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THE COMMERCE (GA) NEWS. WEDNESDAY. DECEMBER 31. 2008 - PAGE 3A
Freedom Bank Under
Order From The SEC
Commerce-based Free
dom Bank of Georgia has
entered into a cease and
desist order with the Georgia
Department of Banking and
Finance, according to docu
ments filed Dec. 23 with the
Securities and Exchange
Commission.
The bank’s deposits are
insured by the Federal
Deposit Insurance Corp.,
and its operations remain in
place under the order.
A cease and desist order
is a formal agreement
between regulators and a
bank that the operations
must undergo an overhaul
for the institution overseen
by regulators.
The order, which has
been acknowledged by
federal regulators, prevents
Freedom Bank from paying
cash dividends to stockhold
ers or bonuses to executives
without written approval of
bank regulators. At least
six other cease and desist
orders against Georgia
banks have been publicly
disclosed.
The order is based on find
ings from an examination of
Freedom Bank’s operations
conducted through June 9,
the company said in the
filing.
Freedom Bank has four
branches in Commerce,
Winder, Homer and
Jefferson. It opened in early
2004 in Commerce.
“Freedom Bank of Georgia
has been affected by the
downturn in the economy,
particularly in the real
estate sector of the mar
ket,’’ said Vince Cater, presi
dent 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
actively in construction and
related loans.’’
At the end of the third
quarter, the bank had $147
million in assets. Of its $104
million in loans, $12 million
— or about 11 percent of its
total loan portfolio — was
in some state of default,
according to Federal
Deposit Insurance Corp.
records. 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.
Terms of the order man
date the bank submit writ
ten plans to, among other
things, maintain sufficient
capital, improve liquid
ity and “funds management
practices,’’ and improve
loan underwriting, admin
istration and portfolio man
agement.
The order became effec
tive Dec. 27.
“The bank and its board
of directors have taken an
active role in working with
the (Georgia Department
of Banking and Finance) to
improve the condition of the
bank and have already com
pleted many of the items
included in the order,’’ the
bank said in the SEC filing.
“Many of the bank’s local
customers are involved
directly or indirectly in the
construction industry, and
some of them have been
struggling for the past year
or so,’’ Cater said. “This, in
turn, has affected the bank’s
loan performance and earn
ings.’’
Freedom Bank has also
hired an investment banker
to assist in evaluating its
“strategic alternatives,’’ the
bank said in the filing.
In the third quarter SEC
filing, the bank and regula
tors said the firm’s ability to
maintain an ongoing busi
ness would be dependent
on the bank’s ability to raise
additional capital.
“We will continue to pro
vide the high quality of
service that our custom
ers have come to expect,’’
Cater said. “Our intent is
to serve our community,
assist our customers, and
to work with our borrow
ers that are struggling in
the current downturn to
overcome their problems.
Our depositors remain
fully covered by FDIC
insurance to the maximum
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.’’
— Gas Marketing Coalition
Cont. from Page IB
the CRE news release.
The organization also
points out that 80 percent of
domestic use of natural gas
comes from gas produced
in the United States.
Over the years, Commerce
has attempted to entice con
sumers to use more natural
gas. Its current focus is on a
gas “tankless’’ water heating
system.
“It’s fairly expensive up
front,’’ notes City Manager
Clarence Bryant, “but we
offer a rebate that may be
has high as $500. Of course
you have to pay somebody
to put it in.’’
The system heats water
on demand, eliminating the
wastefulness of maintain
ing a water tank full of hot
water.
The city’s intention is not
entirely altruistic. Its natu
ral gas system is its largest
generator of revenue — and
its largest expense. The
current budget projects
revenue of $11.3 million.
The cost of buying that gas
amounts to almost $9.4 mil
lion of the revenue, and
the budget calls for some
$850,000 to be transferred
into the General Fund —
that fund’s second-largest
source of revenue (the larg
est is the insurance pre
mium tax, which brings in
$1.5 million).
But natural gas is more
efficient, particularly since
rates have fallen to their low
est point in years. And with
federal carbon taxes likely
to cause electric rates to
rise in the near future, the
cost effectiveness of natural
gas compared to electric
ity could turn consumers to
natural gas.
“Basically, this is a market
ing program,’’ notes Bryant.
“The propane gas industry
has done a pretty good job
of marketing itself, but the
natural gas industry hasn’t
done much.’’
The cost of the program is
covered by the city’s mem
bership dues in MGAG.
Community Calendar
To place events on the Community Calendar, call 706-387-5406 or e-mail mark@mainstreetnews.com
Thursday, Jan. 1
New Year's Day: All government
offices and most businesses will be
closed for the holiday.
Monday, Jan. 5
Commerce Council meets: 6:30
p.m., City Hall. This work ses
sion prepares the city council for
its regular meeting the following
Monday night.
Maysville Council meets: 7:00
p.m., Maysville Public Library.
Nicholson Council meets: 7:00,
Nicholson City Hall.
Tuesday, Jan. 6
JCCO meets: 6:00 p.m., BJC
Hospital conference room. Jackson
County Community Outreach is a
grassroots community organiza
tion.
TOPS meeting: 6:00 p.m., BJC
Medical Center cafeteria. Take Off
Pounds Sensibly is a weight loss
group. Weigh-in is from 5:00 to
5:50.
Thursday, Jan. 8
Kiwanis Club meets: Noon, Com
merce Civic Center.
Cold Sassy Quitters: 1:00 p.m.,
Commerce Public Library.
School board meets: 7 p.m.,
Commerce Primary School Media
Center. The work session prepares
the Commerce Board of Education
for its regular meeting the following
Monday night.
Monday, Jan. 12
Commerce Council meets: 6:30
p.m., Commerce Room, Commerce
Civic Center.
School board meets: 7:00 p.m.,
Commerce High School media cen
ter. The Commerce Board of Educa
tion operates the city's independent
school system.
Tuesday, Jan. 13
TOPS meeting: 6:00 p.m., BJC
Medical Center cafeteria. Take Off
Pounds Sensibly is a weight loss
group. Weigh-in is from 5:00 to
5:50.
Lions Club meets: 7:00 p.m.,
Ryan's Steakhouse, Banks Crossing.
Thursday, Jan. 15
Kiwanis Club meets: Noon, Com
merce Civic Center.
Pilot Club meets: 7:00 p.m., First
United Methodist Church of Com
merce. The Pilot Club of Commerce
meets on the third Thursday of each
month.
Monday, Jan. 19
Hospital authority meets: 1:30
p.m., conference room, BJC
Hospital. The BJC Medical Center
Authority manages BJC Hospital
and Nursing Home.
Mended Hearts meets: 7:00
p.m., conference room, BJC Medi
cal Center. Mended Hearts is a
support group for heart patients
and their families.
Library board meets: 5:00 p.m.,
Commerce Public Library. The
Commerce Library Board manages
the city library.
Tuesday, Jan. 20
TOPS meeting: 6:00 p.m., BJC
Medical Center cafeteria. Take Off
Pounds Sensibly is a weight loss
group. Weigh-in is at 5:00.
Thursday, Jan. 22
Kiwanis Club meets: Noon, Com
merce Civic Center.
Cold Sassy Quilters: 6 p.m.,
Commerce Public Library. New
members welcome.
Friday, Jan. 23
Chamber banquet: 6:00 p.m.,
Jefferson Civic Center. The Jackson
County Area Chamber of Com
merce will celebrate its past year.
Band and dancing are included.
Monday, Jan. 26
City planning meeting: 7:00
p.m., Peach Room, Commerce Civ
ic Center. The Commerce Planninq
Commission makes recommenda
tions to the city council on zoning
and other land use matters.
Tuesday, Jan. 27
TOPS meeting: 6:00 p.m., BJC
Medical Center cafeteria. Take Off
Pounds Sensibly is a weight loss
group. Weigh-in is from 5:00 to
5:50.
Lions Club meets: 7 p.m., Ryan's
Steakhouse, Banks Crossing.
Thursday, Jan. 29
Kiwanis Club meets: Noon, Com
merce Civic Center.
Monday, Feb. 2
Commerce Council meets: 6:30
p.m., City Hall. This work ses
sion prepares the city council for
its regular meeting the following
Monday night.
Maysville Council meets: 7:00
p.m., Maysville Public Library.
Nicholson Council meets: 7:00,
Nicholson City Hall.
Tuesday, Feb. 3
JCCO meets: 6:00 p.m., BJC
Hospital conference room. Jackson
County Community Outreach is a
grassroots community organiza
tion.
TOPS meeting: 6:00 p.m., BJC
Medical Center cafeteria. Take Off
Pounds Sensibly is a weight loss
group. Weigh-in starts at 5:00.
Wednesday, Feb. 4
Chamber breakfast: 7:30 a.m.,
Jefferson Civic Center. Open to all
members of the Jackson County
Area Chamber of Commerce and
guests. $5.
Thursday, Feb. 5
Kiwanis Club meets: Noon, Com
merce Civic Center.
School board meets: 7:00 p.m.,
location TBA. This work session
prepares the Commerce Board of
Education for its regular meeting
the following Monday.
Monday, Feb. 9
Commerce Council meets: 6:30
p.m., Commerce Room, Commerce
Civic Center.
School board meets: 7:00 p.m.,
Commerce High School media cen
ter. The Commerce Board of Educa
tion operates the city's independent
school system.
Tuesday, Feb. 10
TOPS meeting: 6:00 p.m., BJC
Medical Center cafeteria. Take Off
Pounds Sensibly is a weight loss
group. Weigh-in is from 5:00 to
5:50.
Lions Club meets: 7:00 p.m.,
Ryan's Steakhouse, Banks Crossing.
Thursday, Feb. 12
Kiwanis Club meets: Noon, Com
merce Civic Center.
Cold Sassy Quilters: 1:00 p.m.,
Commerce Public Library.
Monday, Feb. 16
Hospital authority meets: 1:30
p.m., conference room, BJC
Hospital. The BJC Medical Center
Authority manages BJC Hospital
and Nursing Home.
Mended Hearts meets: 7:00
p.m., conference room, BJC Medi
cal Center. Mended Hearts is a
support group for heart patients
and their families.
Tuesday, Feb. 17
TOPS meeting: 6:00 p.m., BJC
Medical Center cafeteria. Take Off
Pounds Sensibly is a weight loss
group. Weigh-in is from 5:00 to
5:50.
Thursday, Feb. 19
Kiwanis Club meets: Noon, Com
merce Civic Center.
Town Hall Meeting: 6:00 p.m.,
Commerce Civic Center. Hosted by
the Downtown Development Au
thority for public input on the future
of the downtown.
Pilot Club meets: 7:00 p.m., First
United Methodist Church of Com
merce. The Pilot Club of Commerce
meets on the third Thursday of each
month.
Monday, Feb. 23
City planning meeting: 7:00
p.m., Peach Room, Commerce
Civic Center. The Commerce Plan
ning Commission makes recom
mendations to the Commerce City
Council on zoning and other land
use matters.
Tuesday, Feb. 24
TOPS meeting: 6:00 p.m., BJC
Medical Center cafeteria. Take Off
Pounds Sensibly is a weight loss
group. Weigh-in is from 5:00 to
5:50.
Lions Club meets: 7 p.m., Ryan's
Steakhouse, Banks Crossing.
Thursday, Feb. 26
Kiwanis Club meets: Noon, Com
merce Civic Center.
—Budget To Be Challenge For Georgia Legislature
Cont. from Page 1A
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 committee will
come up with a final docu
ment.
The process will be the
same as always, but the dif
ficulty far greater.
“We’ve got some serious
problems in our medical
establishments,’’ Benton
stated. “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 funding 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
How To Reach
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. benton@house.
ga.gov.
For information, and
links to Georgia rep
resentatives, U.S.
Congressmen, Senators
and other officials, visit
Bentons Web site at
www. tom my ben ton.
com.
at two percent, a figure that
could go to four.
“If we go to four, there
are going to be some seri
ous cuts to school systems,’’
Benton pointed out. “They
are working really hard not
to cut that. When you’ve
got $11 billion, two (addi
tional) percent, that’s a ton
of money.’’
Among the budget-related
possibilities is the transfor
mation of the budget pro
cess to zero-based budget
ing, something that has been
discussed for years. Benton
thinks the sour economy
may give legislators 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 increas
ing 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
proposed constitutional
amendment to cap proper
ty 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 popu
lar bill,’’ Benton said.
•a proposal to allow 10
votes on the death penalty
(out of 12 jurors) to make
the penalty mandatory.
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