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March 25, 2005

GBA has been closely following the activity in Washington as it relates to the ability of banks to engage in real estate brokerage and management.  The National and Georgia Associations of Realtors have worked to block the Treasury Department from granting that authority, and we hope the issue can be resolved this year.  Only one Georgia-chartered bank operates a real estate brokerage operation, but other members tell us they do not want that option blocked for the future.  At a recent conference, one banker reminded the attendees of how banks used to make most of the automobile loans, but now those loans are predominately made at the sale.  He asked those attending, “Do you want mortgage lending to go that same route?”  This banker predicted that outcome could occur if the Realtors were successful in eliminating mortgage lending from banks’ list of services.  GBA President Joe Brannen was interviewed by a real estate publication this month and discussed the bank-owned operation and how it worked.  Joe was quoted as saying, “The bank-owned Century 21 agency has functioned the same as any other real estate brokerage since the bank took ownership.  They’re in the same building they’ve always been in.  (The agents) are out there selling houses just like they always have. The agents associated with the brokerage are independent agents.  And for those consumers who also want loans, the office’s agents are placing loans with whatever mortgage company that’s the best deal. Less than 20 percent of the loans for the real estate brokerage’s customers are associated with the bank that owns the brokerage.”  Joe went on to characterize the Realtors’ response to the bank’s operation as “a total overreaction.” In a related development this week, the chairman and ranking minority member of the House Financial Services Committee have requested the Government Accountability Office to study the real estate market and price competition for real estate brokerage services.  Congressmen Oxley and Frank have both been supporting the banking industry’s efforts to go forward with real estate brokerage authority.

• Three Days Remaining in 2005 Session

• Gift Card Bill Slated for House Vote

• Notification Bill Reported from Rules Committee

• Tax Bill Out of Committee

• Authorized State Investments Bill Passes House

• Farm Equipment Lease Taxation Bill to Governor

• Motor Vehicle Sales Tax Bill Progresses

• Manufactured Home Title Bill Almost Done

• Meth Restrictions to Governor

We will be publishing these e-Legislative Update throughout the General Assembly session.  As a subscriber to our e-Bulletin service, you are able to link directly to the edition we've posted on our website.  Click on the hyperlinks to the bill summaries managed on the General Assembly's website to ensure you are viewing the most up-to-date versions of the legislation.  Please give us any feedback on this member service.

Webinars Now Available
In an effort to meet those never-ending training needs, GBA now offers web-based seminars—or webinars—to our members. This gives you the opportunity to have a seminar at your location without the travel. The registration fee of $235 allows you access to one website “seat,” one telephone site license and all handout materials. You may have as many people as you want participate in the webinar at your location. The webinars are live and allow time throughout for questions and answers. Future webinars will include:

• Electronic Fraud, April 5

• The New Accounts Desk: Understanding Needs, April 12

• Flood Insurance, April 14

• Rules for Advertising & Marketing Bank Products, April 19

• Compliance Issues for Real Estate Lending, April 21

If you are unable to attend the webinar but would like to have this information for training purposes, you may also purchase an audio CD, handout materials and a password to view the information online.  Note:  the Rules for Rules for Advertising & Marketing Bank Products is being offered at a special rate of $195.  Please contact GBA’s Fran Williams at (404) 420-2015 with questions.

Networking Opportunities Abound at Annual Convention
Details are being finalized for GBA’s 2005 Annual Convention scheduled for June 19-22 at The Ritz Carlton, Bachelor Gulch in Vail, CO. Several social and sporting events have been planned to give you the opportunity to network with your colleagues.  We will kick off the Convention with our Sunday evening “Mountainside Magic” Welcome Reception.  And, no convention would be complete without the traditional golf tournament slated for Monday afternoon at the Red Sky Golf Club’s Greg Norman course.  Also scheduled on Monday are the GBA Insurance Trust Business and Breakfast and the BankPAC Reception that evening.  We will close the convention in true Colorado style with the Chairman’s “Party on the Peak” farewell dinner featuring great food and fun activities for the entire family.  Please contact GBA’s Susie McGehee at (404) 420-2010 with questions.

Leadership Conference Plans Underway
Leadership GBA will host the 45^th Annual Leadership Conference at the Hilton Oceanfront Resort on Hilton Head Island, SC on July 17-20. In keeping with Leadership GBA’s theme, “Developing Tomorrow’s Leaders Today,” this year’s Executive Committee has planned a great program packed with an impressive group of speakers.  Topics include the economy, roundtable discussions, a legislative update and as always, excellent leadership training.  The event will also include several social and sporting activities to give you the opportunity to network with your colleagues.  Please direct questions concerning the conference or Leadership GBA in general to Susie McGehee at (404) 420-2010 or Fran Williams at (404) 420-2015.  Come take advantage of this excellent opportunity to learn and network with your peers.

National Teach Children To Save Day
The U.S. has the lowest personal savings rate of any major industrialized nation.  High school seniors averaged only 50 percent correct when tested on their knowledge of personal finance basics.  Teens spent and influenced the spending of a whopping $172 billion last year.  The need for financial education is greater than ever.  That’s why the ABA Education Foundation, along with Leadership GBA, is again taking steps to lead students on the path to a positive financial future. On Tuesday, April 26, 2005, bankers nationwide will speak at local elementary, middle and high schools to teach students the importance of saving money on National Teach Children to Save Day.  Their presentations will include discussions, games and activities about money and savings. To help prepare for a presentation, the ABA Education Foundation has created a turnkey resource kit that is easy to use and cost-effective. Included in the kit are lesson plans for grades K-12, age appropriate activities, a quiz for parents, and website suggestions. Click here to order your resource kit or simply call the ABA at 1-800-BANKERS, (catalog #889390). Participating in Teach Children to Save Day is also a great way for you and your bank to increase your PEP contacts. When you return from your presentation, simply complete the PEP Report Card. For questions, call GBA’s Fran Williams at (404) 420-2015.  Join your colleagues in making this one of the most successful educational events in ABA and GBA history.

Rural Development and Lending Conference Scheduled
The Rural Development and Lending Conference is scheduled for May 26-27 at the King & Prince Beach and Golf Resort on St. Simons Island.  The conference was planned by GBA’s Agriculture Committee chaired by Bill Twoney of Cook Community Bank in Adel.  A block of rooms has been reserved until April 26 so call (912) 638-3631 as soon as possible to make your reservations. Please call GBA’s Marybeth Jones at (404) 420-2032 with questions or to register.

$132,338 Distributed Among Georgia Banks
Financial institutions that are members of the ABA-sponsored and GBA-endorsed insurance program, underwritten by Progressive, will be sharing in a profit distribution of $4,000,000. The participating banks in Georgia that purchase insurance from the program will receive checks totaling $132,338 bringing the total distributed to Georgia bank to $1,390,000!  Nationwide, the program has distributed $50,000,000 over the past fifteen years. The program offers Directors & Officers Liability, Financial Institution Bond, Internet Banking Liability, Trust Errors & Omissions, Employment Practices Liability, Entity Errors & Omissions and other insurance products for community banks which include expansive coverage and increased benefit amounts and in most cases significantly lower rates.  Call GBA’s Renee Valdez at (404) 420-2036 with questions or to learn how you can be a part of this rewarding program.

Welcome New Participant
The GBA Insurance Trust, Inc. Board of Directors welcomes to the Trust Citizens Community Bank, Hahira, Glenn Copeland, CEO. This company joins 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.

Receive & Post Fraudulent Activity Free
Is your bank utilizing FinCrime?  Have you invited your local law enforcement to participate?  It is free and it is working.
In September 2003 the Georgia Bankers Association introduced FinCrime.com, a database channel facilitating the immediate distribution of information regarding fraudulent activity among financial institutions and law enforcement. Since FinCrime’s inception we have 298 registered users and have seen over 200 postings in the state of Georgia.

Each year, Georgia financial institutions lose millions of dollars due to check fraud, counterfeit checks, identity theft, robberies and various other types of financial crimes.  It’s a fact that these crimes are difficult to track and usually are spread among several financial institutions statewide and even nationwide.  Immediate notification and the ability to cross-reference these crimes will not only notify you, the bank, of a potential loss/crime but will also assist law enforcement with combining these crimes to not only solve the crime but to seek a tougher penalty.

The GBA has joined a network of state bankers associations offering this service to their members and local law enforcement.  Participating financial institutions share information in an online, searchable database of fraudulent activity.  The result-shared aggregate data identifies and links criminals to their acts.  Just this week, a Georgia bank posted a check fraud related incident and through FinCrime, quickly linked the incident to a similar incident previously posted in South Dakota.

The GBA is excited to see this program work and grow.  The positive feedback and the results that we have seen in Georgia are outstanding.  This program is simple and easy-to-use with immediate notification.   To get started, just log on to our website and follow the link or contact GBA’s Renee Valdez at (404) 420-2036.

Our thanks to GBA’s Security Committee for their assistance in reviewing the program and making the recommendation to the GBA Board of Directors to go forward with this project.  Also the Georgia Department of Banking and Finance recently made notice of the program in one of their monthly bulletins to state-chartered banks.  Sign up today.

Newsmakers:

Alapaha - Bank of Alapaha
Congratulations to Billy Hill, CEO, directors and staff on the celebration of their 100^th anniversary.

Athens - First American Bank
Dennis Young has been named Vice President and Oconee County Market Manager and Colin Stokes Branch Manager and New Business Development Officer.

Cornelia - Community Bank & Trust
The bank announces the following promotions: Randy Jones to Executive Vice President; Steve Wright to Senior Vice President; Carol Shirley to Small Business Administration (SBA) Manager; and Renee Bond, Martha Ledford, Carmen Maysonet, Natasha Sobieski and Audrey Wade to Banking Officers.

Hiawassee - Bank of Hiawassee
The bank announces the retirement of M. Lauch McKinnon, President and CEO, and the election of Jeff Patterson as President.

Jackson - McIntosh State Bank
Judy Jordan has been named Business Development Officer in McDonough.

Marietta - Highland Commercial Bank
Joining the bank as Vice President, Business and Personal Lending is Robert C. “Bob” Wade and as Senior Vice President of SBA and Commercial Lending is Allen R. McCurry.

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About the GBA  I  Professional Development  I  Government Relations  I  Services