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 5, 2012 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois

  • Sign Up for One-Day Registration at CBAI’s 38th Annual Convention
  • CBSC Preferred Providers to Address CBAI Convention
  • Last Call for Golf Balls!
  • CBAI News From the Front
  • How Will Basel III Impact Your Community Bank?
  • FDIC Releases Second Quarter Financial Report
  • Requirement of “Birth Certificate” Name on UCC Filings Reversed
  • U.S. Growers Expect a 13% Decline in Corn Crop
  • Record Farm Income Forecast for 2012
  • Dissecting a Disaster... the Drought of 2012
  • Value of Illinois Farmland Continues to Rise
  • Fed Releases Beige Book on Economic Conditions
  • Baker Market Update
  • FHLB Election: CBAI Backs Ashworth and Greenbank
  • Home Equity Line of Credit Scams on the Rise
  • First Data: FREE Online Banking Webinar
  • Sageworks Whitepaper and Webinar Addresses Proper ALLL Calculation
  • AM Community CU May Have Been Over Extended on MBL
  • Free News Release on Responsible Credit for Students Available
  • OCC Ditches Outdated Documents
  • Auditing IT for Financial Auditors Scheduled for September 12
  • Global Cash-Flow Analysis Set for October 2 & 3
  • Consumer Lending Institute Scheduled for October 15-17
  • CDD Fall Meeting Set for October 23


  • Sign Up for One-Day Registration at CBAI’s 38th Annual Convention

    Busy Schedule? Join us at CBAI’s 38th Annual Convention & Expo for a day! Register to attend either Friday or Saturday’s events for just $179 (includes breakfast and lunch), or attend the education and Exhibit Center only for just $109 (does not include any meals or social functions).

    Friday’s events include the Opening Breakfast with author and renowned speaker Dan Thurmon, the Business Meeting Luncheon, two concurrent education break-out sessions, and desserts and hospitality in the Exhibit Center. Saturday features three concurrent education break-out sessions, breakfast in the Exhibit Center, the Recognition Luncheon, and the Closing General Session with Steve Ford, successful actor and son of former President Gerald Ford. Don’t miss out!
    Register today for “Building for Tomorrow,” scheduled for September 20-22, 2012, at the Hyatt Regency at The Arch in St. Louis!

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    CBSC Preferred Providers to Address CBAI Convention

    The largest gathering of Illinois community bankers kicks off in just two weeks in St. Louis, and features an all-star lineup of speakers, workshops, and networking opportunities. Attendees will learn the latest top-of-mind community banking issues from more than 20 educational workshops. Five CBSC preferred providers have been selected to conduct education sessions on a number of critically important topics.
    See Breakout Sessions.

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    Last Call for Golf Balls!

    Community BancPac is building a golf ball pyramid. On September 20, 2012, the Community BancPac will host its 21st Annual Silent Auction and 5th Annual Live Auction. One of the items will be a pyramid made of boxes of golf balls (a dozen to a box).If your bank or firm doesn’t have logo balls, send us a box from your favorite golf course!
    More Information.

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    CBAI News From the Front

    Governor Pat Quinn has concluded the bill signing process for legislation passed in the 2012 spring session. The General Assembly is scheduled to return to Springfield the last week of November to take action on bills vetoed by the Governor.
    Click here for a summary of banking related legislative measures enacted by Governor Quinn this summer.

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    How Will Basel III Impact Your Community Bank?

    Basel III is an important new regulatory challenge facing your community bank. Although the regulators have given additional time to submit comments, these proposed rules are complex and interrelated. They require time to assess the impact on your community bank.
    Read More.

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    FDIC Releases Second Quarter Financial Report

    FDIC-insured institutions reported aggregate net income of $34.5 billion in the second quarter of 2012, a 20% increase over the second quarter of 2011. It represents the 12th consecutive quarter that earnings have registered a year-over-year increase. The share of banks reporting net losses fell to 10.9 percent from 15.7 percent a year earlier, and ROA rose to .99 percent from .85 percent a year ago.
    See FDIC Release.

    For Illinois institutions, the return on assets climbed to .67 percent compared to .20 percent the previous year. See Illinois Performance Summary.

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    Requirement of “Birth Certificate” Name on UCC Filings Reversed

    In January of this year, a federal Bankruptcy Court judge in the Central District of Illinois allowed a bank’s UCC security interest to be voided in a bankruptcy case because the debtor’s name on the financing statement was not the exact name on the debtor’s birth certificate. CBAI is pleased to report that on August 17th a federal District Court judge for the Central District of Illinois reversed that bankruptcy judge’s decision.
    Read More.

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    U.S. Growers Expect a 13% Decline in Corn Crop

    Affected by one of the worst droughts on record, U.S. corn growers are forecast to harvest 87.4 million acres in 2012, down 2 percent from June estimates, according to the Crop Production report released by the U.S. Department of Agriculture’s National Agricultural Statistics Service.
    Read More.

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    Record Farm Income Forecast for 2012

    U.S. net farm and cash income are forecast to reach record highs in 2012 on corn and soybean receipts and crop insurance indemnities, the
    USDA reported. The Economic Research Service said it expects net farm income to exceed $122 billion and net cash income to top $139 billion. It said crop farm gains should be more than enough to offset livestock farmers' higher feed expenses and a decline in sales of wholesale milk. Farm equity is expected to increase to an all-time high of almost $2.3 trillion, according to the ERS report.

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    Dissecting a Disaster... the Drought of 2012

    The consequences of the drought of 2012 will linger in the Illinois ag economy for generations. Round numbers tell the tale that will be felt by real families, when the final figures are tallied at the end of this harvest.
    Read More.

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    Value of Illinois Farmland Continues to Rise

    The value of farmland across Illinois continues to climb, and while the rate of increase has slowed somewhat, prices are expected to continue upward, according to the Mid-Year Land Values snapshot survey conducted by the Illinois Society of Professional Farm Managers and the University of Illinois.
    Read More.

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    Fed Releases Beige Book on Economic Conditions

    The Beige Book, published eight times a year, summarizes comments received from business and other contacts outside the Federal Reserve and is not a commentary on the views of Federal Reserve officials. Reports from the twelve Federal Reserve Districts suggest economic activity continued to expand gradually in July and early August across most regions and sectors.

    Most Districts indicated that retail activity, including auto sales, had increased since the last Beige Book report, although Cleveland, Chicago, St. Louis, Dallas, and San Francisco noted small retail improvements. Many Districts reported some softening in manufacturing. Bankers in New York, Philadelphia, Cleveland, Atlanta, Chicago, and Kansas City saw increases in demand for most loan types in recent months; by contrast, St. Louis, Dallas, and San Francisco indicated that loan demand was mixed, softening, or slightly weaker.

    Real estate markets were generally said to be improving. On the residential side, all 12 Districts cited increases in home sales, home prices, or housing construction. Reports on commercial real estate markets were also generally positive, although Richmond, Chicago, and St. Louis said commercial real estate conditions were mixed.

    The Midwest drought has reduced actual and expected farm output, especially cotton, soybean, and/or corn crops in the Chicago, Kansas City, and St. Louis Districts.
    See Chicago District Report. See St. Louis District Report.

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    Baker Market Update

    August is special. Not only does it mark the beginning of the college football season, but this year, it contains two full moons. The “blue moon” happened on August 31st, and it doesn’t happen very often. The last time was in December of 2009. The last time home prices rose in the U.S. was September of 2010, but this month’s Case-Shiller report of its 20 City Home Price Index showed a much welcomed .5% increase.
    Read More.

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    FHLB Election: CBAI Backs Ashworth and Greenbank

    CBAI is proud to endorse the candidacies of Mr. James Ashworth and Mr. Arthur Greenbank for election to the Federal Home Loan Bank of Chicago Board of Directors.
    Read More.

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    Home Equity Line of Credit Scams on the Rise

    Technology such as online banking, social networking, and ready access to public records are just some of the methods making it easier to access data by perpetrators. Read
    white paper from CBIS Nicoud Insurance.

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    First Data: FREE Online Banking Webinar

    CBSC Preferred provider First Data, in conjunction with Javelin Strategies & Research, will be providing a FREE webinar on Tuesday, September 18th, 2012. The seminar promises to provide the latest insights into online banking. Learn about key trends and issues that could change the outlook for online banking. Discover the rewards of mobile banking, personal financial management and alerts. First Data is a premier provider of internet-based financial services for community banks nationwide.
    Click Here for more information and to register.

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    Sageworks Whitepaper and Webinar Addresses Proper ALLL Calculation

    Determining the most appropriate ALLL methodology is a significant challenge community banks face in calculating an adequate allowance. While regulatory guidance is scarce, latitude is given to each institution to select the valuation methodology best suited for its own unique characteristics and complexities. The
    attached whitepaper discusses the advantages and disadvantages of using migration analysis to calculate ALLL. Sageworks will also host a FREE webinar titled “ALLL Methodology: How to Justify and Document Your Bank’s Qualitative Factors”. Click Here for more information and to register.

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    AM Community CU May Have Been Over Extended on MBL

    Amid efforts to expand credit union business-lending authority, some credit unions have succumbed to financial collapse due to massive losses in commercial real-estate and member-business loans. The latest to fall was the $122-million
    AM Community Credit Union in Kenosha, WI, which was placed into liquidation August 1 after the NCUA put the struggling cooperative into conservatorship in February.

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    Free News Release on Responsible Credit for Students Available

    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) and community banks want to encourage students to be responsible when using their credit cards so they can maintain their finances and establish solid credit.
    Click Here for a customizable news release that can be used locally.

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    OCC Ditches Outdated Documents

    The OCC released a
    list of documents it has rescinded as part of its effort to integrate national bank and thrift guidelines. The list includes the rescinded documents, the documents that supersede them, and why the document was rescinded. Read List.

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    Auditing IT for Financial Auditors Scheduled for September 12

    Using a risk-based IT audit approach, this
    program provides guidance for financial institution auditors by identifying threats to their information systems. This process leads into the development of the audit programs using the FFIEC IT Examination Handbook as the foundation for the scope. Provided are guidance, references, and samples for appropriate work programs. Easy-to-use audit tools that can allow auditors to monitor Microsoft user-account information, system security settings, and patch management will be demonstrated. This seminar is conducted by Mark Scholl, partner at Wipfli LLP, Sterling.

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    Global Cash-Flow Analysis Set for October 2 & 3

    “Global Cash-Flow Analysis” utilizes the Uniform Cash-Flow Analysis (UCA) method and provides guidance in calculating global cash-flow analysis for those entities that must rely on excess cash generated by their owners to service the business entity’s commercial debt. The course begins by defining cash flow as the tool to transform an accrual-basis financial statement into a statement of cash flow and its importance to bankers when considering a long-term loan request. It then proceeds to demonstrate how cash flow is calculated by utilizing the accounts on the balance sheet and the income statement to determine the sources and uses of cash from operating, investing, and financial activities. Next, a review of the owner’s personal financial statements and tax returns is presented in order to determine the excess compensation necessary to support the debts of the business entity and the individual. Leading this seminar is Jeffery Johnson, president and founder of Bankers Insight Group, Atlanta, Georgia, who has more than 25 years’ experience in the banking field.

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    Consumer Lending Institute Scheduled for October 15-17

    Sound credit decisions by community-bank lenders require a high degree of perception and skill. To reach this level of sophistication, your lending personnel must constantly rethink existing approaches, research new ideas, and update their knowledge. To provide your community bank with guidance and training, CBAI has developed the
    “Consumer Lending Institute.” This educational program provides essential knowledge and skills to your lending professionals and establishes a network of lenders for continued support by sharing experiences with lending professionals.Topics covered include lending compliance, introduction to consumer lending, taking the loan application and interviewing, investigating the application, risk analysis, lending to self-employed borrowers, business development, loan documentation, and collections and bankruptcy. Leading this institute is David Kemp, president of Bankers Management, Inc., College Park, GA, a nationally recognized company in financial services training and bank consulting. Tim Tedrick, CRCM, CRP, and executive officer at Wipfli LLP in Sterling, Illinois, also presents at this institute.

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    CDD Fall Meeting Set for October 23

    The
    CDD Annual Fall Meeting, scheduled for October 23, 2012, at the I-Hotel & Conference Center, Champaign, is geared toward honing professional and banking skills. In addition to the educational offerings, this year's meeting includes a fun and great networking opportunity at the hotel the evening of October 22nd, where the entertainment for the evening is, “Comedy Hypnosis with Cheryl.” The Fall Meeting begins with the popular Networking Session where bankers have an opportunity to engage in a roundtable discussion with other bankers sharing their job responsibilities. This is followed by a Legislative Update by CBAI's Kraig Lounsberry. Colleen Kettenhofen presents her session entitled, “How To Tune-Up Your Team To Do Anything!” Following the Business Meeting Luncheon, the afternoon agenda features breakout sessions and a second Networking Session to allow you to participate in more roundtable discussions on a variety of topics. The Fall Meeting concludes with a general session by Kettenhofen entitled, “Achieving Personal & Professional Success: Renew, Refuel, Re-charge.”

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