CBAI Marks 45th Anniversary Today!
CBAI's 35th Annual Capital Conference Registration is Underway!
Governor Proposes New Taxes in Budget Address
Register Now for CBAI’s 37th Annual Call on Washington
FDIC Proposes Changes to Assessment Regulations
Investment News from THE BAKER GROUP
Fed Report Notes Solid, But Slower Growth in 2018
Rural Mainstreet Economic Index Falls for February
Banking Profession Reports Strong Q4 2018
Community Bank Loan Growth Tops Other Entities: FDIC
ICBA and Farm Groups Urge No Cuts to Crop Insurance
Farmer Mac Reports Year-End Financials
CBAI Announces After-Dinner Presentation at 2019 Spring Group Meetings
Gallup Poll: Americans' Confidence in Their Finances Keeps Growing
2019 CBAI Compensation Survey Now Available Online
Community Banking Week in Illinois is Coming!
Register Today for Early-Bird Pricing at CBAI’s 45th Annual Convention & Expo
Submit a Nomination for the 2019 Excellence & Innovation BKD Award
Ncontracts Combines with TRUPOINT Partners to Bring Comprehensive Suite of Risk Management Solutions to Financial Institutions
Arthur J. Gallagher & Co. Named One of 2019 World's Most Ethical Companies
Harland Clarke: Cracking the Code to Making Your Institution Relevant
CBIS: Carriers Vary in D&O Securities Protection
2019 Branch Management Update Offered March 5 in Springfield
Preparing for Your Next IT Exam to be Held March 6 in Springfield
The Network Security Headache Seminar Scheduled for March 7 in Springfield
CBAI Marks 45th Anniversary Today!
CBAI has attained another milestone. Forty-five years ago, on February 27, 1974, the association was incorporated by a band of community bankers who recognized the importance of establishing an organization dedicated to their profession.
Rising from the debate over bank structure in the 1960s and 1970s, CBAI has become one of the largest state banking associations in America in terms of membership, annual budget, net worth, and scope and breadth of services.
On this special occasion, the CBAI leadership and staff extend thanks and appreciation to all member bank officers, directors, and employees as well as associate member firms for your support and involvement. Please rest assured that the association’s commitment to the perpetuation of a vibrant and prosperous community banking system in Illinois remains strong and focused.
One Mission. Community Banks!
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CBAI's 35th Annual Capital Conference Registration is Underway!
For one day every year, CBAI member bankers make their voices heard face-to-face with lawmakers at the State Capitol. The 35th Annual Capital Conference will be held Wednesday, April 10, 2019, at the Wyndham Springfield City Centre. The day begins with a legislative briefing and luncheon. After lunch, with key talking points in hand, our constituency moves to the State Capitol to meet with regulators and legislators. The day is capped off with a reception for bankers, legislators and regulators at the top of the Wyndham. This is your opportunity to make your voice heard!
One registration fee covers the cost for ALL! Please bring as many officers, directors and employees as you can. A block of rooms has been reserved at Wyndham Springfield City Centre at the rate of $116 per night. To make reservations, please call or email Jessie Schmidt at 217/529-2265.
The Early-bird special is ONLY $100 per institution. After April 1, 2019, the cost will be $150 per institution. REGISTER TODAY!
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Governor Proposes New Taxes in Budget Address
Governor JB Pritzker recently presented a proposed budget to the General Assembly that includes $38 billion in state general fund spending. The proposal outlines a $3.2 billion structural deficit that would require new revenues to balance the budget. The Governor proposed a myriad of new taxes including taxes on healthcare premiums, e-cigarettes, cigarettes, sports betting, recreational cannabis, plastic grocery bags, and video gambling. He proposed eliminating several tax credits, skipping part of the state pension payment and extending the payment ramp by seven years.
The Governor signed the $15 minimum wage into law. CBAI has filed bills containing our 2019 state legislative agenda. A new Director of the Illinois Department of Financial and Professional Regulation has been named. You can read more about these issues and an update of CBAI’s federal lobbying efforts in the latest edition of NEWS FROM THE FRONT.
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Register Now for CBAI’s 37th Annual Call on Washington
Join us for CBAI's 37th Annual Call on Washington, which will be held at the Grand Hyatt Washington on April 28 through May 1, 2019. Celebrating its 37th year, CBAI bankers from across Illinois will travel to Washington, D.C., and call on their members of Congress and regulators to support issues of importance to Illinois community banks. YOUR VOICE DOES MAKE A DIFFERENCE! Now is the time to get involved.
Again this year, our Call on Washington will be held in conjunction with the ICBA's 2019 Capital Summit. Along with CBAI coordinated events, our entire delegation will attend ICBA's meetings and events. See More Details Here and Register Today!
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PREPARE NOW FOR THE “WHAT IF?” TOMORROW COULD BRING
Schedule a SHAZAM Crisis Management on-site risk assessment and training session with former detective and homeland security instructor, Mike Burke. Mike will train your team on what to do in case of a robbery, active shooter, skimming/card cloning and more. Plus, you can invite business owners, city officials and law enforcement from your community to participate. Contact us to learn more!
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FDIC Proposes Changes to Assessment Regulations
The FDIC proposed changes to its deposit insurance regulation to apply the community bank leverage ratio framework to the deposit insurance assessment system. Under the proposal, the FDIC would assess all banks that elect to use the CBLR framework as small banks. Each bank would have the option to use either CBLR tangible equity or tier 1 capital for its assessment base calculation. Banks would also be given the option of using either the CBLR or the tier 1 leverage ratio for the leverage ratio that the FDIC uses to calculate an established small bank’s assessment rate.
The FDIC plans to provide an assessment estimation tool on its website that estimates deposit insurance assessment amounts under the proposal. Comments are due by April 22, 2019. Read More.
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Investment News from THE BAKER GROUP
Baker Market Update
The week begins with high hopes and optimism; a good way to start anything, after the Presidential announcement that the March 1 deadline for tariff increases on Chinese imports would be extended since the ongoing trade talks are going so well. While many assume that a beneficial resolution is imminent, China’s official news agency cautioned caution, noting that trade frictions are “long-term, complicated, and arduous.” Killjoy. See Baker Market Update.
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Fed Report Notes Solid, But Slower Growth in 2018
The Federal Reserve said it will stick to its “patient” approach as it determines future adjustments amid concerns of a slowing global economy and last year’s financial turmoil, according to the central bank’s annual report to Congress.
The report reinforces last month’s decision by the Fed to halt interest rate hikes given slower consumer spending and business investment, a weakened housing market, and increased concerns about the global outlook.
Unemployment has fallen close to a 50-year low, but rural areas have been slower to recover, notes the report, which was released last Friday ahead of Federal Reserve Chairman Jerome Powell’s planned testimony before the Senate and House committees this week. Read Fed Report.
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Rural Mainstreet Economic Index Falls for February
Nearly Two-Thirds of Banks Raised Farm Loan Collateral Requirements
The Creighton University Rural Mainstreet Index for February fell, but remained above growth neutral, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
The overall index sank to 50.2 from January's 51.5. This was the 11th time in the past 12 months the index has remained above growth neutral. The index ranges between 0 and 100 with 50.0 representing growth neutral.
"Our surveys over the last several months indicate the Rural Mainstreet economy is expanding outside of agriculture. However, the negative impacts of tariffs and low agriculture commodity prices continue to weaken the farm sector," said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University, Heider College of Business.
The February RMI for Illinois fell to 50.5 from 52.2 in January. The farmland-price index climbed to 42.3 from January's 38.3. The state's new-hiring index increased to 59.1 from last month's 58.5. Over the past 12 months, Illinois' Rural Mainstreet economy added jobs at a 1.3 percent pace, while urban areas in the state increased jobs by 1.2 percent. See Survey Report.
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Banking Profession Reports Strong Q4 2018
U.S. bank profits more than doubled to $59.1 billion in the fourth quarter of 2018, largely due to one-time charges from the 2017 tax law, according to the FDIC last week. Community banks also reported another positive quarter, with net income of $6.8 billion. For all of 2018, banks reported a 44 percent jump in net income to $236.7 billion, which included the benefits of a lower tax rate. Community banks reported a 29.4 percent increase in net income, to $26.1 billion, for 2018. Return on assets and return on equity increased markedly for Illinois banks compared to one year ago.
“While results this quarter were positive, the extended period of low interest rates and an increasingly competitive lending environment continue to lead some institutions to ‘reach for yield,’” FDIC Chairman Jelena McWilliams said in prepared remarks. “With the recent flattening of the yield curve, new challenges for institutions in lending and funding may emerge.” Read FDIC Release. See Illinois Banking Performance Summary.
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Community Bank Loan Growth Tops Other Entities: FDIC
Community bank loan growth has exceeded growth at noncommunity banks for six consecutive years, the FDIC said in its recently issued 2018 annual report. The report notes that banking consolidation has done little to diminish the role of community banks, with three-quarters of those that merged in 2017 and early 2018 being acquired by other community banks. On a merger-adjusted basis, community bank loan growth exceeded that at noncommunity banks during 2012-2017.
Further, community banks reported net gains in total offices, unlike noncommunity banks, the FDIC said. Community banks had more than 700 additional offices between June 2017 and June 2018, whereas noncommunity banks ended up with 384 fewer offices over the same time period.
The FDIC report also includes sections on the agency’s Community Bank Advisory Committee, de novo banks, regulatory relief efforts, and other agency initiatives. Read FDIC Report.
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ICBA and Farm Groups Urge No Cuts to Crop Insurance
ICBA joined a coalition of 60 farm, lending and insurance organizations urging the leadership of the House and Senate Budget Committees not to make budget cuts to the crop insurance program. The letter noted that, “Farmers and lawmakers agree that crop insurance is a linchpin of the farm safety net and is crucial to the economic and food security of rural America ... we urge you to oppose cuts to crop insurance during this year’s budget process.” A similar letter was sent to Secretary of Agriculture Sonny Perdue. Read Letter to Congress. Read Letter to USDA.
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Farmer Mac Reports Year-End Financials
Farmer Mac recently reported net interest income of roughly $175 million for 2018, an 11 percent increase from 2017. Gross business volume increased $5.2 billion, for a net growth of $717 million, while 90-day delinquencies in the Farm and Ranch portfolio declined to 0.37 percent from the 0.71 percent at year-end 2017. Read Farmer Mac Release.
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CBAI Announces After-Dinner Presentation at 2019 Spring Group Meetings
CBAI leaders and executive staff are visiting 11 locations on the Group Meeting tour this spring. Bankers from nearly 200 banks participate in these enjoyable and informative events each year. Consisting of an optional golf outing and a dinner meeting, Group Meetings also provide an excellent opportunity to get the latest information on key banking issues and catch up with friends and peers. (Note: The Group 1 & 2 Meeting will follow a different format).
This year’s after-dinner presentation is titled, “Hindsight – Insight – Foresight,” and will be conducted by an analyst from The BAKER GROUP, who provides an update on market conditions, Fed policy, regulatory hot-topics and industry trends for community banks. The discussion includes asset/liability management and investment strategy recommendations for 2019 and thoughts on liquidity risk management throughout the economic cycle. THE BAKER GROUP is celebrating their 40th Anniversary and has been a valued partner with CBAI since 1983. This highly-skilled organization provides hundreds of community banks the full array of institutional broker/dealer services, including asset/liability management, portfolio analysis and investment brokerage.
The opening portion of each Group Meeting focuses on critical legislative and association issues. CBAI President Kraig Lounsberry will provide updates on Association projects and community banking in general; and Senior Vice President of Governmental Relations Jerry Peck will offer an up-to-the-minute report of banking-related legislative activities. Look for registration information in early March, see the schedule of Group Meetings that follows, and make plans now to attend! See Group Meeting Schedule.
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Gallup Poll: Americans' Confidence in Their Finances Keeps Growing
Americans' optimism about their personal finances has climbed to levels not seen in more than 16 years, with 69% now saying they expect to be financially better off "at this time next year."
The 69% saying they expect to be better off is only two percentage points below the all-time high of 71%, recorded in March 1998 at a time when the nation's economic boom was producing strong economic growth combined with the lowest inflation and unemployment rates in decades. Read More.
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2019 CBAI Compensation Survey Now Available Online
Ensure your bank has the competitive edge in recruiting top talent! Complete the 2019 Compensation Survey quickly and easily by April 16, 2019, and receive free results. (Non-participants pay $300). Conducted by BalancedComp and sponsored by iZale Financial Services, the compensation survey is now available on CBAI’s website. Click Here to Read More and Complete the Survey.
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Community Banking Week in Illinois is Coming!
April 7 – 13, 2019, is the 29th Anniversary of Community Banking Week in Illinois. This year’s theme is “Sharing Your Dreams.” Invite the friends and neighbors of your community bank to help celebrate the independent spirit that is the hallmark of locally-run banks. For your FREE kit, contact Bobbi Watson at bobbiw@cbai.com today!
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Register Today for Early-Bird Pricing at CBAI’s 45th Annual Convention & Expo
Registration is now open for CBAI’s 45th Annual Convention & Expo, scheduled for September 19-21, 2019, at the Crowne Plaza, Springfield, IL. Expert speakers on the hottest community banking topics fill an education agenda featuring 20 break-out sessions. This year's Opening Breakfast Speaker is Craig Zablocki, whose success in using humor and a lighter approach has encouraged and inspired thousands of people internationally and in all 50 states. Zablocki has authored Improv 101, Unleash Your Creative Spirit and co-authored the book, Humor Me as well as authored many articles for major publications.
Also on the agenda are the Welcoming Reception with BancPac Live and Silent Auction, a jam-packed Exhibit Hall with more than 90 booths, the Annual Business Meeting Luncheon, and much more. The Closing General Session speaker is Ben Nemtin, New York Times bestselling author of What Do You Want to Do Before You Die? and star of the MTV show, “The Buried Life.”
Don't wait! Register today for early-bird pricing and receive a significant discount to attend CBAI's annual showcase event! You won't want to miss it! REGISTER NOW!
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Submit a Nomination for the 2019 Excellence & Innovation BKD Award
Nominations are now being accepted for the 2019 Excellence & Innovation BKD Award, presented by CBAI. This award recognizes CBAI member banks that go above and beyond to demonstrate their commitment to their customers, employees, shareholders and the community through innovative outreach programs. Since 1999, CBAI and BKD have honored financial institutions for their efforts to build a healthy future for themselves and their communities by developing an innovative way to serve customers or enhance corporate citizenship. Institutions may nominate themselves and do not need to be a BKD client to participate. The deadline to submit is Monday, June 3, 2019. The winner will be announced at CBAI’s 45th Annual Convention & Expo, September 19-12, 2019. The winning institution receives a $1,000 donation to the charity of its choice as well as an award symbolizing its innovation and excellence. See More Information. Download Entry Form.
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Ncontracts Combines with TRUPOINT Partners to Bring Comprehensive Suite of Risk Management Solutions to Financial Institutions
Ncontracts, the leading provider of active risk management solutions for financial institutions, has acquired TRUPOINT Partners, adding lending compliance solutions to the company’s integrated risk management platform.
The combination delivers a suite of comprehensive risk management software and services to a rapidly- expanding customer base that includes 1,250 financial institutions located in all 50 states. The transaction demonstrates Ncontracts’ ongoing investment in growth and innovation, and a commitment to comprehensive risk management for financial institutions in the United States. Read More.
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Arthur J. Gallagher & Co. Named One of 2019 World's Most Ethical Companies
For the eighth consecutive year, Arthur J. Gallagher & Co., a global insurance brokerage, risk management and consulting services firm, has been recognized by the Ethisphere Institute as one of the 2019 World's Most Ethical Companies. Community BancInsurance Services, a division of Arthur J. Gallagher & Co., is the exclusively endorsed insurance representative of CBAI/CBSC. Ethisphere is a global leader in defining and advancing the standards of ethical business practices.
Underscoring a solid commitment to leading ethical business standards and practices, Gallagher has been recognized annually since 2012 and is the only insurance broker to have received this honor. Recognition honors those companies who recognize their critical role to influence and drive positive change in the business community and societies around the world. Read More.
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Harland Clarke: Cracking the Code to Making Your Institution Relevant
With nearly every consumer interaction starting online, the success of your financial institution depends on consumers finding their way to your physical or digital “front door” with compelling, accurate, consistent and real-time information about your brand. Can your financial institution afford not to put its best foot forward online? Consumers are using digital and mobile technologies to find information, go somewhere, do something, or make a purchase. It’s the relationship between two environments, online and in person, that is causing financial institutions the most friction, while also presenting their biggest opportunity — especially locally.
Attend this webcast to learn how search — particularly, local-based and voice — drives real-world banking results; how to easily manage online knowledge for any size financial institution; how to keep the information correct, complete, always, no matter how/where consumers are searching; and how to do it all — without an agency! If you’re serious about making sure consumers get accurate information about your brand when and where they need it, then you need to actively manage your financial institution’s digital knowledge. Read More.
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CBIS: Carriers Vary in D&O Securities Protection
Bargain hunting Management Liability (D&O) coverage for your community bank can result in additional costs beyond premium. Community bank insureds need to be aware that carriers differ in approaches as to how they cover claims involving representations of stock valuations. Some D&O policies include coverage for securities claims in the core policy. Others expressly exclude it but sell coverage through separate insuring agreements. It is imperative for directors and officers to clarify how their policies treat securities exclusions before an issue arises. Read More from CBIS.
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2019 Branch Management Update Offered March 5 in Springfield
Does your retail team need to be energized, refocused and challenged in 2019? Do your branches operate to their potential in today's ever-changing environment? How are your retail branches maintaining revenue with regulatory changes? Is your retail banking team prepared for the multitude of questions, comments and concerns from customers? Do your branches operate efficiently ensuring operational and regulatory compliance? Is your retail banking team confident, focused, motivated and productive every day? Today's branch manager is faced with a multitude of “real world” challenges and opportunities. This fast-paced, results-oriented series focuses on the solutions to the questions above and other critical success elements for managing and leading a sales and service team. This workshop is packaged full of checklists, job aids, case studies, examples and “real world” situations. Leading this program is Dianne Barton, founder and president, of Performance Solutions, Inc.
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Preparing for Your Next IT Exam to be Held March 6 in Springfield
Want to be better prepared for your IT examination? How about learning more about the FFIEC interagency guidance and handbooks that will most definitely be a focus in your upcoming IT examination? In addition, the FDIC, FRB and state banking agencies (CSBS) have developed a new Information Technology Risk Examination (INTREX) that is now in use; and the OCC has updated their work program to include updated procedures for outsourced third party risk management (vendor management). While there are items unique to each agency, the overall concept and focus is basically the same. This information-packed seminar provides an overview of the current examination changes, revised FFIEC IT Examination Booklets and “hot spots,” and most common examination findings. This program is updated with the most current information and "hot spots" relevant at the time of the program. Susan Orr, founder and president of Susan Orr Consulting, Ltd., leads this session.
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The Network Security Headache Seminar Scheduled for March 7 in Springfield
Security breaches, identity theft and data leakage, regardless if caused by a cyber-criminal, malware or your well-intentioned employees, create headaches for network administrators, IT officers and information security officers. Along with protecting your customer's information, you also need to protect the institution's intellectual and proprietary information and ensure your reputation stays above reproach. Since approximately 90 percent of our information assets reside electronically on our networks, the need for securing that information has become imperative. But what do we mean by network security? What does it entail? Wikipedia defines it as “the provisions made in an underlying computer network infrastructure, policies adopted by the network administrator to protect the network and the network-accessible resources from unauthorized access, and consistent and continuous monitoring and measurement of its effectiveness (or lack) combined together.” While this seems to be a widely accepted definition, we also define it as information security and cyber security, or at least use the terms synonymously. Increasing threats, emerging technology, mobile workforce, portable devices, cloud computing and new regulations and guidance all contribute to the challenge of implementing network security/information and cyber security controls. This includes hardening the network, restricting access, logging and monitoring user activity, and implementing and enforcing controls and policies. This seminar covers some of the threats facing institutions today and explores some of the methods for securing your network and protecting your valuable information assets. Leading this program is Susan Orr, founder and president of Susan Orr Consulting, Ltd.
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