We’re hearing from a number of you that customers are asking questions about your bank’s safety-and-soundness ranking by online rating services such as BankRate and Bauer. We all know that these rankings don’t tell the whole story, but we recommend that each member bank know their ratings from these services and how these services calculate their ratings. Then, make sure your staff is prepared with your own information that details key information the services just don’t have access to as a way to reassure your customers. Aside from your bank’s individual story that only you can tell, here are some general thoughts you can share with your customers who may inquire about the scores from these services.

• These are ratings from for-profit companies that are based on relatively simplistic formulas. The only true list or rating that matters is the one from the FDIC, which has a more thorough and complete picture of a bank’s safety and soundness. (Note, however, that the FDIC directs people to these agencies through their web site as a service to concerned consumers. It clearly does not endorse or confirm the accuracy of the rankings, but they do encourage consumers to check them out.)

• The FDIC has good reason not to publish their ratings. Banks with problems often work them out over time. On average, the vast majority (87 percent) of banks on the FDIC problem list come back to healthy status over time.

• Lists from non-regulatory bodies can’t fully assess the true safety and soundness of an organization. They don't know what proactive steps the bankers are taking to ensure safety and soundness or what corrective actions have been taken since the public information was published.

• If your deposits don’t exceed FDIC insurance coverage limits, there’s no need for you to be concerned. No one has ever lost a penny of FDIC insured deposits. Your banker can help you understand your coverage and help you understand your options for making adjustments to your accounts if necessary to ensure that all of your deposits are insured.

If we can help you with any of this, please contact GBA's Senior Vice President for Communications & Marketing, David Oliver, 404.420.2036.

Take advantage of the excellent networking opportunities with your colleagues by attending GBA’s new Fall Economic Forums scheduled during the month of September.  The forums will be held on Sept. 4 in Gainesville, Sept. 11 in Macon and conclude on Sept. 23 in Valdosta.  The program will feature an overview of the current national and regional economic environment by Dr. Roger Tutterow, professor of Economics at Mercer University, Atlanta.

Congratulations to Kevin Hagler who has been named the new Deputy Commissioner for Supervision at the Georgia Department of Banking and Finance. Kevin will oversee 62 examiners statewide and has responsibility for supervision of new banks, special-purpose banks and troubled institutions. Kevin began his career with the department in 1997. He progressed through the examiner ranks and became a supervisory examiner in 2002 in District 1. In 2003, Kevin was appointed to the position of district director in District 1, where he assumed field regulatory and supervisory responsibilities for the financial institutions in the District. Kevin is a graduate of Auburn University with a degree in Finance and is a certified examination manager. Kevin told the Atlanta Business Chronicle that the department’s budget constraints, and worries about further spending cutbacks by the legislature in the next session, have him already looking to get efficiencies “wherever I can” within the exam division.

The Georgia Department of Banking and Finance has adopted the changes to nine new or amended rules we reported about July 3. Most of the changes apply to non-banking firms regulated by the department.  However, at GBA’s request from member input, there is a provision that removes the 10-year limitation on interest-only loans for single family owner-occupied residential loans.

The nation’s largest mortgage servicers have been encouraged to hold off on foreclosures on borrowers who are possibly eligible for assistance under FHA’s "Hope for Homeowners" program, part of the recently passed housing package. The new FHA program takes effect Oct. 1.

Nationally, there were 1,609 robberies, burglaries and larcenies at banks, thrifts, S&Ls and credit unions during the fourth quarter of 2007, according to the latest FBI report. Georgia and Pennsylvania were third on the list of states for robberies, with 84. California led the list, with 190, and Florida had 85. Most robberies involved non-violent note passers, and the most common day for robberies during the fourth quarter was Fridays, from 3-6 p.m. This new FBI information gives us good reason to again promote the new www.georgiabankrobbery.com web site that features photos of suspected bank robbers and details of the robberies.

GBA University’s new Career Paths for Bankers^TM is the most unique, organized and easy-to-use career development resource available for bankers and banks. One unique feature is free access to the 44 most common bank jobs, including standardized job descriptions categorized by specific job family. Here’s a quick guide to the feature. Read through this example then follow the links to try it out and see how useful and easy it is.

• Click on Career Paths for Bankers^TM from the GBA Home Page

• Click on Position Titles/Job Descriptions – you’ll land on a page that gives you a list of three job families; Retail (11 job descriptions), Lending (11 job descriptions), and Finance and Operations (22 job descriptions)

• To see the Lending Job Family, click the plus sign to see all of the jobs, a position summary and a direct link to all development resources for each.

• Click on a specific job, Chief Credit Officer, for example. You’ll land on a page that gives a fully developed overview of the position, specific responsibilities, accountabilities, competencies, job knowledge, education requirements and links to GBA University development resources for all.
• If you click on any of the developmental resources links, you can then easily navigate to pages with specific information about each GBA University offering, including online registration information.

This quick example demonstrates how comprehensive the Career Paths for Bankers^TM product is. It is a powerful tool for you and your bank. And, when combined with additional premium resources available from GBA Strategic Partner TalentQuest, Career Paths for Bankers^TM becomes an industry-standard tool for evaluating and guiding bankers’ performance and development. With questions, please contact GBA’s Alison Moreau, 404.420.2034; Marybeth Jones, 404.420.2032; or Susie McGehee, 404.420.2010. To find out more about TalentQuest for Financial Services, please contact Jon Naphin at 404.266.9368.

GBA will host its annual IRA Update and Review seminar Wednesday, Sept. 10, at the Hilton Garden Inn in Macon, and Thursday, Sept. 11, at the Holiday Inn Lanier Centre (formerly Best Western Lanier Centre) in Gainesville.  The registration fee is $225, and Patrice Konarik with Sunwest Training Corp. in Gilchrist, Texas, is the instructor.  This intermediate-level workshop is an excellent refresher for the experienced IRA banker as well as a confidence builder for dealing with the more technical and complex areas of IRAs for the less-experienced IRA representative.

Our annual Basic Deposit and Operations Compliance seminar will be Sept. 16 at the Hilton Garden Inn in Macon.  The registration fee is $225 per person and the instructor is Steve Moore, President of Bank Compliance Services, Avondale Estates.  Topics to be covered include:

• BSA + CIP + OFAC

• Electronic Funds Transfers = Reg E

• Regulation CC: Hold Notices

• NOW & MMDA account rules

• Advertising Compliance

• Truth in Savings

• NEW ID Theft Program Requirements

GBA has reserved a block of rooms at a special rate. To reserve your room, please call the hotel directly at 478.741.5527. With questions, please call GBA’s Courtenay Pope at 404.420-2015.

GBA’s first Compliance Conference is scheduled for Sept. 25-26 at the Idle Hour Country Club in Macon. As a bank compliance officer, you play a critical role in your institution's overall risk management strategy. The conference is a cost-effective way for you to get the latest regulatory guidance and compliance best practices.

Sign up now for our Basic Loan Compliance seminar on Sept. 17-18 at the Hilton Garden Inn in Macon.  The registration fee is $325 per person and the instructor is Steve Moore, President of Bank Compliance Services, Avondale Estates.  Desinged for entry-level compliance officers, loan officers and compliance auditors, this one-and-a-half day seminar provides an in-depth look at loan compliance. Topics to be covered include: 

• How to audit lending compliance

• Which regulations are on examiners’ “HOT LIST”

• Truth in Lending + HOEPA

• RESPA

• Flood Insurance

• Fair Credit Reporting Act/FACT Act

• Regulation B + Fair Lending.

GBA has reserved a block of rooms. To reserve your room, please call the hotel directly at 478.741.5527.  With questions, please call GBA’s Courtenay Pope at 404.420-2015.

GBA has reserved a block of rooms at a special rate. To reserve your room, please call the hotel directly at 912.201.2000. Be sure to tell them you are with the Georgia Bankers Association. The GBA conference room block will expire Friday, Sept. 5. Please call GBA’s Susie McGehee at 404.420.2010 with questions. 

Registrations are coming in at a steady pace for GBA’s Bank Counsel Conference scheduled for Oct. 5-7 at The Westin Savannah Harbor Resort and Spa. A panel of experts will be on hand to provide helpful tips on how to help Boards of Directors address the need to seek additional capital and liquidity.  Join Paul Aguggia, Partner, Kilpatrick Stockton, LLP, Washington, D.C.; Peter F. Finnerty, Jr., Principal, Sandler O’Neill & Partners, LP, Atlanta and Reggie O’Sheilds, Vice President and Deputy General Counsel Federal Home Loan Bank of Atlanta as they discuss capital raising and liquidity issues in the current environment. 

Branch locations are some of your most important distribution channels and their smooth, consistent operation is critical to maintaining and attracting business. With this in mind, GBA will host its annual Branch Managers Institute Oct. 22-24 at the Hilton Garden Inn, Macon. The registration fee is $495 for members, and Taye Cairnes, President of Taye Cairnes, Inc., Charlotte, NC, is the instructor.

There are not any AIB online classes scheduled for the weeks of Aug. 25 and Sept 1.  AIB classes will resume the week of Sept. 8.  There is still availability in the following AIB Online classes beginning Aug. 18. 

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

• ABA Online Review Course for the CRCM Exam, 8 weeks, $675

• Consumer Lending, 16 weeks, $385

• Principles of Banking, 16 weeks, $385

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

Please see the AIB Online Course Schedule for a complete listing or call GBA’s Alison Moreau at 404.420.2034 with questions.

AIB classes meet three hours each week for two 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.  Here are the upcoming AIB classroom courses for Fall 2008:

• Economics for Bankers taught by Cassie Parker of McIntosh State Bank, McDonough
  Beginning  Aug. 18, 10 weeks, $195, text $79

• Principles of Banking taught by Michelle Collings of Georgian Bank, Atlanta
  Beginning Sept. 11, 10 weeks, $195, text $65

Just a reminder that GBA will offer the following webinars during the week of Aug. 18:

• Implementing the New FACT Act Final Rules: Part 2 - Developing the Written Program – Aug. 18

• 2008 Update - Safe Deposit, the Fundamentals – Aug. 19

• Understanding Loan Documents, Part 2: Real Estate Documents – Aug. 19

• Check Holds – Aug. 20

• Loans to Insiders – Aug. 21

All webinars are live and allow time for questions and answers. The $250 registration fee gives you access to one web site “seat,” one telephone site license and all handout materials. If you can’t attend the webinar, you may buy the audio CD, handout materials and a password to see the information online. With questions, please call Courtenay Pope at 404.420.2015.

• Laurens County- Tuesday, August 26, from 3:00 to 5:00 p.m. at the McGrath Keen Sr. Conference Center, 1200 Belleview Ave, Dublin, GA 31021.

• Coffee County- Wednesday, August 27, from 9:00 to 11:00 a.m. at the C.E. Weir Center, 224 East Bryan Street, Douglas, GA 31533.

• Chatham County- Wednesday, August 27, from 2:00 p.m. to 4:00 p.m. at the Chatham County Administrative Building, 124 Bull Street, Savannah, GA 31401

Second Quarter 2008 was another volatile quarter for the overall stock market but still was a big improvement from first quarter.  GBA Retirement Services Inc. is pleased with quarterly and year-to-date returns in comparison to their benchmarks and the long-term investment returns of both investment managers, Reliance Trust Company and Atlanta Capital Management. Both firms continue to focus on high-quality stocks and mutual funds to help minimize risks in the portfolios and funds. Please refer to the update for detailed returns. Our online readers also have access to the Second Quarter 2008 investment newsletters produced by Reliance Trust Company and Atlanta Capital Management.

The MST Loan Administration System is a complete program including evaluation, training and the automation of the bank's processes for managing risk in real-time and minimizing loss.  It is a comprehensive program proven to reduce shareholder risk, improve regulatory compliance, save time and employee costs, add efficiency to operations and improve and enhance customer service.  Bank leaders rely on the MST Loan Administration System to provide them and their board real-time information in the documents that secure their loans. They can employ the System to virtually eliminate the issue of missing or expired documents.

Some of the Services Available Through GBA Services, Inc.

Please remember to include the Georgia Bankers Association on the list of recipients for announcements about promotions, new employees and special recognition your bank has received. 

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