Financial institutions today, Aug. 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

August 31, 2005

Monthly Bulletin #8

In this Issue:

LIMITED EMERGENCY DECLARATION o Limited Emergency

Declaration

Under the provisions of Code Section 7-1-111 of the Financial Institutions Code of

o Credit Union Policy Statements Regarding

Georgia, the Department has determined that a state of emergency exists throughout Criteria and Issues

Georgia with regard to those displaced by Hurricane Katrina who are temporarily Related to Residential

residing in this state.

Group Common Bonds and Nonmember Deposits

Accordingly, under the provisions of Code Section 7-1-111, the Department hereby

in Credit Unions o Community Reinvestment

declares a financial emergency regarding this situation and under the further authority Act (CRA) Joint Final

of Code Section 7-1-112, with regard to the payments of financial institutions, Rules

declares the following:

o Opportunities and Risks Facing Community

State-chartered financial institutions are encouraged to provide assistance to

Lenders that Support International Trade

depositors and members of other financial institutions who were located within the o Free Webinar on Email

affected areas of Louisiana, Mississippi, and Alabama.

Security

o Guidance on Implementing

State-chartered credit unions may provide services to those persons who are members of another credit union, including check cashing, access to ATM networks, or other paying or receiving services to meet short-term emergency needs where those persons were displaced by Hurricane Katrina. Check cashing and ATM

a Fraud Hotline o FDIC Provides Shoppers
Guide o FDIC Updated IT Exams

services may be provided to affected nonmembers in order that they may access the payment system.

The Department encourages the waiver of fees that exceed the cost of providing such services. Prudent and compliant procedures for verification of identity of any displaced person should be followed.

This declaration shall remain in effect until such time as terminated by the Governor or the Commissioner of the Department of Banking and Finance, or on October 2, 2005, whichever occurs first. This declaration may be

renewed depending upon conditions in October. This declaration is consistent with the interest of the public, financial institutions, and its depositors.
Financial institutions should consult the joint issuance by regulators on this subject at: http://www.fdic.gov/news/news/press/2005/pr8505.html. Questions about these procedures may be directed to Wayne Orr at (770) 986-1637.
This 2nd day of September 2005 By: David G. Sorrell Commissioner Department of Banking and Finance
Credit Union Policy Statements Regarding Criteria and Issues Related to Residential Group Common Bonds and Nonmember Deposits in Credit Unions
The Department of Banking and Finance has revised a Policy Statement regarding the Criteria and Issues Related to Residential Group Common Bonds to reflect recent changes that have occurred in the Laws and Rules related to Residential Group Common Bonds. This criteria continues to focus on meeting the definition of a neighborhood, community, or rural district in accordance with OCGA 7-1-630(b) and demonstrating the credit union meets the safety and soundness criteria to serve the residential group common bond that is being requested. The full policy statement is provided at http://www.gadbf.org/publications.html.
Additionally, the Department has developed a documentary checklist to assure that any application received for a residential group common bond complies with the requirements of the statutory rule and policy statement requirements for a residential group common bond. This is included in the revised credit union application manual which is available at http://www.gadbf.org/publications.html.
The Department also has recently developed a Policy Statement on Nonmember Deposits in Credit Unions. This Policy statement was developed in response to certain comments received by the Department regarding recently issued Rules which become effective September 5, 2005. As reflected by the Policy Statement, non-member deposit taking for state chartered credit unions is significantly limited under Georgia law. The Policy Statement also reflects that any such non-member deposits are subject to NCUA Rules which provide certain requirements regarding signage, acceptance of deposits, disclosures at the time of account opening, and subsequent disclosures on marketing or account information. It has been the observation of the Department that such non-member deposit taking by credit unions has been extremely limited in the State of Georgia. The full text of the Policy Statement is available at http://www.gadbf.org/publications.html.
If there are any questions regarding these Policy Statements or the checklist, please forward these to Deputy Commissioner for Supervision Grace Lurry.
Page 2 of 14

COMMUNITY REINVESTMENT ACT JOINT FINAL RULES
The FDIC, Federal Reserve Board, and the Office of the Comptroller of the Currency have published joint final rules regarding the Community Reinvestment Act (CRA). The rules, which became effective September 1, 2005, provide regulatory relief for smaller community banks and preserve the importance of community development in the CRA evaluations of these banks. For further information, go to http://www.fdic.gov/news/news/financial/2005/fil7905.html.
OPPORTUNITIES AND RISKS FACING COMMUNITY LENDERS THAT SUPPORT
INTERNATIONAL TRADE
There are tremendous opportunities for community banks in small business trade activities. One of the main complaints among small businesses is the difficulties in helping buyers find financing for their purchases. As such, the growth in worldwide trade may provide innovative community banks an opportunity to generate additional loan demand and increase fee income. Some of the services that community banks are beginning to offer include issuing international letters of credit, providing trade-financing loans, facilitating or executing foreign currency transactions and wire transfers, and providing direct operating funds through traditional commercial loans. There are several ways that community banks can obtain the expertise needed to succeed in global trade. This article discusses opportunities as well as risks facing community lenders in supporting small and mid-sized enterprises (SMEs) engaged in international trade. To read more, go to http://www.fdic.gov/bank/analytical/regional/ro20052q/na/2005summer_04.html.
FIGHTING FRAUD
Free Webinar on E-mail Security September 14th at 3:00 p.m.
Security breaches of confidential data are making the news every day - and that just covers the major leaks. Ensuring the privacy of confidential data is critical in this fast-paced electronic era. On September 14, at 3 p.m., the Conference of State Bank Supervisors will co-sponsor a free, one-hour Web-based seminar on minimizing security risk in electronic communications dealing with confidential information.
This informative roundtable discussion led by Gartner Research will bring together a panel of financial and security professionals who will cover the issues surrounding data and email protection and discuss how e-mail encryption solutions can help.
Page 3 of 14

Eric Ouellet, networking and information security analyst for Gartner, Inc., will moderate the discussion. Panelists include Mary Beth Puccinelli, Vice President, Regulatory Affairs, Conference of State Bank Supervisors; Doug Johnson, Senior Policy Analyst, Government Regulations, American Bankers Association; Gary Farrar, Executive Vice President and Chief Information Officer, Town North Bank, Dallas; and Edward Smith, Director of the ZixResearch Center, Zix Corporation.
The Webinar is free, but pre-registration is requested. To enroll, go to http://www.zixcorp.com/newsroom/webseminar_gartner.php

Guidance on Implementing a Fraud Hotline

The FDIC is providing guidance to financial institutions on implementing a fraud hotline to

minimize potential and actual fraud risks as part of a bank's governance and enterprise risk

management program. The FDIC encourages financial institutions to consider the benefits of

implementing a fraud hotline as a confidential communication channel to identify fraud and

reduce fraud-related losses. The Association of Certified Fraud Examiners in its "2004 Report

to the Nation" stated that organizations without mechanisms to report fraud suffered financial

losses that were more than twice as high as organizations with anonymous fraud-reporting

mechanisms. Awareness of the fraud hotline by employees, customers, contractors, service providers, suppliers,

and other third parties is an important component in ensuring a hotline's effectiveness. The hotline's hours of

operation should be extensive to ensure availability and should be staffed by experienced interviewers who can ask

pertinent follow-up questions to determine whether an investigation should be initiated. Other recommendations

included independence from bank management, confidentiality for callers, a tracking system for complaints, and

investigation

reports

for

the

audit

committee.

Read

more

at

http://www.fdic.gov/news/news/financial/2005/fil8005a.html.

PROVIDES SHOPPER'S GUIDE
The FDIC provides consumers with a shopper's guide for finding bank products and services in the summer 2005 issue of FDIC Consumer News. The guide includes tips and information on: comparison shopping and questions to ask before signing up for a mortgage, home equity loan products, a credit card, a checking account, or a certificate of deposit; how and why to make sure credit records are accurate and in the best possible shape; and how to determine if a free computer or some other attractive gift for opening a new bank account really is the best deal. The newsletter also covers fraud prevention, credit card minimum payments, and use of medial information in credit decisions. Read more at http://www.fdic.gov/news/news/press/2005/pr7805.html.

UPDATED IT EXAMS
The FDIC has updated its risk-focused information technology (IT) examination procedures. The new procedures are in response to the agency's new Information Technology Risk Management program announced in June. The new procedures focus on the financial institution's information security program and risk-management practices and results in a single IT "composite" rating, to be included in the consolidated Risk Management Report of
Examination. Read more at http://www.fdic.gov/news/news/financial/2005/fil8105.html.
Page 4 of 14

NAR and the Center for Responsible Lending Offers Mortgage Brochure
A publication to educate consumers about abusive and risky lending practices was published recently by the National Association on Realtors and the Center for Responsible Lending. The brochure -- "Shopping for a Mortgage? Do Your Homework First" -- is part of a new consumer education campaign by NAR. The brochure helps consumers understand conventional loans, such as fixed-rate and adjustable-rate mortgages, and more exotic loan programs, including interest-only mortgages, 40-year, fixed-rate mortgages, negative amortization mortgages, and option payment adjustable-rate mortgages. "We're warning homebuyers to approach these new mortgages carefully," said Mike Calhoun, general counsel of the Center for Responsible Lending. According to a study by The Joint Center for Housing Studies of Harvard University, about 25 percent of the loans in 2004 were financed with an interest-only mortgage. Three years ago, these mortgages comprised only a few percentage points of the total mortgage market. Read more http://www.realtor.org/PublicAffairsWeb.nsf/Pages/NAR/CRLBrochure?OpenDocument. To access the brochure, go to http://www.realtor.org/HousOpp.nsf/files/specialty.pdf/$FILE/specialty.pdf.
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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 August 2005.

APPLICATIONS FOR NEW FINANCIAL INSTITUTION

FINANCIAL INSTITUTION
Flint Community Bank

CAPITALIZATION
$ 9,500,000

APPROVAL DATE
08-17-2005

BEGIN BUSINESS DATE

112 North Westover Boulevard

Albany, GA 31707

Dougherty County

Providence Bank 4955 Windward Parkway Alpharetta, GA 30004 Fulton County

$ 14,000,000

Pending

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

$ 35,000,000

Pending

Hometown Community Bank 6700 Highway 53 Braselton, GA 30517 Jackson County

$ 10,300,000

02-21-2005

08-01-2005

Southern Bank & Trust 160 Louise Street Clarkesville, GA 30523 Habersham County

$ 9,500,000

08-29-2005

Eastside Commercial Bank 895 Iris Drive Conyers, GA 30094 Rockdale County

$ 12,000,000

08-05-2005

Jefferson State Bank 108 Canton Road Cumming, GA 30040 Forsyth County

$ 11,000,000

Pending

Page 6 of 14

Metro City Bank 5441 Buford Highway Doraville, GA 30340 DeKalb County
Century Security Bank 5955 State Bridge Road Duluth, GA 30097 Fulton County
Bank of Ellijay 134 Industrial Boulevard Ellijay, GA 30540 Gilmer County
American Southern Bank 1450 Mansell Road Roswell, GA 30076 Fulton County
Bank of Valdosta 301 Woodrow Wilson Drive Valdosta, GA 31602 Lowndes County

$ 12,000,000

Pending

$ 11,000,000

08-03-2005

$ 10,000,000

Pending

$ 11,000,000

03-29-2005

08-30-2005

$ 6,000,000

Pending

APPLICATIONS TO ESTABLISH A BRANCH OFFICE

FINANCIAL INSTITUTION
Northside Bank (IO)

BRANCH OFFICE
Cartersville Branch Office

APPROVAL BEGIN BUSINESS

DATE

DATE

Pending

Adairsville

325 Cherokee Place

Cartersville, GA 30121

Bartow County

Bank of North Georgia Alpharetta

Roswell Branch Office 10446 Alpharetta Highway Roswell, GA 30075 Fulton County

02-20-2004

08-15-2005

SunTrust Bank Atlanta

Arlington Kroger In-Store Branch Office US Highway 70 & Airline Road Arlington, TN 38002 Shelby County

08-22-2005

Page 7 of 14

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

State Road 70 Sam's Club In-Store Branch Office 5300 30th Street East Bradenton, FL 34230 Manatee County
Barclay Branch Office 3236 Barclay Avenue Brooksville, FL 33601 Hernando County
Celebration Water Tower Branch Office 74 Blake Boulevard Celebration, FL 34747 Osceola County
Pan Am Safeway In-Store Branch Office 3043 Nutley Street Fairfax, VA 22031 Fairfax County
Fort Walton Wal-Mart Branch Office 748 Beal Parkway, NW Fort Walton Beach, FL 32547 Okaloosa County
Mack Hatcher Kroger In-Store Branch Office 3054 Columbia Avenue Franklin, TN 37064 Williamson County
Poplar & Johnson Branch Office 9407 West Poplar Avenue Germantown, TN 38138 Shelby County
Gulf to Lakes Wal-Mart Branch Office 2461 Gulf to Lakes Highway Inverness, FL 34450 Citrus County
Lantana Branch Office 523 Ridge Road Lantana, FL 33462 Palm Beach County

Pending 07-07-2005
Pending 02-21-2005 08-08-2005 08-22-2005 08-22-2005 08-08-2005 05-23-2005

Page 8 of 14

08-31-2005 03-31-2005
08-08-2005

SunTrust Bank Atlanta
SunTrust Bank Atlanta
SunTrust Bank Atlanta
SunTrust Bank Atlanta
SunTrust Bank Atlanta
SunTrust Bank Atlanta
SunTrust Bank Atlanta
Colony Bank Southeast Broxton
First Madison Bank & Trust Colbert

Marianna Wal-Mart Branch Office 2255 Highway 71 Marianna, FL 32448 Jackson County
The Strand at Naples Wal-Mart Branch Office 5420 Cormorant Avenue Naples, FL 34109 Collier County
Osprey Wal-Mart Branch Office 163 South Tamiami Trail Osprey, FL 34229 Sarasota County
Palm Bay Wal-Mart Branch Office 1040 Malabar Road, SE Palm Bay, FL 32907 Brevard County
Mirasol Branch Office 6289 PGA Boulevard Palm Beach Gardens, FL 33418 Palm Beach County
Creighton Road Wal-Mart Branch Office 2650 Creighton Road Pensacola, FL 32504 Escambia County
Savannah at Weston Branch Office 2575 Glades Circle Weston, FL 33327 Broward County
Colony Bank Landmark Branch Office 6600 Abercorn Street, Suite 109 Savannah, GA 31404 Chatham County
Athens Branch Office 780 US Highway 29 North Athens, GA 30601 Clarke County

08-08-2005 07-25-2005
Pending 07-25-2005
Pending 08-08-2005
Pending 08-26-2005 08-26-2005

08-24-2005 08-24-2005

Page 9 of 14

Columbus Bank and Trust Company Columbus
First Nation Bank Covington
Bank of Ellijay (IO) Ellijay
Southern Community Bank Fayetteville
1st Georgia Banking Company Franklin
1st Georgia Banking Company Franklin
1st Georgia Banking Company Franklin
1st Georgia Banking Company Franklin

River Road Branch Office 7001 River Road Columbus, GA 31904 Muscogee County
Sigman Road Branch Office 433 Sigman Road Conyers, GA 30012 Rockdale County
Canton Branch Office Riverstone Parkway and I-575 Canton, GA 30114 Cherokee County
Highway 54 West Branch Office State Highway 54 West Fayetteville, GA 30214 Fayette County
Columbus Branch Office 7320 Veterans Parkway Columbus, GA 31904 Muscogee County
Homer Highway Branch Office 1989 Historic Homer Highway Commerce, GA 30529 Jackson County
Dalton Branch Office 1394 Dug Gap Road Dalton, GA 30720 Whitfield County
Jefferson Branch Office Northeast corner of US Highway 129 & Old Swimming Pool Road Jefferson, GA 30549 Jackson County

05-11-2005

08-02-2005

08-18-2005

Pending

08-25-2005

08-22-2005

08-22-2005

Pending

Pending

Page 10 of 14

The Heritage Bank Hinesville
The Heritage Bank Hinesville
Farmers and Merchants Bank Lakeland
Southern Horizon Bank Leary
Georgia State Bank Mableton
American Trust Bank Roswell
Sea Island Bank Statesboro
Sea Island Bank Statesboro

Darien Branch Office 1142 North Way Darien, GA 31305 McIntosh County
Pembroke Branch Office 16 Railroad Street East Pembroke, GA 31321 Bryan County
South Patterson Branch Office 1201 South Patterson Valdosta, GA 31601 Lowndes County
Stockbridge Branch Office 280 Country Club Drive Stockbridge, GA 30281 Henry County
Rockmart Branch Office 1201 Nathan Dean Parkway Rockmart, GA 30153 Polk County
Cumming Branch Office 601 Tri-County Plaza Cumming, GA 30040 Forsyth County
President Street Branch Office NE Corner of President Street and Drayton Street Savannah, GA 31406 Chatham County
Wilmington Island Branch Office 319 Johnny Mercer Boulevard Wilmington Island, GA 31410 Chatham County

08-02-2005

04-20-2005

08-29-2005

08-26-2005

08-29-2005

08-01-2005

08-10-2005

08-15-2005

08-15-2005

Page 11 of 14

FINANCIAL INSTITUTION MERGERS

FINANCIAL INSTITUTION (SURVIVOR)

MERGED INSTITUTION

CMAR Credit Union Marietta, GA

Dixsea Federal Credit Union Atlanta, GA

APPROVAL EFFECTIVE

DATE

DATE

06-27-2005

07-31-2005

APPLICATIONS TO CHANGE LOCATION

FINANCIAL INSTITUTION
Habersham Bank

CHANGE LOCATION OF APPROVAL DATE EFFECTIVE DATE

Big A Road Branch Office

08-26-2005

Clarkesville

From: 1150 Big A Road

Toccoa GA 30577

Stephens County

To: 3886 Big A Road

Toccoa GA 30577

Stephens County

Oconee State Bank Watkinsville

Butler's Crossing Branch From: 8821 Macon Hwy.
Athens GA Oconee County To: 2000 Experiment Station Watkinsville GA 30677 Oconee County

08-10-2005

PROPOSED NAME
AFB&T

APPLICATIONS FOR RESERVATION OF A NAME

COUNTY
Clarke County

APPLICANT
Mr. John A. Fowler, SVP Athens First Bank & Trust Company

Post Office Box 1747
Athens, GA 30603

Delta Community Credit Union

Fulton County

Mr. Rick Foley, President/CEO Delta Employees Credit Union 1025 Virginia Avenue, Dept 930 Atlanta, GA 30354

HavenTrust Bank

DeKalb County

Mr. Ed Briscoe, EVP/CFO Horizon Bank 6340 Sugarloaf Parkway, Suite 100 Duluth, GA 30097

Page 12 of 14

Midtown Bank Patriot Bank of Georgia River City Bank Woodstock Bank & Trust

Fulton County Forsyth County Floyd County Cherokee County

Ms. Kelly G. Yeadon, Paralegal Powell Goldstein LLP 1201 West Peachtree Street Atlanta, GA 30309
Mr. John B. Kline, President Kline & Associates Post Office Box 418 Decatur, GA 30031
Mr. John B. Kline, President Kline & Associates Post Office Box 418 Decatur, GA 30031
Mr. Brent H. Baker, President Brent Baker, Inc. 6020 Rose Hill Court Cumming, GA 30041

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 Northside Bancshares, Inc. Adairsville, GA

Northside Bank (IO) Adairsville, GA

Pending

Atlanta Bancorporation, Inc. Alpharetta, GA

Bank of Atlanta (FSB) Alpharetta, GA

Pending

CCB Financial Corporation Jonesboro, GA

Community Capital Bank Jonesboro, GA

Pending

ACQUISITIONS CompuCredit Corporation Atlanta, GA

Sentry State Bank (IO) Atlanta, GA

Pending

ABC Bancorp Moultrie, GA

First National Banc, Inc. St. Marys, GA

Pending

Page 13 of 14

CITY

Macon

*

Newnan

Americus

*

Macon

Winder

Sugar Hill

Atlanta

*

Lithia Springs

Winder

*

Augusta

*

Carrollton

Rome

*

Columbus

Hazlehurst

*

Canton

Stone Mountain

Athens

*

Baxley

*

Gainesville

Harlem

*

Newnan

Macon

*

Jefferson

Ellaville

LaGrange

Fort Valley

*

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

CHECK CASHER LICENSES ISSUED
APPLICANT NAME
Akshar Group, Inc. Attics Self Storage of Newnan, Inc. Bhawani Krupa, Inc. Bradberry, Jimmy L. C. Store Management, Inc. Dos Amigos Check Cashing & Grocery, Inc. Enterprise 2850, LLC First Class Mart, LLC Golden Bottle Shop, Inc. Han, Kwi Suk Hernandez, Ilsa Krupa of Rome, Inc. Love's Jewelers & Pawn, Inc. Mata, Inc. McFarland Foods, Inc. Parikh, Kanaiyalal R. Parra, Kristina Reeya & Damini Food Mart, Inc. Reyes, Inc. Shri Shiv Shakti, Inc. Smart Financial of Georgia, Inc. Standard Motor Enterprises, Inc. Tabo's C. Store, Inc. Veatch Foods, Inc. Yarbrough's Finance Corporation Young, Marshall

TRADE NAME
Topline Spirits Attics Self Storage Shop Rite Pride Package Store Shell Food Mart Dos Amigos Check Cashing Busy Bee Thornton Road Food Mart Golden Bottle Shop Sam's IGA Supermarket Latino Express Chuck's Corner Love's Jewelers & Pawn 221 Quick Stop McFarland's IGA Mail Fax Shipping Liberty Services Hungry Lion Reyes Harlem Mini Food The Money Banc Topline Tabo's Food Mart IGA Supermarket Yarbrough's Title Pawn Young Super Foods

MONEY TRANSMITTER LICENSES ISSUED

MONEY TRANSMITTER

APPROVAL DATE

Western Club, LLC East Point, GA

08-18-2005

Page 14 of 14