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Banking Expo Program Just Around the Corner Please remember that GBA’s Banking Expo 2001:  Your Portal to Success is just a few short weeks away.  The Operations/Technology Committee has planned an educational program you won’t want to miss.  The Expo will open on Tuesday afternoon, March 27, with our keynote speaker, Congressman Johnny Isakson.  Congressman Isakson will give you an update on important banking legislative issues such as privacy, predatory/subprime lending, bankruptcy reform, deposit insurance reform and technology issues.  Representatives from the OCC, FDIC and the Department of Banking and Finance will also be on hand to answer your questions about the new risks and concerns involved in information technology and help your bank prepare for IT exams. On Wednesday, March 28, we have scheduled eight informative educational sessions.  These sessions will provide valuable information on hot issues such as portal technology, marketing, human resources and network security.  Learn how to raise non-interest income and gain a competitive advantage without raising prices or adding or cutting staff.  Get some hot tips on how your web page can produce positive results in marketing your bank and its products.  Come hear about the FFIEC security requirements for Internet access, such as firewalls, reporting, intruder detection, and virus protection.   If you have any questions or would like a brochure, call GBA’s Edie Canales (404/420-2034), Marybeth Jones (404/420-2032 or Susie McGehee (404/420-2010).  Remember, this is your last chance to experience this biennial event until 2003.  No other banking trade shows are planned for the southeast for the next two years, so don’t miss this opportunity. Community Bank Hot Buttons Community bankers rank technology, funding and employee retention as their top concerns, according to a survey by the ABA Banking Journal and ABA's Community Bankers Council. One-third of the respondents said Internet banking was their top technology spending priority. More than half reported seeking non-deposit and non-traditional funding alternatives in 2000. A third of the respondents reported having trouble retaining employees. The results were announced at ABA’s National Community Bankers Conference.  All three topics are being addressed at GBA’s Banking Expo 2001.  Call GBA’s Susie McGhee at (404) 420-2010 with questions.

Annual Convention

Amicus Filed on Arbitration
The Georgia Bankers Association has filed an amicus curiae (friend of the court) brief with the Georgia Supreme Court in support of arbitration clauses in contracts.  The case in question, Ray Marlin Crawford v. Results Oriented, Inc. d/b/a Assured Housing, challenges the validity of mandatory arbitration agreements.  GBA has long taken the position that arbitration is a fair, cost-effective and efficient method of handling disputes.  Call GBA’s Joe Brannen at (404) 420-2026 with questions.

Cash Method Banks to Change Accounting 
The Internal Revenue Service issued guidance allowing any bank that uses the cash receipts and disbursements method of  accounting to change automatically its method of accounting for stated  interest on short-term loans made in the ordinary course of business.  Revenue Procedure 2001-25 allows so-called “cash  method” banks to change their method of accounting for this  interest from an accrual method  to the cash receipts and disbursements method of accounting.  The change in method essentially means cash method  banks do not have to include interest from short-term loans in gross  income. IRS made the decision to extend the more beneficial accounting  treatment after losing on the issue three times in court.  Check with your bank’s accountant to determine how this ruling may apply to your institution.

Support CSBS
The Conference of State Bank Supervisors (CSBS) is the nation’s only organization dedicated exclusively to the advancement of the state banking system.  CSBS brings state bank regulators together with bankers to improve the regulatory and legislative environment for all state-chartered banks.  CSBS also trains Georgia bank examiners through its education division, and measures and monitors the effectiveness of the Georgia Department of Banking and Finance through the CSBS accreditation program.  At the GBA we constantly face a wide range of issues at both the state and federal level.  CSBS has been a valuable ally through its focus on the issues that affect state-chartered banks.  Over the past several years, CSBS has led the national fight against new federal fees on state-chartered banks (which is again part of the budget submitted by President Bush) and has served as a central source of information on the state banking system.  We work closely with CSBS and with Commissioner Steve Bridges to ensure Georgia banking laws are modernized and CSBS deserves our state-chartered member banks’ support.  CSBS recently sent out their dues renewal letters and we understand the response has been overwhelmingly positive.  With questions about how your bank can help support CSBS and the dual banking system, call CSBS at (202) 296-2840.

2001 State Legislative Issues
Governor Roy Barnes
Lt. Gov. Mark Taylor
Georgia House of Representatives
Georgia State Senate
Federal Legislative Issues
U.S. Congress
Legislative Updates
Legal Issues

This week's
Legislative Update

Bankruptcy Reform
As this Bulletin was going to press, the U.S. Senate and House of Representatives were making excellent progress on finalizing a much-needed bankruptcy reform bill.  The bill will mirror most of what was in the bill that passed the Congress overwhelmingly last year, but was subsequently pocket vetoed by President Clinton.  President Bush has said he will sign the legislation if it is passed.  The bill is designed to create a needs-based bankruptcy system which is a much more fair system than we have today.  Too many wealthy individuals as well as others who are capable of repaying their debts are walking away from their responsibilities under the current law.  The costs to all businesses and individuals are higher because of the current permissive system which must be overhauled.  Call GBA’s Elizabeth Way at (404) 420-2027 with questions.

Calendar of Events
Schools
Conferences
Seminars
Events
Georgia AIB
Leadership GBA
Personal Economics Program (PEP)
Internet Training

CEO Academy: A Peer-to-Peer Roundtable for Executive Management 
The third session of the CEO Academy will be held April 2 at the City Club of Macon and will focus on Risk Management.  John Barrickman, President of New Horizons Financial Group, will facilitate the session.  Discussions will be centered on comprehensive risk management, your institution’s tolerance for risk, and on identifying, quantifying, managing and mitigating portfolio risk.  The CEO Academy is designed in a peer-to-peer roundtable format and addresses issues of importance to CEOs, presidents and executive management. You may attend all six sessions or select individual sessions to attend based on the content.  For more information call GBA’s June Somers at (404) 420-2012.

Risk Management Conference on Tap
Liquidity and Funding Risk Issues are at the top of the list for GBA’s Financial Risk Management Conference on March 14-15 at the Renaissance Waverly Hotel in Atlanta.  Representatives from the Federal Reserve Bank will offer insight into the challenges of alternative funding.  First Tennessee Capital Markets Chief Economist Christopher Low will present an economic outlook and Frank Farone of the Darling Consulting Group in Massachusetts will discuss successful management of the bank funding dilemma.  For more information please contact GBA’s Norma Guild at (404) 420-2031.  

Recognize Your 50-year Bankers
GBA is proud to recognize Georgia bankers who have devoted 50 years or more of service to the banking industry.  These bankers will be honored at our annual convention in May.  Please help us properly recognize the bankers who have reached this important milestone by sending a letter to GBA’s June Somers with the following: the bank’s name, the banker’s current title, his or her years of service and a brief work history along with a photograph.  Also include your name as the nominating banker.  This information must be received in the GBA office by April 30.

GBA’s Thumbprint Signature Program
Check Fraud costs bank and their customers millions of dollars each year.  In a statewide effort to combat crime and protect our members, Georgia Bankers Association has endorsed a Thumbprint Signature Program.  This program provides a simple, effective and inexpensive method for preventing and deterring check fraud.  

Even with government agencies and credit card producers expanding technology to deter crime, bank loses from fraud are still rising.  Georgia banks have felt the blow.  One reason for this increase is given time, anything the good guys can do, the bad can do too.  However, there is one piece of identification that neither the good guys nor the bad guys can alter; the fingerprint.  

In January of 1997 the GBA introduced a new security device known as the Thumbprint Signature Pad.  The touch pad is intended to deter counterfeit and stolen check fraud by obtaining a thumbprint signature (fingerprint) from non-account holders.  A major bank in Georgia has reported an average 71% reduction in check fraud since they began the program January 1997.  

Want a Share of $4 million?
If your bank is one of the many in Georgia participating in the GBA and ABA-sponsored insurance program underwritten by Progressive, you will soon be getting your share of a $4,000,000 distribution declared recently by the company’s board of directors.  GBA’s President Joe Brannen has served on this board for the last five years and says, “True to the mutual concept, members in this program benefit from the company’s profitability.  The program is the only one of its kind to offer distributions directly to its member banks.  In 2000, our innovative coverages and excellent customer service attracted 163 new banks nationwide to join the program.  The programs’ financial strength, sound underwriting practices and commitment to loss control have allowed us to retain members year after year in the program.”  Call GBA’s strategic partner, Mark Weisner at (770) 587-4807 or GBA’s Renee Valdez at (404) 420-2036 to get a quote for your bank.

Newest Bank Linked
Welcome to The Patterson Bank, Dedi Thomas, President, as the latest bank to link to GBA’s website.  When your bank’s homepage is ready to be linked, call GBA’s Lydia Thomas at (404) 420-2039.

Alpharetta, North Georgia Bank
Diane Boston has been promoted to Chief Financial Officer.

Augusta, Georgia Bank & Trust Co.
Lee Blanton West has joined the bank as Commercial Loan Officer.

Dawson, Bank of Terrell
Our sympathies to the family and colleagues of James P. Orndorff, Chairman of the Board of Directors, who passed away this week.

Marietta, Riverside Bank
Cara Jackson has joined the bank as Vice President and Marketing Director.  Mike Knowles has been promoted to Senior Vice President; Martin Dunlap and Patti Moseley to Vice President. 

Marietta, Security Exchange Bank
David McGinnis has joined the bank as Senior Vice President and C. Raymond Duncan has been promoted to Executive Vice President.

GBA’s e-Bulletin List
Almost 500 bankers are on GBA’s email distribution list to receive the e-Bulletin as well as the e-versions of our Legislative Update and warnings about bank scams.  We don’t share or sell our email list and don’t send frivolous information to our recipients.  We’ll continue sending the paper version, and we don’t limit the number of bankers from any one bank on the list.  Send an email to GBA’s Lydia Thomas to get added.

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