Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois Community Bankers Association of Illinois
     A Bi-Weekly News Bulletin for CBAI Members                     April 21, 2010 Graphic
Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois

  • Urge Senators Durbin and Burris to Support Community Banks in Financial Reform Debate
  • ICBA’s Cam Fine Calls for Meaningful Reforms on CNBC
  • CBAI’s Federal Policy Priorities for 2010 Now Online
  • Economist Urges Financial Reform and Downsizing Giant Banks
  • Wall Street Spending Millions to Halt Reforms
  • Updates on the Economy and Bank Performance
  • Baker Market Update
  • SBA Recovery Lending Extended Through May
  • Federal Regulators Release Model Consumer Privacy Notice
  • CBAI Spring Group Meetings Have Begun!
  • Planting Progress Soars in Illinois
  • Does Your Bank Qualify as a “Patron of Community Banking”?
  • Auditing Regulation Z Seminar Scheduled for April 27-28
  • Community Bank Marketing Conference Scheduled for May 13, 2010
  • Commercial Lending Institute Scheduled for May 11-13, 2010
  • IRA Seminar Tour Begins in May

  • Urge Senators Durbin and Burris to Support Community Banks in Financial Reform Debate

    Now is the time to make your voice heard on the financial reform debate in the U. S. Senate. Negotiations are continuing between democratic and republican leaders, and a vote could come as early as next Monday. CBAI encourages community bank officers, directors, employees, and citizens-at-large to send emails to Senators Richard Durbin and Roland Burris to seek their support for key community bank provisions such as permanently changing the FDIC assessment method and establishing a prefunded systemic-risk dissolution fund.
    Send Customizable Letter #1.

    You are also encouraged to send another letter to our Senators that expresses our support for the Volcker Rule, maintaining Federal Reserve supervisory authority over state member banks, and preserving the thrift charter. Send Customizable Letter #2.

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    ICBA’s Cam Fine Calls for Meaningful Reforms on CNBC

    ICBA President Cam Fine said on CNBC’s Kudlow Report that ICBA supports provisions in the Senate bill to end too-big-to-fail, but there are still concerns about proposed consumer-protection regulations. He noted that ICBA, unlike other financial groups, has remained at the negotiating table because the status quo is unacceptable.
    Watch CNBC Clip.

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    CBAI’s Federal Policy Priorities for 2010 Now Online

    Now available on CBAI’s website ( is a document titled “Community Bankers Association of Illinois Federal Policy Priorities for 2010” that enumerates CBAI's objectives for financial reform as well as several other issues. See CBAI’s Policy Priorities. See ICBA’s Platform for Financial Reform.

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    Economist Urges Financial Reform and Downsizing Giant Banks

    Simon Johnson, an MIT professor and former chief economist for the International Monetary Fund, appeared last week on the Bill Moyers Journal along with cohort James Kwak to advocate financial reforms, including downsizing the giant banks. CBAI concurs with their recommendations.
    See Moyers Video.

    Johnson also noted that the SEC’s accusations of fraud at powerful Goldman Sachs last week may produce the groundswell of public support necessary for comprehensive reform. See Full Article.

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    Wall Street Spending Millions to Halt Reforms

    The giant too-big-to-fail institutions that received a staggering $1.8 trillion in government bailouts, loan guarantees, and zero-interest loans to avert failure are now spending millions of dollars to defeat reform efforts to reign in Wall Street. These giant firms have hired scores of former congressmen and Congressional staff members to lead the fight.
    See NY Times Article.

    In addition, big banks that have opposed creation of a consumer financial protection agency are now indicating they will accept it because they have the legal resources to deal with it. See Politico Article.

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    Updates on the Economy and Bank Performance

    This month the Rural Mainstreet Economic Index declined for the second time in the past three months. Despite the pullback, the index is more than double the reading from a year ago.
    See Index Release.

    Meanwhile, the housing recession continues with high foreclosure rates caused by falling house prices and high unemployment. See Forbes Article.

    Regarding near-term prospects for community banks, Fed Governor Daniel Tarullo said recently that commercial real estate, liquidity, and capital will continue to plague bank operations. He urged bankers to avoid high concentrations of any single loan type, and he said capital planning will need to be bolstered. Read Tarullo Speech.

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    Baker Market Update

    Treasury prices wound up slightly higher this week as Fed Chairman Ben Bernanke stayed with his mantra of “extended period” when questioned by Congress’ Joint Economic Committee about how long interest rates might remain at current low levels.

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    SBA Recovery Lending Extended Through May

    Last week President Obama signed legislation to provide $80 million in additional funding to continue enhancements in two SBA loan programs. The SBA estimates that the funding will support about $2.8 billion in small business lending under the 7(a) and 504 programs.
    See SBA Release.

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    Federal Regulators Release Model Consumer Privacy Notice

    Eight federal regulators released an Online Form Builder that financial institutions can download and use to develop and print customized versions of a model consumer privacy notice. The
    Online Form Builder, based on the model form regulation published in the Federal Register on December 1, 2009, under the Gramm-Leach-Bliley Act, is available with several options. Easy-to-follow instructions for the form builder will guide an institution to select the version of the model form that fits its practices, such as whether the institution provides an opt-out for consumers. To obtain a legal “safe harbor” and so satisfy the law’s disclosure requirements, institutions must follow the instructions in the model form regulation when using the Online Form Builder.

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    CBAI Spring Group Meetings Have Begun!

    CBAI leaders and executive staff are visiting 11 locales on the
    2010 Group Meeting tour. The objective of Group Meetings is to learn more about the needs of CBAI members and share information on key community-banking issues and activities. Consisting of an optional golf outing and a dinner meeting, Group Meetings also provide an excellent opportunity to 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. As always, you can expect a candid assessment of current political campaigns and a perspective on those campaigns from the community-bank point of view. The after-dinner speaker is David Schroeder, CBAI vice president of federal governmental relations. During this informative presentation titled “CBAI Federal Grassroots Advocacy: Get Involved and Make a Difference,” Schroeder will review the top federal legislative and regulatory issues stemming from the financial crisis, the many community-banking successes in 2009, and the challenges that lay ahead. Details can be found by clicking on the Group Meetings icon front page of the CBAI website!

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    Planting Progress Soars in Illinois

    Illinois farmers planted one-third of the corn crop last week, thanks to cooperative weather conditions.
    See Report.

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    Does Your Bank Qualify as a “Patron of Community Banking”?

    A Patron Bank has actively contributed to the cause of community banking and supported CBAI in nine specific areas. These guidelines encompass all aspects of involvement in CBAI, including attendance at governmental relations, educational, and other events; participation in special services and insurance programs; and contributions to Community BancPac at specified levels. Have questions about whether or not your bank is eligible? Contact Andrea Cusick, CBAI SVP of Communications, at

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    Auditing Regulation Z Seminar Scheduled for April 27-28

    “Auditing Regulation Z” seminar will be held in two locations this April. The goal of this seminar is to equip bankers with the skills necessary (or improve existing skills) to complete the task of reviewing for Regulation Z compliance — ranging from the disclosure requirements for open-end credit to closed-end credit, including residential real estate loan disclosures and other consumer purpose credit disclosures. While the presenter discusses key aspects of the relevant regulatory requirements, the focus of this seminar is on the practical application of the information in the review process. In addition, the manual and appropriate discussion time covers other recent amendments to the regulation, including private education loan requirements. As a result, this seminar is best suited for those individuals who have a working knowledge of the regulations (i.e., compliance officers and compliance auditors). However, given the numerous regulatory changes, other consumer lending personnel may also wish to attend in order to gain a better understanding of the amended Regulation Z. This seminar will be conducted by Bryan K. Bradley, CRCM, Senior Consultant at Young & Associates, Inc. of Kent, OH, a nationally recognized compliance consulting firm specializing in community banks.

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    Community Bank Marketing Conference Scheduled for May 13, 2010

    The 2010
    Community Bank Marketing Conference, “Where Do We Go From Here?,” is designed to help educate community-bank marketing professionals on the secrets of social media, WOW customer service, multi-generational marketing, product bundling, customer on-boarding campaigns, and service selling. This conference was developed by a committee of community bank marketing professionals with the needs of their peers in mind. Attendees will benefit from expert speakers, pertinent and informative topics, and peer networking. A mini-exposition featuring the latest products and services benefitting the community bank and its marketing efforts also highlights the day. Speakers include Rory Rowland, founder of Rowland Consulting Services, Kansas City, MO; Debbra Westergren, vice president at Marquis Software Solutions, Minneapolis, MN; David Prost, senior vice president of BancVue, Austin, TX; Sid Haas, vice president of business development, LKCS, Peru, IL; and Kraig Lounsberry, senior vice president of Governmental Relations at the Community Bankers Association of Illinois, Springfield.

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    Commercial Lending Institute Scheduled for May 11-13, 2010

    three-day mini institute provides commercial lenders with a solid foundation for producing and managing a quality loan portfolio. It focuses on analytical tools such as ratio, financial, cash flow analysis, as well as commercial-loan structuring to enhance repayment capacity. Case studies are used to reinforce learning and represent typical community bank borrowers. Topics covered on day one include financial statement review, credit and ratio analysis, asset-conversion cycle analysis, and ratio interpretation. Cash budgeting, loan structuring, commercial loan documentation, and credit risk management are among the topics on day two. Day three examines cash-flow analysis, financial forecasting, and writing credit memos. Jeffery Johnson, president and founder of Bankers Insight Group, Atlanta, Georgia, heads this distinguished faculty. He is joined by Gary Genenbacher, CPA and partner, and Robert M. Swartz, supervisor, both of BKD, LLP, and Ancin Cooley, bank consulting supervisor with Lindgren, Callihan, Van Osdol & Co., Ltd.

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    IRA Seminar Tour Begins in May

    When you experience the cultural experience of mixing with peers and experts in your field, blended with the refreshing perspectives of cognitive growth, you will savor the refined qualities of our
    IRA Seminars.

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    CBAI 2010 Group Meetings, April 19 – June 15

    28th Annual CBAI Washington Visitation: April 25-27, Renaissance Mayflower Hotel, Washington, D.C.

    CBAI Officer Compensation Survey Deadline: April 30. Complete your survey and get FREE results (CBAI members only, non-member participants pay just $300 for results)

    Finer Points Blog





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