September 24 - Community Bankers Association of Georgia

September 24, 2014
Events
Upcoming Events
CBA University
Industry
Representation
Legislative Updates
Member Services
About CBA
Conferences
Conventions
CBA’s 46th Annual Meeting & Trade Show, held September 17-21 at The Ritz-Carlton,
Amelia Island was the place to be! From phenomenal speakers to fantastic networking
opportunities, the Annual Meeting had it all!
The convention, hosted by 2013-2014 CBA Chair Charlie Curry, President & CEO,
First State Bank of Randolph County, Cuthbert, kicked off Thursday night with a
Dine-Around in the Exhibit Hall. Bankers and attendees visited with 42 top financial
services providers while dining from a variety of food stations. The Exhibit Hall was
alive with activity ranging from the Annual Silent Auction to a “Fling the Ring” Wine
Toss to a photo booth. Keeping with the Hollywood theme, bankers had a chance to
learn about the exhibitors and win big money by playing “Oscar Trivia.”
Schools
Webinars
Banker Regulatory
Forums
Compliance
Superior Products...
Significant Discounts
Insurance Review
A CBA Endorsed
Member Company
The General Session opened with the Color Guard and the National Anthem sung by
Lillie and Curry Hoats, Charlie Curry’s 14-year old granddaughters. The All-Star Cast
for Friday started with a panel discussion on "The Business of Georgia Film Tax
Credit Finance.” Attendees heard from Hollywood producer James Brooke,
All3Media, Los Angeles, CA and Georgia attorneys,
Peter Stathopoulos and Todd Hennings, Macey, Wilensky & Hennings, LLC,
Atlanta, who specialize in the entertainment industry, presented how Georgia law
provides for a tax credit for film, television, commercial, and digital interactive
entertainment productions created in the state.
The Banker/Regulator Point-Counterpoint Panel, moderated by Mark Kanaly,
Alston & Bird, LLP, Atlanta was a big hit with attendees. The panel included Michael
Dean, Acting Regional Director, FDIC, Atlanta, and Oscar Harvey, Associate Deputy
Comptroller, OCC, Dallas, TX, as well Ed Cooney, President/CEO, Affinity Bank, and
Derek Williams, President/CEO, Columbus Community Bank.
Next, Steve Sievert, Executive Vice President of Marketing & Communications,
PULSE, presented a “7-Minute Spotlight.” New this year, the spotlight gave a financial
services provider seven minutes to present to the group. At the end of the
presentation, a drawing was held for $1,000 cash. Congratulations to Travis Cook,
The Merchants & Citizens Bank, McRae, who was the Friday winner! Click here to
read the full article of highlights from the Annual Meeting & Trade Show!
Compliance Program
III: Georgia Deposit
Documentation
September 25
Savannah
6th Annual Deposit &
Lending Compliance
School
October 6-9
Brasstown Valley
Resort & Spa
Community Bank
Leadership Academy
Fall Session
October 22
Macon
CBA Resources
2014 Georgia
Financial Directory
Career Center
FDIC Regulatory
Calendar
Salary Survey
Click here to view more photos from the Annual Meeting & Trade Show! By popular
demand, here's the video of keynote speaker Durwood Fincher interviewing a few
bankers!
Bankers and Associate Members Take Swings of Success at
CBA's Annual Golf Tournament
CBA hosted its Annual Golf Tournament with over 40 players at the course at The
Golf Club of Amelia Island. Designed by Mark McCumber and Gene Littler, this Amelia
Island golf club's breathtaking landscape was as beautiful as was challenging! It was a
beautiful afternoon of fun and networking thanks to our wonderful sponsors -tournament beverage cart sponsored by Crescent Mortgage; golf prizes sponsored by
Investment Professionals, Inc.; and the golf tournament boxed lunches and circle of
gold sponsored by BFS Group.
Congratulations to all winners: First Place Team: Jimmy Dubberly, South Georgia
Bank, Glenville; Chris Wright, CenterState Bank, Atlanta; J.R. Llewellyn (who also
won Longest Drive) with Meyer-Chatfield Compensation Advisors, Greensboro; and
Chris Kelly, Barret School of Banking, Memphis, TN. Second Place Team: Erik
Bagwell, CenterState Bank, Atlanta; Stan Nelson, Warren Averett, LLC, Birmingham,
AL; Allen House, Jack Henry Banking, Monett, MO; and Mike Bell, ProfitStars,
Monett, MO. The Closest to the Pin winner was Micheal Gordon, Mauldin & Jenkins,
Atlanta. The CBA sincerely thanks all who helped make the golfing activity a success!
Connect with CBA
on LinkedIn,
Facebook & Twitter!
Special Thanks to Our Annual Meeting Sponsors and Exhibitors
The CBA would like to thank the many companies who sponsored and exhibited at
this year’s Annual Meeting. We greatly appreciate each and every sponsor and
exhibitor because they played a valuable role in making our Annual Meeting & Trade
Show such a huge success! For a complete list of sponsors and exhibitors, click here.
Watch for more news from the Annual Meeting & Trade Show
in next week’s issue of CBA Today!
House Approves Thrift Holding Company Relief
Legislation to ease regulatory burdens on thrift holding companies passed the House
this week. Lawmakers voted 320-102 to approve the Promoting Job Creation and
Reducing Small-Business Burdens Act (H.R. 5405).
Section 301 of the bill would allow thrift holding companies to take advantage of the
new SEC registration threshold of 2,000 shareholders and deregistration threshold of
1,200 shareholders. H.R. 5405 would correct an oversight in the drafting of the JOBS
Act of 2012 that failed to apply the new thresholds to thrift holding companies.
The House advanced the JOBS Act fix in separate legislation (H.R. 801) that it
passed in January.
Georgia Supreme Court Reaffirms Loudermilk Decision
On Monday, in FDIC v Skow, et al, the Georgia Supreme Court reaffirmed its decision
in FDIC v. Loudermilk regarding Georgia’s business judgment rule. In Skow, the
Eleventh Circuit Court of Appeals certified to the Georgia Supreme Court the following
questions for resolution:
(1) Does a bank director or officer violate the standard of care established by OCGA
§ 7–1–490 when he acts in good faith but fails to act with “ordinary diligence,” as that
term is defined in OCGA § 51–1–2?
(2) In a case like this one, applying Georgia's business judgment rule, can the bank
officer or director defendants be held individually liable if they, in fact as alleged, are
shown to have been ordinarily negligent or to have breached a fiduciary duty, based on
ordinary negligence in performing professional duties?
The Court cited its recent decision on the interplay between the Georgia Banking
Code's provisions prescribing the responsibility of bank directors and officers, OCGA §
7–1–490, and Georgia's common law business judgment rule. The Court found its
opinion in Loudermilk dispositive, stating:
A bank director or officer may violate the standard of care established
by OCGA § 7–1–490, even where he acts in good faith, where, with
respect to the process by which he makes decisions, he fails to
exercise the diligence, care, and skill of “ordinarily prudent men
[acting] under similar circumstances in like positions”… As we noted
in Loudermilk, “process” in this context refers to the mode by which
one deliberates and ascertains the facts relevant to the decision at
hand… As we also recognized, the level of diligence required is only
that “as would be exercised by ‘ordinarily prudent’ officers and
directors of a similarly situated bank.”
Click here to view the Court’s opinion. Click here to view our earlier article discussing
Loudermilk.
James-Bates-Brannan-Groover-LLP’s Financial
community banks throughout Georgia.
Institutions
Practice
represents
Community Banking Conference Launches at St. Louis Fed
The second annual Community Banking in the 21st Century conference kicked off
Tuesday at the Federal Reserve Bank of St. Louis. The Federal Reserve and
Conference of State Bank Supervisors conference will feature the release of the
results of the 2014 Community Banking in the 21st Century national survey as well as
remarks from policymakers.
ICBA Backs Bill Reducing S-Corp Tax Burdens
ICBA expressed support for provisions of a bill that
would provide more flexibility to Subchapter S
corporations. In a letter to House leaders, ICBA said
Sections 502 and 503 of the Jobs for America Act
(H.R. 4) would encourage growth and charitable
contributions.
The House recently passed the bill on a 253-163 vote
before Congress adjourned until after the November midterm elections.
Section 502 of the bill sponsored by House Ways and Means Chairman Dave Camp
(R-Mich.) would allow S-corps to access more capital by reducing the built-in gains
holding period following a C corporation conversion. Meanwhile, Section 503 would
permanently reform the basis adjustment for S-corp charitable contributions.
Additionally, Section 601 of the bill would make permanent 50 percent bonus
depreciation on qualified new equipment purchases. This bonus depreciation, which
expired at the end of 2013, would encourage business investment and job creation.
Is Multifamily Housing the Next Lending Bubble?
American
Banker
reports
the
apartment industry is riding high these days.
Sales volumes are at peak levels. Prices have
jumped to all-time highs. Capitalization rates
have dropped to long-time lows. And buoyed
by strong demand and easily accessible
funding, apartment construction has surged to
the highest levels since the 1980s. All these
high-water marks suggest an obvious question:
Is multifamily housing reaching a bubble?
This question is especially important for banks because they have quickly become
major players in the multifamily business. Since the start of 2013, banks have funded
82.5 cents of every new dollar, on net, loaned for multifamily housing, based on data
from the Federal Reserve. And since the second quarter of 2008, multifamily loan
volumes have ballooned 33% to an all-time high of $281 billion on bank balance
sheets, according to Federal Deposit Insurance Corp. filings compiled by
BankRegData.com. No other bank loan category has grown faster over that time
period; it’s not even close. Multifamily now comprises 3.5% of all outstanding bank
loans, the highest level since 1992.
There are several theories as to what’s driving the apartment industry’s hot streak —
but first, let’s look at the fundamentals. The apartment sector recovered quickly from
the last recession. The period between 2010 and 2012 was one of the best on record
for the industry in terms of net operating income growth. This growth was fueled by big
gains in both occupancy and rent prices and aided by very limited new supply. Since
then, new supply has ramped up. As of the second quarter of 2014, new supply levels
on a trailing 12-month basis are at decade highs. Yet demand for apartments remains
robust, tracking above supply. Occupancy hit a seven-year high of 95.7% in the
second quarter of this year.
FFIEC Releases 2013 HMDA Data
American
Banker
reports
the
Federal FinancialInstitutions Examination Council
released its annual Home Mortgage Disclosure Act
dataset on Monday for the 2013 calendar year. The
data provide a sweeping view of demographic and
financial trends that shaped the mortgage market
during 2013. It includes information on applications,
origination, purchases and sales of loans and other
mortgage activity.
The HMDA data covers nearly 14 million loan applications. Approximately 8.7 million
applications resulted in funded mortgages. The total number of originated loans
declined by 1.1 million, or 11%, from 2012. Refinance originations were down 23%,
while purchase mortgages increased 13%. According to the HMDA data, the share of
government-backed mortgages continued its steady decline in the aftermath of the
financial crisis. The share of FHA-insured, first-lien home purchases for familyoccupied properties was 24%, down from 31% in 2012, and well below a peak of 42%
in 2009. The share of VA-guaranteed loans, however, held steady at approximately
9%.
Lending to low-income and minority groups declined in 2013, according to the FFIEC.
The share of home purchase loans made to low- and moderate-income borrowers fell
by approximately five percentage points from the previous year, to 26%. Additionally,
black and Hispanic applicants experienced higher denial rates for conventional home
purchase loans in 2013 than white applicants. The HMDA data also provide an
illustration of a consolidating mortgage industry, as the number of active lenders
nationwide decreased by approximately 3%, to 7,190, from the previous year, primarily
due to mergers and acquisitions.
Obama Nominates Tonsager for Farm Credit Administration
President Barack Obama nominated Dallas Tonsager to be one
of the three board members of the Farm Credit Administration,
regulator of the Farm Credit System. Tonsager served as a
member of the FCA board from 2004 to 2009, but left to
become undersecretary for rural development at USDA from
2009 to 2013.
Tonsager will succeed Leland Strom, who was appointed to the board by President
George W. Bush in December 2006. The FCA chair is Jill Long Thompson, who was
appointed to the board by Obama in March 2010 and was designated chair and CEO in
November 2012. The second board member is Kenneth Spearman, who was appointed
by Obama in October 2009 to the balance of Tonsager’s term and was reappointed to
a full six-year term that expires on May 21, 2016.
Smaller Banks Can Offer More Via Technology
Atlanta Business Chronicle reports in the battle for
customers, technology is the great equalizer. Across
Georgia a growing number of community banks are
adopting technology that allows them to reach customers
far beyond their branches with tools and services that
match the big national chains. “More and more customers
are asking for text banking, mobile apps, mobile check
deposit, bill pay and the ability to locate ATMs and they want apps to do them,”
said Rob Braswell, President and CEO of Community Bankers Association of
Georgia. “They’re really searching for a complete solution and multiple ways to access
their accounts." The widespread adoption of tools such as remote check deposit for
both businesses and consumer customers and access to accounts through
smartphone apps, means customers no longer have to even visit a brick and mortar
branch. Read the full article featuring Jim Pope, KeyWorth Bank, Johns Creek; and
Frank Griffin, Flint Community Bank, Albany.
Charlie Harman Featured Lunch Speaker at the 4th Annual
Southeast Financial Workplace Law & Compliance Conference!
This year’s conference lunch speaker is Charlie Harman, one of
the nation’s most experienced and knowledgeable DC-insiders.
Formerly Chief of Staff for U.S. Senator Saxby Chambliss and staff
member with Senator Sam Nunn, Mr. Harman now oversees
government affairs for Emory University. Mr. Harman is the main
advocacy officer for Emory University and Emory Healthcare at the
federal, state, and local levels of government. He also directs a
staff of professionals who perform advocacy and local outreach with
government and community organizations. Please make plans now
to come hear Mr. Harman and other industry experts at this year’s
conference being held on Thursday-Friday, October 23-24, 2014 at the Georgian
Club in Atlanta.
Now, more than ever, managing change in the workplace requires a collaborative
executive management team developing a strategic human resource (HR) plan which
targets boundless compliance requirements, tomorrow’s technology, new social
relationships, risk management controls and people. Come join industry experts as
they engage the audience in a variety of hot topics such as risk management, culture
planning, the new business judgment rule, Obamacare, culture integration, threat
response, today’s diversity, and change management and much more. Additional
details regarding other speakers and topics will be available soon. Register Today!
Seating Limited! To register, click here or contact Jodi Swilley.
Thank you to our Sponsors!
Watch for the 2014 Georgia Community Bank Salary Survey
Results!
If you participated in the survey, be on the lookout for a complimentary copy of the
2014 Georgia Community Bank Salary 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 non-members may purchase the survey for $350. For more information,
contact Lindsay Greene at CBA.
FREE WEBINAR TODAY: Capital Market Solutions to Enhance
Core Banking Activity
ICBA Securities, the institutional broker/dealer of the ICBA, will present a webinar
September 24th exclusively for the state associations which endorse ICBA Securities,
as well as ICBA member banks. The webinar will feature Rick Redmond of Vining
Sparks who will describe a business-driven ALCO process and illustrate its use with
an interesting case study that involves implementation of a multi-step strategy.
Register today!
What You’ll Learn:
A review of ALCO’s function for a community bank
Strategy development for risk aversion
Discussion of live interest rate strategy opportunities
Integration of the process into the entire balance sheet
Wednesday, September 24, 2014 | 10:00 a.m. CDT
Presenter: Rick Redmond, CMA
FREE WEBINAR TODAY: Social Media & Compliance: What Bank
Communicators and Compliance Personnel Need to Know
Explore all sides of the evolving customer communication puzzle in this free webinar
and ensure that your bank is communicating effectively—and complying—through
social media channels. Sign up today!
Wednesday, September 24, 2014 | 3:00 p.m. EST
United Community Bank -- Blairsville
J. Frayne Bentley has joined the bank's Specialized Lending
Team as SBA Business Development Officer in the Buford office.
United Community Bank -- Blairsville
Adam Hart has joined the bank as Vice President, Regional Sales
Manager.
United Community Bank -- Blairsville
Padriac Robertson has joined the bank as the Savannah Market
Manager.
United Community Bank -- Blairsville
Jodi Lewis has joined the bank as Mortgage Loan Originator
Assistant.
United Community Bank -- Blairsville
Greg Wood has joined the bank as a Senior Mortgage Underwriter.
United Community Bank -- Blairsville
Sarah Arcanti joins the bank as a Loan Processor.
PrivatePlus Mortgage, a division of Private Bank of Buckhead
& Decatur
Carolyn Briner has joined the bank as a Vice President and
Mortgage Banker.
In Sympathy
CBA extends sympathies to our very own Peake Wilson, Vice President/Corporate
Events & Leadership Division / CBA Corporate Secretary, on the recent passing of her
father, Mr. H.L. (Tom) Thompson. Our sincere prayers will be with her and the family.
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.
OCTOBER 2014
6th Annual Deposit & Lending Compliance School
Monday-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 Session
Wednesday, 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
FDIC Consumer Protection Workshop (1 ½ days)
Wednesday- Thursday-Friday, October 29-30, 2014 – Idle Hour Country Club, Macon
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