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 19, 2011 Graphic
Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois

  • CBAI ALERT: Oppose Credit Union Bill to Increase Business Lending Cap
  • ICBA Urges Consumers to Bank Locally
  • Patti Tobin Joins CBIS-Nicoud Insurance as Financial Institution Specialist
  • Federal Home Loan Bank System Must be Preserved
  • Volcker Rule Regulations Out for Comment
  • Differences Evident Between ABA and ICBA on Size Exemptions
  • Fine Points: The View from Down Here
  • State Treasurer Rutherford Makes Modifies Linked Deposit Programs
  • New Postings on the CBAI Classified Message Board!
  • Baker Market Update
  • Agencies Release Proposed Revisions to Q & A on Flood Insurance
  • Illinois’ Rural Mainstreet Economic Index Up in September
  • Is Your Bank Prepared for a Data Breach?
  • ATM Security Threat Assessment Tool Available
  • Directors’ and Officers’ Liability Hot Topics Discussed
  • Consumer Lending Institute Scheduled for October 25-27
  • Seminar for the Community-Bank Attorney Set for October 28
  • Fair Lending Self-Assessment Scheduled for November 2 & 3
  • Global Cash Flow to be Held November 2 & 3

  • CBAI ALERT: Oppose Credit Union Bill to Increase Business Lending Cap

    CBAI requests your efforts to communicate with your congressman to urge opposition to H.R. 1418 which would allow credit unions to expand their business lending authority from the current 12.25% to 27.5% of assets.
    See List of Reasons to Oppose H.R. 1418.

    To communicate with your congressman, please click here.

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    ICBA Urges Consumers to Bank Locally

    Amid growing discontent with the mega banks, Americans are seeking alternatives for banking relationships. In a recent news release, the Independent Community Bankers of America called on consumers to join the “go local” movement by banking locally with community banks. The release cited the important relationship between small businesses and community banks and corresponding jobs creation. CBAI applauds ICBA for delivering the “bank locally” message and encourages community banks across Illinois to do the same.
    See ICBA Release.

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    Patti Tobin Joins CBIS-Nicoud Insurance as Financial Institution Specialist

    CBIS-Nicoud Insurance recently announced that Patti Tobin has joined its staff as a financial institution specialist. She will serve as the primary sales contact for all new and renewals of insurance products for Illinois community banks.

    “We are thrilled to welcome Patti as a new member of the CBIS-Nicoud staff,” said Jim Hillestad, president and CEO. “Her in-depth experience and knowledge of community bank risk management and insurance solutions will serve community bankers well as we expand our service offerings to CBAI members.”

    A community bank insurance professional for more than 26 years, Patti was a territory sales manager for BancInsure for five years, and previously in the same capacity with Zurich, formerly Fidelity and Deposit of Maryland (F&D) for six years. She had also worked in the bond department at a major St Louis agency for 15 years. Patti is licensed to sell all bank-related insurance, including P&C, financial institution bond, D&O, cyber, errors and omissions, impairments, lenders single interest, OREO, master property, and all mortgage protection products. Furthermore, she earned the coveted Certified Insurance Counselor designation in 2005. She holds a Business Degree from Metropolitan College at St Louis University, St Louis, MO.

    “I love to visit bankers in their communities,” said Tobin. “Personal on-site visits help me better understand exposures that may be unique to their bank and subsequently offer the right solutions.”

    “We’ve known Patti for nearly a dozen years through our affiliation with Zurich and BancInsure, and we are excited about her joining the CBIS-Nicoud team,” said Bob Wingert, president & CEO, Community Bankers Association of Illinois. “Patti has a keen understanding of the challenges and threats community bankers face today, and we are impressed with her financial institution-related insurance expertise.” Patti also volunteers time to serve the homeless as a regular volunteer at St. Peter and Paul’s Homeless Shelter and St. Patrick’s Center, both in St Louis.

    CBIS is now powered by Nicoud to provide CBAI member banks with the best source for insurance solutions. For more information regarding insurance products or to obtain a quote, please contact Patti at 217-546-6900, or via email at

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    Federal Home Loan Bank System Must be Preserved

    Noting that the FHLBanks are a critical resource for community banks for advances and other key services, a spokesman for the ICBA told Congress last week that the FHLB System must be preserved. CBAI fully concurs with this position and remains one of the association’s top federal priorities for 2012.
    See ICBA Release.

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    Volcker Rule Regulations Out for Comment

    Federal regulators last week released proposed regulations to implement the Volcker Rule which is contained in the Wall Street Reform Act. The provisions are primarily intended to curtail short-term proprietary trading of securities and derivatives for a bank’s own account, and prohibit owning or sponsoring a hedge fund or private equity fund. Large banks encountered material losses in their investment banking operations in 2008 and 2009, and the Volcker Rule constitutes an effort to prevent another similar episode.
    See FDIC Release.

    Predictably, the large banks and their trade groups have expressed opposition to the rules because it would adversely affect profits. However, others including CBAI believe the rule has been too watered down with exemptions to prevent another financial crisis, and further reforms are needed to outright prohibit the combination of commercial and investment banking. See Forbes Article.

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    Differences Evident Between ABA and ICBA on Size Exemptions

    The ABA has made clear its opposition to regulatory exemptions for small banks in a recent opinion letter. The ICBA responded with the legitimate argument that one size does not fit all; that the community bank business model is nothing like the Wall Street business model. The differences are striking and reinforce the importance of maintaining a strong and autonomous voice for community banks in Washington and Springfield.
    See ABA Opinion Letter. See ICBA Response.

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    Fine Points: The View from Down Here

    ICBA President Cam Fine capably addresses the hollow arguments for “industry unity” and the one-sided claims of divisiveness as expressed by the big banks and their trade associations.
    See Fine Points.

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    State Treasurer Rutherford Modifies Linked Deposit Programs

    Illinois State Treasurer Dan Rutherford issued modified guidelines to the linked deposit programs. This is the second time this year Rutherford has enhanced the programs in an attempt to improve their usefulness to bankers and their customers. In the latest modifications, Rutherford consolidated some of the programs to streamline the administration of these programs.
    See Supplemental Letter and Guidelines.

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    New Postings on the CBAI Classified Message Board!

    If you, your bank, or your firm wish to post a classified ad, contact the CBAI Department of Communications at There is no cost for posts by CBAI members and associate members. To view current postings, go to:

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    Baker Market Update

    Stocks surged worldwide with renewed confidence as the Group of 20 begins to figure out ways to help with Europe’s debt crisis, along with bullish retail sales figures here in the U.S. Blue Chip stocks are up about 4%, while the S&P Index is up over 5% this week with help from Google’s stronger than forecasted earnings today.
    Read More.

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    Agencies Release Proposed Revisions to Q & A on Flood Insurance

    The federal financial institution agencies are finalizing two new question and answers, one relating to insurable value and one relating to force placement, and withdrawing one question and answer regarding insurable value. The two final questions and answers supplement the “ Interagency Questions and Answers Regarding Flood Insurance” which were published on July 21, 2009. Based on comments received, the Agencies also have significantly revised two questions and answers regarding force placement of flood insurance that were initially proposed on July 21, 2009, and are proposing revision to a previously finalized question and answer. The three revised questions and answers are being proposed for comment.
    Click here to access the entire guidance.

    For more information about the guidance or questions regarding flood zone determination and insurance services, please contact Rick Batemen, Southwest Financial Services, at 513.659.4451, or via email at Southwest is CBSC’s Recommended Provider for Flood Zone Determination Services

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    Illinois’ Rural Mainstreet Economic Index Up in September

    The Rural Mainstreet Index, which ranges between 0 and 100, measures various economic issues based on a monthly survey of bank CEOs in a 10-state region. Overall, the index advanced to 52.2 in September from 49.3 in August. For Illinois, the index also advanced and remained above growth neutral for the 17th straight month.
    See Mainstreet Report.

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    Is Your Bank Prepared for a Data Breach?

    Cyber attacks are increasing in scope and sophistication, and banks should be aware of the costs of a data breach and how to defend against a breach. Encryption is not enough. Data risk management and insurance are critical in today's cyber environment. CBIS-Nicoud helps CBAI members protect their banks from the financial costs of a data breach.
    Click here to learn more about policy features and to complete a Cyber Risk Management Tool.

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    ATM Security Threat Assessment Tool Available

    It's no secret ATM security threats are constantly evolving. There's a sophisticated, organized criminal element around the world that's continually developing new ways to compromise ATM security. How vulnerable is an ATM network to the latest security threats? Diebold has developed a web-based threat assessment tool to protect against skimming devices, logical attacks and access intrusion.
    Click here to access the tool.

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    Directors’ and Officers’ Liability Hot Topics Discussed

    Blogger Kevin LaCroix annually assembles a list of the current, hot topics in the world of directors’ and officers’ liability. As will become obvious upon viewing, there is a lot going on right now in the world of D&O, with further changes just over the horizon. The year ahead could be very interesting and eventful. This
    link provided compliments of CBIS-Nicoud.

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    Consumer Lending Institute Scheduled for October 25-27

    CBAI is pleased to offer the “
    Consumer Lending Institute,” in Springfield on October 25-27, 2011. 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, Illinois, also presents at this institute.

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    Seminar for the Community-Bank Attorney Set for October 28

    To help community bank attorneys obtain the latest information regarding the myriad of legislative, legal, and regulatory mandates facing community banks, as well as to meet the Supreme Court of Illinois-ordered requirements for Minimum Continuing Legal Education (MCLE), CBAI has developed this comprehensive one-day education session entitled, “
    Seminar for the Community-Bank Attorney.” This seminar utilizes the expertise of a number of attorneys who specialize in banking law and related topics. This seminar has been approved for 5.5 hours of MCLE credit. Any attorney who sits on a community bank board of directors, acts as legal counsel to a community bank, or has an interest in these topics would benefit from attending. Topics and speakers include “Recent State Legislation and Case Law Affecting Financial Institutions” with Jerry Cavanaugh, CBAI, Springfield, IL; “The 2010 Amendments to UCC Article 9” with Paul Hodnefield, Corporation Service Company, Chicago, IL; “Affirmative Action Plans for Banks: Recent Developments and Audit/Enforcement Activity” with Michael Lied, Howard & Howard, Peoria, IL; “Dodd-Frank Wall Street Reform and Consumer Protection Act” with Dennis Wendte of Barack Ferrazzano Kirschbaum & Nagelberg LLP, Chicago, IL; and “The Obama Administration - Recent Developments in Labor & Employment Laws” with Paul Cherner of Hinshaw & Culbertson, LLP Chicago, IL.

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    Fair Lending Self-Assessment Scheduled for November 2 & 3

    CBAI is offering
    Fair Lending Self-Assessment,” the first quarterly session of the Community Bankers for Compliance (CBC) program, in two locations this November. Recently, such issues at the new CFPB and its impact have taken center stage in the minds of bankers. However, ignoring the bank’s policies, procedures, and practices in the area of air lending places the bank at a substantial level of risk. The seminar is designed to help banks bring this important piece of current regulatory landscape back into focus. This is particularly important, as the CFPB is required under the Dodd-Frank Act to enact additional fair lending standards. Making sure that your existing fair lending house is in order prior to facing the new regulations would seem to be a good idea. Now beginning its twenty-third year, the Community Bankers for Compliance (CBC) program provides up-to-date information on compliance issues and development in bank regulations, as well as proven techniques for maintaining your in-bank compliance program. Provided by the compliance experts at Young & Associates, Inc. of Kent, Ohio, a nationally-recognized consulting firm specializing in community banks, the program provides the following benefits: pre-paid registration for the next four quarterly meetings; monthly issues of the newsletter, Compliance Update; members only web page; toll free telephone access to the consultants at Young & Associates for questions; and credit toward ICBA's Certified Community Bank Compliance Officer (CCBCO).

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    Global Cash Flow to be Held November 2 & 3

    “Global Cash Flow Analysis” will be offered in two locations this November. During the most recent financial crisis, both federal and state regulators frequently commented that community bankers could have done better at global cash-flow analysis. Thus, to assist loan officers in sharpening their skills, CBAI has designed this one-day seminar. It utilizes the Uniform Cash Flow Analysis (UCA) method and provides guidance in calculating global cash-flow analysis for those entities that must rely on excess cash generated by their owners to service the business entity’s commercial debt. Leading this seminar is Jeffery Johnson, president and founder of Bankers Insight Group, Atlanta, Georgia, who has more than 25 years’ experience in the banking field. He is also a lead faculty member at the Community Bankers School.

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    ACT Appraisal



    CBAI EVENTS November 16
    Women in Community Banking Conference
    Hilton Hotel, Springfield

    Finer Points Blog





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