Georgia Bankers Association - The Resource that Empowers

                 December 11, 2009 

Congress Takes Up Massive Regulatory Restructuring Bill

As we went to press with this E-Bulletin, the U.S. House of Representatives was beginning debate on the most significant change in bank regulation in decades, H.R. 4173. The cleverly-named Wall Street Reform and Consumer Protection Act of 2009 is simply a bad deal for traditional banks. GBA has been actively working against the legislation for months. Click here to see a sample letter we sent the House delegation this week. The Obama Administration, House Financial Services Committee chairman Barney Frank, and Senate Banking Committee chairman Chris Dodd have all said this is must-pass legislation and are pulling out all the stops to get something enacted. There are some positive provisions in the final package involving systemic risk and resolution authority for banks deemed “too-big-to-fail,” the ability for the financial oversight council to have a say in accounting rules, and a change in how deposit insurance premiums are assessed saving community banks money. But, on balance this legislation is a bad deal for all traditional banks and the customers they serve. Anything positive in the bill is trumped by the huge negative: the creation of the Consumer Financial Protection Agency (CPFA). This proposed new agency will have broad rulemaking authority over banks of all sizes. In an attempt to address community bank concerns, the committee adopted language retaining primary examination authority for consumer protection compliance to be delegated to existing prudential bank regulatory agencies for institutions under $10 billion in assets.

  However, the CFPA will write all the rules and doesn't even have to consider the business case or operational requirements of offering any consumer product or service. Additionally, CFPA officials may accompany prudential regulators during exams and will have the power to strip bank regulators of their examination authority if the CFPA deems enforcement to be inadequate. This is just wrong-headed. H.R. 4173 also erodes the independence of the Federal Reserve most strikingly by authorizing the GAO, an auditing arm of the Congress, to conduct annual reviews of the Fed’s practices and policies, including the open market deliberations, and dramatically limiting the Fed’s emergency lending authority. There will be a number of amendments offered to the bill including one on bankruptcy cram down. This concept has already passed the House once this year as a standalone bill. Adding this amendment to this bill makes a bad bill even worse. There are a couple of amendments that could improve the bill, but so far we haven't seen anything so positive that it would change our position opposing it. Unless something dramatic occurs, we expect the House will pass the bill this week. The Senate is not expected to make much progress on their version until next year. With questions, contact Joe Brannen, 404.420.2026 or Elizabeth Chandler, 404.420.2027.
High-Rate Deposit Market Guidance Provided by FDIC

The FDIC has defined the process banks under interest rate restrictions should use for determining if they are in a high-rate market and can get relief from having to use the FDIC’s national deposit rate when the rule takes effect Jan. 1, 2010. Institutions subject to the restrictions that believe they are operating in an area where rates paid on deposits are higher than the national rate can request a determination from the FDIC to that effect by sending a letter to the FDIC regional office. The letter should specify the requesting institution's market area and must include all branches of all banks. Credit Union branches can be included in certain circumstances. The guidance outlines other details. A key point is that if you ask for a determination before Dec. 31, you will receive a response by Jan. 30, but the earliest you would have to implement the new national rate is March 1 if you are not granted a determination as being in a high-rate market.

   Also of note, if you are granted a high-rate-market determination, it will be effective for the calendar year granted but the FDIC says determinations will be rescinded by written notice from the FDIC if the institution's market area is no longer a high-rate area. Your bank is not required to do the rate calculations for the local area you specify to the FDIC in requesting the determination. The FDIC will use standardized data—average rates by state, metropolitan statistical area, and micropolitan statistical area—to make the determination. With questions, contact Joe Brannen, 404.420.2026 or Elizabeth Chandler, 404.420.2027.
OCC Senior Deputy Comptroller Reports on Trends in Mortgage Modification

Banks heavily involved in mortgage modifications will be interested in recent Congressional testimony by Douglas W. Roeder, OCC Senior Deputy Comptroller. Roeder stated that the data gathered by the OCC and OTS Mortgage Metrics Program reported that more than 1.8 million loan modifications and payment plans were made between Jan. 1, 2008 and June 30, 2009. In his testimony, Roeder highlighted the performance of loan modifications to date. Lenders continue to increase focus on the combination of modified loan terms that improve the likelihood of payment sustainability. The Mortgage Metrics data released earlier this year shows loan modifications that reduced monthly payments by more than 10 percent experienced half the delinquencies after modification as compared with loan modifications that increased payments or left payments the same. This data also shows that more than three quarters of the modifications implemented during the second quarter of 2009 have reduced the borrowers’ monthly principal and interest payments. Roeder also addressed some of the obstacles facing servicers, focusing on re-defaults and false or unfiled borrower documentation as the primary reason permanent modifications and payment plans remain in the pipeline. Roeder wrote, “Where we find shortcomings, we are requiring bank management to implement plans to remedy those shortcomings.”

  Banks will often offer proprietary modification to many borrowers who do not qualify under the government HAMP guidelines. Two of the largest lenders, JPMorgan Chase and Bank of America reported this week that their combined actions have offered over one million modifications to struggling homeowners since 2008. Additionally, both companies said they are stepping up their efforts to contact borrowers who have either re-defaulted, remain delinquent, or have not provided all the required documentation to make their modifications permanent. Chase has launched a program, pledging to call customers 36 times, reach out by mail 15 times, and make at least two home visits, if necessary, to obtain all the documentation. Bank of America, through its established homeownership retention programs, has concluded over 450,000 non-HAMP loan modifications since January 2008. Roeder concluded that the need for well-planned, sustainable loan modifications will remain in the immediate future. He also pledged that the OCC will continue to actively confront these issues, and promptly obtain and communicate the necessary information to lenders and, when appropriate, to onsite examiners to ensure a suitable resolution.
TARP Extended Until October 2010

Treasury Secretary Timothy Geithner announced that the Troubled Asset Relief Program will be extended to Oct. 3, 2010. The scope of any additional funding will be limited to three areas:

  • Recently launched initiatives to provide capital to small businesses and community banks

  • Preventing foreclosure, and

  • Additional efforts to facilitate small business lending

  GBA remains supportive of efforts to deploy more TARP/CPP capital investments to banks that qualify and choose to apply for such investments. In related news, Bank of America reported that it has completed its payback of $45 billion in TARP funds. You've probably also seen news reports that the TARP oversight committee said in the report they released week that TARP did the job intended to stabilize the credit markets but that significant weaknesses in the financial markets remain.
Lenders Face Potential Liability under Federal WARN Act
Here’s a head’s up about a potential liability issue that may be new to many members. As many of you work to preserve the value of assets you’ve taken over, some of which may be small businesses and companies, your bank may be subject to the federal WARN Act. This Act requires employers to provide a 60-day advanced notification in the event of a facility closing or mass layoff. To ensure compliance with these laws, thorough due diligence and planning is required.   As a helpful resource for members in understanding and complying with the WARN Act, GBA Associate Member Hunton & Williams LLP has provided the linked article: WARNING: Employer Liability Looms for Banks under the WARN Act. For more information, contact Jonathan Hightower of Hunton Williams LLP, 404.888.4236.

Limited Rooms Available for Legislative Reception
Rooms are going quickly at the Embassy Suites Hotel, Centennial Olympic Park for the 2010 annual Legislative Reception and Economic and Legislative Forum scheduled for January 13.   GBA has reserved a block of rooms at this hotel for the night of January 13 at a special rate of $169 per night.  The block will expire on Friday, December 18.     You may make hotel reservations by calling the hotel directly at 404.223.2300. Be sure to tell them you are with the Georgia Bankers Association to receive the special rate. With questions about the hotel or the reception, contact GBA’s Susie McGehee at 404.420.2010.
2009 BankPAC Campaign Update
Since our last update, the following companies have contributed to the GBA StatePAC:

  • Resurgens Bank, Atlanta, Charles DeWitt, CEO

  • SunTrust Bank, Atlanta, Jenner Wood, CEO

   Thanks for your support. Please see the  BankPAC Update for year-to-date contributions by group. For more information, contact Elizabeth Chandler at 404.420.2027.
Credit Conference Draws Large Crowd  


Jim Wallis, Frank Sutton, & Noel Ellis
Over 170 bankers attended the annual Credit Conference last week at the Cobb Galleria Centre in Atlanta. A special thank you to Credit Committee Chair Vernon Tanner of North Georgia Bank, Watkinsville, and the entire committee who put together a timely and informative agenda. Thank you also to our sponsors: Randy Griffin with CSRA Business Lending, Steve Powell with Steve H. Powell & Company, and John Hayes with FTRANS Corp. For more information, contact GBA’s Marybeth Jones at 404.420.2032.  
Margaret Morford to Keynote the Annual HR Professionals Institute
Both nationally and internationally known management consultant, Margaret Morford, The HR Edge, Inc., will address workplace trends and how your bank can prepare now for shifts that are coming in the future at GBA's hugely popular HR Professionals Institute. This year's Institute is  March 17-19, 2010 at the Cobb Galleria Centre in Atlanta.   The adjacent Renaissance Waverly Hotel is offering GBA members a special rate of $149.  The rate is based on availability so make your reservations early by calling the hotel directly at 770.953.4500. GBA's Human Resources Committee, this year led by Allyson J. Summerour of the Peoples Bank in Winder, has done an outstanding job of putting a not-to-be-missed program together. For more information or to register, contact GBA’s Marybeth Jones at 404.420.2032.
Learn about the Latest Technology Trends at the Operations and Technology Conference
Industry expert Jimmy Sawyers, Sawyers & Jacobs, will discuss the latest technology trends in banking while exploring the benefits of each at GBA's upcoming Operations and Technology Conference. Find out how mobile devices and social media will figure into your bank’s technology strategy. Get the information you need to update your bank’s strategic technology plan and prepare for a whole new world of life-changing, and bank-changing, technology.    The Operations and Technology Conference is slated for March 2-3, 2010 at the Cobb Galleria Centre in Atlanta. The adjacent Renaissance Waverly Hotel is offering GBA members a special rate of $149.  The rate is based on availability so make your reservations early by calling the hotel directly at 770.953.4500. For more information or to register, contact GBA’s Marybeth Jones at 404.420.2032.
Save $125 on Banking School, Register by Dec. 31
The deadline for the Georgia Banking School early registration discount is Dec. 31. Save $125 by registering for the Class of 2012 now. The upcoming session of the Georgia Banking School meets at the University of Georgia May 2-7, 2010.   Please call GBA’s Marybeth Jones at 404.420.2032 for details and registration information.
Hot Topic:  Managing Through an Enforcement Action Addressed at Financial Risk Management Conference
Join Jerry Blanchard, Bryan Cave Powell Goldstein, as he addresses the regulatory enforcement action process and how senior management can anticipate and ameliorate the situation at GBA's upcoming Financial Risk Management Conference.   The conference is scheduled for January 20-21, 2010 at the Cobb Galleria Centre in Atlanta. For more information, contact GBA’s Marybeth Jones at 404.420.2032.
Last Chance to Sign up for GBA’s Bank Secrecy Act Seminar – Dec. 16
Learn how to manage the workload and much more at our Bank Secrecy Act seminar is Dec. 16 at Idle Hour Country Club in Macon. A lot of work goes into complying with the Bank Secrecy Act, and just keeping up with that volume is a challenge for many.   Steve Moore with Bank Compliance Services is the instructor. The registration fee is $225 for members. With questions, please contact GBA’s Courtenay Pope at 404.420.2015.
Analyzing Commercial Financial Statements Next Week – Dec. 17
Topics to be discussed in this one-day workshop include cash-flow analysis, financial projections, case studies for practical application of concepts and much more. Emphasis is placed on a practical methodology to help bankers evaluate a company’s creditworthiness. Designed for entry-level commercial lending officers, credit trainees and analysts, this workshop will introduce and use a comprehensive and consistent approach to analyzing commercial financial statements.   Mike Allen, President and CEO of Georgia Trust Bank in Buford, is the instructor. GBA’s Analyzing Commercial Financial Statements seminar is Dec. 17 at Idle Hour Country Club in Macon. The registration fee is $225 for members. With questions or to register, please contact GBA’s Courtenay Pope at 404.420.2015.
First Session Free! New Compliance Perspectives: A Monthly Update – Jan. 19
We are excited to be offering a brand new Webinar Series for 2010. It is called "Compliance Perspectives: A Monthly Update" and will be conducted monthly by Carl Pry. Keeping up with changes and deadlines in the compliance area gets more complex every year. Now, we can assist you with that task.     Each month, Carl will lead a one-hour webinar outlining the hot compliance topics, upcoming deadlines, and new regulations. The series is priced at $159/month with a minimum six-month subscription required. If you sign up for a one-year commitment we will give you a free month. So it would be $954 for 6 months or $1,749 for 12 months. With questions, please contact GBA’s Courtenay Pope at 404.420.2015.

AIB Course Offerings January 2010  
Here are the instructor-led AIB online classes that will be offered in January 2010. These courses are instructor-facilitated with weekly assignments and can be taken from your home or your office. All you need is a computer, printer and Internet access. (Classes with an asterisk * require Microsoft Excel Software.) Please register two weeks in advance to secure a seat in the class.  

Please see the AIB Online Course Schedule for a complete listing or call GBA’s Alison Moreau at 404.420.2034 with questions.
NEW-AIB Small Business Banking Certificate
The AIB Small Business Certificate is primarily for relationship managers who need the skills to build a relationship-centric sales approach, engage customers to better understand their needs and appropriate solutions, handle objections, plan and execute the perfect sales call, and manage relationships post-sale.  This curriculum provides an approach to building trusted relationships with business banking customers-as a means to both retain and grow your current book of business. And to attract new accounts from business customers of other institutions who may feel their needs are not being fully met. It focuses on the process needed to identify sales prospects and close the deal, and not on making the credit decision. The required courses for this certificate are all available online as self-paced courses. Self-paced Internet-delivered courses (ABA eLearning) can typically be completed in two to four hours, although actual time required varies by title. Students can begin at any time, on any day, since all readings, coursework and quizzes are completed online.   Here are the required courses for this certificate:

Please see the AIB eLearning Course List or call GBA’s Alison Moreau at 404.420.2034 with questions.
Register for GBA Webinars Today
GBA will offer the following webinars the week of Dec. 14:   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 GBA’s Courtenay Pope at 404.420.2015.
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 provides up-to-date information about litigation involving banks across the country and is another member benefit for the attorneys in GBA's Bank Counsel Section.   With questions about how your bank's attorney can participate in the Section, please call GBA's Kenyetta Parks at 404.420.2035.
Welcome New GBAIT Participant
The GBA Insurance Trust, Inc. Board of Directors welcomes back to the Trust HeritageBank of the South, Albany, Len Dorminey, CEO. The bank joins more than 290 other Georgia community banks in this unmatched member benefit.    Please call GBA’s Susan Kelley at (404) 420-2017 for more information.
Georgia Financial Directories Going Fast
The Georgia Financial Directory contains complete information about all the banks in the state and is invaluable to banking professionals. Also included are listings of Associate Members, Members of the Bank Counsel Section and GBA's Strategic Partners.   Get yours today because quantities are limited. Complete the easy online order form, or for more information contact Kenyetta Parks, 404.420.2035.
Order Now: 2010 Holiday Decals
The 2010 Holiday Decals have arrived. Those who are on our standing order list should have received your order within the past week. The window decals provide a professional appearance and list the 10 holiday closings recognized by the Federal Reserve Bank in accordance with FDIC rules.   This is an easy way to provide helpful information to your customers. If you are not on our standing order list and would like to receive a set of decals, please call quickly. Quantities are limited. To order, contact Kenyetta Parks at (404) 420-2035.
Manage Risk in Real-Time and Minimize Losses
The Allowance for Loan and Lease Losses (ALLL) is your bank’s most critical quarterly calculation. The amount a bank must set aside in loan loss reserves can impact the bottom line to the extent of being the difference between profit and loss. Add today’s regulatory emphasis on managing loan portfolio risk, and it is easy to understand why your bank’s ALLL estimate is so important. The Mainstreet Technologies’ (MST) Loan Loss Analyzer (ALLL Solution) automates the calculation and documentation for estimating ALLL, providing the bank a reliable, repeatable process for determining ALLL and satisfying regulatory requirements while eliminating the demands and concerns associated with manual processes. MST’s 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 losses.   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. By reducing exceptions and therefore the risk of loans going bad, banks using the MST system also ensure more favorable safety-and-soundness regulatory reviews. Banks employing the MST Loan Administration System have been able to reduce the amounts they budget for loan loss reserves. For more information, please contact MST’s Johnathon Closs at 706.968.0157, or GBA’s Levi Crabtree at 404.420.2022.
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 Levi Crabtree at 404.420.2022.
Find a Job, Post a Job with 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 call Kenyetta Parks at 404.420.2035.
Read All About It -- Send Us Your News

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.

  We want to share your news with your colleagues across the state. Please forward your announcements and photos to GBA's Lydia Thomas.

Newsmakers

 Marietta - Valuation Management Group, LLC
 Congratulations to President Vicky Thompson, officers, and staff on their recent move to new offices at the Governor's Ridge office complex.

Valdosta - Guardian Bank
Olivia Walker has joined the bank as Vice President and Eric Johnson as Commercial and Consumer Lender.

  

Walker
Johnson
 

Calendar of Events
Details for December

 

Conferences

 
Jan. 20-21 Financial Risk Management Conference Atlanta
Mar. 2-3 Operations and Technology Conference Atlanta
Mar. 17-19 HR Professionals Institute Atlanta
Apr. 13-14 Security Conference Atlanta
May 13-14 Rural Development and Lending Conference Savannah
     

Conventions/Events

 

Jan. 13

Legislative Reception & Legislative/Economic Forum

Atlanta
June 13-16 Annual Convention Charleston, SC
 

Schools

 
Feb. 22-24 Southeastern School of Advanced Commercial Lending Nashville, TN
Mar. 7-12 Southeastern School of Consumer Credit Nashville, TN
May 2-7 Georgia Banking School Athens
 

 

 
 

Seminars

 
Dec. 14 Key Elements of the CARD Act of 2009 Webinar
Dec. 16 Bank Secrecy Act Compliance - A NEW ERA Macon
Dec. 17 Best Sales Practices for the Frontline Webinar
Dec. 17 Analyzing Commercial Financial Statements Macon
Dec. 17 2009 Lending Compliance Update Webinar
Dec. 21 S.A.F.E. Act: Registration of Mortgage Loan Originators Webinar
Jan. 7 Required Changes to Regulation CC Holds & Disclosures Webinar
Jan. 12 IRA Update Webinar
Jan. 12 CIP: What is Fact? What is Myth? Webinar
Jan. 13 Motivating & Managing the Teller Line Webinar
Jan. 14 Safe Deposit the Fundamentals - 2010 Update Webinar
Jan. 14 Dealing with Subpoenas, Summonses, Garnishments & Tax Levies Webinar
Jan. 15 Loan Documentation 101, Part 1: The Basics: Obtaining Enforceable Liens Under UCC9 Webinar
Jan. 19 Bank Security Seminar: Employee Investigations Macon
Jan. 19 Compliance Perspectives: A Monthly Update Webinar
Jan. 19 Are Your Marketing & Advertising Efforts in Compliance with New and Existing Standards? Webinar
Jan. 19 Regulation E Revisions: Handling Overdrafts Created by EFTs Webinar
Jan. 21 Robbery Preparedness Webinar
Jan. 27 HMDA + CRA Workshop Macon
Jan. 28 Bank Security Seminar: BSA/AML Compliance Macon
Jan. 29 Loan Documentation 101, Part 2: Lien Perfection: Getting it Right Webinar
Feb. 5 Loan Documentation 101, Part 3: Reviewing Collateral Files Webinar
Feb. 10 IRA: The Basics Gainesville
Feb. 11 IRA: The Basics Macon
Feb. 11 Finding Organic Revenue Growth In 2010, Session 2 Webinar
Feb. 17 Problem Loans: Managing Workouts to Optimize Portfolio Value Macon

Feb. 18

Bank Security Seminar: Effective Information Security Management

Macon
Mar. 11 Bank Security Seminar: Fraud Macon
Mar. 16 Introduction to Consumer Lending Macon
Apr. 13 Basic Deposit and Operations Compliance Macon
Apr. 14-15 Basic Loan Compliance Macon
May 5 Internal Audit Macon
May 6 Advanced Consumer Lending Macon
   
  American Institute of Banking (AIB)  
Ongoing AIB Online Courses Online
Ongoing AIB Online - Instructor-led Online
  AIB Classroom Courses  
     
Board/Committee Meetings  
Jan. 13 GBA Board of Directors Atlanta
     
  Roundtables/Peer Groups  
Mar. 3 Finance/Operations Roundtable, Group C Macon
Mar. 4 Finance/Operations Roundtable, Group A Macon
Mar. 5 Finance/Operations Roundtable, Group B Macon
Mar. 23 President/CEO Roundtable, Group 4 Macon
Mar. 24 President/CEO Roundtable, Group 5 Macon
Mar. 25 President/CEO Roundtable, Group 1 Macon
Mar. 26 President/CEO Roundtable, Group 2 Macon
Aug. 26 President/CEO Roundtable, Group 1 Macon
Dec. 2 President/CEO Roundtable, Group 1 Macon
 
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