About the GBA
I Professional Development I
Government Relations I
Services
May 6, 2005
The U.S. House of Representatives has passed H.R. 1185, the Deposit Insurance Reform Act of 2005. As we reported in last Friday’s e-Bulletin, the bill limits the insurance fund’s overall growth and the premium charges for the highest-rated institutions during good times; establishes an individual institution’s interest in the fund to address fast-growing institutions’ participation in the fund; indexes coverage to inflation and adds additional coverage for retirement accounts. The bill now goes to the Senate for consideration. The House has taken quick action on this bill along with the bankruptcy reform legislation already signed by the President. The House could consider the corporate checking account legislation soon. We understand their intent is to get these bills through the process to clear the way for what could be a longer, more protracted debate on legislation to reform the system governing Fannie Mae, Freddie Mac and the Federal Home Loan Banks.
Banks, Credit Unions in the News
In the May 2005 issue of Georgia Trend magazine, there are several stories of interest to our members. Congratulations to Bartow Morgan, President and CEO of Brand Banking Company for his and his family’s recognition as the Century Award winner given by the Cox Family Enterprise Center at Kennesaw State University. A story in the magazine talks about the bank’s founding 100 years ago and how Bartow, his brother, Brand, and sister, Laurin, are the fifth generation of family members providing leadership for this highly successful community bank. There’s also an article entitled The Other Financial Institutions which is a story about the growth of credit unions. Several fast-growing credit unions are highlighted and they talk openly about their aggressive plans to go after both new members and commercial loans. GBA President Joe Brannen was interviewed for the article and discussed the industry’s concern about the un-level playing field banks, especially community banks, experience when competing with these institutions. “The ones that we have any beef with are those credit unions with community based charters or the large, fast growing ones that want to do everything a bank does, but without the same tax and regulatory treatment. They want to go after the same customer base that a bank can go after, but they don’t want to pay the same taxes that banks pay,” Joe said for the article. There is yet another article about Metter banker Dennis Allen and his strategy in serving the Hispanic community through his bank-within-a-bank, Primer Banco Nacional.
Federal Legislative/Regulatory Priorities
With the last Bulletin we mailed to our members, we included a survey for CEOs to help us prioritize federal issues. Here’s a list of your top five issues:
Credit Unions. You want us to oppose expanding credit unions’ commercial lending authority while reducing their capital requirements and support tax and regulatory treatment similar to banks. Some suggested trying to get Congress to lower bank taxes and to run more ads showing the difference between how banks and credit unions are treated.
Regulatory Burden Relief. You told us to focus mostly on the Bank Secrecy Act and Money Services Business, but to emphasize how the growing regulatory burden is creating enormous hardships for banks in serving your customers.
Industrial Loan Companies. You want us to support legislation prohibiting commercial companies like Wal-Mart from getting an industrial loan charter.
Community Reinvestment Act. You want us support the pending regulations raising the small bank exam threshold to $1 billion.
Government Sponsored Enterprises. You want us to make sure the Federal Home Loan Bank System is protected and several suggested adding the Farm Credit System to the debate.
50-year Bankers to be Recognized
GBA is proud to honor Georgia bankers who have devoted 50 years or more of service to the banking industry at this years Annual Convention in June. Please help us properly recognize the bankers who have reached this important milestone by sending a letter to GBA’s Susie McGehee with the following information: the bank’s name, the banker’s name and current title, his or her years of service, a brief work history and a photograph. Also include your name as the nominating banker. This information must be received in the GBA office by May 20. If you have any questions, please contact Susie at (404) 420-2010.
Networking Opportunities at Leadership Conference
Details are being finalized for the 45th Annual Leadership Conference scheduled for July 17-20 at the Hilton Oceanfront Resort on Hilton Head Island, SC. Several social and sporting events will give you the opportunity to network with your colleagues. We will kick off the conference with our Sunday evening Reception and Dinner which will feature a great seafood buffet and many fun activities for the entire family. And no Leadership Conference would be complete without the traditional Golf, Tennis and Volleyball Tournaments. The Scramble Golf Tournament and Tennis Tournament will be held on Monday and the Volleyball Tournament will be held on Tuesday. We will close the conference with our traditional “farewell” reception and dinner on Tuesday evening. Please call GBA’s Susie McGehee at (404) 420-2010 or Fran Williams at (404) 420-2015 with questions about the conference.
Identity Theft Symposium
The FDIC is sponsoring a symposium on identity theft titled Fighting Back Against Phishing and Account Takeover on Friday, May 13, from 8 a.m. – 12:30 p.m. Experts from federal and state agencies, the banking industry, consumer organizations, and law enforcement will discuss current efforts by each to combat phishing and account hacking, and educate consumers on avoiding scams that can lead to account hacking and other forms of identity theft. Three panel discussions will address federal and state efforts to combat phishing and identity theft; the industry perspective on what is being done and what can be done to fight this problem; and the consumer perspective, focusing on the various scams that can lead to account-hijacking and other forms of identity theft as well as consumer education efforts to help consumers avoid phishing scams and to limit the problem should they become a victim. Online registration is available. Please register no later than one week prior to the event.
FDIC Chairman Visits Georgia Bank
Marc Greene, President of Mountain Valley Community Bank in Cleveland,
his
staff and board had a nice visit recently by one of the most important names in
banking–Don Powell, Chairman of the
Federal Deposit Insurance
Corporation. Chairman Powell was in Georgia on other business and visited
the bank during a routine field examination. Chairman Powell is known for his
interest in the real work of the FDIC, and he wanted to visit with a successful
de novo bank to talk with the local examination team, the bank management and
the board about their experience.
“It was an honor and privilege
to host Chairman Powell in his visit to North Georgia. To be a new bank and
selected to host the Chairman’s visit is unprecedented and we enjoyed showing
Chairman Powell our success since opening in May of 2004 and the wonderful White
County community,” Marc said.First Quarter Investment Returns
Though first quarter of 2005 has been a difficult period in the overall stock market, GBA Retirement Services, Inc. is pleased with the comparative long-term investment returns of both investment managers, Atlanta Capital Management and Reliance Trust Company. Please see the update for detailed returns. The third-party administrator for the GBA Master Trust, Alliance Benefit Group (ABG), started online enrollment in January and trust members are enjoying the ease in administration. ABG continues to offer payroll services to current members of the Trust at reduced rates which greatly reduces monthly and year-end administration in a bank’s retirement plan. The most recent Trust members to change to ABG’s payroll services are Georgia Banking Company, Atlanta, and First Bank of Henry County, McDonough. 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 Directors of GBA Retirement Services, Inc. are bankers who know the business and help produce competitive results for their banks, their employees and for the other banks and bankers participating in the Trust. Please contact Mandy Richards at (404) 420-2025 for information on how GBA Retirement Services can help design a retirement plan for your bank.
Status of Important Banking Cases
The “Status of Important Banking Cases”is made available monthly to members of the Bank Counsel Section as an enhanced value to your membership. Our thanks to the American Bankers Association's Office of General Counsel for providing this resource. If your bank’s counsel is not yet a member, check out the benefits of joining on the Bank Counsel Section page. Please call GBA’s Renee Valdez at (404) 420-2036 for information.
2005 GBA Salary Survey
The 2004 Salary Survey input packets are being mailed this week. We have redesigned the input process to help eliminate the need for double entry from year to year on items that have not changed from 2004. If you participated in the 2004 survey, you should have received notification last week pertaining to the access of your bank’s information. With your participation, we will be able to provide a comprehensive Survey with salary and benefit data from the financial institutions throughout the state of Georgia. By participating, you will automatically receive a copy of the compiled results and a $150 discount. The results will be tallied and made available by August. Please call GBA’s Renee Valdez (404) 420-2036 with questions.
Stored Value Card Program: PRE Holdings, Inc.
The Georgia Bankers Association recently engaged in a strategic relationship with PRE Holdings, Inc. bringing our members the Mio Money Prepaid MasterCard® Card, a reloadable debit card that offers customers all of the benefits of a bank debit or credit card, without requiring a bank account or a credit check. The consumer is only able to spend the amount they load on their card. Offering the Mio Card allows banks to serve the “unbanked” or “underserved” financial services segment of the U.S. population that may have few choices when it comes to financial services. Mio provides the low to moderate-income group a safe environment to manage their cash, especially for those that cannot qualify for a traditional bank account. Because of this, banks can use the Mio product to help satisfy their Community Reinvestment Act (CRA) requirements. The Mio Card is also gaining popularity with other segments looking for alternative ways to manage their money such as parents and teens, military families, consumers concerned about identity theft, and employers eager to direct deposit payments. The Mio Card’s design was based on extensive consumer research with more product features than any other stored value card in the market today including competitive long distance, wireless top up, card-to-card transfers, and “instant” transaction history reports online as well as a full function pin-based debit card usable at POS and ATM and loadable via PRE Holdings merchant locations and direct deposit.
The card appeals to a variety of consumers sub contractors, internet shoppers, commercial customers payroll, college students, etc. The card is available for use as a virtual bank account to share money worldwide and conveniently pay bills. The Mio Card is not linked to the credit bureau or any other personal accounts, providing the consumer additional security against identity theft and fraud. Consumers gain convenience, flexibility, security and control with the Mio Card. Banks utilizing the Mio Card gain increased revenue from the initial sale and load of the card. In addition, each repeat cash load at the bank produces fee income and each bank receives a monthly residual per card account; no upfront investment is required.
Marketing is simple. Our experience to date with our financial customers is “hang the posters and sell the cards.” It is that easy and the fee income outweighs similar products such as money orders, travelers checks, gift cards, etc. The Mio Card will allow you and your commercial accounts a way to use direct deposit services, and will also assist in eliminating long teller lines. Cardholders simply fill out a supplied direct deposit form and their payroll flows through normal ACH services directly to their card account. Your non-customers now have the capability to become your customers, while transferring the risk and the potential fraud. Each card account is FDIC insured. This product is fully compliant with the Patriot Act, BSA, Reg-E and other applicable regulations. To learn more about this program, contact GBA’s Renee Valdez (404) 420-2036 or PRE Holdings’ Samantha Techner (866) 468-6773. PRE is a leading provider of prepaid products such as wireless, long distance, gift cards, music and gaming and the best in class prepaid debit card, the Mio™ Money Prepaid MasterCard® Card.
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.
Newsmakers:
Atlanta - Burke Capital Group, L.L.C.
David C. Brown has joined the firm as Principal.
Atlanta - Ceto and Associates
Robert M. Monteith, Jr. has been named Consultant.
Atlanta - Citizens Trust Bank
Wanda R. Nesbit has been promoted to Senior Vice President.
Atlanta - Fidelity Bank
Claire Laury has joined the bank as Vice President of Commercial Lending and Dale Benefield as Vice President and Compliance Manager. Rick Meyer has been promoted to Assistant Vice President.
Atlanta - Flag Bank
Joining the bank’s Atlanta office are: Mark L. Bufkin as Senior Vice President, Private Banking; Jonathan L. Lawson as Vice President, Commercial Lending; Lori G. Fairfield as Vice President, Accounting & Finance; and J. Scott Jackson and D. Michael Hall as Vice Presidents, Flag Mortgage. Lenny Bateman joined the Macon office as Senior Vice President, Community Banking Officer.
Byromville - Flag Bank
The bank has donated its former branch bank building on Main St. to the City of Byromville. The city intends to use the building as part of its efforts to help enhance Byromville’s business district and attract new businesses to the area.
Cartersville - Century Bank of Bartow County
Dr. John T. “Ted” Perry has joined the bank’s Board of Directors.
Douglas - Colony Bank Southeast
Lee Bagwell has been promoted to Executive Vice President and Lea Phillips to Mortgage Banking Officer.
Marietta - United Community Bank–Metro
Richard G. Ellis has joined the bank as Senior Vice President, Commercial Lending and Chad L. Whittemore as Vice President, Commercial Lending.
Mount Vernon - Mount Vernon Bank
Don Thigpen has been elected Chairman in addition to his duties as Chief Executive Officer and Alan Thigpen has been promoted to Executive Vice President.
Rome - Greater Rome Bank
The bank announces the following promotions: Dwight Stout to President and to the bank’s Board of Directors; Grey Winstead to the Board of the bank’s holding company, Greater Rome Bankshares, Inc.; Kay Chumbler to Senior Vice President, Sales & Service; and Kim Bell to Vice President, Branch Coordinator/Compliance/Loan Operations.
Savannah - First Chatham Bank
Mimps R. Bowers has been named Banking Officer.