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Community Bankers Association of Illinois
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     A Bi-Weekly News Bulletin for CBAI Members                     May 1, 2013 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • CBAI’s 31st Annual Call on Washington – Progress on Several Fronts!
  • CBAI/ICBA-Supported TBTF Act Making News
  • CBAI and ICBA Support Reg-Relief Bill Advancing Plan for Prosperity
  • 2013 Capital Conference Highlights
  • Convention Early-Bird Pricing Deadline Has Been Extended
  • Baker Market Update
  • Rural Main Street Economic Index Rises in March
  • St. Louis Fed and CSBS to Host Community Banking Research Conference
  • Alerting Customers About Online Banking Outages
  • Cyber Crime Attacks Excelerating in the News
  • Hope Is NOT a Compliance Strategy!
  • KASASA Ad #4 "Free, Hardworking Accounts"
  • How Is Your Bank Special? BKD Award Nominations Being Taken
  • CBAI to Offer New Operations/Technology Group in Utica
  • Home Mortgage Disclosure Act Seminar Scheduled for May 6 & 9
  • PART TWO: Lending Update – The New Rules and Their Impact! May 7, 8, & 15
  • Compliance for Lenders Scheduled May 14, 16, & 17


  • CBAI’s 31st Annual Call on Washington – Progress on Several Fronts!

    Nearly 50 community bankers from across Illinois, together with spouses and welcomed guests, participated in CBAI’s 31st Annual Call on Washington held on April 23-26, 2013. The CBAI delegation met with their Members of Congress and federal regulators to discuss key legislative and regulatory issues of importance to Illinois community banks.
    Read More.

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    CBAI/ICBA-Supported TBTF Act Making News

    Legislation supported by CBAI and ICBA to help eliminate the threats posed by too-big-to-fail financial institutions is making headlines in major media outlets. The Terminating Bailouts for Taxpayer Fairness Act of 2013 (TBTF Act, S. 798), sponsored by Sens. Sherrod Brown (D-Ohio) and David Vitter (R-La.), seeks to end federal subsidies for financial firms larger than $500 billion in assets and to implement regulatory relief for community banks.
    See Vitter-Brown Article.

    In his blog this week, ICBA's Cam Fine praised Senators Brown and Vitter for standing with Main Stret America and described them as Main Street Heroes. See Cam Fine Blog. Meanwhile, the American Bankers Association and its Wall Street mega banks came out in opposition to S. 798, and their spin machine is now in high gear. See Wall Street Examiner Article. In a Bloomberg View piece, MIT economist Simon Johnson wrote that the ABA and mega banks have now shifted their refrain to "lets implement Dodd-Frank. He also note that ICBA and the nation’s community bankers are strong enough to effectively stand up to the largest financial institutions. Separately, American Banker reported that community bank support is key to advancing the TBTF Act, while New York Times columnist Gretchen Morgenson wrote that the bill would allow community banks to operate on a more level playing field with the megabanks.

    A full rundown of media coverage on the Brown-Vitter bill and other news on the too-big-to-fail problem is available on ICBA’s “End Too-Big-To-Fail” website. The site includes a variety of other resources on the too-big-to-fail issue from ICBA, policymakers and others.

    In a national news release last week, ICBA said the TBTF Act would reduce systemic risk, protect taxpayers and put community banks on a competitively balanced playing field. Brown and Vitter both addressed community bankers at last week’s ICBA Washington Policy Summit.

    Last week nearly 50 CBAI members were in Washington visiting congressmen and encouraging support for regulatory relief and resolving too-big-to-fail. Senator Richard Durbin agreed to co-sponsor the Vitter-Brown bill, and CBAI expressed its sincere appreciation for his valued support. Learn More About Too-Big-To-Fail.

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    CBAI and ICBA Support Reg-Relief Bill Advancing Plan for Prosperity

    CBAI and ICBA are supporting new legislation that advances the Plan for Prosperity agenda to ease regulatory burdens on community banks. H.R. 1750, sponsored by Rep. Blaine Luetkemeyer (R-Mo.), helps achieve a tiered approach to regulation for community banks.

    Among its provisions, H.R. 1750 would:

      • Exempt community banks from a variety of new mortgage reforms, including new escrow rules, to support the housing recovery,
      • Require rigorous and quantitative justification of new Securities and Exchange Commission rules,
      • Reduce annual privacy notice redundancies to cut paperwork,
      • Support additional capital opportunities for small bank holding companies, and
      • Exempt community banks from Sarbanes-Oxley internal-controls assessment mandates.
    Read ICBA Release.

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    2013 Capital Conference Highlights

    On Wednesday, April 17, 2013, community bankers from across Illinois assembled in Springfield to meet with state legislators on key community banking issues. The annual event kicked-off with lunch and a keynote address from Illinois State Treasurer Dan Rutherford. In his remarks, Treasurer Rutherford commended community bankers for their commitment and dedication to community involvement and highlighted his good working relationship with CBAI.
    See Highlights.

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    Convention Early-Bird Pricing Deadline Has Been Extended

    CBAI has extended the early-bird pricing deadline from April 30 until Friday, May 17! Register now to receive the lowest pricing to attend CBAI’s 39th Annual Convention & Expo. Scheduled for September 26-28, 2013, at the Crowne Plaza in Springfield, this year’s convention is entitled “Community Bankers: Illinois’ Treasure.” The convention features expert general session speakers, 24-break sessions on the hottest issues in community banking, exciting social activities, a 100-booth exhibit hall with the latest in products and services, and countless networking opportunities. Don’t hesitate!
    Register today!

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    Baker Market Update

    Information received since the Federal Open Market Committee met in March suggests that economic activity has been expanding at a moderate pace. Labor market conditions have shown some improvement in recent months, on balance, but the unemployment rate remains elevated. Household spending and business fixed investment advanced, and the housing sector has strengthened further, but fiscal policy is restraining economic growth. Inflation has been running somewhat below the Committee's longer-run objective, apart from temporary variations that largely reflect fluctuations in energy prices. Longer-term inflation expectations have remained stable.
    Read More.

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    Rural Main Street Economic Index Rises in March

    The March survey of rural community bankers throughout the Midwest found that the rural economy continues to expand, the pace of new hiring is back to pre-recession growth rates, bankers expect cash rents for farmland to grow by 9.3 percent this year, and most reported an upturn in the percentage of farmland purchase that are bank financed.
    See Main Street Report.

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    St. Louis Fed and CSBS to Host Community Banking Research Conference

    The Federal Reserve System and the Conference of State Bnak Supervisors will host “Community Banking in the 21st Century,” an inaugural research and policy conference scheduled for October 2-3, 2013, at the Federal Reserve Bank of St. Louis.
    See St. Louis Fed Release.

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    Alerting Customers About Online Banking Outages
    For bankers, alerting customers about online banking outages in the midst of a cyberattack is a lot like the task the flight crew faced in the movie "Airplane!"

    "There's no reason to become alarmed," a flight attendant named Elaine tells passengers. "By the way, is there anyone on board who knows how to fly a plane?"

    On an airliner or at a bank, it takes a deft touch to provide critical information in a crisis without amplifying the alarm - a task that's particularly challenging for a heavily regulated financial institution.
    Read Bank Technology News Article.

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    Cyber Crime Attacks Excelerating in the News
    Patricia M. Tobin, CIC, FI Specialist
    Community BancInsurance Services
    Powered by Nicoud Insurance
    Springfield, IL


    Not a day passes that we don’t hear about another cyber attack. A U.S. House Subcommittee is now holding hearings to determine how we can better protect all-sized businesses against exposures to electronic cyber attacks.
    Click Here to read about cyber-crime insurance.

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    Hope Is NOT a Compliance Strategy!

    For most CBAI member banks, the burden of compliance is like a never-ending barrier to success. With escalating costs and concerns that your bank may miss something, it may be time to consider changing your compliance program.

    Download this free whitepaper compliments of CBAI and Continuity Control:
    "5 Keys to Conquering Regulatory Compliance" to learn how you can manage compliance in a way that is radically easier and much less expensive.

    For more information on Continuity Control, our preferred partner for compliance services, visit www.continuity.net.

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    KASASA Ad #4 "Free, Hardworking Accounts"

    While the rest of the world is evolving, megabanks are not only taking a step back, but reaching even further into account holders’ pockets to take what they want. Kasasa’s “Free, Hardworking Accounts” commercial sheds light on how Kasasa checking and savings accounts aren’t just free. Community banks can use free Kasasa accounts to rewards account holders for the privilege to be their bank – with refunds on ATM fees and a choice of other rewards as good as cash.

    So even though basic free checking is being re-called in more and more cold, corporate headquarters, Kasasa offers a real alternative to megabanks – a free account that works hard to help account holders spend or save as each sees fit, exclusively available at a community bank that cares.
    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 one of the many fine products of BancVue, a CBSC Preferred Marketing Partner.

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    How Is Your Bank Special? BKD Award Nominations Being Taken

    Nominations are being accepted 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.

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    CBAI to Offer New Operations/Technology Group in Utica

    CBAI is pleased to announce that a new Operations/Technology Group has been created and will meet at the Starved Rock Lodge in Utica on May 30. These groups provide opportunities for operations and technology officers to discuss important issues with non-competing community bankers. Mark Scholl, partner with Wipfli LLP, will facilitate this group. Based on bank size and market, CBAI organizes the Groups to ensure participants have as much in common as possible without being competitors. Forums meet quarterly to discuss timely issues. Participation in the Groups comes with a long list of benefits, including:

    1. Improve the bank’s operation practices

    2. Increase your understanding of technological issues

    3. Form lasting relationships with non-competing operations/technology personnel

    4. Solve your most pressing problems

    5. Obtain access to highly respected financial technology experts
    For more information, please
    click here or visit www.cbai.com today! If you have any questions concerning the Forums, please contact Melinda McClelland by phone at 800/736-2224, or by e-mail at melindam@cbai.com.

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    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.

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    PART TWO: Lending Update – The New Rules and Their Impact! 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.

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    Compliance for Lenders Scheduled May 14, 16, & 17

    The compliance officer is responsible for administering your bank’s compliance program including policies and procedures. Each employee should have a working knowledge of the compliance issues that pertain to his or her assigned position description. This year is a major challenge, as the regulators have added 3,500 pages of material regarding the Dodd-Frank Act changes to lending.
    “Compliance for Lenders” has been developed specifically to meet the unique needs of the community bank. This one-day program provides a discussion of the current “hot-button” changes that are a part of the Dodd-Frank rules and up-to-date information on compliance issues and other developments in bank regulations that relate to lending. Leading this seminar is Bill Elliott, CRCM, senior consultant and manager of compliance at Young & Associates, Inc., Kent, OH.

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