GA Communities First Magazine Fall 2013 by Community Bankers Association of Georgia

FALL 2013

INSIDE • Harland Clarke & CBA Celebrate 25 Years of Partnership

Official Publication of the Community Bankers Association of Georgia

• Highlights of the 45th Annual Meeting & Trade Show • Meet the 2013-2014 Board of Directors • Education Opportunities

Member:

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GEORGIA

Communities FAL L 2 01 3

FIRST

CBA STAFF

FEATURES

INSIDE

Rob Braswell President & CEO rob@cbaofga.com Steve Bridges Executive Director of Legislative & Regulatory Affairs steve@cbaofga.com

Autumn: A Season of Change for CBA and Community Banking

Highlights from the 45th Annual Meeting & Trade Show

Charlie Watts Lobbyist

Welcome Aboard 2013-2014 Board of Directors

Lindsay Greene Vice President Marketing & Member Services lindsay@cbaofga.com

Community Bankers Association of Georgia Selects James-Bates-Brannan-Groover-LLP as General Counsel

Shera Banks Marketing Coordinator shera@cbaofga.com Peake Wilson Vice President Corporate Events & Leadership Division CBA Corporate Secretary peake@cbaofga.com Teresa Day Administrative & Corporate Events Assistant teresa@cbaofga.com Jodi Swilley Director of Education & Professional Development jodi@cbaofga.com Donna Coutant Education Coordinator donna@cbaofga.com Amanda Lee Education Associate amanda@cbaofga.com

CBA Education University October Schools

Another Record Breaking Attendance at the 6th Annual Advanced BSA Officer School

CBA Announces Endorsement of Crescent Mortgage

4 ‘Exceptional’ Ways to Improve Loan Administration: Tracking Documentation Exceptions

Preparing to Succeed When Your Computer Network is Threatened

New Capital Rule Quick Reference Guide for Community Banks

S ta y co n n ecte d

Tammy Maass CFO tammy@cbaofga.com Nick Wilborn Accounting/IT Coordinator nick@cbaofga.com

page 4-9 | Highlights from the 45th Annual Meeting & Trade Show

page 10-11 | Lifetime Service Awards

page 14-15 | Harland Clarke & CBA Celebrates 25 Years

Scan with your smartphone to view our website.

page 21 | 4th Annual Georgia Bank Directors' College & FDIC Workshop a Great Success Community Bankers Association of Georgia 1900 The Exchange, Suite 600, Atlanta, GA 30339 (770) 541-4490 or (800) 648-8215 • Fax (770) 541-4496 www.cbaofga.com • cba@cbaofga.com

F a ll 2 0 1 3 | Ge o r g i a C o m m u n i t i es Fi r s t | 1

FINER

POINTS

(DOUBLE) STANDARDS OF ACCOUNTABILITY While much of the nation’s financial policy cognoscenti spent last week musing on the lessons learned since the Lehman Brothers bankruptcy, some FDIC officials spent the anniversary a little differently. Five years after the largest bankruptcy filing in U.S. history marked the Wall Street meltdown from which we are still recovering, the FDIC sued 16 community bankers from a failed bank in Georgia for nearly $22 million. It’s not the first time representatives of a failed community bank were sued for Deposit Insurance Fund losses, and it won’t be the last. And this is neither the time nor the place to prosecute or to defend these individuals. But there is nevertheless something to be gained by comparing these Main Street bankers’ week with that of Wall Street, even if it is a bit like comparing apples and oranges. In the community banking world, officials from the failed Security Bank in Macon, Ga., were publicly named in a lawsuit stemming from their bank’s July 2009 failure. Not only did regulators shut down the business, these individuals are also being sued four years later for more than $1 million each. They are accused of making faulty loans. Contrast this with what happened last week on Wall Street. JPMorgan Chase, one of a handful of megabanks that contributed to a financial crisis that caused millions of Americans to lose their homes and jobs, agreed to pay more than $1 billion in fines in a single day. The largest of its financial penalties followed the “London Whale” fiasco, in which the bank funded high-risk trades in part with federally insured deposits, lost $6 billion, dodged regulatory inquiries and hid its losses.

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By Cam Fine President & CEO Independent Community Bankers of America

With more than $1 billion in fines, JPMorgan almost looks like it got the short end of the stick. But let’s look at these penalties in context. Relative to each bank’s total assets, the Security Bank penalties are nearly 20 times bigger than JPMorgan’s. Further, these individuals would have to pay the fines out of their own pocket. For a colossus like JPM, even $1 billion is small beer. Of course, it’s hard to match these cases one to one. They are different fines for different circumstances. After all, Security Bank officials are facing the repercussions of the very failure of their bank. JPMorgan, on the other hand, is paying penalties and fines for a series of violations of the law, which seemingly occur daily. JPM and the other megabanks have already had to deal with what regulators dished out when these institutions were at the brink of failure—billions of dollars in taxpayer-funded assistance that kept them open. Meanwhile, in the eyes of the government, the little bank in Macon, Ga., was too small to save, and so are its directors. Like I said: apples and oranges. In the banking world, anniversaries—and accountability—mean different things to different people.

Autumn: A Season of Change for CBA and Community Banking

s much as I thoroughly enjoy summertime each year and all the fun that comes with it, I am always excited about the return of autumn – the crispness in the air, the beautiful fall foliage, the kick-off of a new football season and the beginning of a new school year. Autumn has always represented change to me, and since this is my first opportunity to contribute to Georgia Communities First magazine since I joined CBA of Georgia in June, I want to share some of the changes that have recently occurred as we transition into the new season. At the top of the list of changes is the retirement of Carolyn Brown after 25 years of devoted service to the CBA. Carolyn served as Executive Vice President and COO for seven years prior to serving as President and CEO of the Association beginning in 2009. Carolyn’s contributions to the betterment of CBA and community banking will be long lasting and not soon forgotten. On a personal note, I want to publicly thank Carolyn for being so welcoming and helpful when I came aboard after 30 years with the Georgia Department of Banking & Finance. I want to also thank all of you for making me feel so welcome from Day One. I am very honored and blessed to be with CBA and I couldn’t be happier. This is a fantastic organization that is poised for exceptional achievement and I look forward to working with you to make those achievements happen. As always, our core values are to serve and represent our members to the fullest extent possible. To that end, we have recently taken some steps and made some changes to enhance the services that we provide. Some of these changes include: • Realigned staff duties and streamlined procedures so that more specialized attention can be devoted to the events we sponsor, educational needs of our members, and marketing of CBA and our Associate Member services. • Held one of our Banker Regulatory Forums in Middle Georgia for the first time with a new, more interactive format. Due to the resounding success of the format and the location, we plan to hold two of the four Banker Regulatory Forums in Macon each year. • Revamped the look, content and frequency of our electronic newsletter. I hope you like it – we have received a lot of positive feedback on the more concise, news-oriented format. • Upgraded our training facility to improve students’ learning environment. • Developed plans that should enhance our legislative fundraising and marketing efforts.

Rob Braswell President & CEO Community Bankers Association of Georgia In addition, we have made plans for additional changes over the course of the next year that I think you will find exciting. Some of these include: • Converting to a larger computer software platform in order to more effectively process registrations online. • Reconfiguring and refreshing our website to make it easier to navigate and more convenient to use. • Starting two new educational programs in 2014 – more information on these new programs will be coming later this year. • Introducing, or re-introducing in some cases, several initiatives into our conventions that will definitely make them “can’t miss events”. I am also looking forward to visiting with more of our members (and prospective members) all across the state to hear their needs and how we, at the CBA, can assist them in finding solutions. In August, I conducted a three-day road trip to 10 community banks across Southwest Georgia. It was a real pleasure to meet with our bankers in their respective communities to discuss their concerns and the various initiatives we have underway at the CBA. Finally, I think the winds of change may even be blowing across this country’s economic and regulatory landscapes. More and more indicators reflect improvement in both the U.S. and Georgia economies; and I recently read two articles in which the writers warned of the dangers of costly and complex regulation of community banks. This would not be unusual except the two writers were John Stumpf, Chairman & CEO of Wells Fargo and Charles Plosser, President of the Federal Reserve Bank of Philadelphia. Regulatory relief for community banks from our nation’s capital would be a refreshing change indeed. I wish you a pleasant autumn and I hope to see you soon on one of my outreach visits or at a future CBA event. Please let me know if I can ever be of service. Best regards,

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45th ANNUAL MEETING & TRADE SHOW

A SUCCESS IN SANDESTIN Wednesday - Sunday, September 11 -15, 2013 Sandestin Golf & Beach Resort, Destin, FL

ver 250 community bankers, associate members, speakers and guests attended CBA’s 45th Annual Meeting & Trade Show at the Sandestin Golf & Beach Resort. With attendance up 30% over last year, the Annual Meeting featured terrific speakers as well as opportunities to learn and develop solid relationships through numerous networking, social and educational activities. "I’m incredibly pleased with this year’s convention,” stated Rob Braswell, President & CEO of Community Bankers Association of Georgia (CBA). "In addition to the great crowds, a sold-out exhibit floor, and a large boost in sponsorships, the positive energy throughout the convention was exceptional.” The Annual Meeting opened with the Thursday night dine-around, where attendees enjoyed fabulous food and networking with 42 exhibitors from across the country. Attendees were able to participate in the photo booth, the "Fling the Ring” Wine Bottle Ring Toss, Putt for PAC and the popular silent auction. This year’s line-up of speakers included William Isaac, Global Head of Financial Institutions, FTI Consulting; Joe Keating, Executive Vice President/Chief Investment Officer, CenterState Bank; Jim Reber, President/CEO, ICBA Securities; Jeff Gerhart, President & Chairman and ICBA Past-Chairman; Regulatory Hot Topics from Oscar Harvey, Associate Deputy

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"... the positive energy throughout the convention was

exceptional."

Comptroller, OCC; and John Henrie, Deputy Regional Director, FDIC. The keynote speaker Ken Futch was entertaining and uplifting, provoking lots of laughter from the crowd. From the trade show, to the annual golf tournament, to the spouse program "Mimosas and Masterpieces,” to the many prizes, the first-class resort and new activities, the annual meeting was highly impactful, high energy and offered attendees a wealth of knowledge and networking at its finest. Congratulations to all prize winners, including the Friday and Saturday cash prize winners, Kelly Hillis, The Bank of Perry, and Pat Frawley, Community & Southern Bank, Atlanta. The Saturday night reception and banquet featured beach-themed music from the Splash Trio. The program Saturday evening included sponsorship appreciation, an update on PAC/ PR fundraising efforts, presentation of the Lifetime Service Awards, a special presentation from ICBA to recently retired CBA CEO Carolyn Brown, a tribute to Jerry Harrell, the Chairman’s Farewell Address, and Incoming Chairman’s Acceptance Speech.

Thank You, Sponsors PLATINUM

PLATINUM ELITE

BRONZE

SILVER

INDIVIDUAL EVENT SPONSORS Board Appreciation Dinner

Convention Program, Friday and Saturday Cash Prizes

Economic Update Joe Keating

Board Appreciation Reception

In-Room Gifts and Name Badges

Friday Break

Friday Promotional Materials

Friday Breakfast

Saturday Promotional Materials

Saturday Night Chairmanâ&#x20AC;&#x2122;s Banquet

Board Transportation and Tote Bags

Convention Signage

Registration Packets and Bottled Water

Saturday Breakfast

Golf Prizes

STOKES LAZARUS & CARMICHAEL LLP AT T O R N E Y S AT L AW

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Hotel Key Cards

Golf Tournament Beverage Cart

Keynote Speaker Ken Futch

General Sponsorship

Thursday Night Photo Booth

Saturday Breaks

Welcome Refreshments

Thank You, Exhibitors ACG Banc Consulting Partners banc-serv PARTNERS, LLC BankSmart BranchServ Card Assets, LLC CashTrans CBIZ Collateral Evaluation Services, LLC Computer Services, Inc. (CSI) Consultants & Builders Crescent Mortgage Company CSRA Business Lending Data Center, Inc. (DCI) Dell SecureWorks DeNyse Companies Dragnet Solutions, Inc. FEDCorp First Data GA Resource Capital, Inc. High Cotton

Homeowners Mortgage Enterprises, Inc. ICBA Securities Independent Community Bankers of America INFO-PRO Mortgage Services Invictus Consulting Group IS Audits & Consulting, LLC Jack Henry & Associates Meyer Chatfield Compensation Advisors Mortgage Services III, LLC Promontory Interfinancial Network QwickRate Renasant Bank Mortgage Lending Sageworks Saltmarsh, Cleaveland & Gund SHAZAM Travelers UMS Banking VINtek, Inc. Warren Averett, LLC WorldPay US, Inc.

HIGHLIGHTS:

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2/19/13 2:07 PM

Annual Golf Tournament a Big Success! Played on Sandestin’s Links Course, CBA’s Annual Golf Tournament was a successful one boasting 52 players. The course winds its way around the Choctawhatchee Bay on the northwestern portion of the Sandestin property. All golfers had a wonderful time catching up with old friends, meeting new ones and networking with each other. The tournament beverage cart was sponsored by Gulf Coast Business Credit. The golf awards were presented by sponsor, Jim Reber of ICBA Securities (who also spoke and exhibited at the Annual Meeting), during Saturday morning’s general session. Dan Oliver, President & CEO, Vinings Bank, Smyrna and CBA 20122013 Chairman, said after the tournament, "Blue skies, cool drinks, good fellowship, and golf in paradise on a beautiful day. The course was bathed in sunshine and surrounded by blue water. Whether you were on your game or not, you couldn’t help but enjoy the day.” The CBA appreciates the support of all those involved and is thrilled to have hosted such a successful golf outing.

Pictured L to r: Congratulations to the 1st Place Team - Tim Souther, GA Resource Capital, Inc, Suwanee; Ray Muggridge, Bank of Camilla; Steve Davis, The Citizens State Bank of Taylor County, Reynolds; Matt Eicholtz, GA Resource Capital, Inc, Suwanee.

Pictured L to r: Congratulations to the 2nd Place Team - Mark Fucci, SHAZAM, Alabaster, AL; Jim Reber, ICBA Securities, Memphis, TN; Rhodes McLanahan, First American Bank & Trust, Athens; Chris Wright, CenterState Bank, Atlanta; Todd Ceman, Info-Pro Mortgage Services, Fond Du Lac, WI

Toss, Putt & Bid for PAC! The CBA's always popular Silent Auction, the new Fling the Ring Wine Bottle Ring Toss and the new Putt for PAC proved to be very successful at the 45th Annual Meeting & Trade Show. Contributing to CBA’s PAC/PR funds is of vital importance to the industry we serve as it affords us to have a strong, clear voice in the Georgia Legislature. CBA expresses our sincere appreciation to all who participated and had fun in this year’s efforts. The Silent Auction, Fling the Ring and Putt for PAC raised over $7,000 for CBA’s PAC/PR funds. The CBA of Georgia thanks all who donated and purchased items for the Silent Auction and Wall of Wine fundraiser.

Special Recognition

The Community Bankers Association of Georgia (CBA) recognized Donna Coutant, Education Coordinator, CBA of Georgia, Atlanta, with an engraved plaque for her 15 years of service at the Association. Pictured left to right: Rob Braswell, President & CEO, CBA of Georgia, Donna Coutant, and Carolyn Brown, CBA of Georgia.

Jerry Harrell, Partner, Martin & Snow, LLP, Macon, was recognized for his many years of service to CBA and to the banking industry at CBA’s Annual Meeting in Sandestin. Dan Oliver, President & CEO, Vinings Bank, Smyrna and 2012-2013 CBA Chairman, presented Jerry with a resolution and gift. Pictured left to right: Rob Braswell, Jerry Harrell, and Dan Oliver.

David Moore, Southeast Regional Director for Independent Community Bankers of America (ICBA), made a special presentation to Carolyn Brown, recently retired President & CEO of CBA. David thanked Carolyn for her many years of service to the community banking industry and presented her with a framed photo of the U.S. Capitol.

F a ll 2 0 1 3 | Ge o r g i a C o m m u n i t i es Fi r s t | 9

Celebrating a Li O

n Saturday, September 14, 2013 during the Chairman's Banquet at the 45th Annual Meeting & Trade Show, the CBA honored bankers who have reached milestones in their careers. The honorees included Wayne Sirmons, First National Bank of Decatur County, Bainbridge, President & Director — 34 years; Andy Walker, CEO, Alliance National Bank, Cumming — 39 years; Joe Gore, First State Bank, Wrens, President & CEO — 43 years; Tom Martin, Gwinnett Community Bank, Duluth, Chairman & CEO — 50 years; and, Ed Morris, Famers State Bank, Dublin, CEO — 51 years. Honorees were recognized at the Annual Meeting and CBA is still continuing to make presentations across the state.

to provide a new generation of community bankers.” Dan Oliver, President & CEO, Vinings Bank, Smyrna, and 2012-2013 CBA Chairman, presented the awards and gave a brief bio on each recipient present at the banquet. All of the honorees received an engraved plaque from the CBA, and a press release and photo was shared with their local media. Honorees will be featured on the CBA’s website and in the CBA Today eNewsletter. In addition to the plaque, honorees with 50 or more years in the banking industry received a customized gold and diamond lapel pin.

"... It’s our pleasure to recognize their legacy and the inspiration they continue to provide a new generation of community bankers.”

This year's recipients who represent hundreds of years of collective service to the banking industry. "It’s an honor to recognize the men and women who have served the banking needs of their respective communities throughout their distinguished careers. Our state is very fortunate to have so many dedicated community bankers reach these impressive milestones," stated Rob Braswell, President & CEO of the Community Bankers Association of Georgia. "It’s our pleasure to recognize their legacy and the inspiration they continue

If you would like to recognize a banker in 2014 who has 30 or more years of banking experience and a proven record of dedicated community service, please contact Peake Wilson at the CBA office, (770) 541-4490 or peake@cbaofga.com to obtain the details on our recognition program.

Scenes from the 2013 Lifetime Service Award Presentations at the Chairman's Banquet

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ifetime of Service 2013 Lifetime Award Recipients

Wayne Sirmons President & Director First National Bank of Decatur County, Bainbridge 34 years

Andy Walker CEO Alliance National Bank, Dalton 39 years

Pictured l to r: Ron Francis, Chairman of the Board, Leigh Pharr, Senior Vice President — 32 years, Renee White, Senior Vice President — 32 years from First Landmark Bank, Marietta; and Rob Braswell, President & CEO, CBA of Georgia, Atlanta.

Michael T. Underwood Executive Vice President First Citizens Bank of Georgia, Dawsonville 32 years

Samuel W. Beall President and CEO Bank of Dudley 34 years

Joe Gore President & CEO First State Bank Wrens 43 years

Trenda Cordell Data Processor Bank of Lafayette 30 years

Henry Gilbert President Bank of Lafayette 30 years

Judy Middlebrooks Teller Bank of Dudley 34 years

Jane Frederick Vice President and Branch Manager Bank of Dudley 35 years

Tom Martin Chairman & CEO Gwinnett Community Bank, Duluth 50 years

Carol White Branch Manager and Loan Officer Bank of Dudley 30 years

Clifton Crews Senior Vice President Bank of Dudley 41 years

Ed Morris CEO Famers State Bank, Dublin 51 years

Ruth Anne Bryant Switchboard/ "The Voice of Bank of Dudley" Bank of Dudley 31 years

James Pope President and Chief Executive Officer KeyWorth Bank Johns Creek 40 years

Gloria Ikner Compliance/ BSA Officer, Bank of Dudley 31 years

Shirley Clements Mortgage Loan Processor Bank of Dudley 45 years

When you exceed your onboarding by more

goals

than 200%, it’s not luck.

It’s Harland Clarke. harlandclarke.com/onboarding

Working with Zions Bank®, Harland Clarke developed an award-winning program designed to reduce customer attrition while increasing wallet share and positive brand engagement. Zions Bank saw a six-to-one return on its investment, a 96% retention rate and a 40% increase in deposits — exceeding goals by more than 200%. The program won the 2011 Database Marketing Gold Award from the National Center for Database Marketing (NCDM). When it comes to onboarding and other marketing services, it takes more than the flip of a coin to determine success.

Harland Clarke Marketing Services. Leave nothing to chance.

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contacthc@harlandclarke.com

CBA Announces 2013-2014 Board of Directors Charlie Curry, First State Bank of Randolph County, Cuthbert, was installed as the 2013-2014 Chairman of the Community Bankers Association of Georgia (CBA) during the 45th Annual Meeting & Trade Show at Sandestin Golf & Beach Resort, Destin, FL. His term will begin October 1, 2013. Board members are selected from ten divisions across the state of Georgia, ensuring all Georgia community banks are equally represented. Board members are elected to a one-year term which begins October 1st of each year. During the course of the year, Directors will be involved in a number of items on behalf of the CBA membership, such as responding to proposed rules and regulations from the various regulatory agencies, reviewing numerous products & services which will benefit the community banking industry as well as consumers, and weighing in on proposed legislation. “Our membership has elected some of Georgia’s most qualified banking executives to serve on the CBA board,” commented Rob Braswell, President & CEO of the Community Bankers Association of Georgia. “Their experience, insight and leadership will be invaluable to our Association in the coming year. We appreciate their commitment to the community banking industry and this great state.”

Charlie Curry, President & CEO, First State Bank of Randolph County, Cuthbert, 2013-2014 Chairman and Dan Oliver, President & CEO, Vinings Bank, Smyrna, 2012-2013 CBA Chairman

Congratulations to the newly elected Board of Directors: Chairman …………………………….. Chairman-Elect…………………….. Vice Chairman……….…………….. Treasurer……………………………… At Large……………….…………….… Immediate Past Chair……………. Division 1 Chairperson….…..….. Division 2 Chairperson…………… Division 3 Chairperson…………… Division 4 Chairperson………….. Division 5 Chairperson………….. Division 6 Chairperson…………… Division 7 Chairperson………….. Division 8 Chairperson…........… Division 9 Chairperson………….. Division 10 Chairperson…………

Charlie Curry, First State Bank of Randolph County, Cuthbert Dale Morris, First National Bank of Coffee County, Douglas Ed Cooney, Affinity Bank, Atlanta Lisa Lane, State Bank & Trust Company, Macon Eddie Selph, The Merchants & Citizens Bank, McRae Dan Oliver, Vinings Bank, Smyrna Jimmy Dubberly, South Georgia Bank, Glennville Charles Rooks, Family Bank, Pelham Derek Williams, Columbus Community Bank George Lazenby, Newton Federal Bank, Covington Elliott Miller, Georgia Banking Company, Atlanta Henry Pope, Exchange Bank, Milledgeville David Caswell, Century Bank of Georgia, Cartersville Tim Jones, Citizens Community Bank, Valdosta Drew Walker, Alliance National Bank, Cumming Harold Reynolds, BankSouth, Greensboro Paul Bennett, Alma Exchange Bank, Alma - Ex-Officio (ICBA)

MEMBERS AT LARGE...……....... Pat Blanchard, First Bank of Georgia, Augusta Charles Buckner, First Citizens Bank of Georgia, Dawsonville Len Dorminey, HeritageBank of the South, Albany David Fain, Commercial State Bank, Donalsonville Joe Gore, First State Bank, Wrens Dr. Neel, Quantum National Bank, Suwanee Brad Serff, Providence Bank, Alpharetta Scott Tomlinson, Flint Community Bank, Albany Rhodes McLanahan, First American Bank & Trust, Athens Rob Braswell, CBA of Georgia, Atlanta Corporate Secretary: Peake Wilson, CBA of Georgia, Atlanta F a ll 2 0 1 3 | Ge o r g i a C o m m u n i t i es Fi r s t | 13

C E L E B R AT I N G

Years

of Partnership

Harland Clarke & CBA of Georgia Celeb

arland Clarke and Community Bankers Association of Georgia (CBA) are celebrating a milestone in their shared efforts to bring outstanding benefits and extra value to members of CBA member banks. Recognized for more than a century as a leading provider of checks and related products, Harland Clarke offers a broad portfolio of strategic solutions to help community banks meet the needs of customers while generating revenue. CBA’s relationship with Harland Clarke began in 1988 with one of its legacy companies, the John H. Harland Company. The goal of that alliance was to provide member banks with cost savings on checks. Within a few months of the Harland and CBA check program’s launch, a majority of Georgia’s community banks were using Harland. A huge benefit to the member banks is the savings on check-printing costs more offset their CBA member dues. During the subsequent years, interest in the program continued to grow. When Clarke American merged with Harland in 2007 and formed Harland Clarke, the program with CBA also expanded and began offering more opportunities to CBA member banks. In addition to its check

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channel (which most recently launched the innovative CheckFolioTM packaging), Harland Clarke provides institutions with a broad range of strategic solutions through its Marketing Services line of business. These include forms, statements, cards,

CEO of Community Bankers Association of Georgia. “During our 25-year history, the Harland Clarke alliance has continued to remain extremely popular with our bankers.”

"Member banks participating in Harland Clarke’s programs have realized significant benefits."

Shannon Fortson, Executive Vice President & Chief Credit Officer, Pinnacle Bank, Elberton commented on his bank’s relationship with Harland Clarke. “For over seven years, Harland Clarke has consistently provided accurate and timely check printing services to Pinnacle Bank. Their web based ordering solution is easy to navigate and always available. Our Senior Account Manager provides answers to questions usually within an hour. In addition, we recently implemented debit card instant issue in our branches with their Card@Once solution and customers are delighted!”

communications, direct marketing (mail and digital), bench marketing, segmentation and other data and analytic services, contact center solutions, and more — all designed to meet the changing needs of the community banks.

Donna Chambers, Senior Vice President & Marketing Director of Pinnacle Bank, added “We are currently reviewing the Shopper Alert program for loan marketing. I consider them a strategic partner due to the multitude of solutions they bring to the table to assist us in achieving our goals.”

“Member banks participating in Harland Clarke’s programs have realized significant benefits,” said Rob Braswell, President &

Harland Clarke offers member discounts on its check-printing program as well

Harland Clarke’s Tradition of Service & Excellence Harland Clarke was formed in 2007 as a result of bringing together two recognized companies committed to serving the needs of financial institutions. The actual roots of the company date back to 1874. That was the year Samuel Maverick established his printing company in San Antonio, Texas. Its next owner and namesake, Robert Clarke, significantly expanded what the company manufactured and sold to also include bank checks and forms. The company became known for its attention to detail and craftsmanship.

brate Silver Anniversary Silver as significant savings on other select services. For more information, contact Ryan Busenitz, Account Executive, Community Markets Division, Harland Clarke, Rya n . B u s e n i t z @ h a r l a n d c l a r ke . co m , (678) 595-0625 or Doyle Baker, Account Executive, Community Markets Division, Harland Clarke, Doyle.Baker harlandclarke.com, (678) 382-1446.

Anniversary

Nearly 50 years after Clarke American’s initial beginnings, an Irish immigrant to Atlanta founded a printing company to produce stationary and business forms. The fate of John H. Harland’s firm was changed a mere decade later during the Great Depression when the Atlanta Clearing House decided to issue emergency certificates to be used should there be a customer run to withdraw funds. It awarded the contract to Harland on the condition that it deliver the three million scripts in one week. Although the certificates were never used in 1933, area banks were impressed with the feat and asked Harland to add check printing to its forms business. In 2013 Harland Clarke is a corporation still recognized for its high standards, quality processes, outstanding customer service and commitment to delivering results for its clients. The organization today provides a portfolio of solutions designed to help its more that 11,000 financial institution clients better support their customers and drive their own success. Harland Clarke Marketing Services (HCMS) delivers numerous offerings through the primary channels of Direct Mail, HC Digital and Contact Center Solutions, as well as related products and services that extend the value delivered; these include Creative Services, Analytics, Survey and Research Services, Content and Learning Services and Card Services. All help deliver on Harland Clarke’s value proposition of acquiring, retaining and growing customer relationships. As part of the larger Harland Clarke Holdings Corp., Harland Clarke offers exposure to an even wider range of relevant solutions through sister companies that include Harland Financial Solutions, a recognized provider of technology products and related services to financial institutions.

Celebrating 25 Years -- Doyle Baker, and Ryan Busenitz, Account Executives, Community Markets Division, Harland Clarke, meet with Rob Braswell, President & CEO, Community Bankers Association of Georgia

For nearly 140 years Harland Clarke has been an essential part of the financial services arena, providing excellent products and services delivered through outstanding customer service. F a ll 2 0 1 3 | Ge o r g i a C o m m u n i t i es Fi r s t | 15

Community Bankers Association of Georgia Selects JamesBates-Brannan-Groover-LLP as General Counsel The Community Bankers Association of Georgia (CBA) is pleased to announce its selection of the law firm of James-BatesBrannan-Groover-LLP (JBBG) as CBA General Counsel, effective October 1, 2013. JBBG was chosen by CBA after an extensive selection process. “We are excited about our new partnership with JBBG and the expanded services it will provide our member banks. Some examples of expanded services are a revitalized complimentary ‘CBA Legal Hotline’ and weekly and quarterly legal news, information and analysis of interest to our members,” stated Rob Braswell, President & CEO of CBA. “It is clear that JBBG’s community bank team understands community banks and the regulated environment in which community banks operate. With offices in Atlanta and Macon, we are confident that JBBG will add value to CBA’s commitment to constantly enhance our service to member banks throughout Georgia,” continued Braswell. “It is a privilege for our firm to help CBA in accomplishing its mission and, in doing so, help member banks serve the communities in which they operate throughout Georgia. We appreciate very much the opportunity to do so,” commented Dan Brannan, head of JBBG’s community bank practice group. James-Bates-Brannan-Groover-LLP is a fullservice business law firm with offices in Atlanta and Macon. The firm delivers high-quality, cost-effective legal services for a wide variety of individuals and businesses throughout Georgia. JBBG’s community bank practice group represents a significant number of community banks and community bank holding companies throughout Georgia. JBBG’s services cover every dimension of activity related to the business of community banks, from the board room to the bank branch. For more information about James-Bates-Brannan-Groover-LLP, or visit www.jamesbatesllp.com.

CBA OF GEORGIA

LEGAL

HOTLINE

(404) 844-2765

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CBA October Schools The Community Bankers Association of Georgia presents

Lending Compliance School

Monday – Thursday, October 21-24, 2013 Brasstown Valley Resort & Spa | Young Harris, Georgia

he curriculum for this school is designed for all community bank staff with lending compliance responsibilities and provides the most effective compliance training available. The first three days of the school will focus on lending regulations with an emphasis on mortgage transactions. The last day of the school will focus on an overview of the final Dodd-Frank Act provisions, which become effective January 2014. During the past two years, the Consumer Financial Protection Bureau (CFPB) has been aggressively releasing proposals, final rules, and revisions to final rules related to the mortgage loans. Keeping up with these changes has been challenging, making compliance with federal lending regulations a demanding task and ongoing training essential. This new lending compliance school helps financial institutions meet those challenges by providing intensive training on the various lending regulatory requirements. The CBA Lending Compliance School was developed in close conjunction with Professional Bank Services (PBS), Louisville,

KY, who is also the compliance provider for the popular CBA Compliance Membership Program. PBS speakers are nationally recognized and they provide compliance expertise to financial institutions throughout the country. The school curriculum includes prominent federal lending regulations covered in on-site compliance examinations by federal regulatory agencies. The CBA invites you to make plans now to attend the only lending compliance school designed specifically for community bankers! You may elect to attend the entire school or you may elect to attend only the three day Lending Module or the one day Dodd-Frank Act Update Module. To learn more and to register, visit the CBA website or contact the CBA University Education Department at education@cbaofga.com.

The Community Bankers Association of Georgia presents

2013 Consumer Lending School

Monday - Friday, October 28 - November 1, 2013 Julian Hester Training Center at CBA Headquarters, Atlanta

his comprehensive, 4 ½ day school of consumer lending will take the student through the process of consumer lending to develop and advance the skills necessary to administer quality consumer loans. The school is the only consumer lending school in Georgia specifically designed for community bankers. The CBA invites you to register today for the highly acclaimed Community Bankers Association of Georgia's Consumer Lending School, and come learn from industry experts while networking with other community bank loan officers. To learn more and to register, visit the CBA website or contact the CBA University Education Department at education@cbaofga.com.

Areas of Study

• Trends, Indicators, Environment & Principles of Consumer Lending • Consumer Loan Compliance & Review of Consumer Bankruptcy • Loan Applications, Investigation and Loan Interviewing • Consumer Investigation - Credit Bureau Reports & Credit Scoring • Consumer Loan Case Study • The Decision Process and Consumer Loan Documentation • Lending to the Self-Employed Borrower • Building Profitable Relationships and much more! F a ll 2 0 1 3 | Ge o r g i a C o m m u n i t i es Fi r s t | 17

KNOW CAN DO.

“Can do” drives the American recovery. But “can do” has to be more than attitude. Somewhere along the line, “can” has to become “will.” Every AloStar correspondent banker has worn community bank shoes; so we understand the challenges you face. But, we also have the resources to guide you in today’s challenging regulatory environment, and the knowledge it takes to convert “can do” to “will do.” It’s what we call KnowHow. And it’s what sets us apart. CORRESPONDENT SERVICES-

BALANCE SHEET MANAGEMENT | BOND ACCOUNTING | INVESTMENT STRATEGIES

BROKERED CERTIFICATES OF DEPOSIT | CLEARING FUNDS MANAGEMENT | FED FUNDS | INTERNATIONAL SERVICES | SAFEKEEPING

ADVISORY SERVICES-

MEMBER FDIC

STRATEGIC BALANCE SHEET MANAGEMENT | STRATEGIC PLANNING | PROFITABILITY ENHANCEMENT

K N O W M O R E : C B S . A LO S TA R B A N K . C O M | 8 6 6 - 2 1 9 - 9 0 3 5

Another Record Breaking Attendance at the 6th Annual Advanced BSA Officer School! The 6th Annual CBA Bank Secrecy Act (BSA) Officer School was held July 30-August 2, 2013 at the King & Prince Beach Resort in St. Simons Island. Over 70 community bankers from across the state attended this informative 3 ½ day school. In addition, seven community bankers were recognized at the School for attending all six years of the CBA Advanced BSA Officer School. The faculty for the school included industry experts from government agencies such as the OCC, FDIC, Homeland Security and the US Attorney’s Office. Other faculty members were from CBA associate member

companies such as Nichols Cauley & Associates LLC; James-BatesBrannan-Groover LLP; Crowe Horwath LLC, Performance Solutions, Inc., MSB Compliance, Inc., and Banker’s Toolbox. “One major requirement of the BSA/AML Act is for each financial institution to designate a BSA Officer and to ensure the BSA Officer is well-trained and qualified to carry out the duties of this important position. We believe this school provides a unique, interactive training environment to assist community banks in meeting this goal,” said Rob Braswell, President and CEO of the Community Bankers Association. The 7th Annual CBA Bank Secrecy (BSA) Officer School will be held Tuesday-Friday, August 5-8, 2014 at the King & Prince Beach Resort in St. Simons Island. Please SAVE THE DATE!

Star Students (Attended all six years of school) L to R: Donna Kelley, First National Bank of Decatur County, Bainbridge; Anna Mullis, Farmers & Merchants Bank, Eatonton; Sharon Haire, Glennville Bank; Elizabeth Nobles, Glennville Bank; Reba Woodcock, Glennville Bank; Melody Halloran, WB&T Bank Shares, Valdosta and Marsha Peters, Newton Federal Bank, Covington.

FREE WEBINAR Money Facts: The New $100 Bill The first line of defense against counterfeiters is a well-trained frontline. Tellers and other staff who handle currency have to know their money! Today's technology and sophisticated criminals make counterfeit currency more and more difficult to detect. The Federal Reserve Bank knows this, too. For only the fourth time in the history of US currency, there will be a new $100 bill debuting on October 8, 2013. The bill is designed to make it easier to authenticate, but harder to duplicate. This free webinar will cover the new security features and everything the frontline needs to know about the new $100 bill. This informative session is designed for every staff member in the financial institution. The CBA is pleased to offer this informative webinar in partnership with the Community Bankers Webinar Network. Register today! This free webinar is currently available for a limited time only. To gain access to the web link, please contact the CBA University Education Department at education@cbaofga.com.

Make plans now to attend a Banker Regulatory Forum! 2013-2014 Schedule Thursday, November 7, 2013 JHTC, CBA Headquarters, Atlanta Thursday, February 6, 2014 Idle Hour Country Club, Macon Thursday, May 1, 2014 Vinings Bank, Smyrna Thursday, August 7, 2014 Idle Hour Country Club, Macon Thursday, November 6, 2014 JHTC, CBA Headquarters, Atlanta F a ll 2 0 1 3 | Ge o r g i a C o m m u n i t i es Fi r s t | 19

WEBINARS

Affordable, Professional Training, When and Where You Choose!

he CBA recognizes your schedule may not always allow you to leave your office to participate in a face-to-face program. One way to help you with this challenge is to participate in one or more of the over 100 webinars offered by the CBA each year! The webinars cover a variety of topics designed for the frontline to the board room! Industry experts from across the nation with long-term, real-life, hands-on experience are selected to lead the webinars. For those who cannot attend the "liveâ&#x20AC;? broadcast, a web link training option is available to access at your convenience. The web link consists of a recording of the live broadcast along with speaker handouts. The web link is available for six months from

the date of the webinar and may be shared with other employees at no additional fee. Plus, a complimentary CD Rom is included. Continuing Professional Education (CPE) credits are available to participants. To learn more about the topics being offered in 2013 and the various training options, please visit the CBA website or contact the CBA Education Department.

OCTOBER 2013 10/8 Debt Service Coverage Calculations in Underwriting 10/10 Recent Accounting Developments & a Look Ahead 10/16 Critical Risk Factors in Loan Portfolio Management 10/17 New CFPB Mortgage Servicing Rules Effective January 10, 2014: Community Bank Considerations in Moving Balloon to ARM Loans 10/22 Dealing with Adverse Action: What to Do & When to Do It 10/24 Perfection of Security Interest in Non Real Estate Collateral & Proper Foreclosure Procedures After Default 10/29 Advanced Facebook Strategies for Community Banks 10/31 HMDA Solutions: Achieving Data Integrity for Effective Fair Lending Analysis

NOVEMBER 2013 11/5 11/6 11/7 11/13 11/14 11/19 11/20 11/21 11/25 11/26

Business Signature Cards & Resolutions: Entities, Authority & Documentation FDIC Records & Related Email Retention Rules Mobile Payments for Community Banks: Impacts, Choices & What to Do Next Commercial Loan Annual Credit Review Documenting Your Strategic Plan Years 1, 3 & 5: Meeting Examiner Expectations What You Need to Know about Guarantors, Co-Signers, Personal Guarantees & Joint Applications Simplifying the Compliance Function: Tools, Checklists & Reporting to Keep You on Track Fair Labor Standards Act: Dos & Donâ&#x20AC;&#x2122;ts of Exempt & Non-Exempt Pay Issues New CFPB Mortgage Servicing Rules Effective January 10, 2014: What Community Banks Must Do to Comply Form 1099 Reporting: Third-Party Vendors, Foreclosure, Debt Forgiveness & More

DECEMBER 2013 12/3 12/4 12/5 12/10 12/11 12/12 12/17 12/19

Mandatory Compliance Series: A Fresh Look at Robbery Preparedness Introduction to Call Reports Avoiding Liability in the Collection Process Compliance Update on Nonresident Alien Accounts: Opening, Tax ID Numbers, IRS Issues & More Handling IRA Required Minimum Distribution & Roth Distribution Documenting Your Required Information Security Program 12 Steps to Effective Expense Control: Practical Techniques for Cutting Costs & Increasing Profits Regulation E Versus ACH Rules: Which One Prevails?

Note: Dates/Topics subject to change. 2 0 | w w w . cbaof ga. com | F a l l 2 0 1 3

The 4th Annual Georgia Bank Directors' College & FDIC Workshop a Great Success! On August 14, 2013, at the Lodge and Spa at Callaway Gardens, a large number of community bank directors from across the state came together to learn and to network at this annual one-day program designed specifically for Georgia community bank directors. "This program provided an excellent opportunity for community bank directors from various size banks to meet other bank directors, to learn current issues facing community banks and to better understand how regulators determine a CAMELS rating for a bank,” said Rob Braswell, President/ CEO, Community Bankers Association (CBA) of Georgia. The CBA appreciates the valuable time provided by Tom Dujenski, Regional Director, FDIC, Atlanta and Frank Gray, Assistant Regional Director, FDIC, Atlanta, and Mark Kanaly, Partner and Chair of Banking Practice, Alston+Bird LLP, Atlanta, to develop and deliver such an outstanding program for Georgia community bank directors! The CBA also appreciates the sponsors and exhibitors who helped to make this important program such a success!

Thank You, Sponsors! Continental Breakfast JR Llewellyn, Meyer-Chatfield Compensation Advisors Greensboro Lunch Pat Frawley, Community and Southern Bank, Atlanta Afternoon Break R. J. Fields, Fearnley & Price Atlanta Name Badges Rik Lane, ServisFirst Bank Birmingham, AL Portfolios Mark Kanaly, Alston + Bird LLP Atlanta Promotional Signs: Allen DeNyse, DeNyse Companies, Douglasville Thank You, Exhibitors! Alex Hager Saltmarsh, Cleaveland & Gund Pensacola, FL Ancin Cooley Synergy Bank Consulting Inc. Elgin, IL Jim Washburn The Cadence Group, Inc., Atlanta

Scenes from the August 14th Bank Directors' College & FDIC Workshop

Announcing the 4th Quarter CBA Compliance Program Topic: Georgia Deposit Documentation Five Convenient Cities

December 10 - Brunswick; December 11 - Albany; December 12 – Macon; December 17 – Rome; December 18 - Duluth What is the difference between "joint with rights of survivorship" and "tenants in common"? What is a revocable living trust and how do we document it? Do we really need a corporate resolution? How do we open accounts for minors? Have you or someone at your institution asked these questions and others like them? If so, then this is a must-attend one-day program. The focus of this compliance program is on the day the account is opened. The speaker will provide hard to get state law requirements for ownership and documentation. Attendees will learn the "why" behind standard operating procedures and the program will also cover CIP procedures and IRS Reporting compliance issues. This is a comprehensive seminar developed for new accounts personnel, auditors, bookkeepers, operations officers and others who have responsibility for administering customer accounts. It is a fastpaced introduction for the new employee who needs an overview

of deposit accounts and is designed to "tie everything together" for experienced personnel. No advance preparation is required. The manual and the presentation suggest the procedures for standardizing the account opening process. The speaker uses "plain language" and "real-world" examples. Attendee participation is encouraged throughout the program. The CBA invites you to consider attending this informative program. Continuing Professional Education (CPE) credits are available to participants. To register for a city most convenient for you, please visit the CBA website or contact the CBA University Education Department.

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Member Services News:

CBA Announces Endorsement of Crescent Mortgage The Community Bankers Association of Georgia (CBA) is pleased to announce the endorsement of Crescent Mortgage Company, for secondary market mortgage services. The Community Bankers Association conducts an extensive duediligence before selecting a company as an Endorsed Member Company (EMC). Crescent Mortgage Company earned the approval of both CBA’s Member Services Committee and the Board of Directors. "We are pleased to announce this strategic partnership with Crescent Mortgage Company,” stated Rob Braswell, President & CEO of the Community Bankers Association of Georgia. "One of CBA’s primary objectives is to provide CBA member banks with quality products and services that will help them operate more efficiently. Our members can have peace of mind using Crescent Mortgage Company knowing the company has been thoroughly researched by their peers across the state.” Crescent Mortgage Company’s products include Fannie Mae, Freddie Mac, FHA, VA, USDA, Jumbo and one time close construction to permanent financing. Crescent Mortgage offers Wholesale and Correspondent lending options, contract processing, free training, as well as free access to loan origination, compliance and automated underwriting systems. "I speak on behalf of the entire Crescent Mortgage Company family when I say how honored we feel to become an Endorsed Member Company for the Community Bankers Association of Georgia offering Secondary Mortgage products and services,” commented Fowler Williams, CMB, President and Director, Crescent Mortgage Company. "I promise the association and all of its members, we do not take this responsibility lightly.”

Board of Directors, staff, and all of its member banks who have given us this opportunity.” "Mortgage lending and community banking have both endured many changes over the last few years. We hope member banks will find Crescent Mortgage Company a valuable and reputable partner in realizing the significant opportunities that exist in mortgage lending when you do it correctly,” stated Mr. Williams. For more information, visit www.crescentmortgage.com or contact Ashli Matson, Georgia Community Bank Account Executive at (770)714-5417 or amatson@crescentmortgage.net.

Our banking professionals are dedicated to finding the best answers for you. And admittedly, we believe that not everything has to be a complicated equation. So we employ the latest data mining techniques to ensure efficiency and overall quality.

"Twenty years ago, Crescent Mortgage Company was founded in Georgia to offer community banks mortgage products and services. We have been proud to be an Associate Member of the CBA our entire existence. We would like to take this opportunity to thank Rob Braswell, President and CEO of CBA, as well as the CBA

STAY CONNECTED to all things CBA! CRIcpa.com blog.cricpa.com

Find us on Facebook and LinkedIn. 2 2 | w w w . cbaof ga. com | F a l l 2 0 1 3

CBA Welcomes New Associate Members The Community Bankers Association of Georgia (CBA) would like to welcome new Associate Members which were recently approved at the Board of Directors Meeting. Throughout the year, the Board of Directors approves quality vendors who provide products and services to CBA members. For more information on becoming an associate member, contact Lindsay Greene at lindsay@cbaofa.com. Aldridge/Connors Law Firm, LLP, Legal Firms Kyle McMahan, Atlanta, GA

FEDCorp, Data Processing Services David Shaginaw, Daphne, AL

All Real Estate Services, LLC, Real Estate Services Ellen McNeel, Marietta, GA

GA Resource Capital, Inc., Alternative Funding Tim Souther, Suwanee, GA

Berryfield Hotel Group, LLC, REO Receivership Consulting F. Stephen Hartsfield, Atlanta, GA

Hogan Risk Consultants, Risk Management Mike Hogan, Buffalo Valley, TN

Card Assets, LLC, Credit Card Services Mindy Parker, Atlanta, GA

Intrepid, Insurance Services Liz Frayer, Atlanta, GA

CBIZ, Insurance Services Kris St. Martin, Atlanta, GA

Magellan Planning Group, Inc., Financial Services J. Kevin Meaders, Atlanta, GA

Clarity Appraisal Management, Appraisal Management Jason Bennett, Nashville, TN

Mortgage Services, III, Mortgage Services Donald Starks, Bloomington, IL

Community Bankers Mortgage Group, Mortgage Services Pete Hodo, Birmingham, AL

Promontory Interfinancial Network, Financial Services Danny Capitel, Arlington, VA

Dragnet Solutions, Inc., Data Processing Services Gregory Cote, Novato, CA

Quirk & Quirk, LLC, Legal Firms Joseph Farrell, Atlanta, GA

Equity Loans, LLC David Abrahamson, Atlanta, GA

Robley Rigdon, LLC, Bank Management Services Robley Rigdon, Snellville, GA

Fairway Independent Mortgage Corporation, Mortgage Services, Travis Newberry, Alpharetta, GA

The Cadence Group, Inc., Compliance James Washburn Atlanta, GA

Fallon Benefits Group, Insurance Services Ted Schweers, Atlanta, GA

T. Houston Technology Group, Financial Services Thomas Houston, Alvin, TX

Macey Wilensky has moved to SunTrust Plaza New Address 303 Peachtree Street SunTrust Plaza, Suite 4420 Atlanta, GA 30308 404-584-1200 www.maceywilensky.com

One of Atlanta’s premiere boutique law firms, Macey, Wilensky & Hennings, LLC, is pleased to announce it has moved to a new location on the 44th Floor of SunTrust Plaza to allow for continued growth of the firm. Over recent years, the firm has expanded to include vibrant real estate, tax and entertainment law practices. The Firm’s new office address is 303 Peachtree Street, SunTrust Plaza Suite 4420, Atlanta, Georgia 30308. Their main phone number, 404-584-1200, remains the same. Macey Wilensky is a regional law firm based in Atlanta, Georgia, that has been recognized as a leader in the areas of bankruptcy, distressed business turnarounds, creditors’ rights and financial services for almost seventy years.

F a ll 2 0 1 3 | Ge o r g i a C o m m u n i t i es Fi r s t | 23

Attention CBA Associate Members--Budgeting for 2014? Reach Your Target Audience! With the CBA’s range of exciting and creative opportunities to promote your company’s products and services, you are certain to reach your target audience in the most effective way. Our flexible sponsorship packages are designed to provide you with maximum exposure before, during and after the event. Sponsorships and advertising with the CBA are bound to generate new leads and acquire customers in the most cost-effective way. Build your own 2014 Sponsorship Package… Set your sponsorship budget for the year and customize the benefits to suit your marketing goals. We offer a number of opportunities in the areas of education, web marketing, networking, and print and web advertising that can help you increase your exposure and access to Georgia’s community bankers. For more information, call CBA today at (770) 541-0376 or email Lindsay Greene at Lindsay@cbaofga.com.

Save the Dates for Our 2014 Conventions! 36th Annual Leadership Division Convention & Mini-Trade Show Thursday - Sunday, June 26 - 29, 2014 The Ritz-Carlton | Amelia Island, FL

46th Annual Meeting & Trade Show

Wednesday - Sunday, September 17-21, 2014 The Ritz-Carlton | Amelia Island, FL

• • • • • • • •

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Channel Letters Directional Signage Exterior Wayynding Backlit Monuments Digital Displays Pylon Signs Branding package Logo Design

• • • • • • •

Commercial Awnings LED Signage Neon Signage Vinyl Graphics Digital Prints Signage Acquisition Re-Branding

ServisFirst Correspondent Banking. Our name is our mission statement.

COATED 78c 58m

Correspondent Banking Division 850 Shades Creek Parkway, Suite 200 Birmingham, AL 35209 correspondentbanking@servisfirstbank.com 855.881.0364

205.949.0302 www.servisfirstbank.com Member FDIC Equal Housing Lender

www.servisfirstbank.com | Member FDIC | Equal Housing Lender

BIRMINGHAM • DOTHAN • HUNTSVILLE • MOBILE • MONTGOMERY • PENSACOLA

Rodney E. Rushing Executive Vice President 205.423.2717 rrushing@servisfirstbank.com

Don G. Owens Senior Vice President 205.423.2735 dowens@servisfirstbank.com

Richard Lane Senior Vice President Correspondent Banking 478.733.0756 rlane@servisfirstbank.com

J. David Jordan Vice President 205.423.2719 djordan@servisfirstbank.com

Karen Grahn Manager, Credit Card Division 205.949.0330 kgrahn@servisfirstbank.com

SAVE THE DATES! CBA University: 1ST Quarter 2014 Schedule 1/15-1/16 Business Development 1 & II - Atlanta 2/4-6 BSA Officer School – Atlanta 2/11 6th Annual Bank Directors’ & Executive Management Conference - Atlanta 2/25 Deposit Regulations – Macon 2/26 Deposit Regulations – Duluth 2/27 Deposit Regulations – Atlanta 3/10-3/14 Commercial Lending School – Atlanta

Watch for details on the 5th Annual Spring Regional Luncheon Meetings in April 2014 Five locations throughout the state!

3/25-26 2nd Annual Bank Security Management Conference – Atlanta Note: The first quarter webinar schedule will be available soon. Additional face-to-face programsmay be scheduled. For most current listing of CBA University educational programs, visit www.cbaofga.com or contact the CBA University Education Department at education@cbaofga.com.

Sponsored by

F a ll 2 0 1 3 | Ge o r g i a C o m m u n i t i es Fi r s t | 25

4 ‘Exceptional’ Ways to Improve Loan Administration: Tracking Documentation Exceptions Mary Ellen Biery Research Specialist Sageworks A CBA Endorsed Member Company

ederal bank and credit union examiners say one element that should be part of any loan portfolio management process is a solid system for tracking exceptions. Tracking deviations from loan policy and underwriting standards is crucial. But often, analyzing and controlling documentation exceptions can alert a financial institution of those deviations. The OCC Comptroller’s Handbook on Loan Portfolio Management says missing, stale or improperly executed documents can “exacerbate problem loans and seriously hamper work-out efforts.” For example, failing to receive and review financial statements or tax returns can lead to missed opportunities to avoid or mitigate problems. Identifying covenant violations late could jeopardize the ability to enforce the loan agreement. Failing to renew a UCC financing statement could allow the credit to transition from secured to unsecured. Here are four tips to improve tracking:

1. Systematically identify exceptions. Regular, proactive checks can prevent documents from “falling through the cracks.” This can be difficult if most documentation is in physical credit files or is tracked using spreadsheet programs like Excel. Develop a system for tracking collateral, customer correspondence, etc., in a way that multiple users can retrieve and update the information readily. Use caution with spreadsheet-housed data, which can be prone to more manual and formula errors than

if data is captured in the core or other automated software systems used for analyzing borrower financial data. 2. Initiate timely resolution of exceptions. The sheer number of documents monitored on an ongoing basis can make resolving exceptions time consuming and expensive. But quick action can minimize potential losses. 3. Monitor throughout the loan term. Sound loan administration and risk management is an ongoing process. Conduct post-closing reviews and periodic checks by developing ticklers and by using automated systems to generate client emails, letters or phone lists. 4. Analyze patterns in exceptions. Patterns help identify problems in the origination process. This can prompt changes that make loan approvals more efficient or can help single out staff, business units or geographic locations that need to strengthen documentation compliance. Examiners understand the importance of document exceptions in evaluating the quality of lending policies and loan portfolio management. Indeed, the FDIC says examiners may identify problem loans by finding evidence of missing or inadequate documentation. Improving document exception tracking is critical for sound loan portfolio administration. To learn more, contact Sanaa Bhambri at (919) 851-7474 ext. 513 or sanaa.bhambri@sageworks.com

CBA Associate Members – Maximize Your Membership! Stand apart from the crowd and take advantage of the many FREE benefits included for all Associate Members. Maximize the value of your CBA Associate Membership by taking advantage of the many benefits available: • Opportunity to meet face-to-face with Georgia’s community bankers on a regular basis • Free and priority publication of timely informational or educational articles authored by your experts • Request association membership list with key contacts for community banks in Georgia

• Discounts on advertising in CBA’s Georgia Communities First magazine, 2014 Georgia Financial Directory, CBA website and weekly e-newsletter, CBA Today • Substantial discounts on registration for attending and exhibiting at the CBA’s conventions • Much More! F a ll 2 0 1 3 | Ge o r g i a C o m m u n i t i es Fi r s t | 27

Bottom Line “It’s the power of information at my fingertips – right now.”

At PULSE, we are committed to delivering products and services that help our network participants maximize the value of debit. That commitment is reflected in the PULSE Debit Dashboard®, an analytics reporting tool that delivers easy access to timely information through a unique, intuitive web interface. Ben Benack sees the value this information brings to his organization, “When every department is engaged with reviewing and dissecting insightful data, that’s good for Dollar Bank’s customers, and for our bottom line. It’s refreshing to work with a partner like PULSE that cares enough to be completely accessible.” To learn how the PULSE Debit Dashboard can enable your financial institution to implement, analyze and react to relevant insight, and to watch Mr. Benack’s interview, go to: pulsenetwork.com/pdd-cba

Preparing to Succeed When Your Computer Network is Threatened Jeff Multz Director North American Midmarket Sales Dell SecureWorks A CBA Endorsed Member Company

ince it’s almost certain that every bank will experience a cyber security incident at some time, you need to be well prepared in advance.

You should have a formal Computer Security Incident Response Plan (CSIRP), to help you resolve any incident, as the longer you wait to eradicate a threat, the more time the intruders have to steal valuable information and make fraudulent wire transfers. With the right preventive and detective controls in place, including continuous network monitoring, you can normally stop an incident in its tracks before it spreads to your most valuable servers. The most successful CSIRPs have been validated by outside incident response security consultants who have reviewed the plan, watched you rehearse it thoroughly in “tabletop exercises,” and helped you revise it as needed. This article highlights a few basics. Incident Response Planning A CSIRP covers the handling of an incident from the moment it is noticed to the conclusion of the incident. Like a disaster recovery plan, a CSIRP is a management function, which means that management should be part of the planning team that develops the plan. Management needs to work with IT to discuss the organization’s top concerns—such as payment systems, member data, and email access—to decide which systems are most critical to get back online first and which need double layers of protection. Your CSIRP should define “an incident” and categorize possible incidents to help create an action plan. For example, categories could include malware, suspicious activity seen from monitoring logs and networks, lost or stolen computers and equipment, hijacking your domain, and third-party vendor mistakes. Creating the CSIRP • Develop a Computer Emergency Response Team comprised of business managers, representatives from your IT and security groups, legal advisor, HR director, PR director and internal security auditors. Discuss the roles they and others will play during an incident and their responses to particular situations.

• Designate a facilitator and data collector, and discuss the objectives, topics and scope of the plan. • Decide what the participants’ roles should be and what actions they should be responsible for taking. • The facilitator should present one at a time a handful of concise hypothetical incidents that inspire responses to fulfill the objectives. Various topics could deal with espionage, data leakage, insider threats, malware, website compromises, or any other topic that could affect your bank’s security. For each incident, the facilitator should ask the following questions: • What groups within the organization would be involved in handling this incident? • Which internal and external parties need to be notified of the incident? • What actions would be needed to control the incident? • How would the scenarios be different if the incident were to occur at a different physical location? The data collector should record the following information: • The type of incident • The answers to the above questions • The names and contact information of participants who would be affected by the incident • The action recommended for the participants to take. A good tabletop exercise should expose your bank’s strengths and weaknesses, and further the development of responding well to computer incidents. Your bank should annually perform the tabletop exercise and update the CSIRP. If you are breached, you will need a professional incident responder. Dell SecureWorks is one of only nine approved Payment Card Industry Forensic Investigators in the U.S. With an entire practice dedicated to Incident Response (IR) planning and responding, and Digital Forensics, Dell SecureWorks can be on site as soon as 24 hours. To learn more, contact Jeff Multz at jeff@secureworks.com.

Is your bank hosting a fun event or honoring someone in your community? Send us your news and you could be featured in a future issue of the Georgia Communities First magazine! F a ll 2 0 1 3 | Ge o r g i a C o m m u n i t i es Fi r s t | 29

NEW CAPITAL RULE QUICK REFERENCE GUIDE FOR COMMUNITY BANKS

The new capital rule implements revisions to the risk-based regulatory capital framework for national banks and federal savings associations (collectively, banks). This quick reference tool is a high-level summary of the aspects of the new rule that are generally relevant for smaller, non-complex banks that are not subject to the market risk rule or the advanced approaches capital rule. This quick reference guide does not carry the force and effect of law. The new rule, which can be found on the OCCâ&#x20AC;&#x2122;s Web site along with a Community Bank Guide, sets forth the revised capital standards. Community banking organizations become subject to the new rule on January 1, 2015.

Key Changes From the June 2012 Proposals Residential Mortgage Exposures: Relative to the existing rules, the risk-based capital treatment of residential mortgage exposures remains unchanged, with available risk weights including 50 percent and 100 percent and a safe harbor from recourse treatment for loans sold with certain repurchase triggers such as early default clauses. Accumulated Other Comprehensive Income (AOCI) Filter: Banks have a one-time irrevocable option to neutralize certain AOCI components, comparable to the treatment under the prior rules. If banks do not exercise this option, AOCI will be incorporated into common equity tier 1 capital (CET1), including unrealized gains and losses on all available-for-sale securities. Trust Preferred Securities (TRuPS): Holding companies with assets less than $15 billion as of December 31, 2009, or organized in mutual form as of May 19, 2010, are allowed to grandfather into tier 1 capital. TRuPS issued before May 19, 2010, are subject to a maximum of 25 percent of tier 1 capital.

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Capital Requirements & PCA

Risk-Weighted Assets (RWA)

The new rule revises Prompt Corrective Action (PCA) capital category thresholds to reflect the new capital ratio requirements and introduces CET1 as a PCA capital category threshold.

•

The new rule increases risk weights for past-due loans (150 percent risk weight for the portion that is not guaranteed or secured) and high-volatility commercial real estate exposures (150 percent risk weight), and increases credit conversion factors (CCF) for certain short-term loan commitments (20 percent CCF).

•

The and

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The new rule removes references to credit ratings.

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For securitization exposures, the new rule establishes due diligence requirements and introduces an approach for assigning regulatory capital that does not rely on external credit ratings.

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Relative to the existing rules, the treatment of corporate and retail loans and U.S. government (and related) entities remains unchanged.

new rule expands guarantors in

recognition of determining

collateral RWAs.

Transition Schedule for New Ratios and Capital Definitions for Community Banks

Common Equity Tier 1 Capital

The sum of common stock instruments and related surplus net of treasury stock, retained earnings, AOCI, and qualifying minority interests—less applicable regulatory adjustments and deductions that include AOCI (if irrevocable option to neutralize AOCI is exercised).

Capital Conservation Buffer The new rule requires banks to hold CET1 in excess of minimum risk-based capital ratios by at least 2.5 percent to avoid limits on capital distributions and certain discretionary bonus payments to executive oficers and similar employees.

Mortgage-servicing assets, deferred tax assets, and investments in inancial institutions are limited to 15 percent of CET1 and 10 percent of CET1 individually.

Additional Tier 1 Capital

Noncumulative perpetual preferred stock, tier 1 minority interests, grandfathered TRuPS, and Troubled Asset Relief Program instruments—less applicable regulatory adjustments and deductions.

Tier 2 Capital

Subordinated debt and preferred stock, total capital minority interests not included in tier 1, allowance for loan and lease losses not exceeding 1.25 percent of risk-weighted assets— less applicable regulatory adjustments and deductions. F a ll 2 0 1 3 | Ge o r g i a C o m m u n i t i es Fi r s t | 31

F o c u s

o n

s o l u t i o n s

Slow market reactions reduce margins and spreads. Daily fluctuations in volumes

Decision-making needs to be faster

$ $ $

1 $

portfolio and funding mix for the biggest bottom-line impact?

How to shift your

7 25

and yields keep you guessing.

than ever to maximize spreads.

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Community Bankers Association of Georgia Members: Learn more about maximizing your spreads. Contact Julie Jones at 434.951.4419; JJones@SNL.com.

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1900 The Exchange, Suite 600 Atlanta, GA 30339 www.cbaofga.com

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