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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                                    August 17, 2016

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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • Top 10 Reasons to Attend CBAI’s 42nd Annual Convention!
  • Governor Signs Vehicle Storage Fee Initiative
  • Strong Advocacy Efforts Helped Spur Proposed Call Report Changes
  • CBAI Foundation for Community Bankers Announces New Scholarship!
  • White House: Community Banks Strong Despite New Regulations
  • Investment News From THE BAKER GROUP
  • Kansas City Fed: Ag Credit Conditions Continue to Suffer
  • Rural Mainstreet Economic Index Falls in July
  • CBAI Convention Special Coupon from Midwest Office
  • Dell Back to School Specials for CBAI Member Bank Employees
  • CBAI and Midwest Generate $2.1 Million in Community Bank Savings
  • In the Upcoming Issue of Banknotes Magazine...
  • CBAI LEGAL: FRB Nails Goldman Sachs for Misuse of Exam Reports
  • Has Your Firm Reserved a Spot to Exhibit at CBAI's 42nd Annual Convention & Expo?
  • CBIS Nicoud Offers FREE Webinar: Managing Electronic Transfer Risk
  • Time is Running Out - Donate to Community BancPac Auction Today!
  • CBIS Nicoud: FFIEC Cybersecurity Assessment Tool
  • BSA Graduate School Scheduled for August 23 and 24
  • Home Mortgage Disclosure Act Seminar Slated for September 7 and 8
  • Lender’s Guide to Mortgage Loan Compliance Set for September 27-28


  • Top 10 Reasons to Attend CBAI’s 42nd Annual Convention!

    Entitled “Community Banking Playmakers,” CBAI’s 42nd Annual Convention & Expo makes its first-ever stop in Kansas City, MO, at the Marriott Downtown on September 15-17, 2016. You won’t want to miss CBAI’s showcase event! Although there are countless reasons to attend, below are just a few of the highlights:

    1. Support Community Banking in Illinois!
    This is our profession and we need to show our commitment to community banking and come together to address our challenges and plan for the future.

    2. Expert Speakers!
    United States Congressman Blaine Luetkemeyer, a community banking advocate and member of the U.S. House Financial Services Committee; and Eric Boles, former NFL player and president of Game Changers, Inc., a training and development firm dedicated to maximizing the human asset, lead informative and thought-provoking general sessions you won’t want to miss.

    3. Hot Topics!
    One expert after another provides timely information on the hottest topics in community banking today! You gain access to downloadable versions of the materials for 20 concurrent education sessions following the convention for use in your bank! See Complete Top 10 List. See Convention Details and Registration.

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    Governor Signs Vehicle Storage Fee Initiative

    Last Friday, Governor Rauner signed into law HB 2642 (Cassidy/Koehler) which amends the Labor and Storage Lien Act and the Labor and Storage Lien (Small Amount) Act. P.A. 99-0759 requires repair shops and garages that seek to impose fees in connection with the storage of a vehicle, to provide written notice to the lienholder of record prior to the assessment and accrual of such fees. The written notice must include the rate at which fees will be incurred and must be sent by certified mail.

    The new law also requires repair shops and garages to provide an opportunity to inspect the vehicle on the premises where the vehicle is stored, and allows the lienholder to choose whether to make payment with cash, cashier’s check, certified check or wire transfer. This bill was a joint initiative introduced by the Illinois Credit Union League, and supported by CBAI, the Illinois Bankers Association, and the Illinois League of Financial Institutions.

    CBAI thanks the sponsors, Representative Kelly Cassidy (D-Chicago) and Senator David Koehler (D-Peoria) and also Senate President John Cullerton and his staff for their persistency in getting this bill passed after it initially stalled in the House.

    August 15, 2016

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    Strong Advocacy Efforts Helped Spur Proposed Call Report Changes

    The results are indisputable! Community bankers’ strong advocacy efforts, combined with those of the ICBA and CBAI, have led to the long-awaited proposed changes to the Call Report requirements for community banks. The regulators have proposed that domestic banks with less than $1 billion in assets, approximately 90% of filers, would qualify for a streamlined Call Report. This new report would have 40% fewer data items, bringing the number down from roughly 2,400 to 1,450 and the page count down from 85 to 61. The agencies intend to begin implementing the changes on March 31, 2107. CBAI will be carefully reviewing the 57 page proposal and provide our observations and recommendations for improvements. Read More.

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    CBAI Foundation for Community Bankers Announces New Scholarship!

    Howard & Howard Attorneys PLLC has pledged $50,000 to the Foundation to become a Diamond-level investor. Howard & Howard’s generous pledge enables CBAI to offer a fourth scholarship to the prestigious Community Bankers School, which educates community bankers in every facet of a challenging, but rewarding, career. Howard & Howard joins the Federal Home Loan Bank of Chicago, THE BAKER GROUP, and CBAI’s Career Development Division in offering two-year scholarships to the Community Bankers School.

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    White House: Community Banks Strong Despite New Regulations

    Community bank performance remains strong since financial reforms passed in 2010, according to an issue brief released by the White House Council of Economic Advisers. The report said that while the number of community banks has declined since passage of the Dodd-Frank Act, the industry’s lending health and geographic reach remain strong.

    Nevertheless, the law should be implemented equitably to ensure community banks are allowed to compete on a level playing field, the report said. It cites ICBA-led initiatives to expand deposit-insurance coverage, allow for an 18-month exam cycle, and streamline community bank call reports.

    In a statement, ICBA emphasized that the excessive regulatory burdens facing community banks are due to numerous laws across decades of increasingly complex and onerous regulations. Read CEA Report. Read ICBA Statement.

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    Investment News From THE BAKER GROUP

    Baker Market Update

    If macroeconomics was an Olympic sport, no one would accuse the U.S. of using performance enhancing drugs. Last week, the Commerce Department reported that Retail Sales for July grew by 0.0%. Treading water may be a useful skill for the water polo team, but it’s not much good for economic fortunes See Baker Market Update.

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    Kansas City Fed: Ag Credit Conditions Continue to Suffer

    Agricultural credit conditions continued to deteriorate in the second quarter throughout much of the Midwest, according to a report from the Kansas City Fed. The reserve bank said repayment rates for farm loans softened again and bankers reported a modest increase in both repayment problems and loan application denials. Weak farm income and worsening credit conditions also continued to decreased farmland values, with continued declines expected in the months ahead. Read the Report.

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    Rural Mainstreet Economic Index Falls in July

    The Creighton University Rural Mainstreet Index for July fell from June’s weak reading, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.

    Overall: After improving for four of the last five months, the index, which ranges between 0 and 100, sank to 39.8 from 43.9 in June. This is the 11th straight month the overall index has remained below growth neutral. Over the past 12 months, farm prices have fallen by 9 percent, and livestock prices are off by 16 percent. These weak agriculture commodity prices are pushing the overall Rural Mainstreet economy lower. As a result of weaker farm economic conditions, bankers expect almost one in five crop farmers (19.5%) to suffer negative cash flows where cash expenses exceed cash revenues for 2016.

    The July RMI for Illinois fell to a regional low of 18.1 from June’s 31.8. The farmland-price index increased to 29.4 from June’s 22.7. The state’s new-hiring index slumped to 42.4 from last month’s 48.9. Illinois’ job growth over the last 12 months was -2.7% for Rural Mainstreet, and 1.0% for Urban Illinois. See Mainstreet Economy Report.

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    CBAI Convention Special Coupon from Midwest Office

    The Midwest Office staff is looking forward to the upcoming CBAI 42nd Annual Convention and Expo September 15-17. Come see us at booth 327 for your exclusive for CBAI convention coupon - $25 off! See Offer.

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    Dell Back to School Specials for CBAI Member Bank Employees

    Back to school is more than pencils and books! Discounts for CBAI Member Banks of up to 40% on laptops, desktops, monitors and much more! See Dell Discounts.

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    CBAI and Midwest Generate $2.1 Million in Community Bank Savings

    The Community Bankers Association of Illinois (CBAI) and Midwest Office recently announced that their Preferred Provider partnership has generated more than $2.1 million in CBAI member discounts during the past 5 years.

    “CBAI is pleased that member banks have utilized the Preferred Provider relationship with Midwest to save money on the purchase of office supplies, furniture and equipment,” said Mike Kelley, CBSC President. “Members receive prices competitive with the ‘big box’ stores and delivery is always FREE and FAST.” He added, “In addition to fast, free service and competitive prices, Midwest supports Illinois community banking.”

    “We are honored by the large number of community bankers who have trusted Midwest to deliver quality products at competitive prices,” said Steve DeMarco, Midwest President and CEO. He added, “ Next month, during the CBAI Convention, we intend to announce an exciting new service that will make managing all inventory easier while saving banks money in the process.”

    For more information, please contact Kevin Gaffney via email at kgaffney@midwestoffice.com, or telephone at 866/978-5555.

    Midwest has been a CBAI Preferred Provider since 1999 and was winner of the 2012 CBAI Vendor of the Year. Please visit Midwest in the Preferred Services Aisle during the CBAI Convention in Kansas City next month.

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    In the Upcoming Issue of Banknotes Magazine...

    In the upcoming edition of Banknotes, bankers reveal how CBSC's newest partner, PerformanceDelta, has helped generate new, profitable business for their banks. Look for Banknotes to arrive in September. Additionally, PerformanceDelta will demonstrate its program and offer tips to improve retail banking performance during the CBAI Convention next month.

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    CBAI LEGAL: FRB Nails Goldman Sachs for Misuse of Exam Reports

    State and federal laws prohibit distribution of “confidential supervisory information” from regulators except in the circumstances expressly permitted in the statutes and regulations. Earlier this month, the FRB Board of Governors leveled a $36 million fine and other sanctions on The Goldman Sachs Group, Inc. resulting from unauthorized use of such protected information. See Most Recent CBAI LEGAL.

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    Has Your Firm Reserved a Spot to Exhibit at CBAI's 42nd Annual Convention & Expo?

    Has your firm reserved an exhibit booth for CBAI’s 42nd Annual Convention & Exposition scheduled for September 15-17, 2016, at the Kansas City Marriott Downtown? We have currently sold over 85% of the hall! Don’t lose out on a valuable space in this year’s convention and a way to meet one-on-one with the decision makers of the bank. Please return completed application to Melinda McClelland (melindam@cbai.com) as soon as possible! Reserve your spot today! See List of Current Exhibitors. Complete Application Here.

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    CBIS Nicoud Offers FREE Webinar: Managing Electronic Transfer Risk

    The professionals at Community BancInsurance Services-Nicoud invite you to attend a FREE webinar titled “ Managing Electronic Transfer Risk With Security Procedures and Customer Agreements”. Hosted by Travelers, this seminar discusses how to mitigate the growing risk in cyber fraud. View Webinar Details and Register Here.

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    Time is Running Out - Donate to Community BancPac Auction Today!

    We are in the midst of preparing for Community BancPac’s 25th Annual Silent Auction and 9th Annual Live Auction. Thanks to so 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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    CBIS Nicoud: FFIEC Cybersecurity Assessment Tool

    Some community bankers may be aware of tools provided by the Federal Reserve to help banks make an honest assessment of their exposure to cyber risks, and whether existing controls are sufficient to address emerging and evolving cyber threats. Other bankers, we suspect, may not be as well acquainted. The tools are relatively new, and for many community bankers, the realities of cyber threats are still a struggle to grasp. Read More from CBIS Nicoud.

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    BSA Graduate School Slated for August 23 and 24

    This program is designed for BSA professionals who are competent in the core requirements of Bank Secrecy Act rules and will provide a higher level of lecture, training, and interactive discussion regarding the challenges of developing and managing an effective BSA program. Topics include BSA risk assessment, privately owned ATMs, systems to identify and report suspicious activity, management information systems, new rules and their effect on BSA, recent FinCEN changes, and more. This seminar also addresses the recent customer due diligence (CDD) rules addressing the requirements for verifying the ultimate beneficial owners on accounts held by a business entity. As part of this two-day course, the class learns to manually design an effective BSA program. This is accomplished through the study of workflow charts based on a case study example of an imaginary financial institution. This course then discusses best practices for impacting the bottom line of a BSA program. Students walk through a policy checklist and learn how to conduct a gap analysis to ensure their programs are as refined as possible. Another portion of this course involves a roundtable discussion. The facilitator guides the group through a number of pre-determined discussion topics in addition to topics requested by the attendees. Leading this seminar is Adam Witmer, CRCM, senior consultant with Young & Associates, Inc., Kent, OH, where he focuses on regulatory compliance.

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    Home Mortgage Disclosure Act Seminar Slated for September 7 & 8

    Bankers, now more than ever, need to understand the HMDA rules. While the Home Mortgage Disclosure Act (HMDA) has existed for many years, significant changes are coming that will affect every HMDA reporter. Even though most of the new rules won't be required until 2018, it is important for each financial institution to ensure compliance with the existing rules while also beginning to plan for the unavoidable HMDA changes. HMDA assumes that everyone lives in an absolutely cookie cutter world – which of course is not even close to accurate. Included in this seminar is a discussion of several case studies, some of which will not have a clear answer - and the group will have to determine how to complete the HMDA LAR for these situations. The focus of this seminar will be two-fold. First, the existing HMDA rules are discussed in detail. While some of the existing rules will eventually change due to the new rules, it is important for financial institutions to remain compliant until the changes actually take place in 2018. In addition, many of the existing rules will remain the same under the new rules, making understanding the existing rules even more important. The second part of our seminar focuses on the new HMDA rules, of which the majority will be required for data collected during 2018. In discussing the new rules, we will review the regulation, the associated commentary, and the CFPB HMDA Implementation guide. Leading this seminar is Adam Witmer, CRCM, senior consultant with Young & Associates, Inc., Kent, OH, where he focuses on regulatory compliance.

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    Lender’s Guide to Mortgage Loan Compliance Set for September 27-28

    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. 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 has not been possible in recent years. This seminar will be two very full days in length. It covers all aspects of mortgage compliance that a lender should know, including current rules. All subject covered include all of the latest information available. Leading this seminar is Adam Witmer, CRCM, a senior compliance consultant with Young & Associates, Inc., serving client banks in the Midwest.

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