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 20, 2009 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • Victory! Deposit Insurance Measure Becomes Law
  • FDIC May Change Assessment Method to Reduce Hit to Small Banks!
  • CBAI Banker Delegation Lobbies Congressmen and Regulators
  • Growing Opportunities: CBAI Ag Lenders’ Conference Nears
  • Baker Market Update
  • SBA Announces New Loan Product
  • Congress Enacts Credit Card Reforms
  • BKD Award Nominations Deadline Extended to June 19
  • Special Offer to CBAI Members: Unlimited Access to American Banker
  • What is DLP and Why is it Important to My Bank?
  • Prepare for RESPA Changes with Wolters Kluwer Webinars
  • List of Construction Industries Ranked by Net Profit Margins
  • Promote Electronic Payments during Older Americans Month
  • Former FDIC Chairman Seidman Has Died


  • Victory! Deposit Insurance Measure Becomes Law

    Thanks to thousands of community bankers who contacted elected officials, S. 896 was
    approved by Congress on Tuesday, May 19, and was signed into law by President Obama today. The measure increases the Treasury’s borrowing authority with Treasury from $30 billion to $100 billion, with emergency funding up to $500 billion; and extends the $250,000 deposit insurance limit to the end of 2013. Now the FDIC will be able to reduce the proposed special assessment which was originally set at 20 cents per $100 of domestic deposits, a huge hit to banks’ bottom lines.

    CBAI and ICBA have intensely lobbied to reduce or eliminate the special assessment for community banks which did not cause the financial crisis. Excessive risk-taking by the giant commercial and investment banks led to the near collapse of the U.S. financial system, and CBAI contends that they should replenish the deposit insurance fund.

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    FDIC May Change Assessment Method to Reduce Hit to Small Banks!

    Another major victory for community banks may happen on Friday, May 22, when the FDIC board is scheduled to vote on the special assessment. CBAI has repeatedly urged the FDIC to base the special assessment on total assets less capital rather than on domestic deposits (see
    “CBAI’s Case for Changing the FDIC Special Assessment Method”). If enacted, the giant banks will pay a larger amount of the assessment, and community banks will pay considerably less. A CBAI banker delegation met with FDIC officials last week in Washington to urge changing the assessment method. Reuters and the Wall Street Journal reported that the FDIC may reduce the assessment to 5 or 6 basis points on total assets rather than domestic deposits.

    ICBA and state community banking associations, including CBAI, are the only organizations calling for the change in the assessment method. Neither the ABA nor the IBA have supported this proposal. Community bankers can and do make a difference. Washington is listening!

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    CBAI Banker Delegation Lobbies Congressmen and Regulators

    Another Major Victory for Community Banks May Happen Soon Thanks to Effective Grassroots Lobbying

    On May 12-13, 2009, a delegation of more than 30 Illinois community bankers participated in CBAI’s 27th Annual Washington Visitation and met with regulators and elected officials on key banking issues. The Visitation was held during ICBA’s Policy Summit which attracted nearly 800 community bankers from throughout the United States. For a full report on the Visitation, please
    click here.

    Growing Opportunities: CBAI Ag Lenders’ Conference Nears

    CBAI is pleased to offer the annual “Ag Lenders’ Conference” on June 3 & 4, 2009. The current recession is frequently compared to the large downturns of the 1970s and 1980s, characterized by a deteriorating housing market, large-scale disruptions in the financial services industry, and plummeting consumer and business confidence. How these national and global factors are impacting Illinois agriculture, and how agricultural lenders should react, is the focus of CBAI’s 2009 Agricultural Lenders’ Conference. Designed by CBAI’s Ag Lenders’ Subcommittee, this two-day conference helps develop new skills and tools to better understand the issues affecting farm and agribusiness customers and to meet their credit needs. This year’s conference includes a cocktail reception at the conclusion of the June 3rd agenda. Open to all participants, (lenders, guests, speakers, sponsors, and exhibitors), the reception provides an opportunity to discuss innovative solutions for these challenging times.

    For information on topics and speakers and to register, please
    click here today!

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    Baker Market Update

    Treasuries rallied last week as the Fed stepped up purchases in government debt. The S&P 500 was down about 5 percent last week as reports from both Chrysler and GM indicated a combined closing of 1,889 dealerships nationwide. Wholesale prices prices for April rose slightly more than economists anticipated.
    More...

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    SBA Announces New Loan Product

    Beginning June 15, the Small Business Administration will offer a new 100 percent guaranteed loan program designed to assist struggling businesses. The SBA will guarantee loans of up to $35,000 for established, viable, for-profit small businesses that need short-term help to make their principal and interest payments on existing qualified debt. These deferred payment loans are interest free to the borrower and carry no SBA fees. They can be used to make payments on small business debt, mortgages, lines of credit, capital leases, credit card obligations, and notes payable to vendors, suppliers, and utilities. Repayment will begin 12 months after the final disbursement over a five-year period.
    More information.

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    Congress Enacts Credit Card Reforms

    Despite concerns expressed by financial organizations that the credit card legislation would lead to less choice, increased costs, and higher interest rates for consumers, Congress sent to President Obama today a bill that will make it tougher for credit card issuers to raise fees and interest rates.

    The good news is that the measure does not include an interchange amendment pushed by the retailers that would have reduced the income of community bank debit and credit card programs. CBAI strongly opposed this provision. Instead, the General Accountability Office will study the interchange issue.
    More information.

    The legislation, which will take effect next February, adds new burdens on community banks that issue cards to college students and creates a new government entity called the Small Business Information Security Task Force which will address the information technology security needs of small businesses to help them prevent the loss of credit card data

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    BKD Award Nominations Deadline Extended to June 19

    What makes your bank special? The
    BKD Award annually recognizes a high-performing community bank which has gone beyond the ordinary — from innovative customer services to premier examples of corporate citizenship. The winner of the 2008 BKD Award was First National Bank of Dieterich which organized 30 high school students to interview 21 World War Two veterans and write essays on the veterans’ insights into their service during the war. A book was then compiled, entitled, “Teutopolis – Sigel’s Greatest Generation.” Other past winners have come to the aid of their communities in various ways; another developed a clever bank product. Send CBAI your bank’s entry today!

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    Special Offer to CBAI Members: Unlimited Access to American Banker

    GREAT NEWS --
    Community Bankers Association of Illinois has partnered with American Banker, the profession's leading information resource, to provide all member banks with discounted
    subscriptions - an introductory online/digital edition price of $295 for new subscribers!

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    What is DLP and Why is it Important to My Bank?

    In January 2009, Heartland Payment Systems
    announced that hackers had managed to install a sniffer program in its systems that could observe card data. The hackers were able to find a vulnerability that the PCI compliance audits never spotted.

    After revealing the breach, Heartland found other security flaws that had also gone unnoticed in the audits. So they began using an application that scans a company’s systems for improperly stored data. This assessment discovered numerous pockets of sensitive information, including card account details that employees had stored on their systems to help them do their jobs.

    This assessment application is known as data leak prevention, or “DLP”. DLP systems identify, monitor, and protect data in use, data in motion, and data at rest or stored. The systems are designed to prevent the unauthorized, unintentional, or malicious use and transmission of confidential information.

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    Prepare for RESPA Changes with Wolters Kluwer Webinars

    On November 17, 2008, The Department of Housing and Urban Development (HUD) issued a
    final rule under the Real Estate Settlement Procedures Act (RESPA) to simplify and improve the process of obtaining home mortgages and to reduce settlement costs for consumers. As part of this change, lenders will be required to use a new Good Faith Estimate (GFE), and revised HUD-1 or HUD-1A Settlement Statement by January 1, 2010.

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    List of Construction Industries Ranked by Net Profit Margins

    Sageworks, a preferred service provider of Community BancService Corporation (CBSC), has just released a
    ranking showing how different construction sectors stack up by net profit margins over the last 12 months. Utility System Contractors, which build utility infrastructure such as distribution lines for water, sewer, and power, have the highest net profit margins in the industry. In contrast, homebuilders have had the lowest; with net profit margins averaging 2.6%, they are taking home less than half of what other types of contractors would on a similarly sized project.

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    Promote Electronic Payments during Older Americans Month

    As Americans focus on their finances, a new nationwide survey sponsored by the U.S. Department of the Treasury reveals approximately nine out of 10 Americans believe direct deposit gives them more control over their money. Yet, millions of senior citizens and their caregivers still rely on paper checks for Social Security and other federal benefit payments, leaving their money vulnerable to delays and financial crimes.

    In recognition of
    Older Americans Month in May, organizations across the country are encouraging Americans who get federal benefit checks for themselves or a loved one to switch to a safer, easier alternative – direct deposit or the Direct Express® Debit MasterCard® card.

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    Former FDIC Chairman Seidman Has Died

    Many people know that Bill Seidman, as the chairman of the FDIC, was instrumental in mending the banking profession during the late ‘80s and early ‘90s. He was also an advisor to Sageworks, Inc., a preferred services provider of Community BancService Corp., Inc. (CBSC). To read the testimonial from Sageworks’ CEO and to access a video about Seidman,
    click here CBAI leaders met with Seidman on several occasions when he served as FDIC Chairman. CBAI President Bob Wingert noted, "Bill Seidman was a very approachable and knowledgeable FDIC Chairman who openly supported community banking."

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    CBAI

           

    CBAI's PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 6/30/09



    TELEPHONE/WEBCASTS THROUGH 6/30/09



    OTHER EVENTS THROUGH 6/30/09


    6/1 CBAI Group 5 Meeting, Pontiac Elks Club

    6/8 CBAI Group 7 Meeting, Spring Lake Country Club, Quincy

    6/11 CBAI Group 9 Meeting, Urbana Country Club

    6/15 CBAI Group 4 Meeting, Freeport Country Club

    6/16 CBAI Groups 1, 2 & 3 Meeting, Arrowhead Golf Course, Wheaton

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