October 26, 2018

GBA Proposes Help for Michael-hit Agricultural Producers

Georgia’s number-one industry took a heavy hit from Hurricane Michael and damage estimates are becoming clearer to the agriculture sector: upwards of $3 billion. While about a third of our state had some direct damage, the entire community of bankers statewide is affected. The hardest hit commodities were among those where Georgia consistently ranks among the top producers nationally: pecans, cotton, timber, peanuts, poultry and vegetables. The infrastructure producers use to bring those products to market was also severely affected. The nature and magnitude of the losses are historic and it became obvious that the existing federal disaster relief programs will likely fall short of helping producers not only recover but remain in business in the future. Plus, lenders will need to know what producers will have as resources when lenders are considering 2019 operating lines in just a couple of months. A subcommittee of GBA’s Agriculture Committee quickly put together a plan to slightly revise the federal disaster assistance programs and presented that to a gathering in Perry this week of all the stakeholders and political leaders convened by Agriculture Commissioner Gary Black. Read about the GBA proposal and the results of the meeting here.
Thanks to Bankers Aiding those Affected by Hurricane Michael
As the areas impacted by Hurricane Michael continue to recover, we’ve been overwhelmed with stories of the many Georgia bankers pitching in to donate funds, supplies and their time for families and communities affected. Read about just a few examples here, including efforts by Douglas National Bank, AB&T, First Port City Bank, South Georgia Banking Company, Greater Community Bank, The Heritage Bank, Liberty First Bank, Planters First Bank, First National Bank and Altamaha Bank & Trust. See photos in Community Connections below. Keep sharing your stories with us on our social channels or by email to David Oliver and Katina Prokos. If you have questions about recovery resources, see our comprehensive web page or contact David Oliver, 404.420.2036, or Joe Brannen, 404.420.2026.
Edwards Elected ABA Vice Chairman
Please join us in congratulating Jim Edwards, CEO, United Bank, Griffin, on his election as ABA Vice Chairman this week. With his election, Edwards begins rotating through the national association’s leadership chairs and would become chairman in two years. Edwards is a past GBA Chairman and immediate past chair of the GBA Services, Inc. Board of Directors. "We’re so proud of Jim for all the time and talent he’s contributing at the national level on behalf of Georgia’s banks," said Joe Brannen, GBA president and CEO. "Jim has chaired the ABA’s Community Bankers Council and been on the ABA Board of Directors. When he assumes the Chairmanship in 2020, Jim will be the second ABA chairman from Georgia within a span of five years, and I think that speaks volumes about the national reputation of our state’s banking talent." Dan Blanton, former CEO of Georgia Bank & Trust, was ABA Chairman in 2015-2016. See the full slate of ABA officers in addition to Edwards here.
Delay, Study Urged for CECL Implementation
GBA this week joined bankers associations from around the country in requesting a delay in the implementation of the Current Expected Credit Loss (CECL) standards for banks that is currently set to begin in 2020. The standards will fundamentally change how banks will recognize credit losses in their loan and held-to-maturity debt security portfolios by requiring upfront recognition of credit losses using economic forecasts over the contractual life of the asset while not providing a similar upfront recognition of associated revenues. There’s real concern that the new standards would significantly restrain lending during a recession, increase the volatility of bank capital and raise capital demands on a broad swath of the community bank sector nationwide in advance of the implementation date. The letter to Treasury Secretary Steven Mnuchin, who chairs the Financial Stability Oversight Council, urged the council to delay implementation until a significant qualitative impact study can be completed and analyzed. With questions, contact Elizabeth Chandler, 404.420.2027, or Joe Brannen, 404.420.2026.
Gov. Deal Declares Friday BSA/AML Professionals Day
In a nod to the critical role bankers play in preventing money laundering, terrorist financing and other financial crimes, Gov. Nathan Deal this week signed a proclamation declaring Friday as BSA and AML Professionals Day in Georgia, linking statewide focus with a national day of recognition. The proclamation recognizes how BSA and AML professionals are the first line of defense in identifying criminals involved with a variety of financial and human crimes including elder abuse and human trafficking. GBA Associate Member Banker’s Toolbox was instrumental in encouraging the governor to recognize BSA/AML professionals in this manner. Read the proclamation here.
Conquering the Fear of Flying with Brad Sheffield
Synovus Bank’s Brad Sheffield saw his career really start to take off in the mid-2000s, but at one point, he found himself worrying about a different kind of take-off. Sheffield was awarded a trip to New York City as part of the Georgia Chamber of Commerce Sponsorship Drive, which would be his first airplane ride as well as his first trip to the Big Apple. "I didn’t sleep at all the night before flying due to my fear of flying at the time," he says. "Seeing the best New York had to offer was something I will never forget." An At Large member of the Leadership GBA Executive Committee and member of the Leadership Georgia Class of 2019, Sheffield discusses the long-term friendships he made at the Georgia Banking School, the experience of being mentored by Darron Burnette, his thoughts on why Georgia is a great state for banking and more in this week’s member profile….
Satisfaction and Trust in Banks is High

Declines Posted in Unbanked and Underbanked Households

The state and national percentage of households without a bank relationship in 2017 declined to their lowest levels since FDIC began tracking data in 2009. The FDIC reported this week the percentage of U.S. households that were unbanked in 2017 was 6.5 percent, significantly lower than the high mark of 8.2 percent in 2011. Georgia’s numbers reflected a similar trend, with the number of unbanked households at 10.6 percent, down from the highs of 11.9 percent reported in 2015 and 2009, when surveying began. Unbanked and underbanked rates were higher among lower-income households, less-educated households, younger households, black and Hispanic households, households headed by working-age individuals with a disability and households with incomes that tend to vary from month to month. Access Georgia-specific data here.

Mobile Banking Usage Continues to Climb
Mobile banking usage through 2017 nearly doubled from 2013, with 40.4 percentage of banked households using mobile channels to access their accounts compared to 23.2 percent in 2013. The FDIC’s National Survey of Unbanked and Underbanked Households released this week also tracks mobile banking and branch usage. And while mobile channel usage keeps climbing, personal interaction remains important, with 80.6 percent of banked households visiting a branch in the past year and 35.4 percent visiting 10 or more times. Even for those preferring mobile banking as their primary mode of transaction, 81 percent said they’d visited a branch in the past year and about a fourth of them visited 10 or more times. "The combination of in-bank and mobile technology is the defining difference between traditional banks and the fintech wannabe banks. There’s no app to replace the local banker who many customers want to visit and we cherish those relationships. Banks and bankers continue to evolve to remain relevant regardless of the way our customers choose to interact with us," said GBA Chairman John Hall, president and CEO, American Pride Bank, Macon.
Economy Plugging Along in Fed’s Sixth District
The monthly gauge on the economy from the Federal Reserve is that economic activity in our part of the country continues to expand at a moderate pace. That’s expected to continue through the end of the year, the Fed says in its Beige Book summary of economic conditions collected in September. Auto dealers, tourism, real estate and manufacturing contacts that report in to the Fed all noted increased activity, and the labor market remained tight. Bankers reported healthy conditions overall, with higher earnings and solid credit quality. Loan terms seem to be loosening and deposit competition is intensifying. Ag conditions were mixed, and all reporting was in well before Hurricane Michael, so the next several months’ reports will be more telling related to the ag sector. Read the full details here.
Great Marketing Minds Share Ideas at Peer Group
A big group of Georgia bank marketing pros and other members met this week in Macon for the latest GBA Marketing Peer Group. Kevin Scott and Jack Lacy with ADDO began with a presentation about marketing through the lens of customer experience. Scott shared the importance of considering perspective, proximity and other key factors for connecting with people to improve business interactions. A team from Third Wave Digital covered creating and using videos for marketing, a hot topic in today’s marketing world. Attendees also watched a resource demo from Keith Pagel of BankingMarketingCenter.com. The meeting concluded with an engaging peer exchange where there was a sharing of ideas and resources. Deesha Hagwood, Oconee State Bank, led the peer exchange session and chairs the GBA Marketing Committee. Lawanna Saxon, Signature Bank of Georgia, is vice chair of the committee. The GBA Marketing Committee is looking at dates for the spring Marketing Peer Group, so stay tuned for updates.
Related: GBA Strategic Partner BankMarketingCenter.com had an exciting offer available exclusively to GBA members at the end of the meeting. Click the link here to register for one of next week’s free BMC webinars to find out more or contact GBA’s Bo Brannen, 404.420.2014, for details.

Conference Countdown

Finance Teams: Get on Board for Nov. 7-8 FRM Conference
The 2018 installment of the GBA Financial Risk Management Conference coming up in Atlanta Nov. 7-8 has something for every member of your bank’s finance team. From deposit strategies to the latest on the economy to portfolio management and payments. Come get the latest news and information you need to manage risk to ensure profitability and network with your peers. Plus, for our certified professionals, GBA has obtained certification of the conference as a recognized provider of continuing professional education programs by NASBA. Here's how the program looks. Get more details and access registration here.
Credit Conference Dec. 13-14: Extra Focus on Leadership
Before getting down to the nitty-gritty details of bank credit management, those who come to this year’s credit conference will get a good dose of inspirational leadership lessons during the conference's opening session from Jeff Foley, Brigadier General, U.S. Army (Retired) and CEO/President, Loral Mountain Solutions, LLC. Foley is an author, leadership coach and speaker. He is certified as a Marshall Goldsmith Stakeholder Centered Executive Coach (TM). He is a partner with the Ken Blanchard Companies, the Wiley Corporation (5 Behaviors of an Effective Team (TM)), and with Jim Horan’s One-Page Business Plan (TM) company. He co-authored the Penguin-published book and Tools for Leaders (4th Edition) a down-to-earth practical guide for leaders that attendees will receive at the conference. He is also a contributing author to the book Servant Leadership in Action. Need more good reasons to attend? See all the details, access a program agenda and register here…
Contact GBA’s Alison Moreau with questions about either conference, 404.420.2034.
Senior Lending Officer Roundtables Wrap-up
Last week, all four GBA Senior Lending Officer Roundtables met in Macon and Atlanta. These sessions kicked off our sixth year of the roundtables. Karl Nelson and Eric Nelson of KPN Consulting, a dynamic father and son duo, facilitated these roundtables where attendees learned, networked and shared ideas. Some of the topics they discussed in depth included: lending talent and training, loan pricing, CECL and regulatory updates These roundtables have blossomed into an essential part of GBA's professional development program for lending officers in Georgia. The next series of Senior Lending Officer Roundtables will be Feb. 25-28, 2019. If you are interested in joining a roundtable, please contact Jenna Lynn Warner, 404.420.2035.
2018 BankPAC Update - Tournament Raises More than $11K
Our thanks to everyone who participated, sponsored or volunteered for the 2018 BankPAC Golf Classic! The tournament, sponsored by Leadership GBA, raised over $11,000 for the GBA StatePAC. "We owe that executive committee led by Keith Anthony, Planters and Citizens Bank, Forsyth, an enormous thank you for all of their hard work," said Tom Wiley, CEO of State Bank & Trust Company and Chairman of the BankPAC Board of Directors. If you have yet to participate in this important effort, here are our easy-to-use forms for use in making contributions to the GBA StatePAC and GBA FedPAC. Also, see how your GBA Group is doing meeting its goals. Thanks for the banks that contributed to the GBA StatePAC and FedPAC this week. With questions, please call GBA’s Elizabeth Chandler at 404.420.2027.

Basics of Asset-Based Lending Seminar, Nov. 14

On Wednesday, Nov. 14, GBA’s Basics of Asset-Based Lending seminar will provide participants with a basic understanding of asset-based lending (ABL) concepts, procedures, and documentation. Participants, through a group case study environment, will learn from Mike Allen, EVP, Senior Credit Officer at State Bank & Trust Company in Atlanta, the basic balance sheet fundamentals, sizing the loan, the importance of A/R and A/P agings, inventory considerations, basic documentation as well as lien perfection and monitoring. To register, click here. Registration is $225 per person through Nov. 7. With questions, please contact GBA's Jenna Lynn Warner, 404.420.2035.
Micciche and Kitchen

Free Cyber Insurance Webinar Oct. 29 Presented by ABA Insurance Services

What Is Your Bank Doing to Manage Cyber Risk?

What are the latest and common online, email or social media scams out there that your employees or customers may fall for, and what can you and they do to avoid becoming another victim? Join Lisa Micciche of GBA Strategic Partner ABA Insurance Services (ABAIS) and David Kitchen of BakerHostetler on Monday, Oct. 29, from 2-3 p.m. for a discussion about current cyber-related risks, including examples of cyber fraud, the implications and costs to banks, and best practices to prevent loss to your bank and your customers. With questions, please contact ABAIS’ Catherine Kopera at 800.274.5222. Click here to register for the Oct. 29 webinar.

Generate Higher Revenues and Improve Your Account-Holder Experience with the Consumer Check Program from Deluxe

What’s one of the best ways to anchor, engage and protect your customers’ transactions while you earn more revenue? The consumer check program from GBA Strategic Partner Deluxe gives customers access to a variety of popular check designs, fraud protection and a wide range of product enhancements. Read about some of the other features your customer will love here. Click here for a quick video from Deluxe highlighting the continuing value of checks in banking relationships today. For more information about Deluxe’s check program, please contact Kevin Jefferson, 336.676.0321.

School Sessions…Plan Ahead

Don’t wait too long to get your best and brightest enrolled in our signature banking school programs this spring. Details below:
GBA Advanced Compliance School
The GBA Advanced Compliance School is May 5-10, 2019, at the University of Georgia in Athens. This is a one-year program for experienced compliance officers. Applicants must be employed as an officer or key staff member of a bank or be an associate member (vendor) of a bank, have at least two years of compliance management experience or prior graduation from GBA Basic Compliance School and be recommended by the bank’s CEO or senior management.
Georgia Banking School
The Georgia Banking School is a three-year program that provides an immersion into the full scope of bank management responsibilities. It culminates in the third year with a bank simulation program in which student teams compete to run the most successful mock bank. The curriculum is beneficial for bankers with backgrounds from throughout the bank including lending, credit underwriting, sales and service, retail management, human resources and operations or information technology. The 2019 session runs May 5-10, 2019, at the University of Georgia in Athens. The early tuition price is $2,020 through Feb. 8, 2019.
Click here to see tuition information for both schools. Contact GBA’s Alison Moreau with questions, 404.420.2034.
Fill a Job, Find a Job with the GBA Job Bank
The GBA Job Bank is among the most popular and valuable benefits we provide to member banks and bankers. The Positions Available and Bankers Available sections on our website consistently are among the most visited pages. Best of all, the service costs nothing for member banks and bankers. To make the process of posting a job or resume easier and to answer any questions you may have, we've developed this Q & A document as a resource. It outlines how to submit open positions and resumes, our deadlines and timelines for posting, and other helpful details. If you have any questions, please contact GBA's Katina Prokos at 404.420.2021.

GBA Community Connections

We want to share all the good work GBA member banks, bankers, Associate Members and Bank Counsel Section members do to support their communities. Share your Hometown Connections by sending a brief paragraph and any photos of activities you have to us and we'll publish them at our earliest opportunity. Send information to Katina Prokos and David Oliver. Here's our latest installment...
First National Bank
First Port City Bank
First Bank of Calhoun
Morris Bank
Pinnacle Bank
Planters First Bank
The Heritage Bank
Legacy State Bank
Liberty First Bank
Greater Community Bank
South Georgia Banking Company
Brian Harper
Jason Hultgren
Ashley Vannoy
Trent Frix
Victoria Morris
Jamie Langham

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 David Oliver and Katina Prokos.