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Community Bankers Association of Illinois
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     A Bi-Weekly News Bulletin for CBAI Members                     May 15, 2013 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • Senator Durbin Co-Sponsors "Terminating Bailouts for Taxpayer Fairness Act"
  • Wall Street Hiring Washington Lobbyists to Keep Status Quo
  • ICBA Hosts #TBTF Twitter Action Center
  • Congress Begins Markups of Farm Bills
  • OCC Provides Summary of Bulletins for First Quarter
  • CBAI: QM Rule Should Exempt All Banks Under $10 Billion
  • KASASA Ad #5: “Hi, Allen”
  • Baker Market Update
  • ACT NOW: Free 30-Day Subscription to Bank Trends Ends June 1!
  • Bank Lending to Small Businesses Climbed in April
  • CBAI Foundation Awards Statewide Winner
  • New Classified Ads Added to CBAI’s Web Site
  • Division of Banking Moves Chicago Offices to Thompson Center
  • Advanced Commercial Lending Institute Scheduled for May 20-22
  • Call Report Preparation to be Held May 22 & 23
  • Ag Lenders’ Conference Set for May 30
  • CBAI Convention Early-Bird Pricing Deadline Extended


  • Senator Durbin Co-Sponsors "Terminating Bailouts for Taxpayer Fairness Act"

    CBAI congratulates Illinois Senator Richard Durbin for co-sponsoring the Terminating Bailouts for Taxpayer Fairness Act of 2013 (S. 798). The Brown-Vitter bill imposes hard capital requirements on mega banks, and maintains current capital requirements for community banks.
    Read More.

    The TBTF Act's Capital Standard Trumps Risk-Based System

    The TBTF Act (the Brown-Vitter bill) has caused an about-face by the mega banks that are suddenly embracing provisions of the Dodd-Frank Act which they had vehemently opposed. CBAI believes that the position is intended to delay action on the TBTF Act and other measures intended to downsize the mega banks and resolve the intolerable too-big to fail double standard.

    In a recent op-ed response in the American Banker, ICBA’s Senior Regulatory Counsel Chris Cole cited several reasons why the Brown-Vitter capital standard trumps the risk-based system now promoted by the ABA. See ICBA Op-Ed.

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    Wall Street Hiring Washington Lobbyists to Keep Status Quo

    In response to growing sentiment for a resolution to too-big-to-fail, the Wall Street mega banks are beefing up their already burgeoning lobby teams by hiring former Washington political operatives. Former Treasury advisors and legal counsels are sprinkled among the giant banks with compensation well north of $500,000 in most cases. Critics call the trend potentially inappropriate influence peddling.
    See Politico Article.

    ICBA’s Cam Fine likens the Wall Street lobbyists to a swarm of cicadas on Capitol Hill, and he encourages community bankers everywhere to make sure their voices are heard in Washington so Congress fully addresses TBTF. See Cam Fine’s Blog.

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    ICBA Hosts #TBTF Twitter Action Center

    ICBA’s new “End Too-Big-To-Fail” website now hosts a
    Twitter Action Center that provides relevant tweets on the issue in a pre-populated format. Community bankers who are logged in to their Twitter account can simply pick a tweet and click the "Tweet this!" link to access a pre-populated message in a Twitter pop-up box.

    Community bankers may also tweet their own thoughts using the #TBTF hashtag. To keep up with the latest news on too-big-to-fail, follow @ICBA. Visit the Twitter Action Center.

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    Congress Begins Markups of Farm Bills

    The Senate Agriculture Committee, by a 15-5 vote yesterday, passed a new farm bill, while the House Agriculture Committee started the markup process on its version of a farm bill today. CBAI and ICBA have urged lawmakers to oppose any expansion of the Farm Credit System lending authority and recommended support for enhancing crop and revenue insurance programs and USDA guaranteed lending programs.
    See ICBA Release. See Senate Farm Bill Summary. See House Farm Bill Summary. See New York Times Article.

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    OCC Provides Summary of Bulletins for First Quarter

    The Office of the Comptroller of the Currency (OCC), regulator for national banks and federal savings associations, has released a summary of OCC Bulletins and other supervisory and regulatory information issued during the first quarter of 2013.
    See OCC Summary.

    The following items were highlighted by the OCC for special attention:

    Advances for Taxes and Insurance - Examiners are finding instances where institutions are making advances for delinquent real estate taxes and insurance on residential real estate loans without appropriate monitoring or repayment programs in place. Advances for taxes and insurance may be necessary for institutions to protect their lien position and the condition of the property securing residential real estate loans whether the bank escrows for these costs or not. However, banks should ensure they have processes in place to identify the volume and nature of this activity. Bank files should document that borrowers have the capacity to repay these advances over a reasonable time frame (generally one year or less). Frequent advances for taxes and insurance, or a borrower’s inability to repay advances over a reasonable period of time may indicate the borrower has well-defined credit weaknesses. Bankers should follow the Uniform Retail Credit Classification and Account Management Policy (OCC Bulletin 2000-20) for the appropriate loan classification treatment. Examiners will consider the materiality of the bank’s activities when determining whether systems and practices are sufficient to properly account for the risk in this area.

    Cyber Attacks - The OCC is planning a teleconference for community bankers on Tuesday, June 11, 11:30am – 1:00pm EDT to discuss the evolving cyber landscape. The purpose of the call will be to increase awareness of the risks and discuss actions banks should consider to protect themselves and their customers in today’s environment. Registration is available now via BankNet, or by calling 1-800-775-7654 from 8:00 a.m. to 4:30 p.m. CDT.

    Transferring Large Data Files to OCC - On April 15, 2013, the OCC launched a new BankNet tool that permits all OCC-regulated institutions to send files of any size electronically to the OCC. Through BankNet, institutions have one access point to submit information rather than entering different OCC systems with different access points, user names, and passwords. With no limit on file size, the tool will eliminate the need for bankers to mail disks or split files into several parts to send. Automatic file encryption allows for secure and quick transmission. This tool is available on the Communication Center tab of the BankNet Homepage Toolbar. Currently, bankers may submit files only to their supervisory office/field office, to each of the four district legal offices, and to the Securities Division of the Law Department. New folders will continue to be added so that bankers can submit files to additional OCC departments. Please direct questions/comments to Debra Burke at debra.burke@occ.treas.gov or 202/649-6734.

    Directors Workshops - The 2013 Directors Workshop schedule, including location information and registration details, is now available on BankNet. Locations in our area where workshops will be held this year include Duluth, Milwaukee, Chicago, Lexington, and Fargo.

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    CBAI: QM Rule Should Exempt All Banks Under $10 Billion

    WASHINGTON — The Federal Housing Finance Agency announced Monday, May 6, 2013, that Fannie Mae and Freddie Mac must restrict future mortgage purchases to "qualified mortgage" loans.
    Read More.

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    KASASA Ad #5: “Hi, Allen”

    There’s a fundamental difference between the so-called “personal” service available at a megabank vs. genuine community bank service. Enter Allen. Kasasa’s “Hi Allen” radio spot illustrates how not only does his megabank treat him like any other number, even the personal service he does receive is simply to placate his growing distress. On the other hand, free Kasasa checking and savings accounts revolve entirely around the account holder, and not just with rewards people actually want. Rather Kasasa accounts are exclusively available at community banks – where people and communities truly come first.
    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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    Baker Market Update

    Compared with many of the recent headline-grabbing news stories, this week’s spate of economic statistics seem like cause for elation. No murder, no mayhem, just a slow leak in Ten Year prices to last week's yield of 1.90%.
    Read More.

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    ACT NOW: Free 30-Day Subscription to Bank Trends Ends June 1!

    Your FREE 30-day subscription to Bank Trends, CBSC’s Preferred Provider for community bank peer report and profitability analyses, ends June 1. If you have not taken advantage of your FREE subscription, there is still time.
    Click Here to start your subscription!

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    Bank Lending to Small Businesses Climbed in April

    According to an index published by Biz2Credit, lending by banks to small businesses increased in April. Loan approvals by banks with less than $10 billion in assets rose to 50.9% in April compared to 45.9% a year earlier.
    See AB Article.

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    CBAI Foundation Awards Statewide Winner

    At the recent CBAI Group 8 Meeting in Pekin, Ryan Feldmann, sponsored by Goodfield State Bank, received the first of four $1,000 checks in honor of his statewide award-winning essay.
    Read Ryan’s Essay.

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    New Classified Ads Added to CBAI’s Web Site

    Go to the
    CBAI Message Board to view recently posted classifieds.

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    Division of Banking Moves Chicago Offices to Thompson Center

    The Illinois Division of Banking has completed a move of its Chicago offices to the 9th floor of the James R. Thomson Center. The address of the new offices is 100 West Randolph Street, Chicago, IL 60601. All office phone numbers and email addresses remain unchanged. For more information, please contact the division at (312) 793-3000.

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    Advanced Commercial Lending Institute Scheduled for May 20-22

    Managing the commercial loan portfolio is extremely important for the overall health of a financial institution. Designed specifically for community bank commercial lenders, this three-day school is designed to provide the more experienced lenders with the tools necessary to ensure a quality loan portfolio from analyzing promising prospects or customers, to loan approval, to loan documentation, and finally to credit administration. Topics covered on day one include a review of key economic indicators; analyzing industry, business, and management risks; advanced ratio analysis; and loan structuring for short-term and long-term credits. Day two discusses analyzing borrowing causes, cash flow analysis for commercial and industrial loans and commercial real estate; financial forecasting and sensitivity analysis; and calculating sustainable growth and break-even points. Analyzing specialized credits, managing the commercial lending relationship, loan documentation, and a review of major credit administration topics are covered on the third day. Jeffery Johnson, president and founder of Bankers Insight Group, Atlanta, GA, leads this institute, held at CBAI headquarters in Springfield.
    See More.

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    Call Report Preparation to be Held May 22 & 23

    In the ever-changing regulatory and accounting world the educational requirements for Call-Report preparers is more intense than ever. Preparers must remain current on new accounting pronouncements and their implementation in addition to the additional reporting requirements of the regulatory agencies as part of the Call Report.
    This session, held at the Northfield Center in Springfield, includes detailed discussions of each schedule as well as real-life challenges of completing an accurate Call Report. The session also includes case studies as well as sufficient time for questions and answers. The course is intended for all levels of preparers, experienced and new. The course validates questions that experienced preparers may have and begin a base of knowledge for the new preparers of the report. Annual training is highly recommended by bank regulators. Neil Falken, partner-in-charge of CliftonLarsonAllen's Minneapolis Financial Institutions Group, leads this program.

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    Ag Lenders’ Conference Set for May 30

    This jammed-packed day takes a look at a variety of issues facing agricultural lenders today. Attend
    CBAI’s 2013 Ag Lenders’ Conference at the Crowne Plaza in Springfield to develop the skills and tools to better understand the issues affecting your farm and agribusiness customers and to meet their credit needs. A mini-expo featuring the latest in products and services for ag lenders also highlights the day. Topics and speakers include Market to Market host Mike Pearson on “What’s Driving Agriculture in the Year Ahead?;” Leigh Lamb, regional marketing manager at Diversified Services in Springfield, discusses “Expect More: Managing Ag Risk in 2013;” Steve Turner, chair of the Financial Trans-actions Section and the Bankruptcy and Financial Dispute Resolution Group of Baird Holm, LLP, Omaha, NE, examines “Agricultural Lending: Managing Third Party Risks: What You Don’t Know or Didn’t Plan for Can Be Bad;” and Dr. Barry L. Flinchbaugh, professor of Agricultural Economics at Kansas State University, Manhattan, presents “What’s Ahead for the U.S. Economy and Agriculture?”

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    CBAI Convention Early-Bird Pricing Deadline 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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