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Georgia Bankers Association Organizational Meetings

Georgia Bankers Association Organizational Meetings. The State of Banks in Georgia A Situation Analysis for Strategic Planning June 19, 2003. 5 Year History – Number of GA Banks. Georgia Banks by Asset Size. Banking Demographics of Southeastern States.

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Georgia Bankers Association Organizational Meetings

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  1. Georgia Bankers AssociationOrganizational Meetings The State of Banks in Georgia A Situation Analysis for Strategic Planning June 19, 2003

  2. 5 Year History – Number of GA Banks

  3. Georgia Banks by Asset Size

  4. Banking Demographics of Southeastern States

  5. Residents & Deposits per Banking Office

  6. Growth in Number of GA Banking Offices

  7. Deposits Market Share in Georgia

  8. Deposits Market Share in Georgia

  9. 5 Year Georgia De Novo Chartering Activity

  10. Recent Trends in the Georgia Economy • Employment • Loss of 133,000 jobs between cyclical peak of Jan 2001 and Oct 2002 • 4th qtr 2002 employment down 2.2% over same qtr of prior year – worst performance in the nation.

  11. Recent Trends in the Georgia Economy • Economic Shocks • Contractions in manufacturing by mid-1999, especially textiles and apparel. • NASDAQ tech bubble bursts in 2000. • Weakening absorption of office markets and construction in Atlanta MSA from 2000 on. • 9/11/01 terrorism and aftermath on transportation & tourism.

  12. Significant Balance Sheet Trends • “Hot” loan / deposit ratios; tight liquidity • Higher risk profiles in assets • More commercial real estate in portfolios • More reliance on external noncore funding • Slight lessening of capital ratios • Reasonable credit quality so far

  13. Significant Income Statement Trends • Declining profits, ROAs, ROEs • The smaller the banks, the harder the fall • Declining net interest margins • More reliance on noninterest income • Mortgage origination fees • Overdraft fees • Belt tightening on noninterest expense is not enough

  14. Interest Rate Environment

  15. Interest Rate Environment

  16. Profit Trends in Georgia Banks

  17. Profit Trends in Georgia Banks

  18. Profit Trends in Georgia Banks

  19. Profit Trends in Georgia Banks

  20. Profit Trends in Georgia Banks

  21. Net Interest Margin

  22. Net Interest Margin

  23. Net Interest Margin

  24. Net Interest Margin

  25. Net Interest Margin

  26. Noninterest Income

  27. Noninterest Expense

  28. Assets per Employee

  29. Efficiency Ratios

  30. Net Charge-Offs

  31. Loan / Deposit Ratios

  32. Loan Loss Reserves

  33. Tangible Capital Ratios

  34. Total Risk-Based Capital Ratios

  35. Margin compression Funding / ALCO mgmt Liquidity pressures Recessionary economy Bottom of interest cycle Nonbank competition Fraud/security/tech risks Credit quality-losses to come? Corporate governance Integrity image of banks Staffing /compensation Evolving infrastructure Slowing mortgage cycle Replacing noninterest income Overhead controls Current Issues for GA BanksFrom Preliminary Board Questionnaire Responses

  36. Credit Unions FDIC Insurance Reform Overdraft Protection Products Bankruptcy Reform Predatory Lending Payday Lending Real Estate Powers Dual Banking System Nonbank Regulation Intrastate Branching Interest on Corp Checking Subchapter S Top Legislative & Regulatory IssuesFrom Preliminary Board Questionnaire Responses

  37. Strategic PlanningFor a New GBA Year • Thanks for your attention. • Please refer to committee agenda.

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