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 18, 2012 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois

  • Community Bankers Experience Productive 28th Capital Conference
  • Bankruptcy Court Rulings Pose Serious Threats To Secured Lenders
  • ABA Opposes Downsizing of Mega Banks; ICBA Counters
  • New FDIC Board Members Sworn In
  • Curry Sworn in As Comptroller of the Currency
  • Economic Update for Chicago and St. Louis Fed Districts
  • Baker Group: Investment Strategies for Second Quarter 2012
  • Baker Market Update
  • OCC Issues Examination Guidelines for S.A.F.E. Act Compliance
  • Your Workers Comp Premiums May Be Increasing
  • OCC Bulletin Addresses Inquiries on TDR Evaluations
  • Call Report Analysis Easy and Affordable: 30-Day FREE Access Plus Consulting Services
  • State Treasurer Hosting Conference on Unclaimed Property
  • Deadline for Completing CBAI Compensation Survey Nears
  • Bank-to-Business Electronic Newsletter Available to CBAI Members
  • Countdown Is On: Help People Switch to Electronic Federal Benefit Payments
  • School “Career Days” Coming Up?
  • Advanced Operations Conference Scheduled for April 25
  • Consumer and Commercial Loan Documentation Scheduled for April 23-26
  • Calculating and Maintaining the Allowance for Loan and Lease Losses Scheduled for April 27
  • It's Time to Register for CBAI’s 2012 Group Meetings!
  • Register Now To Receive Early-Bird Pricing for CBAI’s 38th Annual Convention!


  • Community Bankers Experience Productive 28th Capital Conference

    On Tuesday, April 17, 2012, community bankers from around the state gathered in Springfield to meet with state legislators and regulators on key community banking issues. The event kicked–off with lunch and a keynote address from Division of Banking Director Manny Flores. In his remarks, Director Flores highlighted his good working relationship with CBAI and his commitment to visiting community banks throughout Illinois to hear first-hand the challenges community bankers are facing today. He stated that the Capital Conference attendees are not just leaders of an association but leaders of the state and business community. He emphasized that the community banking system must continue to thrive in Illinois for the economy to recover. Director Flores’s honest and common sense approach to regulation was well received by the attendees.

    After lunch and a legislative briefing by Kraig Lounsberry, CBAI Senior Vice President of Governmental Relations, bankers went to the Capitol to meet with their respective state senators and representatives. Bankers urged legislators to oppose SB 16, harmful vacant and abandoned property legislation being pushed by the City of Chicago, and HB 3636 which seeks to make harmful changes to the mechanics liens law. Community bankers also urged legislators to support SB 3171 which will allow community banks without trust powers to again hold and service pre-need funeral accounts, and SB 2534 which will create an expedited foreclosure process for vacant and abandoned residential property.

    While at the Capitol, the delegation also met with legislative leaders who discussed the dire budgetary situation and the need for pension and Medicaid reform.

    The busy day concluded with the annual legislative reception for lawmakers, regulators, staff members, and community bankers. The well-attended reception at the top of the Springfield Hilton enabled CBAI members to engage legislators, IDFPR regulators, and constitutional officers in a relaxed atmosphere over drinks, heavy hors d oeuvres and a great view of the Capital City.

    CBAI thanks all community bankers who attended the 28th Annual Capital Conference and engaged in grassroots lobbying in Springfield.

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    Bankruptcy Court Rulings Pose Serious Threats To Secured Lenders

    CBAI continues to monitor the status of two troubling federal bankruptcy court decisions and to consult with community banks and attorneys involved in those cases regarding the progress of the litigation and any appeals. Both decisions were issued in the U.S. Bankruptcy Court for the Central District of Illinois, but if not overturned CBAI is concerned that the tactics and consequences of those cases could spread to other jurisdictions throughout Illinois. For more information,
    click here.

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    ABA Opposes Downsizing of Mega Banks; ICBA Counters

    In response to the
    Dallas Fed’s recent recommendation that the nation’s mega banks be downsized to prevent another taxpayer-funded bailout, the ABA President has not surprisingly sided with Wall Street by expressing support for the retention of complex mega banks. See ABA’s Position.

    In a BankThink counterpoint article, ICBA’s Cam Fine aptly noted that the recent banking consolidation and government guarantees against mega bank failures haven’t contributed to an economic boom; instead they’ve triggered an economic collapse. He pointed out that downsizing the mega banks can’t be worse than another taxpayer bailout and the federal government, not the free market, picking winners and losers. See ICBA’s BankThink Opinion.

    CBAI has long urged Congress to restore key Glass-Steagall provisions that separate commercial and investment banking which would reduce risk in the commercial banking system. CBAI also advocates breaking up the mega banks into more manageable, easier to regulate institutions, which would reduce dangerous financial concentration and overt political influence that exists among the top 10 mega banks today.

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    New FDIC Board Members Sworn In

    On April 16 the FDIC Board filled two vacancies with Thomas Hoenig, former President of the Federal Reserve Bank of Kansas City, and Jeremiah Norton, former executive director of J.P. Morgan Securities. Hoenig is an outspoken advocate of community banking and proponent of breaking up the mega banks to end too-big-to-fail taxpayer bailouts. CBAI welcomes Hoenig’s membership on the FDIC Board.
    See FDIC Release.

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    Curry Sworn in As Comptroller of the Currency

    On April 16, Thomas J. Curry was sworn in as the 30th Comptroller of the Currency. He will oversee the supervision of more than 2,000 national banks and federal savings associations and 50 federal branches and agencies of foreign banks in the United States.

    "I want to express my sincere appreciation to President Obama, Secretary Geithner, and the United States Senate for their confidence in my abilities to serve as Comptroller of the Currency," said Curry. "The OCC’s distinguished history and the professionalism and dedication of its men and women make the OCC a special place. Its mission of ensuring the safety and soundness of America’s national banks and federal savings associations has never been more important or more challenging.”

    The Senate confirmed Curry as Comptroller in March, nearly nine months after President Obama nominated him to replace former Comptroller John Dugan, whose term expired August 2010. Previously, Curry served as a director of the Federal Deposit Insurance Corporation (FDIC), a role he held since January 2004. He also served five Massachusetts Governors as Banking Commissioner from 1990 to 1991 and from 1995 to 2003. In 2000, Curry served as the chairman of the Conference of State Bank Supervisors (CSBS), and served two terms on the State Liaison Committee of the Federal Financial Institutions Examination Council, including a term as Committee chairman.
    See OCC Release.

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    Economic Update for Chicago and St. Louis Fed Districts

    According to the latest Federal Reserve Beige Book, economic activity in the Chicago Fed District (which encompasses the northern half of Illinois, all of Iowa, and parts of Michigan, Indiana, and Wisconsin) continued to expand at a moderate pace in late February and March. In addition, credit conditions were slightly improved, and construction activity also increased.
    See Chicago Fed Update.

    Meanwhile, economic activity in the St. Louis Fed District (which includes the southern half of Illinois, all of Arkansas, and parts of Indiana, Kentucky, Tennessee, and Mississippi) also continued to grow at a modest pace with some improvement in residential and commercial real estate conditions. For banks, total loans outstanding were essentially unchanged while deposits increased about 2 percent. See St. Louis Fed Update.

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    Baker Group: Investment Strategies for Second Quarter 2012

    Please join THE BAKER GROUP quarterly Investment Strategies for Second Quarter 2012 conference call, Thursday, April 19, 2012 at 11:00 a.m. CDT. For more information and to register,
    click here.

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    Baker Market Update

    Following last Friday’s rotten egg jobs report, US Treasuries continued to rally as the 10Yr T-Note yield has lowered 18bps since last Thursday’s close.
    Read More.

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    OCC Issues Examination Guidelines for S.A.F.E. Act Compliance

    The OCC recently published federal interagency examination guidelines addressing compliance with the S.A.F.E. Act’s registration requirements for mortgages.
    More Information.

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    Your Workers Comp Premiums May Be Increasing

    The National Council on Compensation Insurance (NCCI) has filed a “split point” change in its workers compensation experience rating plan with state insurance departments that could have a significant impact on your business. This rating change could increase or decrease your experience rating mod as it is implemented over the next three years. To access the remainder of this article by John Immordino of Community BancInsurance Services,
    See Workers Comp Premiums.

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    OCC Bulletin Addresses Inquiries on TDR Evaluations

    The Office of the Comptroller of the Currency issued a bulletin to address inquiries on accounting and reporting requirements for troubled debt restructurings, especially those related to loan renewals and extensions of substandard commercial loans. The bulletin focuses on factors to consider when evaluating loans for TDR designation and considerations for appropriate accrual status and impairment analyses. The bulletin states that all substandard loans on accrual status that are renewed, extended or otherwise modified are not automatically considered to be TDRs. It also notes that renewals, extensions or modifications deemed to be TDRs must be evaluated for the appropriate impairment measurement under ASC Subtopic 310–10 to ensure that the allowance for loan and lease losses and accrual status are appropriate and consistent with call report instructions.
    Read the Bulletin.

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    Call Report Analysis Easy and Affordable: 30-Day FREE Access Plus Consulting Services

    Bank Trends, CBSC’s newest partner, makes the tedious task of analyzing your bank’s Call Report data simple by turning your bank’s quarterly financials into interactive, easy-to-use dashboards that drill-down to all of your bank. To help introduce this new service, Bank Trends will provide CBAI members with FREE access to its two most popular reports and provide a live, personalized analysis of your bank’s performance against a peer group of your choice.

    Click here for more information and to view sample reports.

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    State Treasurer Hosting Conference on Unclaimed Property

    Your institution probably holds unclaimed property, but do you know what to do with it? Illinois State Treasurer Dan Rutherford’s office will be holding Unclaimed Property Holder Conferences in the coming months at no cost to you. These are meant to educate, inform, and answer any questions by holders of property owed to other businesses or individuals.
    Read More.

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    Deadline for Completing CBAI Compensation Survey Nears

    You have until April 30 to complete your bank’s Officer Compensation Survey. CBAI members receive the results for free when they participate. You’ll receive information on salaries, perqs, directors’ fees, time off, and support personnel pay – but only if you participate!
    Access Survey Now!

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    Bank-to-Business Electronic Newsletter Available to CBAI Members

    A bank-to-business electronic newsletter is now available for distribution by your marketing department to all of your small-business clients and prospects. It is produced by Millennium III, creators of the A Real Community Bank® marketing program. There is no fee for the first two editions of this newsletter. It is hoped that you will wish to send it to your business customers and to all business prospects in your marketing area. It is a very cost-effective way to connect with small-business owners in your community. The April 2012 issue of Your Business, a bank-to-business electronic newsletter, is
    attached for distribution by your marketing department to all of your small-business clients and prospects. Please visit www.synpubinc.com to learn more.

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    Countdown Is On: Help People Switch to Electronic Federal Benefit Payments

    Everyone who receives SOCIAL SECURITY/SUPPLEMENTAL SECURITY INCOME or other federal benefit payments by paper check is required by the U.S. Department of the Treasury to switch to an electronic payment option by March 1, 2013. This move will save taxpayers an estimated $1 billion over 10 years, while ensuring all federal benefit recipients receive their money in the safest, most reliable way possible.

    To read more about what the government is providing to help with the transition,
    See Countdown Internal Newsletter.

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    School “Career Days” Coming Up?

    CBAI has purchased Career Day Power Point presentations suitable for three grade levels: fifth grade, eighth grade, and high school. They are customizable for your bank and are $50 each, or $100 for all three. If interested, simply contact the CBAI Department of Communications at 800/736-2224 or
    bobbiw@cbai.com.

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    Advanced Operations Conference Scheduled for April 25

    The
    Advanced Operations Conference is being presented by CBAI at the Crowne Plaza in Springfield on April 25. This conference is designed for operations and technology officers, CEOs, and anyone involved in the operations of your community bank. Participants benefit from expert speakers, pertinent and informative topics, and peer networking. Additionally, a mini-exposition featuring the latest products and services benefiting the community bank and its marketing efforts also highlight the day. This year’s conference features top-notched speakers such as Jerry Cavanaugh, general counsel for CBAI, who will give a “Legal Update;” John Mills, supervising consultant with BKD, LLP will present “2012 ACH Rules Changes;” Susan Orr, president/owner of Susan Orr Consulting will speak on “Mobile Financial Services;” Sue Kappel, manager at Wipfli, LLP, will present “Bank-Performance Analysis;” Joe Oleksak, manager with Plante & Moran discusses “Hot Topics in Technology Compliance;” and Jim Ghiglieri Jr, SVP of corporate communications for SHAZAM®, will present “Surviving & Thriving in a Post-Durbin World: The Future of Your Debit-Card Profitability.”

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    Consumer and Commercial Loan Documentation Set for April 23-26

    Consumer Loan Documentation” and “Commercial Loan Documentation” will be held in two locations this April. Loan Documentation is a critical component in lending. The purpose of these one-day workshops is to provide participants with a good understanding of the consumer and commercial loan documentation processes. 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 these seminars is Jeffery Johnson, president of Bankers Insight Group, Atlanta, Georgia, who has more than 25 years’ experience in banking.

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    Calculating and Maintaining the Allowance for Loan and Lease Losses Scheduled for April 27

    Calculating and Maintaining the Allowance for Loan and Lease Losses will be held in Lisle on April 27. The Allowance for Loan and Lease Losses (ALLL) represents one of the most significant estimates in an institution's financial statements and regulatory reports. This program reviews the elements and thought process in establishing and maintaining an adequate ALLL level under the new guidance. Regulators are just as interested in your bank’s methodology in calculating the ALLL in addition to the adequacy. The Allowance is watched not only by the major agencies responsible for supervision of the banking system, but also by the American Institute of Certified Public Accountants, the Internal Revenue Service, and the Securities & Exchange Commission. All have similar, but yet, conflicting perspectives on how much of an allocation should be contained in ALLL. After this course, the participant has an enhanced understanding of the importance of creating and maintaining an adequate Allowance that is legally defensible and insures the bank is operating in a safe and sound environment. Leading this seminar is Jeffery Johnson, president and founder of Bankers Insight Group, Atlanta, GA.

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    It's Time to Register for CBAI’s 2012 Group Meetings!

    CBAI leaders and executive staff are visiting 11 locations on the 2012 Group Meeting tour this spring. 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. 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. Then Jim Hillestad or John Immordino of Community BancInsurance Services powered by Nicoud presents, “What You Don’t Know About Your Community Bank’s Insurance Coverage Can Hurt You.” Group Meetings begin on April 30, 2012, so please
    register today! For information regarding the Group Meeting in your area and to register, please click here.

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    Register Now To Receive Early-Bird Pricing for CBAI’s 38th Annual Convention!

    Early-bird registration is open for CBAI’s 38th Annual Convention & Expo. Scheduled for September 20-22, “Building for Tomorrow” will be held at the Hyatt Regency at The Arch in St. Louis, MO. The convention features expert general session speakers, 24-break out sessions on the hottest issues in community banking, exciting social activities, a 96-booth exhibit hall with the latest in products and services, and countless networking opportunities. Don’t hesitate! The early-bird deadline is April 30, so
    register today!

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