Georgia Bankers Association - The Resource that Empowers

                 December 31, 2009 

Holiday Greetings and Best Wishes for a Happy New Year from the GBA

December can be a busy yet rewarding time of year as our GBA staff witnessed recently through a unique gift swap this month in support of the U.S. Marines Toys for Tots Foundation. We exchanged new toys and other gifts based on holiday memories from our past and donated the gifts to Toys for Tots. We shared some laughs and, ultimately, were glad to help provide a merry Christmas for others. This opportunity allowed us to share a little more about ourselves and to remember the joys that make this season so special. Our thanks to GBA’s Susie McGehee for coordinating with the U.S. Marine Corps to have the young soldier pictured with our staff in the photo at right come by and accept the gifts on behalf of the Corps.

 

2009 – It’s a Wrap
All that could be said about what a year 2009 was for the banking industry has probably already been said, so we won’t rehash it here in our final e-Bulletin for the year. We’ve all learned a lot, seen things most of us never thought we’d see, and put in superhuman efforts to right things for our industry. Looking at all the issues we’re still grappling with, we’ve got plenty left to do. But we wanted to end the year focusing on some of the success stories. We’ll just put them in bullet point format here, but know that every sentence represents countless hours spent by bankers, legislators, regulators, consultants and yes, association staff, to affect the changes. Many are small, baby steps, but they are steps forward. And, no, we’re not taking credit for any of this – many hands touched these issues, and those kinds of collective efforts will be essential going forward to address all the other issues on our to-do list.
  • The net operating loss carry back period was extended from two to five years for most all companies providing much needed capital for many banks.
  • The Isakson $8,000 first-time homebuyer tax credit has been extended to April 30, 2010, and a new $6,500 credit for certain homebuyers with existing homes was added. This will help further reduce the inventory of unsold homes and lots.
  • The FDIC instituted a two-step process for disposing of closed bank assets and loan participations, allowing banks to bid on these assets before other investors. FDIC also started allowing bids for single loans or assets instead of everything being put in larger pools.
 
  • Regulators issued loan workout guidance intended to give banks more flexibility to work with paying commercial real estate customers and avoid requiring additional collateral for or accelerated payment of loans when collateral values have sharply declined.
  • The FDIC has recently favored loss-sharing agreements as the preferred method for resolving bank closures thereby leaving most assets in the private sector. 
  • FASB rulings earlier this year provided needed relief to some banks related to fair-value and mark-to-market accounting as they relate to accounting for the value of their securities-related assets (SFAS 157).
  • Rather than levying an additional special FDIC premium assessment on banks, the FDIC instituted a premium prepayment rule to replenish the Deposit Insurance Fund, a far preferable method of rebuilding the fund instead of more one-time special assessments.
  • And on the legislative front, the industry’s voice was heard in opposition to the most onerous provisions in the regulatory reform bills Congress is considering. Enough noise was created in the House by those agreeing with our position against the bill that we have a glimmer of hope the Senate could further improve the bill. Will it be enough to gain our support? No one knows; stay tuned on this one.

Best wishes from all of us as we go into 2010. We will stay in constant contact with you throughout the year, and trust you will freely share your ideas and opinions with us.
He Ain’t Heavy…He’s My Banker: One Writer’s View
We all get jaded sometimes by the news we see and hear about our industry. You’ve seen the stories; most recently haven’t been all that positive. The stories are mostly accurate and fact driven. We’ll sometimes see charts and graphs proving one statistic or another or making some dire prediction. It’s seldom we see stories about the people behind the headlines. We hope you’ll read the story that was published by NorthFulton.com last week. When we first noticed it, we saw it was about a banker who worked with one of our members that had been closed recently by the regulators. We took a deep breath and continued reading expecting the story to be another tale of woe.   Yes, the facts are there, but this is one of those rare instances where the writer, Brian Patton, a commercial real estate broker, shows his readers that our banks are run by real people, with real stories, making real contributions to their communities. A line toward the end of the article jumped out as we read it: “The local banker is an important part of this system that we simply can’t do without.” Patton gets it. Let’s remember this article when we’re facing those troubles that lie ahead as we all work hard to help the economy recover. It’s good to know others understand and support what bankers all over our state do every day.
Reminder: New RESPA Good Faith, HUD-1 Requirement Compliance Effective Jan. 1

Be ready to comply with new RESPA-related rules beginning next week. Recent amendments to Regulation X rules for the Good Faith Estimate (GFE) and HUD-1 Uniform Settlement Statement (HUD-1), with some exceptions, require mandatory compliance on January 1, 2010.

   FDIC examiners will begin examining for compliance with the amended provisions of Regulation X immediately. See the linked regulatory Financial Institution Letter for details.
Important Revision Made to Reg. Z Consumer Notification Requirements

Consumer notification requirements for certain forms of open-end credit, including home equity lines of credit, have changed recently. According to a Dec. 23 financial institution letter, President Obama recently signed a law narrowing the scope of application of the Credit CARD Act's requirement that creditors mail or deliver periodic statements at least 21 days before the payment due date to credit card accounts only. Previously, this requirement applied to all forms of open-end credit, including home equity lines of credit.
Atlanta Man Indicted in "Short Sale" Fraud Related to Recent Bank Failure
An Atlanta man was indicted earlier this month by a federal grand jury on charges of aggravated identity theft and false statements to the FDIC. The man allegedly obtained several million dollars in loans in his name and the names of his family and friends from Omni National Bank before it was seized by the FDIC earlier this year. After remaining delinquent on loan repayments and facing foreclosure on properties he had financed, the man asked the FDIC to forgive $2.2 million dollars in Omni loan payoffs on the properties and allow him to “short sale” them to new purchasers at reduced amounts.   An investigation revealed the sales contracts and loan commitment letters provided by the man to the FDIC were fraudulent and the “new purchasers” were the victims of alleged identity theft. This is the third case of suspected bank fraud in Georgia this year associated with the seizure of the bank. These cases are being investigated by the Special Agents of a Mortgage Fraud Task Force, comprised of representatives from the FBI and other Investigative offices. The full release is available here.
Britain Plans to Check Out in 2018
It’s rare for us to go "across the pond" for our e-Bulletin news, but we thought the following item was of interest. Great Britain’s board of the Payments Council, made up mainly of executives from Britain’s largest banks, recently decreed that Oct. 31, 2018 would mark the end of the check clearing system in the United Kingdom. Council members pointed to a sharp drop in the use of checks in the past 20 years and a steady rise in the number of people banking electronically as reasons for the decision. Additionally, it costs about one pound to process a check (roughly $1.62 on today's market).   Many British retailers have already stopped accepting checks in favor of more modern forms of payment such as debit cards. The council said checks will be phased out gradually, making sure consumers have access to user-friendly alternatives. It also promised that the concerns of more mature citizens and other groups possibly intimidated by the change will be addressed. A review will take place in 2016 before checks are finally abolished. Checks have all but disappeared in other countries like Sweden and Norway and their use is currently under review in Ireland, South Africa and Australia. No such move is known to be afoot here in the United States, but it is an interesting trend to watch.
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

The officers, directors and staff of the following companies have contributed to the GBA FedPAC:

  • McIntosh State Bank, Jackson, Pete Malone, CEO

  • The Coastal Bank, Savannah, Tom Wiley, CEO

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

 

Limited Rooms Available for Legislative Reception - Come Show the Strength of our Industry
Thanks to the good turnout with early registrations for the 2010 annual GBA Legislative Reception and Economic and Legislative Forum scheduled for Jan. 13, rooms have gone quickly at the Embassy Suites Hotel, Centennial Olympic Park. A few are still available and you may make hotel reservations by calling the hotel directly at 404.223.2300.   We expect the 2010 General Assembly session to be one of the most contentious in a long time. Please help us show the strength of our grassroots network by coming to this event. With questions about the hotel or the reception, contact GBA’s Susie McGehee at 404.420.2010.
Liquidity Panel Discussion on Tap at the Financial Risk Management Conference
Join Karl Nelson, KPN Consulting, Rebecca Berryman, Federal Deposit Insurance Company, and Johanas Paulson, The Brand Banking Company as they discuss how banks are coping with liquidity in a difficult environment. They will provide a sample Contingency Funding Plan as well as discuss the stress scenarios you need to address in the CFP.   The conference is scheduled for January 20-21 at the Cobb Galleria Centre in Atlanta. For more information, contact GBA’s Marybeth Jones at 404.420.2032.
Margaret Morford to Keynote the Annual HR Professionals Institute
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 during GBA's hugely popular HR Professionals Institute. This year's Institute is  March 17-19 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 during 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 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.
Managing Through an Enforcement Action a Hot Topic 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 during our upcoming Financial Risk Management Conference.   The conference is scheduled for Jan. 20-21 at the Cobb Galleria Centre in Atlanta. For more information, contact GBA’s Marybeth Jones at 404.420.2032.
Employee Investigations Seminar – January 19
GBA will host its Employee Investigations seminar scheduled for Tuesday, Jan. 19, at Idle Hour Country Club in Macon. The registration fee for each workshop is $225 per person. Amos Welch, CFE, CPP, Vice President, Regional Manager of Corporate Investigations at BB&T, Atlanta, will lead the workshop. This interactive one-day seminar will help you deal with the obstacles and challenges you face when conducting employee investigations. Some of the topics to be covered include:  

  • “Somebody’s Stealing!!” (NOW WHAT….?)

  • Evidence Collection, Analysis, & Organization. Get it Right!

  • “Playing Detective”: Interview and Interrogation

  • Prosecute?! WHY?!!! (“Just get the money back!”)

  • Workplace Violence.

With questions, contact Courtenay Pope at 404.420.2015.
First Session Free! New Compliance Perspectives: A Monthly Update – Jan. 19
We are excited to be offering a 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 six months or $1,749 for 12 months. With questions, please contact GBA’s Courtenay Pope at 404.420.2015.
HMDA and CRA Workshop – Jan. 27

GBA’s HMDA and CRA Workshop is scheduled for Jan. 27 at Idle Hour Country Club in Macon. Led by Steve Moore with Bank Compliance Services, Avondale Estates, this one-day seminar is designed for compliance officers, loan officers and other bank personnel responsible for HMDA data collection and reporting.

  Topics to be covered include the new changes for 2009, types of loan applications that are HMDA reportable, the regulatory consequences for non-compliance, “community development” loans and much more. With questions or to register, please contact GBA’s Courtenay Pope at 404.420.2015.
BSA/AML Compliance Seminar – Jan. 28
GBA will host its BSA/AML Compliance seminar on Thursday, Jan. 28, at Idle Hour Country Club in Macon. The registration fee for each workshop is $225 per person. Attendees will learn about the Bank Secrecy Act, Anti-Money Laundering, the filing of SARs, OFAC, and much more.   Ed Phillips – SunTrust Bank, AML Group, Steve Cross – SunTrust Bank, Bank Security and Alvin Mitcham – SunTrust Bank, AML Group will be leading this workshop. With questions or to register, please contact GBA’s Courtenay Pope at 404.420.2015.

January 2010 AIB Course Offerings
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.
Register for GBA Webinars Today
GBA will offer the following webinars the week of Jan. 4:   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.
A Few Georgia Financial Directories Left for Sale
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.
How to Get Hacker-proof Data Security While Cutting Costs

NuVox delivers customized managed communications services, information technology, data security and voice solutions designed specifically for bank’s  customers whose data must remain secure. Banks know nothing is more important than earning the trust of their customers. In today’s ever-changing  marketplace, banks must operate with top-of-the-line, hacker-proof technology while reducing the cost of ownership along the way.  NuVox provides hacker-proof technology through leading Multi Protocol Label Switching (MPLS)-based wide area private IP network while reducing the cost of ownership.

  NuVox offers an excellent VoIP service, which allows voice and data to reside on the same T1 line, with voice communication always getting priority. Further, the NuVox network’s dynamic bandwidth capabilities can increase a bank’s connectivity to a single full T-1 (1.544 MBS) to 8 bonded T-1’s. Additionally, banks can secure extra voice lines, in effect, tripling their bandwidth while cutting costs of the overall network. To learn more about how your company can benefit from NuVox and its products, please contact Robert Powell directly at 404.564.1639 or Justin Hill at 404.564.1641.
Keep up with Residential Lending Compliance Solutions
Residential lending regulations change frequently and GBA Strategic Partner LendingXpress has a great tool to help GBA members meet new compliance guidelines. From HVCC compliant valuations to document solutions which meet the new disclosure requirements, LendingXpress helps GBA members stay current and make sound lending decisions. With LendingXpress, there is no software to purchase. Multiple service providers are available to meet all your residential lending needs, and by using the platform you will be supporting the GBA.   Products available from LendingXpress include flood certifications, appraisals, AVM’s, lien position and full ALTA title products, closing services, document services, tax verification and fraud products. LendingXpress is marketed to GBA members by Federal Flood, the endorsed flood certificate provider for the GBA. Please contact Marshall Jobe with Federal Flood at 800.449.3322 or Kymberly Sims with LendingXpress  at 817.788.0546 to schedule a demo today. Be sure to ask about the Loan Guarantee Program for second-position and HELOC portfolios.
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.
We will miss...
Walter W. "Bo" Carroll II. Bo had served as Director of The Park Avenue Bank, Valdosta, and its holding company, PAB Bankshares, Inc., since 1989. Bo died unexpectedly Dec. 20.   Sue Hodges. The wife of Jimmy Hodges, President of BB&T, Statesboro, Sue was GBA's First Lady during Jimmy's term as GBA Chairman in 1994-1995. Sue died Dec. 21 after an extended illness.

Newsmakers

 Jackson - McIntosh State Bank
Kim McMichael has been named President of the bank's Monticello office. Kim will replace Thurman Willis Jr. upon his Dec. 31 retirement.

 Macon - Atlantic Southern Bank
Deborah Matthews has been named Branch Manager in Byron and Matt Cloutier Branch Manager in Lizella.
Milledgeville - Exchange Bank
Arthur T. Gunn has been elected to the Board of Directors of the bank and its holding company, Exchange Bankshares, Inc.

 

McMichael & Thurman

Matthews
Cloutier
 

Calendar of Events
Details for January

 

Conferences

 
Jan. 20-21 Financial Risk Management Conference Atlanta
Feb. 2/11 Southeastern Bank Management & Directors Conference Savannah/
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

 
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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Georgia Bankers Association • 50 Hurt Plaza, Suite 1050, Atlanta, GA 30303 • Phone 404.522.1501 • Fax 404.522.9848 • www.gabankers.com