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Community Bankers Association of Illinois
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     A Bi-Weekly News Bulletin for CBAI Members                                    June 21, 2017

Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • CBAI and ICBA Urging CLEAR Relief Act Grassroots Action
  • Treasury Report Advocates Community Bank Regulatory Relief
  • Economist: Community Banks Score Big in Treasury Report
  • ICBA Releases Guide for August Congressional Meetings
  • Community Bankers School Scheduled for July 16-21
  • Register by June 30 for Discounted Pricing for CBAI's 43rd Annual Convention
  • The 2017 CBAI Compensation Survey Results Now Available!
  • Investment News From THE BAKER GROUP
  • Rural Mainstreet Stuck in Growth Neutral
  • IDFPR Releases Final Digital Currency Regulatory Guidance
  • CBAI’s Bank Directory Is Now Available as an eBook!
  • FDIC Appoints New Ombudsman
  • Wolters Kluwer Supports MidAmerica National Bank’s Commercial Lending Growth
  • Consumers Trust Banks Over Tech Companies for Digital Payments
  • Why Blockchain Could Speed Up Payments
  • Community Bankers Unite - It's Auction Time Again!
  • CBAI LEGAL: Assigned Mortgage Lien Defeats Judgment Creditor
  • CBIS: What Community Bankers Should Know About Cryptocurrencies
  • Community Bank Lenders' Conference Slated for June 26
  • Community Bank Directors' College Session II Takes Place June 27 & 28
  • Keys to Survival in Fiduciary Administration in Current Environment Set for June 29

  • CBAI and ICBA Urging CLEAR Relief Act Grassroots Action

    CBAI and ICBA are calling on all community bankers to urge their members of Congress to co-sponsor the CLEAR Relief Act (H.R. 2133 and S. 1002). Community bankers can use ICBA’s Be Heard grassroots website to advocate congressional support for the comprehensive regulatory relief legislation. The bills include relief from mortgage rules, the Volcker rule, the TILA-RESPA Integrated Disclosure rule, Sarbanes-Oxley requirements, and more. Read More.

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    Treasury Report Advocates Community Bank Regulatory Relief

    CBAI and ICBA welcomed a Treasury Department report advocating regulatory relief for community banks. The report, directed by an executive order signed by President Trump in February, includes provisions to strengthen community bank mortgage lending, ease commercial lending rules that harm small businesses and farms, and refocus Basel III capital rules on the largest financial firms.

    Numerous provisions in the report are included in ICBA’s “Community Bank Regulatory Relief: A Roadmap to Economic Growth and Prosperity” white paper. ICBA released the white paper, which complements ICBA’s Plan for Prosperity regulatory relief platform, following an April 5 Treasury Department meeting with community bankers in Washington. That meeting preceded a White House meeting of more than 100 community bankers during the ICBA Capital Summit on May 1.

    CBAI and ICBA look forward to continuing to work with the Trump administration, Congress and federal banking regulators to advance pro-growth regulatory relief for community banks and the customers and communities they serve. Read Treasury Report. See ICBA Release.

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    Economist: Community Banks Score Big in Treasury Report

    A new Economist article reports that community bankers are responding positively to the Treasury Department’s recent recommendations for regulatory relief. In fact, they’re downright cock-a-hoop over the plan, according to the article. “We’re popping champagne corks,” ICBA President and CEO Cam Fine told the publication. “Nearly every ICBA policy was adopted.” Read Economist Article. Read Summary of Treasury Recommendations.

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    ICBA Releases Guide for August Congressional Meetings

    To maximize community banking grassroots efforts during the August congressional recess, ICBA released the “Meeting on Main Street: Host Your Legislators at Your Community Bank” guide.

    The guide provides a step-by-step process for scheduling, conducting and promoting in-district meetings with members of Congress, including community bank visits by lawmakers and staff. The guide also offers social media tips and a sample letter to request a meeting or bank visit.

    Hosting members of Congress at your bank is an excellent opportunity to educate lawmakers about the unique and important role of community banking in local communities across the nation. For more information, contact ICBA Director of Advocacy Joshua Habursky at or 202-821-4355. Download Meeting Guide.

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    Community Bankers School Week Scheduled for July 16-21

    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 2017 session opens Sunday, July 16, and concludes Friday, July 21. For more details, click on the attached file or visit today! The deadline to enroll is July 1, 2017. Talk to your employer and register today!

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    Register by June 30 for Discounted Pricing for CBAI's 43rd Annual Convention!

    Registration is now open for CBAI’s 43rd Annual Convention & Expo, scheduled for September 14-16, 2017, at the Crowne Plaza in Springfield, IL. Expert speakers on the hottest community banking topics fill an education agenda featuring 20 break-out sessions. This year's Opening Breakfast Speaker is John O’Leary. At the age of nine, John accidentally created a massive explosion in his home and was burned on 100% of his body. He was given a one-percent chance to live. His epic story of survival, emotional story-telling, unexpected humor, and authenticity make his presentations truly transformational. Also on the agenda is the Welcoming Reception with BancPac Live and Silent Auctions, a jam-packed exhibit hall with more than 90 booths, the Annual Business Meeting Luncheon, and much more. The Closing General Session features Jeff Havens, one of the most in-demand speakers in North America. In his hysterical keynote, Us vs. Them, you'll learn a simpler way of looking at your own generational picture, and you'll also learn how to understand, recognize, and resolve every generational issue facing today's workforce. Don't wait! Take advantage of the significant pricing discount and be eligible to win great prizes by registering today for CBAI's annual showcase event! You won't want to miss it! Register Here! See Prizes Here.

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    The 2017 CBAI Compensation Survey Results Now Available!

    The wait is over! The results of the 2017 CBAI Compensation Survey are now available. And, once again, participants received the results for free, thanks to sponsor IZALE Financial Group.

    We think that you 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 of your peers who took the time to complete the Survey. Non-participant CBAI members can purchase the results for $300. Contact Andrea Cusick, CBAI SVP Communications, to do so at or 800/736-2224.

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    Investment News From THE BAKER GROUP

    Baker Market Update

    Information received since the Federal Open Market Committee met in May indicates that the labor market has continued to strengthen and that economic activity has been rising moderately so far this year. Job gains have moderated but have been solid, on average, since the beginning of the year, and the unemployment rate has declined. Household spending has picked up in recent months, and business fixed investment has continued to expand. See Baker Market Update.

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    Rural Mainstreet Stuck in Growth Neutral

    Bank CEOs Expect Another 3 Percent Decline in Farmland Prices

    Creighton University’s index of the rural economy held steady at growth-neutral for the second consecutive month. The Rural Mainstreet Index was 50.0 in June after coming in at 50.1 in May. The readings follow 20 straight months under growth-neutral. Economist Ernie Goss said higher cattle and hog prices are offsetting grain prices, which remain below break-even for most farmers.

    For Illinois, borrowing by farmers was very strong for June as the loan-volume index climbed to 78.3 from last month’s 74.5. The checking-deposit index was unchanged at 48.9, while the index for certificates of deposit and other savings instruments sank to 41.3 from 46.6 in May.

    The June RMI for Illinois increased to 50.6 from 49.2 in May. The farmland-price index expanded to 40.4 from May’s 29.4. The state’s new-hiring index advanced to 64.0 from last month’s 55.1. Jeff Bonnett, president of Havana National Bank and CBAI Treasurer, said, “The most relevant factor to the downturn in our economy, like the rest of the state, with the exception of Chicago, is the lack of leadership in state government. We have not had a budget, let alone a balanced budget for three years now. The impact on state universities and other state agencies along with doctors, dentists, pharmacists and health care specialists has been drastic.” Read More.

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    IDFPR Releases Final Digital Currency Regulatory Guidance

    Secretary Bryan A. Schneider with the Illinois Department of Financial and Professional Regulation (“IDFPR”) has announced the issuance of guidance to establish the regulatory treatment of digital currency under the Illinois Transmitters of Money Act (“TOMA”). IDFPR’s guidance focuses on decentralized digital currencies, which are considered electronic mediums of exchange that are not created or issued by a central authority, are not legal tender, and can be used to purchase goods and services or to exchange for other currencies. IDFPR’s guidance follows a commentary period that concluded in January 2017 and takes into account responses received from the public. Read Release. Read Final Guidance. Access TOMA.

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    CBAI’s Bank Directory Is Now Available as an eBook!

    The 2017 eBook version of the 2017 Directory of Illinois Financial Institutions is available now. See Directory.

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    FDIC Appoints New Ombudsman

    The FDIC has appointed M. Anthony Lowe to serve as FDIC ombudsman and director of the Office of the Ombudsman. Lowe has been the Regional Director for the FDIC Chicago Regional Office for the past several years.

    The ombudsman’s office interacts with bankers, other industry representatives, community groups, and members of the public to answer questions and hear concerns about FDIC policies and regulations. Lowe, a 32-year veteran of the FDIC, will be based in Chicago and will assume his new duties July 2. He replaces Cottrell Webster, who previously retired from the FDIC. Read FDIC Release.

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    Wolters Kluwer Supports MidAmerica National Bank’s Commercial Lending Growth

    CASH Insight™ Helps Community Bank Deliver Loan Products Customers Need, while Balancing Risk and ROI

    Wolters Kluwer’s financial spreading tool, CASH Insight, is front and center in helping MidAmerica National Bank in Canton support the businesses in the communities it serves. The nearly $420 million asset community bank, with locations in Canton, Cuba, Lewistown, Macomb and Henry, Illinois, serves a diverse set of retail and agricultural businesses.

    MidAmerica National Bank needed a standalone tool that excelled at the fundamentals, from calculating standardized cash flow in the standard Uniform Credit Analysis (UCA) format to providing a consistent spread of customers’ financial statements. Read More.

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    Consumers Trust Banks Over Tech Companies for Digital Payments

    Payments still belong to banks, according to consumers—even when those payments are being made through a smart phone or an IoT device. The majority of “connected” consumers, nearly 80%, cited their bank as the “most trusted” provider for a digital payment solution, a study by PYMNTs on behalf of Visa found.

    Consumers, who cited technology companies as the more trusted option, were very much in the minority of the more than 2,500 people surveyed, with less than 30% of them trusting Google, Apple, or Microsoft. Read More.

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    Why Blockchain Could Speed Up Payments

    The internet has not yet seriously disrupted the financial services industry. Fintech might have made inroads, but the inner workings of the financial system—clearing and settlement and all the other processes that keep the world turning—remain much the same. Until bitcoin, that is.

    Well, not quite. The cryptocurrency itself probably won’t replace our financial services, but the technology behind it—often called blockchain or distributed ledger technology (DLT)—has both piqued the interest of banks and frightened them. They’re interested because it promises to make their back-office processes more efficient, which could someday save the financial industry considerable money.

    Cary Whaley, ICBA’s first vice president of payments and technology policy, says, “With blockchain or virtual currencies, you can reach out directly.” This capability results in lower costs, faster clearing and settlement (almost instantly as opposed to three or more days for cross-border payments), reduced errors, and transparency for all players involved in the payment. Read More.

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    CBAI LEGAL: Assigned Mortgage Lien Defeats Judgment Creditor

    The lien priority of an assignee of a mortgage survives and defeats the lien of a judgment creditor who recorded a memorandum of judgment before the assignee recorded its assignment of the original mortgage. Read Most Recent CBAI LEGAL.

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    Community Bankers Unite - It's Auction Time Again!

    CBAI is excited to begin preparing for our Community BancPac’s 26th annual silent auction and 10th annual live auction. This night is always a fun-filled event and remains one of the highlights of CBAI’s convention. We hope to make this year’s auction a successful and memorable event, but we need your help! CBAI deeply appreciates the PAC donations many of you make each year. However, to continue representing the interests of community banks, we need greater participation for this important cause. There are two options for donations: an actual item (i.e. sports tickets, collectibles, sports memorabilia, electronics, condo/vacation get-a-ways, etc.) or a cash donation. Donated items may be transported to convention or mailed to CBAI for transport. The cash option will allow CBAI staff to purchase popular items for auction and credit your financial institution for the item donation. Be a SUPERHERO and please make a contribution to the auction! Donate Today!

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    CBIS: Importance of Community Banks Updating Property Information

    When was the last time you reviewed your businesses property values with your agent or third-party evaluator? If the answer is more than a year ago, you may be at risk of losing much more than you expect. Community BancInsurance Services (CBIS) can point out key areas that should be evaluated each year. Read More.

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    Community Bank Lenders' Conference Scheduled for June 26

    CBAI is pleased to offer the Community Bank Lenders' Conference in Springfield this June. The 2017 Community Bank Lenders' Conference covers a wide range of hot topics, including an update for lenders on banking and the economy; rating risk, pricing loans and the ALLL; mastering the challenges of small business lending; and working with lenders to proactively build the best loan portfolio. The conference not only benefits lenders, it is also geared toward presidents, CEOs, officers, and anyone who is involved in the lending process at the bank. Speakers and topics include Banking and the Economy: An Update for Lenders with Richard Hamm, founder of Advantage Consulting & Training, Huntsville, AL; The Real Price of Risk: Rating Risk, Pricing Loans and the ALLL with David Ruffin, director of Loan Advisory Services at Dixon Hughes Goodman LLP (DHG); Master the Challenges of Small Business Lending with Nancy Michael, senior director of product strategy at Moody Analytics; and Working with Lenders to Proactively Build the Best Loan Portfolio with Craig Poms, SVP – bank partnership director at LSQ Funding.

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    Community Bank Directors' College Session II Takes Place June 27 & 28

    The Community Bank Directors' College was developed in close cooperation with both state and federal regulators and is designed to teach individuals how to become more effective, capable, and supportive members of their bank's board of directors. Its goal is to graduate directors who return to your bank more active, more knowledgeable, and more decisive. In effect, they will be an even bigger asset to your community bank. The College is offered once every two years and provides a thorough understanding of bank operations and bank directors' responsibilities. The college is recommended for both new and seasoned bank directors. It is structured as two, two-day sessions. The second session, which may be attended as a stand-alone course, is being held at the CBAI Headquarters on June 27 & 28, 2017. Topics covered on the first day of Session II include Financial Management of Community Banks with Drew Simmons of THE BAKER GROUP, Oklahoma City, OK; Regulatory Examinations, Enforcement Actions, and Fiduciary Duties with John Geiringer, partner at Barack Ferrazzano Kirschbaum & Nagelberg LLP, Chicago; and Understanding Your Shareholder Value with Steve Clinton of Young & Associates, Inc., Kent, OH. Day Two addresses Understanding Community Bank's Risk with Tom Munz, Munz Consulting LLC, Mt. Prospect, IL; Is Your Strategic Planning a Waste of Time? with David Kemp, president of Bankers Management, Inc., College Park, GA; Community Bank Compensation with Scott Richardson, president of IZALE Financial Group, Schaumburg, IL; and an Exam Workshop with regulators from the FDIC, OCC, IDFPR, and Federal Reserve Bank of Chicago.

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    Keys to Survival in Fiduciary Administration Slated for June 29

    This seminar discusses a variety of fiduciary issues in including board and committee responsibilities, fiduciary expertise, account acceptance and asset considerations, the Investment Policy Statement, Reg 9, due diligence and managing risk, and more. As in the past, this seminar also discusses regulatory “hot topics” for 2017. If you have issues you would like to hear about, please submit two weeks before the program and those will be included, as well. Please send topics to Leading this seminar are Roger A. Pond and Becky T. Kelly, partners in The Fiduciary Education Center, LLC, which was established in 2002.

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    THROUGH 07/21/2017






    Finer Points Blog

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