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Credit Unions in the News
A number of our members have told us about the recent spate of news stories extolling the virtues of credit unions.  Of course many of these news stories have a “feel good” slant and seldom mention the real difference between banks and credit unions.  Georgia Trend magazine had a series of stories recently and GBA Chairman Jimmy Burnsed wrote a letter to the editor talking about how much in taxes his bank pays.  The Atlanta Business Chronicle recently focused on the financial services industry.  GBA President Joe Brannen said in a credit union article, “A bank has to price into their deposits and price into their loans the simple fact they have to pay income tax.  We don't mind competing head to head with branches, or customer loyalty, but when the government takes 40 percent of your net earnings, you have to factor that in.”

Annual Convention Reminder
A detailed confirmation package will be sent to all registered participants this week, so please check your records to make sure you have sent your registration into the GBA. The confirmation package will contain vital information that you will need to make final plans for your trip. There is still time to work out all your travel details. Call the GBA representative at Age of Travel at 1-800-878-4237 to secure a cost-effective flight. Call the Ritz-Carlton at 1-800-505-3914 by April 25 to make your room reservation and receive the group rate. If you have misplaced your registration packet, go to the web page and download a copy or call the GBA for a faxed copy. It’s not too late to join your friends and colleagues for an information-packed, fun-filled event. Call June Somers at (404) 420-2012 with questions.

2002 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

Regulatory Relief Bill Introduced
The Financial Services Regulatory Relief Act of 2002, H.R. 3951, was recently introduced in Washington.  Of particular interest to bankers:  

• Relax stock purchase requirements imposed on national bank directors (essentially requiring the purchase of subordinated debt instruments instead of equity), thus eliminating the need to count these directors towards the 75-shareholder cap on subchapter S banks.

• Expand discretion for federal regulators to extend the examination cycle of banks and savings associations, most likely targeted at smaller institutions.

Albany ID Theft Town Hall Meeting
The GBA is working with Attorney General Thurbert Baker to host an ID Theft Town Hall meeting. The meeting is set for April 11 at 1:00 at the Albany Commission Chamber. Call GBA’s Norma Guild at (404) 420-2031 with questions.

Legislative Update for April 5, 2002

Report from the Hill
GBA Chairman Jimmy Burnsed, Chairman and CEO of Bryan Bank & Trust in Richmond Hill, Team 21 Captain Wes Smith, President and CEO of Northwest Georgia Bank in Ringgold and Government Relations Council member Glenn Cornell, Senior Vice President, Bank of America, had a successful series of meetings in Washington, D.C. recently as part of the annual ABA Spring Summit.  Much of the focus was on deposit insurance reform and the real estate issue.  “We had the chance to meet with FDIC Chairman Don Powell who reiterated support for indexing FDIC coverage but not necessarily increasing it right away,” reports Jimmy.  “Chairman Powell also wants to address the ‘free rider’ issue for those firms that have coverage but have not paid into the fund.  We were impressed with the Chairman’s focus on the importance of the issue to community banks.”

FDIC released a series of statistics about the health of the deposit insurance fund.  There seemed to be great concern that the fund was hovering close to the mandatory 1.25% reserve level.  Should the fund fall below that level, banks would be forced to pay deposit insurance premiums.  FDIC also distributed information about the cost of increasing the deposit insurance coverage amounts.  They reported that if the coverage were raised to $130,000 per account and the reserve ratio was below 1.25%, there would be a probable 7 basis point charge necessary to accommodate the increase.  The new premium cost to Georgia banks would be around $70 million.

Meetings were also held with Senator Miller and Congressmen Deal, Kingston and Isakson.  All were interested in the real estate issue as the delegation was hearing from both realtors and bankers.  Bankruptcy reform was also discussed and there is some optimism this issue can be resolved this year.  Most predicted FDIC reform legislation would begin moving soon.

Calendar of Events
Schools
Conferences
Seminars
Events
American Institute of Banking
Leadership GBA
Personal Economics Program (PEP)
Internet Training

Banking Today Course Available
Banking Today is a self-paced Internet course designed for newly promoted or recently hired managers/officers, management trainees, and specialists in non-banking specific functions such as marketing, data processing and human resources. The six-hour course provides an orientation to the essential principles, concepts, and operations of banking.  Participants gain an understanding of how banks function as a business and the important role they play in the U.S. economy. The individual price for the course is $225 including the textbook, but package deals are available for banks with ten or more participants. For additional information, please contact GBA’s Edie Canales at (404) 420-2034.

Leadership Conference Scheduled
Leadership GBA will host the 42^nd Annual Leadership Conference on July 28-31, 2002 at the Amelia Island Plantation in Amelia Island, Florida.  In keeping with Leadership GBA’s theme, Developing Tomorrow’s Leaders Today, the Executive Committee has planned a great conference that promises to be educational and enjoyable.  Michael Woody will present four distinct challenges facing lenders today.  Back by popular demand, Carolyn Humphrey will challenge you to examine your leadership abilities.  Certified Covey trainer Ellen Raulerson will share the Seven Habits of Highly Effective People.  No conference would be complete without an economic update.  Dr. Tony Spiva will share his views on the state of the economy as well as provide an economic forecast.  This conference also provides an excellent opportunity for you to network with your colleagues throughout the state. If you have any questions about the conference, please call GBA’s Susie McGehee at (404) 420-2010.

Executive Management Academy
The third session of the Executive Management Academy will be held April 22 at the City Club of Macon and will focus on Relationship Management/Marketing Strategies. Dr. Jim Verbrugge, GBA Chair of Banking, Department of Banking and Finance and Director, Center for Enterprise Risk Management in UGA’s Terry College of Business, will facilitate the session. Discussion will include managing the relationship with the Board of Directors, managing relationships with shareholders and the community at large, understanding the customer base in the market and their changing needs, and becoming proactive in preparing the bank for the dramatic changes underway in the marketplace and the risks and opportunities imposed by competition and technology. The Executive Management Academy is designed in a peer-to-peer roundtable format and addresses issues of importance to executive management. You may attend all six sessions or select individual sessions based on the content. For more information, call GBA’s June Somers at (404) 420-2012.

Bankers Insurance Network Peer Group
April 17^th is right around the corner!  The first quarterly peer group session will be held at City Club of Macon on the 17^th. Ted Vandenberg, Vice President of AON Risk Management Services, will facilitate this session.   Please call Renee Valdez at (404) 420-2036 for registration information.

Local Telephone Service - You have a choice
Is your bank located in the BellSouth market?   If you answered yes, you now can receive a 20% discount on all business line charges and a 10% discount on all features.  You will enjoy the same reliable network and there are no charges to your current telephone numbers or features.  The only change would be Lightyear doing the billing and providing superior customer service.  Your bank would also receive a low Long Distance rate of only 4.9¢ per minute for all state to state and instate calls on Lightyear local lines.  Lightyear currently serves 100+ banks throughout Georgia and has been a GBA partner since 1998.  To get started with these tremendous savings and superior 24/7-customer service simply complete an application, located on the reverse side of this page, and fax it to (229) 245-0199.

Alliance Benefit Group Honored
GBA Retirement Services, Inc. is pleased to announce that its 401(k) administrator, Alliance Benefit Group (ABG), has earned the highest available grade of AAA Service Level for 401(k) Administration and has been identified as a leader in client satisfaction among its peers by 401k Exchange, an independent industry research company. ABG has also added many new website enhancements, including more detailed account information by contribution source and enhanced capabilities for rebalancing accounts. Please contact Mandy Richards with questions about the new enhancements. The programs offered through the GBA Master Trust provide flexibility to meet the needs of any bank or associate member who may be looking to add or change their qualified retirement plan. The Master Trust provides high quality, affordable pension, profit sharing, and Section 401(k) programs for banks of all sizes. Please contact Mandy Richards at (404) 420-2025 or Bruce Shaw at (770) 642-2150 for information on how GBA Retirement Services can help design a retirement plan for your bank.

Welcome New Participants
The Board of Directors of the GBA Insurance Trust, Inc. welcomes to the Trust McIntosh Commercial Bank, I.O., Carrollton, William Gafford, Jr., CEO; American Trust Bank, Roswell, Gerald Lewis, CEO; and Index Powered Financial Services, LLC, Leawood, KS, Robert Colvin, CEO. These banks and associate members join more than 275 community banks and associate members in this unmatched member benefit. Please call GBA’s Susan Kelley at (404) 420-2017 for more information.

Alpharetta, Bank of North Georgia
Recently promoted were Diane Boston to Chief Administrative Officer; Frankie Roedl to Executive Vice President and Manager of Commercial Banking; Kris Reece to Community Executive; Keith Morris and Richard Spink to Regional Community Executive; Stephanie Nicholson to Manager of Human Resources. Joining the bank are Pamela Hubby as Senior Vice President and Manager of Strategic Initiatives; Andy Jordan and Brian J. Baker as Community Lender; Cary E. Sullivan, Jr. and Johnny Vance as Commercial Lender. 

Athens, Athens First Bank & Trust Company
The bank announces the following promotions and additions: Bill Douglas to President and CEO; Toombs Lewis to Vice President; Kierston Waltong as Cash Management Specialist; and Troy Vollenweider to the Management Associates Program. Alison Norris has been named to Commercial Lender; Juanita Broom to Sales Manager; and Towana Johnson, Joe Hill and Claudia Wiseman to Senior Customer Service Manager.

Cordele, PlantersFIRST
William Bailey has been appointed to Vice President/Private Banking and Tammy Davis to Internet Bank Branch Manager.

Peachtree City, Peachtree National Bank
Congratulations to Thomas Farr, Executive Vice President and Chief Operating Officer, for being selected Employee of the Year.

Pelham, Pelham Banking Company
Suzanne T. Anderson has been elected President and CEO to replace Walt C. Bernier, who is retiring after 47 years of service.

Statesboro, Farmers & Merchants Bank
C. Ricky Nessmith has been promoted to President and CEO.

Suwanee, Quantum National Bank
Ronna Devlin has joined the bank as Operations Manager.

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.

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