GBA e-Bulletin

Community bankers testified May 9 to the U.S. House Financial Institutions Subcommittee about the growing regulatory and compliance burden they face. Georgia Rep. David Scott is a member of the subcommittee, and voiced his view about the need for regulatory balance in our banking system during the hearing. "I'm a strong supporter of Dodd-Frank. I'm also a strong supporter of small financial institutions because in so many communities that's all they have," Scott said during the meeting. "And so as we move forward we have to, I think, dance with sort of a delicate balance here." That�s becoming harder, according to testimony at the hearing from bankers. William Grant, who is chairman, president and CEO of First United Bank & Trust in Oakland, MD, testified on behalf of the ABA. He explained that a conservative estimate of hard-dollar compliance costs for the banking industry is about $50 billion annually, or 12 percent of total operating expenses, and rising. Scott asked witnesses for specific examples of the growing burden, and we�ll be set to share Georgia examples with him next week (May 15-17) on our annual GBA visit to Washington, D.C., with more than 40 member bankers. If you�ve got some specific stories you want to make sure we share, please send them to GBA Chairman Rick Whaley or GBA�s Joe Brannen and Elizabeth Chandler. We�ll be meeting with the Georgia Congressional delegation and with representatives of the FDIC, OCC, Federal Reserve and CFPB.

Bill Loyd, formerly with Community Bank & Trust in Cornelia, was recognized Sunday evening for his years of service to the Georgia Banking School. Bill has been the Georgia Banking School Director since 2002 and has served on the school faculty for 30 years. Bill recently accepted the position of Associate Vice President for Institutional Advancement at Piedmont College and has turned the gavel over to Darron Burnette, President, Sea Island Bank, Statesboro. "The Georgia Banking School simply wouldn't be what it is today without Bill Loyd's involvement for the past 30 years," said Joe Brannen, GBA President and CEO. "Generations of Georgia bankers have benefitted from his wisdom and insight, so we can't thank Bill enough for his service to the school and our industry. Bill always would tell students that 'life is a journey,' so on behalf of the Georgia Bankers Association and our members, I want to extend to Bill all the best wishes in the next step of his journey."

Two years of hard work paid off for eight Georgia bankers who graduated from the Southern Operations and Technology School, which ran concurrently with Georgia Banking School last week in Athens. Offered in cooperation with the banking associations from Alabama, Florida, Louisiana, South Carolina and Tennessee, the purpose of this school is to strengthen student's management skills and regulatory and compliance awareness, and to help them understand the practical application of current technologies and products in banking. Congratulations to the following Georgia bankers who graduated from the school this year:

A trend has developed that shows regulatory scrutiny on Unfair and Deceptive Acts and Practices (UDAP) and Fair Lending issues are leading to lower CRA ratings. The trend is outlined in a May 8 American Banker article, and we've heard directly from members about the heightened attention to Fair Lending issues. The OCC released ratings of 28 banks last month, with five of those banks having their CRA ratings lowered to "Needs to Improve." Three were downgraded specifically related to UDAP and fair lending violations. Also in play, according to the article, is the CFPB in its new role. "Although the bureau does not have authority to enforce CRA, it has a broad mandate to root out fair lending violations, and plans to coordinate closely with the prudential regulators to ensure those findings are factored into CRA ratings," the article says. Banks are encouraged to pay close attention to their Fair Lending policies and to maximize CRA efforts. For a CRA refresher, we've got a CRA Review and Update Webinar coming up May 21, and GBA's next Fair Lending seminar is already on the calendar for Oct. 16. Also, GBA Strategic Partner, the Senior Housing Crime Prevention Foundation (SHCPF) is one possible avenue to help you with CRA investments. SHCPF investments are eligible for CRA credit and help the foundation provide safe and secure living environments for our nation's senior housing residents and our nation's Veterans homes through the operation of the nationally-acclaimed Senior Crimestoppers program. Click here for more details and contact information. We hope you'll take advantage of these resources to help with your compliance efforts.

Banks would be required to get consumer opt-in consent for overdrafts on paper checks, be limited to charging one overdraft per month and six per year, and be prohibited from adjusting the posting order of transactions under legislation introduced this week by New York Rep. Carolyn Maloney. The legislation is titled the Overdraft Protection Act. Forty-six other Representatives have signed on to the measure. Maloney introduced similar legislation in 2009. With questions or comments, contact Joe Brannen, 404.420.2026, or Elizabeth Chandler, 404.420.2027.

As it looks to wind down the bank investment component of the Troubled Asset Relief Program (TARP), the U.S. Treasury Department has announced it will move ahead with more auctions of Capital Purchase Program (CPP) investments. In a May 3 posting on its website, Treasury outlined three approaches it plans to take with the 343 banks that still have CPP investments. It says it will likely hold the CPP securities of those banks that it believes will have the ability to repay over the next 12 to 18 months, work with banks to allow limited restructurings of CPP investments in the context of mergers or capital raises, and hold auctions for TARP securities, either for individual banks or in pools. Treasury auctioned six investments earlier in the year, and the results were in line with its expectations, it said. Treasury invested a total of $245 billion nationally in bank programs, and has recovered $264 billion through repayments and other income, including $817.6 million from Georgia banks. Eighteen Georgia banks currently have CPP investments.

The Georgia SSBCI (State Small Business Credit Initiative) Program is providing $48 million in funding to lenders to provide credit enhancements to help bridge the gaps that otherwise prevent the approval of sound small business loans. On May 23 at the Atlanta Marriott Century Center, the Georgia Department of Community Affairs will conduct a seminar to discuss the three new Georgia credit enhancement initiatives: the Georgia Capital Access Program (GCAP); the Small Business Credit Guarantee (SBCG); and, Georgia Funding for CDFIs. The State of Georgia SSBCI is flexible and streamlined for lenders, with a delegated lending model that minimizes risk, lowers exposure, strengthens marginal loans, and offers opportunity for CRA credit. A panel of federal bank regulators is on the agenda to help bankers understand how the regulators will view the bank's participation. Moderating the panel will be DBF's Steve Pleger. For more information about the Georgia SSBCI Program, visit www.georgia-ssbci.com. Click here for the May 23 SSBCI seminar flier containing registration information and other details.

Georgia's 60-day mortgage loan delinquency rate dropped 4.5 percent between year-end 2011 and the end of the first quarter this year, from 6.68 percent to 6.38 percent, according to TransUnion. On a year-over-year basis, Georgia's 60-day mortgage loan delinquency rate dropped 9.8 percent from 7.07 percent. Nationally, the mortgage delinquency rate fell to 5.78 percent, its lowest point since the first quarter of 2009. The rate of borrowers 60 or more days past due declined by 3.38 percent from the fourth quarter of 2011 and 6.6 percent compared to the same quarter last year. "To see that quarter over quarter, and year over year, more homeowners were able to make their mortgage payments is certainly welcome news," said Tim Martin, group vice president of U.S. Housing in TransUnion's financial services business unit. "Before this, we saw two quarters of delinquency increases and while we are still about three-times above the pre-recession norm, this should mark the start of consistent improvement each quarter." Here's a link to the TransUnion press release with more details.

Georgia and Atlanta are among the most friendly places in the U.S. for small business according to an online survey published this week. Georgia is the sixth friendliest small business state and Atlanta ranks fifth among cities. The state got high marks for ease of starting a business, networking programs and business optimism. Here's a look at the interactive map of Georgia and some of the more detailed survey responses.

The (old) economy is never going to rebound; it is in a process of fundamental transformation. What we know about growth, risk, scale and customer value is all changing. We are already seeing a culling in businesses that were strong players only a few years ago: Hollywood Video, Borders and a number of banks come to mind. But this kind of change is nothing new. Join Dr. Randy Harrington, CEO of Extreme Arts and Sciences, Eugene, OR, as he tells the story of three leaders that have taken service, manufacturing and health care businesses from the edge of failure to robust success. He will share the key learning points necessary for bankers facing the future. The message for banking is clear, it is critical to be able to assess and identify the real opportunities and leaders that are going to win in the "reboot" of the global economy. And, Randy will give you the tools to do just that. His talk is going to be a great way to wrap up GBA's 2012 Annual Meeting. Get more detailed information by clicking on the meeting website. With questions about the meeting, please contact GBA's Susie McGehee at 404.420.2010.

There's a nice article in this month's Georgia Trend magazine about Larry Kuglar, retired president and CEO of SouthCrest Financial Group and GBA Chairman in 2002-2003. The feature chronicles Kuglar's banking career as well as his service to Cedartown and Polk County. "Community banking is special because of local decision-making, the personal relationships you build," Kuglar says in the article. "It's the fact that not only do you have to concern yourself with the bank, you have to concern yourself with the community. You have to have that morning coffee club you go to and listen to their thoughts. You're involved in civic clubs, churches, the chamber of commerce." Here's a link to the full story.

Best S&P First Quarter in 14 Years Drives Good Quarter for GBA Plan Participants

First quarter 2012 was another quarter of significant growth and solid performance. It was the best first-quarter performance for the S&P in 14 years. For GBA Retirement plan participants, the investment returns of both investment managers, Reliance Trust Company and Atlanta Capital Management, performed well against major market indexes and other competitive funds and models. Please refer to this quarter's update for detailed returns. Both firms continue to focus on high-quality stocks and mutual funds to help minimize risks in the portfolios and funds. The LifeStyles^SM portfolios are a great way to ensure participants are well diversified and to allow participants to make investment decisions in a simplified way. Our online readers also have access to the first quarter 2012 investment newsletters produced by Reliance Trust Company and Atlanta Capital Management. Members of the GBA Master Trust have ongoing investment education for their participants through annual
re-enrollment meetings and an enrollment DVD or online video. The GBA Retirement Services, Inc. Board of Directors continues to meet quarterly to review the investments and administration of the Master Trust. The board is comprised of bankers who know the business and help produce the greatest results for their banks, their employees and other banks and bankers participating in the Trust. Under the Master Trust, Reliance Trust Company serves as Trustee, which helps reduce some of the liability a bank would have when serving as Trustee of their own plan. Alliance Benefit Group, third party record keeper for the Trust, does an outstanding job providing administration for the Master Plan, with the option for banks to consolidate payroll services with their 401(k) Plan. Please call Mandy Richards at 404.420.2025 for information about how GBA Retirement Services can help design or improve your retirement plan.

Click the link here to see the ABA's May 2012 Status of Important Cases Banking Docket. Thanks to the ABA's Office of the General Counsel for providing this for GBA�s Bank Counsel Section members.

You can still register for GBA's Fraud Seminar coming up May 16. Attendees will learn about all forms of external bank fraud including counterfeit checks, new account fraud, identity theft, e-mail scams and much more. Highlights include ATM / debit card skimming (there will be some captured skimmers for show-and-tell purposes), internal fraud investigations / internal fraud interviewing techniques, online fraud (internet/mobile banking), and tax fraud and its threat to banks. GBA will host the Fraud Seminar May 16, at Idle Hour Country Club in Macon. Registration is $225 for members. Steve Cross with SunTrust will be the instructor. Click here to register online. With questions, call GBA's Courtenay Pope at 404.420.2015.

Complex Construction and Commercial Loans Focus of Advanced Documentation Seminar

GBA will host its Advanced Loan Documentation Seminar May 24 at Idle Hour Country Club in Macon. This seminar will focus on more complex and problematic aspects of construction and commercial loans. Prevention of loan losses through implementation of proper loan structuring and documentation techniques is the objective of this seminar. Registration is $225 for members and $175 for any additional registrations from the same institution. Mike Allen with State Bank & Trust will lead this seminar. Click here to register online. With questions, call GBA's Courtenay Pope at 404.420.2015.

Safety Deposits, Teller Line Management and Commercial Loans among Highlighted Offerings

A GBA Webinar is a great way to quickly get the training you need right from the comfort of your office. Here is a sample of upcoming offerings. Check the Calendar of Events for any webinars you are interested in at www.gabankers.com.

All webinars are live and allow time for questions and answers. The $255 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 contact GBA's Courtenay Pope at 404.420.2015.

Here are the instructor-led AIB online classes offered in June. These courses are instructor-facilitated with weekly assignments but 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..

Legislation for mandatory Electronic Lien and Titling (ELT) in Georgia was signed by Gov. Nathan Deal earlier this month. Wording in the bill requires participation in the GA ELT program as of Jan. 1, 2013. No exceptions to the requirement are listed. GBA is pleased to announce the renewal of its endorsement of DDI as a GBA Strategic Partner and as GBA's preferred provider of ELT. If your bank makes any auto loans, you'll want to give Decision Dynamics, Inc. (DDI), a call. DDI can help make compliance with the new law easy for your bank. DDI's Premier eTitleLien� product allows banks to start electronic vehicle titling with the Georgia Department of Revenue with no upfront costs, support fees, software to install or monthly minimums. For more information about how Premier eTitleLien� works, please contact Ann Gunning at 803.808.0117.

Reliance Trust Company, headquartered in Atlanta, is one of the largest independent trust companies in the country with more than $81 billion in assets under management and administration and a leading provider of personalized financial services for individual, corporate, and institutional clients. Reliance can add fee-based revenues through financial advisory services to individual and business customers, directors and bank employees. Services include:

Wealth Management and Personal Advisory Services

Separate Account Management

Money Manager Consulting

Trust and Fiduciary Services

Financial, Estate, and Tax Planning

Retirement Plans and Investments

Outsourcing Services to Financial Intermediaries.

The Georgia Bankers Association offers free job posting resources for our member banks. These listings can be viewed online or through our print publication, the GBA Bulletin, mailed every other week. Resume postings are also available. For more information, please contact Kenyetta Parks at 404.420.2035.

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 David Oliver and Bogan Brannen.

Our sympathies to the family and friends of Bill Estes, who recently passed away. Estes retired from the Federal Reserve Bank of Atlanta in 2009 where he was head of bank supervision.

Kim Kennedy has joined the bank as Assistant Vice President and Branch Manager of the Veterans Blvd. Branch.

Paul Nash will succeed John Walsh as OCC�s senior deputy comptroller and chief of staff beginning May 21.