Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois Community Bankers Association of Illinois
January 16, 2008 Graphic Graphic
Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
CBAI Electronic Newsletter Launched -
"Connected! To Community Banking"

CBAI is pleased to announce the first issue of its electronic newsletter named: Connected! To Community Banking. It was developed after member requests for a timely, condensed, electronic communication focusing on issues of importance to community banking in Illinois. Its purpose is to keep those with an interest in community banking apprised of current events.

CBAI's bi-monthly magazine, Banknotes, and its legislative publication, News from the Front, will continue to be sent as before. However, it is anticipated that the e-newsletter will reduce the number of e-mails being distributed to recipients from CBAI and will serve as an additional resource of time-sensitive information.

CBAI welcomes your comments on how to improve the design and development of "Connected! To Community Banking," as well as its other communications. The Association strives to be of service to its members.

This e-newsletter is delivered as an .html attachment to e-mail and sent to all personnel in the financial institution for whom CBAI has e-mail addresses; please inform us at if someone in your organization wishes to receive it who is not already doing so.

Welcome New Associate Members
     Illinois Business Financial Services

     124 S.W. Adams Street, Suite 300
     Peoria, IL 61602
     Charles Randle, President
     309-495-5980 / Fax: 309-676-7534
     Small Business Loans

     Polsinelli Shalton Flanigan Suelthaus PC (Additional Office)
     180 N. Stetson Avenue, Suite 4525
     Chicago, IL 60601
     Anthony J. Nasharr, Shareholder
     312-819-1900 / Fax: 312-819-1910
     Law Firm

  • Banks Win Fight To Deduct Interest on Government Securities
  • 24th Annual Capital Conference Scheduled for 2/20/08
  • FDIC Quarterly Just Released
  • Consumer Credit Jumps 7.5 Percent in November
  • Baker Market Newsletter
  • Meet Your Legislator!
  • OCC Reminds Consumers to Read Gift Cards' Fine Print
                 News Release 2007-127
  • Deposit Growth Slows; FDIC Assessment Rate Postponed
  • Reporting Mortgage Activity in Call Reports
  • Fed Study Tracks Growth of Non-cash Payments
  • February Chicago Fed Letter Posted
  • Legal Link: Service Charges on "Dormant" or "Inactive" Accounts
  • SHAZAM ® Announces New MasterCard® and Visa® Gift Card
  • CBSC Market and Branch Analysis Service Incorporates 2007 FDIC Summary of Deposits Data

  • Banks Win Fight To Deduct Interest on Government Securities
    CBAI's effort to restore the ability of financial institutions to deduct interest and other expenses against income earned on federal securities has been successful. For the full story,

    24th Annual Capital Conference Scheduled for 2/20/08
    Capital Conference is CBAI's premier annual event for community-bank officers and directors from across the state to come to our state capital and discuss legislative and regulatory issues of interest with elected officials. The Agenda includes a briefing on legislation, regulation, and litigation affecting banking today, a presentation by Rich Miller of Capitol Fax acclaim, direct lobbying at the state capitol, group meetings with State Treasurer Alexi Giannoulias and State Senate Minority Leader Frank Watson, and a sumptuous legislative reception. For further details and to register,

    FDIC Quarterly Just Released
    The current issue of the
    FDIC Quarterly released today includes two feature articles. The Case for Loan Modification With a Foreword by Sheila C. Bair, Chairman, Federal Deposit Insurance Corporation discusses current conditions in the U.S. subprime mortgage market. The article outlines the analytical case for a systematic and streamlined loan modification process that will help avert foreclosure for borrowers who are current on their loans, but who cannot refinance or afford the higher payments when interest rates reset. The article also addresses common misconceptions about a streamlined approach to subprime mortgage restructuring.

    The second article, Establishing Voluntary Excess Deposit Insurance: Results of the 2006 FDIC Study, presents the results of a congressionally mandated study on the feasibility of establishing a voluntary deposit insurance system for deposits exceeding the maximum amount of FDIC insurance. This article describes market changes that have reduced the demand for excess deposit insurance and provided depositors with other options to protect excess deposits. The authors also examine two possible approaches available to the FDIC if Congress were to decide the Corporation should play a role in providing excess deposit insurance.

    This issue of the FDIC Quarterly also includes third quarter industry results from the Quarterly Banking Profile released on November 28, 2007.

    Consumer Credit Jumps 7.5 Percent in November
    Outstanding consumer credit increased at a 7.5 percent annual rate in November to $2.5 trillion, the Federal Reserve
    reported. Revolving credit, including credit card balances, increased at an annual rate of 11.25 percent. Non-revolving credit increased at an annual rate of 5 percent.

    Meet Your Legislator!
    CBAI 's Department of Governmental Relations staff is always working to build and maintain relationships between CBAI members and their elected officials. This month we are happy to report that on Monday, January 28, 2008, CBAI will be hosting a luncheon for State Senator Debbie Halvorson (D-40) beginning at 11:30 a.m. at Al's Steak House, 1990 West Jefferson Street in Joliet.
    Click Here for more Details! CBAI is also planning an event with U.S. Representative Judy Biggert for next month! Stay tuned to for an event near you!

    Deposit Growth Slows, FDIC Assessment Rate Postponed
    Noting that deposit growth slowed considerably during the third-quarter of 2007, the FDIC board of directors
    postponed a decision on what the 2008 first-quarter assessment rates for insured financial institutions will be until March 2008, when the agency expects to have more data. For now, it appears that the safest FDIC-insured institutions will continue to pay quarterly assessments of 5 to 7 basis points through the fourth quarter of this year.

    Preliminary data showed deposit growth decreased to an annual rate of 0.2 percent during the third quarter of 2007, which would mean that for the first nine months this year deposit growth was around 2.8 percent. Officials anticipated an annualized deposit growth rate of at least 5 percent for the first nine months. The board did decide to maintain the designated reserve ratio for the Deposit Insurance Fund steady at 1.25 percent for 2008.

    Fed Study Tracks Growth of Non-cash Payments
    The total number of non-cash payments in the United States has increased at an annual rate of 4.6 percent since 2003, to a total of 93 billion transactions in 2006 valued at $76 trillion, according to the Federal Reserve's most recent payments study. The 17-page
    2007 Federal Reserve Payments Study was published last month is part of an ongoing effort by the Fed to measure trends in non-cash payments. Payments tracked include paper checks, debit and credit cards, automated clearing house transactions, and electronic benefits transfer. The study also estimated the number and value of ATM withdrawals.

    February Chicago Fed Letter Posted
    The February 2008 Chicago Fed Letter (Number 247) "Economic Outlook Symposium: Summary of 2007 results and forecasts for 2008" by William A. Strauss and Emily A. Engel has been made available.

    According to participants in the Chicago Fed's annual Economic Outlook Symposium, the nation's economic growth in 2008 is forecasted to be roughly in line with the pace recorded over the past two years, with inflation moving lower and the unemployment rate edging higher.

    Simply click on the following link to review it.

    Legal Link: Service Charges on "Dormant" or "Inactive" Accounts
    A bank is allowed to charge a service charge on dormant accounts. First, let's distinguish between what the bank internally considers to be a "dormant" or "inactive" account versus what Illinois law considers to be "unclaimed property" that must be reported and turned over to the custody of the State Treasurer. The bank may define, in its own account contracts with accountholders, when an account will be deemed to be inactive and will thus be assessed a service charge. For example, a bank may specify that if an account has no transactions or activity for a span of two years, it will be deemed to be inactive and a service charge or maintenance charge will begin to be assessed. Illinois law, specifically the Uniform Disposition of Unclaimed Property Act, declares an inactive account to be "unclaimed property" when the customer has had no activity related to that account or to other business with that bank (provided that the accountholder and mailing address for the bank statements are the same for the "other business" as for the inactive account) for a span of five years. The State Treasurer has adopted regulations specifying that a bank may only deduct service charges (including dormancy charges) from an account at the time that the account is referred to the State Treasurer as unclaimed property if: (1) such service charges are part of a written contractual arrangement between the bank and the accountholder; and (2) the bank actually enforces those contractual charges against inactive accounts as part of the ordinary course of the bank's business and is not selectively enforcing such charges only on those accounts that are being turned over to the State Treasurer as unclaimed property.

    SHAZAM ® Announces New MasterCard® and Visa® Gift Card
    Generate profits in the gift card market with SHAZAM's new gift card program. With multiple card options, more than 30 gift card designs, and the ability to customize cards, SHAZAM's gift card program provides a low-risk opportunity to enhance customer offerings and benefit the bank's bottom line.

    The program offers revenue and competitive opportunities, while giving access to a new customer base. In addition, offering gift cards to customers can help build and maintain long-term relationships and customer loyalty. All cards support MasterCard® and Visa®, and can be branded with a custom message and bank logo. The program is easy to implement, so the bank can offer these attractive gift cards in a timely matter. A key component of the program is a non-reloadable, instant-issue, signature-based gift card accepted at the point of sale. Other gift card solutions available through SHAZAM include a reloadable card, travel card, youth card, and global money transfer service. For more information about the program, go to

    CBSC Market and Branch Analysis Service Incorporates 2007 FDIC Summary of Deposits Data
    The CBSC Market and Branch Analysis Program has incorporated the recently released 2007 FDIC Summary Of Deposits (SOD) data. The SOD contains deposit data for more than 89,000 branches/offices of FDIC-insured institutions. The Federal Deposit Insurance Corporation (FDIC) collects deposit balances for commercial and savings banks as of June 30 of each year, and the Office of Thrift Supervision (OTS) collects the same data for savings institutions.

    The 2007 SOD report is populated into the demand software utilized by CBSC to provide CBAI members with demographic and competitive profiles and a five-year deposit history for financial institutions in their trade areas. The service can also produce pro forma financials for a proposed branch. Click here to view sample reports. For more information, contact Judy Wheaton at CBAI headquarters at 800/736-2224.

    Capital Conference 2/20/08

    Community Banking Week in Illinois

    CBAI's Professional Development Programs thru 1/31:

    › Senior Lenders' Forums

    › Compliance for Lenders

    › IRA Seminars

    CBAI’s 34th Annual Convention:
    "Hometown Heroes", 9/11-13, 2008
    Crowne Plaza Hotel,

    Group Meetings


    Officer Compensation Survey

    Web-Site Hosting

    Market Analysis and Branch Planning

    Market Opinion Research

    Broker/Dealer Services

    Check Printing/Direct Marketing Services

    Credit Cards

    Merchant Cards

    Debit/ATM Network Services

    Internet Banking

    Overdraft Privilege

    Compliance Software

    Mortgage Lending

    Office Supplies and Furniture

    Disaster Recovery Facilities

    Loan Audit Review

    Club Account Strategies

    Currency Equipment

    Debt Collection

    Manufactured Housing Lending

    Reward Checking

    UCC Search, Retrieval and Filing

    Fraud Resources

    "Winning Communities"

    Career Center and Message Board

    Bank Liquidity Program

    Travellers Cheques, Foreign Exchange Services


    Life and Disability

    Health Savings Accounts

    Employee Benefits

    Benefits Financing Alternatives

    Executive and Director Compensation

    Flood Insurance



    Annual Essay Scholarship

    William C. Harris Memorial Scholarship

    The SHAZAM® Scholarship

    Donor Recognition

    How to Contribute



    › Advertising

    › Subscriptions

    › Director Stories

    Illinois Financial Directory and Fact Book

    Organizing a Bank

    Annual Report

    CBAI History

    800.736.2224 (IL) | 217.529.2265 |

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