Financial institutions today, 2017 June

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

June 2017
Inside this issue: Department of Banking and Finance Adopts Final Rules

Action on Applications 2 On June 29, 2017, the Department of Banking and Finance ("Department") adopted Final Rules

for the Month

that have been filed with the Secretary of State's Office. Pursuant to O.C.G.A. 50-13-6, the Final

Rules will be effective on July 19, 2017. Prior to adopting the Rules, the proposed Rules along with

a synopsis were distributed on May 25, 2017. The Department received four (4) written comments

regarding the proposed Rules. The Department fully considered the comments it received and

made substantive revisions to proposed Rule 80-13-1-.02 addressing the capital requirements for

trust companies in response to the comments.

The Department believes that the Rules as adopted encourage safety and soundness, promote safe and fair mortgage lending, and conform to the law. To view or download the Final Rules, go to the Regulations page on the Department's website (http://dbf.georgia.gov/dbf-regulations) and select the appropriate link for the Final Rules, or you may access them directly from https:// dbf.georgia.gov/sites/dbf.georgia.gov/files/related_files/document/DBF-Final-Rulemaking_6-2917.pdf.

Implementation of "Sensitivity to Market Risk" Rating Component for Credit Unions
On June 26, 2017, the Department sent a letter to all Georgia state-chartered credit unions announcing the implementation of the Sensitivity to Market Risk, or "S" component as a separate and distinct regulatory examination component rating, rather than as a factor within the Liquidity component. The letter may be viewed here. The change will go into effect for all examinations commencing after January 1, 2018. The Department's implementation of the "S" component is consistent with the Uniform Financial Institutions Rating System that has been applied to the banking system since 1997. As of May 26, 2017, regulatory agencies in seventeen states have also implemented the use of the "S" component in the credit union CAMEL rating system.
While the National Credit Union Administration (NCUA) has not adopted the "S" component, NCUA Letter to Credit Unions 16-CU-08 states that the timetable for adoption of the "S" component is under review. The Letter further states that removing interest rate risk from the Liquidity component rating and moving it to a standalone "S" component would: Increase the clarity and transparency surrounding how interest rate risk and "sensitivity to
market risk" are judged by separating them entirely from the liquidity factors; Enhance trend analysis and identification of both liquidity and interest rate risk-related threats; Improve the allocation of specialized resources toward market risk outliers; Impose a negligible regulatory burden on credit unions; and Align the NCUA's regulatory approach more closely with peer supervisors.
The Department agrees with the NCUA's analysis and believes implementation of the distinct "S" rating is prudent at this time. The Department will publish additional bulletin articles in the coming months to further clarify the "S" component implementation. Any questions can be submitted to Supervisory Manager Justin McElheney at (770) 986-1643 or JMcElheney@dbf.state.ga.us.

Georgia Bankers' Input Needed on 2017 National Survey
The 2017 National Survey on Community Banks, available at https://sri.cornell.edu/CB21/2017/, takes approximately 20 minutes to complete. The Department strongly encourages our community bankers to complete this survey. Thank you to all who have already participated.

Page 2
Action on Applications for the Month

June 2017

The following is a summary of official action taken on applications by state financial institutions under Title 7, Chapter 1 of the O.C.G.A. and petitions for certificate of incorporation of financial institutions and other matters of interest during the month of June 2017:

APPLICATIONS TO ESTABLISH A BRANCH OFFICE

FINANCIAL INSTITUTION

BRANCH OFFICE

APPROVAL BEGIN BUSINESS

DATE

DATE

DOCO Credit Union Albany

Thomasville 14298 US Highway 19 Thomasville, GA 31757 Thomas County

06-27-2017

Affinity Bank Atlanta

Main Office 400 Galleria Parkway, Suite 900 Atlanta, GA 30339 Cobb County

Pending

SunTrust Bank Atlanta

Mouse Creek 655 Paul Huff Parkway NW Cleveland, TN 37312 Bradley County

06-09-2017

SunTrust Bank Atlanta

Caldwell Crossing 12198 University City Boulevard Harrisburg, NC 28075 Cabarrus County

06-09-2017

SunTrust Bank Atlanta

Rutland Commons Chamberlayne Avenue & Atlee Road Mechanicsville, VA 23116 Hanover County

06-09-2017

SunTrust Bank Atlanta

Morristown 230 Dr. Martin Luther King, Jr. Parkway Morristown, TN 37813 Hamblen County

06-09-2017

SunTrust Bank Atlanta

Purcellville 160 Purcellville Gateway Drive Purcellville, VA 20132 Loudoun County

06-09-2017

Southeastern Bank Darien

Saint Simons Island 21 Market Street Saint Simons Island, GA 31522 Glynn County

06-02-2017

First Intercontinental Bank Doraville

Old Denton Road 2541 Old Denton Road Carrollton, TX 75006 Dallas County

03-16-2015

06-05-2017

HALLCO Community Credit Union Gainesville

Flowery Branch 5900 Spout Springs Road Flowery Branch, GA 30542 Hall County

09-28-2016

06-01-2017

Page 3
Associated Credit Union Norcross
The Peoples Bank of Georgia Talbotton

Dawsonville 4200 Dawson Forrest Road Dawsonville, GA 33989 Dawson County
Buena Vista 103 North Broad Street Buena Vista, GA 31803 Marion County

03-08-2017

June 2017 06-26-2017

06-06-2017

SURVIVING INSTITUTION PrimeSouth Bank Blackshear, GA United Community Bank Blairsville, GA The Piedmont Bank Norcross, GA SRP Federal Credit Union North Augusta, SC
Coosa Valley Credit Union Rome, GA
Guardian Bank Valdosta, GA CharterBank West Point, GA

FINANCIAL INSTITUTION MERGERS
MERGED INSTITUTION Atlantic National Bank Brunswick, GA
Horry County State Bank Loris, SC
Mountain Valley Community Bank Cleveland, GA
Richmond County Health Department Employees Credit Union Augusta, GA
North Georgia Community Federal Credit Union Ringgold, GA
Pelham Banking Company Pelham, GA
Resurgens Bank Tucker, GA

APPROVAL EFFECTIVE

DATE

DATE

Pending

06-13-2017

Pending

04-11-2017 06-16-2017

06-29-2017

Pending Pending

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

BANK HOLDING COMPANY United Community Banks, Inc. Blairsville, GA
Piedmont Bancorp, Inc. Norcross, GA

TO ACQUIRE HCSB Financial Corporation Loris, SC
Mountain Valley Bancshares, Inc. Cleveland, GA

APPROVAL DATE 06-05-2017
06-06-2017

WB&T Bankshares, Inc. Waycross, GA
Charter Financial Corporation West Point, GA

PBC Bancshares, Inc. Pelham, GA
Resurgens Bancorp Tucker, GA

Pending Pending

Page 4

June 2017

The Department is the state agency that regulates and examines Georgia state-chartered banks, state-chartered credit unions, state-chartered trust companies, and bank holding companies that own Georgia state-chartered financial institutions. The Department also has responsibility for the supervision, regulation, and examination of Merchant Acquirer Limited Purpose Banks chartered in Georgia.
In addition, the Department has regulatory and/or licensing authority over mortgage brokers, lenders and processors, mortgage loan originators, check cashers, sellers-issuers of payment instruments, money transmitters, and international banking organizations.
Our Mission is to promote safe, sound, competitive financial services in Georgia through innovative, responsive regulation and supervision.
Our Vision is to be a willing and able partner with our regulated entities in order to support vibrant economic growth and prosperity in Georgia.

Subscribe to Receive this Publication:
Notice of this publication is delivered to interested parties via e-mail. To subscribe to this publication as well as other items of interest, please visit our website at https://dbf.georgia.gov/.
Department of Banking and Finance 2990 Brandywine Road, Suite 200 Atlanta, Georgia 30341-5565 Phone: (770) 986-1633 Fax: (770) 986-1654 or 1655 http://dbf.georgia.gov/