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. Page 2 of 12 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 Page 3 of 12 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)