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       June 18, 2008 Graphic
Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois

  • FDIC Releases State Profiles
  • Foundation Scholarship Winner Announced
  • U.S. Treasury Introduces Direct Express® Debit Card for Social Security Payments
  • OCC Survey Finds Bank Underwriting Standards Tighten
  • FDIC: Guidance for Managing Third-Party Risk
  • The CBAI Community Bankers School (CBS)
  • Early Bird Convention Registration Deadline June 30
  • Midwest Office Supply Acquires Haley Office Equipment
  • CBAI Members are Invited to Attend an Asset-Liability Management Seminar and Golf Outing
  • Harland Clarke Marketing Services Launches Solution to Help Financial Institutions Acquire New Accounts
  • Mortgage Partnership Finance® Program Update
  • On-Line Briefing: Why Isn't My Bank Culture What I Envisioned...
  • Closing Comment

  • FDIC Releases State Profiles

    First Quarter 2008 FDIC State Profiles are now available on-line. The FDIC State Profiles are formatted as a quarterly data sheet summation of economic and banking conditions for all 50 states, Puerto Rico, and the Virgin Islands. They are available in both HTML and PDF formats. The FDIC also recently released the First Quarter 2008 Quarterly Banking Profile (QBP), which provides aggregate financial results for all FDIC-insured institutions. News release.

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    Foundation Scholarship Winner Announced

    The 22nd Annual Scholarship Program conducted by the CBAI Foundation for Community Banking motivated 143 high-school seniors representing 73 CBAI member banks to ponder the essay question, “What Sets Community Banks Apart from the Large Banks?” The first-place scholarship of $1,000 per year for up to four years of higher education was awarded to JEFFREY O’BRIEN, a senior at Lincoln-Way East High School in Frankfort and sponsored by PALOS BANK AND TRUST, PALOS HEIGHTS (CBAI Group 1). His school receives a check for an additional $500. Judges also awarded $1,000 each to 11 other students. For a complete list of the winners, those awarded honorable mentions,
    click here. To read the winning essay, click here.

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    U.S. Treasury Introduces Direct Express®
    Debit Card for Social Security Payments

    The U.S. Department of the Treasury's Financial Management Service (FMS) has announced that a prepaid debit card for Social Security and Supplemental Security Income (SSI) is now available. The Direct Express® Debit MasterCard® card – designed as a safe, convenient alternative to paper checks for people without bank accounts - will be rolled out nationwide this summer. The Direct Express card provides another option for federal beneficiaries who do not have a bank account, but are looking for a no-cost or low-cost alternative to using check cashing facilities and carrying large amounts of cash. Cardholders can make purchases, pay bills and get cash at thousands of ATMs and retail locations. Although there are fees for a limited number of optional transactions and services, most services are offered free of charge. For more information, read Treasury's press release
    here. If you have additional questions, call (952) 346-6055.

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    OCC Survey Finds Bank Underwriting Standards Tighten

    The Office of the Comptroller of the Currency has released its 14th annual Survey of Credit Underwriting Practices and reported that commercial and retail underwriting standards tightened after four consecutive years of eased underwriting standards. The 2008 survey included examiner observations and assessments of credit underwriting standards at the largest national banks. The survey reflected that the disruption in financial markets that began in 2007 led to an abrupt change in risk appetite of the majority of the banks and a renewed focus on fundamental credit principles by bank lenders.

    Examiner assessments found that risk in both the commercial and retail portfolios increased over the past year and they expect portfolio risk to continue to increase over the coming year. Key factors that contributed to the rise in product and portfolio credit risk were the weakening economy, rising energy costs, turbulence in the secondary credit markets, the downturn in the housing market, and the anticipated impact of relaxed underwriting standards over the past few years on payment performance.

    The 2008 survey included the 62 largest national banks and covered the 12-month period ending March 31, 2008. The aggregate total of loans was $3.7 trillion, which represented over 83 percent of all outstanding loans in the national banking system.

    Click here to review the survey.

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    FDIC: Guidance for Managing Third-Party Risk

    An institution's board of directors and senior management are ultimately responsible for managing activities conducted through third-party relationships, and identifying and controlling the risks arising from such relationships, to the same extent as if the activity were handled within the institution. This guidance includes a description of potential risks arising from third-party relationships, and provides information on identifying and managing risks associated with financial institutions' business relationships with third parties. This guidance applies to any of an institution's third-party arrangements, and is intended to be used as a resource for implementing a third-party risk management program. For more information,
    click here.

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    Registrations Available for the CBAI Community Bankers School (CBS)

    Consisting of two-one week sessions over a two-year period at Illinois Wesleyan University in Bloomington, the Community Bankers School features a nationally recognized faculty, an updated curriculum, covering timely topics. Topics for Class I include compliance, accounting, commercial and consumer lending, bank security, auditing, investments and technology; while Class II focuses on management. The benefits extend beyond the classroom with outside case studies, an invaluable student notebook, and networking with peer, instructors, and senior bankers. For curriculum, faculty, and registration details,
    click here.

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    Early Bird Convention Registration Deadline June 30

    Register by June 30, 2008 for CBAI’s 34th Annual Convention and Expo to be eligible for prizes and a special discount on registration fees. Entitled “Hometown Heroes,” the convention is scheduled for September 11-13 at the Crowne Plaza in Springfield. It features dynamic speakers who offer solutions to your greatest challenges, the largest-ever 109-booth trade show so you can compare products and save time by not having to arrange appointments with each vendor, and exciting social happenings in order to relax and enjoy the company of old friends and new colleagues.
    Click here for prize information and here for convention details and to register.

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    Midwest Office Supply Acquires Haley Office Equipment

    CBSC-endorsed Midwest Office Supply
    announced that it has acquired the office supply division of Haley Office Equipment in Marion, Illinois.

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    CBAI Members are Invited to Attend an Asset-Liability Management Seminar and Golf Outing

    Illinois community bankers face an increasingly challenging financial and economic environment. The subprime fiasco, recession fears, and shifting Fed policy have focused attention once again on sound investment strategies. This seminar will navigate the turmoil to detect discrepancies across bond market sectors as participants re-interpret and re-price risk. Professionals from The Baker Group will discuss specific portfolio management strategies that make sense in light of today’s state of affairs. Following the seminar, lunch will be served at 11:30am followed by a golf outing at Illini Country Club in Springfield. All CBAI members are welcome.
    Click here for more details and registration information.

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    Harland Clarke Marketing Services Launches Solution to Help Financial Institutions Acquire New Accounts

    Financial institutions that want to acquire and grow their core deposit accounts can now get help from one of the most trusted names in the industry. Acquisition Accelerator™ is the most recent intelligence-based solution from Harland Clarke Marketing Services. To review press release,
    click here now.

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    Mortgage Partnership Finance® Program loan delivery for FHLBC participants extended through October 31, 2008

    The Federal Home Loan Bank of Chicago extended the deadline for purchase of Mortgage Partnership Finance loans to Oct. 31. The original cutoff date was to be July 31. Other FHLBanks have agreed to buy Chicago Bank loans. Meanwhile, Standard and Poor's Rating Services removed the Bank from CreditWatch and its outlook was upgraded to stable. The long-term counterparty credit rating was downgraded to AA. To review letter to members,
    click here.

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    On-Line Briefing: Why Isn't My Bank Culture What I Envisioned...And How Do I Change It?

    National surveys indicate that almost all community bank CEOs agree, retaining key employees is critically important to the continued success of the bank. Because that is considered an essential element to maintaining a prosperous community banking industry, CBSC and CBIS partnered with VisionLink For Banks (formerly The Executive Compensation Institute - ECI) to deliver a series of monthly compensation strategy webinars. These strategies have proven to increase staff productivity and have led to improved financial results for community banks. For more information and to register,
    click here.

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    Closing Comment

    "Today we can't eat, sleep, drink, buy eyeglasses, insurance or a car – or mow the lawn, drink a beer, cook a steak, ride a bike, or put raw eggs in a Caesar salad – without some federal regulation hovering over us. Is it any wonder that American workers, industries, school teachers, churches, veterans, medical personnel, retired people, environmentalists, social workers, even state governments feel they should have a presence in Washington to protect them?" - Washington operative Tom C. Korologos, from an opinion piece he wrote in the May 30 Wall Street Journal.

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    › Two-for-One Sale

    › Operations, Payments, and Funds Management Boot Camp

    › Branch Managers Workshop

    › Analyzing Cash Flow from Income-Producing or Rental Real Estate

    › The Community Bankers School

    › Identify Theft Protection: Are You in Compliance?


    › Opening Accounts for Limited-Liability Companies

    › IRA Audit Issues for Sub S Banks: What to Do When You Get the Notice

    › Conduct a Risk-Based Compliance Audit

    › Fedline Advantage Monitoring & Control Guidelines

    › Interpreting Economic & Agriculture Indicators in Portfolio Management

    › Opening Personal Accounts

    › Title Insurance Issues

    › Granting, Documenting, & Monitoring CTR Exemptions

    › Advanced Commercial Loan Documentation

    › Conducting an Independent BSA Audit

    › Sub S Trusts: Use, Management and Problems with QSST, ESBT and Other Unique Sub S Shareholders

    › Technology Contract Negotiation


    BKD Award Nominations Deadline, 6/23

    CBAI's 34th Annual Convention:
    "Hometown Heroes," Crowne Plaza Hotel, Springfield 9/11 - 9/13





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