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July 7, 2006

Currency Transaction Report Relief Possible
If you have been following our reports on the regulatory relief legislation working its way through Congress, you will recall that the House version included substantial reductions in the number of currency transaction reports (CTR) being filed on seasoned bank customers.  However, a similar provision was stripped from the Senate version of the bill when the officials from Homeland Security objected and suggested the filings were necessary to track potential terrorist money laundering.  No data has been released suggesting the CTR filings have ever been used and it is doubtful such information could be gleaned from the huge number of CTRs filed by our members.  The House agrees and last week passed a stand-alone bill, The Seasoned Customer Currency Transaction Report Exemption Act of 2006 (H.R. 5341), by Rep. Spencer Bachus (R-AL).  The bill would allow financial institutions to remove reporting requirements on long-standing customers defined as one who “has long maintained a transaction account at the depository institution; frequently engages in transactions with the depository institution that are subject to currency transaction reporting; and meets criteria that Treasury determines are sufficient to ensure that the purposes of the Bank Secrecy Act are carried out without requiring reporting of the customer’s routine large cash transactions.”  Hopefully Congress will enact this modest regulatory relief before adjourning for the elections.

Real Estate Competition Called Into Question
The Consumer Federation of America (CFA) has released a report suggesting many traditional real estate brokers and their associations stifle competition.  The CFA says these traditional brokers try to charge high, uniform prices regardless of the training and experience of the broker or the specific services offered.  "Many traditional real estate brokerage firms, and their organizations, function as a cartel that tries to set prices and restrict service options," said Stephen Brobeck, CFA executive director. While the GBA has been focusing on the positive competitive benefits to consumers if banks were allowed to engage in real estate brokerage, this report focuses on many of reasons why the Realtors want to keep competition out.  "We have never understood why the Realtor associations have made so many vicious statements about banks getting involved in real estate brokerage," said GBA President, Joe Brannen.  "There is no more competitive industry than the banking industry, and I guess that's what scares them.  We have heard from many real estate agents and brokers who support our position because they see banks as a good partner just like the insurance agents came to see banks several years ago," he concluded.

Federal Data Breach Legislation Beginning to Move  
Legislation has been introduced in the Senate that somewhat tracks the legislation the General Assembly passed last year as it relates to data breaches.  The Georgia bill exempts banks from coverage because federal legislation already addresses the issue.  In late June, Sen. Robert Bennett (R-UT) and Sen. Tom Carper (D-DE) introduced S. 3568 which considers financial institutions subject to the Gramm-Leach-Bliley Act (GLBA) to be in compliance with the bill if the institutions are in compliance with the GLBA’s data protection, investigation, and notice requirements, and if those requirements are applied to all consumer information obtained by the institutions.  The bill also designates GLBA-subject financial institutions’ functional regulator as their regulator under the bill.  With the recent theft and recovery of a laptop containing sensitive information on thousands of active duty military personnel and veterans, the issue of data security is again on the front burner for Congress; a bill could be enacted soon.

Status of Important Banking Cases Available
Our thanks to the Office of the General Counsel of the American Bankers Association for making available the newest edition of the Status of Important Banking Cases to the members of our Bank Counsel Section.  This monthly report gives bank attorneys up to date information on litigation involving banks across the country.  This report is another member benefit for the attorneys in GBA's Bank Counsel Section.  With questions about how your bank's attorney can participate, please contact GBA's Kenyetta Parks at (404) 420-2035.

Congratulations 50 Years In Banking Award Recipients
At GBA’s recent annual convention, we were pleased to recognize six bankers for 50 years of  service to the banking industry.  "We were delighted to recognize these five bankers for spending their entire careers with the banking industry.  Two recipients were able to be with us in Naples and it was an honor to present their awards in person," said GBA former Chairman Tom Wiley, CEO of Flag Bank in Atlanta.

Nancy T. Miles.  Nancy is a Director of Talbot State Bank in Fayetteville.  She began her career in the associate training program with the Citizens and Southern Bank of LaGrange.  After 10 years, Nancy  joined Peoples Bank of LaGrange to help organize this new bank and became Senior Vice President and Cashier.  See remained with the bank for a number of years after it was acquired by Trust Company of Georgia in both their LaGrange and Columbus banks.  In 2000, Nancy joined Talbot State Bank consulting on various operational issues and joined the board in 2003. Nancy has been a GBA Group Chair and was active on a number of GBA committees throughout her career.

Ted Johnson.  Ted began his banking career in his hometown at the Bank of Orangeburg in Orangeburg, South Carolina.  In 1964, he came to Wrens, Georgia to assist in the organization of a new bank, the First State Bank.  For the next 36 years, he served as chief executive officer and remained on the board after his retirement in 2000.  Just this year, he stepped down from the board and became a director emeritus.  Mr. Johnson has been active with GBA over the years serving in various committee and Group leadership positions. 

• LaWanna Hill.  LaWanna is President and CEO of the Citizens State Bank of Taylor County in Reynolds.  She began her career with this same bank as secretary to the president.  Soon she was named Assistant Cashier and six years later became Cashier.  In 1980 she was named Executive Vice President and CEO and given the President’s title in 1996.  LaWanna has been active with the GBA over the years and most recently served as Group Chair.

• Alvin Riner.  Alvin joined the Bank of Alapaha as a bookkeeper in 1952 and he actually celebrated his 50 years of service four years ago.  He served in virtually every position in the bank including president.  He still serves as chairman of the bank’s Board of Directors.  Alvin and Evelyn are enjoying their semi-retirement on their farm.

• Edwin D. Gaskins, Jr.  Edwin was elected to the board of the Bank of Alapaha in 1956 and has remained on the board since then.  He celebrates his 50th year of service this month.  Mr. Gaskins was in the hardware business throughout his career.  A recent widower, he enjoys spending time with his children and managing his family’s timberlands.

• Mark Whitfield.  Mark began working for the Jasper Banking Company part-time while attending high school.  After a stint in the Army, Mark returned to the bank where he began working as a teller.  He has served in virtually every other position in the bank.  The board named him Chief Executive Officer and a director in 1971 and in 1980 named him President and CEO, the position he holds today.

Hill	Riner	Gaskins	Whitfield

Final Plans for Leadership Conference Underway
If you are one of the many Leadership Conference attendees, you should have received your confirmation information about all the events.  We have a great crowd coming to Orlando and the fabulous Omni ChampionsGate on July 16-19.  If you have any questions, please contact GBA's Susie McGehee at (404) 420-2010 or Fran Williams at (404) 420-2015.  Also, please be sure and vote in this year’s Primary Election prior to leaving for Orlando.  The election is scheduled for Tuesday, July 18^th, which is during this year’s conference, and two options are available:  you may request that an absentee ballot be mailed to you which you will complete and mail back to your country registrar’s office or you may participate in early voting which allows you to vote in person Monday–Friday of the week preceding the election.  Be sure to exercise your right to vote before coming to the Leadership Conference!

Register Today for AIB Online Courses
Just a reminder that the following AIB online classes begin on July 24.  Please register as soon as possible to secure a seat in the class.

• Commercial Lending, 16 weeks, $375

• Sales Manager Certificate, 16 weeks, $695

• ABA Online Review Course for the CTFA Exam (open enrollment), 12 weeks, $750

• Today's Teller: Developing Basic Skills (open enrollment), 8 weeks, $275

These courses are instructor-facilitated with weekly assignments.  They can be taken from the comfort of your home or the convenience of your office. All you need is a computer, printer and Internet access.  With questions, please call GBA’s Fran Williams at (404) 420-2015.

Upcoming AIB Classroom Courses
We have received a number of requests for AIB classroom courses for later this summer and fall.  More information about specific start dates will be announced shortly for those marked with an asterisk.

• Dealing Effectively With Co-Workers, taught by Jeff Kovach of Northwest Georgia Bank, Ringgold
  Beginning August 10, 3 weeks, $145 which includes text

• Principles of Banking, taught by Cassie Parker of McIntosh State Bank, McDonough
  Beginning August 14, 10 weeks, $195, text $60

• Principles of Banking, taught by Trae Dorough of SouthCrest Bank, Fayetteville
  Beginning August 22, 10 weeks, $195, text, $60

• Principles of Banking, taught by Steve McFarland of Gwinnett Community Bank, Duluth
  Beginning September 14, 10 weeks, $195, text, $60

• Principles of Banking, taught by Jeff Kovach of Northwest Georgia Bank, Ringgold
  Beginning September 28, 10 weeks, $195, text $60

• *Marketing Financial Services, taught by Dale Morrissey of First Cherokee State Bank, Canton, 10 weeks, $195, text, $65

• *Principles of Banking, taught by Randy Blalock, Winder
  10 weeks, $105, text $60

• *Analyzing Financial Statements, taught by Peter Faser of Flag Bank, Norcross
  10 weeks, $195, text $69

AIB classes meet three hours each week for 10 to 15 weeks and will be held at a local financial institution.  If you would like to see a specific course offered in your area or if you have any questions about AIB classroom courses, please contact GBA’s Alison Moreau at (404) 420-2034.

Business to Business Lending
fTrans, a Georgia-based financial service company, provides outsourced management and credit guarantees on the operating assets of your business customer which enables banks to make revolving commercial loans to small and mid-sized businesses. The fTrans system enables business to business sellers to shift the administration, risk, and funding of trade credit to banks and other financial institutions that are able to handle the processing and risk more economically than any individual company. GBA member banks have the opportunity to increase the secured lending that can be provided to small businesses, rather than referring the business to other lenders outside the bank. For more information, please contact our GBA Strategic Partner, John Hayes at (678) 268-4040.

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 Kenyetta Parks at (404) 420-2035.

Some of the Services Available Through GBA Services, Inc.

GBA Services, Inc. is governed by a board composed primarily of community bank presidents who look for the best products and services available.  They do the due diligence for you and you can rely on their efforts.  For more information or to order any of these products or services, please call (404) 522-1501.

Newsmakers:

Congratulations to the following new banks who have recently opened for business:

• Sunrise Bank, Atlanta, Charles Green, CEO

• Patriot Bank of Georgia, Cumming, John Bramblett, CEO

• Liberty First Bank, Monroe, Dawn Griffin, CEO

• Bank of Valdosta, Matt Stanaland, CEO