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THE JACKSON HERALD
WEDNESDAY, DECEMBER 31, 2008
Freedom Bank enters cease and desist order
FREEDOM BANK of
Georgia based in Commerce
has entered into a “cease and
desist order” with state and
federal regulators to overhaul
the bank's operations. The
bank agreed Dec. 17 to the
order and it becomes effective
Dec. 27.
The bank will maintain its
current services and hours and
all deposits are covered by the
FDIC to the limits allowed by
law. The bank has offices in
Commerce, Jefferson, Winder
and Homer.
The order comes from an
on-site visit in June, accord
ing to documents filed with
the Securities and Exchange
Commission. Among the
terms of the order, the bank
is to address the following:
Maintaining sufficient capital
at the bank; improving the
bank's liquidity; revise the
bank's allowance for loan and
losses; improve the bank’s
position regarding real estate
it owns; and to create a plan
to improve the bank's overall
condition.
Under the terms of the
agreement, the bank cannot
pay dividends or bonuses
without consent of the regu
lators.
The bank has engaged
an investment bank to help
review the firm’s “strategic
alternatives,” according to the
documents.
Like many of the small
er banks in North Georgia,
Freedom Bank has been hit
hard by the economic down
turn and housing bust. The
bank had a net loss of $2.7
million in the third quarter
and has lost $4.8 million in
the first nine months of 2008.
The bank had total assets of
$147 million at the end of the
third quarter.
“Freedom Bank of Georgia
has been affected by the down
turn in the economy, particu
larly in the real estate sec
tor of the market,” said Vince
Cater, president and CEO of
the bank. “Jackson, Banks and
Barrow Counties have been
among the fastest growing
and most dynamic areas of the
country for the past several
years, and Freedom Bank of
Georgia, in serving the local
economy, participated active
ly in construction and related
loans.”
According to the SEC fil
ing, the bank has “aggres
sively taken steps to address
the findings of the (June)
exam. The Bank and its Board
of Directors have taken an
active role in working with
the Department to improve
the condition of the Bank and
have already completed many
of the items included in the
order.”
“Many of the bank's local
customers are involved direct
ly or indirectly in the con
struction industry, and some
of them have been strug
gling for the past year or so,”
Cater said. “This, in turn, has
affected the bank’s loan per
formance and earnings.
“The bank has been aggres
sively addressing these issues
in cooperation with the regu
latory authorities, and remains
confident in the future of this
market as the economy recov
ers. The bank has retained an
investment banker to assist in
finding the best alternatives
for strengthening the bank's
capital.”
In the third quarter SEC
filing, the bank and regula
tors said the firm’s ability to
maintain an on-going business
would be dependent on the
bank's ability to raise addi
tional capital.
“We will continue to pro
vide the high quality of service
that our customers have come
to expect,” Cater said. “Our
intent is to serve our commu
nity, assist our customers, and
to work with our borrowers
that are struggling in the cur
rent down-turn to overcome
their problems. Our deposi
tors remain fully covered by
FDIC insurance to the maxi
mum extent permitted by law,
our Board of Directors and
staff remain committed to the
communities we serve, and
our confidence in the future
of Freedom Bank of Georgia
and in the future of Northeast
Georgia remains strong.”
Freedom Bank of Georgia
opened in early 2004 in
Commerce.
Jackson County’s unemployment rate reaches 7.4%
THE UNEMPLOYMENT
rate in Jackson County hit 7.4
percent in November, double
the rate it was just one year ago.
According to state numbers,
some 2,097 Jackson Countians
are unemployed.
Initial unemployment claims
fell slightly from October 2008
to November 2008, but the
claims are up nearly 50 percent
over last year.
Both numbers are likely to
stay high in the coming months
as the economic downturn
continues to create layoffs and
higher unemployment in the
area. Statewide in November,
the unemployment rate topped
7.5 percent, the highest in more
than 25 years.
“Job losses are accelerat
ing throughout most of the
state’s economic sectors,
with the exception of health
care, education, and the fed
eral government,” State Labor
Commissioner Michael
Thurmond said. “Although it
may be difficult to find a job
in this environment, it is not
impossible.”
Thurmond encouraged job
seekers to remain positive and
take advantage of the employ
ment services offered by the
Georgia Department of Labor.
The department's Website
www.dol.state.ga.us includes
accessible listings of current
job openings, as well as infor
mation about job search, career
planning, and education and
training opportunities. A com
plete listing of all 53 career
centers is also provided.
In addition, Thurmond
called on Georgians to con
sider upgrading their skills and
employability by enrolling at
one of the state’s two-year col
leges and technical colleges.
The last time Georgia posted
a seasonally adjusted unem
ployment rate at this level was
in July of 1983, when the rate
was also 7.5 percent. The state
rate remained above the nation
al rate of 6.7 percent for the
10th straight month. At present,
365,244unemployed Georgians
are looking for work.
Unemployment
rates
Location
Nov. 2008
Nov. 2007
State
7.5%
6.9%
Barrow County
7.9
4.1
Clarke County
6.1
3.6
Gwinnett County
6.4
3.6
Jackson County
7.4
3.7
Madison County
6.4
3.6
Oconee County
4.4
2.8
Walton County
7.7
4.2
Banks County
5.2
2.8
Initial Unemployment Insurance Claims
Location
Nov. 2008
Oct. 2008 Nov. 2007
Chanae*
Barrow County
457
526
240
90%
Clarke County
545
680
385
42%
Gwinnett County
3,261
3,639
1,864
76%
Jackson County
336
382
226
49%
Madison County
219
227
149
47%
Oconee County
102
109
77
32%
Walton County
491
573
305
61%
Banks County
124
81
130
-5%
*Percent change from Nov. 2007 to Nov. 2008
No appeal yet in NEGA,
Barrow hospital ruling
BY KERRI TESTEMENT
NORTHEAST Georgia
Health System hasn’t filed the
paperwork yet to appeal a recent
decision by a judge about its
new hospital in Braselton.
The Gainesville-based health
system has until Jan. 14 to file a
request with the Georgia Court
of Appeals for a hearing.
“We'll definitely be meet
ing that deadline,” said Melissa
Tymchuk, a spokesperson for
the health system, on Monday.
Superior Court judge Bob
Adamson ruled in favor of
Barrow Regional Medical
Center two weeks ago in a
lawsuit that challenged the
state's granting of a Certificate
of Need (CON) to Northeast
Georgia for a new 100-bed hos
pital in Braselton on Thompson
Mill Road, near Chateau Elan.
The Winder hospital claims
in court documents that open
ing a new hospital in Braselton
— 11 miles from Barrow
Regional — would have a
major economic impact on the
56-bed facility.
Barrow Regional is also
objecting to the state depart
ment’s approval of the Braselton
facility without an adequate
review.
The Winder hospital filed an
objection to the Braselton facil
ity during the CON process
in 2007, but a hearing officer
and the State Health Planning
Review Board favored the
approval of Northeast Georgia’s
CON application.
Barrow Regional took its last
legal avenue in March 2008.
when it filed a request for judi
cial review.
Photo history book available again
JACKSON COUNTY Historical Society’s book “Portraits of a
Southern Place” has been reprinted. The book contains 257 early
Jackson County photographs and includes an index, organized by
surnames, to benefit genealogy researchers.
The price of $25 includes tax. There will be a quantity discount of
five books or more for $20 each. Checks and money orders can be
made to The Jackson County Historical Society.
The books will be available at public libraries. Genuine Jefferson,
the Joy Shoppe, Crawford W. Long Pharmacy and the Bums-Telford
House.
LANDSCAPING & HORSE ARENAS
• RIVER SAND
• TOP SOIL
• RIVER ROCK
• WHITE SAND
• FILL DIRT
•PEA GRAVEL
WILLIAMS SAND
770-967-6501 OR 706-789-3779
Danielsville, GA • www.williamstransportco.com
Highway 106 to Jot-em Down Rd. to Young Harris Road to Serenity Lane
Jackson sales taxes down 8%
SALES TAX collections in
Jackson County are down 8
percent year to date through
October. If the current trend
continues, county officials
expect sales tax revenue to fall
$430,600 below budget for the
year.
Sales tax revenue was off
11.5 percent in October over
the same month the year before.
That continues a trend that has
dominated local sales tax collec
tion throughout the year.
Year to date through October,
Jackson County has collected
$4.8 million in local option sales
taxes. In 2007, the county had
collected $5.3 million through
the same period.
New Year’s programs ahead
TWO NEW Year’s Day pro
grams are planned in Jackson
County on January 1.
The 82nd annual New Year’s
Day Program will be held at 9
a.m. on January 1, at the Historic
Jackson County Courthouse.
This traditional program was
started in 1927 “to give thanks
to God for all the blessings of the
past year and to ask for divine
guidance throughout the coming
New Year.”
As has been the case for sev
eral years, the event is sponsored
by Teen Pact, a non-profit orga
nization committed to turning
students into statesmen. Those
who attend are asked to dress
warmly because the heat in the
historic courthouse may not be
turned on. Coffee, hot chocolate
and donuts will be served.
Because 2008 was an elec
tion year, a second New Year’s
Day program will be held at
10 a.m. on January 1, at the
new Jackson County Courthouse
for the purpose of swearing in
newly-elected officials. Probate
Judge Margaret Deadwyler will
preside at the second program
and will administer the oath of
office to newly-elected officials.
Benton expects no backlash
BY MARK BEARDSLEY
IT APPEARS that State Rep.
Tommy Benton (R-District
31) will suffer no ramifica
tions from his support for a
challenger to Speaker of the
House Glenn Richardson.
Benton backed Rep. David
Ralston's bid to unseat
Richardson, who was a
lightning rod for criticism
of the Georgia House of
Representatives last year.
Richardson prevailed 75-25
in the Republican Caucus.
Benton met recently with
Richardson.
“I just went by and told him
where I was coming from and
there wasn't anything personal
about it,” Benton said. “He told
me there was not going to be
any repercussions against us,
that we would keep the same
committees and offices.”
Benton is secretary of the
Education Committee and
serves on the Environmental,
National Resources and
Transportation committees.
“I was surprised,” he said of
Richardson’s comments.
Benton also said Richardson
indicated he may be a lower
profile speaker of the House
this year.
“He made the statement he
was going to stay away from
legislation,” said Benton.
Richardson created a
firestorm of controversy last
year with his GREAT Plan to
eliminate property taxes. The
plan was eventually killed.
The legislature will have
enough to do without creating
new controversy. It must cut
the state budget to accommo
date reduced revenue from an
economy in recession.
The 2009 session begins
Monday, Jan. 12, and while
the budget is always a chal
lenge, this year could be bru
tal.
“Instead of us going in and
trying to find money for dif
ferent projects, we’re going to
be looking to cut everything
not just absolutely essential,”
said Benton. “There will be
a lot of looking at what the
state government needs to be
doing.”
Benton points out that fund
ing for education “does not
meet our (state) obligation”
and expressed some hope that
this year might be the time to
renew that commitment. At
the same time, he said, “some
thing has got to be done in the
medical area.”
While both the House and
Senate appropriations com
mittees are already at work,
the real starting point is the
governor’s proposed budget.
Then, the document goes to
the House, which makes its
own adjustments, then to the
Senate, which does the same.
Eventually a conference com
mittee will come up with a
Contact Rep. Benton
Rep. District 31 Rep.
Tommy Benton can be
reached by phone at
706-367-5891 (home) or at
404-656-0177 (office); or
by e-mail at tommy.ben-
ton@house.ga.gov.
For information, and
links to Georgia represen
tatives, U.S. Congressmen,
Senators and other officials,
visit Benton’s Web site at
www. tommybenton. com.
final document.
The process will be the
same as always, but the dif
ficulty far greater.
“We’ve got some seri
ous problems in our medi
cal establishments,” Benton
sated. “Our larger hospitals
and even the smaller ones like
BJC can’t continue to pick up
the tab (for) people not paying
at all. Those of us who are
working every day are fund
ing medicine for all those who
don't have insurance and can’t
pay.”
Perdue has asked depart
ments to prepare for cuts of
six to eight percent, although
education was put at two per
cent, a figure that could go to
four.
“If we go to four, there are
going to be some serious cuts
to school systems,” Benton
pointed out. “They are work
ing really hard not to cut that.
When you’ve got $11 billion,
two (additional) percent, that's
a ton of money.”
Among the budget-related
possibilities is the transforma
tion of the budget process to
zero-based budgeting, some
thing that has been discussed
for years. Benton thinks the
sour economy may give legis
lators the incentive to enact it.
After the initial across-the-
boards cuts, Perdue has asked
some agencies to trim their
budgets by more.
“There are some agencies
that can go to a larger cut, 10
to 12 percent, depending upon
what they do,” Benton said.
On the revenue side, there
is the possibility of increasing
some licenses and fees - and
of privatizing the Department
of Revenue, a move Benton
said increased revenue by 30
percent in Alabama.
Other initiatives likely to
come up include
•House Resolution 1, a pro
posed constitutional amend
ment to cap property tax
assessment increases at three
percent or the rate of inflation.
“The cities and counties don’t
like that, but it’s going to be
a very popular bill,” Benton
said.
•a proposal to allow 10 votes
on the death penalty (out of 12
jurors) to make the penalty
mandatory.
FOR ONLY $5 PER MONTH,
YOU CAN LIST YOUR GROUP'S MEETINGS!
Let your members know when your group is meeting!
Call (706) 367-5233 to advertise your meeting time, place and date in...
• The Jackson Herald • The Commerce News • The Braselton News
• The Banks County News • The Madison County Journal
The Jackson Co. Republican Party
Would like you to meet us for
breakfast the second Sat. of each
month, 8:00 at The Jefferson
House. For more information, call
706-652-2967 or email
fishyglass@yahoo.com Pd.ii/os
0 BANKS COUNTY
AMERICAN LEGION
Post 215
Meets each 3rd Thursday, 7 p.m.
In Homer, GA at the
American Legion Building on
Historic Highway 441 pd,06/09
v : ;m- VETERANS OF
FOREIGN WARS
Post 4872, Hurricane Shoals Convention Ctr.
Each 4th Tuesdasy, 7:00 p.m.
Lamar Langston, Commander
Phone 706-652-2627 263
UNITY LODGE
^ F&A.M.
No. 36, Jefferson, GA
1st Tuesday of each month, 7:30 p.m.
Dwayne Potts • 706-367-4449
Borders St. behind Tabo's 260
BANKS COUNTY
HISTORICAL SOCIETY, INC.
meets first Monday each month
7:00 p.m. in the Banks Co. Historial
Courthouse at 105 U.S. Hwy. 441
North in Homer pd.-cwo 1
\ JEFFERSON
i? AMERICAN LEGION
Albert Gordon Post 56
Each 3rd Tuesday, 7:30 p.m.
Harvie Lance, Commander
Phone (706) 654-1274 no
investigating the health risks to citizens from
underground pipelines and booster stations in
Madison Co. Meetings 6:30 p.m. at the Colbert
Grove Baptist Church the 2nd Thurs. of each
month. 706-783-4702. Pd.04/09
White Plains Baptist Church
Faith Bible Class meets every Sunday morning
at 10:00 a.m. It is a place where strangers
become friends and friends become family.
706-367-5650
White Plains Baptist Church
3650 Hwy. 124 West, Jefferson, GA 30549
ITIZENS
IPELINE SAFETY
RGANIZED for
JEFFERSON ROTARY CLUB
Meets Tuesdays
Jefferson City Clubhouse
12:30 p.m. *(706) 367-7696
Gina Mitsdarffer, President
JEFFERSON LIONS CLUB
Meets 2nd & 4th Monday
Jefferson City Clubhouse
6:30 p.m. *(706) 387-1156
Mack Cates, President