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March 3, 2006

Contractor Licensing Raising Questions
A number of our members have inquired about forms General and Residential Contractors have been bringing to the bank as part of the new state licensing requirement for these contractors by the State Licensing Board for Residential and General Contractors.  As part of the licensing, contractors are being asked to get a line of credit (LOC) from a financial institution and provide proof of that LOC to the Board.  The form letters being used by the Licensing Board for that purpose are called "Line of Credit for General Contractor" or "Line of Credit for Residential Contractor" and both form letters have language that is not acceptable to most of our members.  For example, the General Contractor letter has a provision that the bank will monitor the contractor's financial condition and report any significant changes in the contractor's financial condition to the Licensing Board.  The Residential Contractor letter asks for confidential information to be disclosed about the Contractor about how his past banking relationship has been managed.  We have been working to get the form letters changed as our members are not willing to sign such letters.  We appreciate the help of Department of Banking and Finance Commissioner Rob Braswell and his staff who have spoken at length with the Contractor Licensing Board.  While the form letters are still being used, the board wants it understood that the forms are merely sample language and other language would be acceptable.  We recommend that any bank agreeing to grant the letter of credit and sign the form letter to delete or mark-through any provisions you would either not be willing to share or procedures you would not be willing to follow.  This whole process is new to everyone and we will continue to work to help the board develop a more workable solution that does not create conflict for our members.  Please let GBA's Joe Brannen, (404) 420-2026), know if your contractor customers have any difficulty with this procedure from the Board.

Fed President Jack Guynn to Speak at Convention
We are honored to have Jack Guynn, President and CEO of the Federal Reserve Bank of Atlanta, as a keynote speaker for GBA’s 2006 Annual Convention.  Jack will give the attendees his personal views on the economy and monetary policy.  Bankers across Georgia will convene for the Annual Convention June 18-21 at The Ritz-Carlton Beach Resort in Naples, Florida.  A great program has been planned that you won’t want to miss.  In addition to Jack's presentation, there are several other keynote speakers we will be highlighting in future e-Bulletins as well as several breakout sessions, networking events and sports opportunities.  Building on the success of last year's Convention, we have planned a number of activities with the whole family in mind.  Registration material has been mailed to you and many more details are available on our Convention page to help with your planning.  With questions about the Convention, please call GBA’s Susie McGehee at (404) 420-2010.

Legislative Update
GBA’s e-Legislative Update is intended to keep you apprised of the bills the GBA is tracking on the industry’s behalf and is sent on Fridays during the session. Click here for this week's edition.  Among the issues covered:

• ATM Mandatory 911 Button Bill Hearing Held

• Senate Passes Title Pawn Bill

• Title Insurance Bill Held in Subcommittee

• Mortgage License Exemption Bill Reported

• Development District Bill Clears Committee

• Life Insurance Proceeds Bill Passes House

• House Banking Committee to Meet

Reg Relief Subject of Senate Hearing
The Senate Banking Committee held a hearing this week on the need to reduce the regulatory burden on depository institutions.  We have reported in previous editions of this e-Bulletin about action in the House where a vote is pending before the full House.  The Senate Committee heard from a number of witnesses.  Testifying for the American Bankers Association was Vice Chairman Brad Rock, CEO of Bank of Smithtown.  Brad highlighted three issues in his testimony:  1) Regulatory burden is not just a banking issue; it also affects bank customers and local economies, 2) community banks are bearing the heaviest load of regulatory compliance, and 3) Brad made specific recommendations for eliminating unnecessary CTRs, increasing the 500-shareholder threshold which triggers periodic reporting requirements; and preventing credit union capital erosion and widening credit union authority in higher-risk lending.  “Regulatory relief is a top priority of our members, and we urge Congress to pass a comprehensive reform bill this year,” said GBA Chairman, Tom Wiley, CEO of Flag Bank in Atlanta.

Register Today for AIB Online Courses
Just a reminder that the following AIB online classes begin on March 27.  Please register no later than two weeks ahead of time to secure a seat in the class.

• Principles of Banking, 16 weeks, $375

• Sales Manager Certificate, 16 weeks, $695

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

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

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.

Operations and Technology Conference
The Operations and Technology Conference will be held March 16-17, 2006, at the Atlanta Renaissance Waverly Hotel.  Special thanks to Tom Healan, Committee Chair and Senior Vice President and CFO of Lanier Community Bank in Buford, and the entire Operations/Technology Committee for carefully planning this conference to feature subjects pertinent to you and your bank.  Among other topics, Committee Vice Chair, Jim Stewart, United Community Banks, Inc., Blairsville will be moderating a panel of representatives from the Federal Reserve Bank of Atlanta, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency discussing Risk Assessment and the Role of the IS Officer; and Tom Williams with Centurion Disaster Recovery, speaking on Business Continuity Planning.  Register online today or call GBA's Marybeth Jones at (404) 420-2032 with questions.

Industry Breaks Another Profit Record
The FDIC has reported that banks and savings institutions earned a record $134.2 billion in 2005, the fifth consecutive year industry profits reached an all-time high. Among the contributors:  Increased net interest income from strong loan growth and higher non-interest income at larger institutions. 

Hotel Room Block for Security Conference Expires March 5th
A block of rooms has been reserved for the Bank Security Conference scheduled for April 6-7 at the Savannah Riverfront Marriott at the rate of $169 per night until March 5^th.  You may call the hotel for room reservations at 1-800-285-0398.  You may register for the conference online or for more information, please call GBA’s Marybeth Jones at (404) 420-2032.

Wal-Mart ILC Application Hearings Called
In response to industry requests, including from the Georgia Bankers Association, the FDIC will hold public hearings next month on Wal-Mart's application for federal deposit insurance for its proposed industrial loan company in Utah. The four days of hearings will be held in Washington, DC and Kansas City, MO.  In somewhat of an understatement, the FDIC in their press release said, "There has been considerable public interest in the application. The FDIC believes that public participation will provide valuable insight into the issues presented by the application and will serve the public interest."

Warsh Joins Federal Reserve Board
Our congratulations to Kevin M. Warsh who was sworn in as a member of the Federal Reserve Board on February 24.  Georgia bankers first met Mr. Warsh last year when he briefed the GBA delegation at the White House on the President’s economic policy initiatives.  Prior his appointment to the Board, Mr. Warsh served as Special Assistant to the President for Economic Policy and as Executive Secretary of the National Economic Council from 2002 until February 2006. His primary areas of responsibility included domestic finance, banking and securities regulatory policy, and consumer protection. He advised the President and senior administration officials on issues related to the U.S. economy, particularly fund flows in the capital markets, securities, banking, and insurance issues.  Mr. Warsh is shown at right with his spouse, Jane Lauder.

Clarke American Makes Acquisition
Clarke American has been a Strategic Partner with the Georgia Bankers Association for 11 years. Besides being known for receiving the Malcolm Baldrige National Quality Award and world class Check Printing, Clarke American’s acquisition of Alcott Routon positions the company to assist member banks with customer acquisition and retention. The tenured Georgia sales team is ready to help you.  Please contact Steve Garrett at (800) 382-0818, Ext. 2808 for additional information.

Empowerment Survey
GBA has been asked to help a doctoral candidate in the Department of Management at the University of Georgia who is working on a research project about employee empowerment and productivity.  Part of his work is a survey to understand employees' empowerment experiences at work. In the survey, there are 100 statements describing different aspects of your work life. The task is to evaluate these statements on 5-point rating scales. We ask our members who would be willing to complete the survey to click on the following link:  http://www.surveymonkey.com/s.asp?u=547661569013

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:

Gainesville - Peach State Bank & Trust
Congratulations to CEO Ron Quinn, officers, directors and staff on the bank’s recent opening.  As part of their weeklong opening celebration, the bank recognized several well-known retired bankers from Gainesville who had been CEOs of their banks.  Shown in the photo from left to right are Ed Wayne, Ray McRae, James Mathis, Heyward Hosch and Pierce Hancock.