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 22, 2010 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • CBAI’s Annual Convention Offers More Education than Ever!
  • Senate Passes Small Business Lending Fund as Part of Jobs Act
  • CBAI's Schroeder Discusses Financial Reform at Chicago Summit
  • CBAI Member Ohlendorf Voices Concerns at HMDA Hearing
  • CBAI Comments on FASB Mark-to-Market Proposal
  • Feds: Megabanks Obligated to Buy Back Bad Loans from GSEs
  • Baker Market Update
  • FOMC Holds Short Rates Steady; Open to Further Stimulus
  • Economic Signals Continue Mixed
  • CBAI Urges Illinois Congressional Delegation to Follow Key Principals in Reforming the Housing GSEs
  • ICBA’s Fine Comments on Harsh Exams
  • SBA Announces Details of Its Economic Recovery Efforts
  • OCC to Accountants: Refocus on Banking Fundamentals
  • Community Banker Reputations Intact
  • Banks Warned to Erase Data on Copiers
  • ICBA Tech Survey: Community Banks Committed To Protecting Customer Data
  • Enhance Your Community Bank's Capital Position!
  • Reward Your Cardholders, Reward Yourself
  • Robbery Prevention: New Approaches for Old Peril
  • Appraisal Review Offered in October
  • Book Your Ticket for “Passport to Payments”
  • Do You Know What Your Next Exam May Reveal?


  • CBAI’s Annual Convention Offers More Education than Ever!

    This year’s 36th Annual Convention and Expo on September 30 – October 2 at the Galt House in Louisville, KY, offers a record number 24 education break-out sessions. Nowhere else can you obtain regulator insights on the Wall Street Reform Act; learn how to seize opportunity in your investment portfolio; discover how to operate in the new world of credit risk management; gain insight on thriving in the economic recovery; and get up-to-date information on the requirements of the FACT Act all in one place. In addition you also have access to 19 more timely and pertinent sessions providing answers to your most pressing issues! Plus, you receive password-protected access to downloadable versions of the material for all 24 sessions following the convention. The best thing you can do for your community bank in these challenging times is to get crucial information on the most critical issues in your profession today from the experts! You won’t want to miss it. Time is running out, so
    register today!

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    Senate Passes Small Business Lending Fund as Part of Jobs Act

    The Community Bankers Association of Illinois applauds the United States Senate for passing the Small Business Jobs Act (Jobs Act) of 2010 (H.R. 5297) by a vote of 61 to 38. Both Illinois Senators Durbin and Burris voted in favor of the bill, and we thank them for their support. This legislation includes the $30 billion Small Business Lending Fund (SBLF) which was a top CBAI policy priority. The United States House passed this measure on June17th by a vote of 241 to 182. Now, the differences between the two versions need to be resolved prior to final passage. CBAI will continue to work with lawmakers to help craft the final legislation in the most beneficial way for community banks. Please
    CLICK HERE for complete details.

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    CBAI's Schroeder Discusses Financial Reform at Chicago Summit

    David Schroeder, CBAI’s Vice President of Federal Governmental Relations, was the Special Guest Speaker at a lunch summit September 8 on community bank capital raising and non-performing asset solutions. The summit was jointly hosted by Justin Barr, distressed asset specialist and Managing Principal of Loan Workout Advisors, LLC, and Michael Iannaccone, community bank strategist and President of MDI Investments. The goal of the summit was to discuss proven strategies to reduce non-performing assets, improve capital ratios and maximize capital-raising success.
    More.

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    CBAI Member Ohlendorf Voices Concerns at HMDA Hearing

    Greg Ohlendorf, President and CEO of First Community Bank and Trust of Beecher (FCB&T), testified September 16 at a special hearing on Regulation C, the Home Mortgage Disclosure Act (HMDA), held at the Federal Reserve Bank of Chicago.
    Click here to read more.

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    CBAI Comments on FASB Mark-to-Market Proposal

    CBAI voiced its strong opposition to the accounting changes in FASB's Mark-to-Market proposal. The fair value accounting changes applied to community banks would more likely mislead investors and financial statement users and not provide a clearer picture of their financial condition. The proposed financial changes are dramatic and would cause community banks to significantly change their accounting policies and practices. These changes will be expensive to implement and be of questionable value. Please
    Click Here to read CBAI's comment letter.

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    Feds: Megabanks Obligated to Buy Back Bad Loans from GSEs

    Federal Housing Finance Agency Acting Director
    Edward DeMarco said his agency is concerned that the largest financial institutions have not repurchased more than $11 billion in loans sold to Fannie Mae and Freddie Mac. In testimony before the House Financial Services Committee on the future of housing finance, Demarco said the agency is working with the lenders to resolve the repurchase requests, but it might have to consider its supervisory and conservatorship authorities.

    Also at the hearing, Assistant Treasury Secretary for Financial Institutions Michael Barr said losses at the government-sponsored enterprises are due to mistakes made leading up to the financial crisis, not the actions of the GSEs since they were put into conservatorship. He also reiterated the Administration’s commitment to developing a comprehensive plan on the future of the GSEs by January 2011, as required by the Wall Street Reform Act.

    ICBA twice this year has testified before the Committee on the Future of Housing Finance. ICBA Lending Committee Chairman Marti Rodamaker in July discussed the importance of private mortgage insurance. In April, ICBA leadership community banker Jack Hopkins called on Congress to restore the nearly $20 billion in community bank losses that resulted from the GSE conservatorship.

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    Baker Market Update

    Stocks and Treasury prices moved higher last week ad domestic data showed the economy stabilizing. August retail sales rose slightly. The Fed meets this week.
    More.

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    FOMC Holds Short Rates Steady; Open to Further Stimulus

    The Federal Open Market Committee (FOMC) met on September 21, 2010, and voted to maintain the target fed funds rate at zero to .25 percent, where it has been since December of 2008. FOMC also indicated it is willing to further ease monetary policy to stimulate the economy.
    See Release.

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    Economic Signals Continue Mixed

    Rural Mainstreet Economy Remains Weak

    For the third straight month, the Rural Economic Index dipped below growth neutral, according to the September survey of community bank CEOs in a 10-state region. While the farm sector is experiencing decent growth, rural Mainstreet businesses are still struggling.
    See Release.

    Farmers Optimistic About Future

    According to the DTN/Progressive Farmer Agriculture Confidence Index (ACI), which is based on a random survey of 500 U.S. producers, farmers are optimistic about their future. Last spring, the Index exhibited gloominess among farmers, perhaps a reflection of anxiety over spring planting. See Article.

    Mortgage Applications Decline

    For the third consecutive week, mortgage applications declined according to the Mortgage Bankers Association’s Index, which fell 1.4 percent in the week ended September 17. A Commerce Department report also indicated that home builders in August sought fewer permits to start work on single-family homes for a fifth consecutive month. See Article.

    Fannie Mae Releases Results of Housing Survey

    Most Americans believe the housing market has bottomed out, but they are more cautious about home ownership. That’s according to Fannie Mae’s latest housing survey of homeowners and renters. See Release.

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    CBAI Urges Illinois Congressional Delegation to Follow Key Principals in Reforming the Housing GSEs

    CBAI weighed-in with the entire Illinois Congressional Delegation on the future of the housing Government Sponsored Enterprises (GSEs). Six key principals were highlighted in the reform of the housing finance system. If these key principals are followed, a new mortgage finance system will be stronger, community banks will be an integral part of the new system, homebuyers will be better protected from inappropriate mortgages, and American taxpayers will be better insulated from the costs of any future housing bust. Please
    Click Here to read CBAI's News Release.

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    ICBA’s Fine Comments on Harsh Exams

    In his most recent blog, ICBA President Cam Fine urges regulators to take a smarter approach to examinations, citing rigidity and inconsistency as contributing to a contraction of credit.
    See Blog.

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    SBA Announces Details of Its Economic Recovery Efforts

    The Small Business Administration, which received $730 million in the American Recovery and Reinvestment Act to spur business lending, announced it has received an additional $305 million to continue certain programs through next May.
    See Release.

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    OCC to Accountants: Refocus on Banking Fundamentals

    Tim Long, OCC's senior deputy comptroller for bank supervision policy and chief national bank examiner,
    spoke to the American Institute of Certified Public Accountants (AICPA) recently about refocusing on fundamentals of sound banking.

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    Community Banker Reputations Intact

    Last week ICBA President and CEO Cam Fine stated that community bankers have emerged from the financial crisis clearly distinguished from the Wall Street megafirms that contributed to the crisis. “For the first time in financial history policymakers recognize and have acted to affirm that ‘one size fits all’ financial regulation is not appropriate and that regulators should calibrate the country’s banking rules to accommodate for complexity, risk and size,” he wrote in
    Finer Points.

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    Banks Warned to Erase Data on Copiers

    The FDIC recently issued guidance cautioning banks about sensitive customer data stored on photocopiers and other office products.

    The FDIC said many copies, fax machines and printers leased from third parties are capable of storing information from loan applications and other documents on built-in hard drives and other types of memory, increasing the risk that data will fall into the wrong hands.

    The guidance instructed institutions to implement policies ensuring such data is "erased, encrypted or destroyed" from drives before an office machine is returned to a leasing company or sold to another party.

    "If the institution chooses to erase or encrypt the hard drive, the method used should be sufficiently robust to render the information on the disk unrecoverable," the FDIC said. "Examiners may ask to review such policies and procedures and verify that they have been effectively implemented."

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    ICBA Tech Survey: Community Banks Committed To Protecting Customer Data
    MOBILE BANKING ALSO SEEN AS EMERGING TREND

    The
    results of the 2010 Independent Community Bankers of America (ICBA) Community Bank Technology Survey, sponsored and coordinated by Plante & Moran, PLLC, have been released. Conducted in June 2010, the biennial survey was sent to 7,583 community banks and generated 895 unique bank responses, a nearly 12 percent response rate. One of the key survey findings reflects that community banks continue to be committed to protecting bank and customer data, despite increased regulation and cost strains.

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    Enhance Your Community Bank's Capital Position!

    CBAI is pleased to present
    “Enhancing Your Community Bank’s Capital Position” on October 14 at the Holiday Inn Select in Naperville. This one-day conference features the following sessions: “Capital Needs for Community Banks --- An Overview;” “Utilizing Bank Holding Company Debt;” “Private Equity Financing & Stock Offerings;” “Collins Amendment;” “Tax and Accounting Issues in Capital Raising;” and “Asset and Branch Sales.” This conference also includes a regulators panel entitled; “Proposed Legislative and Regulatory Changes and Their Impact on Capital,” as well as a panel featuring professionals who work closely with community banks on turnaround projects.

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    Reward Your Cardholders, Reward Yourself

    Reward & Protect is a debit-card loyalty program that provides your cardholders with savings they want and protection they need, while providing you with debit card use and activation growth that goes straight to your bottom line. For more information,
    click here.

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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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    Appraisal Review Offered in October

    “Appraisal Review” will be offered by CBAI 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 on commercial property appraisals. 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 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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    Book Your Ticket for “Passport to Payments”

    It’s not too late to reserve your seat for “Passport to Payments”—ICBA Bancard’s Card Conference & Expo, Sept. 26-28 in St. Louis, Mo. Hear from industry experts and network with peers for market-proven strategies to help navigate the evolving payments industry and enhance your card offerings. Decipher new regulatory requirements; examine emerging markets; explore fraud prevention measures; and analyze card marketing effectiveness. Sign up for just $225 when you
    register online with the 10 percent discount code, Web10.

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    Do You Know What Your Next Exam May Reveal?

    Find out before your examiner does. Changes to several compliance regulations went into effect over the past 18 months, and others are soon coming.

    Wolters Kluwer Financial Services Compliance Program Review is your compliance 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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    CBAI

           

    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


    Finer Points Blog


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