1969 - 2007 “Community Bankers Raising The Bar”
May 4, 2007
CBA TODAY Issue 9
A STATEWIDE PUBLICATION FOR MEMBERS OF THE COMMUNITY BANKERS ASSOCIATION OF GEORGIA
North PAC/PR Golf Tournament a HUGE Success!!
The 18th Annual North PAC/PR Golf Tournament was held on Thursday, April 19, 2007 at the BridgeMill Athletic Club in Can-
ton. Over 65 community bankers, associate members and guests participated in a challenging round of golf on one of the best
courses in Georgia, while raising money for a valuable cause – the CBA PAC/PR fund. Many participants enjoyed the beautiful
weather and formidable pin placements during the tournament, as well as the peer networking afterwards. We would like to thank
all of the participants, sponsors and door prize contributors who made this event a huge success!
1st Place Team (Sponsored by: Prime Home Mortgage, Inc.) Longest Drive (Sponsored by: Howe Construction, Inc.)
Don Kelly: Bank of Monticello John Davis: Appalachian Community Bank, Blairsville
Hudson Wade: First Georgia Community Bank, Covington Closest to Pin (Sponsored by: Deluxe Corporation)
Don Jesweak: Lake Oconee Community Bank, Greensboro Bob Lee: Meyer Chatfield Corporation, Auburn
Fred Ethridge: Cash Transactions, Austell
2nd Place Team (Sponsored by: Howe Construction, Inc.)
Stewart Griggs: Unity National Bank, Cartersville Tournament Lunch: J.A.H.
Rick Hughes: Unity National Bank, Cartersville Insurance/ Lee & Mason
Dan Oliver: Vinings Bank, I.O. Financial Services, Inc.
Bob Hill: H. Lloyd Hill Architects & Associates, Inc., Gainesville Beverage Cart: Cherokee Na-
tional Life Allied Solutions
3rd Place Team Door Prize Contributors:
(Sponsored by: W.H. Bass, Inc.) Federal Home Loan Bank of
John LosChavo: FallCreek Atlanta; J.A.H. Insurance/ Lee
Construction, Alpharetta & Mason Financial Services,
Jorge Robledo: FallCreek Con- Inc.
Tim Germaine: FallCreek Con-
struction, Alpharetta Congratulations May 2007
Bank Directors’ College Graduates!
Economic Education Contacts Due!!! Pat Bartness Atlantic Southern Bank, Macon
Marty Godfrey, 2006-2007 Leadership Division Chairman, wants Michael Berg First Citizens Bank of Georgia, Dawsonville
to remind all Leadership Division Representatives to turn in your Charles Gordon First Citizens Bank of Georgia, Dawsonville
Economic Education Contacts no later than June 1, 2007. Please
report your bank’s involvement in any school or community educa- Steven Leibel First Citizens Bank of Georgia, Dawsonville
tional activity relating to banking, personal finances, economics or John Pearson First Citizens Bank of Georgia, Dawsonville
related subjects. Remember, the more contacts your bank reports, Gail Cash Heritage First Bank, Orange Beach
the greater the chances of your division winning the Leadership Tim Garner Heritage First Bank, Orange Beach
Division of the Year Award given at the 29th Annual Leadership
Tom Gober Heritage First Bank, Orange Beach
Division Annual Convention & Mini-Trade Show. In addition,
they count toward the Leadership Division Representative of the Tom Russ Heritage First Bank, Orange Beach
Year Award. You can submit your Economic Education Contacts Robert King Liberty First Bank, Monroe
online, by fax or by email to Jason Pruitt at email@example.com. Jim Givan Private Bank of Buckhead, Atlanta
Rick Huddleston Private Bank of Buckhead, Atlanta
Don’t Forget These Important Deadlines! Harry Carter State Bank & Trust Company, Pinehurst
May 19 Leadership Division Convention Hotel Room Ronney Ledford State Bank & Trust Company, Pinehurst
Reservations Deadline - The Ritz - Carlton
Amelia Island, FL. Pete Peebles State Bank & Trust Company, Pinehurst
June 17 Annual Convention Hotel Room Reservations Deadline - Marvin Ragan State Bank & Trust Company, Unadilla
The Fairmont Banff Springs, Banff, Alberta, Canada
PLEASE ROUTE TO:
1900 The Exchange, Suite 600, Atlanta, Georgia 30339-2022
Phone: (770) 541-4490 or (800) 648-8215 Fax: (770) 541-4496
Visit us at: www.cbaofga.com
“Community Bankers Raising The Bar”
Member Mentions Success Through Knowledge
CBA extends condolences to the family and
friends of Dicksen Durden, former director 2nd Quarter Compliance Program
and President/CEO of Durden Banking
Company, Twin City. Topic: Compliance & Information Management
Rapid advances in technology now enable financial institutions to collect, store, retrieve,
Donald Howard, CEO, Bank of North use and share information about customers that is vastly more complete and focused than
Georgia, Alpharetta, is pleased to an- ever before. As the volume and scope of this information have grown, so have federal
nounce that Lorna Roper, of the Mari- regulatory and public concerns for personal privacy and fears that inadequate safeguards
etta branch, has won the bank’s V olunteer will lead to identity theft and fraud.
Achievement Award. He would also like
to announce Martin Dunlap has been pro- This seminar is intended to serve as a primer to financial institutions on what is emerging
moted to Senior Human Resource Manager as the federal law of information management. It is critical that employees at all levels
of the Roswell branch. understand all aspects in order to better protect their customers.
Register today for a convenient location near you!
James Powell, CEO/President, Highland
Commercial Bank, Marietta, announces June 12: Tifton June 19: Norcross
the promotions of: Cathy Livingston as June 13: Macon I June 20: Rome
Vice President Operations, Charlene Alex- June 14: Savannah June 21: Macon II
ander as Operations Officer, and Patricia
Joyner as Operations Officer. If you are not a member of the compliance program, please consider joining this impor-
tant cost-effective program. For details regarding membership, please contact the CBA
Mark Stevens, CEO/President, Atlantic Education Department and/or obtain a copy of the membership brochure by visiting our
Southern Bank, Macon, announces the website at www.cbaofga.com.
promotions of: Daniel Robbins as Senior
Vice President of Retail Operations, Stuart News! CBA NEWS
Pippin has been named Banking Officer, Breaking
and Ed Campbell as Senior Vice President ICBA-Backed Communities First Act Introduced!
of Human Resources. Independent Community Bankers of America applauded Rep. Nydia Velázquez (D-
The Board of Directors of Coastal Banc- N.Y.), House Small Business Committee chairwoman, for introducing the “Community
shares, Inc., Savannah, announces that Banks Serving Their Communities First Act of 2007,” H.R. 1869. This ICBA-inspired
J. Thomas Wiley Jr. has been selected as bill would help community banks better serve the needs of their individual and small
CEO/President. business customers by providing badly needed tax and regulatory relief and by enhanc-
ing individual savings.
American Banker announces the banks
with the largest C & I loan portfolios: Dar- “Chairwoman Velázquez is a champion of small business and we’re very appreciative
by Bank and Trust Company, Vidalia; of her efforts to improve the economic environment for the nation’s small businesses,
Brand Banking Company, Lawrence- including community banks,” said Camden Fine, ICBA president and CEO. “The Com-
ville; Peachtree Bank, Duluth; First Bank munities First Act provides reasonable and targeted regulatory relief and tax reforms for
of the South, Lawrenceville. community banks, small businesses and individuals and would enable community banks
to devote greater resources to serving their communities.”
Richard Hunt, CEO, Gainesville Bank &
Trust, announces a new location inside In- Community bankers should act quickly in urging their representatives in Congress to
teractive Neighborhood for Kids located in support the Communities First Act (H.R. 1869). Community bankers should contact their
Featherbone Center. representatives-either by phone at (202) 224-3121 or by e-mail.
John Rogers, CEO/President, The Citi- ICBA has posted a drafted letter on its Web site, to obtain a copy, to view this article in its
zens Bank of Cochran, announces the pro- entirety, and or to view the major regulatory relief provisions, please visit www.icba.org.
motion of Lindsay Holloway to Assistant ICBA 5/07
Operations Officer. Two Senators Press Big-Bank Position on Basel II
James Miller, Jr., CEO, Fidelity Bank, Two Senate Banking Committee members have written a letter encouraging federal bank-
Norcross, is pleased to announce the hir- ing regulators not to delay the final adoption process for the proposed Basel II capital stan-
ing of James Trimble, Jr. as Senior Vice dards for the nation’s largest dozen or so U.S. international financial institutions, accord-
President and Director of Private Banking, ing to Dow Jones Newswires. Sens. Chuck Schumer (D-N.Y.) and Mike Crapo (R-Idaho)
Janice Miller as Vice President of Private also echoed in their letter the big-bank position that Basel II should foster competitive
Banking, and Tracy Parks as Assistant parity among the largest U.S. and European financial institutions, the news agency said.
Banking Officer and Operations Manager Last month FDIC Chairman Sheila Bair expressed concern that some interests have at-
of Private Banking. tempted to steer Basel II discussions away from the original purpose of the rule-making
Due to incorrect information in the March effort—that of ensuring the largest institutions maintain proper risk management and
23rd issue, we would like to announce the capital reserves. Independent Community Bankers of America shares Bair’s concerns
following: Tracy Newton, CEO, Appala- and has been working with policy makers to maintain several capital safeguards within
chian Bancshares Inc., Ellijay, announces Basel II, including the current leverage reserve ratio. Regulators hope to begin phasing in
the hiring of J. Keith Hales as Executive new risk-based Basel II and Basel IA capital rules—the less cumbersome rules for non-
Vice President and CFO of both the holding Basel II banks—over a four-year period starting in January. For more information or to
company and its subsidiaries. read this article from its source visit www.icba.org. ICBA 5/07
Seven Things that Bankers Are (or Should Be) Thinking About
With mid-2007 on the not so distant horizon, now is the time to plan for the following developments that are shaping this year:
•Thanks to newly adopted FAS 159, banks may be able to restructure bond portfolios and redeem trust pre-
ferred securities without recognizing related losses in earnings. This obviously is welcome news for issuers seek-
ing to refinance outstanding trust preferred securities, especially in light of the attractive pricing that currently is available.
•Thrifts have become quite a “bargain” for strategic-minded banks. Lower premiums, an attractive charter and a source of inex-
pensive deposits have made thrift acquisitions quite popular in recent periods. The OTS’ recent marketing efforts haven’t hurt,
•The U.S. Supreme Court’s recent decision in the Wachovia case, upholding preemption, has made federal charters all the more
appealing – that is, at least until Congress steps in with its own consumer protection and predatory lending legislation. While the
case related to operating subsidiaries of federally chartered banks, the message from the nation’s highest court was that preemp-
tion is alive and well.
•The SEC’s recent Open Meeting spelled disappointment for banks that are non-accelerated filers, as the SEC failed to delay the
application of Sarbanes-Oxley Section 404 – meaning that smaller public banks still need to comply with Section 404 for fiscal
years ending after December 31, 2007.
•Captive real estate investment trusts, or “REITs” – used by many banks as a tax efficient means of holding mortgage loans and
other real estate related assets – have become the target of state legislators, who intend to eliminate the benefits of these structures,
perhaps as early as this year.
•Community bankers – and some would say the FDIC – have staved off Wal-Mart’s bid for an industrial loan company. Bankers
need to understand the important competitive implications of this decision, as well as its limits.
•There has been no shortage of confusion over deferred compensation arrangements since the adoption of Internal Revenue Code
Section 409A. The IRS’ 409A guidance in April warrants attention, as it addresses many of the deferred compensation issues that
have been troubling banking executives.
Article Submitted by: Mark C. Kanaly, Christopher C. Frieden; Alston & Bird LLP, A CBA Associate Member
Institutions Can Start Using Revised SAR Forms Soon
Community banks have the option to begin using revised and reformatted Suspicious Activity Report forms (SAR-DI) start-
ing June 30, the federal banking agencies and the Financial Crimes Enforcement Network said in a statement. The new form,
designed to be easier for institutions to use, will become mandatory starting Dec. 31, 2007. For more information, please
Reminder! June 8 telephone/webcast seminar: Last Minute Review of the SAR Form. To register visit our website. ICBA 5/07
FinCEN Issues BSA Data Format Reminder
The Financial Crimes Enforcement Network released a statement reminding financial institutions that 3.5-inch diskettes and
18/36-track cartridges are the only acceptable formats for filing Bank Secrecy Act forms with the agency. Forms submitted
on a DVD or CD-ROM do not conform to the agency’s technical guidelines. To read this article at its source, please visit
www.icba.org. ICBA 5/07
Basel 1A Calculator
The Conference of State Bank Supervisors has unveiled a new Basel 1A calculator. The tool, developed with the New
York State Banking Department, allows a bank to estimate the potential change in required minimum capital using call
report data and was developed in response to the proposal from the federal banking agencies. The calculator estimates
the change based on the proposed rule, specifically, the LTV of residential real estate, externally rated loans and un-
funded commitments. In addition, the calculator also factors in possible changes using a matrix of LTV and credit scores
for residential real estate and small business loans.
“The calculator is a key tool for regulators and bankers to evaluate the impact from this important proposal. Our hope
is to raise awareness and generate interest in the public policy debate on risk based capital rules in the United States,”
said Michael L. Stevens, Senior Vice President for Regulatory Policy. To read this article at its source and/or to access
the calculator and other information on the proposed capital rules, visit www.csbs.org. CSBS Update 5/07
Service corporation Feature Staples - Office Supply Program
Staples, the world’s largest office superstore, is honored to be an endorsed mem-
ber of the CBA of GA. All members receive deeply discounted pricing, next
day delivery and can use state-of-the-art technology to place their orders. Each
program is custom designed for each bank. Let Staples help provide you with
office supplies, business cards, printing, advertising specialities, janitorial prod-
ucts, as well as bank specific products. Contact Steve Levine at (770) 997-2512.
UPCOMING 2007 EVENTS
Community Banking School: II Last Minute Review of the New
May 15, Atlanta SAR Form
May 16, Macon June 8, Telephone/Webcast
Commercial Loan Stress Testing Mortgage Lending School
May 15, Telephone/Webcast June 11-15, Marietta
Dealing With Return Items What Bankers Need to Know About
May 17, Telephone/Webcast Business Resolutions
Getting Your Best CRA Rating June 12, Telephone/Webcast
May 22, Telephone/Webcast 2nd Quarter Compliance Program
RESPA/Regulation Z Compliance Topic: Compliance & Information
May 22, Macon Management
May 23, Atlanta June 12, Tifton June 19, Norcross
Financial Managers’ Forum June 13, Macon I June 20, Rome
Dinner Series June 14, Savannah June 21, Macon II
May 22, Atlanta
Branch Management Series: 29th Annual Leadership Division
Workshop II Convention & Mini-Trade Show
May 22, Atlanta The Ritz-Carlton, Amelia Island, FL
Personnel & Human Resource June 20 - 24, 2007
Management Series: Workshop II 39th Annual Convention & Trade
May 24, Macon Show
Collecting From Past Due The Fairmont Banff Springs, Banff
Customers Alberta, Canada
May 24, Telephone/Webcast July 18 - 22, 2007
Commercial Construction Lending **PASSPORT INFO: Please note that as
May 30, Telephone/Webcast of 12/31/06, everyone, including children,
How to Handle Right of Set Off were required to have passports to travel
June 5, Telephone/Webcast to Canada. Please contact CBA for further
information or visit: http://travel.state.
Loan Review gov/passport/passport_1738.html.
June 7, Telephone/Webcast
Visit us at:
Fax: (770) 541-4496
GLENNVILLE, GA (800) 648-8215
PERMIT NO. 65 (770) 541-4490 or
PAID Atlanta, Georgia 30339-2022
US POSTAGE 1900 The Exchange, Suite 600