GCFM: Summer 2023

GEORGIA CO M M U N I T I E S

F I R S T

SUMMER 2023

BUILDING ON THE PAST

LOOKING TO THE

FUTURE

CONNEC T HIGHLIGHTS | SOLUTIONS ISSUE | MEET CBA BOARD

CONTENTS

F E AT U R E S SUMMER 2023 C B A S TA F F John McNair President & CEO john@cbaofga.com Lori Godfrey Executive Vice President and Chief of Staff, Government and Regulatory Relations lori@cbaofga.com

Connections, Culture, & Community pg.12.

Advocacy Speakeasy Style pg.7.

2

Commitment to Execute on Vision

professional development

3

L.E.A.D.

26

Education Buzz

ADVOCACY

27

Enhance Your Cyber Security Posture

5

Town Hall Talks

28

7

A Night to Remember/ICBA Capital Summit

We Are Back in Person with the Regulators

29

9

CBA Fall Clay Shoots/ CBA Takes You Out to the Ballgame

1071 Resources/Popular Schools & Conferences

30

11

$25 to Win $2,500

Community Bank Focused Compliance Education

33

ICBA Affiliate Education Program

s p ot l i g h ts

12

Connections, Culture, & Community

14

Get to Know 2023-2024 CBA Chairman Neil Stevens

15

Welcome 2023-2024 CBA Board

17

Jessica Hudson Named CBA LEAD Board Chair

18

Building on the Past Looking to the Future 100+ Year Old Banks

member services

34

Value Added – High Baseline Yields Accompany Surprisingly Wide Spreads

36

7 Ways Open Banking Can Benefit Your Financial Institution

39

Small Business Administration – Making Strides to Encourage Small Business

40

Looking For Solutions? Look To CBA First!

42 Preferred Service Providers

@CBAofGeorgia

@CBAGeorgia

Lindsay Greene Senior Vice President Member Services lindsay@cbaofga.com Cassie Cornell Assistant Vice President Digital Strategy and Professional Development Marketing cassie@cbaofga.com Becky Soto Assistant Vice President Professional Development and LEAD Board becky@cbaofga.com Connie Shepard Assistant Vice President Professional Development and Member Engagement connie@cbaofga.com Ellen Shea, CMP Director of Association Services ellen@cbaofga.com Gwen Lanaghan Staff Accountant gwen@cbaofga.com

On the cover: Celebrating a rich history – just a few of the 40+ community banks in Georgia who have been in business over 100 years. s t ay co n n e c t e d

Kristi Greer Senior Vice President Professional Development kristi@cbaofga.com

@company/ cbaofgeorgia

Community Bankers Association of Georgia 1640 Powers Ferry Road SE, Building 28, Suite 100, Marietta, GA 30067-1425 (770) 541-4490 or (800) 648-8215 • Fax (770) 541-4496 | www.cbaofga.com • cba@cbaofga.com

Su m m e r 2 0 2 3 | G e org i a Co m m un i ti es F i rs t | 1

VANTAGE POINT

John McNair President & CEO Community Bankers Association of Georgia

Commitment to Execute on Vision Around this time five years ago I met with CBA leadership bankers to discuss my candidacy for the President/ CEO job opening. During the many individual and group conversations, it became apparent that the leadership bankers had a vision for what they wanted CBA to become.

It was clear to me that there were several core tenets, they were: -Remaining independent: CBA was started 55 years ago to serve as the exclusive voice for Georgia’s community banking industry. Maintaining CBA’s independence was as important to them as it was for those bankers that started the association.

-Advocacy: Expanding CBA’s advocacy presence both in-state and with our federal legislators was extremely important. With Dodd/Frank in the not-too-distant past, CBA’s leadership bankers recognized the need for CBA to carry the community bank message directly to our legislators.

-Education: As the primary source of community bank education in Georgia, increasing the focus on up to date and forward-thinking curriculum was also a major item.

Additionally, making CBA education programs more accessible was a top priority.

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Knowing that that leadership had a vision for what they wanted CBA to become, the key question was whether there was a commitment to execute. As I sit here five years later, I can answer clearly that CBA’s leadership bankers were EXTREMELY committed. At every turn, CBA leadership bankers and our partner firms dedicated their time, talents, and financial support to transform the association into the organization they wanted. Their contributions often go unnoticed, which is why I wanted to take this opportunity to say THANK YOU and express my sincere gratitude for their collective commitment to execute on the vision.

Moving forward, CBA’s leadership continues to evaluate and evolve its collective vision for the association. A formal strategic planning process is currently underway and will result in the setting the vision and direction for the next several years. Once again, a commitment to execute will be required by all and I have every confidence that that will occur. We have an amazing group of leadership bankers that serve on our Board, LEAD Board, and committees.

Their collective commitment is inspiring and motivating for all associated with CBA and especially for all of us that proudly serve as CBA staff. Stay tuned in and engaged as I believe the future is bright and ours to determine.

FROM THE TOP

Neil Stevens President & CEO Oconee State Bank, Watkinsville 2023-2024 CBA Chairman

L.E.A.D. It is a pleasure to serve as the 2023/2024 CBA Chairman.

In my opening speech at our Connect Convention this past June at The Charleston Place, I outlined Four Focus Items for the coming year. These four items spell the acronym L.E.A.D.

L-Love Our Members E-Equip Our Members A-Affirm Our Members D-Develop Our Members In the next four issues of Georgia’s Communities First, I will briefly unpack one of these focus items.

In this issue, let’s begin with what it means to “Love Our Members.” In his well-known letter to the church in Corinth, Greece, the Apostle Paul probably said it best of all. We’ve probably all heard parts of the famous thirteenth chapter at a wedding or two over the years, where he writes, “Love is patient, love is kind,” and so on. But the first part of that portion of his discussion on love is what we need to never forget. He explains that no matter how eloquent, or discerning, or generous, or faithful, or hardworking we are, if our heart and actions are void of love, they mean nothing.

Steven Furtick said it this way, “Love is not words, it’s actions, and love isn’t feelings, it’s a decision.”

I am far from perfect and constantly fail at showing genuine, authentic love to others. But, I am committed to improving.

As the CBA Chairman, what are some ways I can demonstrate love to our members? Here are three: 1.

By Recognizing Our Members.

We want to recognize our community banks in formal and informal ways. But, most importantly, we want to do it in a way that embraces the contributions of everyone, not just the contributions that are tied to formal metrics. Such contributors include those in your banks who get to work well before an important meeting to make sure the conference

room is in perfect order. The clerical level employee, who is active in local charity work, giving freely of his or her time and energy to help the disadvantaged. Or the single mom who lost her husband two years ago in a tragic accident, but continues to perform her daily duties flawlessly with energy and grace. Over the next year, I will commit to recognizing our members in unique ways that makes an impact on the life of every employee in your banks.

2.

By Being a Friend to Our Members.

Being a “friend” in the sense I am speaking of is not necessarily spending time together away from the workplace. At its core, it is showing that we care about our members individually, and value them, according to who they are, not what position they hold. As we move through the year, I want to get to know our members better in order to become a friend who loves through caring.

3.

By Intentional Listening.

A number of years ago, I was given an extensive personality assessment. My number one area of improvement was TO LISTEN BETTER! When I mentioned this to my wife, Tricia, she said, “You didn’t need an assessment to tell you that.

You simply needed to ask me.” By nature, I am not a good listener. But over the next year, it is my desire to listen intently to our members. What are your greatest desires, needs, struggles, etc. that the CBA can help you with? By listening better, I hope to help the CBA serve your bank in remarkable ways.

I am excited about the coming year. I am committed to demonstrating love to you (our members) by recognizing you, being your friend, and listening to you with intentionality.

I appreciate the opportunity to serve as your Chairman.

Sincerely,

Su m m e r 2 0 2 3 | G e org i a Co m m un i ti es F i rs t | 3

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ADVOCACY

CBA Advocacy Town Hall Talks

Held in Cordele, Dalton, and Eatonton, this year’s Town Hall Talks showcased CBA’s grassroots advocacy efforts.

Led by CBA Chief of Staff and EVP of Gov and Reg Relations, Lori Godfrey, CBA is leading the charge in getting our message out in all parts of Georgia. Special thanks to Hunter Loggins and National Federation of Independent Business (NFIB) for participating and making these events available for their small business members as well.

Keep your eyes peeled, more dates to be announced soon!

Su m m e r 2 0 2 3 | G e org i a Co m m un i ti es F i rs t | 5

Corner GENERAL COUNSEL

legal news and updates for cba members

Have a topic you would like to see covered in “General Counsel Corner?”

Email us at generalcounselcorner @ jamesbatesllp.com

cbahotline

@ jamesbatesllp.com

Summer 2023

FDIC REPRESENTMENT CLARIFICATION

By: Doroteya N. Wozniak

On June 16, 2023, the Federal Deposit Insurance Corporation (“FDIC”) issued an updated guidance (FIL32-2023) revising its prior Supervisory Guidance on Multiple Re-Presentment NSF Fees (FIL-40-2022) to provide certain clarifications on its supervisory approach for corrective action. The key take away is that FDIC will consider the likelihood of substantial consumer harm in deciding whether to request a lookback review.

For any financial institutions that have self-identified and fully corrected prior to their consumer compliance exam, FDIC will generally not cite UDAAP violations.

FDIC also retained its prior stance that if examiners identify violations of law due to re-presentment NSF fee practices that have not been self-identified and fully corrected prior to a consumer compliance examination, FDIC will evaluate appropriate supervisory or enforcement actions, including civil money penalties and restitution, where appropriate.

Under the previous guidance, institutions that had issues accessing accurate ACH If you have any quesitons please contact data were considered as having made Doroteya Wozniak at (404) 997 6031 or full corrective action if the institutions dwozniak@jamesbatesllp.com. self-corrected this issue and provided restitution to harmed customers for transactions occurring two (2) years prior to the date of FIL-40-2022. Under the revised guidance, FDIC notes that it has observed extensive challenges in identifying representment items, and, as a result, FDIC does not intend to request a lookback review unless there is a likelihood of substantial consumer harm.

PRESENTED BY GEORGIA’S LAW FIRM: OFFICES “General2023 Counsel Corner,” a recurring column featuring legal news and information of interest to 6 | ww w.cbaofga.co m | Summer CBA members, is brought to you by James-Bates-Brannan-Groover-LLP. Visit us at jamesbatesllp.com MACON + ATLANTA + ATHENS

ADVOCACY

A Night to Remember:

Supporting Advocacy Efforts Speakeasy Style!

Casino tables, 1920’s attire, cork pull, and silent auction made for a fun night at CBA’s Speakeasy event supporting community bank advocacy efforts. Held at the The Riviera, a revitalized art deco theater, convention attendees enjoyed desserts, beverages, music and competition at the blackjack, poker, roulette, and craps tables. Guests enjoyed the popular Cork Pull for a chance at bottles of wine or bourbon. The Silent Auction featured a variety of cool items including sporting events, jewelry, electronics, and much more. Thanks to everyone who dressed in theme, donated to the auction, and supported these important fundraising efforts.

2023

Georgia Community Banks Well Represented at 2023 ICBA Capital Summit “The CBA delegation had a great visit to Washington DC as part of the annual ICBA Capital Summit. The resounding message from the Georgia Congressional delegation was that the community banking industry is different from other financial services providers and clearly should not have to pay for the failures of a few large, regional banks.

This recognition was shared on a bi-partisan basis as was the support for a deposit insurance carve out of the special assessment,” said John McNair, President & CEO of Community Bankers Association of Georgia. “As single constituent advocates, CBA and ICBA will continue to exclusively champion the community bank message both in Atlanta and in Washington, DC.” Along with McNair, bankers making the trip to DC included: George Andrews, Unity National Bank; Scott Curry, First State Bank of Randolph County; Frank Griffin, Flint Community Bank; Stephen Lewis, First National Bank of Coffee County; Ron Quinn, Peach State Bank & Trust; Bran Thompson, South Georgia Bank, and Derek Williams, Century Bank & Trust. Special thanks to Capital Summit sponsors for their support and participation: ICBA Securities, IntraFi, James Bates Brannan Groover LLP, and Newcleus. Thanks also to FHLB Atlanta for their hospitality in DC.

Su m m e r 2 0 2 3 | G e org i a Co m m un i ti es F i rs t | 7

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ADVOCACY

CBA Fall Clay Shoots – Right on Target CBA’s fall clay shoots bring together bankers, associate member companies, and community banking friends to honor two legendary community bankers. Great locations, beautiful fall weather, lunch and friendly competition make the clay shoots a popular event.

ATL vs PIT, Sept 9th - CBA of Georgia CBA takes you out to the ballgame. Root, root, root for the CBA Team!

Our CBA members, families, and friends have a great opportunity to come together for a night of networking and cheering on our favorite Atlanta Braves. Help us start an annual event with CBA supporting one of our favorite local teams “BATTER UP!” - The Game The Braves play the Pittsburgh Pirates on Saturday, September 9th and we hope that you will join us for a memorable event. The game starts at 7:20 pm at Truist Park in Atlanta.

Show Your CBA Pride We encourage our members to show their CBA pride and wearing their 2023 Advocacy shirt. If you don’t have an advocacy shirt, we encourage you to wear the Association colors of navy blue and green!

Banker’s MVP Tailgate (Exclusively for bankers, their families, and tailgate sponsors) Those attending can join their fellow CBA members and their families for some networking and tailgating at the Galleria 500 Land located near the 400 and 600 buildings on Cobb Galleria Parkway. We will have family games, food trucks and more. After the tailgating, we will all walk together to the stadium.

Tickets Tickets are $43 a ticket with a portion of the proceeds from ticket sales going directly to the CBA Advocacy Fund.

Everyone will purchase their tickets directly with the Braves.

Su m m e r 2 0 2 3 | G e org i a Co m m un i ti es F i rs t | 9

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ADVOCACY

$25 to Win $2,500 Grass Roots Advocacy - Join us in Raising Awareness and Funding for Advocacy Efforts.

We are selling raffle tickets at $25 towards a chance to win $2500. Ask a co-worker or friend to go in with you and increase your chances to win. Monies raised are used to support the hard work your association is doing to support the community banking industry by lobbying and educating legislators with information that will help make decisions for the best of our community banking stakeholders. Last day to purchase tickets is September 28th!

Drawing to be held September 29, 2023 at the LEAD Retreat. *You do not have to be present to WIN!

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SPOTLIGHT

June 7 – 11, 2023 | The Charleston Place | Charleston, SC

CBA's 55th Annual Convention & Mini-Trade Show Connections, Culture, & Community What an incredible time for everyone who attended CBA’s 55th Annual Convention CONNECT! Bankers and partner firms left energized and inspired, armed with new information to help their bank continue to thrive.

Special thanks to CBA’s Convention Committee for their guidance over the last year to plan a meeting with the perfect balance of education and networking time. Held at beautiful Charleston Place, events ranged from the 1920’s casino night advocacy event to the Chairman’s Banquet and singer-songwriter entertainment.

The convention kicked off with high energy motivational speaker Aaron Davis, who presented on the attitude of a champion. Topics covered at the convention included current credit environment, the future of banking, economic outlook, the new era of banking, an update on community banking at the national level, interest rate environment, deposits, succession planning, marketing budgets, community banking laws and regulations, regulatory panel and a panel on connectedness and creating a winning team from UGA football alumni and UGA FCA chaplain.

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Special Thanks to Connect Sponsors and Exhibitors:

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Su m m e r 2 0 2 3 | G e org i a Co m m un i ti es F i rs t | 13

SPOTLIGHT

GET TO KNOW 2023-2024 CBA CHAIRMAN NEIL STEVENS Neil Stevens, President & CEO, Oconee State Bank, Watkinsville, was elected 2023-2024 CBA Chair at CBA’s Annual Convention in June. Neil was gracious about answering a few questions so our members can get to know him a little better. Take a moment to learn about Neil, his bank, personal life and what community banking issues are important to him.

How did you get started in banking? What was your first job?

My brother Mark Stevens inspired me to give banking a try when I graduated from Mercer with my Finance and Communications degree back in 1989. I started to work for C&S Bank in Macon, Georgia in 1989 on their Management Associate Training Program.

How long have you been in banking? How long President & CEO? I have been in banking for 34 years and in the President/CEO role for 11 years. Four years at KeyWorth Bank in Johns Creek and 7 years here at Oconee State Bank.

What issues are important to you with regards to community banking?

All things regulatory. We must constantly fight for a balance between appropriate regulation and extreme regulation that precludes us from serving our customers. Beyond that, I have a passion to make our industry relevant and attractive to young people graduating from college. This is such an incredible profession.

But financial institutions must be flexible, creative, engaging, and make it an attractive environment that attracts top new talent.

Tell us a little about Oconee State Bank (little history), # of employees, a specific niche you serve, etc.

We began in 1960 in Watkinsville, Georgia by a group of talented and passionate business leaders who wanted to create a local bank for the local citizens of the community. Their vision is what made the bank what it is today. Over the past seven years, we have grown that vision. We are now in Athens, Gwinnett County, Central Georgia, and made an acquisition of 1 4 | ww w.cbaofga.co m | Summer 2023

a mutual savings and loan based in Elberton – Elberton Federal Savings and Loan. We started an SBA division, rebranded our mortgage operation, and increased the talent level around the executive table. We have around 85 employees and are around $600 million in assets. Our specific niche is small to medium sized business where we can create extreme value in order to gain the full relationship from those businesses.

How did you become involved with CBA? I have been involved in the CBA for a number of years. Although, it was not until the last five years that I have been involved on committees and the board.

Our bank has been involved in the CBA for many, many years!

Education background/banking schools: I have a B.S. Degree in Finance and Communications for Mercer University in Macon, GA. I also attended an executive banking school at UVA’s Darden School of Business.

What do you enjoy doing outside of work?

I LOVE UGA football!!! And all UGA sports for that matter. I love working out and playing golf, working at OSB, and spending time with family.

Tell us a little about your family.

I am happiest when surrounded by my family – my beautiful wife of 35 years, Tricia. And my two sons Caleb and Colin and our beautiful daughters in law, Grace and Sarah, and our “Little Bear.” Little Bear is our little 16-month-old grandson, Wesley.

Fun fact - I was featured on the TV show, Rescue 911.

Anything else you would like to add: Nothing would be possible without my faith in Jesus Christ. To God be the Glory!

SPOTLIGHT

WELCOME CBA BOARD OF DIRECTORS

Neil Stevens CEO Oconee State Bank Chairman

Frank Griffin Jr. President Flint Community Bank Chairman Elect

Mike Sale President/CEO The Commercial Bank Vice Chairman

Kelly B. Stone President Community Bank of Georgia Treasurer/Audit & Investment Chair

Scott Curry President/CEO First State Bank of Randolph County At Large

Richy Everly CEO Bank of Wrightsville Immediate Past Chairman

Shannon Henry CEO Bank of Dade Northern Division

Bill Walker President & CEO Legacy State Bank Northern Division

Monty Watson CEO The Piedmont Bank Northern Division

Derek Williams ICBA Chairman President & CEO Century Bank & Trust Northern Division

Ron Quinn President & CEO Peach State Bank & Trust Northern Division

Jane Lawson COO First Peoples Bank Northern Division

Harold R Reynolds CEO BankSouth - Lake Oconee Northern Division

Scott Curry President/CEO First State Bank of Randolph County Northern Division

Doug Williams CEO SouthState Bank, N.A. Northern Division

Charlie Crawford Chairman & CEO Hyperion Bank Northern Division

Zac Frye SVP of Lending The Citizens Bank of Swainsboro Southern Division

Jolene Carroll CEO Magnolia State Bank Southern Division

Bran Thompson CEO South Georgia Bank Southern Division

Heath Fountain CEO Colony Bank Southern Division

Stephen Lewis Market President/Sr Lender First National Bank of Coffee County Southern Division

Click Here to Read the Full Press Release Ray Muggridge Chairman of the Board Bank of Camilla Southern Division

Nancy Jernigan EVP EVP/Seminole Market President First Port City Bank Southern Division

Eli Tinsley President & CEO Planters First Bank Southern Division

Brian Bazemore President & CEO The Citizens Bank of Cochran Southern Division Su m m e r 2 0 2 3 | G e org i a Co m m un i ti es F i rs t | 15

SPOTLIGHT

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SPOTLIGHT

Jessica Hudson Named CBA LEAD Board Chair Congratulations to Jessica Hudson, AVP/Loan Operations Officer, First National Bank of Coffee County, Douglas, who was named the 2023-2024 LEAD Board Chair at CBA’s Annual Convention CONNECT, in Charleston, SC. CBA President & CEO John McNair, expressed his appreciation to Chris Cochran, Senior Vice President, Commercial Banking, Affinity Bank, Atlanta, for his leadership and success as the outgoing 2022-2023 LEAD Board Chair.

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SPOTLIGHT

BUILDING ON THE PAST

LOOKING TO THE FUTURE

100+ YEAR OLD BANKS 100+ Year Old Georgia Banks The Geo. D. Warthen Bank Sandersville | 1871 Ken Bibb Southeastern Bank Darien | 1889 Jay Torbert Bank of Madison Madison | 1890 Charles Haney, III Bank of Camilla Camilla | 1890 Ray Muggridge PrimeSouth Bank Blackshear | 1891 Jim Walker The Peoples Bank of Georgia Talbotton | 1891 Henry Persons Planters First Bank Cordele | 1896 Eli Tinsley

CBA is proud to recognize the 40-plus community banks in Georgia who have been in business for over 100 years. We reached out to these banks, asking how the bank started, how they survived during challenging times, what advice they have for their peers, and of course – what’s next for their bank.

Thank you to the bankers who participated in this feature by sharing photos, their rich history and plans for the future. Congratulations on your longevity and serving your communities so well!

According to Jay Torbert, President & CEO, Southeastern Bank, Darien, “In 1888, a mere 25 years after the burning of Darien by Union troops during the Civil War, the town was once again a bustling seaport. During this time, Darien was the second-leading port for shipment of yellow pine timber in the world, and a group of business leaders came together to form a local bank to support the town and its booming timber industry. On December 8, 1888, the State of Georgia issued the charter for The Darien Bank.

Businessmen Adam Strain, R.H. Knox, August Schmidt, James Walker and Robert G. Erwin comprised the board of directors of the Bank with Strain as its president when the Bank opened its doors for the first time on January

23, 1889 with $25,875 in capital stock.

Over the years, the Bank, now known as Southeastern Bank, expanded beyond Darien and McIntosh County and supports communities in eight counties across coastal Georgia and northeast Florida. Today, nearly 135 years later, our charter is one of, if not the oldest, active banking charters issued by the State.”

Bank of Wrightsville Wrightsville | 1897 Richy Everly Century Bank and Trust Milledgeville | 1898 Derek Williams First Bank of Pike Molena | 1899 John Barker The Bank of LaFayette, Georgia La Fayette | July 18, 1899 Henry Gilbert 1 8 | ww w.cbaofga.co m | Summer 2023

The Darien Bank (now Southeastern Bank), Darien

SPOTLIGHT Henry Persons, President & CEO, The Peoples Bank of Georgia, Talbotton The Peoples Bank of Georgia was founded in 1890 and I believe the 8th oldest bank in the state of Georgia - our FDIC number is 170. The Persons family was one of the initial investors and soon afterwards purchased a controlling interest which it still holds today.

Following the War Between the States, the scarcity of money and excessive interest rates led to a credit system that depressed agriculture production and commerce in Georgia. There was a need for small country banks to come into existence. The Peoples Bank of Talbotton played a major role in putting its part of Georgia back together, they backed new businesses, financed crops and became involved in civic efforts.

Officers and employees are the backbone of the operations at First National Bank of Waynesboro.

Jesse Palmer, III, Chair, President & CEO, First National Bank of Waynesboro, commented “We pride ourselves as being the only familyowned and operated bank in Burke County.”

The bank was organized on September 1, 1905 and relocated to the current location in 1956. Mr. Palmer Sr. joined the bank in 1912, as a member of the Bookkeeping Department. In 1914, he became Assistant Cashier and, in the same year, was promoted to Cashier. In 1930, he was elected as President and Chairman of the Board. He remained Chairman until his death in 1981. Mr. Palmer, Jr. joined the bank in 1945 as Assistant Cashier. In 1956, he was elected as President and in 1981, he became Chairman of the Board until his death in 1986. Mr. Palmer, III joined the bank in 1968, became President in 1982 and Chairman of the Board in 1986.

The Citizens Bank of Swainsboro Swainsboro | January 1, 1900 Milton Gray First State Bank of Randolph County Cuthbert | October 3, 1900 Scott Curry Mount Vernon Bank Mount Vernon | January 24, 1901 Alan Thigpen Queensborough National Bank & Trust Company Louisville | January 1, 1902 Bill Easterlin First State Bank of Blakely Blakely | January 1, 1903 Billy Lanford Exchange Bank Milledgeville | June 1, 1903 John Childs Georgia First Bank Soperton | June 1, 1903 Maury Beasley Bank of Hancock County Sparta | September 1, 1904 Ann Wilson The Bank of Edison Edison | October 1, 1904 Neil Lowe

Farmers & Merchants Bank, Lakeland

The Peoples Bank of Georgia, Talbotton

Jeff Parrish, CEO, Farmers and Merchants Bank, Lakeland: It was 1907, Theodore Roosevelt was President of the United States, Hoke Smith was Governor of Georgia and in a hustling “Milltown” in South Georgia, Farmers and Merchants Bank was established.

Milltown was the first and original location for the Bank as it opened its doors on May 22, 1907, taking in a total of $30.00 for deposit on the first official day of business. The capital, deposits and staff grew as the Bank survived two world wars, the depression, recession and bad crop years. During the Great Depression, Farmers and Merchants Bank kept its doors open while banks here and across the nation were failing.

It closed only on Franklin D. Roosevelt’s “Banking Holiday.”

The First National Bank of Waynesboro Waynesboro | January 1, 1905 Jesse Palmer, III Glennville Bank Glennville | January 18, 1905 Will Sheffield United Bank Zebulon | January 31, 1905 Jim Edwards Bank of Alapaha Alapaha | March 25, 1905 Ken Hughes Bank of Dudley Dudley | November 1, 1905 Sam Beall Farmers and Merchants Bank Lakeland | January 1, 1907 Jeff Parish

Su m m e r 2 0 2 3 | G e org i a Co m m un i ti es F i rs t | 19

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Reciprocal Deposits

GROW CORE DEPOSITS & FRANCHISE VALUE TODAY Most reciprocal deposits are reportable as nonbrokered and can help strengthen your bank’s balance sheet. With insured deposit services−ICS® and CDARS®−from IntraFi®, your bank can build loyal, local customer relationships and receive reciprocal deposits that typically come in large-dollar increments.

The inventor and largest provider of reciprocal deposit services, IntraFi offers flexible liquidity management solutions and makes it easy for banks to quickly bring customer-pleasing services to their markets. IntraFi provides high per-depositor and per-bank capacity, thanks to The Power of Many®−its unparalleled network of thousands of financial institutions. Discover how your bank, no matter its size, can benefit from reciprocal deposits in today’s competitive marketplace.

Contact your Managing Director Danny Capitel at (866) 776-6426, x3476, or dcapitel@intrafi.com

www.intrafi.com

Use of CDARS or ICS is subject to the terms, conditions, and disclosures in the applicable program agreements, including the IntraFi Participating Institution Agreement. A list identifying IntraFi network banks may be found at https://www.intrafi.com/network-banks. The depositor may exclude banks from eligibility to receive its funds. IntraFi, ICS, CDARS, and The Power of Many are registered service marks, and the IntraFi hexagon is a service mark, of IntraFi Network LLC.

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SPOTLIGHT Why do you think your bank has survived over the years?

What is the secret to your bank’s long-term success?

Eli Tinsley, President & CEO, Planters First Bank, Cordele At Planters First Bank, we have a rich history dating back to 1896 when we were first chartered in Hawkinsville.

Over the years, we’ve faced numerous challenges, including two world wars, the Great Depression, and tough economic times. However, we’ve remained devoted to serving our customers and community with honesty and integrity.

We believe that each relationship is a partnership, creating a team approach in every aspect of banking. Our success can be attributed to our customers, employees, and shareholders. We’re proud of our 125+ year banking legacy and excited about our future. As technology and the times have changed, so has the Bank, but one thing has and will always remain- our commitment to being The Best Community Bank in Middle Georgia.

is when COVID hit our communities and people were worried about their families and accessing their cash, we kept our branches open to service our customers. When PPP funds became available our employees worked around the clock to process loans for our customers because they needed us to assist them in keeping their businesses open. Through all of this I never heard one employee complain about helping our customers.

Jolene Carroll, President & CEO, Magnolia State Bank, Eastman As our history will show, our institution has weathered a depression, several recessions, and a pandemic. We have survived and prospered thanks to the support of our customers and we never lose focus of that. The key words today, just like in the 1900s, are customers, customer diversity, and liquidity, and we have survived as a result of all of three.

Since the bank’s inception on October 9, 1909, the bank’s primary focus has been to serve the banking needs of the people in the counties and surrounding communities where we are located, and this continues to be our mission today.

We stay focused on what’s important, our customers. A perfect example

First Southern Bank Waycross | June 19, 1907 Bill Hughes The Trust Bank Lenox | June 25, 1907 Robert Griner Apex Banking Company of Georgia Irwinton | July 16, 1907 Ryan Tucker Talbot State Bank Woodland | November 25, 1907 Edgar Chapman Bank of Monticello Monticello | January 1, 1909 Steve Jordan

Bank of Eastman (now Magnolia State Bank), Eastman

Planters First Bank, Cordele

First Bank of Coastal Georgia Pembroke | January 1, 1907 Doyce Mullis

John Childs, Jr., President & CEO, Exchange Bank, Milledgeville Exchange Bank celebrated its 120th anniversary this year and over those many years the names and faces of the staff and leadership have changed, but the core values and beliefs have not. As a community bank, we are an advocate for the communities we serve. We have a vested interest in our customers, our local governments, our educational systems, and our community’s quality of life. Over the years, Exchange Bank has proven to be adaptable, resilient, forward-thinking, and trustworthy. We feel that these foundational building blocks have served Exchange Bank well for 120 years and will continue to serve the bank well for many years to come.

Bank of Dawson Dawson | July 1, 1911 Barry Lyle The Farmers Bank Greensboro | September 6, 1911 Sid Lane Farmers State Bank Lincolnton | December 2, 1911 Bruce Turner Planters and Citizens Bank Camilla | May 24, 1913 Jud Vann Magnolia State Bank Eastman | January 2, 1919 Jolene Carroll Bank of Newington Newington | August 14, 1919 Harry Sheppard Citizens Trust Bank Atlanta | June 18, 1921 Cynthia Day State Bank of Cochran Cochran | January 5, 1922 Jackie Bowen Farmers & Merchants Bank Eatonton | November 15, 1922 Chip Benton

Exchange Bank, Milldgeville Su m m e r 2 0 2 3 | G e org i a Co m m un i ti es F i rs t | 21

SPOTLIGHT How has technology changed operations or the customer experience at your bank?

Barry Lyle, President & CEO, Bank of Dawson There are so many ways technology has changed for the better, within the bank and for customers. One way technology has changed and has been a beneficial change for our customers is when ATM and debit cards were implemented. This change has allowed our customers to bank 24/7 making an impact for people who work and cannot physically make it to the bank during banking hours.

Bank of Dawson, Dawson

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What advice do you have for Georgia’s community banks, in particular, any newer banks?

Richy Everly, President & CEO, Bank of Wrightsville In my humble opinion, true community banking requires a shared commitment to and sincere appreciation for the communities and the people in it through education, engagement, investment, services, and support. Well-established, independent community banks are almost always able to demonstrate a strong local presence, along with expertise in the local business landscape with an emphasis on relationships rather than transactions. Externally, longevity in this industry relies heavily on positive relationships with customers, with regulators, with vendors, and with trade associations such as CBA of GA and ICBA. Internally, those community banks that have enjoyed the benefit of longevity in their respective markets typically can attribute most of that success to several pillars of remaining independent: (1) Shared Vision, (2) Strong Performance, (3) Quality Management, (4) Board Leadership, and (5) Shareholder

Resilience. I believe that a forwardlooking approach by a community bank’s leadership, along with the bank’s continued focus on relationships over transactions will ultimately have a favorable impact on a community bank’s ability to grow, prosper, and sustain itself for many years to come.

Charles H. Haney, III, President & CEO, Bank of Madison My reply is simple…. Own the community you serve. Own the reputation you have made and own the responsibility you have to your employees and stockholders.

Bank of Madison, Madison

SPOTLIGHT Looking to the future, what’s next for your bank?

Bill Easterlin, Chairman, President & CEO, Queensborough National Bank & Trust Co., Louisville After 120 years of community banking, Queensborough National Bank & Trust Company continues to stand out as a true community bank. Now the leading community bank in Augusta, the bank continues to expand in the Coastal Georgia market, an area experiencing an incredible amount of development.

Queensborough’s Pooler, location opened in 2021 and, later this year, the Hinesville location will open as the bank’s 24th full-service branch.

Queensborough continues to implement new technologies like QNBTNOW Interactive Teller Machines and online customer care through the Glia platform. Throughout the growth and the tech advancements,

Queensborough continues to be committed to the communities they serve, providing uncomplicated banking and decision-making on a local level.

Ryan Tucker, President & CEO, Apex Banking Company/Wilkinson County Bank, Cleveland Apex Banking Company of Georgia represents the next chapter of the solid 100-year legacy established

by Wilkinson County Bank. In 2023, the bank expands its presence in Georgia with a new location that will serve Cleveland and the surrounding areas. As we grow, we will continue to embrace the spirit of true community banking, working hand in hand with our customers to meet their banking needs.

Our new offices are currently under construction and in the meantime, we have a temporary location in place to serve our customers this summer.

Jim Walker, President & CEO, PrimeSouth Bank, Blackshear Our company mission is to “make a positive impact on the communities we serve through offering creative solutions”. We believe to properly execute our mission daily, it is imperative to continue fostering a company culture which includes serving our team members, building trust across the organization, and improving overall engagement. We will remain focused on evolving as an organization which maintains our “customers first” mantra. This will include an intentional approach to implementing innovative technological advances and strategies centered around reducing friction in our delivery process, therefore allowing PrimeSouth Bank to continue to provide an overall exceptional client experience.

Bank of Darien, Darien The Farmers Bank, Greensboro The Bank of Soperton (now Georgia First Bank), Soperton

Bank of Wrightsville, Wrightsville

The Glenville Bank, Glennville Merchants and Farmers Bank (now Century Bank & Trust) Milledgeville

The Geo. D Warthen Bank, Sandersville

First National Bank of Louisville (now Queensborough National Bank), Louisville

The Blackshear Bank (now PrimeSouth Bank) , Blackshear Su m m e r 2 0 2 3 | G e org i a Co m m un i ti es F i rs t | 23

A big STS THANK YOU to Community Bankers Association of Georgia!

Adam Stephens, Ryker Goodell and Chris Nelson enjoyed spending quality time "Charleston-style" with our amazing customers and the CBA team at CBA Connect Annual Convention!

We can't wait to see everyone again next year!

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stsgrp.com Call us today 855-683-9259

SPOTLIGHT

New Newsletter Format Same Great Content - New Intuitive Layout!

CBA Today our weekly eNewsletter is now a blog.

What does this mean for you, our readers? Our articles are now searchable and will take less time to load on your computer and mobile devices.

Our blogs can also be separated by category or viewed all at once from the CBA website.

Navigate to Publications and then All Posts to see all of CBA’s articles all at once.

Click here to check out our helpful guide on how to navigate the new CBA Today layout.

1890

Travelers begins to offer Financial Institutions coverage

1964

Travelers becomes one of the first domestic markets to write Directors & Officers Liability insurance

1999

Travelers brings its Identity Fraud Expense Reimbursement coverage to market

2011

Travelers CyberRisk coverage is introduced to the market

2023

Travelers and the ICBA celebrate 40 years of partnership and $75M+ of Policyholder Safety Group Dividends

Banking changes.

Our commitment to you never does.

Throughout our long history, we’ve stayed focused on keeping community banks on the cutting edge. We do this with industry-leading specialists, expertise and offerings – all backed with local banking knowledge.

Learn more at travelers.com/business-insurance/financial-institutions

travelers.com

Travelers Casualty and Surety Company of America and its property casualty affiliates. One Tower Square, Hartford, CT 06183 This material does not amend, or otherwise affect, the provisions or coverages of any insurance policy or bond issued by Travelers. It is not a representation that coverage does or does not exist for any particular claim or loss under any such policy or bond. Coverage depends on the facts and circumstances involved in the claim or loss, all applicable policy or bond provisions, and any applicable law. Availability of coverages referenced in this document may depend on underwriting qualifications and state regulations. © 2023 The Travelers Indemnity Company. All rights reserved. Travelers and the Travelers Umbrella logo are registered trademarks of The Travelers Indemnity Company in the U.S. and other countries. CP-9620 Rev. 7-23

Su m m e r 2 0 2 3 | G e org i a Co m m un i ti es F i rs t | 25

PROFESSIONAL DEVELOPMENT

Education Buzz: Pause. The faster I run, the slower I get.

I am learning to slow down and enjoy the moment. Have you stopped recently and just sat to ponder. The more I favor lifelong learning, I must pause and think about what I personally do to gain knowledge and how does it contribute to my overall wellbeing and professional success. As the honey is filling the cells of the beehive, am I storing up knowledge that will give me energy and solutions or am I wasting my resources. It’s so easy to go through the motions. If we make an intentional decision to put tools in place daily that support our goals and success, our honey will be liquid gold to bring value to those we serve.

Kristi Greer

Senior Vice President Director of Professional Development Community Bankers Association of Georgia

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Sarah Humphrey Director of Sales shumphrey@fitech.com | 903-241-0977 2 6 | ww w.cbaofga.co m | Summer 2023

Tanner Rizenbergs Manager of Financial Institutions trizenbergs@fitech.com | 817-575-7930

PROFESSIONAL DEVELOPMENT

Enhance Your Cyber Security Posture – Keep Learning & Take Action to Stop Cyber Crime The most important topics will be covered at the annual conference on Jekyll Island. Register, book your room, and get your questions ready to discuss and assemble tools that will support your bank’s cyber security guards.

AGENDA

HOTEL

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EXHIBITORS

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PROFESSIONAL DEVELOPMENT

We are back in person with the regulators!

CBA is excited to announce the return of the In-Person Banker Regulatory Forums! In today’s changing financial and regulatory environment you cannot afford to miss the chance to hear directly from the FDIC, OCC, FRB, and GA Dept of Banking. Hear the agencies’ hot topics, exam trends, economic outlook, and MORE! Set your bank and your community up for success by preparing today for what is coming tomorrow! September 14th we will gather in Macon for BRF focused on Safety & Soundness! C-Suite Employees, you will want to be in the room!! Submit your questions in advanced by emailing education@cbaofga.com September 14 – Safety & Soundness Focused C-Suite employees will want to be in the room.

You can submit questions in advanced by emailing education@cbaofga.com.

Start Time 9:30 AM 10:00 AM 10:15 AM

12:00 PM 1:00 PM

2:00 PM

End Time 10:00 AM Registration & Check ins 10:15 AM Welcome & Introductions 12:00 PM Regulatory Panel Discussion & Agency Hot Topics Question & Answer Session - Audience Questions Facilitators: Doroteya Wozniak, James-Bates-Brannan-Groover, LLC & Lisa Berry Warren Averett, LLC FDIC OCC FRB of Atlanta GA Dept of Banking 1:00 PM Networking Lunch 2:00 PM Attendee R.A.P. Session Recap - What did we hear from the Regulators Group Hot Topics Facilitators: Doroteya Wozniak & Lisa Berry *ICBA – Michael Emancipator & Mickey Marshall 2:00 PM Closing Remarks

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PROFESSIONAL DEVELOPMENT

1071 Resources ICBA has published a summary of the rule and hosted a banker briefing. ICBA also has an advocacy resource page that highlights recent activity, as well as their “Hill visit.”.

The Consumer Financial Protection Bureau published a small entity compliance guide in May.

Upcoming 1071 Webinars

Section 1071 Final Rule Highlights & Effective Dates – OnDemand Section 1071: Developing a Data Collection Process Under the Final Rules – OnDemand Five Reasons to Prepare for 1071 Rules: Small Business Reporting for Women & Minority Owned Businesses – OnDemand

Popular Schools & Conferences

Cyber Risk Conference August 17-18 Jekyll Island

Advanced BSA/AML School August 21-25 St Simons Island LEAD Retreat September 28-29 Jekyll Island

Fintech South *CBA Members use member only code to receive a discount code at registration.

September 12-13 Atlanta

Consumer/ Retail Lending School October 2 – 5 Macon

Mortgage Lending School November 14-16 Perimeter

Advanced HMDA Workshop November 8-9 Tifton

Let us show you how to attract and maintain leadership excellence and commitment through innovative and strategic compensation planning.

Contact us today.

JR LLEWELLYN jr.llewellyn@newcleus.com CHARLIE HICKS charlie.hicks@newcleus.com Su m m e r 2 0 2 3 | G e org i a Co m m un i ti es F i rs t | 29

PROFESSIONAL DEVELOPMENT

COMMUNITY BANK FOCUSED COMPLIANCE EDUCATION Choose courses a la carte.

Package members receive reduce pricing.

NEW!! Advanced Compliance Courses

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PROFESSIONAL DEVELOPMENT

NEW!! Intermediate Compliance Course

Essential Lending Compliance 8/29/23 - Macon or Live Virtual STREAM 8/30/23 - Tifton or Live Virtual STREAM

NEW!! Basic Compliance for Non-Compliance Staff

New Bankers, anyone who wants to understand the basics of compliance regulations should attend to gain a valuable summary of what and why.

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PROFESSIONAL DEVELOPMENT

More Compliance Courses

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PROFESSIONAL DEVELOPMENT

ICBA Affiliate Education Program

Collaborating with ICBA gives our members even more choices to support the learning and development goals of the financial institution. We are here to help you find the best training to fit your needs. Call us and we will help make a connection. Check out Community Banker University Powered by ICBA. When selecting to register for a Community Banker University Powered

by ICBA program, please use our state association code. ​Using the code will alert ICBA to give back to Georgia through our alliance in supporting the community banking industry.

State Association Code: GA-CBA The new Affiliate Education Program will ensure that collectively, we put community banks in contact with the training tools necessary to grow bankers’ knowledge and skills. Let’s all win by increasing knowledge, improving efficiency, and investing in our employees while working together to uplift the industry we love— COMMUNITY BANKING!

Su m m e r 2 0 2 3 | G e org i a Co m m un i ti es F i rs t | 33

MEMBER SERVICES Jim Reber

Value, added

President & CEO ICBA Securities

High baseline yields accompany surprisingly wide spreads If your responsibilities include your community bank’s bond portfolio, you’ve been confounded by several elements of its performance in the last 18 months. To the extent your portfolio has mortgage-backed securities (MBS) and government agency bonds, and the clear majority of all bonds owned by banks are in these two categories, they’ve certainly lost value since 2022. It is easy enough to put the “blame” on the Fed’s Federal Open Market Committee (FOMC), which as of this writing has taken overnight rates up fully 500 basis points (5%) since March of last year.

However, something else has occurred in period that’s contributed to the decline in bond prices: Yield spreads have actually widened during this time frame, which is highly unusual for a rising rate scenario. It has aggravated the market losses in community bank portfolios, which stood at around 8% as of June 30. About one-fifth of the market losses can be attributed to spread widening. What’s going on here?

Maybe it’s time to review why spreads widen and tighten, and why the various bond market sectors behave differently.

If we can conclude with the notion that there are some opportunities for long-term benefit for your bank, all the better.

Spread basics

First, a refresher on “spreads” in this context. It is the incremental yield for a collection of bonds, over and above the benchmarks. The benchmarks are comparable maturity Treasuries, which are presumed to be risk-free. (We don’t have time here to revisit the recent elaborate game of chicken over the debt ceiling. Notice I said “elaborate” and not “elegant.”)

Incremental spreads on bonds will tend to widen as rates fall, as lower yields accompany an economy that is losing momentum. This slowdown brings with it a higher likelihood of debt service problems, so lenders, including bond investors, ask for additional yield protection.

In 2023, there’s no slowdown, yet, and so the FOMC has now hiked overnight rates to their highest levels in 15 years in its quest to get inflation under control. And still, spreads

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MEMBER SERVICES are wider in virtually all bond sectors, so something different is in play. One factor is the Fed’s posturing related to its own balance sheet. Currently, the Fed is removing $95 billion per month from its own Treasury inventory. It has reserved the right to actually shed some of its $2.5 trillion MBS portfolio, but hasn’t yet.

Another difference this time around is the well-documented decline in excess liquidity on bank balance sheets, which I hasten to add is not the same thing as deposit runoff.

Globally, the banking sector has gone from too much uninvested cash, to probably about right. Again, this has removed some demand from the fixed-income markets as the banking sector has purchased very few bonds in 2023.

Some sectors are not like others

The callable agency market gives us a good example of how spreads are historically wide. Way back in 2021 (hyperbole), a bond that matured in three years and could be called in a year (“3/1 callable” in bond-speak) would have had a stated rate of interest of around 0.50%, which was about 10 measly basis points (0.10%) over the curve. Today, the “coupon” for the same bond would be around 5.50%, which has a full 1% spread over the three-year Treasury.

Fannie Mae or Freddie Mac. A “current coupon” pool has right at a 5% yield to maturity, again around 1% over the Treasury curve. A year ago? A current coupon would have been about 3.5%, and its spread around half of today’s.

Act now, thank you

It’s time to speak into the microphone and state that things can get worse before they get better. Which is to say, Treasury yields, and spreads, can continue to gap higher and wider before coming back in line. The Fed sure doesn’t sound like it’s finished with tightening, and even though banks are making use of wholesale funding sources to maintain liquidity levels, banks aren’t likely to become deluged with excess cash in the near future.

Nonetheless, we have a baseline of yields (Treasury curve) that is at a 15-year high, coupled with spreads that are nearly unprecedented for this stage of the rate cycle. This causes me to suggest that your portfolio will thank you later for bonds you purchase in mid-2023. If more yield is considered good, then it’s summertime, and the livin’ is easy.

Similarly, popular mortgage securities have improved yields and spreads today, over just a few months ago. A staple of community bank portfolios is a 15-year MBS issued by

Quality assurance, tax, and advisory services are critical for financial institutions in today’s rapidly changing industry landscape. We currently provide professional services to hundreds of financial institution clients throughout the country, which translates into a first-hand understanding of the industry and its best practices.

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MEMBER SERVICES

7 ways open banking can benefit your financial institution As technology evolves, community financial institutions are seeking innovative ways to stay competitive and provide value to their customers.

Open banking has gained traction as a potential solution in recent years, owing to its benefits of enhancing customer experience, improving customer satisfaction ratings and fostering innovation. With its potential to transform financial services, community financial institutions should now be looking at how they can embrace this technology and the wealth of opportunities that come with it.

What is open banking?

Open banking is a concept that promotes the secure sharing of customer data between different financial institutions and third-party providers through standardized application programing interfaces (APIs). In sharing that data, it facilitates collaboration, innovation and the development of new financial products and services.

Financial institutions can leverage the use of this technology to help provide their customers with a better experience and position themselves as trusted financial partners.

The benefits of open banking

Open banking empowers financial institutions to unlock new opportunities for growth while delivering the customerfocused experiences that have long been their hallmark.

For your financial institution, open banking can make it easier to:

1. Empower customers

With the use of APIs, financial institutions can integrate with various financial service providers and allow customers to view all their accounts in one centralized location. From a customer’s perspective, having a comprehensive view of account information will empower them to be more efficient with their financial management.

2. Create a personalized customer experience

Open banking provides you with greater and more secure access to customer data, giving you valuable insights into your customers’ financial behaviors, needs and preferences.

Those insights can then enhance marketing efforts, allowing customers to receive personalized financial services and offerings, such as tailored product offerings and recommendations and targeted financial advice.

3. Streamline processes

Transactions such as payments and funds transfers can be simplified with open banking. Customers can then enjoy faster, more convenient payment options, such as peer-to-peer transfers, digital wallets, QR codes and real-time payments — ultimately enhancing their overall banking experience.

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4. Build relationships

Open banking makes it easier for you to foster relationships and form strategic partnerships with fintech startups, technology providers and other financial institutions, creating a more collaborative financial ecosystem. With those relationships, you can leverage specialized services and innovations to enhance product offerings and deliver a wider range of financial solutions to customers.

5. Increase innovation

Building relationships with third-party providers also gives you easier access to the wealth of innovative products and services they develop. Your financial institution can connect to new technologies such as budgeting apps, robo-advisors and digital lending platforms, enriching your customer offerings without having to build these capabilities from scratch.

6. Improve security

Using APIs for open banking can help enhance security and fraud prevention.

APIs follow rigorous security standards and protocols, ensuring secure data transmission and protection. Encryption, authentication and authorization are also standard components that support APIs. These security practices, coupled with comprehensive authentication and consent mechanisms, minimize the risk of fraud and encourage customer trust in sharing their data.

7. Streamline customer onboarding

Many banks still rely on a tedious, form-heavy onboarding process that results in a poor customer experience. Open banking simplifies the onboarding process for new customers by eliminating the need for manual data entry.

With consent, customer data can be securely retrieved from other financial institutions, reducing the hassle and improving the speed of account setup. This helps you simplify the customer onboarding process and the management of customer data.

Anna-Kay Sterling, CISA Manager WIPFLI Atlanta

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• Fall Clay Shoots • Consumer Lending School • BSA Fundamentals • Advanced Compliance School Let’s discuss your goals and design the best package for your needs. Contact Lindsay Greene.

Su m m e r 2 0 2 3 | G e org i a Co m m un i ti es F i rs t | 37

MEMBER SERVICES

Small Business Administration – Making Strides to Encourage Small Business The Small Business Administration (SBA) has recently taken significant steps to address the obstacles faced by community banks in extending credit through the SBA’s credit enhancement program. Through revisiting their Standard Operating Procedures (SOP) and incorporating feedback from SBA lenders, the SBA aims to streamline requirements and facilitate small business growth.

The primary objective is to reduce the notional size of new money loans and promote wider adoption of the government’s program, fostering small business expansion. Over the past decade, the average loan size of SBA products has steadily increased, nearing the $1 million mark. Consequently, a substantial funding gap for small businesses has emerged.

This trend can be attributed to the economics and profitability of larger deals, as lenders seek to establish more lucrative

banking relationships through larger deposits and increased fees. For community banks and credit unions, however, underwriting small-dollar loans has proven challenging due to onerous regulations and a lack of streamlined technology.

Consequently, many small businesses have turned to nonbank lenders for their funding needs, which is far from ideal.

Non-bank lenders often lack the necessary expertise and comprehensive product offerings to adequately support small businesses. Furthermore, this practice increases risk for financial institutions by fragmenting the client relationship.

The SBA is to be commended for their efforts to tackle these issues head-on. In turn, we challenge financial institutions to reevaluate their strategies regarding small business lending.

By doing so, we can collectively ensure that small-dollar loans remain within federally regulated financial institutions, avoiding reliance on non-bank lenders.

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MEMBER SERVICES Here are some key takeaways, solutions, and challenges for financial institutions resulting from the recent SBA SOP changes: Takeaway #1: Consistent increase in SBA loans: The notional loan amount for SBA products has continued to rise over the years. Recognizing the need to fund “small-dollar” loans below the $500,000 threshold, the SBA has implemented changes.

Solution: The revised SOP now allows financial institutions to employ a creditworthiness scoring system, expediting the underwriting process and accelerating the flow of funds.

Challenge: Implement a commercial score-based lending policy. While this approach may not be suitable for all commercial loans, there is likely a notional value (sub $500,000, in line with the SOP) where the utilization of scores can be deemed acceptable. Such scores can guide decision-making regarding loan sizing and pricing.

Takeaway #2: SBA Deal Structure(s): Previously, the language used in SBA lending hindered business owners from structuring buy-outs, leading to many businesses shutting down due to a lack of succession planning.

Solution: The new SOP language enables small business owners to accept payments or structure deals that facilitate their continued involvement in the business, ensuring a smoother transition of ownership. SBA structured loans now offer opportunities for financing that benefit all parties involved.

Challenge: Break down the barriers between conventional and SBA lending within your financial institution. Why do we segregate these business lines? We encourage institutions to rethink how these areas interact. Our Loan Origination Software can establish a unified “front door” for all prospects or borrowers, allowing technology to determine whether a conventional or credit-enhanced product is the best fit for the bank and borrower.

In conclusion, as an industry, we must continue to innovate to prevent non-bank lenders from seizing the low-hanging fruit.

By adopting the right strategies, financial institutions can drive loan growth, generate non-interest income, and better serve their communities. After all, no one knows your customers better than you do. Let’s make conducting business easier.

If you would like to discuss these points or require any assistance, please don’t hesitate to contact us.

Will Fountain Managing Director, Advisory Services Lenders Cooperative Birmingham, AL

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MEMBER SERVICES

LOOKING FOR SOLUTIONS? LOOK TO CBA FIRST! MEET CBA’S ASSOCIATE MEMBER COMPANIES

When Georgia’s community bankers are looking to do business, they look to CBA Associate Members first. Members have been approved by CBA’s Board of Directors and these companies offer competitive products and services designed to help community banks succeed.

What’s more, CBA Associate Members support the association with their sponsorships, advertising, informative articles, and participation in CBA programs. We salute this group of professionals and offer our sincere gratitude!

360 View CRM

Abrigo

BDS Technology, Inc.

Dart Appraisal

Bennett Thrasher

DataSeers, Inc.

CalTech Adlumin

Capital City Home Loans

AdPharos

Captive Solutions & Options, LLC

Affordable Equity Partners

GENESYS

Berman Fink Van Horn P.C. Cabretta Capital

Carputty Inc. Carr, Riggs & Ingram, LLC

Alkami Technology

Carty & Company, Inc.

Alliance Funding Group

Cash Transactions, LLC

Alpharesults

CBIZ

Alston & Bird LLP

TECHNOLOGY GROUP

DeNyse Companies ebankIT

Gulf Coast Business Credit

Econocheck

HC3

Elliott Davis Engaged Banker eXperience LLC

Human Interest

Evans, Simpson & Associates, Inc.

Hutchins Clenney Rumsey Huckaby, P.C. IBT Apps

Angott Search Group

Community Bankers Webinar Network

ExlService Holdings, Inc.

Community Lending Partners

Federal Home Loan Bank of Atlanta

Atris Technology

Compliance & More Financial Services

Fairway Wholesale Lending

Finosec

Balch & Bingham LLP

Consolidated Banking Services, Inc.

First Community Mortgage

Banc Card

Consultants & Builders, Inc.

Banker’s Dashboard

Core 10 - Accrue

BankiFi Technology

Cornerstone Commercial Mortgages, LLC

First Liberty

Infusion Integration 4.0 Inc

First National Bankers Bank FIS Fiserv

IR Labs, LLC (Innovation Refunds) Jack Henry Banking

Bankers-Insight Group, LLC

Fiveash-Stanley, Inc.

Barret School of Banking

Flex HR CRS Data

Foresight Research

Darnel Quick Recovery, Inc.

Framework Homeownership

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ICI Consulting, Inc.

FEMAC Security Solutions

Computer Services, Inc.

Basys

Georgia Student Scholarship Organization

Engage Fi

Community Bankers Bank

Asset Black

Georgia Department of Community Affairs

Gerrish Smith Tuck, PC

AmTrust Financial Services, Inc. Arctic Wolf Networks

GEC, Inc.

King Computer KlariVis

MEMBER SERVICES Latitude 34 PR

Novus Architects

Safe Systems

Georgia

Lee & Mason Financial Services, Inc.

Olsen Palmer LLC

SBA Works

The Burke Group

OnBoard

Securian Casualty Company

The Kafafian Group

OttoMoto

Securitas Financial Services, Inc.

The Plateau Group, Inc.

Lenders Cooperative Liberty Technology

PaymentsFirst

Logue Advisory Group

PCBB

ServisFirst Bank

Pentegra Retirement Services Maxwell

Performance Solutions Inc.

McNair, McLemore, Middlebrooks & Co., LLC

Performance Trust

Miller & Martin PLLC Moore, Clarke, DuVall & Rodgers, P.C.

ProBank powered by Forvis

National Bank Products, Inc.

Profit Resources, Inc

National Loan Acquisitions, LLC

PULSE, A Discover Company

Nationwide Loan Inspections

Quantalytix

Small Business Assistance Corporation (SBAC)

RayCor Consulting Netchex

Reich & Tang

NFP Executive Benefits

Rhonemus Group

Nichols Cauley & Associates

S&P Global Market Intelligence

Novatech

TriData US, Inc. Troutman Pepper

Southern Bank Equipment & ATMs

True Digital Group

Steve H. Powell & Company

USDA - Department of Rural Development

United Bankers’ Bank

VSoft Corporation

Qualtik

Nelson Mullins

TIB, N.A.

Sugar Creek Capital, LLC.

Warren Averett, LLC

Symphona

William Mills Agency

Strategic Resource Management (SRM) StreetShares, a MeridianLink company

Withum

Strunk, LLC

Logos represent CBA Preferred Service Providers

Technology Association of

High-yielding.

High-quality.

Highly-coveted.

York & Associates, LLC

2023 BHG borrower: WA FICO: 736 WA Income: $295,613 Avg Loan Size: $142,017 WA Years in Industry: 19 WA DSCR: 2.26

To learn more about BHG, please contact: Rachel Thorton | AVP, Institutional Relationships thornton@bhg-inc.com | 843.251.4223

WA = Weighted Average

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CBA’S 2023 PREFERRED SERVICE PROVIDERS DIAMOND LEVEL ICBA Securities Jim Reber | jreber@icbasecurities.com | 901.762.5884 Independent Community Bankers of America Scott Brown | scott.brown@icba.org | 334.328.5731 James Bates Brannan Groover LLP Dan Brannan | dbrannan@jamesbatesllp.com | 404.997.6023 SHAZAM Alex Jernigan | jjernig@Shazam.net | 229.220.0064 PLATINUM LEVEL Genesys Technology Group, LLC David Saylor | david@genesystg.com | 770.729.4139 GOLD LEVEL BHG Financial Rachel Thornton | rthornton@bhg-inc.com | 843.251.4223 Crescent Mortgage Skip Willcox | swillcox@crescentmortgage.net | 478.357.4441 DefenseStorm David Cross | David.Cross@defensestorm.com | 716.244.1107 FITECH Sarah Humphrey | shumphrey@fitech.com | 817.698.2268 Holtmeyer & Monson Arne Monson | amonson@holtandmon.com | 800.340.7304 IntraFi Network Danny Capitel | dcapitel@promnetwork.com | 770.630.6796 Mauldin & Jenkins Ron Mitchell | rmitchell@mjcpa.com | 229.446.3600

SILVER LEVEL ACG Phil Winn | Phil.Winn@acgworld.com | 678.458.9899​ BCC-USA John Gianacaci | JGianacaci@BCC-USA.com | 609.915.9168 College Ave Student Loans Lexy Spikes | lspikes@collegeave.com | 214.232.5272 CRA Partners David Lenoir | david.lenoir@shcpfoundation.org | 901.529.4786 Eclipse Brand Builders Joel Thompson | jthompson@eclipsebrandbuilders.com | 678.894.4360

Executive Insurance Agency, Inc. Ryan Sower | ryan@executiveinsuranceagency.com | 770.474.2355 Kasasa Ryan Busenitz | Ryan.Busenitz@kasasa.com | 678.595.0625 Newcleus Bank Advisors JR Llewellyn | jr.llewellyn@newcleus.com | 678.427.1015 QwickRate Melissa Wallace | melissa.wallace@qwickrate.com | 678.797.4062 Stokes Carmichael & Ernst LLP Michael Ernst | mje@scelaw.com | 404-603-3441 BRONZE LEVEL AgoraEversole Chis Bates | chris@agoraeversole.com | 601.366.7370 Bahr Consultants, Inc. Hank Bahr | hank@bahrconsultantsinc.com | 865.694.6098

Point to Point Environmental Mark Faas | mfaas@p2penvironmental.com | 678.565.4435 Ext 151 STS Group Adam Stephens | adams@stsgrp.com | 256.957.8018 Travelers Diana Baker | dcbaker@travelers.com | 678.317.7882 Wipfli Summer Gustin | summer.gustin@wipfli.com | 480.289.6052

Interested in becoming a Preferred Service Provider?

The Preferred Service Provider packages offers Associate Members the option of upgrading to package of your choice. A few benefits include early access to advertising, exhibiting and sponsorship opportunities, simplified budgeting and of course – increased exposure! All packages are reviewed by CBA’s Member Services Committee. To learn more, please contact Lindsay Greene at 770.541.0376.

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