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     A Bi-Weekly News Bulletin for CBAI Members                   December 12, 2012 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
  • TAG Extension Clears Important Hurdle in U.S. Senate
  • ICBA and CBAI Continue Call for TAG Grassroots
  • Five Reasons to Extend TAG
  • Credit Unions Roll Over on TAG in Favor of Power Grab
  • ATM Fee Disclosure and CFPB Information Sharing Bills Approved
  • 31st Annual CBAI Call on Washington to be Held April 23-26, 2013
  • Fed Expands Purchase of U.S. Securities
  • Is Your Mortgage Protection Program Burdensome?
  • CBAI Add-an-Officer and Director’s Pipeline Keep You in the Loop
  • Baker Market Update
  • IDFPR Re-accredited by CSBS
  • Mapping Net Interest Margins in Illinois
  • Using Your Existing Accounts Base to Maximize Growth and Retention
  • FREE 2013 Holiday Bank Closing Signs Available
  • Diebold White Paper: Branch Transformation
  • ICBA Bancard Addresses EMV’s Frequently Asked Questions
  • Bancard Offers Tips to Protect Against Holiday Fraud
  • Fourth Quarter 2012 FREE Community Banking Ads Available
  • ComplianceOne Users Meeting Scheduled for Feb 5, 2013 in Springfield
  • Illinois Climatologist Expects US Drought Through 2013
  • Compliance Institute (Operations/Deposit) Set for January 8-9, 2013
  • Commercial Lending Institute to be Held January 14-16, 2013
  • Community Bank Directors’ College Scheduled for January 23 & 24, 2013
  • Join CBAI’s Branch Managers’/HR Forums


  • TAG Extension Clears Important Hurdle in U.S. Senate

    A two year extension of the Transaction Account Guarantee (TAG) program cleared an important hurdle in the Senate today by a 76 to 20 vote to limit debate on S. 3637.

    The vote on the Motion to Proceed passed by more than the required 60 votes with strong bipartisan support. Twenty-six Senate Republicans joined Senate Democrats in voting to move the Bill forward. Illinois Senator Richard Durbin voted for the Motion, but Senator Kirk will not be rejoining the Senate until after year-end and was not voting. CBAI thanks our many Illinois community bankers for their grassroots efforts to extend the TAG program.

    There will likely be another procedural vote later this week to move this important legislation forward.

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    ICBA and CBAI Continue Call for TAG Grassroots

    ICBA and CBAI are urging community bankers to keep up their grassroots outreach in support of legislation to extend full Transaction Account Guarantee coverage of noninterest-bearing transaction accounts. With legislation now pending in the Senate, community bankers must keep up the pressure with just two weeks left in the congressional session by
    calling and writing their lawmakers.

    Allowing the coverage of more than $1.4 trillion in deposits to expire on Dec. 31 would disrupt the community banking industry and exacerbate deposit concentration in the largest banks. Community bankers who have already contacted their lawmakers should continue calling and writing to ensure their voices are heard before it’s too late. Call Your Senators Now. Write Your Senators Today.

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    Five Reasons to Extend TAG

    With the fate of the proposed TAG extension now in the hands of Congress, ICBA’s chief economist Paul Merski cited five solid reasons why the two-year extension of TAG should be approved.
    See AB Article.

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    Credit Unions Roll Over on TAG in Favor of Power Grab

    Te credit union industry, which benefits from full coverage of noninterest-bearing transaction accounts, has split on whether the coverage should be temporarily extended, according to news reports.
    The American Banker reported that the Credit Union National Association has joined the Financial Services Roundtable, which represents the largest financial institutions, in opposing an extension of the Transaction Account Guarantee program. Meanwhile, the National Association of Federal Credit Unions has joined ICBA and others in calling for a temporary extension of the coverage.

    CUNA’s turnabout was likely retaliation against community banks for adamantly opposing a credit union bill that would more than double their business-lending cap to 27.5 percent of assets, the newspaper reported. ICBA has led the opposition to tying an increase in the tax-exempt credit unions’ business-lending authority to a TAG extension and has said it would never agree to such a deal. Meanwhile, the megabanks represented by FSR have little need for TAG coverage due to their too-big-to-fail government guarantee.

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    ATM Fee Disclosure and CFPB Information Sharing Bills Approved

    Yesterday the U.S. Senate passed two important measures for banks which will now go to the President for his signature. Identical bills had already passed the U.S. House. The ATM bill cancels the requirement that banks must post a physical sign disclosing ATM fees which should eliminate nuisance lawsuits that have plagued many institutions across America. The other measure strengthens protections for confidential information shared with the CFPB. CBAI supported both bills.

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    31st Annual CBAI Call on Washington to be Held April 23-26, 2013

    Call on Washington is CBAI's annual lobbying trip to our Nation's Capital. Now in its 31st year, scores of community bankers from across Illinois will join with their colleagues from across the nation and meet with Members of Congress and federal bank regulators in Washington, D.C. to express their opinions on important bank issues. YOUR VOICE CAN MAKE A DIFFERENCE! Now is the time to get involved. PLEASE PLAN TO JOIN US.
    Save The Date.

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    Fed Expands Purchase of U.S. Securities

    The Federal Reserve announced today that it will expand its asset-purchase program by acquiring $45 billion a month of Treasury securities beginning in January. The Fed said rates will stay low as long as the unemployment rate remains above 6.5 percent and if inflation is projected to stay below 2.5 percent.
    See Bloomberg Article. See Federal Reserve Release.

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    Is Your Mortgage Protection Program Burdensome?

    Blanket Mortgage Hazard Insurance provides coverage of the entire mortgage-loan portfolio against uninsured physical damage without the aggravation and expense of tracking property insurance.
    See CBIS Nicoud Article.

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    CBAI Add-an-Officer and Director’s Pipeline Keep You in the Loop

    Are your bank-management team and outside directors in the loop on regulation, legislation, and CBAI activities? For a nominal fee, you can guarantee it through a CBAI Add-an-Officer or Directors’ Pipeline subscription.

  • Add-an-Officer (for officers who are not bank’s main CBAI contact)

  • Directors’ Pipeline (for outside directors)
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    Baker Market Update

    Information received since the Federal Open Market Committee met in October suggests that economic activity and employment have continued to expand at a moderate pace in recent months, apart from weather-related disruptions. Although the unemployment rate has declined somewhat since the summer, it remains elevated.
    Read More.

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    IDFPR Re-accredited by CSBS

    The Illinois Department of Financial and Professional Regulation, which oversees the Division of Banking, last week received its sixth consecutive certificate of accreditation from the Conference of State Bank Supervisors (CSBS). The designation indicates that, after a rigorous review process, the agency is committed to exercising the highest standards of state bank supervision.
    See CSBS Release.

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    Mapping Net Interest Margins in Illinois

    In the current low interest rate environment bankers are working hard to maintain net interest margin and deliver adequate returns to shareholders. How is your bank doing relative to your local market competition? Are you leading the pack or lagging behind? This free
    interactive map from Bank Trends, a CBSC preferred marketing partner, provides key performance measures for all Illinois banks, making it easy to analyze competitors in your local market. Bank Trends subscribers have access to additional reports that analyze rate and yield trends by loan type, deposit type, or investment category. Use Q3 Illinois Performance Map.

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    Using Your Existing Accounts Base to Maximize Growth and Retention

    It’s a fact. Across the board, in every industry, selling new products and services to existing customers is less expensive than acquiring new customers. It’s also true that the more products and services a customer buys from one resource, the less likely it is for that customer to switch to a new provider.
    Download Harland Clarke Whitepaper.

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    FREE 2013 Holiday Bank Closing Signs Available

    Print holiday signs as a free CBAI member benefit. All signs are in Adobe Acrobat format. If you don't have Adobe Acrobat, visit
    Adobe.com to download a free version of this reader. The signs can be printed in English or Spanish, and in color or black and white. To view and print ads, Click Here.

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    Diebold White Paper: Branch Transformation

    Branch transformation means different things to different banks, as every business has unique structural, procedural and technological concerns around which a strategy should be customized. Even so, there are a few universal tenets of a successful branch transformation strategy. This Diebold white paper explores each of these, considers what changes from a physical, technological and cultural perspective may be necessary to run a more efficient branch network. Diebold is a marketing partner of Community BancService Corporation (CBSC).
    Read More.

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    ICBA Bancard Addresses EMV’s Frequently Asked Questions

    ICBA Bancard and its partner, FIS have created a
    one-page document highlighting frequently asked questions regarding EMV (Europay, MasterCard, Visa) adoption in the United States. EMV refers to the standard governing transactions between chip cards and terminals, widely adopted overseas and fast-tracked for US adoption in the next several years thanks to an elevated timeline put forth by Visa and MasterCard. Additional information, including recorded webinar presentations is available at Bancard University. Read, “The EMV Roadmap—Get Ready,” in the Fall 2012 edition of Bancard Confidential.

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    Bancard Offers Tips to Protect Against Holiday Fraud

    Help safeguard your customers this holiday season by sharing tips to help them avoid becoming a victim of fraud. Remind customers:
      • A favorite practice of office thieves is to canvas offices during lunch time, dressed in business attire and lift unattended valuables. These individuals can be questioned in a non-confrontational way by asking if they need help or inquiring about whom they are there to visit.

      • Most thieves will quickly remove what they want from a purse or wallet (cards and cash) and discard the rest nearby. By checking nearby washrooms or office receptacles they may be able to recover stolen items.
    Visa offers a free service, called V.me that lets customers list all their cards and establish text message alert thresholds.

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    Fourth Quarter 2012 FREE Community Banking Ads Available

    New ads to wish your bank customers a safe holiday season. To view and download ads,
    Click Here.

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    ComplianceOne Users Meeting Scheduled for Feb 5, 2013 in Springfield

    Whether your bank is an experienced ComplianceOne® user or recently installed the state-of-the-art system, Wolters Kluwer Financial Services and CBSC are preparing a ComplianceOne User Meeting for LENDERS that you won’t want to miss! For more information and to register,
    Click Here.

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    Illinois Climatologist Expects US Drought Through 2013

    Illinois' state climatologist said last week that he believes the worst U.S. drought in decades likely will continue through next year. Jim Angel of the Illinois State Water Survey said, "It's going to be a long, slow recovery from this particular drought." Angel spoke during a conference in St. Louis about the Mississippi River's future.

    More than 60 percent of the continental U.S. has been gripped by some form of drought since last summer. More than 90 percent of Nebraska and Oklahoma were hit by extreme or exceptional drought. Those are the two worst classifications. The drought has withered crops and lowered the Mississippi River's levels to a point that could force slowdowns, if not shutdowns, of barge traffic between St. Louis and Cairo.

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    Compliance Institute (Operations/Deposit) Set for January 8-9, 2013

    Community banks are constantly faced with ever-changing regulations. In response to this training need, CBAI presents the
    Compliance Institute" this January and April. An introductory course for those compliance officers who are either new to banking or new to their positions, this institute is designed to provide a comprehensive understanding of the major regulatory compliance regulations that are "must knows" for compliance officers. The Institute is divided into two sessions, Operations/Deposit Compliance and Lending Compliance. Attendees can attend one or both sessions, dependent upon need. Offered in January, Operations/Deposit Compliance addresses topics including compliance management, Bank Secrecy Act, Truth in Savings Act, Regulation CC, and the Electronic Funds Transfer Act. Topics covered in Lending Compliance, offered in April, include Regulation Z, Community Reinvestment Act, Home Mortgage Disclosure Act, Fair Credit Reporting Act, and BSA. Bill Elliott, senior consultant and manager of compliance, and Adam Witmer, CRCM, consultant, both of Young & Associates, Inc., Kent, OH, lead this institute.

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    Commercial Lending Institute to be Held January 14-16, 2013

    The three-day
    Commercial Lending Institute provides commercial lenders with a solid foundation for producing and managing a quality loan portfolio. It focuses on analytical tools such as ratio, financial, cash flow analysis, as well as commercial loan structuring to enhance repayment capacity. Case studies are used to reinforce learning and represent typical community bank borrowers. Topics covered on day one include financial statement review, credit and ratio analysis, asset-conversion cycle analysis, and ratio interpretation. Cash budgeting, loan structuring, commercial loan documentation, and credit risk management are among the topics on day two. Day three examines cash-flow analysis, financial forecasting, and writing credit memos. Jeffery Johnson, president and founder of Bankers Insight Group, Atlanta, GA, heads this distinguished faculty. He is joined by Gerald Pfeiffer, partner, and Andrea Zurkamer, senior manager of assurance services, both of CliftonLarsonAllen, LLP in Peoria, IL; and Robert M. Swartz, manager, and Gary Genenbacher, CPA and partner, both of BKD, LLP.

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    Community Bank Directors’ College Scheduled for January 23 & 24, 2013

    The
    Community Bank Directors’ College was developed in close conjunction with both state and federal regulators, and is designed to teach individuals how to become more effective, capable, and supportive members of their bank’s board of directors. The goal is to graduate directors who return to their banks more active, more knowledgeable, and more decisive -- an even bigger asset to your community bank. The College is offered once a year and provides a thorough understanding of bank operations and bank directors’ responsibilities. The college is recommended for both new and seasoned bank directors. It is structured as two, two-day sessions offered on a annual basis; either may be attended as a stand-alone course. The first session will be held at Northfield Inn and Conference Center in Springfield, IL, January 23-24, 2013. Topics covered include an overview of the role of the bank director, the changing landscape of banking, the director and the board, and the loan process from the director’s view. The internal audit function, directors’ responsibilities in compliance, strategic technology planning and security update, your regulators' view of directors' responsibilities, and regulatory hot topics are also addressed.

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    Join CBAI’s Branch Managers’/HR Forums

    CBAI is pleased to offer “Branch Manager/HR Forums” which meet quarterly with seasoned facilitators. The next sessions will be conducted on January 10 at CBAI Headquarters in Springfield and January 18 at the Hilton Lisle/Naperville, Lisle. CBAI organizes the forums based on bank size and market to ensure that branch managers and HR officers have as much in common as possible without being competitors. (However, you do not necessarily need the title of Branch Manager or HR officer to become a member of the group). The groups remain small, no more than 12 participants. Because each participant must trust other group members, no substitutes are permitted unless by unanimous consent of the remaining members. Other consultants from a variety of firms may be invited to address the group. This expertise would cost thousands of dollars if you had to pay for it on a “real-time” basis. Forums meet quarterly at a date and location determined by the group members. Four to six issues are usually discussed at each session. Participants are contacted for agenda items approximately three weeks prior to each meeting. Robert Swartz, manager at BKD,LLP, Decatur, facilitates the Branch Managers’ Forum held in Springfield, and Kathy Enbom, manager with Wipfli LLP, facilitates the Lisle Group.
    Join Now.

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