAI Events

    Call on Washington April 23-26
    Washington, D.C.


    CBAI Marketing Conference
    May 2
    Crowne Plaza
    Springfield




    CBAI
    RECOMMENDED SERVICES



    CBAI
    INSURANCES



    CBAI
    FOUNDATION



    CBAI
    PUBLICATIONS


    Finer Points Blog

    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.

    © 2013 Community Bankers Association of Illinois. All Rights Reserved.