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 24, 2011 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • CBAI to OCC: Overdraft Guidance Unnecessary
  • Congress to Return From Recess with Much to Accomplish
  • ICBA Leadership Meets with FDIC's Martin Gruenberg
  • FRBC and FDIC to Host Community Bank Symposium
  • Research: Bank Consolidation Bad for Communities
  • FDIC Institutions Report $28.8B Profit
  • Baker Market Update
  • Deputy Comptroller Testifies on Community-Bank Supervision
  • Making Cars Smarter
  • CBAI Foundation for Community Banking Nets $15,000 from Charity Golf Outing
  • Second Quarter Midwest Farmland Values Soar
  • Obama Announces Plan to Boost Rural Small-Biz Lending
  • FFIEC Announces Availability of 2010 Small-Business, Small-Farm, and Community-Development Lending Data
  • CBAI 2011 Officer Compensation Survey Results Now Available
  • New, Free Quarterly Ads Now Available
  • Tips To Help Students Handle Credit Wisely
  • Three New Bits of Information of Interest to Community Banks Regarding the U.S. Treasury’s Go Direct Program, Supported by CBAI
  • Mortgage Loan Compliance Seminar Set for August 29 – September 1
  • Auditing Reg E and the SAFE Act & FACT Act Seminar Set for September 7
  • Advanced BSA Institute Scheduled for September 12-14
  • Sign Up for a One-Day Registration at CBAI’s 37th Annual Convention & Expo


  • CBAI to OCC: Overdraft Guidance Unnecessary

    In a letter to the Office of the Comptroller of the Currency (OCC) CBAI noted, the regulator has stated that through its supervisory process, a small percentage of banks are administering deposit-related consumer credit programs without proper attention to certain risks. CBAI recommends the OCC address the problems directly with those banks rather than subjecting the entire community banking profession to costly and burdensome new regulations.
    Read Comment Letter.

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    Congress to Return From Recess with Much to Accomplish

    Congress will return to Washington after Labor Day with much to accomplish and only 30 working days left on their calendars before year-end. The Independent Community Bankers of America highlights the current status of several legislative and regulatory priorities including; Communities First Act, mortgage lending reforms, interchange, the future of housing finance, and fair value accounting.
    Read ICBA President Cam Fine's article - Final Stretch.

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    ICBA Leadership Meets with FDIC's Martin Gruenberg

    ICBA leadership bankers and senior staff recently met with the FDIC's Acting Director Martin Gruenberg. Representatives from the ICBA discussed the many challenges facing community banks including: regulatory burden, inconsistent and overzealous examinations, capital raising, and sustaining fee income. These challenges are preventing community banks from applying all of their resources to serve their communities and support the fragile economic recovery.
    Read ICBA Chairman Sal Maranca's article - ICBA at the Table.

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    FRBC and FDIC to Host Community Bank Symposium

    The Federal Reserve Bank of Chicago and the Federal Deposit Insurance Corporation will host a Community Bankers Symposium for the 7th consecutive year on Friday, November 18, 2011.

    The conference will consist of presentations on current industry developments and key bank supervision issues. The conference will provide an opportunity for the attendees to have a dialogue on areas of supervisory focus, the banking environment and matters of concerns to them.
    See Details and Register Now.

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    Research: Bank Consolidation Bad for Communities

    Banks may make their communities safer and more prosperous, according to University of Virginia research featured on Washington, D.C., public radio. Research of Virginia communities found that as banks have consolidated and closed branches, predatory financial companies have moved in. The check cashers, payday lenders and title-loan companies that filled the financial gap took advantage of consumers, who also became targets of violent crime after their paydays, researcher Greg Fairchild told WAMU in Washington.
    Read More.

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    FDIC Institutions Report $28.8B Profit

    FDIC-insured commercial banks and savings institutions reported an aggregate profit of $28.8 billion in the second quarter, up $7.9 billion from the same period in 2010. It is the eighth consecutive quarter with a year-over-year increase and was attributed to lower provisions for loan losses.

    The Deposit Insurance Fund balance was positive for the first time in two years, rising from negative $1 billion to positive $3.9 billion in the second quarter due to assessment revenues and fewer expected bank failures. The contingent loss reserve fell from $13.8 billion to $10.3 billion during the quarter.

    Additionally, the number of institutions on the FDIC’s “Problem List” fell for the first time in 19 quarters, from 888 to 865. Twenty-two insured institutions failed during the second quarter, the fourth straight quarter that the number of failures has declined. There were 48 failures in the first half of the year, down from 86 in the same period of 2010. According to the FDIC data, 60 percent of all institutions reported net-income improvements from a year ago, the number of institutions reporting net losses was down 20.8 percent, and the average return on assets rose to 0.85 percent from 0.63 percent a year ago.

    Second-quarter loss provisions were less than half of the $40.4 billion set aside a year ago, asset quality showed further improvement, charge-offs were down, loan portfolios grew for the first time in three years. However, net operating revenue was down 1.8 percent, and realized gains on securities declined by 61.1 percent.
    Read More from FDIC. Access Quarterly Banking Profile.

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    Baker Market Update

    Another strong week for the bond market; equity markets relatively calm; and the consumer Price Index moved higher.
    Read More.

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    Deputy Comptroller Testifies on Community-Bank Supervision

    Deputy Comptroller of the Southern District of the Office of the Comptroller of the Currency Gil Barker testified today on ensuring that the supervision of community banks is balanced, fair, and consistent with OCC policies.
    Read Written Testimony.

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    Making Cars Smarter

    Chicago Fed Letter explores the growing use of electronics to deliver better vehicle performance and more in-car connectivity. The authors of this
    Chicago Fed Letter are Thomas Klier, senior economist, Federal Reserve Bank of Chicago; and James Rubenstein, professor, Miami University.

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    CBAI Foundation for Community Banking Nets $15,000 from Charity Golf Outing

    The CBAI Foundation was the 2011 beneficiary of the Caddyshack Open Golf Tournament held in Springfield in July. Sponsored by Bank of Springfield, Midwest Office Supply (a CBSC preferred service provider), Giganti & Giganti Jewelers, and Staff Carpet & Vinyl, At the August 18 CBAI board meeting, Tom Marantz, chairman of Bank of Springfield, presented CBAI with a check for $15,000. CBAI is extremely gratified by the donation.

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    Second Quarter Midwest Farmland Values Soar

    Latest
    Chicago Fed AgLetter reports highest year-over-year increase in farmland values since the 1970s, at 17 percent, in the second quarter of 2011.

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    Obama Announces Plan to Boost Rural Small-Biz Lending

    President Barack Obama
    announced an initiative to help rural small businesses access capital and to expand rural job-search services. The initiative will double Small Business Administration investment funds for rural small businesses over the next five years. To connect these businesses with private investment capital, federal agencies will launch a series of conferences and create rural capital marketing teams to pitch opportunities to investors. The plan also will expand federal job-search and -training programs and increase rural access to health-care workers.

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    FFIEC Announces Availability of 2010 Small-Business, Small-Farm, and Community-Development Lending Data

    The three federal banking agency members of the Federal Financial Institutions Examination Council (FFIEC) — the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency — announced the availability of data on small-business, small-farm, and community-development lending reported by certain commercial banks and savings associations, pursuant to the Community Reinvestment Act (CRA). An FFIEC disclosure
    statement on the reported 2010 CRA data, in electronic form, is available for each reporting commercial bank and savings association. The FFIEC also has prepared aggregate disclosure statements of small business and small farm lending for all of the metropolitan statistical areas and non-metropolitan counties in the United States and its territories.

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    CBAI 2011 Officer Compensation Survey Results Now Available

    What are officers’ salaries, benefits, and incentives? How much do community-bank directors earn? Is your bank paying its support personnel as much as your peers? Find out this information and more – results are divided by asset size and geographical area. Non-participants that are CBAI member banks can purchase the results for $300; non-participating non-members may do so for $600 (member banks that participate received the results for FREE). Contact the CBAI Department of Communications at 800/736-2224 or
    cbaicom@cbai.com.

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    New, Free Quarterly Ads Now Available

    CBAI offers its new quarterly community-banking ads free to its members. For a preview,
    click here. To order the ads, contact the CBAI Department of Communications at cbaicom@cbai.com.

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    Tips to Help Students Handle Credit Wisely

    As the nation’s college students head back to school, and with a growing number of them planning to use credit cards during the school year, the Independent Community Bankers of America (ICBA) has put together
    tips to encourage students to be responsible when using their credit cards so they can maintain their finances and establish solid credit.

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    Three New Bits of Information of Interest to Community Banks Regarding the U.S. Treasury’s Go Direct Program, Supported by CBAI

    Direct Deposit: Theft Protection for Federal Benefit Payments
    Receiving paper checks for federal benefit payments is risky. Criminals can steal checks out of mailboxes, leaving people who rely on that money for essentials – such as medicine, rent or groceries – in a difficult situation.

    That's one of the reasons why the U.S. Department of the Treasury is moving to all-electronic federal benefit payments. It's important that people not wait until the final March 1, 2013, deadline to make the switch to electronic payments.

    Remind People on the Verge of Retiring: Be Ready to Choose Electronic Payments
    Does your organization work with people who are getting ready to retire? If so, National Save for Retirement Week (October 16-22) is the perfect time to remind them that they will receive their federal benefit payments electronically from day one.
    New materials are available to help you tell people what information they need on hand when they fill out a federal benefit application to help ensure a smooth enrollment process.

    Sign Up for the Go Direct Champions and Community Ambassadors Programs TODAY!

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    Mortgage Loan Compliance Seminar Set for August 29 – September 1

    This August, CBAI is pleased to offer “
    Lenders’ Comprehensive Guide to Mortgage Loan Compliance,” a one and three-quarters day seminar offered in Springfield. During the last few years, Congress and the various federal regulators have crafted revisions to some of the regulations that have been a part of our lives for many years. Additionally, they have added additional regulatory issues to every mortgage loan transaction. As a result, lenders have been struggling to determine what they should do to assure not only that they make a safe and sound loan for the bank, but also that they do so in a manner that will not create regulatory problems for the bank. Topics covered include the SAFE Act, compensation issues, inquiry issues, application issues, processing and underwriting requirements, loan closing rules, and more. Leading this seminar is Bill Elliott, senior consultant and manager of compliance and Young & Associates, Inc., Kent, Ohio.

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    Auditing Reg E and the SAFE Act & FACT Act Seminar Set for September 7

    CBAI is pleased to offer the
    “Auditing Reg E and the SAFE Act & FACT Act” seminar on September 7, 2011, at CBAI’s Headquarters in Springfield. This seminar addresses the basic requirements of the new SAFE Act registration and both the old and new requirements of the FACT Act, as well as the audit techniques to evaluate the financial institution's compliance with those requirements. In the auditing Regulation E portion of this session, attendees learn the audit skills necessary to evaluate compliance with Regulation E, including the 2010 overdraft rules for ATM transactions and one time point of sale transactions. The information provided will be real world applicable and include audit programs that you can take back to work with you and begin using almost immediately. Leading this seminar is Tim Tedrick, partner at Wipfli, LLP in Sterling, IL. Tedrick performs internal audit and compliance exams for all sizes of financial institutions in five states and is involved with technology-and profit-enhancement consulting as well.

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    Advanced BSA Institute Scheduled for September 12-14

    CBAI is pleased to offer “
    Advanced Bank Secrecy Act School,” a three-day institute offered in Springfield this September. This school requires you to take a critical look at a mythical bank fraught with BSA troubles. The class spends the three days of this school analyzing all aspects of the bank’s BSA program and making decisions to turn the program around in a six month time period through assignments that are completed in a group format using laptops, followed by guided general class discussion. While the class includes some lecture material, this course is designed to learn more about BSA by hands on analysis rather than relying on lectures discussing BSA theory. This course is not designed to teach the basic elements of BSA. The class will be most effective for those individuals who have a reasonable working knowledge of the BSA regulation. Leading this seminar is Bill Elliott, senior consultant and manager of compliance, of Young & Associates, Kent, OH.

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    Sign Up for a One-Day Registration at CBAI’s 37th Annual Convention & Expo

    Busy schedule? Fuel up for a day! Sign up for a one-day registration at CBAI’s 37th Annual Convention & Expo, entitled “Community Banking: Fueled by Loyalty.” Held at the Hyatt Regency and Frontier Airlines Center in Milwaukee, WI, your one-day registration for either Friday, September 23, or Saturday, September 24, is only $169 per person. Friday’s included events are the Opening Breakfast with National Speakers Association Hall of Fame inductee Mark Scharenbroich, the Annual Business Meeting Luncheon, two sessions of educational break-outs, and desserts and cocktails in the Exhibit Hall. Saturday’s schedule includes breakfast in the Exhibit Hall, two sessions of educational break-outs, the Recognition Luncheon, and the Closing General Session featuring business owner and author Frank Bucaro. (Tickets for additional activities may be purchased.) Don’t miss out! Register today!

    One-Day Convention Registration

    Full Convention Registration

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    CBAI
    PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 10/15/2011


    TELEPHONE/WEBCASTS THROUGH 9/30/2011


    CBAI EVENTS


    CBAI's 37th Annual Convention & Exposition
    Community Banking -
    Fueled by Loyalty!

    September 22-24, 2011
    Hyatt Regency Milwaukee & Frontier Airlines Center

    CDD Fall Meeting
    developing leadership and teamwork
    October 13, 2011
    Mark Twain Hotel & Packard Plaza, Peoria


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