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                    May 5, 2010 Graphic
Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois

  • A Successful 28th Annual Washington Visitation!
  • Dodd and Shelby Reach Agreement on Too-Big-To-Fail
  • Time to Tell Senators Durbin and Burris Where You Stand
  • Cam Fine: “ICBA Fights for Basic Fairness”
  • ICBA's Platform on the Financial Reform Debate
  • Economic Signals Continue Mixed
  • Baker Market Update
  • Agricultural News
  • CBAI Spring Group Meetings Have Begun!
  • Fannie Changes Criteria for Purchasing and Securitizing ARMs
  • FHLB Chicago Summarizes First Quarter Results
  • OCC Newsletter Focuses on Stimulus Programs and Economic Recovery
  • Final Guidance on Correspondent Concentration Risks
  • Agencies Release Revised BSA/Anti-Money Laundering Exam Manual
  • New National Brand – Kasasa – Rapidly Gaining Momentum
  • Is It Time To Re-assess Your Core Systems and Solutions?
  • Increasing Income in the Regulation E Era
  • Feedback Sought for ICBA Bancard Card Conference
  • New Internet Banking Education Portal
  • Commercial Lending Institute Scheduled for May 11-13, 2010
  • Community Bank Marketing Conference Scheduled for May 13, 2010
  • Business Continuity Planning Scheduled for May 18-19, 2010

  • A Successful 28th Annual Washington Visitation!

    Nearly 40 community bankers from across Illinois participated in CBAI’s 28th Annual Washington Visitation on April 25-8, 2010. The delegation arrived in Washington the week the Senate was poised to begin debate on financial reform which will fundamentally alter the business of banking. The Visitation was perfectly timed for community banks to impact this important legislation.

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    Dodd and Shelby Reach Agreement on Too-Big-To-Fail

    Senators Dodd and Shelby today announced that they have worked out an agreement on how to unwind troubled giant banks considered too-big-to-fail. The democrats dropped the requirement that the big banks provide $50 billion up front to pre-fund a systemic risk fund that would be tapped to resolve big bank failures. CBAI and ICBA supported the pre-funding provision. Senator Dodd noted that whether the big banks pay in advance or not does not matter because the taxpayers will not pay for it.
    See Article.

    With this agreement, it is expected that debate will now proceed on several amendments to the measure, and CBAI will keep you informed throughout this important period.

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    Time to Tell Senators Durbin and Burris Where You Stand

    The U.S. Senate is now debating amendments to the financial reform bill, and it is vital that you contact your senators now to express your positions on the key issues. A customizable letter has been prepared that you can easily email to Senators Durbin and Burris. Please take action today.
    Access Letter.

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    Cam Fine: “ICBA Fights for Basic Fairness”

    In his Finer Points blog, ICBA President Cam Fine declares that ICBA is fighting for basic fairness for community banks in the financial reform debate. CBAI works in close cooperation with the ICBA and other state community bankers associations across the United States to gain the support of elected officials for the community banking agenda.
    See Finer Points Blog. See CBAI’s Federal Policy Priorities.

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    ICBA's Platform on the Financial Reform Debate

    After days of political maneuvering, the debate on financial reform began in the Senate on April 29. Before the Republican caucus announced that it would give consent for the bill to be sent to the Senate floor, ICBA sent every member of the United States Senate this
    letter and addendum that clearly lays out where ICBA stands on this bill and the changes it seeks. ICBA wants all community banks to know where it stands on the issues and what it will be fighting to achieve in any financial reform bill. ICBA doesn't want any community banker guessing where ICBA stands on these very critical issues.

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    Economic Signals Continue Mixed

    Fed Index Shows Improvement

    The Chicago Fed National Activity Index increased in March thanks to improvements in production- and employment-related indicators. The consumption and housing category declined.
    See Release.

    Housing Recession Continues

    According to research compiled by Forbes, the current housing recession has been impacted by several factors that are likely to keep foreclosure rates high for some time. The rate of secondary default (default by those who had their mortgages modified) has been extremely high, due primarily to continuing high unemployment. See Article.

    Private Sector Jobs Climb

    In a report just released by ADP Employer Services, the private sector labor markets showed gains for the first time since January of 2008. The private-sector added 32,000 jobs in April. See Full Article.

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    Baker Market Update

    Fed Keeps Rates Unchanged at Zero-0.25%; Maintains 'Extended Period' Language.

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    Agricultural News

    Administration Announces Rural Summit

    On May 4, 2010, the Obama Administration announced that the USDA will host a national rural summit at Jefferson College near St. Louis, Missouri on June 3, 2010. Open to the public, the summit will include breakout sessions on several issues including rural revitalization and job creation. For more details and registration information, please
    click here.

    April Warmest Ever in Illinois; Corn Planting Nearly Complete

    Illinois just experienced the warmest April on record with the average statewide temperature at 58.4 degrees, or 6.2 degrees above normal. See More Data. Meanwhile, the cooperative weather enabled farmers to plant 87% of the corn as of last week compared to just 5% last year. More Details.

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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 to learn more about the needs of CBAI members, and to share information on key community-banking issues and activities. Consisting of an optional golf outing and 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. The after-dinner speaker is David Schroeder, CBAI vice president of federal governmental relations, who makes an informative presentation titled “CBAI Federal Grassroots Advocacy: Get Involved and Make a Difference.”

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    Fannie Changes Criteria for Purchasing and Securitizing ARMs

    Last week Fannie Mae released new standards for the purchase and securitization of adjustable rate mortgage products. Revised eligibility criteria are designed to “protect consumers from potentially dramatic payment increases and to help ensure that borrowers who hold these types of mortgages can sustain them beyond the initial interest rate period.”
    See Full Release.

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    FHLB Chicago Summarizes First Quarter Results

    Last week the FHLB Chicago announced that it recorded net income of $1 million in the first quarter of 2010, and it continues to transform its business model from acquisition of MPF loans to advances. The Bank reiterated its commitment to fulfilling clients’ short- and long-term financing needs through advances.
    See Summary.

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    OCC Newsletter Focuses on Stimulus Programs and Economic Recovery

    The Office of the Comptroller of the Currency (OCC) has published
    Community Developments Investments, its on-line newsletter that describes how banks and their local partners can help promote the growth of the U.S. economy while aiding their own communities. This edition provides a snapshot of various Recovery Act programs that are designed to encourage lending, investments, and community development services activities in response to community needs. In addition, banks that support such community efforts may receive positive Community Reinvestment (CRA) consideration. This edition highlights some of the programs and incentives created or expanded by the Recovery Act to promote small business financing and to stimulate housing and economic development. Its articles help banks understand how funds are being disbursed and how they are being used a year after the Act’s passage to support critical community initiatives around the country.

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    Final Guidance on Correspondent Concentration Risks

    The federal financial regulatory agencies recently issued
    final guidance to address the risks associated with funding and credit concentrations arising from correspondent relationships. The guidance highlights the need for institutions to identify, monitor, and manage correspondent concentration risk on a stand alone and organization-wide basis. The guidance also reinforces the supervisory view that financial institutions should perform appropriate due diligence on all credit exposures to, and funding transactions with, other financial institutions as part of their risk management policies and procedures. The guidance does not supplant or amend applicable regulations such as Limitations on Interbank Liabilities (Regulation F).

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    Agencies Release Revised BSA/Anti-Money Laundering Exam Manual

    The Federal Financial Institutions Examination Council (FFIEC) has released the revised Bank Secrecy Act/Anti-Money Laundering (BSA/AML)
    Examination Manual. The revised manual reflects the ongoing commitment of the federal and state banking agencies to provide current and consistent guidance on risk-based policies, procedures, and processes for banking organizations to comply with the Bank Secrecy Act and safeguard operations from money laundering and terrorist financing. The 2010 version further clarifies supervisory expectations since the August 24, 2007, update. The sections of the manual with more significant updates are noted in the table of contents. Banks should direct questions about the manual to their primary federal regulators.

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    New National Brand – Kasasa – Rapidly Gaining Momentum

    CBSC-marketing partner BancVue recently announced the
    results for Kasasa® (, a new national brand of innovative free checking and savings accounts offered exclusively by BancVue clients. Kasasa is rapidly gaining momentum, producing a 71 percent lift in new account acquisition since its launch last May. Of these new accounts, 53 percent represented new customers to the financial institutions. Call (877) 342-2557 to find out how you can join the exclusive network of community financial institutions offering Kasasa.

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    Is It Time To Re-assess Your Core Systems and Solutions?

    From assessing your current situation, needs, and wish list to realizing the benefits of working toward a new system,'s May article walks you through preliminary Solution Integration Best Practices and provides reliable resources to help you make the best decisions for your institution. Follow, friend, or join BankingHero on Twitter, Facebook, or LinkedIn by June 30, 2010, to enter a drawing for an Apple iPad™.

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    Increasing Income in the Regulation E Era

    Strategic changes to your multi-touch onboarding program can mean a big boost in revenue

    It’s a fact: An effective multi-touch onboarding program is a critical component of a financial institution’s effort to welcome, thank, engage, grow and retain loyal account holders. Harland Clarke and J.D. Powers and Associates research shows that communicating with a new account holder early in the relationship (within 10 days of account opening) and often (three to five times in the first 90 days via multiple channels) has a significant impact on both cross-sell and retention.

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    Feedback Sought for ICBA Bancard Card Conference

    ICBA Bancard is offering a brief survey to ensure that the upcoming
    Bancard Card Conference and Expo exceeds participant expectations. The survey will help ICBA Bancard develop content that meets participants’ business needs. Completed surveys submitted by May 14 will be entered into a prize drawing for one of two $25 gift cards. Take the Survey.

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    New Internet Banking Education Portal

    A new educational portal that will house all the Internet Banking training information is now available from CBSC preferred-services provider First Data. It is moving its Internet-banking training materials from the FundsXpress Support Site to this new education portal, which is housed in a separate section of the First Data Client Web site. Other support material, including documentation, will remain on the Support Site. First Data customers will use the existing Training button on the Support Site to access the new educational portal through a directed sign-on.

    The portal provides the following advantages:
      • The new Web site provides a more flexible platform to organize and present information, making use.
      • It allows for uploading content hourly, resulting in a faster delivery of material.
      • Since many clients use multiple First Data platforms for debit, credit, and Internet banking education, the new Web site will provide a consistent look and feel in the training materials.
      • The new Web site has several new features that will enhance the users’ training experience, such as online class registration, topical learning plans that integrate both e-learning and virtual sessions, and online course evaluations.

    For more information, contact
    Mike Duke, CBSC vice president - electronic payments specialist, at 800/736-2224.

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    Commercial Lending Institute Scheduled for May 11-13, 2010

    Commercial Lending Institute is a three-day mini institute provides your 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. Jeffery Johnson, Bankers Insight Group, Atlanta, GA, heads this distinguished faculty. He is joined by Gary Genenbacher, and Robert M. Swartz, both of BKD, LLP, and Ancin Cooley, Lindgren, Callihan, Van Osdol & Co., Ltd.

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    5 Community Bank Marketing Conference Scheduled for May 13, 2010

    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. 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 CBAI.

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    Business Continuity Planning Scheduled for May 18-19, 2010

    CBAI is pleased to offer
    "Business Continuity Planning" in two locations this May. This seminar examines the entire business-continuity-planning process, starting with conducting a business-impact analysis, performing a risk assessment, developing a plan, testing the plan, and monitoring the associated risks. Participants receive a series of worksheets that will help them prepare their plan following FFIEC guidance. Leading this seminar is Bryan Fetty, Young & Associates, Kent, OH.

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    CBAI 2010 Group Meetings, April 19 – June 15

    Finer Points Blog





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