May 27, 2022 

FDIC Quarterly Banking Profile

Loans, Deposits, Assets up for Georgia Banks in First Quarter

The 149 Georgia-based banks reported solid first quarter performance this year. In aggregate, deposits grew by 10.7%, loans grew by 5.6% and total assets were up by 9.5% compared to the same period in 2021. Combined, these banks earned $448.8 million during the quarter. Credit quality also remained strong, with noncurrent loans declining to just 0.46%. Some of the overall performance metrics showed contraction compared to the same quarter in 2021. Net interest margin was down by 4% to 3.1%, but that is better than the 2.4% national benchmark. And, return on equity, return on assets and capital ratios declined some, but were still at healthy levels and above the national benchmarks. For the 143 Georgia-based banks classified by FDIC as community banks, deposits were up 17.8%, loans up 6.4% and assets were up 15.1%. GBA’s analysis includes comparative performance of only the banks classified by FDIC as Georgia-headquartered banks at the end of first-quarter 2021. As of June 30, 2021, FDIC reported an additional 42 banks chartered in other states were doing business in Georgia. Those institutions reported holding an additional $230.6 billion of deposits in Georgia.

 

YTD Results

All Georgia Banks

3/31/2022

$ in 000s

Georgia Community Banks

3/31/2022

$ in 000s 

All U.S Banks

3/31/2022

$ in 000s

Number of institutions reporting

149

143

4,796

Total employees

17,317

8,662

2,088,152

Total assets

$147,836,470

$56,064,665

$23,973,339,415

Total deposits

$129,314,755

$50,203,877

$19,932,325,042

Total loans and leases

$95,379,703

$32,030,193

$11,356,780,646

Net income

$448,785

$138,791

$59,730,111

% of profitable institutions

92.00%

92.00%

94.00%

% of institutions with earnings gains

42.95%

41.96%

37.47%

Net interest margin

3.12%

3.30%

2.54%

Return on assets (ROA)

1.21%

1.00%

1.00%

Return on Equity (ROE)

12.12%

10.34%

10.39%

Noncurrent loans to loans

0.46%

0.52%

0.84%

Equity Capital to Assets

9.75%

9.28%

9.42%

Total Risk-Based Capital Ratio
(No Cblr Electors)*

13.79%

15.59%

15.04%

 

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Round One of Democracy Days Done, Two More Rounds Ahead

Most of the November General Election match-ups were settled when Georgians voted in this week’s primary election. At the top of the November ticket will be two of the most closely watched races in the state and nation, the U.S. Senate race pitting Incumbent Sen. Rev. Raphael Warnock (D) and challenger Herschel Walker (R) together, and the Governor’s race pitting incumbent Gov. Brian Kemp (R) and challenger Stacey Abrams (D) together. Some races are headed to the second round of voting in the runoff June 21. Among those are the Democrat nominee for Lt. Gov. pitting Kwanza Hall and Charlie Bailey together, and the Democrat nominee for Secretary of State pitting Bee Nguyen and Dee Dawkins-Haigler together. We’ll be analyzing the election results and preparing to work with those elected. Thanks to our members who are participating in the Democracy Days Project that encourages everyone to vote. In the primary this week, over 1.9 million votes were cast, a significant increase over the 2018 primary. Contact GBA’s Elizabeth Chandler or David Oliver for more information on the elections or the Democracy Days Project.

 

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More Georgia Bankers Honing their Craft at GSBLSU

Georgia has a strong contingent of bankers attending this year’s session of the Graduate School of Banking at LSU. This year’s session kicked off May 23 and runs through June 2. Georgia’s Trustee for the School, Ryan Earnest, First National Community Bank, Rome, and GBA’s Joe Brannen hosted a reception for the Georgia bankers Wednesday evening so they could spend some time out of class getting to know each other. We’ll keep you posted on honors, recognitions and graduates as the session progresses. To learn more about the Graduate School of Banking at LSU, click here.

 

 

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Cannon

Advocacy in Action

Dublin Exchange Club Gets Update on Georgia Banking

Business and community leaders in Laurens County got a good update on the banking industry Tuesday, as GBA’s Joe Brannen spoke to the Dublin Exchange Club as the guest of Jeff Cannon, market president for Citizens Bank of Laurens County. Brannen shared the latest facts and figures about banking in Laurens County, the statewide industry landscape and a look at the political and regulatory environment for banks and consumers. GBA often speaks to banker and business groups to share the story about banking beyond the headlines. Contact David Oliver, 404.520.6311, with questions.

 

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FDIC Considering Increased Assessment Rates

Acting FDIC Chairman Martin Gruenberg said this week that the agency in June will consider “options to amend [the 2020 Deposit Insurance Fund (DIF)] restoration plan, including increases to assessment rates.” The DIF fell by $102 million in the first quarter because of a decline in unrealized losses on securities in the DIF portfolio. That factor, coupled with increased industry-insured deposits, put the DIF reserve ratio at 1.23% as of March 31. The current approved plan to restore the fund ratio to the required 1.35% by 2028 did not anticipate increased assessments, but Gruenberg said market conditions and the surge of increased insured deposits coming out of the pandemic make revisiting the plan necessary. More details here.

 

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Leader Updates

Lending Officer Survey, Hotel Risk Summary, FDIC’s Read on Risk and Homebuilder Sentiment

Our series of regular email updates to CEOs, committee members and other key leaders continued this week. Topics included:

  • Fed Senior Lending Officer Survey – The Fed was out recently with its quarterly senior lending officer survey. Here’s a copy.

 

  • Hotels – We included some exclusive insight into hotel loan performance shared by Stewart Thigpen of GBA Associate Member Steve H. Powell & Company.

 

  • FDIC Risk Review – We shared the executive summary of key risk items on the FDIC’s radar for the year. Here’s a copy.

 

If you’d like more information about any of those topics, contact Joe Brannen, 404.420.2026.

 

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Cleghorn

Seeing Customers through Peaks and Valleys with Jake Cleghorn

Jake Cleghorn, chief lending officer at Altamaha Bank and Trust Company, once received a key piece of advice that has defined his work as a banker. “A mentor once told me, ‘You are going to see people on the best days of their life and the worst days of their life, on the richest days of their life and the poorest days of their life. It is how you treat them before, during and after those peaks and valleys that makes you a banker.’” Cleghorn experienced this with a young married couple who first visited his office 20 years ago because they were in over their head in vehicle debt. “They had an earnest desire to fix this, and we worked together to structure a plan. Since that time, I have financed both of them to start successful businesses, three homes and recently a vacation home. Watching them hold true to their word and maturing financially has been a driving force to what I want to do every day in community banking,” he said. Cleghorn is a member of GBA’s Agriculture Committee, and he shares details about his first work experience at the Cordele Farmer’s Market, his preference to go barefoot and more in the latest GBA Member Profile.

 

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Reminder

Call for Nominations for Group Representatives on Leadership GBA Board of Directors

We’re still taking nominations through June 17 for the Leadership GBA Board of Directors, which has three positions that will be open as of July 1. There is one vacancy each in GBA’s newly restructured geographical groups: North, Central, and South. The positions will be for a three-year term, July 1, 2022 - June 30, 2025. Click here to see the GBA map identifying which counties and towns these groups include. To be eligible to serve, nominees must be active supporters and participants in Leadership GBA-related efforts and events, such as the annual Leadership Conference (participation required), our Leadership Roundtables, BankPAC Golf Classic and Sporting Clays Shoot, GBA Legislative Forum and Reception and the Georgia Banking School. In addition, candidates must be aware of the responsibilities involved, have the approval of their CEO, and agree to attend the Leadership Conference. Nominations should be submitted by June 17. Board members are elected at the Leadership Conference, July 11-13, in Ponte Vedra. Click here for the nomination form. Contact GBA’s Kathy Friestad with questions.

 

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Join GBA Partner BankTalentHQ for an Upcoming Webinar on Micro-Internships June 15 @ 1 p.m.

Wait; what is a micro-internship and how can it help my bank? Join GBA partner BankTalentHQ on Wednesday, June 15, at 1 p.m. to learn more about micro-internships, get examples of how banks have used micro-interns, and ask questions about this unique program. Micro-interns can help you get more done now, while funneling talent into your employment pipeline. The program is designed to help you identify, engage, and hire early career professionals from great colleges and universities nationwide. Click here to register for the webinar, or for more information and FAQs about micro-internships, please click here.

 

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Stewart

Southern Cooking Show Host “Very Vera” to Speak at Women in Banking Conference

Vera Stewart is a Southern cooking show host, entrepreneur, caterer, mail order aficionado, cookbook author and mentor. She has juggled the work life balance for over 38 years. Also a wife, mother, grandmother and physical fitness enthusiast, Vera manages to get it all done. How does she do it? At our Women in Banking Conference, Aug. 11-12 at Chateau Elan Winery & Resort, Braselton, Vera will share how her passions in life combined with determination have made her the person she is today. After earning a Home Economics degree from the University of Georgia in 1974, Vera went from teaching high school to motherhood to catering to launching the VeryVera brand just 10 years later.  Then came the VeryVera Cooking Camp, which sells out yearly, the VeryVera Cooking Show, and the VeryVera Cookbook: Recipes from My Table. Throughout her career, Vera’s true passion is mentoring young people. Don’t miss this inspiring and entertaining story. Plus, Vera will be at our opening reception with copies of her cookbook for sale. Grab your spot today! Click here to see the event website, to register, and for hotel reservation information. Hurry, hotel rooms are going fast. Thank you to our conference sponsors: McNair, McLemore, Middlebrooks & Co.; Wipfli; Abram Armored; Carr, Riggs, Ingram; FHLB Atlanta; Mauldin & Jenkins; Southern Bank Equipment & ATMs; Starfield & Smith; Troutman Pepper; and Warren Averett CPAs & Advisors. Sponsorships are still available; click here for that info. Contact GBA’s Kathy Friestad with questions.

 

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New GBA Guide to Bank Record Retention is Now Online with Over 75 Recent Changes

Featuring Bank Record Retention Quick Notes©, by Carl Pry

 

The GBA is pleased to announce that the updated GBA Guide to Bank Record Retention, featuring Bank Record Retention Quick Notes©, by Carl Pry, is now available for purchase. It is designed to be a fast and easy-to-use reference for the most common types of records questions that bankers encounter in a completely online format. Please note we no longer have printed copies available for purchase.

 

This guide is intended to support the development of a complete and understandable record retention program at your bank. Record retention policies are required by regulators and important for your customers if their bank records are ever subpoenaed.

 

The Quick Notes© refer to federal or general industry practices in six broad topic areas: General; Deposits and Operations; Loans; Securities; Human Resources; and Tax. They also contain the available requirements of FinCEN, CFPB, OCC, NACHA, IRS, SEC, FDIC, FRB and other relevant state agencies.

 

Including over 75+ recent changes, the newly released edition is further streamlined to assist bankers at every level. Additions include new independent sections on both Trusts & Estates and Audit as well as numerous other relevant updates throughout the rest of this unique industry guidebook.

 

We hope that you will find this to be a valuable resource to help your bank. Please contact GBA’s Bo Brannen at bbrannen@gabankers.com, to place an order.

 

Pricing (does not include sales tax):

  • One user login - $125

  • 2-5 user logins - $495

  • 6-15 user logins - $1,250

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Compliance Alliance Question of the Week

 

Question: If the bank agrees to make an interim construction loan but the borrower has a takeout letter from another institution, is the bank required to send a permanent loan disclosure for informational purposes?

 

Answer: As set out in the CFPB guidance below, whether the bank has to provide the LE for the permanent portion depends on whether the bank "receives a consumer’s application (i.e., the six pieces of information identified in § 1026.2(a)(3)) for both the construction financing and the permanent financing":

 

“Applying all of these concepts together, as stated in Comment 17(c)(6)-3 to the TRID Rule, a creditor has the option to disclose a multiple-advance construction-permanent loan with:

  • One, combined Loan Estimate and one, combined Closing Disclosure; or

  • Two or more Loan Estimates for each phase and two or more Closing Disclosures for each phase (for example, one set for the construction financing as a whole and one set for the permanent financing). 

 

TILA-RESPA Integrated Disclosures for Construction Loans, p. 6: https://files.consumerfinance.gov/f/documents/cfpb_trid-separate-construction-loan-guide.pdf  

 

Click here to read more in the May Compliance Alliance Newsletter and visit www.compliancealliance.com for more helpful Q&A resources.

 

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GBA Partner Abrigo Recommends these 10 Banking Podcasts

An estimated 38% of Americans 12 and older listen to at least one podcast each month. Thankfully for bankers and other industry stakeholders, banking podcasts are plentiful, and the number of choices keeps growing! Some folks might find it daunting to weed through all the recommended lists on Apple Podcasts, Spotify, Google, or other platforms to find the best banking podcasts. Check out a recent blog post here from GBA Partners Abrigo to get a head start on finding some banking podcasts that might work for you.

 

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Webinars

Fair Lending, TRID and Leadership

Here’s a sampling of upcoming webinars.

See the full slate of upcoming webinars here.

 

 

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

 

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 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’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.

 

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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:

 

Dublin - Morris Bank

Middle Georgia State University received a pledge of $100,000 from Morris Bank to fund the new state-of-the-art nursing lab currently under construction on their Dublin Health Sciences campus. Read more here.

 

Eastman - Great Oaks Bank

In partnership with the Georgia Department of Natural Resources, Great Oaks Bank will host a Kids Fishing Rodeo on June 4 at the Stuckey’s Pavilion in Eastman. Learn more here.

 

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Newsmakers

 

Atlanta - Georgia Primary Bank

SVP and Director of Guaranteed Government Lending Sherry Martin been elected to the 2022 Buckhead Business Association’s Board of Directors. CEO and President David Coxon has been reelected to the 2022 Buckhead Business Association’s Board of Directors.

 

Athens - Classic City Bank

Garrett Clements has joined the bank as Vice President of Business Development.
 

Columbus - Synovus Bank

Heath Schondelmayer has been appointed as CEO of its West Central Georgia and East Alabama Division, effective June 1. Schondelmayer will continue to serve as Columbus market executive. Schondelmayer succeeds Mark Lane, who will retire May 31 after 32 years with Synovus, including 10 as a division CEO. Lane will remain on Synovus’ Columbus Advisory Board following his retirement.

 

Dublin - First Laurens Bank of Dublin and Dexter, a division of State Bank of Cochran

Bill Brown III has joined the First Laurens Bank team as a commercial banker.

 

Rome - Greater Community Bank

Rhonda Smith has been promoted to mortgage lending officer.

 

Savannah - First Chatham Bank

Jennifer Ausley has been promoted to the position of Banking Officer at First Effingham Bank in Rincon.

 

Thomaston - United Bank

Pete Garrett has been promoted to president of its Thomaston banking division.

 

Martin Coxon Schondelmayer Lane Clements

 

Brown Smith Ausley Garrett

 

 

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 Katina Prokos.

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