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                           July 11, 2012 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois

  • CBAI Supports Ashworth and Greenbank for Chicago FHLB Board
  • Community Banks and America’s Financial Freedom
  • Study Finds Big Bank Customers Ready to Move to Community Banks
  • CBAI’s 38th Annual Convention Set for September 20-22 in St. Louis
  • CFPB Adopts Rule on Privileged Information
  • Regulators Planning Informational Sessions on Capital Proposals
  • CBAI Supported ATM Fee Disclosure Bill Passes the U.S. House
  • OCC Releases Report on Risks Facing National Banks and Thrifts
  • Update on Drought and Crop Conditions
  • CFPB Seeks Guidance from CBAI Regarding Regulatory Compliance
  • Discover What’s Yours
  • CBIS Powered by Nicoud Recaps Obamacare Provisions
  • FinCEN Marks the End of Paper Filing
  • Mortgage Delinquencies Fall to Three-Year Low
  • FREE Consumer Tips Available
  • Baker Group Springfield Seminar Set for August 6
  • 25th Community Bankers School to Be Held July 15-20 in Bloomington
  • CBAI FedPac Needs Your Support - Let’s Play Ball!
  • Baker Market Update
  • Training the Credit Analyst Set for August 1-2
  • New CTR and SAR plus Closed-End Regulation Z Set for July 31 & August 1
  • New FREE Quarterly Ads Available!


  • CBAI Supports Ashworth and Greenbank for Chicago FHLB Board

    Earlier this week CBAI announced its support for Jim Ashworth, Vice Chairman of CNB Bank & Trust, N.A., Carlinville; and Art Greenbank, President and CEO of First Bankers Trust Company, N.A., Quincy, as candidates for the Chicago Federal Home Loan bank board of directors. With two Illinois seats up for election this year, CBAI urges all banks eligible to vote to support only these two excellent candidates to enhance their chances to get elected.
    See CBAI Announcement.

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    Community Banks and America’s Financial Freedom

    In recognition of our nation’s founding, last week ICBA’s Cam Fine penned a wonderful reminder of the important role of community banks in preserving and protecting our freedoms.
    See Our Financial Freedom.

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    Study Finds Big Bank Customers Ready to Move to Community Banks

    Javelin Strategy and Research has determined that 11% of all U.S. consumers are threatening to switch their primary bank sometime in 2012. However, the mega banks are at risk of losing twice that many customers. They could be easy pickings for community banks which can offer convenience, customer service, and lower fees. Community banks will need to beef up their mobile banking and deposit offerings.
    See Full Article.

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    CBAI’s 38th Annual Convention Set 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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    CFPB Adopts Rule on Privileged Information

    The Consumer Financial Protection Bureau (CFPB) has adopted a Rule to codify the protection of privileged information submitted to the Bureau by the financial institutions it regulates. In a comment letter in March, CBAI recommended that the Rule specifically state that any information provided by community banks, either directly or indirectly to the Bureau, will not waive or otherwise affect any privilege with respect to such information under Federal or State law. The CFPB said that although the rule is primarily focused on large financial institutions, it is not limited to those institutions and will be interpreted broadly.
    Read More.

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    Regulators Planning Informational Sessions on Capital Proposals

    Federal banking regulators will be hosting educational sessions for community bankers on the proposed regulatory capital standards. The FDIC is hosting a series of informational sessions from July 20th – August 1st (Chicago on Tuesday, July 31st) and will post a webcast overview of the proposed regulations for bankers who cannot attend. The
    FDIC has also scheduled a conference call on August 3rd to answer questions about the proposal. The Federal Reserve is planning live teleconferences for 3:00 p.m. (Eastern time) on Monday, July 16th, and at 11:00 a.m. (Eastern time) on Wednesday, July 18th.

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    CBAI Supported ATM Fee Disclosure Bill Passes the U.S. House

    H.R. 4367 eliminates the unnecessary and duplicative disclosure of ATM fees and helps prevent frivolous lawsuits against community banks. The Electronic Funds Transfer (EFT) Act requires ATM operators to provide two separate notices regarding ATM fees (i.e., a placard placed on the ATM machine and a separate disclosure on the video screen). The video screen fee disclosure requires the user to accept the fee - or not. If the user accepts the fee the transaction proceeds. If the fee is declined the transaction is cancelled and the fee is not charged. Community banks fully support the consumer protection of video screen fee disclosure.
    Read More.

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    CFPB Seeks Guidance from CBAI Regarding Regulatory Compliance

    The Consumer Financial Protection Bureau (CFPB or Bureau) recently sought guidance from the Community Bankers Association of Illinois (CBAI) regarding regulatory compliance for community banks. Specifically, the CFPB is attempting to gain a better understanding of the compliance systems and resources available to community banks and the costs community banks incur to become compliant with various regulations. CBAI reached out to its Executive Committee members who provided a wealth of information to assist the CFPB in understanding the regulatory regimen for community banks.
    Read More.

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    OCC Releases Report on Risks Facing National Banks and Thrifts

    Last week the OCC issued a report called the Semiannual Risk Perspective which noted that top risks facing national banks and federal savings associations include the lingering effects of a weak housing market. The Report also found that levels of capital and allowance for loan losses are more robust and of higher quality than before the recession.
    See Report Summary. See Full Report.

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    Update on Drought and Crop Conditions

    The first half of 2012 was the sixth driest on record according to the Illinois State Water Survey, averaging just 12.6 inches or nearly seven inches below normal. The Illinois department of Agriculture is working to determine if Illinois qualifies for an agricultural disaster declaration due to crop losses.
    See Drought Update.

    Meanwhile, the USDA agricultural summary for Illinois last week reveals a continuing deterioration of corn conditions which were rated at 23% very poor, 25 percent poor, and 33% fair. Soybean conditions were rated at 17% very poor, 25 % poor, and 38% fair. See Summary. As a result, corn prices have soared more than 40% in recent weeks to as high as $7.33 per bushel this past Monday. See CNN Money Article.

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    Discover What’s Yours

    The Illinois State Treasurer’s Unclaimed Property Division is encouraging people to “discover what’s yours” by visiting its website to see if they have an asset waiting for them in the state I-Cash program. Formerly called “Cash Dash,” the Treasurer’s new program has been unveiled and urges people to search the I-Cash website,
    www.icash.illinois.gov. And the time to search is now: 780,000 additional names were recently added to the public web database by the Illinois State Treasurer’s Office.

    Searching is free, and dollar amounts of cash in the system range from $5 to $500,000-plus. Assets to be reclaimed include everything from stocks and CDs, to safe-deposit boxes and valuables. Read More.

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    CBIS Powered by Nicoud Recaps Obamacare Provisions

    In a 5 to 4 ruling, with Chief Justice Roberts the swing vote, the U.S. Supreme Court upheld the Affordable Care Act (ACA). With this decision, compliance efforts will move ahead with the major provisions effective in 2013 and 2014.
    See Synopsis.

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    FinCEN Marks the End of Paper Filing

    The Financial Crimes Enforcement Network marked the end of paper filing of most FinCEN reporting forms. As of July 1, FinCEN requires electronic filing for all forms except the Currency and Monetary Instrument Report and FinCEN Form 8300 (Report of Cash Payments Over $10,000 Received in a Trade or Business).

    FinCEN said that mandatory e-filing will ensure compatibility with future versions of FinCEN forms. The agency developed universal electronic Suspicious Activity and Currency Transaction Reports to replace the current, industry-specific forms beginning in March 2013.
    Read More from FinCEN.

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    Mortgage Delinquencies Fall to Three-Year Low

    The percentage of first-lien mortgages that were current and performing at the end of the first quarter of 2012 increased to the highest levels in three years, according to a report published by the Comptroller of the Currency.
    See Report.

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    FREE Consumer Tips Available

    Don’t forget to download the free Consumer Tips columns provided by CBAI. Simply go to
    www.cbai.com and click on Publications, then Consumer Tips Columns, and enter your member name and password.

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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.

    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. For more information and to register, please
    click here.

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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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    Baker Market Update

    While the globe’s top physicists have been sidetracked by the discovery of a sub-atomic particle that will help them explain the mysteries of life, they’ve missed something else that’s been happening right under their Newtonian noses.
    Read More.

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    Training the Credit Analyst Slated for August 1-2

    Training the Credit Analyst is designed for credit officers with little or no experience. This two-day seminar teaches participants how to write effective and comprehensive credit analyses which highlight the important trends shown on the financial spread sheet. Topics include identifying financial statement components, recognizing latent notes, and performing ratio analysis and cash-flow analysis. Preparing financial projections by utilizing sensitivity analysis, identifying factors which may impact the ability to repay debt obligations, and understanding how to grade a loan after analysis is completed are also covered. Leading this seminar is Jeffery Johnson, president and founder of Bankers Insight Group, Atlanta, Georgia.

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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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    New FREE Quarterly Ads Available!

    To view a sample of the new Community Banking quarterly ads available to CBAI members, please
    click here.

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    CBAI
    ACT Appraisal

    PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 8/31/2012


    TELEPHONE/WEBCASTS THROUGH 8/31/2012


    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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