SB 157: Empowering Georgia's Community Banks with $1 Billion in Deposits

Before the enactment of SB 157 on May 2, 2019, Georgia's community banks faced a significant challenge in competing for municipal deposits against larger money center institutions. These local banks struggled to secure these deposits, which were often dominated by larger players, limiting their ability to support the local economy effectively.

The Community Bankers Association of Georgia (CBA) proudly announces a monumental achievement: SB 157 has enabled community banks in the state to secure over $1 billion in local municipal deposits, all fully insured by the FDIC through the approved networks IntraFi and Reich and Tang Deposit Solutions. This landmark legislation marks a turning point in leveling the playing field for community banks.

CBA President/CEO John McNair reflects on this journey, stating, "For years, community banks in Georgia were at a distinct disadvantage when competing against money center institutions for municipal deposits." McNair recounts the collaborative effort led by CBA's chief lobbyist, Lori Godfrey, and himself, which culminated in SB 157 passing with unanimous bipartisan support. Illustrating the significance of the legislation, Gov. Kemp signed the bill into law at CBA headquarters in May 2019.

Beyond the legislative triumph, the tangible impact of SB 157 is profound. At current loan-to-deposit ratios, the $1 billion in deposits translates into an estimated $700 million to $850 million in new loans generated by community banks. These loans fuel local economic growth, supporting small businesses, infrastructure projects, and affordable housing initiatives.

Moreover, by directing deposits to local community banks, municipalities keep taxpayer dollars within the community, leveraging the money multiplier effect. This not only fosters economic resilience but also strengthens the fabric of local communities.

Looking ahead, SB 157 sets a precedent for continued collaboration and advocacy in support of Georgia's community banks. As these institutions continue to thrive, they will play an increasingly vital role in driving economic prosperity at the grassroots level. Projections indicate sustained growth in lending activity, further solidifying the importance of SB 157 in fostering a vibrant community banking sector.

Join us in celebrating this momentous achievement and learn more about SB 157's impact on community banking in Georgia. Visit CBA of Georgia for additional resources and stay informed about future initiatives led by the Community Bankers Association of Georgia.

SB 157 stands as a testament to the power of single constituent advocacy and collaboration in shaping policies that empower local communities. Let us continue to champion the cause of community banking, ensuring a prosperous future for all Georgians.