Legislature Winding Down - Six Legislative Days Left in Session

The General Assembly will be in recess until next Thursday, March 27.  The legislators have six legislative days remaining in the 2008 session to complete their work.  The major hold-up to their adjourning is the adoption of the 2009 budget, and we expect them to make progress on that next week.  GBA publishes a weekly Legislative Update giving our members the latest information about the legislation we are monitoring on your behalf.  Today's edition covers action in the Legislature this week.  Please contact GBA's Elizabeth Chandler at (404) 420-2027 with questions about any of these issues.

• Competing Tax Relief Measures in Legislature

• House and Senate Differ on File Freeze Costs

• House considering Multi-County Tax Payment Bill

• Appraisal Bill Sent to Subcommittee

• Mortgage Licensing Bill Sent to Governor

• Subcommittee to Consider Foreclosure Bills

• Committee to Consider Uniform Security Act

• Uniform Prudent Management of Institutional Funds Act on Committee Agenda

We haven’t heard much recently about the idea to increase deposit insurance coverage for municipal and other government deposits.  However, the FDIC has just released a study that raises significant questions about the advisability of increasing this coverage.  The study was begun in 2006 and covered the range of both private and public sector options for insuring the safety of the deposit.  The study reviewed a number of different options states employ such as having various security pledging requirements.  Georgia is one of the few states, if not the only state, that allows a bank to create a pool of securities to pledge against all government deposits.

FDIC Weighs-in Again on Commercial Real Estate

The Federal Deposit Insurance Corporation (FDIC) has issued a letter re-emphasizing the importance of strong capital and loan loss allowance levels, and robust credit risk-management practices for state nonmember institutions with significant concentrations of commercial real estate (CRE) loans, and construction and development loans. The Financial Institution Letter, Managing Commercial Real Estate Concentrations in a Challenging Environment, complements the principles articulated in the December 6, 2006, CRE interagency statement.  FDIC Chairman Sheila C. Bair said, "It is a good time to re-emphasize the 2006 guidance because a number of banks have significant CRE concentrations, and the weakness in housing across the country may have an adverse effect on those institutions. Banks with CRE concentrations should take steps to strengthen their overall risk-management framework and maintain strong capital and loan loss allowances. We encourage institutions to continue making commercial real estate and [C&D] loans available in their communities using prudent, time-tested lending standards that rely on strong underwriting and loan administration practices."

Annual Convention Offers “Family Friendly” Tours and Activities

Be sure to take part in the one “must attend” event of the year:  the 2008 Annual Convention.  In addition to a world-class program, we are offering several family friendly tours and activities you won’t want to miss.  On Sunday, take to the vibrant seas for an up-close-and-personal meeting with the great Blue Whales (the largest animal on earth!) and dolphins.  On Monday afternoon, wax up your surfboards and head for the water on a “surfin’ safari,” step onto the cobblestone paths of the Old Mission San Juan Capistrano, or gear up for a cycling tour through the quintessential community of Laguna.  On Tuesday, cruise around the harbor in a Duffy Boat gathering “treasures” on a scavenger hunt, kayak down Southern  

Registrations are pouring in for GBA’s Credit Conference Mid Year Update entitled Where We Are: Identifying the Barriers to Recovery and the Opportunities for the Future on Friday, April 18, at the Cobb Galleria in Atlanta.  Speakers include Steve Powell, President of Steve H. Powell and Company, Statesboro; Elaine Demarest, President of Demarest Strategy Group, Inc., Hilton Head, SC; Barry Cohen, Partner, Mauldin & Jenkins, LLC, Atlanta; and Gerald Blanchard, Partner, Powell Goldstein LLP, Atlanta.

GBA will host its Analyzing Personal Financial Statements seminar on Tuesday, April 1 at the Ramada Plaza in Macon.  The registration fee is $195 and Mike Allen, President & CEO of Georgia Trust Bank in Buford, is the instructor.  Designed for credit analysts, branch managers, consumer lenders and entry level commercial lenders, this one day seminar will cover step-by-step the process of analyzing personal financial statements and tax returns.

With questions, please contact GBA’s Courtenay Pope at (404) 420-2015.  Please click here to register.

Some of the topics to be discussed include: 

• Identifying the borrower’s ability to repay your loan from a cash flow analysis

• Identifying  new cross-selling opportunities

• Spotting fraudulent tax returns

• Developing a pattern of logical, analytical thinking

• Examining a personal tax return for hidden information

• Developing an adjusted net worth

• Making valid credit decisions based on careful analysis

• Identifying if income is continuing, verifiable, and recurrent

Just a reminder that GBA will offer the following webinars during the weeks of March 24^th and March 31^st:

• Identity Theft and Data Security – March 25

• The Art of Asking Questions: Your Key to Bank & Credit Union Sales -- Part 2 – March 26

• Detecting "Counterfeit" Scams: Cashier Checks, Online-Chex, Money Grams & More – March 27

• Lending to Self-Employed Individuals, Small Business Owners, Executives & Professionals – March 28

• Opening Deposit Accounts II: Personal Accounts –April 2

• Lending to Service Members – April 3

• Loan Review – April 4

Just a reminder that the following AIB online classes begin the week of April 7.  Please register two weeks in advance to secure a seat in the class.  These courses are instructor-facilitated with weekly assignments.  They 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 Software.)

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

• Analyzing Bank Performance, 7 weeks, $745

• Consumer Lending, 16 weeks, $385

• Financial Accounting*, 16 weeks, $485

• Introduction to Agricultural Lending, 8 weeks, $375

• Managing the Bank’s Investment Portfolio*, 6 weeks, $595

• Principles of Banking, Accelerated, 10 weeks, $315

• Today's Teller: Developing Basic Skills* (open enrollment), 8 weeks, $295

There is still availability in the following AIB Online classes beginning April 7.  Please register as soon as possible to secure a seat in the class.

• Analyzing Financial Statements*, 16 weeks, $485

• Principles of Banking, 16 weeks, $385

Please see the AIB Online Course Schedule at www.gabankers.com for a complete listing or call GBA’s Alison Moreau at (404) 420-2034 with questions.

Just a reminder that GBA will host its Loan Documentation for Lenders seminar on Wednesday, April 16 at the Ramada Plaza in Macon.  The registration fee is $195 for members and Thompson Kurrie, Jr. and Harrison Coleman, partners with Coleman Talley, LLP in Atlanta are the instructors.  Designed for loan officers, loan administrators and credit administrators at every level,  this essential one-day seminar will cover the basics of loan documentation and matters to consider before and after the loan closing, including the condition of the collateral, the condition of the title and the condition of the borrowers and guarantors. 

A registration form is enclosed.  With questions, please contact GBA’s Courtenay Pope at (404) 420-2010. 

Some of the topics to cover include: 

• The Loan Closing Checklist: what it will and will not do

  Condition of the Collateral: due diligence

• Condition of the Title: title commitments and endorsements

• Condition of the Borrowers and Guarantors: organizational documents, UCC searches, financial statements

• Loan Documentation: loan commitment letters, loan agreements, promissory notes, guaranties, collateral assignments, Letters of Credit, Credit Memos

Mark Your Calendar for Next Compliance Peer Group Meeting

The next Compliance Peer Group is scheduled for April 17 at the Idle Hour Country Club in Macon.  Roger Widdifield, Territorial Manager for the Region IV location of the National Flood Insurance Program, will join us to discuss the

AIB Analyzing Financial Statements will be offered again beginning June 3 for 10 weeks.  This class will be taught by Peter Faser of Security Bank at Cornerstone Bank, Atlanta.  Class will meet every Tuesday from 6 p.m.-9 p.m. ending

Leadership GBA’s  2007-2008 PEP goal is to make at least 65,000 contacts.  To date, just over 1,600 contacts have been reported to the GBA office.  The PEP reporting deadline date is May 31 and we need your help to achieve our goal!  It is easy to report your PEP contacts.  Each time you return from a visit to a school or other group presentation, simply complete a PEP

With the recent economic news regarding the acquisition of Bear Stearns and the emotionally charged stock market, Reliance Trust Company, investment manager and discretionary Trustee of the GBA Master 401(k) and Pension Trusts, has released a newsletter with their views on the economy.  It is important to remind employees in 401(k) plans to continue to think long-term when investing.   Reliance Trust Company remains committed to their strategy of diversification and investing in the equity

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Georgia Bankers Association • 50 Hurt Plaza, Suite 1050, Atlanta, GA 30303 • Phone 404.522.1501 • Fax 404.522.9848 • www.gabankers.com