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October 27, 2006

Key Issues on Minds of Bankers
GBA Chairman Bobby Carmichael, Chairman and CEO of Commercial Bank and Trust in LaGrange, represented GBA at the recent annual convention of the American Bankers Association.  The meeting was a chance for Bobby to interact with his peers with other state bankers associations as well as to discuss key issues with them and many of the policy makers also participating at the event. Following is a report from Bobby about the meeting.

"It was an honor to represent the GBA at the recent American Bankers Association annual convention in Phoenix, Arizona last week. The 1,100 attendees had an all star line up of speakers.  In addition to meeting the new ABA officers, we had an opportunity to hear from Geoffrey Colvin, Senior editor-at-large for Fortune magazine; John Dugan, Comptroller of the Currency; Sheila Bair, Chairman of the FDIC; Ben Bernanke, Chairman Federal Reserve (via live satellite); David Gergen, former White House advisor; Sung Won Sohn, CEO Hanmi Bank, Los Angeles (rated as the top economic forecaster by Fortune magazine); Sue Bies, member Board of governors Federal reserve system; and Jack Welch, former Chairman and CEO of General Electric Company.  Here are just few of the many takeaways from the conference. We are in a digital economy; we are in a global economy; we are a facing a retirement benefits crisis; the typical business models do not work anymore;  in a digital economy the customer has more power; young people want to work for a winner; average U.S. compensation is not going up; the biggest economic threat to the U.S. is Medicare; rates will drop from a fed funds rate today of 5.25% to 4.50% by next summer; $900 billion is being drawn on home equity loans annually (this is slowing dramatically, hurting the economy); for every 10 cent drop in the price of gas, it puts $1 billion in the pockets of Americans; every bank employee should be able to articulate "Why someone should bank with us;" FDIC will resolve in November the premium rate schedule, the ILC moratorium will not be extended, some people will not be happy in the end; ABA is working on a credit union bill, the key is finding the right sponsor; Democrats will take the House, Barney Frank will be chairman of the House Financial Services Committee, he leans towards us on Credit Unions but the Democrats may try to role back bankruptcy reform; Republicans are fighting to keep control of the Senate; the most important function in the bank is HR and HR should be at the same level as CFO on the organizational chart; hiring is the key; free markets and competition is what makes us better; let your elected officials know what you think, they work for us; banking has a strong place in its markets because we own the relationships in our communities. You can see we had some lively discussions and these are just some notes I took that I thought you would find of interest from these thought leaders.  I will be glad to discuss any of these issues with you further if you would like. The GBA and Georgia bankers are held in high regard by bankers across the country.  What you do everyday as a banker sets us apart. Thanks for you continued support of GBA."

Bobby (R) is pictured above with Earl McVicker, Chairman and CEO of Central Bank & Trust Co., Hutchinson, KS, who was installed as ABA Chairman at the meeting.

Credit Conference Drawing Large Attendance
Final plans have been made for the annual GBA Credit Conference scheduled for November 29-30 at the Cobb Galleria in Atlanta.  The Credit Committee, chaired by David Coxon with United Community Bank in Fairburn, has planned an excellent program.  In last week's e-Bulletin, we announced that Jimmy Tallent, President and CEO of United Community Banks, Inc., in Blairsville, will keynote the conference.  We are also pleased to have with us Wachovia’s senior economist, Mark Vitner, who will share his thoughts on the economy and what lies ahead in 2007.  Mark is a native Atlantan and is responsible for tracking U.S. and regional economic trends. He also writes Wachovia's Monthly Economic Outlook newsletter and the Regional Economic Review and contributes to the Weekly Economic & Financial Commentary.  Prior to joining Wachovia, Mark was economist for Barnett Banks in Jacksonville, Florida for approximately nine years.  Mark is a frequent guest on CNBC, CNN and the NewsHour with Jim Lehrer and has been featured in The New York Times, The Wall Street Journal, BusinessWeek, USA Today and many other publications.  The GBA special rate at the Renaissance Waverly Hotel is $169 per night for single or double occupancy.  The GBA room block will expire on October 30th, so reserve your room today by contacting the hotel directly at (770) 953-4500.  For further information, please call GBA’s Marybeth Jones at (404) 420-2032.

Payday Lending Restriction in Department of Defense Bill Raises Questions
As Congress was completing the bill to authorize Fiscal Year 2007 funding for the Department of Defense (DoD), a provision was added which was said to prevent military members and their families from becoming victims of payday lenders.  However, the provision was never the subject of hearings or public input, and the unintended consequences on traditional lenders could be substantial. The provision applies to unsecured loans such as credit cards, but the language could also catch bank overdraft protection programs and small denomination loans some lenders around military bases have developed as legitimate alternatives to the payday loans.  The Department of Defense is given sole authority to write the rules and even define what constitutes a consumer loan.  The rate on these loans is capped at 36% and includes all fees.  Therefore small denomination loans even with modest fees would quickly exceed the cap.  Disclosures, both oral and written, are required and will be in addition to traditional Truth in Lending Act disclosures.  The DoD is instructed to consult with the Federal Trade Commission, the four banking regulators, the credit union regulator and the Treasury Department for rulemaking advice.  This is new territory for the DoD and the rulemaking process will be watched closely by all lenders.  Our thanks to the American Bankers Association for providing a white paper discussing the amendment and the possible impact it could have on traditional lenders.  We will keep you informed as the rulemaking process unfolds.

GBA Comments on SEC Proposal
The Securities and Exchange Commission recently put out for comment a proposal that would require compensation disclosure from public companies for three additional highly compensated employees over and above other compensation disclosures recently adopted.  After hearing from several member banks, the GBA submitted comments to the SEC this week on the issue.  Highlighted in the letter are those issues that pose the greatest potential for market disruption.  If you have questions regarding this issue, please contact GBA’s Elizabeth Chandler at (404) 420-2027.

UCC Update Seminar on November 2
GBA will host its UCC Update seminar on Thursday, November 2, at the Crowne Plaza in Macon with Gary Moser of Moser, Rose & Cox, Valdosta, as the instructor.  Designed for senior lenders, junior lenders, bank attorneys, compliance officers and loan review personnel, this one-day seminar will cover all areas of Revised Article 9.  Participants will learn about documentation of loans secured by personal property, perfection of security interests in personal property, the bank’s responsibilities and actions after default, and obligations between debtor and creditor after foreclosure and sale of personal property.  They will also receive the “Banker’s Guide to Revised Article 9 with Comparisons to Old Article 9.”  Please call GBA’s Susie McGehee at (404) 420-2010 with questions.

Bank Security Seminar Slated for Macon/Gainesville November 8 and 9
If you’re looking for the most up-to-date security information for your financial institution, make plans to attend GBA’s Bank Security Seminar scheduled for Wednesday, November 8, at the Crowne Plaza in Macon and Thursday, November 9, at the Best Western-Lanier Center in Gainesville.  Designed for bank security officers, bank training officers and branch administration, this one-day seminar will focus on bank robbery and physical security.  Topics to be covered are:

• Bank Robbery: Robbery trends, robbery response before, during and after the robbery and the Employee Assistance Program

• Physical Security:  Alarms & Cameras, Vaults & Safes, Card Access, Biometrics, Bandit Barriers & Dye Packs, ATMs (Lighting & Landscaping) and Facility Risk Assessment

• Employee Safety:  Developing a Workplace Violence Program, identifying threats and dealing with problem employees and customers

This seminar also qualifies as curriculum credit required for the Bank Security Academy.  With questions, please contact GBA’s Susie McGehee at (404) 420-2010.

Register Today for AIB Online Courses
Just a reminder that the following AIB Online classes begin on November 20.  Please register no later than two weeks ahead of time to secure a seat in the class.

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

• Banking Today, 5 weeks, $275

• General Accounting, 16 weeks, $475

• Money & Banking, 16 weeks, $375

• Supervisor Certificate, 16 weeks, $695

• Trust Operations, 15 weeks, $375

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

There is still availability in the following AIB Online classes beginning November 13:

• Analyzing Financial Statements*, 16 weeks, $475

• Economics for Bankers, 16 weeks, $375

• Financial Accounting*, 16 weeks, $475

• Marketing Financial Services, 16 weeks, $375

• Principles of Banking, 16 weeks, $375

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. (Classes with an asterisk * require Microsoft Excel Software.)  Please see the AIB Online Fall 2006 Schedule for a complete listing.  Please call GBA’s Alison Moreau at (404) 420-2034 with questions.

Operations/Technology and Asset/Liability Management Committees Meet
Our thanks to the members of GBA Operations & Technology Committee and Asset Liability Management Committee for making the effort to attend their two committee meetings the past two weeks.  The Operations & Technology Committee is chaired by Jim Stewart with United Community Bank in Blairsville.  Most of their time was spent planning their annual conference which will be held April 17-18, 2007.  The Asset Liability Management Committee is chaired by Laura Cross with Oglethorpe Bank in Brunswick.  Laura led the planning of the annual Financial Risk Management Conference scheduled for March 8 and 9.  GBA's Marybeth Jones coordinates these two conferences working closely with the committees and said, "We are fortunate to have so many bankers volunteering with the GBA and helping plan such outstanding educational events.  These volunteers are the lifeblood of our professional development program as it is totally planned by bankers for bankers."

GBA BankPAC Update
Since the last Bulletin, the following banks have contributed to the GBA StatePAC:

• Tracy Dixon, President, First National Bank of Decatur County, Bainbridge

• Jerry Kennedy, President, Flint River National Bank, Camilla

• Bob Parker, CEO, Southern Bank & Trust, Clarkesville

• Charlie Curry, CEO, First State Bank of Randolph County, Cuthbert

• Gary McClung, CEO, Century Security Bank, Duluth

• Bobby Carmichael, CEO, Commercial Bank & Trust, LaGrange

• Pat Hall, President, Tifton Banking Company

• Carl Hames, CEO, First Cherokee State Bank, Woodstock

• Chuck Barnes, CEO, Security Bank of North Metro, Woodstock

The officers, directors and staff of The Savannah Bank, N.A., John Helmken, CEO, Savannah contributed to the GBA FedPAC.  Thank you for your support.  For information, please call Elizabeth Chandler at (404) 420-2027.

TalentQuest for Banking
Corporate Psychology Resources (CPR) is a software and consulting services firm with over 30 years experience in delivering talent and performance management solutions to community banks.  CPR has been a Strategic Partner of the Georgia Bankers Association since 2000.  CPR offers TalentQuest for Banking as an online system designed to help banks with their most critical and strategic HR activities – the Selection, Measurement, Development, and Succession of employees. Each module has been configured specifically for the needs of community banks. Banks will see the benefits of easier, more targeted performance reviews; more effective development of employees; better hiring decisions; and better, more directed communications between employee and manager. Custom GBA benchmarks have been developed for key positions:

• Branch Manager

• Commercial Lender

• Consumer Lender

• CSR

• Teller

• Loan Processor

• Mortgage Lending Officer

• Manager/Supervisor

CPR’s executive consultants support talent management initiatives directed at the leadership level (Executives, Board Members, and High Potentials) within the bank. For more information, contact CPR’s Jon Naphin at (404) 965-5221, or GBA’s Chad Wilson at (404) 420-2022.

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:

Urrutia to Receive Community Banker of the Year Award
Congratulations to Luz Lopez Urrutia, President and COO of El Banco Financial Corp. in Roswell, who is being honored by the American Banker with the Community Banker of the Year for Advocacy award.  According to the publication, Ms. Urrutia is being honored for her commitment to meeting the financial needs of the unbanked and the underbanked, primarily in the Hispanic community. She joined what was then Nuestra Tarjeta Servicios Inc. in 2003. The company, which adopted the El Banco name in June, was founded in 2001 to offer stored-value cards to Hispanic immigrants, but its founder saw opportunities in offering check-cashing, remittance, and even traditional banking services to unbanked immigrants and brought in Ms. Urrutia, a former Wachovia Corp. executive, to help. Hispanic immigrants are known to be distrustful of banks, and it is Ms. Urrutia's mission to get them into the banking mainstream. El Banco now has 12 fully bilingual branches in the Atlanta area. It also offers its check-cashing platform to other banks that are interested in reaching out to the unbanked.

Blairsville - Seasons Bank P. Darrin Sparks has been promoted to President. Cumming - First National Bank of Forsyth County Sam R. Story has been named President of the bank and Executive Vice President of the bank's holding company, Allied Bancshares, Inc.  Mr. Story and Richard E. Bell have also been elected to the Board of Directors of both the bank and its holding company.  Ricky H. Pugh has been named an Executive Officer and elected Vice President of the bank's holding company. Dublin - Morris State Bank Joining the bank are Wallace Miller as Senior Community Banker and Roger Miller as Executive Vice President. Gainesville - Gainesville Bank & Trust Congratulations to Marketing Officer Nick Kastner, who was recently awarded the Certified Financial Marketing Professional designation from the Institute of Certified Bankers, a nonprofit organization sponsored by the American Bankers Association. Woodstock - CreekSide Bank Julie Stabile has joined the bank as Vice President and Retail Manager.	Sparks	W. Miller	R. Miller
	Kastner	Stabile