Annual GBA D.C. Legislative Visit Coming Up, Input Needed
Our annual trek to the nation's capital is just a few weeks away, May 4-6. We've got representatives from our Board of Directors, Public Affairs Committee and BankPAC Board going on the trip. Along with meetings with our elected representatives, we have briefings scheduled with the Federal Reserve, FDIC, OCC, ABA and Federal Housing Finance Agency. We'll be sharing with them our views about financial services regulatory reform, regulatory policies and a host of other issues. Please share with us any ideas about regulatory or legislative issues you want us to be sure and cover. Here's a link to a current list of critical issues facing Georgia banks so you’ll see what’s on our list so far. For more information, questions or issues for us to cover, contact Joe Brannen, 404.420.2026, or Elizabeth Chandler, 404.420.2027.

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State Legislative Update: Legislature Crawling Toward Adjournment
The General Assembly was in session three days this week and is scheduled to return April 20 with four legislative days remaining in the session. The budget is still the first priority on most every legislator’s mind, and the House passed their version this week. Lots of negotiation is left between the House, Senate and the Governor’s office and we understand they’re giving themselves until April 29 to wrap things up for the year. As the session ends, we're getting more and more announcements of legislators who won't be back next year, either because they're seeking another office or calling it quits. This week House Majority Leader Jerry Keen announced he was retiring after 10 years in the Legislature. Rep. Keen has been a good friend and hard working legislator and we wish him the best.

Mortgage Loan Fee to Rise. One bill that’s gotten lots of attention is HB 1055 that will raise fees on a variety of state services. One of those fees is the $6.50 mortgage loan fee that will rise to $10 under the bill that bounced from the Senate to the House and back to the Senate again this week.

Interchange Hearing Postponed. We were all set to testify against HB 1456 by Rep. John Lunsford at a hearing scheduled for Wednesday. The hearing got postponed to next Tuesday when the House calendar was extended by budget discussions. The bill is of significant concern to state-chartered banks that issue credit or debit cards or provide merchant services. The convenience stores and retail merchants associations are behind the bill. The drivers are large retailers like Home Depot, Wal-Mart and the grocery chains. They want to have all the benefits of accepting credit or debit cards, but it sure seems to us that they just don’t want to pay for them. They’re basically asking the General Assembly to decide what the card networks and their participating banks can charge, not the prices set by the free market.

Materialmen Liens. GBA’s SVP, Government Relations, Elizabeth Chandler, testified before a House Judiciary Subcommittee this week on SB 362 by Sen. Dan Weber. The bill would change the process of waiving release upon payment by those filing certain liens. She told the subcommittee the main deficiency with this change is how it allows a materialman (subcontractor) to sign an interim or final release to allow payment. Current law requires them to file an affidavit or file a lien claim within 60 days if they do not ultimately get payment. Under this bill, they can either file a lien claim or send an affidavit to the owner or contractor. If it is not filed but is only sent, the lender will not be able to pick it up on a title search until they file a suit over it. Our thanks to Subcommittee chairman Rep. Mike Jacobs who has developed language to address our concerns if the bill moves forward.

Bond Proceeds. SB 369 modifies how housing authority bond proceeds and local government bond proceeds may be invested. The bill passed the House this week with the language we had requested to restore the provisions that explicitly state which entities bond proceeds may be invested in for local governments and housing authorities, especially the Federal Home Loan Bank system. It’s now up to the Senate to agree to the final version.

Lien Priority. The Senate Special Judiciary Committee held a hearing Thursday on Rep. David Knight’s bill, HB 1147 that relates to aircraft liens. We are continuing to work with Rep. Knight to find a way to address our concerns about the lien superiority created under the bill. The bill also allows the lien claimant to only notify other lien holders once they release the aircraft, but not while they have possession.

Foreclosure. We’ve had some questions about where all the foreclosure related bills stand. The only bill that’s in play right now is SB 57 that deals primarily with mortgage brokers and attempts to eliminate their yield spread premium income. Those provisions of the bill don’t apply to our members because you have preemption from the Georgia Fair Lending Act. If we ever lost that preemption, many areas of the bill would be problematic. Legislators are aware of that and are treading cautiously. Related to foreclosures that would apply to our members, the House Judiciary Committee included some language in this bill setting up a process for defaulting homeowners to cure the default to forestall a foreclosure. The notice period is set to remain at 30 days. We’re waiting to see if the House chooses to take up the bill.

Check our State Issues web site frequently for updated information and access to more details about all the bills we're tracking. With questions about any of this legislation or to give feedback, contact GBA's Elizabeth Chandler at 404.420.2027.

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Important: Legal Lending Limits and Insider Loans
Some questions have come up that we need to pass along related to this year's adoption of GBA's priority legislation, HB 926, which allows state chartered banks to renew loans that would have otherwise exceeded the bank’s lending limit because of capital erosion. As a reminder, the recent amendment to this Georgia law does not affect how Regulation O rules governing renewals of loans to bank insiders are interpreted by bank regulatory agencies. John ReVeal at the Bryan Cave law firm, explains the issue in a recent post to the firm's BankBryanCave.com web site, and sums up the issue by stating, "The amendment to the Georgia statute to allow renewals of loans in excess of the bank’s lending limits can be relied on only for non-insider loans." See the full posting for all the details.

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In the News: New York Times Columnist Gets it Wrong
In a widely-circulated opinion story, Paul Krugman of the New York Times erroneously claimed the well documented troubles of Georgia's small banks are related to predatory and subprime lending. Yeah, we did a double take, too, when we read that. Georgia's small banks are not subprime lenders and have never been accused of making predatory loans. Unfortunately, the Atlanta Journal Constitution also printed the same editorial. We certainly won't let such claims go unanswered. We're working on a more comprehensive guest-column submission for the AJC and, what follows is the full text of the letter to the New York Times editor GBA President and CEO Joe Brannen submitted earlier this week. We're awaiting publication of a significantly shorter version they've edited for length. "We're glad Georgia is on Paul Krugman's mind, but sorry his mind is muddled (Georgia on My Mind, April 12). His statements about small banks being involved in subprime lending are wrong, and he owes those banks an apology. The Georgia bank closures mentioned have nothing to do with consumer protection or predatory lending. The troubled loans traditional community banks are dealing with are not subprime loans. These are commercial loans that hardworking men and women in real estate–builders, brick masons, plumbers, house painters, grading companies, Realtors, and others–can’t pay back because the economy tanked. Many small banks were simply meeting the demand for homes in an economy that allowed Georgia to grow by an average of 14,000 people per month for two decades. When the real estate market crashed, so did demand for their customers' products, killing their ability to repay their loans. And, don't forget, not one cent of insured deposits has been lost, a consumer protection of the FDIC fund paid for by the industry, not taxpayers. Mr. Krugman's op-ed, with incorrect “facts,” does little more than sensationalize the real human tragedy of the customers, bankers and their communities that have struggled mightily. Community banks reflect the communities they serve. When those communities prosper, so do their banks. We've had prosperous times in Georgia and we're confident we will again." With questions, contact Joe Brannen at 404.420.2026 or David Oliver, 404.420.2036.

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Key Program Extended to Fully Insure Certain Transaction Accounts
We were pleased the FDIC this week approved an interim rule to extend the Transaction Account Guarantee (TAG) program to Dec. 31, 2010. Without an additional extension, the program will end
June 30. Under the TAG program, customers of participating insured depository institutions are provided full coverage on transaction accounts. The interim rule gives the Board discretion to extend the program to the end of 2011, without additional rulemaking, if it determines that economic conditions warrant such an extension. "Chairman Bair acknowledged in her statement that letting this program expire could cause a significant deposit withdrawals at community banks, putting them at unnecessary risk of liquidity failures, and we certainly agree." said Joe Brannen, GBA president and CEO. A few key points from the announcement:

• The board may extend the program an additional year without additional rulemaking, but it would have to make such a determination by Oct. 29.

• Banks that wish to opt out must do so by April 30. No additional opt-out would be offered later even if the program is extended an additional year.

• The maximum interest rate for qualifying as a NOW account under the rule is 0.25 percent, down from 0.50 percent.

There will be a 30-day public comment period upon publication in the Federal Register. Our online readers will have access to the full interim rule and request for comment. With questions, contact Joe Brannen, 404.420.2026, or Elizabeth Chandler, 404.420.2027.

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FDIC Proposes New Assessment Formula
The FDIC Board this week proposed a rule to dramatically change the assessment formula used for the nation’s largest banks. The FDIC proposes to replace the current risk-based grid with a score-card system that provides banks with more than $10 billion in assets, and large, highly complex institutions, with a unique score that determines their insurance rate. The two-part score card would consist of a performance score and a loss-severity score. The FDIC’s proposal also would adjust the overall rate schedule for all banks to ensure the new system does not generate more revenue than the existing system. The new base rate would range from a low of 10 basis points to a high of 50 basis points, in contrast to the current base rate range from 12 basis points to 45 basis points (not including any adjustments for higher levels of capital or higher concentrations of secured liabilities). There is a 60-day comment period about the proposed rule, and we're interested in knowing what you think about it and how/if it will affect your bank. Contact Joe Brannen, 404.420.2026, or Elizabeth Chandler, 404.420.2027.

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Economic Activity Improves for Fed's Atlanta District
The Federal Reserve's quarterly Beige Book economic report is out this week with some encouraging news. The report says overall economic activity increased somewhat since the last report across all Federal Reserve Districts except St. Louis. For the Atlanta District, bankers continued to indicate that ample credit was available to qualified borrowers, and many noted that the volume of loan applications was low for households and small businesses. The report said other business contacts around the District described economic activity as improving in March and early April. Retailers saw an increase in traffic and sales and auto sales increased on a year-over-year basis. Residential real estate contacts indicated that both new and existing home sales improved and were above weak levels from a year earlier.

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Welcome New Associate Members
Congratulations to the following companies that were approved for associate membership at the April 13 GBA Board of Directors meeting:

• CoNetrix, Lubbock, TX, Jon Troutman, Sales Manager; Security, Compliance and IT consulting

• PDP Group, Inc., Hunt Valley, MD, John Pearson; Vehicle Title Administration

• Rubinger, Inc, Atlanta, David Rubinger, President; Communications and Public Relations

Associate Members have played an important part of the GBA throughout our 117 years. Today, more than 200 businesses enjoy increased visibility and expanded marketing opportunities and banks have more options for top-quality, cost-effective products and services. Company descriptions and contact information are available on our Web site, or contact GBA’s Kenyetta Parks at 404.420.2035 for more information.

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GBA Asks Members to Show Support for Those Serving in the National Guard and Reserve

The GBA affirmed its support of the National Guard and Reserve April 13, 2010, when the GBA Board approved and GBA President and CEO and former National Guardsman Joe Brannen signed a formal Statement of Support for the Guard and Reserve sponsored by Employer Support of the Guard and Reserve (ESGR). Brannen said, “Our Board is challenging all GBA Members to join with us in demonstrating your support by also signing a Statement of Support.” Guardsmen and Reservists train voluntarily to protect this country and their communities when needed, and they deserve support from every sector of this country. To request a Statement of Support, please contact GA ESGR Executive Director, Penelope Harbour at 678.569.5738 or visit www.esgr.mil. View Statement of Support…

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Annual Convention Sponsorships Available

Strategic Partners and Associate Members, take advantage of the opportunity to be recognized by the banks and bankers you serve by sponsoring an event at the 2010 Annual Convention. A few high-visibility sponsorships are still available. For an updated list of available sponsorships or with questions about the convention, please contact GBA’s Susie McGehee at 404.420.2010.

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Recognize Your 50-Year Bankers at Annual GBA Convention

GBA is proud to recognize Georgia bankers who have devoted 50 years or more of service to the banking industry. It's an annual tradition for these bankers to be honored at the Annual Convention in June even if they can't be there. We need your help, though, to properly recognize the bankers who have reached this important milestone. Please let us know who they are by sending a letter to GBA’s Susie McGehee with the following information:

• Banker’s name and current title

• Bank name

• His/her years of service

• Brief work history

• Photograph of banker nominated

• The name of the nominating banker.

This information must be received in the GBA office by Friday, May 14. With questions, contact Susie at 404.420.2010.

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Hot Topic Webinar!
Getting Ahead of the Headlines: How to Lead Your Bank through a Tough News Event – April 27
You know it is coming. Something is likely to make news that will challenge trust and confidence in your bank. How you plan for the inevitable headline BEFORE it makes news can make all the difference in the direct impact the headline has to your business and reputation. The good news is there are some simple steps you and your team can take to make sure your community knows your full story, ensure your story is accurate and minimize any negative impact on your business. Getting Ahead of the Headlines is a how-to session to help you make a plan, implement it and manage through tough news. David Rubinger of Rubinger Communications in Atlanta and Walt Moeling of Bryan Cave Powell Goldstein in Atlanta will be presenting along with other experts. Sign up now for the hot topic rate of only $99 for members! With questions, please contact GBA’s Courtenay Pope at 404.420.2015.

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NEW! Compliance Guidelines for Bank Boards: Is Your Board Prepared?
Training your board of directors on the regulatory impacts on your bank's operations is critical to protecting your bank – but not an easy task. Now, with the ABA's new Compliance Guidelines for Bank Boards, you can keep your Board well-informed and well-trained on the most recent regulations so that they can provide adequate oversight. And, they'll be prepared before your bank's next regulatory exam. This series of five individual modules is designed specifically for compliance officers to develop an effective bank director program. Packaged as individual PowerPoint presentations – it is training that is flexible and easy-to-use. All modules will be conveniently accessible via ABA BankPoint, a new state-of-the-industry learning management system (LMS). Plus, included is a self-paced Facilitator Skills for Board Training module to give you presentation tips and guidance. Modules Include:

• BSA/AML Training for the Board of Directors

• Insiders and Reg O

• Effective Compliance Program Management

• Gaining Compliance Support and Board Training Basics

• Preparing for the Exam – What You Need to Know – A Director's Perspective.

Each module includes a Leader’s Guide and Facilitator Skills for Board Training (a self-paced facilitation module) and is designed so that you can cover the topic within a 20–30 minute presentation (View all Module Descriptions). Each module is customizable for your bank's name and policies. Once you’ve purchased the product, you can download the entire module series, or access the modules as you need them—you have access to the materials for six months. The member rate for is $395. To register please contact GBA’s Alison Moreau at 404.420.2034 with questions.

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Bank Trainer Peer Group Meeting on May 6
Please join us for the GBA-U’s Bank Trainer Peer Group on, Thursday, May 6, at the University of Georgia Continuing Education Conference Center, Athens. Our first speaker will be June Somers, who will provide great information and some important tips on adult learning. We are excited to have two GBA Banking School Instructors on hand, Dr. James Verbrugge, Academic Director, University of Georgia, Department of Banking and Finance, and William S. Loyd, Director and Freshman Class Coordinator, Senior Vice President of Community Bank and Trust in Cornelia. Each will speak briefly during roundtable discussions, and we will end with a short question and answer session. Other topics for roundtables will include teller training, researching training topics, IRAs and training for Reg. CC. With questions, please contact GBA’s Alison Moreau at 404.420.2034.

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How to Deal with Culture Shock a Featured Topic at Leadership Conference
Has the external economic “climate” had an effect on the internal culture of your organization? Join Darron Burnette, Community/Regional Exec III with Sea Island Bank, Statesboro, and Debra Shine, President of D. Shine and Associates, Dahlonega, for a spirited discussion as they take a candid look at how conditions continue to affect workforce ethics, sales, service, operations, morale and productivity. Learn how creative leadership can and must leverage these challenges for good results. The Leadership Conference will be July 11-14 at Amelia Island Plantation in Amelia Island, FL. Be sure to take advantage of the $395 early-bird registration fee by registering before June 1. With questions about the Leadership Conference or Leadership GBA, please call GBA’s Susie McGehee at 404.420.2010 or Jennifer Stevens at 404.420.2024.

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Managing Workouts to Optimize Portfolio Value - April 22
This seminar is designed to provide participants with skills to support early recognition of problems, assessment of client viability, alternative courses of action for the lender and more. Distressed real estate will be extensively covered. The seminar will also cover workout issues and is intended to optimize the resolution of problem loans in the bank’s commercial portfolio. Participants will learn about handling individual loans as well as portfolio management. Dr. Ruediger Mueller CTP, President of Turnaround Consulting & Management International, Inc. in Suwanee, is the instructor alongside TCMI-Seibert Real Estate Solutions. The seminar is April 22 at Idle Hour Country Club in Macon. Registration is only $225 for members. With questions or to register, contact GBA’s Courtenay Pope at 404.420.2015.

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Time is running out! Sign up now for Legal Issues for New Account Documentation - April 27 & 28
Designed for new accounts representatives, back-up new account personnel, certificate-of-deposit staff, bookkeeping and accountholder service personnel, this one-day seminar will teach new account personnel proper account-opening procedures and compliance requirements. Topics to be covered include signature-card contracts, a CIP Compliance overview, TIN compliance, individual accounts and much more. Patrice M. Konarik of Sunwest Training Corp. in Kendalia, Texas, will be presenting. The seminar is April 27 in at the Holiday Inn Lanier Centre in Gainesville and April 28, at Idle Hour Country Club in Macon. The registration fee is $225. With questions, please contact GBA’s Courtenay Pope at 404.420.2015.

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Internal Audit Seminar - May 5
This one-day seminar will cover many of the basic concepts of community bank internal controls and internal audit techniques. Highlights include:

• Practical Enterprise Risk Management (ERM) and Risk Based Auditing

• Effectively Communicating Audit Results

• Primary Internal Controls/Audit Techniques

• Current Trends in Financial Institution Fraud.

This seminar will be May 5 at Idle Hour Country Club in Macon. Mike Thomas of Crowe Horwath will be the presenter. With questions, contact GBA’s Courtenay Pope at 404.420.2015.

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Advanced Consumer Lending Seminar - May 6
This advanced class will tackle the more complicated credits requiring an analysis of the customer’s cash position from tax returns. We will look at tax returns from those who are self-employed to help us learn their true cash position and their true income. Peter Faser of Sterne, Agee and Leach in Atlanta will be the presenter. This seminar will be May 6, at Idle Hour Country Club in Macon. With questions, please contact GBA’s Courtenay Pope at 404.420.2015.

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Bankruptcy, Garnishment, Liens & Levies Seminar - May 13

Recent legislation has created changes and modifications in Federal Bankruptcy Law. This seminar will address these changes and others in the area of liens, levies, and garnishments. Gary Moser of Moser Rose and Cox in Valdosta will be the presenter. This seminar will be May 13 at the Idle Hour Country Club in Macon. With questions, please contact GBA’s Courtenay Pope at 404.420.2015.

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Managing Funding, Liquidity and Capital; Analyzing Financial Statements Highlight May AIB Online Instructor-Led Courses
Here are the instructor-led AIB online classes offered the week of May 10. These courses are instructor-facilitated with weekly assignments and can be taken from your home or your office. All you need is a computer, printer and Internet access. (Classes with an asterisk * require Microsoft Excel Software.) Please register two weeks in advance to secure a seat in the class.

• Analyzing Financial Statements*, 16 weeks, $485

• Financial Accounting*, 16 weeks, $485

• General Accounting*, 16 weeks, $515

• Managing Funding, Liquidity, and Capital, 6 weeks, $595

• Principles of Banking Accelerated, 10 weeks, $335

• Problem Loan Workouts, 6 weeks, $315

There is still availability in the following AIB Online classes beginning May 3. Please register as soon as possible to secure a seat in the class.

• Law & Banking: Applications, 16 weeks, $455

• Money & Banking, 16 weeks, $405

• Principles of Banking, 16 weeks, $405

• Supervisor Certificate, 16 weeks, $695

Please see the AIB Online Course Schedule for a complete listing or call GBA’s Alison Moreau at 404.420.2034 with questions.

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Register for GBA Webinars Today
GBA will offer the following webinars the week of April 19:

• Banking Fundamentals, Part 1: Becoming a Better Banker - April 19

• Flood Insurance: Compliance Problems that Just Don't Seem to Go Away - April 20

• Compliance Perspectives: A Monthly Update - April 20

• Robbery Prevention Response & Aftermath, Part 1: Robbery Training for Managers & Executives - April 21

• Complying with RESPA's Section 8 Rules - April 22

All webinars are live and allow time for questions and answers. The $250 registration fee gives you access to one web site “seat,” one telephone site license and all handout materials. If you can’t attend the webinar, you may buy the audio CD, handout materials and a password to see the information online. With questions, please call GBA’s Courtenay Pope at 404.420.2015.

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Take a Fresh Look at your Overdraft Practices
The recent amendments to Reg. E that go into effect July 1 have created a renewed focus on overdraft practices. Whether you have a formal overdraft privilege program, still handle daily overdrafts on a case-by-case basis or something in between, the changes to Reg. E will affect your bottom line and the service your customers receive. Even banks that, as a practice, do not pay debit card transactions into overdraft status could be significantly affected by the new rules. It is extremely important to address the pending changes to overdraft practices. Strunk & Associates, a GBA Strategic Partner, has been providing its clients with the most robust and compliant discretionary overdraft privilege program in the country for the past 17 years. In fact, most of the required changes under Reg. E have been Strunk-recommended “best practices” for years. Strunk's regulatory team and outside legal counsel have been working on program modifications that will enable financial institutions to develop and implement practical and manageable processes that meet all new compliance requirements. Strunk would be happy to take a fresh look at your current overdraft program or practices to provide a complete compliance and best-practices review. For a detailed analysis or more information, please contact Bob Shifflett, Vice President, Strunk & Associates LP, at 800.728.3116.

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Provide Your Company with Flood Zone Relief for Challenging Times
During the best of times, lenders seek reliable, easy-to-use services offered at a fair price. In a turbulent financial climate, these requests quickly turn into critical needs. Federal Flood Certification Corp. calms the Flood Zone Determination process through their cost-effective approach that protects lenders, expedites the closing process, and helps the bottom line. Federal Flood offers:

• Easy Access to fully transferable Life of Loan certificates

• Free Letter of Map Amendment and Letter of Map Revision

• Free Home Mortgage Disclosure Act data

• Free rush service

• Customized billing and reporting

• No setup charges or monthly minimums.

Federal Flood maintains an experienced staff and a commitment to the latest in technology, providing readily available expertise and support through a variety of platforms. For more information, please call Federal Flood’s Ed Mclin at 214.441.5903 or GBA’s Levi Crabtree at 404.420.2022.

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Find a Job, Post a Job with GBA Job Bank
The Georgia Bankers Association offers free job posting resources for our member banks. These listings can be viewed online or through our bi-weekly publication included in the GBA Bulletin. Resume postings are also available. For more information, please call Kenyetta Parks at 404.420.2035.

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Read All About It -- Send Us Your News
Please remember to include the Georgia Bankers Association on the list of recipients for announcements about promotions, new employees and special recognition your bank has received. We want to share your news with your colleagues across the state. Please forward your announcements and photos to GBA's Lydia Thomas.

Newsmakers

Clayton - United Community Bank
Jack Keener has been named President and Chief Executive Officer.

Ringgold - Northwest Georgia Bank
Sherri Herman has been promoted to Assistant Vice President and Branch Manager at the North Shore branch, Jeff Weeks to Assistant Vice President at the Fort Oglethorpe branch, and Jennifer Ramsey to Assistant Manager at the Hamilton Place branch.
 

Keener

Herman

Weeks

Ramsey