Legislative Wrap-up From the Georgia General Assembly
As we have reported in previous Bulletins, the Georgia Bankers Association’s legislative package this year was entirely adopted by the Georgia General Assembly.  “Many in the media have been writing stories about the lack of substantial legislation being passed by the General Assembly this year.  However, that was mostly be design among the legislative leadership and from GBA’s standpoint, we were totally pleased with the reception given our initiatives,” said GBA President Joe Brannen.  “Five bills were enacted that were either introduced at our request or which we supported.  We also supported successful amendments or raised enough questions about several other bills that did not pass which would have been detrimental to our industry,” Joe concluded.  Among the most important bills passing was H.B. 441, a tax bill that could save Georgia banks over $7 million if it is signed by the Governor.  Following are the bills we supported that received final action:

• Bank Taxation.  H.B. 441 by Reps. Floyd, Mills, Parrish, Royal and Knight. Reverts to the language in existence prior to 2005 to revise provisions relative to the adjustment of taxable income with respect to income from federal obligations and certain other obligations.  Click here to read the issue brief we shared with legislators. We have met with the Governor's senior staff to brief them on the legislation and encouraged his signature.

• Federal Home Loan Bank Letters of Credit.  H.B. 96 by Reps. Mills, Floyd, Hill and Knight.  Adds Federal Home Loan Bank Letters of Credit to the authorized list of investments financial institutions may use to collateralize public deposits upon the approval of the director of the Office of Treasury and Fiscal Services.  The bill is expected to be signed by the Governor.  We understand a meeting will be called by the Depository Board so that the mechanism will be in place by July 1.

• Department of Banking and Finance Housekeeping Bill.  S.B. 70 by Sens. Hamrick, Hudgens, Thompson, Murphy, Tarver and Rogers.  Among the provisions of most interest to bankers:  provides parity between state and federally chartered banks by removing certain limits on real estate loans for state banks; statutory capital base is redefined to limit the impact of goodwill and other intangibles after a merger to prevent artificial increases in loan limits, investments and fixed assets; clarifies that proxy voting by electronic means is allowed; and, eliminates the need to form an interim bank when a share exchange transaction occurs.  Please click here for a summary of the bill.  The bill is expected to be signed by the Governor.

• Zoning/Density.  H.B. 430 by Reps. Ralston, Roberts, Hatfield and Crawford.  The bill applies mostly to railroad issues, but an amendment was added to clarify that approved density in subdivisions cannot be changed by future density decisions.  The bill is expected to be signed by the Governor.

• Identity Theft.  S.B. 236 by Sens. Rogers, Hudgens, Thompson, Goggans, Hawkins and Powell provides for notification by certain state agencies upon a breach of security regarding personal information; changes certain provisions relating to the elements of the offense of identity fraud; and provides for a victim's right to file a report with a law enforcement agency.  GBA supported the bill and it is expected to be signed by the Governor.

• Bid & Performance Bonds.  H.B. 134 by Reps. England, Heard, Coan and Benton.  Raises from $300,000 to $750,000 when the amount of any bid or performance bond is required giving the governmental entity the discretion to accept an irrevocable letter of credit issued by a bank or savings and loan association in lieu of a bond otherwise required.  The bill is expected to be signed by the Governor.

Among the issues GBA monitored on behalf of our members, but did not receive final action were:

• Firearms.  Legislation was introduced that would allow motorists to store handguns anywhere in their cars, instead of keeping them in plain sight, a glove compartment or front-seat console, as required under current law.  The bill was amended with an NRA-backed bill that prohibits businesses from adopting policies that would not allow employees to keep firearms in their cars while the vehicles were parked on company lots.  Several of our members expressed concern about the security of bank facilities should such a bill passed.  The Georgia Chamber of Commerce took the lead in opposing the bill and it was not passed.

• Retraining Tax Credits.  Legislation was introduced at the request of the Revenue Department to eliminate all the retraining tax credits banks and other companies currently use.  That language was stripped for the bill that was eventually reported out of committee, so the bank retraining tax credits will remain available.

• Bank Data Match for Delinquent Taxes.  Legislation was introduced at the request of the Revenue Department to require financial institutions to participate in an electronic data-match program for tax cheats similar to the program currently being used to find parents not paying child support.  At GBA's request, the bill was amended so that the program would become a pilot program for the three largest banks in Georgia, but the bill failed to receive final passage.

• Credit Reports and File Freezes.  Several bills were introduced that would have allowed individuals to freeze their credit reports.  No consensus was reached on any bill and a study committee is expected to consider the issue before next session.

• Biometrics.  Legislation was introduced that could have prevented the use of biometrics in identify individuals, including the kind of software currently being used by some of our members.  GBA testified in opposition to the idea of prohibiting the use of emerging technology that is proven to prevent identity theft and the bill was not enacted.

• Payday Loans.  GBA monitored legislation which would have brought back payday lenders to Georgia.  Although considered twice by the full House, the bill failed to receive enough votes for passage.

• Bankruptcy.  S.B. 133 by Sens. Tarver, Brown, Ramsey, Fort and Thomas.  Would have increased the homestead exemption in Georgia bankruptcy filings from $10,000 for individuals and $20,000 for couples to $50,000 for individuals and $100,000 for couples.  GBA met with the author to express our concern with the legislation and it was not passed.

GBA monitored 46 bills this session, including those mentioned above.  Please click here to see a complete list of those we were following.  With questions, please call GBA's Elizabeth Chandler at (404) 420-2027.

Georgia Bankers Return from DC
A delegation of Georgia bankers returned Thursday from Washington after having met with the major federal bank regulators, members of the Georgia House Delegation and our two Senators.  The bankers were also briefed by the American Bankers Association on the political atmosphere in Washington and how that affects the issues being debated.  “While we were in Washington, we were delighted to see the House Financial Services Committee report out the Industrial Loan Company (ILC) legislation that is designed to maintain the historic separation of banking and commerce,” said GBA Chairman Bobby Carmichael, President of Commercial Bank & Trust in LaGrange.  “Other issues we discussed while on the trip were the expansionary bills being pushed by the credit unions and the Farm Credit System, and the need to pass comprehensive regulatory burden relief.  We encouraged the delegation to be cautious as they look into any legislation dealing with foreclosures, especially as the legislation might relate to some of the ideas we were hearing about the problems in the subprime market.  Overall, we felt good about the responses we got and look forward to a continuing dialogue with these policymakers,” Bobby concluded.

Jordan, Williams, Eaves to be Nominated
Tom Wiley, President and CEO of The Coastal Bank, Savannah, and Chairman of GBA’s Nominating Committee is pleased to report the names of the three bankers who will be nominated to association-wide office at the Annual Convention June 19 at the Ritz-Carlton, Grand Cayman.  For the position of GBA Chairman-elect, the Committee is nominating Steve Jordan, President of the Bank of Monticello.  For the position of GBA Vice Chairman, the Committee is nominating Andy Williams, President of United Community Bank, Blairsville.  And for a three-year term as GBA Secretary-Treasurer, the Committee is nominating Randy Eaves, President of the First National Bank of Georgia, Buchanan.  “These three bankers are among the most respected in our industry and represent a cross-section of geography and asset size.  The association will be in good hands with these bankers leading us into the future,” Tom said in making the announcement.  Automatically assuming the GBA Chairmanship at the convention will be Jim Williams, President of Citizens Bank and Trust in Eastman.  Steve Jordan is a former president of GBA’s Young Bankers Section (now called Leadership GBA), a Group Officer and is currently his group’s representative to the GBA BankPAC Board.  Andy Williams is a former Group Officer, member of the GBA Board of Directors, Chair of GBA’s Community Bankers Committee and currently serves on the board of GBA Insurance Trust, Inc.  Randy Eaves is a former Group Officer, member of the GBA Board of Directors and active in committee service over the years.  Our thanks to these bankers for stepping forward in these positions of leadership for our industry.

Private Ground Transportation Available at Convention
Final details are being made for GBA’s 2007 Annual Convention slated for June 17-20 at the Ritz-Carlton, Grand Cayman.  For your convenience, the Ritz has arranged for private transfers with “meet and greet” service from the airport to the hotel. The fee is $27.50 per person one way and may be charged to your room.  If you would like to take advantage of this service, complete the Hotel Transportation Form and return it to the hotel, via fax at (345) 815-6855 by June 8^th.  With questions, contact GBA’s Susie McGehee at (404) 420-2010.

PEP Reporting Deadline May 31
Just a reminder that the May 31 deadline to report your PEP contacts is quickly approaching.  Leadership GBA’s 2006-2007 PEP goal is to make at least 65,000 contacts.  When you report your visits and presentations, you help meet the growing financial education needs in the state of Georgia.  You may also earn an Outstanding PEP Award for yourself and/or your bank.  It is easy to ensure that you and/or your bank are given the credit it’s due.  When you return from a visit to your school or any other group presentation, take a few short minutes to complete a PEP Report Card.  By completing and returning this form, you let the GBA and the ABA Education Foundation know that your bank is willing to do more in 2006-2007 to help provide financial literacy in your community.  PEP materials and brochures to assist you with your presentations are available through GBA and ABA.  Topics include personal financial management, credit responsibilities and many others.  If you have questions or need assistance, please call GBA’s Jennifer Stevens at (404) 420-2024 or visit the ABA website for additional resources.

Analyzing Personal Financial Statements Seminar on May 10
GBA will host its Analyzing Personal Financial Statements seminar on Thursday, May 10 at the DuBose Porter Center at Heart of Georgia Technical College in Dublin.  The registration fee is $195 per person and Mike Allen, President & CEO of Georgia Trust Bank, Buford, is the instructor.  Designed for credit analysts, branch managers, consumer lenders and entry-level commercial lenders, this one-day seminar will cover the process of analyzing personal financial statements and tax returns.  Some of the topics to be covered include:

• Identifying the borrower’s ability to repay your loan from a cash flow analysis

• Identifying new cross-selling opportunities

• Spotting fraudulent tax returns

• Developing a pattern of logical, analytical thinking

• Examining a personal tax return for hidden information

• Developing an adjusted net worth

• Making valid credit decisions based on careful analysis

• Identifying if income is continuing, verifiable, and recurrent

With questions, please call GBA’s Courtenay Pope at (404) 420-2015 or Susie McGehee at (404) 420-2010.  Click here to register.

Rural Development and Lending Conference Later this Month
Our thanks to GBA's Agriculture Committee chaired by David Keith of South Georgia Bank in Omega for planning an outstanding  Rural Development and Lending Conference scheduled for May 17-18 at the King & Prince Beach and Golf Resort on St. Simons Island.  Topics on this year’s agenda include:  market trends and the economy, analyzing Ag credits, FSA Guaranteed Lending, current legal issues, commodity hedging, and GPS potential savings.  This annual conference is one of GBA's longest traditions and we look forward to another outstanding event.  With questions or to register, please call GBA’s Marybeth Jones at (404) 420-2032.

Register Today for AIB Online Courses
Here 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 and 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

There is still limited availability in the following AIB Online classes beginning the week of May 21.  Please register as soon as possible to secure a seat in the class.

• Commercial Lending, 16 weeks, $385

• Consumer Lending, 16 weeks, $385

• Economics for Bankers, 16 weeks, $385

• Introduction to Mortgage Lending, 16 weeks, $385

• Law & Banking: Principles, 16 weeks, $435

• 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.

Roundtable Discussions at Leadership Conference
Make plans now to attend Leadership GBA’s 47^th Annual Leadership Conference scheduled for July 15-18 at the Ponte Vedra Inn & Club in Ponte Vedra, Florida.  Back by popular demand this year are Roundtable Discussions facilitated by Darron Burnette, Senior Vice President with Sea Island Bank in Statesboro.  Are you looking for a solution to a particular operations issue at your bank?  Do you have a marketing program that has proven successful that you would like to share?  If so, don’t miss this great opportunity to gain AND share knowledge on topics such as marketing, operations, technology, risk management, leadership and many more.  With questions about the conference, please call GBA’s Susie McGehee at (404) 420-2010 or Jennifer Stephens at (404) 420-2024.  Click here to register.

Congratulations AIB Graduates
The American Institute of Banking has been recognized as the industry standard in banking education and training for over a century.  And as the local AIB training provider, GBA is proud of its commitment to Georgia bankers by offering AIB courses.  AIB Diplomas and AIB Certificates are well recognized within banking and financial communities.  To earn one of these diplomas or certificates can take years of dedication, commitment and perseverance.  It is with great pleasure we announce the 2006 graduates of the American Institute of Banking.  Diplomas were earned in the areas of Banking & Finance, Bank Operations, Commercial Lending, Consumer Lending, General Banking, Mortgage Lending, and Bank Marketing.  A Supervisor Certificate was also awarded.  Please join us in congratulating your fellow bankers for their accomplishments.

Stock Market: Another Positive Quarter for GBA Retirement Services, Inc.
GBA Retirement Services, Inc. is pleased with the investment returns for 1^st quarter 2007.  Both Reliance Trust Company and Atlanta Capital Management continue to have solid, competitive long-term investment returns and compare very favorably among most of their benchmarks.  GBA Retirement Services has seen continued growth among the number of banks entering the 401(k) Trust.  Please refer to the update for detailed returns.  Advantages of being part of the GBA Master Trust include:  GBA dedicated staff support as primary resource, coordination of all service providers to ease your administration, reduced fees with high quality service providers, and ongoing investment education for employees (which includes a complimentary enrollment DVD).  Please contact Mandy Richards at (404) 420-2025 for information on how GBA Retirement Services can help design a retirement plan for your bank.

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

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 - The Buckhead Community Bank The bank announces that John E. Scherer will serve as President of The Cobb Community Bank that is scheduled to open in June. Claxton - The Claxton Bank Rene Spikes has been promoted to Teller Supervisor. Statesboro - Sea Island Bank Chad Wiggins and Ken Rabitsch have been promoted to Senior Vice Presidents and Gay Dailey to Vice President. Valdosta - Commercial Banking Company Brad E. Barber has been promoted to City President–Moultrie.

Scherer Rabitsch

Spikes Dailey

Wiggins Barber

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