Legislature Adjourns/Special Session to be Called
The Georgia General Assembly spent most of this week on budget issues and a compromise was reached on the 2008 fiscal year budget.  However, due to a gubernatorial veto of the 2007 supplemental budget, the General Assembly is expected to be called into special session to complete the work on that budget.  Final action was taken this week on the Department of Banking and Finance's annual housekeeping bill clearing the bill for the Governor's signature.  "Completing work on the housekeeping bill concludes action on all the bills GBA was proactively supporting this session," said GBA President Joe Brannen.  "We asked the legislature to repeal the tax increase from 2005, to pass the bill allowing Federal Home Loan Bank Letters of Credit to be used as collateral for government deposits, and to pass the housekeeping bill.  We appreciate the Legislature favorably considering all our requests including amending a number of other bills.  This was a good year for the banking industry, and I hope each of our members will pass along your personal thanks to your own legislator," Joe concluded.  As this edition of the GBA e-Bulletin went to press, the Legislature was still scheduled to adjourn for the year on Friday.  We will be publishing a comprehensive Session wrap-edition of the GBA Legislative Update and will include a link to that in a future e-Bulletin.  With questions about any issues we have been following, please contact GBA's Elizabeth Chandler at (404) 420-2027.

Late Breaking News for our e-Bulletin Readers
Some of our e-Bulletin readers also receive the paper copy.  An issue has arisen since we sent the paper Bulletin to the printer that is of significant interest to our members.  Many of you have been following the American Institute of CPAs (AICPA) and Securities and Exchange Commission (SEC) position on what is referred to as FAS 159, The Fair Value Option.  FAS 159 relates to transition accounting and some balance sheet strategies.  We understand there have been varying interpretations among accounting firms and investment houses on how banks could or should take advantage of an opportunity to sell bonds and running any losses through retained earnings instead of against current income.  The April 30 deadline applying to all companies choosing early adoption of the standard has also caused some confusion.  The AICPA released a statement this week that says "If an entity proposes to adopt the fair value option merely to achieve an accounting result that is contrary to the principles and objectives in FAS 159 (i.e., recording unrealized losses directly in retained earnings coupled with little or no intent to apply the fair value option as a measurement attribute with respect to these classes of financial assets and liabilities on a go forward basis), the auditor should reach a conclusion that the entity's proposed accounting departs from generally accepted accounting principles."  There are many legitimate reasons for a bank to participate under the early adoption procedures; however this statement from AICPA brings some of those procedures into question.  If your bank is among the early adopters, we recommend you consult with your accountant to determine any impact on your bank as a result of this new announcement.  This announcement is significant because it is the first information from the SEC on how it would view certain early adoption restructuring strategies.  Please click here to read the AICPA release.

Supreme Court Rules on Preemption
In a case that had the potential for a huge new compliance burden on nationally chartered banks, the U.S. Supreme court ruled, in a 5-3 divided opinion, in favor of the banking industry in the Wachovia v. Watters case.  “We have reported GBA’s support of the bank’s position in previous Bulletins and applaud the Court’s decision,” said GBA Chairman Bobby Carmichael, President and CEO of Commercial Bank & Trust in LaGrange.  “The case ensures the ability of federal banking regulators to supervise banking activities is not diminished when individual state legislatures pass laws trying to regulate the bank or the bank’s operating subsidiaries,” Bobby concluded.  On behalf of the majority, Justice Ruth Bader Ginsburg wrote, “In accord with the courts of appeals that have addressed the issue, we hold that Wachovia’s mortgage business, whether conducted by the bank itself or through the bank’s operating subsidiary, is subject to OCC’s superintendence, and not to the licensing, reporting and visitorial regimes of the several states in which the subsidiary operates.”  GBA joined with the American Bankers Association in filing an amicus curiae with the court.  With questions, please contact GBA’s Joe Brannen at (404) 420-2026.

Credit Unions Trying Expansionary Bill Again
Legislation has been introduced in Congress to expand the commercial lending authority of Credit Unions while reducing their capital requirements.  The Credit Union Regulatory Improvements Act (CURIA), H.R. 1537, was introduced earlier this month and GBA is opposed to its enactment.  We have requested the members within the Georgia congressional delegation not to cosponsor this bill.  However, Rep. Sanford Bishop (D-Columbus) just signed on to the bill this week.  [Note:  He was one of the first members from the delegation to support us by cosponsoring the ILC bill to keep Home Depot and others out of banking, so he is supportive of the industry on other issues.]  Over the past two years, we have conducted an extensive grassroots campaign by producing a DVD for our members and with a letter-writing initiative in conjunction with the ABA through our website.  We will revive that campaign in the coming months as this session of Congress progresses.  In the meantime, however, we encourage you to let your member of Congress know you oppose this aggressive expansion by the Credit Unions.  With questions, please contact GBA’s Elizabeth Chandler at (404) 420-2027.

Regulators Speak Out on Foreclosures
As we reported in last week’s e-Bulletin, the issue of foreclosures, especially in the subprime area, is receiving enormous attention among lenders, policy makers and the media.  This week, FDIC Chairman Sheila Bair testified before Congress and discussed, among other things, how the securitization of subprime loans has actually kept lenders from working with borrowers on workouts.  Also, the Federal regulators issued a joint statement encouraging regulated financial institutions to work with mortgage borrowers having difficulty making payments.  With questions, please contact GBA’s Elizabeth Chandler at (404) 420-2027.

Upson County Banks Send Children to 4-H Camp
Three Upson County banks have joined together to make the wish of attending 4-H Camp this summer come true for children in their community.  The Bank of Upson, United Bank and Colony Bank have awarded scholarships to five active Junior 4-H members to summer camp.  These efforts were coordinated by Leadership GBA Executive Committee member Pete Garrett, Vice President of the Bank of Upson, Thomaston (shown at right with the scholarship recipients).  Each year, Leadership GBA partners with the Georgia 4-H Camping Program to help Georgia elementary and middle schoolers attend camp.  “We strive to teach our youth about financial education at our summer camps,” said Debra Smith, Upson County 4-H Program Assistant.  “Thanks to Pete and the generosity of these banks in our county, we’ll be able to do that.  The families were very appreciative of the scholarships.”  If you would like to learn how your bank can help with 4-H Summer Camp scholarships in your area, please contact GBA’s Jennifer Stevens at (404) 420-2024 or Susie McGehee at (404) 420-2010.

Convention Tour and Activity Registration Deadline Approaching
Just a reminder that the deadline for registration for the various tours and activities offered at the 2007 Annual Convention is Friday, May 18.  Register online if you would like to participate in any of the activities.  We will be happy to invoice your bank.  Some activities have limited space so register early to guarantee yourself and your family a spot.  With questions, please contact GBA’s Susie McGehee at (404) 420-2010.

Call Reporting Seminar Scheduled
GBA will host its Call Reporting seminar on Wednesday, April 25, at the Macon Ramada Plaza.  The registration fee is $195 per person and the instructors are Alison Wester, Cassie Castner, Kelly Cravens and Jim Vaughn all with Mauldin & Jenkins, LLC, Atlanta.  Designed for CFOs, operations officers and anyone who is responsible for the preparation of call reports, this one-day seminar will offer practical techniques to improve your overall reporting process.  Participants will receive a detailed line-by-line review in the completion of each schedule of a Call Report.  Appropriate items to be reported and relationships between schedules will be discussed as part of this review.  Some of the topics to be covered include:

• Proven organizational techniques to improve both speed and accuracy in your bank’s call reporting processes

• Hands-on experience in call report preparation

• Common mistakes and problems with call reporting

Register online or contact GBA’s Courtenay Pope at (404) 420-2015 or Susie McGehee at (404) 420-2010 with questions.

Rural Development and Lending Conference in May
The Rural Development and Lending Conference is scheduled for May 17-18 at the King & Prince Beach and Golf Resort on St. Simons Island.  The 2006-2007 Agriculture Committee has planned an informative agenda.  Topics include market trends and the economy, analyzing Ag credits, FSA Guaranteed Lending, current legal issues, commodity hedging, and GPS potential savings.  Please click here to register, or call GBA’s Marybeth Jones at (404) 420-2032 with questions.

Register Today for AIB Online Courses
Just a reminder that the following AIB online classes begin on May 14.  Please register two weeks in advance to secure a seat in the class.  These courses are instructor-facilitated with weekly assignments and can be taken from the comfort of your home or the convenience of your office.  All you need is a computer, printer and Internet access. (Classes with an asterisk * require Microsoft Excel.)

• ABA Online Review Course for the CTFA Exam (open enrollment), 12 weeks, $795

• Analyzing Financial Statements*, 16 weeks, $485

• Banking Today, 5 weeks, $285

• Financial Accounting*, 16 weeks, $485

• General Accounting*, 16 weeks, $485

• Principles of Banking (2 credits), 10 weeks, $315

• Problem Loan Workouts, 6 weeks, $285

• Today's Teller: Developing Basic Skills* (open enrollment), 8 weeks, $285

• Understanding Your Construction Borrower, 10 weeks, $385

There is still LIMITED availability in the following AIB online classes beginning the week of May 7.  Please register as soon as possible to secure a seat in the class.

• IRA Online Institute, 12 weeks, $1,495

• Law & Banking:  Applications, 16 weeks, $435

• Money & Banking, 16 weeks, $385

• Principles of Banking, 16 weeks, $385

• Retirement Plan Services – Law & Regulations, 6 weeks, $795

• 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.

Economist Chris Low to Speak at Leadership Conference
Registrations are coming in at a steady pace for Leadership GBA’s 47^th annual Leadership Conference scheduled for July 15-18 at the Ponte Vedra Inn & Club in Ponte Vedra, Florida.  The Executive Committee has planned a great program to help you prepare for the constant changes in the banking industry.  But no conference would be complete without an economic update.  The housing correction began in early 2006, but entered a new phase in the first quarter of this year when subprime foreclosure rates started climbing and dozens of mortgage lenders closed their doors.  Credit standards are tightening, the economy is slowing, but the Fed continues to fight last year’s rise in inflation.  Chris Low, Chief Economist with FTN Financial, New York, NY will show you how the changing credit landscape affects the outlook for the economy, inflation, the Fed and the markets.  The conference will also provide excellent networking opportunities for bankers from around the state to share ideas.  For additional information, please call GBA’s Susie McGehee at (404) 420-2010 or Jennifer Stevens at (404) 420-2024.  Click here to register.

Operations/Technology Conference a Huge Success
Our thanks to GBA’s Operations/Technology Committee for planning such an outstanding conference held this week in Atlanta.  Banking professions in this area within banking spent time hearing the latest information about remote capture, emerging payment trends, product profitability, using technology to deliver secure services, and detecting fraud.  Time was also spent in peer exchange and in visiting with a number of exhibitors.  Our thanks to Committee Chair Jim Stewart of United Community Bank, Blairsville, for his leadership.

GBARS Welcomes New Member
GBA Retirement Services, Inc. is pleased to welcome to the Trust Embassy National Bank, Lawrenceville, Chris Fluehr, CEO.  The programs offered through the GBA Master Pension and 401(k) Profit Sharing Trust provide flexibility to meet the needs of any bank or associate member who may be looking at adding or changing their qualified retirement plan.  The Master Trust provides high quality, affordable pension, profit sharing, and Section 401(k) programs for banks and associate members of all sizes.  Please contact Mandy Richards at (404) 420-2025 for more information on how GBA can help design a retirement plan for your bank.

Status of Important Banking Cases
Our thanks to the Office of the General Counsel of the American Bankers Association for making available the newest edition of the Status of Important Banking Cases to the members of our Bank Counsel Section.  This monthly report gives bank attorneys up to date information on litigation involving banks across the country.  This report is another member benefit for the attorneys in GBA's Bank Counsel Section.  With questions about how your bank's attorney can participate, please call GBA's Kenyetta Parks at (404) 420-2035.

Human Resources Solutions
Employment Law Compliance, Inc. is a Strategic Partner of the Georgia Bankers Association and our primary resource to provide employee handbooks, toolkits, affirmative action plans, and other compliance products specifically designed for community banks.  Keeping up with ever-changing employment regulations and human resources best practices can be time consuming.  Monitoring changes specific to the banking industry adds even more effort to the task.  Employment Law Compliance focuses on the needs of community banks which do not have the luxury of a large HR staff or in-house employment counsel.  Their staff is committed to designing and maintaining solutions and services that can help your bank attract, hire, retain, and manage the best employees.  ELC can assist your bank in addressing the challenges of employment compliance.  Whatever the reason – lack of time or internal resources or the high cost of outside counsel – Employment Law Compliance can take care of your bank’s needs.  For more information, please contact Employment Law Compliance’s Steven Greene at (770) 206-3371 or GBA’s Josh Latina at (404) 420-2022.

Overdraft Privilege Program
Established in 1976 by Chairman William H. Strunk, Strunk and Associates, L.P. is a financial institution advisory service recognized nationally for its innovative design, development, and implementation of sustainable profit improvement solutions, most notably the Strunk “Overdraft Privilege Program”, for the financial services industry. The firm’s reputation is built on more than 30 years of providing expert and objective advisory services to thousands of financial institutions, and has recently received the exclusive endorsement of the GBA as a Strategic Partner.  If you are interested in better customer service and increased non-interest income, you will want to learn more about Strunk and Associates’ Overdraft Privilege Program. For more information, please contact Strunk’s Bob Shifflett at (540) 828-3314, or GBA’s Josh Latina at (404) 420-2022.

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 contact GBA’s Kenyetta Parks at (404) 420-2035.

Some of the Services Available Through GBA Services, Inc.
 

Bond and D&O Insurance	Internet Loan Closing Program
Checking Club Programs	Job Bank
Discounted Check Program	Non-Qualified Executive Benefits (BOLI)
Discounted Local & Long Distance Program	Pledging Pool Program
Financial Industry Pre-Employment Assessments	Record Retention Guide
FinCrime	Senior Housing Crime Prevention Foundation
Georgia Financial Directory	Strunk & Associates
Georgia Laws Code Book	Thumbprint Signature Program
Holiday Decals	Trust and Investment Services
Human Resources Solutions

GBA Services, Inc. is governed by a board composed primarily of community bank presidents who look for the best products and services available.  They do the due diligence for you and you can rely on their efforts.  For more information or to order any of these products or services, please call (404) 522-1501.

Newsmakers:

Gray - Piedmont Community Bank Alyson McGoldrick has joined the bank as Assistant Vice President, Commercial Lending. Macon - Atlantic Southern Bank Daniel Robbins has been promoted to Senior Vice President, Retail Operations; Ed Campbell to Senior Vice President, Human Resources; and Stuart Pippin to Banking Officer. Roswell - Bank of North Georgia Martin Dunlap has been promoted to Senior Human Resources Manager. Savannah - The Coastal Bank J. Thomas Wiley has been named President and Chief Executive Officer. Statesboro - Citizens Bank of Bulloch County Tracie Sullivan has joined the bank as Assistant Vice President and Branch Manager and Shannon Middleton as Construction and Mortgage Officer. Holli Nichols has been promoted to Assistant Vice President. Twin City - Durden Banking Co., Inc. Our sympathies are extended to the family and colleagues of Dickson Durden, board member and former CEO of the bank, who died last week.

McGoldrick Pippin

Robbins Dunlap

Campbell Wiley

Serving the needs of Georgia Bankers since 1892 Search I Staff I Contact Us Georgia Bankers Association - 50 Hurt Plaza, Suite 1050, Atlanta, GA 30303 • Phone 404.522.1501 • Fax 404.522.9848