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                           May 2, 2012 Graphic
Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois

  • CBAI’s 30th Annual Call on Washington a Huge Success!
  • Current Banker, Former CU Exec: Conversion Is Viable Alternative
  • Groups Differ on How to Resolve Too-Big-to-Fail Banks
  • Lehman’s Pre-Crash Comp Program Stuns Wall Street
  • CBAI Capital Conference Highlights
  • For Illinois, the Bills Come Due
  • Baker Market Update
  • CBAI’s 2012 Group Meetings Are Underway! Register Today!
  • State Treasurer Offering Conferences on Unclaimed Property
  • CFPB Final Rule for Reporting Thresholds
  • ICBA-Backed Legislation Would End ATM Mandate
  • BancVue's MoneyIsland Wins EIFLE Award
  • Beware of HELOC Scams
  • CORe: CPI Card Webinar: Intro to EMV
  • Video Contest for Illinois Businesses
  • CBC Program on Reg E Changes Set for May 8 & 9
  • Community Bank Marketing Conference Scheduled for May 10
  • Commercial Lending Institute Scheduled for May 15-17
  • Early-Bird Pricing for CBAI’s 38th Annual Convention Extended to May 15

  • CBAI’s 30th Annual Call on Washington a Success!

    Nearly 50 community bankers from across Illinois, together with spouses and welcomed guests, participated in the CBAI’s 30th Annual Call on Washington on April 24-27, 2012. The Illinois delegation met with their Members of Congress to discuss key legislation and issues including: the Communities First Act (H.R. 1697/S. 1600), the FI Examination Fairness Act (H.R. 3461/S. 2160), a five-year extension of the Transaction Account Guarantee (TAG) program, and strong opposition to any increase in credit union powers (H.R. 1418/S. 2231).
    See Highlights!

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    Current Banker, Former CU Exec: Conversion Is Viable Alternative
    Urges Congress To Oppose Credit Union Biz-Lending Push

    The head of a former credit union that converted to a mutual bank called on members of Congress to oppose legislation that would more than double the cap on credit union member business loans. Paul Mackin, CEO of Think Mutual Bank in Rochester, Minn., wrote in a
    letter to lawmakers that the member-business-lending cap was implemented to keep credit unions focused on consumer lending to people of modest means, consistent with their original tax-exempt mission.

    Mackin wrote that the CBAI and ICBA-opposed Small Business Lending Enhancement Act (S. 2231/H.R. 1418) would allow credit unions to compete with community banks while retaining their tax-exempt status and the unfair competitive advantage it offers. He recommended that credit unions that want to expand their business lending should consider converting to a bank.

    “Charter conversion is a viable alternative for credit unions dissatisfied with their charter. Many have converted and others are under consideration,” Mackin wrote. “Many credit unions are satisfied with the original charter and are filling an important role in our financial system.”

    These arguments closely reflect CBAI's and ICBA’s strong opposition to the credit union industry’s legislative push. Last week a delegation of 40 CBAI members attended ICBA's annual Policy Summit which lobbied Congress to oppose the credit union legislation. Contact Congress Now! Learn More About the Issue.

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    Groups Differ on How to Resolve Too-Big-to-Fail Banks

    Bright-line distinctions have emerged between the ICBA and ABA on how to resolve the too-big-to-fail issue. The ICBA has expressed strong support for the Federal Reserve’s proposal to enhance capital and liquidity requirements, establish single-counterparty credit concentration limits, early remediation requirements, and ongoing stress tests for mega banks. ICBA also supports downsizing the largest financial firms because they are too big to manage, regulate, and resolve and pose a threat to the economy.
    See ICBA Comment Letter. See ICBA Release.

    Meanwhile, the mega banks, the ABA, and other organizations that represent large financial firms are opposing the proposed rules, accusing the Fed of misusing its powers to shrink mega banks under the belief that “big is bad.” The ABA has also separately expressed opposition to downsizing the largest banks by claiming that it will harm our international competitiveness. See Washington Post Article.

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    Lehman’s Pre-Crash Comp Program Stuns Wall Street

    Recently released documents in the bankruptcy case of Lehman Bros., which failed in 2008 during the financial crisis, revealed that the firm doled out nearly $700 million to 50 of its highest-paid employees less than a year before it declared bankruptcy. The huge payouts have surprised several Wall Street observers and illustrate the enormous fees generated by packaging and selling mortgage-backed securities. CBAI is urging Congress to separate highly-risky investment banking activities from commercial banking which would restore key provisions of the Glass-Steagall Act.
    See LA Times Article.

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    CBAI Capital Conference Highlights

    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.
    See Highlights!

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    For Illinois, the Bills Come Due

    Noted columnist George Will recently offered his observations on Illinois’ dire financial condition, concluding that, despite recent tax increases, the Land of Lincoln will probably plunge into insolvency. He indicated that Illinois has the fourth-highest combination of national and local corporate taxation in the industrialized world, and its pension system is the nation’s most underfunded.
    See Newsmax Article.

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    Baker Market Update

    The big news last week was the announcement about a large GDP number for the first quarter. Well, curb your enthusiasm. The Q1 flash estimate of a tepid 2.2% increase actually was a bit below the already subdued market expectation of 2.5%. This, in turn, was below the previous quarter’s slightly less subdued 3.0% growth rate. Early trading in the Treasury market has been likewise subdued, pushing the yield on the Ten Year Benchmark note down to 1.93%. The lukewarm recovery continues. Okay, maybe that wasn’t such big news.
    Read More.

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    CBAI’s 2012 Group Meetings Are Underway! Register Today!

    CBAI’s 2012 Group Meeting tour is underway! 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 the Association 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.”
    Register for the meeting in your area today!

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    State Treasurer Offering Conferences on Unclaimed Property

    Your bank may hold 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 within the coming months at no cost to you. These sessions are meant to educate, inform, and answer any questions by holders of property owed to other businesses or individuals.
    Learn More.

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    CFPB Final Rule for Reporting Thresholds

    The Consumer Financial Protection Bureau (CFPB) has published the final rule amending the official commentary that interprets the requirements of Regulation C. By this amendment, the CFPB has raised the asset size exemption threshold to $41 million for depository institutions. Thus, institutions with assets of $41 million or less as of December 31, 2011, will not be required to collect Home Mortgage Disclosure Act (HMDA) data in 2012.
    See Final Rule.

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    ICBA-Backed Legislation Would End ATM Mandate

    Legislation to eliminate an unnecessary ATM fee disclosure requirement was just introduced in Congress. Under
    H.R. 4367, sponsored by House Financial Services Committee members Blaine Luetkemeyer (R-Mo.) and David Scott (D-Ga.), financial institutions would no longer have to attach a physical placard to ATMs stating that a fee may be charged.

    As ICBA and a coalition of other financial trade groups wrote in a February letter to lawmakers, the requirement is unnecessary because consumers expect to pay a fee on ATMs not operated by their financial institution. The mandate is also duplicative, because a similar fee notice is provided on the ATM video monitor. Additionally, the trade groups wrote, the law has led to spurious lawsuits because it allows plaintiffs to recover the lesser of $500,000 or 1 percent of the net worth of the ATM operator.

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    BancVue's MoneyIsland Wins EIFLE Award

    BancVue, the leading provider of innovative products, dynamic marketing, and data-driven consulting solutions to community financial institutions around the country, recently
    announced that its MoneyIsland™ product has won an Excellence In Financial Literacy Education (EIFLE) award for instructional game of the year. BancVue is a valued marketing partner of Community BancService Corporation (CBSC).

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    Beware of HELOC Scams
    By John Immordino, CBIS

    Home Equity Line of Credit (“HELOC”) scams are on the rise. In recent years a surge in wire transfer fraud involving compromised member HELOC accounts has resulted in losses exceeding $4,000,000 for one financial institution alone.
    Read More.

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    CORe: CPI Card Webinar: Intro to EMV

    CPI Card Webinar on EMV Preparation - May 15th and May 17th

    Please join ICBA Bancard for a presentation by Michelle Lehouck of CPI Card Group, an ICBA preferred service provider, for a one-hour webinar entitled, “An Introduction to EMV: Market Trends and Smart Card Construction” on May 15th at 11:00am (Eastern) or May 17th at 2:00pm (Eastern). Attendees will learn:

      • How future market trends could impact operations
      • About selecting the right EMV card for customers, and
      • Basics about smart card construction.

    After clicking on the preferred date at the appointed time, enter the following:

    Conference Number(s): (877) 687-3100
    Participant Code: 7805934366

    To Learn More,
    click here.

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    Video Contest for Illinois Businesses
    Video contest will showcase successful small businesses; Winning videos to be highlighted during National Small Business Week

    Do you have a small business story to tell? Tell your story to the SBA and your video may appear at
    National Small Business Week. To learn more, please click here.

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    CBC Program on Reg E Changes Set for May 8 & 9

    CBAI is offering the third quarter of the
    Community Bankers for Compliance (CBC) Program entitled “Regulation E Changes: Internal Transactions and Regulation CC” in two locations next week. This seminar focuses on the mechanics that are required as well as the regulation, and is designed in part to assist management in making appropriate decisions regarding the bank’s participation in international transactions that are subject to the regulation. None of the new requirements will be in force until February 7, 2013, so there will be plenty of time for decision making. There have been proposals to amend Regulation CC, but these changes appear (as of this writing) to be “down the list of priorities.” Many of the proposed changes concern Subpart C – Collection of Checks. This session will discuss the proposed changes, but the focus of the presentation is on other subparts of the regulation. As always, the program will begin with Regulatory Update, including a CFPB update which will discuss recent regulatory changes or pronouncements which will or may have an impact on the bank’s overall compliance program. Leading this seminar is Bill Elliott, senior consultant and manager of compliance at Young & Associates, Inc., Kent, OH.

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    Community Bank Marketing Conference Scheduled for May 10

    CBAI is pleased to offer the sixth annual
    Community Bank Marketing Conference scheduled for Thursday, May 10, 2012, at the Crowne Plaza in Springfield. Participants 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 will also highlight the day. Ford Saeks, founder of Profit-Rich Marketing, Witchita, KS, will open the conference with “Innovative Marketing Mastery,” a high-energy “how-to” session that offers a multitude of creative marketing techniques for getting prospects and customers to buy more products and services. His interactive closing session, “Secrets of Sales Success,” will help participants increase first-time and repeat sales while improving customer loyalty. Other hot topics on the agenda include “The Power of Generational Marketing – Are You Adapting to the Digital Generation?” with Chris Braccia, director of product management at Harland Financial Solutions, Lake Mary, FL; “Engagement Banking” with Jim Brummer, product manager at CFC Technology, Minnetonka, MN; and “Embracing E-Mail Marketing: Myths, Best Practices, and Strategies for Success” with John Joseph, vice president of operations and client engagement at SubscriberMail, Lisle, IL.

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    Commercial Lending Institute Scheduled for May 15-17

    CBAI will offer “
    Commercial Lending Institute” in Springfield this May. This three-day mini institute will provide commercial lenders with a solid foundation for producing and managing a quality loan portfolio. It will focus 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 will 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 will examine 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 Gerald Pfeiffer, partner, and Andrea Zurkamer, senior manager of assurance services, both of CliftonLarsonAllen, LLP in Peoria, IL; and Robert M. Swartz, manager, and Gary Genenbacher, CPA and partner, both of BKD, LLP.

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    Early-Bird Pricing for CBAI’s 38th Annual Convention Extended to May 15

    Early-bird registration has been extended for CBAI’s 38th Annual Convention & Expo until May 15, 2012. 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.
    Register today!

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    ACT Appraisal



    Community Bank Marketing Conference May 10, 2012 – Crowne Plaza, Springfield

    Finer Points Blog





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