CBA Today eNewsletter - June 11, 2014

CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia
June 11, 2014
Events
CBA University
Industry Representation
Legislative Updates
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.
Member Services
About CBA
Conferences
Conventions
Schools
Webinars
Banker Regulatory Forums
Compliance
Superior Products...
Significant Discounts
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
Overdraft Privilege Program
A CBA Endorsed Member Company
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
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Upcoming Events
Analyzing Corporate
Financial Statements
and Tax Returns
June 26
Atlanta
Training the Credit
Analyst
July 9-10
CBA Headquarters
Atlanta
Workplace Law &
Compliance Program
Workshop II
July 17
Atlanta
CBA Resources
2013 Georgia Financial Directory
Career Center
FDIC Regulatory Calendar
Salary Survey
CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia
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
Unnecessary or Burdensome Regulations
about
Outdated,
In 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
Bills
Community
bankers are urged to make a final push to advance several ICBAadvocated 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.
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Connect with CBA on LinkedIn,
Facebook & Twitter!
CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia
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, and
H.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-torepay 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 Point
A 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-andsoundness authority.
Passage of CFPB Reforms Ahead of Markup
The
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 (ROhio), 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
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CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia
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,
and
The 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!
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CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia
Training the Credit Analysts Workshop: July 9-10 in Atlanta
As 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 Sprint
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,
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.
(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
Katherine and Peake helped coordinate the hordes of superheroes getting their photo
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CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia
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 Opening
Midtown 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
(L-R) – Chris Burnett, Bank of
Planning Group; Bill Creekmuir -Clarity Advisors, LLC; Chris Burnett –
Sandy Springs
Market President;
Bank of Sandy Springs, Market President; Eva Galambos - Founding
Stan Kryder, Midtown Bank & Trust
Mayor, City of Sandy Springs; Rusty Paul - Mayor, City of Sandy Springs;
Company President and CEO
Linda Edwards Theos - Edwards-Pitman Engineering; Lesley Panos –
Mellow Mushroom Pizza Company; Michel Panos – Mellow Mushroom
Pizza Company.
Community & Southern Bank Funds Summer Reading Program at
Cherokee County Libraries
Community & 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.”
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CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia
(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 Lending
America’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 Agreement
Exclusions from participation in Medicare or Medicaid
Leases, 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 receivables
Unrealistic 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
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CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia
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 -- Trenton
Chris 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 News
Please 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
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CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia
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 II
Topic: “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 School
Monday - 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 School
Monday-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 - Tifton
Thursday, September 25, 2014 - Savannah
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CBA Today eNewsletter - June 11, 2014 - Community Bankers Association of Georgia
We are community banking.
1900 The Exchange, Suite 600, Atlanta, GA 30339
Phone: (770) 541-4490 / (800) 648-8215
Fax: (770) 541- 4496 • www.cbaofga.com
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