Financial institutions today, May 31, 2005

FIT

Dept. of Banking and Finance 2990 Brandywine Road, Suit 200
Atlanta, GA 30341-5564 (770) 986-1633 Phone (770) 986-1655 Fax http://www.gadbf.org David G. Sorrell, Commissioner

financial institutionS today
news about all dbf regulated entities

May 31, 2005

Monthly Bulletin #5

PHISHING ATTACKS TARGETING FINANCIAL INSTITUTIONS
Phishing (pronounced fishing) e-mail messages have targeted countless consumers this year, especially customers of larger, high profile banks. The volume of phishing messages has increased tremendously this year.
We were notified by our regulatory contact at the Conference of State Bank Supervisors (CSBS) on May 26, 2005 of the following announcement received from Financial Services ISAC (FS-ISAC):
RE: High Volume of Phishing Attacks Targeting Financial Institutions over the Last 48 Hours
Websense Security Labs has reported to the Anti-Phishing Working Group a very high volume of financial institutions being targeted for phishing attacks over the last 48 hours. Websense reports seeing more than 10 new targets in the last 24 hours alone, most of which are smaller credit unions.

In this Issue:
o Phishing Attacks Targeting
Financial Institutions o Department Amends Policy
Statement on Purchase of Bank Owned Life Insurance (BOLI) Products by Georgia State-Chartered Banks. o Request for Approval to Retain Bank Real Estate or Form 19-24 o Recent Federal Interagency Guidance for Banks and Credit Unions.
o
o The Georgia Department of Banking and Finance Joins Information-Sharing Campaign to Improve Bank Secrecy Act Enforcement.

The FS/ISAC Security Operations Center has alerted the specific member institutions being targeted.

Visit our website at http://www.gadbf.org/phishing_scams.htm for additional information on PHISHING LEADS TO IDENTITY THEFT and links to guidance issued by federal regulatory authorities.

Department Amends Policy Statement on Purchase of Bank Owned Life Insurance (BOLI) Products by Georgia State-Chartered Banks
The Department has amended its Policy Statement on the purchase of BOLI products by Georgia state-chartered banks. The most significant change to the existing Policy Statement was to add a reference to the Interagency Policy Statement on the Purchase and Risk Management of Life Insurance (FDIC FIL-127-2004). On December 7, 2004, an Interagency Policy Statement was issued to provide guidance for institutions purchasing life insurance. This new Statement is more detailed than OCC Bulletin 2000-23, which the Department had previously adopted, but the banker's responsibilities with regard to the purchase of life insurance remain basically the same. All changes to the Department's Policy Statement can be found in the Department's Statement of Policies which is available on our website at: http://www.gadbf.org/pdfdoc/statpoli.pdf.
Request for Approval to Retain Bank Real Estate or Form 19-24
The Department has recently updated Form 19-24 on our Internet site. Please discard your old forms. The link is: http://www.ganet.org/dbf/bank_related.html.
If the link does not work, go to www.gadbf.org, select Forms and Applications, then Bank-Related and cursor down to Form 19-24.
We encourage banks and credit unions to take this opportunity to visit the Forms and Applications section of the Department's Web site to ensure that your forms and applications are current.
Recent Federal Interagency Guidance for Banks and Credit Unions
The FDIC, Federal Reserve, OCC, OTS, and NCUA have all signed onto a joint interagency statement addressing managing the credit risks of home equity lines of credit. FDIC-PR-44-2005 can be accessed at:
http://www.fdic.gov/news/news/press/2005/pr4405.html
In addition, FDIC Financial Institution Letter (FIL) 27-2005 addresses bank and credit union guidelines for developing response programs when customers' accounts have been compromised. This guidance has been signed by the five FFIEC (Federal Financial Institutions Examination Council) federal banking, thrift, and credit union regulators. This letter advises banks and credit unions to notify their primary federal regulator under certain conditions. The Department requests that Georgia statechartered banks and credit unions copy the Department on any such federal regulator notice.
This FIL can be accessed at: http://www.fdic.gov/news/news/financial/2005/fil2705.pdf.
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High points include Parity for State-Chartered Financial Institutions, Membership in Credit Unions, and Bonding Requirements for Mortgage Lenders and Brokers.
Atlanta, GA, April 5, 2005: Governor Sonny Perdue signed Senate Bill 82 today. SB 82 is the Department's Housekeeping bill and contains provisions that modernize, clarify, and correct Official Code of Georgia Title 7. These changes should allow the Department's regulated entities to operate efficiently and should protect the consumer. Some of the major changes are:
Parity. OCGA Section 7-1-61 provides parity for state-chartered financial institutions in the event a Georgia law is preempted by a federal agency for federally chartered institutions. The Commissioner of the Department of Banking and Finance (DBF), after a determination has been made that the law has been preempted, may declare the law to be preempted for state-chartered financial institutions.
Credit Union Membership. OCGA Section 7-1-634 clarifies the bylaw amendment process for credit unions seeking to change their field of membership. This section allows a field of membership to contain multiple groups of persons, each with a common bond.
Financial requirements for mortgage licensing and registration. OCGA Section 7-1-1003.2 creates amendments to better protect consumers and allow DBF to be more efficient. Mortgage brokers and lenders may satisfy the bond requirement in two ways: 1) a surety bond (brokers must have a $50,000 bond and lenders must have a $150,000 bond); or 2) a letter of credit from a federally insured financial institution.
The Georgia Department of Banking and Finance Joins Information-Sharing Campaign to Improve Bank Secrecy Act Enforcement
Atlanta, GA, June 1, 2005: Georgia Department of Banking and Finance Commissioner David Sorrell signed documents today outlining a protocol for sharing information with federal banking agencies to streamline enforcement of the Bank Secrecy Act.
Commissioner Sorrell said, "These agreements accomplish something that is unprecedented." The documents highlight the recognition by the Financial Crimes Enforcement Network (FinCEN) and the Internal Revenue Service (IRS) of the vital role that Georgia plays to prevent money laundering and terrorist financing through both banks and money service businesses (MSBs).
Commissioner Sorrell said, "They are two-way information sharing agreements between our state and federal entities that will help us all better utilize resources in our mission to ensure that the financial companies we supervise are fulfilling the anti-money laundering requirements of the Bank Secrecy Act. The agreements provide the mechanism for increased communication, coordination, and enforcement, leading to more effective compliance for banks and MSBs."
According to Conference of State Bank Supervisors (CSBS) Chairman John Allison, CSBS, along with the Money Transmitter Regulators Association (MTRA) and the National Association of State Credit Union Supervisors (NASCUS), has been working diligently over the past several months with FinCEN and the IRS to produce two model memoranda of understanding to achieve a coordinated approach by leveraging
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intelligence. Besides the memoranda, CSBS and federal banking agencies have drafted a letter of agreement providing for more efficient and effective processing of jointly held information to FinCEN. Allison is Mississippi Commissioner of Banking and Consumer Finance. Allison commented that CSBS's goal is to obtain signatures from all 50 states and the U.S. territories to cement and begin this working relationship with both FinCEN and the IRS.
"We commend the Georgia Department of Banking and Finance for joining this vital state-federal partnership," he said. "Not only will these agreements provide specific analysis reports to the state regulators, but also FinCEN will be receiving and analyzing additional data provided by the states. As each agency will be receiving more information through this process, BSA examinations should be more efficient and supervisory agencies will have the ability to provide better guidance to the industry."
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 May 2005.

FINANCIAL INSTITUTION
SunTrust Bank
Atlanta

From: To:

APPLICATIONS TO CHANGE LOCATION

CHANGE LOCATION OF

APPROVAL DATE

Arlington Gateway Branch Office

03-21-2005

900 North Taylor Street

Arlington VA 22203

Arlington County

901 North Glebe Road

Arlington VA 22203

Arlington County

EFFECTIVE DATE
05-23-2005

PREVIOUS NAME Dorsey State Bank Abbeville

NOTICE OF CHANGE IN NAME
NEW NAME Enterprise Banking Company

APPROVAL EFFECTIVE

DATE

DATE

05-24-2005 05-24-2005

SouthBank Woodstock

Security Bank of North Metro

Pending

FINANCIAL INSTITUTION MERGERS

FINANCIAL INSTITUTION

APPROVAL

(SURVIVOR)

MERGED INSTITUTION

DATE

Etowah Valley Federal Credit Union

All Star Credit Union

02-16-2005

Cartersville, GA

Cartersville, GA

Habersham Bank

Liberty Bank & Trust

Pending

Clarkesville, GA

Toccoa, GA

Page 4 of 12

EFFECTIVE DATE 05-01-2005

FINANCIAL INSTITUTION CONVERSIONS

PREVIOUS NAME

CONVERTED TO

APPROVAL DATE EFFECTIVE DATE

The Buckhead Community Bank, NA The Buckhead Community Bank

05-17-2005

Atlanta

Fulton County

APPLICATIONS FOR NEW FINANCIAL INSTITUTION

FINANCIAL INSTITUTION

CAPITALIZATION

APPROVAL DATE

Flint Community Bank

$ 9,500,000

Pending

Corner of Meredyth & Pointe North

Albany, GA 31707

Dougherty County

BEGIN BUSINESS DATE

Sentry State Bank 245 Perimeter Center Parkway, Suite 600 Atlanta, GA 30346 DeKalb County

$ 35,000,000

Pending

Georgia Trust Bank 2725 Mall of Georgia Boulevard Buford, GA 30519 Gwinnett County

$ 12,500,000

11-05-2004

05-16-2005

Century Security Bank 5955 State Bridge Road Duluth, GA 30097 Fulton County

$ 11,000,000

Pending

Signature Bank of Georgia 1449 Dunwody Village Parkway Dunwoody, GA 30338 DeKalb County

$ 12,000,000

Pending

Covenant Bank & Trust 122 Highway 95 Rock Spring, GA 30739

$ 7,000,000

05-27-2005

Page 5 of 12

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

$ 7,836,430

09-15-2004

05-09-2005

FINANCIAL INSTITUTION Bank of North Georgia Alpharetta

APPLICATIONS TO ESTABLISH A BRANCH OFFICE

BRANCH OFFICE Duluth Branch Office 1490 Distribution Drive Duluth, GA 30096 Gwinnett County

APPROVAL DATE
05-19-2005

BEGIN BUSINESS
DATE

SunTrust Bank Atlanta

Casselberry Wal-Mart Money Center Branch Office 1241 State Road 436, Unit 101 Casselberry, FL 32707 Seminole County

03-11-2005

05-11-2005

SunTrust Bank Atlanta
SunTrust Bank Atlanta
SunTrust Bank Atlanta
SunTrust Bank Atlanta

Gainesville Branch Office 14100 Whitney Road Gainesville, VA 20155 Prince William County

05-06-2005 05-23-2005

Wycliffe Branch Office 9863 Lake Worth Road Lake Worth, FL 33340 Palm Beach County

05-23-2005

Lantana Branch Office 523 Ridge Road Lantana, FL 33462 Palm Beach County

05-23-2005

Lawrenceville Commons Wal-Mart Branch Office 1400 Lawrenceville Highway Lawrenceville, GA 30044 Gwinnett County

03-08-2005 05-18-2005

Page 6 of 12

FINANCIAL INSTITUTION SunTrust Bank Atlanta

BRANCH OFFICE Mulberry Wal-Mart Branch Office 6745 North Church Avenue Mulberry, FL 38860 Polk County

SunTrust Bank Atlanta
SunTrust Bank Atlanta

Watercolor Crossings Branch Office Walton County Road 395 & East Lake Drive Sea Grove Beach, FL 32459 Walton County
Southwood Branch Office Capital Circle, State Road 261 & Blairstone Tallahassee, FL 32311 Leon County

United Community Bank Blairsville

Gainesville Branch Office 351 Jesse Jewell Parkway Gainesville, GA 30501 Hall County

United Community Bank Blairsville

Newnan Lakes Branch Office 802 Lower Fayetteville Road Newnan, GA 30264 Coweta County

Columbus Bank and Trust Co. Columbus

River Road Branch Office 7001 River Road Columbus, GA 31904 Muscogee County

Merchants and Farmers Bank of Ila Branch Office Comer, Georgia

Comer

5440 Commerce Street

Commerce, GA 30530

Madison County

Page 7 of 12

APPROVAL DATE
Pending

BEGIN BUSINESS
DATE

11-05-2004 05-23-2005

11-05-2004 05-23-2005

05-10-2005 05-19-2005 05-11-2005 08-12-2004 05-31-2005

FINANCIAL INSTITUTION Georgia Heritage Bank (IO) Dallas

BRANCH OFFICE West Cobb Branch Office 3622 Dallas Highway Marietta, GA 30064 Cobb County

Gwinnett Community Bank Duluth

Snellville Branch Office 2135 East Main Street, #3 Snellville, GA 30078 Gwinnett County

Signature Bank of Georgia (IO) Sandy Springs Branch Office

Dunwoody

227 Sandy Springs Place

Atlanta, GA 30328

Fulton County

The Heritage Bank Hinesville

Memorial Drive Branch Office 2425 Memorial Drive Waycross, GA 31501 Ware County

First Georgia Community Bank Jackson

Covington Branch Office 3147 Highway 278 Covington, GA 30014 Newton County

The Community Bank Loganville

Covington Branch Office 10105 Highway 142 Covington, GA 30014 Newton County

Community Bank of the South Smyrna

Johnson Ferry Road Branch Office 3140 Johnson Ferry Road Marietta, GA 30062 Cobb County

Page 8 of 12

APPROVAL DATE
05-16-2005

BEGIN BUSINESS
DATE

03-14-2005 05-16-2005

Pending

05-19-2005

03-08-2005 05-16-2005

05-10-2005

10-21-2004 05-02-2005

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 Hometown Community Bancshares, Inc. Braselton, GA

Hometown Community Bank (IO) Braselton, GA

Pending

GB Bank Group, Inc. Glennville, GA

Glennville Bank Glennville, GA

Pending

American Southern BanCorp, Inc. Roswell, GA

American Southern Bank (IO) Roswell, GA

05-31-2005

ACQUISITIONS CompuCredit Corporation Atlanta, GA

Sentry State Bank (IO) Atlanta, GA

Pending

Omni Financial Services, Inc. Atlanta, GA
BANK HOLDING COMPANY Habersham Bancorp Cornelia, GA

Georgia Community Bank Dalton, GA
TO ACQUIRE Liberty Bank & Trust Toccoa, GA

05-31-2005
APPROVAL DATE Pending

GB Bank Group, Inc. Glennville, GA

Tippins Bank & Trust Company Claxton, GA

Pending

First Horizon National Corporation Memphis, TN

First National Bank West Metro Dallas, GA

05-31-2005

Heritage First Bancshares, Inc. Rome, GA

DeKalb Bank Crossville, AL

05-27-2005

Page 9 of 12

PROPOSED NAME 1st Choice Community Bank

APPLICATIONS FOR RESERVATION OF A NAME

COUNTY

APPLICANT

Murray County Ms. Nancy E. LaFoy, SVP

T. Stephen Johnson & Associates, In

3650 Mansell Road, Suite 495

Alpharetta, GA 30022

Alpha Bank and Trust

Fulton County

Mr. Byron Richardson, Principal BankResources, Inc. 1000 Whitlock Avenue, Suite 320, Box 101 Marietta, GA 30064

Atlantic Southern Bank

Bibb County

Ms. Kelly G. Yeadon Powell Goldstein LLP One Atlantic Center, 14th Floor, 12 Atlanta, GA 30309-3488

First Choice Community Bank

Murray County

Ms. Nancy E. LaFoy, SVP T. Stephen Johnson & Associates, Inc. 3650 Mansell Road, Suite 495 Alpharetta, GA 30022

Gold Hills Bank

Lumpkin County

Mr. Daniel D. Dinur Attorney at Law One Lakeside Commons 900 Hammond Drive, Suite 760 Atlanta, GA 30328

Hana Bank

DeKalb County

Mr. Robert A. Calvert, Jr. Principal & Owner Calvert Consulting 2619 Pilgrim Rest Church Rd. Alford, FL 32420

Northpoint Bank and Trust

North Fulton County

Mr. Byron Richardson, Principal
BankResources, Inc. 1000 Whitlock Avenue, Suite 320, Box 101 Marietta, GA 30064

Page 10 of 12

PROPOSED NAME One Georgia Bank
Sunrise Bank of Atlanta

COUNTY APPLICANT

Fulton County

Mr. John B. Kline, President

Kline & Associates

Post Office Box 418

Decatur, GA 30031

Fulton County

Ms. Anne Winters Executive Assistant Capitol Bancorp Limited 200 North Washington Square Lansing, MI 48933

MONEY TRANSMITTER LICENSES ISSUED MONEY TRANSMITTER Global Financial Exchange, LLC Chamblee, GA

APPROVAL DATE 05-26-2005

Americana de Servicios Miami, FL

05-18-2005

Xoom Corporation San Francisco, CA

05-11-2005

Anh Minh Money Transfers, Inc. Westminster, CA

05-26-2005

Page 11 of 12

CITY Stockbridge Kennesaw Atlanta Peachtree City Augusta Rex Augusta Gainesville Wrightsville Lithonia Smyrna Winder Ellenwood McDonough Wrightsville Chatsworth Cartersville McRae Donalsonville Oakwood

CHECK CASHER LICENSES ISSUED

APPLICANT NAME

TRADE NAME

Ajab Corporation

Buck Saver Amoco

* Akhteruzzaman, Salim

SF Food Mart

CheckMax, Inc.

CheckMax

Geiger, Arnold L.

Huddleston Check Cashing

Goldmine Check Cashing, Inc.

Goldmine Check Cashing

Gulbanu Group, Inc.

Texaco Food Mart

* Jones, Amon Lee

Amon Lee Jones

Joyeria y Novedades Latinos, Incorporated

Joyeria y Novedades Latinos

* Katyayani, Inc.

Amee's Quick Stop

* Kim's Package, Inc.

Kim's Package Check Cashing

Parko, Inc.

Vineyard Check Cash

R & S Universal, Inc.

Kuntry Korner

Sahalina, Inc.

Anvil Block BP/Amoco

Sevak Corporation

155 Super Mart

* Shriji Bhavani, Inc.

D & D Package Shop

* Solis, Alemi

Variedades Mexicans Mary

Springfield, Danny W.

Northside Pawn and Jewelry

* Vinit, Inc.

Xpress

* Williams, Bobby

Williams Chevron

* Z. Noorani, Inc.

Saad's Exp. I

* =Registered Exempt (O.C.G.A. 7-1-709)