CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia.html[10/27/2014 11:46:03 AM]

June 11, 2014

Events

CBA University

Industry Representation

Legislative Updates

Member Services

About CBA

Conferences

Conventions

Schools

Webinars

Banker Regulatory Forums

Compliance

Superior Products...Significant Discounts

Overdraft Privilege ProgramA CBA Endorsed Member Company

Congratulations to Georgia Banks Recognized in ICBA's Top Community Bank Performers!

Congratulations to CBA member banks for being listed in the June issue of ICBA Independent Banker's annual listings of outstanding community bank performers! ICBA Independent Banker pulled year-end FDIC data to identify the community banks with the highest performance metrics in six asset-size categories. The rankings separately recognize top-performing Subchapter C corporation banks and Subchapter S corporation banks.

This year’s rankings showed the importance of sticking to well-known industry fundamentals, embracing change and working smartly and effectively. Read the full article. The top performing CBA member banks included:

Community banks with assets of more than $75 million to $150 million:- First State Bank, Wrens- Columbus Community Bank, Fortson- Peach State Bank & Trust, Gainesville

Community banks with assets of more than $150 million to $300 million:- Vinings Bank, Smyrna- NOA Bank, Duluth- Peoples Bank & Trust, Buford

Community banks with assets of more than $300 million to $500 million:- BankSouth, Greensboro- First Chatham Bank, Savannah- Morris Bank, Dublin- Primesouth, Blackshear

Community banks with assets of more than $500 million to $1 billion:- Metro City Bank, Doraville- The Heritage Bank, Hinesville

Risk of Banks Dodging Rules Leads to FDIC Scrutiny The U.S. regulator responsible for making sure banks aren’t too-big-to-fail is examining whether the biggest firms are shifting trades overseas in a way that may undermine rules designed to prevent a repeat of the 2008 financial crisis.

In recent months, large banks have restructured their

Upcoming Events

Analyzing Corporate Financial Statements

and Tax ReturnsJune 26Atlanta

Training the Credit Analyst

July 9-10 CBA Headquarters

Atlanta

Workplace Law & Compliance Program

Workshop II July 17Atlanta

CBA Resources

2013 Georgia Financial Directory

Career Center

FDIC Regulatory Calendar

Salary Survey

CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia.html[10/27/2014 11:46:03 AM]

overseas transactions in an effort to trade swaps — contracts blamed for exacerbating the crisis — outside of rules required by the 2010 Dodd-Frank Act.

That law also gave the Federal Deposit Insurance Corp. the power to take over and dismantle large, failing banks, a job that Vice Chairman Thomas Hoenig said Wall Street may be making tougher by the overseas dodge.

“The risks are pretty enormous,” Hoenig said in an interview, adding that the practice could grow and become a bigger threat. “We have a right to be concerned and should be.”

The FDIC has joined the Commodity Futures Trading Commission in “actively monitoring developments” in the banks’ overseas affiliates and watching for any impacts, Andrew Gray, an FDIC spokesman, said in an e-mail.

Federal Regulators Ask For Comments about Outdated, Unnecessary or Burdensome RegulationsIn an effort to identify outdated, unnecessary or unduly burdensome regulations imposed on insured depository institutions, federal regulators recently published the first in a series of four requests for comments as part of a requirement for regulators to review regulations every ten years. The first notice seeks comment on regulations from the following categories: Applications and Reporting, Powers and Activities and International Operations. The deadline to comment on this first set of categories is September 2, 2014. The CBA of GA will be taking advantage of this opportunity to comment and encourages all of its members to do the same. Please feel free to share your comments with Rob Braswell at rob@cbaofga.com and we will incorporate them into our response where appropriate. Click here to read the publication.

ICBA Urging Final Push on Community Bank Regulatory Relief BillsCommunity bankers are urged to make a final push to advance several ICBA-advocated regulatory relief measures through the House of Representatives.

The three bills, inspired by ICBA’s Plan for Prosperity regulatory relief agenda, have been a top industry priority and advanced through committee following ICBA’s recent Washington Policy Summit. After more than a year of advocacy by ICBA and community bankers, the bills are now teed up for passage by the full House.

Community bankers can use ICBA’s Be Heard grassroots resource center to send a customized message to their House members urging final passage of the bills.

The legislation includes:

H.R. 4521, the Community Institution Mortgage Relief Act introduced by Rep.

Connect with CBA on LinkedIn, Facebook & Twitter!

CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia.html[10/27/2014 11:46:03 AM]

Blaine Luetkemeyer (R-Mo.), which would exempt community bank portfolio loans from new escrow requirements and raise the small-servicer exemption threshold from 5,000 to 20,000 loans,H.R. 4466, the Financial Regulatory Clarity Act introduced by Rep. Shelley Moore Capito (R-W Va.), which would require federal financial regulators to consider whether proposed regulations are duplicative or inconsistent with existing regulations before issuing them, andH.R. 2673, the Portfolio Lending and Mortgage Access Act introduced by Rep. Andy Barr (R-Ky.), which would provide that any residential mortgage held in portfolio by the originator is a qualified mortgage, under the CFPB’s ability-to-repay rule.

ICBA continues to strongly advocate the bills, as it has since it introduced the Plan for Prosperity regulatory relief platform more than a year ago.

But grassroots outreach by constituent community bankers is essential to ensuring final passage of these critical bills.

Contact Your Members of Congress Today!

Payday Lenders Sue Regulators to Stop Operation Choke PointA payday lending trade group and a large payday lender sued U.S. banking regulators over Operation Choke Point. The initiative targets third-party payment processors and their financial institutions, including community banks, that process payments for businesses engaged in higher-risk, legal activities.

The Community Financial Services Association of America and Advance America said the Operation Choke Point initiative applies “back-room pressure” on banks to terminate their relationships with payday lenders under the guise of their safety-and-soundness authority.

Passage of CFPB Reforms Ahead of MarkupThe House Financial Services Committee is urged to advance six bills as it marks up legislation to reform the Consumer Financial Protection Bureau.

In a letter to committee members, ICBA urged passage of:

The CFPB Slush Fund Elimination Act of 2013 (H.R. 3389), sponsored by Rep. Shelley Moore Capito (R-W.Va.), to eliminate the Consumer Financial Civil Penalty Fund and provide that collected civil penalties are deposited into the general fund of the Treasury,The CFPB-IG Act of 2013 (H.R. 3770), sponsored by Rep. Steve Stivers (R-Ohio), to create an independent inspector general for the CFPB,The Bureau of Consumer Financial Protection Small Business Advisory Board Act (H.R. 4383), sponsored by Reps. Robert Pittenger (R-N.C.) and Dennis Heck (D-Wash.), to create a Small Business Advisory Board at the CFPB and to codify into law the Community Bank Advisory Council,The Bureau Research Transparency Act (H.R. 4539), sponsored by Rep. Mike

CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia.html[10/27/2014 11:46:03 AM]

Fitzpatrick (R-Pa.), to require that CFPB research papers made available to the public be accompanied by all studies, data and analyses on which the paper was based,The Bureau Advisory Opinion Act (H.R. 4662), sponsored by Rep. Bill Posey (R-Fla.), to establish a process by which financial services providers could seek advisory opinions from the CFPB on new products and services, andThe Bureau Guidance Transparency Act (H.R. 4684), sponsored by Rep. Marlin Stutzman (R-Ind.), to provide a public notice and comment period before issuing any guidance.

Together these bills would increase transparency and accountability at the CFPB.

Go Mobile With CBA at the Leadership Division Convention!The Leadership Division Convention has its very own app! First, download the free "Guidebook" app on your smartphone. Once you open Guidebook, search for and download the CBA Leadership Division Convention. From there, you'll see the Convention Schedule, list of sponsors and exhibitors and tools to plan your travels. Try it today! Register now!

A Special Thanks to the 2014 Convention Sponsors and Exhibitors!

Help the Leadership Division Reach Its Annual Fundraising Goal for Children’s Healthcare Every year, the Leadership Division holds a $5,000 raffle in an effort to raise an additional $20,000 for Children’s Healthcare.

The winner could be YOU! But, you must purchase a raffle ticket (at $50 each) in order to have a chance. To learn more, please contact Peake Wilson at the CBA office. There are a few more tickets left. Don’t miss out on this fantastic opportunity! Your donation is tax deductible.

The winner will be drawn during the Chairman’s dinner at the upcoming Leadership Division Convention & Mini-Trade Show…and, while we’d love for you to be there, you do not have to be present to win! So, purchase your ticket today and spread the word in your community!

CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia.html[10/27/2014 11:46:03 AM]

(L to R): Katherine Kay, Senior Vice President,

Georgia Commerce Bank and Children’s Healthcare Fundraising Committee Chair for CBA and Peake Wilson, Vice President of Corporate

Events CBA of Georgia

Training the Credit Analysts Workshop: July 9-10 in AtlantaAs community banks grow and strive for higher performance, the need to cultivate and develop a portfolio of commercial borrowers increases. Credit analysis is an essential part of

this process as banks develop solid commercial relationships. This two-day Training the Credit Analyst introductory workshop addresses the needs of beginning credit analysts and will reinforce the credit skills of current credit analysts.

The workshop begins with a thorough review of the components of financial statements and proceeds into analyzing the financial statements by preparing a financial spreadsheet and then interpreting the results. Participants will also learn how to write effective and comprehensive credit analyses, highlighting and detailing important trends shown on the financial spreadsheet. Register today for this popular seminar!

Commercial Lending School- August 18-22 in Atlanta“The outlook among District commercial real estate contacts remained positive with continued improvement expected over the course of the year” according to the recent Federal

Reserve's Sixth District Beige Book economic report. In anticipation of improvement in the commercial lending area, don’t miss this opportunity to send your mid-level commercial loan officers and/or seasoned consumer lenders to the CBA Commercial Lending School being held at the JHTC Training Center at the CBA Headquarters.

This comprehensive, 4 ½ day school is designed specifically for community bankers and will take the student through the process of commercial lending and allow the student to develop and enhance the skills necessary to successfully administer quality commercial loans in today’s community bank. Numerous in-class case studies and exercises will be utilized to assist with comprehension and retention of these skills. A basic knowledge of financial statements and spreadsheets is necessary to participate in this school. Click here to view brochure. Click here to register.

CBA’s Leadership Division Takes Part in Strong4Life’s 2nd

Annual Superhero SprintKatherine Kay, Senior Vice President, Georgia Commerce Bank and Children’s Healthcare Fundraising Committee Chair for CBA and Peake Wilson, Vice President of Corporate Events, CBA of Georgia, joined the masses at the 2nd Annual Superhero Sprint raising funds for the Strong4Life Program, a part of Children’s Healthcare (pictured left-to-right with Hope & Will). The event took place on Saturday, June 7th at Piedmont Park in Atlanta and promotes a healthy lifestyle for kids in all aspects of life.

Katherine and Peake helped coordinate the hordes of superheroes getting their photo

CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia.html[10/27/2014 11:46:03 AM]

taken for the Costume Contest. There were several categories including kids, adults and pets. A winner was selected by a celebrity panel of judges and announced toward the end of the festivities.

The event boasted an adult 5k and a kids’ 1 mile fun run, as well. Some 1,900 people participated. To learn more about the event and Strong4Life, click here. To see the photo gallery, click here.

The CBA’s Leadership Division raises funds for Children’s Healthcare every year and since beginning the relationship in 1989, the group has raised close to $400,000. In recent years, the funds have been designated for the Strong4Life program. If you would like to learn how you can participate or help out, please contact Peake Wilson at the CBA office.

Bank of Sandy Springs Celebrates Grand OpeningMidtown Bank & Trust Company opened its new division, Bank of Sandy Springs, on Monday, June 9. The bank held a Grand Opening event on June 4, with over 300 customers, employees and local leaders attending.

(L-R) Jim Kelley - Kelley, Sammons, Armstong, Toole & Ellison, CPA’s; Steve Harmon - Snellings Walters Insurance; John Howard - Resource Planning Group; Bill Creekmuir -Clarity Advisors, LLC; Chris Burnett – Bank of Sandy Springs, Market President; Eva Galambos - Founding

Mayor, City of Sandy Springs; Rusty Paul - Mayor, City of Sandy Springs; Linda Edwards Theos - Edwards-Pitman Engineering; Lesley Panos – Mellow Mushroom Pizza Company; Michel Panos – Mellow Mushroom

Pizza Company.

(L-R) – Chris Burnett, Bank of Sandy Springs Market President;

Stan Kryder, Midtown Bank & Trust Company President and CEO

Community & Southern Bank Funds Summer Reading Program at Cherokee County LibrariesCommunity & Southern Bank (CSB), Atlanta, is helping young readers in Cherokee County by donating $500 to provide funding for the Fizz, Boom, Read initiative and events for the Sequoyah Regional Library System summer reading campaign. The program includes events featuring magician and comedian Ken Scott at various Cherokee County library branches, and runs through the week of July 28.

The donation will ensure the library’s science-themed literacy campaign runs smoothly by helping secure resources – like a petting zoo – designed to complement and enhance the interactive summer curriculum for Cherokee County’s young readers.

“At CSB, we believe helping children develop a passion for reading is important because of the foundation for success it creates,” said Mark Abernathy, CSB President. “The Fizz, Boom, Read initiative is a great program which cultivates just such a passion, and we are more than happy to help enhance the reading experience for our local youth.”

CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia.html[10/27/2014 11:46:03 AM]

(L to R): Michael Arisohn of Community & Southern Bank,

Melanie E. Pullen of the Sequoyah Regional Library System, and Darlene Holtzman of Community & Southern Bank.

Issues to Consider in Healthcare LendingAmerica’s healthcare industry has grown tremendously and will continue to do so. While large banks and specialty lenders often cater to this market, increases in demand for healthcare capital should create opportunities for community banks to finance local projects. These local projects may include assisted living facilities, nursing homes, outpatient surgery centers and individual physician practices, to name a few. Lending on these projects can be a significant revenue source for community banks; however, these types of projects present unique underwriting, collection and portfolio management risks.

Here are some issues that community banks should consider in the underwriting process:

Agreements with the government that may restrict the ability to repay, such as a Corporate Integrity AgreementExclusions from participation in Medicare or MedicaidLeases, professional service agreements and other contracts not in compliance with healthcare laws that prohibit kickbacks and self-referrals Privacy breaches and the lack of “Business Associate Agreements” protecting information privacy where required The ability or inability to get a security interest in Medicare receivablesUnrealistic revenue projections in light of reduced reimbursement rates and trends In the event of a loan default, whether Certificates of Need, Medicare/Medicaid certifications or healthcare licenses are (i) jeopardized, or (ii) transferable or assumable by community banks

With careful analysis, these issues can be understood and addressed at the outset of the underwriting process. But if they are not, these issues may surface as the loan seasons, with the undesirable consequences of (i) increasing the likelihood of default, or (ii) drastically diminishing the value of the community bank’s collateral in the foreclosure or collections phase.

All the considerations identified above cannot or should not be addressed by additional due diligence. Yet, some healthcare matters – such as those impacting state licensure or the ability to bill a government payor – are more likely to warrant due

CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia.html[10/27/2014 11:46:03 AM]

diligence and analysis. For these matters, if a borrower lacks a license or viable payor source, then the ability to repay the loan and the value of the asset would be greatly diminished. Other concerns can be addressed through appropriate drafting of the loan documents containing appropriate covenants, representations and warranties.

Despite the many nuances in healthcare lending, these transactions present opportunities that community banks may not have considered. Yet, as demand for healthcare capital grows, community banks can take advantage of these opportunities if they have the ability to evaluate the corresponding risks.

James-Bates-Brannan-Groover-LLP’s lending and healthcare team is available to help: Dan Brannan: (404) 997-6023 and Paul Quiner: (404) 844-2770.

Citizens Bank & Trust -- TrentonChris Powell has been named President and CEO.

In Memoriam

CBA extends sympathies to the family and friends of William Stephen (Bill) Perry, Sr., who recently passed away. Bill was a former director of the Bank of Central Georgia in Ellaville and the Citizens Bank of Americus. He was a leader in his community and will be truly missed.

Send Us Your NewsPlease remember to include the Community Bankers Association of Georgia on the list of recipients for announcements about promotions, new employees, special recognition your bank has received and/or events for your community. We would love to share your news with your colleagues across the state! Please forward your announcements and photos to Shera Banks or Lindsay Greene.

July 2014

Training the Credit Analyst

CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia.html[10/27/2014 11:46:03 AM]

Wednesday-Thursday, July 9-10, 2014 - JHTC at CBA Headquarters, Atlanta

Workplace Law & Compliance Program - Workshop II Topic: “Workplace Laws for the Financial Industry”Thursday, July 17, 2014 – SIO Law Group, Atlanta

Workplace Law & Compliance Program – Workshop IITopic: “Workplace Laws for the Financial Industry”

Thursday, July 24, 2014 – Idle Hour Country Club, Macon

Compliance Program II Topic: “Mortgage Lending From Start to Finish”

Tuesday, July 15, 2014 - Rome Wednesday, July 16, 2014 - Duluth Thursday, July 17, 2014 - Macon Tuesday, July 22, 2014 - Albany

Wednesday, July 23, 2014 - Brunswick

2014 Mastering the Home Mortgage Disclosure Act (HMDA)Thursday, July 24, 2014 – Idle Hour Country Club, Macon

Executive and Director Compensation Trends & Best Practices (1/2 day)Tuesday, July 29, 2014 – JHTC at CBA Headquarters, Atlanta

August 2014

9th Annual Information Technology (IT) Security Conference Thursday-Friday, August 14-15, 2014 – Westin Savannah Harbor Golf Resort and Spa

4th Annual Bank Directors’ College and FDIC Workshop Monday, August 18, 2014 – The Westin Savannah Harbor Golf Resort and Spa

Commercial Lending SchoolMonday - Friday, August 18-22, 2014 – Julian Hester Training Center, Atlanta

7th Annual Advanced BSA Officer School Tuesday-Friday, August 5-8, 2014

The King & Prince Golf & Beach Resort, St. Simons Island

13th Annual BSA Officer SchoolMonday-Wednesday, August 25-27, 2014 – Julian Hester Training Center, Atlanta

Compliance Program III: Georgia Deposit Documentation (Five Cities)Tuesday, August 26, 2014 - Rome (New Date)

Wednesday, August 27, 2014 - Duluth (New Date)Tuesday, September 23, 2014 - Macon

Wednesday, September 24, 2014 - TiftonThursday, September 25, 2014 - Savannah

CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia.html[10/27/2014 11:46:03 AM]

We are community banking.

1900 The Exchange, Suite 600, Atlanta, GA 30339Phone: (770) 541-4490 / (800) 648-8215Fax: (770) 541- 4496 • www.cbaofga.com