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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 27, 2017

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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • BALLOTS ARE OUT!! Vote for Todd Grayson for FHLBC Board of Directors
  • ICBA Offers Community Bank Tips on Equifax Breach
  • ICBA Submits Regulatory Relief Petition to Congress
  • CBAI Urges Community Bank Exemption to the Volcker Rule
  • CBAI Seeks Exemption from CFPB Small Business Data Collection Rule
  • CDD Annaul Fall Meeting is Coming Up!
  • Save the Date for CBAI’s 44th Annual Convention in St. Louis!
  • Accountants Reveal Small Businesses’ Biggest Financial Mistakes
  • CBAI Participates in Congressman Hultgren’s (R-14th) Housing Finance Roundtable
  • Investment News From THE BAKER GROUP
  • Fed to Start Reducing Balance Sheet Next Month
  • Rural Index Hits 2017 Low in September
  • Four Reasons Why Consumers (and Economy) are Still in Limbo
  • CBAI Attends AdvocacyTech Conference in Chicago
  • GAO Takes a Look at Fintech
  • Digital Banking is Hot, But Don’t Close Branches Yet
  • Fed/CSBS Community Banking Research Conference to be Webcast Live October 4-5
  • CBAI LEGAL: Oops! Bank Loses Guaranty Case
  • Breast Cancer Awareness Products Available at 10% Off Your Order!
  • CBIS: Community Bank Breach Response Services
  • The Keys to Bank-to-Business Selling Set for October 3
  • ACH: Stay Informed and In Compliance Scheduled for October
  • Universal Banker Skills Slated for October 5


  • BALLOTS ARE OUT!! Vote for Todd Grayson for FHLBC Board of Directors

    Ballots for the 2017 Federal Home Loan Bank of Chicago Board of Directors election have now been mailed out to all FHLBC members.

    The Community Bankers Association of Illinois is asking all member institutions to support the election of Todd E. Grayson, President of South Central Bank, N.A., Chicago.

    A growing number of community-based financial institutions are Federal Home Loan Bank of Chicago members. It is imperative that community-based financial institutions receive the representation that they deserve on the FHLB of Chicago Board. The support and PARTICIPATION of virtually ALL community bankers is required to elect Todd Grayson.

    Ballots must be received by November 3, 2017. Vote for Todd Grayson TODAY! See Todd's Bio.

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    ICBA Offers Community Bank Tips on Equifax Breach

    ICBA released tips for community bankers following the massive Equifax data breach involving 143 million Americans. The tips cover potential risks from the breach, including fraudulent account openings, account takeover and online fraud, wire transfer fraud, phishing, and more.

    The tips follow ICBA’s release of a customizable letter that community banks can use to inform their customers about the Equifax data breach. The template, which community banks can customize, discusses the extent of the breach, where consumers can go for additional resources and how they can protect their identity. Read Community Bank Tips. Access Custom Letter. Access Additional Resources.

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    ICBA Submits Regulatory Relief Petition to Congress

    This week the ICBA submitted to the Senate Banking Committee a petition of more than 10,000 community bank employees and advocates urging action on the association’s Plan for Prosperity regulatory relief platform. The petition includes signers from across the nation united in support of the comprehensive blueprint to promote localized lending and job growth. CBAI has urged all members to sign the petition and supports the Plan for Prosperity.

    In its message to Chairman Mike Crapo (R-Idaho) and Sherrod Brown (D-Ohio), ICBA cited recent statements from the lawmakers advocating community bank relief from mortgage regulations and other needless red tape. “ICBA and the thousands of citizens who signed the petition supporting relief are counting on the Committee to act expeditiously and deliver on this bipartisan commitment,” ICBA wrote. Read Letter.

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    Cardholder dispute calls can strain your staff members and disrupt their day. It’s difficult to keep up with the required training and regulations and manage the documentation trail. Let SHAZAM handle the complex dispute process on your behalf with Dispute Resolution Services — eliminating the need for a dedicated specialist on your staff. We’ll manage inbound cardholder calls, investigations and documentation in a seamless and professional manner for your institution. Disputes happen, learn more about how we can help!



    CBAI Urges Community Bank Exemption to the Volcker Rule

    In a September 21, 2017 comment letter to the Office of the Comptroller of the Currency (OCC), the Community Bankers Association of Illinois (CBAI) urged the agencies to completely exempt community banks from the Volcker Rule. CBAI appreciated the OCC’s statement that there is broad recognition that the final Volcker Rule should be improved both in design and application, and that many [including the U.S. Department of the Treasury] have argued that the final rule is overly complex and vague. CBAI stated that the community bank business model does not include the risky practices now prohibited by the Volcker Rule; it was the risky behavior of the largest banks and financial firms that led to the financial crisis; and a complete exemption for community banks is justified. Read Comment Letter.

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    CBAI Seeks Exemption from CFPB Small Business Data Collection Rule

    In a September 12, 2017 comment letter to the Consumer Financial Protection Bureau, CBAI urged an exemption for community banks from the upcoming small business data collection rule. CBAI stated that community banks have exemplary behavior in their lending to small businesses. The Bureau has the explicit authority under the Dodd-Frank Act to exempt any class of entity from its rulemaking. Community banks are deserving of broad exemptions, and CBAI urged the Bureau to exempt all community banks under the forthcoming small business data collection rule. Read More.

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    CDD Annual Fall Meeting Is Coming Up!

    The CDD Annual Fall Meeting, scheduled for October 11, 2017, at the Marriott Hotel & Conference Center, Bloomington, is geared toward honing professional and banking skills. Please encourage your CDD members to register now for these informative educational sessions as well as the opportunity to network with other CDD members. It is crucial to select a member of your bank to participate in these leadership training sessions designed for the next generation of community bank presidents. If you do not have an employee involved in CDD, CBAI is offering an opportunity for non-CDD members to come see what the Fall Meeting and CDD offers and is offering a discounted rate of $239 per person to attend this year's Fall Meeting. CDD Membership Application. CDD Fall Brochure. Register Online.

    If you have any questions, contact Melinda McClelland, vice president of education & special events, at CBAI, 217/529-2265 or 800/736-2224.

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    Save the Date for CBAI’s 44th Annual Convention in St. Louis!

    43rd Annual Convention Highlights Now Available!

    Mark your calendar today for CBAI’s 44th Annual Convention and Expo, scheduled for September 13-15, 2018, at the Hyatt Regency at the Arch in St. Louis, MO. More information will be available soon. Highlights from the 43rd Annual Convention and Expo held in Springfield are on the website now, including pictures of all main events. Don’t forget, all convention handout materials from the break-out sessions are also available to convention attendees on the CBAI website. They are posted in the Members Only section titled “CBAI Convention Speaker Materials.” An e-mail was sent to all convention registrants with the login information. See CBAI's 43rd Annual Convention Highlights. See Convention Speaker Materials.

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    Accountants Reveal Small Businesses’ Biggest Financial Mistakes

    In a survey of more than 500 small and medium-sized business (SMBs) accountants and bookkeepers, business and financial software company Intuit found a few factors that frustrate the profession.

    Reports on September 14th said Intuit’s survey found a lack of proper record-keeping landed at the top spot of the list of the biggest frustrations for small businesses’ accountants, with nearly three-quarters of professionals surveyed saying this was the most common problem they saw. It surpassed a lack of use of accounting software and not keeping on top of bills, cited by 60 percent and 57 percent, respectively.

    Further, 85 percent of small business accountants said a significant challenge to their ability to do their jobs is small businesses’ mixing of personal and business expenses. Researchers said this can lead to higher costs from accountants and a higher risk of auditing come tax time. Read More.

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    CBAI Participates in Congressman Hultgren’s (R-14th) Housing Finance Roundtable

    On September 18, 2017, Anthony Sisto, CBAI’s First Vice Chairman elect and Chairman & CEO of STC Capital Bank in St. Charles, and David Schroeder, CBAI’s Vice President Federal Governmental Relations, participated in a housing finance roundtable discussion hosted by Illinois Congressman Randy Hultgren (R-14th). Reform of the housing Government Sponsored Entities (GSEs) will hopefully be revisited by Congress in the coming months. This roundtable, which was also attended by several other stakeholders, provided an opportunity to discuss a variety of priorities, objectives, and concerns so that reform efforts result in appropriate support for affordable home ownership and protect American taxpayers from unnecessary risks. Read More.

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    Investment News From THE BAKER GROUP

    Baker Market Update

    In the U.S., the yield on the Ten Year Treasury note has been on a ride of its own recently as another FOMC meeting came and went with no action taken. Janet Yellen, the cagey Fed Chairwoman nearing the end of her term, reminded everyone that monetary policy is not pre-set, but that another 2017 rate hike may be appropriate if conditions continue to improve. The improvement that she expects to continue is not, however, universally perceived. See Baker Market Update.

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    Fed to Start Reducing Balance Sheet Next Month

    The Federal Reserve will begin unwinding its $4.5 trillion balance sheet next month, the Federal Open Market Committee announced. The announcement offers a timeframe for the Fed’s plan to draw down its emergency economic stimulus by gradually decreasing its reinvestment of Treasury and mortgage-backed securities, a program it announced in June.

    The FOMC meanwhile held the benchmark federal funds rate at a range of 1 percent to 1.25 percent. According to updated economic projections, most FOMC members indicated support for an additional interest rate increase before the end of 2017. The panel also raised its projected 2017 increase in the gross domestic product from 2.2 percent to 2.4 percent. Read Release. See Projections.

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    Rural Index Hits 2017 Low in September

    Creighton University’s index of the rural economy fell to its lowest level of 2017 on further declines in the price of farm and ranch land. The Rural Mainstreet Index slumped to 39.6, its lowest level since December 2016. More than half of bankers reported restructuring farm loans, while farm loan defaults are up 2.1 percent.

    The September RMI for Illinois rose to 42.2 from 41.2 in August. The farmland-price index slumped to 35.9 from 42.3 in August. The state’s new-hiring index rose to 55.4 from last month’s 47.5. Jim Eckert, president of Anchor State Bank in Anchor, said, “Early yields indicate crop will be 15-20% less than last year. With this reduction and current low prices our farmers' incomes will be significantly less than 2016.” Read September Mainstreet Report.

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    Four Reasons Why Consumers (and Economy) are Still in Limbo

    Consumer spending helps fuel the economy, but sluggish spending continues to limit growth. Economic readings have been firm lately, with one major exception: retail activity. Retail sales continue to disappoint relative to expectations. While Hurricane Harvey certainly had a negative impact, the unfortunate truth is that retail sales have been decelerating since January.

    Which raises the question: Why should spending slow when unemployment is at a cyclical low and confidence close to a cyclical high? See Potential Reasons.

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    CBAI Attends AdvocacyTech Conference in Chicago

    CBAI joined with the National Association of Home Builders, American Bar Association, American Medical Association, Consumer Technology Association, the Chicagoland Chamber of Commerce, and others to attend the AdvocacyTech Conference in Chicago on September 20, 2017. AdvocacyTech is a premier event for advocacy professionals to receive information on the latest and most innovative technologies designed to engage grassroots support and move their organization’s agenda forward. CBAI’s participation in this conference will help enhance efforts to engage members to effectively advocate for their important issues, including meaningful regulatory relief for community banks. Read More.

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    GAO Takes a Look at Fintech

    In a report issued September 13, the Government Accountability Office (GAO) focused its attention on financial technology. The GAO defined four key sectors: marketplace lenders, mobile payments, digital wealth management platforms, and distributed ledger technology. The GAO then described the varied approaches to regulating these sectors, both at the federal and state levels.

    As for state regulation, the GAO noted: “State licensing laws and oversight mechanisms, including consumer protection, vary by state…Officials from the Conference of State Bank Supervisors we spoke with noted that the states are working on developing tools that can facilitate compliance with state-by-state licensing mechanisms, such as the Nationwide Mortgage Licensing and Registry System (NMLS). NMLS is intended to enable firms to complete one record to apply for state licensing that fulfills the requirements of each state, for states that participate in the system.”

    The report also stated, “Some marketplace lenders that originate loans directly to consumers or businesses (e.g., a direct marketplace lender) are generally required to obtain licenses and register in each state in which they provide lending services.

    According to officials from the Conference of State Bank Supervisors (CSBS), state regulators then would have the ability to supervise these lenders, ensuring that the lender is complying with state and federal lending laws.” See GAO Report.

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    Digital Banking is Hot, But Don’t Close Branches Yet

    Though branches still offer some value for consumers, comfort with using automation and non-traditional financial firms for banking transactions continues to gain traction. This change in consumer behavior requires attention from the banking community, especially those firms that hope that the movement to digital solutions will either slow or stop altogether. This isn’t going to happen.

    In a recent survey conducted by Fiserv, most consumers were split on their preferred mode of interaction with their primary financial institution. While over half of consumers had visited a branch in the most recent month, the mean number of branch visits per month had fallen compared to 2016.

    When asked about branch automation, consumers were split on the likelihood of staying with their primary financial institution (PFI) if it switched to full automation. Not surprisingly, Millennials and high net worth consumers were more open to staying with their institution amid a change to full automation. Read More.

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    Fed/CSBS Community Banking Research Conference to be Webcast Live October 4-5

    Community bankers, academics, policymakers and bank supervisors from around the country will meet October 4-5 at the Federal Reserve Bank of St. Louis for the fifth annual Community Banking in the 21st Century research and policy conference hosted by the Federal Reserve System and the Conference of State Bank Supervisors (CSBS). The conference features the latest in community banking research and will be webcast live throughout both days.

    Federal Reserve Chair Janet Yellen will give opening remarks, along with CSBS Chairman and Wyoming Division of Banking Commissioner Albert Forkner and St. Louis Fed Supervision Executive Vice President Julie Stackhouse. CSBS President John Ryan will give closing remarks on the second day of the conference. The webcast can be viewed starting October 4 at 2:00 p.m. CT via the Conference Site. Read Release.

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    CBAI LEGAL: Oops! Bank Loses Guaranty Case

    The First District Illinois Appellate Court’s decision in Kozonis v. Tamburello should serve as a reminder that a bank should control the language of a personal guaranty of corporate debt and not leave loopholes through which the guarantor can escape liability. See Most Recent CBAI LEGAL.

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    Breast Cancer Awareness Products Available at 10% Off Your Order!

    October is only a few short weeks away, and through September Midwest Office is offering an additional 10% discount on select Breast Cancer Awareness products! Look at the attached flier and contact Luke Weller for details and pricing! Special pricing for CBAI Members only! See October Specials.

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    CBIS: Community Bank Breach Response Services

    Cyber liability remains an evolving line of insurance coverage for community banks. Financial institution Cyber liability products have historically focused on how to buy a cyber-liability policy and not necessarily how to properly react to an actual cyber breach. Read More.

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    The Keys to Bank-to-Business Selling to be Held October 3

    Small business is actively looking for lending and deposit alternatives, often with a non-bank. This engaging seminar looks at the ways a community bank can find small-business loan and deposit opportunities and find them faster than your competitors. The first strategy is to generate more small-business loans and deposits from your existing customers. The second strategy is to take opportunities from your competitors. This seminar focuses on tactics that help you discover, qualify, and take all available loan and deposit opportunities. The program focuses on the concepts of identifying opportunities, deciding which businesses make sense to work with, and which businesses you might consider for specialization. Leading this seminar is Duane F. Sobecki, CEO of Focused Results, LLC, a sales strategy, consulting, and training firm.

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    ACH: Stay Informed and In Compliance Scheduled for October

    In the ever-changing world of ACH, it is difficult to stay abreast of the risks involved and the ever-changing rules. The presentation gives community banks ideas for reducing risk and improving compliance. The ACH-Rule changes that are effective from 2016 – 2018 are also explained in a practical, easy-to-understand approach. Nicole Meinhardt, CPA, AAP and senior manager at Wipfli LLP, Sterling, IL, leads this seminar.

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    Universal Banker Skills Slated for October 5

    The role of the personal/universal banker has been enhanced with the advancement of technology, but the customer emphasis has changed to relationship from transactions. Universal bankers used to enjoy a steady stream of customers at our branches. Now, most of us have peak periods when customers crowd our lobbies, but there are very real lulls during the business day that we need to fill with meaningful activity. The levels of professionalism and commitment for us as universal bankers have never been as high as is required in today's banking environment. We're ready for the challenge, and this lesson highlights the journey of our continued skills development as we serve our customers and grow the bank. Jennie Sobecki, co-owner of Focused Results, a company concentrating in results-driven process consulting and training experience in community banks and financial institutions leads this program.

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