May 1, 2009  

Positive Movement on Cram-Down, Extending FDIC Insurance Limits, Borrowing Authority

As it debated its housing bill (S. 896) Thursday, the U.S. Senate voted down a measure to give bankruptcy judges the authority to modify mortgage loans. The mortgage cram-down legislation was opposed by GBA and most major financial services organizations because of its potential to flood bankruptcy courts, reduce the availability of credit and increase the cost of credit for consumers. Our thanks to Georgia Senators Chambliss and Isakson for their support of our position on bankruptcy cram-down. The underlying bill also contains important language to extend the current $250,000 FDIC insurance limit for four years. The other enhancements to FDIC from the Temporary Liquidity Guarantee Program are also included the bill as is an increase of the FDIC’s borrowing authority with the Treasury.

   A number of amendments are still pending on the bill which is expected to receive final Senate action next week. Banking Committee Chairman Christopher Dodd and Ranking Member Richard Shelby are offering the legislation related to the FDIC insurance limits and borrowing authority. The Senate language will also grant the FDIC temporary additional borrowing authority of $500 billion and $6 billion, respectively, for systemic reasons, subject to certain limitations. This new authority is essential as FDIC Chairman Bair has said the agency's proposed one time special FDIC assessment could be reduced substantially if this authority is granted. With questions, contact Joe Brannen, 404.410.2026 or Elizabeth Chandler, 404.420.2027.
Convention Session Spotlight: Finding Opportunities in Shifting Accounting Rules
Coping with shifting accounting rules can be overwhelming and frustrating. Join Donny Luker, Barry Cohen and Ron Mitchell with Mauldin & Jenkins as they help you find ways to cope with these rules and what to anticipate in the future. Attend this breakout session to find opportunities in the thousands of pages of tax changes and how to survive during these turbulent times.  

The 2009 Annual Convention is June 15-16 at the Renaissance Waverly Hotel in Atlanta. With questions, please contact GBA’s Susie McGehee at 404.420.2010.
Be Prepared: Review and Communicate Disaster, Pandemic Contingency Plans

Public health and government officials are taking aggressive steps to ensure preparedness and appropriate response to protect against widespread outbreak of swine flu. If you haven’t done so already, it’s a good time to review your bank’s business continuity plan and make sure employees are prepared. It’s also a good idea to be ready to explain your bank’s readiness to customers. Some notes to consider for your communications:

  • Detail your bank’s health, safety and business continuity efforts.

  • Develop and be ready to provide customer guidance for enhancing the safety of their interactions with employees.

  

  • Every bank in the country has – and is required to have – emergency recovery plans and multiple backup systems. This includes planning for events such as a pandemic.

  • Federal regulators regularly examine each bank to make sure they have detailed – and tested – emergency recovery procedures and business resumption plans.

  • When faced with natural disasters, banks have a proven record of operating smoothly, protecting consumers’ deposits and providing continued access to their funds.

  • Post-9/11 procedures and extensive preparations for Y2K strengthened the banking industry’s ability to deal with a broad range of disruptions.
Bankers Teach Children the Value of Saving, Get PEP Credit
Last week, bankers across the state helped kids take steps toward the path to a positive financial future during National Teach Children to Save Day. Oconee State Bank participated by hosting a Savings Safari Saturday, April 18, 2009. Activities included making safari animal masks, touring the bank vault and drive-through teller line and learning about the importance of saving money. Oconee State Bank employees, Kristi Greer, Education & Development Officer, and Lacey Paul, Customer Service Representative, read the book, “Save, Spend, and Donate” by Nancy Loewen to the children.   Send us news and photos about your bank’s efforts and we’ll share them with members. And, remember that National Teach Children to Save Day qualifies for the Personal Economics Program (PEP). If you or your bankers participated, please take a few short minutes to complete a PEP Report Card. By completing this form, you let the GBA and the ABA Education Foundation know your bank was active in 2008-2009 in providing financial literacy in your community. With questions about PEP, contact GBA’s Jennifer Stevens at 404.420.2024.
 
GBA In the News: Credit Unions, Bank Closures

GBA continues to be a resource to media about banking issues. This week, journalists called on GBA for comment about credit unions recent bank closures in Georgia. In a Morris News Service story outlining how Georgia Credit Unions are faring during the recession, we were successful emphasizing the lack of taxes paid by credit unions as a reason why credit unions may charge lower fees or interest rates on some products. "If they can do that, it's because they pay no state, local or federal taxes," said Joe Brannen, GBA president and CEO.

  Joe also noted that Congress continues to grant tax exemptions to credit unions even though many compete with banks for depositors and that credit unions have an unfair advantage because they have broadened membership in recent years beyond small clubs and employee basis. WSB-TV in Atlanta did a story about recent bank closures in which Joe was also featured, noting that a challenging environment will continue to exist, but that there are some early signs that some economic conditions are improving.
Update on Distressed-Asset Programs
There have been two developments of note in the past week related to the government’s proposed programs for dealing with distressed bank assets. Treasury announced April 29 that more than 100 unique fixed income, real estate, and alternative asset managers and other potential entities have applied to be fund managers for the Legacy Securities portion of the Public Private Investment Program (PPIP).   And, in June, the FDIC's Legacy Loans Program will hold a pilot sale of distressed loans to test the program's mechanics and allow for public observation and input, according to press reports within the past week. You’ll recall that GBA provided comment to the FDIC about the Legacy Loan program, emphasizing that all banks should be allowed to participate and that loans to residential and commercial real estate developers/builders be a priority.
Disaster Aid Available for South Georgians Affected by Late March Flooding
People in 17 Georgia counties are eligible for assistance from the state and the Federal Emergency Management Agency (FEMA) as they recover from storms and flooding that struck Georgia beginning March 26. According to the FEMA announcement, people in Berrien, Brantley, Brooks, Coffee, Colquitt, Decatur, Dougherty, Echols, Lanier, Lowndes, Miller, Mitchell, Pierce, Tift, Ware, Wheeler, and Worth counties who were affected by the storms are now eligible for individual assistance.   Apply online at www.disasterassistance.gov or by phone, 800-621-FEMA (3362) or TTY 800-462-7585 for the hearing or speech-impaired. The toll-free numbers are available seven days a week, 8 a.m. to 6 p.m., until further notice. Help in other languages is also available.
Second-lien Mortgages, Hope for Homeowners added to Mortgage Modification Program

The Obama Administration expanded its Making Home Affordable program this week to include a program for modifying second-lien mortgages as well as a component to encourage more use of the FHA’s Hope for Homeowners program. Under the Second Lien Program, when a Home Affordable Modification is initiated on a first lien, servicers participating in the Second Lien Program will automatically reduce payments on the associated second lien to 1 percent on amortizing loans and to 2 percent on interest-only loans. 

   Alternatively, servicers will have the option to extinguish the second lien in return for a lump sum payment. As for the Hope for Homeowners program, when evaluating borrowers for a Home Affordable Modification, servicers will be required to determine eligibility for a Hope for Homeowners refinancing and servicers and lenders will receive pay-for-success payments as incentives. Full details are available through the GBA web site or directly from www.financialstability.gov.

Tips for Managing Foreclosed Commercial Properties
With commercial real-estate conditions continuing to deteriorate, according to the Federal Reserve's beige book, banks are increasingly weighing questions about managing the foreclosure of office buildings and shopping centers. When such assets enter foreclosure, lenders traditionally have sought to sell the properties and move on. But sticking a for-sale sign on a half-finished asset isn't always the best solution, says to Ted Benning III, president of Atlanta-based general contractor Benning Construction Co., a GBA Associate Member.   For the past year, Benning has worked with lenders to help them secure the value of under-construction assets and stabilize the investment until the market returns. Our online readers will have access to the tip sheet from Benning for more helpful information.
Don’t Miss This Year’s Leadership Conference
There are unprecedented challenges facing those of us in the financial industry today, so you don’t want to miss out on the important and timely information available only at this year’s Leadership Conference. Sessions include an economic update, a report from regulators, a session about how to build and maintain customer relationships during difficult times, and up-to-date information from the legislative front.   The conference also provides excellent networking opportunities for bankers to share ideas. The Leadership Conference is July 12-15 at Amelia Island Plantation, Florida. With questions about the conference or Leadership GBA, call GBA’s Susie McGehee, 404.420.2010, or Jennifer Stevens, 404.420.2024.
RESPA Seminar for only $99! – May 12
Significant changes have been made to the Truth in Lending and RESPA regulations that will greatly affect your institution’s lending compliance program and loan operations. Learn about these changes, prohibitions, new categories of closed-end mortgages and much more in this one-day seminar.   Harriett P. Price and W. Brad Washburn of Steve H. Powell & Co. will lead this seminar. The seminar is Tuesday, May 12, at Idle Hour Country Club in Macon. The registration fee is only $99. Questions? Contact GBA’s Courtenay Pope, 404.420.2015.
Back to Basics: Internal Audit Seminar – May 13
GBA will host its Internal Audit seminar Wednesday, May 13, at Idle Hour Country Club in Macon. The registration fee is $225 for members, and Mike Thomas with Crowe Chizek and Company, LLC is the instructor. Designed for internal auditors, audit committee members, operations officers, compliance officers and internal control personnel, this one-day seminar will cover many of the basic concepts related to community bank internal controls and internal audit techniques. Topics to be discussed include:  

  • Practical Enterprise Risk Management (ERM) and Risk Based Auditing

  • Effectively Communicating Audit Results

  • Primary Internal Controls/Audit Techniques

  • Current Trends in Financial Institution Fraud

With questions, please call GBA’s Courtenay Pope at 404.420.2015.

Problem Loans: Managing Workouts to Optimize Portfolio Value - Only $99!
This seminar covers workout issues and is intended to optimize the resolution of problem loans in the bank’s commercial portfolio. The seminar is designed to provide participants with skills to support early recognition of problems, assessment of client viability, alternative courses of action for the lender and decision support for choosing appropriate actions.   Dr. Ruediger Mueller CTP, President, Turnaround Consulting & Management International, Inc., Suwanee, is the instructor. The seminar is June 2 at Idle Hour Country Club in Macon. Registration is only $99 for members. With questions or to register, contact GBA’s Courtenay Pope at 404.420.2015.
Improve Speed, Accuracy of your Call Reporting: Seminar - June 3
This one-day seminar is designed for CFOs, operations officers and anyone responsible for preparing call reports. Presented by Mauldin & Jenkins, LLC, Atlanta, this seminar offers practical techniques to improve your overall reporting process. Participants will get a, line-by-line review of how to complete each schedule of a Call Report.   Highlights include proven organizational techniques to improve speed and accuracy in your bank’s, call-reporting processes, hands-on experience in call-report preparation, and how to identify common mistakes and problems with call reporting. Please call GBA’s Courtenay Pope at 404.420.2015 with questions or to register.
Webinars: Bank Directors Workshop, Bankruptcy Basics, & Maximizing Telephone Effectiveness
Just a reminder that GBA will offer the following webinars the week of May 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.
June AIB Offerings Include CTFA Exam Prep, Commercial Lending, Consumer Lending
There will not be any instructor-led AIB online classes offered the weeks of May 25, June 1, or June 8. Courses will resume the week of June 15. Open enrollment courses are still available during these three weeks.  Below are the available courses for the last two weeks of June. 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.   

There is still availability in the following AIB Online classes beginning May 18. Please register as soon as possible 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.
Banking Commissioner, Others to Speak at Town Hall Meeting at Kennesaw State University
The Econometric Center at the Coles College of Business and the Small Business Development Center, in partnership with Busch, Slipakoff & Schuh, LLP and Atlanta Business Bank, present "The current banking and housing crises: What is the problem, and how do we fix it?,” a town hall forum featuring representatives from the real estate, banking and home building industries, as well Georgia’s top banking regulator. The town hall meeting is scheduled for Monday, May 11, from 6 to 8 p.m. at the KSU Center, 3333 Busbee Drive, Kennesaw. The banking and housing markets are enmeshed in a vicious cycle, with falling real estate prices and bank asset values intricately linked. As long as the housing sector remains depressed, banks large and small will be constrained in their ability to extend commercial and consumer loans. For the economy to recover, both the banking and housing markets must be restored. This town hall meeting will bring together distinguished panelists from various sectors to offer a detailed picture of the banking and housing crises. The panelists will share the challenges they currently face and discuss possible solutions. A question-and-answer session will follow.   Don Sabbarese, Director of the Econometric Center at the Coles College of Business and economics professor, will moderate the panel. Panelists include: 

  • Rob Braswell, Commissioner, Georgia Department of Banking and Finance;

  • Steve King, President, Greater Atlanta Home Builders Association and Director, Embassy National Bank, Lawrenceville;

  • Michael Knowles, President and Chief Executive Officer, Northwest Bank, Acworth

  • Michael Scott, Realtor and Associate Broker, Metro Brokers.

RSVP by May 7 to 770.423.6450 or ljones@kennesaw.edu. Refreshments will be served.
Provide Your Company with Flood Zone Relief for Challenging Times
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 its 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 has 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 Ed Mclin at 214.441.5903, or GBA’s Levi Crabtree at 404.420.2022.
Attract and Retain Customers with the Deluxe Experience
Deluxe Financial Services works closely with financial institutions to develop unique experiences that attract and retain customers and grow business. As one of the top check producers in North America, Deluxe combines its history of strong brands and financial institution relationships with its insights into small business. More than just a check printer, Deluxe offers programs that can add to your bank’s profitability and maximize customer satisfaction, including:

  • Deluxe Welcome Home Tool Kit (start-to-finish branch package focusing on the first 90 days of the relationship)

  • DeluxeCard Visa Gift Card

  

  • Deluxe Experience Inquiry (improve customer experience and drive new revenue)

  • Deluxe Detect (account screening to combat fraud and risk).

Deluxe Financial Services works closely with financial institutions to develop unique experiences that attract and retain customers and grow business. For more information, please call Deluxe’s Bob Hicks at 317.873.5572 or Brandt Tefft at 800.332.4234 ext. 159340, or GBA’s Levi Crabtree at 404.420.2022.
GBA Retirement Services Welcomes New Member
GBA Retirement Services, Inc. is pleased to welcome to the Trust The Peoples Bank of Talbotton, Henry Persons, CEO. The programs offered through the GBA Master Pension and 401(k) Profit Sharing Trust provide flexibility to meet the needs of any bank or associate member that may be looking at adding or changing its qualified retirement plan.   Advantages of being part of the GBA Master Trust include GBA dedicated staff support as primary resource, coordination of all service providers to ease your administration, reduced fees with high quality service providers and ongoing investment education for employees. Please contact Mandy Richards at 404.420.2025 for more information about how GBA can help design a retirement plan for your bank.
GBA Retirement Plans Announce First Quarter Results
First Quarter 2009 was another volatile time in the stock market with mostly negative returns. However, we have seen some signs of improvements in the stock market in recent weeks, and investors hope we have reached or are close to reaching the “bottom”. For GBA Retirement plan participants, the long-term investment returns of both investment managers, Reliance Trust Company and Atlanta Capital Management, were down as they were for everyone else, but these funds continue to perform comparatively well again major market indexes and other competitive funds and models. For example, the average balanced portfolio of 50% stocks and 50% bonds in the Morningstar universe had a loss of just more than 32% for one-year annualized returns. The S&P 500 index was down 38% for one-year annualized returns. Please refer to the update for detailed returns. Both firms continue to focus on high-quality stocks and mutual funds to help minimize risks in the portfolios and funds. The LifeStylesSM portfolios are a great way to ensure participants are well diversified and to allow participants to make investment decisions in a simplified way.   Please see the First Quarter 2009 investment newsletters produced by Reliance Trust Company and Atlanta Capital Management. Members of the GBA Master Trust have ongoing investment education for their participants through re-enrollment meetings and an enrollment DVD or online video. GBA Retirement Services, Inc. continues to focus on long-term performance and diversification as a primary objective when investing in retirement plans. The third-party 401(k) administrator for the GBA Master Trust, Alliance Benefit Group, continues to do an outstanding job providing daily 401(k) administration, timely turnaround of quarterly statements, ongoing web site features and upgrades, and annual training and education for the member banks in the Trust. Alliance Benefit Group also offers payroll services for Trust members at reduced rates. Please call Mandy Richards at 404.420.2025 for information about how GBA Retirement Services can help design or improve your retirement plan.
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.

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

Bond and D&O Insurance

Holiday Decals

Checking Club Programs

Human Resources Solutions

Community Reinvestment Act

Job Bank

CRM

Marketing & Sales

Discounted Local & Long Distance Program

Non-Qualified Executive Benefits (BOLI)

Federal Flood Certification Corp.

Pledging Pool Program

Financial Industry Pre-Employment Assessments

Record Retention Guide

FinCrime

Senior Housing Crime Prevention Foundation

Financial Marketing Solutions (FMS)

Strunk & Associates, L.P.

Full Service Check Recovery

Thumbprint Signature Program

Georgia Financial Directory

Trust and Investment Services

Georgia Law Code Book

 
   
GBA Services, Inc. is governed by a board composed primarily of community bank presidents who look for the best products and services available.    They do the due diligence for you and you can rely on their efforts. For more information or to order any of these products or services, please call 404.522.1501.
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    
Mableton - WestSide Bank
Ford Thigpen has been named president.		  
 
     

Calendar of Events
Details for May

 

Conferences

 
May 14-15 Rural Development and Lending Conference Savannah
July 12-15 Leadership Conference Amelia Island, FL
     

Conventions/Events

 
June 15-16 Annual Convention Atlanta
Sep. 9 Fall Economic Forum Albany
Sep. 10 Fall Economic Forum Savannah
Sep. 22 Fall Economic Forum Atlanta
     
 

Schools

 
May 3-8 Georgia Banking School Athens
June 7-12 Southern Trust School Mobile, AL
Nov. 1-6 Southern Operations and Technology School Athens
 

 

 
 

Seminars

 
May 4 Bank Directors Workshop, Part 1: What is Good Governance- Webinar
May 5 Basics of Real Estate Loan Documentation Webinar
May 6 Maximizing Telephone Effectiveness Webinar
May 6 2009 IT Examination Hotspots, Pt. 1: IT Examination Hotspots Webinar
May 7 Bankruptcy Basics Webinar
May 7 Opening New Accounts II Webinar
May 8 Proper Collection of Government Monitoring Information Webinar
May 11 Bank Directors Workshop, Part 2: Asset Quality & the Director Webinar
May 12 Consumer Real Estate Lending Regulatory Changes Macon
May 12 Safe Deposit Compliance & Legal - 2009 Update Webinar
May 12 Alternative Payments 101 Webinar
May 12 Are You Accepting Proper Appraisals? New Regulator Attention to the Requirements Webinar
May 13 Internal Audit Macon
May 13 2009 IT Examination Hotspots, Pt. 2: Vendor Management Program - An Enterprise-wide Focus Webinar
May 13 Understanding Consumer Credit Reports & Scores: Incorporating FACT Act Compliance Webinar
May 14 SAR Decision Making & Documentation Webinar
May 19 Change, and More Change: Reg. Z and the Fed’s Rolling Review and Change Process Webinar
May 19 Lending Essentials: Business Entities Webinar
May 20 2009 IT Examination Hotspots, Pt. 3: Deploying Remote Access Securely Webinar
May 21 Communication Power: Leaving the Right Impression Webinar
May 22 Bank Directors Workshop, Part 3: What are the Indicators of Success? Webinar
May 26 2009 IT Examination Hotspots, Pt. 4: Incident Response - Your Framework for Responding to a Security Breach Webinar
May 27 Fraudulent Cashier's Checks Webinar
May 27 Managing a Financial Institution Branch, Part 2 Webinar
May 28 Analyzing Financial Statements Webinar
May 28 2009 Flood Insurance Coverage Issues Webinar
June 2 Problem Loans: Managing Workouts to Optimize Portfolio Value Macon
June 2 Officer Calling: Prospecting, Preparing, & Presentation Webinar
June 2 Compliance 101: An Overview of the Universe of Rules, Regulations and Requirements Webinar
June 2 Safe Deposit Series, Part 1: Policies & Procedures Webinar
June 3 Call Reporting Macon
June 3 Basic Underwriting 1: Terms, Products, The Application Form & Key Disclosures Webinar
June 4 Commercial Loan Defaults: Strategies and Tactics for Lenders Webinar
June 5 Achieving Teller Excellence Webinar
June 9 Legal Liabilities When Check Fraud Occurs Webinar
June 9 Safe Deposit Series, Part 2: Legal Documents & Issues Webinar
June 10 Microsoft Excel 2007: Tips & Tricks Webinar
June 10 Microsoft Word 2007: Tips & Tricks Webinar
June 11 Understanding Letters of Credit Webinar
June 11 CRA: Identifying & Documenting Community Development Activities Webinar
June 16 A Look at Compliance From the Loan Officer's Perspective - The Transaction From Start to Finish Webinar
June 17 Basic Underwriting 2: Income, Debt, Assets, Credit Reports & Scores Webinar
   
  American Institute of Banking (AIB)  
Ongoing AIB Online Courses Online
Ongoing AIB Online - Instructor-led Online
     
  AIB Classroom Courses  
     
Board/Committee Meetings  
May 20 GBA Retirement Services, Inc. Board of Directors Eatonton
May 28 Community Bankers Committee Atlanta
June 4 Compliance Committee Atlanta
June 15 GBA Board of Directors Atlanta
     
  Roundtables/Peer Groups  
June 2 Bank Trainer Peer Group Watkinsville
Aug. 5 President/CEO Roundtable, Group 5 Macon
Aug. 6 President/CEO Roundtable, Group 4 Macon
Aug. 7 President/CEO Roundtable, Group 2 Macon
Aug. 21 President/CEO Roundtable, Group 1 Macon

Oct. 21

Finance/Operations Roundtable, Group A

Macon

Oct. 22

Finance/Operations Roundtable, Group B

Macon

Oct. 23

Finance/Operations Roundtable, Group C

Macon

Nov. 4

President/CEO Roundtable, Group 5

Macon
Nov. 5 President/CEO Roundtable, Group 4 Macon
Nov. 6 President/CEO Roundtable, Group 2 Macon
Nov. 20 President/CEO Roundtable, Group 1 Macon
 
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