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December 7, 2007

Associate Members to Elect Board Representative
Associate Members were mailed ballots this week to vote on their representative to the GBA Board of Directors.  The current representative, Tim Keadle of Porter Keadle Moore, LLP, Atlanta, appointed a Nominating Committee and their nominee is Chris Bledsoe, Banker's Dashboard, Stockbridge.  "Being the Associate Member representative to the GBA Board of Directors is a distinct honor, but carries with it an enormous responsibility," Tim said.  "GBA is unique among trade associations allowing associate members to have a full voting voice in the affairs of the organization, and that's something we take seriously.  The Nominating Committee had a number of qualified candidates to choose among, and the committee feels confident Chris will do a great job representing us," he concluded.  Associate Members are asked to return their ballots by December 31.  If elected, Chris will serve for a two-year term beginning July 1, 2008.

Legislative Reception Deadline Quickly Approaching!
Just a reminder that the room block for the annual Legislative Reception scheduled for January 16 at the Georgia Aquarium will expire on Thursday, December 20.  GBA has reserved a block of rooms at the Embassy Suites Hotel, Centennial Olympic Park for the night of January 16 at a special rate of $169 per night.  You may make hotel reservations by calling the hotel directly at (404) 223-2300.  Be sure to tell them you are with the Georgia Bankers Association.  To register for the reception, please click here.  With questions about the hotel or the reception, contact GBA’s Susie McGehee at (404) 420-2010.

GBA to Administer CD Auction Pledging
Banks participating in the State of Georgia’s monthly certificate of deposit auction will now be working more closely with GBA through a new relationship the Association has been asked to undertake by the state Office of Treasury and Fiscal Services (OTFS).  Each month, the state conducts an online auction of money available for 6 month periods.  The banks winning the bids must pledge collateral above the FDIC insured amounts, and tracking the pledged securities to ensure the appropriate amount is pledged is a huge administrative task.  However, GBA has a long track record in working with a large number of banks who already participate in the GBA Pledging Pool and the association has the state contract to administer that Pool.  We have been able to slightly modify the current software to accommodate this CD auctions, and we appreciate the confidence the OTFS has in the association by awarding us this new contract.  With questions, please call GBA’s Kenyetta Parks at (404) 420-2035.

Foreclosures in the News - Impact Felt in Georgia
Treasury Secretary Henry Paulson has announced a plan to partially address the growing number of defaults and resulting foreclosures of many subprime mortgages.  Most of the subprime loans made in the last few years had an introductory, lower interest rate for a period of two to three years followed by an interest rate reset to much higher rates to more accurately reflect the risk of these mortgages.  Few, if any, of our members made these types of subprime loans, but the meltdown of this market has created widespread disruptions that have impacted all lenders.  Estimates run as high as 30 percent of subprime mortgages are in default even at the introductory rates.  President Bush called on the Treasury Department to convene a summit of lenders, regulators, consumer groups and securitizers to develop a workable solution for those borrowers still current on the introductory rates, but who would likely default when the rates reset.  The proposal is complex but we understand it applies to subprime borrowers who are not in default on their current mortgage but who are not expected to be able to pay the higher rates when the mortgage resets.  These resets will be frozen for five years giving borrowers time to refinance into more traditional products.  We applaud the administration for seeking a reasonable solution to this problem.  Here in Georgia, foreclosures continue to climb primarily in the Atlanta metropolitan area and mostly among subprime borrowers.  Last week the Atlanta Consumer Credit Counseling Service and NeighborWorks sponsored a forum to discuss the issue.  Among the speakers was Mark Duda, a researcher with the Joint Center for Housing Studies at Harvard University.  Mr. Duda was highly critical of many practices among subprime lenders, brokers, and those involved in the securitization process.  He recommended significant reforms, but also suggested Georgia's foreclosure laws needed to move to a more judicial process from the current non-judicial process.  He stated the bankruptcy rate in Georgia was directly related to Georgia's efficient foreclosure process.  We thought you would like to see the PowerPoint presentation he included in his presentation as it contained many of the allegations and wholesale changes the advocates for judicial foreclosure are promoting.  We expect the General Assembly to consider issues related to subprime lending and foreclosures next session.  Stay tuned.

Georgia Economy Strong – But With Challenges
The University of Georgia Terry College of Business annual Economic Outlook was released this week.  Terry College Dean Robert T. Sumichrast made his debut presentation at the 25th annual luncheon in Atlanta.  According to Dr. Sumichrast and Terry's Selig Center Director Jeff Humphreys, Georgia’s 2.4% growth rate predicted for 2008 is expected to be higher than the 2% growth expected for the nation as a whole.  Georgia is also expected to outpace the nation in job growth at 1.1% - or 44,000 new jobs – compared to an expected national growth rate of 0.8%.   While much of Georgia’s economy remains strong, UGA says several sectors are already in recession:  housing, manufacturing, agriculture and the information sector.  The researchers warn there is a 40% possibility of a statewide recession in the first six months of 2008.  The biggest threats:  housing, energy prices and the drought.  Please click here to read excerpts from the report with links to the full report and data sets.

ILC Moratorium Will Expire as Announced - Congress May Act
FDIC Chairman Sheila Bair has announced the agency will not extend the commercial industrial loan company moratorium on deposit insurance applications beyond its January 31 expiration date.  The FDIC has "a legal responsibility to move ahead" with those applications, Bair told reporters in making the announcement.  Congress is already making plans to address the issues bankers have raised about Industrial Loan Companies.  The House passed H.R. 698 to close the ILC loophole in May, but the Senate has not yet acted on the issue. Senate Banking Committee Chairman Chris Dodd (D-CT) released a discussion draft of a bill this week he will ask the Senate to consider.  We have encouraged the entire Georgia delegation to support these efforts and we hope Congress will act before the FDIC moratorium expires.

Fed PAC Reaches Goal; Leadership GBA Tournament Huge Success
Since the last Bulletin, Renee Kloski, Progressive Insurance Companies, Mayfield Heights, OH, has contributed to the GBA StatePAC.  The officers, directors, and staff of Reliance Trust Company, Atlanta, Ken Phelps, CEO, have contributed to the GBA FedPAC.  We are also pleased to report the annual Leadership GBA-sponsored PAC tournament has netted $14,500 for the State PAC.  Thanks to all the support from the Leadership Section and the many sponsors of that event.  With these contributions, the combined total for the Federal and State PAC campaigns has surpassed $200,000.  Please see this week’s BankPAC Update for more details about the PAC campaign to date.  We will wrap up the campaign at the end of this month.  When you click on the Update, you will see that the Fed PAC campaign goal has been reached, but several Groups are just slightly short of their State PAC goals.  Courtesy invoices have been sent to all bank CEOs who have yet to contribute to the State PAC, and we hope to end the year with another successful campaign.  With questions, please call GBA's Elizabeth Chandler at (404) 420-2027.

Last Call for Advanced Consumer Lending Seminar – December 12
There is still space available for GBA’s Advanced Consumer Lending seminar on Wednesday, December 12, at the Ramada Plaza in Macon.  Designed for lenders with at least one year’s experience in consumer lending, this advanced class will tackle the more complicated credits requiring an analysis of the customer’s cash position from tax returns.  Attendees will learn to evaluate the borrower’s ability to repay based on an accurate income position determined by analyzing tax returns.  A variety of types of self-employed borrowers and income issues will also be reviewed.  With questions, please contact GBA’s Courtenay Pope at (404) 420-2015.  Please click here to register.

HMDA and CRA Workshop Scheduled for January 10
More Georgia banks are subject to HMDA than ever before.  HMDA receives ‘microscopic’ scrutiny from federal regulators and it is a significant impact on a bank’s CRA and Fair Lending performance.  Also, banks with total assets between $250K - $1 MM are subject to the “NEW” Intermediate Small Bank examination.  A “NEW” Community Development Test has been added.   To help you receive the most up to date information in these critical areas, GBA will host its HMDA and CRA Workshop on Thursday, January 10 at the Ramada Plaza in Macon.  Designed for compliance officers, loan officers, and other bank personnel responsible for HMDA data collection and reporting, this one day seminar will cover the following topics:

• What types of loan applications (including denied, withdrawn, and incomplete applications) are HMDA reportable ?

• How do we identify those refinance and home improvement loans that are HMDA reportable?

• What are the regulatory consequences for non-compliance?

• What can we expect from the bank regulators regarding HMDA?

• What is a “community development” loan, service, or qualified investment?

• Should the bank collect data on CRA loans even though it will not report the data?

With questions, contact GBA’s Courtenay Pope at (404) 420-2015.  Please lick here to register.

Register Today for AIB Online Courses
Here is a preview of the upcoming AIB online classes for January 2008.  Please register two weeks in advance to secure a seat in the class.  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.)

• ABA Online Review Course for the CTFA Exam (open enrollment), 12 weeks, $795

• Analyzing Bank Performance, 7 weeks, $745, (January 15)

• Analyzing Financial Statements, 16 weeks, $485, (January 15)

• Commercial Lending, 16 weeks, $385, (January 28)

• Consumer Lending, 16 weeks, $385, (January 21)

• General Accounting*, 16 weeks, $485, (January 15)

• Introduction to Mortgage Lending, 16 weeks, $385, (January 21)

• Law & Banking:  Applications, 16 weeks, $435, (January 21)

• Principles of Banking, 16 weeks, $385, (January 15 & January 28)

• Principles of Banking Accelerated, 10 weeks, $315, (January 21)

• Today's Teller: Developing Basic Skills* (open enrollment), 8 weeks, $295

There is still availability in the following AIB Online classes beginning December 17.  Please register as soon as possible to secure a seat in the class.

• General Accounting*, 16 weeks, $485

• Principles of Banking, 16 weeks, $385

Please see the AIB Online Course Schedule for a complete listing or call GBA’s Alison Moreau at (404) 420-2034 with questions.

AIB Classroom Course
The next AIB classroom courses for Winter 2008 is Law & Banking:  Applications and will be taught by Cassie Parker of McIntosh State Bank, McDonough.  The class begins January 14 and meets for 10 consecutive weeks.  The cost is just $195 and the cost for the textbook is $69.  GBA has been offering AIB in-person classes for many years.  The classes meet three hours each week for 2 to 15 weeks and are held at a local financial institution.  If you would like to see a specific AIB course offered in your area or if you have questions about AIB classroom courses, please call GBA’s Alison Moreau at (404) 420-2034.

2007 GBA Credit Conference Wrap-up
This year's annual Credit Conference set attendance records as CEO's, senior lenders, and loan officers from across the state gathered to hear from a variety of experts on issues important to Georgia bankers.  Keynote Speaker Alex Sheshunoff opened the conference with a presentation on trends in our industry.  Small group peer discussions were facilitated by Credit Committee members on timely topics relating to lending issues and best practices.  A Regulatory Panel comprised of Commissioner Rob Braswell of the Department of Banking and Finance, Bill Estes of the Federal Reserve, Gale Simons-Poole of the FDIC, and Jimmy DeVane of the OCC discussed important issues facing our industry, managing a bank through an economic downturn, and what regulators are looking for and expect when they are examining a bank today.  Breakout sessions were offered on topics as wide-ranging as Loan Workouts Managing a Deteriorating Credit Relationship Loan Participations the Condition of the Commercial Real Estate Market (office, industrial and retail), and Residential Construction.  Whether it was learning how many months of developed lots are available in each of the 22 counties in Atlanta's MSA, what impact that has on banks statewide, the current absorption rates of new house construction, or the amount of vacant office space, conference attendees were presented with the good, the bad, and the sometimes ugly reality of today's real estate market.  Mercer University’s Dr. Roger Tutterow concluded the session with his economic forecast for next year. While 2008 will certainly be a challenging year for Georgia bankers, from the continuing slow down in housing to the continued compression of interest margins, Dr. Tutterow reminded us what a great state we live in and how resilient our state and national economies really are. Our thanks to the Credit Committee Chairman Rick Drews, CEO of Century Bank of Georgia in Cartersville, the committee, the sponsors, exhibitors and presenters for a hugely successful, informative, and enjoyable conference.

Welcome New GBAIT Participant
The GBA Insurance Trust, Inc. Board of Directors welcomes to the Trust Perimeter First Bank, I.O., Alpharetta, D. R. Grimes, CEO.  This company joins more than 290 community banks and associate members in this unmatched member benefit.  Please call GBA’s Susan Kelley at (404) 420-2017 for details.

Status of Important Banking Cases
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.  The Status of Important Banking Cases is another member benefit for the attorneys in GBA's Bank Counsel Section.  With questions about how your bank's attorney can participate, please call GBA's Kenyetta Parks at (404) 420-2035.

FTRANS: Trade Credit Express
FTRANS Corp., based in Atlanta, GA and a Strategic Partner of the GBA, is the creator of Trade Credit Express™ (TCE), the business-to-business payment system that provides business sellers with all of the advantages of accepting credit cards for payment while still allowing them to extend free and flexible payment terms to their buyers.   The mission of FTRANS is to move seller-funded trade credit to financial institutions – just as bank credit cards moved consumer credit to financial institutions.  Offered through banks, TCE provides lenders with a new unique and differentiated product offering for their business clients.  The benefits to banks include:

• Increased business deposits

• Diversification within their commercial loan portfolios

• Safer, lower risk commercial loans in a time of credit market volatility

• Increased loan margins

• Account visibility and control

• Customer acquisition and retention

For more information, please contact FTRANS’ John Hayes at (678) 268-4040, 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:

Atlanta - United Americas Bank William (Bill) Blanton has been appointed to the bank's Board of Directors. Calhoun - North Georgia National Bank Congratulations to CEO David J. Lance on his recent election to serve as trustee on the Board of the Georgia Conservancy. Cumming - First National Bank of Forsyth The bank has merged with The Buckhead Community Bank and changed its name to Forsyth Community Bank.  Andrew Walker will serve as Regional President for The Buckhead Community Bank and Sam Story as President of the new bank. Fayetteville - Southern Community Bank Lisa Watkins has joined the bank as Marketing Officer, and April Brackett has been promoted to Banking Officer. Gainesville - Gainesville Bank & Trust Angela Antonia and W. D. (Dey) Palmer have been promoted to Assistant Vice Presidents and Joyce Shewbert to Banking Officer.  Karen Townley has been promoted to Assistant Vice President and Benefits Specialist at the bank's holding company, GB&T Bancshares, Inc. Gainesville - Hall Community Bank Ricky Pugh is pleased to announce the bank's new trade name following the merger of their parent company with Buckhead Community Bank.  Ricky will continue to serve as President. Gainesville - Peach State Bank Rhonda Wright has joined the bank as Customer Service Representative. Louisville - Queensborough National Bank & Trust Company Our sympathies to CEO Bill Easterlin, family, friends and colleagues on the recent death of Bill's father, Frank Easterlin.  Frank served as Chairman of the bank's Board of Directors. Macon - Atlantic Southern Bank Congratulations to CEO Mark Stevens, officers, directors and staff on the recent opening of the bank's first Florida branch in Jacksonville. Woodstock - Bank of North Georgia Matthew Roberts has been promoted to Assistant Vice President. Valdosta - Commercial Banking Company Denise Dickey has been promoted to Vice President, Information Technology; Dain Smith to Banking Officer; Jonathan Montgomery and Linda Bowden to Assistant Banking Officers; and Cheryl Garner, Yvonne Kimmel, and Iris Cowart to Administrative Lending Assistants.	Walker Palmer Pugh	Story Shewbert Wright	Antonia Townley Roberts
	Left to right: CEO Mark Stevens, Jacksonville Mayor John Peyton, and Chief Banking Officer Gary Hall