Independent Community Bankers of America

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Independent Community Bankers of America
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Who Is the ICBA

• Nearly 5,000 members
• Members are locally operated banking institutions
  that know their communities and customers
  directly
• Provide individualized customer service
• Range in assets size from 2 million to 7
  billion
• 17,000 locations, more than 230,000 employees
• Represent rural, suburban and urban marketplaces
• Many more than 100 years old, yet some newly
  formed

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About ICBA

• ICBA, which is celebrating its 75th anniversary
  this year, is the only national trade association
  that speaks solely for community banksICBA is
  unique that way.
• ICBAs democratic structure is unique among the
  national banking associations. Each member has an
  equal voice in shaping the associations policies
  and programs. No one bank within our membership,
  simply by their sheer size or large dues
  payments, can control any of our policies.

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About ICBA

• ICBAs stated core principles set it apart
• We support the dual banking system and a fair and
  competitive marketplace where all institutions
  are on equal ground.
• We oppose mixing banking and commerce and believe
  in a balanced financial system that does not
  favor any one segment of the financial services
  sector over another. In that regard, we adamantly
  oppose excessive concentration of our nations
  economic and financial resources.

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ICBA Locations

• Headquarters
• Washington, DC
• Subsidiary Headquarters
• Arlington, VA
• Membership, Education, HR
• Sauk Centre, MN
• TCM Bank
• Tampa, FL
• Securities, Financial Services
• Memphis, TN

• Regional Offices
• Boston, MA
• Atlanta, GA
• Harrisburg, PA
• Des Moines, IA
• Dallas, TX
• Colorado Springs, CO
• Los Angeles, CA

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ICBAs Mission

• The ICBA is a strong and dynamic trade
  association working to provide its members a
  competitive edge by effectively aggregating
  political, economic and marketing power. The ICBA
  is dedicated exclusively to enhancing the
  franchise value of the nation's community banks
  for the benefit of their customers and the
  communities they serve.

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Distribution of U.S. Banks

• 45 less than 100 million
• 48 between 100 million and 1 billion
• 93 of U.S. banks less than 1 billion in assets!

Source FDIC Quarterly Banking Profile, 2004
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Bank Membership

• ICBA is the only national trade association
  dedicated exclusively to serving the interests of
  community banks. From being an advocate in
  Washington for the issues that affect community
  banks, to providing profit-boosting and
  cost-effective products, to offering the
  education and resources community banks need to
  stay competitive in a changing market, ICBA is
  serving the needs of community banks.

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ICBA Member Benefits

• Advocacy
• Profitability Solutions
• Resources

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ICBA Member Benefits Advocacy

• Lending and Funding
• Agriculture
• Payments and Technology
• Tax Policy
• Small Business Development
• Accounting Standards

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ICBA Advocacy

• ICBA Fighting for Competitive Equity with Credit
  Unions. 
• ICBA is leading the fight to stop the expansion
  of credit union powers, especially business
  lending powers, and to curb the growth of their
  charters in contravention of the rule of common
  bond.
• Raising the CRA Threshold for Streamlined Exams. 
   
• ICBA is leading a broad-based coalition to
  increase the asset size limit of banks eligible
  for the streamlined small-bank CRA exam and make
  the program more flexible and efficient. 

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ICBA Advocacy

• Maintaining the Separation of Banking and
  Commerce. 
• ICBA has led the fight to close loopholes, such
  as the ILC loophole, to protect the integrity of
  our nations financial system. This effort is
  aimed at keeping Wal-Mart and other commercial
  conglomerates out of the banking industry.
• Advocating Deposit Insurance Reform. 
• ICBA has been in the forefront of the campaign
  for comprehensive Federal deposit insurance
  reform including automatic inflation adjustments
  of coverage levels. Legislation passed this
  spring in the House 413-10.

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ICBA Advocacy

• Preserving the Integrity of the Housing GSEs.   
• ICBA is spearheading efforts in Congress to
  strengthen the regulatory structure of the
  housing GSEs Fannie Mae, Freddie Mac, and the
  Federal Home Loan Banks while preserving the
  unique nature of each GSE and keeping them out of
  the reach of political influence. 
• The Federal Home Loan Banks are especially
  important to community banks as a vital funding
  source, and ICBA is fighting to protect its
  ownership, operational and capital structure, and
  mission.
• Supporting Bankruptcy Reform.   
• ICBA has been instrumental in promoting
  legislation to reform the bankruptcy code to curb
  spiraling abuses in the program that are costly
  to both financial institutions and consumers. 
  Working with the Bankruptcy Coalition and key
  congressional leaders, ICBA helped craft a
  meaningful reform package that has won
  overwhelming bipartisan approval in Congress. 
  Even though unrelated provisions have stalled
  this bill thus far, ICBA will continue to push
  for adoption of a meaningful reform package.

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ICBA Advocacy

• Combating Terrorist Financing and Money
  Laundering.   
• ICBA supports federal government efforts to
  prevent financial institutions from being used to
  finance terrorism or to launder the proceeds of
  criminal activities.  However, this effort must
  not be a one-sided effort by banks law
  enforcement and the federal government must
  provide information so that banks are reporting
  truly suspicious activities and not routine
  transactions. It is also important to balance the
  needs of law enforcement with customer privacy. 
  ICBA will continue working closely with Treasury,
  FinCEN and federal banking regulators on this
  important homeland security issue. 
• Reducing the Scope and Costs of Sarbanes-Oxley. 
    
• ICBA continues to pursue relief for publicly held
  banks and bank holding companies from the
  regulatory burden imposed by the Sarbanes-Oxley
  Act and, in particular, from the higher auditing
  costs resulting from the internal control
  attestation requirements of Section 404 of that
  Act.  We also are concerned that regulators could
  apply best practices from this Act to closely
  held companies.  Working with key legislators,
  regulators and the stock exchanges, we will work
  to protect community banks of all sizes from
  excessive and unnecessary regulatory burden.

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ICBA Advocacy

• Taking the Lead on Agricultural issues.   
• ICBA consistently provides first class leadership
  on key agricultural issues important to community
  banks and their farm customers.  ICBA has led the
  way in opposing regulatory and legislative
  expansion of the Farm Credit System and is
  seeking access to the System for community
  banks.  We have lobbied to keep funding intact
  for the 2002 Farm Bill programs and the crop
  insurance program. We continue to push for
  important enhancements in USDA programs to
  stimulate greater rural economic development and
  we actively pursue ways to make USDA guaranteed
  farm loan programs more effective.
• The ICBA-backed Military Personnel Financial
  Services Protection Act (H.R. 458) which passed
  by a vote of 405-2.
• This legislation would ban the sale of
  contractual mutual funds, an obscure product that
  disappeared from the civilian market more than
  two decades ago.

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ICBA Advocacy

• Communities First Act
• H.R. 2061, S. 1568
• Purpose An Act to enhance the ability of
  community banks to foster economic growth and
  serve their communities.
• Short Title This Act may be cited the
  "Community Banks Serving Their Communities
  First Act" or the "Communities First Act".

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Title I Targeted Regulatory Relief

• Home Mortgage Disclosure Act
• Increase exemption levels to include banks with
  assets of 250 million and adjust according to
  procedures specified in HMDA.
• Call Reports
• Permit highly rated, well-capitalized banks with
  assets of 1 billion or less to file a short
  form in two quarters of each year.
• Sarbanes-Oxley Act
• Exempt banks with assets up to 1 billion from
  internal control attestation and audit
  requirement.
• Depository Institution Management Interlocks
• Exempt banks of 500 million or less in assets.

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Title I Targeted Regulatory Relief

• Bank Holding Companies (Federal Reserve
  Regulation Y)
• Direct the Federal Reserve to make bank holding
  companies with assets up to 1 billion eligible
  for the Small Bank Holding Company Policy
  Statement on Assessment of Financial and
  Managerial Factors.
• Increase the debt-to-equity ratio to 31 for
  banks in holding companies with assets up to 1
  billion.
• SIPC Coverage
• Provide banks with assets up to 1 billion the
  same protection afforded other investors and
  other depository institutions for their brokerage
  account assets when a broker dealer fails.
• Examinations
• Give federal regulators flexibility to determine
  the examination interval for well-rated,
  well-capitalized banks with up to 1 billion in
  assets.

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Title I Targeted Regulatory Relief

• Loans to Executive Officers
• Provide a two-times-capital aggregate limit for
  banks with assets up to 1 billion.
• Additional Relief by Agencies
• The appropriate agencies shall tailor any new
  reporting, examination, or other requirements to
  take into account their effects on community
  banks.
• Community Reinvestment Act
• Increase CRA examination intervals for banks up
  to 1 billion.
• Annual Adjustment
• Unless otherwise specifically provided, the asset
  levels specified in this title shall be annually
  adjusted by the percentage of increase in total
  assets held by institutions insured by the FDIC.

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Title II Additional Regulatory Relief for Banks
Customers

• Truth in Lending (Federal Reserve Regulation Z)
• Direct the Federal Reserve to prescribe
  regulations authorizing customers who borrow from
  Federally insured depository institutions to
  waive the three-day right of rescission.
• Exempt a refinancing with a new lender from the
  three-day right of rescission where no new money
  is advanced.
• Exempt home equity lines of credit from the
  three-day right of rescission.
• Gramm-Leach-Bliley Act Privacy Notices
• Allow a bank that does not share customer
  information, other than as permitted by one of
  the exceptions, the option to forego delivery of
  the annual notice unless there has been a change
  in the banks privacy policy.

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Title II Additional Regulatory Relief for Banks
Customers

• Home Mortgage Disclosure Act (HMDA) (Federal
  Reserve Regulation C)
• Exempt banks with fewer than 100 reportable loan
  applications per year per category.
• Allow the Federal Reserve to develop a definition
  of Metropolitan Statistical Area for HMDA
  purposes, instead of using Census Bureau
  definition created for entirely different
  reasons, to avoid covering certain rural banks.
• Direct the Federal Reserve to streamline HMDA
  data collection and reporting and eliminate
  requirements that are not cost-justified.  
• Call Report Streamlining
• Requires the FDIC, in conjunction with the other
  Federal banking agencies, to review Call Report
  requirements every five years to determine if
  some of the information and schedules can be
  eliminated.

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Title II Additional Regulatory Relief for Banks
Customers

• Loans to Executive Officers
• Increase the special regulatory lending limit on
  loans to executive officers for loans other than
  those for housing, education, and certain secured
  loans to 250,000. (Note Executive officers
  would remain subject to the same limit on
  directors and principal shareholders, the
  loans-to-one-borrower limit.)

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Title III Tax Relief for Bank Depositors, Rural
Banks, Municipalities, and Banks Organized as
Limited Liability Companies

• Defer Recognition of Income on Long-Term Deposits
  and Reduce Rate
• Defer recognition of interest income on long-term
  CDs (CDs with a term of 12 months or more) until
  maturity for individual taxpayers.
• Reduce top tax rate applied to interest income on
  long-term CDs (CDs with a term of 12 months or
  more) to equal the long-term capital gains rate
  for assets held more than 12 months.
• Relief for Agricultural and Small-town Mortgage
  Lenders
• Exempt from taxation income earned on
• agricultural real estate loans, and
• mortgage loans in communities of 2,500 or less
  population.

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Title III Tax Relief for Bank Depositors, Rural
Banks, Municipalities, and Banks Organized as
Limited Liability Companies

• Increase Muni-Bond Bank Qualified Obligation
  Limits
• Increase the 10 million expected annual issuance
  limitation to 30 million for tax-exempt
  obligations and index future limitation levels.
• Provide Limited Liability Company Tax Treatment
  to FDIC-Insured LLCs
• Direct the Treasury to amend regulation
  301.7701-2(b)(5) to provide limited liability
  corporation tax treatment to banks operating as
  LLCs.
• Allow existing privately-held banks to convert
  their state or federal charters to an LLC charter
  in a tax-free transaction.1 Create an LLC-level
  tax structure similar to the corporate built-in
  gains tax provisions under IRC 1374 imposed
  upon C Corporations that convert to S Corporation
  status.
• 1Publicly traded partnerships are treated as
  corporations per IRC 7704(a).

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Title IV Tax Relief for Community Banks and
Holding Companies

• Tax Credit for Community Banking
• Allow a 20 tax credit for banks and bank holding
  companies up to 5 billion in assets (community
  banks). The 20 tax credit would be applied to
  offset the tax liability of community-based C
  corporation banks. The C corporation community
  bank tax credit maximum is not to exceed
  250,000.00. S corporation banks would be able
  to exclude 20 of distributable income not to
  exceed 1,250,000.00 of income.
• Repeal Alternative Minimum Tax for Community
  Banks
• Replace the 5 million average annual gross
  receipts threshold for banks with a rule that
  applies the AMT only to banks or bank holding
  companies over 5 billion in assets. For
  purposes of this provision, a bank is any
  institution that satisfies the definition of a
  bank under IRC 581 or is a bank or bank holding
  company that owns a bank.

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Title IV Tax Relief for Community Banks and
Holding Companies

• Tax Credit for Community Banking in Distressed
  Areas
• Create a 50 tax credit for qualified community
  banks and bank holding companies (community
  banks) operating in distressed communities
  and/or designated enterprise or empowerment
  zones, or qualifying New Market Tax Credit Census
  tracts. The 50 tax credit would be applied to
  offset the tax liability of community-based C
  corporation banks. The C corporation community
  bank tax credit maximum is not to exceed
  500,000.00. S corporation banks would be able
  to exclude 50 of income not to exceed
  2,500,000.00 of income. The term distressed
  community' has the meaning given the term
  qualified distressed community' by section 233
  of the Bank Enterprise Act of 1991 (12 U.S.C.
  1834a(b)).'.

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Co-sponsors of HR 2061
Co-sponsors of H.R. 2061 (as of 7/27/05) Rep. Jim
Ryun (R-KS) Rep. Robert Aderholt (R-AL) Rep.
Rodney Alexander (R-LA) Rep. Bob Beauprez (R-CO)
Rep. Marion Berry (D-AR) Rep. Michael Bilirakis
((R-FL) Rep. Rob Bishop (R-UT) Rep. Marsha
Blackburn (R-TN) Rep. Henry Bonilla (R-TX) Rep.
Jo Bonner (R-AL) Rep. Dan Boren (D-OK) Rep.
Ginny Brown-Waite (R-FL) Rep. Dan Burton
(R-IN) Rep. Charles W. Boustany (R-LA) Rep.
Chris Cannon (R-UT) Rep. Dennis Cardoza (D-CA)
Rep. Henry Cuellar (D-TX)
Rep. Tom Latham (R-IA) Rep. Connie Mack (R-FL)
Rep. Kenny Marchant (R-TX) Rep. Don Manzullo
(R-IL) Rep. Michael McCaul (R-TX) Rep. Patrick
McHenry (R-NC) Rep. Cathy McMorris (R-WA) Rep.
Jerry Moran (R-KS) Rep. Marilyn Musgrave
(R-CO) Rep. Randy Neugebauer (R-TX) Rep. Tom
Osborne (R-NE) Rep. Ron Paul (R-TX) Rep. Stevan
Pearce (R-NM) Rep. Mike Pence (R-IN) Rep. Collin
Peterson (D-MN) Rep. Dennis Rehberg (R-MT) Rep.
Rick Renzi (R-AZ) Rep. Harold Rogers (R-KY) Rep.
Michael Rogers (R-AL) Rep. Loretta Sanchez (D-CA)
Rep. Adam Schiff (D-CA)
Rep. Mike Conaway (R-TX) Rep. Jo Ann Davis
(R-VA) Rep. Lincoln Davis (D-TN) Rep. Nathan
Deal (R-GA) Rep. Thelma Drake (R-VA) Rep. Chet
Edwards (D-TX) Rep. Philip S. English (R-PA)
Rep. Terry Everett (R-AL) Rep. Tom Feeney (R-FL)
Rep. Harold Ford (D-TN) Rep. Paul Gillmor (R-OH)
Rep. Bart Gordon (D-TN) Rep. Virgil Goode (R-VA)
Rep. Katherine Harris (R-FL) Rep. Melissa Hart
(R-PA) Rep. Stephanie Herseth (D-SD) Rep. Peter
Hoekstra (R-MI) Rep. Tim Holden (D-PA) Rep. John
Hostettler (R-IN) Rep. Walter Jones (R-NC) Rep.
Ray LaHood (R-IL)
Rep. John Shimkus (R-IL) Rep. Mike Sodrel
(R-IN) Rep. Lee Terry (R-NE) Rep. Mac Thornberry
(R-TX) Rep. Todd Tiahrt (R-KS) Rep. Patrick
Tiberi (R-OH)
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ICBA Member Benefits Profitability Solutions

• ICBA Services Network
• Bancard
• Mortgage
• Financial Services
• Securities
• Reinsurance
• ICBAs Preferred Service Providers
• Designation exclusive to 18 providers

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Preferred Services Providers
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Member Resources

• Publications
• Independent Banker Magazine
• Washington Weekly Report
• ICBA Information Center
• Educational Seminars and Products
• National Convention and Techworld
• Marketing and Public Relations Materials
• Affiliated State Associations Outreach

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Member Resources

• Specialty Groups
• Bank Director Program
• Corporate Associate Membership
• ICBA Web Site (www.icba.org)
• Member bank directory
• Online newsletter, press releases, and
  legislative updates
• Technology news
• Helpful links
• Tools to email your congressional representative
  and local media

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Mid Atlantic Regional Office2317 Forest Hills
DriveHarrisburg, PA 17112Tel [phone]Fax
717-541-0464e-mail john.mcnair_at_icba.org
ICBA Contact Information
HeadquartersOne Thomas Circle NWSuite
400Washington, DC 20005-5802Tel
800-422-8439Fax [phone]e-mail
info_at_icba.org
Sauk Centre Office518 Lincoln RoadP.O. Box
267Sauk Centre, MN 56378Tel [phone]Fax
320-352-5766e-mail info_at_icba.org
Western Regional Office500 Newport Center Drive,
Suite 960Newport Beach, CA 92660Tel
949-644-2606Fax [phone]e-mail
icbawest_at_icba.org
Rocky Mountain Central Plains Office1057 Argosy
CourtColorado Springs, CO 80921Tel
719-487-7601Fax [phone]email
scott.hall_at_icba.org
Midwest Regional Office1603 22nd Street
102West Des Moines, IA 50266Tel
515-226-3326Fax [phone]e-mail
david.hibbs_at_icba.org
Northeast Regional Office120 Main
StreetLynnfield, MA 01940Tel
781-334-2197e-mail mailtojpettazzoni_at_aol.com
Southeast Regional Office4209 Kinsmon
WayMarietta, GA 30062Tel[phone]e-mail
david.moore_at_icba.org
Southwest Regional Office9637 Shadydale
LaneDallas, Texas 75238Tel [phone]e-mail
chip.lynch_at_icba.org