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May 7, 2004
 

> Bankers DC Trip Successful  More…
> SEC Exempts Banks  More…
> New FDIC Publications  More…
> GBA BankPAC Update  More…
> Organizational Meetings Approaching  More…
> Live Online Seminars  More…
> Congratulations to the Class of 2004  More…
> There’s Still Time to Register for the Bank Security Conference  More…
> Pledging Pool Continues to Soar  More…
> Welcome New Participants  More…
> Is Check Fraud Draining Your Income?  More…
> Overtime Exemption Assessment  More…
> Add GBA to Safe Sender List  More…
> GBA Job Bank  More...
> Congratulations  More...
> May Professional Development Calendar
 > 2004 Calendar of Events
 
Bankers DC Trip Successful
Our thanks to the 22 participants who went to Washington, D.C. this week to visit with the Georgia Congressional Delegation and federal regulators.  “The climate in Washington is such that little, if any, substantive banking legislation will pass this year,” said Dan Blanton, Chairman of GBA’s Public Affairs Committee and President and CEO of Georgia Bank and Trust in Augusta.  “Nonetheless, it was important for us to get before the policymakers to share our views,” he said.  Here are some of the key issues discussed:

OCC.  The Comptroller’s recent preemption regulation is controversial among the state bank regulators and some Congressional offices.  Legislation is pending in the House and Senate to overturn the Comptroller’s ruling which GBA feels is premature.

FDIC.  The health of the banking system remains strong.  The chief legal counsel for FDIC said they were looking at their statutory authority to determine if FDIC could issue a preemption ruling similar to the OCC ruling, which would apply to state-chartered banks.

Federal Reserve.  Fed Governor Susan Bies told the bankers of the Fed’s concern with recent FASB statements regarding the accounting treatment for loan participations.  The Fed, OCC and FDIC have each written strong letters in support of bankers’ concerns relative to the FASB’s misguided approach.  Governor Bies, as chair of the Fed’s regulatory and supervisory activities, encouraged bankers to let members of Congress know the importance of reducing the growing regulatory burden faced by banks of all sizes.

House delegation.  We primarily discussed the credit unions’ attempt to expand their commercial lending authority while reducing their capital requirements.  We were pleasantly surprised with the reception most Congressmen had to our concerns.

Senators Miller and Chambliss.  Both Senators asked about the OCC’s preemption and credit union competition.  Both also discussed the partisan tone in the Senate and how difficult it is to get legislation through.  GBA presented Sen. Miller with a gift in special recognition of his many years of service to the people of Georgia and for his longtime support of the banking industry.

Other issues brought up during the visit at various offices were regulatory burden relief, a level field playing field with real estate sales, FDIC insurance reform, bankruptcy reform and GSE modernization.  Overall, the trip was an outstanding success with lively dialogue among the bankers, regulators and elected officials.

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SEC Exempts Banks
The Securities and Exchange Commission adopted a final rule this week exempting banks from Section 402 of the Sarbanes-Oxley Act.  This Section prohibits companies from making personal loans to directors.  Because bank loans were already covered by other federal law, the Act was amended to contain a carve-out for Regulation O loans. The rule implements that section.

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New FDIC Publications
The FDIC has published two new deposit insurance brochures for bank customers.  The first, Insuring Your Deposits, is a basic explanation of federal deposit insurance coverage; and the second, Your Insured Deposits - FDIC's Guide to Deposit Insurance Coverage, is a comprehensive explanation.

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GBA BankPAC Update
Since our last report, the following companies have participated by contributing to the GBA StatePAC:

In addition, officers and directors of the following companies have contributed to the GBA FedPAC:

  • Danny Brinks, CEO, Bank of Upson, Thomaston
  • Tommy Phelps, CEO, Citizens Bank, Thomson

Thanks to all for your support. If you have questions or need additional information, please contact Elizabeth Chandler at (404) 420-2027.

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Organizational Meetings Approaching
The Annual Organizational Meetings will be held June 22-25 at The Cloister on Sea Island.  These meetings provide an opportunity for our volunteers to interact with the GBA officers and staff and to get to know the members of our other committees.  If you are a volunteer and have not yet made lodging arrangements or if you are interested in volunteering to serve on a committee, please call GBA’s Marybeth Jones at (404) 420-2032.

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Live Online Seminars
GBA and The Graduate School of Banking at the University of Wisconsin-Madison will offer two seminars in June.  These seminars are divided in two 90 minutes sessions each.  You pay only one site registration fee for as many participants as you wish.    The convenience of the short sessions and the economical site fee are just a few of the reasons these programs continue to gain in popularity with our members.  Seminars available in June are:

For details, please contact GBA’s Edie Canales at (404) 420-2034.

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Congratulations to the Class of 2004
The graduation ceremony for 51 Georgia bankers graduating from the Georgia Banking School was held on April 30 at the Center for Continuing Education on the campus of the University of Georgia.  The Georgia Banking School prepares first-level managers to effectively and profitably serve the public by developing a thorough understanding of banking practices, regulations and management principles.

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There’s Still Time to Register for the Bank Security Conference
The program topics for the Bank Security Conference on May 20-21 at Callaway were specifically chosen by GBA-member security officers who were asked to select issues most relevant to their activities. As a result, the program represents current “hot topics” and the speakers selected are a team of high profile experts in each area. A unique feature of this conference is the “Train the Trainer” approach. Each attendee will receive an individual PowerPoint presentation on CD for each topic, which will enable them to enhance their own training program back at the bank. Thanks to Kay Moon, Committee Chair and Vice President of West Georgia National Bank in Carrollton, and the Security Committee for their expertise in planning this event. Please call Callaway at 1-800-CALLAWAY for room reservations or GBA’s Marybeth Jones for more details.

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Pledging Pool Continues to Soar
We are excited to continue witnessing the success of the Georgia State Pledging Pool. Numerous banks of all sizes continue utilizing this program, taking advantage of the benefits associated with it!  Administered exclusively through GBA Services Inc., the Program has seen a dramatic increase in awareness throughout the public sector. The Pledging Pool allows for better control of the 110% requirement with far less administration, allowing you, the bank, to better maintain your excess collateral. It also allows for your bank to treat all of the deposits with a "pool" of securities rather than a dedicated method. As one account's deposit increases, a corresponding amount for collateral does not necessarily need to. To learn more about it, please call GBA's Renee Valdez (404) 420-2036.

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Welcome New Participants
The Board of Directors of the GBA Insurance Trust, Inc. welcomes to the Trust Hamilton State Bank, Braselton, Robert Oliver, CEO, and Flint River National Bank, Camilla, Gerald Lewis, CEO. These companies join more than 290 community banks and associate members in this unmatched member benefit. Please call GBA’s Susan Kelley at (404) 420-2017 for details.

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Is Check Fraud Draining Your Income?
Lower your bank's check fraud by participating in GBA's Thumbprint Signature Program. The device known as the Thumbprint Signature touch pad is intended to deter counterfeit and stolen check fraud by obtaining a thumbprint signature from non-customers when cashing on-us and not-on-us checks.  Law enforcement agencies can use the thumbprint signature to investigate account holder fraud claims and a financial institution's usage of the program is a natural deterrent.  No database of fingerprints is kept and the signature will be shared with law enforcement only in cases of suspected fraud. This inexpensive program can decrease your check fraud loss immediately. For more information or to order this unique program, please call Renee Valdez (404) 420-2036 or Kenyetta Parks (404) 420-2035.

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Add GBA to Safe Sender List
In an effort to reduce the amount of spam that reaches their email boxes, many companies have begun using anti-spam services. This, along with Congress’ continued efforts to improve the recently enacted CAN-SPAM Act, that task should become easier. In order to receive the GBA’s e-Bulletin and e-Legislative Update in the meantime, your company’s email controls must be set to accept them.  Please have your system administrator to add the GBA to your safe sender list. Please contact GBA’s Lydia Thomas with questions.

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Overtime Exemption Assessment
 The Fair Labor Standards Act requires the payment of one and a half times the regular hourly rate for all hours worked in excess of forty during the workweek.  The misclassification of employees as exempt continues to be a major area of exposure for banks.  On April 21, the United States Department of Labor issued the first major reform of the white-collar exemption in almost seventy years of its existence.  The new rules go into effect on August 23, 2004.

The new rules offer an opportunity for banks to review their classification of exempt and non-exempt employees, and to bring the exempt/non-exempt treatment of positions into line with the regulations, while minimizing exposure to employee claims based on misclassification. The Overtime Exemption Assessment provides step-by-step guidance specifically designed for the banking industry on how to meet the August deadline for compliance.  The ninety (90) page Assessment has been designed for Employment Law Compliance by Boyd & Greene, LLC, national experts on Wage and Hour law, and a team of employment compliance professionals with many years’ experience assisting banks.  Look at these components addressing the new rules:

 

  • Easy to read Comparison Charts giving an overview of the most significant bank industry differences between the new regulations and the old.
  • Overtime Exemption Checklists that allow position-by-position assessment of classification compliance.
  • Job Evaluation Questionnaires to aid in developing FLSA-compliant job descriptions for your Bank.
  • Model Job Descriptions incorporating the elements of the new regulations for the most common Bank positions.
  • Guidelines for implementing a “Good Faith Compliance Initiative” that allows the Bank to retain exempt status, even after making improper deductions.
  • Key DOL authorities impacting community banks.
  • Checklists covering Record keeping, Hours Worked, Minimum Wage, and Computing Overtime Payments for non-exempt employees

·         Halftime Overtime Premium and Coefficient Table

  • Wage-Hour Investigation Guidelines

The Overtime Exemption Assessment will become available on May 14, 2004.  Through GBA’s Strategic Partnership with Employment Law Compliance, GBA members will receive the Assessment at a special price of $395.  GBA members interested in purchasing the Overtime Exemption Assessment, may preorder by contacting GBA’s Renee Valdez or  (404) 420-2036.

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GBA Job Bank
The Georgia Bankers Association offers free job posting resources for our member banks.  These listings can be viewed online or through our bi-weekly publication included in the GBA Bulletin.  Resume postings are also available.  For more information please contact GBA’s Renee Valdez (404) 420-2036 or Kenyetta Parks (404) 420-2035.

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 Congratulations to the following:

 Atlanta - Flag Bank
The bank announces the following additions and promotions: James E. Trimble, Jr. as Senior Vice President, Private Banking and Michelle G. Annett as Assistant Vice President, Branch Manager, Dunwoody. Jason G. Sleeman to Assistant Vice President, Branch Manager, Alpharetta; F. Richard Gaines to Assistant Vice President, Branch Manager, Powers Ferry Landing; Shaun Tinsley to Assistant Vice President, Branch Manager, East Cobb–Woodlawn; and James H. Owens to Assistant Vice President, Branch Manager, East Cobb–Lassiter.

 Barnesville - First National Bank of Barnesville
 Richard E. Cathey has joined the bank as Executive Vice President.

 Cartersville - Century Bank of Bartow County
Greg Smith has joined the bank as Banking Officer, Commercial Lending.

 Cordele - PlantersFIRST
Donna Rentfrow has been appointed Chief Operating Officer.

 Gainesville - Gainesville Bank & Trust
Cile Gierhahn has joined the bank as Vice President and Training and Development Manager.

 Peachtree City - Peachtree National Bank
 William C. Crowley, Jr. has been promoted to Executive Vice President.

 Statesboro - Sea Island Bank
Swaine Nichols has joined the bank as Commercial Lending Officer and Debra Standridge as Branch Manager.

 Savannah - The Coastal Bank
Kevin C. Pashke has joined the bank as Senior Vice President and Pamela Brandt as Mortgage Sales Manager and Senior Vice President.

 Zebulon - United Bank
The bank announces the following promotions: Douglas J. Tuttle to Chief Operating Officer; James L. Ogletree to President-Griffin; Scott W. Swafford to President-Thomaston; and Robert H. Tenney, Jr. to President-Barnesville.

www.gabankers.com

 About the GBA  I  Professional Development  I  Government Relations  I  Services