Financial institutions today, Oct. 2008

Inside this issue:

Agencies Announce

2

Decision on Impact

of Tax Change on

Indirect Investments

in Fannie Mae and

Freddie Mac

Preferred Stock

DBF Outreach and

2

Upcoming Speaking

Engagements

Federal Funds Will

3

Soon Be Available to

Local Governments

for the Discounted

Purchase of Certain REO Residential

Properties

2009 State Holidays 4

Action on

5

Applications for the

Month of October

DBF's Customer

10

Service Stars for the

Month of October

News and topics of interest to financial institutions regulated by the Department of Banking and Finance

Monthly Bulletin #10

October 2008

Notice of Order to Cease and Desist Issued to Magnate Premier Bank (In Organization), Atlanta, GA
It has come to the Department's attention that an entity calling itself "Magnate Premier Bank", located at 3455 Peachtree Road, 5th Floor, Atlanta, Georgia 30326, is claiming to be a FDIC-insured Georgia state-chartered bank in organization. The Department has no record of Magnate Premier Bank and has not approved this entity to organize a bank and/or conduct a banking business in Georgia. On October 16, 2008, Magnate Premier Bank was directed to cease immediately from using the word "bank" and/or claiming to be a Georgia state-chartered bank in organization in violation of Georgia Law and provide a written response to the Department by October 31, 2008, stating the specific actions taken to comply with the Department's directive. As of November 4, 2008, the Department has received no response in writing or otherwise from Magnate Premier Bank.
Therefore, on November 5, 2008, the Georgia Department of Banking and Finance, pursuant to O.C.G.A. Sections 7-1-91 and 7-1-5, issued an Order to Cease and Desist to Magnate Premier Bank, its successors and assigns and the officers, employees and directors thereof, to Cease and Desist from using the word "bank" in its name and to Cease and Desist from claiming to be a Georgia state-chartered bank in organization. Please be advised the Department has not authorized Magnate Premier Bank to organize and/or conduct a banking business in Georgia. For further information regarding this Order, please contact Corporate Manager Murali Ramachandran at (770) 986-1645 and/or murali@dbf.state.ga.us.

Annual Assessment for State-Chartered Financial Institutions
The annual assessment fee letters will be e-mailed to banks and credit unions early in December, and the fees will be assessed by January 31, 2009.
Please complete and submit by November 30th, the Electronic Funds Transfer Authorization Form for any change of information. The ACH Authorization and Instructions Form can be found on our website from the Banks & Holding Companies Memos and Guidance page or from the Credit Unions Policy Statements and Guidance page.
Please e-mail or call Renee` Martin with any questions, rmartin@dbf.state.ga.us or 770-986-1641.

"Safeguarding Georgia's Financial Services"

Page 2
Agencies Announce Decision on Impact of Tax Change on Indirect Investments in Fannie Mae and Freddie Mac Preferred Stock
On October 31, 2008, the federal banking and thrift regulatory agencies announced that they are extending the applicability of their October 24, 2008 Interagency Statement on direct investments to certain indirect investments in Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) preferred stock. The change, made in response to a newly issued federal tax revenue procedure, means that banks, bank holding companies, and thrifts are permitted to adjust their September 30, 2008 regulatory capital calculations for the tax effects from losses on direct and indirect investments in Fannie Mae and Freddie Mac preferred stock. Banking organizations may proceed as if Section 301 of the Emergency Economic Stabilization Act of 2008 (EESA) had been enacted and Revenue Procedure 2008-64 (Rev. Proc. 2008-64) had been issued in the quarter ending September 30, 2008. The Treasury Department and the Internal Revenue Service issued Rev. Proc. 2008-64 on October 29, 2008, to provide banking organizations the tax benefit of treating gains and losses on certain indirect investments in Fannie Mae and Freddie Mac preferred stock as ordinary rather than capital. Indirect investments in Fannie Mae and Freddie Mac preferred stock include certain adjustable rate preferred stock programs (such as auction pass-through certificates) and stock held by certain subsidiaries of financial institutions. Banking organizations should follow the guidance in the appendix of the October 24, 2008 Interagency Statement for reporting the effect of the tax treatment change in the regulatory capital schedule of their September 30, 2008 regulatory reports. Banking organizations that have already filed their regulatory reports for September 30, 2008, may submit amended reports.
DBF Outreach AND UPCOMING SPEAKING ENGAGEMENTS
Commissioner Braswell will be participating on a Regulatory Panel at the November 18th GBA Credit Conference at the Galleria in Cobb County. He will also be speaking to the DeKalb Chamber of Commerce on December 1st at the Emory University Conference Center. Deputy Commissioner for Non-Depository Financial Institutions Rod Carnes, along with Examiners Rhonda Sampson and Bob Bauguss, will be teaching/presenting at the AARMR Fraud School in Charlotte, NC on November 17th-19th.

Page 3
Federal Funds Will Soon Be Available to Local Governments for the Discounted Purchase of Certain REO Residential Properties
In September 2008, President Bush signed into law HR 3221, the Housing and Economic Recovery Act of 2008. The Act contains nearly $4 billion in emergency funding for HUD's Community Development Block Grant (CDBG) program. These funds are specifically targeted for neighborhood stabilization as a result of the foreclosure crisis.
Georgia has been allocated $153 million of which $76 million will be administered by HUD and $77 million will be administered by the Georgia Department of Community Affairs (DCA). DCA will administer the funds for all non-entitlement (non-metropolitan) communities and some of the state's entitlement (metropolitan) areas as well.
The Act allows local governments and their partners to use the funds to benefit Low and Moderate and Middle Income areas and families through the: discounted purchase (typically a 15 percent discount) and redevelopment and sale of foreclosed homes and abandoned
residential properties; establishment of land banks for foreclosed homes; establishment of financial tools to assist the sale of such homes through soft seconds, shared equity mortgagees and loan
loss reserves; demolition of blighted structures; and redevelopment of demolished or vacant properties.
Banks with qualifying REO residential properties are encouraged to consider participating in the Neighborhood Stabilization Program. To review DCA's plans for distribution of these funds, please visit www.dca.state.ga.us/communities/CDBG/ index.asp. To review an overview of the national program visit www.hud.gov/offices/cpd/communitydevelopment/programs/ neighborhoodspg.
Action Plan. Per HUD's guidelines, DCA is developing an Action Plan for public comment. DCA has received valuable input from its Advisory Committee and anticipates additional input from the committee and other public and private stakeholders. DCA is charged with developing an Action Plan targeted to the areas of greatest need. DCA will use the following criteria for use in determining areas of greatest need: notices of foreclosures; number of real estate owned properties; home purchase mortgages by subprime lenders; and other factors including documentation of capacity; low- moderate- and middle-income areas of need; project readiness;
efficiency (number of units); and leverage.
Next Steps. DCA will publish the Action Plan for public comment by November 15th. Following the public comment period, DCA will finalize the Plan and submit it for HUD review by December 1, 2008. HUD's approval of the state's action plan is expected some time in January 2009. After HUD grants the funds to states and local governments, they will have 18 months to use the funds.
Additional questions should be directed to DCA Assistant Commissioner Brian Williamson at 404.679.1587 or bwilliam@dca.state.ga.us or DCA Director Glenn Misner at 404.679.3138 or gmisner@dca.state.ga.us.

Page 4

2009 State Holidays

In accordance with O.C.G.A. 1-4-1, Governor Sonny Perdue proclaimed the following dates as public and legal holidays for the year 2009. Financial Institutions may observe both the official observance day as well as alternative observances indicated. In addition to these designated dates, financial institutions may close on Sunday and one discretionary day each week. If the discretionary day observed is changed permanently or temporarily, customer notice must be posted at least 30 days in advance.

Holiday Name New Years Day 2009 Martin Luther King Jr.'s Birthday
Robert E. Lee's Birthday
Washington's Birthday

Date Observed
January 1st Thursday January 15th Thursday Will be observed on Monday, January 19th January 19th Monday Will be observed on Friday, November 27th February 16th - Monday

Confederate Memorial Day

April 26th Sunday

Memorial Day Independence Day

May 25th Monday July 4th Saturday

Labor Day Columbus Day Veterans' Day Thanksgiving Day
Christmas Day

September 7th Monday October 12th Monday November 11th Wednesday November 26th Thursday
December 25th Friday

Page 5
Action on Applications for the Month of October:
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 October 2008.

APPLICATIONS FOR NEW FINANCIAL INSTITUTION

FINANCIAL INSTITUTION Independence Bank of Georgia Highway 211 and Thompson Mill Road Braselton, GA 30517 Barrow County

CAPITALIZATION $ 18,919,690

APPROVAL 11-08-2007

North Metro Bank Highway 9 & Bethelview Drive Cumming, GA 30040 Forsyth County

$ 22,000,000

Pending

Verity Bank 94 West Athens Street Winder, GA 30680 Barrow County

$ 20,856,934

10-03-2007

BEGIN BUSINESS 10-15-2008
10-27-2008

APPLICATIONS TO ESTABLISH A BRANCH OFFICE

FINANCIAL INSTITUTION Security Bank and Trust Company of Albany Albany

BRANCH OFFICE Oakland Branch Office 1251 U.S. Highway 82 West Albany, GA 31721 Lee County

APPROVAL BEGIN BUSINESS

07-09-2007

10-06-2008

The Four County Bank Allentown

Eastman Branch Office 5122 3rd Avenue Eastman, GA 31023 Dodge County

03-07-2008

10-01-2008

SunTrust Bank Atlanta

Arnold Safeway In-Store Branch Office 1451 Ritchie Highway Arnold, MD 21012 Anne Arundel County

10-10-2008

SunTrust Bank Atlanta

James Island BI-LO Branch Office 850 Folly Road Charleston, SC 29412 Charleston County

09-19-2008

10-22-2008

Mountain Heritage Bank Clayton

Dillard Branch Office 7199 North Highway 441 Dillard, GA 30537 Rabun County

02-19-2008

10-09-2008

First Choice Community Bank Dallas

Sandhill Branch Office 95 Sandhill Hickory Level Road Carrollton, GA 30116 Carroll County

Pending

Page 6 FINANCIAL INSTITUTION First Choice Community Bank Dallas
First Choice Community Bank Dallas
First Choice Community Bank Dallas
First Choice Community Bank Dallas
First Choice Community Bank Dallas
First Choice Community Bank Dallas
Global Commerce Bank Doraville
KeyWorth Bank Duluth
Pinnacle Bank Elberton
Colony Bank Fitzgerald
Ameris Bank Moultrie

BRANCH OFFICE Chapel Hill Branch Office 2750 Chapel Hill Road Douglasville, GA 30135 Douglas County
Douglasville Branch Office 6559 East Church Street Douglasville, GA 30134 Douglas County
Downtown Newnan Branch Office 16 East Broad Street Newnan, GA 30263 Coweta County
White Oak Branch Office 1595 Highway 34 East Newnan, GA 30265 Coweta County
Senoia Branch Office 8180 Highway 16 East Senoia, GA 30276 Coweta County
Sharpsburg Branch Office 6548 Highway 54 Sharpsburg, GA 30277 Coweta County
Norcross Branch Office 5495 Jimmy Carter Boulevard Suite 167 Norcross, GA 30093 Gwinnett County
Sugarloaf Branch Office 6515 Sugarloaf Parkway Duluth, GA 30097 Gwinnett County
Commerce Branch Office 1871 North Elm Street Commerce, GA 30529 Jackson County
Ogeechee Road Branch Office 5987 Ogeechee Road Savannah, GA 31419 Chatham County
Irmo Branch Office 1200 Lake Murray Boulevard Irmo, SC 29063 Lexington County

APPROVAL BEGIN BUSINESS Pending

Pending

Pending

Pending

Pending

Pending

07-22-2008

10-27-2007

10-20-2008

09-24-2008

10-18-2008

09-10-2007

10-06-2008

02-15-2008

10-23-2008

FINANCIAL INSTITUTION First Choice Community Bank 1874 Newnan
First Choice Community Bank 1874 Newnan
The Coastal Bank Savannah
North Georgia Bank Watkinsville
The Peoples Bank Winder

BRANCH OFFICE Lawrenceville Branch Office 185 Gwinnett Drive Lawrenceville, GA 30045 Gwinnett County
Main Office 5270 Peachtree Parkway Suite 116 Norcross, GA 30092 Gwinnett County
Memorial Branch Office 1002 Memorial Lane Savannah, GA 31410 Chatham County
Village Park Branch Office 455 Epps Bridge Parkway Building 100 Athens, GA 30606 Clarke County
Barrow Crossings Branch Office 916 Loganville Highway Suite #2030 Bethlehem, GA 30620 Barrow County

Page 7 APPROVAL BEGIN BUSINESS Pending
Pending

03-22-2007

Withdrawn 10-03-2008

01-07-2008

10-16-2008

08-08-2008

Withdrawn 10-01-2008

APPLICATIONS TO CHANGE LOCATION

FINANCIAL INSTITUTION SunTrust Bank Atlanta

CHANGE LOCATION OF Heritage Pines Branch Office From: 82 Commercial Way Spring Hill FL 34606 Hernando County To: 10810 County Line Road Hudson FL 34667 Pasco County

APPROVAL 10-17-2008

United Community Bank Blairsville

Cashiers Branch Office From: 60 U.S. Highway 64 East
Cashiers NC 28717 Jackson County To: 20 Frank Allen Road Cashiers NC 28717 Jackson County

10-03-2008

EFFECTIVE

Page 8
FINANCIAL INSTITUTION (SURVIVOR) Bank of North Georgia Alpharetta, GA
Bank of North Georgia Alpharetta, GA
FINANCIAL INSTITUTION (SURVIVOR) The PrivateBank and Trust Company Chicago, IL
Hamilton State Bank Hoschton, GA
First Gulf Bank, National Association Pensacola, FL

FINANCIAL INSTITUTION MERGERS
MERGED INSTITUTION Citizens Bank and Trust of West Georgia Carrollton, GA
Citizens & Merchants State Bank Douglasville, GA
MERGED INSTITUTION The PrivateBank Atlanta, GA
Jefferson State Bank Cumming, GA
RBC Bank (Georgia) Atlanta, GA

APPROVAL EFFECTIVE 09-19-2008 10-24-2008
09-19-2008 10-24-2008
APPROVAL EFFECTIVE Pending
Pending
Pending

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

BANK HOLDING COMPANY
FORMATIONS ONLY American Bancorp, Inc. Macon, GA
Piedmont Bancorp, Inc. Norcross, GA
Citizens Investors, LLC Savannah, GA

TO ACQUIRE
American Pride Bank Macon, GA
First Choice Community Bank 1874 Newnan, GA
(51% of) First Citizens Bankshares, Inc. Glennville, GA

APPROVAL Pending 10-03-2008 10-14-2008

NOTIFICATION OF APPROVAL OF APPLICATION TO SERVE A RESIDENTIAL GROUP COMMON BOND

CREDIT UNION LGE Community Credit Union Marietta

RESIDENTIAL GROUP COMMON BOND Cherokee County, GA

Delta Community Credit Union Atlanta

Hall County, GA

APPROVAL 10-17-2008
10-17-2008

CHECK CASHER LICENSES ISSUED

CITY Gainesville Doraville Columbus Stone Mountain Duluth Duluth Douglas Swainsboro Douglasville Atlanta Tifton Resaca

APPLICANT NAME Carniceria La Superior, Inc. * Doraville Food Mart, Inc. Eagles Landing, Inc. Elias Investments, Inc. Golden Pond, LLC HNG Enterprises, Inc. Jai Bhole, Inc. * Kiran, Inc. * Kynn, Inc. Purity Enterprise, Inc. * Sadhi Krupa, Inc. * Shree Prabhu Krupa, Inc.

TRADE NAME Carniceria La Superior Doraville Food Mart
Big John's Package B2E Mobile Financial Services HNG Check Cashing Minit Mart Mini Mart #2 Chevron Purity Enterprise Clean Scene Laundry ABC Convenience Store

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

MONEY TRANSMITTER Tempo Financial U.S. Corporation Greenwood Village, CO

MONEY TRANSMITTER LICENSES ISSUED
APPROVAL DATE 10-27-2008

Page 9

Page 10

DBF's Customer Service Stars for the Month of October

It is the Department's goal to provide excellent customer service, meeting and exceeding the expectations of our customers. Along those lines, we would like to recognize the following individuals for going above and beyond in serving our customers:
Financial Examiner Vic Greene and his examination team (District 1): The Department received comments from a customer stating: "We appreciate the knowledgeable, efficient and amiable way our exam was conducted by Victor Greene and his colleagues. The Department continues to be one of our valuable partners in the successful operation of our credit union. The State chartered credit unions in Georgia are fortunate to count on their supervisory agency as a trusted resource."
Senior Financial Examiner Janet Bryan and her examination team (District 4): The Department received comments from a customer stating: "On behalf of the Board of Directors, I would like to thank the Department for the fine manner in which our examination was conducted. I appreciate Examiner Bryan's efforts to provide board members with an opportunity to ask questions and fully understand the findings and recommendations in the examination report. Examiner Bryan is very knowledgeable and seems truly interested in the success of our credit union. We appreciate the guidance and support the Department has shown our small credit union so that we can continue to provide our members with the services they need."
Applications Analyst Susan Nelson (NDFI Division--MSBs): The Department received survey comments from three different customers regarding Susan's overall quality of service: "...in processing the application and background checks.....excellent and direct..." "...Mrs. Susan Nelson's courtesy and how fast the application was processed." "Prompt e-mail responses and updates.... My contact Ms. Susan Nelson (has) always been knowledgeable and helpful.""
Senior Financial Examiner Michael Bryan and his examination team (District 4): The Department received comments from a customer stating: "I just wanted to let you know that I appreciated the courtesies extended my employees by your audit team. They conducted their affairs in a professional manner, always having an open mind to the institution's position when questions arose. Their recommendations will be helpful to us as we move forward during these rather tumultuous times."

CONGRATULATIONS AND GREAT JOB TO THIS MONTH'S CUSTOMER SERVICE STARS!!

GEORGIA
DEPARTMENT OF BANKING AND FINANCE
2990 Brandywine Road Suite 200
Atlanta, Georgia 30341-5565
Phone: (770) 986-1633 Fax: (770) 986-1654 or 1655 Email: dbfpress@dbf.state.ga.us

Page 11
The Department is the state agency that regulates and examines banks, credit unions, and trust companies chartered by the State of Georgia. The Department also has regulatory and/or licensing authority over mortgage brokers, lenders, and processors, money service businesses, international banking organizations, and bank holding companies conducting business in Georgia.
Our Mission is to promote safe, sound, competitive financial services in Georgia through innovative, responsive regulation and supervision.
Our Vision is to be the best financial services industry regulator in the country Progressive. Proactive. Service-Oriented.

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"Safeguarding Georgia's Financial Services"