Governor Vetoes Bank Tax Bill
Governor Sonny Perdue has vetoed H.B. 441, legislation designed to reverse the tax increase many of our members experienced as a result of legislation passed in the 2005 session.  The tax increase is related to the cost of producing income from U.S. Government obligations.

“It was a huge disappointment to learn of the Governor’s veto as the bill was GBA’s number one priority issue last session,” said GBA President Joe Brannen.  “Every legislator we talked with felt they had been misled when the original bill passed.  That bill resulted in a tax increase estimated to be more than $7 million and the impact was disproportionately greater on smaller, community banks.  With only two dissenting votes in either the House or Senate, the legislature clearly intended to right that wrong,” Brannen said.

When the GBA began to hear from our members about the negative impact from the 2005 legislation, GBA Chairman Bobby Carmichael, President and CEO of Commercial Bank & Trust in LaGrange, appointed a Tax Advisory Committee to consider various options to minimize the impact.  After reviewing several options, the Committee proposed a solution that would allow a bank to use its non-interest bearing deposits as a credit against the cost of producing the tax-exempt income.  While that solution would not have totally reversed the increase for all banks, it would have gone a long way toward reducing the impact.  We presented that solution to the Revenue Department and learned of the Department’s rejection of the proposal by reading a copy of a letter the Revenue Commissioner sent to the Chairman of the House Ways and Means Committee, Rep. Larry O’Neal.  As every effort to discuss various options with the Department was met with no response, GBA felt our only option was to ask the General Assembly to simply repeal the entire section of that 2005 bill, which they did.

“From the Governor’s veto message, he says he has been assured by the Revenue Department that they are committed to clarifying the formula which has created the problem by September 30.  We will continue to reach out to the Department as we have in the past, and hope our efforts will be met with more success,” said Brannen.

We especially recognize the efforts of several legislators who were extremely helpful in trying to resolve this issue:  Rep. Johnny Floyd (R-Cordele); Rep. Larry O’Neal (R-Warner Robins); Rep. James Mills (R-Chestnut Mountain); Rep. Richard Royal (R-Camilla); Rep. David Knight (R-Griffin); Rep. Butch Parrish (R-Swainsboro); Rep. Earl Ehrhart (R-Powder Springs); Speaker Glenn Richardson (R-Hiram); Sen. Jack Murphy (R-Cumming): Sen. Chip Rogers (R-Woodstock); Sen. Don Balfour (R-Snellville) and Lt. Gov. Casey Cagle (R-Chestnut Mountain).

Sub S Banks Benefit from Legislation
Contained in the recent compromise military spending bill signed by President Bush (H.R. 2206) are several provisions easing restrictions on Subchapter S institutions. The legislation includes language that will exclude capital gains from passive investment income; improve the treatment of bank director shares; allow the recapture of bad debt reserves; reform the disposition of an interest in a qualified Subchapter S subsidiary; eliminate the earnings and profits attributable to pre-1983 years; and expand qualifying beneficiaries of an electing small-business trust.

Fed Reduces Reg O Burden
The Federal Reserve has approved a final rule that eliminates several statutory reporting and disclosure require-ments for insider lending under Regulation O.  The rule, among other things, would discard a requirement that banks include details of extensions of credit to executives in an attachment to Call Reports.

Demarest to Keynote Annual Convention
Details are being finalized for GBA’s 2007 Annual Convention slated for June 17-20 at the Ritz-Carlton, Grand Cayman.  Elaine Demarest, President of Demarest Strategy Group in Hilton Head, South Carolina, will be one of the keynoters at the two General Sessions.  Her fast-paced presentation is designed to help you plan ahead to deliver positive results for your bank.  The year 2006 was a record year for growth and profits in Georgia’s banks.  2007 and beyond will hold new challenges.  At this session, Elaine will challenge you to look outward at banking trends and the Georgia environment to help you anticipate change for reality-based planning.  Then Elaine will help you look inward with some ideas on devoting time and talent toward disciplined execution in your growing organization.  Confirmation packets have been mailed to all attendees we had on record by the first of the monthm and we have had a number of new registrations since then.  The 2007 Convention is shaping up to be another blockbuster for Georgia bankers.  We look forward to a great time of learning and networking.  With questions, please contact GBA’s Susie McGehee at (404) 420-2010.

Annual Convention Private Ground Transportation Reminder
Just a reminder that the Ritz-Carlton, Grand Cayman has arranged private transfers that includes “meet and greet” service for Annual Convention attendees from the airport to the hotel.  The fee is $27.50 per person one way and may be charged to your room.  The Hotel Transportation Form was included in your confirmation packet.  If you would like to take advantage of this service, complete the form and return it to the hotel, via fax to (345) 815-6855, by June 8th.  Please call GBA’s Susie McGehee at (404) 420-2010 with questions.

Last Call For BSA/AML Security  Seminar - June 14
There’s still time to register for GBA’s BSA/AML Security seminar scheduled for Thursday, June 14 at the Macon Ramada Plaza.  The registration fee is $195 and Steve Cross, Ed Phillips and Alvin Mitcham with SunTrust Bank, Atlanta, are the instructors.  Designed for anti-money laundering professionals, this one day seminar will focus on the Bank Secrecy Act, the filing of SARs, OFAC, and much more.  Special Agent Tom Justice with the U.S. Immigration and Customs Enforcement (ICE) will also be on hand to discuss Money Laundering and Money Service Businesses.  This seminar also qualifies as curriculum credit required for the Bank Security Academy.  With questions, contact GBA’s Courtenay Pope at (404) 420-2015 or Susie McGehee at (404) 420-2010.  Click here to register.

Hotel Deadline Quickly Approaching!
Just a reminder that the room block for Leadership GBA’s 47^th Annual Leadership Conference will expire on Monday, June 11.  The July 15-18 conference will be held at the Ponte Vedra Inn & Club in Ponte Vedra, Florida.  If you have not already done so, please reserve your room as soon as possible by contacting the hotel directly at (904) 285-1111 or (800) 234-7842.  The negotiated rate is $219 per night plus a $16 per room per night resort fee.  The Leadership GBA Executive Committee has planned a great program that you won’t want to miss!  With questions, please call GBA’s Susie McGehee at (404) 420-2010 or Jennifer Stevens at (404) 420-2024.  Click here to register.

Compliance Peer Group Slated
The fourth quarterly meeting of GBA’s Compliance Peer Group is scheduled for July 18^th at the Macon Ramada Plaza.  The agenda is currently being prepared by the Administrative Committee chaired by Louvera Walden of Ameris Bancorp in Moultrie and will be announced within the next two weeks.  Please email GBA’s Marybeth Jones to be placed on the distribution list for these meetings.

Register Today for AIB Online Courses
Following are the available online classes for June 2007.  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.)

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

• Analyzing Financial Statements* (June 25), 16 weeks, $485

• Commercial Lending (June 25), 16 weeks, $385

• Financial Accounting* (June 18), 16 weeks, $485

• Financial and Business Planning for Bank Marketers* (June 25), 9 weeks, $285

• General Accounting* (June 18), 16 weeks, $485

• Introduction to Agricultural Lending (June 25), 8 weeks, $375

• Principles of Banking (June 18), 16 weeks, $385

• Principles of Banking - Accelerated (June 25), 10 weeks, $315

• Retirement Plan Services – Investments (June 25), 6 weeks, $795

• Team Leader Certificate (June 25), 16 weeks, $695

• Today's Teller: Developing Basic Skills* (open enrollment), 8 weeks, $285

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

Congratulations to AIB classroom STAR Students
GBA’s “STAR Student” program recognizes outstanding academic excellence in the AIB classroom courses.  The award is given to the student with the highest overall academic average and strong classroom participation.  Congratulations to the STAR Students for Winter 2007:

• Terrell Smith, Crescent Bank & Trust Company, Jasper; Principles of Banking

• Sandra Huff, Gwinnett Community Bank, Duluth; Consumer Lending

• Katie Kerlin, Gwinnett Community Bank, Duluth; Consumer Lending

• Lindsey Morgan, Northwest Georgia Bank, Ringgold; Law and Banking: Applications

• Danielle Heath, Georgia Bank & Trust, Cartersville; Marketing Financial Services

• Crystal Bedell, Douglas County Bank, Douglasville; Principles of Banking

• Kimberly Lee, The First State Bank, Stockbridge; Supervision

• Phil Shannon, Northwest Georgia Bank, Ringgold; Consumer Lending

GBARS Welcomes New Member
GBA Retirement Services, Inc. is pleased to welcome to the Trust Rockbridge Commercial Bank, Atlanta, Lauch McKinnon, CEO.  The programs offered through the GBA Master Pension and 401(k) Profit Sharing Trust provide flexibility to meet the needs of any bank or associate member who may be looking at adding or changing their qualified retirement plan.  The Master Trust provides high quality, affordable pension, profit sharing, and Section 401(k) programs for banks and associate members of all sizes.  Please contact Mandy Richards at (404) 420-2025 for more information on how GBA can help design a retirement plan for your bank.

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.  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.

Affinion Group: Customer Appreciation Program
Affinion Group, a Strategic Partner of the Georgia Bankers Association, offers banks $1,000 of complimentary accidental death and dismemberment insurance through their Customer Appreciation Program at no cost to the DDA, credit card, and mortgage customers.  Additionally, at the time of the offering, the customer has the option to purchase additional amounts of insurance at a low monthly charge.  Currently over 4600 financial institutions have decided to implement the Customer Appreciation Program.  They range in size from small rural community banks to money center banks.  There is no cost to the bank to offer the program.  Not only does this program help increase profitability by increasing fee income, it also helps retain core accounts. For more information, please contact Affinion’s Bill Lowe at (800) 251-2148, Ext. 2562, or GBA’s Chad Wilson at (404) 420-2022.

Thumbprint Signature Program
GBA’s Thumbprint Signature Program was designed to help banks lower their losses encountered by check fraud.  The device known as the Thumbprint Signature touch pad is intended to deter counterfeit and stolen check fraud by obtaining a thumbprint signature from non-customers when cashing on-us and not-on-us checks.  To find out more information or to order this unique program, please contact GBA’s Kenyetta Parks at (404) 420-2035.

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.
 

Bond and D&O Insurance	Human Resources Solutions
Checking Club Programs	Internet Loan Closing Program
CRM	Job Bank
Discounted Check Program	Marketing
Discounted Local & Long Distance Program	Non-Qualified Executive Benefits (BOLI)
Financial Industry Pre-Employment Assessments	Pledging Pool Program
FinCrime	Record Retention Guide
Financial Marketing Solutions (FMS)	Senior Housing Crime Prevention Foundation
Georgia Financial Directory	Strunk & Associates, L.P.
Georgia Laws Code Book	Thumbprint Signature Program
Holiday Decals	Trust and Investment Services

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:

Clayton - Rabun County Bank Yong Kim has joined the bank as Chief Financial Officer. Gainesville - Gainesville Bank & Trust Mike Emigh has been promoted to Vice President, Corporate Lending.  Congratulations to Nick Kastner who has been selected to receive the 2006 Massey Award of Excellence. Jonesboro - Heritage Bank Congratulations to CEO Leonard Moreland, the officers, directors and staff on the bank’s recent ranking by PricewaterhouseCoopers LLP as 11th among a list of 100 Georgia-based publicly held companies according to 2006 stock performance. Suwanee - Republic Bank Addam J. Taussig has joined the bank as Senior Vice President, Commercial Lending and Russell Grigg as Assistant Vice President – Commercial Relationship Manager. Thomasville - Farmers & Merchants Bank F. Wilson Carraway, III has been named to Chairman of the bank's Board of Directors; R. Michael Sims to President and Chief Executive Officer; Jerry G. Boatwright to Senior Vice President and City Executive, Monticello and Greenville; Ervin Brock to Senior Vice President and City Executive, Thomas County; Don E. May to Senior Vice President and City Executive, Tallahassee; and Drew Whitaker, Jr. to Senior Vice President and Senior Lending Officer.	Kim Taussig	Emigh Grigg
	L to R: Richard Hunt, Nick Kastner, Abit Massey

Serving the needs of Georgia Bankers since 1892 Search I Staff I Contact Us Georgia Bankers Association - 50 Hurt Plaza, Suite 1050, Atlanta, GA 30303 • Phone 404.522.1501 • Fax 404.522.9848