Financial institutions today, 2021 September

Inside this issue:

Federal Reserve

2

Emergency

Communications

Systems Test

Federal Reserve

3

Board Paper on

Partnerships between

Community Banks

and Fintech

Companies

Applications

4

The s pecific docume nts that co mp ris e the G uidance a re: Examinati on F req uency, Proces s ing, an d Turna ro und Goals Developme nt of Pol icies by F inancial Ins tit utio ns
News and topics of interest to financial institutions regulated by the Department of Banking and Finance
September 2021
National Community Bank Survey
The eighth annual community bank survey by the Conference of State Bank Supervisors' (CSBS) details the lingering effect of the Covid-19 pandemic on local economies. The survey results highlighted a new concern among community bankers: historic levels of deposits and narrow net interest margins.
The survey of community bankers revealed a shift from last year, when local business conditions were foremost on their minds. In this survey, the bankers reported abundant liquidity; however, 52% of community banks also described loan demand as a "very important" challenge with a decline in lending, particularly in the business, agricultural and commercial real estate categories.
The pandemic also created some positive long-lasting effects, with more than 40% of community bankers saying it increased efficiency and more than 70% of them saying prospects for long term lending were improved by new or closer customer relationships.
Other key findings from the 2021 survey include: Cybersecurity concerns are on the rise, with 81% of respondents calling it a very important risk - more than double the rate of any other type of operational risk. The cost of technology leapt from one of the least important issues two years ago to among the most important, with nearly 47% of bankers identifying it a "very important" challenge. Concern about the cost of funds is on the rise as it was described as a "very important" risk by 22% of respondents compared to a year ago when it barely registered as a challenge. Regulatory risk continues to be identified as a challenge, with nearly 50% of bankers calling it "very important."
CSBS released the survey results at the start of the Community Banking in the 21st Century Research and Policy Conference, which was sponsored by CSBS, the Federal Reserve System and the Federal Deposit Insurance Corporation and held virtually September 28th and 29th. The conference brings together community bankers, academics, policymakers and bank regulators to discuss the latest research on community banking. The full survey results can be accessed here: https:// www.communitybanking.org/~/media/files/publication/cb21publication_2021.pdf. The Department expresses it's gratitude to those community bankers that completed the survey and contributed to this very important research.
October is National Cybersecurity Awareness Month
Cybersecurity Awareness Month is observed each October and encourages both consumers and businesses to take steps to protect themselves from cyberattacks. The theme of Cybersecurity Awareness Month 2021 is Focusing on the Fundamentals. While many believe that most cybersecurity breaches are the act of sophisticated

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September 2021

hackers and foreign agents, most successful cyberattacks are because of a failure to follow well-established cybersecurity practices.

To ensure your institution is following these best practices, we encourage you to take the steps to collaborate with your regulators and your peers. Your institution and Georgia are not alone on an island. Cybersecurity has no borders and crosses infrastructures. We must collaborate and share information.

To help you better collaborate and focus on the fundamentals, we recommend you follow this three-step process now to get your organization started:

1. Select a specific industry recognized cybersecurity framework(s), for example NIST Cybersecurity Framework, FFIEC Cybersecurity Assessment Tool, and the Center for Internet Security Controls.
2. Adopt a budget for meeting your cybersecurity strategy within a reasonable time period. 3. Hire an audit firm to review the implementation of your framework rather than for minimum regulatory
guidelines (a mock FFIEC exam).

Staying cyber-secure is not as simple as completing a single checklist. It is not a project that you do once and are finished. Instead, it is an ongoing process that evolves with the industry and emerging threats. By following the above steps, you will be better positioned for a more secure future.

The Department works with other state banking regulators across the U.S., federal regulatory agencies, the U.S. Treasury Department, Federal Law Enforcement agencies, and a task force of community bank CEOs to identify ways to protect institutions from cyber-attacks. This Bankers Electronic Crimes Task Force (BECTF) addresses the security needs of community banks and provides tools and guidance regarding practices that other community banks are following.

Links and Resources:
Keep My Bank Secure Website Anatomy of a Cyber Attack Cybersecurity Strategy Video
CSBS Ransomware Self-Assessment Tool (R-SAT) Non-Bank R-SAT
US Government Stopransomware.gov The Joint Cyber Defense Collaborative Leading the Nation's Cyber Defense NIST Recognizes Cybersecurity Awareness Month CIS Recognizes Cybersecurity Awareness Month National Cybersecurity Alliance Recognizes Cybersecurity Awareness Month
Cybersecurity & Infrastructure Security Agency (CISA) CISA Cybersecurity Awareness Month Site

Federal Reserve Emergency Communications Systems Test
The Federal Reserve Bank's semi-annual tests are conducted by the Emergency Communications System (ECS) to ensure contact information is up to date for all registrants.
The next test will occur Tuesday, October 12, 2021. During this test, the Federal Reserve will be verifying registrants' business email address, business telephone number, and business mobile phone number.
ECS is only used in emergencies; however, it is not uncommon for individuals to forget they have registered for the ECS service. If you have any questions or concerns, please feel free to contact the ECS Support Center at 877-327-5333 or ecs.support@stls.frb.org.

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September 2021

Federal Reserve Board Paper on Partnerships between Community Banks and Fintech Companies

On September 9, 2021, the Federal Reserve Board published a paper intended to serve as a resource for community banks as they embark on responsible innovation. It provides an overview of the evolving landscape of community bank partnerships with fintechs, including the benefits and risks of different partnership types, and key considerations for engaging in such partnerships. While these lessons may apply broadly to the community bank sector, each institution should evaluate how fintech partnerships fit into their own strategic objectives based on their research, risk profile, and third-party risk management practices. Click here to access the press release and here to access the paper.

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ACTION ON APPLICATIONS FOR THE MONTH

September 2021

The following is a summary of official action taken by the Department on certain applications by Georgia statechartered financial institutions, petitions for certificate of incorporation of financial institutions, and other matters of interest during the month of September 2021:

FINANCIAL INSTITUTION MERGERS

FINANCIAL INSTITUTION
Pinnacle Bank Elberton, GA

MERGED INSTITUTION
Liberty First Bank Monroe, GA

APPROVAL DATE
09/08/2021

EFFECTIVE DATE

North Georgia Credit Union Toccoa, GA

Patterson Pump Federal Credit Union Toccoa, GA

09/13/2021

APPLICATIONS FOR DE NOVO INSTITUTIONS

FINANCIAL INSTITUTION
Moultrie Bank & Trust Moultrie, GA

APPROVAL DATE pending

APPLICATIONS TO ESTABLISH A BRANCH OFFICE

BEGIN BUSINESS DATE

FINANCIAL INSTITUION Synovus Bank Columbus, GA

BRANCH OFFICE 170 Saint Francis Street Mobile, Alabama

Georgia's Own Credit Union Atlanta, GA

881 Peachtree Street Atlanta, Georgia

Delta Community Credit Union 3920 West Terminal Drive

Atlanta, GA

Salt Lake City, Utah

River City Bank Rome, GA

206 Hwy 515E Blairsville, Georgia

Georgia Banking Company Atlanta, GA

6340 Sugarloaf Pkwy Suite 100 Duluth, Georgia

Georgia Banking Company Atlanta, GA

690 Collins Hill Road Lawrenceville, Georgia

The Piedmont Bank Peachtree Corners, GA

995 Riverside Drive Gainesville, Georgia

APPROVAL DATE
09/02/2021 09/15/2021 09/15/2021 09/14/2021 09/27/2021
09/27/2021 09/28/2021

EFFECTIVE DATE

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APPLICATIONS TO ACQUIRE A FINANCIAL INSTITUTION

September 2021

FINANCIAL INSTITUTION
First Volunteer Corporation Chattanooga, TN
ST HLDGS, Inc. Orlando, FL

MERGED INSTITUTION
FBD Holding Company Dalton, GA
Rochelle State Bank

APPROVAL DATE
09/02/2021

EFFECTIVE DATE

04/28/2021

06/04/2021

APPLICATIONS TO CHANGE LOCATION

FINANCIAL INSTITUION

CHANGE LOCATION OF

Ameris Bank Atlanta GA

From: 3700 Roswell Road Atlanta, Georgia 30342

To: 3724 Roswell Road Atlanta, Georgia 30342

APPROVAL DATE
07/13/2021

EFFECTIVE DATE
09/09/2021

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September 2021

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Department of Banking and Finance 2990 Brandywine Road, Suite 200 Atlanta, Georgia 30341-5565 Phone: (770) 986-1633

The Department is the state agency that regulates and examines Georgia state-chartered banks, state-chartered credit unions, state-chartered trust companies, international banking organizations, 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, consumer installment loan companies, check cashers, sellersissuers of payment instruments, and money transmitters.
Our Mission is to promote safe, sound, competitive financial services in Georgia through innovative, responsive regulation and supervision.
Our Vision is to support vibrant economic growth and prosperity in Georgia.