Legislative Update: General Assembly passes Halfway Mark of 2010 Session
The Georgia General Assembly passed the mid-point of its 40-day session this week. All eyes are on the budget process as many legislators are working nonstop to find ways to meet the revenue shortfalls. We told you last week that the Governor signed our priority bill, HB 926. The new law helps some state-chartered banks renew loans that would have been above their legal lending limit because of capital erosion. Banking Commissioner Rob Braswell sent an e-mail to state chartered banks telling them of the immediate applicability of the change. Because of the straight-forward language in the bill, we understand no further guidance will be forthcoming other than general information in department publications.

Trust Code Revision Passes House
Another bill GBA has been supporting, SB 131, passed the House this week but has to go back to the Senate for another look. We’ve coordinated with the State Bar of Georgia on the first substantial rewrite of the trust code in many years. Sen. George Hooks has been working on another helpful bill, SB 302, that sets up a new mechanism to resolve many dormant trusts. These two bills may be combined in the Senate into one package.

AMC Bill Reported out of House Committee
Legislation that would regulate Appraisal Management Companies, HB 1050, has been reported out of the House Regulated Industries Committee. Sponsored by Rep. Tommy Benton of Commerce, the bill was introduced at the request of appraisers who, according to their testimony, felt they were being adversely affected by the new rules regarding arm’s length transactions between lenders and the appraisal process. Many states are considering legislation that would regulate these companies. Some of the AMCs report that the Georgia bill goes much further than most bills under consideration in other states. AMCs have been around a long time and have been good partners with some lenders for many years. GBA began getting calls from both members and appraisers after the Home Valuation Code of Conduct rules went into effect last May which apply to mortgage loans sold in the secondary market. As with any new program of this magnitude, it will take some time for the process to smooth out and federal legislation is pending encouraging the states to adopt their own rules. We have had some input on the bill, but would encourage other members to let us know your views on the legislation.

Another Hearing on Foreclosure Time Extension
A House Judiciary Subcommittee held a third hearing on HB 972, the bill that would require a 90-day notice prior to foreclosure and allows the borrower to cure the default prior to foreclosure. GBA testified at the first hearing and gave the committee an extensive nationwide study we commissioned showing no connection exists between the number of foreclosures in a state and how those foreclosures are eventually resolved. The subcommittee also discussed changes to the Georgia Fair Lending Act that mostly apply to mortgage brokers. GBA is monitoring that bill, SB 57, as the provisions would not apply to our members due to a preemption ruling by federal and state regulators in 2004.

 Shaw Elected to Transportation Board

Congratulations to Rep. Jay Shaw, Lakeland, who was elected by his peers to the state Department of Transportation Board this week. Shaw has been a longtime member of the General Assembly serving on the Banks and Banking Committee. He has said that he will serve through the session and then resign to take the DOT seat. Best wishes to our good friend as he embarks on this new level of service to our state.

New Legislation Introduced This Week
Even this late in the Session, a number of bills were introduced this week that are of interest to bankers:

• House Ways and Means Committee chairman Larry O’Neal introduced HB 1191 and HB 1192 that require the equitable distribution of the real estate transfer tax and the intangible tax between counties when the property lies in more than one jurisdiction.

• Senate Agriculture and Consumer Affairs Committee chairman John Bulloch introduced SB 417 that would require a termite letter when transferring property. The bill is similar to HB 1048 introduced earlier in the House.

• Rep. Don Wix introduced HB 1209 that would require lenders to notify a mortgagee if the property is newly deemed to be in a flood plain.

• Rep. Mike Jacobs introduced HB 973 that increases the threshold for cases in Magistrate’s Court to be raised from $15,000 to $25,000.

• Senate Regulated Industry and Utilities chairman David Shafer introduced SB 416 which would require state depositories to accept certain U.S. minted gold and silver coins to be accepted as deposits and similarly used to pay withdrawals.

The Road Ahead
The Legislature will be in recess the next two weeks giving the appropriations committees more time to work on the budget. We expect the session to end in mid-April.

We expect to soon see the bones of a proposal from Rep. Sean Jerguson that would create a state guarantee of certain small business loans made through traditional lenders. The Legislature is looking at creative ways to help small businesses expand and add jobs by supporting lenders’ efforts to provide certain lines of credit and loans for working capital and equipment purchase loans.

Follow All the Bills GBA is Monitoring
Be sure to frequently check the State Issues page of GBA’s web site to see the huge number of bills we continue to monitor this session. With questions about the session including specific bills, contact Elizabeth Chandler at 404.420.2027 or Joe Brannen at 404.420.2026.

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GBA in the News: Lending Limit Bill and Check Fraud
Once again, GBA was the go-to resource for journalists covering important banking topics this week. President and CEO Joe Brannen was quoted in a Wall Street Journal story about Georgia's Legal Lending Limit legislation passed last week. "The key messages that the bill brings Georgia's laws in line with those governing national banks, prevents good customers from having to look elsewhere for credit and prevents banks from having to sever ties with performing borrowers were all prominent," Brannen said about the story. "Unfortunately, the headline and lead mischaracterized the intent of the legislation, leaving the less-than-careful reader with the wrong impression that the intent was to allow deeper exposure to a single borrower. The intent is not about extending new credit and taking on new exposure, it is simply about the ability to renew credit to a customer in good standing that has already been extended." In other news, David Oliver, SVP-Communications and Marketing, provided background about fraud-protection technology to Atlanta's WSB-TV for a story about a counterfeit-check ring in Duluth. The story did a good job of making the public aware of the fraud ring, which should serve as a deterrent and possibly make apprehending the bad guys easier. With questions, contact David Oliver, 404.420.2036, or Joe Brannen, 404.420.2026.

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Banks Subject to HIPAA Security Breach Rules Effective Feb. 17
Many banks are now subject to certain privacy and information security rules covered by the Health Insurance Portability and Accountability Act (HIPAA). Part of last year's stimulus bill extended the privacy and security provisions to business associates of covered entities. Many banks and financial institutions fall into this category if they provide medical banking services to healthcare providers or other HIPAA-covered entities that require the bank to handle personal health information. In particular, there are specific notification requirements in the event of a data security breach. The rules require covered banks to notify affected individuals within 60 days of discovery of a breach. In any case in which 500 or more people are affected by a breach, the bank must provide notices to Health and Human Services and to major local media outlets. Violations are subject to civil and possible criminal penalties. For more details see the Bryan Cave, LLP web site posting here. 

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News from the Bench: Federal Court Rules on Key Loan Participation Case
Loan participants will find interesting a recent federal district court ruling out of Macon. On Feb. 9 the court ruled on a disputed participation agreement case in which it found the lead lender to have breached the agreement and ordered the lender to repurchase an interest from a participating bank at the original purchase price of $1.9 million plus interest. The case of Sun American Bank v. Fairfield Financial Services, Inc. involved a claim by Sun American that Fairfield Financial had breached its obligations under a loan participation agreement involving a condominium project in north Florida. Sun American contended that Fairfield Financial had breached the agreement by failing to disclose to participants in a timely manner the downgrades in its credit relationship with the borrower and of circumstances that were likely to have a material, adverse effect on the loan. Judge Ashley Royal, United States District Court for the Middle District of Georgia, granted summary judgment in favor of Sun American finding that Fairfield Financial had failed to meet its disclosure obligations to the participants. 

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Customer Satisfaction for Banks Holds Steady
Fourth-quarter data from the American Customer Satisfaction Index (ACSI) shows customer satisfaction with banks continued to be stable in 2009 despite a bad economy and a drumbeat of negative media coverage of the industry. Just as it did in 2008, the banking industry received a score of 75 out of 100. Smaller banks, combining regional and community banks, maintained an average score of 80, while credit unions held their score of 84. More about the quarterly survey…

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All Hands on Deck for Teach Children to Save Day – April 27
Many Americans have traded in their spending habits and are making saving for a rainy day a top priority. To help ensure this trend continues, the ABA Education Foundation and Leadership GBA will take steps to lead kids down the path to a positive financial future. On Tuesday, April 27, bankers nationwide will use their expertise to inspire students to become life‐long savers on National Teach Children to Save Day. "It's so important to start teaching children personal finance skills at an early age," said Leadership GBA President Kelly Yielding with McIntosh State Bank in Jackson. "Teaching them these skills is one of the most important services we can provide." To help you plan or present a lesson, the foundation has created a Teach Children to Save resource kit. Available for K-6 and 7-12 age groups, the resource kits have multiple lesson plans that explain the difference between needs and wants, ways to identify expenses and how priorities can influence spending. For more information on Teach Children to Save Day or to purchase Teach Children to Save resource kits, please visit www.abaef.com or call 1-800-BANKERS. And, don't forget to record your presentations as part of our Personal Economics Program. It helps us let the public know just how much our state's banks put into serving their communities.

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Gus Whalen to Talk About "What’s Next" In Banking at Annual Convention

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Bank Trainer Peer Group Meeting
Please join us for the GBA-U's Bank Trainer Peer Group on Tuesday, March 9, at the Georgia Bankers Association office in Atlanta. We have two industry experts lined up. June Somers will provide great information and some important tips on adult learning. Teri Callahan, with the American Institute of Banking (AIB), will also be on hand to update you on the new Learning Management System, BankPoint, and online eLearning. During lunch, you will also have the opportunity to network with your colleagues at our roundtable discussions. With questions, please contact GBA's Alison Moreau at 404.420.2034.

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IT Security Trends and Examiner Expectations Session on Tap at Annual Conference
Long gone are the days when the only security threat to a community bank was a local outlaw with a gun and bandana. The external perimeter is no longer limited to the brick-and-mortar building in which money and information resides. The security landscape of today’s Internet-connected bank has expanded to include global threats such as foreign terrorist organizations. Join Russ Horn, CoNetrix, as he reviews security trends, including new threats and discussions of recent breaches, then turns the focus to IT examiner expectations during a session at the annual Operations and Technology Conference  March 2-3 at the Cobb Galleria Centre in Atlanta. The Renaissance Waverly Hotel is offering GBA members a special rate of $149. The rate is based on availability, so make your reservations early by calling the hotel directly at 770.953.4500. For more information or to register, contact GBA’s Marybeth Jones at 404.420.2032.

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Security Conference Agenda Finalized
GBA’s 2009-2010 Security Committee has planned an exciting agenda for this year’s conference, scheduled for April 13-14 at the Cobb Galleria Centre in Atlanta. The conference brochure is enclosed. The Renaissance Waverly Hotel is offering GBA members a special rate of $149.  The rate is based on availability, so make your reservations early by calling the hotel directly at 770.953.4500. For more information or to register by phone, please call GBA’s Marybeth Jones at 404.420.2032.

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RESPA Update Seminar: March 3
New RESPA requirements are complex and many subsequent clarifications have been made by HUD in the form of updated FAQs since the final rules were announced. Much is at stake in complying with these rules, and errors may be costly in the form of reimbursable violations. In addition, a separate explanation of how the requirements differ between bank loan officers, mortgage lenders, and mortgage brokers will be provided. This seminar will provide a detailed overview of the new requirements and include line-by-line instructions for completing these mandated forms referencing the most recent guidance issued by HUD and much more.
W. Brad Washburn of Steve H. Powell & Company in Statesboro is the instructor. The seminar is March 3 at Idle Hour Country Club in Macon from 10 a.m. to 3 p.m.  Registration is only $149 for members. With questions or to register, contact GBA’s Courtenay Pope at 404.420.2015.

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GBA's Fraud Seminar: March. 11
Interested in learning about all forms of external bank fraud? Learn about email-scams, check fraud, counterfeit checks and much more by attending GBA’s Fraud seminar. Steve Cross of SunTrust Bank is the instructor. The seminar is March 11 at Idle Hour Country Club in Macon. This course also qualifies as curriculum credit required for the Bank Security Academy. Registration is only $225 for members. With questions or to register, contact GBA’s Courtenay Pope at 404.420.2015.

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Introduction to Consumer Lending Seminar: March. 16
This program is an introduction and a practical approach to consumer lending. It is designed to assist participants in understanding the credit process, to improve the quality of credit decisions and to increase their confidence skills. Participants will learn to

• Identify the varied functions of a consumer lender,

• Describe the components of a sound consumer loan portfolio,

• Conduct an effective interview, conduct a credit investigation, determine the relevant characteristics of borrowers, and

• Determine customer's financial ability to repay.

Please bring your own calculator. Peter Faser of Sterne, Agee & Leach will lead this session. Registration is only $225 for members. With questions or to register, contact GBA’s Courtenay Pope at 404.420.2015.

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Employee Investigations Seminar: March 30
Register now for GBA’s Employee Investigations seminar scheduled for March 30, at Idle Hour Country Club in Macon. The registration fee for each workshop is $225 per person. Amos Welch, CFE, CPP, Vice President, Regional Manager of Corporate Investigations at BB&T, Atlanta, will lead the workshop. This interactive one-day seminar will help you deal with the obstacles and challenges you face when conducting employee investigations. Some of the topics to be covered include:

• "Somebody’s Stealing!!"(NOW WHAT….?)

• Evidence Collection, Analysis, & Organization. Get it Right!

• "Playing Detective": Interview and Interrogation

• Prosecute?! WHY?!!! ("Just get the money back!")

• Workplace Violence.

With questions or to register, please contact GBA’s Courtenay Pope at 404.420.2015.

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AIB Online Instructor Led Courses for March
Here are the instructor-led AIB online classes offered the week of March 15. 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.

• Financial Accounting, 16 weeks, $485

• Managing Interest Rate Risk, 8 weeks, $745

• Principles of Banking Accelerated, 10 weeks, $335

There is still availability in the following AIB Online class beginning March 8: Analyzing Financial Statements, 16 weeks, $485

Please register as soon as possible to secure a seat in the class. 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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IRA Training: Introduction to IRAs and IRA Online Institute
Get ready for IRA season with these two courses that will help equip your employees for making upcoming sales.

With questions about either of these courses, please contact GBA’s Alison Moreau at 404.420.2034.

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Register for GBA Webinars Today
GBA will offer the following webinars the week of Feb 22:

• Compliance Perspectives: A Monthly Update -- Feb. 23

• Asset Based Lending -- Feb. 23

• Call Report for Banks - Highlights & Pitfalls -- Feb. 24

• Legal Issues Involved in Collection -- Feb. 25

• FAS 166: Accounting for Transfers of Financial Assets -- Feb. 26

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 Advantage of Top-Notch Compensation and Benefits Consulting
Bank compensation is a big issue right now. If you’re looking to examine your compensation policies, consider touching base with the Holmes-Shaw Agency, a GBA Strategic Partner. Holmes Shaw has entered into a partnership with Comprehensive Corporate Strategies (CCS) to provide a full array of employee benefit solutions that have proven highly effective at attracting and retaining the best employees and executives. More importantly, Holmes-Shaw/CCS offers banks attractive financing strategies to reduce the impact of executive benefit programs. Holmes-Shaw/CCS can provide Executive & Director Benefit Plans, BOLI Financing Strategies & Annual Reviews, BOLI Audit Services, Analysis of Existing Supplemental Benefit Plans and Independent Regulatory Compliance & Administration. Holmes-Shaw/CCS also specializes in designing and implementing executive retention programs. The innovative programs from this GBA Strategic Partner allow banks to develop attractive compensation incentives keyed specifically to long-term performance. For more information, please contact Holmes-Shaw/CCS’s Steve Roy at 770.645.2022 or GBA’s Levi Crabtree at 404.420.2022.

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REO Insurance - Get Great Rates with Online Program
The expense to insure foreclosed properties and time spent reporting them has grown significantly during the past year. Most banks are paying a much higher premium for this coverage than they should and are using out-of-date reporting systems. GBA members can access a new national Bank REO program, which was developed specifically for GBA members. The program’s online reporting system is the simplest, most efficient system in the market today. Save time and money with this new program. Companies using the program have seen cost savings of more than 25 percent in many cases, which can result in tens of thousands of dollars in savings, not to mention the time savings from using the new online system. Please contact Hayward McEver of McEver & Tribble, Inc. at 404.423.5677 to see how your current rate and reporting system compares to the rates and online system offered through this GBA program.

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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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Make Sure You Aren’t Missing Out!
You have probably noticed some recent changes to the look of GBA publications. We are certain you will find the layout more reader-friendly and handy for accessing specific articles you’re interested in. To ensure that you are receiving everything we provide, take a moment to check that the Georgia Bankers Association is on the safe sender list for e-mails. Your e-mail program should have an option for adding the @gabankers.com domain as a safe sender. And you can always check with your IT specialist to adjust the permission settings if you are finding our transmissions anywhere other than your inbox. The GBA is the best resource for important industry information in Georgia and we want you to be fully connected. With questions for us, contact Lydia Thomas by e-mail.

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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
Atlanta - State Bank & Trust
Justin Perry has joined the bank as Senior Counsel, Special Assets Division.

Colquitt - PeoplesSouth Bancshares, Inc.
Our sympathy to the family, friends and colleagues of Arthur Joe Sloan on his recent death.

Marietta - First Landmark Bank
Ashley Mize has been promoted to Banking Officer and Branch Manager.