October 15, 2014

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5 Ways to Engage Younger Customers

According to Transamerica Financial SolutionsGroup, there are millions of adolescents who arepotential customers. How do you reach them,engage them, and get them in the door? Whilethere is no sure-fire way to win the youngergeneration over, there are some common threadsthat can help you engage future borrowers andsavers.

Social Media – The world today is consumed with social media. Potential customersare reading or posting on social media right now. People of all ages, shapes, sizes,and socioeconomic standing create, share, or exchange information and ideas everyday. If you aren’t part of that discussion, you are missing out on a huge opportunity toconnect and develop online relationships with your community.

Social media can be a natural extension of your marketing goals and help you roundout a complete marketing strategy. By engaging through social media, it will allowinformation about your financial institution to spread, help you show that you areexperts in your field, increase your “findability”, and may win you over a few newcustomers.

Online and Mobile Functionality – Current researchshows that millennials are not only tech-savvy butalso conscious about saving for their future.Millennials have faced more student loan debt,unemployment and poverty than other living agegroups, but in spite of this, they are optimistic. In aPew Research report, more than eight out of 10 saythey have enough money to lead the lives they wantor expect in the future1. Therefore, since mobile

banking is the second most important banking feature among 18-34 year old financialinstitution seekers2, young adults are driving the growth in both online and mobilebanking.

A financial institution that wants to connect with the younger generation needs toprovide the ease of completing all transactions, including lending, with just a fewkeystrokes. Your lending platform will benefit from being customizable as well aseasy, fast and simple for borrowers to understand, and mobile, such as that availablethrough InterLend® by Transamerica.

Education – Pre-adults are just starting a financial-based lifestyle and are looking forknowledge, guidance, and trust. They are trying to build a future, realizing newexpenses, and may not be sure how to handle it all. Producing fun tutorials aboutlending, budgeting, saving, banking, and protection products are beneficial. Accordingto a LIMRA study, almost 3 in 4 middle-market households have an interest in learningmore about savings options and strategies, and 1 in 4 are very interested.3 The futuregenerations need guidance, and as an expert in saving, lending and other financialproducts, you are a great resource. Click here to read more ways to engage youngercustomers!

Know Before You Owe: Proposed Updates to TILA-RESPA FinalRuleCFPB reports nearly a year ago, they issued the TILA-RESPA Integrated DisclosureRule commonly known as Know Before You Owe. They recently issued a proposal tomodify and make technical amendments to this rule. The rule introduced new, easier-to-use mortgage disclosure forms that clearly lay out the terms of a mortgage forconsumers. According to the CFPB, the new Loan

Upcoming Events

Community BankLeadership Academy

Fall SessionOctober 22

Macon

4th Annual SEFinancial WorkplaceLaw & Compliance

Conference October 23-24

The Georgian Club

Consumer LendingSchool

October 27-31Atlanta

CBA Resources

2014 Georgia Financial Directory

Career Center

FDIC RegulatoryCalendar

Salary Survey

Estimate and Closing Disclosure mortgage forms willreplace the existing federal disclosures and helpconsumers understand their options, choose the dealthat’s best for them, and avoid costly surprises at theclosing table. Click here to view the CFPB announcementregarding the proposed changes.

U.S to Take Tougher Stance on New DebtRule, Tarullo SaysAmerican Banker reports a U.S. rule forcinglarge banks to hold a required level of debt to facilitatea possible resolution by the government will likely betougher than an international framework on lossabsorbency, Federal Reserve Board Gov. DanielTarullo said last week. The Financial Stability Board isexpected soon to unveil a plan for globally activebanks to hold a minimum amount of unsecured debtthat could be converted into equity in the wind-down and recapitalization of a failedcompany. The new framework would institute a so-called "total loss absorbencycapacity" requirement.

But Tarullo said the U.S. version of the rule will likely be stronger than the FSB plan,at least in terms of the types of debt banks can use to fulfill the requirement. He alsoreiterated that new capital surcharges for globally U.S. banks could ultimately behigher than the range set by the international Basel Committee. "What we will do onTLAC will probably be a little bit more rigorous with respect to some of the qualifyinginstruments," Tarullo said in remarks to a Washington event sponsored by the BrettonWoods Committee.

Loss absorbency rules are seen as a key ingredient to making the resolution of asystemically important firm a reality. U.S. regulators have discussed imposingminimum requirements for long-term debt as the Federal Deposit Insurance Corp. hasdeveloped a new resolution facility for giant firms mandated by the Dodd-Frank Act.

The FDIC has focused on a strategy known as "single point of entry", in which a failedparent is extinguished, its subsidiaries are moved to a temporary bridge and a newfirm results. The successor company is recapitalized by converting the claims of theformer creditors into equity. Prior to the failure, however, companies must hold enoughcapital and convertible debt that would be sufficient to launch the new enterprise. Clickhere for the full article.

What Banks Get Wrong in Branch TransformationsFundamental flaws have emerged in financial institutions' efforts to make over theirbranches. For example: Branch employees aren'tbeing taught how to use the newer equipment, sothey can't demonstrate its merits to patrons, saidRaja Bose, vice president of branchtransformation and advisory services at the ATMmaker Diebold.

One of Diebold's clients — a top-20 bank —converted to image-enabled deposits and thendiscovered that 81% of its employees did not know how to make an envelope-freedeposit. Many did not even know the feature existed.

And it's a deficiency shared by banks across the country looking to solve a hardproblem: how to drive simpler transactions to self-service machines within the branchto make the channel more efficient while freeing up bankers to focus on sales andsupport. Training employees on new self-service equipment, however, can be trickyfor branch employees unwilling to promote something they perceive as a job killer.Tellers protested Bank of America's video teller machines called Teller Assist, forexample.

That's why banks are urged to first motivate and give their employees incentives tounderstand the value in self-service before opening up a high-tech branch andexpecting automatic adoption of something consumers may not understand without aguide. Getting staff on board with the changes will require ongoing conversations, saidDave Martin, executive vice president and chief development officer at FinancialSupermarkets Inc. Click here to read the full article.

ICBA to FHFA: Abandon Proposed Single GSE SecurityThe Federal Housing Finance Agency was urged not to create a single mortgage-backed-security structure for Fannie Mae and Freddie Mac. The FHFA is proposing anew “agency” security to address the trading difference between Fannie and Freddie

securities.

In a letter to the FHFA, ICBA said the proposal is a diversion of the government-sponsored enterprises’ resources and would risk orphaning the GSEs’ legacysecurities and harming the origination market. ICBA recommended that the FHFAfocus GSE resources on completing Common Securitization Platform and rebuildingcapital.

Why Banks Will Beat Mortgage Firms in Home-Equity GrowthAmerican Banker reports independent mortgage originatorswant to return to home equity lending, but a variety offactors are likely to shut them out for an extended period.

While that is good news for their bank rivals, it is clearlybad news for the independent, nonbank players as theyseek alternative sources of income. The refinancebusiness has diminished as expected, and the homepurchase business has not stepped up to replace it. Homeequity lending once again looks to be the hot growth areafor real estate finance, though that could take some time to fully develop.

"It looks promising," said Keith Gumbinger, the vice president of HSH.com in ForestCity, Calif., but, "there are hurdles for getting back into that market easily."

New consumer protection rules and varying state requirements present specialburdens for the mortgage firms. Banks have certain advantages over them, too, suchas greater flexibility in funding and the ability to hold mortgages on balance sheet tomanage interest rate risk. Moreover, even the possibility of partnerships betweenmortgage firms and banks is challenged by the lack of standardized products andconcerns about risk sharing.

Become a Sponsor for the Fall Sporting Clay Shoot!Only a couple of weeks away, CBA's LeadershipDivision will host its Fall Sporting ClayShoot on Thursday, October 30th at the SpringBank Sporting Club in BarnsleyGardens, Adairsville. CBA thanks all of our initialsponsors for the event! Contact Lindsay Greene tolearn how you can spotlight your bank/companythrough other sponsorship opportunities. Click here formore information on the event or contact Peake Wilson. Let's support our LeadershipDivision in raising funds for PAC/PR. CBA maintains the ONLY state PAC workingexclusively for Georgia’s community banks. Register today!

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Have You Completed Your Annual Bank Secrecy Act (BSA)Training? If you answered “NO”, don’t miss the CBA Compliance Program IV!

Held in Five Convenient Locations

Tuesday, December 2 - Rome Wednesday, December 3 - Duluth

Tuesday, December 9 - Macon Wednesday, December 10 - AlbanyThursday, December 11 - Brunswick

Recent Congressional focus and well-publicized Bank Secrecy Act (BSA) enforcementactions and fines continue to support a climate where BSA compliance remains ofparamount importance to all financial institutions. Treasury continues to rely onfinancial institutions to serve as the "front-line gatekeepers" for law enforcementefforts to safeguard the U.S. financial system from the abuses of financial crimes,including money laundering and terrorist financing. The federal regulatory agenciescontinue to rely on financial institutions to take "every reasonable step" to identify,minimize, and manage any risks that illicit financial activity may pose to the individualinstitution and to the industry. Ongoing initiatives by the Financial CrimesEnforcement Network (FinCEN) and the continued expansions in the federalexamination procedures reinforce the need to have a strong BSA program at yourinstitution. This full-day seminar covers in detail the major issues and opportunities inthe ever-expanding environment of the Bank Secrecy Act. This seminar highlights the increased federal expectations for BSA. Topics to becovered:

"Beneficial Ownership", Customer/Member Due Diligence, and the "New Rules"(Released in August 2014)Money Services Businesses (MSB), Third-Party Payment Processors (TPPP),"marijuana-related" businesses, and Other "High-Risk" ClientsSuspicious Activity Reporting- Latest Trends and RulingsCurrency Transaction Reporting - Latest Trends and RulingsRevised Examination Procedures - Latest UpdatesOFAC ComplianceMoney Laundering Techniques and Suspicious Transactions

To register, click here or contact the CBA Education Departmentat education@cbaofga.com.

Register Today for the Community Bank Leadership Academy!Empowering the next generation of community bank leaderswith the knowledge and skills necessary to lead a communitybank is extremely important to the sustainability of Georgiacommunity banking. The CBA Leadership Division, under thedirection of Rhodes McLanahan, Executive Vice President,

Chief Operating Officer, First American Bank & Trust, Athens, and Chairman ofthe 2013-2014 CBA Leadership Division Board of Directors, envisioned a new place ofstudy for Georgia community bank leaders to come together to enhance their technicaland leadership skills. Please make plans to join CBA on Wednesday, October 22,2014, 9:30 a.m. - 2:30 p.m., at the Idle Hour Country Club in Macon for the 2014 Fallsession Community Bank Leadership Academy (CBLA). To register, clickhere, and for assistance, please contact Jodi Swilley, CBA Director of Education andProfessional Development.

Featured Speakers

Thank You to Our Lunch Sponsor

4th Annual Southeast Financial Workplace Law & ComplianceConferenceThursday - Friday, October 23-24, 2014 | The Georgian Club, Atlanta

Don’t miss this opportunity to register for thisyear’s 1½ day conference. The industry expertsparticipating in the conference will focus onStrategic Human Resources (HR) in the 21stCentury. The Society of Human Resource

Management and Ray Stanford, Founder & Principal, SIO Law Groupand the Southeast Financial Consortium (SEFICON) will co-sponsor this specialfinancial workplace conference.

Now, more than ever, managing change in the workplace requires a collaborativeexecutive management team developing a strategic HR plan which targets boundlesscompliance requirements, tomorrow’s technology, new social relationships, riskmanagement controls and people. Come join industry experts as they engage theaudience in a variety of hot topics such as risk management, culture planning, thenew business judgment rule, Obamacare, culture integration, threat response, today’sdiversity, and change management, and much more.

The CBA invites you to make plans now to attend this informative and popular 1½ dayconference designed specifically for HR professionals and other executive teammembers. Register Today! Seating Limited! Click here to view brochure. Toregister,click here or contact Jodi Swilley.

THANK YOU TO OUR SPONSORS!

Target Top Decision Makers in 2015!CBA offers several advertising options to help you reach key decision makers inGeorgia's community banking market. Here's your opportunity to enjoy maximumexposure and multiple run discounts designed to fit any budget. Advertise in theweekly eNewsletter, CBA Today, the quarterly magazine, Georgia CommunitiesFirst, on the website, in the Georgia FinancialInstitutions Directory, or all of the above. Distributionfor the weekly eNewsletter is over 4,000 andgrowing. Georgia Communities First is CBA's quarterlymagazine that is mailed to CEOs, Leadership DivisionRepresentatives, and Associate Membercompanies. There's a variety of choices to fit anybudget! Learn more about our 2015 advertising options. For questions or to secureyour selection, contact Lindsay Greene at (770) 541-0376.

PrivatePlus Mortgage, a division of Private Bank of Buckhead& DecaturPeggy Burke has joined the bank as a Vice President andMortgage Banker.

Community & Southern Bank - AtlantaCongratulations to Andy Walker, Market President, who recentlyannounced his retirement from the banking industry. A retirementcelebration (TBA) will be held in honor of Walker’s service to thecommunity.

Community & Southern Bank - AtlantaDavid Gregg has been named Market President over the CSBteams located in Dalton and Chatsworth.

State Bank & Trust - MaconCongratulations to Thomas Callicutt Jr., Executive VicePresident and CFO, who intends to retire, effective September 30,2015.

State Bank & Trust - MaconSheila Ray was named Executive Vice President and CFO, termeffective January 1, 2015.

Attend a Complimentary Informational Seminar on the New CBAEasy(k)!CBA and Midwestern Securities Trading Company, LLC (MSTC) will hold informationalseminars throughout Georgia to educate CBA member banks on the CBA Easy(k) inNovember. The dates and location for these complimentary meetings are as follows:

Thursday, November 6th - Brickyard Golf Club, Macon - 9:30 - 11:00a.m., 6000 Wesleyan Drive North, Macon, 31210Thursday, November 6th - CBA of Georgia, Julian Hester Training Center,Atlanta - 1:45 - 3:15 p.m., 1900 The Exchange, Suite 600, Atlanta, 30339Friday, November 7th - Hilton Garden Inn, Tifton - 9:30 - 11:00 a.m., 201 BooDrive, Tifton, 31793

Preregistration is required. To register, please call or emailyour name, bank, and number attending to Lindsay Greene at(770) 541-0376 or email lindsay@cbaofga.com.

FASB's CECL Model: How to Prepare NowBankers are anxiously awaiting the final guidance from the Financial AccountingStandard Board (FASB) on their current expected credit loss (CECL) model. Leadingindustry experts have recognized that the changes will likely result in a 30-50%increase in reserve levels. How can banks start preparingnow? Download this whitepaper to learn more.

Send Us Your News Please remember to include the Community Bankers Association of Georgia on thelist of recipients for announcements about promotions, new employees, specialrecognition your bank has received and/or events for your community. We would loveto share your news with your colleagues across the state! Please forward yourannouncements and photos to Shera Banks or Lindsay Greene.

OCTOBER 2014

Community Bank Leadership Academy - Fall SessionWednesday, October 22, 2014 – Idle Hour Country Club, Macon

4th Annual SE Financial Workplace Law & Compliance Conference (1 ½ days)Thursday-Friday, October 23-24, 2014 – The Georgian Club, Atlanta

Consumer Lending School (4 ½ days)Monday-Friday, October 27-31, 2014 – JHTC at CBA Headquarters, Atlanta

FDIC Consumer Protection Workshop (1 ½ days)Wednesday- Thursday, October 29-30, 2014 – Idle Hour Country Club, Macon

NOVEMBER 2014

Consumer and Commercial Loan DocumentationTuesday-Wednesday, November 4-5, 2014 – JHTC at CBA Headquarters, Atlanta

Banker Regulatory ForumThursday, November 6, 2014 - JHTC at CBA Headquarters, Atlanta

DECEMBER 2014

Creative Collections (NEW ½ day seminar)Tuesday, December 2, 2014 – JHTC at CBA Headquarters, Atlanta

Allowance for Loan and Lease Losses (ALLL)(New)Thursday, December 4, 2014 – JHTC at CBA Headquarters

Compliance Program IV: Topic: Anti-Money Laundering/Bank Secrecy ActHeld in Five Convenient Cities

Tuesday, December 2, 2014 - RomeWednesday, December 3, 2014 - Duluth

Tuesday, December 9, 2014 - MaconWednesday, December10, 2014 - Albany

Thursday, December 11, 2014 – Brunswick (New Location)

WATCH FOR 2015 EDUCATIONAL OPPORTUNITIESFor assistance, please contact the CBA Education Department

at education@cbaofga.com.

We are community banking.

1900 The Exchange, Suite 600, Atlanta, GA 30339Phone: (770) 541-4490 / (800) 648-8215Fax: (770) 541- 4496 • www.cbaofga.com