Print Issue: 2017 - December Edition

CBAI bolsters policy independence, urges reg relief effort

With a vote of the membership, the Community Bankers Association of Illinois strengthened its resolve against a merger with another banking association. The vote took place during CBAI’s annual convention at the Crowne Plaza hotel in Springfield, Ill., Sept. 14-16. The CBAI unanimously approved an amendment to its constitution making it significantly more difficult to change association policy on bank structure or to merge with another association.

Previously, only 60 percent of the member banks in attendance needed to approve any change, but the amendment raised that figure to 80 percent. Proposed changes to matters of policy consistent with CBAI precedents still need only 60 percent approval.

“It elevates the threshold on issues of that magnitude,” outgoing CBAI President Bob Wingert said, leading the final convention of his 43-year career. “In other words, there has to be a meaningful consensus to take that course of action.” [Continue]

Wells Fargo volunteers, donates to keep kids warm

Volunteers from Wells Fargo & Co., delivered more than 50,000 coats to students in 11 schools across Chicago. This is the eighth consecutive year the bank has participated in the donation program. Wells Fargo’s Coats for Kids campaign raised nearly $180,000 from employee donations, company contributions, and private matching grants to buy 10,000 jackets. Wells Fargo employees in Chicago have raised nearly $1 million since the local program launched in 2009. [Continue]

TCF Bank helps kids make a wish

TCF National Bank, Wayzata, Minn., has raised more than $60,000 in 2017 for Make-A-Wish Minnesota to help make wishes a reality for children with critical illnesses. Donations were accepted at all 90 TCF Bank branches in Minnesota and collected during team member fundraising events. [Continue]

Cordray resignation opens opportunity at the CFPB

The resignation of Richard Cordray as director of the Consumer Financial Protection Bureau presents an opportunity. I hope the new director of the bureau focuses on under-regulated sectors of the financial services industry, leaving banks to the regulatory oversight of the Fed, OCC, FDIC and/or state regulators. [Continue]

Patrick Derpinghaus of Associated Banc-Corp to retire

Patrick Derpinghaus, executive vice president and chief audit executive of Associated Banc-Corp, Green Bay, Wis., announced he plans to retire March 1, 2018. Derpinghaus, who joined Associated in 2011, had a successful career in various audit, accounting and administrative roles within the financial services industry spanning four decades. He also played an integral role in leading the Associated Veterans Network. [Continue]

Will next generation move banks beyond challenges?

The focus in the banking industry during 2017 continued to be on performance. The Fed began raising the fed funds rate in late 2015 and again in late 2016. All expectations were for rate increases to resume in 2017, which they did in January, March and July up to a range of 1.00 to 1.25 percent, where it has remained. Even with these increases, margins remain compressed and borrowers are challenged by persistent concerns, particularly in the agricultural economy. Ag output pricing remains low and current supplies high. Therefore, as producers try to wait for price increases to sell, returns to producers resulting from improved yields on new production are not expected to materially increase overall returns and may have the effect of increasing downward pressure on prices, thus reducing returns. To increase prices more, avenues for sales need to open up. Trade restrictions can be counterproductive to development of market expansion, keeping domestic supplies to low valuations. This is putting pressure on land valuations adding further complications for banks operating in the agricultural communities. [Continue]

Community Development Bank completes branch purchase

Community Development Bank, FSB, of Ogema, Minn., has completed its purchase of the First American Bank, N.A., branch in St. Michael, Minn. The deal closed on Oct. 20. First American, based in Hudson, Wis., acquired Great Northern Bank in St. Michael in 2014 and converted it into a branch. Great Northern was a 1999 de novo. First American Bank was formed in 2007. [Continue]