January 22, 2010 

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Get Involved: Committee Positions Available

Perhaps the greatest strength of your Association is the more than 225 bankers who volunteer each year to serve on GBA's 16 standing committees or boards. Committee membership provides leadership, subject-matter expertise and the opportunity to directly influence our efforts to help all members better manage the rapidly changing political, regulatory and educational needs of today’s banking environment. Chuck Williams, GBA’s Chairman-elect and President and CEO of North Georgia Bank, Watkinsville, is starting this year’s committee appointment process by looking for bankers who want to join their colleagues from across Georgia in service to their industry. “It is a critical time for our industry, so we need the best and brightest bank leaders serving on our committees,” he said. “And, involvement builds lifelong friendships and business opportunities as wonderful byproducts of service to our industry.” Please see the letter from Chuck, the fact sheet describing the committees, boards and their roles, and the volunteer form for recommending someone for a committee or to volunteer yourself. Contact GBA’s Marybeth Jones at 404.420.2032 for more information.

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Legislative Update: Budget Hearings Lead to Light Legislative Week
We would like to welcome Sen. Jim Butterworth (District 50) to the Senate Banking and Financial Institutions Committee. We look forward to working with him. The General Assembly was in recess this week for budget hearings, so there's no significant news about new or proposed legislation. As the session gets rolling, it is obvious that the state's budget will dominate legislators' time. The Governor's proposed budget includes $720,000 in cuts for the Department of Banking and Finance, the majority of which come in the form of not filling six vacant examiner positions. "It’s critical for the Department of Banking and Finance to have the budget to support an experienced, highly-trained staff. It was disappointing, but certainly expected, that the Governor recommended more cuts to the Department’s budget. However, we understand tough decisions have to be made in these unprecedented times." said Joe Brannen, GBA President and CEO, in an interview with the Atlanta Business Chronicle. "The industry prepays directly for its supervision, and it is unfortunate some of that money has to be used for other purposes when the state’s revenues are so bleak. We want to work with the General Assembly when the economy improves to avoid that in the future." It is also clear that many legislators' constituents and media are interested in what, if any, banking related changes the legislature will consider in this session. An article in Sunday's Atlanta Journal Constitution carried some of that debate. Much of the discussion centered on the difficulty of addressing any of the economic or regulatory related issues through legislative action. "We're not regulators, we're policy setters," said Sen. Bill Hamrick, chairman of the Senate Banking and Financial Institutions Committee. "I think the economy set us up for what happened." The article also chronicles the efforts the GBA and other groups make to educate and advocate on behalf of their members and constituents, including contributions GBA made to candidate campaigns. The legislature returns next week and they seem determined to quickly dispose of their business this year. With questions, contact Joe Brannen, 404.420.2026, or Elizabeth Chandler, 404.420.2027.

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TARP Oversight Panel Coming To Atlanta
Commercial real estate will be under the microscope next week in Atlanta during a field hearing of the TARP Congressional Oversight Panel (COP). In advance of the hearing, the GBA has been working with the panel's staff to help them understand the commercial real estate (CRE) and general banking environment in Georgia. We've also served as a resource by recommending bankers as potential witnesses. The hearing will include two panels; one focusing on bank and real estate industry representatives and the other featuring FDIC and Federal Reserve witnesses.  According to a release from the panel, Atlanta was chosen as a potential field hearing site because of the troubles of its commercial real estate market, which have been growing since the financial crisis began. "By traveling to Atlanta and hearing from bank regulators, financial analysts, real estate developers, community groups, and other stakeholders, the COP members intend to deepen their understanding of the relationship between CRE and financial stability as part of the forthcoming February report on CRE," the release said. The Congressional Oversight Panel was created by Congress in the Emergency Economic Stabilization Act of 2008 (EESA) to oversee the Department of the Treasury’s administration of the Troubled Asset Relief Program (TARP). The committee is chaired by Harvard law professor Elizabeth Warren. With questions, contact Joe Brannen, 404.420.2026, or Elizabeth Chandler, 404.420.2027.

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D.C. Regulatory Reform Update: Lots of Balls Still in the Air
A financial services regulatory reform package in the U.S. Senate of some sort is a given, that much we know. However, just what that package will look like remains a significant work in progress. This week, President Obama reportedly had a sit down with Senate Banking Committee Chairman Chris Dodd (D-Conn.) to reinforce his strong desire for a Consumer Financial Protection Agency. GBA continues to be opposed to a stand-alone agency, with our position outlined in a short "Pro-Con" article in Sunday's Atlanta Journal Constitution. The President's reinforcement of the idea came on the heels of widespread reports last week that Dodd was considering dropping plans for a stand-alone agency to garner more bi-partisan support for a larger package. Many consumer activists continue to press for a stand-alone agency. Elizabeth Warren, Harvard law professor and chair of the TARP Congressional Oversight Panel, said in the Times story that the CFPA is “the litmus test” for the administration. Meanwhile, House Financial Services Committee Chairman Barney Frank (D-Mass.) sent a clarifying memo to his committee members and a press release emphasizing that all banks would be subject to rules set forth by the CFPA. He cited press reports as inaccurately conveying that the House version of the legislation would exempt small banks. In the memo, he said, "...all of those institutions will be subject to all rules issued by the agency with respect to the extension of credit. They also will be subject to agency enforcement. The exemption for smaller financial institutions is only with respect to examination which will continue to be the responsibility of the institutions’ prudential regulators.  However, the CFPA will have back-up inspection authority and may independently take enforcement action. And even this exemption is limited to institutions with less than 2% of bank assets." With questions, contact Joe Brannen, 404.420.2026, or Elizabeth Chandler, 404.420.2027.
 

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Obama Proposes New Limits on Large Institutions
President Obama announced Thursday new proposals to limit the size and scope of large financial institutions. Specific details were not given, but the intent will be to ensure that "no bank or financial institution that contains a bank will own, invest in or sponsor a hedge fund or a private equity fund, or proprietary trading operations unrelated to serving customers for its own profit." The announcement also said proposals will beef up deposit market-share caps. Various press reports quote administration officials as saying the 10 percent deposit market share cap would be expanded to include non-insured deposits and other assets. “While the financial system is far stronger today than it was a year one year ago, it is still operating under the exact same rules that led to its near collapse,” said President Barack Obama, in a statement. “My resolve to reform the system is only strengthened when I see a return to old practices at some of the very firms fighting reform; and when I see record profits at some of the very firms claiming that they cannot lend more to small business, cannot keep credit card rates low, and cannot refund taxpayers for the bailout.  It is exactly this kind of irresponsibility that makes clear reform is necessary.” The administration will work with the Senate to include its proposals in a Senate version of financial regulatory reform. With questions, contact Joe Brannen, 404.420.2026, or Elizabeth Chandler, 404.420.2027.

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GBA Still Battling Expansion of Credit Union Lending Limits
The GBA this week signed on to an industry-wide letter to Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell opposing significant expansion of Credit Union business lending limits. The legislation (S.2919) would increase the credit union member business lending cap from 12.25 percent of a credit union’s total assets to 25 percent, raise the de minimus level of a credit union business loan to $250,000 and exclude other loans from the cap. “This is the same song, different verse from large Credit Unions that want to stray from their traditional mission of serving consumers, especially those of modest means,” said Joe Brannen, GBA President and CEO. “As we point out, only 41 of the nearly 7,600 credit unions, or about one-half of one percent of all credit unions, would directly benefit from increased business lending authority since only these 41 are at or within one percent of the current business lending cap.” The letter also explains other common-sense opposition to the specific legislation and attempts to include it in other jobs legislation being considered. With questions, contact Joe Brannen, 404.420.2026, or Elizabeth Chandler, 404.420.2027.

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Test for Significant Interest Rate Shocks, says FDIC
The FDIC this week cautioned banks to pay close attention to their interest rate risk, especially in relation to funding long-term assets with short-term liabilities carrying extremely low rates. In a Financial Institution Letter released this week, the FDIC said analysis of an institution's exposure to interest rate risk should include assessing the likely effects of meaningful stress scenarios, including interest rate shocks of at least 300 to 400 basis points. It also said that if the measures approach or exceed risk limits, management should take steps to limit or mitigate the exposure, for example, by hedging or altering the balance sheet.

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Congratulations 2009 AIB Graduates
It is with great pleasure we announce the 2009 graduates of the American Institute of Banking. The great news is that there are so many graduates we can't list them all here. So, please see the flier listing the proud recipients of this honor. The American Institute of Banking (AIB) is recognized as the industry standard in banking education and training for over a century, and the GBA is proud of its commitment to Georgia bankers by offering AIB courses. AIB Diplomas and AIB Certificates are well recognized within banking and financial communities, and earning one of these diplomas or certificates can take years of dedication, commitment and perseverance.

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Enroll Now in Georgia Banking School
The first-year class of this three-year school is now forming, so get your registration in soon. Designed for mid- to senior-level bankers needing a broad-based, intensive study of all areas of banking, the school will be May 2-7 at the University of Georgia. For more about how your bank will benefit from having a banker or multiple bankers participate, please read the letter from the school’s Academic Director, Dr. Jim Verbrugge. Call GBA’s Marybeth Jones at 404.420.2032 for details and registration information.

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Learn the Latest Trends in Information Security and System Performance at the Op/Tech Conference
Danny Johnson, Gladiator Technology, Inc., will discuss a multi-layered approach for protecting your institution from internal and external security breaches, benefits of on-site vs. hosted technology solutions and managed services to address 24x7 monitoring of critical systems. The Operations and Technology Conference is March 2-3, 2010, 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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Legal Update Highlights HR Professionals Institute
Join Steve Greene, Helms & Greene, LLC, and Marian Exall, Employment Law Compliance, Inc., as they identify and discuss the most significant legal compliance challenges for community bankers. This session will include practical advice. Attendees will have an opportunity to raise questions and observations during this highly interactive session. The presenters will also provide take-and-use materials to assist bankers implement HR best practices. The HR Professionals Institute is March 17-19, 2010, at the Cobb Galleria Centre in Atlanta. The Renaissance Waverly Hotel is offering GBA members a special rate of $149  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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HMDA and CRA Workshop – Jan. 27
This one-day seminar is designed for compliance officers, loan officers and other bank personnel responsible for HMDA data collection and reporting. Topics to be covered include the new changes for 2009, types of loan applications that are HMDA reportable, the regulatory consequences for non-compliance, “community development” loans and much more. The seminar will be led by Steve Moore with Bank Compliance Services, Avondale Estates. The HMDA and CRA Workshop is scheduled for Jan. 27 at Idle Hour Country Club in Macon. With questions or to register, please contact GBA’s Courtenay Pope at 404.420.2015.

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BSA/AML Compliance Seminar – Jan. 28
GBA will host its BSA/AML Compliance seminar Thursday, Jan. 28, at Idle Hour Country Club in Macon. Attendees will learn about the Bank Secrecy Act, Anti-Money Laundering, the filing of SARs, OFAC, and much more. Steve Cross – SunTrust Bank, Bank Security and Alvin Mitcham – SunTrust Bank, AML Group will lead this workshop. The registration fee for each workshop is $225 per person. With questions or to register, please contact GBA’s Courtenay Pope at 404.420.2015.

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Learn About Proposed IRA Changes at IRA Basics Seminar
Designed for new account representatives, CD personnel and any officer or manager who oversees the IRA department, GBA’s annual IRA Basics seminar will provide you with a complete understanding of the IRA as well as a review of significant proposed changes. The seminar also includes the 225-page IRA Training and Reference Manual, otherwise known as the “IRA Survival Guide” or the “Red Book." The seminar will be led by Patrice Konarik with Sunwest Training Corp. in Gilchrist, Texas.  There are two dates for this one-day seminar: Feb. 10 at the Holiday Inn Lanier Centre in Gainesville and Feb. 11 at Idle Hour Country Club in Macon. With questions or to register, please contact GBA’s Courtenay Pope at 404.420.2015.

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Southeastern Bank Management and Directors' Conference Feb. 2 and Feb. 11
The economic recovery is on the horizon and now is the time for developing plans and loan strategies for the future. At the Southeastern Bank Management Conference, you will hear and discuss approaches for doing this in an environment in which expansion is likely to be slow and loan demand is likely to remain weak, the regulatory system will be challenging and bank capital markets will maintain a "show me some performance" perspective. The conference, sponsored by UGA’s Terry College of Business, is scheduled for Feb. 2 at the Mansion on Forsyth Park in Savannah and Feb. 11 at the Gwinnett Center in Duluth.

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Effective Information Security Management Seminar – Feb. 18
If you are an Information Security Officer and want to make sure you have the best tools for your job, plan on attending GBA’s Effective Information Security Management seminar Feb. 18 at the Idle Hour Country Club in Macon. This one-day seminar will focus on the responsibilities of the ISO with a special emphasis on assessing risk and managing technical security controls. Some of the topics to be covered include:

• The best candidate for the role of ISO
• The required components of a comprehensive Information Security Program
• The case for a strong risk-assessment methodology
• How to manage, monitor and test technical security controls
• Meeting examiner expectations.

This seminar also qualifies as curriculum credit required for the Bank Security Academy. The registration fee for this workshop is $130 and the instructors are Kimberly Tallant with Gladiator Technology Group, Alpharetta, and Jamie Davis with Safe Systems, Inc., Alpharetta. With questions, please call GBA’s Courtenay Pope at 404.420.2015.

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Managing Workouts to Optimize Value: – Feb. 17
This seminar will provide participants with skills to support early recognition of problems, assessment of client viability, alternative courses of action for the lender and decision support for choosing appropriate actions. It will cover loan 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. The seminar is Feb. 17 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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AIB Online Instructor Led Course Offerings, Sign Up Today!
Here are the instructor-led AIB online classes offered the week of February 16. 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.

• Fundamentals of Consumer Lending, 5 weeks, $250

• Marketing Financial Services, 16 weeks, $405

• Money & Banking, 16 weeks, $405

• Supervisor Certificate, 16 weeks, $695

There is still availability in the following AIB Online classes beginning February 8.  Please register as soon as possible to secure a seat in the class.

• Analyzing Financial Statements*, 16 weeks, $485

• Financial Accounting*, 16 weeks, $485

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

• Principles of Banking, 16 weeks, $405

• Trust Basics, 16 weeks, $405

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 Jan. 25:

• Loan Review – Jan. 25
• Frontline Deposit Compliance, Pt. 2: Frequently Asked Questions & Common Errors – Jan. 27
• Loan Documentation 101, Part 2: Lien Perfection: Getting it Right – Jan. 29

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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New Way to Save: Discounted Pricing Available for Local Market Interest Rate Data
The GBA and RateWatch have teamed up to offer members discounts on important competitive interest rate data to help you with your pricing decisions and also to evaluate your local interest rate markets related to new FDIC rules for rate caps. RateWatch supplies the FDIC with the interest rate data that it uses for its national averages calculations and local market analyses.  Through this offer, you will have access to the same data used by the FDIC! RateWatch successfully meets the needs of all of its clients by acquiring interest rates, fees and other product information on more than 80,000 financial institution locations. So, as a new GBA Endorsed Vendor, RateWatch is your best choice for an apples-to-apples analysis of your local market. RateWatch has been proudly serving the financial industry since 1989. For 20 years, RateWatch has continuously evolved to provide clients with multiple options of one-time subscription reporting in several key price-setting areas including deposits, loans and fees. Here are the discounts GBA members can now take advantage of through this new partnership with RateWatch: 

1. All interested GBA members will be entitled to one FREE local-area market analysis to determine the average rates for their local-area market standard deposit products

2. GBA members who have not made a purchase from RateWatch in the past 12 months will receive:

1. A 20% discount on a subscription to any report that includes 50 or more competitors; or

2. A 10% discount on any report that includes less than 50 competitors.

3. GBA members who have a current subscription to a RateWatch report will receive:

1. A 10% discount on any new report or renewal that includes 50 or more competitors; or

2. A 5% discount on any new report or renewal that includes less than 50 competitors.

These are tremendously valuable services and discounts. Call or write to Denise Beech at 800.348.1831 ext. 216, to subscribe to a new report from RateWatch today. 

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Do You Know Which Customers are Generating a Profit for Your Bank?
Banks are under increasing pressure to maximize their bottom-line profit. However, many banks are unable to identify the customers who are generating their profit. If you don't know your most profitable accounts, it is difficult to effectively manage your bank’s bottom line profit. Fidelity National Information Services, Inc. (FNIS) can help you learn who your most profitable customers are and develop a plan to retain these customers. Fidelity will customize its profitability module, CONNECTIONS, for your bank. You will be able to identify which customers are profitable and receive a comprehensive analysis of the profitability of your bank through the following reports:

• Profit by Decile - Displays the most profitable to least profitable customers.

• Profit by Portfolio - Displays the loan, deposit and overall profit for all customers by employee.

• Profit by Group - Displays customer profitability by category

• Profit by Location - Displays the current and average profit for each bank location.

• Product Profit & Loss - Displays the number of accounts, balance and profit for each product.

To ensure the accuracy of these reports, CONNECTIONS will provide a total profit for your bank and balance it to your general ledger each month. Click here to view the online demo of FNIS’ CONNECTIONS module. If you would like to learn more about CONNECTIONS, please contact Bill Armistead, Vice President of Fidelity National Information Services, Inc., at 205.222.4003.

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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

Atlanta - Georgia Commerce Bank
Seth Gray has been promoted to Vice President and Edwin Padgett and Jesse Erickson to Assistant Vice Presidents.

Carrollton - McIntosh Commercial Bank
Kristy Duffy has been promoted to Branch Manager in Bremen and Kimberly Strasburg to Branch Manager in Newnan. LaTeisha Potter has been promoted to Customer Service Representative.

Greensboro - Exchange Bank
Chris Jacobs has been promoted to Loan Officer.

Savannah - The Coastal Bank
Division President Tommy Hester has been named Chairman of the Savannah Economic Development Authority’s Board of Directors.

Duffy

Strasburg

Potter

Jacobs

Hester