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Home I GBA University I Member Services I Volunteers I Government Relations I Calendar of Events    May 30, 2014

State's Banks Post Best First Quarter since 2007

Georgia's 219 state-based FDIC insured banks earned $590 million during the first quarter of 2014, an increase in earnings of 17.3 percent compared to the first quarter 2013. These were the highest first-quarter earnings since the state's banks made $785 million in first quarter 2007. Also up nicely in first quarter of this year were loans, deposits and total assets. "The year started off well for our state's banks, and that's such good news," said Joe Brannen, president and CEO of the Georgia Bankers Association. "We like that loan growth was good and there was continued improvement in credit quality. The economy is clearly better than it was a year ago, and the results are even more encouraging when you consider the chilling effect severe winter weather had on business in many areas of Georgia during the first quarter." Here are some of the positive trends from the results, compared to the same period in 2013:

  • Net income increased by 17.3 percent

  • 65 percent of the state's banks posted increased earnings, and 86 percent were profitable overall

  • Total assets were up by 3.6 percent

  • Loans grew by 5.1 percent

  • Deposits were up by 3.3 percent

  • Noncurrent loans declined for the 16th consecutive quarter

  • Net charge offs were down by 55.2 percent.

As part of our advocacy efforts to promote the industry, GBA distributed a press release to statewide media. Nationally, FDIC-insured institutions reported aggregate net income of $37.2 billion in the first quarter of 2014, down $3.1 billion (7.6 percent) from earnings of $40.3 billion the industry reported a year earlier. The decline in earnings was mainly attributable to a $7.1 billion (10.7 percent) decline in noninterest income. The FDIC has added a new section to the Quarterly Banking Profile that reports on the performance of community banks. Although net income at community banks of $4.4 billion was down $67 million (1.5 percent) from a year earlier, the percentage decline was far less than the 7.6 percent decline in earnings reported by the industry. The report also finds that loan balances at community banks grew at a faster pace than the industry, asset quality indicators continued to show improvement, and community banks accounted for 45 percent of small loans to businesses. With questions, contact Joe Brannen, 404.420.2026, or David Oliver, 404.420.2036. To show long-term trends, the information in the chart below is a cumulative, year-to-date summary through the end of each quarterly reporting period for the past year.

 

Measurement
(Year-to-date data)

Georgia

3/31/14

Georgia

12/31/13

Georgia

9/30/13

Georgia

6/30/13

Georgia

3/31/13

National

3/31/14

Institutions

219

223

224

224

226

6,730

Employees (FTEs)

44,961

45,219

45,339

45,178

45,215

2,058,927

Total assets

$271.5 B

$266.7 B

$261.4 B

$261.6 B

$262.1 B

$14.9 T

Total deposits

$217.6 B

$213.6 B

$211.0 B

$209.4 B

$210.6 B

$11.3 T

Loans and leases, gross

$193.7 B

$192 B

$188.1 B

$186.8 B

$184.3 B

$7.0 T

Other real estate owned

$1.5 B

$1.6 B

$1.8 B

$1.9 B

$2.1 B

$29.4 B

Net income

$590.0 M

$2.0 B

$1.5 B

$1.2 B

$503.0 M

$37.2 B

Net charge-offs

$158.3 M

%1.1 B

$901.8 M

$688.3 M

$353.3 M

$10.4 B

Net charge-offs to loans

0.33%

0.59%

0.65%

0.74%

0.76%

0.52%

% of profitable institutions

85.84%

83.41 %

86.16%

87.05%

85.84%

7.28%

% institutions w / earnings gains

64.84%

65.47%

68.30%

66.52%

57.96%

67.23%

Net interest margin

3.39%

3.48%

3.47%

3.46%

3.45%

3.17%

Return on assets (ROA)

0.88%

0.77%

0.76%

0.93%

0.76%

1.01%

Return on Equity (ROE)

7.32%

6.36%

6.18%

7.58%

6.26%

8.99%

Loss allowance to loans

1.61%

1.64%

1.70%

1.77%

1.84%

1.67%

Noncurrent loans to loans

1.96%

2.12%

2.26%

2.36%

2.60%

2.46%

Equity capital to assets

11.97%

11.99%

12.11%

12.33%

12.31%

11.23%

Total risk-based capital ratio

13.73%

13.74%

13.97%

14.59%

14.61%

15.07%

 

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In Their Words: Susan Keigans

Trend Updates, Networking at Leadership Conference Make it a Valuable Experience

Leadership GBA will host its annual Leadership Conference on July 20-23 at the Ponte Vedra Inn & Club in Ponte Vedra, FL. The Leadership GBA Executive Committee has planned a fantastic program that promises to be educational and enjoyable. Susan Keigans, executive vice president of Planters and Citizens Bank in Camilla and Leadership GBA Executive Committee Vice President recently shared her thoughts about the conference with us:

 

"I've been involved with Leadership GBA since 2007 and have found it to be one of the most valuable programs available from the GBA. The Leadership Conference provides a wonderful opportunity to learn about current industry trends and opportunities other bankers are seeing. Networking with my peers and sharing our experiences has been tremendously helpful to my overall development as a banker. I stay in touch with them throughout the year, and we learn from each other. Attending or sending a representative from your bank to the Leadership Conference means you are making an investment in the future of your bank and community. I can't wait to see you there!

 

GBA has reserved a block of rooms at the Ponte Vedra Inn at a reduced rate of $219 to $235 per night. Reservations may be made by calling the hotel directly at 888.839.9145. Be sure to say you are with the GBA to receive this special rate. The cut-off date for reservations is June 17. You can register online here. With questions about the conference or Leadership GBA in general, please contact GBA's Susie McGehee at 404.420.2010.

 

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Call To Action on QM and Servicing Bills

As we reported last week, the U.S. House Financial Services Committee approved several important regulatory relief bills that are priorities for a joint Regulatory Relief Task Force GBA is a part of with other state bankers associations and the ABA. Building on this momentum, the alerts below are designed for you to directly contact your House member to let your support for these important bills be known. As a reminder, they are H.R. 2673, championed by Rep. Andy Barr (R-Ky.), which would deem all loans held in portfolio for the life of the loan as Qualified Mortgages; H.R. 4521, introduced by Rep. Blaine Luetkemeyer (R-Mo.), that would exempt lenders with less than $10 billion in assets from the Dodd-Frank Act's escrow requirements and servicers handling fewer than 20,000 loans from the servicing rule; and, H.R. 4466, the Financial Regulatory Clarity Act introduced by Financial Institutions Subcommittee Chairman Shelley Moore Capito (R-WV), that would require a review and reconciliation of existing regulations that may be in conflict with or duplicative of new rules being promulgated by the banking agencies. With questions, contact GBA's Elizabeth Chandler at 404.420.2027.

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Reputational Risk Roundup

The topic of the negative effects from bad headlines and public perception on a bank's business itself is making news this week. A Reuters story details how U.S. House Financial Services Committee Chairman Jeb Hensarling has taken issue with some regulators' focus on reputational risk in the exam process. "The introduction of subjective criteria like 'reputation risk' into prudential bank supervision can all too easily become a pretext for the advancement of political objectives," said Hensarling, in a May 22 letter to the heads of the FDIC, the Federal Reserve, OCC and the NCUA. He asked for a response by June 12. A separate commentary posted on CNBC's website implores bank leadership to take reputational risk seriously. The piece focuses mainly on the bad headlines from international and investment banking issues. However, the article does pose some interesting thoughts about the importance of doing things right and telling the right stories about the industry. "Of course, the challenge for bank leaders isn't just to avoid verbal gaffes. It's to demonstrate an understanding that, like it or not, the public expects them to have broader responsibilities than just hitting their earnings targets," the story said. See our Community Connections feature below for some examples of how GBA members are doing exactly what the article suggests when it quotes an old American Banker article that said "the banker must be something more to his country and his community than a loan agent and a merchant of exchange."

 

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GBA Annual Meeting Musts

We’re in serious countdown mode to the 2014 GBA Annual Meeting June 15-18 at the Greenbrier Resort. Here’s a reminder of just a few of the program highlights:

  • Insight into taking community banking from crisis to prosperity from banking expert Tim Koch

  • An economic outlook from Wells Fargo’s Jay Bryson

  • Hear a great American comeback story from Greenbrier owner Jim Justice

  • Breakout sessions about rates, regulations, mergers & acquisitions and Sub S issues.

Of course, that’s all just scratching the surface. See the full program highlights here. You've still got time to sign up and experience the outstanding program, too. A few rooms outside our block are still available at The Greenbrier, so make your reservations now by calling the hotel directly at 855.453.4858. With questions about the meeting, please contact GBA's Susie McGehee at 404.420.2010.

 

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Compliance Peer Group Meeting June 24

Risk Assessment and Third Party Vendor Management

The next GBA Compliance Peer Group Meeting is June 24 at Idle Hour Country Club in Macon from 9:30 a.m. to 2:30 p.m. Kevin Toomey with Kilpatrick Townsend & Stockton LLP, will cover overall risk assessment for a bank's compliance management program and third-party vendor management. Thanks to GBA's Compliance Committee for planning the program. Sandra Chastain, Private Bank of Buckhead, Atlanta, is the committee chair. This event is open to all GBA members. Click here to learn more and to register or contact Alison Moreau, 404.420.2034.

 

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Privacy Notice Rule Proposal Comment Period Extended

Comments about the CFPB's proposed rule to ease the annual privacy notice required by the Gramm-Leach-Bliley Act are now due July 14. CFPB announced the one-month extension this week. The proposal would allow banks to post privacy notices online in certain circumstances as opposed to delivering them individually to customers. GBA supports the concept of the rule, but like others is reviewing the full proposal. We encourage banks to comment and to let us know if there's something in the proposal GBA should address in a formal comment letter, as well. See the CFPB's Notice and Comment section of its website for links to the proposal and extension document. With comments or questions, contact Elizabeth Chandler, 404.420.2027.

 

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Compensation and Benefits Survey Deadline Extended to June 30; Save on Results Report

Please participate in the 2014 GBA Compensation and Benefits Survey as a tool to help your bank and others get a firm grasp on the state of our industry's pay and benefits practices heading into budget season. The deadline for completing the survey has been extended to June 30. Participation is free, and if you do participate, you can get a copy of the results for the discounted price of only $150 when they're available in early fall. Any member can participate. This year we are again encouraging online participation. Whether you prefer to participate electronically or by submitting the paper input packet, you can find all the information necessary to participate at this link: 2014 GBA Compensation and Benefits Survey. If you have questions or comments, please contact GBA's Kenyetta Parks, 404.420.2035, or Mike Hamilton at Matthews, Young - Management Consulting, 919.644.6962.

 

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Call Reporting Seminar Coming up June 24

GBA will host its annual Call Reporting seminar June 24, at Idle Hour Country Club, Macon. This one-day seminar presented by Mauldin & Jenkins, LLC, will offer practical techniques to improve your overall reporting process. Participants will receive a detailed line-by-line review in the completion of each schedule of a Call Report. Appropriate items to be reported and relationships between schedules will be discussed as part of this review. In addition, changes to the Call Report effective in 2014 will be discussed, along with the 2015 changes to Schedule RC-R. Most commonly-used schedules within the Call Report will be addressed, with an emphasis placed on Schedules RC-C and RC-R. To register, click here. With questions, please contact GBA's Danielle Driggers at 404.420.2002.

 

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Career Mapping Made Easy

Take advantage of one of the best GBA member benefits designed to help you with your career development plans. GBA's Career Paths for BankersTM is the most unique, organized and easy-to-use career development resource available for bankers and banks. GBA's pioneering Career Paths for Bankers resource is unique to any other bank association's career development offerings. It's a free resource available to any member banker. Use Career Paths for Bankers to:

  • Find… your position and positions you aspire to, whether you're in lending, retail or finance & operations. You then can see the exact competencies for success and specific GBA sponsored professional development opportunities for each.

 

  • Find... the 44 most common job descriptions your bank needs, competencies people in those positions need, and the specific GBA learning available to you and your bankers.

For banks looking for a more customized performance management system, GBA's Strategic Partner, TalentQuest, offers TalentQuest for Financial Services. With a full suite of talent management services including performance appraisals, 360-feedback, selection assessment and more, TalentQuest for Financial Services is a terrific complement to GBA's Career Paths for Bankers.

With questions, please contact GBA's Alison Moreau at 404.420.2034.

 

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Ag Lending Guide Updated by OCC

The OCC this week issued the first update in 16 years of its Agricultural Lending booklet that is part of the Comptroller's Handbook. The updated booklet provides guidance on agricultural lending, including an overview of agricultural lending markets, associated risks, and risk management practices. It also includes expanded examination procedures, an internal control questionnaire, and verification procedures for examiners. Access the Agricultural Lending booklet here.

 

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AIB Course Highlight

Analyzing Bank Performance, Trust, Intro to Mortgage Lending and More

Below are instructor-led AIB online classes coming up in June and July. These courses have weekly assignments as well as midterm and final exams. 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. For more information, contact Alison Moreau, 404.420.2034.

 

June 16 AIB Principles of Banking Accelerated

June 23

ABA Online Review Course for the CTFA Examination (no workbooks)

June 23

Analyzing Bank Performance

June 23

Analyzing Bank Performance (w/o textbook)

June 23

Introduction to Trust Products and Services

July 7

Introduction to Mortgage Lending

July 7

Economics for Bankers

July 7

Principles of Banking

July 14

Consumer Lending

July 14

Law & Banking: Applications

July 14

Law & Banking: Applications (without textbook)

July 14

Money & Banking

 

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GBA-U Webinars

BSA Red Flags, Robbery Prevention, Credit Administration Best Practices and More

A GBA Webinar is a great way to quickly get the training you need right from the comfort of your office. Here is a sample of upcoming offerings. Check the GBA-U Calendar of Events for any webinars you are interested in at www.gabankers.com.

 

June 3

Branch Manager Expertise

June 4

Excel Explained: Minimize Spreadsheet Errors

June 4

Robbery Prevention, Response & Aftermath

June 4

BSA Red Flags for Money Laundering: Frontline Annual Training

June 5

Best-Ever Compliance Checklists for Consumer Loans

June 10

Mobile Banking Risks & Rewards: Meeting Strategic Goals While Addressing Regulator Expectations

June 11

Regulation CC

June 17

Seven Habits of Effective Credit Administration in Commercial Banks

June 18

CRA Nuts & Bolts - Five Steps to Pass the Exam

June 19

The State of UDAAP: Dealing with a New Reality

June 24

The Final Rule on Federal Benefit Payments Garnishment Requirements

June 25

Endorsements on Fiduciaries, Trusts, Estates, and Business Accounts: Who is Authorized to Negotiate

June 25

Writing a New Accounts Procedures Manual

 

Webinars are live and allow time for questions and answers. The $255 registration price 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 session online. With questions, please contact GBA's Danielle Driggers at 404.420.2002.

 

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The Rules on Overdraft Programs Have Changed, but Consumers Still Need a Financial Safety Net

While the overall economic forecast is improving, many consumers remain concerned about unemployment and personal financial issues, ranging from meeting everyday expenses to paying income tax responsibilities. Whether as a result of unplanned expenses or an error in reconciling a checkbook, financial shortfalls can happen to anyone. And without a financial safety net, many consumers often experience difficulty paying their bills, facing costly merchant check return fees when their account has insufficient funds. By providing a user-friendly overdraft program, your institution can help account holders avoid these difficult situations. To provide your account holders with the most up-to-date overdraft solution, your overdraft program should include the following:

  • effective consumer communications

  • materials that explain how the program works and how to use it responsibly

  • strong analytical data and more robust data monitoring

  • analysis capabilities to measure results

  • reliable methodologies to gauge on-going program performance and implement any necessary improvements.

For more information please contact Waid Thompson, JMFA's regional sales director, at 888.345.8639.

 

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Wow Your Customers With NCR's Latest ATM and Branch Transformation Solutions

NCR is always a leader in hardware and technology to help serve your customers. NCR's family of SelfServTM ATMs offer every transaction in every location type: cash dispense, multi-function, intelligent deposit, cash recycling, foreign exchange, bill payment transactions in low or high volume, interior or exterior, in-branch, off-site or drive-up locations. And, the company's Branch Transformation Solutions include interactive video tellers and other machines to improve customer satisfaction, and ultimately, deeper customer loyalty. The overall result is greater opportunities for increasing income through improved efficiency and sales enablement and ultimately your customer viewing you as their ‘bank of choice." GBA co-endorses NCR for these products along with ABA's affiliate, the Corporation for American Banking. For information about co-endorsed NCR SelfServ ATMs and software, Financial Kiosks, APTRA Interactive Tellers and Teller Cash Recyclers, call 1-877-928-9627; e-mail atm.info@ncr.com; or contact GBA's Bo Brannen, at 404.420.2014.

 

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Trust and Investment Management Services for Your Bank's Valued Customers

Reliance Trust Company, headquartered in Atlanta, is one of the largest independent trust companies in the country with more than $109 billion in assets under management and administration and a leading provider of personalized financial services for individual, corporate, and institutional clients. Reliance can add fee-based revenues through financial advisory services to individual and business customers, directors and bank employees. Services include:

 

  • Wealth management and personal advisory services

  • Separate account management

  • Money manager consulting

  • Trust and fiduciary services

  • Financial, estate, and tax planning

  • Retirement plans and investments

  • Outsourcing services to financial intermediaries.

Reliance Trust's team of experts also regularly provides good, transparent analysis and insight on how to succeed in today's financial marketplace through a variety of online publications. Click here to learn more. For more information, contact Reliance's Mark Teichner at 404.965.7239 or GBA's Bo Brannen 404.420.2014.

 

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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. Read all about the Community Connections our banks and members have below. Share your Community 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 Bo Brannen and David Oliver, or if your company would like to sponsor this content, let us know. See these and other member community contributions on GBA's Facebook page. Here's our latest installment:

 

Albany - HeritageBank of the South

Team members from the bank recently attended the Albany Civil Rights Institute's gala (picture below).

 

Darien - Southeastern Bank

The bank is proud to sponsor the First-Annual Glynn County Volunteer Firefighters Golf Tournament May 31.

 

 

Dublin - Morris Bank

The bank is a proud supporter of Dublin Mainstreet Players. Their latest production, Murder at Rutherford House, featured two of bank's own team members, Kimberly Walker and Nichole Padgett (pictured below).

 

 

Griffin - United Bank

The bank is proud to sponsor A.Z. Kelsey School's 1st Annual Golf Classic - Connecting on the Green!, Saturday, May 31 at the Griffin City Park Golf Course.

 

From left to right: Joanne Hardy, Shanice Carter, Evelyn Ross, Deborah Clemons, Latrena Greene, Lydia Davis and Comora Williams. Morris Bank's Kimberly Walker and
Nichole Padgett

 

Sponsorship Available: GBA Associate Members may sponsor GBA's Community Connections feature to support our member banks' activities in Georgia communities. Contact David Oliver at 404.420.2036 for information.

 

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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 print publication, the GBA Bulletin, mailed every other week. Resume postings are also available. For more information, please contact Kenyetta Parks at 404.420.2035.

 

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Newsmakers

 

Alma - Alma Exchange Bank

Our sympathies to the family and friends of former bank president Olivia Lawrence Bennett, who recently passed away. Bennett was one of the first female bank presidents in Georgia, serving as president and chairman of Alma Exchange Bank, and was a retired chairman of Peoples State Bank, Baxley; Peoples Bank, Lyons; and Citizens State Bank, Kingsland. Read more here...

 

Alpharetta - Bank of North Georgia, a division of Synovus Bank

Cory Jackson has been promoted to Business Banking Officer supporting the Buckhead market. Jason Albritton has been promoted to Business Banking Officer supporting the Cobb County market.

 

Atlanta - Community & Southern

Sandra DeLeva has joined the bank's Middle Market and Private Banking team as a Client Support Specialist. James Cash and Paige Tabaka Vohs have joined the team as Client Managers.

 

Atlanta - Citizens Trust Bank

CEO Cynthia Day was recently named CEO of the Year by the Atlanta Business League.

 

Atlanta - Private Bank of Buckhead

PrivatePlus Mortgage, a division of Private Bank of Buckhead has added three team members. Mary Blanchard has joined the company as a Vice President and Mortgage Banker. Tawanna Evans has joined the company as a Closer and Funder; and Shawnetta Coward has joined the company as a Underwriter​.

 

Eastman - Citizens Bank and Trust Company

Congratulations to Senior Vice President and Chief Financial Officer Moniece Moore who is retiring on June 30 after 47 years of outstanding service. Bernice (Bunny) Wright has been named Vice President and CFO. Lori Sheffield has been promoted to Vice President and will direct Deposit Operations.

 

Forsyth - The Farmers Bank

Congratulations to Vice President Keith Anthony who is continuing his role as class president in his second year at the Graduate School of Banking at LSU. Anthony also serves on the Leadership GBA Executive Committee in an At-Large role.

 

Cleveland - Access to Capital for Entrepreneurs (ACE)

Linda Jameson has joined GBA Associate Member ACE as Chief Credit and Operations Officer.

 

Washington D.C. - Federal Reserve Board of Governors

Stanley Fischer was sworn in this week as a member of the Board of Governors of the Federal Reserve System.

 

Bennett Jackson Albritton DeLeva Cash
Vohs Day Blanchard Evans Coward

 

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 Bo Brannen.

 

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