Home I GBA University I Member Services I Volunteers I Government Relations I Calendar of Events May 25, 2012
GA Banks’ Earnings Improve by $608 Million
Georgia’s banks earned $423 million in the first quarter of 2012, an improvement of $608 million compared to a loss of $185 million during the same quarter of 2011. The quarter’s results were the first time since 2008 the industry reported a collective first quarter profit. More banks saw improved income, with 79 percent of banks profitable compared to 62 percent in the first quarter of 2011, and 63 percent reporting earnings gains for the quarter, compared to 51 percent a year ago. Credit quality continued to get better, with net charge offs down significantly, $657 million compared to $1.1 billion over the same period last year. The percentage of noncurrent loans continued to trend downward, as well. Total loans were flat. Total deposits were up from year end and at about the same level as last year. "As more of our banks return to profitability, it is a welcome sign that business and personal finances also continue to get better. And, the significantly lower levels of charge offs and bank held real estate are good to see. We all wish the pace of recovery would pick up, of course, but the continued trend of industry stabilization is encouraging," said Joe Brannen, GBA President and CEO. Nationally, industry earnings also improved. Banks reported a profit of $35.3 billion in the first quarter, a $6.6 billion improvement from the $28.8 billion in net income the industry reported in the first quarter of 2011. This is the 11th consecutive quarter that earnings have registered a year-over-year increase. FDIC Acting Chairman Martin Gruenberg did sound a note of guarded concern that loan balances declined compared to year-end 2011 after going up during the final three quarters of last year. He said it is too early to draw too many conclusions about that as a possible trend, but it is an issue FDIC will monitor closely. The number of troubled institutions fell to 772 from 813, the lowest number since year-end 2009. Read the full FDIC release here. With questions, contact David Oliver, 404.420.2036, or Joe Brannen, 404.420.2026. To show long-term trends, the information in the chart below is a cumulative, year-to-date summary through the end of each quarterly reporting period for the past year, and the national numbers are year-to-year comparisons.
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Measurement |
Georgia 3/31/12 |
Georgia 12/31/11 |
Georgia 9/30/11 |
Georgia 6/30/11 |
Georgia |
National |
National 3/31/11 |
|
|
Institutions |
237 |
242 |
246 |
251 |
261 |
7,307 |
7,574 |
|
|
Employees (FTEs) |
48,516 |
49,110 |
49,308 |
49,296 |
49,854 |
2,102,226 |
2,094,710 |
|
|
Total assets |
$272.4 B |
$269.3 B |
$265.4 B |
$265.8 B |
$269.2 B |
$13.9 T |
$13.4 T |
|
|
Total deposits |
$215.7 B |
$212.1 B |
$210.9 B |
$212.5 B |
$216.0 B |
$10.3 T |
$9.6 T |
|
|
Loans and leases, gross |
$189.6 B |
$189.6 B |
$185.2 B |
$183.2 B |
$186.2 B |
$7.4 T |
$7.3 T |
|
|
OREO |
$2.6 B |
$2.8 B |
$2.9 B |
$3.0 B |
$3.3 B |
$44.8 B |
$52.6 B |
|
|
Net income |
$423.3 M |
$569.8 M |
$375.0 M |
$62.6 M |
-$184.7 M |
$35.3 B |
$28.8 B |
|
|
Net charge-offs |
$658 M |
$3.6 B |
$2.7 B |
$2.0 B |
$1.1 B |
$21.8 B |
$33.5 B |
|
|
% of unprofitable institutions |
21.10% |
39.7% |
40.65% |
41.43% |
38.31% |
10.33% |
15.69% |
|
|
Cost of funding earning assets |
0.57% |
0.77% |
0.80% |
0.84% |
0.89% |
0.59% |
0.80% |
|
|
Net interest margin |
3.66% |
3.69% |
3.68% |
3.66% |
3.61% |
3.52% |
3.66% |
|
|
ROA |
0.63% |
0.21% |
0.19% |
0.05% |
-0.28% |
1.02% |
0.86% |
|
|
ROE |
5.46% |
1.89% |
1.67% |
0.42% |
-2.52% |
9.07% |
7.68% |
|
|
Loss allowance to loans |
2.11% |
2.20% |
2.37% |
2.46% |
2.56% |
2.47% |
3.01% |
|
|
Noncurrent loans to loans |
4.49% |
4.57% |
4.94% |
5.11% |
5.55% |
4.12% |
4.72% |
|
|
Equity capital to assets |
11.49% |
11.41% |
11.64% |
11.36% |
10.96% |
11.27% |
11.25% |
|
|
Total risk-based capital ratio |
14.20% |
13.96% |
14.01% |
13.94% |
13.55% |
15.52% |
15.53% |
|
|
Net charge-offs to loans |
1.39% |
1.94% |
1.98% |
2.13% |
2.37% |
1.17% |
1.83% |
|
ATM Bill Introduced in Senate, GBA Supports
We continue to support efforts to repeal the outdated requirement that a placard must be attached to ATMs stating that a fee may be charged, a rule that duplicates messages required on screens and that has led to at least four lawsuits in Georgia. Last week a bill to remove that requirement was introduced in the U.S. Senate (S. 3204). We sent letters to Sens. Isakson and Chambliss asking for their support of the bill and are pleased to report that both readily agreed to become a cosponsor. It is companion legislation to the bill (H.R. 4367) co-introduced by Georgia U.S. Rep. David Scott, which has 50 co-sponsors. Other cosponsors from Georgia are Reps. Tom Price and Lynn Westmoreland. Please share your support of this legislation with your House representative, also, and ask that he cosponsor. With questions, contact Joe Brannen, 404.420.2026, or Elizabeth Chandler, 404.420.2027.
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| Isakson | Chambliss | Scott |
Community Bankers Committee Meeting Notes
General business conditions, real estate lending, shared tips for complying with regulatory guidance for appraisals and evaluations, and defining realistic investor expectations were among the many topics discussed at this week’s meeting of the GBA Community Bankers Committee. Led by incoming committee Chair Ed Cooney, President, Affinity Bank, Atlanta; and incoming Vice Chair John Lewis, CEO, Verity Bank, Winder, the committee met to discuss key issues and plan the 2012 GBA President and CEO Conference coming up Sept. 30 – Oct. 2 at the Ritz Carlton Lodge, Reynolds Plantation, in Greensboro, GA. Look for details soon about the conference agenda, and please let us know if you have items you want to be considered for the programming. Contact Susie McGehee with questions, 404.420.2010.
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Foreclosure Avoidance Event in Atlanta June 1-2
If you have customers or know of people in the community who need foreclosure avoidance assistance, here’s a resource you can share. On June 1-2, the HOPE NOW Alliance of large mortgage servicers and financial counselors is offering a free foreclosure and financial assistance event in Atlanta at the Georgia International Convention Center (GICC). The event is from 1-8 p.m. on June 1, and from 9 a.m. to 3 p.m. June 2. Mortgage companies and HUD-approved housing counselors will be on hand to meet one-on-one with borrowers. Previous events have had people from hundreds of miles away attend. For more information, click here for a flier with details.
GBA Compensation and Benefits Survey Now Active
Just this week, we hosted a group of community bankers in a committee meeting who brought up the importance of having reasonable, fair and attractive compensation and benefits packages to retain and recruit high-quality team members. With that in mind, we’re pleased to be rolling out the 2012 GBA Compensation and Benefits Survey. You can participate now to help your bank and others get a firm grasp on the state of our industry’s pay and benefits practices heading into budget season. The deadline for completing the survey is June 29. Participation is free, and if you do participate, you can get a copy of the results for the discounted price of only $150 when they’re available in the late summer or early fall. What will you get for your investment? The 2012 GBA Compensation and Benefits Survey results will include:
Base salary and incentive compensation data on key banking roles
51 targeted executive and officer level positions
17 key banking, bank operations, technical and clerical level positions
Participant bank demographic information (banks not named)
Insights into current compensation practices and trends
Projected 2013 salary increases, salary structure increases, etc.
Benefits data – Information about non-statutory benefits offerings (i.e. medical and life insurance, STD, LTD, PTO, etc.)
Directors compensation information
Data breakouts by asset size and geographic region – you can even request custom peer groups or county cluster reports to help you view the salary data most relevant to your bank’s market(s) and unique strategy
"Basics of Salary Administration" webinar series – This free series consists of five separate hour-long "learning lunch" webinars. Attend to ensure you get maximum value from your survey data.
We think that’s a great value. We’ve sent participation instructions to banks that have pre-registered to participate. Any member can participate. This year we are again encouraging online participation. Whether you prefer to participate electronically or by submitting the paper input packet, you can find all the information necessary to participate at this link: 2012 GBA Compensation and Benefits Survey. If you have questions or comments, please contact GBA’s Kenyetta Parks, 404.420.2035, or Bill LaFontaine at Matthews, Young - Management Consulting, 919.644.6962.
Prepaid Cards Draw CFPB Rulemaking, Underbanked a Focus
The Consumer
Financial Protection Bureau issued and
advance notice of proposed rulemaking about how to ensure
prepaid card offerings are secure and the terms and fees are easily
understood. Bureau chief Richard Cordray said the rulemaking
is important because the cards have become popular alternative
products for many consumers who might not want or be able to open
other accounts. Traditional banks have begun developing specific
prepaid card and other programs specifically to meet the needs of
these under-banked or unbanked consumers. The FDIC is conducting a
follow up to a 2008 survey of banks’ efforts to serve this segment,
and the issue
was recently featured in an
article from SNL News.
Joe Brannen, GBA President and CEO, commented in the article
about banks looking to such programs as a way to help more customers
going forward who have damaged credit because of the severity of the
recent recession and ongoing poor economy.
Consumer Finances Improving, Auto Lending Grows
Write-offs on non-home finance products such as credit cards and auto loans have declined to their lowest level in six years, according to GBA Associate Member Equifax. Non-home finance write-off dollars year-to-date through April have decreased 52 percent according to Equifax’s April National Consumer Credit Trends Report. The write-offs have decreased to $26.2 billion as of April 2012 from $54.1 billion in April 2009. Auto loan balances are increasing following the trend in rising auto sales. As of April 2012, the number of outstanding auto loans is at 57 million, the highest since January 2010. "Consumers are now starting to see greater accessibility to credit opportunities and they are taking advantage of those opportunities, though in moderation," said Equifax Chief Economist Amy Crews Cutts. "The American household’s balance sheet is looking much better now, with debt burdens down significantly due to both write-offs and consumer-led deleveraging, and slow but significant improvements in the economy." More highlights here.
Bank Financial Management Diploma Available
This diploma is designed for individuals who are involved in the financial management of their bank, including junior officers up through CEOs, CFOs and other senior officers making key decisions that affect bank profitability. The courses required for this diploma cover the analysis of bank performance, the measurement and management of interest rate risk, and the management of funding, liquidity and capital. The required courses all use the same textbook that provides participants with the basic concepts in each of the areas. Each of the courses includes exercises in which participants apply these concepts to their own institution. Candidates should have an understanding of accounting and financial markets before beginning the required courses. Experience in the use of electronic spreadsheets is helpful but not required. The required courses for this diploma are:
Please contact GBA's Alison Moreau at 404.420.2034 with questions.
GBA’s Call Reporting Seminar June 6, Still Time To Register
Designed for CFOs, operations officers and anyone responsible for preparing call reports, this seminar will offer practical techniques to improve your overall reporting process. This one-day seminar will be presented by Mauldin & Jenkins, LLC, Atlanta, on June 6 at the Idle Hour Country Club in Macon. Participants will get a detailed, line-by-line review of how to complete each schedule of a Call Report. Registration is $225 for members and $175 for any additional registrants from the same institution. Click here to register online. With questions or to register, please contact GBA’s Courtenay Pope at 404.420.2015.
Commercial Loan Doc, IRA’s and Safe Deposit Fundamentals 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.
The Top 25 Security Mistakes That a Smart Institution NEVER Makes – June 4
Effective Use of Credit Risk Rating – June 5
Roth IRA's and Conversion Roths – June 5
Global Cash Flow: What, How, Why – June 12
Counseling the Consumer I - Home Purchase Transactions: What You Need to Know – June 13
Focus on Evaluations: Under Real Estate Appraisal Guidelines – June 13
SAFE Act & Update – June 15
Managing Your Core Vendor Relationships – June 18
Security: Some Assembly Required – June 27
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.
July AIB Course Offerings
Here are the instructor-led AIB online classes offered in July. 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.
Analyzing Bank Performance, 7 weeks, $765, July 3
Consumer Lending, 16 weeks, $425, July 16
Economics for Bankers, 16 weeks, $425, July 9
General Accounting*, 16 weeks, $505, July 30
Introduction to Mortgage Lending, 16 weeks, $425, July 9
Introduction to Trust Products and Services, 5 weeks, $225, July 3
Law & Banking: Applications, 16 weeks, $485, July 16
Law & Banking: Principles, 16 weeks, $485, July 23
Marketing Financial Services, 16 weeks, $425, July 23
Money & Banking, 16 weeks, $425, July16
Principles of Banking, 16 weeks, $425, July 9
Supervisor Certificate, 16 weeks, $695, July 23
There is still room in the following courses offered June 18. Please register as soon as possible.
Introduction to Agricultural Lending, 8 weeks, $395, June 18
Managing the Bank's Investment Portfolio*, 6 weeks, $625, June 18
Principles of Banking Accelerated, 10 weeks, $355, June 18
Please see the AIB Online Course Schedule for a complete listing or contact GBA's Alison Moreau at 404.420.2034 with questions.
Protect
Your Human Capital and Your Bank with Employment Law Resources
Monitoring revisions and changes to labor laws that affect the banking industry can be a challenge. Your bank can stay ahead of the curve with help from GBA Strategic Partner, Employment Law Compliance, Inc. (ELC). ELC has a successful history of working with community banks, large and small that may not have a large HR staff or in-house employment counsel. The professionals at ELC average 25 years of experience in their field. Marian Exall, Vice President, Program Development has been identifying and exploring relevant HR and employment trends in a blog, The Human Element: HR News And Notes For Bankers that is published each month in the ABA Banking Journal. Link to all her entries here to learn more. ELC's entire staff is committed to designing and maintaining the best solutions and services to help your bank. For more information, please contact ELC’s Steve Greene at 770.206.3371.
A Fast, Affordable and Reliable Way to Manage Your Real Estate Portfolio
Effectively
managing your residential real estate portfolio is so
important right now.
LendingXpress offers web-based, bundled services from its
residential real estate management platform that are designed for
financial institutions, by financial institutions. Because all the
necessary real estate lending support applications are available
on the LendingXpress platform, it's fast, easy and accurate; and
it
reduces the risk of overlooking any important step.
For more information, please contact
Kymberly Sims
or
Marshall Jobe at 800.449.3322.
Find a Job, Post a Job with 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 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.
Read All About It: Send Us Your News
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.
Atlanta - SunTrust Banks Inc.
SBA's Export Lender of the Year Award was given to SunTrust Banks, Inc. In FY 2011, the bank delivered 30 export loans for more than $61 million.
Atlanta - The Private Bank
Our sympathies to CEO Brian Schmitt and his daughters, Christy and Carly, in the passing of his wife and their mother, Laurel, this week. Visitation is Monday, May 28, 6:00 - 8:00 pm at Crowell Brothers Funeral Home, 5051 Peachtree Industrial Blvd., Norcross, GA 30092, 770.448.5757 and funeral services are Tuesday, May 29 at 11:00 am at Johns Creek United Methodist Church, 11150 Medlock Bridge Road, Johns Creek, GA 30002.
Rome - Heritage First Bank
Kay Chumbler, has been named Senior Vice President & Business Development Officer.
Smyrna - Community Bank of the South
Alan Patterson, has been named Vice President and Commercial Relationship Manager.
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| Chumbler | Patterson |
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50 Hurt Plaza, Suite 1050 | Atlanta, Georgia 30303 | 404.522.1501 |