A regular electronic publication of the Georgia Bankers Association

www.gabankers.com

 May 2, 2003

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Scholarship Awarded
Congratulations to Daniel Elkon of Atlanta who was awarded the Georgia Bankers Association Scholarship at the University of Georgia’s Terry College of Business. Daniel, who has a BBA in Finance, will be entering UGA’s graduate program. The scholarship was established many years ago by the association for deserving students attending UGA and the school determines the recipient based upon need and academic performance.

 

 

 

Washington Trip a Success
Eighteen bankers representing GBA were in Washington this week meeting with the Georgia congressional delegation and key policy makers.  “With all the new members in our delegation and the importance of the issues before them, we thought it was critical for us to make this visit,” said GBA Chairman Larry T. Kuglar, President of First National Bank of Polk County in Cedartown.  “We had excellent meetings and feel we were able to make our views known,” Larry stated.  

At the FDIC, the key supervisory and policy staff were most interested in our views on the FDIC reform legislation.  There was also some discussion about overdraft privilege products.  FDIC staff reiterated their position that these products were complementary to traditional banking relationships.  At the OCC, Comptroller Jerry Hawke discussed the pending rule that may preempt all or part of the Georgia Fair Lending Act (GAFLA).  The comment period on the proposed rulemaking closed at the end of February.  Mr. Hawke discussed the responsibility the agency has to enforce federal laws that govern national bank activity and indicated his decision on preemption would be made soon.  Should the Comptroller grant preemption for national banks, the 2003 amendments to GAFLA would automatically trigger these same preemptions for state-chartered banks.  At the Federal Reserve, Vice Chairman of the Board Roger Ferguson briefed the bankers on key issues the Fed is focusing on in dealing with monetary policy and the economy.  Governor Ferguson spoke of Chairman Greenspan’s testimony earlier in the day to the House of Representatives and spoke privately about the Georgia economy and supported the belief that the recovery in Georgia could be slower due to our reliance on transportation and hospitality combined with the high number of jobs lost in technology.

At each visit, the bankers emphasized our support for deposit insurance reform including increasing deposit coverage amounts.  An issue growing in importance is the extension of the Fair Credit Reporting Act that expires at the end of 2003.  The law prohibits states from enacting their own reporting requirement laws.  GBA is concerned the bill could be loaded with unfriendly amendments creating new privacy restrictions.  We learned the Realtors are still pushing Congress to pass legislation permanently barring the regulators from granting national banks real estate brokerage and management authority.  We found mixed responses from our delegation.  Most reported hearing from only a handful of bankers opposing the Realtors.  Unless bankers make the effort to write or call their legislators, it will be difficult for Congress to support our position.  There seems to be little interest in Congress to tax credit unions.  Should Congress ever act, though, Georgia law is already in place to tax state-chartered credit unions.  GBA’s website has issue briefs on all these issues in the Federal Issues section.

2003 State Legislative Issues
Governor Sonny Perdue
Lt. Gov. Mark Taylor
Georgia House of Representatives
Georgia State Senate
Federal Legislative Issues
U.S. Congress
Legislative Updates
Legal Issues

Scott Introduces Predatory Lending Bill
Freshman Georgia Congressman David Scott (D-Atlanta) has introduced H.R.1865, The Prevention of Predatory Lending Through Education Act. The bill provides for grants to states and non-profit agencies to educate consumers on the advisability of a particular mortgage loan. Also included is a provision creating a nationwide toll-free number where consumers can report cases of abuse so a database of unscrupulous lenders can be maintained. Rep. Scott is the only Georgia member on the House Financial Services Committee. “We are delighted with Rep. Scott’s approach to education as the key component in preventing predatory lending.  The bill is something law-abiding lenders can support as it would not disrupt the traditional mortgage lending process like we saw happen with the original Georgia Fair Lending Act,” said GBA President Joe Brannen.  Please let Rep. Scott know you appreciate his approach.

GBA BankPAC Update
Since our last report, the following companies, their officers and directors have participated by contributing to the GBA StatePAC:

In addition, officers and directors of the following companies have contributed to the GBA FedPAC:

Thanks to all for your support. If you have questions or need additional information, please contact Elizabeth Chandler at (404) 420-2027.

Calendar of Events
Schools
Conferences
Seminars
Events
American Institute of Banking
Leadership GBA
Personal Economics Program (PEP)
Internet Training

Spanish for Bankers Seminar
Partnering with Workplace Spanish, Inc., GBA is proud to offer Spanish language training for bankers. Workplace Spanish, Inc. pioneered the development of simplified job-specific language training programs. This seminar is designed to establish a foundation and build confidence in Spanish speaking skills including pronunciations, cultural tips, and specific phrases for greeting customers and establishing identity. Spanish banking terminology will cover cashing and depositing checks, opening an account and applying for loans or credit cards. Each participant will receive a textbook and CD or audiocassette. For details, see the enclosed flyer or call GBA’s Edie Canales at (404) 420-2034.

Bank Security Conference a Success
Over 50 bankers attended the second annual Bank Security Conference held last week in Macon. Participants heard speakers discuss the latest in bank security, including crisis management, guidelines for internal investigations, debit card fraud, physical security technology update, and Nigerian counterfeiting scams. Participants enjoyed a reception and dinner at the Georgia Music Hall of Fame. A very special thank you to Steve Cross, Area Security Manager for SunTrust Bank, Inc. in Atlanta, for all of his efforts in developing this conference. Steve served as Chair for the GBA Security Committee for four years and in that time was instrumental in building a strong committee that could continue creating quality conferences. In July, the torch will be passed to Kay Moon, Vice President of West Georgia National Bank in Carrollton. Congratulations Kay!

 

Executive Management Academy
The fifth session of the Executive Management Academy will be held May 5 at the Crowne Plaza in Macon and will focus on Asset/Liability Management. Rob Cochran, Senior Vice President and Treasurer at United Community Banks, Inc. in Blairsville, will facilitate the session. Discussion will include the objectives of the investment portfolio, risk/return characteristics of the investment portfolio, portfolio strategies, the purpose of liquidity management, alternate sources of funding, how to measure and monitor interest rate risk, interest rate derivatives and balance sheet strategies. The Executive Management Academy is designed in a peer-to-peer roundtable format and addresses issues of importance to executive management. You may attend all six sessions or select individual sessions based on the content. For more information, call GBA’s June Somers at (404) 420-2012.

Ag Conference Enlightens Georgia’s Agribusiness Lenders
Thanks to GBA Agriculture Committee Chair Lonnie McKinney, Vice President-Special Lending of PlantersFIRST in Cordele, and the 2002-2003 Agriculture Committee for their efforts in having a successful conference two weeks ago at Callaway Gardens. Approximately 30 agribusiness lenders heard speakers discuss the latest topics in the agriculture arena including market trends and an economic overview, commodity hedging, the Farm Bill, legal issues and alternative enterprises. Congratulations to Donald Wilder with the Georgia Development Authority in winning the door prize - a 12 gauge, 31/2 inch magnum pump mossberg model 835 turkey shotgun. Special thanks to the committee for sponsoring the door prize.

Insurance Trust, Inc.
Retirement Services, Inc.
GBA Services, Inc.

For Sale
Summer 2003, Citizens Bank of Laurens County, a division of Citizens Bank of Swainsboro, will offer for sale a modular office with the following specifications:  28’ x 46’; teller counters and check desk; Durawood exterior siding; 8’0” ceiling with recessed lighting; one handicap approved restroom; ADA-approved specifications; vinyl-covered sheetrock walls; commercial grade carpet throughout (vinyl in bath); floor structure designed to support safes; dual 3.0 ton air-conditioning systems; night depository/TL 15 chest for cash; drive-up window with deal drawer; metal under-counter teller cabinets; and alarms with CCTV.  For more information, please call Jeff Cannon at (478) 272-7775.

Some of the Services Available
Through GBA Services, Inc.

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 on any of these services, please contact Renee Valdez at (404) 420-2036.

Pledging Pool Continues to SOAR!
We are excited to continue witnessing the success of the Georgia State Pledging Pool. Numerous banks of all sizes continue utilizing this program, taking advantage of the benefits associated with it!  Administered exclusively through GBA Services Inc., the Program has seen a dramatic increase in awareness throughout the public sector. The Pledging Pool allows for better control of the 110% requirement with far less administration, allowing you, the bank, to better maintain your excess collateral. It also allows for your bank to treat all of the deposits with a “pool” of securities rather than a dedicated method. As one account’s deposit increases, a corresponding amount for collateral does not necessarily need to. To learn more about it, please call GBA’s Renee Valdez (404) 420-2036.

Closing Costs too HIGH?
Are your closing costs for equity loans and second mortgages too high?  Would you like to have a product that will allow your Bank to compete in this growing and competitive equity lending marketplace? Through GBA’s strategic relationship with DSD Enterprises, partnered with Wiesner Insurance Agency, we feel we have found the solution -  Bundled Closing Services.

This program provides an Internet based program designed to assist lenders with processing and closing equity, second mortgage and refinance loans quickly and with less cost.  With the use of this system, lenders now have the opportunity to order all of the products and services necessary to process and close real estate loans of all types through one contact point and one-time data entry.  There are no exclusive use requirements, minimum volumes, or set up fees to take advantage of this technology.  The menu-driven system offers a full product line that includes credit reports, flood determinations, automated property valuations, and the Mortgage Loan Report (MLR).  The MLR allows a lender to view all of the borrower’s mortgage secured liens in 30 seconds, thereby allowing for quick closings.  The provider of the MLR maintains Errors & Omissions coverage for the life of the loan.  The cost to close an equity or second loan can be as low as $100 and refinance loans for $250.  Other real estate loan closing products are also available. If you are interested in learning about this unique program, please contact GBA’s Renee Valdez (404) 420-2036, DSD’s Debra Evans (478) 625-8978 or Mark Wiesner (770) 559-1026.  We believe you will find the cost savings as advantageous as we have!

Latest Bank to Link
Welcome to Heritage Bank, Jonesboro, Leonard Moreland, President, as the latest bank to link to GBA’s website. Please call Lydia Thomas at (404) 420-2039 when your bank is ready to link.

Athens, First American Bank and Trust Company
The bank announces the following promotions: Emory B. Lewis to Board Vice Chairman; Robert D. Heath to President and CEO; Tyler Talley to Senior Vice President and Senior Lending Officer; Rhodes McLanahan to Senior Vice President and Operations Officer; Hudson Wade to First Vice President and Real Estate and Construction Lender; Janey M. Cooley to First Vice President and Senior Trust Officer; Linda H. O'Neal to Assistant Vice President and Marketing Officer; Natalie L. Nix to Banking Officer and Personnel Director; Kera Schaley to Banking and ACH Officer; Teresa Cooper to Assistant Banking Officer and Branch Manager; and Keri S. Moon to Assistant Banking and Consumer Lending Officer.

Atlanta, Flag Bank
The bank announces the following additions: Bradford L. Watkins as President, Metro Atlanta Region; Lynda K. Long as Senior Vice President, Private Banking; Karen W. Watson as Senior Vice President, Correspondent Lending; Thomas G. Ware as Vice President, Treasury Management Services; and P. Jay Postma as Vice President, Regional Operations Manager - Metro Atlanta.

Atlanta, Porter Keadle Moore, LLP
Pat Still has been appointed to Tax Manager.

Jackson, McIntosh State Bank
Kelly Yielding has been promoted to Vice President.

Peachtree City, Peachtree National Bank
Chauncey Winston has joined the bank as Assistant Vice President-Consumer and Small Business Lender.

Perry, Bank of Perry
Karen Thompson has joined the bank as Vice President/Commercial Lender.

Savannah, First Chatham Bank
Janice Woods has been elected Senior Vice President, Retail Banking.

Join Our Email Distribution List
A bonus of getting the e-Bulletin and e-Legislative Update is the number of links that are included. This is a great way to keep your key employees informed of significant industry information, trends and events. We do not disclose email addresses and only use them for internal communication purposes. Bankers from any member bank can be added to the email distribution list by sending an email containing the name and email address of each individual to GBA’s Lydia Thomas. 

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