CBA Today eNewsletter - August 20, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - August 20, 2014 - Community Bankers Association of Georgia.html[10/27/2014 1:01:03 PM]

August 20, 2014

Events

CBA University

Industry Representation

Legislative Updates

Member Services

About CBA

Conferences

Conventions

Schools

Webinars

Banker Regulatory Forums

Compliance

Superior Products...Significant Discounts

Overnight Delivery Program

Large Crowds Attend the 9th Annual Information Technology Security Conference and the 5th Annual Bank Directors' College!

On August 14 & 15, community bank IT professionals from across the state attended the IT Security Conference. During this 1½ day conference, industry experts from Dell SecureWorks, Secure Banking Solutions, the OCC and Nichols Cauley & Associates LLC shared timely information regarding cyber security, vendor management, IT examinations, mobile banking security and much more! On August 18th, community bank directors & CEO’s joined representatives from the law firm Alston & Bird, the FDIC and the Georgia Department of Banking & Finance to discuss regulatory hot topics, corporate governance, and the recent Supreme Court ruling regarding the business judgment rule. In addition, the attendees had an opportunity to participate in a CAMELS case study with representatives from the FDIC and the Georgia Department of Banking & Finance. Both of these annual events were held at the Westin Savannah Harbor Golf Resort & Spa. Thank you community bankers for joining us in Savannah! The CBA would also like to thank our sponsors: Dell SecureWorks, Alston & Bird LLP, ServisFirst, and James-Bates-Brannan-Groover-LLP.

Upcoming Events

13th Annual BSAOfficer SchoolAugust 25-27

Atlanta

Compliance Program III: Georgia Deposit

Documentation August 26, 2014 - RomeAugust 27, 2014 - Duluth

46th Annual Meeting & Trade Show

September 17-21Amelia Island

CBA Resources

2014 Georgia Financial Directory

Career Center

FDIC Regulatory Calendar

Salary Survey

CBA Today eNewsletter - August 20, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - August 20, 2014 - Community Bankers Association of Georgia.html[10/27/2014 1:01:03 PM]

A CBA Endorsed Member Company

ICBA Looking for More After New FDIC Guidance on S-Corp DividendsThe FDIC recently issued new guidance for the treatment of subchapter S banks under Basel III, but the Independent Community Bankers of America said it does not go far enough and that the companies that are apt to receive an exception would be those that are less likely to need it.

The Basel III capital rule's conservation buffer requirement prevents banks from making distributions to shareholders when their capital falls below a threshold. And because federal tax liability passes through a subchapter S corporation to individual shareholders, those investors could face tax liability even if they had not received a distribution.

Because of the nature of the capital conservation buffer phase-in, the FDIC said it does not expect the tax issue to present itself in specific cases for several years. The capital conservation buffer will be phased in during the years 2016-2018 and will be fully effective in 2019. But in a July 21 release, the FDIC said it was "clarifying" some aspects of the buffer due to concern from the affected banks. The new FDIC guidance encourages community banks to request case-by-case exceptions to the Basel III capital conservation buffer, which curtails capital distributions, such as shareholder dividends, when regulatory capital levels fall below preset thresholds.

Rob Braswell, President and CEO of the CBA of Georgia, told SNL that although the FDIC guidance does not alleviate the concerns of many S-corp shareholders, it is probably the most realistic outcome that could have been expected from the FDIC. "Regulators' foremost concern is always the safety and soundness of the institutions, with all other factors such as S-corp shareholders being a secondary concern. I think the guidance is fine, but we will have to wait and see if the FDIC's application of the guidance is reasonable," he said. Braswell called it encouraging that the guidance states that absent significant safety and soundness concerns, the FDIC generally would expect to approve requests. "We shall see how this statement is applied," he said. Click here to read the full article.

We Want to Hear From You! Participate in the Free 2014 Georgia Community Bank Salary Survey! Would you like to receive a complimentary copy of the 2014 Georgia Community Bank Salary Survey? Take a moment today and participate in the free survey! The survey includes information on salary, bonus or additional compensation, qualified plans and additional benefits and much more. Non-participating member banks are able to purchase the survey for $250 and the non-members may purchase for $350. Please

CBA Today eNewsletter - August 20, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - August 20, 2014 - Community Bankers Association of Georgia.html[10/27/2014 1:01:03 PM]

complete the survey no later than August 31, 2014. For more information, contact Lindsay Greene at CBA.

How the New FICO Score Model Will Affect BanksWhen Fair Isaac Co. recently announced a new credit scoring model, it earned significant media attention and won praise for helping consumers marred by medical debt to boost their scores, according to American Banker. But for bankers, at least, it's unclear just how much difference the new model will make. Several said their underwriters already exclude paid and unpaid medical debt from their calculation if the consumer otherwise has a strong credit background.

"We don't pay any attention to medical debt simply because medical billing is so confusing and it's difficult to tell whether or not the person actually owes the money," said Robert Messer, executive vice president and chief financial officer of the $2.4 billion-asset American National Bank of Texas based in Terrell. "I don't think it will have a huge impact except for lenders who rely totally on the credit score. But for any lender who looks at the actual report, I don't think it will have a big impact because the medical charge-offs don't have much credibility."

FICO said the new model could bump up a consumer whose credit score is only marred by a medical debt by a median of 25 points. That amount difference could affect the price of a loan if the borrower was a few points away from hitting a threshold number that would lower their interest rate or make more credit available. Click here to read the full article.

Retailers Ask Supreme Court to Take Up Swipe Fee RulingA group of retail trade associations and large retailers wants the Supreme Court to review the Federal Reserve Board's recent cap on debit card swipe fees that merchants say is higher than the fee limit envisioned in the Dodd-Frank Act.

Although a district court judge sided with retailers in a harshly worded ruling last year — that called on the Fed to go back to the drawing board — a three-judge federal appeals court panel in the

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CBA Today eNewsletter - August 20, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - August 20, 2014 - Community Bankers Association of Georgia.html[10/27/2014 1:01:03 PM]

District of Columbia overturned that decision in March and upheld the Fed's cap of roughly 24 cents per transaction.

But in their petition to the Supreme Court, the retailer groups, who were plaintiffs in the original case, argued the appeals court ruling made certain legal errors and "bent over backward to find ambiguity" in Dodd-Frank. (The law's swipe fee provision — authored as an amendment by Sen. Richard Durbin, D-Ill. — tasked the Fed with ensuring that debit interchange fees were "reasonable and proportional" with the cost of processing a transaction.)

"This case is of staggering importance," the groups said in the petition, recently filed. "The economic burden of the [Fed's] error will be felt virtually every time a consumer swipes a debit card."

ICBA Call Report Petition Reaches 10,000+ SignaturesMore than 10,000 community bankers nationwide have answered the call and stood up to burdensome call reports by signing ICBA's call report petition. Ranging from community bankers in the C-suites to those serving on the front lines, every voice is important in the fight against the unfair and burdensome call report.

ICBA launched the petition late last month as part of its war on regulatory burden. The petition highlights the increasing length and complexity of the call report and advocates streamlined reporting rules for community banks.

To reduce this call report burden for community banks, ICBA sent a letter to regulators proposing a more practical approach to community bank information reporting by instituting short-form call reporting in the first and third quarters for community banks that are considered to be well-capitalized. The full reports would be filed for the year-end and mid-year quarters. Add Your Voice and Sign the Petition.

Banks Fight CFPB Claim That Campus Pacts are 'Secretive'Bankers and industry representatives are taking serious issue with a Consumer Financial Protection Bureau alert that calls into question the transparency of contracts between colleges and financial institutions that offer student products.

The CFPB's August 6 blog post listed 14 Big Ten universities and whether their contracts with financial partners related to on-campus account offerings could be found online. The blog — written by CFPB Student Loan Ombudsman Rohit Chopra, who cautioned students about "secret banking contracts" — essentially criticized 10 of the partner banks for not making all or part of their agreements available.

But some institutions on the list say the blog unfairly suggests shady arrangements between the banks and schools. Banks also say they were not notified by the agency ahead of time to confirm the information before being publicly called out. Meanwhile, the names of two of the financial institutions originally included in the posting have apparently been removed after their inclusion on the list was found to be in error. Click here to read the full article.

CBA Today eNewsletter - August 20, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - August 20, 2014 - Community Bankers Association of Georgia.html[10/27/2014 1:01:03 PM]

Bankers: 2,000 Reasons to Attend the General Sessions at CBA's Annual Meeting!Talk about incentive!!! Special thanks to sponsors PULSE and ICBA Securities for adding an exciting new feature to this year’s convention – the “7-Minute Pitch!” Of course you will be attending the General Sessions at the Annual Meeting & Trade Show, but you’ll definitely want to be in your seat for the 7-Minute Pitch.

Here’s how you can win $1,000!

During the General Session on Friday morning, a representative from PULSE will share information about PULSE products and services and how your bank can benefit. The presentation will be exactly seven minutes.To be eligible, you must be a banker or bank director and be in your seat when the presentation begins. Spouses, vendors and late walk-ins are not eligible.Enjoy the presentation, complete a simple entry form in your seat and at the end of the presentation, a drawing will be held for $1,000. The sponsor will present the banker with 10 crisp $100 bills!

If you don’t win on Friday, no worries – ICBA Securities will conduct a “7-Minute Pitch” during the Saturday morning General Session.

Don’t miss the excitement! Where else can you attend a session and make over $142 a minute?! Register today for the Annual Meeting & Trade Show! For general information about the convention or resort, please contact Peake Wilson.

CBA Today eNewsletter - August 20, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - August 20, 2014 - Community Bankers Association of Georgia.html[10/27/2014 1:01:03 PM]

Dial In Tomorrow for CBA's Marketing Network Meeting Call!Join us on the line tomorrow for the Marketing Network meeting being held from 10-11 a.m. Converse with bank marketing professionals from across the state of Georgia and exchange ideas, learn new techniques, and address challenges unique to community bank marketing. FREE for CBA member banks! Click here to learn more or contact Lindsay Greene if you are interested in joining.

Don't Miss the October 2014 Schools and Conferences! 6th Annual Deposit and Lending Compliance School October 6-9, 2014 in Young Harris! (Attend the ENTIRE School or Just Attend the Deposit Module or the Lending Module)The curriculum for this 4-day school is designed for all community bank staff with deposit and lending compliance responsibilities and provides the most effective compliance training available. The first day of the school will focus on federal deposit regulations and the next three days of the school will focus on federal lending regulations. Complying with federal banking regulations continues to be a demanding task that requires a thorough understanding of the applicable rules. The school helps financial institutions meet the compliance challenge by providing intensive training on the various regulatory requirements. Please make plans now to attend this popular school. Click here to view the brochure!To register, click here.

4th Annual Southeast Financial Workplace Law & Compliance Conference October 23-24, 2014 in Atlanta (1 ½ days)This year’s conference will focus on human resource (HR) strategies in the 21st

century. Now, more than ever, managing change in the workplace requires the executive management team to have a strategic HR plan which includes technology and risk management controls as integral components of the plan. Come join industry experts as they engage the audience in a variety of hot topics such as risk management, the new business judgment rule, Obama care, culture integration, and managing change in the workplace and much more.

The Conference will be led by Ray Stanford, Counsel, SIO Law Group. Joining Mr. Stanford will be Rob Braswell, President & CEO, CBA of Georgia and former Commissioner of the Georgia Department of Banking & Finance; Mark Kanaly, Partner and Chair of Banking Practice, Alston & Bird LLP, Atlanta; Kimberly Douglas, transition leader and author (“The Firefly Effect); Tom Hall, CEO of Resurgent Performance; Joan Buchanan, Federal Reserve; and Julius Pryor, author (“Thriving in a Disruptive World”). Additional information regarding speakers and topics will be available soon. Please make plans now to attend this informative and popular 1½ day conference designed specifically for HR Professionals and other executive team members. To register, click here or contact Jodi Swilley at the CBA.

Consumer Lending School - October 27-31, 2014 Julian Hester Training Center, CBA Headquarters in Atlanta (4 ½ days)This comprehensive, week-long study of consumer lending will take the student through the process of consumer lending to develop and advance the skills necessary to administer quality consumer loans. The school is the only consumer lending

CBA Today eNewsletter - August 20, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - August 20, 2014 - Community Bankers Association of Georgia.html[10/27/2014 1:01:03 PM]

Rusty Powell

school in Georgia specifically designed for community bankers. Please make plans now to attend this highly acclaimed Consumer Lending School. Click here to view brochure. To register, click here.

2014-2015 Leadership Division Meets to Set Goals For Its Annual Fundraising Efforts and InitiativesThe 2014-2015 Leadership Division Board of Directors held its annual Planning Session in Savannah, Georgia this past weekend. In addition to setting the group’s goals for its annual fundraisers and initiatives, the group also discussed the overall success of the Association and ideas on how to further enhance the Leadership Division and a few of the CBA’s events. "This was a fantastic planning session – the LD Board is a very ambitious group who enthusiastically gives of their time and talents for their annual initiatives as well as the CBA’s overall success," stated CBA’s Vice President/Corporate Events & Leadership Division Peake Wilson. “I am honored to be a part of the LD Board and to work with such an amazing group of driven and committed bankers. They continue to dedicate themselves to their banks, their communities, the Association and its causes.”

Rusty Powell, Group Vice President, Highland Commercial Bank, Marietta, and 2014-2015 Leadership Division Board Chairman, states, "It is a privilege to serve as the Chairman of the CBA’s Leadership Division this year. We have a hard-working, talented and fun group of bankers serving on the Board and I am excited about the upcoming year." The purpose of the Leadership Division is to give bankers an opportunity to build and expand on the skills required to be a leader within their banks and communities and to network and exchange ideas with their peers. "We encourage other community bankers in leadership roles to join us in positively impacting the future of

community banking in Georgia,” states Rob Braswell, CBA’s President & CEO. The board members and their spouses/guests enjoyed networking time with friends and colleagues and a wonderful reception and dinner sponsored by ACG, a CBA Endorsed Member Company.

CBA Today eNewsletter - August 20, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - August 20, 2014 - Community Bankers Association of Georgia.html[10/27/2014 1:01:03 PM]

Attendees of the Leadership Division Planning Session

Why Do Banks Maintain an Unallocated Reserve?The unallocated reserve can play an important role in maintaining a financial institution’s overall reserve; however, it is, by nature, a rather subjective process. Unallocated reserves are the result of an adjustment to account for estimated credit losses which fall outside of the predefined qualitative factors and historic loss calculations. Unallocated reserves are necessary when an institution applies qualitative risk factors and historic loss calculations to the reserve, yet still expects credit losses as of the evaluation date to exceed that of the reserve (above and beyond the qualitative factors adjustment). Click here to read full article. Submitted by CBA Endorsed Member Rob Ashbaugh, Senior Risk Management Consultant, Sageworks

FREE WEBINAR: Account Holder Insights That Unlock Greater Profit PotentialA high-performing marketing plan doesn’t have to be a pie-in-the-sky goal. A little additional insight into your account holder base can help you get the same results. Attend a webcast presented by Harland Clarke that shows you how to get the most out of your marketing investment.

In this live event, Harland Clarke share tips to:

Identify the right products for your account holders at the right timeBenchmark your marketing program against Harland Clarke’s proprietary National Financial Industry DatabaseOptimize your marketing investment

If you’re looking for ways to make your marketing program work more effectively (and let’s face it — who isn’t?), you don’t want to miss this webinar. Register today.

Tuesday, September 23, 2014 | 1:00 p.m. EST

CBA Today eNewsletter - August 20, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - August 20, 2014 - Community Bankers Association of Georgia.html[10/27/2014 1:01:03 PM]

Panelist: Steve Nikitas, Senior Market Strategist, Harland Clarke

United Community Bank -- MariettaSam Churchill has joined the bank as Commercial Relationship Manager.

United Community Bank -- MariettaJ.D. Williams has joined the bank as Vice President and Regional Sales Manager for the Metro Atlanta area.

PrivatePlus Mortgage, a division of Private Bank of Buckhead & Decatur – AtlantaNikisha Hopkins has joined the bank's mortgage division as an Operations Specialist.

Highland Commercial Bank -- MariettaJames Moore has joined the bank as Vice-President, Commercial Lending.

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.

CBA Today eNewsletter - August 20, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - August 20, 2014 - Community Bankers Association of Georgia.html[10/27/2014 1:01:03 PM]

AUGUST 2014

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

Compliance Program III: Georgia Deposit DocumentationTuesday, August 26, 2014 - Rome

Wednesday, August 27, 2014 - Duluth

SEPTEMBER 2014

46th Annual Meeting & Trade ShowWednesday-Sunday, September 17-21, 2014 – The Ritz –Carlton, Amelia Island, FL

Compliance Program III: Georgia Deposit DocumentationTuesday, September 23, 2014 - Macon

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

OCTOBER 2014

6th Annual Deposit & Lending Compliance SchoolMonday-Thursday, October 6-9, 2014 – Brasstown Valley Resort & Spa, Young Harris(Attend ENTIRE School or Just the DEPOSIT Module or Just the LENDING Module)

Community Bank Leadership Academy - Fall SessionWednesday, October 22, 2014 – Idle Hour Country Club, Macon

4th Annual SE Financial Workplace Law & Compliance Conference (1 ½ days)Thursday-Friday, October 23-24, 2014 – The Georgian Club, Atlanta

Consumer Lending School(4 ½ days)Monday-Friday, October 27-31, 2014 – JHTC at CBA Headquarters, Atlanta

Compliance FDIC Workshop (1 ½ days)Wednesday- Thursday-Friday, October 29-30, 2014 – Idle Hour Country Club, Macon

We are community banking.

CBA Today eNewsletter - August 20, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - August 20, 2014 - Community Bankers Association of Georgia.html[10/27/2014 1:01:03 PM]

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