Winter 2016 Georgia Communites First magazine by Community Bankers Association of Georgia

WINTER 2016

INSIDE

Official Publication of the Community Bankers Association of Georgia

• CBA GO Club! • 2016 Conventions - Orlando & Bermuda! • 2016 Education Preview • Salute to CBA Associate Members

Member:

financial services

the speed of life

04 : 47 : 00 PM I keep forgetting to pay my credit card bill.

04 : 49 : 00 PM I paid my credit card bill.

GEORGIA

Communities

INSIDE

WI N T E R 2 0 1 6 CBA STAFF Rob Braswell President & CEO rob@cbaofga.com Steven Rigdon Director of Legislative & Regulatory Affairs steven@cbaofga.com Lindsay Greene Vice President Marketing & Member Services lindsay@cbaofga.com Tony Moore Graphic Design Coordinator tony@cbaofga.com Brittany Locke Marketing & Member Services Assistant brittany@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 Tammy Maass CFO tammy@cbaofga.com Nick Wilborn Accounting/IT Coordinator nick@cbaofga.com

FIRST

FEATURES

2 3 5 6 8 10 12 14 19 22 25 27 29 31

Chicken or Pig? A Digital Danger

page 5 | CBA Day at the Capitol

CBA Day at the Capitol General Counsel Corner: Pledged Deposit Accounts: And you thought the UCC had you covered! Spring Luncheons and Golf Tournaments Leadership Division Convention & Mini-Trade Show Annual Meeting & Trade Show

page 10 | Leadership Division Convention & Mini-Trade Show

Educational Opportunities Women In Banking Seminar Thank You Associate Members Guest Article: TRID Implementation Guest Article: Loan Loss Levels Drop Guest Article: The Future Compliance Officer

page 12 | Annual Meeting & Trade Show

Guest Article: With rates on the rise, how good is your offense?

STAY 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

page 14 | Educational Opportunities

W in t e r 2 0 1 6 | 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

• Attend CBA’s Day at the Capitol on February 17th and let our State Senators and Representatives know of the positive impact your bank has on the community, the challenges it is facing, and the impact of any proposed state legislation on your institution. This is also a GO Club event!

2 | w w w .cbaof ga. com | Wi n t e r 2 0 1 6

ASSOCIA TIO

Lastly, we have made it easier than ever for you to transition from being “involved” to being fully “committed” via introduction of CBA’s GO Club. Just ensure your bank is represented at all five of the following 2016 offerings and your bank automatically becomes a member of the CBA GO Club and earns a complimentary registration for the 48th Annual Meeting & Trade Show, July 20-24, 2016 in Bermuda! • CBA Day at the Capitol – Wednesday, February 17th, Atlanta • Women in Banking Seminar - Thursday, March 10th, Macon • 8th Annual CBA Bank Directors’ & Executive Management Conference – Wednesday, March 23rd, The Cobb Energy Performing Arts Centre, Atlanta or 7th Annual CBA Georgia Bank Directors College – Monday, August 22nd, The Ritz-Carlton Lodge, Reynolds Plantation, Greensboro Attendees can pre-register to qualify. • A Spring Regional Luncheon (Hoschton, Macon or Albany) • 38th Annual Leadership Division Convention & Mini-Trade Show - Wednesday - Sunday, June 22nd – 26th, Disney's Contemporary Resort, Orlando, FL or three Community Bank Leadership Academy offerings (March, August or October 2016). Attendees can pre-register for August and October programs to qualify. Please know the CBA of GA remains committed to serving you and your bank’s needs. We look forward to working with you to make a substantial and positive impact in 2016! Best regards and Happy New Year!

• Write your congressmen or take a few minutes to sign a petition regarding key legislative issues that come up throughout the year.

ERS

To keep this pendulum swinging in our direction, I encourage you to be committed and:

Slowly but surely, the pendulum is starting to swing back in our direction as Congress begins to see and hear the devastating impact that regulatory burden is having on community banks – the economic engines of Main Street America. It is critical that we continue to press this point and get regulatory relief legislation passed. Just as you eat an apple one bite at a time, that will be the same method in which we receive regulatory relief; however, the aggregate impact can be substantial and powerful.

In fact, many of you may have already been contacted by a CBA board member inviting you to attend an event they felt warranted your consideration. Our directors are planning to reach out to you at least quarterly to ensure you are aware of the opportunities to have your voices heard by state and federal legislators and regulators, listen to insightful information on topical issues, and receive topflight education.

As we start 2016, I think it is important to ask ourselves if we are truly committed to preserving and enhancing community banking, or are we just involved? I was extremely pleased at October’s CBA Board of Directors Planning Session with the enthusiasm in which our board members committed themselves to being impactful in making a positive difference in our industry and the communities we serve.

• Attend the April 25th – 27th ICBA Washington Policy Summit with the CBA contingency. We will have a ½-day of interactive meetings with federal regulatory leaders and two days of individual meetings with Georgia’s two Senators and 14 Representatives. Our message really resonates when a member of Congress hears the challenges first-hand from a banker in their respective district. NI

Question: In a bacon-and-egg breakfast, what's the difference between the chicken and the pig? Answer: The chicken is involved, but the pig is committed!

Whenever I hear the term “commitment,” I naturally think about the old riddle about the chicken and the pig.

Rob Braswell President & CEO Community Bankers Association of Georgia

COM

Chicken or Pig?

FINER

POINTS

A Digital Danger Every industry and marketplace is facing some measure of paradigm-shaking digital disruption these days. Among the newest financial industry disruptors are online marketplace lenders, the deceptively benign name for potentially predatory nonbank lending platforms proliferating on the Internet. Many of these technology-based lenders are digitally slicked-up credit providers of least and last resort. None offer a glimmer of relationship banking whatsoever. For several reasons, ICBA is concerned about the risks these emerging credit providers could be spreading. Their risky, virtually unregulated and rapidly expanding lending is troubling—for borrowers, for our economy, for our financial system. Scions of Silicon Valley and Wall Street, online marketplace lenders are a creation of today’s teeming petri dish of socalled FinTech technology innovation. These nonbank firms rely on powerful Big Data software engines to mine the Internet for information that feeds black-box algorithms to justify their high-cost loans and nearly instantaneous credit approvals. Speed is their novelty and allure. For many consumers, the credit they offer is too easily obtained—and too easily misunderstood. Often targeting the most unsophisticated and desperate borrowers, online marketplace lenders offer caveat emptor credit that is unbridled by any mainstream regulatory oversight or constraints. Some solely serve consumers. Others cater exclusively to small businesses. Some specialize in payday, purchase-finance, education or merchant cashadvance financing. Virtually all are driven by Wall Street and hedge fund investors impatiently seeking the biggest, most immediate investment returns. A borrower’s ability to understand or repay these loans is the least motivation for these companies. Moreover, the inherent risks online marketplace lenders carry have an ominously familiar pattern. Higher defaults are hardwired into their assumptions. Their computergenerated lending typically involves little to no underwriting. No collateral is involved. The creatively disparate data these companies rely on have never before supported widespread credit decisions. Their obscure lending practices are untested by any reasonable measure of time or economic stress. And mirroring activities during the financial crisis, some marketplace lenders are aggressively offloading their loans into securitized investment vehicles on Wall Street.

Yet despite their troubling Related Reading characteristics, these lenders are proliferating Read last month’s Fine Points like digital dandelions. column “Wild, Wild Tech” Because of all of their real about FinTech firms, at dangers, ICBA is sounding www.independentbanker.org. a warning bell, and we may ask community bankers to help us in the future. In comment letters and industry forums, we have encouraged Treasury and other public officials to study the products, businesses practices and risks of these lenders. We are asking them to consider whatever regulations are necessary to protect consumers and our overall economy. Moreover, as an alternative to these lenders, we are also asking Treasury officials to work with ICBA to ease the considerable regulatory burdens of community banks that are discouraging their truly productive, responsible lending. Technology and innovation should bring progress and solve problems, not spread new dangers or harm. We still feel the recent pain brought by activities trumpeted as financial progress that soon became financial scourges. For our stillrecovering citizens, economy and country, ICBA emphatically says never again.

Cam Fine President & CEO Independent Community Bankers of America

W in t e r 2 0 1 6 | Ge o r g i a C o m m u n i t i es Fi r s t | 3

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

4 | w w w .cbaof ga. com | Wi n t e r 2 0 1 6

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

T NI

ERS

ASSOCIA TIO

O EO

COM

Mark Wednesday, February 17th on your calendar! At CBA’s Day at the Capitol, we’ll host an engaging and informative legislative briefing followed immediately by a cocktail and hors d’oeuvres reception to which legislators have been invited. The event is taking place at the Sloppy Floyd Building (across the corner from the Capitol) from 3:30 – 6:00 pm. In the Empire room beginning at 3:30, hear from CBA executives and general counsel Dan Brannan, Partner, James-Bates-Brannan-Groover, LLP (exclusive Day at the Capitol sponsor) regarding key legislation of interest to the community banking industry. Georgia Department of Banking & Finance Commissioner Kevin Hagler will also join us and provide industry insights. The networking reception will take place immediately following (beginning at approximately 4:30) in the same room. We look forward to seeing you and your colleagues there, so please mark your calendar! Registration is $45 for the first person from your bank/company and $35 for each additional person from your bank/company. To learn more and to register, visit www.cbaofga.com/dayat-the-capitol.html.

CBA’s 2016 Day at the Capitol - February 17, 2016

Thanks to Exclusive Sponsor

With a 360° perspective, our financial services team is with you every step of the way. More than 125 banks in the Southeast depend on Elliott Davis Decosimo for personal attention, industry experience and services, including external and internal audit, SEC reporting, M&A consulting, taxation and compliance. Our financial services practice is more than 100 professionals strong, with a 60-year reputation for helping banks operate stronger, wiser, better. Let us help you move forward.

Georgia

North Carolina

Ohio

South Carolina

Te n n e s s e e

Virginia

elliottdavis.com

W in t e r 2 0 1 6 | 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

J. William Boone partner

(404) 844-2766

bboone@jamesbatesllp.com

Doroteya N. Wozniak associate

(404) 997-6031

dwozniak@jamesbatesllp.com

Winter 2015

Pledged Deposit Accounts: And you thought the UCC had you covered! by J. William Boone and Doroteya N. Wozniak

Lenders are often faced with distressed borrowers who eventually decide their best course of action is to take the cleansing plunge into bankruptcy. In an effort to confirm its perfection and value of collateral, the lender more often than not initiates a belated review of the borrower’s file. The unfortunate part is that many lenders do not realize their security interests are unperfected until the bankruptcy trustee or creditors’ committee challenges the perfected status of their claim at which point it is too late to cure any deficiencies in the perfection. The common pitfall is that sometimes lenders rely solely on financing statements to perfect their security interests in deposit accounts held by other financial institutions. Generally, Bankruptcy Courts look to state law to determine if a lender’s lien in a deposit account has been properly perfected. Under Georgia law, a security interest in a bank account housed at the lender’s institution is perfected automatically by virtue of the lender being in control of the account; however, a security interest in a bank account housed by another institution must be perfected through the execution of a deposit account control agreement (“DACA”). In re Palisades at W. Paces Imaging Ctr., LLC, 501 B.R. 896, 911 (Bankr. N.D. Ga. 2013) (noting that “perfection in a deposit account can only be made by a deposit control agreement executed in accordance with O.C.G.A. §§ 11–9–104, 11–9–314”). The term “control” is a legal term of art and does not necessarily mean the secured party actually has such control or that it decides what payments the borrower can make from the account. Furthermore, a security interest in a deposit account is “perfected by control” under O.C.G.A. § 11-9-104 only while the secured party remains in control. Thus, the filing of a standard UCC financing statement will not be enough to perfect the lender’s interest in a deposit account held by another institution. As a result, the lender must be ever on alert to any indication the borrower may be syphoning off funds from the deposit accounts held by the lender to accounts held by a different financial institution resulting in the loss of “control” over the deposits. One way to reduce the risk of losing its perfection is for a lender to include in its credit agreements a requirement that the borrower maintains all of its deposit accounts within the lender’s financial institution and a failure to do so will constitute a default, thus triggering lender setoff rights under the credit agreement. Also, sometimes, even if a DACA is executed as part of the closing process, borrowers may restructure the deposit account and/or open other accounts which may be outside the scope of the DACA. To prevent such scenarios, the DACA must be routinely monitored to ensure that all intended deposit accounts are in fact covered. Lenders should also keep in mind that because any actions taken to correct deficiencies in perfection are subject to a possible challenge as an avoidable preference if the bankruptcy case is filed within ninety (90) days of such actions, the need of identifying deficiencies well in advance becomes that much more paramount. As such, a prudent lender should not wait until after a bankruptcy case is imminent or filed before the lender reviews the borrower’s file, but should ask counsel to undertake a due diligence review of the borrower’s file at the very first indication of possible borrower distress. This preventative maintenance exercise will more than pay for itself down the road and the lender will be very thankful it took this advance action. PRESENTED BY GEORGIA’S LAW FIRM:

“General Counsel Corner,” a recurring column featuring legal news and information of interest to CBA OFFICES 6 | w w w .cbaof ga. com | Wi nter 2016 members, is brought to you by James-Bates-Brannan-Groover-LLP. Visit us at GeorgiasLawFirm.com

MACON + ATLANTA

CBA’s Memorial Scholarship Applications Now Available! On behalf of the Community Bankers Association of Georgia (CBA), we are proud to announce the 2016 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, L MEMORIAHIP university or technical school (two year program or more) in the 2016 RS SCHOLA D fall semester. The scholarship is named after the late Jan Hester, daughN U F ter of Lalia and the late Julian Hester, long-time CEO of the CBA. The four winning recipients will be awarded a $1,000 scholarship.

6 1 0 2

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 applications, and encourage students and full-time employee students to apply! Applications should be returned to your bank no later than Friday, April 8, 2016. All completed applications should be submitted to CBA no later than Friday, April 15, 2016. Only complete applications will be accepted. A panel of independent judges will review the applications and winners will be announced in May 2016. For more information on either of these scholarships, contact Tony Moore at CBA by tony@ cbaofga.com or (770)-541-4490. CBA’s Leadership Division proudly assists with the scholarship initiative.

2016 Legislative Session Underway! The 2016 Session of the Georgia General Assembly opened on January 11th and CBA is your source for all state legislation impacting the community banking industry. Each Friday during the session, CBA provides members with a Legislative Update on bills being tracked regarding banking laws. Contact CBA Director of Legislative & Regulatory Affairs Steven Rigdon with any concerns or questions about an issue you would like to see addressed. You can reach Steven at steven@cbaofga.com or (770) 541-4490. 2016 Legislative Updates sponsored by

2015 Scholarship Winners

2016 Banker Regulatory Forum Dates Sponsored by

The goal of the Banker Regulatory Forum is to establish and maintain a dialogue with state and federal regulators/agencies regarding their policies, procedures and objectives. It also serves as a clearing house for CBA member concerns. Attendance at the meeting is free for CBA Members and lunch is included. Thursday, February 4 – Idle Hour Country Club, Macon Thursday, May 5 – CBA Headquarters, Atlanta Thursday, August 4 – Idle Hour Country Club, Macon Thursday, November 3 – CBA Headquarters, Atlanta

W in t e r 2 0 1 6 | Ge o r g i a C o m m u n i t i es Fi r s t | 7

SPRING REGIONAL LUNCHEON MEETINGS

7th Annual

& PAC/PR GOLF TOURNAMENTS March & April 2016

ERS

ASSOCIA TIO

G IA

COM

These meetings are a fantastic way to learn about current legislative issues, industry trends and various hot topics. There will be ample time for networking and making new connections as well as catching up with friends. We’re excited to announce presentations from: Bob Koncerak, President, Cold River Land, Alpharetta - “Avoiding Collateral Damage – Things We Have Learned” More information on the second speaker coming soon. New in 2016, we’re adding a bit of comic relief to the agenda. You don’t want to miss hearing recently retired Georgia community banker and long-time friend of CBA, Neil Joiner, recount some of his hilarious tales from his life and career – “I’m Coming Clean – Neil Joiner Tells All!” 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. Monday, March 28, Idle Hour Country Club, Macon – With Golf & Dinner Wednesday, April 13, Reunion Golf & Country Club, Hoschton – With Golf & Dinner Wednesday, April 20, Doublegate Country Club, Albany – With Golf & Dinner Registration is open! Be on the lookout for more information to arrive at your office in the next few weeks. For golf tournament sponsorship opportunities, contact Lindsay Greene at 770-541-0376. For general information, contact Peake Wilson at 770-541-0379.

Hoschton Macon Regional Albany 2016 Spring Luncheon Meetings & PAC/PR Golf Tournaments Scheduled!

Spring Regional Luncheon Sponsor

Have you ordered your copy of the 2015 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. 8 | w w w .cbaof ga. com | Wi n t e r 2 0 1 6

2016 Semiannual PAC/PR Clay Shoot

Helping Georgia Community Banks Stay on Target! The Spring Clay Shoot is scheduled for Thursday, March 24, 2016, at Wynfield Plantation in Albany. Come out and join your colleagues and peers for a fun spring day of clay shooting and networking – all for a great cause! Proceeds benefit CBA’s PAC & PR Funds and, as you know, the CBA of Georgia maintains the only state PAC working exclusively for Georgia’s community banks. Now more than ever, it is imperative we have a strong voice at the State Capitol. Your participation, whether you shoot or sponsor, will help the community banking industry continue to thrive in our state.

Registration is now open. Register today!

Thanks to our Sponsors!!

Registration Fees (all packages include lunch and cash prizes): $135 per shooter (morning or afternoon flight) $500 per team of four at registration (morning or afternoon flight) Overall Highest Scoring Team will be awarded $400; Second Highest Scoring Team will be awarded $200. We encourage you to invite your clients and potential clients to join in the fun and register a team of four.

Premier Sponsor

12-Gauge Sponsor

Sponsorships Available!

Contact Lindsay Greene at lindsay@cbaofga.com for sponsorship information.

“The banking industry continues to deal with challenges on issues that will have a profound effect on how we do business as community banks in the future. The Community Bankers Association of Georgia’s Political Action Committee (CBA PAC) is a vital tool for educating members of the Georgia Legislature about the issues and concerns of the state’s community banking industry. The PAC/PR funds help CBA educate policymakers, promote our advocacy efforts and support those members of the Georgia Legislature who know the importance of maintaining a robust and healthy financial industry.” - Jason D. Rooks, Vice President-Commercial Lending, Flint Community Bank, Albany; CBA Leadership Division 1st Vice Chairman

Community Bank Leadership Academy 2016 Sessions Have Been Scheduled!

Quarter 1 Wednesday, March 16, Idle Hour Country Club, Macon Will feature Philip Smith - Gerrish McCreary Smith P.C. and Stephen Nikitas - Harland Clarke Quarter 2 38th Annual Leadership Division Convention & Mini-Trade Show (see page 10 for more information) Quarter 3 Wednesday, August 17, Idle Hour Country Club, Macon Will feature Dianne Barton, Performance Solutions and Patrick Dix, SHAZAM Quarter 4 Wednesday, October 19, Idle Hour Country Club, Macon More information coming soon.

G IA

COM

R S A S S O C I AT

BENEFITS OF PARTICIPATION IN CBLA E NK

• Gain knowledge to enhance your leadership skills and strategic thinking to prepare you for your next leadership role • Learn from local and national industry instructors, coaches, mentors and peers • Stay abreast of industry hot topics • Network with other community bank leaders • Receive CPE/CLE Credits upon request • Understand the importance of succession planning, and • Much more! W in t e r 2 0 1 6 | Ge o r g i a C o m m u n i t i es Fi r s t | 9

ERS

ASSOCIA TIO

O EO

G IA

COM

38th Annual Leadership Division Convention & Mini-Trade Show

Mark Your Calendar for CBA's 2016 Conventions!

CBA's Leadership Division will be in Orlando Wednesday - Sunday, June 22 - 26, 2016 at Disney's Contemporary Resort. The convention will include the popular Mini-Trade Show, dynamic speakers, Disney character appearances, family banquet and much more!

Emcee DAVID PETERSON, Chief Strategic Officer, i7strategies, Hahira Once again, we are pleased to have David join us and emcee our Convention. A dynamic and engaging presenter, David has led dozens of strategic planning sessions and workshops for both banks and service providers. He has been a featured keynote speaker for numerous associations, banking schools and industry trade groups, including ICBA, NACHA, BAI, FDIC and the Federal Reserve Bank as well as numerous state and regional electronic payments organizations across the country. He has also emcee'd numerous conferences for organizations such as Goldleaf Technologies, GACHA, and Q2. His extemporaneous style creates an environment where the program moves smoothly with a relaxed, fun atmosphere. Friday Keynote MICHAEL BROOME is a poignant and humorous speaker focusing on attitude, service, teamwork and leadership. Since 1979 he has addressed over 3,000 audiences throughout the world. His passion is to inspire people to maximize their potential, be servant/ leaders, and achieve a life balance. Through the years Michael has been guided by the words of a mentor who advised, “If your philosophy of success doesn’t work in your life, don’t export it.” Most audiences sense whether the speaker walks the talk. Michael only advocates principles that he believes and practices. Even his staff will testify that he genuinely practices what he preaches… most of the time. Though he advocates optimism, Michael does not believe everything is always “GREAT!” Life can be difficult. He acknowledges problems, challenges his audiences, and offers realistic strategies. He says, “Attitude is not everything. Attitude and competence is everything.” He emphasizes the need for tenacity and continued learning, especially during economic

1 0 | w w w . cbaof ga. com |Wi n t e r 2 0 1 6

trials. To those willing to trudge the extra mile, history shouts, “This too shall pass!” In his book, Be a Liver of Life, Not a Gallbladder, he sums up his philosophy, “Wealth has certainly created more happiness than poverty, but the greatest success is when our life overflows with things that money cannot buy.” Saturday Keynote COACH BILL CURRY, former NFL and NCAA Football Coach and former ESPN Sports Analyst Bill Curry has spent his entire adult life as a leader and communicator. His NFL career included two Super Bowl titles and a stint as the President of the NFL Players Association. Bill served as head football coach for Georgia Tech (’80-’86), the University of Alabama (’87-’89), and the University of Kentucky (’90-’96). In 1989, Bill was recognized as the nation’s top coach with the Bobby Dodd National Coach of the Year Award. From 1997 to 2008, Bill came into millions of homes each football Saturday as an analyst for ESPN. In September 2006, the American Football Coaches Association announced Bill as the recipient of the 2007 Amos Alonzo Stagg Award in honor of his outstanding service toward the advancement of the best interests of football. In June 2008, Bill was selected to be the inaugural head coach of Georgia State University’s new football program. Bill’s book – “Ten Men You Meet in the Huddle” – was released in August 2008 by ESPN Books and was praised by author Pat Conroy as “the best book about the NFL” that he ever read. In March 2013, Bill joined former player Pete Wellborn and communications expert Jeff Battcher to form Curry, Wellborn & Battcher, LLC, a company offering leadership and success training and sports-related crisis communications services.

Leadership Division Convention Agenda at a Glance

Friday Morning Saturday Morning Wednesday Afternoon & Evening 5k & Fun Run – ON A NEW DAY Continental Breakfast with Hot Item Convention Registration Exhibitor Set-Up General Session Leadership Division Board of Directors Hot Breakfast Buffet with Exhibitors 7-Minute Spotlight Meeting & Dinner (by Invitation Only) General Session Saturday Keynote Address – Coach Thursday Afternoon & Evening Mini-Trade Show & Networking Break Bill Curry Convention Registration Friday Keynote Address – Michael Convention Adjourn – Afternoon & Exhibitor Set-Up Broome Evening Free Opening Reception Friday Afternoon Sunday Chairman’s Family Buffet Dinner Afternoon & Evening Free Departures Family-Friendly Entertainment Disney's Contemporary Resort Info: PRICING: For single/double occupancy - $250 per night. There is a $25 per person, per night First Attendee: $495* fee for additional occupants (18+). All rates are taxable. The deadline to receive the Exhibitor: $1195* discounted rate is Monday, May 23, 2016. For reservations, contact Group Reserva(includes Mini-Trade Show and all Convention tions at (407) 939-4686 and mention “CBA Annual Leadership Division Convention” Functions) to receive the group rate. Each Additional Attendee from same Bank/ Disney Theme Park Information & Tickets: Company: $425* For CBA-specific Disney offers and information, visit http://www.mydisneymeetings.com/communitybankers16 For Theme Park Ticket information, visit http:// Spouse: $75 disneyurl.com/cba16 Children 17 and under are FREE! *Non CBA Members, add $200 to each registration. Adult Children 18+, Family Member & Guest: **This fee applies to children 18 and over and additional family members/guests $100 each** joining you for any function; any representative employed by your bank/company PAC/PR Run: $20 in advance; $25 onsite will be billed as an Additional Attendee and not as a Guest.

Wishing you and your employees good health & success in 2016!

Todd Gordon 770.858.4801 Todd.Gordon@cbiz.com

GROUP HEALTH & WELFARE HEALTH CARE REFORM BANK INSURANCE SERVICES

W in t e r 2 0 1 6 | Ge o r g i a C o mm u n i t i es Fi r s t | 11

48th Annual Meeting & Trade Show Join CBA and your peers at the 48th Annual Meeting & Trade Show July 20 - 24, 2016 at the Fairmont Southampton. Bermuda is the Atlantic's most charming island and just a short flight from Georgia. The Fairmont Southampton is perched on Bermuda's stunning south shore with miles of pink sand beaches. Don't forget - a passport is required. Emcee

KEVIN MOLAND, Director of Product Management for the Enterprise Payment Solutions division of Jack Henry and Associates At Jack Henry, Kevin brings to bear three decades of experience designing online and mobile financial solutions. Since joining the financial software industry in the early 1990’s, Kevin has been a key player in the digital services revolution, providing product direction and design oversight for some of the nation’s premier online banking and commercial payments vendors. Kevin is also a featured speaker at conferences, seminars and user group meetings, where he provides educational content and motivational messages. Kevin’s informal style, engaging wit and keen story-telling skills make him a fabulous choice for this year’s Annual Meeting Emcee.

TWO NEW BONUS FEATURES

In addition to the traditional networking fun, general sessions covering timely topics and inspirational keynote addresses, we are thrilled to offer two new bonus features in 2016! On Friday morning, we’ll host a Bankers’ Peer Group Meeting moderated by Dianne Barton, Founder & President, Performance Solutions, Kennesaw. Dianne has taught many schools and seminars for CBA and other associations and brings with her a wealth of industry knowledge and experience. Performance Solutions is a training and consulting company that specializes in providing solutions to the key challenges facing community banks today in attracting and servicing their customers. Before starting Performance Solutions in 1983, Dianne held senior positions with Bank South Corporation, the Internal Revenue Service, and the John H. Harland Company, where she introduced the highly acclaimed Officer Call Program. Her expertise in customer service, leadership and sales and service culture development is recognized as leading edge by both national banks and community banks.

1 2 | w w w . cbaof ga. com |Wi n t e r 2 0 1 6

On Saturday morning, CBA will host a Bank Director Break-Out Session moderated by Philip Smith, President, Gerrish McCreary Smith Consultants and Attorneys, Memphis, TN. Philip has taught and/or facilitated numerous Bank Director sessions for CBA and we are thrilled to have him join us for this first-ever Bank Director Break-Out Session. Philip is the President and a member of the Board of Directors of the Memphis-based law firm of Gerrish McCreary Smith, PC, and its affiliated bank consulting firm, Gerrish McCreary Smith Consultants, LLC. His legal and consulting practice places special emphasis on bank mergers and acquisitions, financial analysis, acquisition and ownership planning for boards of directors, strategic planning for boards of directors, regulatory matters, bank holding company formations and use, securities law concerns, new bank formations, S-corporations, going private transactions, trust preferred securities and other matters of importance to banks. Philip is the author of a monthly electronic newsletter, The Chairman’s Forum Newsletter, which discusses key topics impacting financial institutions. He is a Summa Cum Laude graduate of the Barret School of Banking where he has been a member of the faculty. He has also served as a member of the faculty of the Pacific Coast Banking School, the Colorado Graduate School of Banking, the Southwestern Graduate School of Banking and the Wisconsin Graduate School of Banking. Philip will also be a general session presenter at this Convention.

48th Annual Meeting & Trade Show Agenda at a Glance Wednesday Afternoon & Evening Convention Registration Board of Directors Meeting & Dinner (by Invitation Only) Thursday Afternoon & Evening Convention Registration Exhibitor Set-Up Opening Reception & Dine-Around Friday Continental Breakfast with Hot Item General Session Bankers’ Peer Group Meeting 7-Minute Spotlight Friday Keynote Address Golf Tournament Afternoon & Evening Free Saturday Hot Breakfast Buffet Bank Directors’ Break-Out Session General Session Spouse Program 7-Minute Spotlight Saturday Keynote Address Afternoon Free Chairman’s Reception & Dinner Entertainment Sunday Departures

PRICING:

First Attendee: $795* Exhibitor: $1195* (includes Trade Show and all Convention Functions) Each Additional Attendee from same Bank/Company: $695* Spouse: $200 Children 17 and under attending Thursday Night and Saturday Night: $75 each Adult Children 18+, Family Member & Guest attending Thursday Night and Saturday Night: $150 each** Flight information for Bermuda will be available soon, be on the lookout! And, don't forget to update your passport! Fairmont Southampton Resort Info:

For single/double occupancy - $309 per night for a standard room; other rates are available for various room types - please call CBA for more information. There is an additional fee for third and fourth occupants 19 years of age and older. Maximum occupancy is four (4) persons per room. *All reservations are subject to a mandatory resort levy of $12 per person, per night and a mandatory per person, per night gratuity (varies by room type)*. All rates are taxable. The deadline to receive this discounted rate is Sunday, June 19, 2016. For reservations, contact the Global Reservations Center at (800) 441-1414 and mention "Community Bankers Association of Georgia" to receive the group rate. (*Resort levy and gratuity may be higher based on the room type you reserve, and both are subject to change without notice.) The preliminary brochure has been mailed, but more information is on its way! We are working 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 – lindsay@cbaofga.com or (770) 541-0376. For all other inquiries, please contact Peake Wilson – peake@cbaofga.com or (770) 541-0379. We can't wait to see you! *Non CBA Members, add $200 to each registration. **This fee covers only the two evening meal functions noted. Children, family members and guests attending any other function of the convention will be billed as an Additional Attendee.

Target Your Audience!

Make the connection with advertising and sponsorships from CBA! With a wide variety of creative opportunities to promote your company’s products and services, you are certain to reach your target audience in the most costeffective way. Customize your own advertising and sponsorship package for 2016. CBA has flexible options at a variety of price points. Consider gaining exposure through education events, networking, as well as print and digital marketing. Don’t miss out! For more information, call Lindsay Greene at (770) 541-0376 or email lindsay@cbaofga.com.

W in t e r 2 0 1 6 | Ge o r g i a C o mm u n i t i es Fi r s t | 13

2016 CBA WEBINARS Affordable, Professional Training, When and Where You Choose!

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 longterm, 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,

JANUARY 2016 New Unauthorized ACH Rules: Impact on Return Rates & Fee Threshold

Record Retention & Destruction Rules: Electronic & Paper

20 21

9 10

Avoiding Compliance Violations in Advertising Debt Collection Series: The Essentials of Collection Law Cyber Series: Maximizing Cyber Security Soundness & Minimizing Incidents IRA & HSA Update & Review 2016

Completing the CTR Line-by-Line

Director Series: Managing Reports to the Board: Requirements, Timing, Delivery Options, Risks & Concerns*

FEBRUARY 2016

Denied Loan Requirements: Consumer, Commercial & Real Estate Dealing with ACH Tax Refunds: Exceptions, Posting & Liabilities

Medallion & Signature Guarantee Rules & Risks Special Edition: Handling Debit Card Chargebacks

MARCH 2016

Director Series: What Directors Should Know About CECL, ALLL & New Credit Impairment Standards

14 Audit Compliance

Audit Compliance Series: Overseeing Bank Performance: The Role of Audit

Call Report Series: 2016 Call Report Update & Revisions

Understanding Personal Account Ownership & FDIC Rules

Series: Auditing for TRID Compliance

MARCH 2016

Telephone Consumer Protection Act: What You Need to Know About the New Requirements

How to Complete & File UCC-1 Financing Statements

Required Compliance for Commercial Loans Secured by Real Estate

1 4 | w w w . cbaof ga. com |Wi n t e r 2 0 1 6

SBA Lending Update: Regulations, Trends & Overview of SBA One

HVCRE Appraisal Review: Issues & Case Studies

Determining Cash Flow from Personal Tax Returns Part 1: Schedules A,B,C & D

Post EMV Card Liability Shift: Managing & Mitigating Card-Not-Present Fraud

New Compliance Officer Boot Camp

HR Series: Managing & Administering Employee Compensation & Benefit Programs

Register today for a webinar training option that best meets your training needs! For the most current listing of webinars, visit www.cbaofga.com.

Adjustable Rate Mortgage (ARM) Rule Changes Effective April 1 Demystifying Rules for TRID Tolerances

FEBRUARY 2016

• 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!

Quarterly Emerging Leader Series: Developing Executive Presence Skills: Presentations, Poise & Professionalism Determining Cash Flow from Personal Tax Returns Part 2: Schedules E & F Flood Insurance Compliance Update & FAQ's Cyber Series: Outsourcing Tech Services: Regulations, Examiner Expectations & Actions for Vendor Management Developing Your Same-Day ACH Game Plan Debt Collection Series: Your Customer Has Filed Bankruptcy. Now What?

MARCH 2016

Hot Topics in Social Media Strategies: Techniques & Trends for Community Banks

APRIL 2016

28 Regulator Expectations for Risk Assessment: Policies, Procedures & Steps in Obtaining Board Approval

APRIL 2016

Managing IRA Beneficiary Designations & Distributions

Completing the SAR Line-by-Line

Audit Compliance Series: Auditing Basel lll & the New Capital Planning Guidelines

Conducting the Annual Physical Security Review

Leader Series: Effective Branch Administration Monitoring

Risk Considerations in Agricultural Lending

13 ACH Rules Update 2016

11 Fee Income Strategies 2016: Challenges, Issues & a Look Ahead

12 Regulator Issues for

14 Your Depositor Has

the Credit Analyst

Died: Actions to Take, Mistakes to Avoid

17 Director Series:

19 Special Edition:

New Federal Regulations Targeting Student Accounts, Including Debit & Prepaid Cards: Effective July 1, 2016

20 HR Series: Managing

Absenteeism & Leaves of Absence

21 Effective Management

26 Call Report Series:

MAY 2016

Loan Participation Due Diligence: Practices, Documentation, Servicing & Risks

10 Quarterly Emerging

12 The Top 10 Credit

of Credit Report Disputes

Examining Bank Assets, Liabilities & Income in Call Report Preparation

Strategies for Remaining Independent: Alternatives to Selling*

18 Managing the Force- Placed Insurance Process

19 Wire Transfer

Compliance, Including International Remittances

24 Audit Compliance

Series: Developing Quality & Efficiency in Your IT Audit

Note: Dates/Topics subject to change.

MAY 2016

25 Debt Collection Series: Real Estate Loan Workouts, Deeds in Lieu, Short Sales, Foreclosures, Deficiency Judgements & Receiverships

6 7

JULY 2016

Audit Compliance Series: Auditing for BSA Compliance

Bank Financial Accounting Essentials

Complying with Final Military Lending Act Rules Changes Effective October 3, 2016

14 Director Series:

Understanding & Managing the CFPB Complaint Process

Board Oversight & Responsibility for ACH Risk*

JUNE 2016

Escrow Accounts for Overages, Deficiencies & Delinquencies

20 Countdown to

Health Savings Accounts: Basics, Rules, Reporting, Tax Consequences & Health Care Reform Considerations

Same-Day ACH: Deadline September 23, 2016

Advanced Collection Concepts, Compliance & Risks

26 Understanding

Letters of Credit: Rules Responsibilities & Liabilities

Commercial Appraisal Review: Income & Sales Comparison Approach

27 Risks & Precautions

ACH Rules for Deceased Accountholders & Federal Government Payments

28 Commercial Credit

Loan Servicing Risks, Controls & Common Pitfalls

Grading: Methodology, Risk & Examiner Issues

Regulator Guidance of HVCRE: Issues, FAQs & Clarification of Basel lll Standards Call Report Series: Preparing Call Report Basic Lending Schedules: Coding, Classifications & Loan Loss Allowance

Attracting & Retaining Key Management Treasury Services: New Delivery & Service Models for Cash Management

15 Errors to Avoid When Conducting Internal Investigations

E-Mail Risks, Rules, Records & Regulations

Legally Handling ATM & Debit Card Claims Under Regulation E

11 HR Series:

Performance Management: Developing Future Leaders

17 Call Report Series:

Understanding Call Report Regulatory Capital: Standards, Ratios, Risk Weighting

18 The Application

Process for the New Mortgage Lender: Mortgage Application 1003 Line-by-Line

Essential Compliance Regulations for Deposit Operations

Protecting the SBA Guaranty Start to Finish

13 Indirect Lending:

Debt Collection Series: Best Practices for Garnishments & Levies: Getting It Right!

Complying with Complex Call Report Lending Schedule Preparation

18 HR Series: Essential HR

Concerns in a Rising Interest Rate Market Title Insurance Policies, Commitments & ALTA Endorsements

Cyber Series: Mobile Remote Deposit Strategies: Technology, Deployment Models & Risks

26 Opening

Navigating Compliance Issues for Promotions, Bonuses, Contests & Sweepstakes

27 Debt Collection Series:

Trust Accounts: Documentation, Signatories & FDIC Insurance Coverage

Top 10 IRA Issues: Compliance, Reporting, Death & Distributions

DECEMBER 2016

The CFPB's Four D's of Fair Lending: Deceptive Marketing Debt Traps, Dead Ends & Discrimination

HR Series: Rewarding & Retaining the Best Employees

Call Report Series: Improving the Call Reporting Process: Documentation, Efficiency, Accuracy, Common Errors & FAQs

Powers-of-Attorney In-Depth: Good Faith, Fraud & Fiduciary Capacity

Cyber Series: Meeting Federal Requirements for Tech-Based Marketing: Websites, Social Media, Robo Calls & More

Loan Review: Consumer, Commercial & Real Estate

Branch Transformation: Strategies for Moving from Transaction Centers to Customer Engagement Centers

The Growing Scope of Vendor Management: Business Continuity, Cyber Security, Contract Negotiation & More

Essential Compliance Training for the Board & Senior Management

NOVEMBER 2016

Cyber Series: Customer Authentication & Validation: The New Normal in Risk Mitigation

Writing Effective Credit Memos & Loan Narratives

ACH for the Frontline

MSB Due Diligence & Monitoring for Community Banks

Notary Essentials & Legalities for Community Banks

Director Series: Director & Officer Liability: Rules, Risks & Trends*

Audit Compliance Series: Developing a Risk-Based Compliance Audit Process for Deposits

Clarifying Signature Card Confusion for Personal & Business Accounts: Compliance, Account Titling & Ownership

Maximizing Recoveries on Charged-Off Loans

Annual Robbery Training for All Staff: Meeting Your Bank Protection Act Requirements

20 Understanding

Handling Dormant Accounts, Unclaimed Property & Escheatment

19 Liquidity Funding

Essential Compliance Requirements for Lenders

Handling ACH Exceptions & Returns: Unauthorized, Revoked, or Stop Payment?

Recordkeeping from Hiring to Firing

to Build a "Social Selling" Culture

Rules, Rewards, Risks

27 Maximizing LinkedIn

NOVEMBER 2016

Avoiding the Top 10 Legal & Compliance Mistakes in the E-Statement Process

12 Call Report Series:

Consumer Loan Documentation

16 Essential Compliance Regulations for the Frontline

OCTOBER 2016

IRA Conversions & Recharacterizations: Understanding Requirements & Avoiding Errors

AUGUST 2016

Quarterly Emerging Leader Series: Establishing New Product & Service Controls

SEPTEMBER 2016

for Endorsements & Other Negotiable Instruments

HR Series: Compliance & Legal Issues in Employee Screening Pre & Post Hire

JULY 2016

21 Debt Collection Series:

Cyber Series: FFIEC Cyber Security Risk Assessments: Recent Findings & Recommended Actions

Understanding FCRA Permissible Purposes in Obtaining Credit Reports

19 Analyzing & Managing

Business Accounts: Who is Authorized to Open, Close, Transact?

Skills & Tools for Improving Teller Performance

AUGUST 2016

Privacy Notice Compliance: Content & Delivery

Quarterly Emerging Leader Series: FFIEC Reporting & Guidance for CRA Compliance

15 Director Series: What the Board Needs to Know to Manage IT*

16 Appraisal & Evaluation

Guidance on Collateral Valuation: Lender & Board Perspectives

Recognizing & Responding to Elder Fraud: What every Staff Member Should Know

* Director Series webinars are scheduled from 10:00-11:30 AM Central Time. To learn more or to register, visit www.cbaofga.com or contact Jodi Swilley at Jodi@ cbaofga.com or 770-5414492.

W in t e r 2 0 1 6 | Ge o r g i a C o mm u n i t i es Fi r s t | 15

2016 CBA Bank Director Training Opportunities

ERS

ASSOCIA TIO

O F IA

COM

8th Annual CBA Bank Directors’ & Executive Management Conference Wednesday, March 23, 2016 The Cobb Energy Performing Arts Centre, Atlanta

CLASSROOM

48th Annual Meeting & Trade Show Wednesday-Sunday, July 20-24, 2016 Fairmont Southampton Resort, Bermuda BA

ERS

ASSOCIA TIO

COM

7th Annual CBA Georgia Bank Directors’ College Monday, August 22, 2016 The Ritz-Carlton Lodge, Reynolds Plantation, Greensboro

WEBINAR SERIES FOR BANK DIRECTORS

(Attend the Live webinar or purchase the web link. Purchase all six webinars and get one free!) Date

Topic

1/28

“Managing Reports to the Board: Requirements, Timing, Delivery Options, Risks & Concerns”

3/8

“What Directors Should Know About CECL, ALLL & New Credit Impairment Standards”

5/17

“Strategies for Remaining Independent: Alternatives to Selling”

7/14

"Board Oversight & Responsibility for ACH Risk”

9/22

“Director & Officer Liability: Rules, Risks & Trends”

11/15 “What the Board Needs to Know to Manage Information Technology”

To learn more about these programs, visit www.cbaofga.com or contact the CBA. 1 6 | w w w . cbaof ga. com |Wi n t e r 2 0 1 6

ERS

ASSOCIA TIO

EO IA

COM

“FACING REALITY”

As we begin to put more distance between our organizations and the past financial crisis, it is time that we all face and deal with reality. That means appropriately planning for where we are now and where we are going to be in the future, looking at past mistakes and improving upon those in the future, dealing with the current acquisition market whether we want to sell our organization or remain independent, and dealing with a host of other new risk-oriented facts. In this year's 8th Annual Bank Directors' and Executive Management Conference, national and local industry experts will touch on those and related issues and provide critically important information for officers, directors and other members of senior management. In today's environment, more than ever, a well-trained bank board and management team is one way to ensure a bank's success. The CBA and Gerrish McCreary Smith have been leaders in bank director and executive management training for decades. We invite you to make plans now to join us on March 23rd. This one-of-a-kind event will provide you with proven strategies and ideas for you to consider as you plan for 2016 and beyond. Plus, you will have an opportunity to network with other bank directors from community banks located all across Georgia. The Community Bankers Association of Georgia (CBA) is pleased to partner once again with Philip Smith, President, Gerrish McCreary Smith, PC, and its affiliated bank consulting firm, Gerrish McCreary Smith Consultants, LLC, Memphis, TN, to offer the 8th Annual Bank Directors' & Executive Management Conference designed specifically for Georgia Community Bank Directors and Executive Management. To learn more and to register visit www.cbaofga.com or contact the CBA. We look forward to seeing you on March 23rd in Atlanta. TOPICS TO BE COVERED • “Facing Old Realities: What We Should Have Done” • “Risk Management & the Committee Process - What Directors Need to Know” • “Regulatory Update: "A Conversation with Commissioner Hagler”

• “Utilizing Data for Compliant Real Estate Evaluations While Growing Your Loan Portfolio” • “Community Bank Independence: A How-To Guide” • “Facing New Realities: Dealing With the M&A Market” • And, Much Much More!!

Meet the Speakers:

Philip K. Smith President Gerrish McCreary Smith Consultants and Attorneys Memphis, TN

Karl Nelson CEO, KPN Consulting, Atlanta

Kevin Hagler Commissioner, Georgia Department of Banking and Finance, Atlanta

SCHEDULE 7:30 a.m. Registration/Continental Breakfast 8:00 a.m. Program 11:30 a.m. Lunch 12:30 p.m. Program 4:00 p.m. Adjourn (Dinner at Your Leisure) THANK YOU TO OUR SPONSORS!

Jimmy Sawyers Co-Founder, Sawyers & Jacobs Collierville, TN

David Kemp President, Bankers Management, Inc. McDonough

Lunch Sponsor Afternoon Break

SPONSORSHIPS STILL AVAILABLE!

• Continental Breakfast: $700 (includes one registration) • Morning Break - $350 To become a sponsor, contact Lindsay Greene at the CBA.

Greyson Tuck Attorney, Gerrish McCreary Smith, PC, Attorneys and Gerrish McCreary Smith Consultants, LLC, Memphis, TN

WHO SHOULD ATTEND Bank Directors, Presidents & CEOs, Chief Financial Officers, Chief Lending Officers, Human Resource Officers, Risk Managers and Bank Counsel. Any member of the bank's executive management team and Board of Directors will benefit from this conference.

TESTIMONIALS “The conference was “spot on” in addressing real issues faced by community banks in our present regulatory and compliance environment.”

Name Badges

Jason Pruitt Enterprise Solutions Specialist, CRS Data, Woodstock

Scenes from the 2015 Bank Directors’ & Executive Management Conference

Sam Beall, Bank of Dudley

“Relevant and informative.”

Angela Holguin, Holguin Consulting, Inc., Peachtree City

“Great overview of current issues affecting banks.” Ron Quinn, Peach State Bank & Trust, Gainesville

W in t e r 2 0 1 6 | Ge o r g i a C o mm u n i t i es Fi r s t | 17

ATTENTION LENDERS: MAKE PLANS TODAY TO ATTEND CLASSES AND SCHOOLS DESIGNED SPECIFICALLY FOR COMMUNITY BANK LENDERS!

CPE Credits Available

Plans are well underway for the 2016 CBA University lending training programs. These programs have been designed to train lenders on how to develop and enhance the skills necessary to successfully administer quality consumer, commercial and mortgage loans in today's community bank. Below are just a few of the lending training programs being offered February - April 2016. The CBA University also offers a variety of lending topics via the CBA Webinar Program. We invite you to make plans today to join us for one or all of these lending training opportunities. To learn more and to register, visit www.cbaofga.com or contact Jodi Swilley, CBA Director of Education & Professional Development at jodi@cbaofga.com or 770-541-4492.

January - April 2016 CBA Training Opportunities for Lenders

Consumer Lending School

Commercial Real Estate (CRE) Appraisals: Reviewing & Interpreting

Monday - Friday, February 29 - March 4, 2016 Julian Hester Training Center at CBA Headquarters, Atlanta

Wednesday, February 24, 2016 • The Brickyard Club, Macon

Inaugural Mortgage Lending School

Home Mortgage Disclosures Act (HMDA) Tuesday, April 12, 2016 Idle Hour Country Club, Macon

Monday-Wednesday, March 29 - 31, 2016 Julian Hester Training Center at CBA Headquarters, Atlanta

CBA 2016 Compliance Program ...your next strategic move.

Commercial Lending School

Compliance Program I: Complying with Mortgage Integrated Disclosures Held in Five Cities:

4/13– Macon; 4/14 - Savannah; 4/19 – Tifton; 4/20 –Duluth; 4/21 Rome

MEMBERSHIP NOW OP EN!

1 8 | w w w . cbaof ga. com |Wi n t e r 2 0 1 6

April 25 - 29, 2016 at CBA Headquarters, Atlanta

3rd annual

womenin banking seminar Thursday, March 10, 2016 Idle Hour Country Club Macon, GA

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

Cathy Adams

Jodie Charlop

Executive Vice President and Chief Operations Officer Federal Home Loan Bank of Atlanta

Executive Coach & Founding Partner Exceleration Partners

Topic: By the Numbers: Essential Resilience Cathy oversees Information Technology, Human Resources, Financial Operations Management, Property Management and Staff Services functions for the Federal Home Loan Bank of Atlanta. She joined the bank in 1986, and she has held several high-level positions including Senior Vice President of Staff Services, Group Vice President of Human Resources and Administrative Services and Vice President and Director of Human Resources. Previously, she was a branch manager for Georgia Federal Bank and Training & Savings Operations Manager for United Federal Savings Bank. A native of Lyons, Ga., Cathy earned a Bachelor's degree in business administration from Tift College and a Master of Business Administration from Georgia State University. She also holds certification as a Senior Professional in Human Resources and a Certified Compensation Practitioner.

Gaye Hanson

Great Motivations Topic: Ignite the Winner Within You! Gaye is a dynamic speaker who has a unique ability as a master storyteller to bring the audience on a ride through the joys and challenges of life that they won’t soon forget. Audiences have been brought to laughter then to tears and back to laughter again as she shares personal stories of tragedy and triumph. Gaye’s motto is “Ignite the winner within you!” She has been described as dynamite and a “firecracker.” Her energy and enthusiasm supercharge every audience.

Pricing:

CBA Members $95 per person Non CBA Members $115 per person

Thanks to our Sponsors!

Topic: Supporting A Gender-Rich Workplace Critical Insights to Accelerate Women’s Talents With more than 25 years of experience in corporate and professional service settings, along with advanced study in psychology and human behavior, Jodie brings to her clients a unique understanding of communication, organizational and system dynamics, human behavior, and business principles. Jodie’s real world business experience includes holding senior and executive level roles in professional services and technology firms, in both Atlanta and Silicon Valley. As founder of Potential Matters, Inc., Jodie built a thriving private coaching practice focused on helping professionals and emerging leaders build career resiliency and successfully evolve to positions of leadership. She launched a professional development and career strategy coaching program serving both 10+ year alumni and university stakeholders for the Emory University Alumni Association. She has served as faculty for the Emerging Leader Academy, University of Georgia, Terry College of Business, guest coach at the Goizueta Business School, Executive Education Program at Emory University and Georgia State University, Robinson School of Business, and as guest lecturer at Kennesaw State University, Coles College of Business. Today, Jodie teams with her coaching and consulting partners at Exceleration Partners to deliver leadership programs that integrate best-practice tools and approaches to build strong leaders and teams. Jodie speaks regularly on topics of emotional intelligence, executive effectiveness, career strategy, leadership development and power and influence.

2016 Agenda:

9:30 - 10:00 am 10:00 - 10:05 am 10:05 - 10:55 am 10:55 - 11:10 am 11:10 am - 12:00 pm 12:00 - 1:00 pm 1:00 - 2:00 pm 2:00 pm

Registration/Continental Breakfast Welcome Cathy Adams Break Jodie Charlop Lunch Gaye Hanson Adjourn

Check out these photos from the 2015 Women in Banking event! Luncheon Sponsor

Continental Breakfast

Speaker Jodie Charlop

Additional sponsorships are available! Contact Lindsay Greene (770) 541-0376 to learn more. For general information, contact Peake Wilson (770) 541-0379.

“Not only is this event educational and inspiring, it’s also a lot of fun! I thoroughly enjoy the networking and love making new friends who have similar interests and goals. I can’t wait to see what Cathy, Jodie and Gaye have in store for us!” - Debra Weil, City President, Planters First Bank, Fitzgerald W in t e r 2 0 1 6 | Ge o r g i a C o mm u n i t i es Fi r s t | 19

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 and click on Membership, then Leadership Division Membership. 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.

2016 Leadership Division

Chair Kyle Ray “It is an honor and a pleasure to chair the LD this year,” stated Kyle Ray, Vice President, First Bank of Dalton. “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, Julian & Jan Hester Memorial Scholarship participation and Leadership Division Membership. The goals for 2015-2016 are as follows: Benefiting

PAC/PR

Raise $25,000 (net)

Contribute $40,000 (net)

Receive at least one scholarship application from each bank.

100% Membership

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

At Stokes Carmichael & Ernst LLP, we have been bringing “The Power of Legal Knowledge®” to the challenges faced by the financial community in the areas of credit and collections, banking litigation, fraudulent conveyance litigation, bankruptcy representation, defense of lawsuits, and loan workouts since we opened in 1972. Our clients appreciate the “Real World Legal Solutions®” that we bring to the myriad legal matters facing banks today. We welcome the opportunity to put our experience to work for you. Please contact us to discuss how we can help you optimize recoveries for your bank.

Stokes Carmichael & Ernst LLP scelaw.com 404.352.1465 x41 mje@scelaw.com

2 0 | w w w . cbaof ga. com |Wi n t e r 2 0 1 6

THE POWER OF LEGAL KNOWLEDGE®

Getting to Know Keith Stayer R. Keith Stayer, Senior Vice President

What does Triad do?

Triad Financial Services, Inc. is a specialty finance company serving the manufactured housing industry since 1959. Triad assists prime credit, well-qualified buyers with the purchase of new or pre-owned manufactured homes in 42 states. We currently have over $1.3 billion in outstanding loans held by over 125 lending partners. These partners are mostly banks.

CBA Endorsed Member Company SPOTLIGHT Hobbies? Family?

My wife, Laurie, and I have been married for 24 years and we have two sons. Kyle (19) is a sophomore at the University of Florida and Jake (17) is a junior in high school. We have a dog (Rio) and a cat (Telly). I am a long time Jacksonville Jaguar season ticket holder and enjoy tailgating with friends and family. I enjoy attending my sons high school football games on Friday nights and attend as many Gator games as possible on Saturdays, so weekends go by pretty fast in the fall. I also enjoy boating, fishing, tennis and golf.

How do you help Georgia’s Community Banks?

Triad partners with banks to grow and diversify their loan portfolios. We underwrite, process, close and fund loans before selling the higher yielding asset to the bank. A portion of Triad’s proceeds are retained by the bank in cash reserves to protect the portfolio against losses or prepayments. Our turnkey business model allows banks to grow their loan portfolios with no additional FTE and minimal operational expense. Our loan portfolios are secure, diverse and highly profitable. Triad’s lending partners have loan portfolios ranging from $5 million to over $200 million.

Tell us about Triad's products.

The majority of Triad’s Loans are secured by newly constructed, factory built homes. These homes are built in a controlled environment according to strict HUD Standards and delivered to a private home site or a community. A common misperception is these homes are low-quality “Trailers” when in reality, these well-qualified borrowers have purchased one of the most efficiently-built, cost-effective and affordable housing options in today’s market, which is why the loans perform exceptionally well.

Keith and his family.

Tell us about your background with Triad.

I have been with Triad over 7 years and have introduced our innovative lending program to numerous Financial Institutions throughout the U.S. Prior to joining Triad, I was with Synovus Financial where I worked in the Mortgage Division and later joined Synovus Bank as a Private Banker. Before Synovus, I was with NetBank, Inc. where I held leadership positions in Loan Operations, Loan Originations and Sales Management. Prior to NetBank, I was with Merrill Lynch Credit Corporation (“MLCC”) where I was a VP in Product Management and also held Supervisory Roles in Mortgage Loan Operations.

Enjoying a Jacksonville Jaguars game with his family.

To learn more about Triad Financial Services, contact Keith Stayer, Senior Vice President, at 800-522-2013, or kstayer@triadfs.com or visit www.triadfs.com

Thank You, Associate Members! When Georgiaâ&#x20AC;&#x2122;s community bankers are looking to do business, they look to CBA Associate Members first. All Associate Members are board-approved companies who offer top-notch products and services designed to help community banks succeed. Whatâ&#x20AC;&#x2122;s more, CBA Associate Members support the association with their sponsorships, advertising, informative articles, and participation in CBA programs. We salute this group of professionals and offer our sincere gratitude! A.D.E. Builders, Inc. BAT Associates, Inc.

Credit & Comp. Financial Resources, Inc

Aldridge Pite, LLP

BBVA Compass - Correspondent Banking BDS Technology, Inc.

All Real Estate Services, LLC

Berman Fink Van Horn P.C.

CRS Data

AloStar Bank of Commerce

Better Homes & Gardens Real Estate Metro Brokers

CSRA Business Lending

Alston & Bird LLP

BFS Group

Ascension Insurance Inc.

Blanchard Consulting Group

Acquisition Management Group, LLC

BranchServ Atris Technology Auburn University, School of Accountancy

Cummins-Allison Corporation Dabbs, Hickman, Hill & Cannon, LLP Darnel Quick Recovery Inc.

Bryan Cave, LLP Cantor Fitzgerald Capital Partners CDC Carr, Riggs & Ingram, LLC

Baker, Donelson, Bearman, Caldwell & Berkowitz, PC Balch & Bingham LLP

Crowe Horwath LLP

Cash Transactions, LLC CBIS - Community Bank Insurance Solutions

Delta Global Staffing Deluxe DeNyse Companies Dodgen Security Consulting, LLC Drew Eckl & Farnham, LLP Dynamic Environmental Associates, Inc.

BancCard Bankers Healthcare Group, Inc. Bankers-Insight Group, LLC Banks Street Partners

CBSi/TransUnion CenterState Bank CFS, Inc. Churchill Stateside Securities, LLC CNA Financial Corporation Cold River Land, LLC Compensation Advisors

Barret School of Banking

Federal Home Loan Bank of Atlanta FEMAC Security Solutions

First National Bankers Bank FirstBank Mortgage Partners

Consolidated Banking Services, Inc. Consultants & Builders, Inc.

2 2 | w w w . cbaof ga. com |Wi n t e r 2 0 1 6

Elliott Davis Decosimo Evans, Simpson & Associates, Inc.

Fiserv

Fowler, Holley, Rambo & Stalvey, PC

Midwestern Securities Trading Company

FTN Financial

Miller & Martin PLLC

Genesys Technology Group

Moody's Analytics Solutions, LLC

Georgia Department of Community Affairs

Morris, Manning & Martin, LLP

Georgia Development Authority

MST

Georgia Southern Univ. - College of Bus. Admin. Gerrish McCreary Smith, PC

National Bank Products, Inc.

GFG Strategic Advisors GlassRatner Advisory & Capital Group, LLC

Southern Financial Systems LLC Southwest Financial Services, Ltd. Speaker Connection Spectrum Financial Network, Inc.

Nelson, Mullins, Riley & Scarborough, LLP

Spivey, Pope, Green & Greer, LLC

Nichols, Cauley & Associates, LLC NYMBUS

Sterne, Agee & Leach Steve H. Powell & Company

Oxford Center for Entrepreneurs PaymentsFirst

High Cotton

Pentegra Retirement Services

Holguin Consulting, Inc.

Perfect Image Printing

Homeowners Mortgage Enterprises, Inc.

Performance Solutions Inc.

Howe Construction, Inc.

Point to Point Environmental

Howick, Westfall & Kaplan, LLP

Porter Keadle Moore, LLC

Hudson Parrott Walker

Primary Capital Mortgage, LLC

Hutchins Clenney Rumsey Huckaby, P.C.

Prime Contractors, Inc.

Stokes Carmichael & Ernst LLP Strunk LLC Sugar Creek Capital, LLC Superior Financial Systems Sutherland Asbill & Brennan The Baker Group The Bankers' Resource Group LLC

Priority Payment Systems Professional Bank Services, Inc. Independent Community Bankers of America Infinity Network Solutions Intercept Consulting Group Invictus Consulting Group, LLC Jack Henry & Associates, Inc. James-Bates-Brannan-Groover, LLP Jones Walker LLP

The James Paul Group

Promontory Interfinancial Network

The Plateau Group, Inc. Thompson, O'Brien, Kemp & Nasuti, PC TJS Deemer Dana LLP

Quirk & Quirk, LLC

Total Bank Solutions, LLC

QwickRate Renasant Bank Mortgage Lending Richard C. Wayne & Associates, P.C. Robley Rigdon, LLC

Triumph Mortgage

Safe Systems

Troutman Sanders LLP UMS Banking

King Computer Kistler Financial Insurance Group, Inc. Lee & Mason Financial Services, Inc. Lloyd Associates Macey, Wilensky & Hennings, LLC Marlin Financial & Leasing Corp. Martin Snow, LLP Mauldin & Jenkins

Saltmarsh, Cleaveland & Gund Sandler O'Neill & Partners, L.P. Secured Retirement Strategies Group, LLC Securian Casualty Company Securitas Financial Services, Inc. ServisFirst Bank SHARENET ATM

USDA - Department of Rural Development VeriStor Systems Warren Averett, LLC Weissman, Nowack, Curry & Wilco, P.C.

McCalla Raymer, LLC McLain, Calhoun, McCullough, Clark & Co., P.C. McNair, McLemore, Middlebrooks & Co., LLP

Williamsburg / American Express Travel SIO Law Group, LLC

Womble Carlyle Sandridge & Rice, LLP

CBA Endorsed Member Company has logo displayed. W in t e r 2 0 1 6 | Ge o r g i a C o mm u n i t i es Fi r s t | 23

re! e h e r e ou w y h s i W Simply ensure your bank is represented at all five of these 2016 offerings and your bank automatically becomes a member of the CBA GO Club and earns the complimentary registration. 1. CBA Day at the Capitol – Wednesday, February 17th, Atlanta 2. Women in Banking Seminar - Thursday, March 10th, Macon 3. 8th Annual CBA Bank Directors’ & Executive Management Conference – Wednesday, March 23rd, The Cobb Energy Performing Arts Centre, Atlanta or 7th Annual CBA Georgia Bank Directors College – Monday, August 22nd, The Ritz-Carton Lodge, Reynolds Plantation, Greensboro 4. A Spring Regional Luncheon (Gainesville, Macon or Albany) 5. 38th Annual Leadership Division Convention & Mini-Trade Show - Wednesday Sunday, June 22nd – 26th, Disney's Contemporary Resort, Orlando, FL or three Community Bank Leadership Academy offerings (March, August or October 2016). Attendees can pre-register for August and October programs to qualify.

Earn a COMPLIMENTARY registration to our 48th Annual Meeting & Trade Show in Bermuda $795 Value! Become a member of CBA’s GO Club!

Fowler Williams President Crescent Mortgage, A CBA Endorsed Member Company

TRID Implementation

The TILA – RESPA Integrated Disclosure (TRID) rule has now been implemented for most closed-end residential mortgages. So, why is it that the industry is still facing challenges given that the rule was first published two years ago, and now has been in effect for several months?

1. Disclose fees correctly the first time. Sounds simple, right? Don’t use a templated fee structure on loans as each are quite unique. You have three days in which to issue a Loan Estimate after receipt of application from the borrowers. Use three days and check your math.

For those, like the Director of the Consumer Financial Protection Bureau (CFPB), who believe it was simply a change to combine a Good Faith Estimate and Truth in Lending Disclosure into a “Loan Estimate” and the HUD-1 Settlement Statement and Final Truth in Lending Disclosure into the “Closing Disclosure”, they have been proven wrong.

2. Make sure you and your settlement agent collaborate on exact fees for their services, taxes and due dates. If your settlement agent is unwilling or unable to give you accurate fees up front, find a different settlement agent.

TRID combines a vague myriad of timing, delivery, receipt, calculations, rounding, heck - even font size rules into an already complex mortgage manufacturing process. Banks and Mortgage Bankers across the country are having multiple issues that are making the new TRID process cumbersome to all parties involved. Systems: All mortgage loan origination systems (LOS) have had serious issues surrounding the rule. Most believe the cause is the lack of clear and concise guidance from the CFPB that leaves some parts of the rule up to interpretation. Many LOS providers were not ready by implementation. Many are still making changes to the software several months into the rule. Loan Document Providers: Often these document providers work with multiple LOS systems, all with slightly different interpretations and have had challenges mapping correct information from the systems to the new disclosures. Settlement Agents: Settlement Agents who waited until the day of closing, or HUD approval in the past to finalize their figures are causing a nightmare for lenders and borrowers alike. As a national lender it is very obvious to us which settlement agents were prepared, and which will soon become dinosaurs if they don’t get on board.

3. Communicate with all parties early and often. Timing, delivery, and receipt of these disclosures can start a negative chain reaction if you are not communicating and watching the clock. 4. Remember to originate mortgages. It is easy to spend your time winding through the intracacies of the rule, however, at the end of the day we shouldn’t let it stop us from serving our customers and facilitating the American Dream of home ownership.

Ashli Matson, Account Executive-GA Crescent Mortgage Company Office 800-851-0263 Cell 770-714-5417 amatson@crescentmortgage.net

While parts of the new rules are vague, incomplete and frustrating, they are not insurmountable to banks making every effort to comply. Here are a few quick tips that I believe will save originating institutions, and their borrowers, some headaches.

W in t e r 2 0 1 6 | Ge o r g i a C o mm u n i t i es Fi r s t | 25

When your instant

issue card solution is so easy and affordable, it’s not luck. It’s Harland Clarke. harlandclarke.com/CardAtOnce

Instant card issuance is a no-brainer. Your account holders are asking for it, and you want to offer it to them. Now you can issue fully functioning, personalized cards onsite in about a minute — affordably — with Card@Once from Harland Clarke. Because the service is web-based, there’s no software or dedicated server to buy, and no technology management necessary on your end. All you need is an internet connection. Just plug in the printer and you’re ready to go. When it comes to a one-source, low-cost solution for instant issue, it takes more than luck. It takes Harland Clarke.

Harland Clarke Payment Solutions. Leave nothing to chance.

Marketing Services - Security Solutions - Payment Solutions

2 6 | w w w . cbaof ga. com |Wi n t e r 2 0 1 6

1.800.277.7637 Card@Once (patent pending) is a registered trademark of EFT Source, Inc.

Aaron Lenhart Senior Risk Management Consultant Sageworks, A CBA Endorsed Member Company

Third-quarter loan loss reserves dipped below levels from a year earlier as U.S. banks, on average, continued to slow the rate at which they reduced pools of money set aside to cover incurred credit losses. The allowance for loan and lease losses, or ALLL, for the average U.S. bank in the third quarter was $18.9 million, or 0.5 percent below the $19.0 billion average a year earlier, according to data researched through Sageworks Bank Information. That’s a smaller drop than in recent years, but the current average ALLL is 29 percent lower than in the third quarter of 2011. Tim McPeak, a director in the financial institutions division of Sageworks, said lower ALLL levels could reflect a variety of factors: “The reduction in allowance levels might reflect a confidence in the health of the U.S. economy on the part of U.S. banks,” he said in a data release. “When the economy is in good shape, there are generally less defaults on loan payments.” This relationship between the economy and credit quality is also reflected in the average net charge offs for U.S. financial institutions, McPeak said. The average U.S. bank had $4.2 million in net charge offs as of the third quarter, or roughly a third of the average charge offs as of the third quarter of 2011.

Loan loss reserve levels continue to drop Mid-sized banks, or those with assets between $10 billion and $100 billion, actually boosted their average ALLL in the third quarter by 1.1 percent, compared with the same period a year earlier. Mid-sized banks’ average ALLL is 22 percent lower than in the third quarter of 2011. Community banks, or those with less than $10 billion in assets, lowered loan loss reserves by 0.1 percent, leaving the ALLL on average about 12 percent lower than four years earlier. U.S. banks also generated the highest average third-quarter earnings in several years, and they loaned more money to businesses, according to the data researched through Sageworks Bank Info. The average U.S. bank earned nearly $20 million in net income in 2015 as of the third quarter, compared to about $17.6 million a year ago and $12.5 million as of the third quarter of 2011. “Each bank, on average, is seeing its strongest earnings since the recession so far this year,” said Sageworks analyst James Noe. McPeak added that it isn’t surprising that reserve levels and earnings have trended in opposite directions. Provisions for the ALLL reduce earnings; conversely, earnings are boosted when ALLL levels are lowered. “If a bank feels comfortable setting aside less for the loss reserve, it would lead to higher net income for that bank,” he said.

W in t e r 2 0 1 6 | Ge o r g i a C o mm u n i t i es Fi r s t | 27

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

ORLANDO, FLORIDA

March 6-10, 2016

Hilton New Orleans Riverside and Convention Center

www.icba.org/convention2016 WORKSHOPS EXPO NETWORKING GENERAL SESSIONS

Learn more at www.icba.org/convention2016 2 8 | w w w . cbaof ga. com |Wi n t e r 2 0 1 6

Submitted by: A CBA Endorsed Member Company

With a seat at the executive table and an active role to play in community bank leadership, it’s no secret that the compliance officer role is evolving. Heading into 2016 and beyond, the compliance officers who will bring their banks the most value will be strategic thinkers—those who go beyond policing compliance to actually advising the bank on how to embrace compliance to achieve a competitive advantage. This transformation from police officer to strategic partner who enables innovation is centered on four fundamental areas: mindset, focus, responsibilities and management. Often compliance officers may be resistant to change because they feel it can open the institution up to risk. Focused on keeping the institution out of trouble, compliance officers sometimes shoot down new products and services because their current process is predictable. Some compliance officers look at regulatory requirements as deadline-driven difficulties, which can be seen as obstacles, not opportunities. But this mindset has its own danger: irrelevance in a changing business environment. For an institution to be successful, a compliance officer’s mindset must be that of an agent of change. Working closely with the CEO, he must view change as an opportunity to improve the bank’s business as a whole. That means finding the best way to navigate regulatory challenges instead of saying no to new products or services. Rather than focus on requirements, it means concentrating on objectives and business implications. It means strategizing how to minimize disruptions when integrating regulatory change into operations. It means keeping compliance simple to eliminate hurdles to doing business. The idea of taking on such an influential role may be intimidating to compliance officers who are just barely managing to cope with the constant influx of regulations. They feel bogged down in a never-ending task list. That’s why they need to change their focus. Many compliance officers make the mistake of directing their attention to piecemeal compliance with individual regulations. They rely on daily, weekly, monthly and annual checklists to try and stay on track. They concentrate on what needs to be done right now instead of looking ahead. This approach simply isn’t sustainable in the current regulatory environment. That’s why compliance officers need to focus on compliance management as a whole, creating a system that will enable compliance with all regulations—both current and future—no matter the volume.

The Future Compliance Officer An effective system simplifies compliance management and makes it much more efficient by standardizing the review, implementation and enforcement of new regulations, updates and changes. It supports the entire regulatory lifecycle and helps an institution look for continual improvements. Consider today’s typical compliance officer. More than 60 percent of his time is spent just analyzing regulations. A good compliance management system can cut that down to just 20 percent. That leaves plenty of time for another necessary change—elevating the job of the compliance officer from reactionary to proactive. While compliance officers are most likely to describe their job as one that requires research and knowledge, in reality it needs to be a job that relies on executive thinking and communication. Instead of spending all their time understanding rules, compliance officers should be overseeing compliance management and assessing vulnerabilities. They should be working with departments to understand their operational processes to ensure new requirements are effectively integrated. Instead of constantly reminding employees to think about compliance, they need to develop strategies to embed compliance into business processes. Finally, the compliance officer’s role on the management team must evolve from administrative to leadership. It’s not enough for a compliance officer to update the CEO and board about regulatory changes. Compliance is now a strategic function, and compliance officers must become trusted advisors to the board and CEO as they make decisions about the future of the organization. That means a compliance officer must push past a traditionally black and white world to understand the subtleties of how compliance intersects with every element of the bank. From recognizing and overcoming regulatory vulnerabilities to creating a culture of compliance to demonstrating proven systems and processes for actively reducing regulatory burden, compliance officers must take the lead in offering ideas and strategies. This includes cost control and resource use. They must be advocates for change who are able to identify and mitigate compliance-related roadblocks on the path to innovation. With no end to the barrage of regulatory changes in sight, community financial institutions need to rethink the role of their compliance officers to stay competitive—and compliant. Making the compliance officer a strategic partner can help lessen regulatory burden and encourage innovation in the months and years ahead.

W in t e r 2 0 1 6 | Ge o r g i a C o mm u n i t i es Fi r s t | 29

Announcing Plans for the 2016 Georgia Financial Directory The printed version is back! The 2016 Georgia Financial Directory is your complete resource within the Georgia financial industry and contains information on banks, holding companies, savings & loans, banking products and services, and more. Since all CBA members receive a free copy, advertising in the directory is a smart way to keep your company in front of our membership throughout the year. CBA would like to ensure your bank or company’s info is up-to-date for the 2016 Georgia Financial Directory. Bankers will receive a form from the publisher in late January asking them to update information and CBA will be contacting all Associate Members to update information. Directories will be shipped in early June. For more information, contact Lindsay Greene at (770) 541-0376.

Barret School of Banking Scholarship Winner Jonathon Guthrie Jonathon Guthrie, Loan Officer at The Peoples Bank in Willacoochee, was named the recipient of the 2016 Barret Graduate School of Banking Scholarship.