GA Communities First magazine Winter 2013 by Community Bankers Association of Georgia

WINTER 2013 Official Publication of the Community Bankers Association of Georgia

INSIDE

• 2014 Conventions at The Ritz-Carlton • Old Meets New with Dublin Bank Renovation • New CBA Endorsements • Upcoming Educational Schools, Classes and Seminars

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GEORGIA

Communities WI N T E R 2 0 1 3

FIRST

CBA STAFF

FEATURES

INSIDE

Rob Braswell President & CEO rob@cbaofga.com Steve Bridges Executive Director of Legislative & Regulatory Affairs steve@cbaofga.com Lindsay Greene Vice President Marketing & Member Services lindsay@cbaofga.com 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

Finer Points: Parochial Agendas

The Dawning of a Brand New Day in Georgia

6 7

General Counsel Corner: Georgia's Community Banks: Reflecting on Yesterday and Looking Ahead to Tomorrow CBA Presents Lifetime Service Awards

CBA Thanks the Board of Directors

CBA Announces Endorsement of Paul W. Barret, Jr. School of Banking

2014 Memorial Scholarship Applications Now Available

CBA University Upcoming Schools

Guest Article: ATR & QM in Simplified Terms

Guest Article: Claim Denied?

Amanda Lee Education Associate amanda@cbaofga.com Tammy Maass CFO tammy@cbaofga.com

page 5 | 2014 Conventions at The Ritz-Carlton

S ta y connecte d

Nick Wilborn Accounting/IT Coordinator nick@cbaofga.com

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

page 8-9 | Old Meets New with Dublin Bank Renovation

LET’S GET

GOING!? page 16 | 6th Annual Bank Directors' & Executive Management Conference

Scan with your smartphone to view our website.

page 23 | CBA Announces Two New Endorsed Member Companies W in t e r 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

Parochial Agendas Mission creep, the bureaucratic maneuverings for the selfpreservation of government fiefdoms and backwater ministries, has long stalked the corridors of the nation’s capital. It’s part of the transfiguring sleight of hand in public policymaking that has given federal programs and subsidies virtual immortality. When a government agency, office or program has outlived its usefulness or intended purpose, a deft adjustment to arcane policy codes can provide self-justifying life that keeps rivers of government funding flowing. It’s the law of the bureaucratic jungle. Once established, no government entity willingly allows its own demise—at least not without a furious street brawl. Perhaps the King will live long (or not), but the hive of officialdom will hum on forever and ever. ICBA has fought this backdoor policy force, this stealthy mission creep, for decades in Washington. It has factored into the association’s efforts to turn back overregulation of community banks generated by too-big-to-fail institutions. But nowhere has it been a more tenacious obstacle than in ICBA’s long, uphill fight to curb the entrenched, ever-expansionist and self-aggrandizing agendas of the Farm Credit Administration and the National Credit Union Administration. Both of these government-industrial complexes have pursued imaginatively permissive interpretations of their congressional mandates. They have done so, counterproductively to the American economy, to expand their tax-exempt industries’ considerable government-subsidized advantages in direct, aggressive competition with tax-paying, heavier-regulated community banks. Though egregious, the FCA’s approval of CoBank’s $725 million loan of a massive Verizon Communication buyout of Vodafone’s holdings of Verizon Wireless is only a recent example of the desire of Farm Credit System lenders for unfettered access to non-farm lending activities. The NCUA’s unrelenting efforts to lift important restrictions on credit union small-business lending—a demand of only a few of its industry’s largest, most bank-like players— represents years of parochial bureaucratic manipulations.

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Cam Fine President & CEO Independent Community Bankers of America

Transparently bold, these activities represent classic turf-building. But, thankfully, the longstanding policymaking dynamics in Washington are shifting. Seventeen years after President Clinton declared that the “era of big government is over,” Uncle Sam desperately needs cash, and the American economy desperately needs relief from smothering government red tape, strong-arm meddling and economic discrimination. Through the calcifying gridlock seizing the nation’s capital, a rising bipartisan awareness in Congress is confronting hard-edge limits to the federal government’s once seemingly unlimited ability to spend and control. Never have so many lawmakers acknowledged that our country and its economy can no longer afford to bear the weight of outmoded, counterproductive and overreaching government run amok. That’s not rhetoric, it’s reality. Necessity will drive this change. This coming year, community bankers should be ready to stand behind ICBA to ensure Congress conducts hearings to address these unbridled examples of government overreach and excess. Once again, ICBA will ask lawmakers to end FCS subsidies of non-farm lending, and we will urge them to stop the credit union industry’s unfair and unwarranted subsidies costing the government urgently needed tax revenue. But this time lawmakers need to be persuaded to truly listen and disrupt the status quo. Mission creep may be alive in Washington, but community bankers can join together to make it a waning force. Our industry and our country have one of the best opportunities in years to achieve, in “We the people” fashion, greatly needed and long overdue public policy corrections.

The Dawning of a Brand New Day in Georgia

Rob Braswell President & CEO Community Bankers Association of Georgia

As the beautiful autumn weather prepares to give way to chilly winter and 2013 draws to a close, I encourage you to take a retrospective look at not only this year, but the previous ten years as well. There are many lessons to be learned from both the heyday of the early 2000’s and the “Great Recession” that followed, and I truly believe most, if not all, of us have taken these lessons to heart and will be better because of them. I also think you deserve a tremendous amount of credit for the hard work, dedication and in many cases, ingenuity, that you provided your banks during these challenging times. After taking a look back for perspective, I encourage you to look ahead with optimism. I know many challenges continue to exist; however, I also feel we are about to officially close the book on the financial maelstrom we’ve all endured the past six years and embark on opportunities made possible by the dawning of a brand new day in Georgia banking.

•

The introduction of a totally new format for the CBA Day at the Capitol in which our Board Members will meet with state officials and legislative leaders in the morning and early afternoon, then all CBA members (Bankers and Associate Members) are invited to attend and hear a “debriefing” from the Board regarding the meetings held earlier in the day. After this session, everyone, including legislators and state officials, will be invited to enjoy a reception together.

•

The introduction of our Leadership Academy, which will be a series dedicated to developing tomorrow’s banking leaders through dedicated seminars, informative talks from renowned speakers, and exposure to several “CEOtype” events.

•

The introduction of a two-part series of Compliance Forums that will be held in five locations throughout the state. The meetings will be held in the spring and autumn at five different locations to ensure you and your compliance staff members can attend with minimal drive time.

•

The re-introduction of a professional emcee and top shelf entertainment at both the Leadership and Annual Conventions, to complement an impressive lineup of speakers. To say that I’m excited about our two conventions is an extreme understatement – I have no doubt they will be impactful, very beneficial and fun! I recommend taking advantage of the Early Bird pricing because you will definitely want to attend.

With that mindset, the CBA will be rolling out many new initiatives in 2014 that I hope you will find engaging, fresh and extremely beneficial. A few of the initiatives that I want to mention here include: •

•

CBA’s new partnership with the Barret School of Banking, a non-profit independent school in Memphis, Tennessee, created by and governed by a Board of Regents, whose members are executives from community banks, community bank associations, and other firms involved with the financial services industry. In fact, I’m honored to have been approved as a member of the Board of Regents effective November 7, 2013. The Barret School of Banking has been in existence for over 40 years and offers the same stringent banking curriculum as other banking schools. Their large endowment subsidizes tuition, making it approximately one-third of the cost of other banking schools. What’s more, the one-week resident session means employees spend less time away from the job and their families. The school fills quickly, so be sure to register your candidate by February 1st to ensure availability.

As 2013 draws to a close and we approach the dawn of 2014, I wish you all much success in the upcoming new “day.” Please know that all of us at the CBA are committed to helping you in any way we can, so please don’t hesitate to contact us if we can be of assistance.

The introduction of a new CBA logo and tagline starting January 1st that reflects that we’re a growing, dynamic association with a defined mission.

Best regards,

And remember, “Celebrate endings - for they precede new beginnings.” - Jonathan Lockwood Huie I wish you and your families a joyous and blessed holiday season.

W in t e r 2 0 1 3 | Ge o r g i a C o m m u n i t i es Fi r s t | 3

HIGHLIGHTS:

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2/19/13 2:07 PM

2014 Conventions at

The Ritz-Carlton Amelia Island, FL

36th Annual Leadership Division Convention Thursday - Sunday | June 26 - 29, 2014

46th Annual Meeting & Trade Show Wednesday - Sunday | September 17 - 21, 2014

he Community Bankers Association of Georgia is proud to host the 36th Annual Leadership Division Convention & MiniTrade Show and the 46th Annual Meeting & Trade Show at The Ritz-Carlton in Amelia Island, Florida. The 36th Annual Leadership Division Convention & Mini Trade Show will be held Thursday, June 26th through Sunday, June 29th, and the 46th Annual Meeting & Trade Show will be held Wednesday, September 17th through Sunday, September 21st. The CBA encourages you to make plans to attend these exciting events! Rejuvenating ocean views and luxury meet southern charm at The Ritz-Carlton in Amelia Island, Florida. When you arrive, you’ll immediately feel at home under the warm Florida sun surrounded by miles of pristine beaches along the picturesque Atlantic Ocean. Unwind from your journey by relaxing on your room’s own private balcony, enjoy a cocktail from the hotel’s Lobby Lounge, or take in the evening sky at the Courtyard Terrace Firepit. The Ritz-Carlton in Amelia Island offers a truly unique experience that suits the tastes of all guests, including nature lovers, history lovers, and outdoor sports enthusiasts. Catch the spectacular morning sunrise at the North Beach boardwalk, then take a stroll on the cobblestone streets of the historic village of Fernandina Beach, just minutes away from the resort. Guests of the hotel can also work on their game at the 18-hole championship golf course at The Golf Club of Amelia Island. For tennis lovers, The Ritz-Carlton offers four state-of-the-art tennis courts with services that include a full-service pro shop and private lessons. After a full day in the sun, indulge in total relaxation at The RitzCarlton Spa, where guests can take advantage of the variety of world-class spa packages.

This year's conventions will include an impressive list of speakers, great entertainment and engaging activities for bankers, associate members and their families and guests. Register now to take advantage of CBA’s Early Bird Special rates! To register, please go online to www.cbaofga.com or contact a CBA Team Member at (770) 541-4490.

36th Annual Leadership Division Convention & Mini-Trade Show On or before 1/31/14 After 1/31/14 Attendee Registration $499 $565 Exhibitor Registration $1198 $1325 Spouse Registration* FREE FREE Attendee Golf $85 per player $85 per player Spouse/Guest Golf $85 per player $85 per player

45th Annual Meeting & Trade Show On or before 1/31/14 After 1/31/14 Attendee Registration $895 $995 Exhibitor Registration $1210 $1345 Spouse Registration* FREE FREE Attendee Golf $85 per player $85 per player Spouse/Guest Golf $85 per player $85 per player * Additional charges will apply for non-spousal guests and additional attendees from the same bank/company. W in t e r 2 0 1 3 | Ge o r g i a C o m m u n i t i es Fi r s t | 5

Corner General Counsel

legal news and updates for cba members

Have a topic you would like to see covered in “General Counsel Corner?” Email us at generalcounselcorner @ jamesbatesllp.com

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@ jamesbatesllp.com

Winter 2013

Georgia’s Community Banks: reflecting on Yesterday and looking ahead to Tomorrow elcome to the initial publication of “General w Counsel Corner.” We’re glad you’re here. Our community bank team at James-Bates-BrannanGroover-LLP is enthusiastic about the quarterly opportunity General Counsel Corner will provide us to bring legal news and information to you. As you know, the past five years have been tough on Georgia’s community banks. During that period, 87 banks failed in Georgia. Today, just 223 state banks, national banks and thrifts remain headquartered in Georgia. Estimates are that about one-third of Georgia’s banks are currently subject to some form of enforcement action, such as prompt corrective action directives, cease-and-desist orders and formal agreements/consent orders. Nevertheless, Georgia’s community bankers have worked – and continue to work – hard to address the parade of challenges. Much progress has been made and some banks’ enforcement actions are being lifted. However, much work remains to be done. While the past five years has been a challenge, the next five years will present other challenges. Community banks’ lending ability will be affected by new capital rules arising out of Basel III. The new capital rules will result in higher capital requirements, a new “Common Equity Tier 1” capital requirement, changes in qualifying capital components and changes in asset weighting. The expiration of many loss-share agreements over the next few years will have impacts on both loss-share banks and nonloss-share banks. Banks that have been deferring interest payments on their trust preferred securities will be impacted by the expiration of those deferral periods over the next couple of years. The Consumer Financial Protection Bureau, established by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, continues to implement

new consumer-protection rules that will impact community banks; not just through increased compliance costs, but also through the uncertainty surrounding how these rules will be interpreted and enforced. Just ask any banker about “qualified mortgages.”

“Bank profits are again beginning to grow.” Notwithstanding past, present and emerging challenges for Georgia’s community banks, there will be opportunities for Georgia’s community banks to thrive. Georgia’s economy continues to recover, albeit slower than most would like. This year has seen the return of “non-assisted” bank merger and acquisition transactions in Georgia. We are seeing an increase in both government-guaranteed lending and other commercial lending. Bank profits are again beginning to grow. We look forward to working with the CBA and CBA’s members in dealing with challenges and seizing on opportunities as they emerge. In each column of “General Counsel Corner” we will bring you information we hope you find relevant and useful. We are here to serve you. If you have a topic that interests you and you would like to see discussed in this column, please email us at generalcounselcorner@jamesbatesllp.com. Whatever the topic of discussion in this column from time to time, you can be certain of this: as CBA’s general counsel, we are in your corner. We look forward to hearing from you. n

dan Brannan partner | Banking & financial institutions group Dan Brannan is a partner at James-Bates-Brannan-Groover-LLP and chairs the firm’s Banking & Financial Institutions Practice. Dan can be reached at (404) 997-6023 or dbrannan@jamesbatesllp.com.

PRESENTED BY GeorGia’s law firm: “General offiCes 6 | w w w .cbaof ga. com | Sum m eCounsel r 2 0 1 3Corner,” a recurring column featuring legal news and information of interest to CBA

maCon + aTlanTa

members, is brought to you by James-Bates-Brannan-Groover-LLP. Visit us at www.jamesbatesllp.com

CBA Presents Lifetime Service Awards Over the past few months, the CBA has honored inspiration they continue to provide bankers who have marked a significant milestone in a new generation of community the banking industry. bankers.” "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

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

Several presentations were made at the Annual Meeting & Trade Show in September. Mr. Braswell has been making recent presentations to banks around the state. The honored employees were also featured in the CBA Today newsletter and received press releases announcing the recognition.

First Citizens Bank, Dawsonville - Pictured l to r: Mike Underwood, Executive Vice President, - 32 years and Rob Braswell, President & CEO, CBA of Georgia.

Make plans now to attend a Banker Regulatory Forum!

Bank of Dudley, Dublin - Pictured l to r: Jane Frederick, Vice President and Branch Manager - 35 Years; CBA President Rob Braswell; Judy Middlebrooks, Teller - 34 years; Cliff Crews, Senior Vice President - 41 years; Shirley Clements, Mortgage Loan Processor - 45 years; Sam Beall, President & CEO - 34 years; Ruth Anne Bryant, Switchboard/"The Voiceof Bank of Dudley" - 31 years; and Gloria Ikner, Compliance/BSA Officer 31 years. Not pictured: Carol White, Branch Manager and Loan Officer - 30 years.

Thursday February 6, 2014 Idle Hour Country Club Macon Thursday May 8, 2014 Vinings Bank Smyrna

Thursday August 7, 2014 Idle Hour Country Club Macon Thursday November 6, 2014 JHTC, CBA Headquarters Atlanta

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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! W in t e r 2 0 1 3 | Ge o r g i a C o m m u n i t i es Fi r s t | 7

Old Meets New with Dublin Bank Renovation

former banker’s 100-year-old home and Dublin funeral home is now a thriving bank filled with history and the latest in technology. Congratulations to L.O. "Chip” Benton, President & CEO, The Citizens Bank of Cochran, and Chuck Harwell, EVP/CCO & CBA Leadership Division Board member, Community Bank of DublinLaurens County, on the grand opening of their new location at 605 Bellevue Avenue in Dublin. The new home to Community Bank of Dublin-Laurens County sits within the commercial Historic District of Dublin and has been completely rehabilitated by Garbutt Construction Company. The district is recognized by the National Register of Historic Places. The property was originally constructed in the early 1900s as home to T. H. Smith, a Dublin banker and businessman. The house reflects a Greek Revival style of architecture with characteristics prevalent during that era such as white

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paint, bold columns, and heavy cornice detailing. The house was two stories and contained approximately 8,000 square feet of space. The Community Bank of Dublin-Laurens County purchased what was known as Adams Funeral home in 2012 after the building sat vacant for some time. Chuck Harwell, Executive Vice President of the bank, was the leader in transforming the property. Chuck secured Garbutt Construction Company in Dublin and McCall & Associates, Valdosta, as McCall & Associates had experience in providing architectural services for banks and historic rehabilitations. The layout was revised to accommodate the new home for Community Bank; so many interior walls were demolished and rebuilt. The funeral home parlor area was transformed into administrative space for bank officials and the mortuary was converted into storage and break room space. The bank has loan offices, a directors’ room upstairs and a kitchenette. According to Chuck, the location was ideal with two entrances in a prime location and the opportunity to give something back to the community. Construction started in March and they moved in on October 1, 2013.

The porch railings and balustrades are made of handcrafted wood and added beautiful detailing to the home. The bank was sure to re-attach the balcony and add a crow’s nest to the building to reflect the home’s original design. Great efforts were made to save and replicate historic elements of the original building and one example is much of the original wood flooring was restored on the first floor of the building and interior plaster was historically restored by professionals. Many of the window units in the house are the original units. If windows had to be replaced, they were replaced to match the original wood windows. The interior features solid wood furniture from Blackwell furniture and décor to match the look and feel of the building. Signs in front of the bank are made from marble from a quarry in Nelson, Georgia. The Community Bank of Dublin – Laurens County has mixed history and tradition with the latest in technology. “We pride ourselves in offering outstanding customer service and the latest in technology,” commented Chuck Harwell. “Our team visited several banks and tested numerous systems. I invite people to come

"I can assure our customers and future customers that they will experience banking the way it used to be done, putting people first. "

see our teller pod which has a cash dispenser in the floor. We have four drive-thru lanes where customers conduct business with a teller via a computer screen. It’s very convenient and still has a very personal touch. We also have an extremely modern ATM,” explained Chuck. The bank has nine employees and plans to add more. Community Bank of Dublin-Laurens County is a leader in the downtown Dublin area by investing in its history. The bank hosted a grand opening ceremony with over 500 people in attendance including representatives from the Chamber of Commerce and Development Authority. Garbutt Construction has nominated the bank and this project for the 2014 Annual Preservation Award from The Georgia Trust. "I can assure our customers and future customers that they will experience banking the way it used to be done, putting people first. We are the bank that SERVICE built and we would love the opportunity to prove it to you. We use common sense when it comes to our loan decisions and with our convenient location for all of Laurens County and Dublin, we are here to provide quality service by local people that have grown up in Laurens County and know its needs. Why not bank where you feel welcome and the facility is absolutely beautiful? Please stop by and give us the opportunity to prove ourselves," stated Chuck.

Warmest thoughts and best wishes for a joyous holiday and a very happy new year! W in t e r 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

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Thank You, CBA Board of Directors Serving on the Board of Directors of CBA is a commitment. Thank you for your service, for sharing your time and talents, and for your dedication in helping us advance the common good of community banking. Executive Committee

Division 1 Chair: Jimmy Dubberly – South Georgia Bank, Glennville

Chairman: Charlie Curry – First State Bank of Randolph County, Cuthbert; Chairman-Elect: Dale Morris – First National Bank of Coffee County, Douglas; Vice Chairman: Ed Cooney – Affinity Bank, Atlanta; Treasurer: Lisa Lane – State Bank & Trust Company, Macon; At Large: Eddie Selph – The Merchants & Citizens Bank, McRae; Immediate Past Chairman: Dan Oliver –Vinings Bank, Smyrna

Division 2 Chair: Charles Rooks – Family Bank, Pelham

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

Division 3 Chair: Derek Williams – Columbus Community Bank Division 4 Chair: George Lazenby – Newton Federal Bank, Covington Division 5 Chair: Elliott Miller – Georgia Banking Company, Atlanta Division 6 Chair: Henry Pope – Exchange Bank, Milledgeville Division 7 Chair: David Caswell, Century Bank of Georgia, Cartersville Division 8 Chair: Tim Jones – Citizens Community Bank, Valdosta Division 9 Chair: Drew Walker – Alliance National Bank, Cumming Division 10 Chair: Harold Reynolds – BankSouth, Greensboro Paul Bennett – Alma Exchange Bank, Alma - Ex-Officio (ICBA)

Leadership Division Board of Directors EXECUTIVE COMMITTEE: Chairman: Rhodes McLanahan – First American Bank & Trust Company, Athens; ChairmanElect: Rusty Powell – Highland Commercial Bank, Marietta; 1st Vice Chairman: Kyle Ray – First Bank of Dalton; 2nd Vice Chairwoman: Terri Bunten Guthrie – First Landmark Bank, Marietta; Past Chairman: Steven Rigdon – Pineland State Bank, Metter

MEMBERS AT LARGE: Clell Deaver – Atlantic Capital Bank, Atlanta; Richy Everly – State Bank of Cochran; Dave Fain – Commercial State Bank, Donalsonville; Heath Fountain – HeritageBank of the South, Albany; Jane Lawson – First Peoples Bank, Pine Mountain; Kevin Massey – Bank of Terrell, Dawson; Kay Stevenson – First State Bank, Wrens; Jamie Tallent – United Community Bank, Ellijay; Pam Wheeler – SunMark Community Bank, Hawkinsville; Peake Wilson – CBA of GA, Atlanta

Division 1 Chair: Jim Cowart – Durden Banking Company, Twin City Vice Chair: Cliff Wildes – HeritageBank of the South, Statesboro Division 2 Chair: Chip Davis – Family Bank, Bainbridge Vice Chair: Jason Rooks – Flint Community Bank, Albany Division 3 Chair: Corey Gibbs – Community Banking Company of Fitzgerald Vice Chair: Debra Weil – PlantersFIRST, Fitzgerald Division 4 Chair: Marlene Rhodes – HeritageBank of the South, LaGrange Vice Chair: Greg Proffitt – Newton Federal Bank, Covington Division 5 Chair: Katherine Kay – Georgia Commerce Bank, Atlanta Vice Chair: Trae Dorough – Touchmark Bank, Alpharetta Division 6 Chair: Powell Griffith – Farmers & Merchants Bank, Eatonton Vice Chair: Chuck Harwell – Community Bank of Dublin – Laurens County Division 7 Chair: Clark Hungerford – Vinings Bank, Smyrna Vice Chair: Chad Thomason – MetroBank, Kennesaw Division 8 Chair: Adam Smith – First National Bank of Coffee County, Douglas Vice Chair: Pam Horton – Guardian Bank, Valdosta Division 9 Chair: Mike Underwood – First Citizens Bank of Georgia, Dawsonville Vice Chair: Robbie Stephens – Northside Bank, Adairsville Division 10 Chair: Shannon Fortson – Pinnacle Bank, Elberton Vice Chair: Andy Thomas – The Commercial Bank, Crawford

W in t e r 2 0 1 3 | Ge o r g i a C o m m u n i t i es Fi r s t | 11

CBA Announces Endorsement of Paul W. Barret, Jr. School of Banking Rob Braswell, President & CEO, Community Bankers Association of Georgia (CBA), recently announced the endorsement of the Paul W. Barret, Jr. School of Banking (BSB). The Barret School of Banking, located in Memphis, Tennessee, is a graduate level banking school which offers a three-year program of advanced study for career financial industry professionals. The school includes a one-week session each May, where students are in residence for 40-plus hours of classroom instruction, and eight home study assignments are due between the first and second, and the second and third years of the program. Since its establishment in 1972 as Memphis School of Banking, the School has provided banking education for graduates/participants from more than 20 states. The not-for-profit Memphis School of Banking was incorporated in 1976, and the name was changed to Mid South School of Banking in 1979 to reflect its regional expansion. In 2001, the School received an $8 million grant from the Paul W. Barret, Jr. Charitable Trust, and the name was changed from Mid South School of Banking to Paul W. Barret, Jr. School of Banking. The School is governed by a Board of Regents, which includes bankers in senior management positions from several states. The Regents serve voluntarily, without compensation except for travel related expenses, as a commitment to advance educational attainment of employees in the industry. Mr. Braswell was approved as a member of the Board of Regents in November. “I am pleased to announce CBA’s new partnership with The Paul W. Barret, Jr. School of Banking,” said Mr. Braswell. “The school has been in existence for over 40 years and offers the same stringent banking curriculum as other banking schools. Their large endowment subsidizes tuition, making it among the most reasonable in the country -- approximately one-third of the cost of other banking schools. What’s more, the one-week resident session means employees spend less time away from the job and their families. The school fills quickly, so candidates are encouraged to register no later than February 1, 2014 to ensure availability.”

at least six hours of graduate credit upon admission to the MBA program at Christian Brothers University, Arkansas State University, and the University of Tennessee at Martin. In the past few years, the School has created career-track programs in Commercial Lending, Technology, HR Management, Bank Profitability, Retail Sales & Service, and Compliance. “We are excited to forge this relationship with CBA of Georgia. I look forward to having Rob as an active Board member, and am confident his leadership will assist Barret in fulfilling our mission to serve the educational needs of community banks,” stated Chris Kelley, Executive Director, Barret School of Banking. More information can be found at www.barret.ws.

Experience is one thing you can’t get for nothing.” – Oscar Wilde

The faculty comprises twenty outstanding business, financial, and educational leaders who are experts in their chosen fields. The School is also endorsed by the Arkansas Community Bankers Association, the Indiana Bankers Association, the Community Bankers Association of Kansas, the Missouri Independent Bankers Association, the Community Bankers Association of Ohio, Arkansas Bankers Association, Community Bankers of West Virginia, and ICBA Securities. The School is registered with the National Association of State Boards of Accountancy, and students receive a total of 128 hours of CPE credit for the threeyear program. Alumni of Barret School of Banking are eligible for

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Bank Assetpoint is operated by Assetpoint Services, LLC, a wholly owned subsidiary of Promontory Interfinancial Network, LLC. Use of the Bank Assetpoint service is subject to the terms and conditions in the Bank Assetpoint agreements, including the Bank Assetpoint Participant Agreement. Assetpoint Services, LLC does not, merely by permittingW the the identification third-party of r s t inlisting t e r of2an 0 1asset 3 |or Ge o r g i a Cofoa m m u n iprovider t i es Fi services on the website, endorse the asset, the party posting information about it, or the third-party provider, as applicable.

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2014 Memorial Scholarship Applications Now Available

pplications are now available for the annual Julian & Jan Hester Memorial Scholarship. The 2014 scholarships are open to Georgia high school seniors who intend to enter a Georgia college, university or technical college (two year program or more) in the fall semester of 2014. The CBA will award four $1,000 scholarships in May 2014. The deadline for submitting applications to a CBA member community bank is April 4, 2014, and banks should submit all applications to CBA no later than April 11, 2014. The scholarship is named after long-time CBA Chief Executive Officer, the late Julian Hester and his daughter, Jan Hester. Jan was a senior at the University of Georgia when she died in an auto accident on April 15, 1990. In addition to supporting community banking, this scholarship is an opportunity to pass on the positive qualities both Julian and Jan Hester exemplified to further the development of tomorrowâ&#x20AC;&#x2122;s generations. CBA encourages all bankers to reach out to their communities and local newspapers to promote this scholarship and invite local students or children of employees to apply for this prestigious scholarship. This is an excellent opportunity for your bank to receive free promotion in your local community!

SAVE THE DATE Inaugural Sporting Clay Event Raising funds for the CBA PAC Hosted by the CBAâ&#x20AC;&#x2122;s Leadership Division

Tuesday, March 25, 2014 Wynfield Plantation, Albany

The J. Steven Walraven Memorial Scholarship Fund is designed to assist those employees interested in furthering their education to enhance their career in community banking. This annual scholarship awards a $500 scholarship to one fulltime Georgia community bank employee planning to attend a college, university or technical college (two-year program or more) within the state of Georgia. To compete, employees must write a short essay on how community banking has impacted their life and how it will enable them to give back to their community. The scholarship is named for the late J. Steven Walraven, a former community bank president who dedicated much of his life to his community and community banking. His wife Rebecca and their sons, Joseph and Oakley, have developed the scholarship in his memory. Completed applications should be received by the CBA office by Friday, April 11, 2014. A judging will be held and a winner will be announced in May 2014.

For more information on either of these scholarships, please contact Lindsay Greene or Shera Banks at (770) 541-4490.

Providing credit and risk management solutions to hundreds of community banks across the country sageworksanalyst.com

Watch for details on the Sporting Clays Challenge!

1 4 | w w w . cbaof ga. com | Wi n t e r 2 0 1 3

866-603-7029

Our tailored approach to solving financial industry legal issues is like money in the bank. Baker Donelson represents over half of the top-50 financial services companies in the country. With 650 attorneys in 19 off ices across the Southeast, Texas and Washington, D.C., we have the experience and strength to help you solve your legal issues. Learn how Baker Donelsonâ&#x20AC;&#x2122;s innovative legal services can be tailored to meet your business needs.

THIS IS AN ADVERTISEMENT. Linda Klein is managing shareholder of the Atlanta off ices of Baker Donelson and is located in our Atlanta off ice, 1600 Monarch Plaza, 3414 Peachtree Road N.E., Atlanta, GA 30326. Phone 404.577.6000. ÂŠ 2013 Baker, Donelson, Bearman, Caldwell & Berkowitz, PC

To learn more about our financial services industry capabilities, visit www.BakerDonelson.com. W in t e r 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

The Community Bankers Association of Georgia presents

The 6th Annual Bank Directors’ & Executive Management Conference

LET’S GET

GOING!? “Let’s Get Going!?” Is that an affirmative statement for your bank or a question you are asking? That is the dilemma confronted by many community bankers in today’s environment. Should they begin taking the steps in a new environment to get ahead of the curve and begin looking at new ways to enhance value, create core earnings, look at new insurance products, create new compensation structures and focus on emerging issues like cyber-liability? Or, on the other hand, do those tasks seem so daunting that now is the time to position your bank to sell to another organization? Alternatively, are you looking to merely maintain organic growth by remaining independent or are you seeking to expand your reach through acquisitions? Each of those various topics is being confronted by all of us today. In this year’s 6th Annual Bank Directors’ and Executive Management Conference, we will cover these topics and much more to help you set a firm direction for your organization in the coming years regardless of your strategic choice.

Tuesday, February 11, 2014

The Cobb Energy Performing Arts Centre 2800 Cobb Galleria Pkwy • Atlanta, GA 30339 The Community Bankers Association of Georgia (CBA) is pleased to partner once again with Philip Smith, President, Gerrish McCreary Smith, PC, Consultants and Attorneys, Memphis, Tennessee to offer the 6th Annual Bank Directors’ & Executive Management Conference designed specifically for Georgia Community Bank Directors and Executive Management. This one-of-a-kind event will provide you with proven strategies and ideas for you to consider as you plan for 2014 and beyond. Plus, you will have an opportunity to network with other bank directors from community banks located all across Georgia. In today’s environment, more than ever, a well-trained bank board and management team is one way to ensure a bank’s success. The CBA and Gerrish McCreary Smith have been leaders in bank director and executive management training for decades. We invite you to make plans now to attend this one-day conference designed to help you meet your annual training requirements and to stay abreast of issues affecting community banks. For more information, please visit www.cbaofga.com.

Agenda Topics: “Five Common Mistakes of Remaining Independent” | “Retaining Your Key Executives and Directors – Tax Efficient Benefit Strategies That Won’t Break the Bank” | “What Keeps Bankers up at Night? The Trends and Topics in Compensation that Keep you Tossing and Turning” | “The Paperless Board Meeting” | “Cyber Liability” | ‘A Conversation with Commissioner Hagler” “Legislative and Regulatory Updates from a Legal Perspective” | “Five Common Mistakes of Buyers and Sellers in the Acquisition Market” | “Emerging Challenges for Community Bankers” | And, much more!

featured Speakers

Philip Smith Brian Miller President and member Founding Member and of the Board of Managing Principal Directors Banc Consulting Partners Gerrish McCreary Smith, PC

Flynt Gallagher President Meyer Chatfield Compensation Advisors, LLC

Bill Evers Senior Sales Executive Computer Services, Inc. (CSI)

Kevin Hagler Commissioner Georgia Department of Banking & Finance

THANK YOU TO OUR SPONSOR! Name Badges: ServisFirst Bank, Birmingham, AL Sponsorships are still available! To become a sponsor, contact Jodi Swilley at jodi@cbaofga.com. 1 6 | w w w . cbaof ga. com | Wi n t e r 2 0 1 3

Dan Brannan Partner James-Bates-BrannanGroover LLP

KNOW WAY.

At AloStar, we take great pride in Starlink, our online services platform. It’s intuitive, streamlined, and gets great reviews from clients. Having a complete spectrum of correspondent banking services is only part of what it takes to be a strong correspondent banking partner. The way those services are accessed has to be every bit as streamlined as the services themselves. We know the kind of help you need. And we know how you need it delivered. That’s know how.

CORRESPONDENT SERVICES-

BALANCE SHEET MANAGEMENT | BOND ACCOUNTING | INVESTMENT STRATEGIES

CLEARING FUNDS MANAGEMENT | FED FUNDS | INTERNATIONAL SERVICES | SAFEKEEPING

ADVISORY SERVICES-

STRATEGIC BALANCE SHEET MANAGEMENT | STRATEGIC PLANNING | PROFITABILITY ENHANCEMENT

C O R R E S P O N D E N T C R E D I T-

MEMBER FDIC

ASSET BASED LENDING

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

Upcoming Schools For more info, please visit www.cbaofga.com.

3 Day l o Scho

12th Annual Bank Secrecy Act (BSA) Officer School Tuesday – Thursday, February 4-6, 2014 Julian Hester Training Center CBA Headquarters, Atlanta

he financial industry is required to take an increased leading role in the prevention of money laundering and potential terrorist funding. Compliance with the Bank Secrecy Act (BSA) and AntiMoney Laundering (AML) continues to be a top priority with the regulators. One major requirement of BSA is to designate a BSA/AML Officer and to ensure that the BSA Officer and the BSA Team is well trained and qualified to carry out the duties of this critical position. During this interactive training school, attendees will focus on the fundamental framework, knowledge, and resources needed to effectively and proactively manage the BSA/AML function. Attendees will also participate in case studies, review “real world” situations, and develop “take-aways” that can be implemented back in the “real world.” Register today and come learn from industry experts and network with other community bank BSA/AML officers.

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

Sponsored by

2014 Commercial Lending School Monday - Friday, March 10-14, 2014 CPE Julian Hester Training Center ay /2 41 D ol Credits o CBA Headquarters, Atlanta Sch Availa

ble

his comprehensive, weeklong school is designed for mid-level commercial loan officers or seasoned consumer lenders. The school will take the student through the process of commercial lending and allow the student to develop and enhance the skills necessary to successfully administer quality commercial loans in today's community bank. Numerous inclass case studies and exercises will be utilized to assist with comprehension and retention of these skills. This school is the only commercial lending school in Georgia designed specifically for community bankers. A basic knowledge of financial statements and spreadsheets is necessary to participate in this school. Register today, and come learn from industry experts and exchange ideas with other community bank lenders.

Areas of Study

Principles of Commercial Lending | Characteristics of a Good Loan Officer | Accounting Principles and Financial Statement Review|Review of Corporate Income Tax Returns | Application of Credit and Ratio Analysis | Structuring Short-Term Credit Facilities through Cash Budgeting |Analyzing Borrowing Causes & Matching with the Appropriate Loan Structure Cash Flow Analysis - Case Study | Cash Flow and Financial Forecasting | Documentation of the Credit Decision | Building Customer Relations and Negotiating Skills | Global Cash Flow Analysis | Review of Bankruptcy Rules and much more...

Target

Your Audience Advertise with CBA

Contact Lindsay Greene at (770) 541 - 0376 or lindsay@cbaofga.com.

1 8 | w w w . cbaof ga. com | Wi n t e r 2 0 1 3

ay /2 41 D ol o Sch

2014 Consumer Lending School Monday - Friday, May 5-9, 2014 | Julian Hester Training Center 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

CPE Credits Available

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!

CBA OF GEORGIA

LEGAL

HOTLINE (404) 844-2765

W in t e r 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

1st Quarter 2014 Education Seminars, Schools & Conferences Starting the year in the right direction. Education at its best!

The CBA University has a great line-up of educational programs for the 1st quarter. These programs are designed specifically for community bankers and the programs are led by local and national industry experts who truly understand community banking. Continuing Professional Education (CPE) credits are available upon request. To learn more and to register for a program of your choice, please visit the CBA website at www.cbaofga.com or contact the CBA Education Department at education@cbaofga.com.

January 2014 Business Development Workshop NEW Tuesday-Wednesday, January 14 - 15, 2014 JHTC at CBA Headquarters, Atlanta Writing an Effective Credit Memorandum Thursday, January 16, 2014 JHTC at CBA Headquarters, Atlanta Analyzing Personal & Corporate Financial Statements & Tax Returns (New Two-Day Program) Monday-Tuesday, January 27-28, 2014 JHTC at CBA Headquarters, Atlanta

February 2014 Information Technology (IT) Exam Preparation NEW Monday-Tuesday, February 3-4, 2014 The Lodge & Spa at Callaway Gardens, Pine Mountain 12th Annual Bank Secrecy Act (BSA) Officer School Tuesday-Thursday, February 4-6, 2014 JHTC at CBA Headquarters, Atlanta Banker Regulatory Forum Thursday, February 6, 2014 Idle Hour Country Club, Macon 6th Annual Bank Directorsâ&#x20AC;&#x2122; & Executive Management Conference Tuesday, February 11, 2014 Cobb Energy Performing Arts Centre, Atlanta How to Ensure Compliance with Deposit Regulations NEW Tuesday, February 25, 2014 Idle Hour Country Club, Macon

How to Ensure Compliance with Deposit Regulations NEW Wednesday, February 26, 2014 Hilton Garden Inn at Sugarloaf, Duluth How to Ensure Compliance with Deposit Regulations NEW Thursday, February 27, 2014 JHTC at CBA Headquarters, Atlanta

March 2014 Commercial Lending School Monday - Friday, March 10-14, 2014 JHTC at CBA Headquarters, Atlanta Putting the Pieces Together: Processing Mortgage Loan Applications NEW Tuesday, March 18, 2014 Crescent Mortgage Company - Training Facility, Atlanta Putting the Pieces Together: Processing Mortgage Loan Applications NEW Thursday, March 20, 2014 Idle Hour Country Club, Macon 2nd Annual Bank Security Management Conference Monday - Tuesday, March 24-25, 2014 Consumer and Commercial Loan Documentation Wednesday - Thursday, March 26-27, 2014 Idle Hour Country Club, Macon its Cred E L C / CPE ailable Av

Dates/locations are subject to change. For most current information, visit the CBA website at www.cbaofga.com or contact the CBA University Education Department at education@cbaofga.com. 2 0 | w w w . cbaof ga. com | Wi n t e r 2 0 1 3

2014 CBA WEBINARS

Affordable, Professional Training, When and Where You Choose!

he CBA is committed to superior webinar customer service and has been a leader in webinar training for over a decade. The CBA webinars are designed for most positions in a community bank from the teller line to the board room. The speakers are industry experts with long-term, real-life, hands-on experience. Benefits of participating in a CBA webinar are: • Easy to Use, Time effective, Cost effective, Convenient, Interactive, • Current Topics delivered by experienced speakers • Three Registration Options,

• Continuing Professional Education Credits, • Take-A-Toolkit (consists of an employee training log and a Quiz to measure staff learning), • Webinar series for Bank Directors, Compliance Professionals, Risk Managers, and Leaders, and • Much more! Register today for webinar training options that best meet your training needs! For the most current listing of webinars, visit www.cbaofga.com.

JANUARY 2014 1/7/2014 1/8/2014 1/9/2014 1/14/2014 1/15/2014

1/16/2014 1/22/2014 10/31/2013 1/23/2014 1/28/2014

Handling Dormant Accounts & Unclaimed Property Fee Income 2014: Challenges, Issues & What’s on the Horizon UBPR Peer Group Analysis for Directors IRA & HSA Review & Update, Including DOMA Implications Critical Risk Factors in Loan Portfolio Management Real Estate Collections Under the New CFPB Mortgage Servicing Rules Dealing with Adverse Action: What to Do & When to Do It Managing E-SIGN, E-Statements & E-Disclosures Commercial Appraisal Review: Income Versus Sales Comparison Approach HMDA Solutions: Achieving Data Integrity for Effective Fair Lending Analysis What is That Personal Tax Return Telling Me? Part 1: Form 1040, Schedules B, C & D Required Compliance for the Board & Senior Management, Including BSA

FEBRUARY 2014 2/4/2014 2/6/2014 2/11/2014 2/12/2014 2/13/2014 2/19/2014 2/20/2014 2/25/2014 2/26/2014 2/27/2014

Tax Refunds: ACH Postings, Exceptions & Bank Liability Construction to Permanent Lending Under the New CFPB Mortgage Rules Imaged Documents: What to Keep, What to Destroy, What Holds Up in Court Escrow Account Compliance: Rules, Best Practices & Examiner Hot Buttons Opening Accounts for Minors: Compliance, Ownership & Access Issues Expanding Your Required IT Risk Assessment Program The ALLL in Troubled Debt & Foreclosed Asset Restructuring Fair Labor Standards Act: Dos & Don’ts of Exempt & Non-Exempt Pay Issues Trust Compliance in Opening Accounts & Lending Email Archiving & Encryption: New Rules & Best Practices to Minimize Risks What is That Personal Tax Return Telling Me? Part 2: Schedules E & F

MARCH 2014 3/4/2014 3/6/2014 3/7/2014 3/11/2014 3/13/2014 3/18/2014 3/19/2014 3/20/2014 3/25/2014 3/26/2014 3/27/2014

Essential HR Recordkeeping from Hiring to Firing Creating a Social Media Policy & Strategy That Everyone Can “Like” Interagency Guidance for Reporting Elder Financial Exploitation Fiduciary Responsibilities for New Directors Understanding Asset/Liability Management Concepts Flood Insurance Compliance Update: Regulatory Compliance for Lenders, Including BSA Sub Chapter S Conversion in Community Banks: Issues & Answers Loan Origination in the Current Regulatory Environment: Improving Compliance, Costs & Turnaround Times Call Report Revisions & Updates Conducting the Annual Physical Security Review

Note: Dates/Topics subject to change.

W in t e r 2 0 1 3 | Ge o r g i a C o m m u n i t i es Fi r s t | 21

ServisFirst Correspondent Banking. Our name is our mission statement.

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

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205.949.0302 www.servisfirstbank.com Member FDIC Equal Housing Lender

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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

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

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

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

Community Bankers Association of Georgia Announces Two New Endorsed Member Companies The Community Bankers Association of Georgia (CBA), the only state association that exclusively serves Georgia’s community banks, announces the endorsement of Bahr Consulting for insurance review and Bank Trends for call report peer analysis. CBA conducts an extensive due-diligence before selecting a company as an Endorsed Member Company (EMC). Both companies earned the approval of both CBA’s Member Services Committee and the Board of Directors. The Member Services Committee is chaired by Brad Serff, President & CEO, Providence Bank, Alpharetta and the committee is comprised of senior level bankers from across the state. Bahr Consultants, Inc. is a “fee only” risk management and insurance consulting firm that specializes in analysis of financial institutions insurance exposures. The focus is on the Financial Institution Bond, Directors & Officers Liability, Cyber Liability, Bankers Professional Liability and Property/Casualty insurance exposures for banks. Founded by W.H. (Hank) Bahr in 1988, Bahr Consultants conducts research and completes the documentation needed to obtain competitive pricing and ensure proper insurance coverage. Mr. Bahr has been an instructor for the Certified Risk Manager Degree (CRM), and is a member, and past director, of the Society of Risk Management Consultants. CBA member banks can take advantage of special pricing as part of the endorsement. CBA selected Bank Trends, San Francisco, CA for its sophisticated peer group and market analyses on key metrics such as profitability, earnings generation, credit quality and efficiency. Additionally, Bank Trends provides CBA members with a 10% discount off of the already very low subscription rates. Annual

About Bahr Consultants, Inc. Bahr Consultants, Inc. is a “fee only” risk management and insurance consulting firm that specializes in analysis of financial institutions insurance exposures. The focus is on the Financial Institution Bond, Directors & Officers Liability, Cyber Liability, Bankers Professional Liability and Property/Casualty insurance exposures for banks. Non-Insurance solutions are examined as the insurance alternative. For more information, visit www. bahrconsultantsinc.com or call (865) 694-6098.

About Bank Trends Released in 2010 by Spotlight Financial Inc, Bank Trends provides in-depth peer group and trend analysis using Call Report data. This innovative web application gives bankers a user friendly analytical tool to identify market opportunities and make quantitativelysupported strategic and tactical decisions. For more information, visit www.bank-trends.com or contact Michael Stinson at michael@bank-trends.com or Reid Ten Kley at reid@spotlightfinancial.com. Both can be reached via telephone at (877) 717-6743.

subscription fees are based on bank asset size and most CBA members will pay an annual subscription fee between $900 and $1,250. “Our goal is to provide best-in-class analytics for community bankers so being selected as a CBA Endorsed Member Company is an important milestone for Bank Trends,” said Mr. Stinson. “We look forward to presenting how Bank Trends can help CBA member banks identify opportunities for growth and profit.” “We are pleased to announce the endorsement of both Bahr Consultants and Bank Trends,” 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. “I think our member banks will find an objective, third party review of their insurance policies an invaluable resource to ensure appropriate coverage at reasonable rates. The recent FDIC Advisory Statement on Director & Officer Insurance is one example that really drives this point home,” commented Mr. Braswell. "Bank Trends uses Call Report data to help community bank executives track financial ratio trends, analyze performance against peers, and identify opportunities to increase margins and improve profitability. Co-founders Michael Stinson and Reid Ten Kley are always available to answer questions and interpret data,” said Mr. Braswell.

Mark Your Calendar

CBA Day at the Capitol Wednesday February 12, 2014 Sponsored by

NEW LOCATION! NEW FORMAT! S u mme r 2 0 1 3 | Ge o r g i a C o mm u n i t i es Fi r s t | 23

F o c u s

o n

s o l u t i o n s

Hidden problem loans can lead to big expenses. Banks today face a growing number of high-

( ( ( ( ( (

risk loans that are hard to identify, but can lead to expensive foreclosures and REO (Real Estate Owned) transactions.

$2.5M loan

$5M

foreclosed property

in carrying 6% or $300k = $375k + u $75k u in total costs in REO costs costs for 6 months

A single REO transaction can put an unexpected blemish on your balance sheet and result in hundreds of thousands of dollars in carrying costs and foreclosure expenses.

To reduce risk and costs, banks need to spot problem loans sooner, and restructure them or sell assets before foreclosure begins. Collateral Concentration Report Credit Quality Dashboard

›

SNLBanker provides tools to help you minimize surprise foreclosures for a stronger balance sheet and improved performance.

›

Community Bankers Association of Georgia members: Learn more about managing your bank’s NPAs. Contact Julie Jones at 434.951.4419; partners@SNL.com.

ATR & QM in Simplified Terms Fowler Williams, CMB President Crescent Mortgage Company A CBA Endorsed Member Company

n Monday, January 10, 2014, the portions of the Wall Street Reform Act known as the Ability to Repay (ATR) and Qualified Mortgage (QM) will become effective. These rules will have a meaningful impact on community banks that all CBA members should understand. While these rules are complicated, they are not insurmountable for a community bank to understand, implement, and comply.

There are also QM options for small creditors, balloons, and lenders refinancing a loan they are currently servicing out of a loan with certain risky features. However, the CFPB did not state that this option could be used to refinance a borrower out of a current balloon loan.

Ability to Repay: Under ATR, a lender must make a reasonable, good-faith determination before or when you consummate a covered mortgage loan that the consumer has a reasonable ability to repay the loan. This must include underwriting factors like current employment status, current income and assets a consumer can use to repay the loan, monthly payments for the house, taxes and insurance, liabilities, alimony, child support, debt to income ratios (DTI) and credit history.

First you should ensure that covered loans at your bank will meet the ability to repay standard. Loans not meeting the ATR standard could mean fines and penalties including refunding borrowers APR fees and legal costs for up to three years. It could also lead to a borrower defense of foreclosure if ATR is not met.

Qualified Mortgage: QM is a subset of the ATR rule, offering lenders a safe harbor, or rebuttable presumption of compliance based on certain underwriting criteria and APR thresholds. There are several different types of QM. For all QM classifications, a loan cannot exceed a term of 30 years, have risky features such as balloon, interest only, prepayment penalties, or negative amortization, and are subject to a “points and fees” test. The “General” QM standard adds criteria that a borrower’s DTI cannot exceed 43%. Loans that are eligible for sale direct to Fannie Mae, Freddie Mac, FHA, VA and USDA can use the “Temporary” QM. Most notably, this option allows for the DTI to exceed 43 percent based on the agency specific guidelines at the time of the loan.

How should banks prepare for ATR and QM?

Second, on loans not eligible for sale to the aforementioned agencies, you should decide if you will make QM loans only, or allow for loans that meet the ATR requirement but not classified as QM. Once you have decided the types of loans you will make, you will need to create clear written policies within your bank to ensure you meet the ATR and QM standards. On each transaction, you should memorialize how the standards were met and are required to retain this documentation for at least three years. To learn more, contact Ashli Matson at (770) 714-5417 or amatson@crescentmortgage.net.

Putting the Pieces Together: Processing Mortgage Loan Applications Tuesday, March 18, 2014, Crescent Mortgage Company, Atlanta Thursday, March 20, 2014, Idle Hour Country Club, Macon A high level overview of the basic principles of processing and underwriting to help become comfortable with the fundamental skills required to effectively take and understand a mortgage application. Join us for this insightful workshop, and you'll maximize your effectiveness and value to both your borrowers and your company. Perfect for Originators, Management, and Processors. W in t e r 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

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

Claim Denied? Hank Bahr President Bahr Consultants, Inc. A CBA Endorsed Member Company

What Do You Do Now?

ou’ve paid premiums to your insurance company for years. You haven’t had any claims or maybe just a few small claims in the past. Now, that catastrophic loss you have been fearing all of these years has occurred, your insurance company says it will not pay. What do you do now? Remember, there are two things you need to keep in mind while handling a claim. 1) When dealing with an insurance loss, no claim, no matter how large or how small, is NOT covered UNTIL your claim check from the insurance company has cleared the bank. 2) Just because the insurance company tells you your loss is not covered, doesn’t mean the insurance commissioner or the courts will agree with them. However, there are some practical approaches to solving this problem. How Was the Claim Denied?

First, examine the denial. Was it written or oral? Make sure all claim denials are in writing. The fact that your agent verbally stated a loss was not covered during a telephone conversation does not mean there is no coverage. Your notification of a claim should be made in writing to the insurance company. Likewise, the insurance company’s denial should also be in writing. Refer to the “Conditions” section of your insurance policy for when and how to file a claim. It will tell you exactly what a “claim” is and when you need to notify the insurance company about it. Do not wait. When in doubt, notify your insurance agent of a situation that could become a claim. Don’t have a covered loss denied because the proper notice was not given! Review the Denial Carefully Once a written denial has been received from the insurance company, review it with your insurance policy to see if you agree with the explanation. If you do not, inform the insurance company of your interpretation of the policy in writing and request further discussion. Remember, the courts will construe any ambiguity in language in the insurance policy in your favor.

this policy provides coverage for this “uncovered” loss? If so, ask the agent or the insurance company how your situation is different. Ask the Insurance Commissioner for Help If you try all of the above and your claim is still denied, consider going to the State Insurance Commissioner with your grievance. The Commissioner may be able to get action where you cannot. Be sure to send copies of all pertinent correspondence for the commissioner’s review. The Commissioner’s office normally responds quickly to such grievances. Sue Only When Necessary If all of the above fails, consider legal action. Going to an attorney can be an expensive process, but it may be the only way to force the insurance company into paying what you believe is a legitimate claim. Preventive Measures There are measures that can be taken to help prevent this kind of a situation prior to a claim: 1) Do not assume the insurance coverage exists. Inquire to your agent (in writing) about what is covered and what is not. 2) Be sure to keep the agent’s written answers on record, and 3) ensure you review your insurance program annually. Just like you, your company needs an annual “physical.” Remember, just because an insurance company initially denies a claim does not mean the loss is not covered. Some companies have the reputation for denying large claims just because they are large in hopes the claim will “just go away.” Unfortunately, too often they do. If you believe you have coverage, stand up for your beliefs. You just might be right! To learn more, contact Hank Bahr at (865) 694-6098 or hank@bahrconsultantsinc.com.

Another question to consider is why you thought coverage existed. Did your agent indicate you had coverage for this type of a loss? Is there correspondence or literature stating

W in t e r 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

When you represent everyone...

You represent no one.

Grow your bank with us.

Independent Community Bankers of America速

www.icba.org

Endorsed by your Association. Used by your Peers. Save time and money with CBA Endorsed Member Companies When itâ&#x20AC;&#x2122;s time to research new service providers or rethink current ones, your first call should be to the CBA of Georgia. Each of the Endorsed Member Companies below has already earned the seal of approval from the CBA members. Many offer special pricing to CBA members. Explore the revenue-enhancement opportunities with these vendors and improve your bottom line! ACG | Refurbished ATMs/Currency Counting Phil Winn | phil@acg.us.com | (770) 442-9800

ICBA Securities | Quality Investment Products Jim Reber | jreber@icbasecurities.com | (901) 762-5884

Bahr Consultants, Inc.| Insurance Review Hank Bahr |hank@bahrconsultantsinc.com | (865) 694-6098

IMPACT Financial Services | Overdraft Privilege Program Bob Flowers, Jr. | bflowers@impactfinancial.com | (770) 477-9452

Banc Consulting Partners | Executive Benefits/BOLI Brian Miller | bmiller@yourbankpartner.com | (770) 485-8559

PULSE | Debit Network Program Mark Reda|markreda@pulsenetwork.com | (800) 854-2210

banc-serv Partners, LLC | SBA Loans, Packaging, Sales & Servicing Brad Crawford | bcrawford@banc-serv.com | (317) 664-5247

Sageworks | Cash Flow Analysis Sanaa Bhambri| sanaa.bhambri@sageworks.com (919) 851-7474 ext. 513

BankersEdge | Online /DVD Training Program Nora Ebersbach | nebersbach@bankersedge.com | (314) 542-6493

SHAZAM | Debit Card/EFT Processing Mark Fucci | mfucci@shazam.net | (866) 644-9314

BankSmart | Bank Operations/Vendor Management Jim Wilkson | jwilkson@banksmartusa.com | (813) 774-8000

SNL Financial | Financial Industry Data Julie Jones| jjones@snl.com | (434) 951-4419

Bank Trends | Peer Analysis Michael Stinson| michael@bank-trends.com| (877) 717-6743

Southwest Financial Services, Ltd. | Flood Determination Insurance & Appraisal Management Stephanie Bennett | stephanie.bennett@sfsltd.com | (513) 621-6699

Give us a call at (770) 541-4490 or (800) 648-8215 or visit CBA online at www.cbaofga.com.

W in t e r 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

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

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