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Community Bankers Association of Illinois
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     A Bi-Weekly News Bulletin for CBAI Members                         August 7, 2013 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • Community Banks Favored in American Banking Preference Poll
  • CBAI Board Endorses Rosenbaum for FHLB-Chicago Board
  • Senator Kirk Introduces Community-Bank Lending Bill
  • Mega Bank Concerns Over Higher Capital Requirements Refuted
  • Too Big to Fail Is Not Resolved
  • Take Quick Poll on Mega Bank Manipulation of Commodities Markets
  • Third Anniversary of the Dodd-Frank Wall Street Reform Act – Unfinished Business
  • FDIC Sponsoring Teleconference on Interim Final Capital Rule
  • Staff Visit to Washington Reinforces Support for Community Banking
  • CBAI FedPac Cardinal Game Tickets Nearly Sold Out!
  • ICBA President Cam Fine To Speak at CBAI Convention!
  • Baker Market Update
  • Donate Now to Community BancPac Auction!
  • Raskin Nomination for Deputy Treasury Secretary Hailed by ICBA
  • The Complete Guide to the ALLL
  • SHAZAM Spotlight on Service: August 2013
  • KASASA Ad 11 - “Systems vs. Service”
  • CBSC Preferred Provider Sageworks Offers Compliance and Best Practices Resource
  • Think Outside the Box!
  • Midwest Office Announces August 2013 Specials
  • Banking Essentials Seminar Scheduled for August 13 & 14
  • IRA Institute to be Held August 20 & 21
  • Expand Your Mortgage Lending Products Set for August 28 & 29


  • Community Banks Favored in American Banking Preference Poll

    Results from a recent consumer preference poll conducted by GoBankingRates.com found that community banks are preferred by more consumers than credit unions and mega banks. Respondents in the Midwest region preferred community banks the most, at 50.8 percent compared to 28.5 percent for credit unions.
    See Preference Poll Results.

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    CBAI Board Endorses Rosenbaum for FHLB-Chicago Board

    CBAI’s Board of Directors has unanimously endorsed the reelection of Steve Rosenbaum to the Board of Directors of the Federal Home Loan Bank of Chicago. Rosenbaum is Chairman and CEO of Prospect Federal Savings Bank in Worth and has been a community banker for more than 35 years. He is the current Vice Chairman of the FHLB-Chicago where he also serves as Chairman of its Human Resources and Compensation Committee and as a member of the Executive & Governance and Audit Committees.

    In addition, Rosenbaum is one of three members from the FHLB-Chicago serving on the Council of Federal Home Loan Banks which represents the positions and views of the Council’s members to Washington policymakers. Ballots will be mailed in late September, and CBAI encourages all CBAI members that are also FHLB-Chicago members to support Steve Rosenbaum for reelection.

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    Senator Kirk Introduces Community-Bank Lending Bill

    U.S. Senator Mark Kirk (R-IL) joined with fellow Senate Banking Committee members Jerry Moran (R-KS) and John Tester (D-MT) in introducing the Community Lending Enhancement and Regulatory Relief (CLEAR) Act (S. 1349). This legislation would provide much-needed regulatory relief for community banks, enabling them to focus on lending, helping small businesses and communities grow, and creating jobs.
    Read More.

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    Mega Bank Concerns Over Higher Capital Requirements Refuted

    In their lobbying campaign against higher capital requirements, the mega banks have argued that the proposed new thresholds will impede their ability to lend and thrive, thereby harming the economy. However, the New York Times editorial board last week stated that, in an effort to protect the public from another financial crisis, “Higher capital requirements are a start, but tighter regulations reducing complexity and risks are also necessary, including an iron-clad Volcker Rule prohibiting excessive speculation.”
    See NYT Editorial.

    Under the Brown-Vitter Bill (S. 798), which is co-sponsored by Senator Richard Durbin and supported by CBAI and ICBA, the mega banks would have five years from any rulemaking to meet the 15 percent capital target. ICBA’s white paper on TBTF notes that if the five largest mega banks had retained 60 percent of the $233 billion in dividends they paid out in the past five years, they would have attained a leverage equity ratio of 10 percent. The whitepaper also notes that the legislation would not restrict lending and is more likely to boost economic growth. The white paper dispels myths about too-big-to-fail and initiatives to address the problem and states that there are significant sources of credit other than the largest institutions, including community and regional banks. See ICBA’s TBTF White Paper.

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    Too Big to Fail Is Not Resolved

    Internationally-known MIT banking law professor Simon Johnson last week reiterated that the Dodd-Frank Act, even after its provisions are fully implemented, will not end the unfair too-big-to-fail double standard. He opined that mega banks benefit from implicit government subsidies and a high probability of explicit bailouts. CBAI advocates downsizing the mega banks via a series of measures including higher capital thresholds for them and limits on risky investment banking transactions.
    See New York Times Article.

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    Take Quick Poll on Mega Bank Manipulation of Commodities Markets

    Take ICBA’s most recent quick survey on the controversy over mega bank manipulation of commodities markets by clicking on
    ICBA Quick Poll.

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    Third Anniversary of the Dodd-Frank Wall Street Reform Act – Unfinished Business

    July 21, 2013 marked the third anniversary of the Dodd-Frank Act. The intent of the Act was to prevent a recurrence of the events that led to the 2008 financial crisis and address the issue of too-big-to-fail. Key provisions of the Dodd-Frank are still unfinished. Treasury Secretary Jack Lew said recently, “If we get to the end of this year and we cannot, with an honest, straight face, say that we have ended too-big-to-fail, we are going to have to look at other options.” Lew stressed, “It is unacceptable to be in a place where too-big-to-fail has not ended.”
    Read More.

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    FDIC Sponsoring Teleconference on Interim Final Capital Rule

    The FDIC is sponsoring a free 90-minute teleconference that begins at 10:00 a.m. (CDT) on August 15, 2013, to discuss the recently issued interim final capital rule.
    See FDIC Teleconference Details. In addition, the FDIC has consolidated several resources on Regulatory Capital. See FDIC Resource.

    CBAI also has a Basel III Resource Center with helpful information for community bankers.

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    Staff Visit to Washington Reinforces Support for Community Banking

    CBAI's David Schroeder, vice president federal governmental relations, recently called on the offices of every member of the Illinois Congressional delegation and federal regulators to urge support for positions and initiatives which are vitally important to Illinois’ community banks.
    Read More.

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    CBAI FedPac Cardinal Game Tickets Nearly Sold Out!

    Only a few tickets remain for the CBAI FedPac “Business Man’s Special” baseball fundraiser on August 15 at Busch Stadium in St. Louis. Time is running out to secure your ticket to see the second place St. Louis Cardinals battle the first place Pittsburgh Pirates. Click
    here for information on how to secure your tickets today!

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    ICBA President Cam Fine To Speak at CBAI Convention!

    Highlighting the Friday Business Meeting Luncheon at CBAI’s convention is an address by Camden R. Fine, president and CEO of the Independent Community Bankers of America. A native Missourian and career community banker, Fine became president and CEO of ICBA in March 2004. Prior to ICBA, Fine chartered and organized Midwest Independent Bank of Jefferson City, MO, serving as its president and CEO for nearly 20 years. Fine has been a passionate advocate for community bank issues for more than 20 years and has been featured and had opinion pieces published in The Wall Street Journal, The Washington Post, The New York Times, USA Today and The Hill newspapers. He has been recognized by The Hill newspaper and CEO Update as one of Washington, D.C.'s most effective and influential trade association CEOs and lobbyists for five consecutive years. Don’t miss CBAI’s 39th Annual Convention & Expo, “Community Bankers: Illinois’ Treasure,” scheduled for September 26-28, 2013, at the Crowne Plaza in Springfield. Registration is going on now!

    CBAI’s 39th Annual Convention and Exposition is organized just for you, and it’s right here in your own back yard at the Crowne Plaza in Springfield on September 26-28. Register Today!

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    Baker Market Update

    Edward Snowden is not the only one for whom this was a big week. For those not seeking political asylum, the week was filled with market-moving statistics and events. Just this morning, the always much anticipated Employment Report from the Bureau of Labor Statistics (BLS) was unleashed on a marketplace expecting to see a 185k increase in Non-Farm Payrolls.
    See Baker Market Update.

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    Donate Now to Community BancPac Auction!

    The annual silent and live auction for Community BancPac will be held on Thursday, September 26, 2013, during the CBAI Convention at the Crowne Plaza Hotel in Springfield. Now is a great time to donate to this worthy cause. Sporting events tickets, memorabilia, and time shares are popular items and are encouraged.
    See Auction Sponsor Form.

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    Raskin Nomination for Deputy Treasury Secretary Hailed by ICBA

    ICBA has congratulated Federal Reserve Governor Sarah Bloom Raskin upon her recent nomination for Deputy Treasury Secretary. ICBA President Cam Fine noted her experience as a former commissioner in Maryland where she developed a keen knowledge of, and appreciation for, community banks.
    See ICBA Release.

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    The Complete Guide to the ALLL

    The allowance for loan and lease losses (ALLL) calculation is one of the most complex and important processes in a financial institution. While there are many resources available to help with the reserve, Sageworks has compiled all the necessary content to create "
    The Complete Guide to the ALLL."

    Download this e-Book, which includes 10 chapters and other resources and covers:

      • How to classify loans as either FAS 5 or FAS 114
      • Best practices for selecting and documenting qualitative factors
      • How to effectively support a change, positive or negative, to the ALLL
      • Challenges and benefits of migration analysis
      • FASB and IASB proposals and how they could impact an institution

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    SHAZAM Spotlight on Service: August 2013

    SHAZAM Spotlight on Service - What's Inside

      • Identity Theft is No Laughing Matter
      • Looking for Creative Marketing Solutions?
      • Five Ways Mobile Technology Will Change ATMs
      • And more
    Read the August newsletter (No login required; link valid for 30 days).

    Read current and past issues (SHAZAM Access login required).

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    KASASA Ad 11 - “Systems vs. Service”

    Personal service. There was a time when the concept was self-explanatory. Unfortunately, too many of the largest banks seem to have outgrown the very account holders that swell their assets. Kasasa’s “Systems vs. Service” radio spot reminds us that while technology is great, replacing personal touch with automated systems doesn’t always serve the customer – especially when the end goal is better service.

    Free Kasasa checking and savings accounts give account holders the best of both worlds – cutting-edge accounts with rewards like really high interest rates, cash back, refunds on ATM fees, and more, plus trusted community bank personal service. Convenient Kasasa rewards qualifications even save account holders time, through simple things like swiping a debit card instead of writing a check, receiving e-Statements, and logging into online banking!

    Add cutting-edge accounts to your brand of community bank service.
    See Ad.

    Want Kasasa to take your community bank to the next level? Contact Steve Prost via email at steve.prost@bancvue .com, or phone at 847.341.8003. Kasasa is one of the many fine products of BancVue, a CBSC Preferred Marketing Partner.

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    CBSC Preferred Provider Sageworks Offers Compliance and Best Practices Resource

    Sageworks, a financial information company, offers several free resources to help financial institutions with regulatory compliance, best practices and recent industry changes. Topics include ALLL methodology, stress testing analysis, global cash flow analysis, relationship banking and preparing for board meetings and exams. See the
    website for webinars, whitepapers and articles, calculators and worksheets related to stress testing and impairment analysis, an ALLL glossary and additional resources. Go online to learn more about Sageworks or contact Jami Princ at 678-641-4445.

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    Think Outside the Box!

    This cliché has gained even more relevance as bankers consider ways to generate interest income in a historically low interest rate environment, often competing directly against large regional banks and national lenders that are entering their marketplace and capturing loan customers with aggressive terms and conditions. The challenge facing community bankers is how to efficiently grow their loan portfolios in order to achieve maximum profitability. Find out how that challenge can be addressed.
    Learn More.

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    Midwest Office Announces August 2013 Specials

    Compare and save. This
    monthly special is guaranteed through August 31, 2013, while supplies last. These items include Retractable Ballpoint Pens, 10 oz. Cans of Compressed Air, Sparco Pad Holder, 12 oz. Hot Cups, and Standard Self-Stick Notes. Sizes, photos, specifications and prices can be viewed here.

    Midwest Office is committed to offering CBAI members the lowest price on commonly-used bank office 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!

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    Banking Essentials Seminar Scheduled for August 13 & 14

    CBAI is pleased to present “
    Banking Essentials,” a must for the newer community bank employee. This series is designed to provide a complete knowledge of banking principles and operations. It is also geared toward veteran employees as a refresher course. Offered in one location, the four quarters are structured as two, two-day sessions, to cut down on travel for your convenience. As such, quarters one and two are offered on consecutive days in August, and quarters three and four are offered on consecutive days in February. All seminars are held at the CBAI headquarters in Springfield. While it is recommended that the individual attend all four quarters of the series to receive an entire overview of banking, each quarter's material stands alone; one quarter is not a prerequisite for another.

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    IRA Institute to be Held August 20 & 21

    Do you get an uneasy feeling in the pit of your stomach whenever a customer starts asking questions about IRAs? Do you know a little about IRAs but wish someone would take the time to explain more about IRAs to you? Would you have a hard time explaining the differences between a Traditional IRA and a Roth IRA? Would it be stressful for you to describe what a re-characterization is to a customer? Have you ever looked at various IRA forms and not understood why the information that's being requested on them is being requested? If you answered “Yes” to any or all of the above questions then this two-day institute is for you. This
    institute is conducted by Randy J. Heidmann and Robert D. Skomars, consultants at Wolters Kluwer Financial Services.

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    Expand Your Mortgage Lending Products Set for August 28 & 29

    Looking to increase your lending opportunities or to brush up on the current guidelines? Then, this
    program is for you! From the CEO to the processing staff, there is something to learn from each section of the products discussed. FHA, VA, USDA and, of course, the secondary market consisting of Fannie Mae and Freddie Mac are covered. Learn the insurability underwriting requirements as well as the documentation to successfully originate, process, and sell an FHA-insured loan. This course is designed for those who have never originated a VA loan before. What are the guidelines for VA, and how can you best serve your customers with this product? Learn why this is the up-and-coming product offered by the USDA. Get to understand what is considered rural, and how to know if someone qualifies. Learn the principles behind Fannie Mae and Freddie Mac, what they are, and about their functions from origination to the secondary market. What does the future hold? Leading this seminar is Paul R. Grabstanowicz, vice president of training at Mortgage Services III, LLC (MSI), a subsidiary of First State Bank, Mendota.

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