2/23/2015 CBA Today eNewsletter - February 11, 2015 - Community Bankers Association of Georgia

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February 11, 2015

Events

CBA University

IndustryRepresentation

Legislative Updates

Member Services

About CBA

Conferences

Conventions

Schools

Webinars

Banker RegulatoryForums

Compliance

Superior Products...Significant Discounts

CBA Easy(k) Retirement Plan

A CBA EndorsedMember Company

FEATURED SPEAKERS

Thank you to our sponsors!

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Break

Banker Regulatory Forum Another Success in Macon! Macon continues to be a popular city to host CBA’s quarterly Banker Regulatory

Forum. Last Thursday, February 5th, the event was held at the Brickyard Golf Club fora capacity crowd. “We’re thrilled our Central and South Georgia members can nowmore conveniently attend these forums,” stated CBA President & CEO Rob Braswell.

Upcoming Events

Compliance Program I-II

February 18-19Brunswick

Commercial Lending

SchoolFebruary 23-27

Atlanta

2nd Annual Women inBanking Program

March 5Macon

Allowance for Loan &Lease Losses (ALLL)

March 5Atlanta

Connect with

CBA on Social

Media!

CBA Resources

2014 Georgia Financial Directory

Career Center

FDIC RegulatoryCalendar

Salary Survey

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“We're glad these forums are beneficial to bankers and regulators alike,” addedBraswell.

A very robust question and answer discussion was held between the panel ofregulators and the large crowd in attendance. Topics discussed included emergingpayments and virtual currencies, the recently updated federal BSA Compliance Guide,contingency funding plans, and appropriate regulatory expectations of communitybanks in several areas such as cybersecurity, vendor management and money servicebusinesses.

The next Banker Regulatory Forum will be held on Thursday, May 7, 2015, at CBAHeadquarters in Atlanta. To learn more and to register, please click here or contactRob Braswell or Peake Wilson – (770) 541-4490 / (800) 648-8215.

Special thanks to our sponsor

Scenes from the February 5th Banker Regulatory Forum

CBA to Host Day at the Capitol Today!Today, we are hosting our newly re-formatted Day at the

Capitol event on the 20th floor of the Sloppy Floyd Building,from 3:15 to 6:00 pm. We hope you’re able to join us, yourcolleagues, peers and Georgia’s Legislators.

In case you missed prior communications: The CBAmember registration fee is only $45/first person and$35/each additional person from the same bank/company.It’s not too late to register!

The event will open to everyone at 3:15 pm in the Empire Room, 20th Floor, WestTower, Sloppy Floyd Building where you’ll hear legislative updates and hot topicsfrom Georgia Department of Banking & Finance Commissioner, Kevin Hagler andfrom CBA’s General Counsel (the event’s exclusive sponsor), Dan Brannan,Partner, James-Bates-Brannan-Groover-LLP, and others. Promptly at 4:30 pm, joineveryone for heavy hors d’oeuvres, assorted beverages, networking and peerexchange. Get close to your legislators and let them know what concerns you. Theevent will adjourn at 6:00pm so you may enjoy the rest of the evening around Atlanta.

To learn more about this event, please contact the CBA office by dialing (770) 541-4490 / (800) 648-8215. You may also click here.

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We greatly appreciate the 2015 Day at the Capitol Exclusive Sponsor

We look forward to seeing you later today at the Sloppy Floyd Building! To learnabout event parking, click here.

OCC Tries to Ditch Clutter in Exam ReportsAmerican Banker reports the Office of theComptroller of the Currency is trying to send aclearer message to banks about potential redflags by clearing away some of the clutter in itsexam reports.

Until recently, the agency was grouping both high-priority matters "requiring attention"and lower-priority "recommendations" together in its reports. But officials said that wasleading to confusion. As a result, it said it is removing low-level recommendations fromreports so that banks can focus on more important MRAs.

"Sometimes the recommendations made it into the report of exam and we've decidedthat can be confusing and don't want to cloud our message in that regard," ThomasRamsey, core policy analyst at the OCC, said in an interview. "We want to put thingsthat the board must act on and leave recommendations as a side conversation."

Grovetta Gardineer, deputy comptroller for compliance operations and policy at theOCC, said removing the recommendations from the formal record of examination is"efficiency and communication clarification." But she said that examiners will still letbanks know about more minor items that should be addressed.

By removing recommendations from the examination report, the agency is sending amore direct message surrounding compliance deficiencies, which should allow banksto address those problems faster, she said. Click here to read the full article.

Harvard Study: Expand Community Bank Regulatory ExemptionsHarvard researchers released a study on the impact of new regulations on communitybanks. The working paper found that community banks serve a disproportionately largeamount of key segments of the U.S. commercial bank lending market. However, theirmarket share has declined, particularly since the passage of the Dodd-Frank Act, theresearch found.

The paper concludes with recommended reforms to expand community bankregulatory exemptions, improve existing regulations, and reform the regulatory processto mitigate unintended consequences. The study includes recommendations fromICBA’s Plan for Prosperity regulatory relief platform and used research from ContinuityControl.

Lending Club and Small Banks Pair Up on Consumer Loans PYMNTS.com reports a partnership between Lending ClubCorp. and a consortium of small U.S. banks wasannounced in a joint effort to reverse a trend where bankshave the market nearly cornered when it comes to makingloans to U.S. consumers.

The new network, which will see Lending Club partnered with 200 or so smallcommunity banks, will reportedly be called BancAlliance. Banks in the alliance areagreeing to buy a certain number of loans from Lending Club, which will vet borrowersfor their ability to repay. Borrowers may either come from Lending Club directly or maybe referred to the Lending Club site by their banks. Loans of less than $35K will notrequire collateral.

Big banks, with mass marketed credit cards and greater efficiencies due to size, willsee some of their competitive advantage drain to smaller players who no longer need toanalyze the loans on their own. Lending Club’s software, which uses publicly availabledata to build a customer’s credit and risk profile, will take over the loan analysis. Thatwill help small banks extend credit to borrowers with lower credit scores than theypreviously served and build a pool of those loans big enough that a few bad appleswon’t bring down the whole portfolio.

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In 1994, banks and thrifts with asset totaling less than $10 billion held the vast majorityof U.S. consumer loans at about 69 percent, a share that share had dropped to 19percent in 2004 and 9% in 2014.

Will Congress Exempt Small Banks from the Volcker Rule?American Banker reports support for fullyexempting community banks from the Volcker Rulecontinues to grow, but advocates fear it could bewaylaid by a larger fight in Congress over changes tothe Dodd-Frank Act.

Lawmakers are gearing up for a debate overmodifications to the 2010 financial reform law, and reliefefforts for smaller financial institutions are expected to be central to that fight. Severalprominent regulators including Federal Reserve Board Gov. Daniel Tarullo of theFederal Reserve and Comptroller of the Currency Thomas Curry have already throwntheir support behind efforts to carve out smaller institutions from Dodd-Frank's ban onproprietary trading. One of the law's lead authors, former Rep. Barney Frank, is alsobacking the effort.

To be sure, regulators released guidance with the Volcker Rule that exemptsinstitutions with fewer than $10 billion from meeting compliance requirements if theyaren't involved in any activities under the law, outside the trading of state and municipalbonds and related securities. Click here to read the full article.

CFPB Cites Customer Confusion in Setting Sights on Reverse

MortgagesAmerican Banker reports the Consumer FinancialProtection Bureau (CFPB) is raising concerns about thetransparency and clarity of reverse mortgages based onmore than a thousand complaints it received about theproduct.

An agency study released largely supports the oldcriticism that reverse mortgages are just as confusing toconsumers as they sound. The study examined three years of complaints filed at theagency by consumers who were struggling to make payments on a reverse mortgage,change the terms of the loan such as transferring debt to an heir, or prevent aforeclosure.

The CFPB suggested that the complaints show that servicers are not communicatingclearly or accurately with borrowers who are often confused by the terms of a reversemortgage. To help, the agency released an advisory for consumers addressing variousissues with reverse mortgages. Click here to read the full article.

Counting Down the Top Ten Reasons to Attend CBA's 2nd Annual

Women in Banking SeminarDeDe gives Reason #5 to attend this fun and informative event...

Number 5 Peake Videofrom CBA of GA

01:44

2/23/2015 CBA Today eNewsletter - February 11, 2015 - Community Bankers Association of Georgia

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Get registered TODAY to attend this phenomenal, fun, engaging and educational event!Get out of that box and come learn to challenge YOURSELF more as DeDe MurcerMoffett explains several ways to do this in a positive and energetic way! Be on thelookout every Wednesday to see even more reasons DeDe has for you to attend the2nd Annual Women In Banking seminar and don’t miss out on this fantastic programdesigned just for YOU! Click here to register or contact Peake Wilson at CBA for more

information: (770) 541-0379 / (800) 648-8215 or peake@cbaofga.com.

A very big, special “thank you” to our sponsors!

Continental BreakfastLuncheon

Speaker Co-Sponsor Speaker Co-Sponsor

Goodie Bags Sponsor

The Regulatory Focus on Interest Rate Risk: What to Expect and

How to Comply

Wednesday, February 18, 2015 | 10:00 a.m. - 11:30 a.m. CST

The continued low rate environment has put additional pressure on margins, enticingsome institutions to “reach for yield” in higher risk assets and causing regulators tofocus their attention on interest rate risk like never before. The various bankingagencies have put out several specific advisories on IRR in recent years, and the FDICjust released their latest Supervisory Insights publication that was devoted entirely toIRR. As the next Federal Reserve tightening cycle approaches, regulators arerequesting greater detail on assumptions development, non-maturity deposit analyses,stress tests, back-tests, independent reviews, model validation, and corporategovernance processes among others.

This webinar is designed to make you aware of the range of interest rate risk relatedissues you may face in future exams and will provide you with specific examples of thetypes of analysis that are necessary to comply with heightened IRR scrutiny.

Key takeaways from the Winter 2014 FDIC Supervisory Insights publication

that was devoted entirely to IRR

Review of the OCC’s recent IRR survey of more than 1,300 banks including

average statistics for Earnings at Risk, EVE, Betas, Decay Rates and Risk

Limits

What the FDIC says you should expect during your next IRR exam

A list of the FDIC’s most common findings and recommendations during IRR

exams

Description of the exact method examiners use to calculate NMD betas prior

to exams to determine if your assumptions are reasonable

Step-by-step guide to developing an in-house independent review of the

ALCO process

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Our recommended IRR Checklist of everything you should prepare for your

next exam

Click here to register for The Baker Group’s Regulatory Update webinar.Note: When registering, please list Paul Clanton as your Baker contact in one of therequired fields.

FREE Webinar from CBA EMC BankSmart: What You Need to

Know About Europay, MasterCard and Visa (EMV) Chip

Technology

Wednesday, March 4, 2015 | 10:00 AM EST

When should your Bank convert to chip-based credit and debit cards instead ofthe traditional magnetic stripe format? Countries all over the world have been usingEuropay, MasterCard, and Visa (EMV) chip technology for years, and the USA isready to catch up and eventually eliminate the existing magnetic stripe solution. Recent retail store data breaches have created an even stronger impetus to implementthis fraud resistant format. The technology may be just what your bank needs toreduce plastic card fraud losses. Before you decide, make sure you weigh thepotential benefits and challenges of conversion, along with procedures and typicalcosts.

For answers to your EMV questions, don’t miss this important update on EMVtechnology, as Brad Trowbridge of BankSmart gives you the facts about:

How EMV chip technology works

How much increased security can you expect

Adoption

EMV cost ambiguity

EMV conversion concerns

Solutions uniformity

Who should attend?CEO, CFO, Operations, Risk Management, Information Technology

Register by emailing btrowbridge@banksmartusa.com, your name, bank name,email address, location, and number of attendees. Please use “EMV Webinar” assubject line of your email.

ALLL.com: New Online Resource for Banking ProfessionalsBanking professionals have always been challenged with keeping up-to-date onregulatory requirements for the allowance for loan and lease losses (ALLL) calculation.Much of this guidance is open to interpretation and leaves institutions with ongoingquestions about how to best manage the calculation. ALLL.com aims to help bankersget answers to these questions by offering regulatory updates and guidanceinterpretations, calculation best practices, advice from industry experts, discussionforums, as well as whitepapers, webinars, how-to videos and articles. Learn more orvisit ALLL.com.

Don’t Miss the March 5th CBA ALLL Seminar in Atlanta with Sageworks – Click here toregister!

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Community & Southern Bank - AtlantaJoan Hill has been appointed Director of Treasury Services.

Heritage Bank of the South - AlbanyJames Salter has been promoted to Market President where hewill take the lead in growing the bank’s market share.

BrandMortgage, a division of BrandBankBraxton Moro has been added as a Mortgage Banker at theAtlanta location.

BrandMortgage, a division of BrandBankGeoff Stratton has been added as a Mortgage Banker at theAtlanta location.

Independence Bank of Georgia - Braselton Martha Brown has been named the bank’s Chief Operating Officer.

Independence Bank of Georgia - BraseltonLinda Murray has been promoted to Banking Officer.

In Memoriam

CBA extends sympathies to one of our very own, Briana Bronner, Marketing & MemberServices Assistant, on the recent passing of her father, Calvin Bronner. The familyand friends will be in our prayers.

Send Us Your News Please remember to include the Community Bankers Association of Georgia on thelist of recipients for announcements about promotions, new employees, specialrecognition your bank has received and/or events for your community. We would loveto share your news with your colleagues across the state! Please forward yourannouncements and photos to Shera Banks or Lindsay Greene.

Compliance Program I-II

"New Mortgage Integrated Disclosures: Effective August 2015"Wednesday-Thursday, February 18-19, 2015

The Holiday Inn, Brunswick

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Commercial Lending School (4½ days)Monday-Friday, February 23-27, 2015

CBA Headquarters, Atlanta

MARCH 2015

2nd Annual Women in Banking ProgramThursday, March 5, 2015 - Idle Hour Country Club, Macon

Allowance for Loan & Lease Losses (ALLL)Thursday, March 5, 2015 - CBA Headquarters, Atlanta

Consumer Lending School (4 ½ days)Monday-Friday, March 9-13, 2015 - CBA Headquarters, Atlanta

BSA Officer School Tuesday-Thursday, March 17-19, 2015 - Atlanta

Leadership Academy - Session I: Wednesday, March 11, 2015Topic: "Understanding the Role of a Community Bank Director & Much More"

Idle Hour Country Club, Macon

Workplace Law & Compliance ProgramWorkshop I: Thursday, March 12, 2015 - SIO Law Group Office, Atlanta

Workshop I: Thursday, March 19, 2015 - The Idle Hour Country Club, Macon

7th Annual Bank Directors & Executive Management ConferenceMonday, March 23, 2015 - Atlanta

Compliance Management School (New - 3 days)Tuesday-Friday, March 24-26, 2015 – Atlanta

2015 Webinars

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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