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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                            September 3, 2014

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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • Hotel Deadline for CBAI’s 40th Annual Convention Is September 8!
  • Sign Up for a One-Day Convention Registration!
  • Governor Quinn Signs CBAI Initiative HB 4677
  • Community Bank Performance Improves in Second Quarter
  • CBAI Leadership Bankers and Staff Meet with Senator Durbin
  • CBAI Endorses David Pirsein for the Chicago FHLB Board
  • CBSC Launches New Quick Poll
  • Five Scholarships To Be Awarded at CBAI Convention! Are You Eligible?
  • Baker Market Update
  • Fed's Yellen: Labor Market 'Has Yet to Fully Recover'
  • Rural Mainstreet Index Declines in August
  • CBAI Bankers Celebrate ICBA’s Midwest Community Bank Day
  • 2014 CDD Fall Meeting Slated for October 20-21 in Champaign
  • Farm Managers and Appraisers Survey Results Released
  • News From the Bench: Joint Account Right of Survivorship Survives Challenge From Estate Executor
  • Agencies Release Guidance Regarding Unfair or Deceptive Credit Practices
  • ICBA: Review of Bank Regulations Must Have Substantial Impact
  • Order 2014 Holiday Signs TODAY!
  • Is Legalized Marijuana a Viable Market for Community Banks?
  • Safe Deposit Operations, Compliance, Legal & Disaster Issues Set for October 1
  • Run, Hide, Fight, or Comply? Robbery Training Scheduled for October 8
  • Ag Credit Analysis to be Held October 9
  • Appraisal Review Scheduled for October 15


  • Hotel Deadline for CBAI’s 40th Annual Convention Is September 8!

    Make your hotel reservations now at the Chicago Marriott Downtown for CBAI’s 40th Annual Convention & Expo, scheduled for September 18-20, 2014. Deadline for hotel reservations has been extended until Monday, September 8. After this date, room reservations are confirmed on a space-and-rate available basis. Call the Marriott Downtown Chicago at 866/596-7456 to book your room today! When you call for hotel reservations, be sure to identify yourself as a CBAI convention attendee to receive the special room rate of $209 plus tax for singles or doubles.

    More than 100 community banks are already registered for “Looking to the Past to Plan for the Future,” CBAI’s 40th Annual Convention & Expo. With countless highlights including expert speakers on the hottest topics for community bankers, a jam-packed 100-booth exhibit hall with the latest products and services for community banks, dynamic general sessions, and fun and exciting social events, this year’s convention is a must! Come celebrate our 40th anniversary with us in Chicago!

    For more information on the 40th Annual Convention & Expo, please click here.

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    Sign Up for a One-Day Convention Registration!

    If you cannot get away for CBAI’s entire 40th Annual Convention & Expo, scheduled for September 18-20, 2014, join us for a day! You can sign up for a one-day registration and still take advantage of break-out sessions featuring the hottest topics in community banking today, expert general session speakers, and a jam-packed 100-booth exhibit hall with the latest products and services for community bankers! Friday’s schedule features former NFL quarterback and highly sought-after speaker and leadership expert Tom Flick, the annual Business Meeting Luncheon, desserts and hospitality in the Exhibit Hall, and two series of education break-out sessions. Saturday’s highlights include the Closing General Session with CBAI member-favorite David Kemp, founder of Bankers Management, Inc., breakfast in the Exhibit Hall, the Recognition Luncheon, and two series of education break-out sessions. Just choose which day works best for you and come celebrate our 40th anniversary with us in Chicago!
    Register Now! Please click here to add a reminder to your Outlook calendar for CBAI's showcase event!

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    Governor Quinn Signs CBAI Initiative HB 4677

    Governor Quinn signed into law HB 4677 (P.A. 98-1067) on August 26th. HB 4677 is trailer legislation for a 2013 CBAI initiative (HB 1335/ P.A. 98-0387) that amended the “good funds” disbursement authorization provisions of the Title Insurance Act to allow financial institutions and title companies that know each other and both agree to use cashier’s checks, teller’s checks and certified checks as settlement funds in transactions greater than $50,000. At the request of the Illinois Land Title Association, HB 4677 removes the provision that the title company and financial institution be “known to each other” and adds a provision that in order to use cashiers, tellers or certified checks as settlement funds, the funds must be used to disburse a loan and closing costs funded by the financial institution. Finally, HB 4677 removes a sunset provision that would have repealed all the new changes to the statute.

    HB 4677 will finalize changes that have been sought by CBAI for five years to amend the settlement funds section of the Title Insurance Act and allow financial institutions and title companies to agree to the use of funds other than wire transfers or collected funds in transactions greater than $50,000. This will allow for more flexibility for community banks and title companies and will reduce closing costs for consumers.

    CBAI appreciates the hard work and effort by both of the sponsors, Representative Ron Sandack (R- Downers Grove) and Senator John Mulroe (D-Chicago). CBAI also thanks Governor Quinn for his support.

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    Community Bank Performance Improves in Second Quarter

    Community banks earned $4.9 billion in the second quarter of 2014, a 3.5 percent increase from a year ago, according to the FDIC’s Quarterly Banking Profile.

    The agency said loan balances at community banks grew at a faster pace than in the industry as a whole, asset-quality indicators continued to show improvement, and community banks again accounted for 45 percent of small loans to businesses. In the second quarter there were 6,163 community banks (93 percent of all FDIC-insured institutions) with assets of $2 trillion (13 percent of industry assets).

    Overall, FDIC-insured financial institutions reported aggregate net income of $40.2 billion in the second quarter of 2014, a 5.3 percent increase from the previous year. The number of "problem banks" fell for the 13th consecutive quarter, with the number of banks on the FDIC's "Problem List" declining from 411 to 354.

    The Deposit Insurance Fund rose to $51.1 billion as of June 30 from $48.9 billion at the end of March. Estimated insured deposits declined by 0.2 percent, and the DIF reserve ratio rose to 0.84 percent from 0.80 percent the previous quarter and 0.64 percent a year ago. See FDIC Release. See Quarterly Banking Profile.

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    CBAI Leadership Bankers and Staff Meet with Senator Durbin

    CBAI leadership bankers and staff met with Illinois Senator Richard Durbin on August 21st to discuss issues of importance to Illinois community banks. The Bank of Springfield hosted this roundtable discussion during the Senate’s August recess. Read More.

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    CBAI Endorses David Pirsein for the Chicago FHLB Board

    CBAI is urging all community banks to vote only for David Pirsein, President and CEO of First National Bank in Pinckneyville, for election to the Federal Home Loan Bank of Chicago Board of Directors.

    The ballots are scheduled to be mailed to all FHLB member institutions around September 22nd. Banks need to adopt a board resolution to be eligible to vote. See Announcement.

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    CBSC Launches New Quick Poll

    Community BancService Corporation, Inc. (CBSC), the business-services affiliate of Community Bankers Association of Illinois (CBAI), has launched a new Quick Poll feature for CBAI member banks. The poll is designed to measure community bankers’ opinions on a number of banking-related topics. Read News Release.

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    Five Scholarships To Be Awarded at CBAI Convention! Are You Eligible?

    Time Running Out For Your Bank to be Eligible for the 2014 Drawings!

    Complete the pledge form to become eligible for scholarships for your employee's children and scholarships for your employees to attend the Community Bankers School. Act Now!

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    Baker Market Update

    The practically preordained invasion of Ukraine by Mother Russia brought more angst to investors already made nervous by their knowledge of history. Investors had to be buoyed by the second, and upward, revision of 2nd Quarter GDP. The bounce-back was a little higher than anticipated as the Bureau of Economic Analysis' latest estimate of national output inched a big higher to 4.2% from the previously estimated 4%. The third and final revision is expected on September 26. Better good news came in the form of a resounding 22.6% jump in Durable Goods Orders. Personal Spending fell by .1% in July, while Personal Income rose slightly by .2%. See Baker Update.

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    "CBAI Connected to Community Banking" Is Sponsored
    by The SHAZAM Network


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    Fed's Yellen: Labor Market 'Has Yet to Fully Recover'

    U.S. labor markets remain hampered by the effects of the Great Recession and the Federal Reserve should move cautiously in determining when interest rates should rise, Federal Reserve Chair Janet Yellen said on August 22nd at the Federal Reserve Bank of Kansas City Economic Symposium.

    Yellen noted that other barometers of the job market, such as the low number of Americans participating in the labor force, “suggest that the decline in the unemployment rate over this period somewhat overstates the improvement in overall labor market conditions.” Her speech included lengthy references to the possibility that labor markets may in fact be tighter then they seem, and the Fed may be at risk of having to raise rates sooner and faster than expected. Read More.

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    Rural Mainstreet Index Declines in August

    According to the most recent Creighton University survey of community bank CEOs in rural areas of 10 Midwestern states, rural economic trends are continuing to decline as farm land prices dropped for the ninth straight month, and farm equipment sales declined to a record low. See Mainstreet Economy Report. See Survey Details.

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    CBAI Bankers Celebrate ICBA’s Midwest Community Bank Day

    CBAI bankers helped celebrate ICBA’s Midwest Community Bank Day at the historic Flossmoor Country Club. After informative presentations the participants hit the links to play this course which was honored with Golf Digest’s Renovation of the Year award. Read More.

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    2014 CDD Fall Meeting Slated for October 20-21 in Champaign

    Be a Game-Changer! That is the challenge presented at the General Session for the CDD Fall Meeting.

    • Change bad habits to achieve your goals.
    • Overcome road blocks in communication.
    • And more!

    To view the brochure or to register, please click here or contact Melinda McClelland at 217.529.2265.

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    Farm Managers and Appraisers Survey Results Released

    The Illinois Society of Professional Farm Managers and Rural Appraisers conducts a survey half way through the year to evaluate trends in farmland prices and cash rents. This information supplements the Society’s larger efforts at year-end to document farmland prices and cash rents across Illinois.

    Summary points from the 2014 mid-year survey are:

    • During the first half of 2014, farmland prices decreased modestly. Results suggest decreases between 2.0 and 4.1 percent, depending on the quality of farmland.
    • Most respondents expect stable to modestly declining farmland prices over the next twelve months.
    • Most respondents expect corn prices to average $3.75 per bushel for the 2014 crop. Most respondents expect interest rates to be stable or rise less than 2 percentage points over the next year.
    • Most respondents expect 2015 cash rents to be lower than 2014 rents. Expected decrease is $33 per acre.
    For more details, please click here.

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    News From the Bench: Joint Account Right of Survivorship Survives Challenge From Estate Executor

    In a June 20th opinion, an Illinois Appellate Court upheld a joint accountholder’s right of survivorship, rejecting the argument of the deceased accountholder’s estate executor that the survivor had been added to the account merely as a convenience and so the Court should have ruled that a “convenience account” does not transfer funds by survivorship and the account should instead have gone to the deceased accountholder’s estate. For more information on the case of Konfrst vs. Stehlik, click here.

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    Agencies Release Guidance Regarding Unfair or Deceptive Credit Practices

    The Office of the Comptroller of the Currency, the Federal Reserve, the Consumer Financial Protection Bureau, the FDIC, and the National Credit Union Administration issued a statement to clarify that the repeal of credit-practices rules applicable to depository institutions does not mean that the unfair or deceptive acts or practices described in those former regulations are permissible.

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    ICBA: Review of Bank Regulations Must Have Substantial Impact

    ICBA called on federal banking agencies to ensure their mandatory review of existing regulations has a substantive impact in alleviating excessive regulatory burdens on community banks. CBAI fully supports ICBA’s position.

    In a comment letter on the Economic Growth and Regulatory Paperwork Reduction Act review, ICBA expressed deep disappointment with the outcome of the first EGRPRA review process 10 years ago, which had little impact on regulatory burden. To ensure the current two-year review is effective, ICBA called on regulators to:

    • hold at least six outreach meetings around the country to gather community bank input,
    • set up an EGRPRA.gov website and list the 10 most burdensome regulations, and
    • establish a director of the EGRPRA review process who can overcome the objections of individual agencies and resolve interagency disputes. Read ICBA Comment Letter.
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    Order 2014 Holiday Forms TODAY!

    Show your community bank’s seasonal spirit through holiday-themed forms and envelopes. CBAI preferred provider Harland Clarke offers affordable stock and custom designs to help you spread the spirit of the season! And stock up on All-Occasion Envelopes and Cards to help your account holder give gifts of money for graduation, birthday, and other times when a thank you or congratulation is needed.

    Click on the links below to view the 2014 Holiday Catalog or Financial Forms Catalog:

    Holiday Financial Forms and Envelopes
    Financial Forms and Services

    Place your 2014 Holiday Forms Order Today
    Phone: 1.800.552.2902
    Fax: 1.800.647.7796
    Email: forms@harlandclarke.com

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    Is Legalized Marijuana a Viable Market for Community Banks?

    Illinois recently enacted a medical marijuana law, and licenses will soon be granted to businesses for the purpose of producing marijuana in Illinois. Bankers are uncertain about the legal and regulatory ramifications of providing financial services to these new start-ups. According to some risk analysts, community banks that are located completely within a state’s borders often do not face the same regulatory threats as regional banks when doing business with the marijuana industry. In fact, many community banks have decided to approach the industry aggressively as there is considerable profit potential. See Bank Systems Article.

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    Safe-Deposit Operations, Compliance, Legal & Disaster Issues Set for October 1

    Are your internal safe-deposit procedures now in compliance with all state and federal security regulations and do you follow correct day-to-day operating procedures? This timely and comprehensive presentation contains important information about your “Most Frequently Asked” operations and compliance questions. It covers the SCRA, USA Patriot Act, Suspicious Activity Reporting, Bank Protection Act, OCC, FDIC, NCUA and ADA regulatory requirements, plus recommended procedures for renting, surrendering, box access, key control, deceased renters, living trusts, payable-on-death accounts, delinquent boxes, record retention, unclaimed property and many other legal and operation issues. David McGuinn, a nationally known expert in the area of safe deposit, leads this
    program. McGuinn will provide clear, concise answers to complicated questions regarding your institution's responsibility and potential liability. He identifies and discusses various compliance issues and provides correct procedures for each regulatory, operations, liability, and disaster topic. McGuinn, president and founder of Safe Deposit Specialists, is a former banker with 45 years of safe-deposit experience.

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    Run, Hide, Fight, or Comply? Robbery Training Scheduled for October 8

    Thinking it was a normal bank robbery, three bank employees complied with the demands of the “robber.” He ultimately took all three employees hostage as part of a rambling daylong ordeal that ended in tragedy, and not until it was too late did anyone realize that the perpetrator never intended to rob the bank. Bank employees in other market areas began asking: What should I do if I am ever in the same position? At what point do I consider other alternatives rather than complying with the robber’s demands? How do you know what to do if it looks like it’s a robbery but then it’s not? Help, I need some guidance to deal with a new world of active threats! Jim Rechel of The Rechel Group, Inc. who worked with the bank and its employees to develop a response to the tragedy, and provided guidance for the future, leads this program. We have put the ideas and strategies together into a full-day workshop for institutions of all sizes and locations, to provide information that can better equip you to deal with “active threats” in the workplace.

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    Ag Credit Analysis to be Held October 9

    An agricultural loan officer's responsibility is to perform sound credit analyses and make loans to good customers. This requires a strong understanding of basic agricultural credit analysis, as well as, the drivers of change in the agricultural production sector. The overall objective of this program is to prepare participants to be informed and effective leaders in agricultural lending. A primary focus of the workshop is to review the basic financial statements and ratios that are important to measuring and monitoring the credit risk of agricultural borrowers. Case studies and computerized decision tools are used to illustrate the important concepts. Other contemporary issues such as farmland markets, rental agreements, crop insurance, and other risk management tools are discussed. All participants receive a complimentary copy of computerized decision tools used in the workshop. Leading this seminar is Dr. Paul Ellinger, professor at the University of Illinois, in Champaign-Urbana. He is currently head of the Department of Agricultural and Consumer Economics at the University of Illinois.

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    Appraisal Review Scheduled for October 15

    Since 2010, all regulatory agencies have increased their expectations regarding a bank’s review of property appraisals. A checklist simply does not suffice anymore, particularly on commercial property appraisals. Banks must gain a better understanding of the appraisal process and of the appraisals it receives. Just because an appraiser is on the bank’s approved appraisal list doesn’t mean the bank should accept his or her work without question or review. Banks are expected to thoroughly review the appraisals, and question the assumptions contained therein when necessary. This seminar focuses on the regulatory requirements and expectations regarding the review of third-party appraisals and in-house evaluations. Both single-family-dwelling and commercial-property appraisals will be discussed. Depending on the individual institution’s structure, this seminar should be attended by personnel from loan administration, underwriting/credit analysis, to all general loan personnel. Leading this seminar is Aaron Lewis, a consultant in the lending division of Young and Associates, Inc. For more information or to register, please click here.

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