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 31, 2012 Graphic
Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois

  • Impressive Banker Response to Basel III Proposals
  • IDFPR Supports Community Bank Exemption to Basel III
  • Wilmarth’s BankThink Op-Ed - Congress Should Extend TAG Coverage
  • ICBA’s Fine Named a “Top Lobbyist”
  • OCC Provides Greater Clarity on Stress Testing for Community Banks
  • FHLB Chicago Announces Cash Dividend
  • Baker Market Update
  • Rural Mainstreet Economic Index Climbs
  • CBAI Advises Illinois Banks to Disregard $125 Corporate Records Solicitation
  • Credit Card Data Breach at Barnes & Noble Stores
  • CEO Says “Buy From Vendors that Support CBAI”
  • ICBA Expands Relationship with CBSC Preferred Partner BancVue
  • Safety Tips for Your Community Bank
  • It’s Renewal Time for the Community Bankers for Compliance (CBC) Program
  • Women in Community Banking Conference Scheduled for November 14
  • Ag Credit Analysis Seminar Scheduled for November 13

  • Impressive Banker Response to Basel III Proposals

    Federal banking regulators received nearly a thousand comment letters in response to their Basel III capital and risk weights proposals. The overwhelming majority of the letters clearly recognized the need for strong capital positions but think the regulators have gone too far with these proposals.
    Read Responses.

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    IDFPR Supports Community Bank Exemption to Basel III

    The Illinois Department of Financial and Professional Regulation (IDFPR) issued a comment letter requesting a community bank exemption for Basel III. In a letter co-authored by Acting Secretary Susan J. Gold and Banking Division Director Manny Flores, the Department urged federal regulators to exempt community banks from “a framework that best serves internationally active banks – Basel III.” The comment letter also discussed the negative impact the Basel rules will have on the use of balloon mortgages which are essential to banks serving small and rural communities. CBAI applauds IDFPR for taking the time to comment on this harmful proposed rule and for seeking a community bank exemption.
    Read Comment Letter.

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    Wilmarth’s BankThink Op-Ed - Congress Should Extend TAG Coverage

    In an American Banker BankThink article, George Washington University Law Professor Arthur Wilmarth endorsed a minimum two-year extension to the Transaction Account Guarantee (TAG) program. This popular program is set to expire at year-end and must be extended.
    Read Wilmarth’s Op-Ed.

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    ICBA’s Fine Named a “Top Lobbyist”

    ICBA President Cam Fine was recognized today as one of the top lobbyists in Washington by The Hill, a widely-read political publication covering issues and events in the nation’s Capital. Fine said, “As a former community banker, and one who now has the privilege of advocating for the nation’s more than 7,000 community banks, I’m deeply honored to be named by The Hill as a top lobbyist on behalf of the community banking industry.”
    See ICBA Release.

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    OCC Provides Greater Clarity on Stress Testing for Community Banks

    In its October 18th guidance, the OCC emphasized that national banks and federal thrifts with $10 billion or less in assets should begin their evaluations with a simple stress test of their loan portfolios, and the regulators test should be conducted at least annually.
    See Forbes Article.

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    FHLB Chicago Announces Cash Dividend

    The Federal Home Loan Bank of Chicago has declared a cash dividend at an annualized rate of 0.35% per share which will be credited to client bank accounts as of November 14, 2012.
    See FHLB Release.

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    Baker Market Update

    The word heard on the street was that Ben Bernanke met secretly with Lance Armstrong to see if the much heralded and much maligned cyclist had any “performance enhancing” economic tips for the Fed Chairman.
    Read More.

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    Rural Mainstreet Economic Index Climbs

    The October survey of community bankers from several Midwestern states including Illinois found that strong incomes from high agriculture and energy prices have overcome the negative impacts of the summer drought. The Index climbed to a solid 56.6 from September’s weak 48.3, marking the first time since June that the Index rose above growth neutral. Farmland prices soared higher, but loan demand declined.
    See Mainstreet Release.

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    CBAI Advises Illinois Banks to Disregard $125 Corporate Records Solicitation

    CBAI has received inquiries from bankers regarding whether they are legally required to submit a form titled “2012 Annual Minutes Records Form” which has been circulated by a company calling itself “Corporate Records Service.” The solicitation implies that Illinois law requires the form to be submitted and directs the recipient to complete the form and send it with a $125 fee to Corporate Records Service by November 9, 2012.

    This solicitation is NOT legitimate. There is no Illinois law that requires such a form to be completed or submitted. Illinois Secretary of State Jesse White, in an alert dated October 26, 2012, refers to the solicitation as a “scam” and confirms that the corporate laws of Illinois require no filing of such a form. To read the Secretary of State’s alert on this topic,
    click here.

    Feel free to contact CBAI General Counsel Jerry Cavanaugh by phone (800-736-2224) or by e-mail at with any questions about this matter.

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    Credit Card Data Breach at Barnes & Noble Stores

    Hackers have stolen credit card information for customers who shopped as recently as last month at 63 Barnes & Noble stores across the country, including stores in New York City, San Diego, Miami and Chicago. Hackers broke into the keypads in front of registers to obtain PIN and card numbers. The company discovered the breach around Sept. 14 but kept the matter quiet at the Justice Department’s request so the F.B.I. could determine who was behind the attacks.
    Read More.

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    CEO Says “Buy From Vendors that Support CBAI”

    Steve Backlund, president and CEO of Better Banks, Peoria, recently agreed to share an experience in hopes that it might benefit bankers and CBAI. He explained, “Recently, a contract for energy services came across my desk. I asked our staff if they had reviewed CBAI’s preferred vendor program (Ameren Energy). They said they had, but the price was within 1/100th of a cent, so they decided to stay with our current vendor. I explained to them the rigorous review process CBAI performs before awarding a vendor preferred status. I pointed out that in addition to offering member banks significant discounts, the preferred vendors also provide financial support to CBAI, which is used to support community banking. They had no idea. So I sent the following email message to all of our Bank COOs & Cashiers:

    ‘Anytime we are looking to purchase something for the bank, I ask you to consider what CBAI or ICBA preferred vendors have to offer. These vendors have been thoroughly vetted by one or both of the Associations and determined to be of excellent quality. The pricing to us should be competitive with other alternatives. Often the association pricing is better than what we could get going to them direct. Additionally, the preferred vendors provide financial support for CBAI and ICBA. This financial support helps to support the associations which do so much for us and the community banking industry. So, all things being equal or similar, always choose the vendor endorsed by our trade associations, unless, of course you have a customer that provides this, then we should definitely look to support them too. Please make sure the appropriate employees know this.'

    Steve encourages all bank CEOs to consider sending a similar memo to their staff and ask them to use CBAI preferred vendors. “The banks receive a proven service at a great price while helping the associations that are looking after our best interests.”

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    ICBA Expands Relationship with CBSC Preferred Partner BancVue

    The Independent Community Bankers of America (ICBA) recently
    announced that it has expanded its Preferred Service Provider relationship with BancVue. BancVue has been an ICBA preferred provider since 2008, offering checking reward programs to community banks. The relationship now includes Kasasa, BancVue’s flagship offering. The rewards that community banks are able to offer through the Kasasa program include a higher rate of interest, cash back, automatic donations to the customer’s selected charity, digital music downloads and more.

    A CBSC Preferred Partner since 2006, banks that are members of both CBAI and ICBA receive additional program discounts.

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    Safety Tips for Your Community Bank
    Patricia M. Tobin, CIC, FI Specialist
    Community BancInsurance Services, Powered by Nicoud Insurance

    Just because you work indoors does not mean you are completely immune to on-the-job injuries. Though perhaps not as prevalent as more dangerous occupations, workplace accidents can be just as serious in your line of work if you don’t take the proper precautions.

    Safety awareness is the best defense against accidents. There are plenty of dangers in a community bank setting and they can create as much of a financial setback.

    Now that autumn is here and winter will soon follow, it’s time to be mindful of slip and fall dangers. This is the most common loss incident for community banks resulting in disabling injuries from these common causes:

      1. Walking on slippery floors or uneven surfaces.
      2. Going up and down stairs (and not using the handrail).
      3. Using chairs with casters that may roll away from you when you try to sit on them, lean back too far or lean forward to pick something up off the floor.
    Poor housekeeping and floors littered with tangled cords, discarded papers, spilled liquids and small items such as paper clips can also cause slips and falls. Always keep the area free from items that do not belong on the floor and clean any spills as soon as you discover them.

    Office machines should always be unplugged during cleaning and should not be used if any sparking or smoking occurs.

    Carrying supplies or other heavy items, such as bags of coin, can be dangerous. Be sure the item is light enough to handle easily and low enough to see over. If lifting a heavy box, bend your knees and lift with your legs, and ask a co-worker to help if it is too heavy to handle alone.

    Desks and file cabinets present special hazards especially if left open for someone to bump into, trip over, and even tumbling onto the user. Drawers should have safety stops to prevent tipping and contents spilling out.

    Look around the bank and identify possible safety hazards. Work to develop a safety conscious attitude so you can become aware of hazards and take appropriate action to prevent such risk of accident and injury.

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    It’s Renewal Time for the Community Bankers for Compliance (CBC) Program

    Now more than ever community banks are faced with a bewildering array of ever-changing regulations. While all banks strive to be in compliance, the regulatory requirements can be overwhelming. Most community banks do not have the time or money to build elaborate compliance systems. In response, CBAI has teamed with Young & Associates of Kent, OH to offer “The Community Bankers for Compliance” (CBC) program. Now beginning its 24th year, this popular program provides a cost-effective approach to obtaining up-to-date information concerning bank regulations and practical techniques for maintaining an effective compliance program.
    The Community Bankers for Compliance program will simplify your compliance challenge. The topic for the First Quarterly Compliance Meeting is “The Important Rules That Are NOT Scheduled to Change – Lending!”

    This year, CBAI is also offering several enhancement options to the CBC program, which are highlighted on the CBC renewal brochure insert. You can choose to register for the basic CBC program, which has no change in pricing or benefits from the previous CBC program, or you can choose to add on additional tiered enhancement options. If you have any questions regarding these new options, please don’t hesitate to contact Valerie Johnston at CBAI at 800/736-2224 or by e-mail at

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    Women in Community Banking Conference Scheduled for November 14

    CBAI is pleased to offer the sixth annual “Women in Community Banking Conference.” Scheduled for November 13-14, 2012, at the Crowne Plaza in Springfield, the
    “Women in Community Banking Conference” begins with an evening social on Tuesday, November 13, and a full-day conference is scheduled for Wednesday, November 14. Topics covered include “Don’t Worry, Be Happy! Stress: Life’s Seasoning” and “You! The Everyday Hero! The Truth About the Power of Kindness” with Amy Dee-Kristensen, professional speaker and National Speakers Association member; “The Customer Experience” and “Motivating Today’s Generational Workforce” with Dianne Barton, founder of Performance Solutions, Inc.; and “The ABCs of Self Protection” with Teresa Mazzini, prevention educator at the Prairie Center Against Sexual Assault. CBAI Chairman Rick Jameson, vice president at Morton Community Bank, provides a CBAI Update. A mini-exposition featuring the latest products and services also highlights the conference.

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    Ag Credit Analysis Seminar Scheduled for November 13

    An agricultural loan officer's responsibility is to perform sound credit analysis and make loans to good customers. This requires a strong understanding of basic agricultural credit analysis as well as the drivers of change in the agricultural production sector. The overall objective of this
    program is to prepare participants to be informed and effective leaders in agricultural lending. A primary focus of the workshop is to review the basic financial statements and ratios that are important to measuring and monitoring the credit risk of agricultural borrowers. Case studies and computerized decision tools are used to illustrate the important concepts. Other contemporary issues such as farmland markets, rental agreements, crop insurance, and other risk management tools are discussed. All participants receive a complimentary copy of computerized decision tools used in the workshop. Leading this seminar is Dr. Paul Ellinger, professor in finance and accountancy at the University of Illinois, Champaign-Urbana.

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