Legislature Has Busy Week - Several Bills of Interest Receive Action

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:

• Crossover Day Next Week - Rules Committee Players

• Speaker's GREAT Plan Killed in House

• Three Foreclosure Bills Reported

• Appraisal Bill Passed Senate

• House Passes REIT Bill

• House Committee Reports File Freeze Bill

• Wire Transfer Bill Reported from Committee

• Home Inspector Licensing Bill Passes Senate

• Mortgage Satisfaction Bill Expected on Floor

• Infrastructure Bank Bill Passes House

• Watercraft Titling Bill Passes House

Please contact GBA's Elizabeth Chandler at (404) 420-2027 with questions about any of these issues.

Demarest Strategy Group to Facilitate GBA Roundtables

GBA is pleased to announce that Demarest Strategy Group will facilitate the GBA Roundtables beginning April 1.  The Roundtable program, developed in early 2007 in partnership with Mike Odom of Great Oaks Advisors, LLC, has been very successful in offering a forum for members to share ideas and best practices.  Odom has recently accepted the opportunity to join the senior management team at The Coastal Bank in Savannah.  Elaine Demarest, a Georgia CPA, will facilitate the President/CEO Roundtables. She is principal and owner of Demarest Strategy Group in Hilton Head Island, South Carolina.  “Mike has done an outstanding job of organizing and directing the Roundtable program and we wish him well in his new endeavor.  We are delighted that Elaine and her firm have agreed to manage the Roundtables and continue this excellent offering to our membership,” said Joe Brannen, GBA President.  Chrys Henderson will facilitate the Finance/Operations Roundtables.  Chrys, with the Demarest firm for over 10 years, has a career banking background in operations, accounting and technology. The consulting practice has been devoted to management

Comptroller/Fed Vice Chair Say Industry Fundamentally Sound

Comptroller of the Currency John C. Dugan told a Senate Committee this week that while the banking system is fundamentally sound, it is being tested by large and unprecedented credit market disruptions plus the slowdown in the economy.  The economic slowdown and problems in the housing market have led to significant increases in reserves banks carry for such assets as residential construction and development loans; home equity loans; and credit card loans, Mr. Dugan said.   “…these more traditional credit problems are familiar territory to bankers and supervisors,” he said. “The key to addressing them is for bankers to recognize problems early and manage through them, and that is exactly what our examiners are working with them to do.”  

FDIC Releases Year-end Numbers

FDIC has released year-end 2007 data showing commercial banks and savings institutions reported net income of $105.5 billion in 2007, a decline of $39.8 billion (27.4 percent) from the record $145.2 billion that the industry earned in 2006. Although this ended a string of six consecutive years of record earnings for the industry, income was still above the $100 billion mark for the sixth year in a row. Higher provisions for loan losses, primarily due to weakness in residential mortgage and construction loans and sharply lower trading revenue were primarily responsible for the drop in full-year earnings. Six large institutions accounted for more than half of the year-over-year decline in quarterly net income.  

"It's no surprise to anyone that the second half of 2007 was a very tough period for the banking industry," said FDIC Chairman Sheila Bair.  "Weakness in the housing sector and the credit squeeze in financial markets made it a very challenging time for many institutions,” Bair said.  Here's a chart comparing Georgia banks with all banks in the U.S.

Credit Conference Mid-Year Update Scheduled

With the current issues facing bank management today, it’s crucial to keep abreast of vital information needed to survive the challenges and prepare for growth as the economy recovers.  In order to help with this monumental task, the GBA is hosting a 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.  Designed for chief credit officers, CEOs and CFOs, this one-day workshop will include up-to-date information concerning asset quality deterioration in the Atlanta metro area and throughout Georgia.  It will also include a summarization of the critical challenges and

issues facing banks as well as a roadmap for addressing these issues in an orderly fashion.  Some of the topics to be discussed include:

• Retaining well-capitalized status

• Reviving compressed net interest margins

• Finding reasonable funding sources for adequate liquidity

• Dealing with significant amounts of foreclosed assets

• Handling impairment issues when stock values decline

• Maintaining balance between regulators, shareholders and other stakeholders 

With questions, please call Courtenay Pope at (404) 420-2015 or Susie McGehee at (404) 420-2010.  Please click here to register.

Networking Opportunities at Annual Convention

Details are being finalized for GBA’s 2008 Annual Convention slated for June 15-18 at the St. Regis, Monarch Beach in Dana Point, California.  Several social and sporting events have been planned to give you the opportunity to network with your colleagues.  We will kick off the Convention with our Sunday evening “California Dreamin’ ” Reception.  It will feature great food and many fun activities for the entire family.  And no convention would be complete without the traditional golf tournament slated for Monday afternoon at the Monarch Beach Golf Links designed by Robert Trent Jones, Jr.

Analyzing Personal Financial Statements Seminar

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.  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

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

Bank Security Conference Room Block Being Released

The block of rooms reserved at a special rate for Georgia bankers will be released March 9.  If you have not already made your reservation, please call the hotel directly at (912) 233-7722.

• ALLL Methodology changes

• Sample calculations

• Qualitative and quantitative factor discussion

• Consultation on implementation issues

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

National Teach Children to Save Day on April 29

Just a reminder that GBA will offer the following webinars during the weeks of March 10^th and March 17^th:

• BSA, OFAC & Patriot Act – March 11

• Cutting Your Losses for Frontline Personnel – March 11

• Call Report for Banks - Highlights & Pitfalls – March 12

• Ethics and Conflicts of Interest – March 12

• Safe Deposit, the Fundamentals – March 13

• These People Drive Me Crazy – March 13

• Compliance Issues for Commercial Lending – March 18

• Opening Deposit Accounts I: Business Accounts – March 18

• The Art of Asking Questions: Your Key to Bank & Credit Union Sales, Part 1 – March 19

Just a reminder that the following AIB online classes begin the week of March 31.  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 Software.)

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

• Banking Today, 5 weeks, $295

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

• Understanding Bank Performance, 5 weeks, $295

There is still availability in the following AIB Online classes beginning March 24.  Please register as soon as possible to secure a seat in the class.

• Economics for Bankers, 16 weeks, $385

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

• Principles of Banking, 16 weeks, $385

• Sales Manager 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.

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