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Community Bankers Association of Illinois
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     A Bi-Weekly News Bulletin for CBAI Members                                    May 10, 2017

Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • Community Bankers Meet with President Trump
  • Report on CBAI's 35th Annual Call on Washington
  • Mnuchin: Community Bank Relief Key to Economic Growth
  • Keep Up Momentum of Capital Summit Advocacy
  • ICBA's Cam Fine Announces 2018 Retirement
  • CBAI and ICBA-Backed Bill Offers Tax Relief for Rural Lending
  • CBAI Urges NCUA Not to Proceed with Alternative Capital Rulemaking
  • OCC’s Curry Stepping Down; Noreika to be Acting Comptroller
  • FDIC Releases Final De Novo Handbook
  • Investment News From THE BAKER GROUP
  • Registrations Now Open for All CBAI Group Meetings!
  • Wolters Kluwer: Increase Your Profits with CASH Suite-See How on May 24th!
  • CBAI LEGAL: Appellate Court Dissects Intercreditor Agreement
  • CBIS: The Critical Reality of Employee Theft
  • Register Today for Early-Bird Pricing for CBAI's 43rd Annual Convention!
  • Call Report Seminar Slated for May 16 & 17
  • ACH for Beginners Scheduled for May 18 & 23
  • Listening for Opportunities: Train-the-Trainer Set for May 24
  • Community Bankers School Scheduled for July 16-21

  • Community Bankers Meet with President Trump

    On May 1st, more than 100 community bankers and staff met with President Donald Trump, Vice President Mike Pence, NEC Director Gary Cohn, and Small Business Administration chief Linda McMahon at the White House as part of the 2017 ICBA Capital Summit and CBAI Call on Washington. Trump said the administration is focused on addressing regulatory burdens to help community banks lend to small businesses.

    The meeting involved community bankers on ICBA’s Executive Committee, board of directors, Federal Delegate Board, and policy committees. ICBA Illinois Delegates and CBAI Past Chairmen Bill Wubben of Apple River State Bank and Mike Estes of Fisher National Bank participated in the special event at the White House.

    The White House meeting was covered by numerous news outlets, including the Fox Business Network, USA Today, Washington Times, and several others. More than 1,000 community bankers were in Washington last week to discuss critical community banking issues including regulatory relief. CBAI’s annual Call on Washington was held in conjunction with the Capital Summit and included a delegation of 50 CBAI members and staff. Read ICBA Release. Read Trump’s Remarks. See Fox Network Video. Read USA Today Article. Read Washington Times Report.

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    Report on CBAI's 35th Annual Call on Washington

    Lawmakers and the Administration Receptive to the Community Bank Message

    Evidence of the soaring political capital of community banks was on full display during the Community Bankers Association of Illinois’ 35th Annual Call on Washington which was held April 30 – May 2, 2017. Again this year, CBAI’s Call on D.C. was held in conjunction with the Independent Community Bankers of America’s (ICBA) Capital Summit. More than 1,000 community bankers from across the country brought their message to the nation’s capital, and lawmakers and the new Administration were very receptive. Read More.

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    Mnuchin: Community Bank Relief Key to Economic Growth

    Treasury Secretary Steven Mnuchin told community bankers gathered for the ICBA Capital Summit last week that the Trump administration is focused on regulatory relief and tax reform that will stimulate small-business lending and economic growth. In a conversation with ICBA President and CEO Cam Fine at the gathering of more than 1,000 community bankers, Mnuchin said more sensible and streamlined regulations would help community banks meet the needs of their customers and communities.

    Mnuchin also said Treasury is working with HUD on housing-finance reforms that will preserve liquidity in the secondary market while avoiding risks to taxpayers. He also previewed the naming of Keith Noreika as acting comptroller of the currency and said nominees for key Federal Reserve Board positions, including one reserved for community bankers, will be coming soon from the administration.

    The conversation with Mnuchin capped an eventful ICBA Capital Summit that featured a meeting at the White House with President Trump and Vice President Pence of more than 100 ICBA community bankers, remarks from House Financial Services Committee Chairman Jeb Hensarling (R-Texas) immediately before his panel began marking up his comprehensive regulatory relief legislation, and the announcement that ICBA President and CEO Cam Fine would retire next year and former ICBA Chairman Rebeca Romero Rainey would be his successor.

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    Keep Up Momentum of Capital Summit Advocacy

    Community bankers wrapped up the 2017 Capital Summit with 318 congressional meetings in the books. Attendees met with members of Congress on regulatory relief, flood insurance, tax reform, credit unions, the farm bill and the Farm Credit System.

    Community bankers can keep the momentum going with continued grassroots outreach through ICBA’s Virtual Policy Summit. ICBA and CBAI are encouraging community bankers to amplify the industry’s voice by sending in a custom email message to members of Congress and by signing ICBA’s petition supporting its Plan for Prosperity. Contact Congress Now. Sign Petition.

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    ICBA's Cam Fine Announces 2018 Retirement

    Third-generation community banker Rebeca Romero Rainey named successor

    Cam Fine, president and CEO of the Independent Community Bankers of America (ICBA) since 2003, has announced his plans to retire in May 2018. Concurrent with his retirement announcement, ICBA Chairman Scott Heitkamp, president and CEO of ValueBank, Corpus Christi, Texas, announced that the ICBA Executive Committee has named Rebeca Romero Rainey, a third-generation community banker, as Fine’s successor. Romero Rainey is owner, chairman and CEO of Centinel Bank of Taos, N.M., and ICBA immediate past chairman. Read Press Release. See Rainey Bio.

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    CBAI and ICBA-Backed Bill Offers Tax Relief for Rural Lending

    Legislation to provide tax relief for agricultural and rural residential lending was recently introduced in the U.S. House by Representative Lynn Jenkins (R-Ks).

    Under the Enhancing Credit Opportunities in Rural America Act, interest received on farm loans secured by agricultural real estate would not be taxable. The ECORA bill also would provide similar relief to interest on loans secured by rural single-family homes that are the principal residence of the borrower in towns with a population of less than 2,500.

    The bill offers community bankers greater flexibility to work with farmers who may have trouble accessing credit or servicing their debt due to low commodities prices. CBAI and ICBA support targeted tax relief for community bank lending consistent with advantages enjoyed by other lenders serving the same markets.

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    CBAI Urges NCUA Not to Proceed with Alternative Capital Rulemaking

    In a comment letter to the National Credit Union Administration (NCUA), CBAI urged a halt to their rulemaking regarding supplemental capital for credit unions. Read Comment Letter.

    CBAI found fault with the reasoning that because of a lack of specific statutory authority the NCUA is permitted to promulgate capital rules and authorize alternative capital instruments for credit unions. Congress should decide whether the actions contained in the NCUA’s proposal are permissible, but this authority has not been given. Absent such authority, the proposed rulemaking represents an abuse of the NCUA’s authority, a blatant expansion of powers, and a costly and unfair increase in the credit union industry tax subsidy.

    In the comment letter, CBAI urged the NCUA to focus on the founding mission of credit unions: enabling people of modest means and with a common bond to pool their resources to meet their basic deposit, savings and borrowing needs through a mutual ownership structure. Yet, CBAI noted that credit unions have long since strayed from their founding mission and the supplemental capital proposal would result in credit unions having an ownership structure similar to most taxpaying banks with a category of investors whose interests are inconsistent with those of its mutual owners.

    CBAI recommended the credit union industry’s tax subsidy should be eliminated and credit unions should pay their fair share of income taxes. Read Comment Letter.

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    OCC’s Curry Stepping Down; Noreika to be Acting Comptroller

    The Office of the Comptroller of the Currency announced last week that agency head Thomas Curry will step down tomorrow after completing his five-year term last month. Keith A. Noreika—a partner at Simpson Thacher & Bartlett LLP specializing in banking regulation—will begin serving as acting comptroller of the currency the same day.

    Treasury Secretary Steven Mnuchin said he intends to appoint Noreika as first deputy comptroller. According to news reports, former OneWest Bank chief executive Joseph Otting is expected to be nominated as Curry’s more permanent replacement as comptroller, which will require Senate confirmation. Read OCC Announcement. Read Treasury Release.

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    FDIC Releases Final De Novo Handbook

    The FDIC released a final handbook on forming de novo banks to provide a plain-language overview of the deposit-insurance process. The handbook offers guidance for navigating the three phases of establishing an insured institution: pre-filing activities, the application process, and pre-opening activities. The handbook does not establish or modify policy or guidance. Read More from FDIC.

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    Investment News From THE BAKER GROUP

    Baker Market Update

    Some may find it befuddling that any central bank would want to raise rates in an economy growing at less than 1%. Describing that weakness as “transitory” may be the Fed’s delicate way of signaling its intent to continue down the higher-rate path no matter what. Maybe it just means the May meeting was nothing more than a place-holder while investors prepare for the inevitable. See Baker Market Update.

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    Registrations Now Open for All CBAI Group Meetings!

    CBAI leaders and executive staff are visiting 11 locations on the 2017 Group Meetings Tour this spring. Bankers from nearly 200 banks participate in these enjoyable and informative events each year. For this year’s after-dinner presentation, you will hear from one of two experts from SHAZAM Network on either the topic of creating a robbery program at your bank or the topic of developing beneficial relationships with the local media. The opening portion of each Group Meeting will focus on critical legislative and association issues. CBAI President Bob Wingert will provide updates on Association projects and community banking in general, and Senior Vice President of Governmental Relations Kraig Lounsberry will offer an up-to-the-minute report of banking-related legislative activities.

    Consisting of an optional golf outing and a dinner meeting, each Group Meeting provides an excellent opportunity to get the latest information on key banking issues and catch up with friends and peers. (Note: The Groups 1, 2 & 3 meeting will follow a different format). Make plans now to attend! See Group Meetings Schedule. See Group Meetings Agenda. See After Dinner Presenter Information.

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    Wolters Kluwer: Increase Your Profits with CASH Suite-See How on May 24th!

    CASH Suite streamlines tasks like business development, financial analysis, risk management and pricing, credit communications and approvals, covenant compliance tracking, portfolio management, stress testing and in-depth reporting—ultimately increasing efficiency and accuracy to reduce operational risk and enhance long-term profitability. Learn More and Register for this FREE Webinar Today!

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    CBAI LEGAL: Appellate Court Dissects Intercreditor Agreement

    A March 29, 2017 opinion of the U.S. Court of Appeals for the Seventh Circuit concluded that a mortgagor whose foreclosure case had been resolved in the state court system has very little chance of resurrecting his or her defense to foreclosure by making an appeal to the federal court system. Read Most Recent CBAI LEGAL.

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    CBIS: The Critical Reality of Employee Theft

    A few years back, the U.S. Chamber of Commerce released some staggering figures on employee theft that CBIS believes community bankers would be wise to revisit. The Chamber estimated that 75 percent of employees steal at least once, and half of those are repeat offenders.

    In banks, the opportunities for thieves hiding in plain sight among your workforce are rampant. About 20 percent of all employee theft occurs in the financial-services sector, more than any other sector examined. Read More.

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    Register Today for Early-Bird Pricing for CBAI's 43rd Annual Convention!

    Registration is now open for CBAI’s 43rd Annual Convention & Expo, scheduled for September 14-16, 2017, at the Crowne Plaza in Springfield, IL. Expert speakers on the hottest community banking topics fill an education agenda featuring 20 break-out sessions. This year's Opening Breakfast Speaker is John O’Leary. At the age of nine, John created a massive explosion in his home and was burned on 100% of his body. He was given 1% chance to live. His epic story of survival, emotional story-telling, unexpected humor, and authenticity make his presentations truly transformational. Also on the agenda is the Welcoming Reception with BancPac Live and Silent Auction, a jam-packed exhibit hall with more than 90 booths, the Annual Business Meeting Luncheon, and much more. The Closing General Session features Jeff Havens, one of the most in-demand speakers in North America. In his hysterical keynote, Us vs. Them, you'll learn a simpler way of looking at your own generational picture, and you'll also learn how to understand, recognize, and resolve every generational issue facing today's workforce.

    Don't wait! Register today for early-bird pricing at CBAI's annual showcase event! You won't want to miss it! Register Here!

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    Call Report Seminar Slated for May 16 & 17

    With ever-changing regulatory and accounting environment, it is important that call-report preparers and reviewers remain up to date. In 2017, many community banks face the implementation of the new call report form FFIEC 051 and the elimination or modification of certain data items. This session includes detailed discussions of each call report schedule as well as the real-life challenges of completing an accurate Call Report. The session includes detailed examples as well as sufficient time for questions and answers. Participants receive a detailed, 200+ page manual that is valuable for future reference. It includes a summary of general instructions and procedures for less-experienced preparers. This seminar covers new accounting updates that will affect banks’ Call Report. Understanding of and compliance with accounting changes is often more difficult than revisions to Call Report schedules. The course is intended for all levels of preparers, experienced and new. The course will validate questions that experienced preparers may have and begin a base of knowledge for the new preparers of the report. Leading this seminar are Amanda C. Garnett, CPA, and David Heneke, CPA, CISA, both principals in the Financial Institution Group of CliftonLarsonAllen LLP in the Peoria, IL, office.

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    ACH for Beginners Scheduled for May 18 & 23

    This session explains general ACH rules in a real-world, easy-to-understand approach. Attendees learn the essentials of understanding the ACH system and daily processing as well as steps for handling some common issues. Learn to talk the “lingo” with the best of them! New and relatively new ACH personnel and operations staff who want a better understanding of ACH should attend this session. Nicole Meinhardt, CPA, AAP and senior manager at Wipfli LLP, Sterling, IL, leads this seminar. In addition to providing ACH-training courses, Meinhardt has performed and managed hundreds of ACH exams for financial institutions since 2005.

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    Listening for Opportunities: Train-the-Trainer Set for May 24

    Your branch team is the “face of the bank” and touches more customers than anyone else there. They have the best opportunity to listen to your customers and help them build their financial dreams! By the end of this train-the-trainer seminar, bankers are prepared to train “Listening for Opportunities” to frontline personnel. You will understand your role in providing an exciting, non-threatening, training experience for co-workers back on the job. You’ll practice skills, conduct a brief training exercise, and receive performance feedback. This program allows you to then train co-workers about how to recognize customer dreams, goals, or even issues, and translate that into actionable steps to help customers make and save money, time, or be financially safe and secure. The morning program is devoted to learning how to train for impact along with a review of the “Listening for Opportunities” content. The afternoon focuses on transferring skills to the job for employees, test presentations, and feedback from the instructor. Leading this seminar is Jennie Sobecki, co-owner of Focused Results, LLC, a sales and marketing strategy, consulting, and training firm, concentrating in results-driven process consulting and training experience in community banks and financial institutions.

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    Community Bankers School Week Scheduled for July 16-21

    The Community Bankers School, which consists of two, one-week sessions over a two-year period at Illinois Wesleyan University in Bloomington, will allow you to immediately contribute to the overall success of your bank, and give you the knowledge necessary to get ahead. The School features a nationally recognized faculty, an updated curriculum, and timely topics. Topics covered during this intense week for Class I participants include compliance, accounting, commercial and consumer loan documentation, collections, bank security, auditing, investments, and technology, while Class II focuses on management aspects. However, the benefits extend beyond the classroom with outside case studies, an invaluable student notebook with supplemental materials, as well as networking opportunities with peers, instructors, and senior bankers. You will gain a background and experience for broader responsibilities and greater effectiveness, as well as insight into a community bank’s overall operations responsibilities. The 2017 session opens Sunday, July 16, and concludes Friday, July 21. For more details, click on the attached file or visit today! The deadline to enroll is July 1, 2017. Talk to your employer and register today!

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    THROUGH 07/21/2017






    Finer Points Blog

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