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            December 1, 2010 Graphic
Graphic
Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • CBAI Bankers Attend Chicago Fed Community Banking Symposium
  • Community Bank Directors’ Conference Scheduled for December 8
  • St. Louis Fed Launches New Web Site on Reform Rules
  • Community Banking Will Always Have a Niche
  • Help Available on TAG Extension Disclosures
  • FDIC Issues Final Guidance on Automated Overdraft Payment Programs
  • FDIC Overdraft Guidance Includes Onerous New Provisions
  • Community Banks To Save on FICO Payments Under New Assessment
  • WikiLeaks Will Unveil Major Bank Scandal
  • Fed Identifies Bailout Recipients
  • Banks Earned $14.5 Billion in Third Quarter
  • Rural Mainstreet Index Climbs in November
  • Chicago Fed: District Farmland Values Up 10 Percent
  • Private Sector Payrolls Grow in November
  • Comment from the BAKER GROUP on Municipal Bonds
  • BAKER Market Update
  • ICBA on NPR: Banking Profession Improving
  • ICBA President Cam Fine’s “Fine Points”
  • ICBA Chairman Jim MacPhee’s “From the Top”
  • Deluxe Announces Huge Price Increases! See the Harland Advantage
  • Updated Compliance Solution More Efficient
  • CBAI Holds Fourth Annual Women in Community Banking Conference
  • Milwaukee's Frontier Airlines Center Perfect for CBAI’s 2011 Expo
  • Account Titling Seminars Slated for December 7-9
  • Risk Assess This! & Auditing OREO (The Property, Not the Cookie)


  • CBAI Bankers Attend Chicago Fed Community Banking Symposium

    CBAI members from across the state attended the Sixth Annual Community Bank Symposium at the Federal Reserve Bank of Chicago.
    More.

    Back to top

    Community Bank Directors’ Conference Scheduled for December 8

    CBAI's popular
    Directors' Conference entitled “After the Storm,” is scheduled for December 8, 2010, at the Crowne Plaza in Springfield. This comprehensive, one-day conference discusses the factors that are changing the way community bankers do business, concentrates on the new ways the best minds in community banking are finding to reckon with these turbulent times, and provides answers as to how community banks can prepare for and shape the future of the financial services system to benefit their bottom lines. CBAI has gathered top banking experts to make this conference a must-attend. Scott MacDonald of the Southwest Graduate School of Banking in Dallas discusses the new banking and regulatory model of the future; Ryan Hayhurst of THE BAKER GROUP in Oklahoma City examines investment and interest rate risk strategies for 2011; Jim Kane of Vedder Price P.C. in Chicago focuses on capital issues facing community banks; and David Kemp of Bankers Management, Inc., in Atlanta delves into how community banks can book earning assets that pass muster with the regulators.

    Back to top

    St. Louis Fed Launches New Web Site on Reform Rules

    The Federal Reserve Bank of St. Louis now has a web site that tracks and comments on the rules being written to implement the Wall Street Reform Act. The site also enables individuals to comment on proposed rules.
    See Announcement.

    Back to top

    Community Banking Will Always Have a Niche
    By James Ghiglieri Jr., SHAZAM Vice President of Corporate Communications

    As I travel around the country and hear the sad stories about good financial institutions and good bankers who have been caught up in the collapse of the real estate market and the changing financial landscape, it leads one to question the future of community banking. The big financial institutions will always survive because they are systemically important to our economy, and the government will always be there as their safety net. Unfortunately, community financial institutions do not enjoy the same level of reassurance.
    More.

    Back to top

    Help Available on TAG Extension Disclosures

    Wolters Kluwer Financial Services, a CBAI Preferred Service Provider, can help community banks with disclosure notices required under the limited extension of the Transaction Account Guarantee Program. The temporary extension, which runs from Jan. 1, 2011, through Dec. 31, 2012, provides unlimited deposit-insurance coverage on non-interest-bearing transaction accounts. Low-interest consumer checking accounts and Interest on Lawyer Trust Accounts will no longer be eligible.

    The FDIC is requiring banks to provide disclosure notices about the extension to customers by Dec. 31. Wolters Kluwer Financial Services has disclosures and notices available now to help community bankers communicate these changes to their customers before the Dec. 31 deadline.
    Learn More.

    Back to top

    FDIC Issues Final Guidance on Automated Overdraft Payment Programs

    The Federal Deposit Insurance Corporation (FDIC) has issued
    final guidance to address the risks associated with overdraft payment programs. The guidance is intended to ensure robust oversight of automated overdraft programs offered by certain FDIC-insured institutions.

    Back to top

    FDIC Overdraft Guidance Includes Onerous New Provisions

    The FDIC released
    final guidance on automated overdraft programs offered by certain FDIC-insured institutions. Much to ICBA and CBAI’s disappointment, the guidance does not explicitly exempt ad hoc overdraft payment programs as requested in ICBA’s Sept. 27 comment letter. Instead, consistent with the proposed guidance, it states that ad hoc overdraft programs are not the focus of the guidance.

    Unfortunately, the final guidance includes several other provisions that ICBA and CBAI strongly oppose. Among the most onerous, the guidance requires institutions to monitor programs for excessive or chronic customer usage and to contact customers who have incurred six overdrafts in a rolling 12-month period; institute daily fee limits; avoid clearing checks in a manner that will maximize overdrafts; and provide for an annual review by their board of directors. It also encourages banks to allow customers to opt out of overdrafts related to checks and ACH transactions, similar to existing Reg E requirements.

    The FDIC said it expects any additional efforts to mitigate risks to be in place by July 1, 2011. ICBA will continue to work with the FDIC on implementation issues related to the guidance. Read FDIC Guidance.

    Back to top

    Community Banks to Save on FICO Payments Under New Assessment

    The FDIC confirmed that it will calculate Financing Corporation obligations based on average consolidated total assets minus tangible equity. Basing FICO payments on the new deposit-insurance assessment base established by the Wall Street Reform Act will result in savings for the nation’s community banks and higher payments by the largest institutions.

    Under the current system, the annual assessment rate for FICO bonds is 1.04 basis points. Expanding the assessment base, which takes effect in the second quarter of 2011, should lower rates to about two-thirds of that rate while raising the same amount to cover the FICO interest obligation.

    Back to top

    WikiLeaks Will Unveil Major Bank Scandal

    As reported on the Forbes web site on November 29, 2010, controversial WikiLeaks spilled the guts of government. Next up: The private sector, starting with one major American bank.

    In an exclusive interview earlier this month, WikiLeaks founder Julian Assange told Forbes that his whistleblower site will release tens of thousands of documents from a major U.S. financial firm in early 2011. Assange wouldn’t say exactly what date, what bank, or what documents, but he compared the coming release to the emails that emerged in the Enron trial, a comprehensive look at a corporation’s bad behavior.
    More.

    Back to top

    Fed Identifies Bailout Recipients

    Under orders from Congress, the Federal Reserve today released the names of companies that received $3.3 trillion to avert a global financial and economic meltdown in 2008. There were six loan programs involving cash infusions, loan guarantees and non recourse loans, as well as currency swaps with other central banks, purchases of mortgage-backed securities, and the rescues of companies such as AIG. Among the largest recipients were Bank of America, Wells Fargo, Goldman Sachs, and AIG. The disclosure is the result of legislation pushed primarily by Senator Bernard Sanders (I-Vermont).
    See Bloomberg Article.

    Back to top

    Banks Earned $14.5 Billion in Third Quarter

    Lower Loan-Loss Provisions Were Key Factor in the Year-Over-Year Improvement.
    More.

    Back to top

    Rural Mainstreet Index Climbs in November

    The Rural Mainstreet Economic Index rose above growth neutral 50.0 for the first time since June. The Index climbed to 53.3, buoyed by healthy farm income, stable farmland prices, and higher farm equipment sales. Meanwhile, farmers have significantly reduced their borrowing and are flush with cash.
    See Report.

    Back to top

    Chicago Fed: District Farmland Values Up 10 Percent

    The Federal Reserve Bank of Chicago reported that farmland values in the Seventh Federal Reserve District jumped 10 percent in the third quarter of 2010. According to the latest
    AgLetter, the value of “good” agricultural land rose 3 percent, and nearly half of the bankers surveyed said they expect values to increase in the fourth quarter.

    Back to top

    Private Sector Payrolls Grow in November

    Private employers in the U.S. added 93,000 jobs in November, the largest increase since November 2007. Many economists view these gains as evidence of a stronger economic recovery.
    See Reuters Article.

    Back to top

    Comment from the BAKER GROUP on Municipal Bonds

    The municipal bond market has cheapened considerably in sympathy with the recent selloff in treasuries. Spreads have widened as the net yield on 10yr bank-qualified municipals has jumped about 40bps higher in the last eight trading sessions depending on the issue. Yields on T-notes of similar duration have risen about 50bps in the same time period. From the standpoint of tax-equivalent yield advantage or spread, municipal bond investors can now buy 10yr bonds at roughly a 320bps spread to duration-equivalent treasuries… 32bps higher than the average of the past year and a half.
    More.

    Back to top

    BAKER Market Update

    Geo-political pressures continue to escalate this week between North and South Korea. Coupled with deepening debt concerns in Europe, the dollar climbed to two-month highs.The skirmish between North and South Korea rallied the Treasury market earlier this week, but gains have since been pared as reports showed a stronger economic demand here in the U.S.
    More.

    Back to top

    ICBA on NPR: Banking Profession Improving

    ICBA Senior Vice President and Chief Economist Paul Merski told National Public Radio that the FDIC’s latest Quarterly Banking Profile shows that the banking profession is doing better. “Profitability is up. Losses are down,” Merski said on All Things Considered.
    Listen to the Clip.

    Back to top

    ICBA President Cam Fine’s “Fine Points”

    Acting Comptroller of the Currency John Walsh, an FDIC board member, called it a “sea change.” He’s right. The FDIC’s plan last month to move forward with asset-based Deposit Insurance Fund assessments marks the final step of a persistent campaign by ICBA and its members to bring greater parity and fairness to the deposit-insurance system for community banks.
    Read Fine Points.

    Back to top

    ICBA Chairman Jim MacPhee’s “From the Top”

    Now the American people, the administration and Congress all know the distinctions between too-big-to-fail Wall Street firms and Main Street community banks.
    See Editorial.

    Back to top

    Deluxe Announces Huge Price Increases! See the Harland Advantage

    Deluxe recently announced the following price increases effective January 3, 2011:

      Products and Services: Average increase of 11%.
      Deluxe Business Advantage: Average increase of 8%.
      Shipping & Handling: Increase of $0.35 per package for standard delivery methods.
      Electronic Billing Fee: A nominal charge of $0.06 for each electronic billing transaction.
      Reprint Orders: Shipping and handling will be charged for reprinted personal product orders.
      Club Program Management & Branch Activation services will be charged $250 per event.

    Without price protection, community banks may pay 30% or more for check products than in 2007.

    Harland Clarke offers CBAI members special pricing and terms, such as an annual price increase cap. Last year, the cap saved CBAI members 7% on check-product purchases and nearly 20% since 2007. For more information, please contact Pam Lowrance at 800/736-2224 or
    cbsc@cbai.com.

    Back to top

    Updated Compliance Solution More Efficient

    Wolters Kluwer Financial Services, a CBSC Preferred Service Provider, recently announced the latest release of ComplianceOne, an integrated documentation and workflow solution to help community banks more efficiently manage compliance. Version 2010.1 offers community banks additional document-preparation and data-flow capabilities. ComplianceOne also now supports new transaction types, including commitment letters, oil and gas loans, commercial debt modifications, demand loans and evergreen loans. The next major release will be Dec. 17.
    Read More.

    Back to top

    CBAI Holds Fourth Annual Women in Community Banking Conference

    This November, CBAI held its annual Women in Community Banking Conference at the Crowne Plaza in Springfield. With nearly 60 female community bankers and eight exhibiting firms in attendance, the fourth annual conference was deemed another success. Participants from all areas of banking and from across the state benefitted from expert speakers, pertinent and informative topics, and peer networking. This conference examined how to deal with negative attitudes and ineffectiveness in the workplace and how to increase revenue and save costs through strategic communication planning. Attendees learned keys to handling increasing demands at work and at home, embracing change, and identifying emerging opportunities. Conference attendees also received a CBAI update from Chairman Michael Estes and a review of the key aspects of the Federal Financial Reform Bill as it affects community banks.

    “This was my first Women in Community Banking Conference and it was wonderful. I gained so much knowledge and enjoyed networking with others. I can’t wait for next year!,” said Erin Pinter, Spring Valley City Bank. Deanna Albertson, State Bank of Graymont, agreed, adding “I loved the motivational speaker Allison Blankenship. She has great insights for women and community banks in these troubled times! I loved the conference!”

    For pictures and testimonials from the conference, please
    click here.

    Back to top

    Milwaukee's Frontier Airlines Center Perfect for CBAI’s 2011 Expo

    CBAI’s 37th Annual Convention, September 22-24, 2011, will be held at the
    Frontier Airlines Center in Milwaukee. The Frontier Airlines Center has 188,695 square feet of contiguous, state-of-the-art exhibit space and a 37,506 square-foot ballroom with ample utilities for corporate theater. An additional 39,364 square feet of meeting space can be partitioned into meeting and breakout rooms equipped for satellite links, video teleconferencing, data transmission, and other technology. Connected by skywalk to Hyatt Regency, where the CBAI convention will be held, the Frontier Airlines Center also better connects events to Milwaukee's flourishing downtown. The center is just a block from the Milwaukee Public Museum, two blocks from the Riverwalk, and easy walking distance to shopping, dining, nightlife, festivals, and attractions.

    Back to top

    Account Titling Seminars Slated for December 7-9

    CBAI is also pleased to offer
    “Account Titling” in three locations December 7-9. This seminar is designed for new-account representatives, tellers, and head tellers who need to understand the various types of account ownerships that exist – from single-account owners through corporations. Learn what the different ownership types represent and how to identify the proper type of account for the customer. In addition, the seminar covers Customer Identification Program requirements and FDIC insurance, as well as operational issues tellers face daily. All new account representatives, tellers, and head tellers would benefit from attending this seminar. Leading this seminar is Bryan Fetty who brings more than 26 years of banking experience to Young & Associates, Inc. At Young & Associates, Inc., Fetty works in the product division and assists with product development and management for all the major divisions of the company. In addition, he consults with banks, performs in-bank training, presents seminars, and assists with the development and maintenance of the corporate website.

    Back to top

    Risk Assess This! & Auditing OREO (The Property, Not the Cookie)

    CBAI is pleased to offer
    “Risk Assess This! & Auditing OREO (The Property, Not the Cookie)” on December 14, 2010, in Springfield. This seminar begins with information to develop a risk assessment using various tools for attendees to keep. In addition, it addresses in the budgeting process and reporting and tracking mechanisms. The afternoon portion covers auditing (OREO), including how a bank legally takes ownership, how to initially account for OREO, how to value OREO on a ongoing basis, how to account for various income/expense items that arise from the bank's ownership, how to account for the disposition of OREO, and the possible accounting issues that occur if the bank finances the sale. Tim Tedrick, partner, and Matt Bollinger, senior manager, both of WIPFLi, LLP, lead this seminar.

    Back to top

    CBAI

           

    CBAI's PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 1/31/2010



    TELEPHONE/WEBCASTS THROUGH 12/31/2010




    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.

    © 2010 Community Bankers Association of Illinois. All Rights Reserved.