GBA e-Bulletin

Two Bills of Interest Introduced in U.S. Senate


Shelby	Moran

The U.S. Senate Banking Committee's ranking republican, Sen. Richard Shelby (R-AL), introduced late last week S. 1615, the Financial Regulatory Responsibility Act of 2011. Signed by other committee Republicans, the bill would mandate that regulators do a detailed analysis of a proposed rule's benefits and costs, including its effect on economic growth and net job creation. Under the bill, regulators would be barred from promulgating a rule if the analysis showed that the regulation's costs outweighed its benefits. Also introduced last week is S. 1600, the Communities First Act, by Sen. Jerry Moran (R-KS), which is a companion bill to similar House legislation we've been tracking. The bill covers several areas of interest: increasing the number of bank shareholders necessary for SEC registration to 2,000; enhancing rural lending programs in communities with populations of 2,500 or less (the bill would exclude any income earned on agricultural real estate loans and mortgage loans from the taxable income of financial institutions in small communities); extends the 5-year net operating loss (NOL) carry-back provision through 2011 for banks with $15 billion or less in assets; and exempts financial institutions with assets of less than $1 billion from certain requirements of Sarbanes-Oxley. Each bill was assigned for committee study and possible action, which we will be following on your behalf. With questions, please contact GBA's Elizabeth Chandler at 404.420.2027.

FinCEN Reports Mortgage-Loan Fraud Surge; GA is No. 7

The second quarter of 2011 saw a surge in Suspicious Activity Reports (SARs) on mortgage-loan fraud. Financial institutions filed 29,558 mortgage-loan SARs during the period, up from 15,727 in the same quarter of 2010. Georgia ranked No. 7 by volume and No. 11 on a per-capita basis. The most-frequent types of suspicious activities identified were misrepresenting income; occupancy; debts and assets; debt-elimination scams; and scams involving the fraudulent use of Social Security numbers, said a report from the Financial Crimes Enforcement Network out this week. While Georgia still has a high incident rate of mortgage fraud, we continue to move down the numerical rating list, as we were once number one.

Georgia Jobs and Investment Bright Spots

The Georgia Department of Economic Development said companies it worked with invested about $4.4 billion dollars in the state and created 22,000 jobs last fiscal year--both double-digit percentage increases. And, about 60 percent of those projects were outside of the state's major metro areas. The company announcing the most jobs was Gulfstream Aerospace, for its 1,000-job expansion in Chatham County. Toyo Tire North America generated the most investment - $910 million - with its Bartow County expansion. Other high-return investments were a 450-job expansion by FedEx Ground in Gwinnett County, a 400-job location by Systemax in Jackson County, a $200-million investment by First Quality Baby Products in Bibb County, and a 250-job expansion by Triumph Aerostructures (formerly Vought) in Baldwin County. The release last week also noted a recent survey by Area Development Magazine that ranked Georgia No. 2 in the U.S. as a site selection location of choice. It also ranks the state No. 1 for workforce and labor availability, and No. 2 for infrastructure. That bit of good news was tempered this week by a report from the Bureau of Labor Statistics that showed metro Atlanta lost 30,800 jobs in the past year, the most in any one metropolitan area in the nation.

New Guidance for End-of-the-Year Submission of Guaranteed Files to USDA

Any institution participating in the USDA Rural Development Guaranteed Loan Program is required to implement and disclose the new 0.3 percent annual fee to applicants in accordance with RESPA by Oct. 1. Additionally, the up-front guarantee fee for purchase transactions will decrease from 3.5 percent to 2 percent for purchase loan transactions and the up-front guaranteed fee for refinance loan transactions will remain at 1 percent. New Guarantee Fee and Annual Fee Calculators are available in the USDA LINC Training and Resource Library right here. The calculators are located in the Loan Origination section under Documentation and Resources. Read the notice from the USDA here and access FAQs here.

We're No. 1 As Consumer Check Scam Awareness Campaign Winds Down

In the Fall of 2010, GBA, the Consumer Federation of America and several other groups launched the Don't Become a Target Campaign to educate consumers about how to avoid getting ripped off by check scams. More than 30 Georgia banks are participating in the program, which officially ends in November. Georgia banks have distributed 67,050 brochures, the most by any of the 10 states where the project is being conducted. Participating banks have reported that being able to provide information about these scams to their customers has helped educate them that about the danger and wide variety of check and other financial scams out there. GBA has been pleased by the enthusiastic participation of our membership. There are still resources available right here that banks can use. Recent additions to the site include e-versions of the brochures and two new videos about fake check scams that illustrate the sweepstakes/lottery and work-at-home variation of check scams. Get more information about the Don't Become a Target Campaign.

The Ritz-Carlton Lodge, Reynolds Plantation

Big Crowd Expected at President/CEO and Bank Counsel Conferences

Join more than 100 of the state's banking leaders and learn from a stellar lineup of industry experts at this year's GBA President/CEO and Bank Counsel conferences scheduled Oct. 9-11 at The Ritz-Carlton Lodge, Reynolds Plantation in Greensboro. You've still got time to register, and there are a few hotel rooms still available. Just click here to register for the President/CEO Conference and here for the Bank Counsel Conference. We've sent confirmation packets and updated registration lists to all the attendees, but please let us know if you need more information. With questions, please contact GBA's Susie McGehee at 404.420.2010.

Countdown to the 2011 Compliance Conference Underway

Fair Lending Compliance expert Gary Clayton will lead one of many outstanding sessions at this year's GBA Compliance Conference next week. A Fair Lending Examination Specialist with the FDIC, Clayton will discuss management of Fair Lending, Fair Lending in the FDIC Compliance Manual and current trends in the banking environment. There's still time to sign up and join us. The conference is Oct. 4-5 at the Idle Hour Country Club in Macon. For more information, please contact GBA's Marybeth Jones at 404.420.2032. Access a conference brochure here.

Georgia Peanut Bank Week Is Oct. 10-14

Sponsored by the Georgia Peanut Commission in cooperation with the Georgia Bankers Association, Georgia Peanut Bank Week is a perfect opportunity for your bank to support Georgia's important $2 billion peanut crop. Our state is responsible for 49 percent of U.S. peanut production, and the industry employs 50,000 Georgians. The Georgia Peanut Commission has promotional materials you can order from its website here, some of which are free. For more information, contact Marcus Evans of the Georgia Peanut Commission at 229.386.3470.

Financial Literacy News

Get Smart About Credit Day is Oct. 20

Help young Georgians build a solid financial foundation and demonstrate just how committed bankers are to our communities by participating in Leadership GBA's and the ABA Education Foundation's annual Get Smart About Credit Day Oct. 20. Participation is easy. Contact your local high school, connect with youth groups or visit college campuses and schedule a credit presentation for Oct. 20. The ABA Education Foundation has created an excellent resource kit that contains everything you need for your presentation. Included in the kit are a video, lesson plans, hands-on activities and worksheets. To order the resource kit, call the ABA at 1-800-BANKERS or visit the ABA web site at www.aba.com. You don't have to be an ABA member to order the information or participate. With questions about the kit or the program, please contact GBA's Jennifer Stevens at 404.420.2024 or Susie McGehee at 404.420.2010. Plan today to make a difference in the future of your community's young people by registering here. And, if you make presentations, please report those as GBA Financial Literacy Program activities so we can tally up and report just how big of a difference our bankers make in our communities.

2011 BankPAC Campaign Update

Contributions continue to come in for the 2011 BankPAC Campaign. Thanks to all who have contributed to the GBA StatePAC and GBA FedPAC. If you haven't contributed yet, please consider making a contribution to help our advocacy efforts. Contributing to our PACs helps us support candidates committed to a strong banking industry. For your convenience, the contribution forms for the GBA StatePAC and GBA FedPAC have the suggested giving amounts for your bank and individual contributions.

We are happy to report that the following GBA Associate Members contributed to the GBA StatePAC this week:

Alliance Benefit Group, Albert Lea, MN, Steve Pulley, President

The Holmes/Shaw Agency, Marietta, Bruce Shaw

Demarest Strategy Group, Hilton Head Island, SC, Elaine Demarest, President

Financial Supermarkets, Inc., Cornelia, Roy Bell, President and CEO

And the officers, directors or staff of The Coastal Bank in Savannah contributed to the GBA FedPAC this week. Tom Wiley is the President & CEO as well as Chair of the BankPAC Board of Directors.

For more information, please contact Elizabeth Chandler at 404.420.2027. Please link to this week's BankPAC Update for year-to-date goals and contributions by Group.

Support the GBA StatePAC at the 10th-Annual Georgia BankPAC Golf Classic Oct. 26

It's time to tee it up to support GBA's State Political Action Committee (PAC). Leadership GBA's 10th-annual Georgia BankPAC Classic is Oct. 26, at the Brickyard at Riverside in Macon. Put together a foursome or two of bankers, directors, community leaders or even legislators and customers to share a round and talk about important banking issues. Registration is $150 per person, $250 per team or $450 for a team and hole sponsorship (a $100 savings). Click here to register online. With questions, please contact GBA's Susie McGehee at 404.420.2010, or Jennifer Stevens at 404.420.2024.

Here are the instructor-led AIB online classes offered the week of Oct. 24. 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.

There is still room in the classes offered the week of Oct. 17. Please register as soon as possible.

The insurance marketplace has changed significantly. Many banks coming off two- or three-year policies are having more difficulty finding coverage or getting the coverage they need. Some carriers are not renewing policies, offering lower limits or excluding regulatory coverage and other key policy provisions. As the GBA endorsed Property and Casualty agency, McEver & Tribble has access to multiple distressed bank D&O and Bond Insurance markets and can provide coverage for banks of any size. Regulatory coverage, Prior Acts coverage and Side A coverage all are options. Additionally, McEver & Tribble is pleased to present a comprehensive Property/General Liability Insurance solution to meet the needs of your growing portfolio of Forced Placement and Other Real Estate Owned properties. To process a quote, the only information needed is a schedule of current properties. The firm works with banks and these policies every day and would be happy to answer any questions. Call Hayward McEver at 404.949.3825 or Bogan Brannen at 404.420.2014 for more information.

One of the most important things customers look for when choosing a checking account is how extensive the bank's ATM network is. Customers want to avoid out-of-network ATM fees. GBA members can increase customer satisfaction and attract new business with greater ATM coverage from InterCept Switch, which was designed to level the playing field for customers of financial institutions with less current ATM coverage. InterCept Switch offers a surcharge-free ATM network that allows community banks to waive service charges for their customers while retaining the ability to charge customers of other banks or credit unions. For more information, please contact InterCept Switch's Steven Roberts at 770.248.9600.

Check out GBA’s Online Associate Member, Bank Counsel Search and Referral System

The Georgia Bankers Association offers free job posting resources for our member banks. These listings can be viewed online or through our bi-weekly print publication, the GBA Bulletin. 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.

Phillip J. Cerrillo, Jr. has been named Banking Officer/Office Manager at the Martinez branch. Katie L. Newton has been promoted to Office Manager/Consumer Lender at the Evans branch.

Mark Bryant has joined the bank as Vice President/SBA Lending Manager. Adrienne Sipe has joined the bank as SBA Lending Assistant. Mukti Patel has been named Financial Services Representative. Ronald King, Jr. has been named Vice President/Commercial Banker serving the Cobb County market. Joshua Osborne has been named Vice President/Commercial Banker serving the Gwinnett and North Fulton markets.

The bank has moved into a new operations center in Oakwood that houses employees handling loan operations, accounting and information technology for all of the bank's branches throughout Georgia.

D. Andrew Borrmann has joined the company as Senior Vice President of finance, responsible for strategic financial direction.

James E. Rogers has been hired as Senior Vice President/Hinesville and Liberty County Market Executive.

Mark Brown has recently joined GBA Associate Member, Renova Partners, leading its derivatives advisory practice.

It was announced this week that the GBA Associate Member, Access To Capital for Entrepreneurs, Inc. (ACE) would receive $188,000 in Small Business Lending Fund investment from the U.S. Treasury Department.

Congratulations to Elle Hilley, Human Resources Officer at the First National Bank of Griffin who became the 100th GBA Twitter follower last Friday! It went down to the wire between Elle and Joe Breedon at Ameris Bank. You can follow the GBA on Twitter today by clicking right here.