Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois Community Bankers Association of Illinois
 
     A Bi-Weekly News Bulletin for CBAI Members             September 8, 2010 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • CBAI Hosts Meeting with FDIC Regional Ombudsman
  • CBAI Member Chappel Discusses Financial Reform at St. Louis Fed
  • FDIC Offers Tips for Reducing Costs on Checking and Savings
  • Illinois Income Tax Legislation Mandates EFT for Certain Payments
  • Midwest Farmland Values Up from Last Year
  • Large Check-counterfeiting Operation Uncovered
  • Bernanke, Bair: Government Lacked Tools To Respond to Crisis
  • Free Deposit Insurance Coverage Seminars For Bank Employees
  • Baker Market Update
  • CBAI Endorses Lehmann for FHLBC Board
  • FDIC Extends Deadline for Safe Accounts Pilot
  • FDIC: Industry Earned $21.6B Profit in Second Quarter
  • OCC Survey Finds Bank Underwriting Standards Remain Tight
  • Robbery Prevention: New Approaches for Old Peril
  • Register Now for Appraisal Review Seminar
  • Rock Out to the Little River Band at CBAI’s 36th Annual Convention
  • Do You Know What Your Next Exam May Reveal?
  • CBSC Recommended Board Portal/Intranet Saves Time
  • Get the Power of Direct Marketing At the Click of a Mouse
  • Calculate Your Deposit Insurance Savings


  • CBAI Hosts Meeting with FDIC Regional Ombudsman

    On September 1, 2010, members of the CBAI staff met with Richard Schmalzer, Regional Ombudsman of the Federal Deposit Insurance Corporation. The meeting was part of an ongoing dialogue between the CBAI and the banking regulatory agencies.

    Schmalzer explained the role of the Office of the Ombudsman and its recent activities. He said his office is available to assist banks in managing their relationships with the Agency. He said his office has been particularly helpful in providing bankers with a confidential and neutral assessment of their problems regarding their regulatory examinations. Schmalzer said the Ombudsman can help confirm or clarify the FDIC's position on particular issues and could be used as a sounding board for bankers' responses to regulators' criticisms.
    Click here for more information about the FDIC Ombudsman.

    CBAI staff urged FDIC Chairman Bair to take a stronger leadership role to help save community banks, asserting that not enough is being done to stop the relentless march of community-bank failures. Staff noted that many community bankers are asking for time to recover from the results of the mortgage meltdown and a financial crisis which they did not cause. A reasonable degree of regulatory understanding, cooperation, and forbearance would be welcome relief to many community banks.

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    CBAI Member Chappel Discusses Financial Reform at St. Louis Fed

    Ernie Chappel, president and CEO of First National Bank of Vandalia, and member of the board of the St. Louis Federal Reserve, recently presented the community-bank perspective in a panel discussion held at the Federal Reserve Bank. The title of the conference was "A Discussion on Financial Regulatory Reform." Chappel was joined on the distinguished panel by David Kemper (chairman of Commerce Bank, N.A., St. Louis), Ronald Kruszewski (president and CEO of Stifel Financial Corp.), and Anjan Thakor (professor of finance at Washington University in St. Louis). The Federal Reserve’s Senior Vice President of Banking Supervision and Regulation Julie Stackhouse facilitated the panel discussion.
    More.

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    FDIC Offers Tips for Reducing Costs on Checking and Savings

    Other topics in the latest
    FDIC Consumer News include the permanent increase in federal deposit insurance coverage to $250,000 and money-management strategies for young adults

    The FDIC encourages financial institutions, government agencies, consumer organizations, educators, the media and others to help make the tips and information in FDIC Consumer News widely available. The publication may be reprinted in whole or in part without advance permission. Organizations also may link to or mention the FDIC web site. See the web site above for more details.

    The FDIC also is offering the article for young adults as a separate, two-page reprint.

    The goal of FDIC Consumer News is to deliver timely, reliable, and innovative tips and information about financial matters, free-of-charge. Current and past issues, including special editions, are online at www.fdic.gov/consumernews.

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    Illinois Income Tax Legislation Mandates EFT for Certain Payments

    Lindgren, Callihan, Van Osdol CPA firm reminds CBAI members that the State of Illinois has passed legislation regarding electronic tax payments. Taxpayers will be required to make these payments using electronic funds transfers (EFT) if the dollar amounts are over the mandated thresholds.

      Effective October 1, 2010, the mandated threshold for making electronic payments will be $20,000 for all taxes except for Payroll Withholding Tax, Individual Income Tax, Telecommunication Tax, Environmental Impact Fee, and Motor Fuel Tax.

      Effective January 1, 2011, the mandated threshold for making electronic payments for Payroll Withholding Tax will be $12,000. To meet this requirement you will need to look at your tax liability from July 1, 2009 through June 30, 2010. If the liability for this period is over $12,000 you will need to make payments using EFT.
    If you have any questions, please contact an LCV representative.

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    Midwest Farmland Values Up from Last Year

    Latest
    AgLetter reports farmland values for the second quarter of 2010 were six percent higher than a year ago.

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    Large Check-counterfeiting Operation Uncovered

    SecureWorks recently uncovered a large check-counterfeiting operation that wrote $9 million of counterfeit checks in less than a year. Cyber criminals are breaking into business and bank “Lockbox Services” that archive checks. Thus, criminals are able to steal tens of thousands of business account check images, which include the bank account numbers, routing numbers, official signature, etc. from bank accounts. The Associated Press broke the initial
    story. See the threat analysis report by SecureWorks’ Counter Threat Unit.

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    Bernanke, Bair: Government Lacked Tools To Respond to Crisis

    Federal Reserve Chairman Ben Bernanke and FDIC Chairman Sheila Bair testified before the Financial Crisis Inquiry Commission on the causes and effects of the financial crisis and how Wall Street reform can prevent future imbalances.
    Read More.

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    Free Deposit Insurance Coverage Seminars For Bank Employees

    The FDIC will host six telephone
    seminars on deposit insurance coverage for bank representatives between September 23 and November 2, 2010. Four sessions will provide a basic overview of deposit insurance coverage, while two will focus on advanced deposit insurance coverage issues. Each session will consist of an audio and slide presentation, followed by a question-and-answer period. The seminars are free to officers and employees of FDIC-insured banks and savings associations.

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    Baker Market Update

    The labor market reported a decline of 54,000 non-farm payrolls for August as the unemployment rate rose to 9.6%. Details of the data show continued general weakness in the broad labor market.
    More.

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    CBAI Endorses Lehmann for FHLBC Board

    Once again, CBAI is proud to endorse the candidacy of Roger Lehmann, president/CEO of The Harvard State Bank, for re-election to the Federal Home Loan Bank of Chicago Board of Directors. With your active support, he will continue to serve the interests of community-based financial institutions that are members.
    More.

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    FDIC Extends Deadline for Safe Accounts Pilot

    The FDIC extended for 30 days the application period for a pilot program to evaluate the feasibility of insured depository institutions serving underserved consumers.
    Read More.

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    FDIC: Industry Earned $21.6B Profit in Second Quarter

    The second quarter 2010 FDIC
    Quarterly Banking Profile (QBP) is now available online. FDIC-insured institutions reported an aggregate profit of $21.6 billion in the second quarter of 2010, a $26 billion improvement from the $4.4 billion net loss the industry posted in the second quarter of 2009. This is the highest quarterly earnings total since the third quarter of 2007. Despite the improvement, earnings remain below historical norms. On the positive side, one in five institutions reported a net loss for the quarter, compared to 29 percent a year earlier. And, the average return on assets (ROA), a basic yardstick of profitability, rose to 0.65 percent, from negative 0.13 percent a year ago.

      Call and Thrift Financial Reports
      Complete bank Call Reports and savings institution Thrift Financial Reports, including detailed balance sheets and income statements.

      Institution Directory
      Comprehensive financial and demographic data for individual FDIC-insured institutions.

      Statistics on Depository Institutions
      Financial analysis tool that provides custom peer group analysis and data download capability.

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    OCC Survey Finds Bank Underwriting Standards Remain Tight

    The Office of the Comptroller of the Currency has released its 16th Annual
    Survey of Credit Underwriting Practices and reported that the trend of tightening underwriting standards has continued for the last three years. However, the OCC is beginning to see some easing of standards in response to competition, and a slight improvement in credit market liquidity. “Credit performance remains a concern despite several years of tightening,” said Deputy Comptroller for Credit and Market Risk Dave Wilson. “We are beginning to see some recent signs that standards may be loosening. That’s good for credit markets as long as bankers remember to stick to sound underwriting principals and do not compromise standards because of competitive pressures or the assumption that loans will be sold to third parties.”

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    Robbery Prevention: New Approaches for Old Peril

    CBAI offers
    “Robbery Prevention: New Approaches for Old Peril,” October 6 & 7 in two locations. It is designed for managers and front-line staff and seeks to “suppress this robbery and prevent the next one,” which is the philosophy of the innovative SAFECATCH Robbery prevention and preparation program for financial institutions. The FBI-inspired program has revolutionized employee awareness and actions where it has been implemented. Leading this seminar is James D. Rechel, president of The Rechel Group, Inc., Cincinnati, OH, which specializes in security intervention solutions. Rechel is also a former special agent with the FBI who investigated white-collar crime, including bank fraud, government corruption, bank robberies, and narcotics cases.

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    Register Now for Appraisal Review Seminar

    CBAI is pleased to offer
    “Appraisal Review” in two locations this October. 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. This seminar focuses on the regulatory requirements and expectations regarding the review of third-party appraisals. Both single family dwelling and commercial property appraisals are discussed, but the focus of the seminar is clearly on commercial property appraisals on income producing properties. 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 Rob Grope, senior consultant and manager of lending at Young & Associates, Inc., Kent, Ohio.

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    Rock Out to the Little River Band at CBAI’s 36th Annual Convention

    After a delicious dinner at Saturday’s evening event, the
    Little River Band takes the stage. Fueled by a very successful Australian hit single “Curiosity Killed the Cat,” the band began making promotional visits to the U.S. in 1976. This resulted in a U.S. hit single, “It's a Long Way There,” which broke into the Top 30. More concert performances in the U.S. followed, and in 1977 “Help Is on Its Way” (an Australian number one single) and “Happy Anniversary” both narrowly missed the US Top 10. From 2006 to 2009, the band performed more than 350 live shows and recorded five new CDs. In May 2001, the Australian Performing Right Association (APRA) named “Cool Change” as one of the Top 30 Australian songs of all time and LRB was inducted into the Australian Recording Industry Association (ARIA) Hall of Fame in 2004. To hear the Little River Band’s hit, “It’s a Long Way There,” please click here. For full convention details or to register, click here now!

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    Do You Know What Your Next Exam May Reveal?

    Find out before your examiner does. With changes to a large number of compliance regulations going into effect over the past 18 months, and many more coming with the passing of the Regulatory Reform Bill, if you are just starting to think about compliance, it may be too late.

    Wolters Kluwer Financial Services Compliance Program Review is your answer. Backed by over 50 years of expertise and experience, its compliance professionals will provide a comprehensive review of your institution’s compliance-management program including the overall plan, compliance-related policies, transaction files, audit, and compliance-training plans.

    Visit
    www.WoltersKluwerFS.com/compliance for more information.

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    CBSC Recommended Board Portal/Intranet Saves Time

    CSI's Board Portal provides directors with secure anytime, anywhere access to board materials and other confidential information. Includes collaboration, voting, archive, and more. The Employee Portal offers an Intranet solution that combines powerful communications and productivity tools into a single affordable solution, which includes time clock, vacation manager, policy manager, remote access and
    more.

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    Get the Power of Direct Marketing At the Click of a Mouse

    Introducing CBAI On-Demand Marketing, a completely turn-key approach to capturing more profitable accounts with powerful direct mail campaigns. At a cost of less than $1.00 per piece, INCLUDING MAILING, get a great return on your marketing investment without major overhead.

    Create a targeted, custom mailer every time. It’s easy. Just log into the CBAI On-Demand Marketing website, select your template and messaging, and we take care of the rest.

    For more information and special CBAI Member Pricing for CBAI On-Demand Marketing contact:
    Stan Myatt |
    stan.myatt@affiniongroup.com | 615-390-6041 or
    Rebekah Coats | Rebekah.coats@affiniongroup.com | 615-764-2558

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    Calculate Your Deposit Insurance Savings

    ICBA updated its
    frequently asked questions and spreadsheet to help community bankers determine how much they will save under the expanded deposit-insurance assessment base included in the House and Senate financial reform bills. The FAQs offer more detail on how the lower assessment rates will help community banks, and the spreadsheet uses fourth-quarter call report data to project savings for the nation's community banks.

    The new system, which will base assessments on assets minus tangible capital instead of domestic deposits, will allow the FDIC to lower assessment rates on community banks by approximately 37 percent. Instead of paying 30 percent of total assessments collected by the FDIC as they do under the current assessment base, community banks under $10 billion would pay 20 percent of total assessments, resulting in billions of dollars in savings for the industry.

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    CBAI's PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 10/31/2010



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    Other CBAI Events

    CBAI’s 36th Annual Convention & Exposition (9/30-10/2; Galt House, Louisville, KY)
    Convention Brochure
    Exhibiting Information

    CBAI Career Development Division Fall Meeting (10/27; I Hotel & Conference Center, Champaign


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