Department of Banking and Finance bulletin, June 30, 2004

. . . .BULLETIN. . . .BULLETIN. . . .BULLETIN. . . .BULLETIN. . . .

STATE OF GEORGIA

DEPARTMENT OF BANKING AND FINANCE

2990 Brandywine Road, Suite 200 Atlanta, Georgia 30341-5565

DAVID G. SORRELL, COMMISSIONER

Phone: (770) 986-1633

Fax: (770) 986-1655

Internet Address: http://www.gadbf.org/
June 30, 2004 The following is a summary of official action taken on applications by State Financial Institutions under Chapter 7-1 of the Code of Georgia and petitions for Certificate of Incorporation of Financial Institutions and other matters of interest during the month of June 2004.
In This Issue:
Notice Regarding Guidance on Single Premium Credit Related Insurance on Mortgage Loans Important Announcement for Georgia State-Chartered Credit Unions Money Service Businesses - Overview & BSA/AML Issues for Financial Institutions Reminder Regarding Distribution of Department Bulletins, Notices, and Important Announcements to Regulated Financial Institutions
1

APPLICATIONS FOR NEW FINANCIAL INSTITUTION

FINANCIAL INSTITUTION Hamilton State Bank 6323 Grand Hickory Drive Suite 100-G Braselton, GA 30517 Gwinnett County

CAPITALIZATION APPROVAL DATE

$ 10,000,000

Pending

BEGIN BUSINESS DATE

Georgia Trust Bank 2685 Mall of Georgia Boulevard Buford, GA 30519 Gwinnett County

$ 10,000,000

Pending

American United Bank 1800 Old Norcross Road Lawrenceville, GA 30044 Gwinnett County

$ 10,000,000

Pending

State Bank and Trust Company 321 Fullington Avenue Pinehurst, GA 31070 Dooly County

$ 7,000,000

Pending

Community Bank of Rockmart 1400 Nathan Dean Parkway Rockmart, GA 30153 Polk County

$ 6,000,000

Pending

Tifton Banking Company 729 West Second Street Tifton, GA 31974 Tift County

$ 7,000,000

06-14-2004

Local Bank of Middle Georgia 306-308 North Davis Drive Warner Robins, GA 31093 Houston County
PREVIOUS NAME HeritageBank of the South

$ 7,000,000

06-28-2004

FINANCIAL INSTITUTION CONVERSIONS

CONVERTED TO HeritageBank of the South

APPROVAL DATE Pending

Albany

Dougherty County

EFFECTIVE DATE

2

PREVIOUS NAME The Gordon Bank

CONVERTED TO The Gordon Bank Gordon Wilkinson County

APPROVAL DATE 06-23-2004

EFFECTIVE DATE

APPLICATIONS TO ESTABLISH A BRANCH OFFICE

FINANCIAL INSTITUTION Integrity Bank Alpharetta

BRANCH OFFICE Cobb Branch Office 1650 Cumberland Parkway

APPROVAL DATE
04-14-2003

Smyrna, GA 30080

Cobb County

BEGIN BUSINESS DATE
06-21-2004

Flag Bank Atlanta

Glenda Trace Branch Office 90 Glenda Trace, Suite M Atlanta, GA 30265 Fulton County

06-07-2004

SunTrust Bank Atlanta

Acworth Branch Office 3340 Cobb Parkway Acworth, GA 30101 Cobb County

06-23-2004

SunTrust Bank Atlanta

Kent Square Branch Office 220 South Main Street Blacksburg, VA 24060 Montgomery County

Pending

SunTrust Bank Atlanta

Julington Creek Branch Office 2730 Race Track Road Jacksonville, FL 32259 Duval County

06-21-2004

SunTrust Bank Atlanta

La Plata Safeway Branch Office 40 Shining Willow Way La Plata, MD 20646 Charles County

06-18-2004

SunTrust Bank Atlanta

The Villages of Sumter Branch Office 2365 Parr Drive The Villages, FL 32162 Sumter County

06-21-2004

3

FINANCIAL INSTITUTION SunTrust Bank Atlanta
Hamilton State Bank (I.O.) Braselton
Georgia Trust Bank (I.O.) Buford
Community Bank & Trust Cornelia
Main Street Bank Covington
Douglas County Bank Douglasville
Farmers & Merchants Bank Eatonton
Southern Community Bank Fayetteville

BRANCH OFFICE James Wood Branch Office 1738 Amherst Street Winchester, VA 22601 Frederick County
Hall County Branch Office 441-A E. E. Butler Parkway Gainesville, GA 30501 Hall County
Kennesaw Branch Office 3401 George Busbee Parkway Kennesaw, GA 30144 Cobb County
BancoLatino Branch Office 1216 Aviation Boulevard Suite 116 Gainesville, GA 30501 Hall County
Crossville Road Branch Office 525 East Crossville Road Roswell, GA 30075-3034 Fulton County
Dallas Branch Office 519 Hardee Street Dallas, GA 30132 Paulding County
Lake Oconee Parkway Branch Office 1011 Lake Oconee Parkway, NE Eatonton, GA 31024 Putnam County
Kroger Store #413 Branch Office 10375 Tara Boulevard Jonesboro, GA 30236 Clayton County

4

APPROVAL DATE
Pending

BEGIN BUSINESS DATE

Pending

Pending

12-09-2003

06-04-2004

02-21-2003

06-14-2004

03-24-2004

06-01-2004

06-08-2004

10-09-2003

06-21-2004

FINANCIAL INSTITUTION SunTrust Bank Atlanta

APPLICATIONS TO CHANGE LOCATION

CHANGE LOCATION OF Rouse Tower Branch Office From: 6060 Jefferson Avenue Newport News VA 23666 To: New Market South Branch Office 5211 West Mercury Boulevard Hampton VA 23605

APPROVAL DATE EFFECTIVE DATE

06-03-2004

06-14-2004

Appalachian Community Bank Ellijay

Blue Ridge Branch Office From: 2835 Scenic Drive
Blue Ridge GA 30513 Fannin County To: 150 Orvin Lance Connector Blue Ridge GA 30513 Fannin County

06-14-2004

PROPOSED NAME Alcovy Banking Company

APPLICATIONS FOR RESERVATION OF A NAME

COUNTY Walton County

APPLICANT Mr. John B. Kline Principal

Mauldin & Jenkins, LLC

P. O. Box 724888

Atlanta, GA 31139-1888

Enterprise State Bank
FINANCIAL INSTITUTION (SURVIVOR) Bank of North Georgia Alpharetta

Wilcox County

Mr. Michael N. White Attorney Martin Snow, LLP P. O. Box 1606 Macon, GA 31202

FINANCIAL INSTITUTION MERGERS
MERGED INSTITUTION Mountain National Bank Tucker

APPROVAL DATE
06-25-2004

EFFECTIVE DATE

Bank of North Georgia Alpharetta

Charter Bank & Trust Co. Marietta

06-25-2004

Atlanta City Employees Credit Union Atlanta

Wheat Street Church Federal Credit Union Atlanta

06-15-2004

Georgia Federal Credit Union Atlanta
5

Educator's Credit Union Athens

06-09-2004

FINANCIAL INSTITUTION (SURVIVOR) United Community Bank
Blairsville

MERGED INSTITUTION 1st Community Bank Fairburn

APPROVAL DATE
05-27-2004

EFFECTIVE DATE
06-01-2004

Gainesville Bank & Trust Gainesville

Lumpkin County Bank Dahlonega

Pending

Gainesville Bank & Trust Gainesville

Southern Heritage Bank Oakwood

Pending

APPLICATIONS TO BECOME A BANK HOLDING COMPANY AND/OR TO ACQUIRE VOTING STOCK OF A FINANCIAL INSTITUTION

BANK HOLDING COMPANY

TO ACQUIRE

APPROVAL DATE

FORMATIONS Piedmont Bancshares, Inc. Atlanta, GA

Piedmont Bank of Georgia Atlanta, GA

06-28-2004

PCNB Bancshares, Inc. Bremen, GA

Peoples Community National Bank (IO) Bremen, GA

Pending

Flint River Bancshares, Inc. Camilla, GA

Flint River National Bank (IO) Camilla, GA

06-09-2004

NSB Holdings, Inc. Macon, GA

New Southern Bank Macon, GA

06-09-2004

ACQUISITIONS SunTrust Banks, Inc. Atlanta, GA

National Commerce Financial Corporation Memphis, TN

Pending

ABC Bancorp Moultrie, GA

Citizens Bank Wakulla Crawfordville, FL

Pending

Upson Bankshares, Inc. Thomaston, GA
CITY Loganville Lawrenceville Kennesaw Decatur Garden City Atlanta
6

The First National Bank of Polk County Cedartown, GA

06-08-2004

CHECK CASHER LICENSES ISSUED

APPLICANT NAME Choi, Jae-Wang EK Financial Services, LLC JDW Financial Services, Inc. Lakewood Avenue Pawn Shop, Inc. Port City Pawn Shop, Inc. Premium Enterprise, Inc.

TRADE NAME EZ Check Cash EK Financial Services JDW Financial Services, Inc. Candler Road Pawn Shop Port City Pawn Buy Low Supermarket

MONEY TRANSMITTER
ITC Financial Licenses, Inc. West Point, GA

MONEY TRANSMITTER LICENSES ISSUED
APPROVAL DATE 06-09-2004

NOTICES

Notice Regarding Guidance on Single Premium Credit Related Insurance on Mortgage Loans
The Department issued guidance on October 3, 2003 regarding the avoidance of predatory or abusive mortgage lending practices. Included in these guidelines were certain guidelines related to the use of single premium credit related insurance on mortgage loans. It was indicated in this guidance that the Department would reassess our position on this product by June 30, 2004.
It was our observation that certain structural barriers to the use of monthly payment products were in place, including data processing impediments and insurance regulatory restrictions on the use of monthly payment products on balloon payment loans. These structural barriers remain in place and will continue to be monitored.
The guidelines established in our Memorandum of October 3, 2003 will continue to remain in place, until further notice. Banks that offer this product should continue to follow the best practices outlined in our Memorandum and should comply with the provisions of HOEPA in offering this product to bank customers.
These guidelines do not constitute an endorsement of this product by the Department of Banking and Finance. We do note from our conversations with financial institution management that customers continue to request these products in cases where alternative products may not be available to the customer due to underwriting and other issues.
If there are any questions concerning these issues, please contact Senior Deputy Commissioner George A. Reynolds at (770) 986-1629.

Important Announcement for Georgia State-Chartered Credit Unions
On June 11, 2004, the Department issued an important announcement that applies to Georgia state-chartered credit unions' fields of membership. The announcement and the related Attorney General Opinion can be found on the Department's website at: http://www.gadbf.org/pdfdoc/CUAnnouncement6112004.pdf.
Money Service Businesses - Overview & BSA/AML Issues for Financial Institutions
The Department has made available on its website an MS PowerPoint presentation that provides the following information:
z Discusses the Department's responsibilities for supervising and licensing certain Money Service Businesses (MSBs) - i.e. check cashers, check sellers, and money transmitters.
z Provides an overview of the Georgia laws & regulations governing MSBs. z Discusses how financial institutions can assist the Department through their assessment of risk and enhanced
due diligence activities. z Provides general guidance in regards to assessing these types of customers. 7

The presentation can be found on the Department's website at: http://www.gadbf.org/docs/MSBPresentation2004.ppt.
Reminder Regarding Distribution of Department Bulletins, Notices, and Important Announcements to Regulated Financial Institutions
Because the Department's bulletins, notices and important announcement are only sent out electronically, it is very important that the Department obtains and keeps current e-mail addresses on the financial institutions it regulates so that this information can be communicated timely and efficiently. E-mail addresses would also be utilized in the event that the Department has to invoke its Business Resumption / Disaster Recovery Plan. E-mail addresses are obtained for the sole purpose of communicating with regulated institutions not for sharing outside of the Department. If you have not already provided the Department with a current and valid e-mail address for monthly bulletin alerts, special bulletins, and other important announcements, please e-mail the Corporate Division at DBFCORP@dbf.state.ga.us and provide your institution's name, city, state, e-mail address, and a phone number at which you can be contacted. BACK TO TOP
8