Consumer Group Says “No” to Credit Union Expansion
The National Reinvestment Coalition, which represents more than 600 consumer organizations, has written key members of Congress opposing an expansion of credit union authority to add underserved communities to their fields of membership will further divert them from serving people of small means. In their letter, the consumer advocacy group called on Congress to establish a means of ensuring that credit unions expanding to underserved communities actually serve low-income people.  “We are glad other organizations are seeing this same trend,” said GBA Chairman Bobby Carmichael, Chairman and CEO of Commercial Bank & Trust in LaGrange.  “We have talked about how a credit union in Warner Robins has expanded into Athens/Clarke County because that area is designated as low income because of the student population.  Hopefully the policy makers will listen carefully to the facts about credit unions’ unbridled expansion and take action to ensure they are abiding by the rules.” 

Networking at Annual Convention
Details are being finalized for GBA’s 2007 Annual Convention for June 17-20 at The Ritz-Carlton, Grand Cayman in the Cayman Islands.  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 “Barefoot on the Beach” Reception.  It will feature great food and many fun activities for the entire family.  A golf tournament is slated for Monday afternoon at the Ritz-Carlton’s Blue Tip Course and is limited to 60 participants. Also scheduled on Monday are the GBA Insurance Trust Business and Breakfast and the BankPAC Reception.  We will close the Convention in grand style with the Chairman’s Farewell Gala Reception and Dinner.  Register online or call GBA’s Susie McGehee at (404) 420-2010.

Banks Break Earnings Record – Again
The Federal Deposit Insurance Corporation (FDIC) recently released the 2006 earnings report for commercial banks and net income again eclipsed the previous record set in 2005. The improvement in earnings can be attributed in part to strong growth in non-interest income at large banks, higher net interest income and lower expenses for bad loans.  Among the major findings:

• Troubled residential mortgage loans increased during the fourth quarter

• Industry earnings remained strong through the fourth quarter

• Loan growth slowed in the fourth quarter, while deposit growth soared

Georgia-chartered commercial banks continue to perform well when compared to their peers nationally:

Indicator	All U.S. Banks	Georgia Banks
Return on Assets	1.3%	1.3%
Return on Equity	13.1%	12.3%
Percent Unprofitable Institutions	7.3%	10.2%*
Percent of Institutions with Earnings Gains	59.6%	77.8%
Non-current Loans & Leases to Total Loans & Leases	0.8%	0.7%
Equity Capital to Total Assets	10.2%	10.8%
*Note, this percentage is somewhat skewed due to the large number of de novo banks in Georgia that have yet to reach profitability.

Legislature in Recess
The Georgia General Assembly is in recess this week and next week.  However committee meetings are being held.  GBA's Elizabeth Chandler testified on Thursday before a study committee considering H.B. 276 which defines biometrics and the ways governments, businesses and others can use biometric identifying information.  The bill also establishes penalties for misuse of the information.  Elizabeth told the study committee that although banks are exempted to allow for the collection of fingerprints in conjunction with cashing checks or the use of other biometrics to access certain areas of the bank such as the safe deposit box area, there are a number of provisions that could be problematic in terms of recordkeeping and other operational details.  She cautioned the committee not to pass legislation that would prevent the use of emerging technology that helps banks prevent identify theft.  Next week, the House Banks and Banking Committee will meet to consider S.B. 70, legislation introduced at the request of the Department of Banking and Finance.  Among the provisions of most interest to bankers:  provides parity between state and federally chartered banks by removing certain limits on real estate loans for state banks; statutory capital base is redefined to limit the impact of goodwill and other intangibles after a merger to prevent artificial increases in loan limits, investments and fixed assets; clarifies that proxy voting by electronic means is allowed; and, eliminates the need to form an interim bank when a share exchange transaction occurs.  Please click here for a summary of the bill.

National Teach Children to Save Day Scheduled for April 24
Many young Americans don’t know the financial facts of life.  For many schools, financial education, like art or music classes, is a luxury they just can’t afford.  At present, as many as 86% of students have never taken a course in personal financial education. That’s why ABA Education Foundation, along with Leadership GBA, is again taking steps to lead kids on the path to a positive financial future.  On Tuesday, April 24, bankers nationwide will trade in their balance sheets for blackboards and teach young people their financial ABCs on National Teach Children to Say Day.  “Bankers are experts at money management so it’s a natural fit for us to be involved in financial education efforts,” said Leadership GBA President Jay Forrester of Georgia Bank & Trust Company in Augusta.  “Just as your local firefighters and police officers are knowledgeable in community safety courses, we have the knowledge and skills to fill the financial education gap.  We should do everything we can on National Teach Children to Save Day to help fill that gap and prepare our children for a positive financial future.”  Preparation for your presentation is easy, thanks to the ABA Education Foundation.  They have created two turnkey resource kits (Grades K-6 and Grades 7-12) that are easy to use and cost-effective.  Included in the kits are lesson plans, age appropriate activities, a quiz for parents and website suggestions.  Kids will learn the concept of saving, how to budget and how to determine needs vs. wants.  To order either resource kit, simply call the ABA at 1-800-BANKERS or visit the ABA website.  If you have any questions about National Teach Children to Save Day, please call GBA’s Jennifer Stevens at (404) 420-2024 or PEP Chairman Pete Garrett with Bank of Upson in Thomaston at (706) 647-5426.  Please join your colleagues in reaching even more students and make this one of the most successful educational events in GBA and ABA history.

Collections and Recovery Seminar
GBA will host its Collections and Recovery seminar on Thursday, March 22, at the Macon Ramada Plaza from 9 am to 4 pm.  The registration fee is $195 and Gary Moser with Moser, Rose & Cox in Valdosta will lead the workshop.  This one-day seminar will provide a comprehensive overview of fundamental legal principles involved in the collection process.  After completing the seminar, participants will have a working knowledge of the general collection process. Some of the topics to be covered include: collateral documents, the litigation process, judgments, levies and garnishments.  Gary invites you to call him at (229) 244-1527 should you have specific issues that you would like him to address at this seminar.  Register online or call GBA’s Courtenay Pope at (404) 420-2015 or Susie McGehee at (404) 420-2010 with questions.

47th Annual Leadership Conference
Plans are well underway for Leadership GBA’s 47^th annual Leadership Conference.  This year’s conference will be held July 15-18 at the Ponte Vedra Inn & Club in Ponte Vedra, Florida. Attendees will receive up-to-date information on the economy from Chris Lowe with FTN Financial in New York City; an examination of remote deposit and why it’s so critical to community banks from Lee Wetherington with Goldleaf Technologies in Hahira; a review of the current state and federal legislative issues affecting the banking industry as well as excellent leadership training from Taye Cairnes of Taye Cairnes, Inc. in Charlotte, NC. Registration materials will be mailed in April.  Register online or call GBA’s Susie McGehee at (404) 420-2010 or Jennifer Stevens at (404) 420-2024 with questions.

Leadership Note$ eMailed
The second issue of GBA's e-version of Leadership Note$ has been emailed to CEOs and Leadership GBA representatives who are on our email distribution list.  Leadership Note$ is used to tell you about Leadership GBA initiatives, bankers involved in making a difference in people's lives, and resources you can use in your bank and community.  In response to feedback from our readers, we replaced the printed version of this publication with an emailed version, and we trust the interactive features with click-through links will be of benefit.  Please contact Jennifer Stevens at (404) 420-2024 if you would like to become a Leadership GBA representative for your bank.  Also, please click here to be added to the distribution list.

AIB Classroom Courses
AIB classes meet three hours each week for 2 to 15 weeks and will be held at a local financial institution.  If you would like to see a specific AIB course offered in your area or if you have any questions about AIB classroom courses, please contact GBA’s Alison Moreau at (404) 420-2034. Following are two upcoming AIB classroom courses starting soon:

• Principles of Banking, taught by Larry Townsend of The Commercial Bank, Winterville
  Beginning March 29, 10 weeks, $195, text $60.

• Economics for Bankers, taught by Kevin Taylor of Northwest Georgia Bank, Ringgold
  Beginning April 2, 10 weeks, $195, text $79

Register Today for AIB Online Courses
Just a reminder that the following AIB online classes begin on April 2.  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

• Banking Today, 5 weeks, $285

• Understanding Bank Performance, 5 weeks, $295

• Today's Teller: Developing Basic Skills* (open enrollment), 8 weeks, $285

There is still availability in the following AIB Online classes beginning the week of March 26.  Please register as soon as possible to secure a seat in the class.

• Agricultural Lending (Introduction to), 8 weeks, $375

• 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 at www.gabankers.com for a complete listing or call GBA’s Alison Moreau at (404) 420-2034 with questions.

2^nd Quarter Open Enrollment for GBA 401(k) Plans
One of the benefits of being part of the GBA Master Trust is the ongoing education for banks’ participants.  If you are a member bank of the Trust in Groups 7 or 9, a GBA representative will be in your area during the months of March and early April.  If you would like to schedule an employee meeting, please contact Mandy Richards or Josh Latina as soon as possible.  It is recommended that you have a re-enrollment meeting at least once every one to two years to ensure your newer employees fully understand their retirement plan.  Each quarter, GBA staff and/or investment managers are in different areas of the state to assist member banks with these meetings.  As an additional educational tool, an enrollment DVD is also available for members and can be viewed through the GBA website or the Alliance Benefit Group website.  The programs offered through GBA Retirement Services provide flexibility to meet the needs of any bank or associate member who may be looking at adding or changing their qualified retirement plan.  If you are not yet a member of the Trust and would like more information, please contact Mandy Richards at (404) 420-2025 for information on how GBA Retirement Services can help design a retirement plan for your bank.

Status of Important Banking Cases
Our thanks to the Office of the General Counsel of the American Bankers Association for making available the newest edition of the Status of Important Banking Cases to the members of our Bank Counsel Section.  This monthly report gives bank attorneys up to date information on litigation involving banks across the country and is another member benefit for the attorneys in GBA's Bank Counsel Section.  With questions about how your bank's attorney can participate, please call GBA's Kenyetta Parks at (404) 420-2035.

$5 Million “STAMP” Signature Guarantee Bond for Community Banks
The American Bankers Association has announced that the ABA-sponsored insurance program, underwritten by Progressive Casualty Insurance Co., a GBA Strategic Partner, will now provide limits up to $5 million on STAMP Signature Guaranty Bonds for community banks. Banks participating in the Securities Transfer Agents Medallion Program (STAMP), the endorsed program of the Securities Transfer Association, are required to maintain Signature Guarantee Bonds as a guaranty of indemnification to transfer agents.  Historically, the maximum limit available in the market has been $2 million.  Effective April 2, banks that want to guarantee securities with a value greater than $2 million will have to obtain higher surety bond limits.  “We're pleased to provide higher limits to our community banks to allow them to respond to their customers’ needs,” said Edward L. Yingling, ABA president and CEO.  The ABA-sponsored and GBA-endorsed insurance program, which celebrates its 20-year anniversary this month, recently introduced a Privacy Liability product to complement its offering of directors and officers’ liability, financial institution bond, Internet banking liability, employment practices liability and other related insurance products for community banks.  The program will also deliver checks this month to 900 ABA member banks sharing $4.5 million in profits from the American Bankers Professional and Fidelity Insurance Company, the bank-owned, mutual insurance company that reinsures the program.  For more information, please contact Progressive’s Robert Splawn at (800) 274-5222, ext. 37564, or GBA’s Josh Latina at (404) 420-2022.

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 contact GBA’s Kenyetta Parks at (404) 420-2035.

Some of the Services Available Through GBA Services, Inc.

Pledging Pool Program	Thumbprint Signature Program
Georgia Laws Code Book	Georgia Financial Directory
Discounted Check Program	Internet Loan Closing Program
Human Resources Solutions	Checking Club Programs
Discounted Local & Long Distance Program	Bond and D&O Insurance
Non-Qualified Executive Benefits (BOLI)	Trust and Investment Services
Record Retention Guide	Holiday Decals
FinCrime	Financial Industry Pre-Employment Assessments
Job Bank

GBA Services, Inc. is governed by a board composed primarily of community bank presidents who look for the best products and services available.  They do the due diligence for you and you can rely on their efforts.  For more information or to order any of these products or services, please call (404) 522-1501.

Newsmakers:

SunTrust “Most Admired”
Congratulations to CEO Jim Wells and all the associates at SunTrust Banks, Inc. for being named to FORTUNE Magazine’s “America's Most Admired Companies” list for 2007.   The bank is one of 15 Georgia-based companies making the list which will be published in the March 19 edition of the magazine.

Alpharetta - Bank of North Georgia Thomas Sanford has joined the Woodstock office as Business Banking Relationship Manager. Atlanta - One Georgia Bank Hugh Pope has been promoted to Senior Vice President and Commercial Lender. Dawsonville - First Citizens Bank of Georgia Congratulations to CEO Charles Buckner, the officers, directors and staff on the bank’s recent opening. Lawrenceville - Embassy National Bank Congratulations to CEO Chris Fluehr, the officers, directors and staff on the bank’s recent opening.

Sanford

Serving the needs of Georgia Bankers since 1892 Search I Staff I Contact Us Georgia Bankers Association - 50 Hurt Plaza, Suite 1050, Atlanta, GA 30303 • Phone 404.522.1501 • Fax 404.522.9848