A regular electronic publication of the Georgia Bankers Association

www.gabankers.com

 October 19,  2001

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Bankers Respond
We continue to hear stories about how bankers have responded to the terrorist attacks of September 11 by coming to the aid of their fellow Americans.  The officers and employees of ABC Bancorp and the lead bank, American Banking Company in Moultrie, heard of local corporation Farmland National Beef's offer to match funds donated locally to the American Red Cross.  Lorenda Swords, Marketing/Sales Manager, reports, “Not only did our company and employees give monetarily but also gave of themselves to man eight drop off points throughout the day. We also provided American flags to everyone giving donations. At the end of the day we had collected over $11,000 for a matched total of $22,000. Even though hundreds of miles separate Moultrie from New York and Washington, WE MADE A DIFFERENCE.”

You’re in Good Company!
Have you thought about who’s a member of GBA – other than you, of course?  Here’s a breakdown:  

Thanks to all for your support!  There are only 12 banks statewide on GBA’s “Prospective Member” list. 

Regulators Comment at Conference
Almost a hundred bank CEOs and bank lawyers heard senior officials of the state and federal bank regulatory agencies discuss their concerns at a joint session during the recent CEO and Bank Counsel conferences.  Banking Commissioner Steve Bridges reminded those attending of the need to make their own credit decisions on loan participations.  He also said guidance would soon come from the Department dealing with loans to one individual having multiple corporations and how that may impact the bank’s lending limit.  The Federal Reserve’s Bill Estes covered the Fed’s Open Market Committee’s actions this year substantially dropping interest rates.  He discussed bank asset/liability management models and how most contained interest rate shock scenarios.  Now the models can be tested under real world situations and he urged bankers to use these recent rate reductions to test the accuracy of their models.  Archie Bransford, regional OCC head, discussed the slow-down in new chartering activity and the condition of the industry.  He suggested banks with large consumer loan portfolios be particularly mindful of these loans, especially when rates ultimately begin to rise.  The FDIC’s Chris Spoth discussed bank earnings and commended Georgia bankers for their continuing good performance and reported only 18 Georgia banks with a CAMELS rating less than two.  He stated the FDIC had been monitoring community bank deposit and loan growth and said they were in balance.  He also mentioned a recent FDIC study of real estate concentrations especially among more urban community banks.  Maria Richmond of the OTS discussed the changing demographics of thrift customers and the challenges of dealing with younger generations.  All the regulators suggested their examiners would be carefully monitoring the fall out from the events of September 11, but there was a sense of overall confidence by the regulators that the industry would weather the uncertainty.

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

GBA BankPAC Update
Since the last Bulletin, the officers and directors of  the following banks have participated in the Georgia BankPAC 2001 campaign by contributing to the GBA StatePAC:

Thanks to everyone for your support.  If you have questions or need additional information, please call GBA’s Elizabeth Way at (404) 420-2027.

ID Theft Town Hall Meetings
Bank presidents have received an invitation to a series of three Town Hall meetings GBA is cosponsoring with Georgia Attorney General Thurbert Baker.  The meetings are in Atlanta, Macon and Savannah on November 7, 8 and 9.  ID Theft has been labeled the fastest growing consumer crime and we hope our members will attend these meetings with other business, law enforcement and government officials.  Call GBA’s Joe Brannen at (404) 420-2026 with questions.

 

 Farm Bill Passes House
The U.S. House of Representatives passed a GBA-endorsed farm bill last week.  The bill, H.R. 2646, revives some subsidies Congress previously abolished and would add new subsidies important to peanut growers. Our thanks to our Agriculture Committee members, Saxby Chambliss, and Sanford Bishop, for their hard work.  The Administration asked Congress to delay action on the bill; however, the House leadership wanted to ensure that funding for farm programs would be set aside.  Please call GBA’s Elizabeth Way at (404) 420-2027 with questions.

Money Laundering Bill Out of Committee
The Senate Banking Committee has passed a money-laundering bill that includes provisions dealing with due process, consultation with banking agencies before adding more reporting requirements to banks, and the addition of more crimes to the list of money laundering offenses.  GBA President, Joe Brannen said, “It is clear that we need to improve the money laundering laws so our industry can continue their already-substantial efforts to stop illegal activity.  We are fortunate to have Sen. Zell Miller (D-GA) on the banking committee and he and his staff kept in close contact with us as the bill was being crafted.  We expect further fine-tuning will be necessary and look forward to working to improve the bill as it goes through the process.

Wartime Requirements
The Department of Housing and Urban Development and the Education Department have issued statements advising mortgage and student loan lenders that normal payment requirements are suspended for active duty members of the military. The Soldiers and Sailors Civil Relief Act prohibits mortgage lenders from charging more than a six percent interest rate or initiating foreclosures when military personnel go on active duty and for three months after they leave active duty. In addition, normal loan payment requirements were suspended for Federal Family Education Loans, William D. Ford Loans, and Federal Perkins Loans, allowing active duty military members to defer paying these loans.  We included more information about these requirements with the last Bulletin and have put that notice under the Federal Issues section of the GBA website.  We have also included information on the website from GBA’s Counsel, Walt Moeling, partner with Powell, Goldstein, Frazer and Murphy, about your bank’s responsibility to employees who may be called to active duty.  GBA will host a telephone seminar November 5 from 2:30 - 4:30 p.m. on the Soldiers’ and Sailors’ Relief Act.  This seminar also includes some information on new Insurance Sales Practices.  For more information, call GBA’s Elizabeth Way at (404) 420-2027 or Marybeth Jones at (404) 420-2032.

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

CEO and Bank Counsel Conferences Successful
Our thanks to GBA’s Community Bankers Committee for their sponsorship of the recent CEO Conference.  Kelly Hillis, President of the Bank of Perry, chairs the committee this year.  Also, our thanks to the Board of Directors of the Bank Counsel Section for their sponsorship of the annual Bank Counsel Conference.  Lem Hewes, partner with King & Spalding, chairs the Bank Counsel Board.  See the list of all tournament winners.  Also enclosed with this mailing for members of the section is this month’s edition of the Status of Important Banking Cases.  Call GBA’s Norma Guild at (404) 420-2031 with questions.

Funding Alternatives Workshop
As loan demand continues to exceed retail deposits, one of several key issues facing community bankers today is funding loan growth in the future.  In response, the GBA is offering a Funding Alternatives Workshop led by Karl Nelson of the Federal Home Loan Bank of Atlanta.  The seminar is being held in Macon on October 24th.  Please see the enclosed brochure for more details or call GBA’s Marybeth Jones at (404) 420-2032.

Fall Workshops
GBA’s Asset/Liability Management Committee is co-sponsoring two workshops this fall with the Financial Managers Society at the J.W. Marriott Hotel in Atlanta. The two-day workshop, Customer Profitability Measurement in Financial Institutions:  Accounting Implementation Issues, November 12-13, shows you how to get the most accurate data for decision-making with these measurement tools:  net interest margin and funds transfer pricing, activity-level standard unit costs and capital assignment and loss provisions.  The other two-day workshop, Controlling Information Technology Risks in Community Banks, November 13-14, covers the fundamentals of information technology (EDP) auditing and will address technology issues challenging the financial executive of a community bank.  There is an optional half-day session on AS/400 Security & Audit on the afternoon of November 12th.  Contact GBA’s Norma Guild at (404) 420-2031 additional information.

Southern Operations & Technology School Just Around the Corner
There is still time to register for the first year class in the Southern Operations and Technology School, which will be held on the University of Georgia campus November 4-9.  The School is the premier school in the southeast for operations and technology personnel and has been a mainstay for Georgia bankers since its inception in the 1970s.  We know this is budget time for next year and hope you will plan for your bank to be represented at other GBA schools:

Call GBA’s Marybeth Jones at (404) 420-2032 for more information. 

Basic Compliance Program: Two Programs in One
The GBA’s annual Basic Compliance Program will be held October 30–November 1 in Macon at the Crowne Plaza.  Deposit and Operations Compliance will begin on Tuesday, October 30th. Topics to be covered include internet operations compliance, the new privacy rules, FDIC insurance rules, and the Bank Secrecy Act.  On October 31st at 1:00 p.m., the Loan Compliance seminar will begin and provide a thorough overview of lending regulations and will feature the regulations that are on the examiners’ “hit list”. This discussion will continue into the next day and end after a full day on Thursday.  Blair Rugh, Senior Vice President with Kirchman Corporation in Orlando, Florida is back by popular demand to conduct both seminars.  This Compliance Program is designed in two separate back-to-back programs to accommodate bankers who have responsibility for both areas. Call GBA’s Marybeth Jones at (404) 420-2032 for more information.

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

 

Welcome New Participants
The Board of Directors of the GBA Insurance Trust, Inc. welcome the following participants to the Trust:  Farmers State Bank, Lincolnton, George Leverett, President, and United Commercial Bank, i.o., Ronnie Austin, President. They join more than 275 other community banks and associate members in this unmatched member benefit.  Please call GBA’s Susan Kelley at (404) 420-2017 for more information.

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-Bristow at (404) 420-2036.

Thumbprint Signature Program
Check fraud costs banks and their customers millions of dollars each   year.  In a statewide effort to combat crime and protect our members, Georgia Bankers Association is in it’s 4th year of endorsing the Thumbprint Signature Program.

This program provides a simple effective inexpensive method for preventing and deterring check fraud.  Help us send a clear message to criminals that check fraud will no longer be tolerated!!

How Does It Work?   When non-account holders ask to cash a check, in addition to requesting the standard forms of identification, participating banks also ask them to place an impression of their thumbprint on the face of the check.  A small “inkless” touch pad facilitates the process.  Although the touch pad looks and operates just like a traditional inkpad, it leaves no stain or residue on users or clothing.  The procedure is quick, simple and clean.  Banks do not maintain a data bank of Thumbprint Signatures.  These signatures are used by law enforcement officials only in cases where fraud is suspected.

The program works as a natural deterrent.  Criminals seeking to commit check fraud are unlikely to put their thumbprints on bogus checks.  Most likely they will try their schemes elsewhere, and those who are foolish enough to cooperate leave a positive I.D. that can be turned over to law enforcement.

Success Stories….   Since the inception of the program, a test group of participating banks has experienced an average 60% reduction in fraudulent checks passed by non-customers.  Thumbprint Signature has received widespread support from local law enforcement agencies.  When a bank reports an incidence of check fraud, often the first question asked is “Do you have a fingerprint?” And although the program is most effectively used as a deterrent, it has actually been used to help apprehend and identify criminals.

How Do We Get Started?   There is no start-up fee other than the cost of the actual Thumbprint pads and products themselves.  You’ll want to be sure to order decals to post at all entrances to let people know you are participating in the program and warn potential criminals that their crimes will not go undetected.  Teller window displays and statement stuffers are also available.  Just complete the order form on the reverse side and fax to (404) 522-9848 or call GBA’s Renee Valdez at (404) 420-2036. 

Claxton, Claxton Bank
Congratulations to CEO Wayne Collins and the officers, directors and staff for their recent 60th anniversary celebration.

Ellijay, Appalachian Community Bank
Tracey Newton has been promoted to Chief Executive Officer; Alan May to President.

Fitzgerald, Colony Bank
Donna Padgett has been promoted to Assistant Vice President and Scott Spivey to Investment Officer.

Jackson, First Georgia Community Bank
Sharon Vaughn has joined the bank as Vice President, Commercial Lending Officer; Laura Potts has been promoted to Vice President, Retail Banking Manager; and Dana Stephens to Assistant Branch Manager.

Macon, New South Bank
Carol Soto has joined the bank as Chief Financial Officer and Polly Smith as Executive Assistant.

Ringgold, Northwest Georgia Bank
Congratulations to President and CEO L. Wesley Smith for being recognized by the bank for 30 years of service.

Warner Robins, Colony Bank of Houston County
Brian Nash has been promoted to Mortgage Loan Officer.

GBA's e-Bulletin List
Our e-Bulletin subscriber list continues to grow with each edition.  Bankers from any member bank can be added to the email-distributed version of the Bulletin.  A bonus of getting the e-Bulletin is the number of links we include, which puts even more information at your fingerprints. This is a great way to keep your key employees informed of significant industry information, trends and events. To add yourself or others in your bank to the list, send an email containing the name and email address of each individual to GBA’s Lydia Thomas.

For more information, send an e-mail to the Webmaster.

GBA Staff e-mail and direct phone numbers, snail mail addresses, fax and phone numbers