Financial institutions today, Apr. 2008

Inside this issue:

The Financial

2

Services Information

Sharing and Analysis

Center (FS-ISAC)

Notice of Order to 2 Cease and Desist Issued to Capital Bank & Trust,
Atlanta, GA

Action on

3

Applications for the

Month of April

DBF's Customer

8

Service Stars for the

Month of April

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

Monthly Bulletin #4

April 2008

Allowance for Loan and Lease Loss Methodology
With the recent trends in the residential real estate market, which have resulted in an increased level of nonperforming assets, the Department would like to take this opportunity to remind all institutions of the outstanding Policy Statement on the Allowance for Loan and Lease Losses (ALLL) issued by the Federal Financial Institutions Examination Council on December 13, 2006. The 2006 Policy Statement replaces the 1993 Interagency Policy Statement on ALLL. In addition, the FFIEC issued a frequently asked questions (FAQs) document to assist institutions in complying with generally accepted accounting principles (GAAP) and ALLL supervisory guidance.
Many of our institutions are experiencing a period of greater impairment of assets and it is important that management increase their focus on maintaining a proper and adequate ALLL. It is an expectation that management will establish a proper and adequate methodology that establishes an ALLL that is sufficient to meet the level of impaired assets in the portfolio. Each institution has the responsibility for developing, maintaining, and documenting a comprehensive, systematic, and consistently applied process for determining the amounts of the ALLL and the provision for loan and lease losses. To fulfill this responsibility, each institution should ensure controls are in place to consistently determine the ALLL in accordance with GAAP, the institution's stated policies and procedures, management's best judgment and relevant supervisory guidance.
The principal sources of guidance on accounting for impairment in the loan portfolio under GAAP are Statement of Financial Accounting Standards No. 5, Accounting for Contingencies (FAS 5), and Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan (FAS 114).

DBF Outreach AND UPCOMING SPEAKING ENGAGEMENTS
Supervisory Manager Mike Killeen will be participating in a Georgia Bankers Association school held on the campus of the University of Georgia in Athens on May 6-8, 2008. He will serve the role of the "Bank Examiner" for the 3rd year students as they participate in the bank simulation.
Commissioner Braswell will be participating on a regulatory panel at the CBA Credit Symposium at the Hilton Garden Inn - Wildwood, Atlanta, GA on May 8, 2008. He will also be speaking at the Georgia Credit Union Affiliates Annual Conference at the Hyatt Regency in Savannah, GA on May 16, 2008.
"Safeguarding Georgia's Financial Services"

Page 2
Allowance for Loan and Lease Loss Methodology (continued from Page 1)
Management should work effectively with their CPAs in the preparation of their FAS 5 and FAS 114 assessments. The best practice in this area is to establish a sound and well documented methodology that is reflective of the condition of the institution and which is affirmed as satisfactory during the examination process and independent audit. Effective banks are primarily focused on the adequacy of the ALLL, and recent experience reflects that it is difficult to be overreserved in the current market environment.
To read the Interagency Policy Statement and FAQs on ALLL, please visit the following URL: http://www.fdic.gov/news/ news/financial/2006/fil06105.html
The Financial Services Information Sharing and Analysis Center FS-ISAC
Information Timely, Accurate, Authoritative, and possibly Critical to your institution's well being. It is something every organization needs and when it comes to understanding the cyber and physical threat environment, the impact can not only be costly in terms of your safety and your infrastructure, it can ruin your reputation in an instant.
Recognizing this reality, the Government of the United States sanctioned and established Information Sharing and Analysis Centers for several "critical infrastructures," among them Financial Services. 1998's Presidential Directive 63 (later updated by 2003's Homeland Security Presidential Directive 7) led to the creation of the FS-ISAC, on the eve of the Y2K event and in response to the growth, complexity, and great potential of the Internet, for both good and evil.
If you are a financial services firm, or serve the sector, you have the responsibility for doing your part to help protect our country's banking and finance critical infrastructure. Treasury, DHS, the U.S. Secret Service, and the Financial Services Sector Coordinating Council (www.fsscc.org) recommend membership in the FS-ISAC. Please visit the FS-ISAC web site at www.fsisac.com to find out more, and do not hesitate to contact Ted Hansen, Deputy Director, at 770-664-4207 or thansen@fsisac.us, if you have any questions.
Additional information can be found in an article on the Department's website at: http://dbf.georgia.gov/vgn/images/portal/cit_1210/62/43/112700955FSISACArticle.pdf
Notice of Order to Cease and Desist Issued to Capital Bank & Trust, Atlanta, GA
It has come to the Department's attention that an entity calling itself "Capital Bank & Trust" (Capital) is providing financial services from at least one address in Georgia 1170 Peachtree Street NE, Atlanta, Georgia 30309. Capital is using the words "bank" and "trust" in its name in Georgia without the Department's written consent, which is in violation of O.C.G.A. Section 7-1-243. Capital was directed to cease using the words "bank" and "trust" in its name and provide a written response to the Department by April 11, 2008, stating the specific actions taken to comply with the Department's directive. As of April 24, 2008, the Department had received no response in writing or otherwise from Capital.
On April 24, 2008, pursuant to O.C.G.A. Sections 7-1-91 and 7-1-5, the Department issued an Order to Capital, its successors and assigns and the officers, employees and directors thereof, to Cease and Desist using the words "bank" and "trust" in its name in violation of Georgia Law. Please be advised the Department has not authorized Capital to conduct a banking business in Georgia. For further information regarding this Order, please contact Corporate Manager, Financial Institutions Murali Ramachandran at (770) 986-1645 and/or murali@dbf.state.ga.us.

Page 3
Action on Applications for the Month of April:
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 April 2008.

APPLICATIONS FOR NEW FINANCIAL INSTITUTION

FINANCIAL INSTITUTION Community First Bank of Georgia 924 Elbert Street Extension Elberton, GA 30635 Elbert County
Chattahoochee Bank of Georgia 643 E E Butler Parkway Gainesville, GA 30501 Hall County

CAPITALIZATION $ 12,000,000
$ 20,000,000

APPROVAL Pending
04-04-2008

BEGIN BUSINESS

PREVIOUS NAME BB&T Bankcard Corporation

FINANCIAL INSTITUTION CONVERSIONS

CONVERTED TO BB&T Financial, FSB Columbus Muscogee County

APPROVAL DATE OTS

EFFECTIVE DATE 04-01-2008

APPLICATIONS TO ESTABLISH A BRANCH OFFICE

FINANCIAL INSTITUTION SunTrust Bank Atlanta
SunTrust Bank Atlanta
First Madison Bank & Trust Colbert
Metro City Bank Doraville

BRANCH OFFICE Town of Tradition Branch Office 10331 SW Village Center Drive Port St Lucie, FL 34987 St Lucie County
Spring Hill Village Branch Office 4929 Main Street Spring Hill, TN 37174 Williamson County
Danielsville Branch Office 190-240 General Daniel Avenue Danielsville, GA 30633 Madison County
Old Peachtree Road Branch Office 1291 Old Peachtree Road, Suite 190 Suwanee, GA 30024 Gwinnett County

APPROVAL 11-30-2007
12-26-2007
04-02-2008
Pending

BEGIN BUSINESS 04-07-2008
04-28-2008

Page 4

FINANCIAL INSTITUTION Community First Bank of Georgia (IO) Elberton

BRANCH OFFICE Hartwell Branch Office 249 East Franklin Street Hartwell, GA 30643 Hart County

First Georgia Banking Company Franklin

Greensboro Branch Office 1011 Park Place Boulevard Greensboro, GA 30642 Greene County

Community Bank of Pickens County Jasper

Cove Road Branch Office 65 Cove Road Jasper, GA 30143 Pickens County

Ameris Bank Moultrie

Houston Northcutt Branch Office 966 C Houston Northcutt Boulevard Mount Pleasant, SC 29565 Charleston County

Ameris Bank Moultrie

Murrells Inlet Branch Office 3955 Highway 17 Bypass Suite C Murrells Inlet, SC 29576 Georgetown County

First Covenant Bank Norcross

Main Office 680 Engineering Drive, Suite 100 Norcross, GA 30092 Gwinnett County

Signature Bank of Georgia Sandy Springs

Cumming Branch Office 505 Peachtree Parkway Cumming, GA 30041 Forsyth County

First Chatham Bank Savannah

Glynn Isles Branch Office 550 Glynn Isles Brunswick, GA 31525 Glynn County

First Choice Community Bank 1874 Senoia

Sand Hill Branch Office 3956 Carrollton-Villa Rica Highway Carrollton, GA 30117 Carroll County

The Peoples Bank Winder

Chamblee Branch Office 3245 Chamblee Dunwoody Road Suite 105 Atlanta, GA 30341 DeKalb County

The Peoples Bank Winder

Forest Park Branch Office 4140 Jonesboro Road, Suite D-2 Forest Park, GA 30297 Clayton County

APPROVAL Pending 04-22-2008 01-23-2007 04-07-2008 04-04-2008
04-02-2008 05-24-2007 09-28-2007 Pending Pending
Pending

BEGIN BUSINESS 04-16-2008
04-04-2008 04-14-2008 04-01-2008

FINANCIAL INSTITUTION The Peoples Bank Winder
The Peoples Bank Winder
The Peoples Bank Winder
The Peoples Bank Winder
The Peoples Bank Winder
The Peoples Bank Winder
The Peoples Bank Winder
The Peoples Bank Winder
CreekSide Bank Woodstock

BRANCH OFFICE Gainesville Branch Office 702 SW Atlanta Highway, Suite 200 Gainesville, GA 30501 Hall County
Jonesboro Branch Office 6592 Tara Boulevard, Suite 6612 Jonesboro, GA 30236 Clayton County
Lawrenceville Branch Office 455 Grayson Highway SW, Suite 102 Lawrenceville, GA 30045 Gwinnett County
Lilburn Branch Office 4271 US Highway 29, Suite C Lilburn, GA 30047 Gwinnett County
Marietta Branch Office 12 Cobb Parkway South Marietta, GA 30060 Cobb County
Norcross Branch Office 5386 Jimmy Carter Boulevard Norcross, GA 30093 Gwinnett County
Roswell Branch Office 10485 Alpharetta Street Roswell, GA 30075 Fulton County
Smyrna Branch Office 2552 South Cobb Drive, Suite I Smyrna, GA 30080 Cobb County
Acworth Branch Office U.S. Highway 41 and Mars Hill Road Acworth, GA 30101 Cobb County

APPROVAL Pending Pending Pending Pending Pending Pending Pending Pending 03-26-2007

Page 5 BEGIN BUSINESS
04-21-2008

APPLICATIONS TO CHANGE LOCATION

FINANCIAL INSTITUTION First Georgia Banking Company Franklin

CHANGE LOCATION OF Athens Branch Office From: 8811 Macon Highway Athens GA 30606 Oconee County To: 1357 Oconee Connector Bogart GA 30622 Oconee County

APPROVAL DATE 04-22-2008

EFFECTIVE DATE

Page 6

FINANCIAL INSTITUTION The Heritage Bank Hinesville

CHANGE LOCATION OF Kroger #688 Branch Office From: 9701 Ford Avenue Richmond Hill GA 31324 Bryan County To: 53 Exchange Street Richmond Hill GA 31324 Bryan County

APPROVAL DATE 03-07-2008

EFFECTIVE DATE 04-24-2008

PROPOSED NAME Century Security Interim Bank

APPLICATIONS FOR RESERVATION OF A NAME

COUNTY Fulton County

APPLICANT Mr. Curry Woods Troutman Sanders LLP Bank of America Plaza 600 Peachtree Street, NE, Suite 5200 Atlanta, GA 30308-2216

FINANCIAL INSTITUTION
(SURVIVOR) Cohutta Banking Company of Tennessee Chattanooga, TN

FINANCIAL INSTITUTION MERGERS

MERGED INSTITUTION Cohutta Banking Company Chatsworth, GA

APPROVAL Pending

United Central Bank Garland, TX

Jones County Bank Haddock, GA

Pending

RBC Bank (USA) f/k/a RBC Centura Bank Raleigh, NC

Georgia State Bank Mableton, GA

03-20-2008

RBC Bank (USA) f/k/a RBC Centura Bank Raleigh, NC

The Peachtree Bank Duluth, GA

03-20-2008

EFFECTIVE
04-11-2008 04-11-2008

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 Resurgens Bancorp Atlanta, GA

Resurgens Bank (IO) Atlanta, GA

Pending

Verity Capital Group, Inc. Dahlonega, GA

Verity Bank (IO) Winder, GA

Pending

BANK HOLDING COMPANY
ACQUISITIONS First Citizens Bancorporation, Inc. Columbia, SC
Central Bancorp, Inc. Garland, TX

Page 7

TO ACQUIRE

APPROVAL DATE

Merchants and Farmers Bank of Comer, Georgia Comer, GA
Jones County Bank Haddock, GA

04-18-2008 Pending

CREDIT UNION Credit Union of Georgia Woodstock

NOTIFICATION OF APPROVAL OF APPLICATION TO SERVE A RESIDENTIAL GROUP COMMON BOND
RESIDENTIAL GROUP COMMON BOND Cobb County, GA

APPROVAL DATE 04-01-2008

CHECK CASHER LICENSES ISSUED

CITY Doraville Decatur Atlanta Albany Atlanta Augusta Roopville Canton Rockmart Conyers Calhoun Douglasville Miami Roopville Chamblee Dalton Jonesboro Hazlehurst Brookfield Chamblee Warner Robins Smyrna Jonesboro Lawrenceville Griffin Griffin Cumming Lawrenceville Dahlonega

APPLICANT NAME 2N Investments LLC * AMI Investments, LLC Alpha-Link Management Networking, LLC BCM, Inc. Balraj, LLC Choon Corporation * County Line One Stop of Roopville, Inc. Davar Enterprise, Inc. * Drashti 11, Inc. * Elliott's Marketplace, Inc. * Estuardo Cabrera * Fiesta Latina Music, LLC Girocheck Financial, Inc. * Kaival, Inc. Kwon's Enterprise, Inc. La Popular Enterprises M & I Enterprises, LLC * Mata, Inc. * Mian Jehangir Bashir Mubarak Financial Services, LLC * Nilkanth Charitra Corporation * OHM Enterprises, Inc. P N P Financial Services, LLC * PMG, Inc. * Pyush Patel's Spalding Beverage Company * Rahim & Ram Enterprises, Inc. * Sahajanand, Inc. * Texaco Food Mart, Inc. Title Rite, LLC

TRADE NAME Shell Food Mart Citgo Food Mart
Lighthouse Liquor Shell Check Cashing Pak-N-Go County Line One Stop Chex Market Easy Shop Elliott's Marketplace Frutilandia Universal Hair Salon
Crossroad Shoppette Kwon's Check Cashing El Paraiso Market BP Amoco Food Mart 221 Quick Stop Quick Stop Smyrna Check Cashing Quick Stop #5 Citgo Quick Food Mart Check Cash Plus Route 20 Citgo Spalding Beverage Shell Quik Stop Shell Food Mart Shell Food Mart

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

Page 8

DBF's Customer Service Stars for the Month of April

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 Robbie Williams and his exam team in District 1: The Department received comments from a customer stating: "Overall the members of the Board were pleased with the findings and appreciate the patience and expertise exhibited by the members of the exam team. Their knowledge of regulations and their willingness to help us understand the spirit of the regulations helped to further educate both our management and staff."
Assistant Review Examiner Deborah Long and NDFI Division: Deborah received comments from a customer stating: "It is with great appreciation that I send you this letter thanking you for all your time and guidance for the past year or so. I did want to take this opportunity to thank both you and the Department for your help and assistance during this time. You have all been great to work with and I thank you for all your help and for such an efficient and helpful department."
Financial Examiner Presley Norris and his exam team in District 4: The Department received comments from a customer stating: "The Board would like to commend the exam team for their performance during the examination process. They presented themselves in a professional manner and kept the exam process as seamless as possible. All the professional courtesies extended by the exam team were greatly appreciated."
Legal Support Specialist LaTosha Rose (LCA Division): The Department received comments from a customer stating: "Outstanding customer service and outstanding follow-up action--Ms. Rose responded with an excellent explanation and required the entity to be specific in their reply. Thank you so much! My funds were returned."
Administration Assistant Susan Weissinger (FIS Division): The Department received comments from a customer stating: "This email is in reference to the last minute good standing certificates that you prepared last Friday. I really appreciate your assistance, you gave me excellent customer service and helped me out in a tight last minute crunch! Thanks again."
Accountant Jeanetta Alexander (Administrative Division): The Department received comments from a customer stating: "I had occasion to call your department this week about a matter with which I had no familiarity. Since I didn't really know what my question was, I anticipated long times on hold while I got bounced around from one voice message to another. Instead, I was delighted to have my call answered by a friendly, live person! Although that person wasn't able to answer my question, they told me who to speak with and gave me the person's extension in case we got disconnected. Again, I was connected with a live person who was able to give me the information I needed, as well as other information that could address future questions. Amazing! Please extend my appreciation to your department for their excellent customer service."
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

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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"