Reading the Tea Leaves from 2008 Election Results

With the exception of a likely runoff in Georgia between U.S. Sen. Saxby Chambliss and his challenger Jim Martin on Dec. 2, the 2008 elections are behind us and it is time to assess what the banking industry could face in the coming months. Starting at the top with President-elect Barack Obama, “He’s an unknown on traditional banking issues,” GBA President Joe Brannen said to a reporter this week. “However, he has good skills in choosing battles to get deals done as evidenced by his opposition to including bankruptcy cram down provisions in the Emergency Economic Stabilization Act.” It is expected that in the new Administration’s work on the economy, there will be a focus on the regulatory framework of institutions that created the Wall Street meltdown, but commercial banks can take some comfort that the surviving institutions have fled to our bank regulatory model. In the Congress, there is expected to be a push for legislation that may focus on credit card practices, so-called predatory lending practices and bankruptcy procedures. We will also be spending a great deal of time on the oversight of Emergency Economic Stabilization Act, deposit insurance, housing finance and interchange fees among others.

Capital Purchase Program Update:

             Deadline Extended for Some, Treasury can Change Terms

Private, subchapter S, non-exchange traded, and mutual institutions wishing to participate in the Treasury’s Capital Purchase Program (CPP) have more time to consider whether they want to apply. Treasury clarified last week that the Nov. 14 application deadline applies only to publicly traded institutions. It is our understanding that Treasury will release specific term sheets and application deadlines for other institutions in stages during the coming weeks, beginning with specifics for private C-Corp. institutions, to be followed by subchapter S terms and deadlines, then guidance for mutual institutions. Also, of particular note to you all, the current terms associated with the CPP state it is possible that Treasury could “unilaterally amend” any provision of the agreement.  So, keep in mind that Congressional or regulatory action to specifically dictate what

You now have until Dec. 5 to make a decision whether to opt-out of the FDIC’s program to fully insure noninterest-bearing transaction deposits and to guarantee newly-issued senior unsecured debt of banks, thrifts and certain holding companies. The FDIC is seeking comment on the program, however, and those comments are due Nov. 13. Specifically, the FDIC would like to know your thoughts about whether to charge different premium rates for federal funds and other short-term borrowings

With all the recent talk of a credit freeze and surveys indicating tightening lending standards, there’s good reason for the general public to get the idea that it may be downright impossible to get a loan. That’s bad for your business, we know. Our members tell us that while lending standards have unquestionably tightened and overall demand for loans is down because of economic conditions and the public's desire for conservative lending, borrowers with good credit, manageable debt and solid cash flow, among other things, can qualify for loans. Data doesn’t support the claims of a total lending shutdown. Here’s some information you might find helpful if you get questions about this issue. Each week the Federal Reserve issues a summary of U.S. bank assets and liabilities called the H8 report. An analysis of the Oct. 31 report shows that commercial & industrial loans are 15.3 percent above the same week of 2007. Surprisingly, real-estate lending is 6.3 percent higher than one year ago and up 4.3 percent since the end of June. Even consumer lending continues growth.

2008 BankPAC Campaign Update

Since the last Bulletin, the following companies have contributed to the GBA StatePAC:

• Decatur First Bank, Decatur. Judy Turner, CEO

• Citizens Community Bank, Hahira, Glenn Copeland, CEO

• Community Bank & Trust-West Georgia, LaGrange, Bill Stump, CEO

• The Coastal Bank, Savannah, Tom Wiley, CEO

• Farmers and Merchants Bank, Washington, Jack Harvey, CEO

• Waycross Bank & Trust, Waycross, G. C. Ganas, President

The officers, directors and staff of Citizens Bank & Trust Company, Eastman, Jim Williams, CEO, have contributed to the GBA FedPAC.

Please see the BankPAC Campaign Update for total contributions by group. For more information, please call Elizabeth Chandler at 404.420.2027.

Registrations are coming in at a steady pace for GBA’s annual Legislative Reception slated for Wednesday, Jan. 14, 2009, at the Georgia Aquarium from 6:30-8 pm. We want to see you there, too. Attendance at this event is extremely important to help welcome newly elected and incumbent members of the Legislature. Attendees will also have the opportunity to tour all Aquarium exhibits, including the Titanic Aquatic, from 5-7 p.m. for a special reduced rate. We have reserved a block of rooms at the Embassy Suites Hotel, Centennial Olympic Park, for Jan. 14.

Many networking opportunities will be available during breakout sessions, social and sporting events at GBA’s 2009 Annual Convention scheduled for June 14-17 at The BROADMOOR in Colorado Springs. Golf with us at the Mountain Course, experience the rugged beauty of the Colorado Rockies in four-wheel-drive mode, rappel down a mountain face, feel the adrenaline of the Colorado rivers on a whitewater raft or participate in an authentic cattle drive.  This year’s Chairman’s Farewell Gala will be an unforgettable evening you won’t want to miss. Georgia’s own Trisha Yearwood will join us to perform some of her top-10 country hits such as “She’s in Love With the Boy,” “Walkaway Joe,” and “How Do I Live.”

Trisha is one of the highest-selling female artists in Country music history and most recently a New York Times Bestselling cookbook author. In addition to three Grammy Awards, the Grand Ole Opry member is a three-time Country Music Award winner and a two-time Academy of Country Music Award winner. With questions about the convention, please contact GBA’s Susie McGehee at 404.420.2010.

There’s still time to register for GBA’s Analyzing Personal Financial Statements seminar scheduled for Thursday, Nov. 13, at Idle Hour Country Club in Macon. This course will be led by Mike Allen, president and CEO of Georgia Trust Bank in Buford, and is designed for credit analysts, branch managers, consumer lenders and entry-level commercial lenders.

Do you know your bank’s responsibilities and actions after a loan default? Do you know the obligations between the debtor and creditor after foreclosure and sale of personal property? If not, make plans now to attend GBA’s UCC Update seminar scheduled for Thursday, Nov. 20, at the Hilton Garden Inn in Macon. This seminar is designed for senior lenders, junior lenders, bank attorneys, compliance officers, loan review

The following instructor-led AIB online classes begin the week of Dec 1. 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

• Commercial Lending, 16 weeks, $405

• Consumer Lending, 16 weeks, $405

• Law & Banking:  Applications, 16 weeks, $405

• Managing the Bank’s Investment Portfolio, 6 weeks, $595

• Principles of Banking, 16 weeks, $405

• Today's Teller: Developing Basic Skills* (open enrollment), 8 weeks, $315

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

Just a reminder that GBA will offer the following webinars the week of Nov. 10:

• Summons, Subpoenas, Administrative Requests: Developing Procedures for Processing Government Demands for Customer Information – Nov. 10

• Appraisal Requirements – New Rules and Developments – Nov. 12

• Basic Cash Flow Analysis – Nov. 12

• Analyzing Financial Statements – Nov. 13

• 2008 Truth in Lending Frequently Asked Questions – Nov. 13

• Commercial Loan Documentation, Part I – Nov. 14

GBA Retirement Services, Inc. is pleased to welcome to the Trust Chattahoochee Bank of Georgia, Gainesville, Jody Lail, 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 that may be looking to add or

Third Quarter 2008 Results for GBA Retirement Plans

Third Quarter 2008 was a volatile and disappointing quarter for the stock market and another tough quarter for the economy. GBA Retirement Services, Inc. continues to focus on long-term performance as a primary objective when investing in retirement plans. The long-term investment returns of both investment managers, Reliance Trust Company and Atlanta Capital Management, continue to meet or exceed their benchmarks. 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. Please also see Reliance Trust Company’s Third Quarter 2008 Market Trends newsletter

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.

Did you know that the average projected salary increase for 2009 across all bank job categories is 4.1 percent? Other than the fact that we just told you, you'd know that and a lot more essential information if you get the 2008 GBA Salary Survey. We appreciate everyone’s participation in this year’s survey.

Keeping up with changing employment regulations and human resources best practices can be time consuming. Monitoring changes specific to the banking industry adds even more effort to the task. Take those worries off your plate with Employment Law Compliance Inc., a Strategic Partner of the Georgia Bankers Association and our primary resource for employee handbooks, toolkits, affirmative action plans and other compliance products specifically designed for community banks. Employment Law Compliance focuses on the needs of community banks that

The Mainstreet Technologies Loan Administration System is a complete program including evaluation, training and the automation of a 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 real-time information for the documents that secure their loans. They can employ the system to virtually eliminate missing or expired documents.

Make Money, Save Money With GBA Services, Inc. Offerings

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. 

Congratulations to three GBA members for their recent selection to Georgia Trend’s 2008 Honor Roll of the Best Places to Work in Georgia. The members are featured in the November 2008 issue: Bank of North Georgia, Alpharetta, Kessel Stelling, CEO; The Peoples Bank, Winder, Chris Maddox, CEO; and Morris, Manning & Martin, Atlanta, Dan Brannan, Partner.

We Will Miss...
Our sympathies go to the family and colleagues of William David “Dave” Padgett, who died last week.  Dave, a former GBA Treasurer, retired from SunTrust as senior vice president after 45 years of service. Please click here for more information about Dave’s accomplishments.

Atlanta - Private Bank of Buckhead
Joy C. Manbeck has joined the bank as Senior Vice President and Director of SBA Lending.
 

At a recent staff recognition event, 10 GBA staff members celebrated service anniversaries with the association. Shown in the photo from left to right are GBA President Joe Brannen, (28 years), Marybeth Jones (12 years), Courtenay Pope (2 years), Mandy Richards (11 years), Elizabeth Chandler (12 years), and Dan Thomason (24 years). Not pictured, Angie Barber (9 years).

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