A regular electronic publication of the Georgia Bankers Association

www.gabankers.com

About the GBA
Board of Directors
Bank/Thrift CEOs
Georgia Banks Online
Associate Members
Strategic Partners & Products
Bank Counsel Section
Volunteer Committees
Electronic Publications

Realtors Making Gains
The Realtors are slowly picking off members of the Georgia delegation by getting them to agree to cosponsor the two bills that would prohibit banks from engaging in real estate brokerage and management. Just last week, both Senator Saxby Chambliss and Congressman Jim Marshall signed on. Legislators and their staffs continually tell us that bankers are not at all concerned about this issue–or at least not concerned enough to write a letter or make a phone call. The Realtors are bombarding the Capitol with their anti-banking rhetoric and are winning. GBA Chairman-elect Dan Blanton, President of Georgia Bank & Trust in Augusta said, “At the Public Affairs Committee meeting last week, there was unanimous support for our retaining the right to broker real estate, but clearly we have to get more serious about contacting Congress. I urge all our members to write or call their Member today.”

Leadership Plans Year
Our thanks to the 150 plus bankers who gathered last week at Sea Island to participate in GBA’s annual Organizational Meetings.  These meetings have traditionally been held at the beginning of GBA’s fiscal year to give all our volunteers the chance to hear our elected Chairman discuss the plans for the year as well as to organize each of our standing committee’s agendas for the new year.  GBA Chairman, Ed Milligan, Chairman and CEO of Main Street Banks, Inc. in Atlanta, addressed those attending and encouraged their active participation.  “Our emphasis this year will be on doing a better job of telling the positive story of banking.  Our banks are different from the others in the financial service marketplace, and it is important that we help the public understand that.  Our banks are the lifeblood of our communities and our state, and I hope every banker in Georgia will join us this year in speaking out about that,” he stated.  At meetings, Elaine Demarest of Demarest Strategy Group and GBA Associate Member representative to the Community Bankers Committee, presented demographic information about the Georgia banking market.  Some of the highlights:

• Since 1998:

  • the number of banks chartered in Georgia has shrunk from 349 to 319

  • 65 de novo banks were opened during this same time period

  • the number of banking offices grew from 2,100 to 2,441

• Georgia has the second highest number of residents per banking office; only Florida has more.

• Some overall balance sheet trends

  • high loan to deposit ratios/tight liquidity

  • more commercial real estate

  • more reliance on non-core funding

• Some significant income statement trends:

  • declining profits, ROA and ROE

  • declining net interest margins

  • more reliance on non-interest income

• Profitability

  • at 1.4% in 2002, Georgia banks were at a 5 year low in return on assets

  • banks under $100 million had a 0.81% ROA

  • banks with assets between $100 million and $1 billion had a 1.24% ROA

  • banks with assets over $1 billion had a 1.48% ROA

2003 State Legislative Issues
Governor Sonny Perdue
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 our last report, the following companies, their officers and directors have participated by contributing to the GBA FedPAC:

• Tom Wiley, CEO, Flag Bank, Atlanta

• Leighton Alston, CEO, West Georgia National Bank, Carrollton

• Lee Northcutt, CEO, Farmers & Merchants Bank, Lakeland

• Jeff Parrish, CEO, The United Banking Company, Nashville

• Chuck Williams, CEO, North Georgia Bank, Watkinsville

Debt Cancellation Contracts Ok’d
The Georgia Department of Banking and Finance has issued guidance and proposed regulations which govern the use of Debt Cancellation Contracts and Debt Suspension Agreements. Most of our members are unfamiliar with these products, but they work in much the same way as credit life and disability insurance. We encourage our members to carefully review the Department’s information about these products prior to offering these services to your customers.

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

Executive Management Academy’s Fifth Session Rescheduled
The fifth session of the Executive Management Academy has been rescheduled to July 21 at the Crowne Plaza in Macon. This session will focus on Asset/Liability Management and Rob Cochran, Senior Vice President and Treasurer at United Community Banks, Inc. in Blairsville, will facilitate. Discussion will include the objectives of the investment portfolio, risk/return characteristics of the investment portfolio, portfolio strategies, the purpose of liquidity management, alternate sources of funding, how to measure and monitor interest rate risk, interest rate derivatives and balance sheet strategies. 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.

ABIA’s Annual Conference in Atlanta
The American Bankers Insurance Association’s 2003 Annual Conference will be held October 8-10 at the Atlanta Marriot Marquis and GBA members can take advantage of the discounted ABIA member rate, a savings of $700 if you register before July 31^st. See the full color brochure for more information. Please forward your registrations to Renee Valdez to ensure the discounted rate is applied appropriately.

Legislative Update at Leadership Conference
Final preparations are being made for Leadership GBA’s 42^nd Annual Leadership Conference.  This year’s event will be held on July 13-16 at the Amelia Island Plantation in Amelia Island, Florida. Earl Rogers, Senior Vice President with the Georgia Chamber of Commerce, will join us to discuss issues of interest to the business community that are before the General Assembly and Congress. In an effort to help ensure a business friendly climate in Georgia, the GBA participates in the lobbying of general business issues in conjunction with the Chamber. If you would like to attend this event, there’s still time to register. For questions, call GBA’s Susie McGehee at (404) 420-2010.

Bank Card School Comes to Georgia
The ABA Bank Card Management School has a new location and a new curriculum for 2003. ABA has chosen Emory University Conference Center in Atlanta for the 2003 school that will be held August 10-15. Since its inception in 1971, the school has been held in Norman, Oklahoma. The new curriculum, which focuses on providing a fundamental understanding of the bankcard business in the United States, covers each of the major functional areas of consumer credit card issuance and how these critical components interrelate. If you have someone who is new to the bankcard business, or someone who wants to build and expand their current knowledge base, The ABA Bank Card Management School is the answer. All GBA member banks can send students at the member rate. If you want an application or more information, call GBA’s June Somers at (404) 420-2012.

Long Term Disability Policy Enhanced
The Insurance Trust’s Board of Directors voted at their recent meeting to upgrade the disability plan of benefits without any additional rate increase. The enhancements will become effective July 1, 2003. Most of the enhancements are geared toward encouraging employees to continue to work under partial disability. A voluntary rehabilitation and return to work assistance program will be a part of the plan of benefits. Emergency medical assistance when traveling 100 or more miles away from home or in a foreign country will also be an additional benefit. Those banks that are participants of the plan will receive more information within the next month. For additional information on the policy or how your bank can be covered, please call GBA’s Susan Kelley at (404) 420-2017.

Welcome New Participant
The Board of Directors of the GBA Insurance Trust, Inc. welcomes to the Trust Community Bank Mortgage, Milledgeville, Jacqueline Cruce, CEO. The company joins 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.

Summer Financial Directories
The Summer 2003 Financial Directory has arrived! The directory provides you with quick access to information on all commercial banks and thrifts in the state of Georgia as well as with information about our GBA standing committees. If you are on our standing order list, you will receive your copy during the first week of July. If you need additional copies or would like to order yours, please contact GBA’s Renee Valdez at (404) 420-2036 or Kenyetta Parks (404) 420-2035.

Welcome New Associate Members
Congratulations to the following companies for being approved for Associate Membership at the June 20, 2003 Board Meeting:

• BankersforHire.com, Inc., Alpharetta, Randall Clark, President

• The Graytrout Group, Dahlonega, Betty Trout, President

• Howe Construction, Inc., Roswell, Stan Howe, President

• ITC DeltaCom, Marietta, Larry Williams, Chairman & CEO

• Postini, Inc., Redwood City, California, Shinya Akamine, CEO

• Prime Placements, Winder, Randy Blalock, President

Are You Taking Advantage of your GBA Member Benefits?
Get the Plans and HR Tools that Employment Regulators Demand

Affirmative Action Plans
Required for Banks with 50 or More Employees
Take advantage of the system Employment Law Compliance (ELC) has developed to cost-effectively prepare and update bank affirmative action plans. They use bank-specific narrative language reflecting the significant changes to OFCCP regulations.  They also use automated statistical analysis to reduce the burden of data collection and increase regulator satisfaction.  You will receive Plans for Women and Minorities, Covered Veterans and Individuals with Disabilities, and the postings, notices, disclosures and forms necessary to implement the plan terms.

Bankers’ HR Toolkit™
The Toolkit™ provides all the essential human resources components a community bank needs.  You don’t have to think about what is required or whether you have it. It’s all here. With the Toolkit, you get what you need to: achieve effective selection of new employees; maintain appropriate policies; manage performance, record retention and compensation in a compliant manner; and more. When the materials need to be changed to be compliant with new regulations or best practices, we refine them for you.

This is the banking specific program you have been looking for. You’re not just getting documents, you’re getting a complete program, and the reassurance that it has been put together by employment compliance professionals who are highly knowledgeable and experienced in banking.  The Toolkit™ is comprised of various sections.  Each section has all the guidelines, forms, checklists, templates and other tools you need, from drafting a new position description to negotiating a separation agreement. 

You asked.  We answered!

Join Our Email Distribution List
A bonus of getting the e-Bulletin and e-Legislative Update is the number of links that are included. This is a great way to keep your key employees informed of significant industry information, trends and events. We do not disclose email addresses and only use them for internal communication purposes. Bankers from any member bank can be added to the email distribution list by sending an email containing the name and email address of each individual to GBA’s Lydia Thomas. 

Albany, HeritageBank of the South
Len Dorminey has been named Chief Executive Officer to replace retiring CEO Lee Bettis.

Gainesville, Gainesville Bank & Trust
Velma Warren has joined the bank as Vice President and Manager of the Friendship Road office in Buford.

Lavonia, Northeast Georgia Bank
Jason Meentemeyer has been promoted to Assistant Vice President.

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