Connected To Community Banking!
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                                    June 20, 2018

Graphic
Graphic
Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • ICBA Calls for Swift Implementation of Regulatory Relief Law
  • Senate Ag Committee Passes Farm Bill
  • CBAI and ICBA Oppose Plan to Ease Megabank Capital Rules
  • Fed Approves Rule Limiting Megabank Counterparty Limits
  • CBAI’s NEWS FROM THE FRONT 6/12/18
  • Jelena McWilliams Takes the Helm at FDIC
  • Former Comptroller Touts Sheltered Harbor Collaboration
  • CBAI Exclusively Endorses David Pirsein and Michael Steelman for Re-Election to FHLB Board
  • ICBA Builds Bridges for the Next Generation of Community Banks
  • Results of the 2018 CBAI Compensation Survey Now Available
  • CBAI Selects Econocheck as Preferred Service Provider for Packaged Checking
  • A Five-Year Partnership, 15 Years in the Making
  • Investment News from THE BAKER GROUP
  • Abracadabra! It's Auction Time!- Donate to the Community BancPac Auction Today!!
  • Mortgage Performance Unchanged in First Quarter
  • St. Louis Fed: U.S. Economic Growth Appears Solid This Year
  • FTC Offers Guide to Help Small Businesses Stop Scams
  • CBAI LEGAL: Condo Foreclosures and Delinquent Assessments Examined
  • CBIS: Wage and Hour Settlements Provide Cautionary Tale for Community Bankers
  • Register by June 30 to Receive Early-Bird Pricing for CBAI’s 44th Annual Convention and Be Eligible for Prize Drawings
  • Mitigating Risk in Trust Account Administration Set for June 26
  • Collections & Bankruptcy Slated for June 27 & 28
  • Community Bankers School to be Held July 15-20


  • ICBA Calls for Swift Implementation of Regulatory Relief Law

    Last week ICBA called on federal regulators to quickly issue regulations implementing the bipartisan Economic Growth, Regulatory Relief and Consumer Protection Act. ICBA noted in letters to the prudential agencies and Bureau of Consumer Financial Protection that the law contains numerous regulatory relief provisions that will help community banks expand access to credit and foster economic growth.

    Many provisions of the ICBA Plan for Prosperity-inspired law, which is fully supported by CBAI, can be quickly enacted by simply revising existing rules such as the provisions offering “qualified mortgage” and Home Mortgage Disclosure Act relief, implementing Volcker Rule and escrow exemptions, expanding access to the 18-month exam cycle and Small Bank Holding Company Policy Statement, and providing for a short-form call report in two quarters of the year.

    ICBA and CBAI will continue working with policymakers on the swift implementation of the law as part of the ongoing push for comprehensive regulatory relief. Read Letter to Regulators. Read Letter to CFPB. Read ICBA Release. Access Resource Page.

    Back to top


    Senate Ag Committee Passes Farm Bill

    Last week the U.S. Senate Agricultural Committee approved the Agriculture Improvement Act of 2018 (S. 3042) on a vote 20-1. The measure, which is supported by CBAI and ICBA, now goes to the full Senate.

    ICBA President and CEO Rebeca Romero Rainey issued the following statement on the Committee’s action: “Today’s 20-1 vote to pass the farm bill out of the Senate Agriculture Committee should send a strong message to the full Senate to quickly adopt this bipartisan farm bill, which is so important to America’s farmers, ranchers, lenders and other rural citizens.

    “The bipartisan vote keeps the process of enacting a new farm bill this year moving forward… Farmers, ranchers and their lenders need the certainty, predictability and income protections that a five-year farm bill will provide as they struggle through the current era of very low commodity prices, with net farm income down by more than 50 percent since 2013.

    The bill maintains commodity price protections and a strong crop insurance program, and it increases guaranteed farm loan limits to $1.75 million, up from the current $1.39 million level. See ICBA’s Farm Bill Infographic. Read White Paper. Read Committee Release.

    Back to top


    CBAI and ICBA Oppose Plan to Ease Megabank Capital Rules

    A recent regulatory proposal to ease capital requirements on the largest and riskiest financial institutions has now been publicly opposed by the ICBA. CBAI wholeheartedly supports ICBA’s position. The proposal to roll back capital standards on global systemically important bank holding companies, or GSIBs, and their insured subsidiaries would make them more likely to fail and put the banking system at greater risk, ICBA said in a letter to the Federal Reserve Board and Office of the Comptroller of the Currency.

    The proposal would reduce capital levels required by the CBAI and ICBA-supported enhanced supplementary leverage ratio standards introduced in 2013. The proposal would slash minimum tier 1 capital requirements by $9 billion for the GSIB holding companies and $121 billion for their depository subsidiaries, according to the agencies.

    ICBA’s comment letter calls on the agencies to retain the current capital standards to protect against further disruptions to the banking system and economy from the nation’s largest financial firms. Read ICBA Comment Letter. Read ICBA Release.

    Back to top


    IS IT GETTING HARDER TO KEEP UP WITH BANKING NEWS AND CHANGES?
    SHAZAM’s launching two blogs to help you stay on top of industry news, trends and strategies to grow your business. The SHAZAM Blog will feature the perspectives of nationally recognized experts on topics like cybersecurity, fraud, marketing and other critical issues. And “In Good Company” will be a daily blog focusing on business development and growth strategies authored by SHAZAM Executive Vice President and Chief Sales and Marketing Officer Steve Heston. Visit shazam.net mid-June to subscribe!




    Fed Approves Rule Limiting Megabank Counterparty Limits

    The Federal Reserve Board last week approved a rule limiting the exposure of large banks to counterparties to prevent concentrations from undermining financial stability. The rule bars bank holding companies with $250 billion or more in assets from having more than 25 percent of their Tier 1 capital in credit exposures to a single counterparty. Global systemically important bank holding companies, or GSIBs, are limited to a credit exposure of no more than 15 percent to another systemically important financial firm. Read More.

    Back to top


    CBAI’s NEWS FROM THE FRONT 6/12/18

    CBAI’s latest News from the Front provides a status report on legislation from the recently adjourned Spring Session of the Illinois General Assembly. Meanwhile, Governor Rauner has signed legislation implementing the FY 19 state budget and was joined by Republican and Democratic legislators during the ceremony. This marks the first time that the first-term Republican Governor has signed a full-year budget during his tenure in office. The fiscal year begins July 1st.

    Standard and Poor’s Rating Agency has taken exception to claims that the budget is “balanced”, noting that the plan does little to address the state’s massive pension debt or help deal with more than $7 billion in unpaid bills. S&P added that the new budget has “potentially constructive credit implications” but “the substance of the package largely represents an extension of the status quo”. S&P continued Illinois’ current credit rating at a BBB-. Read NEWS FROM THE FRONT.

    Back to top


    Jelena McWilliams Takes the Helm at FDIC

    CBAI congratulates Jelena McWilliams upon her being sworn in as the 21st Chairman of the Federal Deposit Insurance Corporation (FDIC). McWilliams was appointed by President Donald J. Trump to serve as FDIC Chairman for a term of five years and a six-year term on the FDIC Board of Directors. She succeeds Martin Gruenberg, who has served on the FDIC board since August 2015 and as Chairman since November 2012.

    Prior to joining the FDIC Board, McWilliams’ professional experience included serving as chief legal officer at Fifth Third Bank, chief counsel and deputy director of the U.S. Senate Banking Committee, assistant chief counsel of the U.S. Senate Small Business Committee, and attorney at the Federal Reserve Board of Governors. McWilliams received a Bachelor of Science degree in political science and a law degree from the University of California, Berkeley. CBAI looks forward to working with FDIC Chairman Jelena McWilliams. Read FDIC Release.

    Back to top


    Former Comptroller Touts Sheltered Harbor Collaboration

    In a recent interview with BankNews, former Comptroller of the Currency Tom Curry said collaboration among community banks is important to guard against cyber threats and monitor third-party compliance and due diligence. Curry cited Sheltered Harbor, the financial services sector’s initiative to protect against natural disasters and cybercrime.

    Sheltered Harbor protects customers, financial institutions, and public confidence in the financial system if a cyberattack or other catastrophic event causes an institution’s critical systems—including backups—to fail. A non-profit subsidiary of FS-ISAC, the organization is devoted to coordinating the development of the Sheltered Harbor standard, promoting adoption across the industry, supporting implementation, and ensuring adherence. Read Curry Interview. Read More About Sheltered Harbor.

    Back to top


    CBAI Exclusively Endorses David Pirsein and Michael Steelman for Re-Election to FHLB Board

    CBAI is proud to exclusively endorse the candidacies of Mr. David Pirsein, President & CEO, First National Bank of Pinckneyville and Mr. Michael Steelman, Chairman & CEO, Farmers & Merchants State Bank of Bushnell for re-election to the Federal Home Loan Bank of Chicago Board of Directors.

    Mr. Pirsein and Mr. Steelman currently serve on the FHLB Board, and their two seats are up for election this year. CBAI asks that you support only these two candidates. If re-elected, they will effectively serve the interests of community-based financial institutions on the FHLB Board. Ballots are expected to arrive during the week of September 24, 2018.

    Signed ballots must be received at the FHLB by November 6, 2018. A resolution from your board authorizing an officer or director to cast your ballot must also be on file at your bank. Read More.

    Back to top


    ICBA Builds Bridges for the Next Generation of Community Banks

    ICBA’s new President and CEO Rebeca Romero Rainey recently sat down with PYMNTS.com to discuss how ICBA is helping community banks find their niche in the digital age by reducing regulatory burden and offering comprehensive payments services through its subsidiary, ICBA Bancard, a preferred marketing partner with CBAI’s Community BancService Corporation. Read More.

    Back to top


    Results of the 2018 CBAI Compensation Survey Now Available

    The wait is over! The results of the 2018 CBAI Compensation Survey are now available. And, once again, participants received the results for free, thanks to sponsor IZALE Financial Group.

    CBAI is confident that recipients will be very pleased with the report, professionally prepared by BalancedComp. Pages are linked for ease of navigation. Compensation is indexed by city of participant. And the analysis provided is more complete than ever before.

    Thanks go out to nearly 200 community banks that completed the Survey. Non-participant CBAI members can purchase the results for $300. Contact Andrea Cusick, CBAI SVP Communications, to do so at cbaicom@cbai.com or 800/736-2224.

    Back to top


    CBAI Selects Econocheck as Preferred Service Provider for Packaged Checking

    CBAI and its business services subsidiary, Community BancService Corporation (CBSC), announced last week that Econocheck has been selected as a CBSC Preferred Service Provider for package checking programs to community banks. A leading provider of packaged checking-account strategies for more than 40 years, Econocheck was selected by the CBSC board of directors for its proven track record helping community banks maximize customer loyalty while generating new non-interest revenue. CBAI members receive preferred pricing on the Secure Checking package.

    “We are excited to establish a new relationship with Econocheck,” said Kraig Lounsberry, president of CBAI in a press release. “As our members search for new strategies to strengthen customer relationships and generate additional revenue, it is essential that we team with a provider that has the expertise and demonstrated ability to assist our members with reliable solutions.” Read Release.

    Back to top


    A Five-Year Partnership, 15 Years in the Making

    Fifteen years ago, a group of bankers had an idea. They wanted to spend less time on IT while getting better results and gaining more capabilities, and as a result BankOnIT was founded. Today the BankOnIT mission is still the same: provide bankers a better solution that allows them to compete more effectively, spend less time on IT, get better results and make IT easier.

    As BankOnIT celebrates its 15 year anniversary providing exceptional value to bankers, BankOnIT is also celebrating five years of partnership with the Community BancService Corporation (CBSC). In 2017, the Community Bankers Association of Illinois (CBAI) awarded BankOnIT the prestigious CBAI Service Development Award. CBAI presents the Service Development Award annually to a company in recognition for the development of products and services that significantly enhance the internal operations of community banks and the delivery of bank services to their customers.

    BankOnIT extends thanks to the bankers who have chosen BankOnIT over the past 15 years, and thanks CBAI for five years of working together helping Illinois banks to get better results.

    Discover why other bankers have hired BankOnIT by contacting solutions@bankonitusa.com, or calling at 800-498-8877, option 2.

    Back to top


    Investment News from THE BAKER GROUP

    Baker Market Update

    In a thinly veiled response to ABC’s recent cancellation of “Roseanne”, Fed Chairman Jerome Powell announced that he will be holding a press conference after each of the FOMC’s meetings rather than the traditional every-other-one schedule. Ratings will soar. The telegenic Mr. Powell indicated that interest rates, while perhaps not soaring, will still be gaining altitude. See Baker Market Update.

    Back to top


    Abracadabra! It's Auction Time!- Donate to the Community BancPac Auction Today!!

    The CBAI Governmental Relations team is preparing for Community BancPac’s 27th Annual Auction. Thanks to the generosity and thoughtfulness of many of you, this night is always a fun-filled event as it kicks off the opening night of CBAI’s Annual Convention. We are excited and hope to make this years’ auctions a successful and memorable event. That said, we can always use your help.

    Can you think of items your fellow community bankers would love? Sports tickets, high end wines, collectables, excursions and experiences? There are two ways you can donate them to the auction. You can simply purchase an item and donate it or you can donate cash and the GR team will do the shopping for you. Either way, you will get credit for your donation in the official auction guide.

    Community BancPac is also building a pyramid of golf balls. Do you have a dozen golf balls to donate? Even better if they come with your bank’s logo. Access Community BancPac Auction Donation Form. Learn How to Donate to the Pyramid of Golf Balls.

    Back to top


    Mortgage Performance Unchanged in First Quarter

    Mortgage performance was unchanged during the first quarter of 2018 from the same period a year ago, the Office of the Comptroller of the Currency reported. The agency said that 95.6 percent of mortgages included in its Mortgage Metrics Report were current and performing at the end of the quarter, the same as a year earlier. Servicers initiated 37,300 new foreclosures during the quarter, an 8.1 percent increase from the previous quarter and a 21.5 percent decrease from a year ago. Read Report.

    Back to top


    St. Louis Fed: U.S. Economic Growth Appears Solid This Year

    According to Kevin Kliesen, an economist and research officer at the Federal Reserve Bank of St. Louis, the U.S. economy continues to expand at a rate that exceeds its potential rate of growth (somewhere around 2.25 percent). The consensus of professional forecasters is that above-trend growth, perhaps close to 3 percent, will persist over the remainder of 2018, likely leading to further reductions in the unemployment rate. However, inflation has rebounded modestly and is now at the 2 percent target rate of the Federal Open Market Committee (FOMC). Overall, the near-term outlook for the national economy appears solid. Read More.

    Back to top


    FTC Offers Guide to Help Small Businesses Stop Scams

    The Federal Trade Commission launched Operation Main Street, an effort with the Better Business Bureau and law enforcement to educate small-business owners on how to stop scams targeting their businesses. The agency released “Scams and Your Small Business,” a guide for businesses on how to avoid, identify, and report scams. Read More.

    Back to top


    CBAI LEGAL: Condo Foreclosures and Delinquent Assessments Examined

    In its June 4 opinion in the case of Sylva, L.L.C. v. Baldwin Court Condominium Association, the First District Illinois Appellate Court addressed the obligation of a purchaser of a condominium at a foreclosure sale to pay delinquent assessments owed by the owner to the condominium association at the time of foreclosure. See Most Recent CBAI LEGAL.

    Back to top


    CBIS: Wage and Hour Settlements Provide Cautionary Tale for Community Bankers

    Since 2000, U.S. corporations have paid more than $18 billion in wage settlements to plaintiffs, including penalties to the Department of Labor Wage and Hour Division, and state regulators according to new research from employee-rights advocates Good Jobs First. Several of the companies named in the report come from the financial services and banking arena, representing more than $1.3 billion in settlements. While smaller community banks did not make the list, they are not immune from the plaintiffs’ bar. Read More.

    Back to top


    Register by June 30 to Receive Early-Bird Pricing for CBAI’s 44th Annual Convention and Be Eligible for Prize Drawings

    Registration is now open for CBAI’s 44th Annual Convention & Expo, scheduled for September 27-29, 2018, at the Hyatt Regency St. Louis at The Arch. Expert speakers on the hottest community-banking topics fill an education agenda featuring 20 break-out sessions. This year's Opening Breakfast Speaker is Kevin Brown, whose unconventional path to business and personal success taught him that winning in business and in life requires anything but conventional thinking. His resume includes an eclectic mix of career stops that ultimately led him to the purchase of a franchise at the age of 17. After a career in franchising that spanned 30 years, Brown retired from corporate America to pursue his passion for effecting positive change for as many people and organizations as possible with his presentation, “The Hero Effect™ - Creating a Culture of Heroes at Every Level.” Also, on the agenda are the Welcoming Reception with BancPac Live and Silent Auction, a jam-packed Exhibit Hall with nearly 90 booths, the Annual Business Meeting Luncheon, and much more. The Closing General Session speaker is Lieutenant Colonel Robert Darling. Handpicked to work for the White House Military Office, Airlift Operations Department, it was in that capacity that Lt. Col. Darling supported the President, Vice President, and National Security Advisor in the President's Emergency Operations Center (PEOC) on September 11, 2001.

    Don't wait! Register today for early-bird pricing and receive a significant discount to attend CBAI's annual showcase event! You won't want to miss it! Register Here! June Prize Drawings.

    Back to top


    Mitigating Risk in Trust Account Administration Set for June 26

    In this class you and your teachers, Becky Kelly and Roger Pond, follow a client from pre-acceptance account review, revocable and irrevocable administration, estate administration, going full circle back into trust administration and finally, closure. This is a participative program, so bring plenty of your own questions and examples. Trust and compliance managers, administrators, trust auditors and trust associates would all benefit from attending this seminar. Leading this seminar are Roger A. Pond and Becky T. Kelly, partners in The Fiduciary Education Center, LLC, which was established in 2002.

    Back to top


    Collections & Bankruptcy Slated for June 27 & 28

    The focus of this seminar is the quality control function of the credit process. We discuss techniques that have proven to be effective in dealing with past-due accounts. Our review of the bankruptcy procedures focuses on lenders' rights during bankruptcy. This includes the proper use of counsel and was to minimize the bank's losses. Collections personnel, loan review staff, loan operations staff, loan officers, loan assistants and branch managers would all benefit from attending this seminar. Leading this seminar is David Kemp, founder and president of Bankers Management, Inc., a financial-management consulting and training firm in College Park, GA.

    Back to top



    Community Bankers School to be Held July 15-20

    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 2018 session opens Sunday, July 15, and concludes Friday, July 20. For more details, click on the attached file or visit www.cbai.com today! The deadline to enroll is July 1, 2018. Talk to your employer and register today!.

    Back to top



    CBAI




    CBAI
    PROFESSIONAL
    DEVELOPMENT PROGRAMS
    THROUGH 07/15/2018







    CBAI
    TELEPHONE/WEBCASTS THROUGH 07/31/2018









    CBAI
    RECOMMENDED SERVICES



    CBAI
    INSURANCES



    CBAI
    FOUNDATION



    CBAI
    PUBLICATIONS




    800.736.2224 (IL) | 217.529.2265 | www.cbai.com

    DISCLAIMER:The association is not responsible for and has no control over the subject matter, content, information, or graphics when viewing links attached to this association's site. If you do not wish to receive e-mails from Community Bankers Association of Illinois (CBAI), 901 Community Drive, Springfield, IL 62703, through CBAI in the future, please click here. - OR - If you would like to be removed from the CBAI e-mail database, please click here.

    © 2018 Community Bankers Association of Illinois. All Rights Reserved.