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Community Bankers Association of Illinois
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     A Bi-Weekly News Bulletin for CBAI Members                      September 4, 2013 Graphic
Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • Tight Schedule? Sign Up for a One-Day Convention Registration!
  • Time is Running Out! Donate to the Community BancPac Auction Today
  • Banks Vulnerable to Same Attack That Hit NY Times Website
  • It’s Time to End the Credit Union and Farm Credit Tax Subsidies
  • Community Banks Experiencing Faster Loan Growth Than Mega Banks
  • Too-Big-To-Fail Funding Advantage Not a Myth
  • Mega Banks Rack Up Mega Legal Bills
  • Analyst: JPMorgan Worth 30% More If Broken Up
  • Punch List of Top Priorities for Bank Directors
  • Statement by Comptroller Curry on Reproposal of Risk Retention Rule
  • Baker Market Update
  • CDD Annual Fall Meeting To Be Held October 22
  • Sageworks Releases Financial Institutions Union Examination Survey
  • KASASA Ad 13 - “I Am A Customer!”
  • September Consumer Tips Column Now Online
  • Why Winning Matters
  • Fox Business Praises Community Banks: Bank CEO Gives Away Free Gas
  • Beware Insurance Exports Who Share Advice
  • Auditing BSA Scheduled for October 1
  • CFO Conference to be Held October 7 & 8
  • IT Update: Is Your Data Really Safe? Scheduled for October 9 & 10
  • Women in Community Banking Conference Set for November 19

  • Tight Schedule? Sign Up for a One-Day Convention Registration!

    CBAI’s 39th Annual Convention & Expo is just around the corner! Scheduled for September 26-28, 2013, at the Crowne Plaza in Springfield, this year’s convention is entitled “Community Bankers: Illinois’ Treasure.” If you have a tight schedule that week, we still don’t want you to miss out on the networking opportunities with fellow community bankers, the timely education sessions with expert speakers, a sold-out 100-booth exhibit hall, outstanding keynote speakers, and more. If your tight schedule prevents you from attending the entire convention, take advantage of our one-day registration option, just $179 for Friday or Saturday!

    In addition, for just $109, you can register for the education sessions and exhibit hall only. This choice includes all sessions in the exhibit hall and all education break-out sessions, excluding meals and evening social functions. Don’t miss out! Come to Springfield and meet up with hundreds of community bankers from across the state!
    Register Now!

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

    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 encouraged. In order to be recognized as a contributor to the Community BancPac Silent and Live Auctions, donations must be received by Friday, September 13.
    See Auction Sponsor Form.

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    Banks Vulnerable to Same Attack That Hit NY Times Website

    Banks have good reason to pay attention to the cyberattack that hit the New York Times, Twitter, and Huffington Post websites. The underlying issue relates to websites that rely on a third party as domain name registrar.
    Read More.

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    It’s Time to End the Credit Union and Farm Credit Tax Subsidies

    With Congress in the initial stages of a comprehensive tax code rewrite, it is taking a “blank slate” approach to tax reform whereby all special tax subsidies and expenditures are under review. CBAI and ICBA are calling on Congress to wean the credit unions and the Farm Credit System from their tax subsidies which costs taxpayers billions of dollars a year and distorts the competitive marketplace.

    In his most recent blog post, ICBA President Cam Fine notes how the credit union industry has mounted a social media campaign called, “Don’t Tax My CU” to defend their tax subsidy.
    See ICBA Blog.

    Mr. Fine will address the CBAI convention delegation during the Annual Business Meeting Luncheon on Friday, September 27, 2013, at the Crowne Plaza in Springfield. There’s still time to register for the 39th annual convention. Register Today!

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    Community Banks Experiencing Faster Loan Growth Than Mega Banks

    According to research by Keefe, Bruyette & Woods, small banks experienced annualized loan growth of more than 6% in the second quarter, compared to less than 2% at the 25 largest banks. The loan-growth figures include everything from mortgages to auto loans, credit cards and business loans.
    See WSJ Article.

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    Too-Big-To-Fail Funding Advantage Not a Myth

    Despite claims to the contrary, the nation’s largest financial firms enjoy a funding advantage over smaller institutions due to their perceived too-big-to-fail status, according to
    ICBA’s “End Too-Big-To-Fail” white paper.

    The white paper dispels myths about too-big-to-fail, including the myth that studies have shown that there is no funding advantage. More information on too-big-to-fail, including more myths and facts, an ICBA video and survey results on the issue, is available on ICBA’s “End Too-Big-To-Fail” website.

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    Mega Banks Rack Up Mega Legal Bills

    According to Bloomberg, the six largest too-big-to-fail banks have incurred at least $103 billion in legal bills and settlement payouts since their roles were exposed in the financial crisis that wrecked the global economy. These costs were greater than the combined amounts paid to their shareholders over the past five years. Bloomberg also reported that the money spent on lawyers and settlements is more than the value of the banks’ combined profits last year.
    See WSBE Article.

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    Analyst: JPMorgan Worth 30% More If Broken Up

    The largest U.S. mega bank would be worth 30% more if broken into its four business units, according to KBW’s Christopher Mutascio. He noted that JPMorgan’s traditional banking, investment banking, asset management, and private equity components are separately worth $256 billion, compared with the bank’s current $197 billion market capitalization. CBAI and ICBA advocate downsizing the mega banks deemed too-big-to-fail based on their sheer size and complexity.
    See Bloomberg Report.

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    Punch List of Top Priorities for Bank Directors

    Wolters Kluwer’s Ed Kramer has assembled his punch list of the top supervisory and exam issues confronting bank directors today. Wolters Kluwer is a preferred marketing partner of Community BancService Corporation.
    See Article.

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    Statement by Comptroller Curry on Reproposal of Risk Retention Rule

    Comptroller of the Currency Thomas J. Curry released a statement on the reproposal of the risk retention rule required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. He noted that the reproposal makes important strides in ensuring that the mortgage markets can operate in a safe and sound manner while meeting the needs of creditworthy borrowers.
    See Statement.

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    Baker Market Update

    For a week in which the gyrations of Miley Cyrus garnered more attention than those of the credit markets, that doesn’t mean that bond prices didn’t do some movement of their own. With last week's release of a surprising downturn in orders for Durable Goods, bond prices rose throughout the day, bringing the yield on the Benchmark Treasury Ten Year Note down to around 2.78% from its session - opening 2.83%.
    See Baker Market Update.

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    CDD Annual Fall Meeting To Be Held October 22

    CDD Annual Fall Meeting, scheduled for October 22, 2013, at the Marriott Hotel Pere Marquette, Peoria, is geared toward honing professional and banking skills. In addition to the educational offerings, this year's meeting includes an excellent networking opportunity at the hotel the evening of October 21; entertainment for the evening is "Coole 2 Duel” a dueling-piano show. The Fall Meeting begins with the popular Networking Session, a roundtable discussion among bankers sharing job responsibilities. This event is followed by a Legislative Update by CBAI's Kraig Lounsberry. Elaine Hand then presents the general session entitled, “Lead Out Loud: Learning to Lead Within the Comforts of Your Personality Style.” Following the Business Meeting Luncheon, the afternoon agenda features breakout sessions and a second Networking Session with roundtable discussions on a variety of topics. The Fall Meeting concludes with a second general session again with Elaine Hand.

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    Sageworks Releases Financial Institutions Examination Survey

    With the help of 165 financial institutions, Sageworks has released its exclusive "2013 Findings: Sageworks Bank & Credit Union Examination Survey." The 44-page report includes recommendations that these institutions received during federal exams during the past 12 months. Responses are anonymously broken down by regulatory agency, with sections related to the OCC, FDIC, Federal Reserve, and the NCUA, and cover:

      • Credit administration and asset quality
      • Allowance for loan and lease losses
      • Stress testing
      • Management and compliance with federal banking regulations
    report is available at no charge to members of Community Bankers Association of Illinois (CBAI). Sageworks is a CBSC Preferred Marketing Partner and provides financial analysis solutions to more than 1,000 financial institutions nationwide. Sageworks is uniquely positioned to work with financial institutions to collect responses and share results with select institutions.

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    KASASA Ad 13 - “Tuesday Promotion”

    What good are rewards that are impossible to redeem? Kasasa’s “Tuesday Promotion” radio commercial illustrates the ridiculous hoops customers have to jump through, just to get rewards that don’t really matter. Unlike free Kasasa checking and savings accounts – accounts that pay in real cash, like refunds on ATM fees, really high interest rates, and more!

    Not to mention, it’s easy to earn Kasasa rewards. Just do simple things like swipe a debit card at checkout, instead of writing a check. And use free tools like e-Statements and online banking. Easy Kasasa monthly qualifications save your account holders time, and save your community bank money.

    Plus, there’s never a minimum balance requirement to earn Kasasa rewards. And account holders can enjoy the freedom to earn rewards each and every month, not just promotional offers that only help out on certain days of the week.
    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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    September Consumer Tips Column Now Online

    The FREE, monthly Consumer Tips Column is now
    online, available in the Members Only section of the CBAI web site. This month’s subject is “Know Your Facts Before Purchasing Insurance Coverage.”

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    Why Winning Matters

    Every year at this time we tune up for the NFL season with pre-season games. Do they keep score? Yes. But in this case, it really isn’t the score that matters, just the evaluation of talent. That is….until the regular season starts. Then, a phrase often connected with Vince Lombardi, Hall of Fame coach of the Green Bay Packers, can be heard loudly across 32 team locker rooms, “Winning isn’t everything – it’s the only thing.”

    To have the success that each NFL team wants – and each bank seeks, you must believe in what you are doing, execute each play/opportunity/task, hold each other accountable, and measure – keep score of the results. Are you winning the game?
    See Article.

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    Fox Business Praises Community Banks: Bank CEO Gives Away Free Gas

    Coulee Bank, Wisconsin, CEO Brad Sturm recently appeared on FOX Business’ Cavuto show and discussed the distinctions between Main Street and Wall Street banks. They also discussed efforts to improve the reputation of community banks and attract more customers.
    See Video.

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    Beware Insurance Exports Who Share Advice
    Patti Tobin, CIC, Community BancInsurance Services powered by Nicoud

    Throughout my 30-year career writing insurance for financial institutions, I’ve had many opportunities to listen to or read the advice of many self-proclaimed “bank insurance experts.” I've found that the true experts never identify themselves as anything other than “still learning students of the trade.”

    Recently, a number of CBAI member bankers contacted CBIS Nicoud concerned that their insurance broker told them that their D&O policies included a regulatory exclusion. That’s absurd!
    Read More.

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    Auditing BSA Scheduled for October 1

    A financial institution’s Bank Secrecy Act (BSA)
    program continues to be under close scrutiny in today’s regulatory environment. An inadequate BSA program will almost certainly bring an administrative action – either formal or informal – against the financial institution. One particular area receiving criticism by examiners is the bank’s annual independent review of BSA. Are your audit procedures up to date, comprehensive, and independent? Attend this seminar to review the adequacy of your BSA review program. This seminar provides information on a comprehensive approach to completing a thorough BSA audit. In addition to the manual, practical BSA review documents to assist the auditor in the completion of BSA reviews are provided. The program is designed as an update for experienced BSA officers and auditors employed by financial institutions. This is not an introductory program nor is it designed to meet the training needs of the general staff or those with very limited BSA experience. Leading this seminar is Bill Elliott, senior consultant and manager of compliance at Young & Associates, Inc., Kent, OH.

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    CFO Conference to be Held October 7 & 8

    High-performing financial institutions are those that have learned to effectively manage risk. This
    conference examines a practical approach to risk management that focuses on managing strategic, as well as operational risk. It also discusses managing vendor risk. Managing compliance risk is also covered. This conference presents insights on how banks are organizing, staffing, and implementing cost-effective, risk-based compliance management programs. It also discusses areas of current regulatory focus and the impact of new regulations and increased regulatory scrutiny of the bank's compliance and compliance programs. Finally, managing credit risk is examined. Participants are provided with current information on the credit-risk environment and share credit-risk management lessons learned from failed banks. Leading this seminar is Ken Proctor, director of risk management for Abound Resources.

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    IT Update: Is Your Data Really Safe? Scheduled for October 9 & 10

    How safe is your data? This
    program reveals how and why the continued advancements of technology have created security nightmares for financial institutions. Examples of disaster recovery, cyber security, and vulnerability cases are reviewed to show various lapses in coverage and how to prevent the same problems from arising in banks in the future. While looking at past examples of disaster-recovery cases, this program analyzes how to develop an effective disaster-recovery plan that includes the challenges that compliance poses. Cyber security is also a concern for every organization. It's not just external sources that are putting the security of your organization at risk; IT resources are moving outside the firewall, and as your enterprise distributes applications and data across more devices, it has become ever more critical that you extend security protection beyond the perimeter. Leading this seminar is Jim Kellenberger, with LRS IT Solutions, who specializes in system z and storage systems disks, tape, and business continuity plans, and Michael Monticello, who serves as IBM security services threat research and intelligence principal.

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    Women in Community Banking Conference Set for November 19

    Mark your calendar today for CBAI’s seventh annual Women in Community Banking Conference on Tuesday, November 19, at the Crowne Plaza in Springfield. Highlighting the conference is motivational speaker and comedienne
    Kelly Swanson, who will present two keynotes, Who Hijacked My Fairytale? and Stand Up and Stick Out in a Crowded Market. This conference helps restore your passion for work and home and find a renewed sense of purpose. You learn how to set yourself apart from the competition, motivate yourself to deal with stress and change, inspire others to form stronger teams, and much more! Other conference highlights include a social event on Monday evening, a mini-exposition featuring the latest products and services, and networking luncheon by area of banking. Don't miss this opportunity for invaluable networking, powerful information, and a great career move. Not only do you benefit both personally and professionally, you leave this conference motivated, energized, and inspired! More information will be available soon!

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