Georgia Bankers Association - The Resource that Empowers

                 November 13, 2009 

FDIC Premium Prepayments: Board Approves Three-Year Prepayment Rule

Georgia banks will be subject to a three-year prepayment of FDIC-insurance assessments due Dec. 30, 2009. The FDIC will begin to draw down an institution’s prepaid assessments on March 30, 2010, representing payment for the regular quarterly risk-based assessment for the fourth quarter of 2009. The FDIC board Nov. 12 unanimously approved the final rule that spells out the details of the prepayment process.  There were no changes to the length of the prepayment period or the formula using a 5 percent annual deposit growth estimate and 3 basis point assessment increases in 2011 and 2012 for calculating prepayments. In a move GBA applauds and supported, the FDIC will repay banks any unused premiums beginning in June 2013, rather than December 2014 as originally proposed. “Maintaining depositor confidence in the FDIC fund is critical. The FDIC has been there every time needed by depositors in its 75-year history, and banks have always paid to provide that confidence. While not perfect, this prepayment approach is preferable to an outright special assessment such as the one required earlier this year," said Joe Brannen, GBA President and CEO.

   "And, because there will be an effect on bank funds available for liquidity and lending, we encourage in the strongest terms that the FDIC give more than simply lip service to considering and granting exceptions to those banks for which the prepayment will put additional stress on their short-term safety and soundness,”  Brannen concluded. Banks that FDIC decides to automatically exempt for safety and soundness purposes will be notified no later than Nov. 23. The rule also defines the process for banks requesting an exemption from the prepayment plan. FDIC says it expects to grant few exceptions. Banks must file a written request for exception with detailed supporting information by e-mail or fax no later than Dec. 1. Any application for exemption will be deemed to be denied unless the FDIC notifies the applying institution by Dec. 15 that either the institution is exempt from the prepaid assessment or the FDIC has postponed determination of the application for exemption until no later than January 14, 2010. A link to the final rule is available on our home page and Federal Issues internet sites. With questions, contact Joe Brannen, 404.420.2026, or Elizabeth Chandler, 404.420.2027.
Dodd Unveils Massive Reform Legislation to Consolidate Fed Regulators
The big news out of the U.S. Congress this week was the 1,136 page financial-services reform legislation proposed by Sen. Chris Dodd (D-Conn.). In summary, it would combine the OCC, OTS and state supervisory functions of the FDIC and Federal Reserve, creating a single new federal bank supervisor. It would also create a Consumer Financial Protection Agency, set up a system to deal with “too-big-to-fail” institutions and bring regulatory oversight to over-the-counter derivatives, hedge funds, mortgage brokers, payday lenders and other unregulated financial providers and products. It is considerably more expansive in consolidating regulatory power than even the reform legislation awaiting debate in the full U.S. House of Representatives (H.R. 3126). “What our financial system needs most right now is stability. This proposed legislation would wipe out a well-known and relatively well-understood regulatory system and simply inject new uncertainty and instability into our financial system that is just now showing promise of recovery,” said GBA Chairman Andy Williams, President of United Community Bank, Blairsville.   “We are greatly concerned about the unprecedented power and authority Sen. Dodd’s approach would grant the proposed single federal supervisory agency and CFPA. It makes little sense to substitute the independence of the Federal Reserve and FDIC with a politicized single federal regulatory agency.” GBA President and CEO Joe Brannen weighed in on the initial proposal to the Atlanta Journal Constitution earlier in the week, noting the concerns our members have about piling on new regulatory burdens to the already heavily-regulated Main Street banks rather than simply closing regulatory loopholes for products, services and companies that were more directly involved with the past year’s financial crisis. And, we found a pretty good editorial opposing the legislation on National Public Radio's web site from the editors of the National Review Online. We’re looking in to all the nooks and crannies of the proposal and will have more detailed thoughts and summaries about it in the coming weeks. As always, please share your thoughts and questions with us about it. With feedback or questions, contact Joe Brannen, 404.420.2026, or Elizabeth Chandler, 404.420.2027.
Overdraft Update: Federal Reserve Adopts Final Overdraft Protection Rule
The Federal Reserve Board Nov. 12 adopted a final rule – effective July 1 – that places new restrictions on bank overdraft protection programs. The rule prohibits banks from charging consumers fees for paying overdrafts on ATM and one-time debit card transactions unless a consumer opts in to the overdraft service for those types of transactions. The rule would require banks to deny insufficient fund transactions of customers who have not opted in. Financial institutions are prohibited under the rule from discriminating against consumers who do not opt in, meaning they must provide these consumers with the same account terms, conditions and features – including pricing – that they provide to consumers who do opt in. In its press release, the board said its own consumer testing shows that most consumers want overdraft services to cover important bills, such as checks they use to pay rent, utilities and telephone bills.   However, the Fed went on to say consumers prefer not to be enrolled in overdraft services for ATM and one-time debit card transactions unless they opt in. In a related item, we remind you that the U.S. House Financial Services Committee could “mark-up” and vote on H.R. 3904, the Overdraft Protection Act of 2009 by Rep. Carolyn Maloney (D-NY), in the next two weeks. As we reported last week, Georgia Reps. Tom Price and David Scott are on the Committee and need to hear from you about how the legislation would affect your bank. With questions, contact Joe Brannen, 404.420.2026, or Elizabeth Chandler, 404.420.2027.
GBA Supports Proposed New FASB Oversight

In a letter to Georgia’s representatives on the U.S. House Financial Services Committee (Tom Price and David Scott), GBA encouraged their support for an accounting amendment that would give the proposed financial systemic oversight council the authority to intervene when the Financial Accounting Standards Board makes decisions that threaten safety and soundness or create systemic risk.

  The amendment, to be offered by Reps. Ed Perlmutter (D-Colo.) and Frank Lucas (R-Okla.) during the committee’s consideration of systemic risk legislation next week, is drawing considerable fire from The American Institute of Certified Public Accountants, accounting firms and others. So, grassroots contacts by bankers are critical. If you live in the districts represented by Price or Scott, you can use ABA’s grassroots advocacy system to send them a letter supporting the Perlmutter-Lucas amendment, too. With questions, contact Joe Brannen, 404.420.2026, or Elizabeth Chandler, 404.420.2027.
New Fed Q&A Available about Reg. Z High Priced Balloon Mortgage Loans

As we reported last week, many of our members have said new changes to Regulation Z that went into effect on Oct. 1 are hampering their ability to provide common and standard loan products to their customers. The Federal Reserve this week issued a list of frequently asked questions (FAQs) about compliance with the repayment-ability rule for higher-priced balloon mortgage loans under Regulation Z. The FAQs clarify that the new rules do not ban higher-priced balloon loans with terms of less than seven years, but there are standards for proof of compliance with ensuring the borrower’s ability to pay. 

   We’d like your feedback. Does this information help your ability to continue making these loans? Also, remember we’ve developed an Issue Brief about the subject to help members explain the issue to their representatives. With feedback or questions, contact Joe Brannen, 404.420.2026, or Elizabeth Chandler, 404.420.2027.
Georgia among Leading States for HAMP Trial Mortgage Modifications
Georgia has the sixth most active trial mortgage modifications, 25,677, by participants in the Home Affordable Modification Program through October, according to the Treasury Department’s update released this week. The top five states are California, Florida, Arizona, Illinois and New York.   Nationally, more than 650,000 loan modifications are underway and more than 900,000 trial modification offers had been extended through October. The report includes state-specific trial modification numbers for the first time.
2009 BankPAC Campaign Update
Since our last update, First Cherokee State Bank, Woodstock, Carl Hames, CEO, has contributed to the GBA StatePAC. Thank you for your support. Please see the BankPAC Update for year to date contributions by group. For more information, please contact Elizabeth Chandler at 404.420.2027.  

The 2009 BankPAC contribution forms can be downloaded here.
Legislative Reception, Economic and Policy Forum Information Mailed
We mailed detailed information about GBA’s annual Legislative Reception, including a registration form, to CEOs, Bank Counsel members and Associate Members earlier this week. This year, attendees will have the opportunity to get even more timely information about the economy and critical issues facing the banking industry today. Before to the reception, we will gather for an economic and policy forum at 3:30 p.m. at the Embassy Suites, Centennial Olympic Park, where Dr. Roger Tutterow, professor of Economics at Mercer University in Atlanta will provide an overview of the current national and state economic environment.   Georgia Banking Commissioner Rob Braswell will also be on hand to discuss current regulatory issues and the banking climate from the Department’s view. Georgia legislators will also bring you up to date about the latest issues the banking industry will be facing in the 2010 legislative session. The reception honoring the members of the General Assembly, the Constitutional Offices, the statewide Judiciary and other dignitaries will be held Wednesday, Jan. 13, 2010, at the Georgia Aquarium from 6 p.m. to 7:30 p.m. With questions, please call GBA’s Susie McGehee at 404.420.2010.
Operations and Technology School Honor Graduates Recognized
The 2009 session of the Southern Operations and Technology School was held Nov. 1-6 at the University of Georgia. Students are required to submit a home-study project between the first and second year, and a passing grade is mandatory for graduation. Each year two students with the highest grades on their home study projects are honored at graduation. This year’s Graduate of Distinction, the student with the highest grade, is Bob Rogers of Wood & Huston Bank in West Plains, MO. This year’s Honor Graduate, the student with the second highest grade, is Jill Zimmerman of Farmers-Merchants Bank & Trust Company in Breaux Bridge, LA.   A special thank you to the members of the school’s administrative committee for their hard work and dedication: Sandy Robinson, School Director, Ameris, Moultrie; John Tyson, Darby Bank & Trust Co., Vidalia; Sheila Ray, Atlanta Bancorporation; Alice Rainey, GACHA, Atlanta, and Jim Stewart, United Community Bank, Blairsville. The school’s two-year curriculum includes classes that expand and strengthen the student’s knowledge of key operations areas, new technologies, current regulatory issues, and management skills.  For more information about the school, please contact GBA’s Marybeth Jones at 404.420.2032.
Hot Topic: New CRE Guidance Session Added to Credit Conference Agenda
Join Jerry Blanchard, Bryan Cave Powell Goldstein and Steve Powell, Steve H. Powell & Company, as they moderate a Q & A session about the new Guidance on Prudent Commercial Real Estate Loan Workouts issued recently by bank regulators. Because of this added session, the conference will now begin at 1 p.m. (registration from 12:30-1 p.m.) and will conclude at 6 p.m. with a reception immediately following.   The Credit Conference is scheduled for December 3-4 at the Cobb Galleria Centre in Atlanta. For more information, please contact GBA’s Marybeth Jones at 404.420.2032.
Reminder: Save on Banking School, Register by Dec. 31
The deadline for the Georgia Banking School early registration discount is Dec. 31. Take advantage of the $125 savings by registering for the Class of 2012 now. The Georgia Banking School, a three-year resident and home study program, meets in 2010 at the University of Georgia May 2-7. Please call GBA’s Marybeth Jones at 404.420.2032 for details and registration information.
Financial Risk Management Conference Set for Jan 20-21
Learn the latest about how to carefully lead your bank’s risk policies by attending GBA’s Financial Risk Management Conference Jan. 20-21, at the Cobb Galleria Centre in Atlanta. Thanks to Tom Redding, Committee Chair and Chief Financial Officer at United Bank in Zebulon, and the other members of the Asset/Liability Management Committee for coordinating an informative agenda.   GBA has a company rate of $149 at the Renaissance Waverly Hotel based on availability, so make your reservations early by calling the hotel directly at 770.953.4500. With questions, please contact GBA’s Marybeth Jones at 404.420.2032.
Last Call for 401(k) Retirement Plan Administration & Investments Seminar – Nov. 17 & 18
The annual GBA Retirement Services 401(k) Administration & Investment Seminar will be held in two sessions again this year to accommodate more bankers from across the state. The sessions will be at the GBA office in Atlanta on Nov. 17 or at Idle Hour Country Club in Macon on Nov. 18. Investment review, 401(k) testing, year-end census submission, administration procedures and legal updates will be covered.   The seminar is also a great opportunity to meet the GBA Retirement Services staff and providers who work so closely with the 401(k) Trust member banks. The programs offered through GBA Retirement Services provide flexibility to meet the needs of any bank or associate member who may be looking to add or change their qualified retirement plan. For more information, contact Mandy Richards at 404.420.2025.

Avoiding Loan Losses a Topic at Advanced Loan Documentation Seminar – Dec. 9
Solid information about preventing loan losses through implementation of proper loan structuring and documentation techniques will be supplied. 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.   Topics to be discussed include guarantees; specific collateral types; commitment letters vs. proposal letters and much more. The GBA’s Advanced Loan Documentation seminar is scheduled for Wednesday, Dec. 9, at Idle Hour Country Club in Macon. Please click here to register. With questions about the seminar, contact Courtenay Pope at 404.420.2015.
Collections and Recovery Seminar Set for Dec. 10
GBA will host its Collections and Recovery seminar Dec. 10 at the Idle Hour Country Club in Macon. This one-day seminar will provide a comprehensive overview of the fundamental legal principles involved in the collection process.   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.
Sign up now for GBA’s Bank Secrecy Act Seminar – Dec. 16
BSA compliance is much more than completing CTRs, SARs, and a $3,000 Log. It includes a risk assessment of the bank’s customers to identify high-risk accounts as well as comprehensive internal audit and independent review procedures. Many banks are struggling with the volume of all this work. Steve Moore with Bank Compliance Services is the instructor.   GBA’s Bank Secrecy Act seminar is Dec. 16 at Idle Hour Country Club in Macon. The registration fee is $225 for members. With questions, please contact GBA’s Courtenay Pope at 404.420.2015.
Analyzing Commercial Financial Statements now a One-Day Seminar – Dec. 17
Designed for entry-level commercial lending officers, credit trainees and analysts, GBA’s Analyzing Commercial Financial Statements seminar 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. The 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.

Register Today for AIB Instructor Led On-Line Course  

Here are the instructor-led AIB online classes offered the week of Dec 7. 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 Nov 30. 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.
Register for GBA Webinars Today – Accounting Essentials, Safe Deposit Compliance, RESPA, More
GBA will offer the following webinars the week of Nov. 16:   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.
Status of Important Banking Cases
Our thanks to the Office of the General Counsel of the American Bankers Association for making available the newest edition of the Status of Important Banking Cases to the members of our Bank Counsel Section.   This monthly report provides up-to-date information about litigation involving banks across the country and is another member benefit for the attorneys in GBA's Bank Counsel Section. With questions about how your bank's attorney can participate in the Section, please call GBA's Kenyetta Parks at 404.420.2035.
Looking for a No-Cost, Value-Added Customer Appreciation Program?
Affinion Group, a Strategic Partner of the Georgia Bankers Association, offers banks the ability to provide $1,000 of complimentary accidental death and dismemberment insurance to their DDA, credit card and mortgage customers through its Customer Appreciation Program. This is a free service to those customers and a great tool to boost retention. Additionally, at the time of the offering, the customer has the option to buy additional amounts of insurance at a low monthly price. More than 4,600 financial institutions have decided to implement the Affinion Customer Appreciation Program.   They range in size from small community banks to money center banks. There is no cost to the bank to offer the program. Aside from the customer retention benefits, this is a program that can boost your profitability. For more information, please contact Affinion’s John Graziano at 412.849.8968 or Misha Bleymaier at 615.764.2492, or GBA’s Levi Crabtree at 404.420.2022. 
Boost Influence, Trust, New Business with E-Mail Marketing Solutions
How often has your bank missed an opportunity with a customer because your bank didn’t have a system in place—an ongoing marketing vehicle, to keep your bank at the top of customers’ minds without too much effort? Financial Marketing Solutions has introduced new E-Mail Marketing Solutions that can easily solve this problem. The agency’s new E-Mail Marketing Solutions simplify the process of using e-mail to market your bank to current customers and solidify your relationship with new ones. These people want to hear from you. In fact, 54 percent of consumers have a more favorable opinion of financial services companies that send them e-mails than those who don’t, according to Epsilon’s 2008 survey of 1,517 consumers and their impact on permission-based e-mail marketing. Your customers trust a message coming from your bank, and your e-mails can significantly influence their opinions and even actions. FMS’ new service will help ensure your e-mail programs reflect your brand message and yield positive feedback. The entire e-mail initiative is controllable, reliable, trackable, consistently scheduled and cost-effective.   Incorporated into your bank’s targeted mix of other media tools, FMS’ new E-Mail Marketing Solutions encompass everything from evaluating your bank’s needs and opportunities to discussing best practices for promoting your bank via e-mail; strategizing brand-specific or product-related e-mail marketing campaigns; developing and designing creative content; and implementing, handling the distribution of and managing your bank’s e-mail promotions automatically via an intuitive management platform. The e-mail management platform is simple to use and customize. Features include an automatic onboarding program that empowers you to initiate consistent, scheduled dialogues with your new customers; simple tactics for segmenting and building your lists; ways to track clicks, view bounces, assess responses and view traffic; and ideas for improving your overall e-mail marketing efforts. For more information about how to remain top-of-mind and build awareness of your bank via FMS’ new E-Mail Marketing Solutions, contact Tim Pannell directly at 615.591.2073.

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.

Newsmakers

Atlanta - Mauldin & Jenkins
Donald L. Luker has been elected managing partner, Greg Morgan has been appointed partner in charge of the Atlanta office, and Douglas A. Moses has been named partner.

Augusta - Georgia Bank & Trust Company
 Congratulations to former bank Director and Georgia State Senator Ed Tarver who has been confirmed as the new U.S. Attorney for the southern district of Georgia by the U.S. Senate.

Macon - American Pride Bank
John Hall has been named President and Chief Executive Officer.

Marietta - Metro Bank
 Congratulations to CEO Ken Barber, the officers, directors and staff on the recent opening of the bank’s new Dallas Highway branch.

Savannah - Darby Bank
Douglas T. Yeates has joined the bank as Senior Vice President and Savannah City President.

  

Luker


Tarver
Morgan


Yeates

Metro Bank Grand Opening Ribbon Cutting

Calendar of Events
Details for November & December

 

Conferences

 
Dec. 3-4 Credit Conference Atlanta
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 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

 
Nov. 16 Accounting Essentials for Bankers Webinar
Nov. 17 Retirement Plan Administration and Investments Seminar Atlanta
Nov. 17 Safe Deposit Compliance & Legal - 2009 Update Webinar
Nov. 17 Are You Accepting Proper Appraisals? New Regulator Attention to the Requirements Webinar
Nov. 17 STOP the Losses, START the Cross-Selling Webinar
Nov. 18 Retirement Plan Administration and Investments Seminar Macon
Nov. 19 What to Do When a Deposit Customer Dies Webinar
Nov. 19 Opening Deposit Accounts III: Fiduciary Accounts: Documenting Ownership & Authority Webinar
Nov. 20 RESPA, Part 3: Understanding & Completing the New HUD-1/1A Webinar
Dec. 1 IRS Reporting Requirements Webinar
Dec. 2 Home Equity Lines of Credit Webinar
Dec. 2 Finding Organic Revenue Growth In 2010, Session 1 Webinar
Dec. 3 Check Holds Webinar
Dec. 3 2009 IRS Information Reporting, Part 1 Webinar
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 Collections and Recoveries Macon
Dec. 10 2009 IRS Information Reporting, Part 2 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
Jan. 19 Bank Security Seminar: Employee Investigations Macon
Jan. 28 Bank Security Seminar: BSA/AML Compliance Macon
Feb. 10 IRA: The Basics Gainesville
Feb. 11 IRA: The Basics Macon
Feb. 11 Finding Organic Revenue Growth In 2010, Session 2 Webinar

Feb. 18

Bank Security Seminar: Effective Information Security Management

Macon
Mar. 11 Bank Security Seminar: Fraud 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  
Nov. 20 President/CEO Roundtable, Group 1 Macon
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. 26 President/CEO Roundtable, Group 2 Macon
 
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