Spring 2017 Georgia Communities First Magazine

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GeorgiaCommunitiesFirst Official Publication of the Community Bankers Association of Georgia

SPRING 2017

INSIDE 2017 Conventions

AMELIA ISLAND &

BOSTON SPRING REGIONAL

LUNCHEON MEETINGS

Bank Directors &

EXECUTIVE MANAGEMENT

Scholarships EDUCATIONAL OPPORTUNITIES

Member:



contents SPRING 2017

C B A S TA F F Rob Braswell President & CEO rob@cbaofga.com

f e at u r e d

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19

Lori Godfrey Director of Legislative and Regulatory Affairs lori@cbaofga.com

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Lindsay Greene Vice President Marketing & Member Services lindsay@cbaofga.com Jeremy Thomens Graphic Design & Member Services Coordinator jeremy@cbaofga.com Christy Lee Marketing Specialist christy@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 Connie Shepard Education Associate connie@cbaofga.com

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Change is the Only Constant

3

Dismantling Durbin

l e g i s l at i v e

4

General Counsel Corner: Your Bank’s Website and the Americans with Disabilities Act

5

2017 Day at the Capitol

6

A Letter from Lori

c o r p o r at e e v e n t s

8

2017 Spring Regional Luncheon & PAC/PR Golf Tournaments

9

2017 Women In Banking

11 2017 Spring Clay Shoot

Ariana Kendricks Graphic Design Intern intern@cbaofga.com

16 2017 Leadership Division Convention & Mini-Trade Show: Amelia Island! 19 2017 Annual Meeting & Trade Show: Boston! 23 GO Club & Lifetime Service Awards e d u c at i o n

24 Webinars 26 Bank Directors’ & Executive Management Conference 28 CBA University Schools member services

31 Scholarships 32 Endorsed Member Spotlight: Alex Jernigan of SHAZAM

Tammy Maass CFO tammy@cbaofga.com Stephanie Taylor Accounting/Operations Coordinator stephanie@cbaofga.com

conventions

s ta y connected

Scan with your smartphone to view our website.

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 S p r i n g 2 0 1 7 | G e org i a Co m m un i ti es F i rs t | 1


FROM THE PRESIDENT'S DESK

CHANGE IS THE ONLY CONSTANT “It doesn’t matter where you are, you are nowhere compared to where you can go.” – Bob Proctor ___ I am awestruck when I reflect on all the changes and innovations that have taken place in my lifetime. And although I sometimes lament the passing of a simpler time, I know that I am also the beneficiary of living in an era of convenience in which most anything can be accessed, reviewed, ordered or purchased within a matter of minutes or less. Furthermore, not only is the speed of change astonishing, but the impact that many of these innovations have on the way we conduct business is tremendous. To illustrate, this year marks the 50th anniversary of the automated teller machine. It debuted at a Barclays Bank in London. This milestone reminded me of when I was a young teen and accompanied my mom, a community banker in Americus, GA, many times to the first free-standing ATM in town when she was “on call” and had to determine if the machine needed replenishing or was malfunctioning. It was such a marvel to our local community that you could get access to cash on the weekends. (By the way, I take comfort in knowing that all banks now have a greater level of security regarding servicing their ATMs than I provided as a 150 pound, pimply-faced kid.) Ironically, even though the estimated 3 million ATMs in use globally are still workhorses and used by 61% of consumers at least once per month, some in the industry consider the ATM at a crossroads due to emerging new banking channels – which leads into a recent article I read about the future connectivity of automobiles and banking. The premise was that the revolution in automotive technology and mobility services will be a financial revolution as well. The writer stated, “From frictionless payments to improved underwriting models, connected cars will rewrite the rules for how and where banks interact with their customers and change the way people manage and spend their money.” Once you think about the speed of innovation, it becomes easy to visualize that in the near future we may have cars that automatically make a payment at the gas pump or the toll booth 2 | ww w.cbaofga.co m | Spring 2017

Rob Braswell President & CEO Community Bankers Association of Georgia

without us ever having to reach into our wallets. Drivers will be able to check their balances, pay bills and move money from the convenience of their car via voice recognition. As innovations continue to swiftly change customers’ expectations, banks must continue to adapt to remain the service providers of choice. Similarly, banks should continue to explore potential new markets that seem to be growing by leaps and bounds in Georgia – the television and movie industry studios and productions, the many technology hubs that have sprouted up in Atlanta, and the United States Army Cyber Center of Excellence at Fort Gordon in Augusta to name a few. Speaking of new markets, at the time of this writing, there is currently a bill in the state legislature that would help pave the way for a potential spaceport in Camden County – now that definitely would be a new market. Successful community banking has always been built upon the cornerstone of having strong relationships with their customers – and thankfully, I do not think that will ever change. However, the definition of what constitutes a “relationship” has now expanded for many customers and we must always be vigilant in providing ways to develop and nurture those relationships. Likewise, we should always keep our eyes open to new markets that are created in this “new,” technology-driven era in which we live. After all, you would not have wanted to be the only bank without an ATM over the past 50 years . . . “The best thing you can do is the right thing; the next best thing you can do is the wrong thing; the worst thing you can do is nothing.” – Theodore Roosevelt____ As always, please feel free to contact me or any of us at the CBA if we can assist you in any way. Best regards,


FINER

DISMANTLING DURBIN

POINTS

Cam Fine President & CEO Independent Community Bankers of America

We knew this was going to happen. When Congress passed the Durbin Amendment, ICBA and community bankers said government price controls on debit interchange fees would dramatically harm our industry. Well, six years later, we are witnessing the unfortunate effects of this retailer-promoted government intervention in the payments marketplace. Despite the law’s exemption for financial institutions with $10 billion or less in assets, community bankers repeatedly told Congress that we were never going to be spared the effects of this market intrusion. As ICBA noted at the time, community banks have no real protection from the price ceilings because retailers can now control the routing of debit card transactions, allowing them to bypass smaller institutions. Further, large retailers can now steer customers to use the rate-controlled cards issued by the largest financial institutions.

bypassing the network agreements that allow them to use the electronic payment system in the first place. So merchants get to enjoy the benefits of the payments system while community banks and financial institutions pay an unfair share of the cost to maintain the system.

Retailers—not consumers—were always going to be the beneficiaries of the Durbin Amendment. And once Congress unleashed the heavy hand of government on the scales of the marketplace, they could not protect community banks from the consequences. A close look at the evidence today shows that policymakers should have heeded our warnings and should now repeal Durbin, as proposed by House Financial Services Committee Chairman Jeb Hensarling (R-Texas).

All of this is why ICBA strongly supports Chairman Hensarling’s Financial CHOICE Act, which does away with Durbin while enacting significant regulatory relief. All in all, the evidence clearly indicates that government price controls are failing consumers, community banks and the financial system as a whole. Anyone who says otherwise—whether on Capitol Hill or in your own backyard—doesn’t have the interests of community banks at heart.

Last, but certainly not least, community banks are being harmed by network routing and exclusivity provisions that require issuers to add an “unaffiliated” payment network to their debit cards. This involves substantial and recurring administrative costs for local institutions. Here’s why: As interchange revenues at the largest financial institutions shrink, more of the burden for funding the payments system is being shouldered by the community banks that were supposed to be exempt.

First of all, consumers are not benefiting from the funding transfer to retailers. The Electronic Payments Coalition estimates that retailers are pocketing up to $8 billion per year— totaling more than $36 billion since the rules were adopted in October 2011. The retailers even admit as much, with a Federal Reserve Bank of Richmond survey finding that 98 percent of merchants said they have either maintained or raised prices since debit interchange controls took effect. Second, community banks are experiencing lower net debit interchange revenues because—as we warned—retailers can steer customers to the lowest-cost network. Not only are community banks receiving lower interchange rates while customers lose choice at the point of sale; retailers are also

S p r i n g 2 0 1 7 | G e org i a Co m m un i ti es F i rs t | 3


Corner

L EG I S L AT I V E

GENERAL COUNSEL

Spring 2017

Your Bank’s Website and the Americans With Disabilities Act

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

cbahotline

@ jamesbatesllp.com

John W. Sillay

Attorney (478) 749-9923

jsillay@jamesbatesllp.com

Corrie E. Hall

Attorney (478) 749-9949

chall@jamesbatesllp.com

By John W. Sillay and Corrie E. Hall Since the latter part of 2016, banks across the country have been receiving letters from law firms alleging violations of the Americans with Disabilities Act (“ADA”). These so-called “violations” relate to banks’ website accessibility. These letters provide the names of a non-profit entity and an individual, both identified as claimants in a potential legal action, and outline how the receiving bank’s website does not comply with the Web Content Accessibility Guidelines (the “W3C Guidelines”) published by the World Wide Web Consortium (“W3C”). The letters allege that the recipient bank’s failure to comply with the W3C Guidelines exposes the bank to liability under the ADA. The letter then offers the recipient bank an opportunity to pay the claimant’s attorney’s fees and to engage the transmitting law firm to perform a review of the Bank’s website accessibility. The letter also assures the recipient bank that if they are sued for an ADA violation based on website accessibility after engaging the firm to review their website, the firm promises to speak to the plaintiffs in any such lawsuit and assure them that there is no claim to be had. There is a tendency to liken these letters to the patent troll letters that circulated a few years ago regarding ATM process patents. Whether or not this comparison is warranted, the general advice regarding this latest round of letters is the same: it is best not to ignore them. Courts have long held that the ADA guarantees accessibility to physical locations, but the role that technology plays in providing (or preventing) access to physical locations is an area of debate among the Federal Circuit Courts. In Rendon v. Valleycrest Productions, Ltd., 294 F.3d 1279 (2002), the U.S. Court of Appeals for the Eleventh Circuit, of which Georgia is a part, ruled that use of a non-ADA compliant telephone screening process for “Who Wants to Be a Millionaire?” violated the ADA. The television show was taped in a physical location and participation required the use of the non-ADA complaint telephonic process. That same year, however, the United States District Court for the Southern District of Florida issued its opinion in Access Now, Inc. v. Southwest Airlines, Co., 227 F.Supp.2d 1312 (2002), in which the district court cited to Rendon in support of its holding that “…because the Internet website, southwest.com, does not exist in any particular geographical location, Plaintiffs are unable to demonstrate that Southwest’s website impedes their access to a specific, physical, concrete space such as a particular airline ticket counter or travel agency.” Southwest, 227 F.Supp.2d at 1321. While these Eleventh Circuit opinions broaden the ADA’s reach to some degree, the United States District Court for the Northern District of California, in

National Federation of the Blind v. Target Corporation, 452 F. Supp. 2d 946., went well beyond the Eleventh Circuit’s holdings, further blurring the line between a physical location and the services provided over the Internet. In Target, the Court refused to dismiss an action against Target, finding that because Target’s website could not be read by a screen reader, those plaintiffs had a colorable claim against Target under the ADA. Unfortunately, this case settled before the district court issued an opinion that analyzed the ADA’s website accessibility requirements. Nevertheless, the ruling in Target has been used by potential claimants as support for the principle that inaccessible websites are violative of the ADA. To address this unresolved area, the Department of Justice is currently establishing clear guidelines for internet ADA compliance. The Department of Justice expects to release its formal guidelines establishing accessibility rules under the ADA in 2018. This creates ambiguity at present, meaning that a bank in receipt of one of these ADA compliance letters should not dismiss the letter as being wholly without merit. The Target case shows that it is possible for a court to determine that your bank’s website is held to the accessibility standards of the ADA. Even still, the offer made in these ADA compliance letters is worthy of suspicion. These potential claimants cannot guarantee that payment of the requested sum will absolve your bank of potential liability under the ADA. The ADA claims alleged in these letters cannot be reduced to a single claimant or single action, allowing other potential claimants to engage a different firm to bring the same claim the bank just settled. Because of this shortcoming, the letters read more like an engagement letter than a true settlement offer. This structure has already resulted in at least one of these law firms being sued in Texas for ethical violations. While it appears unwise to settle with a potential claimant and simultaneously engage their law firm to review your bank’s website, it is worth the effort to engage (through your bank’s counsel) in a dialogue with any firm and their proposed claimants, to assure them that your bank takes ADA compliance seriously. It may also be helpful to engage your bank’s website provider to review your bank’s website accessibility and to communicate to any law firm that this review is in process. Furthermore, should you find it necessary, there are specialized companies that can consult with your bank to ensure that your website meets all accessibility guidelines. By taking these steps, your bank will position itself to defend against any claims alleged in these letters or any subsequent claims.

PRESENTED BY GEORGIA’S LAW FIRM: 4 | ww w.cbaofga.co m | Spring 2017 OFFICES MACON + ATLANTA

“General Counsel Corner,” a recurring column featuring legal news and information of interest to CBA members, is brought to you by James-Bates-Brannan-Groover-LLP. Visit us at GeorgiasLawFirm.com


L EG I S L AT I V E

CBA MEMBER VOICES HEARD AT

DAY AT THE CAPITOL The morning portion of CBA’s Day at the Capitol event featured our Board Members, Leadership Division Executive Officers and several guests being updated by many of Georgia’s key legislative leaders and expressing first-hand our members’ support or concerns regarding several key bills affecting the banking industry. A few of the bills discussed included HB 192 – Business Judgment Rule/Director Liability, by Rep. Beth Beskin; SB 86 – Foreclosure Confirmation Waiver Prohibition, by Sen. Jesse Stone; HB 221 – Powers of Attorney, by Rep. Chuck Efstration; SB 134 – Save, Earn, Win Act, by President Pro Tem David Shafer; and, HB 143 – DBF Housekeeping Bill, by Rep. Bruce Williamson. The CBA delegation enjoyed lunch in the Georgia Room of the Sloppy Floyd Building. Following CBA’s annual winter Board of Directors Meeting, members attended a briefing in which attendees heard an update on the agency and Departmentsponsored legislation from Commissioner Kevin Hagler of the Georgia Department of Banking & Finance and additional legislative commentary provided by CBA President & CEO Rob Braswell. The Legislative Reception began immediately fol-

lowing the briefing. Members and legislators took advantage of the opportunity to network and discuss legislation impacting our industry. The CBA is very grateful to everyone who supported and participated in the 2017 Day at the Capitol – your presence and feedback truly make a difference!

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THANKS TO OUR EXCLUSIVE SPONSOR

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L EG I S L AT I V E

A LETTER FROM LORI Lori Godfrey Director of Legislative and Regulatory Affairs, Community Bankers Association of Georgia This quarter has proven to be busy and eventful. The session is now in full swing and the Political Action Committee (PAC) 2017 fundraising campaign has begun. My bank visits have somewhat been put on hold as my attention is now focused on the 2017 Legislative Session. I am down at the Capitol fighting for what is in the best interest of community banks. PAC mailings were sent out in early January and our Board of Directors has established two goals for us to achieve: 1) 100% participation by all CBA Member Banks and 2) $100,000. While the goals are a stretch from what we have accomplished in years past, we feel that the goals are very achievable with everyone’s participation. The lobbying activities that we have done so far during the session have really exemplified the need for PAC contributions and the difference that we can make collectively. Coming together as community bankers, we can shape our industry together. If you have not done so already, please fill out your contribution form and return it at your earliest convenience. I challenge you to come up with creative ways within your organization to raise PAC funds and to share your ideas with others.

On February 15, 2017, we held the 2017 Community Banking Day at the Capitol. Our speakers included Attorney General Chris Carr, Senate President Pro Tempore David Shafer, Rep. Wendell Willard, Rep. Butch Parrish, Sen. John Kennedy, Rep. Chuck Efstration, Rep. Greg Morris, Rep. Lee Hawkins, Sen. William T. Ligon, Jr., and Commissioner Kevin Hagler. We learned about the following bills: HB 192 – Business Judgment Rule/Director Liability, by Rep. Beth Beskin; SB 86 – Foreclosure Confirmation Waiver Prohibition, by Sen. Jesse Stone; HB 221 – Powers of Attorney, by Rep. Chuck Efstration; and SB 134 – Save, Earn, Win Act, by President Pro Tem David Shafer; and HB 143 – DBF Housekeeping Bill, by Rep. Bruce Williamson. I continue to welcome any feedback that you have on specific issues that are impacting your institution. I would love the opportunity to see what solutions we can come up with together to improve community banking.

HIGHLIGHTS FROM MACON’S COMPLIANCE-FOCUSED

BANKER REGULATORY FORUM The CBA hosted its Banker Regulatory Forum on Groundhog Day, Thursday, February 2, at the Idle Hour Country Club in Macon. Compliance Officers, CEOs and others gathered for CBA’s first Compliance-focused Banker Regulatory Forum held in Macon. The format has been revised to cover the agencies’ hot topics first, then an open discussion is encouraged, followed by prepared questions, time permitting. Topics discussed at the first quarter forum include HMDA, TRID’s expansion into construction loans, vendor and third party servicers risk management programs, the Fair Lending Act and examiner expectations regarding due diligence and consumer complaint recordation. Following lunch with the regulators, the bankers’ only roundtable included a legal update provided by Michael White, Partner, James-Bates-BrannanGroover-LLP (CBA General Counsel and Associate Member) and additional discussion of timely hot topics. SPECIAL THANKS TO THE FORUMS’ EXCLUSIVE SPONSOR CBA’s next Banker Regulatory Forum will be held on Thursday, May 4, 2017, at CBA Headquarters in Atlanta. The focus will be Safety & Soundness. Contact CBA to learn more and register today! 6 | ww w.cbaofga.co m | Spring 2017


L EG I S L AT I V E

FEATURING

To find out more information and to register for this event visit

S p r i n g 2 0 1 7 | G e org i a Co m m un i ti es F i rs t | 7


C O R P O R AT E E V E N T S

8TH ANNUAL

SPRING REGIONAL

LUNCHEON MEETINGS ALPHARETTA April 10, 2017

MACON April 11, 2017

ALBANY April 12, 2017

&

PAC/PR GOLF

TOURNAMENTS

Each Spring Regional Luncheon will begin at 10:30 am with the popular Legislative Update, Accounting Update & Bankers Only Peer Group Meeting, when bankers can openly discuss hot topics important to them and receive feedback from their peers. Also during this time, hear a Legislative Update presented by Dan Brannan, Partner, James-Bates-Brannan-Groover-LLP (General Counsel and the Luncheons’ Exclusive Sponsor) and an Accounting Update from Tim Veal, Partner, Nichols Cauley & Associates, LLC. All bankers are kindly encouraged to attend this intimate yet open peer group exchange. There is no additional cost to attend. Immediately following the Peer Group Meetings will be Registration/Networking for all Luncheon and Golf participants. Promptly at 11:45 am the buffet lines will open and we’ll begin the informative luncheon program. This year’s program will educate you on “Bankruption” presented by John Waupsh, Kasasa, Austin, TX and an Industry Update presented by Jeffrey Caughron, The Baker Group, Oklahoma City, OK. Neil Joiner will once again join us in Macon to share some new humorous tales and adjourn the meeting. In Alpharetta and Albany, enjoy a beautiful afternoon and evening on the golf course while supporting CBA’s PAC/PR Funds (shotgun start at 2:00 pm). The Tournaments will end after a fun cookout featuring burgers, dogs, all the fixins and assorted beverages. The CBA maintains the only state PAC working exclusively for Georgia’s community banks. Make plans now to play, raise funds and network! “Bankruption” John Waupsh, Chief Innovation Officer Kasasa, Austin, TX It’s becoming increasingly difficult for community banks to deliver the digital banking experience that consumers are looking for. Is your financial institution leveraging the right technology to match this marketplace reality?

“Eyes Wide Open: A New Landscape for Interest Rate Risk and Investment Management” Jeffrey F. Caughron, President & CEO, The Baker Group, Oklahoma City, OK

Financial markets have shifted abruptly as a new administration has introduced policy proposals that sharply diverge from what we’ve seen before. Regulatory relief, tax reform and a substantial fiscal stimulus package promise to change the market John will reveal how technology is changing consumer beenvironment notably. After an extended low rate environment, havior and tactics to help you enhance your digital strategy, this might entice some institutions to “reach for yield” in highwhich products consumers are hungry for and how to create er risk assets thus driving regulators to focus their attention a great experience, ways to transform the consumer journey on interest rate risk like never before. Jeff’s session will cover to create high satisfaction and drive profit, and techniques the range of interest rate risk related issues you may face in the for building team unity around your institution’s top goals. coming months, including what to expect in future exams, and thoughts on prudent investment strategies. “Sometimes It’s Best Not to Ask Too Many Questions” Neil Joiner, Retired Georgia Community Banker, Vienna Friend and retired community banker Neil Joiner will share a few new humorous tales in his presentation entitled, “Sometimes It’s Best Not to Ask Too Many Questions.” In addition, Neil will have his new book Lessons from the Ladder available for purchase.

UP TO ONE HOUR OF CPE CREDITS AVAILABLE

8 | ww w.cbaofga.co m | Spring 2017

LUNCHEON MEETINGS SPONSORED BY

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C O R P O R AT E E V E N T S

THANK YOU TO OUR GOLF TOURNAMENT SPONSORS Beverage Cart North & South

1st & 2nd Place Team Cash Prizes- North & South

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Print Supply Hole Sponsor North & South

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AGENDA FOR EACH MEETING 10:00 a.m. 10:30 a.m. 11:15 a.m. 11:45 a.m. 11:55 a.m. Noon 12:30 p.m. 1:00 p.m.

Banker Registration Bankers Only Peer Group Meeting Networking & Registration Buffet Opens Welcome Remarks “Bankruption,” John Waupsh, Kasasa “Eyes Wide Open,” Jeffrey Caughron, The Baker Group Closing Remarks / Adjourn

Macon only: 1:00 p.m. Neil Joiner, Retired Georgia Community Banker, Vienna (1:20 p.m. Adjourn) Alpharetta & Albany only: 2:00 p.m. Leadership Division PAC/PR Golf Tournament (Shotgun Start) 6:00 p.m. Post-tournament Cookout

PRICING PER LOCATION

Gift Baskets North & South

Registration is open! For Golf Tournament sponsorship opportunities, contact Lindsay Greene at Lindsay@ cbaofga.com or 770-541-0376. For general information, contact Peake Wilson at Peake@cbaofga.com or 770-5410379.

Members:

Lunch Only - $55 per person Lunch & Golf - $150 per player or $125 per player when registering a foursome

TIB 1/4 pg ad 2017 CBA-GA 4 ANNUAL th

seminar THANK YOU TO OUR 2017 WOMEN IN BANKING SPONSORS

CONTINENTAL BREAKFAST & SPEAKER PAM MALARA

GOODIE BAGS SPONSOR

NAME BADGE SPONSOR

SPEAKER MARY NORWOOD

LUNCH

CO-SPONSOR KEYNOTE SPEAKER JODY URQUHART

Watch for highlights online and in the summer issue of Georgia Communities First magazine.

S p r i n g 2 0 1 7 | G e org i a Co m m un i ti es F i rs t | 9


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C O R P O R AT E E V E N T S

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BENEFITTING CBA’S PAC/PR

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SPRING 2017 PAC/PR CLAY SHOOT

MARCH 23, 2017 WYNFIELD PLANTATION, ALBANY

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It’s a Totally New Vision and Ballgame!

May 2, 2017 Atlanta Braves vs. NY Mets

You’re Invited! The Baker Group’s seminar attendees will enjoy a dazzling evening of baseball as the New York Mets play the Atlanta Braves in their new SunTrust Park. The park doesn’t open to the public until May 10, but we’ve made special arrangements for our seminar attendees to join season ticket holders for this very special event. This ultimate entertainment experience includes: • Transportation to and from the ballpark • Some of the best field-level seats in the stadium • Décor celebrating the greatest players to wear the Braves uniform • Flat screen high definition TVs • Great food and adult beverages It’s all on us—but seating is limited to the first 75 conference attendees who register online at: GoBaker.com/georgia.

We’ll see you at the ballpark! 1 2 | ww w.cbaofga.co m | Sp ring 2017


S E M I N A R

Leadership requires vision. For financial institutions, vision can be defined as “the ability to see and assess an unfolding financial landscape.” Successful managers seek out the tools, resources, and processes that

bolster sound decisions in the face of changing market conditions. They also develop the plans and winning strategies necessary to lead their financial institutions to high performance. Establishing such a plan requires a trusted partner; The Baker Group is that partner.

May 2-3, 2017

Atlanta, Georgia Renaissance Atlanta Waverly Hotel & Convention Center Galleria Specialty Mall 2450 Galleria Pkwy Atlanta, GA 30339 770.953.4500

The Baker Group’s Interest Rate Risk and Investment Strategies Seminar was developed specifically for managers of financial institutions. Designed to meet the challenges of 2017, it is an in-depth examination of current topics including: • Market Conditions and the Banking Environment • Interest Rates, Liquidity, and Balance Sheet Strategies: Everything’s a Cycle • Modeling Interest Rate Risk: Best Practices and Regulatory Compliance • Investment Strategy and Security Selection for Each Rate Environment • Municipal Bonds and the Pension Crisis: How to Develop a Process to Protect Your Portfolio • Techniques for Managing MBS to Minimize Prepay Volatility • Liquidity, Cash Flow, and the Bond Portfolio For your convenience, register online at GoBaker.com/georgia. Call Skoshi Heron at 888.990.0010 for more information.

Agenda

Tuesday Breakfast 7:30 Seminar 8:30 Lunch 12:00 Adjourn 4:00 Braves Game 7:05

a.m. a.m. p.m. p.m.

Wednesday Breakfast 7:30 Seminar 8:30 Conclusion 12:00

a.m. a.m. p.m.

p.m.

Guest Speaker

Dr. Lacy H. Hunt — Executive Vice President of Hoisington Investment Management Company

Who Should Attend Financial institutions’ CEOs, CFOs, investment officers, board members, and those who are directly or indirectly responsible for financial management functions will benefit from this seminar. There is no cost for this seminar. CPE credits will be earned for your attendance.

Member: FINRA and SIPC www.GoBaker.com Oklahoma City, OK | Atlanta, GA | Austin, TX | Indianapolis, IN | Salt Lake City, UT | Springfield, IL | 800.937.2257 The Baker Group LP is the sole authorized distributor for the products and services developed and provided by The Baker Group Software Solutions, Inc.

S p r i n g 2 0 1 7 | G e org i a Co m m un i ti es F i rs t | 13


C O R P O R AT E E V E N T S

SPONSORSHIP & ADVERTISING

OPPORTUNITIES

Increase your visibility while supporting Georgia’s community banks Imagine yourself in a room full of bankers giving YOU their undivided attention… Sound good? It can happen! With sponsorships from CBA, you can easily tell your story and the benefits of your products and services. Here are just a few examples – •

7-Minute Spotlight at CBA’s Annual Meeting in Boston. Enjoy 7 minutes of pure information and sales during the General Session…. and award a lucky banker $1,000 cash at the end of your presentation.

Looking to connect with bankers in the Leadership Division? Consider a breakfast or break sponsorship at the CBA Leadership Academy.

Sponsor great entertainment, keynote speakers and more and the stage is yours!

Looking to reach a targeted group of bankers – mortgage lenders, compliance officers, HR managers? Our affordable education sponsorships provide the perfect setting to network and develop relationships.

Increase your organization’s exposure, heighten your brand recognition, and drive sales by sponsoring or advertising with CBA. You’ll enjoy greater visibility from your competition, position yourself as an industry leader, and build brand awareness among event attendees. For more information, contact Lindsay Greene at (770) 541-0376 or email lindsay@cbaofga.com.

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CONVENTIONS

39th ANNUAL

LEADERSHIP DIVISION CONVENTION & MINI-TRADE SHOW

NEXT REGULATION

THE RITZ-CARLTON • AMELIA ISLAND, FL THURSDAY- SUNDAY, JUNE 22-25, 2017

THE KEYNOTE ADDRESSES DAVID GLICKMAN

JAY HEWITT

FRIDAY, JUNE 23RD

SATURDAY, JUNE 24TH

“Funny is the New Serious ‑ Changing Your Perspective To Produce Powerful Results”

“Finish Line Vision ‑ Setting Goals Just Out of Reach, But Not Out of Sight”

Just look around the average workplace and you’ll see most employees dealing with lots of stress. Well, the good news is that there’s a successful strategy to approach these challenges. David Glickman will teach you how Funny Is The New Serious. Changing your perspective will lead to a profound way of handling these frustrations. And this program isn’t so much a traditional speech as it is a full-blown, high-energy one-man show. It’s got observational humor, funny visuals, hilarious song parodies, and a big “rock and roll” finish!

How do you convert obstacles and disappointment into better performance and an improved bottom line? In Finish Line Vision®, speaker Jay Hewitt reveals how, despite being a Type 1 diabetic, he has pushed himself to incredible personal and professional triumphs. His compelling, energetic keynote— delivered with humor, honesty and relatable specifics—shows audiences how they, too, can overcome whatever life throws at them and reach unimaginable levels of success and teamwork.

David Glickman has been a professional speaker and entertainer for over 25 years and has presented over 2000 programs. Before transitioning from “show business” to “business shows,” he worked with everyone from The Beach Boys to Steve Martin and made several national television appearances.

An Ironman triathlete and practicing attorney, Jay is the only person with Type 1 diabetes ever to qualify for the U.S. National Triathlon Team. Jay’s presentation focuses on three guiding principles that can benefit everyone in business and in life: • Make the Bad Thing the Best Thing • Set Goals with Failure Potential • Earn Your Finish Line

MEET THE SPEAKERS TAKE YOUR REVENUES TO THE NEXT LEVEL - TRISH SPRINGFIELD, EVP, SOUTHERN FIRST BANK Trish Springfield is the Executive Vice President of Retail Banking for Southern First Bank, a $1.3 billion, NASDAQ bank in South Carolina. Join Trish as she reveals a number of proven non-interest income solutions that can add value to your bottom line, complete with tangible resources for research and implementation. CONVERSATION WITH THE REGULATORS Moderated by CBA’s President & CEO Rob Braswell with comments from Michael White, Partner, James-Bates-BrannanGroover-LLP, this open discussion format will host panelists DBF Commissioner 1 6 | ww w.cbaofga.co m | Sp ring 2017

Kevin Hagler, FDIC Regional Director, Mike Dean, and OCC Assistant Deputy Comptroller Jason Sisack as they address issues important to you. THE NEED FOR DATA - PRESENTED BY TOM CARAGHER, FISERV The Financial Accounting Standards Board (FASB) has introduced the new Current Expected Credit Loss (CECL) Standard to improve the ease and usefulness of information reported on financial instruments in financial statements. CECL represents the need to better integrate accounting and risk management as well as access an expanded data set with which to calculate credit reserves.


CONVENTIONS

WHAT’S NEXT FOR YOUR BANK? CBA is known for its one-of-a-kind Mini-Trade Show offering bankers and exhibitors the opportunity to network in a time-efficient setting. Bankers can get up to speed on the latest products and services designed for community banks. Breakfast before Friday’s General Session and Mini-Trade Show will be a hot buffet and last approximately 45 minutes – and is open to all fully-registered bankers and exhibitors. Immediately following the Mini-Trade Show, the CBA will host a 25-minute refreshment break featuring networking and great prizes! Not exhibiting at the Mini-Trade Show? Consider sponsoring the Welcome Refreshments, or introducing the key note speaker. Contact Lindsay Greene at lindsay@cbaofga.com for more information.

BIG MONEY: 7-MINUTE SPOTLIGHT

HERE’S HOW IT WORKS:

A Chance to Win $1,000 in Cash Must Be Present to Win! CBA is proud to bring back this fun, informative and rewarding presentation. During Saturday’s General Session, be sure to attend the 7-Minute Spotlight… and your chance to win $1,000!

During the General Session, FiTech Payments will share information on their services for 7 minutes. To qualify, you must be in the General Session for the entire time (no late walk-ins) and submit a simple entry form at the end of the presentation. A drawing for $1,000 (that’s TEN crisp one hundred dollar bills!) will be awarded immediately after the presentation. The drawing is for bankers and bank directors only who attend the entire presentation. You have 1,000 reasons to attend and pay attention! Good luck!

SATURDAY, JUNE 24TH

TOM CROWL, COMEDIAN & VENTRILOQUIST Tom Crowl is a high-energy comedian and ventriloquist who brings almost 30 years of professional entertainment experience into each new performance. A rare talent, Tom is often recognized from his appearance on NBC’s Last Comic Standing as well as his performances at events around the world. Tom Crowl is a published author, a podcaster and is the creator of the first virtual ventriloquism course titled “Learn Ventriloquism.”

ANNUAL GOLF

TOURNAMENT JULIAN HESTER MEMORIAL GOLF TOURNAMENT Don’t miss out on our Friday afternoon tournament! Enjoy some friendly competition while catching up with old friends and making new ones. Registration is $125 per golf – spouses/ guests and age-appropriate children are invited.

AGENDA AT A GLANCE THURSDAY, JUNE 22ND afternoon

• Convention Registration • LD Board Functions (by invitation only) • Exhibitor Set-up FRIDAY, JUNE 23RD morning

• • • •

Hot Breakfast with Exhibitors General Session Mini-Trade Show Refreshment Break with Exhibitors • Friday Keynote

afternoon

• Golf Tournament evening

• At Your Leisure SATURDAY, JUNE 24TH morning

• • • • • •

5k & Kids’ Fun Run Breakfast General Session 7-Minute Spotlight LD Reports Keynote Speaker

afternoon

• At Your Leisure evening

• Chairman’s Family Reception & Dinner • Family Entertainment SUNDAY, JUNE 25TH • Departures

5K & KIDS’ FUN RUN RUNNIN’ AT THE RITZ! This popular activity will raise funds for one of the Leadership Division’s most important initiatives. The cost is $20 per runner ($25 on-site) and includes a commemorative t-shirt. Sponsorships are available!

PRIZES WILL BE AWARDED TO ALL WINNERS! S p r i n g 2 0 1 7 | G e org i a Co m m un i ti es F i rs t | 17


CONVENTIONS

THANK YOU TO OUR SPONSORS! SILVER SPONSORS

PLATINUM SPONSORS

BRONZE SPONSORS

5K & FUN RUN SPONSORS Premier Sponsor

INDIVIDUAL EVENT SPONSORS

Hotel Key Card

Registration Packet & Friday Break

Board Appreciation Reception

Friday Promo Items

Board Appreciation Dinner

Photo Booth

Saturday Breakfast

Convention Totes Family Banquet Co-Sponsors

Board Meeting Refreshments

Convention Program

Saturday Break

Friday & Saturday Cash Prizes

Name Badges

Golf Prizes

Friday Breakfast

WiFi Sponsor

7-Minute Spotlight

THANK YOU TO OUR EXHIBITORS! ACG • ATM Response • Atris Technology • BankSmart • BASYS Processing • Bank Financial Services Group • Cash Trans Check Printing Solutions • Consolidated Banking Services, Inc. • Crescent Mortgage • CRS Data • CSRA Business Lending Cummins-Allison Corporation • DeNyse Companies • Executive Insurance Agency • Federal Reserve Bank • First Data FirstBank Mortgage Partners • Fiserv • Genesys Technology Group • Harland Clarke • Intercept Consulting Group • J.B. Lloyd & Associates Kasasa • SHAZAM • State Bank Mortgage • The Baker Group • TJS Deemer Dana, LLP • Travelers • Triad Financial Services

HOTEL INFORMATION

For single/double occupancy - $309++ per night. The group rate is available for up to 3 days prior and 3 days after event. Daily valet parking has been discounted to $17. The deadline to receive the discounted rate is Friday, May 26, 2017. For reservations, contact Group Reservations toll free at (888) 239-1217 and mention “CBA Leadership Division Annual Conference” for the group rate. 1 8 | ww w.cbaofga.co m | Sp ring 2017


CONVENTIONS

49TH ANNUAL MEETING & TRADE SHOW

WHERE EVERYBODY KNOWS YOUR NAME WEDNESDAY-SUNDAY, SEPTEMBER 13-17, 2017 THE WESTIN COPLEY PLACE, BOSTON, MA

With its rich history, diverse neighborhoods, and legacy of arts, culture and education, Boston has something for everyone! The Community Bankers Association of Georgia (CBA) invites you, your senior staff and directors to join us in what is perhaps the most patriotic city in the U.S. for the 49th Annual Meeting and Trade Show, September 13-17, at The Westin Copley Place. Where Everybody Knows Your Name! Laughter, smiles, old friends and new – that’s what you’ll find in the Exhibit Hall. The Trade Show is the center of activity during the CBA Annual Meeting. Get ready to mix and mingle with companies offering services to help your bank run more efficiently and prosper. The first opportunity to meet with exhibitors is during Thursday’s Welcome Reception & DineAround. Of course, the breakfasts, breaks, and auction items offer more reasons to visit the Exhibit Hall. The delicious food and exciting exhibitor prizes make the exhibit hall the place to be! S p r i n g 2 0 1 7 | G e org i a Co m m un i ti es F i rs t | 19


CONVENTIONS

CONVENTIONS

KEYNOTE ADDRESSES RAY DAVIS EXECUTIVE CHAIRMAN, UMPQUA BANK, PORTLAND, OR

AMERICA’S 2ND PRESIDENT, JOHN ADAMS

FRIDAY, SEPTEMBER 15TH

“Meet John Adams - A Lively and Revolutionary Conversation with America’s Second President”

Few banks in the country have undergone as thorough a transformation as Umpqua Bank has under former Chief Executive Officer Ray Davis. When Davis took the helm at what was then South Umpqua State Bank in 1994, it had just $140 million of assets and five branches in southwest Oregon. Davis established Umpqua as one of the industry’s most admired brands. Umpqua has won numerous accolades and awards for customer satisfaction over the years and is so highly regarded by its peers that bankers from all over the world — New England, China, Australia — regularly travel to Portland to study its approach. Many of the trends in retail banking these days — from open floor plans to the universal banker model — can be traced to ideas pioneered by Umpqua.

PORTRAYED BY GEORGE BAKER SATURDAY, SEPTEMBER 16TH

The historical figure of America’s 2nd President John Adams (1797-1801), portrayed by George Baker, will present his views of the nation, history and family life in a humorous and inspiring speech. George Baker is a graduate of Columbia College and Columbia Law School. He practices law in New Canaan, Connecticut. In 2008, George created a one-man show to represent the humor and patriotism of President John Adams. Since then, his performances have taken place across the United States at venues large and small.

MEET THE SPEAKERS ICBA REPORT

Tim Zimmerman, Standard Bank, Monroeville, PA ICBA Chair-Elect Learn about ICBA’s efforts in Washington and the impact these have on the communty banking industry.

BUCKLE UP: WILD RIDE AHEAD

David Kemp, President Bankers Management, Inc., Mcdonough Innovative thinking and performanceenhancing ideas will be coming at you fast and furiously during this interactive session in which David asks the tough questions, challenges conventional wisdom and provides insights into the future of community banking.

GENERAL SESSIONS I & II “FEEDING THE MEDIA” Patrick Dix, Sr. PR Manager, SHAZAM, Johnston, IA Learn how developing relationships with local media and saying “yes” when they call for your help will pay off for your reputation, your business and your bottom line. “BECOMING A HIGH PERFORMING BANK WHILE MANAGING YOUR RISKS” Dale Sheller, VP, The Baker Group, Atlanta, GA Understand what high performing banks do well and how they manage their risks.

BANK DIRECTOR BREAK-OUT SESSIONS I & II “DIRECTOR GUT CHECK: WHAT SHOULD BOARDS OF DIRECTORS BE DOING NOW TO BE READY FOR 2018?” Mark Kanaly, Chairman, Financial Services & Products Group of Alston + Bird, Atlanta

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“DIRECTOR INTERCHANGE: WHAT KEEPS YOU UP AT NIGHT?” Dan Brannan, Dan Speight & Michael White, James-BatesBrannan-Groover-LLP An interactive, conversational session covering a wide range of community bank director concerns.


OVNEVNETNI T OSN S C OCN OIN

THANK YOU TO OUR SPONSORS

E

C AGENDA AT A GLAN

PLATINUM SPONSORS

WEDNESDAY, SEPTEMBER 13TH

afternoon & evening

BRONZE SPONSOR

SILVER SPONSORS

• Convention Registration • Board of Directors Meeting & Dinner (Invitation only) THURSDAY, SEPTEMBER 14TH afternoon & evening

• Convention Registration • Exhibitor Set-Up • Welcome Reception & Dine-Around FRIDAY, SEPTEMBER 15TH morning

• Exhibit Hall open 7:30AM -

INDIVIDUAL EVENT SPONSORS

JB Board Appreciation Dinner

Board Appreciation Reception

Bottled Water/ Welcome Refreshments

Thursday Night Carving Station

Convention Signage

• • • • •

12:15PM

Spouse/Guest Activity General Session Bankers’ Peer Group Meeting 7-Minute Spotlight Friday Keynote Address

SATURDAY, SEPTEMBER 16TH Thursday Night Dessert & Coffee

morning

• Exhibit Hall open 7:30AM12:15PM

Trade Show Activity Prizes Chariman’s Banquet

Name Badges

Hotel Key Card

• Two External Bank Director Break-Out Sessions • General Session • 7-Minute Spotlight • Saturday Keynote Address afternoon free

7-Minute Spotlight

Specialty Drink Thursday Dine-Around

Friday & Saturday Cash Prizes

Chariman’s Reception

Friday Promo Items

Friday Breakfast

Saturday Break

evening

• Chairman’s Reception & Dinner • Entertainment WiFi Sponsor

SUNDAY, SEPTEMBER 17TH • Departures

THANK YOU TO OUR EXHIBITORS! AmTrust North America • ATM Response • Banc Consulting Partners • BankSmart • Bank Financial Services Group Carr, Riggs & Ingram, LLC • CBIZ Insurance • Crescent Mortgage • DCI • DeNyse Companies • Eclipse Brand Builders, LLC Econocheck • First Data • Fiserv • Fitech Payments • Gulf Coast Business Credit • Intercept Consulting Group, Inc. Investment Professionals, Inc. (IPI) • J.B. Lloyd & Associates • Kasasa • Point to Point Environmental Promontory Interfinancial Network • SHAZAM • State Bank Mortgage • The Baker Group • TJS Deemer Dana LLP • Travelers

HOTEL INFORMATION For single/double occupancy - $319 per night. All rates are subject to state and local taxes at the time of check-in. The deadline to receive the discounted rate is Tuesday, August 22, 2017. For reservations, click here or call (800) 937-8461 and mention the group name Community Bankers Association of Georgia Annual Meeting & Trade Show 2017 to receive the group rate.

S p r i n g 2 0 1 7 | G e org i a Co m m un i ti es F i rs t | 21


Your Solution from Hire to Retire Benefits expertise integrated with efficient HR technology that enhances the entire employee life cycle

Benefits Consulting

Employee Communication

Payroll

ACA Compliance

CBIZ ESO

Time & Labor

Wellbeing Solutions

HRIS

Flex & COBRA

BENEFITS CONSULTING | HRIS TECHNOLOGY | PAYROLL

CBIZ is an endorsed member of CBA. Todd Gordon | 770.858.4801 | todd.gordon@cbiz.com CBIZ ESO is a division of CBIZ Benefits & Insurance Services, Inc. © Copyright 2017. CBIZ, Inc. NYSE Listed: CBZ. All rights reserved.

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LEARN ABOUT THE CBA

GO CLUB

Attend the 2017 Annual Meeting in Boston and pay NO registration fee! Again this year, we’re offering the CBA GO Club membership. The reward for becoming a GO Club member and maintaining your bank’s membership throughout the year is receiving a FREE registration to CBA’s Annual Meeting & Trade Show! In order to join and maintain, a bank should have at least one representative attend each of the following events: •

CBA Day at the Capitol – Wednesday, February 15th, Atlanta

Women in Banking Seminar - Thursday, March 9th, Macon

9th Annual CBA Bank Directors’ & Executive Management Conference (April 26, 2017) - or 8th Annual CBA Georgia Bank Directors’ College (August 21, 2017)

A Spring Regional Luncheon •

Monday, April 10th – Alpharetta, with Golf

Tuesday, April 11th – Macon

• •

Wednesday, April 12th – Albany, with Golf

39th Annual Leadership Division Convention & Mini-Trade Show - Thursday - Sunday, June 22- 25, 2017, The Ritz-Carlton, Amelia Island, FL, or two Community Bank Leadership Academy offerings (August 9th and November 15th). Attendees can preregister for the November program to qualify.

To learn more about the CBA GO Club, please contact Peake Wilson at peake@cbaofga.com or (770) 541-0379.

Looking for New Non-Interest Fee Income?

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• Navigate changes made through the DoddFrank Act while saving time and money. We’re all about putting the power back in your teams’ hands.

Schedule a Presentation Today. Jason Pruitt | jpruitt@crsdata.com | 770.883.6609 | crsdata.com/banking ©2017 CRS, Courthouse Retrieval Systems. All Rights Reserved. The Banker Suite is property of CRS Data, Inc.

Celebrating A LIFETIME OF SERVICE Community Bankers Association of Georgia (CBA) is proud to honor bankers who have reached a significant milestone in the banking industry with the Lifetime Service Awards. CBA pays tribute to bankers reaching a milestone of 30, 40 or 50 years in the community banking industry. The presentation will be made during the Annual Meeting & Trade Show or during a special event at the employee’s bank. As part of the recognition, honorees receive a commemorative plaque, and CBA will feature the honorees in various CBA publications, as well as in the local media. Honorees with 50 or more years of service also receive a customized gold and diamond lapel pin. If you or someone in your bank is celebrating 30, 40 or 50 years of service as a banker during this calendar year, please contact Peake Wilson at peake@cbaofga.com or (770) 541-0379 or visit CBA’s website, www.cbaofga.com; click on the Communications Tab and then Lifetime Service Awards. S p r i n g 2 0 1 7 | G e org i a Co m m un i ti es F i rs t | 23


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2017 CBA WEBINARS Affordable, Professional Training, When and Where You Choose!

C

BA is committed to superior customer service and has been a leader in webinar training for over a decade. Webinars are designed for most positions in a community bank from the teller line to the board room. 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 APRIL 2017

4 Website & Social Media Common Compliance

5 Human Resource Dos & Don’ts for Supervisors

6 Real Estate Series:

CFPB Real Estate Loan Collection Rules for Mortgage Servicers & Your Bank

11 Managing TDRs Start to

Finish: Initial Identification to Rewriting to Non-TDR Status

12 Risk Management Series:

Developing a Risk-Based Compliance Audit for Your Loan Portfolio

18 The Future of FinTech &

Blockchain/Bitcoin: A Look at New Technologies Reshaping Financial Services

20 Agricultural Credit Risk

2017: Answers to Critical Questions

25 BSA Compliance Series:

BSA Compliance Hotspots: Regulators, Litigation, Policies & Procedures

26 Securing Collateral Part 2:

Form UCC-3 & Amending, Continuing or Terminating Security Interests

27 Compliance in Handling

Private Mortgage Insurance (PMI), Including Recent Rule Changes

MAY 2017 2 Revisiting TRID Lineby-Line Part 1: Loan Estimates

3 ACH Specialist Series:

Complex ACH Origination Issues for ODFIs: Compliance, Exceptions, Monitoring

MAY 2017

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

JUNE 2017

4 Security Officer Reports to

6 Revisiting TRID Line-

10 Surviving an FFIEC IT

7 Developing an Effective

the Board: Fulfilling Your Annual Requirement Security Exam

11 Director Series: What the Board Needs to Know About Vendor Management

16 Risk Management Series:

Conducting an RDC Risk Assessment: Compliance Findings & Regulatory Guidance

17 HMDA Data Collection

Rules: Preparing for the Extensive January 1, 2018 Changes

18 Securing Collateral Part

3: Legal & Compliance Issues in Obtaining Priority in Collateral, Including Purchase Money Security Interests

23 Account Documentation

Series: Nonresident Alien Accounts: Opening, Tax ID Numbers, IRS Issues & More

24 Credit Analyst Training Part 1: Basic Small Business Lending

25 Regulation E Series:

How to Handle Unauthorized Electronic Fund Transfers Under Reg E

31 Auditing Call Reports:

Compliance, Regulator Expectations & Best Practices

JUNE 2017 1 12 Key Elements of an

Effective Digital Marketing Strategy

5 Special Edition: Report

Writing for Auditors: Tips, Tools & Best Practices

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by-Line Part 2: Closing Disclosure

JULY 2017 6 Director Series: Raising

Capital as an Independent Community Bank (Morning Webinar)

Process for Change Control: Shared Responsibilities, Implementation & Monitoring

11 Regulatory Requirements

8 BSA Compliance Series:

12 Getting Started with SBA

13 Reporting Customer Credit

13 Account Documentation

New BSA Officer Training & Effectively Managing Credit Disputes

14 Debit Card Chargebacks:

Rules, Rights, Challenges & Best Practices

15 Traditional & Roth IRA Plan Establishment & Required Amendments

20 Real Estate Series:

Adverse Action in Mortgage Lending: Are You in Compliance?

21 ACH Specialist Series:

Same Day ACH: Preparing for Processing Debits, Effective September 15, 2017

22 Credit Analyst Training

Part 2: Analyzing Financial Statements

27 The Top 10 Things You

Need to Know About the CFPB’s Amendments to Mortgage Servicing Requirements Before October 19th

28 My Borrower Filed Chapter 11 Bankruptcy – Now What?

29 When a Borrower Dies: Next Steps & Best Practices

JULY 2017 5 Analyzing the UBPR: How Does Your Bank Compare to Peers?

When Employees Work from Home: Overtime, FMLA, ADA, Safety & More Lending

Series: Closing or Changing Deposit Accounts for Consumers & Businesses

18 Mastering Escrow

Compliance: Analysis, Rules, Forms & Accounting

19 Creating an Effective

Suspicious Activity Program: Efficiency, Examinations & Fraud

20 Regulation E Series:

Regulation E Fundamentals: Back to Basics

25 E-Compliance Rules,

Policies & Best Practices for Email, Web, Mobile & Social Media

26 Special Edition: Line-by-

Line Review of the New Fannie Mae & Freddie Mac Uniform Residential Loan Application, Effective January 1, 2018

27 20 UCC Provisions You

Must Know When Cashing or Depositing Checks

AUGUST 2017 2 Business Signature

Cards & Resolutions: Entities, Authority & Documentation

3 Advertising Compliance:

Website, Print, TV & Radio

AUGUST 2017 8

Real Estate Series: Appraisals & Evaluations for Consumer Real Estate Lending: Interagency Guidance, Regulator Issues & FAQs

9

Dealing with Employee Discipline, Complaints, Performance Issues & More

10 How to Legally

Compensate Mortgage Loan Originators

15 BSA Compliance Series: Job-Specific BSA for Deposit Operations: SAR Monitoring, 314(a) Requests & CIP

16 Risk Management Series:

Conducting a Fair Lending Risk Assessment

17 Introduction to Call Report Loan Classifications

22 Vendor Problem

Resolution: A Five-Step Approach

23 Proven Steps to Successful Business Development: Defining Prospects, Engagement Scripts, Overcoming Objections & Measuring Performance

24 New Compliance Officer Boot Camp

25 Special Edition: Revisiting

Your HMDA Policies to Include Comprehensive Changes Effective January 1, 2018 (Morning Webinar)

29 Regulation E Series:

Comparing Regulation E with Visa & MasterCard Rules

30 Asset-Liability

Management Overview: Concepts, Fundamentals & Assessing Risks


E D U C AT I O N

SEPTEMBER 2017 6

Responding to Official Demands for Customer Funds: Subpoenas, Garnishments, Summonses & Levies

7 Understanding &

Processing IRA Rollovers & Transfers

12 Account Documentation

Series: Minor Accounts: Ownership, Documentation & Access

13 High-Risk Transaction Case Studies in Commercial Property Appraisals, Including HVCRE Considerations

14 Workout & Liquidation of an SBA Loan

19 Supporting Documentation for the ALLL: Current Rules & Future Expectations Under CECL

20 ACH Specialist Series: RDFI Returns: 2 Day vs. 60 Calendar Days – Understanding the Difference

21 Understanding Loan

Participations & Syndications Part 1: Recognizing the Distinction & Determining the Best Solution

SEPTEMBER 2017 26 Step-by-Step SAR

Completion: Dos & Don’ts

27 Director Series: Rules

& Trends in Executive Compensation (Morning Webinar)

28 Managing & Mitigating Data Breaches: Fraud, Forensics & Incident Response

OCTOBER 2017 3 Keys to Effective Employee

Recruitment, Onboarding & Retention

4 Surviving a TRID

Compliance Exam

5 Countdown to the New HMDA Rules Effective January 1, 2018

11 Real Estate Series: ARM

& Balloon Payments: Clarifying the Confusion

12 Call Reports: Regulatory Capital Requirements

13 Special Edition: Are You

Ready to Launch the New Fannie Mae & Freddie Mac Uniform Residential Loan Application by the January 1, 2018 Deadline? (Morning Webinar)

17 Beyond EMV: Trends in

Payments & What It Means for Community Banks

OCTOBER 2017 18

Special Edition: All About 1099 Reporting Part 1: Forms 1099-A & 1099-C: Foreclosures, Repossessions & Debt Settlements

19 Understanding Loan

Participations & Syndications Part 2: Documentation, Servicing, Administration & Due Diligence

24 BSA Compliance Series:

Job-Specific BSA Training for the Frontline: CTRs, SARs, CIP & More

25 Advanced Commercial Loan Documentation

26 Risk Management Series: Establishing or Maturing Your Vendor Risk Management Program

NOVEMBER 2017 2 CECL Loss Estimation

Methodologies: Using Your Bank’s Data History to Create Workable Options

7 Required Compliance for

Commercial Loans Secured by Real Estate

8 Regulation E Series:

Auditing for Regulation E Compliance

NOVEMBER 2017 9

When a Depositor Dies: Next Steps & Best Practices

14 ACH Specialist Series:

Federal Government ACH Payments: Reclamations & Garnishments

16 Account Documentation

Series: Accepting Powersof-Attorney on Deposit Accounts

21 Director Series: Required

Compliance for the Board & Senior Management (Morning Webinar)

28 OFAC Sanctions

Compliance: Update, Expectations & Best Practices

29 Robbery Preparedness for All Staff

30 Avoiding Employee Job

Misclassification Issues: Getting It Right!

DECEMBER 2017 5 BSA Compliance Series:

Job-Specific BSA Compliance for Lenders

6 Conducting a Collections Risk Assessment

7 Disaster Preparedness, Recovery & Business Continuity

DECEMEBER 2017 12 Real Estate Series:

Mortgage Loan Disclosure Timing Issues

13 All About 1099 Reporting

Part 2: Forms 1099-INT & 1099-MISC: Vendor Payments, Prizes & Interest on Deposit Accounts

14 Risk Management Series: ACH Risk Management & Assessment: Risks, Controls & Ratings

19 Preparation Plan for CDD

Changes to Beneficial Ownership Rules: Effective May 11, 2018

20 New Security Officer

Training: Responsibilities, Best Practices & SkillBuilding Tools

Director Series webinars are scheduled from 10:00-11:30 AM Central Time Most webinars are scheduled from 2:00-3:30 PM Central Time unless otherwise indicated. Please check the brochure copy to confirm the time. To learn more or to register, visit www.cbaofga.com or contact Jodi Swilley at Jodi@ cbaofga.com or 770-5414492.

Note: Dates/topics subject to change.

2nd QUARTER 2017 EDUCATION PROGRAMS AND CORPORATE EVENTS

APRIL 2017 4/11-13 2nd Annual Mortgage Lending School - Atlanta 4/10 Spring Regional Luncheon Meeting & PAC/PR Golf Tournament - Alpharetta 4/11 HR Program Noon - Time Telephone Forum 4/11 4/12

Spring Regional Luncheon Meeting - Macon Spring Regional Luncheon Meeting & PAC/PR Golf Tournament - Albany 4/20 Branch Management Series III - Atlanta 4/25-27 BSA Officer School - The Basics - Atlanta 4/26 9th Annual Bank Directors’ & Executive Management Conference - Atlanta

MAY 2017 5/4 2nd Quarter Banker Regulatory Forum - Atlanta 5/4 Metro Atlanta Compliance/BSA Roundtable - Lawrenceville

5/9 HR Program Noon-Time Telephone Forum 5/18-19 4th Annual Bank Security Conference - (1 1/2 days) - Braselton JUNE 2017 6/8 Branch Management Series IV - Atlanta 6/13 HR Program Noon-Time Telephone Forum 6/13 Compliance Program II - ACH Compliance - Tifton 6/14 Compliance Program II - ACH Compliance - Macon 6/15 Compliance Program II - ACH Compliance - Savannah 6/20 Compliance Program II - ACH Compliance - Rome 6/20 Senior Retail Banking Officer Forum - Session II - Atlanta 6/21 Compliance Program II - ACH Compliance - Duluth 6/22-25 39th Annual Leadership Division Convention & Mini-Trade Show - Amelia Island, FL S p r i n g 2 0 1 7 | G e org i a Co m m un i ti es F i rs t | 25


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ATTENTION BANK DIRECTORS, SECURITY OFFICERS AND HUMAN RESOURCE OFFICERS Don’t miss the April & May Conferences!

9TH ANNUAL

BANK DIRECTORS’

& EXECUTIVE

MANAGEMENT CONFERENCE Wednesday, April 26, 2017 The Cobb Energy Performing Arts Centre, Atlanta

CPE CREDITS AVAILABLE

MEET THE SPEAKERS: Once again, the CBA will partner with Philip Smith, President, Gerrish Smith Tuck, PC., Consultants and Attorneys, Memphis, TN to provide this popular conference designed specifically for community bank directors. Hot topics affecting bank directors will be discussed by a variety of industry experts. Watch for additional details to arrive at your office soon. To register, please visit www.cbaofga.com or contact Jodi Swilley at jodi@cbaofga.com. We look forward to seeing you at the Cobb Energy Performing Arts Centre on Wednesday, April 26th.

Philip Smith President, Gerrish Smith Tuck, PC., Consultants and Attorneys, Memphis, TN

Chris Marinac Senior Managing Principal and Director of Research, FIG Partners, Atlanta

David Kemp President, Bankers Management, Atlanta

Diane Bogino President, Performance Strategies, Inc., Atlanta

Kris St. Martin Vice President, Bank and Business Insurance CBIZ, Minneapolis, MN

TESTIMONIALS “This conference was very informative and entertaining. The speakers were very engaging.” Kim Mauer, Heritage First Bank, Rome “I would recommend this conference, because of the new ideas and networking opportunities.” Charlie Curry, First State Bank of Randolph County, Cuthbert “The conference was “spot on” in addressing real issues faced by Community Banks in our present regulatory and compliance environment” Sam Beall, Bank of Dudley “Great overview of current issues effecting banks”

Other industry experts have been invited.

Ron Quinn, Peach State Bank & Trust, Gainesville

2017

GEORGIA

FINANCIAL DIRECTORY COMING

SOON

The 2017 Georgia Financial Directory is your complete resource for information on banks, holding companies, banking products and services, and more. Make sure your bank’s information is current by returning the form mailed to your bank to M. Lee Smith or contact Lindsay Greene at CBA. All CBA members receive a free copy and the books will be mailed in late May. Additional copies are available for $45 each. Special thanks to the 2017 advertisers:

For more information, Bahr Consultants, Inc. • Dabbs, Hickman, Hill & Cannon, LLP • DeNyse Companies contact Lindsay Greene at Fiserv • Intercept Consulting Group • Investment Professionals, Inc. • SHAZAM (770) 541-0376. 2 6 | ww w.cbaofga.co m | Sp ringState 2017Bank Mortgage • Stokes Carmichael & Ernst • Warren Averett

2017

GEORGIA FINANCIAL DIRECTORY W ea

re c o

. i ng mmunity bank


E D U C AT I O N

4TH ANNUAL

BANK SECURITY

CONFERENCE Thursday-Friday, May 18-19, 2017 Chateau Elan Winery & Spa, Braselton

CPE CREDITS AVAILABLE

11/2 DAYS

If you are the Security Manager, Security Officer or the Human Resource Officer for your institution, it is vital that you stay up-to-date on the latest developments regarding Bank Security. This conference is designed to make you aware of crimes, laws, and events that affect you, and provide you with effective tools to prevent loss and better secure your personnel and working environment. This is also an opportunity for you to join your peers in learning and networking to assist you in performing your critical duties as security manager of your institution. The CBA is pleased to partner with Carol Dodgen, Dodgen Security Consulting, Birmingham, AL, to provide the 4th Annual CBA Bank Security Conference. Topics such as robbery, domestic violence, elder abuse, robbery, ATM security, security equipment and much more will be discussed by a variety of security experts. Please watch for additional information regarding topics and speakers. The Chateau Elan Winery & Spa is a very popular resort and the hotel rooms go quickly. We encourage you to make your hotel reservations today. To make hotel reservations, call the resort at 678425-0900 or 800-233-9463. The CBA room rate is $179 plus taxes per room night. Deadline to reserve rooms is April 17, 2017, or whenever the room block is full. To register for the conference, contact the CBA Education Department .

TESTIMONIALS “I don’t think I have ever attended a conference where every single speaker captured my full attention and provided me information that I can use to enhance the security program at my bank. The presentations and discussions were current and the group conversations assisted with real life scenarios. Great speaker line up, great content.”

IF YOU NEED NON-INTEREST INCOME, WE CAN HELP. SOLUTIONS FOR YOUR CUSTOMERS PROFITS FOR YOUR BANK

Cristi Donahue, Oconee State Bank, Watkinsville

ASK US HOW

“As a new Security Officer this conference covered a good variety of topics that I can take back and utilize right away.”

(800) 679-1237

Kim Grimes, Northside Bank, Adairsville

Jacob Pollard

‘This Annual Conference continues to deliver valuable, real life knowledge to help security professionals with the ongoing task of protecting company assets.”

www.invpro.com

Derek Hardmon, Atlantic Capital Bank, Atlanta

jake.pollard@invpro.com

Business Developement Officer

NO BANK GUARANTEE | NOT A DEPOSIT | NOT FDIC INSURED | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY | MAY S LOSE Investment Advisory p r i n VALUE g 2 0 1 7All | GSecurities e org i a and Co m m un i ti es F i rs t Services | 27 offered through Investment Professionals, Inc. (IPI), a Broker/Dealer, member FINRA/SIPC & a Registered Investment Advisor. ©2017 Investment Professionals, Inc.


Th

rough Kn ledge. ow

Success

E D U C AT I O N

2017 SCHOOLS & CONFERENCES

CPE CREDITS AVAILABLE

The CBA provides a variety of schools and conferences designed for most positions in a community bank. The instructors are local and national industry experts and many are former community bankers. We invite you to make plans today to attend one or all of these schools and conferences. To learn more about these programs, visit www.cbaofga.com or contact the CBA Education Department at education@cbaofga.com. • • • • • • •

Consumer Lending School - March 6 -10- Atlanta (4 ½ days) Commercial Lending School – March 20-24 – Atlanta Mortgage Lending School – April 11-13 – Atlanta BSA Officer School - The Basics - April 25-27 - Atlanta Bank Directors’ & Executive Management Conference April 26 - Atlanta Bank Security Conference - May 18-19 - Braselton (1 ½ days) Advanced BSA Officer School – August 1-4 – St. Simons ( 3 ½ days)

• • • • •

Cyber Risk Summit – August 10-11 – Savannah (1 ½ days) Georgia Bank Directors’ College – August 21 – Greensboro Compliance Lending School – October 2-5 – St. Simons Inaugural Fraud School - October 16-19 - Young Harris Southeast Financial Human Resource Conference – November 2-3 – Atlanta (1 ½ days)

APRIL IS

#BankLocalGA

GOVERNOR NATHAN DEAL PROCLAIMS APRIL AS COMMUNITY BANKING MONTH

LET CBA HELP YOUR BANK CELEBRATE!

April is Community Banking Month and the Community Bankers Association of Georgia and community banks across Georgia are recognizing the unique spirit that makes community banks the foundation of their communities in cities and towns throughout the state. Governor Nathan Deal recently proclaimed April 2017 as Community Banking Month in Georgia.

of hundreds of towns and cities in Georgia. Community banks continue to work hard every day to improve the quality of life in their communities because they are part of their community - a uniqueness only community banks can bring to the table. We appreciate Governor Deal recognizing the significant impact community banks are making across Georgia.”

“Declaring April Community Banking Month recognizes the significant role community banks play in stimulating their local economies through an array of financial services,” stated Rob Braswell, President & CEO of CBA. “Our member banks are an integral part of the economic, financial and civic landscape

By participating in Community Banking Month, you have the opportunity to highlight all your bank does to benefit your community. We hope you will join the nation in showing off the spirit and love for your community and participate in this year’s Community Banking Month!

TAKE ADVANTAGE OF THESE FREE RESOURCES FROM CBA: • • •

Press release for member banks to distribute to local media Signed proclamation from Governor Deal Ways to Celebrate Community Banking Month

• • •

Community Banking Month Employee Fact Sheet Community Banking Month Customizable Op Ed Banner ads for your website

Get Social! Join in the fun on social media by using the hashtag #BankLocalGA. CBA has produced banner ads in a variety of sizes for use on your bank's website. For more information, contact Jeremy Thomens at (770) 541-0380 or jeremy@cbaofga.com, or visit the Community Banking Month section on the CBA website. 2 8 | ww w.cbaofga.co m | Sp ring 2017


Data. Research. Analytics. Get to the essential faster. Bringing together the highest quality data and industry-leading solutions from the S&P Capital IQ and SNL Financial platforms, S&P Global Market Intelligence integrates news, comprehensive market and sector-specific data, and analytics into a variety of tools to help clients track performance, generate alpha, identify investment ideas, understand competitive and industry dynamics, perform valuations, and assess credit risk. spglobal.com/marketintelligence

S p r reserved. i n g 2 0 1 7 | G e org i a Co m m un i ti es F i rs t | 29 Copyright Š 2016 by S&P Global Market Intelligence, a division of S&P Global Inc. All rights


A leader in Correspondent Banking yesterday, today & tomorrow. Leadership, experience, technology, innovation, strength, and satisfaction… these are the expectations of our correspondent banking clients. As one of the leading correspondent banks in the country, we are uniquely qualified to deliver on these expectations. Let us help you work to your strengths. Know where you’re going by working with someone who’s been there. We know this business inside and out. We know where it’s been, and where it’s headed. To learn more about the BBVA Compass banking correspondent services, visit bbvacompass.com/commercial/industry/financial-institutions/. For general questions regarding the BBVA Compass banking correspondent services call us at 1-800-644-3330 or contact our correspondent banking expert, Brad Reeves. Brad Reeves • SVP - Senior Correspondent Officer - 813-505-7503 T. Ray Sandefur • SVP - Credit Services Michael Burnap • SVP - Customer Service Bob Freeman • EVP - Correspondent Banking

All loans and accounts subject to approval, including credit approval. BBVA Compass is a trade name of Compass Bank, a member of the BBVA Group. Compass Bank, Member FDIC. Rev. 02/2017 / #4001 3 0 | ww w.cbaofga.co m | Sp ring 2017


MEMBER SERVICES

2017 memorial scholarships

CBA’S MEMORIAL SCHOLARSHIPS

DUE APRIL 10TH! If you are looking to spread goodwill and the importance of community banking in your area, then be sure to participate in the 2017 Hester and Walraven scholarships. Please visit www.cbaofga.com to download the applications, and encourage students and full-time employee students to apply! Julian & Jan Hester

MEMORIAL SCHOLARSHIP

JULIAN & JAN HESTER MEMORIAL SCHOLARSHIP Opportunity for High School Seniors Proudly promoted by CBA’s Leadership Division The Hester Scholarship is open to Georgia high school seniors who will be entering a Georgia college, university or technical school (two year program or more) in the 2017 fall semester. The scholarship is named after the late Jan Hester, daughter of Lalia and the late Julian Hester, long-time CEO of the CBA. The four winning recipients will be awarded a $1,000 scholarship.

Applications should be returned to your bank no later than Monday, April 3, 2017. All completed applications should be submitted to CBA no later than Monday, April 10, 2017. Only complete applications will be accepted. A panel of independent judges will review the applications and winners will be announced in late April 2017.

J. Steven Walraven

MEMORIAL SCHOLARSHIP

J. STEVEN WALRAVEN MEMORIAL SCHOLARSHIP Opportunity for Community Bank Employees This $500 scholarship is awarded to a Georgia community bank employee attending a college or university within the state of Georgia. The goal of the scholarship is to assist those employees interested in furthering their education to enhance their career in community banking.

All completed applications should be submitted to CBA no later than Monday, April 10, 2017. Only complete applications will be accepted. A panel of independent judges will review the applications and winners will be announced in late April 2017. For more information on the Hester Scholarship, contact Peake Wilson at peake@ cbaofga.com or (770) 541-0379. For more information on the Walraven Scholarship, contact Jeremy Thomens at jeremy@cbaofga.com or (770) 541-0380.

MAKE SURE YOU ARE IN THE KNOW! STAY CONNECTED ON SOCIAL MEDIA @CBAofGeorgia @CBAGeorgia linkedin.com/company/ cbaofgeorgia

ARE YOU RECEIVING CBA’S WEEKLY LEGISLATIVE UPDATE? Updates on the 2017 Legislative Session are delivered every Friday. Contact Lori Godfrey with any concerns or questions about an issue you would like to see addressed. You can reach Lori at lori@cbaofga.com or (770) 541-4684.

JB

WELCOME NEW CBA ASSOCIATE MEMBERS! The Community Bankers Association of Georgia (CBA) would like to welcome new Associate Members who were recently approved by the CBA Board of Directors. Throughout the year, CBA’s Board approves quality vendors who provide products and services to CBA members. For more information on becoming an associate member contact Lindsay Greene at Lindsay@cbaofga.com or 770-541-0376. Abernathy Bank Consulting Bank Consulting Mr. Bill Abernathy | Dunwoody Check Printing Solutions Check Printers Mr. Andrew Crim | Bridgeview, IL CyberScout Identity & Data Security Mr. Brian Keim | Scottsdale, AZ Flagstar Bank Mortgage Services Mortgage Services Mr. Jack Keeler | Troy, MI MSB Compliance Inc. Compliance Mr. Jay Postma | Atlanta Performance Strategies, Inc. Bank Consulting Ms. Diane Bogino | Atlanta Raymond James and Associates Financial Services Mr. John M. Sillay | Atlanta SBA Funding Depot, LLC SBA Lending Mr. Wayne Lazarus | Atlanta The Sweeney Compliance Group LLC Compliance Ms. Sebrina Sweeney | Oxford

S p r i n g 2 0 1 7 | G e org i a Co m m un i ti es F i rs t | 31


MEMBER SERVICES

CBA ENDORSED MEMBER COMPANY

SPOTLIGHT

ALEX JERNIGAN OF SHAZAM

In this issue, CBA is pleased to feature Alex Jernigan, EFT Solution Specialist, SHAZAM. CBA invited Alex to participate in a Q & A so you can learn more about this longtime Endorsed Member Company and a little more about Alex.

I am an EFT Solution Specialist with the sales/new business department. I cover the southeast part of the country, including Virginia, North Carolina, South Carolina, Georgia and Florida. I have been involved in banking in the state of Georgia for over 20 years. How do you help Georgia’s community banks? Specifically, we help them lower the price of their EFT program while increasing their profit margin by increasing interchange income.

Tell us about SHAZAM and your role with the company: The SHAZAM Network, founded in 1976, is a national memberowned financial services and payments processing company. SHAZAM provides choice and flexibility to community financial institutions throughout the U.S. SHAZAM is a singlesource provider of the following services: debit card, core, fraud, ATM, merchant, marketing, training, risk and automated clearing house (ACH). To learn more, visit shazam.net and follow @SHAZAMNetwork.

What’s new? Any hot products? The SHAZAM BOLT$ mobile app. With the app, cardholders can access balance information on their smartphones, tablets and home computers. Users are able to make person-to-person (P2P) money transfers, pause their card with the transaction control feature and use GPS technology to locate nearby ATMs. Interesting facts about you? I am a Georgia native, born and raised. I have a Bachelor of Business Administration in Finance degree from the University of Georgia. I am also a graduate of Georgia Banking School and was the class president.

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MEMBER SERVICES

My wife Nancy Jernigan is the market president for First Port City Bank in Donalsonville, Ga. I have four children – Erin, Emily, Matthew and Lenton.

What do you do for fun outside of work? I like to golf, deer hunt and attend UGA football games. I especially love to drive my 1967 GTO convertible. I am a member of Friendship United Methodist Church in Donalsonville where I sing in the adult choir. Fun fact: I was a member of the UGA water-ski team in college.

Quality. Expertise. Trust. Because You Deserve It • • • • •

External Audit Internal Audit Outsourcing Sarbanes-Oxley Act Consulting Risk Management Services Tax Consulting and Preparation

north georgia Ian Waller iwaller@nicholscauley.com

• • •

Regulatory Compliance Consulting Risk Assessment Consulting Information Technology Consulting

• •

Internal Control Evaluations Merger & Acquisition Assistance

• • • •

De Novo Consulting Loan Review Strategic Planning Valuation Services

south georgia Tim Veal tveal@nicholscauley.com

Financial, Compliance and Risk Management Services Offices Across Georgia | 800.823.0117 | www.nicholscauley.com


MEMBER SERVICES

HOW THE COW ATE THE CABBAGE: ARE YOUR INTEREST RATE RISK REPORTS GIVING YOU THE UNVARNISHED TRUTH?

As instructive idioms go, “hope for the best but prepare for the worst” is a good one. While recognizing the human tendency for optimistic expectations, it acknowledges the practical contingency that an undesirable outcome may occur. It also exhorts us to be ready for it. In a recently published Range of Practice Memorandum, results of surveys conducted by the Office of the Comptroller of the Currency reveal only a small number of institutions reported elevated levels of interest rate risk (IRR). Quite naturally, the reported risk measurements were the surveyed banks’ modeling results, and that’s where hoping for the best collides with preparing for the worst.

THE PAST MAY NOT BE PROLOGUE

Regulatory authorities, aware that a variety of assumptive inputs are part and parcel of the IRR measurement process, remind us that assumptions should be reasonable, institutionspecific, and empirically supported. Assumptions, however, are still assumptions; their accuracy never comes with a guarantee. In the context of the post-crisis business cycle, even the reliability of time-tested causal relationships comes into question. Nowhere are these assumptions more apt to be questioned than in the behavior of non-maturing deposits (NMDs). So, despite exhaustive efforts to develop these assumptions, such efforts still leave many questions unanswered. The most relevant questions relate to price sensitivity, balance stability, and the impact of disintermediation. Will the historically low beta price sensitivity of NMDs continue into a higher-rate environment, or will yield-starved customers demand a greater degree of market sensitivity? Will the long average lives characterized by the unflaggingly core-like nature of NMDs play out as expected, or will these accounts become more volatile with higher decay rates? And lastly, will these surging deposits even stay in the bank?

BE YOUR OWN BEARER OF BAD NEWS

Questions about inputs unfailingly lead to questions about outputs and have become the source of much regulatory consternation. Regulators are concerned that overly optimistic assumptions are leaving community bankers

3 4 | ww w.cbaofga.co m | Sp ring 2017

with a false sense of security. To address this concern, risk managers are encouraged to conduct sensitivity testing of their assumptions. By isolating a particular assumption and stressing its value to the bank’s detriment, management should have a better understanding of the risks associated with overhopeful assumptions. While regulatory pronouncements have left the degree of stress unspecified, pricing betas for NMDs should be appreciably ratcheted up if management truly wants to see what levels of interest expense might await them. The rock-solid nature of those NMDs should also be put to the test with shorter average lives than what historical analysis might suggest. And finally, simulating the effects of having to replace core deposits has negative implications for risk levels. The results of these input changes may paint a picture of risk exposure far less sanguine than what is currently perceived, but that’s the point. And while this news may be as unwelcome as finding out that the cow has taken to grazing in the garden, it’s preferable to being blindsided by unrecognized risks.

Lester F. Murray, Associate Partner of The Baker Group LP, came to the Baker Group in 1986 following his work with the OCC as an assistant National Bank Examiner. His focus is on developing community bank portfolio and interest rate risk management strategies. Contact: 800-937-2257, lester@GoBaker. com.

Lester F. Murray Associate Partner The Baker Group A CBA Endorsed Member Company


MEMBER SERVICES

KEEPING A “LOW PROFILE” ABROAD

Four businessmen came out of a reception on the first day of their international business trip and onto the steps of the hotel where the souvenir vendors and taxis drivers waited. While they were not uniformly dressed, there was no mistaking that they were not locals. Two of the businessmen were talking loudly on their iPhones, and the youngest was listening to some music. The fourth glanced at his Rolex, looked through his wallet, and in a loud voice announced, “OK, guys, I’ve got about 600 bucks, which should be enough.” This scene happens every day, where business travelers’ behavior, dress, and lack of environmental awareness present invitations for trouble. As more banks send employees abroad, it is important for business travelers to prepare themselves to be safe. Here are tips to help minimize risk and maintain safe behavior when traveling. Pre-Trip Preparation – Always ensure you are prepared for and aware of the security environment you are going to be entering. Make sure you enter your details into the U.S. State Department’s Smart Traveler Enrollment Program (STEP). Confirm you have the correct insurance in place for the locations you are visiting, and ensure your bank and credit card providers are aware of your travel plans. Local Preparation – Standing outside and looking at a map is not the right thing to be doing. Plan your day in your hotel room. If necessary, check with the front desk or the concierge to confirm that what you are planning is feasible and safe. When planning your day, look for locations which could be used as “safe havens” should you become concerned, or should something occur. Safe havens can be other hotels, shopping malls with good security, or even banks.

Appearance – Do you appear to be stereotypical of your nationality, or do you appear similar to any number of different nationalities (do you blend in, or do you stand out)? Think about whether you need to wear jewelry and an ostentatious watch. Street criminals are looking for items that are of value and easily taken. Awareness – It is imperative that you are aware of your surroundings at all times. Being hooked up to your iPhone, listening to music, or texting while walking is decreasing your ability to sense any changes in the environment. Know what the local norms are, and if something does not appear right, or you start to feel uncomfortable, then go to one of your preidentified safe havens and regroup. Insurance – Finally, think about Kidnap & Ransom insurance, which can financially reimburse companies for losses sustained from an insured event (e.g., kidnapping, extortion, hijacking and detention); help educate and train employees traveling abroad; offer “duty of care” for employees traveling on behalf of the company; and provide priority access to highly experienced crisis response consultants, who offer invaluable advice to clients during an incident.

Mark Harris is Vice President of Crisis Response for Constellis’ Crisis Response Services. The Crisis Response team provides crisis management preparedness services to ensure clients are ready to face situations of a challenging nature throughout the world. Constellis is retained exclusively by Travelers to provide Kidnap, Ransom and Extortion Crisis Management Services.

Mark Harris Vice President of Crisis Response Constellis

S p r i n g 2 0 1 7 | G e org i a Co m m un i ti es F i rs t | 35


MEMBER SERVICES

COMMUNITY BANKS: IT’S TIME TO HATCH YOUR GOLDEN EGGS

During my previous life as a banking officer, I loved talking with people and exploring their financial needs. Exploration often resulted in their taking advantage of services beyond the purpose of our meeting. Business development was essential to my role then, as it is now, but I was genuinely interested in our clients’ needs and financial well-being. I still am. Decades later, I find it gratifying how community banks have taken ownership of customer engagement and loyalty over the big banks. You practice my kind of service and make me proud of my years in banking. But in your industry, and in mine, great service isn’t always enough to remain competitive and grow.

Research says community banks need to “expand the conversation”

Gallup conducted national research last year that confirms your competitive advantages: Community banks and credit unions have higher customer and member engagement than do bigger banks. Though 52% of credit union members and 37% of community bank customers are fully engaged, that figure drops to 17% for large banks.1 However, the research also reveals that while customers consider their community banks and credit unions hospitable places to store money, they go to “big-money banks for bigmoney advice,” such as retirement, insurance and investment products. In attracting business beyond deposit-related services, Gallup gave bigger banks the edge because they have more expansive conversations with their customers.

What happened with us bears a striking resemblance to what can – and should – happen at community banks. We assessed our offerings and internal expertise, and realized that we already offered products and services beyond the printed piece. We just weren’t talking about it! From that point on, we began giving serious weight in our conversations, marketing efforts and on our website to our multichannel marketing capabilities and marketing support solutions. We raised awareness of the ways we are “More than a printer.” This trajectory brings new business from existing and new clients, and sets us apart from our competition. Community banks are certainly ‘more than’ a place to store money. If you begin to expand your conversations around additional financial services, you’ll be sure to attract and retain more business from middle market companies – a growing segment that is also extremely loyal to its primary banks.2 You have earned their loyalty. It’s time to hatch your golden eggs.

1 Credit Unions, Community Banks Engage (Yet Lose) Customers, Gallup Business Journal, May 5, 2016 2

Winning in Middle Market Banking, Deloitte University Press, February 17, 2016

More expansive conversations. Is that all it takes? I believe the answer is yes.

Getting to “More Than”

Like community banks, Perfect Image, a commercial printer, is a smaller entity that excels in client service. A few years ago, we recognized the need to refine our strategy to remain competitive and grow. You’ll recognize these challenges: Our industry was changing fast in the digital era…new entrants were appearing in the market…large entities were competing for our market share. And our clients’ needs were evolving.

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Charles Kelley Vice President – Business Development Perfect Image CBA Associate Member


Enhance your revenue. Improve your bottom line. community bankers association of georgia

Endorsed Member Companies

ACG | Refurbished ATMs/Currency Counting Phil Winn | Phil.Winn@acgworld.com | (770) 442-9800

Harland Clarke | Check Program Doyle Baker | doyle.baker@harlandclarke.com | (678) 382-1446

ATM Response | ATM Service & Cash Logistics Tony Webb | twebb@atmresponse.com | (770) 855-2989

Investment Professionals, Inc. (IPI) | In-Bank Retail Investment Services Jake Pollard | jake.pollard@invpro.com |(256) 543-6120

Bahr Consultants, Inc. | Insurance Review Hank Bahr | hank@bahrconsultantsinc.com | (865) 694-6098 Banc Consulting Partners | Executive Benefits/BOLI Brian Miller | bmiller@yourbankpartner.com | (770) 485-8559 BankersEdge/OnCourse Learning | Online Training Nora Ebersbach | nebersbach@oncourselearning.com (314) 542-6493

Kasasa | Branded Suite of Banking Products Grant Armistead | grant.armistead@kasasa.com | (704) 936-7878 SecureWorks | Managed Internet Security Program Dave Walker | dwalker@secureworks.com | (404) 417-4651 SHAZAM | Debit Card/EFT Processing Alex Jernigan | jjernig@Shazam.net | (229) 220-0064

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

S&P Global Market Intelligence (Formerly SNL Financial) | Financial Data Claiborne Kitchin | ckitchin@spglobal.com | (617) 530-8139

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

Staples | Office Supply Program Janet Cook | janet.cook@staples.com | (770) 454-0663

BASYS Processing | Merchant Services Processing Brady Hanna | bhanna@basyspro.com | (913) 307-2751

The Baker Group | Portfolio Management & Asset/Liability Strategies Paul Clanton | pclanton@gobaker.com | (405) 415-7337

CBIZ Benefits & Insurance Services, Inc. | Employee Benefits & Insurance Todd Gordon | todd.gordon@cbiz.com | (770) 858-4801

Travelers | Insurance/D & O/ Bond Program Diana Baker | dcbaker@travelers.com | (678) 317-7882

Computer Services, Inc. | Secure-Connect for Directors Craig Leppert | craig.leppert@csiweb.com | (800) 545-4274 Crescent Mortgage | Secondary Market Mortgage Services Ashli Matson | amatson@crescentmortgage.net (770) 714-5417 The Eversole Group, LLC | Marketing Program Craig Eversole | craig@theeversolegroup.com (601) 977-5225 Executive Insurance Agency, Inc. | VSI Program Ryan Sower | info@executiveinsuranceagency.com (770) 474-2355 First Data | Internet Banking & Mobile Banking Rodrigo Cazares | rodrigo.cazares@firstdata.com (512) 627-5343 FIS | Free ATM Network | Credit/Debit Card Program Susan Haines | susan.haines@fisglobal.com | (770) 248-9600

Triad Financial Services, Inc. | Consumer Loan Program Keith Stayer | kstayer@triadfs.com | (800) 522-2013 UPS | Overnight Delivery Program Monica Sterk | msterk@ups.com | (800) 531-7917 UtiliComm Solutions, Inc. | Telecommunications Mark Tressler | mtressler@utilicomm.com | (678) 965-2256 William Mills Agency | Public Relations & Marketing William Mills | william@williammills.com | (678) 781-7200 Promontory Interfinancial Network, LLC Bank Assetpoint/Insured Cash Sweep (ICS) Danny Capitel | dcapitel@promnetwork.com | (770) 630-6796 *Cooperative Marketing Alliance

For more information on these providers, special discounts for CBA member banks, or to learn about the endorsement process, contact Lindsay Greene at (770) 541-0376 or lindsay@cbaofga.com.

S p r i n g 2 0 1 7 | G e org i a Co m m un i ti es F i rs t | 37


PRESORT STANDARD U.S. POSTAGE PAID ALPHARETTA, GA PERMIT 864

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

I HAVE NO CHOICE OR FLEXIBILITY! I’M SICK OF IT! MAYBE WE NEED A NEW FINANCIAL SERVICES PROVIDER – LIKE SHAZAM.

I DID HEAR THEIR NOT-FOR-PROFIT CULTURE SETS THEM APART FROM OTHER PROVIDERS!

WILL THEY HAVE MY BEST INTERESTS IN MIND AND GIVE ME THE ATTENTION I DESERVE?

AND, THEY OFFER A CORE SOLUTION THAT PROVIDES EXCEPTIONAL VALUE FOR AN ALL-INCLUSIVE PRICE AND A HIGH LEVEL OF FLEXIBILITY SO WE CAN SELECT THE APPLICATIONS WE WANT TO USE. NOW THAT'S...

SHAZAM’s focused on strengthening community financial institutions by offering choice and flexibility for all your needs including core services and more. Call us today to learn more about SHAZAM.

Now that’s epic.

Strengthening Community Financial Institutions shazam.net/epic | 855.314.1212 | @SHAZAMNetwork


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