Congressman Mike Bost Introduces Legislation to Increase USDA Loan Guarantee Limits

CBAI thanks Illinois Congressman Mike Bost (R-12) for introducing The Beginning Farmer and Rancher Guaranteed Loan Modernization Act of 2016 (H.R. 5733). This legislation amends the Agricultural Act of 1961 to modify the limitations applicable to qualified conservation loan guarantees.

Specifically, the legislation increases USDA guaranteed farm operating and guaranteed real estate loan limits from $1.39 million to $2.5 million while maintaining theCongressmanMikeBost existing 90% guarantee against default. Additionally, it allows higher loan limits in $100,000 increments up to $3.5 million while stepping down the guarantee percentages in 1% increments (90% to 80%). The legislation also includes an exception for certain producers (i.e., qualified beginning or socially disadvantaged farmers or ranchers) with a higher guarantee limit of 95% and stepping down to 85%. An annual inflation adjustment is also included so the guarantee amounts need not be revisited to keep them current. Read Legislation.

In a September 12, 2016 letter, ICBA President Cam Fine thanked Congressman Bost for introducing this legislation and stated that the higher loan limits will benefit family farmers and ranchers. Read ICBA Letter of Support.

CBAI strongly supports H.R. 5733.

September 21, 2016


Congressman Blaine Luetkemeyer Addresses CBAI Convention Attendees

On Saturday, September 17th, Missouri Congressman Blaine Luetkemeyer (R-03) addressed a general session of community bankers during CBAI’s 42nd Annual Convention in Kansas City. The Congressman is a former bank examiner, community banker, small business owner, and currently operates a 160 acre farm. He was first elected to Congress in November of 2008 and serves on the U.S. House Financial Services Committee, and is its Housing and Insurance Subcommittee Chairman, as well as serving as the Vice Chairman of the U.S. House Small Business Committee.


Congressman Luetkemeyer is an outspoken champion of community banks. A strong advocate for tiered regulation, he is the sponsor of the CLEAR Act (H.R. 1233) which contains many regulatory relief provisions from the ICBA’s Plan for Prosperity. He has also sponsored legislation in the 114th Congress to eliminate redundant privacy notices (H.R. 601), withdraw the Federal Housing Finance Agency’s harmful proposal to restrict membership in Federal Home Loan Banks (H.R. 3808), and prohibit the regulators from implementing “Operation Choke Point” (H.R. 766). Congressman Luetkemeyer discussed the prospects for enacting regulatory relief legislation after the November election and during the next session of Congress in 2017.

The Congressman also responded to questions and concerns relating to the general election, legislative gridlock, the pace and scope of additional regulatory relief for community banks, and the importance of community banker advocacy efforts in the legislative and regulatory process.

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CBAI thanks Congressman Luetkemeyer for taking the time to address Illinois community bankers at Convention.

September 17, 2016


CBAI Convention Breakout Session Featured FASB/CECL Community Bankers Advocacy Success

During a lively Breakout Session at CBAI's 42nd Annual Convention community bankers heard first-hand accounts of how their aggressive advocacy efforts, and those of the associations that exclusively represent their interests, resulted in significant revisions to the proposed Financial Accounting Standards Board’s (FASB) Current Expected Credit Loss (CECL) model.

CBAI member Greg Ohlendorf (President and CEO of First Community Bank and Trust in Beecher, Illinois) and James Kendrick (ICBA’s Vice President of Accounting Conv CECLFASB Advocacyand Capital Policy) represented the nation’s community banks in numerous meetings with FASB and described the significant concessions and accommodations community bankers received leading up to the final release of CECL. The new accounting rule will now be more manageable than what was first proposed as it will not require complex and costly models, benchmark increases to allowance levels, or loss forecasts for the entire life of loan.

Kendrick and Ohlendorf gave the Breakout Session attendees a revealing peek behind the curtain of this regulatory rulemaking process including the events leading up to a contentious meeting with FASB on the cusp of the release of the CECL. Community bankers also learned what the banking regulators are saying about their CECL implementation plans and what bankers need to be doing (and not doing) right now to prepare for this new mandatory credit loss model.

This informative discussion clearly reinforced the fact that community banker advocacy is important and truly does make a difference.

September 17, 2016



CBAI Articles

FASB Revises the Current Expected Credit Loss Model – June 16, 2016

CECL Update – CBAI Member Attends FASB Meeting – February 15, 2016

ICBA Press Releases

FASB Makes Major Improvements to Accounting Standard – June 16, 2016

FASB Continues Progress with Revised Accounting Disclosure – April 27, 2016

CECL Reforms Show FASB Listening to Community Banks – April 22, 2016

ICBA to FASB: Hit Stop Button on Dangerous Accounting Plan – February 4, 2016


Joint Statement by the Regulators – June 17, 2016

ICBA Questions and Answers


ICBA Files Suit Against NCUA for Unlawful Commercial Lending Limit Rulemaking

On September 7, 2016, the Independent Community Bankers of America (ICBA) filed suit against the National Credit Union Administration (NCUA) for unlawful rulemaking for allowing tax-exempt credit unions to exceed commercial lending limits set by Congress. The NCUA rule would dramatically expand lending loopholes for credit unions by allowing them to exclude purchased nonmember commercial loans and participations from the calculation of their aggregate member business loans.

This unlawful rulemaking is the latest step in the NCUA’s transformation from a federal financial regulator to a cheerleader for its taxpayer-subsidized industry. The NCUA action in rulemaking is contrary to the plain language of the Federal Credit Union Act, as amended by the Credit Union Membership Access Act, which expressly limits the amount of member business loans that may be held on credit union balance sheets.

Opposing the expansionist agenda of credit unions has long been a federal policy priority of CBAI. CBAI which fully supports the ICBA legal action against the NCUA for ignoring its statutory boundaries and its blatant end-around Congress. Read Complaint.

September 7, 2016


State Bank of Toulon Hosts Meeting with Congressman Darin LaHood (R-18)

CBAI Regional Vice Chairman Doug Parrott, President and CEO of State Bank of Toulon, hosted a meeting with Congressman Darin LaHood (R-18) and Congressional District Director Brad Stotler to discuss community bank issues and opportunities. Joining in the meeting were Andrew Black (President and CEO of Princeville State Bank), Keith Douglas (President and CEO of Tompkins State Bank, Steve Leuthold (President and CEO of State Bank of Speer), and David Schroeder (CBAI Vice President Federal Governmental Relations). The roundtable discussion covered a variety of topics of interest to both the community bankers and Congressman LaHood.

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Doug Parrott started the meeting by thanking Congressman LaHood for cosponsoring the CLEAR Act (H.R. 1233) which includes many community bank regulatory relief measures contained in the Independent Community Bankers of America (ICBA) Plan for Prosperity, and also for signing a bi-partisan United States House of Representatives’ letter to the Consumer Financial Protection Bureau asking them to exempt community banks from their rules.

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The Congressman asked what keeps community bankers up at night. The bankers highlighted a diverse list of challenges they face in meeting new regulatory requirements while trying to maintain their focus on serving their communities. The issues included: overregulation, the “trickle down” of many regulations meant for the largest banks being applied to community banks and its unfortunate impact on industry consolidation, the new Department of Labor overtime rules and the impact on small banks and small business, the new Qualified Mortgage (QM) requirements discouraging residential mortgage lending, harmful Farm Credit and credit union expansion, the importance of maintaining the crop insurance programs, rural economic development, and the various issues the State of Illinois and its citizens face with the budget stalemate and growing indebtedness.


Congressman LaHood appreciated the opportunity to meet with local community bank leadership and the bankers expressed their sincere appreciation for the Congressman taking the time to visit with them about their issues and opportunities.

August 31, 2016