CBA Today eNewsletter - July 23, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - July 23, 2014 - Community Bankers Association of Georgia.html[10/27/2014 11:45:18 AM]

Scene from August 2013 Banker Regulatory Forum

July 23, 2014

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CBA to Host 3rd Quarter Banker Regulatory Forum in Macon!

Attention, community bankers! You are cordially invited to attend the 3rd quarter Banker Regulatory Forum being held Thursday, August 7th at the Idle Hour Country Club in Macon. One year ago, the CBA hosted this Forum in Macon for the first time ever to a huge audience. The Forum continues to grow in value and popularity, and we expect an impressive turnout again. Everyone loves the open dialogue and exchange of viewpoints with the regulators in a comfortable, relaxed setting. The agency representatives have mentioned their preference for the new format, as well. They truly want to hear from YOU!

We have posed a couple of topical questions to the regulators in advance; however, we encourage you to come prepared to ask questions and get answers for the issues that are important to you.

Please email CBA if you would like to attend, or you may click here to register online or email Peake Wilson. Remember, your attendance is COMPLIMENTARY and lunch is provided! For more details, click here.

Announcing the 2014 Georgia Community Bank Salary Survey - Free for participating banks!Community Bankers Association of Georgia (CBA) is pleased to partner with associate member Nichols, Cauley & Associates, LLC to offer the 2014 Georgia Community Bank Salary Survey.

The Salary Survey is a compilation of current salaries and general benefits for prevalent positions within Georgia’s community banks. The survey includes information on salary, bonus or additional compensation, qualified plans and additional benefits. Banks will be also be categorized by asset size as well as whether or not they are in Metro-Atlanta.

All CBA member banks are invited to participate in the survey, and those participating will receive a complimentary copy of the survey report. Non-participating member banks are able to purchase the survey for $250 and the non-members may purchase for $350.

CBA will email a link to all CEOs on Thursday, July 24th and the survey should be completed no later than August 31, 2014.

Rob Braswell, President & CEO of Community Bankers Association of Georgia commented, “We are delighted to offer this valuable information to our members. I think you’ll find the survey to be streamlined and easy to use. What’s more, participating banks can receive the survey at no cost and we anticipate providing the results by September 15, 2014, just in time for budgeting. The salary survey can be a vital tool when determining competitive pay and benefits for both employee recruitment and retention.”

Upcoming Events

Workplace Law & Compliance Program

Workshop IIJuly 24 Macon

2014 Mastering the Home Mortgage

Disclosure Act (HMDA)July 24Macon

Executive and Director Compensation Trends

& Best PracticesJuly 29Atlanta

CBA Resources

2014 Georgia Financial Directory

Career Center

FDIC Regulatory Calendar

Salary Survey

CBA Today eNewsletter - July 23, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - July 23, 2014 - Community Bankers Association of Georgia.html[10/27/2014 11:45:18 AM]

For more information, contact Lindsay Greene at CBA.

FDIC Issues S-Corp Guidance on Basel III Capital BufferThe FDIC issued guidance to help relieve many community banks structured as Subchapter S corporations from rules that would limit their ability to raise capital. The guidance encourages community banks to request case-by-case exceptions to the Basel III capital conservation buffer. This curtails capital distributions, such as shareholder dividends, when regulatory capital levels fall below preset thresholds.

The Basel III capital rules include a capital conservation buffer that prohibits or limits the amount of dividends banks can pay when their risk-based capital ratios fall below certain thresholds. Because income taxes are paid directly by S-corp shareholders, situations could arise in which shareholders have a material income tax obligation on taxable income earned by their bank but the bank is unable to pay enough dividends to meet the shareholders’ tax obligation.

The FDIC’s guidance establishes criteria under which S-corp banks would be deemed to qualify for an exception from the buffer, such as highly rated institutions and those with sufficient capital to pay out dividends. The agency said that absent significant safety-and-soundness concerns about the requesting bank, it generally would expect to approve exception requests by well-rated S-corp banks that are limited to the payment of dividends to cover shareholders' taxes on their portion of an S-corporation's earnings.

In a February letter to the federal banking agencies, ICBA raised concerns about the impact of the buffer on S-corps. The association said the capital conservation buffer would limit the ability of many S-corp community banks to raise capital and serve their communities. In its letter and in meetings with agency staff, ICBA asked regulators to allow community banks to distribute at least 35 percent of their reported net income for a reporting period.

While the FDIC guidance does not provide a total exemptionfrom the capital conservation buffer, ICBA appreciates the FDIC’s attention to S-corp community bank concerns. Read FDIC Guidance.

Learn more about this subject through a CBA Webinar: "Countdown to Basel III: Deadline for Community Bank Compliance: January 1, 2015 "- September 11, 2014.

Bankers Spoiling for Hill Fight With Farm Credit SystemAccording to American Banker, bankers are hoping to build on recent momentum in their efforts to reform the Farm Credit System. Some lawmakers have recently suggested hosting an oversight hearing on the Farm Credit Administration, the system's regulator, or have vowed to investigate the soundness of the government-sponsored enterprise. A pair of banking trade associations hope to seize on those opportunities to discuss their allegations of Farm Credit abuses.

"We did a survey of bankers that said the Farm Credit System was using its GSE advantages to underprice them in the marketplace and to take away their best customers while ignoring the young, small farmers," said Mark Scanlan, senior vice president of agriculture and rural policy at the Independent Community Bankers of America. "They are taking the largest and best loans from community banks, and that destabilizes their portfolios and leaves banks with fewer borrowers and more highly leveraged borrowers. That raises the risks for community banks."

Sens. Tom Harkin, D-Iowa, and Charles Grassley, R-Iowa, raised similar concerns in a

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CBA Today eNewsletter - July 23, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - July 23, 2014 - Community Bankers Association of Georgia.html[10/27/2014 11:45:18 AM]

letter to Agriculture Committee Chairman Debbie Stabenow this month. A review of the system, especially its regulator, is overdue, they said. Click here to read the full article.

How Smaller Banks Can Avoid Volcker Rule HeadachesBankThink reports the Volcker Rule was designed to curb big banks' ability to engage in risky and speculative securities trading activities in an effort to prevent future U.S. government bailouts of financial institutions deemed too big to fail. This rationale disappeared when Congress and regulators expanded the rule to include banks of all sizes. Under the final statute and regulations, a small community bank is subject to the same proprietary trading and hedge fund ownership restrictions as a holding company with over $1 trillion in assets. In addition, certain extensive and detailed recordkeeping requirements apply to banks with total assets far below any traditional notion of a large financial institution.

According to BankThink, regulators responded to a perception that financial oversight was "too cold" in the run-up to the financial crisis by moving to a system that is "too hot" in their efforts to implement Dodd-Frank. Especially with respect to small and midsize banks, the regulatory pendulum has swung too far. Nevertheless, the compliance deadline is looming. We suggest that small and midsize banks take three immediate steps to implement a properly tailored Volcker Rule compliance program that is "just right" for their business objectives and compliance budgets. Click here to read the full article.

Community Banks Could Be Walloped by New LIBOR Licensing FeesICBA is investigating a new $16,000 annual fee that apparently will be charged to all banks and other financial institutions that make reference to the LIBOR index in their loan or investment documents.

The licensing fee is being assessed by the Intercontinental Exchange, which purchased the rights to LIBOR following the British Bankers Association’s LIBOR manipulation scandal.

ICBA will make several recommendations to ICE in an effort to protect community banks from the harsh impact of the new usage fees and licensing policies, which went into effect July 1. Read LIBOR FAQs. Read Licensing FAQs. Read More on Fees.

Top Security Threats for Banks – And How to Address ThemBankTech reports financial institutions have many options when it comes to protecting customer transactions, including advanced software products able to pass stringent security standards to prevent data loss. But like any other business, banks’ chief vulnerability point from an operational standpoint is their people, particularly in the bring-your-own-device (BYOD) era.

Banks are hard-pressed to control the business use of personal devices and monitor security practices for an increasingly mobile workforce, but there are steps managers can take to rein in the risks. Here's the number one top security threats banks and other businesses face and ideas on how managers can mitigate them with better cyber security practices:

1. Weak passwords. Despite many advances in security technology, the password is still the first line of defense for most bank PCs, laptops, and personal mobile devices that are used for business. Unfortunately, many employees still use easy-to-guess passwords, such as their job titles, children or pet’s names, birth years, and other personal information that anyone can find on sites like Facebook.

Bank managers should educate employees on proper password protection methods, such as creating memorable yet difficult-to-crack passwords. One proven technique is

CBA Today eNewsletter - July 23, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - July 23, 2014 - Community Bankers Association of Georgia.html[10/27/2014 11:45:18 AM]

Jaime DominguezDirector of Strategy for Retail Banking

ChannelsFiserv

to use a combination of upper and lowercase letters, symbols, and numbers. Strong passwords incorporating those elements can also be easy to remember if the employee uses symbols and numbers that resemble letters in a simple password, such as “Fri$b33” for “Frisbee.”

Click here to read about the other threats.

Learn How to Use Technology in the Branch to Enhance the Customer Experience at the Annual Meeting & Trade Show!

We're rolling out the red carpet for CBA's 46th Annual Meeting & Trade Show being held September 17-21, 2014, in Amelia Island, FL! Hear Jaime Dominguez, Director of Strategy for Retail Banking Channels for the Bank Solutions division at Fiserv, present, "Coming Attractions - Beyond Branch Banking to Experience Banking: Evolving Your Branch."

The next generation of banking is not about technology replacing the brick and mortar branch. It's about using technology in the branch to enhance the customer experience while maintaining your brand. This session will focus on what retail banking decision makers need to think about as they transform their branches to meet the client expectations of the new era.

Jaime is responsible for driving strategies across several solution categories, including analysis and planning; sales and marketing; servicing and fulfillment; and customer experience for both bank staff and consumers. Jaime has more than 15 years of consulting, services, and IT experience. He began his career with Electronic Data Systems (EDS) and has been with Fiserv for eight years. His knowledge and practical experience provides great value to organizations looking to deliver an excellent customer experience in a digital banking environment.

Register to attend the convention today! For more details, view the convention brochure. Click here to reserve your room for the 46th Annual Meeting & Trade Show. The deadline to receive the group rate is Monday, August 18, 2014, or when the CBA block is full. Reserve today! As always, spouses of fully registered delegates/exhibitors are free.

Thank you to our current sponsors!

CBA Today eNewsletter - July 23, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - July 23, 2014 - Community Bankers Association of Georgia.html[10/27/2014 11:45:18 AM]

July 25th Hotel Reservation Deadline Extended for the Georgia Bank Directors’ College and FDIC Workshop & the IT Security Conference - Are You Registered?

5th Annual Georgia Bank Directors’ College and FDIC WorkshopMonday, August 18, 2014 | The Westin Savannah Harbor Golf Resort & Spa

9th Annual Information (IT) Security ConferenceThursday –Friday, August 14-15, 2014 | The Westin Savannah Harbor Golf Resort &

Spa

The CBA invites you to attend ONE or BOTH of these informative one-of-a-kind programs designed specifically for community bankers. The deadline to receive the CBA discounted hotel room at the Westin Savannah for both of these programs has been extended to Friday, July 25, 2014 or until the room block is full. To make your hotel reservation, please call the hotel at (800) 228-3000. Be sure to mention which program you will be attending to ensure you receive the appropriate room rate. Continuing Professional Education credits are available to participants. Click here to register for the 5th Annual Bank Directors College & FDIC Workshop. Click here to register for the 9th Annual Information Technology (IT) Security Conference. To learn more about the hotel, visit www.westinsavannah.com.

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.

Checklist: How to Use Stress Testing Results

to Your AdvantageAs stress testing has increasingly become a focus of regulatory guidance, it is important to understand its purpose and methodologies, but also how to use the

CBA Today eNewsletter - July 23, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - July 23, 2014 - Community Bankers Association of Georgia.html[10/27/2014 11:45:18 AM]

findings to your advantage. There are five ways to use stress testing results to benefit your bank, including warding off risk, improving risk ratings and ensuring adequate capital levels. Access the full checklist. Submitted by CBA Endorsed Member Billy Burnet, Sageworks.

FREE Webinar from CSIJoin the discussion of CSI's Managed Services third-annual survey findings for financial institutions using cloud technology and IT outsourcing. Attend this webinar to learn how your financial institution stacks up with industry trends.

2014 Cloud Technology & IT Outsourcing Trends: Results RevealedJuly 29, 2014

3:00 PM - 4:00 PM CDT

PrivatePlus Mortgage, a division of Private Bank of Buckhead & DecaturAlisa Curry has been named Mortgage Processor.

PrivatePlus Mortgage, a division of Private Bank of Buckhead & DecaturKelly Boque has been named Mortgage Processor.

PrivatePlus Mortgage, a division of Private Bank of Buckhead & DecaturTerra Lambright has been named Mortgage Processor.

PrivatePlus Mortgage, a division of Private Bank of Buckhead & DecaturNicki Wynn has been named Quality Control & Compliance Officer.

State Bank & Trust Company -- AtlantaDon Powell has been named Senior Mortgage Lender.

State Bank & Trust Company -- AtlantaJohn Silva has joined the bank as Mortgage Sales Manager.

State Bank & Trust Company -- AtlantaMatt Campbell has joined the bank as a Mortgage Lender.

CBA Today eNewsletter - July 23, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - July 23, 2014 - Community Bankers Association of Georgia.html[10/27/2014 11:45:18 AM]

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

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

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

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

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

5th 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

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 - Tifton Thursday, September 25, 2014 - Savannah

CBA Today eNewsletter - July 23, 2014 - Community Bankers Association of Georgia

CBA Today eNewsletter - July 23, 2014 - Community Bankers Association of Georgia.html[10/27/2014 11:45:18 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