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May 26, 2006

Georgia Bankers Reach Credit Union Letter-writing Goal
   For several months, we have been asking our members to write your members of Congress asking them to oppose the credit union's legislation that would expand their commercial lending authority while reducing their capital requirements.  We are pleased to report that more than 3,100 letters have now been sent which has surpassed our goal of 2,990 letters.  We are beginning to hear conversation on Capitol Hill that a hearing may be held on the credit union legislation which many had presumed to have been effectively stalled because of banker opposition.  We will keep you apprised as further developments warrant.  "One of our major themes this year has been the importance of grassroots involvement.  Many of you saw the video we produced, One Banker at A Time Taking Action, and responded accordingly.  We can never rest on our laurels, but I want to personally thank everyone who responded to our call to action," said GBA Chairman, Tom Wiley, President of Flag Bank in Atlanta.

Leadership Conference Disneyworld Ticket Deadline Approaching
Just a reminder that May 31 is the deadline to purchase Disney World tickets at a reduced rate.  These tickets are available for purchase through Leadership GBA's 46th Annual Leadership Conference.  The Leadership Conference is scheduled for July 16-19 at the Omni Orlando Resort at Championsgate in Orlando, Florida.  With questions concerning the Conference or Leadership GBA in general, please contact Susie McGehee at (404) 420-2010 or Fran Williams at (404) 420-2015.  Don’t miss this excellent opportunity to get some great leadership training and network with your peers while having some fun with your family.

Leadership GBA Sponsors 4-H Campers
This summer, Leadership GBA, in partnership with the Georgia 4-H Camping Program, will again make the wish of attending summer camp come true for many Georgia elementary and middle schoolers.  So far, 61students from across Georgia will attend their local 4-H camp during the months of May and June through sponsorships coordinated by Leadership GBA members. “We are so happy the number of sponsorships continues to grow,” said Leadership GBA President Meredith Malcom, Senior Vice President, The National Bank of Walton County, Monroe.  “Georgia 4-H has such a great program, and you can help so many for such a small amount.  I encourage every Leadership GBA Rep to sponsor at least one camper in his or her community.  You’ll never regret it.”  Many thanks to William Bailey, President of PlantersFIRST, Perry; Brad Barber, Senior Vice President of Commercial Banking Company, Valdosta; Kim Brannen, Vice President of Sea Island Bank in Statesboro; Steve Culberson, Executive Vice President of The Peoples Bank in Eatonton; Jay Forrester, Group Vice President of the Georgia Bank & Trust Company in Augusta; Pete Garrett, Vice President of the Bank of Upson, Thomaston; Donna Lott, Assistant Vice President of Southwest Georgia Bank, Moultrie; Meredith Malcom, Senior Vice President of The National Bank of Walton County, Monroe; Lisa Rowell, Vice President of SunTrust Bank, Douglas; and Kelly Yielding, Vice President of McIntosh State Bank, Jackson for their help in coordinating local camper sponsorships.  A special thank you to the following banks that sponsored campers in their community:

Managing Problem Loans Seminar Offered in June
Problem loan workouts can vary dramatically depending on the size and complexity of the transaction. One matter may require a minor amendment to covenants in loan documentation while another may involve wholesale restructuring of documentation and the sale or foreclosure of assets. To help you ease the headaches of these loans, GBA will host a one-day seminar entitled, Managing Problem Loans on Thursday, June 8 at the Crowne Plaza, Macon.  The cost for the workshop is $195 and the instructors will be Gerald L. Blanchard and Wendy Hagenau with Powell Goldstein, LLP, Atlanta. This one-day seminar will cover all of the varied parts of the problem loan process, from recognizing the problem, minimizing legal risk, managing a portfolio of such loans and finally resolution of the problem. Some of the areas to be covered are: 

• Structuring workout and forbearance agreements

• How to recognize fraud and scams

• Using Bankruptcy as a tool

• Best practices for managing problem loan portfolios

• Marketing and selling troubled loans

• Maximizing recoveries

• Minimizing lender liability risk

Click here to register online or with questions, please contact GBA’s Fran Williams at (404) 420-2010.

Register Today for AIB Online Courses
Just a reminder that the following AIB online classes begin on June 12.  Please register as soon as possible to secure a seat in the class. 

• Consumer Lending, 16 weeks, $375

• Principles of Banking, 16 weeks, $375

• Retirement Plan Services – Investments, 6 weeks, $795

• 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.

FDIC Releases Information About Assessment Credits
As required by the FDIC reform legislation enacted earlier this year, the FDIC has published  a preliminary estimate of the one-time assessment credit that a bank can use to offset next year's expected deposit insurance premium charges. This one-time assessment credit for each institution in existence on December 31, 1996 is part of a pool of $4.7 billion set aside for this purpose.  As you are planning budgets for 2007 and plugging in a number for the first deposit insurance premiums in some time, you will want to factor in your available credit.  To facilitate the credits, the FDIC has put a proposed rule out for comment with a comment deadline of July 17.  Click here to determine your bank's assessment credit.

Banks and Thrifts Report Record Earnings in First Quarter
Also this week, the FDIC released first quarter earnings reports on insured commercial banks and savings institutions - another record quarter.  Net income of $37.3 billion for the first three months of 2006 surpassed the previous quarterly high of $34.6 billion set in the third quarter of 2005.  The FDIC said first-quarter profits represented a 9.5 percent improvement over the industry's results a year earlier. Loan growth remained robust, with particular strength in commercial lending. Asset quality continued to be very good, with net charge-offs and noncurrent levels improving in consumer loan portfolios. Among the major findings:

• Improved performance by larger institutions boosted the industry's bottom line.

• Loans for real estate construction and commercial borrowers showed growing momentum.

• Asset-quality indicators registered improvement.

• Rising short-term interest rates have put downward pressure on net interest margins.

Click here to read the full report.

Searching For Convenient ATM Access For Your Bank?
Formed in 1997, InterCept Switch was designed to give customers of smaller financial institutions access to ATMs similar to the convenience enjoyed by the customers of larger banks having more ATMs. InterCept Switch gives customers surcharge-free ATM access that in the past, only larger regional holding companies could offer. GBA member banks have the opportunity to increase customer loyalty and attract new business with greater ATM convenience. In today’s market, with ATM surcharges higher than ever, InterCept Switch is a powerful marketing tool for institutions that join the network. For more information, please contact Steven Roberts at (770) 248-9600. InterCept Switch is a service offered by Fidelity National Information Services (FIS).

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:

AJC Recognizes Top Performers
Congratulations to a number of our Georgia incorporated members who were recently recognized by the Atlanta Journal-Constitution as among the best performing public companies.  The rankings of the top 146 companies are by PricewaterhouseCoopers LLP and are based on five weighted variables:  annual revenue, year-over-year revenue change, return on equity, annual percent change in profit margin for fiscal 2005 and total return on investment for the 2005 calendar year. The lower the score, the higher the ranking:

Athens - Bank of Athens Scott Wayne, President, Bank of Athens – a division of Gainesville Bank & Trust (GB&T) – has announced the bank will move to its new location at the end of the month at 3445 Atlanta Highway in Timothy Crossing at the intersection of Atlanta Highway and Timothy Road. Atlanta - Fidelity Bank Palmer Proctor, President, has announced the opening its 20th branch on May 10 at 1115 Old Peachtree Road in Duluth. Hiram - Georgia Trust Bank Patti Williamson has joined the bank as Vice President and Retail Banking Manager. The bank also unveiled its new, 13,000 square foot Gwinnett Main Office with a Grand Opening the week of May 8. The two-story Georgian facility is located at 2725 Mall of Georgia Blvd. in Buford. Gainesville - GB&T Bancshares, Inc. Congratulations to Richard A. Hunt, President and CEO of GB&T Bancshares, Inc., who has  has been selected as a finalist for the 2006 Alabama/Georgia/Tennessee Ernst & Young Entrepreneur of the Year Award.  Award recipients will be announced at a special 20th anniversary gala event on Wednesday, June 28, 2006 at the Grand Hyatt Atlanta. Rome - River City Bank Congratulations to CEO, Eddie Wilson and the other officers, directors and staff on the bank’s recent opening.

Hunt