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 18, 2011 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • CBAI's 29th Annual Washington Visitation a Success!
  • SBLF Term Sheets Out for S-Corps and Mutuals
  • Community Bankers First to Review TILA/RESPA Disclosure Prototypes
  • Community Banks Superior to Big Banks on Delinquencies and Foreclosures
  • CBAI Comments on Regulation Q Repeal - Interest on Demand Deposits
  • Bullard Says Fed Rates on Hold Until Late 2011
  • ICBA’s Chairman and President Say Community Banks Have Bright Future
  • Bank Size Limits Proposed to Prevent Systemic Crisis
  • Illinois Planting Progress Mixed
  • Baker Market Update
  • FCA Modifies Final Rule on FDIC Loan Purchases
  • CBAI Announces Break-Out Sessions for 37th Annual Convention & Expo
  • CSC Offers FREE UCC Webinars on Wednesdays During May
  • Loan Review: Today’s Expectations Set for May 24-25 and June 8-9, 2011
  • Kick-Butt Accountability: Four Power Strategies to Shift from Excuses to No-Fail Results
  • Recovery Seen in Rising Use of Credit Cards
  • Solutions for Generating Income Despite Regulatory Headwinds
  • Get the Power of Direct Marketing at the Click of a Mouse
  • Check Out the CBAI Classifieds Section for Recent Postings
  • CBAI Ag Lender’s Conference Scheduled for June 1 in Springfield
  • Community Bank Trust Conference Scheduled for June 9 in Springfield


  • CBAI's 29th Annual Washington Visitation a Success!

    Nearly 50 community bankers, spouses, and guests from across Illinois attended CBAI's 29th Annual Washington Visitation on May 1-4, 2011. The timing of this year’s trip provided our delegation the perfect opportunity to aggressively lobby for the delay and study of the harmful Federal Reserve debit interchange price fixing.

    This year's Visitation again coincided with the Independent Community Bankers of America (ICBA) Washington Policy Summit, which included nearly 1,000 members of the community banking profession from across the country. CBAI members gathered for a traditional Welcome Dinner which was held this year at Smith & Wollensky.
    Read More.

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    SBLF Term Sheets Out for S-Corps and Mutuals

    Treasury released Small Business Lending Fund
    application forms, term sheets and guidance for Subchapter S corporations and mutual institutions. ICBA has led the months-long effort to secure the release of SBLF resources for S-corps and mutuals, including in a letter last month to Treasury Secretary Timothy Geithner. The $30 billion SBLF was established to provide Tier 1 capital to interested community banks to help support robust small-business lending. The program was signed into law on Sept. 27, 2010. Treasury had previously issued guidance for certain Subchapter C corporations, which have until this Monday to apply for the program. Read More from Treasury.

    ICBA Schedules Audio Conference This Friday on SBLF Terms

    ICBA and Treasury officials will hold an audio conference at 11:00 a.m. (Central) this Friday (May 20) to discuss the SBLF terms for S-Corporations and mutual institutions. To register, please Click Here.

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    Community Bankers First to Review TILA/RESPA Disclosure Prototypes

    Earlier this week community bankers and ICBA staff met with representatives of the Consumer Financial Protection Bureau to review for the first time two prototype forms that combine Truth-in-Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) disclosures. The prototypes can be viewed on the
    CFPB website.

    A CBAI delegation of community bankers met recently with CFPB acting director Elizabeth Warren in Washington and expressed strong support for simplifying and combining the TILA and RESPA disclosures. In addition to receiving comments and reactions from financial institutions, the CFPB will conduct five months of consumer testing.

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    Community Banks Superior to Big Banks on Delinquencies and Foreclosures

    A recent FDIC
    report on foreclosures noted that “Community banks fared far better than larger institutions in terms of delinquency rates on residential mortgage loans and have undertaken far fewer foreclosures.” The findings verify what CBAI has emphasized to lawmakers and public officials for years - that the relationship banking model employed by community banks best serves consumers.

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    CBAI Comments on Regulation Q Repeal - Interest on Demand Deposits

    CBAI submitted a comment letter to the Federal Reserve urging the Fed to indefinitely postpone the recision of Regulation Q until the Fed can study the impact on community banks, their customers and communities, and to evaluate alternative solutions.

    The recision of Reg Q, which would authorize payment of interest on commercial checking accounts, was inserted in the Dodd Frank Wall Street Reform Act at the 11th hour and not debated or heard by House and Senate Committees. CBAI is concerned that the repeal of Reg Q could have devastating effects on the safety and soundness of community banks.
    Read CBAI's Comment Letter.

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    Bullard Says Fed Rates on Hold Until Late 2011

    James Bullard, president of the Federal Reserve Bank of St. Louis, stated in an interview today that the Federal Reserve will likely keep rates unchanged for several more months as declining inflation expectations have reduced the need to begin withdrawing record stimulus.
    See Bloomberg Article.

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    ICBA’s Chairman and President Say Community Banks Have Bright Future

    ICBA Chairman Sal Marranca and ICBA President Cam Fine respond strongly to the pundits and prognosticators who predict a big decline in the number community banks. They see opportunity and promise for community banks and the time-tested relationship banking model. CBAI wholeheartedly agrees.
    See Marranca Article. See Fine Article.

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    Bank Size Limits Proposed to Prevent Systemic Crisis

    In a recent article in the Yale Law Journal, corporate finance professor Jonathan Macey recommends that the mega banks be broken up because the government cannot credibly commit not to bail out the too-big-to-fail banks in a crisis. He concludes that the only way the government can commit not to bail out failed mega banks is to make them smaller before the crisis hits. His proposed limit is 5 percent of the FDIC insurance fund.
    See Complete Article.

    CBAI and ICBA are urging Congress to downsize systemically dangerous banks over a five-year period including implementation of the separation between commercial and investment banking, establishing a prefunded resolution fund for troubled mega banks, and strengthening antitrust laws.

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    Illinois Planting Progress Mixed

    The latest weekly planting progress report revealed that many farmers in northern and western Illinois have completed corn planting and have begun soybean planting, while portions of eastern and southern remained too wet.
    See Report.

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    Baker Market Update

    The cost of living rose 0.4% in April, matching economists’ expectations, due primarily to the increase in food and energy costs. This figure was a slightly slower increase than March’s 0.5% advance.
    Read More.

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    FCA Modifies Final Rule on FDIC Loan Purchases

    The Farm Credit Administration board voted Thursday to approve a final rule allowing Farm Credit System lenders to purchase loans of failed banks from the FDIC. ICBA argued against the proposal, noting that Congress did not grant authority for FCA to adopt the rule, which would unfairly allow a government-sponsored enterprise to underbid community banks. ICBA also argued that FCS lenders should not be allowed to purchase ineligible nonagricultural loans, as originally proposed. FCA agreed to amend the final rule by removing authority for FCS to purchase ineligible loans and establishing a reporting requirement regarding purchased loans. In response to a question from the FCA chairman on whether the proposal was intended to fill a gap, staff stated that the rule would allow FCS lenders to purchase agricultural loans when there is a need, as determined by the FDIC. ICBA sent a
    follow-up letter to the FCA board urging that the final rule, when published, ensure that FCS lenders are not involved in the initial bidding process, but only after commercial banks have opted not to bid on any remaining loans.

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    CBAI Announces Break-Out Sessions for 37th Annual Convention

    CBAI's
    break-out sessions have been selected for the 37th Annual Convention & Expo. Scheduled for September 22-24, 2011, at the Hyatt Regency and Frontier Airlines Center in Milwaukee, WI, this year’s convention features 24 break-out sessions presented by expert speakers on the hottest topics for community bankers. Look for more details soon on this year’s convention, “Fueled by Loyalty.” You won’t want to miss it!

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    CSC Offers FREE UCC Webinars on Wednesdays During May

    Corporation Services Company (CSC), a CBSC Preferred Provider, will provide a FREE UCC webinar each Monday during May. Each session will cover a different set of UCC-related topics, such as tips to avoid common filing errors and monitoring a UCC portfolio. For a complete list of topics and to register, please
    Click Here.

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    Loan Review: Today’s Expectations Set for May 24-25 and June 8-9, 2011

    CBAI is pleased to offer a two-day seminar,
    “Loan Review: Today’s Expectations,” in Springfield on May 24-25 and in Lisle on June 8-9. Day one discusses the recent Interagency Policy Statement on appraisals and the need for new appraisals. It also addresses the regulatory guidance relating to your institution's loan review program, commercial real estate workouts, classification of assets based on today’s regulatory environment, and much more. Day two addresses the issues relating to the adequacy of loan and lease losses (ALLL), focusing on the financial regulatory terms of the FAS 114 loans and FAS 5 pools of loans. It also focuses on development of supporting documentation of the ALLL analysis. Participants can attend either seminar day or both days at a reduced rate. This seminar should be attended by presidents, CEOs, senior loan officers, auditors, and loan-review personnel. Leading the seminar in Springfield is S. Wayne Linder, Young & Associates, Inc. Leading the seminar in Lisle is Rob Grope, Young & Associates, Inc.

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    Kick-Butt Accountability: Four Power Strategies to Shift from Excuses to No-Fail Results
    By Roxanne Emmerich

    What would happen if everyone in your organization did their jobs — and did the RIGHT things that met your growth and profit goals? What if they finished projects on time and accurately? Met their sales and referral goals? Delivered on your core deposit goals? And what if every branch hit every goal in every market? Here are four power strategies to begin your transformation to a culture of accountability. Emmerich was the keynote speaker at CBAI’s fifth annual Community Bank Marketing Conference held May 12, 2011, in Springfield.
    Read Article.

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    Recovery Seen in Rising Use of Credit Cards

    Since the United States emerged from the
    Great Recession, economists have been watching for signs that Americans are spending again. This year, evidence is building that they are — with every swipe of their credit cards. The most recent data show that revolving credit was up 2.9 percent in March compared to February, only the second monthly increase since late 2008.

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    Solutions for Generating Income Despite Regulatory Headwinds

    Part 1 of 3

    In a three-part series Harland Clarke is offering solutions to generate revenues despite the harsh regulatory climate. Given the significant revenue impact of Regulation E on overdraft income and the potential effects of the Durbin Amendment on interchange income, non-interest income is suffering. A recent Raddon report indicates financial institutions can expect an annual revenue decline of $52 per debit cardholder in estimated annual interchange income as a result of the Durbin Amendment. Harland Clarke recommends focusing on a multi-solution approach to grow non-interest income.
    See Details.

    Part 2 of 3

    With some traditional sources of revenue waning, the battle for financial institutions to grow net income is intensifying — and a multi-pronged approach that includes solutions for both growing income and decreasing expenses is necessary for success. This Strategy Update focuses on how your financial institution can grow interest income. Part 3 will address ways to decrease expenses.

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    Get the Power of Direct Marketing at the Click of a Mouse
    Get access to a full-service creative agency, right at your fingertips.

    With
    CBAI On-Demand Marketing, you can build your own winning direct mail campaign in minutes. Just select a market-tested creative template, personalize it, and choose the target audience for your mail list. We handle the rest!

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    Check Out the CBAI Classifieds Section for Recent Postings

    To access new postings,
    Click Here.
    To post a classified, send your announcement to cbaicom@cbai.com.

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    CBAI Ag Lender’s Conference Scheduled for June 1 in Springfield

    This jammed-packed day takes a look at a variety of issues facing agricultural lenders including the impact of increasing land values on farmer financial ratios, repayment capacity, sensitivity, and break-even analysis for the whole farm. The political make-up of Washington, D.C. has again changed. Discussion will include the anticipated impact on the Farm Bill, energy, climate change, agricultural productivity gap, and “Obesity and the Farm Bill.” Attend
    CBAI’s 2011 Agricultural Lenders’ Conference to develop the skills and tools to better understand the issues affecting our 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. Leading this conference are Dr. Freddie Barnard, Purdue University; Todd Classen, WebEquity Solutions; Brian Basting, Advance Trading, Inc.; and Barry Flinchbaugh, Kansas State University.

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    Community Bank Trust Conference Scheduled for June 9 in Springfield

    This one-day conference features the following sessions: “Types of Trust Accounts and Virtual Representation (Non-Judicial Settlement) Agreements;” “Illinois Power of Attorney Act — A Summary of Changes in the New Act Effective July 21, 2011;” “The New Estate, Gift, and Generation-Skipping Tax Law;” and “What's New in Estate Planning.” The session also includes a regulators’ panel with participants Scott Clarke, Illinois Department of Financial and Professional Regulation, Springfield; Paul Miedema, Office of the Comptroller of the Currency, Springfield; and Barbara Schmidt, Federal Deposit Insurance Corporation, Chicago. Other presenters include Mary Corrigan & Gregory Norwell, Howard & Howard Attorneys, PLLC; Jim Lestikow, Hinshaw & Culbertson, LLP; and Jim Burmeister, National Institute for Consumer Education.

    For more information and to register, please
    click here.

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    CBAI
    PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 6/30/2011


    TELEPHONE/WEBCASTS THROUGH 6/30/2011


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