May 22, 2020   

PPP Update

Form 1502 Reporting Process Announced and More

The SBA Thursday released the Form 1502 reporting process through which PPP lenders will report PPP loans and collect the processing fee on loans fully disbursed. Here’s the full document.

 

There's been a lot of additional helpful activity related to the Paycheck Protection Program in the past week.

 

Through May 16, Georgia lenders had made 131,085 loans totaling $14,026,631,738, which ranks our state 7th in number of loans and 11th in total loan volume nationwide. Georgia’s average loan size continues to track lower than the national average and now stands at $107,004 in the two phases. Nationally the latest numbers show 4,393,036 approved loans totaling $512,249,237,428 with an average loan size of $116,604.

 

More and more banks are starting to get good recognition by media for all their work to help customers. Oconee State Bank’s efforts were the subject of a nice article in the Oconee Enterprise this week, with quotes from incoming GBA Credit Committee Vice Chair Philip Bernardi and former Marketing Committee Chair Deesha Hagwood.

 

The SBA has released its official loan forgiveness application. It is helpful in that it answered a number of questions that borrowers and their legal and accounting advisers had about the program, but there’s a lot we don’t know. Here’s a good summary of the questions answered and still out there shared by Rob Klingler of Associate Member law firm Bryan Cave Leighton Paisner.

 

Treasury and SBA have updated the program rules and guidance FAQs in several areas. An SBA interim final rule out maintains that lenders must close a loan within 10 days of receiving an approved loan number or canceling a loan within 20 days after receiving a loan number if the borrower fails to return loan documentation. And it aligns the rule with updated Treasury guidance related to borrower safe harbor certifications and that SBA Form 1502 reporting is due by the later of: (1) May 29, 2020, or (2) 10 calendar days after disbursement or cancellation of the PPP loan. Also, late last week, Treasury guidance came out stating that Electric Membership Corporations were eligible for PPP loans under most circumstances. Here’s a link to the latest guidance FAQs. See a separate article below about a GBA-endorsed product from Abrigo to help banks with the forgiveness process.

 

In response to an Interim Final Rule, GBA submitted a letter late last week with a number of questions to SBA Administrator Jovita Carranza regarding the Paycheck Protection Program. Our thanks go to Jim Bedsole, SVP, Chief Compliance & Risk Officer with BankSouth in Greensboro for his assistance with our letter. Bedsole is a longtime member of GBA’s Compliance Committee and on the Board of the GBA Compliance School.

 

And, in other PPP news, bipartisan legislation was introduced in the House this week by Rep. Dean Phillips (D-MN) and Rep. Chip Roy (R-TX) to address concerns raised by many borrowers. The bill would extend the forgiveness period from 8 to 24 weeks, move the covered date from June 30 to Dec. 31, 2020, eliminate the 75/25 split between payroll and other eligible expenses, and allow the tax deduction for payroll expenses.

 

With questions, contact Joe Brannen.

 

Back to top of E-Bulletin


Annual Meeting Hometown Edition – Buy Your Access Today

Powerhouse Package of Sessions Available at Value Price

Instead of hitting the road, we’re bringing the GBA Annual Meeting’s educational experience to you and your team this year. We’ve rolled out our virtual meeting package that features eight unique strategy and skills sessions. There’s value for any person on your team and board of directors. One value-priced registration per company unlocks access for everyone from June 15-July 17. Why should you tune in?

  • Roger Tutterow of Kennesaw State University will give us an economic update

  • Learn the secrets of Chick-fil-A’s digital marketing strategies and how you can apply them

  • Glimpse the future of Georgia’s business community from Chris Clark, president and CEO of the Georgia Chamber of Commerce

  • Experience a Ted-Talk-style look at how to blend the digital experience with a human touch to meet your customers’ expectations

  • Dive deep into planning with two strategic discussions about boards of directors and talent management

  • Discover how to mine public-record real estate data to find new loan leads and develop even more robust customer relationships

  • Explore ideas about asset-liability management as we look toward the post-pandemic environment.

Full details about the speakers and sessions are here. It’s all available for one low price of $350 per member bank or company – less than $45 per session. Non-members may participate for $700. Register here.

 

Associate Members: Sponsorship and virtual exhibit opportunities are available, each of which includes a registration to access all the content. Email Bo Brannen for information.

 

Related: GBA's Annual Business Meeting is June 15 at 9 a.m. by video and teleconference. We'll elect officers, hear Chairman Chuck Copeland's state of the Association Address, learn incoming Chairman Spence Mullis' plans for his term, and recognize leadership and longtime bankers. And, FDIC chair Jelena McWilliams will be our special guest. All members are welcome to attend at no cost. Register here.

 

Back to top of E-Bulletin


Hagler

Hagler Takes Reins as CSBS Chair

We’re mighty proud of Georgia Banking Commissioner Kevin Hagler, who was elected Chairman of the Conference of State Bank Supervisors on May 18. It’s an honor for our state’s industry for its top bank regulator to be the lead voice among his peers at the national level. Since becoming our state banking commissioner in 2013, Hagler has been a steady hand at the helm of Georgia’s Department of Banking and Finance, and he’s consistently been at the forefront of helping shape CSBS positions on national supervisory issues. “We are glad to see his peers recognize the leadership qualities we’ve seen for a long time in Commissioner Hagler. His sound judgment, impeccable integrity and genuine concern for a safe and sound regulatory process overseeing the industry have been the foundations of his approach to supervision,” said Joe Brannen, GBA president and CEO. “The CSBS will be well led while he’s at the helm.” See who will serve with Hagler in leadership roles.

 

Back to top of E-Bulletin


Craft Bank Gets Conditional Approval for Charter

Congratulations to the organizers and officers of Craft Bank, which this week got conditional approval from the Georgia Department of Banking and Finance and FDIC for a charter and insurance. The bank will be based in the Midtown area of Atlanta, and will be led by proposed President and CEO J. Ross Mynatt, who most recently served as Senior Vice President at Georgia Primary Bank. Additional members of the management team include Mike Cullinan, Chief Credit Officer; Greg Griggs, Chief Lending Officer; Kitty Kendrick, Chief Financial Officer; and Beth Martin, Chief Experience Officer. Marc Greene, former President and CEO of Mountain Valley Community Bank, will serve as Chairman of the Craft Bank Board. Scheduled to open in August, Craft Bank is the first new bank formed inside the I-285 perimeter of Atlanta in 12 years, and it will be the third new bank opened in Georgia since mid-2019. Read more here.

 

Back to top of E-Bulletin


Asset Liability Committee Checks in on Conditions, Plans Conference

The GBA Asset Liability Management Committee met this week by video conference. It was an opportunity for CFOs and others with financial management responsibilities to share info about conditions in their market and to begin planning the annual GBA Financial Risk Management Conference for their peers. Committee Vice Chair Daniel Stanford, SunMark Community Bank, led the discussion as he’ll be the Chair at the time of the conference. Topics of focus during the market check ins included PPP loan activity, customer-care activities, exam trends and experiences, liquidity trends and fee-income challenges. The conference will be Nov. 5-6 in Atlanta at the Hyatt Regency Atlanta Perimeter at Villa Christina, so mark your calendar. We’ll share details about the program and registration soon. Special thanks to current Committee Chair Holt Redding, South Coast Bank & Trust, for his leadership during the past year. With questions, contact Alison Moreau by email.

 

Back to top of E-Bulletin


Fraud Alert – State Unemployment Programs Targeted

The U.S. Secret service, industry groups and other security watchdogs this week put banks and others on notice of a massive fraud effort targeting state unemployment programs in several states. Nigerian scammers have targeted Washington, North Carolina, Massachusetts, Rhode Island, Oklahoma, Wyoming and Florida so far. The scheme involves depositing funds by ACH from the programs into customer accounts at banks in other states, and there’s evidence of that here in Georgia. A member shared with us it received a Washington State Unemployment Insurance benefit ACH deposit in the amount of $9,639 to be credited to a customer account earlier this week. The bank has reported it to the Secret Service and local law enforcement, and wanted other members to be on the lookout for similar deposits. Read more details in the Secret Service alert.

 

Back to top of E-Bulletin


Lobby Re-Openings Rolling Out

Georgia’s banks continue to ease into fully re-opening branch lobbies. In an updated survey of members, 22% reported they’re already open, with 31% planning to re-open the week of May 25 following the Memorial Day holiday. And, 25% reported they plan to re-open the week of June 1. The remaining 22% are still considering their options. In banks with fully open lobbies, most reported relatively positive customer reaction with some residual tentativeness from customers and lighter than usual customer visits. Some of the banks that have fully re-opened are doing so with unpublicized “soft openings,” with one of those members commenting that they wanted a quiet re-opening and that’s what they’ve gotten. Another bank that did a soft opening said, “Customers are comfortable. Some had expected it would be like before COVID-19, and I sense a little disappointment with the prodigals, but we found customers are getting accustomed to a new normal.”

 

Back to top of E-Bulletin


Feedback Needed on FDIC Proposal

As we reported last week, the FDIC has issued a notice of proposed rulemaking to ensure that banks will not be subject to significantly higher deposit insurance assessments for participating in the PPP and PPP Lending Facility programs. We welcome the proposal, however, after asking Regional Director Mike Dean for some clarity during a recent call, he confirmed that as proposed, ”for PPP loans that have been pledged as collateral for a non-recourse loan that is provided as part of the PPPLF, the FDIC would exclude such loans from total assets for purposes of calculating an insured depository institution’s (IDI) assessment rate. In addition, when making certain adjustments to an IDI’s deposit insurance assessment rate, the FDIC would exclude such loans from average total consolidated assets. The FDIC also would provide an offset to an IDI’s total assessment amount for the increase to its assessment base attributable to participation in the PPPLF. Unfortunately, PPP loans that have not been pledged to the PPPLF would not receive the same treatment of excluding such loans from the financial institution total assets.” We will make sure that's in a comment letter and will continue to review the proposal, but we encourage member feedback on what you see as well. The FDIC proposes an effective date of June 30, 2020, and an application date of April 1, 2020. Comments are due NEXT WEDNESDAY, May 27. Let Joe Brannen, 404.420.2026, or Elizabeth Chandler, 404.372.7893, know of other issues you may have with the proposal.

 

Back to top of E-Bulletin


Virtual Ag Conference a Hit

Bankers serving rural markets and agribusiness around the state participated Monday through Thursday this week in a unique virtual conference. Because we couldn’t host the annual in-person conference, the daily, hour-long sessions were geared toward keeping these bankers connected with each other and keeping critical industry intelligence flowing to them. Monday’s session focused on national ag policy updates with Ed Elfmann from the American Bankers Association. Tuesday, the chief economist for the American Farm Bureau Federation, Dr. John Newton, shared a presentation detailing the effects on the ag economy of the pandemic and the trade deal earlier in the year with China. Wednesday featured two sessions. Plenn Hunnicut kicked things off with a lively discussion about row-crop commodity projections and crop insurance programs. And, we learned about the unique challenges for property owners related to passing on their estates to heirs from Skipper StipeMaas of the Georgia Heirs Property Law Center. The conference concluded with Chuck Williams, our State Forester and Director of the Georgia Forestry Commission, explaining the importance of the timber industry to the state’s economy and how bankers can help support timber producers and related businesses. Williams is also a former chair of the Ag Committee and the GBA. Congratulations to Committee Chair Danny Minick, The Citizens Bank of Americus, and Vice Chair Adam Smith, SunTrust, now Truist, for their leadership in conference programming and adjusting the format to ensure members were provided with a valuable experience. And, a big shout out to presenting sponsor Point to Point Environmental and its CEO Mark Faas. Please give Faas and his company the opportunity to earn your business as they are strong supporters of GBA and member bankers. With questions, contact Alison Moreau by email.

 

Williams presents his session Minick introduces the conference Economic Update given at conference

 

Feel like you missed out? You can buy the session recordings and presentation slides for $150. Click here to “register” for the sessions and we’ll email you the links.

 

Back to top of E-Bulletin


CRA Rule Issued by OCC, Otting to Depart

The OCC this week issued a 370-page final rule updating the CRA in a major way for the first time in 30 years. The new rule makes changes in four key areas: qualifying activities, determining bank assessment areas, evaluating CRA performance and CRA reporting. Related to qualifying activities, the rule includes a preliminary list that will be published and updated annually in a searchable format on the OCC website. The new rule, which will apply to OCC-regulated national banks and savings associations (34 based in Georgia), will be effective on Oct. 1, 2020. The agency is providing a phase-in period for the new requirements, and institutions with less than $600 million in assets choosing to opt in to the new regime will have until Jan. 1, 2024, to comply. Community banks with assets of up to $2.5 billion will also have the option to opt out of the new performance standards. The FDIC said it is not ready to finalize a rule that would apply to banks it supervises, and the Federal Reserve did not participate in this rulemaking. We’re working with our expert compliance contacts to fully understand the changes for some analysis we’ll provide soon. Also, in what is the bank regulator equivalent of a mic-drop moment, Comptroller Joseph Otting announced his departure, effective May 29. First Deputy and Chief Operating Officer Brian P. Brooks will become Acting Comptroller of the Currency. “Joseph Otting brought a deep background in business to the job and ensured the agency focused on a regulatory regime that concentrated first on safety and soundness while finding ways to reduce banks’ regulatory burden," said GBA Chairman Chuck Copeland, president and CEO, First National Bank of Griffin.

 

Back to top of E-Bulletin


Important HR Updates from Employment Law Compliance (ELC)

We have received two important updates from Steve Greene and GBA Strategic Partner ELC recently.

 

First, the Department of Labor this week issued a final rule that clarifies that employees in retail or service businesses who receive more than half of their compensation in commissions may be exempt from federal overtime pay requirements, under section 7(i) of the Fair Labor Standards Act. The rule opens the door for banks to treat commissioned mortgage loan officers as exempt employees. Read more here.

 

Secondly, the EEOC recently released updated guidance which speaks to the ADA compliance implications of a mask requirement for employees. Read more here.

 

With questions, please contact Steve Greene, 770.206.3381, sgreene@employlawcompliance.com.

 

Back to top of E-Bulletin


Exclusive GBA Member Pricing Available

Georgia Bankers Association Endorses Abrigo's PPP Loan Forgiveness Solution

The GBA Services, Inc. Board of Directors last week voted to endorse Abrigo's Paycheck Protection Program (PPP) Forgiveness and Administration solution, part of the Sageworks SBA Lending solution, to aid GBA members and their customers with the loan forgiveness and administration process. Although the forgiveness application for borrowers has been released, many aspects of the forgiveness process remain unclear. The GBASI Board felt it would be beneficial for banks to have a partner, like Abrigo, to help you stay compliant and service the loans at scale as the SBA and Treasury issue final guidelines. Abrigo's solution will:

  • Provide banks with a dashboard and reporting system for existing PPP loans

  • Provide borrowers with a secure portal for borrowers to upload Use of Proceeds documentation

  • Give banks the ability to calculate the forgiveness amount based on the provided PPP guidelines to ensure compliance and accuracy

  • Generate Form 1502 within the platform to request their loan processing fees from SBA

  • Allow banks who filed with other vendors or directly through the E-Tran portal to easily import the data from their core to streamline the forgiveness process.

  • Assist with any ongoing monthly servicing and more.

The Abrigo team conducted a webinar earlier this week, and you can access a recording of that session here. You may also download a pdf overview of Abrigo's solution here. With questions, please contact Abrigo’s Laura Wahl, laura.wahl@abrigo.com, 919.906.5649.

 

Back to top of E-Bulletin


Comp Survey Deadline Extended by 15 Business Days

We want to give all Georgia banks ample time to participate in this year’s Georgia Bank Compensation Survey, so we’ve extended the deadline to June 10. This will still provide time for the results to be compiled in time for the report to be published in time for budget season starting in August. For instructions about how to participate, contact Rhonda Snyder at rhonda.snyder@pearlmeyer.com and she’ll get you set up. Participants will be able to buy reports for $150 compared to the non-participant price of $595. Publication is scheduled for early August. With questions, contact Snyder, or GBA’s David Oliver.

 

Back to top of E-Bulletin


Learn Lending, Compliance, Management and More with Upcoming Webinars

Here’s an informative lineup of webinars coming up in the next couple of weeks. Here are some of the topics.

Check the full calendar here for dates, times and more programs. With questions, contact GBA’s ShaKeya Snipes, 404.420.2020.

 

Back to top of E-Bulletin


ABA Certificates: A 100 Year Tradition of Excellence

For more than 100 years, bankers have taken advantage of these certificate programs to prepare for careers in banking or to enhance the skills and knowledge they already possess. Certificates build the skills necessary for a specific position in the bank and can be taken entirely online as a certificate curriculum. The programs are continually reevaluated and refined to reflect the current needs of bankers in their jobs today and changes in the industry. Certificates are available in the following categories.

  • Business Banking and Commercial Lending

  • Compliance and Risk Management

  • Mortgage Lending

  • Retail Banking and Marketing

  • Wealth Management and Trust

  • Executive Education

See all the Certificate Programs here (select member option) With questions, contact GBA’s ShaKeya Snipes, 404.420.2020.

 

Back to top of E-Bulletin


Recruit, Retain and Develop the Best Bankers with GBA Career Solutions

 

GBA Job Bank - GBA will post open positions, free of charge, for GBA members. See the open positions in Georgia here. We will also post professional summaries for bank-job seekers on our Bankers Available page. To make the process easy and answer any questions, we've developed this Q & A. Please contact Katina Prokos, 404.420.2021.

 

GBA Strategic Partner BankTalentHQ - The central feature of BankTalentHQ is its national bank-job board. Other key benefits include: resume search access, regional and national reach for your open positions, frequent special offers and custom sales/coaching programs. Visit BankTalentHQ to learn more. See the open positions in Georgia here, or search regionally or nationally here.

 

GBA’s Career Paths for Bankers™ - GBA’s Career Paths for Bankers™ is the most unique, organized and easy-to-use career development resource available for bankers and banks. GBA’s pioneering career development resource is unlike any other in the banking industry. Click here to start mapping your banking career today.

 

Why do people choose careers in banking? Whatever their talents, interests and educational background, there is a career in banking for them. Here are few good reasons to share with folks you know.

 

Back to top of E-Bulletin


GBA Community Connections

We want to share all the good work GBA member banks, bankers, Associate Members and Bank Counsel Section members do to support their communities. Read all about the Community Connections our banks and members have below. Share your Community Connections by sending a brief paragraph and any photos of activities you have to us and we'll publish them at our earliest opportunity. Send information to Katina Prokos and David Oliver, or if your company would like to sponsor this content, let us know. Here's our latest installment:

 

Alma - Pineland Bank

On May 15, members of the bank’s Baxley branch delivered donuts to the Appling County Sheriff’s Office and the Baxley Police Department in appreciation of their service to the community.

Watkinsville - Oconee State Bank

The bank recently partnered with Extra Special People, Inc. and Java Joy to serve hot and iced coffee with Eno’s Baked chocolate chip cookies to employees at Piedmont Healthcare.

 

Back to top of E-Bulletin


Newsmakers

 

Aiken, SC - Security Federal Bank

Logan Spires is now retail banking manager at the bank’s South Side Aiken branch. David Harden has been promoted to retail banking manager at the bank’s Riverwood Branch in Evans, GA.

 

Alma - Pineland Bank

Sabrina Crews has been promoted to loan operations manager.

 

Alpharetta - Touchmark National Bank

Lynn Barron has joined the bank as Chief Financial Officer.

 

Atlanta - Georgia Primary Bank

President and CEO David Coxon was recently interviewed on 680 The Fan for Small Business Friday during the Buck and Kincade Show.

 

Cordele - Planters First Bank

President and CEO Steve Bridges will retire June 24. Upon Bridges' retirement, Mike Phillips will assume the role of bank CEO and Eli Tinsley will be promoted to bank president. Read more here.

 

Fernandina Beach, FL – First Port City Bank

Steve Penza has joined the bank as a government guaranteed lender.

 

Fitzgerald – Colony Bank

Lenny Bateman has been named Executive Vice President and Chief Credit Officer of Colony Bankcorp, Inc., the bank holding company for Colony Bank, effective June 1. Read more here.

 

Tucker - Tandem Bank

Kellie Pressnall has joined the bank as Chief Financial Officer.

 

Watkinsville - Oconee State Bank

Steve Filmer has been promoted to Senior Vice President Government Guaranteed Lending. Shannon Johnson has been promoted to Financial Center Manager of the bank’s Gwinnett Financial Center. Josh Gaskin has been promoted to Senior Personal Banker at the bank’s main office.

 

 

Spires

Harden

Crews

Bridges

Penza

 

 

Bateman

Filmer

Johnson

Gaskin

 

 

Read All About It: Send Us Your News

Please remember to include the Georgia Bankers Association on the list of recipients for announcements about promotions, new employees and special recognition your bank has received. We want to share your news with your colleagues across the state. Please forward your announcements and photos to GBA's David Oliver and Katina Prokos.

 
 

Back to top of E-Bulletin