Incoming GBA Chairman Steve Jordan, CEO of the Bank of Monticello, has appointed two bankers to serve a two-year term on the GBA Board of Directors.  G.W. Johnson, CEO of Durden Banking Company, Twin City, and Jim Edwards, CEO of United Bank, Griffin, will begin their terms at the June annual convention. G.W. has long been active with the association.  He has been a Group 1 Officer and is a former chair and current member of GBA’s Agriculture Committee.  He also serves as a Director for the GBA Retirement Services, Inc. 

The U.S. Court of Appeals for the 11^th Circuit recently delivered some good news to banks in rulings that clarify the legal claim to security deeds of refinanced mortgages in the event of a borrower declaring bankruptcy. GBA had filed a friend-of-the-court brief in the cases advocating a positive ruling on behalf of the lenders. The decision involved two cases, both of which were refinancings of existing mortgages. In each case, the funds were paid promptly to the existing mortgage holder and the new security deeds were sent promptly to the proper clerk's office. However, in each case there was a delay by the clerks' offices in recording the new security deeds. When the borrower later filed bankruptcy, the trustee sued to set aside the new security deed as a preference. In short, the court’s rulings upheld the refinancing banks’ right to the security deeds rather than transferring them to the trustee because the doctrine of equitable subrogation states that a bank that pays off another lender steps into the shoes of that lender. Therefore, in a refinancing situation, the refinancing bank gets to take advantage of the recording date of the first mortgagee's security deed. In this case, that meant that the "transfer" date was the date the loan was made because the first security deed was already recorded.

Because of the clerical error and some changes to bankruptcy law, there also was a question about the appropriate number of days in which new loan holders must file new security deeds for them to be considered appropriately “transferred.” The Eleventh Circuit ruled that courts should take all factors into consideration, and the fact that the delay was not caused by the creditor or within the creditors' control was a strong factor in favor of viewing the transaction as contemporaneous. This is a victory for the banking industry, and the lessons from the cases to ensure the strength of your position on security deeds going forward are:

• Deliver your security deed to the clerk's office at the earliest possible date and get a receipt reflecting the date of delivery

• Deliver the payoff to the prior lien holder at the earliest possible date using an overnight or other receipt service

• Make sure the cancellation of the prior security deed does not occur before your new security deed is recorded.

The Credit Union Regulatory Relief ACT (H.R. 5519) that we told you about last week has been pulled from the House Suspension Calendar for now. Provisions in the bill would represent a huge expansion of all tax-exempt credit unions’ geographic reach, commercial lending authority and product offerings. We’re not sure when it will be up for consideration but this current delay is an important victory for the banking industry. Thanks for the action you and your fellow bankers took to voice your opposition to the legislation.

Governor to Sign Mortgage Legislation

We have learned of Governor Perdue’s intent to sign all three mortgage-related bills that we have reported on, and it is important to note that two of the three will take effect immediately upon his signature.

The Small Business Administration (SBA) recently announced that BB&T Atlanta is its Export Lender of the Year. Congratulations to Mark Edwards, who is President of BB&T’s SBA Group, and to Lars Anderson, BB&T’s Georgia President. SBA’s Export Lender of the Year award recognizes two lenders, including nonbank lenders, that have made the most SBA-guaranteed international loans the previous fiscal year as well as having demonstrated a steadfast commitment to supporting the growth and expansion of small businesses across the country even beyond the scope of SBA loans. 

Just a reminder that during the 2008 Annual Convention in June, GBA would like to honor Georgia bankers who have devoted 50 years or more of service to the banking industry. Please help us properly recognize the bankers who have reached this important milestone by sending a letter or an e-mail to GBA’s Susie McGehee with the following information:

Make plans now to attend Leadership GBA’s 48^th Annual Leadership Conference scheduled for July 13-16 at the Ponte Vedra Inn & Club in Ponte Vedra, Florida.  Brenda Robbins, Senior Project Manager of Community & Economic Development with Georgia Power, Atlanta, will be on hand to provide you with Georgia’s current economic development status as well as valuable information about the fundamentals of attracting new business to your community. 

Last Call for Advanced Consumer Lending Seminar

There’s still space available for the Advanced Consumer Lending seminar on May 8 at Idle Hour Country Club in Macon.  Designed for lenders with one year of experience in consumer lending, this advanced class will tackle more complicated credits that require an analysis of the customer’s cash position from tax returns. 

GBA will host its Internal Audit seminar on Wednesday, May 14, at Idle Hour Country Club in Macon.  The registration fee is $195 for members, and Mike Thomas with Crowe Chizek and Company, LLC is the instructor.  Designed for internal auditors, audit committee members, operations officers, compliance officers and internal control personnel, this one-day seminar will cover many of the basic concepts related to community bank internal controls and internal audit techniques.

 Topics to be discussed include: 

• Essentials of Risk-Based Auditing

• Effectively Managing the Internal Audit Plan

• Primary Internal Controls/Audit Techniques

• Building an Anti-Fraud Framework

Please click here to register or call GBA’s Courtenay Pope at 404.420.2015 with questions.

There won’t be any new AIB online classes beginning the week of May 26, June 2 or June 9.  Classes will resume on June 16.  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

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

There is still availability in the following AIB Online classes that begin May 19.  Please register as soon as possible to secure a seat in the class. 

• Commercial Lending, 16 weeks, $385

• Consumer Lending, 16 weeks, $385

• Economics for Bankers, 16 weeks, $385

• Introduction to Mortgage Lending, 16 weeks, $385

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

• Principles of Banking, 16 weeks, $385

Please see the AIB Online Course Schedule for a complete listing or call GBA’s Alison Moreau at 404.420.2034 with questions.

Beginning June 3, AIB will offer its popular ten-week Analyzing Financial Statements course.  Peter Faser of Security Bank will teach the course at Cornerstone Bank, Atlanta.  Class will meet every Tuesday from 6 - 9 p.m. until August 5.  The registration fee is $195 plus the cost of the textbook, which is $75. 

GBA will host its Bankruptcy, Garnishments, Liens and Levies seminar on Wednesday, May 28, at the Ramada Plaza in Macon.  The registration fee is $195 for members and the instructor is Gary Moser with Moser, Rose & Cox, Valdosta.  Designed for collection officers, compliance officers, and operation officers, this one-day seminar will address the changes

GBA will host its Call Reporting seminar on Wednesday, June 4, at the Ramada Plaza in Macon.  The registration fee is $195 for members. The seminar is designed for CFOs, operations officers and anyone responsible for preparing call reports.  Presented by Mauldin & Jenkins, LLC, Atlanta, this one-day seminar will offer practical techniques to improve your overall reporting process.  Participants will get a detailed, line-by-line review of how to complete each schedule of a Call Report.  Appropriate items to be reported and relationships between schedules will be discussed as part of the review.

Topics to be covered include:

• Proven organizational techniques to improve speed and accuracy in your bank’s call reporting processes

• Hands-on experience in call report preparation

• Common mistakes and problems with call reporting.

Please click here to register or call GBA’s Courtenay Pope at 404.420.2015 with questions.

First Quarter 2008 Results for GBA Retirement Plans

First Quarter 2008 was another volatile quarter for stock markets.  However, GBA Retirement Services Inc. is pleased with the long-term investment returns as of March 31, 2008, of both investment managers, Reliance Trust Company and Atlanta Capital Management.  Both firms are still outperforming most of their comparative long-term benchmarks and continue to focus on high-quality stocks and mutual funds to help minimize risks in the portfolios and funds.  Please refer to the update for detailed returns.  Our online readers also have access to the First Quarter 2008 investment newsletters produced by Reliance Trust Company and Atlanta Capital Management.

Deluxe Financial Services works closely with financial institutions to develop unique experiences that attract and retain customers and grow business. As one of the top check producers in North America, Deluxe combines its history of strong brands and financial institution relationships with its insights into small business. More than just a check printer, Deluxe offers programs that can add to your banks profitability and maximize customer satisfaction:

• Deluxe Welcome Home Tool Kit (start-to-finish branch package focusing on the first 90 days of the relationship)

• DeluxeCard Visa Gift Card

• Deluxe Experience Inquiry (improve customer experience and drive new revenue)

• Deluxe Detect (account screening to combat fraud and risk)

Deluxe Financial Services works closely with financial institutions to develop unique experiences that attract and retain customers and grow business. For more information, please call Deluxe’s Beatriz Lucki at 305.285.9212, or GBA’s Josh Latina at 404.420.2022.

Through its accurate, cost-effective approach to Flood Zone Determinations, a commitment to technology and customer-focused services, Federal Flood Certification Corp. provides banks with industry-leading products and services that protect lenders and expedite the closing process. Their offerings include:

• Access to fully transferable Life of Loan certificates

• Free Letter of Map Amendment and Letter of Map Revision

• Free Home Mortgage Disclosure Act data

• Free rush service

• Customized billing

• No setup charges or monthly minimums

Federal Flood’s experienced staff members maintain backgrounds in geology, geography, engineering, emergency management and GIS, providing readily available expertise and direct customer support. For more information, please call Federal Flood’s Marshall Jobe at 800.449.3322, ext. 5920, or GBA’s Josh Latina at 404.420.2022.

Some of the Services Available Through GBA Services, Inc.

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Georgia Bankers Association • 50 Hurt Plaza, Suite 1050, Atlanta, GA 30303 • Phone 404.522.1501 • Fax 404.522.9848 • www.gabankers.com