The FDIC this week published summary quarterly data for first quarter of this year and it was no surprise that Georgia’s asset-quality continued to decline and our banks continued to set aside high levels of reserves to protect against losses. On the positive side, deposits grew by $7.6 billion since the start of the year and are up $12.1billion in the past 12 months. The combined total risk-based capital ratio for the state was 11.87%, which remains at a reasonable level considering the overall economic conditions. As a group, Georgia banks reported a loss of $1.2 billion for the quarter.

FDIC Announces Special Assessment of Five Basis Points

On May 22, the FDIC Board approved a special assessment to increase the deposit insurance fund. At 5 basis points based on total assets minus tier-1 capital, it is significantly smaller than the 20 basis point deposit assessment originally proposed. “While we are pleased and appreciative that the assessment is much lower than originally proposed, we are disappointed that there wasn’t a more creative solution that would have allowed for replenishment of the fund without an additional assessment at this time when capital is so important to keep in our banks,” said Joe Brannen, GBA president and CEO. Of particular note is that because of the use of total assets minus tier-1 capital as the base for the assessment, banks that are largely core-deposit-funded will pay less than average while banks that rely on non-core-deposit sources of funding – such as Federal Home Loan Bank Advances, repos, foreign deposits and other non-deposit liabilities – may pay more. About two-thirds of the largest 20 banks in the U.S. will pay more using this expanded base, and generally so would bankers' banks and trust institutions. Some mid-size and community banks also would pay more, but the majority would pay less. With questions, contact Joe Brannen, 404.420.2026, or Elizabeth Chandler, 404.420.2027.

Here’s a brief summary of the assessment:  

• The assessment will be 5 basis points based on assets minus tier-1 capital.

• A cap was set of no more than 10 basis points times the institution’s deposit assessment base for the second quarter 2009 risk-based assessment.

• The assessment will be collected Sept. 30, 2009.

• The Board may impose additional special assessments of up to 5 basis points on all insured depository institutions based on each institution’s assets minus Tier 1 capital for the third and fourth quarters of 2009, if the FDIC estimates that the Deposit Insurance Fund (DIF or the fund) reserve ratio will fall to a level that the Board believes would adversely affect public confidence or to a level that will be close to or below zero.

• Additional assessments will be capped at 10 basis points times the institution’s deposit assessment base for the corresponding quarter’s risk-based assessment

• Authority to impose any additional special assessment under this Final Rule ends Jan. 1, 2010.

Incoming GBA Chairman Andy Williams, president, United Community Bank, Blairsville, has appointed Charlie Curry, president and CEO, First State Bank of Randolph County, Cuthbert, and John Helmken, president and CEO, Savannah Bancorp, Inc., as at-large members of the GBA Board. Each will serve a two-year term. This will be Curry’s second stint as a board member, and he’s also served GBA's Agriculture committee as a Chairman and long-time member, a GBA Group Officer and a member of the Nominating Committee.

The U.S. Treasury has now invested in twenty-two Georgia banks through the Capital Purchase Program. United Bank Corporation, Barnesville, received a $14.4 million investment in subordinated debentures and exercised warrants May 22.

As a result of legislation extending the $250,000 FDIC insurance limit for an additional four years, you’ll want to be sure remind your customers about that to help reassure them that their deposits remain well-protected. Guidance from the FDIC says you may post the following statement next to the official FDIC sign, which has not been changed: “The standard insurance amount of $250,000 per depositor is in effect through December 31, 2013."

In a move that will likely provide community banks with an important additional line of communication, the FDIC Board May 29 will establish an agency advisory committee focused on community banking. We don’t have any details as of yet about

We continue to fill requests to speak to civic, non-profit and banker groups to help people understand the current banking environment. This week’s audience was the Georgia Association of Business Brokers, a statewide professional organization and Multiple Listing Service assisting the purchase and sale of businesses and franchises, and the merger and acquisition market. About 75 business brokers, lenders, financial planners, attorneys and other professionals attended the monthly meeting in Atlanta. David Oliver, GBA SVP-Communications and Marketing, spoke to the group about the general state of Georgia’s banks.

Positive Business and Outreach Opportunity for Banks in Six Communities

Please contact the Department of Community Affairs directly if you are interested. Here is a direct link to the DCA web site that has the registration information. Participation is free, and they’ll choose participants on a first-come, first-served basis to fill the four bank slots they have at each expo. Gov. Perdue, DCA Commissioner Mike Beatty, Technical College System of Georgia Commissioner Ron Jackson, Georgia Department of Economic Development Commissioner Ken Stewart and Governor’s Office of Customer Service Commissioner Joe Doyle are partnering to put on this expo. We’ve been told the Governor will attend the Friday events, and DCA Commissioner Beatty will attend all of the sessions at some point.

The GBA-U Edge, our monthly in-depth publication about all of GBA’s valuable education, training and developmental programs is now available. This is our second installment of this new member value.

Lending, Accounting and Principles Highlight June AIB Courses, Register Now to Secure Your Seat

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

• Analyzing Financial Statements*, 16 weeks, $485 (June 22)

• Banking Today, 5 weeks, $315 (June 29)

• Commercial Lending, 16 weeks, $405 (June 22)

• Financial and Business Planning for Bank Marketers, 9 weeks, $315 (June 22)

• General Accounting*. 16 weeks, $515 (June 15

• Introduction to Agricultural Lending, 8 weeks, $375 (June 22)

• Principles of Banking, 16 weeks, $405 (June 15)

• Principles of Banking Accelerated, 10 weeks, $335 (June 22)

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

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

• Officer Calling: Prospecting, Preparing, & Presentation – June 2

• Compliance 101: An Overview of the Universe of Rules, Regulations and Requirements – June 2

• Safe Deposit Series, Part 1: Policies & Procedures – June 2

• Basic Underwriting 1 - Terms, Products, The Application Form & Key Disclosures – June 3

• Achieving Teller Excellence – June 4

• Executive Briefing Teleseminar, Pt. 1: Foreclosing on Collateral: Things Lenders Should Know, Do & Avoid – June 4

• Commercial Loan Defaults: Strategies and Tactics for Lenders – June 4

• Legal Liabilities When Check Fraud Occurs – June 9

• Safe Deposit Series, Part 2: Legal Documents & Issues – June 9

• Microsoft Excel 2007: Tips & Tricks – June 10

• SAR & CTR Form Completion, Pt. 1: Suspicious Activity Reports – June 10

• Understanding Letters of Credit – June 11

• Executive Briefing Teleseminar, Pt. 2: Selling Toxic Assets & Securities to the Government: A Practical Guide – June 11

• CRA: Identifying & Documenting Community Development Activities – June 11

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.

Now, more than ever, it’s time to make sure you hang on to your top talent and pay special attention to developing the entire team. With TalentQuest, building, developing and retaining an ‘all star’ team will position your organization to capitalize on opportunities that will undoubtedly exist when the economy begins to recover. A comprehensive, carefully structured talent management program can provide better visibility into top, mid-level, and low-performing employees, enabling a financial institution to manage them accordingly. In addition, companies can more effectively source high-quality candidates, develop and retain the top talent they already have, and build more reliable succession plans. And, as the most successful organizations know, having the best people isn’t simply an ideal; it is a competitive necessity and one of few true differentiators.

1. $100 off the regular price. Buy now to get the books for only $210 instead of the regular price of $310. (limited time only)
2. The book contains all changes to the Uniform Commercial Code, the rules of the Department of Banking and Finance and laws enacted during the previous Legislative session. 

3. Books come with a searchable CD-Rom.

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. 

Rock Eagle 4-H campers, including the five sponsored by Bank of Upson, United Bank, and Colony Bank

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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