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                         October 3, 2012 Graphic
Graphic
Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois

  • CBAI Calls for Community Bank Exemption from Basel III
  • Majority of Senate Demands Basel III Relief for Community Banks
  • IMF: Basel Proposals May Drive Consolidation
  • Op-Ed Outlines Basel III Damage on Community Banks
  • FHLB Election: CBAI Backs Ashworth and Greenbank: Ballots Are Out
  • Loftus Named 2012 CBAI Outstanding Member
  • Midwest Office Named Service of the Year at CBAI Convention
  • Save-the-Date for CBAI’s 39th Annual Convention in Springfield!
  • Obama and Romney Address Farm Issues
  • Troubling Economic Data Continues
  • Home Prices Up Sharply
  • B of A Pays Another Fine To Settle Suit
  • FHLB of Chicago Regional Meetings & Training Opportunities
  • Baker Market Update
  • CBAI Foundation for Community Banking Announces Enhancements
  • Income Level for Median Family Income Available from FFIEC
  • Save Instantly When You Log into DieboldDirect.com!
  • Jeffrey A. Rice Audit Consulting Celebrates 30th Anniversary
  • CBSC and Impact Financial Renew Alliance
  • 10 Strategies for Effective Onboarding
  • Consumer Lending Institute Scheduled for October 15-17
  • CDD Fall Meeting To Be Held October 23
  • Lending to the Self-Employed Borrower Scheduled for October 31 & November 1


  • CBAI Calls for Community Bank Exemption from Basel III

    Now Is the Time for All Community Banks to Act

    CBAI has strongly encouraged the banking regulators to exempt community banks from the proposed implementation of Basel III and allow community banks to continue to operate under Basel I capital requirements.
    Read Letter.

    Basel III was originally designed to prevent another financial crisis and should apply only to the largest and internationally active banks. Community banks did not engage in the reckless behavior that contributed to the financial crisis and subsequent economic downturn.

    If implemented as proposed, these rules may endanger community banks. Bankers should inform regulators of the adverse impact of Basel III prior to the comment deadline of October 22nd. Read CBAI’s comment letter and how to comment in CBAI’s Basel III Resource Center.

    Back to top

    Majority of Senate Demands Basel III Relief for Community Banks
    By Donna Borak - September 27, 2012

    A bipartisan group of 53 senators is calling on banking regulators to consider the impact that proposed Basel III capital standards will have on community banks.
    Read Article.

    Back to top

    IMF: Basel Proposals May Drive Consolidation

    Basel III proposed regulatory capital standards might allow large banking organizations to become even more prominent and further concentrate the banking sector, the International Monetary Fund wrote in a new report. The latest update to the IMF’s Global Financial Stability Report finds that large banks with advantages of scale may be better able to absorb the costs of the regulations, which would apply to all U.S. banks unless changed by policymakers.
    Read More.

    Back to top

    Op-Ed Outlines Basel III Damage on Community Banks

    Proposed Basel III regulatory capital standards would negatively affect community banks by forcing them to invest in lower-yielding instruments, according to an
    American Banker op-ed. This will have a tremendous impact on future earnings and will restrict lending in the community, further hurting local economic conditions, the op-ed notes.

    “Currently, a bank that is not well-capitalized cannot lend at a level necessary to improve earnings,” wrote Shea Dittrich, a risk-management software provider. “In order for the bank to expand, additional capital or an acquisition partner must be found. As a result of Basel III, the value of the bank will be reduced a great deal, as any capital invested is greatly affected by the new capital requirement.”

    Guidelines for drafting a comment letter, including a template and talking points, can be found on the ICBA website. ICBA also continues to call on community bankers to sign its petition calling on regulators to exempt community banks from the Basel III proposals.

    Back to top

    FHLB Election: CBAI Backs Ashworth and Greenbank: Ballots Are Out

    Many of you have already received your official ballot for the 2012 Federal Home Loan Bank of Chicago Board of Directors election. The Community Bankers Association of Illinois is asking all member institutions to support the election of Jim Ashworth, vice chairman and investment officer, CNB Bank & Trust, Carlinville, and the re-election of Art Greenbank, president/CEO, First Bankers Trust Company N.A., Quincy.
    Read More.

    Back to top

    Loftus Named 2012 CBAI Outstanding Member

    Robin Loftus, EVP and COO of Security Bank, s.b., Springfield, was named Outstanding Member for her extraordinary volunteerism and leadership.
    Read Loftus Achievements.

    Back to top

    Midwest Office Named Service of the Year at CBAI Convention

    CBAI annually presents a Service Development Award at its convention. The recipient is a provider of goods and/or services to Illinois community bankers that has performed above and beyond the call of duty to benefit the cause of community banking through CBAI either during the past year or over a period of years. The recipient of the 2012 Service Development Award is Midwest Office.
    Learn More why Midwest was feted.

    Back to top

    Save-the-Date for CBAI’s 39th Annual Convention in Springfield!

    Mark your calendar today for CBAI’s 39th Annual Convention and Expo, scheduled for September 26-28, 2013, at the Crowne Plaza in Springfield. More information will be available soon.
    Highlights from the 38th Annual Convention and Expo held in St. Louis, MO includes pictures of all main events and are available now at www.cbai.com. Don’t forget, all convention handout materials from the 24 break-out sessions are available to convention attendees on the CBAI website beginning on Friday, October 5. They will be posted in the Members Only section titled “CBAI Convention Speaker Materials.” Please refer to the yellow card in your convention folder provided at registration for the login information.

    Back to top

    Obama and Romney Address Farm Issues

    The Presidential candidates recently outlined their positions on agricultural issues in a questionnaire from the American Farm Bureau Federation. Both candidates expressed support for the Renewable Fuel Standard and other energy-derived energies. For more details,
    Click Here.

    Back to top

    Troubling Economic Data Continues

    Revised lower estimates of the U.S. Gross Domestic Product (GDP) for the second quarter indicate continuing lower consumer spending and business investment. Economists believe that the government’s questionable ability to avoid the fiscal cliff later this year has dampened business spending.
    See Forbes Article.

    Meanwhile, the International Monetary Fund urged the U.S. to put aside political wrangling to address the federal deficit, calling the widening debt ceiling and uncertainty over the fiscal cliff “a threat for the global economy.” See Washington Post Article.

    Back to top

    Home Prices Up Sharply

    Home prices rose sharply in July, according to the
    S&P/Case-Shiller home price indexes. The 10-city and 20-city indexes rose 1.5 percent and 1.6 percent, respectively, from the previous month. The indexes were up 0.6 percent and 1.2 percent, respectively, from a year ago. All 20 cities included in the index and both composites rose on a monthly basis for the third consecutive month. Additionally, prices in 16 of the 20 cities were up from a year ago.

    “The news on home prices in this report confirm recent good news about housing,” Index Committee Chairman David Blitzer said in a news release. “Single family housing starts are well ahead of last year’s pace, existing home sales are up, the inventory of homes for sale is down and foreclosure activity is slowing. All in all, we are more optimistic about housing.”

    Back to top

    B of A Pays Another Fine To Settle Suit

    Bank of America last week agreed to pay $2.43 billion to settle a class-action lawsuit related to its acquisition of Merrill Lynch. Shareholders accused the mega bank of making false statements about the health of the two companies. For several years mega banks have routinely paid fines and penalties for various abuses although few individuals have been implicated and prosecuted.
    See New York Times Article.

    Back to top

    FHLB of Chicago Regional Meetings & Training Opportunities

    Please join the FHLB at one of its five regional meetings around the district this fall. In addition to updates on the Bank’s performance, products, and community investment initiatives from Matt Feldman, president and CEO, and other members of our senior management team, FHLB invited Tom Farin of Farin and Associates and Frank Farone of Darling Consulting Group to provide their perspectives on the regulatory environment and balance-sheet management. FHLB will also recognize this year’s winners of its Community First Partnership Awards.
    See Schedule.

    Back to top

    Baker Market Update

    While the Eurozone’s finest golfers are in Chicago this week attempting to maintain their grip on the coveted Ryder Cup, European Union finance ministers are still hoping that policy makers in Spain can get a grip on their fiscal challenges. Treasury prices rose throughout the week after concerns were voiced by German Chancellor Angela Merkel and other northern European leaders about the extent to which governmental funds in the European Stability Mechanism (ESM) should be used to backstop sovereign debt. Nervous market participants pushed Spanish Ten Year yields above 6% while other nervous investors looking for solace took yields on the Benchmark U.S. Treasury Ten Year from a beginning-of-the-week 1.70% to this morning’s 1.61%.
    Read More.

    Back to top

    CBAI Foundation for Community Banking Announces Enhancements

    At the 2012 CBAI Convention held recently in St. Louis, CBAI President Bob Wingert announced exciting additions to the already-popular Foundation scholarships. For the Annual Scholarship Essay Contest, second-place winners will also be awarded, doubling the number of scholarships offered. And, a new annual scholarship to the Community Bankers School was introduced, thanks to THE BAKER GROUP. In addition, the SHAZAM Scholarship for the Children of Community Banking has been increased to $1,000 per year for up to four years of higher education.
    See Details.

    Back to top

    Income Level for Median Family Income Available from FFIEC

    The recently
    published Federal Financial Institutions Examination Council (FFIEC)-calculated Median Family Income (MFI) data. The 2012 MFI data incorporate information from the U.S. Census Bureau’s American Community Survey. The FFIEC estimates median family incomes for metropolitan statistical areas (MSA), metropolitan divisions (MD), and nonmetropolitan portions of each state. These data are used to determine income levels of geographies in Community Reinvestment Act (CRA) performance evaluations.

    Back to top

    Save Instantly When You Log into DieboldDirect.com!

    DieboldDirect is very proud to partner with CBSC to offer CBAI members an automatic 10-percent discount just by logging into DieboldDirect.com. This savings is in addition to
    free ground shipping on orders placed on DieboldDirect.com. To ensure you’re receiving your automatic 10-percent savings, send an email message at diebolddirect@diebold.com to have your discount status verified.

    Save an additional 25 percent on Thursday, October 18! As a special thank you for being a valued partner, DieboldDirect wants to offer you an additional 25 percent* off on Thursday October 18, 2012. Simply use coupon code CBAI25 on DieboldDirect.com to receive this discount.

    Do you have the latest DieboldDirect catalog? If you have not received the DieboldDirect 2012 ATM and branch supplies resource guide, request a copy or download the electronic version.

    *Some exclusions apply: The 25 percent discount is valid only one day, Thursday, October 18, 2012. This discount cannot be used on Manager self-service coin sorters, ID card printers and supplies, or on custom products.

    Back to top

    Jeffrey A. Rice Audit Consulting Celebrates 30th Anniversary

    Since 1982, Jeffrey A. Rice Audit Consulting has been providing community banks with audit, loan-review and compliance services that have withstood the test of time — and the scrutiny of bank examiners! A CBSC marketing partner since 1988, the professionals at Rice have worked with hundreds of Illinois community banks reviewing lending policies, procedures, and quality control, thereby assuring the continued quality of their loan portfolios. Occasionally, Rice audits have revealed early indications of deteriorating financial positions of large borrowers. Early detection enabled bankers to take corrective action minimizing exposure to potential loss. For more information about Rice Consulting services, please contact Jeff Rice at 217-459-2921, or 217-273-0271.

    Back to top

    CBSC and Impact Financial Renew Alliance

    Community BancService Corporation, Inc., the business services affiliate of Community Bankers Association of Illinois (CBAI), has announced enhancements to its partnership agreement with Impact Financial. The new agreement gives CBAI member banks even better access to overdraft compliance and administration through Impact and its Overdraft Solutions (IOS) software that automates most of the daily overdraft program processes and compliance requirements.

    The partnership provides CBAI members with a free overdraft compliance review. Previously available only to Impact subscribers, Impact will review the bank’s overdraft policies, procedures, and practices to insure compliance with regulatory guidance. Additionally, CBAI members receive special price incentives, including a new price tier for small banks that service fewer than 5,000 DDAs. For more information, please contact: Jim Campbell, Vice President of Sales. IMPACT Financial Services, at 800-477-9452 or
    jcampbell@impactfinancial.com.

    Back to top

    10 Strategies for Effective Onboarding

    As has been documented in trade publications for years, from the first few minutes of an account opening through the entire first year, community banks are faced with a make-it-or-break-it window of opportunity. New account holders are the most likely segment to purchase additional products and services during this period. They are also the most likely to leave.

    Effective onboarding helps stem attrition and strengthens customer relationships from the very start. CBSC marketing partner Harland Clarke offers 10 strategies it found to be the most effective.
    Read Document.

    Back to top

    Consumer Lending Institute Scheduled for October 15-17

    Sound credit decisions by community-bank lenders require a high degree of perception and skill. To reach this level of sophistication, lending personnel must constantly rethink existing approaches, research new ideas, and update their knowledge. To provide community banks with guidance and training, CBAI has developed the
    “Consumer Lending Institute.” This educational program provides essential knowledge and skills to lending professionals and establishes a network of lenders for continued support by sharing experiences with lending professionals. Topics covered include lending compliance, introduction to consumer lending, taking the loan application and interviewing, investigating the application, risk analysis, lending to self-employed borrowers, business development, loan documentation, and collections and bankruptcy. Leading this institute is David Kemp, president of Bankers Management, Inc., College Park, GA, a nationally recognized company in financial services training and bank consulting. Tim Tedrick, CRCM, CRP, and executive officer at Wipfli LLP in Sterling, IL, also presents at this institute.

    Back to top

    CDD Fall Meeting To Be Held October 23

    The
    CDD Annual Fall Meeting, scheduled for October 23, 2012, at the I-Hotel & Conference Center, Champaign, is geared toward honing professional and banking skills. In addition to the educational offerings, this year's meeting includes a great networking opportunity at the hotel the evening of October 22nd, where the entertainment for the evening is “Comedy Hypnosis with Cheryl.” The Fall Meeting begins with the popular Networking Session, a roundtable discussion among bankers sharing job responsibilities. This event is followed by a Legislative Update by CBAI's Kraig Lounsberry. Colleen Kettenhofen then presents her session entitled, “How To Tune-Up Your Team To Do Anything!” Following the Business Meeting Luncheon, the afternoon agenda features breakout sessions and a second Networking Session with roundtable discussions on a variety of topics. The Fall Meeting concludes with a general session by Kettenhofen entitled, “Achieving Personal & Professional Success: Renew, Refuel, Re-charge.”

    Back to top

    Lending to the Self-Employed Borrower Scheduled for October 31 & November 1

    CBAI is pleased to offer
    “Lending to the Self-Employed Borrower” in two locations. This program covers both personal and business tax returns. It takes a look at small business and self-employed borrowers. Cash-flow and global-debt analyses are covered. The primary focus is on converting taxable income into effective income. The class employs lecture and case studies. Each participant should bring a calculator to class. The program covers sole proprietorships, partnerships and LLCs, corporations, and Sub Chapter – S corporations. Other topics to be covered include evaluating rental income, interest and dividend income, capital gains and losses, and commission income-earners. Leading this seminar is David Kemp, president of Bankers Management, Inc., College Park, GA, a nationally recognized company in financial services training and bank consulting.

    Back to top

    CBAI
    ACT Appraisal

    PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 11/15/2012


    TELEPHONE/WEBCASTS THROUGH 10/31/2012


    CBAI EVENTS


    Finer Points Blog


    CBAI
    RECOMMENDED SERVICES



    CBAI
    INSURANCES



    CBAI
    FOUNDATION



    CBAI
    PUBLICATIONS







    800.736.2224 (IL) | 217.529.2265 | www.cbai.com

    DISCLAIMER:The association is not responsible for and has no control over the subject matter, content, information, or graphics when viewing links attached to this association's site. If you do not wish to receive e-mails from Community Bankers Association of Illinois (CBAI), 901 Community Drive, Springfield, IL 62703, through CBAI in the future, please click here. - OR - If you would like to be removed from the CBAI e-mail database, please click here.

    © 2012 Community Bankers Association of Illinois. All Rights Reserved.