Financial institutions today, 2010-07

Inside this issue:

National Credit

2

Union Share

Insurance Fund

(NCUSIF)

Assessments

Federal Agencies

2

Issue Final Rules to

Implement S.A.F.E.

Act Requirements

for Registration of

Mortgage Loan

Originators

DBF Recognizes

3

2009 Employee

Award Winners

Customer Service

4

Stars for the Month

of July

Action on

5

Applications for the

Month of July

Contact

8

Information

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

Monthly Bulletin #7

July 2010

Statement of Financial Accounting Standards Number 166
On January 1, 2010, Statement of Financial Accounting Standards Number 166 (FAS 166) took effect. According to FAS 166, all loan participations transferred after January 1, 2010, need to meet the definition of a "participating interest" in order to qualify for sales accounting treatment. Transfers that do not meet the definition of a participating interest are to be accounted for as secured borrowings. Among the criteria used to determine whether sales accounting can be applied to the transfer of a participating interest is whether the participation agreement is structured on a pro-rata basis as opposed to the use of last in first out (LIFO) or first in last out (FILO) provisions. Management is encouraged to consult with their accountants and reference the "Transfers of Financial Assets" section within the Call Report Glossary for additional details on the accounting and regulatory reporting treatment of participation loans under FAS 166.
Despite this change in accounting treatment, the Department's treatment of participation loans for legal lending limit purposes has not changed. The Department will continue to evaluate circumstances in which the use of LIFO and FIFO provisions in participation agreements may pose an excessive risk to institutions involved in the transaction. At this time, and consistent with the Department's policy prior to FAS 166, we typically recognize a loan participation sale for legal lending limit purposes except in those cases where the participation agreement provides the purchasing institution preferential "first out" treatment in the event of a default. Under such a circumstance, the selling bank retains a higher potential for loss than the purchasing bank whenever the collateral values prove to be insufficient to satisfy the debt in full. In general, when losses are to be borne by the selling bank in a greater proportion than the purchasing bank, the loan participation sale is not recognized by the Department for legal lending limit purposes.
DBF Outreach AND UPCOMING SPEAKING ENGAGEMENTS
Commissioner Braswell will be speaking to the GBA President/CEO Roundtable at Idle Hour Country Club in Macon on August 25th and 27th.
Senior Deputy Commissioner Steve Pleger will be speaking at the CBA Regulation & Taxation Committee meeting at CBA Headquarters in Atlanta on August 5th. Mr. Pleger will also be speaking to the GBA President/CEO Roundtable at Idle Hour Country Club in Macon on August 24th and 26th, and to the GCUA Idea Institute Conference at Brasstown Valley Resort in Young Harris on August 25th.
Deputy Commissioner for Supervision Kevin Hagler will be participating as a panelist at the August 12th FDIC Asset Purchaser, Investor and Minority Depository Institution (AIM) seminar in Atlanta, Georgia. Mr. Hagler will also be participating as a panelist at the August 24th CBA Regulatory Reform Act Conference being held at the law offices of Alston + Bird LLP.

"Safeguarding Georgia's Financial Services"

Page 2
National Credit Union Share Insurance Fund (NCUSIF) Assessments
National Credit Union Administration (NCUA) Letter to Credit Unions 10-CU-09 issued in June 2010 stated that the NCUA Board would consider an assessment for the NCUSIF later in 2010. This assessment will cover losses at natural person credit unions and is in addition to the 13.4 basis point Temporary Corporate Credit Union Stabilization Fund (TCCUSF) assessment that credit unions were required to report on the June 30, 2010 Call Report. Separating NCUSIF and TCCUSF assessments is designed to improve transparency of the NCUA's assessment process with the TCCUSF being used to cover the costs of corporate credit union losses. The NCUA Board projects the NCUSIF assessment to be within the range of 10-to-25 basis points. The actual amount of the NCUSIF assessment will be based on four factors:
1) Losses in failed natural person credit unions; 2) Exposure to further losses indicated by trends in credit unions identified as being in troubled status; 3) Earning's on the NCUSIF's assets; and 4) Growth in insured shares.
The NCUA recommends that credit unions budget for the financial impact of the NCUSIF assessment towards the middle of the 10-to -25 basis point range. It is expected that the assessment will be required to be reported on the September 30, 2010 Call Report. Management is encouraged to consult with their accountants on the specific accounting treatment for assessments.
Federal Agencies Issue Final Rules to Implement S.A.F.E. Act Requirements for Registration of Mortgage Loan Originators
On July 28, 2010, the Federal agencies ("agencies") issued final rules requiring residential mortgage loan originators ("MLOs") who are employees of national and state banks, savings associations, Farm Credit System institutions, credit unions, and certain of their subsidiaries (agency-regulated institutions) to meet the registration requirements of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E. Act). The S.A.F.E. Act requires MLOs who are employees of agency-regulated institutions to be registered with the Nationwide Mortgage Licensing System and Registry (NMLSR).
The final rules take effect on October 1, 2010. The agencies anticipate that the registry could begin accepting federal registrations as early as January 28, 2011. Employees of agency-regulated institutions must not register until the agencies instruct them to do so. The agencies will provide an advance announcement of the date when the registry will begin accepting federal registrations, and agency-regulated institutions and their applicable employees will have 180 days from that date to comply with the initial registration requirements.
Refer to the NMLSR website for further information and frequently asked questions: http://mortgage.nationwidelicensingsystem.org/fedreg/Pages/default.aspx
Access the press release and final rules on the FDIC's website at: http://www.fdic.gov/news/news/press/2010/pr10170.html

Page 3

DBF Recognizes 2009 Employee Award Winners

During meetings and other events held around the state between May and July, the Department recognized winners of its 2009 Employee Recognition Awards. This annual awards process formally recognizes outstanding employee performance during the previous calendar year. Awards presented this year were in three categories, including: the "Jenny Neville" Customer Service Award; Leadership Award; and Gold Medal Awards. "I think it's essential that we reward and celebrate outstanding performance. The annual awards program is just one of several ways in which we try to showcase excellent service and leadership skills," said Commissioner Rob Braswell.

The Jenny Neville Customer Service Award was presented to Deputy Commissioner for Non-Depository Financial Institutions Rod Carnes. This award is presented to an individual that has made exceptional contributions that exceeded expectations in delivering services to external and/or internal customers.

The Leadership Award was presented to District Director Melissa Sneed. This award is presented to an individual that has exemplified and promoted outstanding leadership qualities and behaviors.

Gold Medal Awards were presented to the following individuals:

Accounting Director I, Renee Martin

Supervisory Manager Mortgage Licensing Janet Anderson

Administrative Assistant Merian Johnson

Senior Assistant Financial Examiner Ryan Baker (District 1)

Supervisory Examiner Harold Carney (District 2) Senior Financial Examiner Michael Bryan (District 4)

Senior Financial Examiner Gloria Jack (District 3) Supervisory Examiner Joyce Jones (District 5)

Capital Markets Specialist Ernie Coats (District 8)

Gold Medal Award winners are selected each year from a list of nominees for their division or work area. This award is given to individuals who demonstrate one or more of the following criteria: Overall performance has consistently reflected a high level of service, trustworthiness, and respect; works effectively as part of a team to successfully accomplish a task or meet a goal; contributes to a group effort which has a significant impact on Department goals; and accepts responsibility and accountability in helping to advance the Department's mission, vision or goals.

OFFICE CLOSING
This is a reminder that the Department will be closed on Monday, September 6th for Labor Day.

Page 4
CUSTOMER SERVICE STARS FOR THE MONTH OF JULY
It is the Department's goal to provide excellent customer service by 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:
District 3 Examination Team The Department received comments from a customer stating: "I just wanted to let you know that I appreciated the support of the State examiners at our recent examination. They are very hard working and knowledgeable. We appreciate the analysis performed by your staff in the areas of Liquidity, Capital, Earning, Sensitivity to Market Risk, and loans. They participated in meetings and offered excellent ideas to improve policies and procedures. I look forward to working with them again."
Department/Mortgage Section The Department received comments from a customer stating: "This note is to thank the entire Department for the kind, courteous and professional assistance you have provided me since 2002. We are very fortunate in Georgia to have the kind of "State Department" that really works!! I am leaving the industry but I wanted to be sure to let the Department know of my respect for your attention to detail and your professional but kind assistance with every request I have made to many of you over the years."
Senior Financial Examiner Janet Bryan (District 4) The Department received comments from a customer stating: "We especially want to thank your examiner, Janet Bryan, for all of her guidance and patience with our credit union. She has been very beneficial to the management of our credit union. Please extend our sincere thank you to Janet Bryan."
Administrative Secretary Sheila Ball and Director of Communications and Planning Carol Webb The Department received comments from a customer stating: "Carol, Thank you for going out of your way to assist me. Georgia is the final state I need to research registration information for and it has been a challenging one. You have been a great help to me. Please also forward my thanks to Sheila for her positivity and exceptional demeanor on the phone. Thank you very much."
CONGRATULATIONS AND GREAT JOB TO THIS MONTH'S CUSTOMER SERVICE STARS!!

Page 5

Action on Applications for the Month of July:
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 July 2010.

FINANCIAL INSTITUTION HeritageBank of the South Albany

APPLICATIONS TO ESTABLISH A BRANCH OFFICE

BRANCH OFFICE Valdosta Roosevelt Drive Branch Office 103 Roosevelt Drive Valdosta, GA 31602 Lowndes County

APPROVAL 06-16-2010

BEGIN BUSINESS 07-05-2010

First State Bank of Blakely Blakely

Bainbridge Branch Office
1200 East Shotwell Street
Bainbridge, GA 39819 Decatur County

02-18-2010

07-01-2010

Community & Southern Bank Carrollton

Riverwood Branch Office 3333 Riverwood Parkway, Suite 100
Atlanta, GA 30339
Cobb County

Pending

Greater Rome Bank Rome

Calhoun Branch Office
305 West Belmont Drive Calhoun, GA 30701
Gordon County

07-21-2010

Southern Bank Sardis

Gibson Branch Office
21 College Street
Gibson, GA 30810 Glascock County

06-04-2010

07-29-2010

FINANCIAL INSTITUTION Synovus Bank Columbus
Eastside Commercial Bank Conyers

APPLICATIONS TO CHANGE LOCATION

CHANGE LOCATION OF Baytree Branch Office From: 1731 Norman Drive Valdosta, GA 31601 Lowndes County To: 1518 Baytree Road Valdosta, GA 31602 Lowndes County

APPROVAL Pending

Duluth Branch Office
From: 2905 Premiere Parkway, Suite 150 Duluth, GA 30097
Gwinnett County
To: 3175 Satellite Boulevard Duluth, GA 30097
Gwinnett County

07-09-2010

EFFECTIVE

Page 6

FINANCIAL INSTITUTION Global Commerce Bank
Doraville

CHANGE LOCATION OF Main Office
From: 5150 Buford Highway, Suite B-130
Doraville, GA 30340 DeKalb County
To: 7130 Buford Highway NE
Doraville, GA 30340 DeKalb County

APPROVAL 07-05-2010

EFFECTIVE

PREVIOUS NAME Bank of Upson Thomaston
Bank of Valdosta Valdosta

NOTICE OF CHANGE IN NAME NEW NAME SouthCrest Bank
Sunrise Bank

APPROVAL Pending

EFFECTIVE

07/30/2010

07/30/2010

FINANCIAL INSTITUTION (SURVIVOR) Alma Exchange Bank & Trust Alma, GA
Alma Exchange Bank & Trust Alma, GA
Alma Exchange Bank & Trust Alma, GA
Bank of Upson Thomaston, GA
Bank of Upson Thomaston, GA
Bank of Upson Thomaston, GA
Bank of Valdosta Valdosta, GA
Bank of Valdosta Valdosta, GA

FINANCIAL INSTITUTION MERGERS

MERGED INSTITUTION Peoples State Bank & Trust Baxley, GA
Citizens State Bank Kingsland, GA
Pineland State Bank Metter, GA
The First National Bank of Polk County Cedartown, GA
Bank of Chickamauga Chickamauga, GA
Peachtree Bank Maplesville, AL
Peoples State Bank Jeffersonville, GA
Sunrise Bank of Atlanta Atlanta, GA

APPROVAL Pending

EFFECTIVE

Pending

Pending

Pending

Pending

Pending

07-30-2010

07-30-2010

07-30-2010

07-30-2010

Page 7

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

FORMATIONS ONLY
BANK HOLDING COMPANY State Bank Financial Corporation Atlanta, GA

TO ACQUIRE
State Bank and Trust Company Pinehurst, GA

APPROVAL 07-09-2010

Heritage Financial Group, Inc. Baltimore, MD

HeritageBank of the South Albany, GA

Pending

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

CREDIT UNION Florida Commerce Credit Union
Tallahassee

RESIDENTIAL GROUP COMMON BOND Thomas County, GA

APPROVAL 07-22-2010

CHECK CASHER LICENSES ISSUED

CITY Ashburn
Demorest
McDonough Blackshear
Conyers
Lithia Springs Oglethorpe
Tifton
Atlanta Greenville
Columbus
Columbus Georgetown
Cumming
Valdosta Commerce
Cumming

APPLICANT NAME * CMM Properties, Inc.
Community Lending & Finance Company, LLC
Fastlane Superstore, LLC * Himanshi Food Mart, Inc.
Honey Creek Check Cashing & Wireless, Inc.
Jalaram Associates, LLC * Kala Vrund, LLC
* Margarito de la Paz
Maya Investments, Inc. Muntaha Rana, Inc.
Sadhima, Inc.
Sharoan Enterprises, Inc. * Shayona Food Corporation
* TGAA, LLC
* Vraj & Bhoomy Corporation * Warren's Package, Inc.
ZV Services, LLC

TRADE NAME Piggly Wiggly #136 Community Finance
HIMANSHI FOOD MART Honey Creek Check Cashing Skyview Food Mart Wright's Grocery Taqueria Altamirano Exxon Food Mart Rana Tobacco and Convenience Store Jerry's Food Mart Wild Bill's Jewelry & Pawn Yogi Food Mart Citgo Quick Mart
Enlace Latino

* =Registered (O.C.G.A. 7-1-700 et al)

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 8
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/processors, lenders and loan originators, 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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