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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 22, 2016

Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • Community Bankers School Registration Deadline Is July 1!
  • Agencies Pledge Flexible FASB Standard Without Models or Third Parties
  • Register by June 30 for Early-Bird Pricing at CBAI’s Convention and Win Prizes!
  • CBAI Endorses Jim Ashworth for Re-election to FHLB of Chicago Board
  • Federal Reserve’s Kashkari: “TBTF Reforms Won’t Work”
  • Investment News From THE BAKER GROUP
  • Rural Economic Index Climbing but Remains Weak
  • Chicago Fed Survey of Business Conditions Shows Slower Growth
  • First Downs to Touchdowns… Be a Playmaker and Donate to BancPac Auction Today!
  • Community BancService Corporation Endorses PerformanceDelta
  • CBAI LEGAL: Guarantors Lose another Illinois Appellate Court Case
  • CBIS Nicoud: Life Insurance Can Be Critical to Writing Secure Loans
  • How Banks Can Attract Millennial Customers
  • Self-Service Banking for the Win!
  • Save $50 on Promotional Products with Midwest Office!
  • “Selling, Gifting Land” Seminar Designed to Aid Those in Farm Transition Process
  • Community Bank Lenders’ Conference Scheduled for June 27
  • Advanced Compliance Institute To Be Held June 28-29
  • Establishing a Compliant Trust Department Set for June 30

  • Community Bankers School Registration Deadline Is July 1!

    The highly-acclaimed Community Bankers School, consisting of two, one-week sessions over a two-year period at Illinois Wesleyan University in Bloomington, allows you to immediately contribute to the overall success of your bank, and gives 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 gain a background and experience for broader responsibilities and greater effectiveness, as well as insight into a community bank’s overall operations responsibilities. The 2016 session opens Sunday, July 10, and concludes Friday, July 15. More than a thousand individuals from throughout the nation have graduated from the Community Bankers School and have gone on to great success in the community banking profession. The deadline to enroll is July 1, 2016. Talk to your employer today and don’t look back!

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    Agencies Pledge Flexible FASB Standard Without Models or Third Parties

    The federal banking agencies said the Financial Accounting Standards Board’s new loan-loss standard will be scalable to institutions of all sizes. In a joint statement, the regulators said community banks will be able to meet the new accounting requirements without costly and complex models or third-party service providers.

    The agencies’ statement is an about-face due entirely to the persistent advocacy of ICBA and community bankers. It comes a year after a Federal Reserve webinar in which regulators suggested banks should consider investing in third-party modeling systems and described CECL as the “biggest change to bank accounting ever.”

    Friday’s statement from the agencies puts an end to that sentiment, reflecting an evolution of the Current Expected Credit Loss standard. The change follows years of ICBA and community bank advocacy, including a 2011 petition and extensive work as part of FASB’s Transition Resource Group.

    The CECL standard, which requires banks to account for credit losses at the point of origination, now explicitly allows community banks to continue using their personal understanding of local markets to determine loan-loss reserves, among other concessions. That flexibility—which will allow community banks to continue using qualitative factors, historical losses and spreadsheets—is a departure from previous versions of CECL that would have required complex modeling systems.

    ICBA last week said the final standard, while not perfect, includes important improvements that will make the standard more workable for community banks. See ICBA Release. Read Agency Joint Statement. Read More from FASB.

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    Register by June 30 for Early-Bird Pricing at CBAI’s Convention and Win Prizes!

    Register by June 30 for early-bird pricing and to be eligible to win valuable prizes at CBAI’s showcase event, entitled “Community Banking Playmakers.” Scheduled for September 15-17, CBAI’s Annual Convention & Expo makes its first-ever stop in Kansas City, MO, at the Marriott Downtown. Offering a thriving creative arts scene, eclectic mix of entertainment, and die-hard sports, it's safe to say there's something for everyone in Kansas City. But you won’t want to miss the 20 timely education sessions with expert information on the hottest topics in community banking today, not to mention an opening keynote with acclaimed public speaker, consultant, and former NFL athlete, Eric Boles. Education only scratches the surface of the convention’s attributes. Nearly 90 exhibit booths featuring the latest products and services are on display in the Exhibit Hall. Countless networking opportunities and social events include the golf outing at Swope Memorial Golf Course and the Saturday dinner dance featuring the Fabulous Motown Revue. Don’t miss out! Register by June 30, 2016, for a significant pricing discount and to be eligible to win prizes including hotel stays in Kansas City, St. Louis, and more! Early-bird Registration Here. Prize Information Here.

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    CBAI Connected to Community Banking is sponsored by The SHAZAM Network: If you’re within a few years of a contract renewal with your core vendor, SHAZAM Core Services has some advice. With vendors offering to solve all your needs in one suite, it’s tempting to be wooed by the myth that one platform can be a magic bullet for all your diverse business needs. Look for an agile, open architecture core provider that allows you to bring together a strong foundation of partners to support what makes you unique. Plan now to ensure you’re not locked in a product that can’t quickly adapt to changing customer behavior and the changing needs of your institution. Visit SHAZAM Core Services for More Information.

    CBAI Endorses Jim Ashworth for Re-election to FHLB of Chicago Board

    The CBAI board of directors has unanimously endorsed Mr. Jim Ashworth to serve a second term on the board of the Federal Home Loan Bank of Chicago. Ashworth is also vice chairman of CNB Bank & Trust, N.A., Carlinville. He was also CBAI Chairman in 1998-99.

    CBAI believes Jim is doing a great job of effectively representing the interests of community banks on the FHLB board. Ballots will not be mailed to eligible banks until late September.

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    Federal Reserve’s Kashkari: “TBTF Reforms Won’t Work”

    Minneapolis Fed President Neel Kashkari fired back this week at those who argue "too big to fail" has been adequately addressed by post-crisis reforms, contending that the new structure is too complicated to work in a real-life scenario.

    He argued that expecting long-term debt holders to absorb losses for a bank's failure was unrealistic. "A policy analyst recently asked me if we really could resolve a large bank during a crisis," he said. "I responded by asking him if he thought we could dismantle an aircraft carrier in the middle of a hurricane." Kashkari also expressed skepticism about the effectiveness of living wills, bankruptcies, and stress tests.

    "The notion of let's solve 'too big to fail' and then relax regulations on those that are not systemically important, I support that," he said. "The regulations have swung too far in terms of the behavior that it's forcing banks to adopt in evaluating behaviors." Read Article. Read Kashkari Speech.

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    Investment News From THE BAKER GROUP

    Baker Market Update

    Recently, the FOMC thought about raising rates, but then last week, decided against it. Again. Two consecutive employment reports that brought unanticipated dismay to our policy makers had an influence, to be sure, but even absent that letdown, there has been little to cheer about and even less to justify a rate increase. See Baker Market Update.

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    Rural Economic Index Climbing but Remains Weak

    Bankers Tighten Farm Loans

    Creighton University’s Rural Mainstreet Index increased in June to 43.9 from May’s 40.9, remaining below growth-neutral. While still fragile, the index has increased in four of the past five months. Due to reductions in farm income and agricultural commodity prices over the past three years, many bankers said they have altered their farm lending practices through increased collateral requirements and higher interest rates. Read Mainstreet Index.

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    Chicago Fed Survey of Business Conditions Shows Slower Growth

    The most recent CFSBC Activity Index revealed that growth in economic activity slowed to a modest pace in April and early May within the Chicago district. While still generally optimistic, respondents are increasingly concerned about the slowing pace of hiring and capital spending. Read Chicago Fed Release.

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    First Downs to Touchdowns… Be a Playmaker and Donate to BancPac Auction!

    CBAI is excited to begin preparing for Community BancPac’s 25th Annual Silent Auction and 9th Annual Live Auction. Thanks to many of you, 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. Be a PLAYMAKER and please make a contribution to the auction! See Donation Form.

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    Community BancService Corporation Endorses PerformanceDelta

    Community BancService Corporation, Inc (CBSC), a CBAI affiliate, has partnered with PerformanceDelta, which offers an easy-to-use solution for tracking the sales and referral function of a bank. See Release.

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    CBAI LEGAL: Guarantors Lose another Illinois Appellate Court Case

    The legal term res judicata might appear to be something on an optometrist’s eye chart. The simplest explanation of the term is that it is civil litigation’s first cousin to the criminal-law defense of “double jeopardy.” It means that when an issue in a lawsuit is litigated to a conclusion in one court, the identical parties cannot raise or re-litigate the same issue in another court or in a subsequent case. In the recent case of BMO Harris Bank, N.A. v. K and K Holdings, two guarantors unsuccessfully attempted to use res judicata as a defense against their guaranty being enforced twice on two separate loans. See Most Recent CBAI LEGAL.

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    CBIS Nicoud: Life Insurance Can Be Critical to Writing Secure Loans

    The untimely death of a business’s principal can also unfortunately prove existential to the entire business. Bank owners are, of course, wise to have adequate life-insurance policies in place so that a functional transfer of ownership can occur in the event of an untimely death. But that protection can also be extended to how bankers ensure the long-term investments they make in their communities. In a thorough lending evaluation, the question of whether or not borrowers have adequate life insurance in place to secure a functional continuity plan should be a part of any loan evaluation. Read More from CBIS Nicoud.

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    How Banks Can Attract Millennial Customers

    Given the fact that millennials rely on technology to solve problems, manage their money, and make financial decisions, it’s incumbent that community banks develop mobile apps that are user-friendly, secure, and provide the ability for millennials to meet financial goals. According to recent survey data, for banks to attract millennial customers a layered approach is needed to cater to this generation’s digital and app-based preferences by integrating the bank’s business with third-party developers and data aggregators. Read More.

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    Self-Service Banking for the Win!

    As financial services continue to evolve, technology has become a crucial element of the banking experience. With branch traffic declining, and younger demographics demanding more out of their financial services, many financial institutions are investing in Branch Transformation Solutions. However, it can be difficult to know exactly what will work for you. Read More from NuSource Financial.

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    Save $50 on Promotional Products with Midwest Office!

    Midwest Office understands the importance of solidifying your brand in your community. Making a lasting impression on your customers is a key part of your business process. Midwest Office offers promotional products to share with the world in a cost effective way that will really make an impact! For the month of June receive an additional $50 off your next $300 order of promotional products.

    Midwest is able to ensure that your message is out there in whatever way you can think of... offering everything from pens and notepads, to golf gear and drink cozies.

    The Midwest Office team is ready to help you take your brand to new places. Contact Kevin Gaffney, Midwest Office, at 217/303-5511 or via email at and let Midwest Office help you leave a lasting impression on your customers!

    Midwest Office is committed to offering CBAI members the lowest price on commonly-used bank office furniture and supplies. These prices are guaranteed to save your bank money compared to the cost of buying supplies from mail-order vendors and super-stores. REMEMBER: Delivery is always free for CBAI member banks!

    Go to to see additional discounted items, rebates and specials. See Midwest Office Specials!

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    “Selling, Gifting Land” Seminar Designed to Aid Those in Farm Transition Process

    Preparing to transition out of farming or to sell family farmland can be one of the most difficult processes any landowner will possibly go through, yet it’s one that landowners must prepare for in order to protect their investments and be sure their intentions are met.

    An all-day seminar offered by the Illinois Society of Professional Farm Managers and Rural Appraisers. is being offered July 20 at Faranda’s in DeKalb. The seminar is designed for families who love their farms and want to establish succession plans while maintaining the financial health of the business and should include their financial or legal advisors. The complete program and registration information is available at

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    Community Bank Lenders’ Conference Scheduled for June 27

    The 2016 Community Bank Lenders’ 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. It is designed to help you identify the keys to redefining your credit culture, create an effective sales process for your bank, discover loan review best practices, and manage opportunities and mitigate loan participation risk. Topics include “Three Keys to Redefining Your Credit Culture” and “Loan Review Best Practices” with Ancin Cooley, founder and principal of Synergy Bank Consulting, Inc., Elgin, IL; “We Want a Sales Process, Now What Do I Do?” with Duane Sobecki, CEO of Focused Results, LLC, Fishers, IN; and “Loan Participations, Managing Opportunities, and Mitigating Loan Participation Risk, Competing with the Farm Credit System in the Current Environment” with Jeff Davey of the Risk Management Team at Wipfli, LLP. David Schroeder, CBAI’s Vice President of Federal Governmental Relations, also provides a Legislative Update.

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    Advanced Compliance Institute To Be Held June 28-29

    This two-day program is intended for the experienced compliance officer and others who have a good working knowledge of the federal compliance regulations. This interactive course will generally not discuss individual regulations, but will focus mainly on compliance management and compliance leadership. The course includes multiple case studies and a round table discussion of pre-planned compliance management topics. Attendees are also encouraged to bring one or more questions they would like addressed by the group. The school will train attendees to recognize and assess regulatory problems facing their banks and take the next step to resolve these problems. Bankers will learn how to develop process models, assess compliance risk, determine weaknesses in controls, create controls to prevent and detect problems, manage a compliance-monitoring program, work through regulatory changes, and influence others to implement solutions. Attendees will gain valuable hands-on experience through case studies that require them to make judgments and develop influence strategies in scenarios designed to depict real-world situations. Topics covered include developing a compliance management system, the compliance audit, compliance monitoring, managing the compliance function, dealing with high-risk areas and hot topics, regulatory change management, an influence and negotiation strategy toolkit, and case studies. Leading this seminar is Adam Witmer, CRCM, senior consultant at Young & Associates, Inc., Kent, OH.

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    Establishing a Compliant Trust Department Set for June 30

    This seminar discusses the essentials and implementation of a trust compliance program. The discussion includes ethics/potential conflicts associated with trust administration; how to create your own risk decision tree; enterprise-wide risk management; the preemptive approach to common traps; and IRS changes and case law affecting the fiduciary world. Additionally they examine this year's trust hot topics in the regulatory world. Trust administrators and managers, as well as compliance and audit staff that work on the trust side would all benefit from attending this seminar. Leading this seminar are Becky T. Kelly and Roger A. Pond, partners in The Fiduciary Education Center, LLC, which was established in 2002. Pond and Becky Kelly develop their own course curricula using Campbell University and its extensive Trust Library as a resource. Pond is a professor emeritus of the Trust Program at Campbell University, Buies Creek, NC, the only university to offer a trust degree in the United States. Kelly most recently managed a community bank trust company. She is the dean of the Southeastern Trust School and executive director of the Trust Education Foundation, Inc.

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    THROUGH 08/20/2016






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