GBA e-Bulletin

ABA Outlines Overzealous Exam Practices – Georgia Bankers Being Heard

The ABA this week sent banking regulators a list of areas in which overzealous examiners and some supervisory rules are destabilizing factors and are inhibiting bank lending to small businesses and other customers. Areas of specific concern include capital, asset classification, funding sources, commercial real estate concentrations, exam reporting delays, Real Estate Settlement Procedures Act compliance and FDIC asset disposition practices. When you read the letter, you'll notice plenty of familiar examples, as we’ve been using these in our own communications with the regulators. Our thanks to our colleagues at the other state bankers associations, the ABA and the bankers at the recent ABA National Conference of Community Bankers for coming together to develop a strong consensus document. "That nationwide input is instructive because the issues noted are not just Georgia issues," said Joe Brannen, GBA President and CEO. "As the letter points out in detail, there are steps that can be taken quickly that would further stabilize much of the banking industry here in Georgia and across the country. We all know that patience, time and the realistic application of long-held regulatory policies, in concert with more reasonable accounting rules and sensible decision-making at the highest levels, will produce a much better outcome for everyone than continuing down the destructive path resulting from today’s policies." If you have questions, contact Joe Brannen, 404.420.2027, or Elizabeth Chandler, 404.420.2027.

We've published our quarterly comprehensive update of the Georgia Banking industry, which is now available here and on our GBA home page. The most current information includes the Georgia summary of the FDIC quarterly banking profile, some of the progress made to help stabilize the industry, updated lists of regulatory and legislative issues and updated stats about bank closures, CPP dividends paid to the government and mortgage modification efforts. If you have questions, contact David Oliver, 404.420.2036, Joe Brannen, 404.420.2027, or Elizabeth Chandler, 404.420.2027.

Credit Union Opposition Continues
We continue to oppose legislation that would expand credit union business lending limits. This week GBA sent a letter to the Georgia Congressional Delegation opposing H.R. 3380, and urging them to oppose efforts to include the measure in any jobs legislation. The legislation would increase the credit union member business lending cap from 12.25 percent of a credit union’s total assets to 25 percent and raise the de minimus level of these loans from $50,000 to $250,000 while excluding other loans from the cap. Of all the credit unions in Georgia that the current cap applies to, not a single one is at or near the current cap of 12.25 percent. The closest an individual credit union comes to this cap is 8.91 percent. As we note in the letter, there is plenty of room left for business lending by credit unions in Georgia without increasing this statutory cap. If you have questions, contact Joe Brannen, 404.420.2027, or Elizabeth Chandler, 404.420.2027.

There were a few news stories of note this week about Georgia banks as well as some friends of the Association. Of course, most of these stories were not the most pleasant to read or hear because of the continued economic issues that are all too familiar, but in general they did do a good job of providing a balanced view of the ongoing effects of the bad economy. Hans Broder, CEO of Enterprise Banking Company, McDonough, was featured in a National Public Radio report about the effects of bank closures on communities. Hans does a good job of summarizing the climate. The story also covers the effects of regulatory actions, including concerns voiced by U.S. Sen. Johnny Isakson about accounting issues and Rep. Lynn Westmoreland about the need for more capital investments in community banks. In another story from the Atlanta Journal Constitution, Joe Brannen was quoted about the lingering effects of high unemployment and the economy on the fourth-quarter banking performance in Georgia. In the same story, Leonard Moreland, president and CEO of Heritage Bank, Jonesboro, gives a specific example about the drop in loan volume he's seen as one factor in the decline in total loans and leases throughout Georgia. And, in somewhat brighter news, one of GBA's Strategic Partners was featured in a L.A. Times story about how some banks are working to repair trust in their brands. Tim Pannell, CEO of Financial Marketing Solutions was quoted in the story.

Fed Beige Book Notes Soft Loan Demand
Loan demand in the Atlanta Federal Reserve District is soft, according to bank reports provided for the most recent Federal Reserve Beige book released this week. ”Banks reported having ample liquidity, but remained cautious of reducing cash reserves. Weak loan demand, particularly related to business expansion, continued to be noted by banking contacts throughout the region," the report said. Overall, the Atlanta district reported mixed economic activity. Retailers reported slightly slower traffic and sales, tourism spending increased, home sales and construction softened, freight demand improved slightly, temporary agencies reported increased job demand, and recent wet weather and cold temperatures have negatively affected winter crops in Georgia and Alabama and limited farm work in most areas of the District.

Risk Weighting of FDIC-Backed Assets Clarified
The federal banking agencies last week clarified the risk weights for claims on or guaranteed by the FDIC for purposes of banks' risk-based capital requirements. Direct claims on and claims unconditionally guaranteed by the FDIC may be assigned a zero percent risk weight. Exposures that are covered by a conditional guarantee, such as FDIC loss-sharing agreements, which include contractual conditions acquirers must meet, may be assigned a 20 percent risk weight, the agencies said.

Checking Infrastructure Changes Complete at Federal Reserve

Paper check processing ended at the Atlanta Federal Reserve office Friday Feb. 26. With that, all paper check processing is now handled at the Cleveland office. The Atlanta office serves as the Reserve Banks' processing location for electronic check processing. This completes the reduction in paper check processing infrastructure that was begun in late 2003. "The movement to a single paper check processing site is recognition of the industry's success in moving to more efficient electronic solutions for clearing checks," said Patrick K. Barron, first vice president of the Federal Reserve Bank of Atlanta and Retail Payments Office director said in a news release. "The changes we have implemented to our paper check infrastructure position us well to continue to meet the needs of the nation's payments system. At the same time, they have been difficult for our organization as we have been required to reduce our staff."

FFHA Extends Home Refinancing Program
The Federal Housing Finance Agency this week extended the Home Affordable Refinance Program administered by Fannie Mae and Freddie Mac to June 30, 2011. The program was slated to expire on June 10, 2010. The American Bankers Association and four housing trade groups, in a Feb. 18, 2010 letter to Treasury Secretary Timothy Geithner and FHFA Acting Director Ed DeMarco, emphasized that HARP is just as critical today as it was when it was introduced last year. To read the trade groups’ letter, click here. To read more, click here.

Operations & Technology Conference a Success

GBA's Operations and Technology Committee put together an outstanding conference this week. Bankers and associate members gathered to hear experts cover the most important topics facing senior operations and technology managers in banks throughout Georgia. In addition to hearing these industry experts, attendees also had plenty of time to discuss their own needs during a networking session. Thank you to our exhibitors: CompuNet, Inc., CoNetrix, Consolidated Banking Services, Inc., GACHA, Harland Financial Solution, Jack Henry & Associates, Inc., Lending Express, and Safe Systems, Inc. A special thank you to our sponsors: Gladiator Technology, Inc. for the reception, Safe Systems, Inc. for the continental breakfast and Fiserv, Inc. for the refreshment break. Please click here for more information about these companies. Look for a link to pictures from the conference and our exhibitors in next week's e-Bulletin. For more information about the conference or about volunteering to serve on the committee, please contact Marybeth Jones at 404.420.2032.

Ed Pope and Debbie Burton, F & M Bank, Washington, at the Operations and Technology conference.

Wells Fargo Senior Economist, Mark Vitner to Speak at Annual Convention
Join Mark Vitner, Senior Economist with Wells Fargo in Charlotte, NC, as he talks about the US economic outlook, financial markets including his forecast about inflation, interest rates and credit quality. He will also share his views about what’s ahead for the economy during the next 12 months as well as provide his thoughts on the Georgia outlook. The Convention will be held June 13-16 at Charleston Place in Charleston, SC. We'll mail brochures with details about the Convention in the coming weeks. GBA has reserved a block of rooms at Charleston Place at a reduced rate of $299 per night for single or double occupancy. Make your reservations may by calling the hotel directly at 843.724.8410. The cut-off date for reservations is May 21. With questions, please call GBA’s Susie McGehee at 404.420.2010.

Bank Trainer Peer Group Meeting Rescheduled for May 6
Please join us for the GBA-U’s Bank Trainer Peer Group, which is now Thursday, May 6, at the UGA Center for Continuing Education Conference Center, Athens. June Somers will provide great information and some important tips on adult learning. We will end the program with our roundtable discussions on Teller Training, Researching Training Topics, IRAs and Training Reg CC. With questions, contact Alison Moreau at 404.420.2034.

This three-year school is designed for first-level and mid-level managers to provide a thorough understanding of critical banking functions such as asset-liability management, lending, human resource management, sales and marketing, investments and technology. In addition, the legal, regulatory and economic environments are analyzed from the perspective of the banking industry. Enroll now and join the Class of 2012. This year’s session will take place May 2-7 at the University of Georgia’s Center for Continuing Education in Athens. For more information, please contact Marybeth Jones at 404.420.2032.

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 at 770.953.4500. For more information or to register, contact GBA’s Marybeth Jones at 404.420.2032.

Internal Security Risks to Be Addressed at Annual Security Conference
With the widespread economic pressures, banks are also confronting new security and legal issues associated with employee financial struggles. Join Steve Greene, Helms & Greene, LLC, Atlanta, with an up-to-date discussion about the state and federal legal standards that affect how banks address employee financial challenges such as bankruptcy filings, garnishment orders, foreclosures on property, and returned checks. We will also examine the legal standards that affect how banks handle suspected employee misappropriation and violation of bank policy, in cases of financial irregularities. Finally, Steve will discuss pre-employment measures the regulators expect banks will install, to minimize the likelihood that employees will engage in financial wrongdoing. 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 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.

Detailed Bank Analysis Available at Southeastern Georgia Community Bank Symposium - March 24
If you’re a Southeastern Georgia community banker, don’t miss the opportunity to hear from leading experts in the banking industry AND receive timely written material that could help better your bank. Written materials available at the Southeastern Community Bank Symposium include:

The symposium is slated for March 24 at Forest Heights Country Club in Statesboro. Take advantage of the special pricing structure by registering several people from your bank for this event. The registration fee is $95 for the first attendee and $75 per person for each additional attendee. With questions, please contact GBA’s Susie McGehee at 404.420.2010.

Dr. John McKissick, Professor and Extension Economist with UGA’s Department of Agriculture, will enlighten Georgia agribusiness lenders on the status of the current market at the Rural Development and Lending Conference, scheduled for May 13-14 at the Savannah Riverfront Marriott. Other topics include real estate trends, a regulatory update, current legal issues in agriculture, a peer exchange, and Ag credit analysis and review. Click here for the full agenda. For hotel reservations, please call the hotel directly at 912.233.7722. For more information about the conference or to register by phone, please call GBA’s Marybeth Jones at 404.420.2032.

Learn to Prevent e-Mail Scams, Counterfeit Checks during GBA's Fraud Seminar: March. 11
Thwarting email-scams, check fraud and counterfeit checks can dramatically reduce your losses. Learn all the latest tricks of the trade 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.

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. 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.

New Seminar! Introduction to Cash Flow Analysis: March 24
Designed to assist participants in understanding how to craft a statement of cash flows, improve the quality of credit decisions and increase the understanding of how a potential borrower will repay their loan. This program is an introduction and a practical approach to cash flow analysis. 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.

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

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

Learn about Judgments Levies and Garnishments at Collections and Recovery Seminar
GBA will host its Collections and Recovery seminar on Wednesday, April 7, at the Idle Hour Country Club in Macon. The registration fee is $225 for members. Gary Moser with Moser, Rose & Cox in Valdosta is the instructor. Designed for personnel responsible for recovering money or collateral on behalf of the bank, this one-day seminar will provide a comprehensive overview of the fundamental legal principles involved in the collection process. Topics to be discussed include collateral documents, litigation process, borrowers defenses, judgments, levies, garnishments, and much more. With questions, please contact GBA’s Courtenay Pope at (404) 420-2015.

New Date! 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 decision support for choosing appropriate actions. This one-day course will 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. 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.

AIB Online Instructor Led Course: Understanding Bank Performance

Understanding Bank Performance is a five week instructor-led AIB online class being offered the week of
March 29. This course is designed for non-financial professionals throughout the bank or industry who need to understand the basics of bank financial statements and how they are used to evaluate bank performance. The price of the course is $315. This course is 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.) There is still availability in the following AIB online classes beginning March 22. Please register as soon as possible to secure a seat in the class.

Need an IRA Refresher? GBA Has Just the Course
Get ready for IRA season with this brand-new AIB online self-paced course. Introduction to IRAs is a new, 30-minute, online self-paced course that provides key concepts about basic IRA product features and benefits, and contribution and distribution requirements. This course discusses traditional, rollover and Roth IRAs, including the new conversion rules, as well as Simplified Employee Pension Plans and SIMPLE Retirement Accounts. The course also presents information about IRA tax benefits and penalty calculations. Students will gain a greater understanding of how IRAs work, which will enhance their ability to increase IRA sales and improve customer service. Also ABA includes a printable “Reference Guide." The cost of this course is $95 for members. With questions about either of these courses, please contact GBA’s Alison Moreau at 404.420.2034.

Register for GBA Webinars Today
GBA will offer the following webinars the week of March 8:

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.

Overdraft White Paper Available
GBA Strategic Partner Strunk and Associates has written an article outlining new rules, proposed legislation and key things banks should be aware of related to overdraft programs. It's a good overview, so we've made it available to our members here.

Keep up with Residential Lending Compliance Solutions

Residential lending regulations change frequently and GBA Strategic Partner LendingXpress has a great tool to help GBA members meet new compliance guidelines. From valuations that are HVCC compliant to document solutions that meet the new disclosure requirements, LendingXpress helps GBA members stay current and make sound lending decisions. With LendingXpress, there is no software to purchase, there are multiple service providers to meet all your residential lending needs, and by using the platform you are supporting the GBA. Products that are available with LendingXpress include flood certifications, appraisals, AVM’s, lien position and full ALTA title products, closing services, document services, tax verification and fraud products. LendingXpress is marketed to GBA members by Federal Flood, the endorsed flood certificate provider to the GBA. Please contact Marshall Jobe with Federal Flood at 800.449.3322 or Kymberly Sims with LendingXpress at 817.788.0546 to schedule a demo today. Be sure to ask about the Loan Guarantee Program for second-position and HELOC portfolios. It is one hot program right now!

How to Get Hacker-proof Data Security While Cutting Costs
NuVox delivers customized managed communications services, information technology, data, security and voice solutions designed specifically for banking customers whose data must remain secure. Banks know that nothing is more important than earning the trust of their customers. In today’s fast-changing technological marketplace, banks must operate with top-of-the-line, hacker-proof technology while reducing cost of ownership along the way. NuVox delivers hacker-proof technology through leading Multi Protocol Label Switching (MPLS)-based wide area private IP network while reducing the cost of ownership. NuVox also has an excellent VoIP service which allows voice and data to reside on the same T1 line, with voice communication always getting priority. Further, the NuVox network’s dynamic bandwidth capabilities can also increase bank’s connectivity to a single full T1 (1.544 MBS) to 8 bonded T-1’s. Additionally, banks can also secure extra voice lines, in effect, tripling their bandwidth while cutting costs of the overall network. To learn more about how your company can benefit from NuVox and its product offerings, please contact Robert Powell directly at 404.564.1639 or Justin Hill at 404.564.1641.

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.

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.

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
Acworth - NorthWest Bank & Trust
Chris Gruehn has been promoted to Executive Vice President and Chief Credit Officer.

Albany - AB&T National Bank
Wayne Whitfield has joined the bank as Senior Vice President and Director of Mortgage Banking.

Dalton - First Bank of Dalton
Gary Middleton has been named President and CEO.

Vidalia - Darby Bank & Trust Co.
Philip Williams has been named Senior Vice President and Market President for Toombs County.