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September 29, 2006

Group Meetings End With Great Participation
Our thanks to bankers in south and southeast Georgia for turning out in large numbers for our final two Group Meetings in Valdosta and Statesboro.  Parrish Clark with Guardian Bank in Valdosta and Michael Lee with  Citizens Bank of Effingham in Springfield chaired the two meetings.  "Getting to visit with the membership all over Georgia this past month has been a rewarding experience," said GBA Chairman Bobby Carmichael, Chairman and CEO of Commercial Bank & Trust in LaGrange.  "Well over a thousand people participated in the 10 meetings which gave us a chance to hear feedback on issues important to the membership as well as to let everyone know about the issues we are focusing on at GBA this year," Bobby concluded.  In next week's Bulletin we will publish more information about the bankers elected to leadership positions at these meetings.

Congressmen Deal and Marshall Cosponsor ILC Bill   
Our thanks to Congressmen Nathan Deal (R) from Georgia’s 10^th congressional district and Congressman Jim Marshall (D) from Georgia’s 3^rd congressional district for cosponsoring H.R. 5746 by Rep. Paul Gillmor (R-OH) and Financial Services Committee Ranking Member Barney Frank (D-MA).  This important piece of legislation which would create a general rule that commercial firms may not charter or acquire industrial loan companies (ILCs) was introduced after Wal-Mart and Home Depot filed their applications with the FDIC to further their plans of owning an ILC.  This bill is intended to signal to the FDIC that certain members of Congress wish to examine this issue before action is taken on the applications.  Since we do not anticipate Congress acting on this legislation before the end of the year, we do expect this bill to be reintroduced in January.  The GBA will continue to work with other members of the Georgia delegation to become a cosponsor but in the meantime, it would be helpful if your congressman hears from you on this issue.

GBA Says FHLB Advances Should Not Be Classified as "Volatile"
In a comment letter filed with the Federal Deposit Insurance Corporation (FDIC), the Georgia Bankers Association joined our state bankers association colleagues from around the country opposing the classification of Federal Home Loan Bank (FHLB) advances as volatile liabilities.  The FDIC issued a Notice of Proposed Rulemaking to amend its regulations on risk-based premiums. The proposed rule would create different risk scoring frameworks for smaller and larger banks that are well capitalized and well managed. Our letter addressed one specific element of the frameworks for both large and small banks: the use of Federal Home Loan Bank (FHLB) advances in the definition of volatile liabilities, or, alternatively, determining higher assessment rates for banks that have significant amounts of secured liabilities.  Not only did we suggest that FHLB advances should not be included in the definition of volatile liabilities, we also told the FDIC that our members who were taking advantage of this secure funding source should not cause a bank to pay higher FDIC assessments.  Click here to read the full letter.

House Passes Regulatory Relief Legislation
In the last minute flurry of activity before Congress recesses for the fall election, the House and Senate have reached a compromise on a watered-down version of regulatory relief legislation.  The House has now passed the bill and the Senate is expected to soon.  “While this package addresses some important issues such as extended exam cycles for smaller banks, we were disappointed that Congress did not include relief from the more onerous compliance burdens like addressing the Bank Secrecy Act,” said GBA’s Joe Brannen.  “We hope Congress will address these significant issues when they return for the new session early in 2007.  Complying with the myriad of complex regulations continues to be the number one headache for most of our members and a significant bill giving relief from this burden is essential," he concluded.

Senate Banking Committee Hears Commissioner
The Senate Banking and Financial Institutions Committee has met to hear the Georgia Department of Banking and Finance's plans for their annual housekeeping bill to be introduced next session.  Banking Commissioner Rob Braswell told the committee the bill was still in draft form and he expected it to be released later this year.  Among the issues he reported in the bill to be of interest to bankers are provisions relating to the redefinition of good will in merger transactions so as to not artificially inflate a bank's lending limit; bring parity to state chartered banks giving them the same real estate lending limits as national banks; clarify that proxy voting can be electronic; eliminate the need to create phantom banks in merger transactions; and tighten the rules about the use of mortgage information recorded in public records to avoid confusion by the public in solicitations made by those unaffiliated with the lender.  Once we are given a draft of the legislation, we will let you know more about the legislation.

Biometric Privacy Committee Meets
On Wednesday of this week, the House Biometric Privacy Study Committee met for the second time to hear from industries that are utilizing or are interested in certain biometric technologies. GBA’s Elizabeth Chandler appeared before the committee and outlined several ways that biometrics are currently used by some banks and other emerging technologies that are being studied.  In her testimony, Elizabeth highlighted the importance placed on the issue of identity theft in the banking industry and how biometrics may help protect both customer data as well as internal information more securely.  For these reasons, the GBA urges caution by the committee and other lawmakers before placing any restrictions on the use of and safekeeping of this data.  The committee will meet once more in November to develop their recommendations on biometric privacy that will be presented to the full General Assembly in January.

Sixth Annual BankPAC Classic
Registrations are coming in at a steady pace for Leadership GBA’s sixth annual Georgia BankPAC Classic.  This two-man scramble tournament will be held on Wednesday, October 25, at Kinderlou Forest Golf Club in Valdosta.  Registration for this event is $300 per two-man team or $150 per person.  The fee includes greens fees, cart, range balls, lunch and a reception.  If you need overnight accommodations, a block of rooms has been reserved at the Comfort Inn, Valdosta at a negotiated rate of $49.00 a night for single or double occupancy.  You may make your reservations by calling the hotel directly at (229) 242-1212.  Be sure to let them know you are with the Georgia Bankers Association to receive this special rate.  Register now for this challenging and fun event and a chance to win the Georgia BankPAC Trophy.  With questions about the tournament, please call GBA’s Susie McGehee at (404) 420-2010.

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

• Mike Knowles, President & CEO, NorthWest Bank & Trust, Acworth

• Tom Peterson, President, Montgomery Bank & Trust, Ailey

• Jay Staines, President & CEO, First Madison Bank & Trust, Colbert

• Steve Wood, President & CEO, First Nation Bank, Covington

• Elois Anderson, Chief Executive Officer, Bank of Hiawassee

• Pait Willis, President & CEO, South Georgia Banking Company, Tifton

• Bob Thomas, Crowe Chizek and Company, L.L.C., Montgomery, AL

• The Partners of Mauldin & Jenkins, Albany

The officers, directors and staff of the following banks have contributed to the GBA FedPAC:

• Tom Peterson, President, Montgomery Bank & Trust, Ailey

• Pait Willis, President & CEO, South Georgia Banking Company, Tifton

Thanks for your support.  For information, please call Elizabeth Chandler at (404) 420-2027.

State of Georgia Moving to Online CD Bidding Process
In an effort to improve the bidding process for six-month Certificates of Deposit (CD’s), the Georgia Office of Treasury and Fiscal Services (“OTFS”) has decided to replace the facsimile based bidding system with an on-line bidding service. OTFS believes the on-line service provides a more efficient and open means of conducting the State’s monthly CD auctions. In addition, OTFS believes that the convenience and benefits of on-line bidding will increase the level of participation by Georgia banks in its monthly auctions. The on-line CD investment program, called BidGeorgia, utilizes the same technology that several other states use to purchase CD investments from banks in their states. Since its inception in 1999, this on-line bidding service has been well received by over 550 banks in other states that have similar CD investment programs to Georgia, including South Carolina, Texas, Ohio, West Virginia, Louisiana, Idaho, Maryland, Massachusetts and Pennsylvania. A letter has been sent to each bank authorized to bid on state deposits and additional information, including a bidder training schedule and the launch date, will be sent by OTFS in a few weeks. The OTFS asks that each bank complete and return the form it mailed to your bank to identify two bank representatives authorized to participate in these online CD auctions.  Following the receipt of your completed forms, OTFS will have representatives from BidGeorgia contact your designated bank representatives regarding registration and user training.  If your bank has not returned your forms to OTFS and you are interested in participating in this new bid process, please contact OTFS by mail, fax or email as follows:

Rasheed Dawodu
Office of Treasury and Fiscal Services
200 Piedmont Avenue, SE
Suite 1202, West Tower
Atlanta, Georgia  30334-5527
Fax:(404 ) 656-9048
Email: rdawodu@otfs.ga.gov

With questions, please call GBA’s Levi Crabtree at (404) 420-2026.

Registration is Underway for the Marketing Conference
The Marketing Committee has planned an excellent program based on the theme “A Holistic Approach to Marketing Financial Services”.  You won’t want to miss this year’s Conference, scheduled for October 26-27 at the Grand Hyatt Hotel in Atlanta.  Our guaranteed room block expires October 4 so make your reservations today by calling the hotel directly at (800) 233-1234.  Please call GBA’s Marybeth Jones at (404) 420-2032 with questions about the Conference.  Register now to take advantage of this great opportunity to network with your colleagues.

SOTS Scheduled for November
GBA’s Southern Operations and Technology School will be held November 5-10 at the University of Georgia.  As a resource for focused training in banking technology and operations, the School is the premier provider in the Southeast and one of only a few in the country.  The two-year program covers four areas: compliance, risk management, technology and general management.  For more information or to register, please call GBA’s Marybeth Jones at (404) 420-2032 for details.

Credit Conference Set for November 29-30
GBA’s Credit Conference, slated for November 29-30 at the Cobb Galleria adjoining the Renaissance Waverly Hotel in Atlanta, will highlight major topics of interest to bank lenders.  Jimmy Tallent, President and CEO of United Community Banks, Inc., Blairsville, will deliver the keynote address.  General sessions include an economic forecast, peer discussions and a regulatory update.  There will be 2 sets of concurrent sessions.  The first two sessions are “Commercial Real Estate Trends” and “Loan Portfolio Management”.  The second set of concurrent sessions is “Southeast Georgia and Atlanta New Housing Markets” and “Appraisal Quality”.  Thanks to 2006-2007 Credit Committee Chair David Coxon, President and CEO of United Community Bank in Fairburn, for his leadership and to the Committee for their expertise in planning an informative and dynamic agenda.  For hotel reservations, call the Renaissance Waverly Hotel at (770) 953-4500 prior to October 30, 2006. The brochure will be mailed with the next Bulletin.  For more details about the conference and to register, please contact GBA’s Marybeth Jones at (404) 420-2032.

Register Today for AIB Online Courses
Just a reminder that the following AIB Online classes begin on October 23.  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

• Commercial Lending, 16 wks, $375

• General Accounting, 16 wks, $475

• Law & Banking: Applications, 16 wks, $425

• Managing Funding, Liquidity and Capital*, 6 weeks, $545

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

There is still availability in the following AIB Online classes beginning October 16.  Please register as soon as possible to secure a set in the class.

• Analyzing Financial Statements*, 16 wks, $475

• Financial Accounting*, 16 wks, $475

• Law & Banking:  Principles, 16 wks, $425

• Principles of Banking, 16 wks, $375

• Problem Loan Workouts, 6 wks, $275

• Trust Basics, 16 wks, $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.

FDIC Publishes New Money Management Guide for Teens
Earlier this year as part of the National Teach Children to Save Day, we used some statistics to help families understand the importance of financial money management for young people.  The nation’s teens spend roughly $170 billion a year. The direct buying power of children aged four to 12 is predicted to exceed $51.8 billion in 2006. Clearly they know how to spend. What we need to teach them is how to save, invest and live on a budget. The Federal Deposit Insurance Corporation (FDIC) has published a special how-to guide to money management for teens.  The new guide for teens follows two previous special issues for selected age groups – one for senior citizens and their families, the other for young adults including those just beginning a career or family and others still in college or high school.  The FDIC is encouraging financial institutions to make the information in the guides widely available, including reprinting or linking to the material and making copies with their name, logo, a special message and/or self-mailing information. Click here to learn more from the FDIC.

Metro-Atlanta Foreclosures Continue at High Levels
The Atlanta Business Chronicle is reporting metro-Atlanta foreclosure levels jumped 36 percent in August, placing the area second-highest in foreclosures among the nation's 10 largest metro areas. Metro-Atlanta's foreclosure rate for the month was 3.5 times the national average.  The 28-county area had a total of 5,163 properties entering some stage of foreclosure and a foreclosure rate of one new foreclosure filing for every 281 households.  Among the reasons cited were corporate layoffs, pension plans being slashed and adjustable rate mortgages.

Greater ATM Access for Your Bank
Georgia Bankers Association member banks have the opportunity to increase customer loyalty and attract new business with greater ATM convenience. Formed in 1997 and a Strategic Partner of the GBA, InterCept Switch was designed to level the playing field for customers of smaller financial institutions with those of  larger banks which may have greater ATM convenience.  InterCept Switch offers a surcharge-free ATM network that allows community financial institutions to waive surcharges for member customers while retaining the ability to surcharge non-member customers.  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 InterCept Switch’s Steven Roberts at (770) 248-9600 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.

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