GCFM: Winter 2024

Is your community bank thriving?

Meet Scott.

Scott works hand-in-hand with community banks in the Southeast to find ICBA member benefits that help them achieve their bank’s goals.

When he’s not exploring new ways to connect with bankers, he’s spending time in the great outdoors, hiking, camping, and adventuring.

Let Scott help you explore all the many options ICBA has to offer your community bank. Learn more at icba.org/membership

CBA STAFF

John McNair

President & CEO john@cbaofga.com

Lori Godfrey

Executive Vice President and Chief of Staff, Government and Regulatory Relations lori@cbaofga.com

Kristi Greer

Senior Vice President

Professional Development kristi@cbaofga.com

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

“Like a Rock!”

Bob Segar (and the Silver Bullet Band) recorded many fantastic songs. One the most well-known is the song “Like a Rock.” The song centers around youth and its innocence as well as the end of a long-time relationship. “Twenty years now, where they go? Twenty years, I don’t know. I sit and I wonder sometimes, where they’ve gone.” While I have been in and around community banking my entire career, 2024 marks my 20th year in direct service to the community banking industry. Fourteen fantastic years at the ICBA and now, 2024 starts my sixth year at the CBA of Georgia. After 20 years doing anything, I believe reflection is appropriate; therefore, I offer several based on my experience serving this wonderful industry:

-I have had the pleasure of traveling across the country and have been to every corner of Georgia. I have visited with literally thousands of community bankers in dozens of cities and towns. From major metropolitan cities to small towns without traffic lights and less than 3,000 people. I have been in large community banks, the very smallest community banks, and banks with all charter types and ownership structures. The common thread throughout, regardless of location, size, charter type, or other is that community banks are woven into the fabric of the communities they serve. They are “The Rocks” of their communities! The service first mentality is the core reason for their collective success. This core philosophy provides vital banking services and capital to local communities and funds the dreams of thousands of people across the country every day. One community banker I visited with in rural Georgia summed it up best. He stated that “if you don’t have a community bank, you don’t have a community.”

-I still think a lot about “the crash” and the flawed Wall Street Reform and Consumer Protection Act. a.k.a. Dodd/Frank. Regrettably, many community banks were forced to close or merge due to the financial crash and Dodd/Frank only exacerbated the challenges by heaping many new rules and regulations on community banks. The result was (and still is) the drastic decline of the number of community banks and the virtual elimination of new charter formations for well over a decade. The large, Too Big to Fail banks got bigger and community banks got run out of business. For a fraction of the amount spent to prop up larger and virtually insolvent banks, every community bank that failed could have been recapitalized. I remain frustrated to this day about Dodd Frank because we are still dealing with the ramifications of the bill notably in the form of 1071 reporting. While at ICBA and under the leadership of Cam Fine, I am proud of all that ICBA did to fight on behalf of community banks. ICBA and the exceptional government relations team fought day and

John McNair President & CEO Community Bankers Association of Georgia

night and did secure generational reform regarding deposit insurance. This one change saved the community banking industry hundreds of millions of dollars annually and still does to this day. Additionally, it solidified ICBA’s position as the nation’s exclusive advocate for the community banking industry in D.C. and highlighted the importance of having a community bank-only state association like CBA of Georgia.

-PPP left a positive, indelible imprint on me as a longtime servant to the community banking industry. What I witnessed and participated in was the single greatest financial deployment of funds by the nation’s banking sector. Regrettably, there were many bad actors participating in PPP loans and unfortunately, that is all our esteemed media outlets seem to focus on. What is not often talked about is the millions of jobs that the nation’s community banks helped save because of the around-theclock work that was done by the hard-working community bank employees of these small institutions. In Georgia alone, community banks did over 60% of all the PPP loans which ultimately saved the jobs of 1 million Georgians. The effort drove home for many the fact that the community banking industry is the single greatest provider of capital and banking services for the nation’s small businesses. I hope that all will remember this fact when the next call for increased regulation comes down the pike.

-The broad-based adaptation of technology by the community banking industry has arrived… well, almost. Over the years, I have watched the transition occur from serverbased technology solutions to full cloud and other real time ones. Community banks have almost fully recognized that to compete, they must embrace technology solutions that help lower the efficiency ratio, improve margins, and enhance the customer delivery experience. Additionally, over the seven to ten years, I have seen more community banks make core processor conversions than in all my previous years combined. The recognition that technology can improve while enhancing (not replacing) employee effectiveness is finally taking hold.

As most will say that are my age and older, time flies when you are having fun… and it does for sure! I have enjoyed every minute of the last 20 years serving and representing the community banking industry. It has been a privilege to serve, and I am grateful to both the ICBA and the CBA Board of Directors for the opportunity to be a part of this great industry.

Neil Stevens President & CEO

Oconee State Bank, Watkinsville 2023-2024 CBA Chairman

L.E.A.D. - Affirming Our Members

In this issue of Georgia’s Communities First, I will cover the third focus item in the Four Focus Items I outlined for my term as Chairman. The 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 past two issues, we covered what it means to LOVE and EQUIP our members. In this issue, we will cover what it means to AFFIRM our members.

Living in the real world means results matter, and if we want results, it’s imperative to make sure our members are accountable to making The Community Bankers Association the best it can be. How does true accountability happen?

One word: affirmation.

Accountability, like all leadership processes, starts at the top. According to Webster’s Dictionary, accountability is “the obligation or willingness to accept responsibility for one’s own actions.” By definition, the process of accountability starts with the individual. To ask people for their best, a leader must give his or her best, every day. And that same leader must see and affirm the same in others. Accountability without affirmation is just fear-driven management. Accountability with affirmation is thoughtful leadership.

Accountability often has a negative or ominous tone. When someone is being held accountable for their actions, it is usually in reference to an individual who has done something wrong. Being accountable should really mean holding ourselves and others to high standards – nothing more, nothing less. Great leaders find a way to use accountability to inspire their team to do their very best. Setting lofty goals is something we all aspire to do, on and off the job. It’s a language we all know and think about often. It’s life giving to know someone who loves and respects us will help us put in the work to achieving what we desire. It fans the flame inside us. Imagine what will happen when all of our members are filled with bankers both affirming one another’s flames and fueling them to greater heights.

As fellow members of The Community Bankers Association, let’s lock arms and affirm each other in ways that propels our elite trade association to unimaginable heights. Let’s all engage! Let’s push each other! Let’s serve on committees, let’s give to advocacy efforts, let’s find new members, and let’s make our association the best it can be by affirming each other in all we do!

Thank you.

Sincerely,

CBA’s Advocacy Update is published weekly during the session and provides a recap of the week’s events as well as bills CBA is tracking. Georgia’s community banks are well represented with CBA’s Lori Godfrey, EVP, Government & Regulatory Relations, lobbying on their behalf. To subscribe, email cba@ cbaofga.com.

Simplify Your Compliance with Finosec

Managing user access and information security governance is a team effort, and when the game is on the line, trust Finosec to help your financial institution bring home the win.

UPCOMING 2024

ADVOCACY EVENTS

The Annual Topgolf Showdown Tournaments are back! New this year, the first tourney will be held in Buford on April 25th and CBA is returning to the popular Atlanta location on August 8th.

Join us for a one-of-a-kind event that is equal parts networking and golf tournament with a friendly competition! This open-air tournament offers a way to connect and raise money for an important cause – CBA’s Advocacy Fund.

The tournaments offer a great social networking opportunity for vendor partners to bring bankers or bankers to bring their customers. Enjoy lunch, beverages, an afternoon of fun and a chance to win prizes as you network and support CBA’s Advocacy efforts.

TopGolf - Buford

April 25th

TopGolf - Atlanta / Midtown August 8th

Charlie Curry Memorial Tournament

Thursday, September 26

9:00 AM - 4:00 PM (EDT) Wynfield Plantation

5030 Leary Road Albany, GA 31721-8659 United States

IN MEMORY OF CHARLIE CURRY

In early 2018, the Georgia community banking industry lost a dear friend and passionate advocate, Mr. Charlie Curry of First State Bank of Randolph County, Cuthbert. In addition to his overall involvement with the Association, its Board of Directors and annual events, Charlie was an avid sportsman and often attended and supported CBA’s Advocacy Fundraising Clay Shoots. Therefore, the CBA Board of Directors unanimously decided to name this event in his honor. We are pleased to present the Charlie Curry Memorial Clay Shoot.

Charles “Chuck” Harwell Memorial Tournament

Thursday, October 24

9:00 AM - 4:00 PM (EDT) Burge Plantation

44 Jeff Cook Road Mansfield, GA 30055 United States

IN MEMORY OF CHARLES “CHUCK” HARWELL

In 2020, we lost our dear friend and colleague, Charles “Chuck” Harwell. Chuck was a CBA board member who always supported this event as well as all of our Advocacy events year after year. Chuck was truly passionate about ensuring community banks had a voice at the Capitol and staying engaged in lobbying for our industry. Therefore, your CBA family would like to respectfully memorialize Chuck, for what he stood for, and meant to his family, friends, and the community he impacted. We are pleased to present the Charles “Chuck” Harwell Memorial Clay Shoot.

COMPETE WITH THE

SHAZAM believes smaller financial institutions like yours shouldn’t lose out just because you don’t have the resources of a national megabank. That’s why we deliver flexible, cost-effective network and processing technology that helps you compete against the biggest dogs on the block. All fully backed by the kind of unmatched technical expertise and personal support that unleashes your power to make a big impact in your community.

Town Hall Talks are a multi-location Grassroots alternative to a Day at the Dome for you to meet your legislators in person. We are proud to be partnering with NFIB to host these “Town Hall” style events where attendees will have the opportunity to engage your legislators in a Q&A session and hear their perspectives on legislative issues that may impact community banks. Attendees will be presented with CBA & NFIB updates, programs, insights on the upcoming legislative session, and most importantly, meet & greet legislators.

Bankers, we encourage you to invite any small business clients to join and attend these Town Hallswith you. Regional information, networking, refreshments, and legislative updates at three locations around the state.

Chad

2nd Annual CBA Day at the Braves Outing Benefitting CBA’s Advocacy Efforts

August 24, 2024 @ 7:20 pm | Hank Aaron Terrace Braves vs Washington Nationals

Ticket information coming soon!

Thanks to our sponsors:

Atris Technology | CRI | First National Bankers Bank | Genesys Technology Group | Integris | James Bates Brannan Groover LLP | ServisFirst Bank | SHAZAM | WIPFLI

CBA’S ADVOCACY COMMITTEE

PROTECTING OUR COMMUNITY BANKS’ FRANCHISE VALUE

CBA’s Advocacy Committee leads the external efforts to influence and impact the legislative process on the state and federal level. Members are instrumental in developing the CBA’s stance on legislative issues and initiatives. Though it is recommended all members of CBA be in touch with their local legislators, members of this committee are leaders in efforts of contacting and discussing industry issues with state and federal legislators, their staffs, and our Association executives. The committee also serves as a networking and idea exchange for community bankers on potential or prospective legislation or issues.

“Advocacy efforts protect our community banks’ franchise value by helping to ensure a degree of competitive fairness. Strong advocacy efforts will also prevent excessive, overreaching regulation. This allows an environment where community banks can prosper and to continue to serve the needs of our customers and communities,” stated Mike Sale, President & CEO, The Commercial Bank, Crawford. “I feel it is the role of every community banker to advocate on behalf of our industry. I am honored to assist CBA’s outstanding advocacy team this year as the Advocacy Committee Chairman.”

Mike Sale President/CEO

The Commercial Bank, Crawford Advocacy Committee Chair

Advocacy Committee Members

Mike Sale, Chair The Commercial Bank

Brian Bazemore Community Bank of Dublin - Laurens County

Danny Capitel IntraFi Network

Chris Cochran Affinity Bank

Scott Curry

First State Bank of Randolph County

Michelle Dixon Century Bank & Trust

Richy Everly Bank of Wrightsville

Bryan Fiveash Fiveash-Stanley. Inc.

Frank Griffin Flint Community Bank

Cameron Loughery Integris

Jonathan Pope Exchange Bank

Brian Rhonemus Rhomenus Group

Katie Roberts Fiveash-Stanley. Inc.

Reece Sanford River City Bank

Hayden Stanley Fiveash-Stanley, Inc.

Neil Stevens Oconee State Bank

Jamie Tallent River City Bank

Eli Tinsley PlantersFirst Bank

Mike Underwood Peach State Bank & Trust

Michael White James Bates Brannan Groover

CBA Liaisons: Lori Godfrey, John McNair, Becky Soto

T. Daniel Brannan Atlanta Office dbrannan@jamesbatesllp.com

As General Counsel, our Financial Institutions team assists our clients in managing legal and regulatory exposure, training, and best practice development. Our Financial Institutions team – and our firm as a whole – has the depth of experience and resources available to assist your bank in navigating legal matters and answering questions We are directly accessible to your employees and board of directors at all times to ensure a professional, timely resolution of issues or questions. We are committed to being well-acquainted with your organization, its strategic priorities, and with your employees, shareholders, and board of directors so that we

ACCESSIBILITY

We offer all of our clients open lines of communication. We are committed to a high standard of responsiveness and to managing your matters at the pace your business runs. We employ our knowledge of your institution to internally allocate our most efficient and effective

RELATIONSHIP

As General Counsel, we want to be part of your team and a contributor to your success. As our relationship grows, we will develop an understanding of your needs, increasing our efficiency in handling your matters. We will understand your core system, ancillary software platforms, your policies and procedures, your

wisely manage each matter in the best interests of all We also work to ensure that our knowledge of your policies, procedures, general operations, strategic goals, and higher level business plans remains up to date and that our recommendations on any issue help you implement same with best practice in mind. Our ongoing representation is designed to serve as an integrated resource for your institution, and to be a right hand on any particular topic, regardless of its scope, at any time. Our goal is to bring our skill sets, experiences, and resources alongside you, and help your bank reach its ultimate potential.

resources to ensure that our external response to you is coordinated, professional, and guided by expertise and experience. If you need us, call us. Our phone numbers are direct lines to capable, experienced attorneys, ready to make you feel like your call is to another member of your team.

management structure, and your strategic goal, which will allow us to provide you with uniquely tailored legal services. We believe in superior client service and endeavor to foster a relationship with each client that reflects this standard of excellence.

Corrie E. Hall Macon Office chall@jamesbatesllp.com

Michael N. White Athens Office mwhite@jamesbatesllp.com

Doroteya N. Wozniak Atlanta Office dwozniak@jamesbatesllp.com

BEHIND THE SCENES LOOK AT GEORGIA’S LEGISLATIVE PROCESS

On the surface, the legislative process sounds relatively simple: identify a need, introduce legislation, debate it and call the vote, then send it to the Governor for enactment.

While this is the foundation of how ideas morph into laws, the actual process is nuanced, complex, and riddled with opportunities for derailment. Here we will explore Georgia’s unique legislative process, underscored by a key example from the 2023 session, which concluded on March 29.

A legislator, constituent, the Governor, executive agencies, advocacy groups, and others can identify the need for a new law or a change in existing law. Advocates must persuade a member of the House or Senate to sponsor a bill. Even the Governor and agencies like the Department of Insurance and Department of Transportation must enjoin the services of a member of the legislature to pursue legislation.

The lawmaker then works with a lawyer employed by the General Assembly to research the proposal and draft a bill that incorporates the change into the official code of Georgia. That legislator, now the sponsor, formally files the bill with the Clerk of the House or the Secretary of the Senate and the legislation is officially read into the record and assigned to a standing committee. In 2023, the 180 members of the House of Representatives introduced 850 bills; 56 Senators introduced 331.

The committee’s chairperson controls the committee process and determines if a bill will be considered by the committee members. If the bill is given a hearing, the sponsor will present it to the committee and answer members’ questions. Others might testify in support of or opposition to the measure. The committee can make changes – major or minor – to legislation, sometimes doing so without the support of the sponsor. Once the committee believes the bill has been “perfected” they can vote to pass or defeat it. Most frequently, bills are assigned to a committee and never even receive a hearing, languishing unceremoniously until the session expires.

Committees play a critical role in the legislative process. They are the workhorses of the legislature, allowing for the division of labor and subject matter expertise. This system enables the scrutiny of many measures during the short forty-day session. Measures of interest to community bankers are often routed to the following standing committees:

House Senate

Agriculture and Consumer Affairs Banking and Financial Institutions

Banks and Banking Finance Judiciary Judiciary

Ways and Means Regulated Industries and Utilities

A bill that is favorably reported from a standing committee then goes to the Rules Committee. The Rules Committee acts as a gatekeeper, deciding which measures will make it to the House or Senate floor for a full vote. This is another hurdle where many bills simply fall short. In the House alone, nearly 60 measures made it out of a standing committee only to remain in the Rules Committee last year.

A bill that makes it out of the Rules Committee is placed on the debate calendar. This is the quintessential legislative experience you are most familiar with: the sponsor presents the bill to all members in the expansive chamber, members stand at their desks with microphones in hand to ask questions and debate the merits of the legislation. When the debate is over, members vote, and the measure passes or fails. Most bills that make it to the floor are not controversial and overwhelmingly pass. The contentious bills with split votes are the ones that make the news; they are not as common as it may appear.

After all the maneuvering and potential pitfalls, the legislation still has a long way to go. The process repeats in the opposite chamber: a bill is officially read and moves its way through the two-part standing committee and Rules committee process before receiving a second floor vote. The bill can be stalled or defeated at any point in the progression.

As the forty-day session wears on, advocates of derailed measures become increasingly desperate to advance their language. During the 2023 session, CBA had a front-row seat for some of the creative tactics used to keep issues alive, especially as it relates to C-PACE.

Commercial Property Assessed Conservation, Energy, and Resiliency (C-PACE) is a public-private partnership that is intended to enable commercial building owners to invest in their property. Under these programs, a private lender finances energy-saving building upgrades and is repaid via a special assessment added to the property’s tax bill.

In 2022, C-PACE legislation was introduced as HB 1413 by Rep. Trey Rhodes (R), Greensboro; however, the bill did not crossover during the session. CBA and other trade groups representing financial institutions objected to the bill as drafted and worked with several proponents of the bill during the off session to discuss the topic and explore potential alternatives that would mitigate our concerns.

In 2023, the issue resurfaced as HB 206 by Rep. Steven Sainz (R), St Mary’s. This bill reflects changes made by the proponents to mitigate the concerns by the financial trade industry so that if the bill passes banks are in a better position than they were in the previous bill.

Mitigating Factors:

• Maximum LTV 80%

• C-PACE loan is capped at a maximum of 25%

• Tightening of how often these loans can be used by defining resiliency

• Timing of when a bank is involved from a consent perspective as well as tightening of the waiver language

On the last day of the 2023 session, SB 145 by Sen. Shawn Still (R), Norcross lost for the 2023 session, but remains eligible for consideration in 2024. As introduced, SB 145 prohibited local regulations that create differing standards for or distinguish between gasoline-powered leaf blowers from similar lawn equipment. On March 23, the House Government Affairs Committee amended SB 145 to include language from several other measures:

• HB 374, municipal deannexation of property

• HB 206, commercial property development authorities (C-PACER)

• HB 438, prohibits policies that ban utility service connections

• HB 92, EMC investment limitations in natural gas marketers

• An update to last year’s HB 1405, quasi-judicial zoning decisions

The House passed the measure with a vote of 103-67 on March 27. The bill bounced between the House and Senate as the hour grew late on the final day of session, presumably trying to move it to a conference committee so even more language could be tacked on. Ultimately that effort was not successful. However, both the amended SB 145 and all other standalone bills remain active for 2024.

As the forty-day session wears on, it is rare for a bill to make it all the way to the floor in the second chamber without being amended along the way. Those that pass cleanly are often technical measures offered by an executive agency; they have been carefully negotiated outside the legislative process and their passage is seen as essential for the operation of state government. These measures are often shielded from some of the more imaginative techniques leveraged against other bills. Typically, the Department of Banking & Finance’s Housekeeping bill is one of the “sacred” bills that is rarely impacted by these tactics due to the negotiations and approvals that are gotten on the bill before it is dropped by the sponsor. Deputy Commissioner Bo Fears does a great job at navigating this process and it is well known by legislators that this is a bill that is signed off on by all parties and any changes/amendments would negate all of that work done on the front end.

Only after legislation has been adopted by both the House and the Senate in the exact same form will it go to the Governor. Preparing legislation for the Governor’s consideration is a process known as enrollment. The enrolled copies of measures signed into law are permanently preserved by the Secretary of State as of the official text of the act.

The Governor has forty days after the session ends to act on legislation. He can sign, veto, or take no action; if he takes no action, the bill automatically becomes law at the end of the forty-day window. A veto by the Governor applies to the entire bill, except the two appropriations bills in which the Governor can veto specific budget items or programs. Some bills specify an effective date, but most new laws become take effect on July 1.

The successful passage or defeat of legislation takes a dedicated legislative sponsor, key messaging and engagement from stakeholders, and a dash of luck to make it through the gauntlet of the Georgia General Assembly. For a comprehensive look at legislation of interest from the 2023 and 2024 session, visit CBA’s Advocacy Blog.

ICBA LIVE is the annual destination for thousands of community bankers, solution providers, and experts to exchange strategies and resources. Join us for three days of inspiration, learning, growing, and connecting. Share and gain ideas from your peers to power your potential as leaders in your bank and community.

FOR YOUR EMPLOYEES &

What is the Julian & Jan Hester Memorial Scholarship?

The goal of the Julian & Jan Hester Memorial Scholarship is to assist deserving high school seniors in their first year of college and to promote community banking. All Georgia high school seniors are eligible to compete for this scholarship if they are planning to enter a Georgia university, college, or technical institute (two-year program or more) in the fall semester of 2024, following their high school graduation (applicant must be a full-time student). Each year, CBA awards four (4) $1,000 scholarships.

See the Hester Scholarship page for the student application, bank application and FAQ’s.

Applications should be returned to the bank by April 5, 2024.

Applications due to CBA by April 12, 2024.

What is the J. Steven Walraven Memorial Scholarship?

Community Bankers Association of Georgia and the Walraven family announce an annual scholarship through the J. Steven Walraven Memorial Scholarship Fund to a full or part-time Georgia community bank employee planning to attend a college or university within the state of Georgia. This $500 scholarship is awarded to a Georgia community bank employee attending a college or university within the state of Georgia. The goal of the scholarship is to assist those employees interested in furthering their education to enhance their career in community banking.

Applications due to CBA by April 12, 2024.

What is the McNair Family Scholarship?

The McNair Family Scholarship recognizes and honors the achievements of Nicholas (Nick) R. Cimino. The scholarship will be awarded once per year to an adult learner who is currently employed at a Georgia community bank and plans to work towards an associate, bachelors, or trade degree. An adult learner is someone two years removed from high school and working at least 25 hours per week at a Georgia community bank. The award is for $1,000.00 and will be paid directly to the institution of higher learning to offset student expenses (tuition, study materials, and expenses).

Applications due to CBA by May 1, 2024.

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

CBA COMMITTEES OFFER GUIDANCE AND INCREASED MEMBER BENEFITS

CBA’s active committees offer valuable insight, leadership, and increased member benefits for all CBA members. Take a moment to meet the committee chairs – we appreciate your commitment and dedication to Georgia’s community bank industry.

Looking to meet your counterparts from across the state and help your association grow? If you are interested in serving on a committee, please contact CBA.

Advocacy Committee & Bylaws Committee

Mike Sale

The Commercial Bank, Crawford Chair

AG Committee

Stephen Lewis

First National Bank of Coffee

County

Douglas Chair Education Committee

Linda Smith

Embassy National Bank

Lawrenceville Chair

Investment, Finance & Audit Committee

Kelly Stone

Community Bank of Georgia

Baxley Chair

Innovation Committee

Christian Ruppe, Colony Bank, Atlanta

Chris Stanley, Georgia Banking Company, Atlanta Co-Chairs

LEAD Board

Jessica Hudson

First National Bank of Coffee County Douglas Chair

Marketing and Communications Committee

Deesha Hagwood, Oconee State Bank, Watkinsville

Sarah Beth McMillan, Queensborough National Bank & Trust, Louisville Co-Chairs

Member Services Committee

Mani Swarnam

Georgia Primary Bank

Atlanta Chair

Membership Committee

Nancy Jernigan

First Port City Bank Bainbridge Chair

Education Buzz:

Service First Mentality!

Customer Service has been top of mind ever since I started answering phones and serving on the frontline for a community bank. Yikes, since 1996! What does your bank do to serve its customers? What does your banking association do to serve you, our stakeholders? We are proud to say we have three areas of focus: advocacy, member services & professional development. As professional development experts, we want to serve you by bringing effective and engaging training resources that allow your employees to serve your customers. How? We aren’t going to give you the secret process to our training planning model, we are going to listen to your needs and make value-based connections to learning opportunities that will support your strategic goals. Be the bank that keeps training & development at the top of mind to support the service first mentality.

Kristi Greer

Senior Vice President Director of Professional Development

Community Bankers Association of Georgia

CBA’s popular package of quarterly compliance training with additional reduced pricing & resources continues in 2024 with timely topics to support the industry.

May 15 & 16 - Risk Assessments, Compliance Management and Change Management - It’s All About the Game Plan

September 25 & 26 - Fair Lending

December 10 & 11 - Privacy, Security, and Fraud:How to Protect Your Customer

Maximize the potential of your team members, retain talent, track performance, collaborate on employee strategies, and more. Your HR manger should join the league of community bank HR professionals.

March 1, 2024 - HR Rap Session

May 6-8, 2024 - HR/TD Conference

July 19, 2024 - HR Rap Session

October 18, 2024 - HR Rap Session

December 6, 2024 - HR Rap Session

3 KEYNOTE SPEAKERS

Austin Hatch - "Grit"

My story is one of tragedy, incomprehensible loss and triumph.

My message is about my journey from a coma, to a wheelchair to playing for Michigan. Join us Thursday, June 6 for my message.

Matt Booth -"Basically Incredible"

Matt’s humor, quick wit, and ability to connect with people creates meaningful attitude changes. Matt has enjoyed getting to share his message throughout the United States and with international audiences around the world.

Join me Friday, June 7.

Chancellor Sonny Perdue

Dr. Sonny Perdue currently serves as the 14th chancellor of the University System of Georgia since 2022. He oversees 26 public colleges and universities with a $9.8 billion annual budget, 48,000 faculty and staff and more than 340,000 students.

Join me Saturday, June 8.

Add a professional designation to your signature line! Check out ICBA’s Education opportunities and certification programs!

Completing training with your community banker’s association, yes; that’s us, gives you a chance to earn continuing education credits that align with these professional certifications.

Do you have an employee that wants to understand the full picture of the community banking industry? We want to support your bank’s talent development by offering this brand new class. Participants will establish a strong foundation of the banking industry and improve cross functional contributions for overall bank success. This program prepares bankers to participate in Barrett School of Banking.

Excellent Program for New loan/credit professionals and for those who want to refresh their knowledge.

NEW! Let’s learn from a skilled compliance officer with banking experience. Community Bank Compliance managers asked for more opportunities to dig deep into regulations. Why? So, they get to refresh and review internal bank policies and procedures to support sound banking practices. Join us on March 19-20 to learn from facilitator, Kristin Harville, and your peers. This is a hands and feet workshop style program that brings even more value than just the online network of sharing resources.

We provide CRA Education & Training, CRA Support Services, the CRA Collaborative Peer Group, and CRA compliance programs that create safe living environments for older adults, while earning CRA Credit for banks.

Day 3 8:00-12:00

We are inviting outstanding speakers and experts to support your employee & talent strategies. Contact Kristi Greer to make your suggestions.

Register one time and attend all 4 sessions!

Session 1: March 5 – 6

Winning Together: Becoming the Leader Your Team Needs & Wants

Session 2: April 23 – April 24

Leadership Impact & Mindset Training

Session 3: August 13 - 14

More than Words, Communication Session

Session 4: October 1 – 2

Utilizing the Tool Belt in Your Bank

Inspired by CBA’s LEAD Board, the Community Bank Leadership Academy is designed specifically for the future community bank leader. This series of four sessions will benefit the attendees through individual self-discovery, personal and professional growth and career development. Each participant will walk away with their own personal development plan. The workshops are designed to bring continuity and sustainable accomplishments which will allow each participant to build positive influence, team connections and ongoing learning resources. The Academy aims to support Georgia’s community banks in the development of its people so that these bankers will become impactful leaders of influence - for the bank, themselves and their communities. Participants who consecutively attend & participate in all four sessions in a calendar year will receive a Certificate of Completion

The Series - The “Tool Belt” Leaders choose to professionally grow their knowledge. This series will encourage not only workshop participation but also ongoing selfdevelopment. The sessions are designed to build upon each other so that each leader can create action plans for successful practice in their banks. You will see value plus change.

In 2024, each session will cover 1.5 days of learning and development and will take place on Tuesday afternoon & evening and all day Wednesday.

Spread the wealth

Some bond sectors performed better than other in 2023

As we have navigated the holiday season, and hopefully had some time to wrap up some gifts as well as a successful 2023, let’s now spend a few minutes looking into pockets of relative value in the bond market. To get there, we should remind ourselves of the vagaries, and ironies, of fixedincome investing. In my 35 years of portfolio management participation, I’ve noticed some recurring themes and doctrines, which have both positives and less-than-positives:

• Higher rates = lower prices

• Selling bonds at a loss, versus a gain, has positive cash flow implications

• Community banks buy more securities in lower rate periods

• Higher coupons have less price volatility than lower coupons

• Yield spreads usually widen when rates fall

Let’s stay with this last bullet point for a minute. In practice, this means the value of a “risk” asset, which we’re defining here as anything other than a treasury note, will improve less than a similar duration treasury, given a drop in rates. There are several reasons for this reaction. One is that rates fall when investors expect the economy to slow down, so presumably credit quality will become sketchier. Another is that the lower market rates translate into greater call risk, since the likelihood of a bond ending up “in the money” to be redeemed increases.

Usually, not always

The corollary to the preceding paragraph is that spreads narrow as rates rise. In the year just completed, in which Treasury yields fell thanks to a fourth-quarter rally, we saw an amazingly diverse set of returns for the various bond sectors that community banks like.

Most of the mortgage sector, for example, saw their spreads widen. The genesis of the wider-spreads/higher treasuries dynamic was, of course, the demise of several large banks beginning in March. Silicon Valley Bank in particular, with its $200 billion-plus of mortgage-backed securities (MBS), caused that sector to have some indigestion through the summer as the FDIC’s bridge bank gradually disposed of the assets. Still, yield spreads were wider at the end of the year, partly the result of depositories in general not purchasing many bonds of any color or flavor.

The MBS sector, in this column, includes traditional fixed-rate pass-throughs, collateralized mortgage obligations (CMOs) and even adjustable rate pools (ARMs). In the counter-intuitive world of bond investing, mortgage pools’ underperformance in 2023 would seem to indicate a pocket of value heading into 2024.

Munis for the bid?

You may ask, “If MBS are cheap, what’s expensive?” On the other side of the past-performance spectrum are municipal securities. The muni market has other machinations going on that resulted in relatively low yields and spreads by the end of last year.

Jim Reber President & CEO ICBA Securities

Demand for munis is determined not so much by institutional investors, but by the retail sector. Well over 60% of existing muni bonds are owned by individuals either directly or through municipal bond funds. Appetite for retail munis has generally grown over time as Baby Boomers retire, and except for temporary “headline” sell-offs such as those related defaults by Detroit or Puerto Rico some years ago, demand has been steady and growing. Recent credit-quality performance in the sector has been solid.

The supply side of the municipal market is another story. According to the Federal Reserve, the entire muni market grew by only $50 billion between 2010 and 2022, or barely more than 1%. More recently, in 2023 there were a number of issues postponed into the future, presumably to chase lower interest rates. The amount of new paper issued in 2023 was over 20% less than in 2021. While some of that was due to fewer calls being exercised, the continued supply shortage has pulled down tax-equivalent yields for institutional buyers, including community banks, into “through the curve” levels. For maturities out to 10 years, investment grade munis could yield up to 50 basis points (.50%) less than benchmark treasuries.

Cogito, ergo I swap?

The previous two sections would seem to suggest a tidy bond swap strategy. The first step in any simultaneous purchase and sale is to find the most efficient securities to sell. Those would be the ones with the lowest return to the buyer, otherwise known as a “take-out yield.” Bonds that have lower returns than treasuries are hard to come by, but that’s exactly where shorter municipals were trading at the end of 2023.

Securities to replace them? I’d start with some kind of MBS. Recently, strategists from Stifel have been suggesting “hybrid ARMs,” which have reasonable yields today and the possibility of maintaining them in the future even if rates fall. Most of them come with offering prices below par, which is another rarity.

Ultimately the theme of this column is that opportunities abound for your bond portfolio at the start of the year. Some sectors look historically expensive, others seem to offer uncommon value. Acting early in the year can get momentum started for a prosperous 2024.

Jim Reber (jreber@ icbasecurities.com) is president and CEO of ICBA Securities, ICBA’s institutional, fixed-income broker-dealer for community banks.

Is your community bank bond portfolio performing?

Meet Jim.

Jim meets with community bankers across the U.S. to discuss ICBA Securities’ investment products, services, and education through our exclusively endorsed broker, Stifel. Investing through ICBA Securities is a direct investment back into the community banking industry.

When Jim is on the road, he always takes time to enjoy local restaurants and share on social media.

As an ICBA member, you’ve got Jim’s help investing. Learn

State Tax Credits Supporting Education

Did you know you can redirect your tax obligations to support education in your community, all at no cost?

By doing so, you may also be eligible for a federal deduction. The Qualified Education Expense Tax Credit (QEEC) in Georgia presents a unique opportunity for both corporate and individual taxpayers. They can earn a dollar-fordollar tax credit by donating funds to organizations that provide scholarships to students attending private schools.

The process is straightforward and accessible to all interested participants in the state of Georgia. Applying for the tax credit, redirecting your tax payment, and receiving a 100% tax credit, along with a federal deduction, are simple steps that empower individuals and corporations to make a meaningful impact on education without incurring any additional costs.

Engaging in community giving takes this initiative a step further. By becoming a community leader, you actively contribute to educational initiatives in your local area, aligning with the principles of smart citizenship and demonstrating a dedication to community well-being beyond financial considerations. Corporations across Georgia are recognizing the exceptional opportunity presented by strategically transforming their tax payments into powerful investments in education. Participating in the program allows forward-thinking institutions to claim a 100% tax credit on the state level and a federal deduction, showcasing financial savvy while fulfilling community responsibilities.

David Neyer President & CEO

Georgia Student Scholarship Organization, Inc. georgiasso.us

This initiative goes beyond astute financial planning; it represents a commitment to community empowerment. Every dollar contributed directly enhances educational opportunities for local students, making a tangible difference in the lives of those in need.

In the dynamic business landscape, the importance of business generosity is emphasized by insights gleaned from goBeyondProfit.com’s enlightening 2019 business generosity survey. While labor shortages, closely trailed by concerns about inflation and recessionary risks, may dominate the list of worries for Georgia’s top executives, this report serves as a positive affirmation of the pivotal role business generosity can play. It not only acknowledges the challenges but also sheds light on the opportunities for positive change. The findings offer valuable data that can guide and prioritize impactful generosity initiatives, showcasing a pathway for businesses to make a meaningful and positive impact on their communities amidst challenges.

Since 2008, Georgia Student Scholarship Organization, Inc. (Georgia SSO) is one of the original, largest, and top-rated non-profit Student Scholarship Organizations (SSOs) in the state. Georgia SSO has partnered with over 130 Georgia private schools, directing more than $80 million in tuition scholarships to students from PreK to 12th grade. The organization upholds the highest standards of financial accountability through mandatory annual audits and governance by an independent Board of Directors.

Georgia SSO empowers taxpayers to redirect a portion of their state taxes, contributing substantially to the enhancement of education in the state.

Breaking Down the New CRA Framework

Banking regulators have finally released the long-awaited final rule reforming Community Reinvestment Act (CRA) regulations—a regulation that often receives mixed sentiments from bankers. Fortunately (or unfortunately), regulatory changes typically unfold incrementally. The new rules, therefore, build upon existing ones rather than taking a wholly new direction.

CRA regulation mandates that banks extend loans to low- and moderate-income borrowers or those in low- to moderateincome census tracts. One historical frustration stems from the lack of specific metrics outlining the required number or dollar amount of such lending. The performance under CRA is contingent on various factors:

• Type of exam: Typically size-based (small, intermediate, large) or for limited purpose/wholesale banks.

• Assessment Area

• Low-Mod lending: (<80% of area median income) in the assessment area

• Investment and services performance

CRA exams range from simplified lending exams for small banks to a combination of lending, investment, and services tests for large banks. The size thresholds for these categories have evolved over time. The new CRA regulation, however, raises these thresholds even further, enabling more banks to qualify as small or intermediate, thereby streamlining the examination process for more banks.

The new size ranges relative to the old ones are shown in the table below:

For intermediate and large banks, the Community Development investment test evaluates qualifying investments relative to total assets. Markets respond with CRA eligible pools, purchased by banks to enhance their CRA score. Large banks have an added category for services, tracking staff service hours in the community.

The new CRA rules modify the weighting system, allocating 40% to lending plus 10% for lending services, and 40% to investment plus 10% for community development services. Small banks maintain a 100% weight on lending, while intermediate-sized banks shift to a 50:50 evaluation for lending and investment.

Ratings remain subjective, ranging from “outstanding” to “substantial noncompliance.” The lending test utilizes seven metrics, but without defined target levels, it retains a degree of subjectivity. Under the previous regulation, small and intermediate-sized banks faced challenges if over 50% of their loans originated outside the FBAA. The new regulation introduces the same CRA strategic plan process, but the evaluation of “outside retail lending areas” allows banks to showcase aggregate CRA performance. Fewer banks are expected to take this route, as the assessment becomes more objective, specifying metrics and performance levels needed for each score.

The new CRA framework adapts assessment areas, lending tests, and evaluation weightings to enhance the effectiveness of CRA regulations. The shift to more inclusive and adaptable criteria aims to streamline the examination process for a broader range of banks.

Steven Patrick, Managing Director at Endurance Advisory Partners

In CRA examinations, banks first define their assessment area, transitioning from the old “facility-based assessment area” (FBAA) to a more adaptable approach under the new CRA regulation. Large banks now evaluate performance in retail lending assessment areas (RLAA), based on mortgage and small business loans in specific MSAs. Small and intermediate banks still use FBAAs but can opt for RLAAs, with the new rule explicitly covering lending in “outside retail lending areas.” Following the assessment area specification, banks undergo a lending test. The new evaluation of outside retail lending areas eliminates the previous requirement of a “majority in its AA,” preventing automatic unsatisfactory ratings. Community lending is then assessed across three loan categories: residential mortgages, small business loans, and small farm loans.

Endurance Advisory Partners Steven Patrick is a senior corporate finance professional, with deep expertise in strategic planning, liquidity management, financial management and mergers and acquisitions. Prior to joining Endurance, Steven served as Corporate Treasurer for a $2 billion regional bank and eight years at the Federal Home Loan Bank of Chicago in various planning, research and product development roles. Prior to joining the FHLBC, Steven was a managing director in Bank of America’s corporate finance advisory group and an associate at Merrill Lynch. Over the course of his 13year investment banking career, Steven executed a wide variety of financing transactions, capital raises and valuation assignments. Steven was also a business strategy consultant with Booz Allen & Hamilton for three years. He has an MBA with honors from the University of Chicago and a BA, magna cum laude, with distinction from Carleton College.

Quarter 2 - May 9, 2024 at Century Bank and Trust in Milledgeville

Are you ready to revolutionize your marketing game? Join us for an unparalleled opportunity to connect, collaborate, and supercharge your marketing efforts at our attendee lead Marketing Roundtable!

Why Attend?

Tailored Insights: Acquire specialized insights into community banking marketing trends, strategies, and success stories directly from seasoned professionals in the field.

Networking Extravaganza: Connect with like-minded professionals, forge new partnerships, and expand your network during interactive sessions and engaging activities.

Interactive Discussions: Participate in lively discussions on topics ranging from brand positioning and digital marketing to community outreach, ensuring a comprehensive understanding of the evolving market. Share your experiences, and learn from the successes and challenges of your peers.

Exclusive Access: Be part of an exclusive group of attendees who are serious about taking their marketing strategies to the next level.

SERV NO GEORGIA COMM N TY BANKS

ACG has proudly served the interest of Georgia Community Banks for over 30 years. We believe in a "Better Customer Experience" and ensure complete satisfaction. ACG has been an endorsed member of CBA of Georgia for over 17 years.

Branch solutions and much more:

R Re-Manufacturing & Branding - Re-Manufactured ATMs look and perform like a new product; they are environmentally friendly and a cost-effective way to upgrade and expand your fleet. ACG is the largest ATM remanufacturer in the world.

If the look and feel of your fleet needs an update, we offer wraps, canopies, custom screens and full-service turn-key deployment. Studies show that customers prefer to use an ATM that is branded by a bank, and properly maintained, with security features installed.

F Field Service - Our technicians are always on time, thorough and friendly. ACG is one of the largest suppliers of parts worldwide - we have the parts you need! Proper service eliminates downtime, maintains compliance, protects your brand, extends your equipment lifespan and increases the return on your investment.

ACG's online portal gives customers direct access to enter service requests, track calls, and view history.

Teller Cash Recyclers - TCRs are one of the most beneficial ways to offset staffing shortages, reduce labor costs, and enhance cash management and security while providing your customer with an experience, not a transaction. ACG is honored to be the U S Master Distributor for ATEC Teller Cash Recyclers, offering the larges t, fastest, and most feature-rich TCR on the market!

Contact us and find out how we "Make It Easy!"

tracy.dobson@acgworld.com

chandler.wright@acgworld.com

CBA’S 2024 PREFERRED SERVICE PROVIDERS

Under the leadership of CBA’s Member Services Committee, which is made up of community bankers, CBA identifies companies who are dedicated to serving community banks and who will provide CBA members with quality service. All Preferred Service Providers have earned the approval of the Member Services Committee.

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

Drew Kessler | drew@genesystg.com | 678.208.6030

Wipfli

Summer Gustin | summer.gustin@wipfli.com | 480.289.6052

GOLD LEVEL

Holtmeyer & Monson

Arne Monson | amonson@holtandmon.com | 800.340.7304

Integris

Cameron Loughery | cameron.loughery@fid.integrisit.com | 470.683.6882

IntraFi Network

Danny Capitel | dcapitel@promnetwork.com | 770.630.6796

Mauldin & Jenkins

Ron Mitchell | rmitchell@mjcpa.com | 229.446.3600

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

SILVER LEVEL

ACG

Phil Winn | Phil.Winn@acgworld.com | 678.458.9899

Core10

Laura Day | laura.day@core10.io | 706-766-5522

Eclipse Brand Builders

Joel Thompson | jthompson@eclipsebrandbuilders.com | 678.894.4360

Econocheck

Paxton Sakha | paxton@econocheck.com |404-376-8536

Executive Insurance Agency, Inc.

Ryan Sower | ryan@executiveinsuranceagency.com | 770.474.2355

Finosec

Zach Duke | zach@finosec.com |404.434.2873

Kasasa

Ryan Busenitz | Ryan.Busenitz@kasasa.com | 678.595.0625

Newcleus Bank Advisors

JR Llewellyn | jr.llewellyn@newcleus.com | 678.427.1015

Quilo

Don Shafer | don@quilosolutions.com | 972-793-2996

QwickRate

Melissa Wallace | melissa.wallace@qwickrate.com | 678.797.4062

Stokes Carmichael & Ernst LLP

Michael Ernst | mje@scelaw.com | 404-603-3441

Strunk

Kristi Daly | kdaly@strunkaccess.com | 713.423.0926

BRONZE LEVEL

Abram Armored

Tony Webb | twebb@abramarmored.com | 770-855-2989

College Ave Student Loans

Brian Reed |breed@collegeave.com | 610.620.4322

CRA Partners

David Lenoir | david.lenoir@shcpfoundation.org | 901.529.4786

United Healthcare

Michael Wahlstrom | michael_wahlstrom@uhc.com |404.909.5318

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.