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 9, 2009 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • Congress Now Back in Washington... Keep Communicating!
  • Advance Registration Deadline for CBAI’s 35th Annual Convention & Expo Extended to September 11
  • CBAI Member Banker Named Illinoisan of the Day
  • Fed Says Economy Stable or Improving
  • Quarterly Data Show Community Banks Safe and Sound
  • Small Business Optimism Improves
  • Stimulus Sparks Chicago-area SBA Lending
  • Farmland Values Decline Slightly in Second Quarter
  • BAKER Market Update
  • Be in Control with BAKER’s Investment Portfolio Accounting Software
  • CBAI Career Development Division’s Fall Meeting Announced
  • New Free Community Banking Ads Available
  • SEC Issues Guidance on FASB Codification
  • ICBA Urges Changes to SEC Rule Regarding MMFs
  • New Consumer Protections for Credit Cards and Mortgages:
    How They Can Help Borrowers Avoid Surprises
  • Rewarding Cardholders Never Looked So Profitable
  • Support Grows for Net Operating Loss Carryback Bill
  • Wolters Kluwer Financial Services Offers New RESPA Toolkit
  • Don’t Fall for a False Sense of Security
  • Does Your Bank Meet the New FFIEC Business Continuity Planning Requirements?
  • NEW! POWERFUL! TIMELY! CBAI's New 2009/2010 A Real Community Bank Image Campaign: "The Real Heart of America!"


  • Congress Now Back in Washington... Keep Communicating!

    Although the congressional recess is over, community bankers are encouraged to continue contacting your congressmen to convey your positions on the significant financial restructuring and other related issues pending action in Congress.

    Thanks to the efforts of thousands of community bankers across America, policymakers are well-aware that the crippling financial and economic crisis was caused primarily by the big money center banks and Wall Street greed. Congressmen now understand the importance of our close ties to our communities and the value of our common sense banking practices. They know that community banks did not cause the crisis.

    Community bankers need to be fully engaged in the debate on financial restructuring to make sure that Congress does not unintentionally harm community banks with their proposed solutions and that meaningful reforms are enacted.

    Although there are many issues affecting community banks that Congress will address this session, CBAI recommends that you focus your congressional contacts on the following issues:

    H.R. 3126, the Consumer Financial Protection Agency Act of 2009
    H.R. 2897, the Bank Accountability and Risk Assessment Act of 2009, and CBAI’s Letter to Congressmen urging support and co-sponsorship
    Regulatory Restructuring
    Congressional Contact Information

    CBAI Bankers Meet with House Financial Services Committee Members

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    Advance Registration Deadline for CBAI’s 35th Annual Convention & Expo Extended to September 11

    CBAI’s 35th Annual Convention & Expo on September 24-26, 2009, at the new Renaissance Hotel in Schaumburg, features expert speakers, hot topics, countless networking opportunities, and access to more than 100 firms in the Exhibit Hall. The convention begins by discussing the transformation that is going on in America, concentrates on new ways that the best minds in community banking are finding to reckon with this changing economy, and advances to the latest in bank products and services. The theme is renewal! The power of ideas and innovation will help your community bank not only survive, but thrive! More than 240 bankers from 120 banks have already registered, so take advantage of the advance registration price break until Friday, September 11, and register today. Don’t forget, you can register to attend just one-day of the conference, as well. You won’t want to miss out!

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    CBAI Member Banker Named Illinoisan of the Day

    Art Kane, president of Raritan State Bank, was one of 11 citizens named 2009 Illinoisan of the Day. Kane was feted at the Illinois State Fair on August 19. The recipients were honored for making a difference in their communities, displaying a true Illinois spirit through their hard work and helping others, and for making Illinois a great place to live. Kane has been involved in many community events, serves on numerous boards and is very active in the American Legion. A cancer survivor himself, he assists in his local Relay for Life. An avid history buff, he has traveled all over Illinois, visiting historical sites. For photos of Art Kane Day at the Illinois State Fair,
    click here.

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    Fed Says Economy Stable or Improving

    The Federal Reserve announced today that, based on a survey of its 12 regional banks, there is now evidence that the worst recession in seven decades is over. The survey, based on economic activity in July and August, also noted that the economy has yet to show broader growth, consumer spending remained soft, loan demand remained weak, and commercial real estate loans continued to deteriorate.
    See More.

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    Quarterly Data Show Community Banks Safe and Sound

    ICBA said the FDIC’s Quarterly Banking Profile for the second quarter of 2009 demonstrates the nation’s community banks continue to be safe and sound and are outperforming the industry in many key metrics. “Community banks continue to support small business and individual customers, and, as a group, are outperforming the industry in many key areas,” ICBA Chairman Mike Menzies said in a nationally distributed news release.

    According to the data, a higher percentage of community banks were profitable in the second quarter compared with the industry’s overall average. Institutions with less than $1 billion in assets remained the best-capitalized and had the highest credit quality in the industry.

    According to ICBA analysis, banks with less than $1 billion in assets were the only segment of the industry to show growth in net loans and leases on both a quarterly and annual basis. They had 0.8 percent annualized growth from the first quarter and 3.2 percent growth year-over-year. Community banks can help promote the safety and soundness of the industry with resources on ICBA’s
    Community Banks: Safe, Sound and Secure public relations campaign. Read ICBA Release.

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    Small Business Optimism Improves

    The August Optimism Index of the National Federation of Independent Business increased by 2.1 points to 88.6, thanks to improved expectations for future business and real sales volume.
    More Information.

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    Stimulus Sparks Chicago-area SBA Lending

    According to a recent Crain’s Chicago Business article, federal stimulus incentives are jump-starting government-backed loans to small Chicago-area firms, creating almost a year’s worth of activity in the last few months. Nationally, average weekly loan guarantee approvals by the U.S. Small Business Administration are running 50% ahead of where they were before the stimulus package was enacted February 17, and current loan activity in Illinois is even higher than that, according to Robert Esquivel, chief financial officer of the SBA’s Midwest regional office in Chicago. Read the entire article
    here.

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    Farmland Values Decline Slightly in Second Quarter

    According to the Federal Reserve Bank of Chicago, farmland values for the second quarter of 2009 were three percent (3%) lower than a year ago in the Seventh Federal Reserve District. However, the value of “good” agricultural land retained its value during the same period.

    Agricultural credit conditions also deteriorated as loan repayment rates declined as renewals and extensions climbed.
    See Details.

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    BAKER Market Update

    U.S. non-farm payrolls fell in August, the 20th consecutive month of decline. The U.S. economy has lost 6.9 million jobs since the recession began -- the largest loss of jobs in the post-WWII era. The unemployment rate also jumped. The Treasury Department will auction off $20 billion of its benchmark 10Yr Notes and $12 billion of its 30Yr bonds today and tomorrow, respectively.
    More.

    The Baker Group is a CBSC Preferred Provider.

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    Be in Control with BAKER’s Investment Portfolio Accounting Software

    Enjoy the benefits of one of the most accurate, timely and easy-to-understand bond accounting systems available. IPA saves you time, prepares all necessary accounting entries and presents the results in a series of concise reports designed specifically for community banks. For more information, call Terry McElwee, BAKER Associate Partner at 888-333-7704, or via email at:
    terry@gobaker.com. Click here to learn more.

    The Baker Group is a CBSC Preferred Provider.

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    CBAI Career Development Division’s Fall Meeting Announced

    The
    CDD Fall Meeting is scheduled for October 14, 2009 at the President Abraham Lincoln Hotel in Springfield. The 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 event is followed by a general session by Taye Cairnes entitled, "Today's Young Bankers Are Tomorrow's Leaders." Next on the agenda is the Business Meeting Luncheon which features reports by CDD officers and CBAI Chairman Robin Loftus. The afternoon agenda also features breakout sessions: "What Do Customers Really Want?;" "SBA Loans — Enabling Lenders To Help Small Businesses Through Economic Recovery;" "Building a Better Website and Compete Against the Competition; "OMG, They Changed Reg Z;" and "The Four Generations of Today's Workplace." The Fall Meeting concludes with a general session by Taye Cairnes entitled, "It's Your Life — Get in the Driver's Seat!"

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    New Free Community Banking Ads Available

    In the continuing series of pro-community banking ads available exclusively for CBAI members, CBAI is pleased to offer “The Road to Recovery” ads, suitable for newspaper, statement stuffers, or the web. To request your FREE artwork, simply e-mail
    cbaicom@cbai.com. To preview the ads, click here.

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    SEC Issues Guidance on FASB Codification

    The SEC
    released guidance on the Federal Accounting Standards Board’s accounting standards codification. On June 30, FASB issued FAS 168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles. It replaced FAS 162 to establish FASB Codification as the source of non-SEC accounting principles recognized by FASB to be applied by nongovernmental entities in compliance with U.S. Generally Accepted Accounting Principles.

    The SEC said concurrent with the effective date of the FASB Codification, references in the agency’s rules and staff guidance to specific standards under U.S. GAAP should be understood to mean the corresponding reference in the FASB Codification. The agency said it is planning an initiative to revise references to specific standards under U.S. GAAP in its guidance. It also said FASB Codification does not supersede SEC rules. FAS 168 is effective for financial statements issued for interim and annual periods ending after Sept. 15, 2009.

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    ICBA Urges Changes to SEC Rule Regarding MMFs

    ICBA told the SEC it is concerned that proposed amendments to rules that govern money market funds may unnecessarily restrict MMF investments in FDIC-insured certificates of deposit. The amendments would require MMFs to maintain a portion of their portfolios in instruments that are considered “liquid securities.”

    “Although community banks generally don’t issue CDs directly to MMFs, many community banks actively participate in the Certificate of Deposit Account Registry System or CDARS program,” ICBA said. “Some MMFs have purchased fully-insured CDs through the CDARS program.”

    Under the proposed amendments, investments in FDIC-insured CDs may be considered illiquid because they are likely to have maturities that are longer than seven days and cannot be sold or disposed of at their amortized costs because of early withdrawal penalties and the absence of a secondary market. In a comment letter, ICBA urged the agency to consider fully-insured CDs as liquid securities so MMFs can hold them without restriction.

    ICBA also urged the SEC to consider fully-insured CDs to be “government securities” because they are backed by the FDIC’s Deposit Insurance Fund, a line of credit from Treasury and the full faith and credit of the U.S. government.
    Read ICBA Comment Letter.

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    New Consumer Protections for Credit Cards and Mortgages:
    How They Can Help Borrowers Avoid Surprises

    Other Topics in the Latest FDIC Consumer News Include Making the Most of Bank Rewards Programs and New Resources Explaining Deposit Insurance Coverage

    For the full text of this news release which outlines the contents of the latest FDIC Consumer News,
    click here.

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    Rewarding Cardholders Never Looked So Profitable

    Debit card spending topped credit card spending for the first time ever in Q4 of 2008 and continued to surpass by almost 15% at the start of 2009. As debit card use increases, consumers are shopping for a financial home that offers the best rewards available. What rewards are they looking for?
    More.

    Affinion is a CBSC Preferred Provider.

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    Support Grows for Net Operating Loss Carryback Bill

    Support continues to build for ICBA and CBAI advocated legislation to expand the net operating loss carryback to five years from two years. House Financial Services Committee member Alan Grayson (D-Fla.) has committed to cosponsoring the Net Operating Loss Carryback Act (H.R. 2452), which now has more than 90 cosponsors. The legislation, sponsored by Reps. Richard Neal (D-Mass.) and Patrick Tiberi (R-Ohio), would allow a five-year.

    NOL carryback, which would provide many community banks and small businesses suffering losses with greater cash flow so important during this difficult economic environment. Support is also growing for its Senate companion bill (S. 823), sponsored by Senators Max Baucus (D-Mont.) and Olympia Snowe (R-Maine).
    Read ICBA Testimony on Tax Stimulus.

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    Wolters Kluwer Financial Services Offers New RESPA Toolkit

    Wolters Kluwer Financial Services is offering a new
    RESPA Tool Kit to help community banks prepare for RESPA requirements taking effect January 1, 2010. The collection of resources includes policies and audit procedures, an implementation and documentation guide, discounts on new RESPA documents and Webinars, including RESPA: Tying it All Together. This CBSC Preferred Service Provider also offers RESPA frequently asked questions and free alerts.

    Wolters Kluwer Financial Services is a CBSC Preferred Provider.

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    Don’t Fall for a False Sense of Security

    It’s one thing to have security in place to protect your confidential messaging. It’s another to know that it can take on whatever risks come around the corner. An effective document delivery system should offer a secure channel that encrypts data in transit and at rest, preventing unauthorized access. The good news is, SDX Secure Document Exchange, a CBAI-endorsed secure delivery solution offered by Wolters Kluwer Financial Services, gives you all this, plus easy-to-use tracking and reporting capabilities.

    Visit
    http://www.wolterskluwerfs.com/CBAIENews and learn how SDX can safeguard your business and your reputation.

    Wolters Kluwer Financial Services is a CBSC Preferred Provider.

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    Does Your Bank Meet the New FFIEC Business Continuity Planning Requirements?

    Last year, the FFIEC upgraded expectations for business resumption planning and preparedness. Due to a far greater reliance on technology, changes in business processes and significant increases in disaster circumstances the joint agencies have substantially raised the bar on business continuity planning. The expectation is that each institution develop a plan that gets them back to normal business operations in a timely fashion and that plan needs to be tested and that test needs to be fully documented.
    More.

    Recovery Solutions is a CBSC Preferred Provider.

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    NEW! POWERFUL! TIMELY! CBAI's New 2009/2010 A Real Community Bank Image Campaign: "The Real Heart of America!"

    “A Real Community Bank®” has unveiled a new campaign to help CBAI member financial institutions differentiate themselves from the generic term, “bank,” too often used negatively in the press during this financial crisis. The campaign strongly reinforces consumers’ preference to do business with local people they know and trust.
    More.

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    CBAI

           

    CBAI's PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 10/30/09



    TELEPHONE/WEBCASTS THROUGH 10/30/09




    Other CBAI Events

    9/24-25 CBAI's 35th Annual Convention & Exposition - Renaissance Schaumburg Hotel

    CDD Fall Meeting


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