Winter 2014 Georgia Communities First by Community Bankers Association of Georgia

WINTER 2014

INSIDE

• CBA Endorsed Member Spotlight: Crescent Mortgage • CBA Announces 2nd Annual Women in Banking Seminar

Official Publication of the Community Bankers Association of Georgia

• Mark Your Calendars for CBA's 2015 Conventions

Member:

SLC

Stokes Lazarus & Carmichael LLP A T T O R N E Y S

A T

L A W

SLC &

Stokes Lazarus & Carmichael LLP A T T O R N E Y S A T L A W

Our firm has provided legal services for the banking community in the areas of credit and collections litigation, fraudulent transfer litigation, bankruptcy representation, and bank loan workouts since our inception in 1972. We pride ourselves on “Real World Legal Solutions®.” We welcome the opportunity to discuss how we can help you optimize recoveries.

Stokes Lazarus & Carmichael LLP 80 Peachtree Park Drive, NE Atlanta, Georgia 30309 Tel. 404-352-1465

THE POWER OF LEGAL KNOWLEDGE® Visit us online at www.slclaw.com

GEORGIA

Communities WI N T E R 2 0 1 4

FIRST

FEATURES

INSIDE

CBA STAFF

Ashli Matson Account Manager

Rob Braswell President & CEO rob@cbaofga.com

Got Leaders?

Steven Rigdon Director of Legislative & Regulatory Affairs steven@cbaofga.com

Finer Points: Transformational Times

General Counsel Corner: Loan Participation Agreements and the "Administrator Replacement Provision"

Excellent Exchange of Viewpoints at the Banker Regulatory Forum

What Makes the Barret Experience Special?

Entertainment Booked for 2015 Leadership Division Convention!

Dates Confirmed for CBA's 2015 Spring Meetings and PAC/PR Golf Tournaments

1st Quarter 2015 CBA Webinars

Guest Article: 5 Steps for Preparing for Effective Vendor Negotiations

Guest Article: Data Breaches Hasten EMV Migration Plans

Guest Article: A Multi-Layered Approach to Keeping Your Merchant Processing Customers Secure

Lindsay Greene Vice President Marketing & Member Services lindsay@cbaofga.com Shera Banks Marketing Coordinator shera@cbaofga.com Briana Bronner Marketing & Member Services Assistant briana@cbaofga.com Peake Wilson Vice President Corporate Events & Leadership Division CBA Corporate Secretary peake@cbaofga.com Teresa Day Administrative & Corporate Events Assistant teresa@cbaofga.com Jodi Swilley Director of Education & Professional Development jodi@cbaofga.com Donna Coutant Education Coordinator donna@cbaofga.com Amanda Lee Education Associate amanda@cbaofga.com Tammy Maass CFO tammy@cbaofga.com Nick Wilborn Accounting/IT Coordinator nick@cbaofga.com

page 8 | CBA Endorsed Member Company Spotlight: Crescent Mortgage

2nd Annual

WOMEN in Banking SEMINAR

page 10 | CBA Announces 2nd Annual Women in Banking Seminar

page 20 | Mark Your Calendars for CBA's 2015 Conventions

S ta y connecte d 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

page 21 | Announcing the 2015 Bank Directors' Training Schedule W in t e r 2 0 1 4 | Ge o r g i a C o m m u n i t i es Fi r s t | 1

FROM THE PRESIDENT'S DESK

Got Leaders? “You don’t need a title to be a leader.” - Multiple Attributions Throughout my life, some of the most impactful examples of superb leadership came from individuals that did not necessarily hold an esteemed title or an official position of authority, yet they wielded considerable influence due to the numerous leadership qualities they exuded. Whether innate, learned, or some combination of both, they had the attributes that made people want to follow them. Over the past few years, I have heard a number of community bank CEOs state they were unsure from where the next generation of banking leaders would emerge since the large bank management training programs that formerly served as feeder systems no longer exist. Well, I’ve got good news. After witnessing the drive, ambition and thirst for knowledge of the attendees at our first Community Bank Leadership Academy seminar in October and the achievements of the CBA Leadership Division over the past 18 months, I have no doubt the leaders are already on our respective teams. My question to you is this: Are you sufficiently cultivating your organization’s leaders for today and tomorrow? “Before you are a leader, success is all about growing yourself. When you become a leader, success is all about growing others.” - Jack Welch If you feel this vital area is one that could or should be enhanced, I would offer the CBA’s Community Bank Leadership Academy (CBLA) as a perfect supplement to your existing training program. Based on the overwhelming feedback of the attendees at our inaugural CBLA seminar, we will offer these programs quarterly – consisting of three separate seminars plus the general session at the Leadership Division Convention. It is anticipated that each CBLA seminar will be self-contained; therefore, it will not

Rob Braswell President & CEO Community Bankers Association of Georgia

disadvantage an attendee if they were unable to attend the prior seminar. In addition to the flexibility this will provide your staff members, this “a la carte” format will allow for each program to be unique and tailored to multiple and/or different positions within your organization. If I may, I would like to ask two things of you today: First, please be on the lookout for details of our next CBLA seminar that will take place March 11, 2015 at the Idle Hour Country Club in Macon. Secondly, I highly encourage you to give thought as to the various members of your team that could benefit from insights to other aspects of banking and leadership than their current position may expose them to on a daily basis. We have priced these one-day seminars at only $95 to make it affordable for organizations to send one or several people to these seminars on an ongoing basis. I’m very excited about this new program and the benefits it will produce for our community banking leaders of today and tomorrow. Please know that all of us at the CBA are committed to helping you in any way we can, so please don’t hesitate to contact us if we can be of assistance. “The first responsibility of a leader is to define reality. The last is to say thank you. In between, the leader is a servant.” - Max DePree I wish you and your families a joyous and blessed holiday season! Best regards,

Wishing you all the joys of the season and happiness throughout the coming year. 2 | w w w .cbaof ga. com | Wi n t e r 2 0 1 4

FINER

POINTS

Transformational Times

Cam Fine President & CEO Independent Community Bankers of America

Hey, did you read about that marvelous breakthrough yesterday? Right now, I’d bet you’re guessing which particular invention or innovation I might be referring to. Take your pick. There’s plenty to choose from. Throughout the sweeping arch of civilization, advancing knowledge and technology have brought us continual and inevitable progress. Every few generations or so, mankind takes a new turn at living and working through another transformational period of change. Each breakthrough period introduces unprecedented new possibilities, often along with turmoil and frustrations. Of course, we’re all captives of the current digital information and communications age that’s causing a continually shrinking, fasterspinning planet. Even people living in the remotest locations today use mobile devices to connect into the digital hum of global humanity. For everyone, to one degree or another, it’s either evolve or devolve. There’s no middle ground. Through hard work and substantial investments, community banks without question have kept pace with our society and industry’s newest technological developments. During your careers, with help from innovative service partners, you’ve adopted ever more sophisticated products and systems that have delivered increasingly greater efficiencies and value. You’ve introduced new delivery channels ranging from sophisticated self-service ATMs and universally accepted credit and debit payments cards to powerful cash management systems and super-convenient Internet and mobile banking channels. Certainly, the robust growth of ICBA’s member product and service programs, which have tripled over the last decade, demonstrates our industry’s ability to adapt to new technology and new ways of doing business.

But just as important, you’ve deployed frontline and backroom technologies in smart, practical and nimble ways to stand up to a wide range of aspiring upstart and often deeper-pocket competitors in the form of megabanks, nonbank specialty lenders, Internet companies and software giants. In so doing, you’ve remained remarkably disciplined and focused to ensure your new technology delivers real value to your customers and institutions. Don’t be distracted. Stay focused on managing and deploying technology as successfully as you’ve done for years. And remember how time and again community banks have proven that the combination of relationship-based banking expertise combined with smart and sensible use of technology remains the most powerful and resilient competitive model in the financial services marketplace. While we continue to hear how new technologies will disrupt or even make obsolete the community banking business model, in reality technology levels the playing field and will continue to shape every community bank in both exciting and challenging ways, as it will for all financial services providers. But such developments should turn as much or more to your bank’s advantage—and the advantage of your customers—as it will for any other institution. Managed thoughtfully and soundly, new technology enhances, rather that supplants, the community banking business model. And that’s not going to change, whatever new invention or innovation might be announced tomorrow.

Have you ordered your copy of the 2014 Georgia Community Bank Salary Survey? Survey participants received a free copy! $250 for CBA Members $350 for Non CBA Members Contact Lindsay Greene at (770) 541-0376 or lindsay@cbaofga.com for more info. W in t e r 2 0 1 4 | Ge o r g i a C o m m u n i t i es Fi r s t | 3

The Community Banking Event of the Year!

March 1-5, 2015 Gaylord Palms Resort & Convention Center

ORLANDO, FLORIDA Join us and be amazed how these four days will impact your career, your bank and your community. More than 60 education sessions with CPE credits Networking and entertainment opportunities Products and services from more than 240 providers Access to influential leaders and experts

General Session Speakers

(as of November 15)

Banquet Entertainment Midtown Men

Cam Fine

John Buhrmaster

Carly Fiorina

David Gregory

Kat Cole

Learn more at www.icba.org/convention2015

New CBA Employee Alert: Meet Briana Bronner! CBA is pleased to announce Briana Bronner has joined CBA as Marketing & Member Services Assistant. Prior to joining CBA, Briana held communication internships within the corporate and nonprofit industry, including Atlanta Habitat for Humanity and North Highland Worldwide Management Consulting firm. In her previous roles, she assisted with increasing social media presence, improving internal communications, enhancing brand development and managing external vendors. As a member of the CBA team, Briana will focus on associate member relations, assisting with development of marketing materials and enhancing CBA’s social media efforts.

Like Us, Tweet Us & Follow Us on Social Media! Stop what you are doing! And connect with us on social media! CBA believes in connecting with our members and community bankers on a deeper and more engaging level. We would love to hear your community involvement stories, fun things you like to do at the office, and more!

Briana is a recent graduate of Georgia State University, where she received a Bachelor of Arts in Journalism with a concentration in Public Relations. She looks forward to returning to school in the near future for her Master’s degree in marketing. When not working or studying, she enjoys traveling, spending time with family, eating great food and checking things off her bucket list, like skydiving and white water rafting. Briana can be reached directly at (770) 541-0378 or briana@cbaofga.com.

Experience is the teacher of all things.” – Julius Caesar

So connect with CBA on Facebook, Twitter and Linkedin to continue learning more about banking locally, community bankers and their involvement, as we connect with you, the community we serve. Community is our first name after all.

Connect with CBA

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W in t e r 2 0 1 4 | Ge o r g i a C o m m u n i t i es Fi r s t | 5

Corner GENERAL COUNSEL

legal news and updates for cba members Have a topic you would like to see covered in “General Counsel Corner?” Email us at generalcounselcorner @ jamesbatesllp.com

cbahotline

@ jamesbatesllp.com

Michael N. White of counsel

(478) 749-9921

mwhite@jamesbatesllp.com

Doroteya N. Wozniak associate

(404) 997-6031

dwozniak@jamesbatesllp.com

WINTER 2014

Loan Participation Agreements and the “Administrator Replacement Provision” For years, community banks have acquired loan participations to diversify their loan portfolio, deploy excess capital and manage the risks associated with individual lending relationships. As a result of the recent financial crisis and the FDIC’s loss-share program, many participating banks have found themselves participants in loans held by new and unknown lenders, i.e. the FDIC or real estate investment entities and financial institutions who purchased the debt of a failed bank through the lossshare program. For participating banks, these new “lead banks” create a climate of uncertainty, because in many cases the new lender’s goals for resolving a loan are not aligned with the participants’ goals. One particular area that has caused extensive litigation between these parties is when the new lender desires for a quick foreclosure and sale of the underlying collateral. As the “lead bank,” the new lender generally has the authority and discretion as to when and how to enforce and collect on the loan. Such a foreclosure and quick sale, however, often results in the loan participants receiving much less than their percentage of the loan obligation or the fair value of the underlying collateral. That result can have devastating effects on loan participants who do not enjoy the loss-share protection available to the lead lender. In such situations, participating banks have sometimes attempted to take over the administration of the loan by relying on a provision, similar to the following provision, found in most loan participation agreements (the “Administrator Replacement Provision” or “ARP”): “Qualifying Events. Upon the occurrence of any of the following events, Purchaser [participant] may notify Seller [lead bank] and assume the administration of the Loan and related guarantees and security agreements as well as demand any documentation or writings reasonably necessary to evidence proof of Purchaser’s security interest and perfection: … (4) Seller is declared insolvent, is taken over, or otherwise closed by a governmental regulatory agency which has jurisdiction over Seller.” Successor lead banks have argued that an ARP is unenforceable against them as the successor-in-interest to the FDIC by operation of 12 U.S.C. §1821 (e)(13)(A). Section 1821 provides that the FDIC may enforce any contract entered into by the depository institution notwithstanding any provision of the contract providing for, among other things, termination or exercise of rights upon insolvency or the appointment of or the exercise of rights or powers by a conservator or receiver. Two recent cases in Georgia address the merits of these arguments: CRE Venture 2011-1, LLC v. First Citizens Bank of Georgia, 326 Ga. App. 133, 756 S.E.2d 225 (2014) (“CRE Venture”); and First National Community Bank, f/k/a First National Bank

of Chatsworth v. Stearns Bank, N.A., Civil Action No. 2:13-CV-126-WCO (N.D. Ga. 2013) (“First National”). In both CRE Venture and First National, the participating bank argued that the ARP allows it to replace the successor lead bank as administrator of the participating loan in an effort to prevent an upcoming foreclosure of the underlying collateral. In response, the successor lead bank, relying on Section 1821, argued that the participating bank cannot rely on the ARP as that provision is unenforceable against the successor lead bank by virtue of it being a successorin-interest to the FDIC. In CRE Venture and First National, the Georgia Court of Appeals and the U.S. District Court for the Northern District of Georgia, respectively, have rejected that argument. Both courts explained that the participating bank can rely on the ARP without violating 12 U.S.C. §1821, with the reasoning being that Section 1821 is inapplicable to a participating bank’s efforts to enforce the terms of a participation agreement rather than seeking to avoid the FDIC’s authority to enforce the contract. The participating banks’ lawsuits were neither filed against the FDIC nor sought to terminate the loan participation agreement. The participating banks were seeking only to enforce the terms of the loan participation agreements as originally written and intended. The courts also noted that the ARP is a bargained-for right and to hold the ARP unenforceable against a participant bank would effectively rewrite the terms of the loan participation agreement. Becoming the administrator under a loan participation agreement is not without risks and responsibilities, as most agreements place upon the administrator the duties to enforce and collect the loan as it would for its own account. However, as reflected in CRE Venture and First National, when the loan participation agreement has an ARP, such a provision provides surviving participant banks with some leverage when dealing with a successor to the original lead bank that attempts to resolve a loan in a manner that would be adverse to the participants’ interests. n

PRESENTED BY GEORGIA’S LAW FIRM: 6 | w w w .cbaof ga. com | Sum m e r 2 0 1 3 OFFICES MACON + ATLANTA

by Michael N. White and Doroteya N. Wozniak

“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

Save the Date for 2015 Day at the Capitol! CBA's 2015 Day at the Capitol will be here in the blink of an eye! We hope you've marked your calendars and are just as excited as we are! Prepare for the opportunity to network with your colleagues, discuss key upcoming legislation and meet with your legislators. Please contact Peake Wilson at (770) 541-0379 to register or for more information. Sneak peak of what's to come with a new time and format: 3:30 pm - 4:30 pm 4:30 pm - 6:00 pm

Hear a detailed legislative briefing covering the morning's meetings. Enjoy beverages and heavy hors d'oeuvres while you network. Georgia's legislators and government leaders will be invited to the reception.

Wednesday, February 11, 2015 | 3:30 - 6:00 pm

Exclusively Sponsored by

The Georgia Room and Empire Room 20th Floor, West Tower | Sloppy Floyd Building (across the corner from the Capitol Building)

Registration fee: $45 for first person; $35 for each additional person from the same bank/company.

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WWW.JAMESPAULGROUP.COM Enhanching the Performance of Community Banks www.jamespaulgroup.com W in t e r 2 0 1 4 | Ge o r g i a C o m m u n i t i es Fi r s t | 7

In this issue, CBA is pleased to feature, Ashli Matson, Account Manager with Crescent Mortgage, a CBA Endorsed Member Company. We invited Ashli to answer a few questions so you can learn more about Crescent Mortgage and Ashli.

Q&A

Tell me about Crescent Mortgage and what you do?

I have been an Account Manager with Crescent Mortgage since June of 2011. I travel our lovely state of Georgia and get to meet with Community Bank CEO’s, President’s, Compliance Officers, Managers, Loan Originators and Processors to assist with their secondary market mortgage lending. I do believe my prior experience as a secondary mortgage loan processor for many years proves to be very beneficial to my partners.

GSU or GSU?

I grew up in Alpharetta, Georgia until I was 13 then moved to St. Simons Island, Georgia where I graduated from Glynn Academy in 1990. I then attended Georgia Southern University (the real GSU, I attended both). After a year at GSU and pledging Kappa Delta Sorority, I quickly ran out of all my hard earned money I had saved to put myself through college. I decided to move back to Atlanta to attend the ‘other’ GSU (Georgia State University) and graduated with my Bachelor of Business Administration / Marketing.

How do you spend your time when you’re not working?

My husband Scott and I have been married for 17 years and we have two amazing daughters, Emily, 13 and Valerie, 11. We live in Cumming and our family also includes our loves... Jack (golden retriever), Blue (mini-dachshund) and Bella (the cat). You’ll have to ask me about how we came up with each of their names the next time you see me. Valerie plays tennis and Emily cheers for her 8th grade basketball team so they do keep us busy. My husband and I both play ALTA tennis for our neighborhood. We attend Browns Bridge Community Church where they truly have the best program for kids our girls’ ages.

How do you help Georgia’s Community Banks?

I am honored to work for Crescent Mortgage. Our goal is to meet or exceed our customers' expectations at every point of contact. Crescent has never had any desire to be the largest lender in the country. As community bank owned, we know you understand that Bigger is not always Better. In fact, we find as a mid-size mortgage lender, we are a perfect fit for community banks! Big enough to provide the best in mortgage products and latest technology advancements; Small enough to listen, and custom fit our services based on your banks individual needs. We currently find ourselves in a purchase market. This is actually the best time to get into Mortgage Lending if you are not currently because when our industry is in the middle of a refinance boom, the volume demand is usually too much to handle when trying to get started. I have assisted many banks in launching the secondary mortgage offering to their customers. I started in this industry to help people with the biggest, most important purchase of their lives. I continue to feel the same way today, I love what I do, helping you provide the most important opportunity to your customers.

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

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W in t e r 2 0 1 4 | Ge o r g i a C o m m u n i t i es Fi r s t | 9

2nd Annual

WOMEN in Banking

A Seminar Focused on Educating Women in Today’s Business World

SEMINAR

Don't Just Step Outside the Box, Blow Up the Box! And, Snap Out of It! Lead and Live Fully Alive! Today, women in banking still face many challenges on a daily basis; however, CBA recognizes the powerful influence and potential of women in the banking profession to ignite their SNAP power!

• Within all of us lives a person of greater potential and passion. Maybe it's a dream, or awakening that is waiting to be unleashed.

Don't miss this opportunity for invaluable networking, powerful information and a great career move. Not only will you benefit both personally and professionally, you’ll leave this seminar motivated, energized, and inspired! The program is presented entirely by DeDe Murcer Moffett, the “Snap Out of It Woman.”

• DeDe provides you with real-life ways to blow up your box, just like she did, while showing you how to leap forward and dig deep to find your greater purpose.

Program Information presented by DeDe Murcer Moffett When life happens to us, and as we mature, subconsciously we start to create barriers and structures around our world that keep us limited in our thinking and often times stop us from reaching for the stars or beyond. Before we know it, we are living life inside a box – a box that we created, voluntarily stepped inside of, shut the door, and then threw away the key! That's why the concept of “stepping outside the box” rarely works. Why? Because, the term by itself is nothing more than a passive cliché. We have to blow up the box if we are going to ignite our true Snap Power! And that means taking real action! DeDe's mantra is “Everything is possible when you learn to ‘Snap Out of It,’ shift your paradigm and start seeing life's struggles and setbacks as the doorway to YOUR success!” You discover the secret that lies within us all when we learn to call into our lives the power of living fully, living abundantly and living consciously. But first, we have to WAKE UP to appreciate that… Please watch for more information to arrive soon. In the meantime, please contact Peake Wilson by dialing (770) 541-0379/(800) 648-8215 or by emailing peake@cbaofga.com.

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

• We've all faced critical choices in life that have either held us back or have launched us forward. Now it's time to lighten the load and let it go.

WHEN: Thursday, March 5, 2015 WHERE: Idle Hour Country Club, Macon Pricing

$95 per CBA Member $115 per Non-CBA Member

Schedule of Events 9:30 – 10:00 am Registration / Continental Breakfast 10:00 – 11:30 am Don’t Just Step Outside the Box, Blow Up the Box! 11:30 am – 12:30 pm Lunch / Book & Products Sales and Signing 12:30 – 2:00 pm Snap Out of It! Lead and Live Fully Alive! 2:00 pm Adjourn

SPEAKER

DeDe Murcer Moffett, , “The Snap Out of It Woman,” is an enthusiastic, larger-than-life, entertaining leadership speaker and trainer who grabs the hearts and minds of audiences through powerful content and highenergy Broadway-style entertainment. She pushes the boundaries of what’s possible and inspires and educates others on how to do what they think they can’t. Through her own experience of building a successful 25-year career within the competitive world of corporate sales and sales management, DeDe overcame a major life crisis. Today she’s on a mission to show how you too can become more successful in less time when you “Go From Numbed Out to Fully Alive!” She draws upon her extensive career and research into breaking free of limiting habits that dull creativity, cripple drive and derail dreams. Through humor and a no-holds-barred delivery, she shares the knowledge, emotional fuel and do-it-now exercises to unleash your best work, ignite killer creativity, defy the impossible, and keep performing your best even when life throws you a curve ball.

Program Highlights 1. How to Snap Out of It and Go from Numbed Out to Fully Alive 2. Learn Simple Techniques to Speed Up Success in just 3-5 Minutes a day! 3. Build A Big Hairy Audacious Vision that Moves You Past Setbacks and Failures 4. Simple Questions that Remove Fear, Doubt and Confusion 5. How to Develop the "Steve Jobs Mindset" for Unlimited Possibilities

With a 360° perspective, our financial services team is with you at every turn. More than 100 banks in the Southeast depend on Elliott Davis for personal attention, industry experience and services, including external and internal audit, SEC reporting, taxation and compliance. Our financial services practice is 90 professionals strong, with a 60-year reputation for helping banks operate stronger, wiser, better. Let us help you stay on course.

6. Discover How to Stop Avoiding What Makes You Sit Down and Play Small 7. Learn Why "Stupid" is Smart Business

Special Thanks to Our Program Sponsors

Continental Breakfast

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Speaker Co-Sponsor

Speaker Co-Sponsor W in t e r 2 0 1 4 | Ge o r g i a C o m m u n i t i es Fi r s t | 11

Excellent Exchange of Viewpoints at Banker Regulatory Forum The November 6, 2014, Banker Regulatory Forum, sponsored by AloStar Bank of Commerce, hosted leaders from state and federal regulatory agencies, bankers and associate members as regulatory "hot topics” and agency-specific questions were discussed openly among the crowd. Topics included: risk management, cyber security, management and board succession planning and ALLL. In a bankers-only session held after lunch, Dan Brannan of JamesBates-Brannan-Groover, LLP gave a legal update and discussed several timely issues such as guarantor waivers of foreclosure confirmation, director and officer liability standard and banks’ security interest in deposit accounts and accounts receivable. CBA President & CEO Rob Braswell concluded the forum by providing a synopsis of the ICBA’s Regulation Review Committee meeting held in September in Washington D.C. Rob and Derek Williams, President & CEO, Columbus Community Bank, joined over 20 other community bankers across the country to meet

and discuss a myriad of issues with federal regulators, including Comptroller of the Currency Tom Curry, Federal Reserve Governor Daniel Tarullo, Consumer Financial Protection Bureau (CFPB) Deputy Director Steve Antonakes and FDIC Chairman Martin Gruenberg. Additionally, Rob gave a quick preview of several upcoming "can’t miss” CBA events, including both of CBA’s annual conventions. The Banker Regulatory Forum is complimentary to all members and is hosted once per quarter alternating between CBA Headquarters in Atlanta and the Idle Hour Country Club in Macon – PLEASE NOTE: for February 5, 2015, ONLY, the Forum will be held at Brickyard Golf Club in Macon. If you or anyone from your institution would like to learn more, please contact Peake Wilson at peake@cbaofga.com. The CBA of Georgia is continually grateful for the support of and participation in this valuable and informative program.

We are pleased to announce the addition of Carol Martin to the LoanSouth Mortgage Team. LoanSouth Mortgage, based in Atlanta, Georgia, was founded in 2008 by mortgage industry leader, Kim Nelson. Through dedication and a commitment to standing out as a boutique lender, LoanSouth has achieved multimillion dollar sales growth year over year. In 2011, LoanSouth partnered with award winning community bank, BankSouth, out of Greensboro, Georgia, to further expand its lending capacities. Due to their shared philosophies and growth plans, joining forces has proved to bring success to both entities. BankSouth was recognized as one of the Nation’s Top 20 Industry Performers of 2013 by ICBA’s Independent Banker and LoanSouth earned the #5 ranking for market share position for purchase transactions in the Atlanta Metropolitan area after only 5 years since inception. With the continued focus on advancement and growth, LoanSouth’s correspondent channel has been prepared to offer this same standard of excellence to their correspondent partners. Service is what sets LoanSouth apart in the mortgage industry and with our diversified mix of products, cutting edge technology, and dedication to our partners and customers, success is sure to continue.

Carol Martin, Vice President,Correspondent Relations Direct: (678) 296-5508 Fax: (678) 990-6643 E-Mail: cmartin@loansouth.com NMLS: 742856

990 Hammond Drive Suite 210 Atlanta, Georgia 30328 www.loansouthcorrespondent.com

Equal Housing Lender. LoanSouth Mortgage, a wholly owned subsidiary of BankSouth. NMLS # 690971. 990 Hammond Dr., Ste. 210, Atlanta, GA 30328.

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

ServisFirst Correspondent Banking Our name is our mission statement.

OUR NAME IS OUR MISSION COATED 78c 58m

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

Henry Abbott Senior Vice President 205.423.2797 habbott@servisfirstbank.com

Bill Dacko Senior Vice President- FL 407.496.7669 bdacko@servisfirstbank.com

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

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

Rik Lane Senior Vice President - GA, SC 478.733.0756 rlane@servisfirstbank.com

Steve Shelton Senior Vice President - TN, AR 901.634.1608 sshelton@servisfirstbank.com

Bill Street Senior Vice President - AL, MS, LA 205.423.2718 wstreet@servisfirstbank.com

205.949.0302 www.ser Member FDIC Equal Housing Lender

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

W in t e r 2 0 1 4 | Ge o r g i a C o m m u n i t i es Fi r s t | 13

A Perfect Fall Day of Shooting Clays at Barnsley Gardens A cold, crisp October morning turned into an absolutely gorgeous Fall day at Barnsley Gardens Resort’s Spring Bank Sporting Club for the CBA Leadership Division’s PAC/PR Clay Shoot. Over 25 bankers and Associate Members participated, and everyone had a fantastic time. Networking, shooting clays in a fun competition and making new friends…what more could you ask for? Oh yeah… perfect weather. And, that we had! “The event was a fun way of supporting the PAC/PR fund, which gives Georgia’s community banks a voice regarding the political issues that affect our industry,” stated Kyle Ray, BSA Officer / Vice President-Customer Service Manager, First Bank of Dalton; CBA’s PAC/PR Fundraising Committee North Chair. We are proud to announce the morning’s top shooter was Paul Kiker, Jr., friend and customer of Kyle Ray. Paul was also the day’s top shooter with a score of 76. The afternoon’s top shooters tied

at 72 – Elliott Miller, President/CEO of Georgia Banking Company, Atlanta and Joey Pardo, Vice President Commercial/Government Guaranteed Lending Highland Commercial Bank, Marietta. Congratulations to all the winners! “The PAC/PR Clay Shoot at Barnsley Gardens was a fantastic event raising almost $3,900 for CBA’s PAC/PR Funds. The weather was perfect and the facilities at Barnsley were top-notch. A great time and great event,” said Rusty Powell, Group Vice President, Highland Commercial Bank, Marietta, and CBA Leadership 2014-2015 Division Chairman. “On behalf of the CBA and the Leadership Division, I greatly appreciate everyone who sponsored and participated.”

SAVE THE DATE Spring Sporting Clay Shoot Raising funds for CBA’s PAC/PR Hosted by CBA’s Leadership Division

Thursday, March 26, 2015 Wynfield Plantation, Albany Morning Flight | Lunch | Afternoon Flight For more information or to register, please contact Peake WIlson at peake@cbaofga.com.

Kyle Ray, LD Chairman-Elect, Co-Chair of PAC PR Committee and Rusty Powell, 2014-2015 LD Chairman, Member of PAC PR Committee 1 4 | w w w . cbaof ga. com |Wi n t e r 2 0 1 4

Foresight is 20/20.

HIGHLIGHTS:

If you want to know whatâ&#x20AC;&#x2122;s next in financial services technology, look to the leader in digital banking, payments, account processing and more. fiserv.com/next

W in t e r 2 0 1 4 | Ge o r g i a C o m m u n i t i es Fi r s t | 15 ÂŠ 2014 Fiserv, Inc. or its affiliates.

CBA's Memorial Scholarship Applications are Now Available! On behalf of the Community Bankers Association of Georgia (CBA), we are proud to announce the 2015 Julian & Jan Hester Memorial Scholarship and the J. Steven Walraven Scholarship! 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 fall semester of 2015. 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. The Walraven Scholarship is awarded in the amount of $500 to a bank employee who desires to continue their education while working full-time at a CBA member bank. The scholarship is named after the late J. Steven Walraven, an active community banker who exemplified professionalism and community involvement. To compete, employees must write a short essay on how community banking has impacted their life and how it will enable them to give back to their community.

These scholarships are a tremendous opportunity for CBA to promote independently-owned community banking and for banks to put the community into community banking. Please visit www. cbaofga.com to download the scholarship flyer to post at your teller station, and encourage students and full-time employee students to apply! Applications should be returned to your bank no later than Friday, April 3, 2015. Once you have received all of the applications, please select one candidate best qualified for your bank to sponsor. A judging will be held and winners will be announced in May 2015. Contact Shera Banks at shera@cbaofga.com for more information on either of these scholarships or visit www.cbaofga.com.

WHAT MAKES THE BARRET EXPERIENCE SPECIAL? Best Graduate Banking Education Value Background: 40+ years in existence/formerly Mid South School of Banking; Large endowment allows tuition subsidies/ attendees from 20+ states Education: Outstanding and innovative curriculum; Superb faculty including nationally known speakers in the industry Lecture: Series Featuring nationally distinguished speakers â&#x20AC;&#x201C; Dr. Robert Gates, Coach Mike Krzyzewski, Coach Tony Dungy, Newt Gingrich, Stephen Covey Tuition: Among lowest in the industry ($1195 tuition - $1505 with housing); Approximately 1/3 of the cost of other banking schools at LSU, SMU, Wisconsin, Stonier, and Colorado Convenience: One-week resident session means employees spend less time away from the job

Additional information and applications at www.barret.ws.

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43rd Annual Graduate School Session May 17-22, 2015 GRADUATE CURRICULUM IN BRIEF 1 Week per year for 3 years 128 Hours of classroom study 9 On-campus case studies 8 Home study problems

Do You Know What CBA's Leadership Division Is? The purpose of the Community Bankers Association of Georgia's (CBA) Leadership Division (LD) is to promote the advancement of tomorrow's financial industry leaders and to encourage and foster additional relationships between the CBA and its member banks. Membership in the LD gives representatives an opportunity to expand personally and professionally through networking, educational opportunities, political activism and awareness and community service. To learn more, please visit www.cbaofga.com. On this page, you will gain a better understanding of the Leadership Division, what its benefits are and what the group accomplishes year after year. We invite all Georgia community banks to designate a Leadership Division Representative and join in the fun and be a part of a tremendously active and meaningful society. Membership in the Leadership Division is complimentary for CBA member banks.

“It is an honor and a pleasure to Chair the LD this year,” stated Rusty Powell, Group Vice President, Highland Commercial Bank, Marietta. “We are a very active group dedicated to completing our initiatives and reaching our goals every year. I want to take this opportunity to remind ALL bankers across Georgia that it’s not just about the LD Board of Directors…it’s about ALL CBA Leadership Division Representatives and members…I want it to be clear that every banker throughout Georgia is invited to join and participate in all our activities.” The LD’s initiatives are PAC/PR fundraising, Children’s Healthcare fundraising and Leadership Division Membership.

The goals for 2014-2015 are as follows:

PAC/PR

Net of $20, 000

Net of $40, 000

100% Membership

Please contact Peake Wilson at CBA’s office to learn more: (770) 541-0379 / (800) 648-8215; peake@cbaofga.com.

Don Friesen to Entertain at Leadership Division Convention! Engaging, clever and just flat-out funny, Don Friesen captures the irony of parenting, marriage and everyday absurdities through characters, voices, parodies and some of the best written routines around. His routines are considered “smart and savvy, highly-caffeinated comedy.” He’s a wanna-be geek who constantly upgrades to the latest tech, but can never get it to work, leading to signature bits about tech support, Idiots Guides, texting and passwords. Relevant and family-friendly, Don is sure to be a huge success! Plan now to attend the 2015 Leadership Division Convention & Mini-Trade Show - Friday – Monday, June 12-15, 2015, at the Sandestin Golf & Beach Resort in Destin, Florida!

Sandestin Golf & Beach Resort, Destin, FL

Don Friesen

W in t e r 2 0 1 4 | Ge o r g i a C o m m u n i t i es Fi r s t | 17

KNOW WAY.

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

CORRESPONDENT SERVICES-

BALANCE SHEET MANAGEMENT | BOND ACCOUNTING | INVESTMENT STRATEGIES

CLEARING FUNDS MANAGEMENT | FED FUNDS | INTERNATIONAL SERVICES | SAFEKEEPING

ADVISORY SERVICES-

STRATEGIC BALANCE SHEET MANAGEMENT | STRATEGIC PLANNING | PROFITABILITY ENHANCEMENT

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

MEMBER FDIC

ASSET BASED LENDING

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

Dates Confirmed for CBA's 2015 Spring Meetings and PAC/PR Golf Tournaments! CBA is pleased to announce the 2015 Spring Regional Luncheon Meetings & PAC/PR Golf Tournaments! Mark your calendar today and make plans to attend! These meetings are a fantastic way to learn about current industry news, legislative issues and financial trends. There will be ample time for networking and making new connections as well as catching up with friends. And, don’t forget to sign up for the PAC/PR golf tournaments, too! The CBA maintains the only state PAC working exclusively for Georgia’s community banks.

Wednesday, April 15, Idle Hour Country Club, Macon Tuesday, April 21, Hilton Atlanta/Marietta Thursday, April 23, Chateau Elan, Braselton - with Golf & Dinner Tuesday, May 5, Forest Heights Country Club, Statesboro Wednesday, May 6, Doublegate Country Club, Albany - with Golf & Dinner Registration will open soon! Be on the lookout for more information to arrive at your business within the next few weeks. For golf sponsorship opportunities, contact Lindsay Greene at 770-541-0376. For general inquiries, contact Peake Wilson at 770-541-0379.

Spring Meetings exclusively sponsored by

Create Visibility! CBA Has Solutions to Fit Your Budget! Whether it is through advertising, sponsorship, or participation in a convention or conference, CBA of Georgia is ready to work with you to make the most of your marketing dollars. Each event Community Bankers Association of Georgia promotes is designed to educate bankers and help associate members reach their targeted audience effectively. By advertising and sponsoring with CBA, you are maximizing your company’s visibility, gaining recognition as an industry leader and, most importantly, maximizing your marketing dollars. Published quarterly, Georgia Communities First magazine is the place to be seen by community bank CEOs, Leadership Division representatives, associate members and other community banking associations across the country. You may want to try the CBA Today weekly e-newsletter which boasts a distribution of over 4,500. CBA will soon launch a new website offering more digital marketing opportunities and a new online Georgia Financial Directory. Be among the first to reserve your ad space. Sponsorships range from a $150 hole sponsorship at the popular PAC/PR golf tournaments to the 7-Minute Spotlight – a true opportunity to showcase your product at our conventions. Target your audience even more by sponsoring at a CBA educational program – a great way to reach a specific segment in a bank. From high-visibility sponsorships to advertising opportunities, we can customize the perfect package for your company’s goals and budget! For more information, contact Lindsay Greene at 770.541.0376 or lindsay@cbaofga.com. W in t e r 2 0 1 4 | Ge o r g i a C o m m u n i t i es Fi r s t | 19

Mark Your Calendars for CBA's 2015 Conventions! !

CTURE U R T S G N I EW PRIC

37th Annual Leadership Division Convention & Mini-Trade Show Friday – Monday, June 12-15, 2015 Sandestin Golf & Beach Resort, Destin, FL

47th Annual Meeting & Trade Show

Wednesday – Sunday, September 23-27, 2015 The Westin Savannah Harbor Golf Resort & Spa

Pricing:

First Attendee: $495

First Attendee: $795

Exhibitor: $1195 (includes Mini-Trade Show and all Convention

Exhibitor: $1195

Functions)

(includes Trade Show and all Convention Functions)

Each Additional Attendee from same Bank/Company: $425*

Each Additional Attendee from same Bank/Company: $695*

Spouse: $75

Spouse: $200

Children 17 and under are FREE!

Children 17 and under attending Thursday Night: $25

5k & Kids’ Fun Run: $20 in advance; $25 onsite

Golf: $145 per player

Golf: $85 per player

Hotel Info: Our block is reserved in the bayside area of the resort (Baytowne Wharf ) in four buildings closest to the conference building – Grand Sandestin, Lasata, Bahia and Elation. Grand Complex Studio (this is most similar to a “standard” hotel room) (K or QQ): $219; Grand Complex 1 Bedroom: $239; Grand Complex 2 Bedroom: $359 (limited quantity in the block); all rates are subject to additional tax and fees. The deadline to receive the discounted rate is Monday, May 11, 2015. For reservations, contact Group Reservations at (800) 320-8115 and mention the group name CBA Annual Leadership Division Convention to receive the group rate.

Hotel Info: The CBA group rate for the Annual Meeting is $232 per night for single /double occupancy plus $19 resort fee and taxes. The deadline to receive this discounted rate is Friday, August 21, 2015. For reservations, contact Starwood Central Reservations at (800) 228-3000 and mention the group name CBA Annual Meeting to receive the group rate.

A joint preliminary brochure has already been mailed. For more information, please contact the CBA office (770) 541-4490 / (800) 648-8215 or visit the website www.cbaofga.com. We are working diligently to put together the most relevant topics and finest speakers for the benefit of all our members - more comprehensive brochures will be mailed out when event details are finalized. If you are interested in exhibiting or sponsoring, please contact Lindsay Greene at CBA. For all other inquiries, please contact Peake Wilson at CBA. We can’t wait to see you!

REGISTRATION IS OPEN! Non-Members: Add $200 to each Attendee or Exhibitor Registration. Non-Spousal Guests and Children 18 and over: Additional fees will apply if attending any convention function. *Additional Attendees: other reps attending from your bank/company will be billed as an Additional Attendee and not as a Guest.

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Announcing the 2015 Bank Director Training Schedule

LE CPE/Cits Cred le b Availa

Bank Director training continues to be critically important for community banks. Examiners are spending more time than ever reviewing board minutes, committee decisions and board training. The CBA is a leader in offering timely and informative bank director training in a variety of training formats. Please make plans now to attend one or all of the 2015 bank director training opportunities! To learn more about each program and to register, visit www.cbaofga.com or contact Jodi Swilley, Director of Education & Professional Development, at jodi@cbaofga.com.

Workshops, Conferences & Colleges FDIC Community Bank Directors' Capital Markets Workshop Tuesday, January 27, 2015 – The Georgian Club, Atlanta FDIC Community Bank Directors' Capital Markets Workshop Thursday, January 29, 2015 – The Idle Hour Country Club, Macon 7th Annual CBA Bank Directors’ & Executive Management Conference Monday, March 23, 2014, Hyatt Atlanta Perimeter at Villa Christina 3rd Annual CBA Bank Chairman’s Summit Monday, May 4, 2014, Hyatt Atlanta Perimeter at Villa Christina 6th Annual CBA & FDIC Bank Directors’ College Wednesday, August 5, 2015, The Ritz-Carlton, Greensboro

Bank Directors’ Webinar Series The Bank Director Webinar Series covers hot topics of importance to community bank directors. Participants may elect to attend the live webinar and/or they may purchase the web link. The web link consists of a recording of the live webinar along with speaker handouts. Plus, you may contact the speaker with questions. The web link is valid for six months from the date of the webinar and the web link may be shared with others at no additional cost. In addition, a complimentary CD Rom is provided. The CD Rom is for PC use only. Purchase all six webinars and get one FREE. To learn more about what will be covered in each webinar, visit www.cbaofga.com or contact the CBA Education Department.

AFFORDABLE, PROFESSIONAL TRAINING, WHEN AND WHERE YOU CHOOSE January 21

FDIC Trends & Deficiencies Cited in Matters Requiring Board Attention

March 10

Update on Capital Planning, Contingency & Basel III for the Board

May 7

Regulator & Industry Hot Buttons for Directors

May 12

Duties of the Board Secretary: Fundamentals, Best Practices & E-Package Delivery

July 14

Understanding the Board’s Role in Cyber Security Risk

September 9 UDAAP for the Board & Senior Management November 3 Interest Rate Risk Policies, Considerations & Consequences: What Directors Should Know Note: Dates/Locations subject to change. W in t e r 2 0 1 4 | Ge o r g i a C o m m u n i t i es Fi r s t | 21

WHITE PAPER

Community Bank Forecasting How to switch from spreadsheetbased forecasting models to instrument-level planning software Today’s increased regulatory scrutiny and tighter margins have community bankers searching for more reliable and quicker methods for budgeting and forecasting. More and more, community bankers are abandoning complex webs of Excel spreadsheets in favor of streamlined planning software. When making this kind of switch, it’s critical for bankers to understand basic data requirements and terminology common to most of today’s planning software. This white paper will help guide community bankers through the conversion process, increasing the likelihood of a smooth transition.

SNL.com/forecasting

To learn more, contact Julie Jones: Partners@SNL.com; 434.951.4419 2 2 | w w w . cbaof ga. com |Wi n t e r 2 0 1 4

1st Quarter 2015 CBA Webinars

Affordable, Professional Training, When and Where You Choose!

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

• Continuing Professional Education Credits, • Take-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. LE CPE/Cits Cred le b Availa

JANUARY 2015

1/6 1/7 1/8 1/13 1/14 1/15 1/21 1/22 1/23 1/27 1/28 1/29

HMDA: What to Know Now & What’s on the Horizon? Apple Pay, the Mobile Payments Game Changer: Considerations & Action Steps for Community Banks Disaster Management & Continuity Planning, Including Critical Vendors IRA & HSA Update 2014-2015 Tax Years CFPB Rules for Mortgage Loan Officer Compensation Advanced Endorsements: POAs, Businesses, Trusts & More FDIC Trends & Deficiencies Cited in Matters Requiring Board Attention (MRBA) Security Officer Reports to the Board: Compliance & Best Practices in Fulfilling Your Annual Requirement Call Reports: Basel III & RC-R Changes Line by Line Customer Complaint & Response Management Dealing with ACH Tax Refunds: Exceptions, Posting & Bank Responsibilities The UBPR: Understanding Peer Group Comparison to Improve Bank Performance

February 2015

2/3 2/4 2/5 2/10 2/11

2/12 2/18 2/19 2/24 2/25 2/26

Revisiting Your RESPA & TILA Policies to Include the New Integrated Disclosure Requirements Understanding Appraisals & Appraisal Review Concepts for Lenders New BSA Officer Training FASB/GAAP Update, Including Proposed Modifications to ALLL Calculations Qualifying Borrowers Using Personal Tax Returns Part 1: Basics, Itemized Deductions, Interest & Dividend Income, Sole Proprietorships & Capital Gains Account Opening Due Diligence FinCEN Guidance on Banking Marijuana Businesses Regulator Issues & Update for the Credit Analyst Setting & Monitoring Effective ACH Exposure Limits FFIEC Guidelines & Recent Developments in Cyber Security Risk Management Top 10 Compliance Mistakes in Advertising

March 2015

3/3 3/4

3/5 3/10 3/12 3/17 3/19 3/24 3/25 3/26 3/31

Traditional & Roth IRA Fundamentals & Compliance Considerations Qualifying Borrowers Using Personal Tax Returns Part 2: Income from Rentals, Royalties, Partnerships, S Corporations & Farms Free Checking Trends in Today’s Market: Feasibility, Regulations & Benefits Update on Capital Planning, Contingency & Basel III for the Board Legally Handling ATM & Debit Card Claims Under Regulation E Flood Insurance Compliance Review & Update Real Estate Valuation: Beyond the Basics The TILA/RESPA Integrated Disclosure Line-by-Line Part 1: Loan Estimate Call Report Revisions & Update: Including an Overview of Basel III Regulatory Capital Changes to Schedule RC-R Social Media Content Strategies for Visibility & Positioning of Your Bank Online Opening Trust Accounts: Compliance, Documentation, Signing Authority & Deposit Insurance Issues

To learn what is covered in the webinar and to register, visit www.cbaofga.com or contact Jodi Swilley at Jodi@cbaofga.com or 770-541-4492.

Note: Dates/Topics subject to change.

W in t e r 2 0 1 4 | Ge o r g i a C o m m u n i t i es Fi r s t | 23

1st Quarter 2015 Education Seminars, Schools & Conferences informative programs. To learn more about each of these programs and to register, please visit the CBA website or contact the CBA Education Department at education@cbaofga.com. Thank you for your continued support of the CBA Education Program.

The CBA is pleased to offer our members a variety of classroom educational programs designed for Bank Directors, Presidents/CEOs, Consumer, Commercial and Mortgage Lenders, IT Professionals, Security Officers, Customer Service Representatives, Bank Secrecy Act Officers and Compliance Officers. The CBA invites you to join us for one or several of these

LE CPE/Cits Cred le b Availa

January 2015

March 2015

FDIC Community Bank & Directors' Capital Markets Workshop Tuesday, January 27, 2015 - Atlanta

2 Annual Women in Banking Program Thursday, March 5, 2015 - Idle Hour Country Club - Macon

FDIC Community Bank & Directors' Capital Markets Workshop Thursday, January 29, 2015 - Macon

Allowance for Loan & Lease Losses (ALLL) Thursday, March 5, 2015 - Atlanta

February 2015

Consumer Lending School (4½ days) Monday-Friday, March 9-13, 2015 - Atlanta

Training the Credit Analyst Tuesday-Wednesday, February 3-4, 2015 - Atlanta

Leadership Academy Session I: Wednesday, March 11, 2015 - Macon Session II: LDC - June 12-15, 2015 - Sandestin Session III: Wednesday, August 19, 2015 - Macon Session IV: Wednesday, October 28, 2015 - Macon

Business Development I & II Tuesday-Wednesday, February 3-4, 2015 - Atlanta Banker Regulatory Forum Thursday, February 5, 2015 - Atlanta

Workplace Law & Compliance Program Workshop I: Thursday, March 12, 2015 – Atlanta Workshop I: Thursday, March 19, 2015 - Macon

Analyzing Personal Financial Statements & Tax Returns Thursday, February 5, 2015 - CBA Headquarters, Atlanta

7th Annual Bank Directors & Executive Management Conference Monday, March 23, 2015 - Atlanta

CBA Day at the Capitol Wednesday, February 11, 2015 - Atlanta Compliance Program I-II Topic: "New Mortgage Integrated Disclosures: Effective August 2015" Two-Day Program-Held in Five Cities- Day II: Adjourn at 2:00 pm Tuesday, February 3-4, 2015 –The Forum, Rome Thursday-Friday, February 5-6, 2015 - Albany Tuesday-Wednesday, February 10-11, 2015 – Macon Thursday-Friday, February 12-13, 2015 - Duluth Wednesday-Thursday, February 18-19, 2015 - Brunswick

Compliance Management School (New - 3½ days) Tuesday-Friday, March 24-27, 2015 – Atlanta

Dates/locations are subject to change. For most current information, visit the CBA website at www.cbaofga.com or contact the CBA University Education Department at education@cbaofga.com.

Commercial Lending School (4½ days) Monday-Friday, February 23-27, 2015 - Atlanta

Index to Advertisers For information on advertising in Georgia Communities First magazine, please contact Lindsay Greene at lindsay@cbaofga.com. COMPANY

PAGE

COMPANY

PAGE

AloStar 18

Harland Clarke

Barret School of Banking 16

ICBA 4

SHAZAM back cover

Carr, Riggs & Ingram

The James Paul Group

SNL Financial 22

Elliot Davis

LoanSouth Mortgage

Stokes, Lazarus & Carmichael LLP inside front cover

Midwestern Securities

Fiserv 15

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COMPANY

ServisFirst 13

2015 CBA Compliance Program

LE CPE/Cits Cred le b Availa

2015 CBA Southeastern Workplace Law & Compliance Program (WLCP)

The CBA Compliance Program is a specially designed program to educate community bankers on regulatory issues and the applicable effects on their bank. New regulations and the interpretation and application of existing regulations are addressed in a straight-forward manner. The program also gives bankers techniques for monitoring their in-bank compliance program. The CBA Compliance Program is designed for the bank's compliance officer as well as for other staff members who have the responsibility of enforcing such regulations. This could include representatives from lending, operations, customer service and marketing. Membership is in the banks name to provide you an opportunity to send different employees to the programs based on the topics. Please make plans now to attend one or all of the 2015 compliance programs in a city near you!

The Southeastern Workplace Law & Compliance Program (WLCP) is designed to provide affordable workplace law counsel and convenient and timely educational opportunities to those who have responsibility for workplace/employment and benefits law, including: Presidents, CEOs, COOs, Boards of Directors, Personnel & Human Resource Officers, Managers, Supervisors, Head Tellers and all staff who manage and supervise employees. The program offers affordable and reliable counsel to help you meet your workplace/employment law compliance requirements and to minimize or avoid costly lawsuits. Please make plans now to attend a workshop in a city near you, the annual conference and the Noon-Time Forums.

Compliance Program I-II Topic: “New Integrated Mortgage Disclosures: Effective August 2015”

3/12 3/19

2/3-4 2/5-6 2/10-11 2/12-13 2/18-2/19

7/16 7/23

The Forum, Rome Stonebridge Country Club, Albany Idle Hour Country Club, Macon Hilton Garden Inn at Sugarloaf, Duluth Holiday Inn, Brunswick

(Day II will adjourn at 2:00 p.m.)

2015 Compliance Program III Topic: “Georgia Deposit Documentation” 5/13 5/14 5/19 5/20 5/21

Idle Hour Country Club, Macon Hilton Garden Inn at Sugarloaf, Duluth The Forum, Rome UGA Tifton Campus Conference Center, Tifton Holiday Inn, Brunswick

WLCP - Workshop I: SIO Law Group Office, Atlanta Idle Hour Country Club, Macon

WLPC - Workshop II: SIO Law Group Office, Atlanta Idle Hour Country Club, Macon

WLCP - Annual Conference (1½ days): 10/15-16, Atlanta

WLCP - Noon-Time Forums: January 23, February 10, April 14, May 12, June 9, August 11, September 8, November 10, December 8

2015 Compliance Program IV Topic: “Bank Secrecy Act Anti-Money Laundering” 12/8 12/9 12/10 12/15 12/16

The Forum, Rome Idle Hour Country Club, Macon Hilton Garden Inn at Sugarloaf, Duluth UGA Tifton Conference Center, Tifton Holiday Inn, Brunswick

Membership Now Open! Join Today! To learn how to become a member and much more, visit www.cbaofga.com or contact the CBA Education Department. Dates/Locations are subject to change.

W in t e r 2 0 1 4 | Ge o r g i a C o m m u n i t i es Fi r s t | 25

5 Steps for Preparing for Effective Vendor Negotiations Jim Wilkson President BankSmart A CBA Endorsed Member Company Step 1: Vendor Management – Understand its Purpose Done right, vendor management will: • • •

Reduce your expenses, Help you identify and manage both threats and opportunities, AND meet regulatory requirements.

Effective vendor management starts with the selection process and continues for the life of the relationship. Bank management has an obligation to identify and understand the risks your vendors pose to your bank and a fiduciary responsibility to search for opportunities to improve both financial and service level performance from your vendor relationships. Consider each area of the bank that has a role in planning for or performing work with your vendors and be sure to involve your team members in your vendor management process on a continuous basis. Step 2: Track Contract Terms and Expiration Dates To develop an effective vendor management program, begin with an accounts payable report of those you’ve paid over the past year; then centralize related vendor contracts and document what products and services are covered. It’s also a good idea to get a vendor management system in place at this point. In addition to providing software, look for a vendor management partner that can help you with related services on an “as needed” basis. This will help tremendously as the workload will vary at different points. Step 3: Sync up Expiration Dates When it comes to your data processing and related services, do your best to sync up the contract expiration dates. It might not seem important on the surface, but having all of your contracts for interrelated services expire at the same time can provide you additional leverage in renegotiating your contracts. A shortterm extension might be in order for some contracts in order to match them up with others. In addition, if you decide to evaluate new vendors and possibly change providers, potential early termination fees can be avoided for services being replaced that expire outside the conversion timeframe.

Step 4: Provide Written Notice Not to Automatically Renew Regardless of your relationship with your vendors, it is prudent to send a written notice asking them not to automatically renew your contracts. If it isn’t in writing then it didn’t happen! Always send the letters according to the terms of each contract by certified mail and obtain and keep a return receipt. Step 5: Take Advantage of Professionals – Enhance Your Efforts The FDIC FIL titled “Effective Practices for Selecting a Service Provider” states that banks “may wish to consider using consultants to provide expertise and assistance throughout the selection process.” Whether renewing your contracts or evaluating alternative providers, choose a consulting firm that has a deep knowledge of community banking and the providers that service banks like yours. An experienced consultant can facilitate productive and professional working relationships between your bank and your vendors while helping you get the best possible services at the best possible price. To learn more, contact Jim Wilkson at 813-774-8000 or jwilkson@banksmartusa.com.

Order a 2014 Georgia Financial Directory today! Copies are: $45 for members; $75 for non-members. Contact Lindsay Greene at lindsay@cbaofga.com for more information.

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Data Breaches Hasten EMV Migration Plans; Latest Debit Issuer Study Shows Renewed Card Security Focus Steve Sievert Executive Vice President PULSE A CBA Endorsed Member Company The Debit Issuer Study, commissioned annually by PULSE, objectively presents facts about debit card issuer performance and perspectives across electronic payments, seeking data and insights from banks and credit unions across the spectrum of type, size, location and network participation. Some findings have been constant over the years, such as optimism about debit growth, concerns about fraud and the constant tweaking of rewards programs. The impact of major disruptive events also has been tracked and reported, such as how belt tightening following the recession increased consumer preference for debit, and how Regulation II prompted financial institutions to reassess debit program strategies. The 2014 Debit Issuer Study reported on the impact of another major disruptive event: high-profile data breaches. Many financial institutions are reacting by ramping up their plans to issue EMV cards – something that previously seemed stuck in neutral. The Target breach over the holidays last year proved to be a great motivator for financial institutions and the cardholders they serve. This year’s study confirms the industry is reaching a tipping point toward EMV, with 86 percent of respondents telling us they plan to begin issuing EMV cards in the next two years, a significant increase from 50 percent in 2012. Security a Key Objective To say the Target breach was a watershed event for the industry is an understatement. The Debit Issuer Study found that issuers are responding by re-evaluating their strategies for improving card security.

Broad Commitment to EMV Highly publicized data breaches have helped many financial institutions overcome their hesitancy to commit to EMV. The cost of the Target breach, paired with EMV’s promise to reduce card fraud, provided the catalyst for financial institutions to reexamine their strategies to migrate to EMV technology. “We were surprised by the across-the-board embrace of EMV by debit issuers. There has been a dramatic shift from their tepid interest last year to active plans to implement EMV beginning in 2015,” said Tony Hayes, partner at Oliver Wyman. Issuers Focus on Growth Despite the security issues surrounding several high-profile data breaches, we saw growth in both consumer and business debit in 2013. Last year, active cardholders increased their usage of debit and increased transactions per active card to 20.1 per month from 19.4 a year earlier. Rewards programs also are rebounding and many financial institutions are moving to merchant offers. Almost half (47 percent) of issuers now offer debit rewards programs. Overall, the 2014 study shows that debit continues to grow, proving its resilience as a preferred method of payment, even after a turbulent year. To learn more, contact Mark Reda at 813-854-2210 or markreda@pulsenetwork.com.

Overall, the percentage of debit cards exposed in data breaches nearly tripled in 2013. Fourteen percent of all debit cards were exposed last year, compared to five percent in 2012.

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A Multi-Layered Approach to Keeping Your Merchant Processing Customers Secure Brady Hanna Executive Vice President of Financial Services BASYS Processing Inc. A CBA Endorsed Member Company As the number of credit card data breaches making the news continues to increase, it is important that community banks urge their business customers take a multi-layered approach to data security. While most of the credit card processing industry is solely focused on EMV implementation only, ignoring additional exposure points can leave a business vulnerable.

Businesses will greatly benefit by partnering with a bank or processor that is committed to a multi-layered and proactive approach in protecting their card data. To learn more, contact Brady Hanna at 913-660-6777 or bhanna@basyspro.com.

EMV, which stands for Europay, MasterCard, Visa, is a fraudreducing technology that can help protect your customers against losses from the use of counterfeit, lost or stolen credit cards at the point-of-sale. EMV credit cards are embedded with a computer (smart) chip which will store a customer’s credit card data. The EMV terminal will communicate with the chip inside the customer’s card to determine whether or not the card is authentic. Business owners are encouraged to update their credit card processing equipment to EMV-ready solutions by October 1, 2015. After this date, liability for counterfeit fraud associated with a card-present transaction can shift from the merchant to the issuing bank if the merchant is using an EMV-capable device. While EMV technology will protect a business’ credit card data against counterfeiting and use of lost or stolen cards at the point of sale, it is important for businesses to deploy additional layers of protection, prevention and detection. A first step to a multi-layered solution is to achieve the credit card industry’s annual PCI certification requirements. EMV will not replace PCI requirements and the annual required selfassessment questionnaire will continue to be a great risk tool to identify potential breach exposure. In addition to PCI Compliance, business owners need to protect card data while it is transmitted from the business site thru the various authorization channels as well as protect the data at rest, while stored in a database. These data security measures are equally important. By ensuring that the available credit card processing solution has the most up to date encryption and tokenization tools activated the business owner can add one more layer of data security to their system. Focusing on multiple points of entry will ensure the business owner be less vulnerable to a data breach. However, even with all of these safeguards in place, there is still a risk for data compromise. In order to be best prepared, Breach Insurance is recommended to assist with the financial responsibility of such an occurrence.

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401(k) DISCLOSURES

Are you ready to Make it Easy?

Join the CBA Easy(k) Make it Easy Plan

he CBA Easy(k) 401(k) Multiple Employer Plan is a unique program only available to CBA member banks that provides a highly competitive retirement plan for your employees with many advantages for your bank, including: n Outsourcing many of your fiduciary responsibilities & liability n Potential cost savings to your bank n Elimination of 5500 filings n Elimination of plan audit (for larger plans) n Oversight Committee made up of your CBA bank peers

Call Nathan White at 800-732-8601 or email nwhite@midwesternsecurities.com

www.midwesternsecurities.com Securities are: not insured by the FDIC; not a deposit or other obligation of, or guaranteed by, the depository institution; subject to investment risks, including possible loss of the principal amount invested. Securities, Insurance, and Investment Advisory Services are offered through Midwestern Securities Trading Company, LLC. Member FINRA/SIPC. MSTC and CBA are not affiliated.

Meet CBA's Endorsed Member Companies! Enhance your revenue. Improve your bottom line.

Each of the Endorsed Member Companies below has earned the seal of approval from the CBA Member Services Committee and CBA's Board of Directors. Most offer special pricing to CBA members. Explore the revenue-enhancement opportunities with these vendors and improve your bottom line! ACG | Refurbished ATMs/Currency Counting Phil Winn | phil@acg.us.com | (770) 442-9800

Investment Professionals, Inc. (IPI) | In-Bank Retail Investment Services Steven Ransdell| steven.ransdell@invpro.com| (501) 410-4445

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

Midwestern Securities Trading Company, LLC (MSTC) 401(k) Multiple Employer Plan (MEP) Nathan White | nwhite@midwesternsecurities.com | (800) 732-8601

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

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

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