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 27, 2012 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois

  • CBAI’s 38th Annual Convention Slated for September 20-22 in St. Louis
  • Baker Group Springfield Seminar Set for August 6
  • 25th Community Bankers School to Be Held July 15-20 in Bloomington
  • Mega Banks Incur Ratings Downgrades
  • Chorus Grows to Break Up Mega Banks
  • ICBA’s Cam Fine: “Bright Future for Community Banks”
  • Best Time to Be a Community Banker!
  • CBAI FedPac Needs Your Support - Let’s Play Ball!
  • CBAI Members Recognized in ICBA’s Top 400
  • Rural Mainstreet Index Climbs in May
  • St. Louis Fed District Economy Shows Mixed Results
  • Baker Market Update
  • OCC Officials Meet with Senior CBAI Staff
  • CBAI Members Participate in FHLB Roundtable on Future of Housing GSEs
  • Time is Running Out for SBA 504 Debt Refinance Program
  • Study Finds Consumer Demand for Overdraft Services
  • Illinois Ranks in Second Tier of Consumers Using Direct Deposit
  • OCC Releases Report on Actions to Correct Deficient Foreclosure Processes
  • Illinois EBT Wireless Project Expanded for Farmers’ Markets
  • IL Dept. on Aging Holding Seminar on Elder Abuse July 13 in Schaumburg
  • Lenders’ Guide to Mortgage Loan Compliance Scheduled for July 10-11
  • New CTR and SAR plus Closed-End Regulation Z Set for July 31 & August 1


  • CBAI’s 38th Annual Convention Slated for September 20-22 in St. Louis

    Register Now for Showcase Event for Illinois Community Bankers!

    Scheduled for September 20-22, “Building for Tomorrow” will be held at the Hyatt Regency at The Arch in St. Louis, MO. The convention features expert general session speakers, 24 break-out sessions on the hottest issues in community banking, exciting social activities, a 96-booth exhibit hall with the latest in products and services, and countless networking opportunities. Convention attendees registering before June 30 are eligible for significant discounts on the registration fees, as well as drawings for valuable prizes.
    REGISTER NOW!

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    Baker Group Springfield Seminar Set for August 6 - Register Now!

    All In-Depth Program Financial institution managers will come away with sound ideas for using the bond portfolio as an effective tool in managing liquidity, cash flows, and interest rate risk. Attendees will also gain insight into the remarkable changes that the banking industry is experiencing in the current market environment. Topics include:

      Current Economic Conditions and Fed Policy Outlook
      Pre-Exam Interest Rate Risk Checklist
    Don't delay.
    Click here to register! Registration deadline - August 1, 2012.

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    25th Community Bankers School to Be Held July 15-20 in Bloomington

    The Community Bankers School, which consists of two, one-week sessions over a two-year period at Illinois Wesleyan University in Bloomington, prepares students to immediately contribute to the overall success of their banks, and imparts the knowledge necessary to get ahead. Topics covered during this intense week for Class I participants includes 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. Students gain solid experience for broader responsibilities and greater effectiveness, as well as insight into a community bank’s overall operations responsibilities. The deadline to enroll is July 1, 2012. For more information and to register, please
    click here.

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    Mega Banks Incur Ratings Downgrades

    Last week Moody’s cut the ratings of 15 of the world’s largest banks including Bank of America, Citigroup, and Morgan Stanley, institutions that have major risk management issues and have gotten into trouble by combining their retail business with riskier investment banking.
    See Reuters Article.

    Downgrades Highlight Danger of Financial Concentration

    ICBA responded to the Moody’s downgrade by pointing out the danger of excessive concentration in the banking system which is at an all-time high. Citing the fact that Moody’s said the downgrades would have been greater if these mega banks did not enjoy full government backing. In 1995, the 10 largest banks held 18% of all domestic deposits; today, the 10 biggest banks hold more than 48%. Both CBAI and ICBA are calling on Congress to downsize the systemically dangerous too-big-to-fail banks that can’t be properly managed, regulated, or resolved without a taxpayer bailout. See ICBA Release.

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    Chorus Grows to Break Up Mega Banks

    Now a fund manager who spurred mega bank mergers 17 years ago has a new message: It’s time to break them up. Given the underperformance of the mega banks and increasing threat to the financial system, the chorus is growing among those who advocate breaking up the giant banks. CBAI and ICBA have articulated this position for the past several years.
    See Bloomberg Report.

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    ICBA’s Cam Fine: “Bright Future for Community Banks”

    In a spirited response to the nay-sayers, ICBA’s Cam Fine articulates why the future is bright for community banks. He cites the enduring nature of the relationship-based business model that has been so successful for decades and the fact that community banks are evolving with new products and technology. Fine also noted that the mega banks are suffering from a crisis of public confidence, while the reputation of community banks is soaring.
    See BankThink Article.

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    Best Time to Be a Community Banker!

    Last month American Banker editor Alan Kline penned an article listing five key reasons why the competitive landscape is tilting in community banks’ favor.
    See American Banker Article.

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    CBAI FedPac Needs Your Support - Let’s Play Ball!

    Baseball season has begun and so has CBAI FedPac’s Fundraising season.
    Where: Busch Stadium in St. Louis
    When: Thursday, July 26, 2012 at 12:45 p.m.
    Who: St. Louis Cardinals vs. Los Angeles Dodgers
    Why: To keep community banking in the game
    How: Contact Jessie Schmidt today at 800/736-2224 to secure your tickets

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    CBAI Members Recognized in ICBA’s Top 400

    ICBA's Independent Banker magazine published its annual list of outstanding community-bank performers in the June issue. This year's ICBA 400 illustrates that the performance of community banks continues to steadily improve since the Wall Street financial crisis. The magazine's year-end rankings of ICBA members are based on return on average assets and return on average equity as reported in final 2011 FDIC call report data. The performance rankings include listings for Subchapter S corporation and Subchapter C corporation community banks among five asset categories. Congratulations to the following CBAI members that were among the banks recognized:

      Central State Bank, Clayton
      Peoples State Bank of Colfax
      State Bank, Freeport
      Goodfield State Bank
      The Farmers Bank of Liberty
      The State Bank of Lima
      First State Bank, Mendota
      Blackhawk Bank and Trust, Milan
      Bank of Rantoul
      First State Bank of St. Peter
    For more information, read
    ICBA Independent Banker.

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    Rural Mainstreet Index Climbs in May

    The Rural Mainstreet Index (RMI), a monthly indicator of the Midwestern rural economy based on survey data from community bankers in 11 states, rose to a healthy 58.5 in May. Neutral growth is rated at 50.0. While farmers increased their loan demand, strong farm income has allowed many farmers to pay cash for land purchases. The average loan-to-deposit ratio in May was 64 percent. In Illinois, the RMI in May was 504, the 25th consecutive month above growth neutral.
    See Full Report.

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    St. Louis Fed District Economy Shows Mixed Results

    The St. Louis Federal Reserve Bank last week released its Burgundy Book which describes the latest quarterly economic information for the region. The St. Louis Zone, which includes 45 counties in southern Illinois, experienced a decline in unemployment to 8.1 percent in April, 2012; meanwhile, housing prices were 0.5 percent lower compared to the previous year. In addition, 60% of responding bankers expect loan demand to remain the same and loan delinquencies to improve.
    See Report.

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    Baker Market Update

    June 20 marked the official beginning of the lazy, hazy days of summer. Adding to the seasonal haziness, the FOMC also announced on the same day that it would be extending its Maturity Extension Program until year-end. The original $400B Operation Twist, set to expire at the end of this month, will be expanded by $267B as the Fed continues to buy longer maturity Treasuries with the proceeds from its sales of shorter-term Treasuries.
    Read More.

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    OCC Officials Meet with Senior CBAI Staff

    OCC Central District regulators including Bert Otto (Deputy Comptroller), Gary Baranowski (Assistant Deputy Comptroller), Dan McKee (Associate Deputy Comptroller) and Sue Madison (Thrift Advisor) met with senior CBAI staff in Springfield to discuss the status of national banks in Illinois and trends and issues in recent bank examinations.
    Read More.

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    CBAI Members Participate in FHLB Roundtable on the Future of Housing GSEs

    Gerry Johnson, President of Grand Ridge National Bank (and member of the Board of Directors of the Independent Community Bankers of America), and William Smith, General Counsel of HomeStar Bank in Manteno (and member of the Illinois Supreme Court Mortgage Foreclosure Commission), were joined by David Schroeder, CBAI’s Vice President Federal Governmental Relations, in a roundtable discussion at the Federal Home Loan Bank of Chicago (FHLB-C or Bank) on the future of housing finance.
    Read More.

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    Time is Running Out for SBA 504 Debt Refinance Program

    September 27, 2012, is the deadline for SBA’s 504 Debt Refinance Program (Refi Program). There are only a few months left to take advantage of this unprecedented opportunity to refinance commercial debt.

    So far, the response to the SBA’s 504 Debt Refi Program has been remarkable. Nationwide, almost $1 billion in 504 refinancing money has been authorized by SBA. Add that to over $1.2 billion in private first mortgages from commercial banks and the result is $2 billion in long term capital. In fact, SBA is poised to reach record levels of lending in 2012. Nevertheless, the program is only temporary...anyone interested in the Refi Program must act now as the September 27th deadline is looming! There is a possibility the program will be extended. However, in the event an extension is not approved, all applications need to be processed within the next few months to beat the cut-off date.
    See Release.

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    Study Finds Consumer Demand for Overdraft Services

    Most consumers want important transactions paid by their financial institution even if those transactions result in an overdraft, ICBA found in a survey of consumers. The ICBA Overdraft Payment Services Study of 3,000 consumers found that most consumers, particularly those using overdraft services, are aware of alternative services to meet their payment needs, such as account transfers and lines of credit. According to the study, most consumers do not pay overdraft fees — more than three-quarters of consumers did not incur an overdraft in the past year. More than 85 percent of consumers prefer that their financial institution pay at least one important transaction, provided a fee of an equal amount would be charged whether the transaction were paid or returned. The study also found that consumers’ choice of financial institution makes a difference. With just under 15 percent paying an overdraft fee in the previous 12 months, community-bank customers incur overdraft fees less frequently than customers of megabanks (24 percent), credit unions (19 percent) and regional banks (19 percent).
    Read Preliminary Results. Read ICBA Release.

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    Illinois Ranks in Second Tier of Consumers Using Direct Deposit

    For information on directing customers to switch to direct deposit for their Social Security and other government-originated payments, please go to
    http://www.godirect.org/media/payment-statistics/. Let’s get Illinois in the top tier – it’s important!

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    OCC Releases Report on Actions to Correct Deficient Foreclosure Processes

    The Office of the Comptroller of the Currency has released its
    second interim report on the status of the Independent Foreclosure Review and actions required by consent orders issued in April 2011 to correct deficient mortgage servicing and foreclosure processes.

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    Illinois EBT Wireless Project Expanded for Farmers’ Markets

    Lt. Governor Sheila Simon announced last week that the Illinois Electronic Benefits Transfer (EBT) Wireless Project will expand access to fresh produce for low-income residents by enabling farmers' markets to accept Illinois Link cards wirelessly at minimal cost. The Project is funded by a grant from the USDA.
    See News Release.

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    IL Dept. on Aging Holding Seminar on Elder Abuse July 13 in Schaumburg

    The Illinois Department on Aging, in cooperation with The Consumer Financial Protection Bureau and the Illinois Department of Financial and Professional Regulation, is holding a seminar on The Prevention of Elder Financial Fraud and Abuse: How Financial Institutions and State and Federal Agencies Can Work Together to Protect Consumers.
    Read More.

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    Lenders’ Guide to Mortgage Loan Compliance Scheduled for July 10-11

    The Lenders’ Comprehensive Guide to Mortgage Loan Compliance is scheduled for July 10-11 in Springfield. During the last few years, both Congress and the various federal regulators have crafted revisions to some of the regulations that have been a part of our lending lives, and have added new regulations as well. This has resulted in many additional regulatory issues in every mortgage loan transaction. As a result, lenders have been struggling to determine what they should do to assure that they not only make a safe and sound loan for the bank, but also do so in a manner that will not create regulatory problems for the bank. With all of the changes and additions, a one day seminar to cover this subject is no longer possible. This seminar covers all aspects of mortgage compliance that a lender should know. The subjects that are covered include all of the latest information available. Leading this seminar is Bill Elliott, senior consultant and manager of compliance at Young & Associates, Inc. in Kent, OH.

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    New CTR and SAR plus Closed-End Regulation Z Set for July 31 & August 1

    The next
    Community Bankers for Compliance (CBC) presentation discusses the new CTR and SAR releases. Although some banks have been using the new documents, many have not. The manual will detail a complete set of “screen shots” and all of FinCEN’s instructions regarding the new forms. The second half of the CBC seminar reviews the potential issues that can occur as disclosure format and content changes within Regulation Z. We expect that there will be new formats (but NOT new methods of calculation) for Regulation Z disclosure that will be released in 2013. The result of these new forms will be a further divergence between the way we disclose loans to customers and the way we actually calculate the underlying numbers. This seminar is conducted by Bill Elliott, senior consultant and manager of compliance at Young & Associates, Inc. of Kent, OH.

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    CBAI
    ACT Appraisal

    PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 8/15/2012


    TELEPHONE/WEBCASTS THROUGH 7/31/2012


    CBAI EVENTS


    July 15-20, Illinois Wesleyan University, Bloomington

    CBAI FedPac Cardinals-Dodgers Ballgame Fundraiser
    July 26, St. Louis, MO
    Contact Jessica Schmidt, jessicas@cbai.com or 800/736-2224 for more information.


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