Georgia Bankers Association - The Resource that Empowers

                 December 4, 2009 

Third-Quarter GBA Georgia Banking Update Published
This week we published our third-quarter update of our ongoing summary of the current conditions for Georgia’s banking industry, including the most current analysis from the FDIC quarterly banking report issued last week. New to this update are some detailed ideas and solutions to strengthen our marketplace, keep more people in their jobs, more companies in business, and prevent more banks from being closed. You may have seen some of these in our recent congressional testimony, but we thought it might be helpful to repeat those suggestions in this document. While progress on many issues is slow, we have had some successes that were directly aided by GBA’s advocacy and grassroots member activity.   We’ve highlighted those progress issues in the paper. Also included in the paper is a list of key regulatory and legislative issues we are dealing with as well as some we expect to have to address in the near future. We hope these updates continue to be useful resources for you, your staff and directors as you continue to serve your customers and communities. We always welcome and encourage feedback and questions, so let us know if you have any thoughts or comments on what we’ve put together. Please contact Joe Brannen, 404.420.2026, or David Oliver, 404.420.2036.
Early Resolution: Stay Active in GBA Government Relations Efforts
Here’s a head start for you on your New Year's resolution list. In fact, it’s a request for you to make an early resolution to stay active in GBA and other grassroots Government Relations efforts as we close out 2009 and start 2010. The issues being worked on in Washington, by Congress, the Regulators and the Administration are far-reaching and could change this industry in ways we’ve not seen for decades. And, we know we’ll have lots of banking issues to stay on top of during the upcoming Georgia General Assembly session. The challenges we face together are unprecedented, but there is no “give-up” in this industry. Of course there will be change, but we must strive to keep it sensible. As we emerge from this process and economic turmoil, traditional banks need to remain viable. A great deal is at stake; your employees, customers, communities and small businesses will all be affected right away.   Here is our commitment to you: we will stay on task, we’ll keep you informed and we’ll try to warn you of the dangerous consequences ahead. What we need, and are asking you to commit to, is to continue to work on these issues with us each week. It might be calling or visiting your Congressman, reaching out to the media or engaging your employees. As always, your voice carries tremendous weight with your elected representatives and in your communities. GBA is joining state bankers associations across the country communicating this important grassroots Government Relations message this week as part of a national effort to encourage continued unity and commitment to advancing the banking industry. With questions, contact Joe Brannen, 404.420.2026, or Elizabeth Chandler, 404.420.2027.
Legislative Reception Deadline Quickly Approaching!
One easy way to stay involved in our Government Relations efforts is to attend our annual Legislative Reception. Just a reminder that the room block for the 2010 annual Legislative Reception and Economic and Legislative Forum scheduled for Jan. 13 will expire on Friday, Dec. 18. GBA has reserved a block of rooms at the Embassy Suites Hotel, Centennial Olympic Park for the night of January 13 at a special rate of $169 a night.   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.
Reform Update: Systemic Risk Bill Gets House Committee Nod
The U.S. House Financial Services Committee approved its systemic risk bill this week. The bill would set up a new "Financial Services Oversight Council" that could break up large financial firms that pose "a grave threat to the United States." The bill also stipulates that the council, made up of representatives from all the bank regulators and the U.S. Treasury, would also be given power to analyze and provide views on accounting standards. The bill would also require financial firms with more than $50 billion in assets to pre-pay assessments for a systemic resolution fund. Banks that pay into the resolution fund, which would be capped at $150 billion, would be given credit for Deposit Insurance Fund premiums. In addition, the bill would direct the FDIC to establish a special fund to help dissolve large, troubled institutions.   The full House is scheduled to begin consideration next week of a massive regulatory reform bill (H.R. 4173) cleverly called the Wall Street Reform and Consumer Protection Act. The legislation combines this bill on systemic risk with other committee-approved bills creating the new Consumer Financial Protection Agency as well as others dealing with derivatives, the Federal Insurance Office and investor protection. While the legislation clearly has broad support and is expected to pass, we will continue to raise concerns about the enormous and unnecessary burdens the legislation will create for our Main Street members who had little to do with the Wall Street meltdown. We’ll continue to follow this and other important regulatory reform efforts as they progress and keep you in the loop. With questions, contact Joe Brannen, 404.420.2026, or Elizabeth Chandler, 404.420.2027.
Georgia Ranks High for ‘Unbanked’ Households

About 12 percent of Georgia households are “unbanked,” meaning they don’t have a bank account according to the “FDIC National Survey of Unbanked and Underbanked Households” survey released this week. An additional 19.4 percent are “underbanked,” meaning they have an account, but still rely on costly, less regulated alternative financial services such as pawn shops, payday lenders and check-cashing services. Both percentages are above the national averages.

  Consumers can be reminded that most banks offer free and low-cost accounts suitable for almost any individual, and the safest place for their money is in a FDIC-insured institution. FDIC has a thorough report about the Georgia results posted online.

Summary of this Week’s Banking News in Statewide Media Outlets
A local appearance by the former head of the FDIC, Bill Isaac, the FDIC’s release last week of its quarterly banking profile and thoughts about the 2010 state banking outlook were news drivers within the past week. Isaac had some harsh and pointed criticism of the regulatory and policy response to the banking crisis, echoing many of the things we’ve been saying in recent months. In relation to the most recent bank performance information for an article in the Atlanta Journal Constitution, we continue to focus on emphasizing that most Georgia banks are well capitalized. And, GBA weighed in for the Atlanta Business Chronicle’s annual community banking focus section with some thoughts about the 2010 banking climate and the employment outlook.   “It will not be a worse year, but there are a lot of things that have to happen for 2010 to be a more traditional year for banks,” said Joe Brannen, GBA President and CEO about the outlook for 2010. Related to why Georgia’s bank employment was so high in recent years and has constricted lately, “You had a housing industry and a banking industry that were set up to meet that [high housing and population growth] demand.” said David Oliver, SVP-Communications and Marketing for the Georgia Bankers Association. “And then that demand stopped almost overnight...Smaller banks are more likely to re-assign employees to other roles. Lenders that once made construction loans might now be assigned to working with loan modifications.” With questions, contact Joe Brannen, 404.420.2026, or David Oliver, 404.420.2036.

Tax Info: IRS, Other Guidance Available about NOL Carryback Extension

Here’s a link to some important IRS guidance you’ll need for managing the extension of the net-operating-loss (NOL) carryback period signed into law Nov. 6. The extension, which was part of an unemployment benefits bill (H.R. 3548) that President Obama signed on Nov. 6, increased the NOL carryback period from two years to five years for either 2008 or 2009 NOLs. In year five, the NOL carryback is limited to 50 percent of a company’s taxable income. There is no limit on the NOL carryback in years one, two, three and four.

  As an additional resource, GBA Associate Member Mauldin & Jenkins has provided a summary letter and decision flow chart to help you think through the effects, benefits and decisions you and your tax experts should keep in mind. Thanks to Ron Mitchell and the Mauldin & Jenkins team for this resource.
Top Georgia SBA Lenders Fund $135 million in Loans to Date in 2009

There’s lots of focus these days on increasing lending to small businesses. The top 10 Georgia lenders have made more than $135 million in SBA 7(a) loans this fiscal year, according to the U.S. Small Business Administration’s list of the state’s top 10 SBA lenders.

   The list was released this week in the SBA’s December newsletter for Georgia. The lists include rankings by numbers of loans and total dollars of loans made to date during fiscal year 2009. For more information, contact SBA’s Jim Hightower, 404.331.0100, ext. 215.
2009 BankPAC Campaign Update
Since our last update, the following companies have contributed to the GBA StatePAC: 

  • Legacy State Bank, Loganville, Pat McGoldrick, CEO

  • Security Exchange Bank, Marietta, David McGinnis, CEO

  • Exchange Bank, Milledgeville, Henry Pope, CEO

  • Bows Real Estate, Inc., Ponte Vedra Beach, FL, David Bows, President 

   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

More than 175 bankers gathered Thursday for the beginning of GBA’s annual Credit Conference. This year’s conference keynote address was delivered by Joe Evans, Chairman and CEO, State Bank and Trust, who outlined the current and future credit environment.

  The conference also includes a regulatory panel with representatives from the four major banking regulators that have oversight and supervisory responsibilities for our members, and an economic update from Gregory Miller, Chief Economist at SunTrust. Look for more coverage in next week’s e-Bulletin.
Agendas Set for March Conferences: Ops and Tech, HR Professionals Institute
The Operations and Technology Conference is March 2-3, 2010, and the HR Professionals Institute is March 17-19, 2010, both at the Cobb Galleria Centre in Atlanta. The Operations and Technology Committee and the HR Committee have put together timely and informative agendas. For more information, 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.
Financial Risk Management Conference – Jan. 20-21

Join Kelly Ensor and Joel Updegraff with SunTrust Robinson Humphrey at our annual Financial Risk Management Conference as they discuss how you can manage your bank's investment portfolio within the context of the balance sheet, and how banks are using their investment portfolio to maneuver through the volatility, uncertainty and increasing regulatory scrutiny. They will also address how your investment portfolio can help you improve liquidity and margins, while simultaneously managing interest-rate risk on the balance sheet.

  In addition, they will discuss hot-button regulatory issues facing the banking industry in light of these unprecedented times, focusing on viable solutions available via the investment portfolio. 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.
How to Fend off Loan Losses: Advanced Loan Documentation Seminar – Dec. 9
Taught by Mike Allen, President and CEO of Georgia Trust Bank in Buford, this one-day course is designed for commercial loan officers, commercial loan personnel, loan assistants and closing specialists. Solid information about preventing loan losses through implementation of proper loan structuring and documentation techniques will be supplied.   Topics to be discussed include guarantees; specific collateral types; commitment letters vs. proposal letters and much more. The GBA’s Advanced Loan Documentation seminar scheduled for Dec. 9 at Idle Hour Country Club in Macon. With questions about the seminar, please contact Courtenay Pope at 404.420.2015.
Boost Repayments, Limit Losses: Collections and Recovery Seminar – Dec. 10
GBA will host its Collections and Recovery seminar Dec. 10, at the Idle Hour Country Club in Macon. Designed for personnel responsible for recovering money or collateral on behalf of the bank, this one-day seminar will provide a comprehensive overview of the fundamental legal principles involved in the collection process.   Topics to be discussed include collateral documents, litigation process, borrowers defenses, judgments, levies, garnishments, and much more. The registration fee is $225 for members. Gary Moser with Moser, Rose & Cox in Valdosta is the instructor. With questions, contact GBA’s Courtenay Pope at 404.420.2015.
Last Chance to sign up for GBA’s Bank Secrecy Act Seminar – Dec. 16
A lot of work goes into complying with the Bank Secrecy Act, and just keeping up with that volume is a challenge for many. 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.   Steve Moore with Bank Compliance Services The registration fee is $225 for members. With questions, please contact GBA’s Courtenay Pope at 404.420.2015.
Don’t wait! Sign up now for Analyzing Commercial Financial Statements – Dec. 17
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. 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.   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.

Give Yourself the Gift of Education this Season 

Here are the instructor-led AIB online classes offered the month of December. 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.

Here is a sneak peak at the upcoming classes for January:

   Please see the AIB Online Course Schedule for a complete listing or contact 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. 7:   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.
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.
Increase Profits with Existing Loan Portfolios, Increase Capital for Clients
In the current banking climate and economy, two realities exist. First, banks are attempting to diversify away from real estate. Second, capital is constrained for small- and mid-cap businesses. fTrans has developed a program that addresses these needs of banks and their business customers. For banks, FTRANS has created a program that enables banks to immediately increase their profit within existing commercial and business loan portfolios, achieve ongoing profit improvement and establish a sustainable program for increased lending to small to medium-sized businesses. This is achieved by providing banks with enhanced portfolio visibility and stability through real-time collateral monitoring as well as reduced collateral risk with credit protection.   For the bank’s clients, fTrans provides a program that supports commercial lending to small and mid-cap businesses. fTrans outsources the bank’s clients’ accounts receivable in order to make this transparent and lendable collateral for the bank. The bank’s clients find significant benefit in more capital availability and a faster cash cycle at cost-effective rates. For more information please contact fTrans’ Jim Lester at 678.268.4039 or GBA’s Levi Crabtree at 404.420.2022.
Take Advantage of Top-Notch Compensation and Benefits Consulting
Bank compensation is a big issue right now. If you’re looking to examine your compensation policies, consider touching base with the Holmes-Shaw Agency, a GBA Strategic Partner.  Holmes Shaw has entered into a partnership with Comprehensive Corporate Strategies (CCS) to provide a full array of employee benefit solutions that have proven highly effective at attracting and retaining the best employees and executives. More importantly, Holmes-Shaw/CCS offers banks attractive financing strategies to reduce the impact of executive benefit programs.   Holmes-Shaw/CCS can provide Executive & Director Benefit Plans, BOLI Financing Strategies & Annual Reviews, BOLI Audit Services, Analysis of Existing Supplemental Benefit Plans and Independent Regulatory Compliance & Administration. Holmes-Shaw/CCS also specializes designing and implementing of executive retention programs. The innovative programs from this GBA Strategic Partner allow banks to develop attractive compensation incentives keyed specifically to long term performance. For more information, please contact Holmes-Shaw/CCS’s Steve Roy at 770.645.2022 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.
GBA Staff Members Lend Helping Hands  for the Holidays
In the spirit of the holiday season, several GBA staff members volunteered for the Empty Stocking Fund (ESF) in Atlanta Dec. 2. Organized by Georgia’s Department of Family and Children Services, the program has been helping the parents of underprivileged children provide gifts for their families since 1927. In our ninth year of participation, GBA staff members volunteer and raise money for the Empty Stocking fund each holiday season. “The volunteer time is always fun and rewarding, and we are grateful for the chance to help provide a joyous holiday season for a lot of families,” said John Runnion, GBA’s Chief Financial Officer and coordinator of our participation with the ESF. Additionally, GBA staff is quickly approaching its yearly goal in the “sponsor a child” donation drive. Throughout the years, the GBA staff has donated about $7,000 to the ESF donation drive.  

David Oliver &
Gino Lassiter
 
John Runnion

Bogan Brannen
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

Atlanta- Citizens Trust Bank
Frederick L. Daniels Sr. has been appointed to a four-year term on the MARTA board.

Atlanta - Wachovia Bank, N.A.
Our sympathy to the family, friends and colleagues of Jane Beasley who, along with her daughter Mandy Beasley-Tamer, died in an automobile accident Thanksgiving Day. Jane was active with GBA and was Wachovia’s Vice President and Director of the Global Financial Institutions Group at the time of her death.

Loganville - Essex Bank of Georgia
Congratulations to George B. Elliott on his upcoming retirement from the Board of Directors of the bank’s holding company, Community Bankers Trust Corporation in Glen Allen, Virginia.

  

Daniels
Beasley
Beasley-Tamer
 

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. 8 Special Rules for Private Education Loans Webinar
Dec. 8 The New Landscape of Residential Lending Compliance Webinar
Dec. 10 Understanding Letters of Credit Webinar
Dec. 10 2009 IRS Information Reporting, Part 2 Webinar
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. 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. 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  
Dec. 11 Security Committee Atlanta
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