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 7, 2011 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • Don’t Miss Nearly 100 Exhibitors at CBAI’s 37th Annual Convention & Expo
  • Your Last Chance to Win $2,500!
  • FHFA Sues 17 Mega Banks Over Mortgage Bonds
  • USDA Reports Record Agricultural Exports and Strong Farm Income
  • FRB Chicago Reports Rising Farmland Values and Good Credit Conditions
  • President to Seek $300 Billion Jobs Package
  • From the Top: “ICBA at the Table” By Sal Marranca, ICBA Chairman
  • Fine Points: “Final Stretch” By Cam Fine, ICBA President
  • CBAI Meets with FDIC Ombudsman
  • Illinois State Budget Woes Critical
  • Baker Market Update
  • SHAZAM Promotes Ghiglieri to Senior VP of Corporate Communications
  • Diebold: A One-Stop Security Shop
  • CDD Fall Meeting Scheduled for October 13
  • Diebold Sends New ATMs to the Cloud
  • Advanced BSA Institute Scheduled for September 12-14
  • "Fraud Protection – Changing Your Approach: You Can’t Depend on Your Customers To Prevent Losses" Set for October 4 & 5


  • Don’t Miss Nearly 100 Exhibitors at CBAI’s 37th Annual Convention & Expo

    Nearly 100 firms are already registered to attend CBAI’s 37th Annual Convention & Expo on September 22-24. The Exhibit Center will be crammed full of the latest products and services for community banks to keep abreast of new information, products, and services; improve purchase management and business development; compare prices and products more effectively; and save time by seeing all vendors in one location. Additional attractions in the Exhibit Center include a walk-around program with three valuable prizes for bankers who visit the majority of the booths; delicious desserts during the Friday Grand Opening; a cocktail reception Friday afternoon; a Continental breakfast on Saturday; a drawing for a Waterford Crystal Jerpoint Abbey centerpiece (must be present to win); and a vast array of exhibitor prizes. Don’t miss out on CBAI’s 37th Annual Convention & Expo, “Community Banking: Fueled by Loyalty,” scheduled for September 22-24, 2011, at the Hyatt Regency and Frontier Airlines Center in Milwaukee, WI. Register by Thursday, September 15, for advance pricing.

    List of Exhibitors

    Full Convention Brochure and Registration

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    Your Last Chance to Win $2,500!

    Purchase a certificate to make you eligible to win up to $2,500 from the CBAI Foundation for Community Banking, the not-for-profit that funds CBAI’s 15 annual scholarships for deserving high-school seniors. A total of $5,250 will be given away and ANYONE CAN WIN! Certificates are $20 each, or six for $100.

    Winners will be announced at the CBAI Convention on September 24 but you need not be present to win. CHANCES WILL NOT BE SOLD AT THE CONVENTION — DRAWING WILL BE HELD SEPTEMBER 13!
    Click here to download and complete form. Send your check, made payable to the CBAI Foundation for Community Banking, 901 Community Drive, Springfield, IL 62703-5184.

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    FHFA Sues 17 Mega Banks Over Mortgage Bonds

    Agency Seeks Recovery for Fannie and Freddie

    The Federal Housing Finance Agency (FHFA), the conservator for Fannie Mae and Freddie Mac, filed suit last week against 17 mega banks alleging they made misrepresentations when they sold private-label mortgage-backed securities to Fannie and Freddie. Bank of America has the greatest exposure, representing nearly 30% of the $200 billion in securities at issue in the suit.
    See FHFA Release.

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    USDA Reports Record Agricultural Exports and Strong Farm Income

    Last week the U.S. Department of Agriculture (USDA) announced that the Farm Income report shows net cash income and net farm income at record levels in nominal terms and, adjusting for inflation, at the highest levels since the early 1970s. Farm debt also declined by about two percent (2%).

    Meanwhile, the current U.S. export forecast for the 2011 fiscal year is $137 billion, $22 billion higher than the previous record set in 2008. This year’s agricultural exports trade surplus is also projected at a record $42.5 billion.
    See USDA Release.

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    FRB Chicago Reports Rising Farmland Values and Good Credit Conditions

    In its August AgLetter, the Federal Reserve Bank of Chicago reported that, in the Seventh Federal Reserve District, farmland values in the second quarter of 2011 climbed 17 percent from the level a year ago. It also reported that agri-credit conditions improved as evidenced by a decrease in the portion of agricultural loans having repayment problems.
    See FRB AgLetter.

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    President to Seek $300 Billion Jobs Package

    Tomorrow night President Obama is expected to propose to Congress a $300 billion jobs package through tax cuts, infrastructure spending, and direct aid to state and local governments. He will argue that the government must do more to spur job growth and economic expansion. Currently the economy has stalled out as the unemployment rate remains high and payroll growth is in neutral.
    See Bloomberg Article. See CNN Money Article.

    The President is also likely to roll out the proposed creation of a national infrastructure bank, a concept he mentioned in his 2010 budget. The government-owned bank would funnel cash via loans and grants to infrastructure projects around the country and augment government spending with loans and financing from the private sector. CBAI has serious concerns about creating another government lending institution and will carefully monitor this issue. See The Street Article.

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    From the Top: “ICBA at the Table” By Sal Marranca, ICBA Chairman

    ICBA representatives gathered around a conference table last month inside the seven-story FDIC headquarters in Washington, located about a block from the White House. It was a very productive and professionally personable meeting. The acting FDIC chairman who is awaiting Senate approval of his nomination as FDIC chairman, Martin Gruenberg, talked openly and candidly on a number of community banking issues.
    Read Article.

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    Fine Points: “Final Stretch” By Cam Fine, ICBA President

    The 112th Congress is back in session after its August recess, but time is rapidly ticking away. The House and Senate have less than 30 workdays left on their calendars this year. Meanwhile, banking regulators are writing new Wall Street Reform rules, and in some cases they have major redrafting work to do. However, key rulemaking will likely take place by the end of the year on several ICBA legislative and regulatory priorities.
    Read Article.

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    CBAI Meets with FDIC Ombudsman

    CBAI senior staff members met last week with the FDIC's Regional Ombudsman Richard Schmalzer. The primary objective of the session was to share community banker concerns about bank regulations and the examination environment.
    Read More.

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    Illinois State Budget Woes Critical

    The continuing fiscal stress among state budgets is addressed in the recent Chicago Fed Letter, attributing Illinois’ budget crisis to poor budgeting practices and a lack of preparation for the economic downturn. Illinois lawmakers have used pension borrowing, delaying bill payments, and fiscal gimmicks to balance the budgets in recent years. As a result, Illinois is ranked worst in the nation with just 45% of its pension obligations funded. Illinois also has the second-lowest bond rating in the nation as state indebtedness has tripled to more than $30 billion since 2002.
    See Chicago Fed Letter.

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    Baker Market Update

    Payrolls in the U.S. did not grow in August as employers were reluctant to expand in the face of still weak aggregate demand.
    Read More.

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    SHAZAM Promotes Ghiglieri to Senior VP of Corporate Communications
    Thursday, August 18, 2011

    SHAZAM, a CBAI preferred marketing partner, announced the promotion of Jim Ghiglieri to senior vice president, corporate communications. Ghiglieri has worked with the EFT network for nearly four years as vice president, corporate communications.

    In his new role, Ghiglieri will lead SHAZAM's communication efforts by working directly with industry organizations, trade associations, and media. Increasing SHAZAM's visibility among a national audience of community-based financial institutions will continue to be a main responsibility.

    A former community banker for 32 years and former chairman of the Community Bankers Association of Illinois and the Independent Community Bankers of America, Ghiglieri is a frequent presenter at state, regional and national community banking meetings and conventions. He talks on topics ranging from emerging trends in payments to general industry issues in both breakout- and general-session presentations.

    "Jim is an extremely effective communicator, always mindful of his duty to represent the voice of community financial institutions," said Michael Hollinger, SHAZAM president and CEO. "We're thrilled to have him traveling the country, sharing his banking know-how and payments expertise on behalf of SHAZAM."

    Prior to joining SHAZAM, Ghiglieri was president of Alpha Community Bank in Toluca, Ill., where he currently resides. He remains active in his community and serves as president of the local Labor Day Celebration Committee, as well as president of the Toluca Park District.

    Ghiglieri graduated with a bachelor's degree in business administration from the University of Notre Dame.

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    Diebold: A One-Stop Security Shop

    When Main Street Bank wanted a single supplier for its fire alarm products and services, it turned to a long-time partner: Diebold, a CBAI preferred marketing partner. Consolidating the bank’s alarm and fire monitoring services under a single provider helped Main Street operate more efficiently and, in turn, provide a higher level of security to its customers and employees.
    Read More.

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    CDD Fall Meeting Scheduled for October 13

    The
    CDD Annual Fall Meeting, scheduled for October 13, 2011 at the Mark Twain Hotel & Packard Plaza in Peoria, is geared toward honing professional and banking skills. In addition to the educational offerings, this year's meeting includes an optional activity at Sully's Pub & Café in Peoria on the evening of October 12th. 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 & Legal Update by CBAI's David Schroeder and Jerry Cavanaugh. Tom Hershberger presents his session, "Eight Habits of Effective Bank Managers." Following the Business Meeting Luncheon, the afternoon agenda features breakout sessions: "Alice in ALLL-Land;" "The ABC's of Personal Branding;" "Managing Producer and Loan Risk with Crop Insurance;" "Move Your Customer from Satisfied to Loyal;" "The 3 R's: Review, React, and Remediate a Framework for Responding to Problem Loans;" and "Don't Blink: The Ever Changing Regulatory Environment." New this year, the Fall Meeting will feature a second Networking Session to allow participation in more roundtable discussions on a variety of topics. The Fall Meeting concludes with a general session by Tom Hershberger titled, "What I Learned About Banking While Waterskiing."

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    Diebold Sends New ATMs to the Cloud

    The North Canton, Ohio manufacturer has developed technology to centralize its ATMs' computing power, thereby improving security and cutting ATM-maintenance costs for clients.The "virtualization" technology uses the principles of cloud computing: instead of having individual hard drives, each ATM in a fleet is operated by a remote data center. Diebold unveiled the technology Monday at the VMworld 2011 conference in Las Vegas. Diebold is soliciting early-stage clients as pilots for the new program.
    Read More.

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    Advanced BSA Institute Scheduled for September 12-14

    CBAI is offering “Advanced Bank Secrecy Act School,” a
    three-day institute in Springfield this September. This School takes a critical look at a mythical bank fraught with BSA troubles. The class analyzes all aspects of the bank’s BSA program and makes 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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    "Fraud Protection – Changing Your Approach: You Can’t Depend on Your Customers To Prevent Losses" Set for October 4 & 5

    “Fraud Protection – Changing Your Approach: You Can’t Depend on Your Customers To Prevent Losses,” is a
    one-day seminar offered in two locations this October. Operational losses attributable to fraud, specifically the variety of payment channel frauds, are changing right in front of our eyes, and at a pace that threatens both your accounts and the reputational integrity of your financial institution. The session explores why the sales market is local, but the fraud risk market is global and what this means to the risk management strategies in your consumer and business accounts which are subject to so many new fraud attempts. The exponential growth in the use of ACH has created fraud losses that occur at break-neck speed, and with huge losses that are occurring at banks large and small, rural and metropolitan. No one is immune. Leading this seminar is James D. Rechel, president of The Rechel Group, Inc., which specializes in security intervention solutions.

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    CBAI
    PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 10/15/2011


    TELEPHONE/WEBCASTS THROUGH 10/30/2011


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    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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