FDIC Quarterly Report Validates Tough Economy, Poor Environment for Banking

It was no real surprise to anyone that the FDIC reported a quarterly loss for banks in the fourth quarter of 2008 as part of its regular update on bank performance. We’ll start with the positive perspective because you won’t get it that way from any other source. Banks do continue to lend. Two-thirds of banks increased their loan portfolios in the fourth quarter, more than 97 percent of all banks remain “well capitalized” and total deposits for the year increased by 10.9 percent. We took a look at how performance ended up for the full year in Georgia’s banks. For the year, 53 percent of our banks made a profit, and total assets, deposits and loans and leases were all higher than the previous year. As a whole, equity capital and total risk-based capital remain at good levels. Another relatively positive sign is that while our cost of funding for loans is about 33 basis points higher than the national average for the year, our net interest margin was the same. That means loans are slightly more affordable here compared to the national average. Asset quality remains the 800-pound gorilla,

GBA helps bankers develop long-lasting banking careers through its GBA University conferences, seminars, webinars and AIB courses. We provide a one-stop resource for your complete career planning and development needs. Here are five ways you can tap in to what we offer:

1. Map your career – Use GBA’s Career Paths for Bankers^TM to identify the skills, competencies and development available for 44 specific bank jobs, from CEO to compliance officer to teller.

2. Tap in to Experts – Attend a GBA-U conference or seminar. We bring top economists, regulators, analysts and other industry leaders to you with their insight. Upcoming highlights include a panel of FDIC, OCC and OTS regulators at next week’s Operations and Technology Conference, and Pat Barron, first vice president and COO of the Federal Reserve Bank of Atlanta at our Annual Convention. The conferences and seminars are priced reasonably as a true value for our members.

3. Go back to School – Whether it is the Georgia Banking School or the Branch Manager’s Institute, our GBA-U Schools give you in-depth, specialized training. Also, GBA-U is the Georgia provider for AIB’s variety of in-person and online learning.

4. Put your budget to work – Our webinars offer a budget-conscious approach to provide training to groups. While it is not as personal, for the cost of one site license, you can host a training session at your office for a number of people. Many have flexible schedules and discounts for adding other sites.

Visit our GBA University web site to learn more and our calendar of events for a monthly and daily look at what’s available. See below for more details about specific upcoming events and learning opportunities. See below for other upcoming offerings.

In case you missed it, last week we announced we’ve moved our Annual Convention this year to Atlanta in response to banker feedback and to give more of you the opportunity to attend. Initial reaction from the announcement has been 100 percent positive. Our friends at Mauldin & Jenkins, Barry Cohen and Donny Luker, even mailed us a $2,500 check to help us with the cancellation penalty at the former hotel when they read the news in the e-Bulletin; a most-appreciated gesture.

State Legislative Update: General Assembly More than Halfway Trough Session

The Georgia General Assembly is continuing to meet three days each week and is now more than halfway through their 40-day session.  The first federal stimulus check came this week and helped fill the hole in the Medicaid budget. Even with this assistance, the Legislature still has to still find more than $2 billion in cuts to account for the lost revenue this year.  In news of interest to bankers this week on Capitol Hill:

• The Senate Banking & Financial Institutions Committee reported two bills authored by Chairman Bill Hamrick. One bill amends the Georgia Fair Lending Act to add a new category of subprime loans with added protections. Georgia banks are not covered by the legislation because of Federal preemption. The other bill establishes new fees for failure to file a deed following a foreclosure.

• WE NEED YOUR HELP ON THIS ONE: Last week we told you that Georgia banks could lose a tax credit valued last year at $3.5 million if a bill passes that's part of Gov. Sonny Perdue's initiative “Business Expansion Support” Act (BEST) legislation. The Governor says his BEST package would enhance and update existing tax credit programs for qualified businesses, including both new and existing companies. The "updating" he's talking about actually eliminates retraining tax credits banks and other Georgia companies receive related to software updates. The bill will be heard by a House Ways and Means Subcommittee, but we aren’t getting much feedback from the members on the impact to your institution. Please let us know how much your bank receives in tax credits for this retraining as we will be asked our views on Monday.

• Congratulations to Rep. Ron Stephens for getting his homebuyer tax credit passed out of a Ways and Means Subcommittee. The bill would allow a one-time credit of 1.2 percent of the home's purchase price if purchased in the first six months after the bill is enacted, 0.6 percent for a purchase occurring during the second six months after enactment. Ron chairs the House Economic Development Committee that has been looking for creative ways to get houses selling again.

• The House Judiciary Committee reported out the Uniform Real Property Electronic Recording Act by Rep. Ed Lindsey which enacts standardized rules for dealing with electronic documents and signatures specifically related to property records.

• The House Banks and Banking Committee met this week and assigned two bills we’re following to subcommittee. One bill by Rep. Bobby Franklin requires banks to accept gold and silver for deposits, requires banks to pay withdrawal requests in gold and silver, and requires the state to pay debts with gold and silver. The other bill by Rep. Bob Smith would require checks escrowed for taxes or insurance to be paid jointly to the homeowner and the insurance company or tax office. Several new bills were introduced this week we will be following.  Among those are three by Rep. Billy Mitchell dealing with foreclosure scams and other foreclosure-related issues.

We continue to update our State Government Relations issues page on our website. We trust this short summary we've been publishing this year is sufficient for you to stay abreast of the news from the Capitol and we'd appreciate your feedback. With questions about any of the goings on at the Capitol, contact GBA's Elizabeth Chandler at 404.420.2027 or Joe Brannen at 404.420.2026.

More Clarity in Press Reports about How GA Banks are Using CPP Funds

Our Georgia banks that have received CPP investment continue to do a good job of being accountable for how those investments are being put to use. And, banks that have decided not to participate are also clearly outlining their decisions. The Augusta Chronicle reported Feb. 22 about its area banks and their CPP status. Bill Thompson, Augusta market president for CPP recipient Queensborough National Bank and Trust was quoted, as was Georgia Bank and Trust CEO Dan Blanton,

who is awaiting approval and funding, and Remer Brinson, president, Georgia Carolina Bancshares, which decided not to participate. GBA’s David Oliver also is quoted, explaining how the capital can’t simply be used as a direct pass-through to borrowers.

"more adverse” outlook that would include a 2009 gross domestic product of negative 3.3 percent and a gain of 0.5 percent in 2010. If the tests show that a bank needs more capital to withstand these scenarios the bank will have six months to raise it in the private sector or opt for access to CAP capital. The www.financialstability.gov web site we’ve linked to includes a white paper, term sheet, FAQ and application guidelines.

Edelman Public Relations publishes an annual Trust Barometer that measures attitudes about trust in business, business sectors, government and media. It’s an important barometer because trust ranks just slightly behind quality products and services and employee treatment as the top factors determining a company’s reputation. The 2009 version is out, and it is probably no surprise that trust in all business and financial services is down. Overall, trust in business among U.S. respondents dropped by 20 percentage points to its lowest level in the 10 years of the survey, from 58 percent to 38 percent. Just two years ago, business was more trusted than government and media. Trust in banks among U.S. respondents dropped 33 points to 36%. The most trusted industry sectors are technology

More than 35 bankers attended the first Leadership GBA Peer Group meeting this week in Macon. The organizational meeting gave bank leaders the opportunity to voice their ideas about the type of ongoing programming and content that would be most valuable to them. “The idea of this peer group is to give more bankers from each bank the opportunity to participate in Leadership GBA,” said Leadership GBA President, Kim Brannen, Sea Island Bank, Statesboro. “There’s no commitment to send the same person to each meeting or to the Leadership Conference, so these peer group meetings are

Don't miss the valuable information at this year's Operations and Technology Conference March 4-5 at the Cobb Galleria Centre in Atlanta. This year’s topics include emerging technology trends, safeguards for mobile devices and remote access systems, BSA from a technology perspective, a regulatory

Special Offer - $99 GBA Hot Topic at HR Professionals Institute

Stimulus Package Effect on COBRA Benefits

Special Offer - $99 GBA Hot Topic

How to Manage Storm Water, Other Forms of Environmental Requirements: New Seminar April 2

Learn about stringent environmental requirements affecting your financial institution’s liability by attending GBA’s Foreclosed Property: How to Manage Storm Water and Other Environmental Requirements seminar scheduled for Thursday, April 2, at Womble Carlyle Sandridge & Rice in Atlanta. The registration fee is $99 and the workshop will be led by O’Brien & Gere Engineers, Inc., Womble Carlyle Sandridge & Rice,

GBA will host its Collections and Recovery seminar on Thursday, March 4, at the Idle Hour Country Club in Macon. The registration fee is $225 for members. Gary Moser with Moser, Rose & Cox in Valdosta is the instructor. Designed for personnel responsible for recovering money or collateral on behalf of the bank, this one-day seminar will provide a comprehensive

Interested in staying one step ahead of the bad guys? Learn about email-scams, check fraud, counterfeit checks and much more by attending GBA’s Fraud seminar scheduled for Thursday, March 12, at the Idle Hour Country Club in Macon. The registration fee is $225 and Steve Cross with SunTrust Bank

How to Spot Fishy Tax Returns: Analyzing Personal Financial Statements Seminar

GBA will host its Analyzing Personal Financial Statements seminar Wednesday, March 18, at the Idle Hour Country Club in Macon. The registration fee is $225 for members. Mike Allen, President and CEO of Georgia Trust Bank in Buford is the instructor. Designed for credit analysts, branch managers,

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

• Developing New Business in a Credit Risk Environment – March 2

• Safe Deposit the Fundamentals - 2009 Update – March 3

• Checks & Holds for Tellers, Part 1 – March 4

• Executive Briefing Teleseminar Series: Updates to the Financial Crisis - What’s Ahead? - Part 1 – March 5

• Differentiate Through Service – March 5

• Regulation O - Lending to Insiders – March 6

The following instructor-led AIB online classes begin the week of March 23. 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.) Please register two weeks in advance to secure a seat in the class. 

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

• Economics for Bankers, 16 weeks, $405

• Law & Banking:  Principles, 16 weeks, $455

• Principles of Banking, 16 weeks, $405

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

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

• Commercial Lending, 16 weeks, 405

• Financial Accounting*, 16 weeks, $485

• Principles of Banking Accelerated, 10 weeks, $335 

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

Please join us for GBA’s Loan Documentation for Lenders seminar Wednesday, April 8, at Idle Hour Country Club in Macon. Thompson Kurrie, Jr. and Harrison Coleman, partners with Coleman Talley, LLP in Atlanta are the instructors. Designed for loan officers, loan administrators and credit administrators at every level, this one-day seminar will

First National Bank has a 24’ X 76’ modular bank for sale. This unit includes a drive-in window and night-depository chest and is presently located in Savannah. Price is $60,000.

GBA’s newest Strategic Partner can help your bank provide a value-added service to its customers so they can avoid the hassle and losses from bad checks. Through its Federal Automated Recovery Systems (FARS) program, Infinity Business Group, Inc. (IBG) partners with banks to offer a Full Service Check Recovery Program for all Business Checking Customers. This program is a FREE, value-added service you can offer to your customers while providing fee-income to your bank. Here’s how it works. The FARS program electronically processes check recovery actions from beginning to end. The implementation and maintenance for the Full Service Check Recovery Program is completely FREE for the business. The check writer pays the state-regulated fees to cover the cost of collections, $30 for Georgia, and the FARS program reimburses the full amount on all checks collected. The business customer’s account is credited

daily, upon recovery of funds, the dollar amount of all collected checks. The customer can monitor dishonored check activity through their 24/7 internet reporting system. For the bank, this program creates a new non-interest revenue source of income. As a GBA Strategic Partner, IBG has the full endorsement of the GBA as a quality business partner. IBG also has an existing marketing relationship with Securitas Financial Services, located in Georgia, which is a GBA associate member. For more information, please contact IBG’s Jeff Lyle at 803.358.7107, Securitas Financial Services’ John Holmes at 706.468.8869, or Frank Sutton at 229.686.3598. For GBA Strategic Partner information, please contact Levi Crabtree, Member Relations Assistant, at 404.420.2022. 

During the best of times, lenders seek reliable, easy to use services offered at a fair price. In a turbulent financial climate, these requests quickly turn into critical needs. Federal Flood Certification Corp. calms the Flood Zone Determination process through our cost-effective approach that protects lenders, expedites the closing process, and helps the bottom line. Federal Flood offers:

• Easy access to fully transferable Life of Loan certificates

• Free Letter of Map Amendment and Letter of Map Revision

• Free Home Mortgage Disclosure Act data

• Free rush service

• Customized billing and reporting

• No setup charges or monthly minimums.

Federal Flood maintains an experienced staff and a commitment to the latest in technology, providing readily available expertise and support through a variety of platforms. For more information, please call Federal Flood’s Marshall Jobe at 800.449.3322, ext. 15920, or GBA’s Levi Crabtree at 404.420.2022.

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. 

Gainesville - Peach State Bank
John M. Melvin will join the bank's Community Development Board upon his retirement from the law firm of Stewart, Melvin & Frost, LLP.

Loganville - Essex Bank of Georgia
Donna Wade has joined the bank as Senior Credit Officer, Spencer Strickland as Senior Lending Officer, Jeff Cantrell as Senior Financial Officer, Jackie Marsack as Sales and Marketing Officer, and Michelle Beasley as Operations and Branch Administrative Officer.

Ringgold - Northwest Georgia Bank
Boyd Steele has been promoted to Executive Vice President.

Suwanee - Quantum National Bank
Bryan Cohen has been named President and Chief Executive Officer.

Thomasville - Farmers & Merchants Bank
Caroline Sutton has joined the bank as Assistant Vice President and Christie Heald as Residential Loan Mortgage Processor. Congratulations to Ann Keith who has been named Employee of the Year; to Beth Poston for receiving the "You Make a Difference Award," and to Beth Parramore for receiving the FMB Eagle Award.

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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