A diverse group of bankers representing the GBA were in Washington, D.C., last week on our annual Washington Legislative Visit.  The group spent a considerable amount of time in briefings with top staff at the OCC, FDIC, Department of Homeland Security, Department of the Treasury, the White House Office of Domestic Policy and with Federal Reserve Vice Chairman Donald Kohn.  Additionally, the group visited Georgia Senators Saxby Chambliss and Johnny Isakson, and the Georgia delegation in the U.S. House of Representatives.  We covered a range of issues in all of our meetings, including the regulatory and legislative environments surrounding the current housing and credit markets, credit union concerns, farm credit

In a letter to the Federal Home Loan Bank of Atlanta (FHLBA), GBA Chairman Jim Williams, CEO of Citizens Bank and Trust in Eastman, asked the bank to reconsider portions of its recent decision to increase the discount on Residential First Mortgage Collateral to 25 percent of unpaid principal balance.  Before this decision, the discount was 20 percent. In part, Jim’s concern on behalf of the membership is focused on the indiscriminate application of the new discount, regardless of the bank’s financial performance.  “The reduction in lendable collateral ratios for banks whose financial condition is deteriorating is understandable.

In an e-mail to CEOs this week, we asked you to join our new Georgia coordinator for grassroots advocacy, former GBA Chairman Dan Blanton, CEO of Georgia Bank & Trust in Augusta, in further improving our influence in Washington.  “We’ve had some real successes this year stopping the credit unions and Farm Credit from expanding further into lines of business previously reserved for tax-paying banks.  That success was in large measure because of the huge volume of letters, e-mails, faxes and calls Georgia bankers made.

Action Requested: Urge Senators Not to Co-Sponsor CURIA

We’re asking bankers to send letters to their senators urging them not to co-sponsor the Credit Union Regulatory Improvements Act (S. 2957) -- better known as CURIA -- introduced by Sen. Joe Lieberman (I-Conn.) on May 1. Like its House companion bill (H.R. 1537), the Senate legislation would loosen credit unions’ capital standards, increase their cap on business lending and expand their authority to add underserved communities to fields of membership.

Georgia’s Department of Banking and Finance is closely monitoring asset quality and brokered deposits as it works with the state’s banks to manage through the current economic environment, according to George Reynolds, the agency’s Senior Deputy Commissioner. Reynolds shared this and other information with members of GBA’s Community Bankers Committee at their recent meeting. Reynolds also made a specific point of emphasizing that despite the current challenges Georgia banks face, as a whole, Georgia remains a good market for banking compared to other parts of the country. During the meeting, the committee also got a preview of GBA’s Career Paths for Bankers, our new career planning tool to be rolled out to the general membership at the convention.

OCC Urges Continued Reserve Building, Stronger Underwriting

Bank regulators continue to emphasize that banks take strong steps to shore up their loan portfolios. Home equity lines are the latest focus from the Comptroller of the Currency, John Dugan. In a speech last week, Dugan noted that “at some banks, the portion of reserves attributable to home equity loans just barely covers 2007 chargeoffs. With losses accelerating, those reserves are simply not going to be adequate, and that’s why our examiners are encouraging more robust portfolio analysis and loss reserve levels.”

Help your customers by reminding them to be on guard for cyber crime. The FBI last week announced indictments of 38 people with links to global organized crime in two cases involving attempts to gain people’s private information through e-mail “pfishing” and text-mail “smishing” schemes. These crimes involve fraudsters sending you an e-mail or text message that looks like it’s from your bank or another trusted institution but is really a way to con you into giving up personal information such as PINs, social security numbers, credit card or other sensitive information.

As mentioned in another article, a group of Georgia bankers met with the Department of Homeland Security while in Washington last week. The bankers were briefed on the Department’s ongoing efforts to coordinate law enforcement and emergency response for local, state and national emergencies. We were reminded that Hurricane season officially begins June 1, with the National Oceanic and Atmospheric Administration predicting a 65 percent probability of an above-average hurricane season. The forecast calls for between six and nine hurricanes, of which as many as five may swell into major storms. Emergency preparedness needs to remain an important priority for the financial services sector. One way to prepare is to apply for access to the Government Emergency Telecommunications Service (GETS).

There are still a few spaces available for GBA’s Call Reporting seminar scheduled for Wednesday, June 4, at the Ramada Plaza in Macon. Designed for CFOs, operations officers and anyone responsible for preparing call reports, this one-day seminar, presented by Mauldin & Jenkins, LLC, Atlanta, will offer practical techniques to improve your overall reporting process.

Just a reminder that the room block for Leadership GBA’s 48^th annual Leadership Conference will expire Wednesday, June 11. The July 13-16 conference will be held at the Ponte Vedra Inn & Club at Ponte Vedra, Florida. If you have not already done so, please reserve your room as soon as possible by calling the hotel directly at 904.285.1111 or 800.234.7842.

End Scheduling Conflicts with In-House Seminars

Has your staff ever been unable to attend a GBA seminar due to scheduling conflicts? Would you like to host a particular GBA seminar tailored specifically to your bank’s needs? GBA can provide many of its seminars to you without you having to leave your bank or hometown. By hosting an in-house seminar, you have the advantage of choosing a date and location that works best for your bank employees.

Just a reminder that GBA will offer the following webinars during the week of June 2:

• What to Do When a Deposit Customer Dies – June 3

• Microsoft PowerPoint 2003/XP: Dazzle Your Audience – June 4

• Achieving Teller Excellence – June 5

• Fraudulent Cashier's Checks – June 5

• Way to Go - Best Practices for the Frontline – June 10

Just a reminder that the following AIB online classes begin the week of June 23. 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 Software.) 

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

• Analyzing Financial Statements*, 16 weeks, $485

• Commercial Lending, 16 weeks, $385

• Financial and Business Planning for Bank Marketers, 9 weeks, $295

• Introduction to Agricultural Lending, 8 weeks, $375

• Principles of Banking Accelerated, 10 weeks, $315

• Team Leader Certificate, 16 weeks, $695

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

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

• Financial Accounting*, 16 weeks, $485

• 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.

The Georgia Bankers Association is proud to recognize the Senior Housing Crime Prevention Foundation as a Strategic Partner.  The Senior Housing Crime Prevention Foundation is a nonprofit organization based in Memphis that offers banks a measurable, no-risk, high-yielding avenue for gaining CRA credit.  By making a loan or an investment with a guaranteed return, banks receive credit for Community Reinvestment Act (CRA) requirements.  The foundation uses the funds to set up Senior Crimestoppers programs for nursing homes and senior HUD housing units in the bank’s direct CRA assessment areas.  Banks also may reposition or recycle existing bonds in their portfolios to capture the same effect, and in doing so create a new annual CRA credit from bonds in the existing portfolios. 

Gladiator Technology, an Atlanta-based company, is a leading provider of IT security services and works with more than 500 banks across the country.  A Strategic Partner with the GBA, Gladiator specializes in working with financial institutions to monitor and protect customer information and computer systems as outlined by FFIEC regulations.  Services include 24x7x365 monitoring and reporting of Internet activity, firewalls, intrusion prevention/detection systems and servers; vulnerability assessments and penetration testing; network and Internet policies; and information security policies.

Some of the Services Available Through GBA Services, Inc.

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