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Community Bankers Association of Illinois
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     A Bi-Weekly News Bulletin for CBAI Members                                    July 5, 2017

Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • CBAI and ICBA Urging CLEAR Relief Act Outreach
  • Heitkamp Op-Ed: Community Banks Have Bipartisan Support
  • Cam Fine: “Housing Finance System Needs Updates, Not Overhaul”
  • Fed’s Fischer: Unregulated Firms Continue Posing Risks
  • State Regulators Issue Cybersecurity Best Practices
  • Fed Chair Yellen to Open 2017 Fed/CSBS Community Banking Research Conference
  • CBAI Endorses Todd Grayson for FHLB Board
  • Results of the 2017 CBAI Compensation Survey Now Available
  • Investment News From THE BAKER GROUP
  • Community Bankers Unite - It's Auction Time Again!
  • Complete Details Now Available for CBAI's 43rd Annual Convention & Expo
  • CBIS: What Community Bankers Should Know About Cryptocurrencies
  • Midwest Office: Don't Forget to Stock up on Bank Supplies-10% Off in July!
  • Happy 10th Anniversary iPhone
  • The ATM Turns 50!
  • CBAI LEGAL: Mortgagee’s Attorney’s Fees Protected by Mortgage Terms
  • Win $2,500 for a Deserving Student from iHELP
  • Free Webinar: 91% of Consumers Check Email Once a Day - Do they see you?
  • Training the Credit Analyst Scheduled for July 12-14
  • Community Bankers School Week Is July 16-21
  • Directors' Workshop Set for July 27 in Springfield

  • CBAI and ICBA Urging CLEAR Relief Act Outreach

    CBAI and ICBA continue 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. Contact Congress Today.

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    Heitkamp Op-Ed: Community Banks Have Bipartisan Support

    ICBA Chairman Scott Heitkamp wrote in a new op-ed that the Treasury Department’s recent report on financial regulations strikes on common ground shared by many policymakers: the need to reform laws affecting community banks. Community bank relief is a rare source of agreement at a time of hyperpartisanship, the president and CEO of ValueBank Texas in Corpus Christi wrote in The Hill.

    “Recognizing the economic benefits of local banking, Republicans and Democrats are working to advance policies designed to free Main Street community banks from government regulations designed for larger and riskier Wall Street financial firms,” Heitkamp wrote. Read the Op-Ed.

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    Cam Fine: “Housing Finance System Needs Updates, Not Overhaul”

    Housing finance reform received its first major Capitol Hill close-up in years last week when the Senate Banking Committee resumed its discussion over what to do with Fannie Mae and Freddie Mac. ICBA President Cam Fine emphasized that lawmakers can take comfort that they don’t need to start from scratch because the nation’s housing finance system is a fixer-upper — not a complete gut job.

    Fine noted that reforming the GSEs is one of the most contentious issues in Washington and cuts across party lines. At stake is the health of a housing market that accounts for more than 20% of the U.S. gross domestic product. He pointed out that any disruption or loss of investor confidence in Fannie or Freddie could send mortgage interest rates quickly rising, drying up liquidity and making it difficult for Americans to buy, sell or refinance their homes.

    Fine added that the GSEs support a massive marketplace and have provided a consistent source of funding for mortgage lending for 80 years. He offered suggestions whereby Congress can promote a stable housing market that continues to support the American dream of homeownership not by demolishing these institutions, but by renovating and strengthening the current finance system. He also urged policymakers to avoid consolidating the system into the hands of the largest financial institutions to the detriment of community banks and their borrowers, which represent roughly 20% of the market. Read More.

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    Fed’s Fischer: Unregulated Firms Continue Posing Risks

    Unregulated financial firms and new technologies continue to pose risks to the financial system, Federal Reserve Vice Chairman Stanley Fischer said in a speech last week assessing U.S. financial stability. He noted that the system is more secure and resilient than it was during the 2007-09 crisis. But the financial sector continues to be plagued by limited insights on the shadow banking system, uncertainty about the final configuration of short-term funding markets, and novel risks posed by new financial technologies. Read Fischer’s Speech.

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    State Regulators Issue Cybersecurity Best Practices

    State banking regulators and the U.S. Secret Service recently released banker best practices for managing the risks of certain cyber-threats. Community bankers participated in the development of the best practices through the Bankers Electronic Crimes Task Force.

    The best practices focus on four cyber-threats identified by the bankers as requiring continued attention:

    • unauthorized large-value funds transfers,
    • ransomware, which uses malicious software to encrypt devices and demand payment for access,
    • distributed denial-of-service, which prevents users from accessing information or services, and
    • ATM jackpotting and cash-out fraud.
    Read CSBS Release.

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    Fed Chair Yellen to Open 2017 Fed/CSBS Community Banking Research Conference

    Federal Reserve Chair Janet Yellen will give opening remarks at the fifth annual Community Banking in the 21st Century research and policy conference that will be held October 4-5 at the Federal Reserve Bank of St. Louis.

    The conference, hosted by the Federal Reserve System and the Conference of State Bank Supervisors (CSBS), brings together community bankers, academics, policymakers and bank supervisors from across the country to discuss the latest academic research on community banking, as well as important policy issues facing the sector.

    Cynthia Blankenship, vice president, chief financial officer and corporate president of Grapevine, Texas-based Bank of the West, will give the keynote speech on the first day of the conference. Federal Reserve Bank of San Francisco President John Williams will give the second day’s keynote.

    Other guest speakers will include Federal Reserve Bank of St. Louis President James Bullard, CSBS Chairman Albert L. Forkner, state banking commissioner of the Wyoming Division of Banking, and CSBS President John Ryan. Read FRB St. Louis Release. See Conference Website.

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    CBAI Endorses Todd Grayson for FHLB Board

    Todd Grayson, president of South Central Bank, N.A. in Chicago and CBAI past chairman, is uniquely qualified to take a seat on the board of the Federal Home Loan Bank of Chicago. Read Qualifications.

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    Results of the 2017 CBAI Compensation Survey 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

    As we all learned from our fathers, you can’t really tell the depth of the well by the length of the handle on the pump. What may have been unrealized at the time, was the hidden economics lesson contained within that maxim. Is this a lesson lost on Fed officials? Over the last couple of weeks, a range of central bankers from Janet Yellen to Stanley Fischer to Jerome Powell have been lauding the low and falling unemployment rate while, more or less, telling the world that because of that, all is well. See Baker Market Update.

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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 one of the highlights of CBAI’s annual convention. We hope to make this year’s auction successful and memorable, but we need your help! CBAI deeply appreciates the PAC donations so 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. Be a SUPERHERO and make a contribution to the auction! Donate Today!

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    Complete Details Now Available for CBAI's 43rd Annual Convention & Expo

    CBAI is pleased to announce that complete convention details are now available. CBAI’s 43rd Annual Convention & Expo, scheduled for September 14-16, 2017, at the Crowne Plaza in Springfield, IL, features expert speakers on the hottest community banking topics, networking opportunities, entertainment, and more. The full convention brochure provides details on 20 education break-out sessions, Thursday's Golf Outing, the Saturday night entertainment, Partners' Programs, a special event on Friday night, and more. Don't wait! Check out the full convention brochure and register yourself and members of your team today! See Details.

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    CBIS: New Fiduciary Requirements for Third-Party Investment Providers

    Community banks that sponsor 401(k) plans for their own employees are undoubtedly familiar with the Employee Retirement Income Security Act, which, among other things, holds all employers that sponsor a workplace retirement-savings plan to the fiduciary standards of prudence and loyalty. Familiarity with ERISA will serve community banks well as they factor the implications of a rule promulgated by the Department of Labor that vastly expands the definition of fiduciary investment advice for all qualified retirement accounts (i.e., IRAs and 401(k)s) in the retail space). Read More.

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    Midwest Office: Don't Forget to Stock up on Bank Supplies-10% Off in July!

    Let Midwest Office be your one stop shop for all your business supply needs. We determine the most efficient and cost effective methods, guaranteeing a valuable partnership that your business can bank on! Midwest Office can supply your bank with its entire print material. Click Here for 10% Off. Contact Kevin Gaffney to place your next order: 217-303-5511 or

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    Happy 10th Anniversary iPhone

    In 2007, the first version of the iPhone was very different from the standard issue smartphone over 80 percent of Americans carry in their pockets (and over 70 percent of the planet are forecasted to carry by the end of 2020). There was no App Store or front-facing camera; streaming video was not an option. Texting a photograph wasn’t even possible. When the first version of Apple’s App Store launched in 2008, there were only 500 apps in it.

    Flash forward 10 years, and there are 2.1 million apps in the Apple App store, not to mention the additional 3.4 million in competitor Google’s Play store. App Annie expects global app usership will double to 6.3 billion people in the next four years and the average app spend will increase from around $379 per person today to $1,008 in 2021. The big driver of that spend according to App Annie? Mobile commerce — by a lot.

    Mobile commerce — defined as the purchase of goods and services through mobile apps — represented 90 percent of the total app economy in 2016 and will represent 95 percent in 2021. That’s an estimated $1.3 trillion in estimated value for global mobile commerce today — and an estimated $6 trillion in value four years from now in 2021. And there’s more to come. See Article.

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    The ATM Turns 50!

    It was exactly 50 years ago today that the world’s first ATM was unveiled at a Barclays branch in Enfield, London. The first cash machine came about after some hurried signing of contracts, over a pink gin, between Barclays and Scottish inventor John Shepherd-Barron, who died in 2010.

    Recent forecasts from Retail Banking Research highlight that over 3.1 million ATMs are currently installed around the globe. Estimates are that this number will reach four million by 2021. This further emphasizes the need for the ATM now and in the future as a secure, trusted and reliable self-service channel for consumers.

    But where will the technology be in ten, 20 or even 50 years from now? In a changing world, it’s always hard to forecast what the future will hold, but while nothing in life is certain, the future for the ATM looks bright. Read More.

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    CBAI LEGAL: Mortgagee’s Attorney’s Fees Protected by Mortgage Terms

    In a recent ruling from the First District Illinois Appellate Court, a Mortgagor made several unsuccessful challenges to the award of attorney’s fees to the mortgagee. See Most Recent CBAI LEGAL.

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    Win $2,500 for a Deserving Student from iHELP

    For many children, college is the first, big step in their adult journeys and while parents all wish success on this journey, how they define success varies. The #WhatIWish scholarship contest, presented by ICBA and CBAI partner iHELP, asks parents to share a photo and what they wish for their college-bound students; doing so will enter their child for a chance to win a $2500 scholarship.

    The contest is open to any parent or legal guardian with a student who graduated from high school in 2017 or will graduate in 2018 and will be attending college in the U.S. in the 2017-2018 or 2018-2019 academic year. Parents can enter the contest online at The contest ends July 31, 2017, and the $2500 scholarship will be awarded by random draw at that time.

    Please make this information available to your bank customers and employees. Good luck!

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    Free Webinar: 91% of Consumers Check Email Once a Day - Do they see you?

    With 17% of consumers switching banks, and majority of them being Millennials, how can community banks entice them to their institution? In this session, Kasasa will share important insights into how consumers make purchase decisions and which products they want to buy. Learn how to engage with them and develop a marketing strategy that cuts through the clutter, deliver results and stretch dollars further.

    Kasasa CMO Keith Brannan will discuss:

    • Ways that integrated marketing can increase your ROI.
    • The right and wrong ways to implement marketing automation.
    • Strategies that community financial institutions should use to improve their targeting.
    Register Here for this Kasasa webinar scheduled for July 13 at 2:00 p.m.!

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    Training the Credit Analyst Scheduled for July 12-14

    As community banks grow and strive to become high-performing financial institutions, the need to cultivate and develop a portfolio of commercial borrowers increases also. Credit analysis is an essential part of this process as banks strive to develop solid commercial relationships. This is a three-day seminar designed to address the needs of beginning credit analysts and to reinforce the credit skills of current credit analysts. It teaches how to write effective and comprehensive credit analyses which highlight the important trends shown on the financial spread sheet. Other analytical tools that are covered include cash-flow analysis, break-even analysis, ratio analysis, financial projections, and sensitivity analysis. The objective of this course is to provide credit analysts with analytical skills that can be put to immediate use upon their return to their banks. Participants learn to use proven analytical tools which enable them to assess the degree of risk prior to recommending approval of declination of a credit request. Another objective of this course is to improve the documentation of commercial loan files which reduce losses and are viewed favorable by the regulatory community. Leading this seminar is Jeffery Johnson, president and founder of Bankers Insight Group, Atlanta, Georgia, who has more than 36 years’ experience in the banking field.

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    Community Bankers School Week Is 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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    Directors' Workshop Set for July 27 in Springfield

    Being a member of a community bank's board of directors is a challenging and rewarding experience. The community bank director has duties to the institution, its stockholders, and its depositors. And, he or she has responsibilities to the public-at-large. To meet these duties and responsibilities, a director must be knowledgeable and active. Thus, we invite you to join CBAI and the FDIC for the Directors' Workshop. Representatives from the FDIC discuss hot banking topics to make this comprehensive, one-day conference a must-attend. Topics covered include Corporate Governance and Succession Planning with Robert Warren; Preparing for Your Examination with Gerald Anderson, Bill Doering, and Angela School; Cybersecurity with Leslee Martin; an Economic Update; Compliance Risk Assessments with Patrick Ryan, Bill Doering, and Angela School; Concentration Risk Management with Gerald Anderson and Ashlee Chapman; and Interest Rate Risk with Deanna Willemsen. All speakers are representative of the FDIC. Insight Group, Atlanta, Georgia, who has more than 36 years’ experience in the banking field.

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    THROUGH 08/31/2017






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