annual report - Department of Banking and Finance

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State of Georgia 

Department of Banking and Finance 

ANNUAL REPORT 

For Year Ending December 31, 2008 

Sonny Perdue, III 

Governor 

Rob Braswell, CEM 

Commissioner

Ta b l e o f C o n t e n t s 

Message from the Commissioner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 

Organizational Profile and Staff Contact Information . . . . . . . . . . . . . . . . . . . . . . 6 

Structure of the Department and Division Contact Information . . . . . . . . . . . . . . . . . 6 

Supervisory Division Summary of Activities for 2008 . . . . . . . . . . . . . . . . . . . . . . . 12 

State‐Chartered Banking Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 

State‐Chartered Credit Union Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 

Other Supervised/Registered Financial Institutions . . . . . . . . . . . . . . . . . . . . . . . . 14 

State‐Chartered Bank Financial Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 

State‐Chartered Credit Union Financial Summary . . . . . . . . . . . . . . . . . . . . . . . . . . 17 

Division Staff—Main Office & District Offices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 

Examination Districts and Work Areas (Map) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 

NonDepository Financial Institutions Division Summary of Activities for 2008 . . . . . 23 

Mortgage Licensee and Registrant Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 

Money Service Businesses (MSB) Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 

Division Staff—Mortgage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 

Division Staff—Money Service Businesses (MSB) . . . . . . . . . . . . . . . . . . . . . . . . . . 27 

Legislative Highlights for 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 

Administrative Division Summary of Activities for 2008 . . . . . . . . . . . . . . . . . . . . . 30 

Fiscal Year Receipts and Disbursements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 

Division Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 

2008 Highlights from the Director of Communications and Planning . . . . . . . . . . . . 33 

Summary of Activities for Statechartered Financial Institutions and Other Entities . . 

Regulated by, Licensed by, or Registered with the Department of Banking and 

Finance During 2008 

34

MESSAGE FROM THE COMMISSIONER 

Welcome to the Department of Banking & Finance’s 2008 Annual Report. This past 

year was definitely a dynamic year for the Department and the financial industry, 

as we both tried to meet the challenges presented by the turmoil in the financial 

markets and the downturn in the housing market. However, in times like these I 

think it is beneficial to remember that there were many successes and as you go 

through this report, I encourage you to review the pages in which the Deputy 

Commissioners and the Director for Communications & Planning have listed the 

2008 highlights and activities for their respective areas of responsibility. 

Before going further, I also want to take this opportunity to thank former Deputy 

ROB BRASWELL 

Commissioner for Supervision, Grace Lurry, for 34 years of excellent and dedicated Commissioner 

service to this Department and the citizens of Georgia. Grace, who retired 

September 1, 2008, had a distinguished career with the Department and will be missed in every respect. I 

am pleased to announce Kevin Hagler is the Department’s new Deputy Commissioner for Supervision and 

brings a wealth of knowledge and first hand experience with him into this position. Kevin most recently 

served as the District Director of the Department’s Northwest District. 

Regarding the entities we regulate, 2008 became a more challenging year with each passing month. As the 

downturn in the housing market accelerated, the impact was felt throughout the financial industry and has 

had a significant impact on many of our banks and mortgage licensees. Financial institutions with 

concentrations in construction and acquisition and development lending were hit the hardest, and 

unfortunately, led to the Department having to close five banks in 2008 by taking them into receivership. 

Although the volume of new bank activity decreased significantly this past year, nine banks that were in the 

“pipeline” from 2007 opened in 2008. However, a better indicator of the challenging financial environment 

is the fact that only two applications for new banks were accepted in 2008. 

Despite the turmoil in the financial environment abroad, the operating performance of most state chartered 

credit unions in 2008 could best be described as stable. It was noted that some credit unions with 

employment‐based common bonds continue to face strategic challenges as their sponsors face competitive 

and industry related pressures. It also should be noted that our Department continued to have strong 

representation on national credit union issues since George Reynolds, the Department’s Senior Deputy 

Commissioner, is serving as Chairman of the National Association of State Credit Union Supervisors 

(NASCUS) until his term expires in August 2009. 

The mortgage side of the Non‐Depository Financial Institutions (NDFI) Division remained vigilant in 

combating mortgage fraud in Georgia. The number of enforcement actions, including Cease and Desist 

Orders, Consent Orders and Revocations remained very high in 2008 due to the effectiveness of the risk‐ 

focused program. In fact, the Mortgage Examiners Group was presented the "Outstanding Regulatory Unit 

Award" at the February 2009 Georgia Real Estate Fraud Prevention and Awareness Coalition's Annual 

Conference. The award was presented in recognition of the examiners' efforts in investigating and 

2008 Annual Report Page 4

documenting mortgage fraud. The Department routinely collaborates with many others (law enforcement 

agencies, the Office of the Attorney General, local prosecutors, the Georgia Real Estate Fraud Prevention & 

Awareness Coalition, concerned lenders, etc. to name a few) in an effort to crack down on mortgage fraud in 

Georgia. I want to take this opportunity to thank our partners for their efforts in protecting the citizens of 

Georgia. 

The Department also remained very active in the oversight of the money service businesses (MSBs) as 

reflected by performing over 230 examinations. The MSB side of the NDFI Division ensures that these 

entities are properly licensed and complying with State law, the Bank Secrecy Act, and the requirements of 

the Office of Foreign Assets Control. 

As you will see in the Legislative Highlights section of this report, the Department did not sponsor a 

“Housekeeping Bill” in 2008, but instead focused its attention on a bill to permit Georgia licensed mortgage 

lenders and mortgage brokers to participate in a uniform nationwide mortgage licensing system. In 

addition, the Department updated many of its rules via two separate rulemaking processes. 

Lastly, I want to thank you for providing feedback to us regarding our customer service effectiveness. We 

are constantly striving to exceed your expectations and to do our part in making Georgia the best managed 

state in the nation. Several of the initiatives highlighted throughout this report were developed due to the 

invaluable feedback that you provided; therefore, please keep your comments and suggestions coming. 

As always, it remains our goal to be the best financial services industry regulator in the country. Thank you 

for your support of these efforts. 

Sincerely, 

Rob Braswell 

Rob Braswell, CEM 

Commissioner 

MESSAGE FROM THE COMMISSIONER 

“Safeguarding Georgia’s Financial Services” 


The Department of Banking and Finance (Department) is the state agency 

that regulates and examines banks, credit unions, and trust companies 

chartered by the State of Georgia. The Department also has regulatory 

and/or licensing authority over mortgage brokers, lenders, and 

processors; money service businesses; international banking 

organizations, and bank holding companies conducting business in 

Georgia. 

Financial institutions and financial service providers are subject to strong 

statutory and regulatory requirements at both the federal and state levels. 

We share regulatory responsibility for Georgia state‐chartered financial 

institutions with our federal counterparts (FDIC, FRB, NCUA). We are the 

sole regulatory agency for mortgage lenders and brokers and money 

service businesses (with the exception of FINCEN and the IRS, which 

supervise the Bank Secrecy Act, USA PATRIOT Act and other Anti‐Money‐ 

Laundering efforts). 

STRUCTURE OF THE DEPARTMENT AND DIVISION CONTACT INFORMATION 

GEORGE REYNOLDS 

Senior Deputy 

Commissioner 

ORGANIZATIONAL PROFILE AND 

STAFF CONTACT INFORMATION 

ACRONYMS: 

CEM ‐ Certified Examinations 

Manager 

CEIC ‐ Certified Examiner‐In‐Charge 

CFE ‐ Certified Financial Examiner or 

Certified Fraud Examiner 

CPA ‐ Certified Public Accountant 

CSCUES ‐ Certified State Credit 

Union Examination Supervisor 

CTE ‐ Certified Trust Examiner 

Functionally, the Department reports directly to the State’s Chief Financial Officer 

and the Governor. The Department is headed by a Commissioner who is appointed 

by the Governor to serve a four‐year term. Commissioner Rob Braswell is assisted 

by Senior Deputy Commissioner George Reynolds. 

The Department’s operations are divided along functional lines: Supervision, 

Administration, Non‐Depository Financial Institutions, and Legal and Consumer 

Affairs. These divisions are headed by Deputy Commissioners. 

The Director of Communication and Planning reports directly to Senior Deputy 

Commissioner Reynolds and is primarily responsible for: website administration; 

coordinating e‐commerce initiatives; external publications; examination survey 

report compilation/analysis; coordinating employee survey processes; overseeing/coordinating all 

business resumption and emergency preparedness procedures and plans; coordinating strategic and 

business planning; coordinating accreditation processes for the Department’s bank and credit union 

supervisory programs; and coordinating any marketing efforts of the Department. 

NAME TITLE PHONE # 

Rob Braswell, CEM Commissioner 770‐986‐1628 

George Reynolds, CPA/CEM/CSCUES Senior Deputy Commissioner 770‐986‐1629 

Carol Webb, CEM Director of Communications and Planning 770‐986‐1386 

Susan Brown Office Manager 770‐986‐1621 




SUPERVISORY DIVISION: The Supervisory Division is responsible for the supervision, regulation, 

and examination of depository financial institutions and their affiliated companies that fall under the 

regulatory authority of the Department. Such institutions include state‐chartered banks, trust companies 

and credit unions; bank holding companies; and international banking organizations. 

The Corporate Section of the Division is responsible for financial institution application and registration 

processing. The Supervisory Division is headed by Deputy Commissioner for Supervision Kevin Hagler. 

Main Office Staff 


Kevin Hagler, CEM Deputy Commissioner for Supervision 770‐986‐1646 

Janet Blackmon, CEM Director for Supervision 770‐986‐1627 

Lori Godfrey, CEM/CFE Supervisory Manager (Districts 1 & 5) 770‐986‐1636 

Mike Killeen, CEM/CSCUES Supervisory Manager (Districts 2 & 8) 770‐986‐5049 

Laura Millen, CEM Supervisory Manager (Districts 3 & 4), Trust 770‐986‐1643 

Murali Ramachandran, CEM Corporate Manager 770‐986‐1645 

Merian Johnson Administrative Assistant 770‐986‐1658 

Susan Weissinger Administrative Assistant 770‐986‐1659 

District Work Area Staff 

District 1—Northwest 

NAME TITLE 

Melissa Sneed, CEM District Director 

Daisy Mitchell, CEM Supervisory Examiner 

Rich Parker, CEIC Supervisory Examiner 

Ira Goolsby, CEIC Senior Financial Examiner 

Vic Greene, CEIC Financial Examiner 

Larry Moody, CEIC Financial Examiner 

Mark Pressler, CEIC Financial Examiner 

Robbie Williams, CEIC Financial Examiner 

Aline De Oliveira Senior Assistant Financial Examiner 

Ryan Baker Assistant Financial Examiner 

Aaron Fisher Assistant Financial Examiner 




District 2—Northeast 

NAME TITLE 

Heather Sartain, CEM District Director 

Bill Warnock, CEM Supervisory Examiner 

Harold Carney, CEM Senior Financial Examiner 

Pam Keane, CEIC Financial Examiner 

Justin McElheney Financial Examiner 

Mathew Robinson, CEIC Senior Assistant Financial Examiner 

John Cowart Assistant Financial Examiner 

Brett Poole Assistant Financial Examiner 

Cacey Rogers Assistant Financial Examiner 

Victoria Williams Assistant Financial Examiner 

LaTosha Rose Administrative Assistant 

District 3—Central 

NAME TITLE 

Lori Binford, CEM District Director 

Dennis McNeer, CEM Supervisory Examiner 

Gloria Jack, CEIC Senior Financial Examiner 

Derek Thompson, CEIC Senior Financial Examiner 

Brittany Bohannon, CEIC Financial Examiner 

Shannon Boyt, CEIC Financial Examiner 

George Campbell, CEIC Financial Examiner 

Candice Jones, CEIC Financial Examiner 

Kevin Smitko, CEIC Financial Examiner 

Chad Taylor Senior Assistant Financial Examiner 

Deborah Latimer Administrative Assistant 


District 4—Southeast 

NAME TITLE 

Gary Ford, CEM/CSCUES District Director 

Michael Hooks, CPA/CEM Supervisory Examiner 

Janet Bryan, CEIC Senior Financial Examiner 

Mark Smith, CEIC/CSCUES Senior Financial Examiner 

Bob Herndon, CEIC Financial Examiner 

Presley Norris Financial Examiner 

Kimberly Nobles Senior Assistant Financial Examiner 

Emily Fennell Administrative Assistant 

Savannah Office 

David Widincamp, CEM/CSCUES Supervisory Examiner 

Michael Bryan, CEIC Senior Financial Examiner 

Patrick Brahana, CEIC Financial Examiner 

William (Trey) Craig, III Assistant Financial Examiner 

District 5—Southwest 

NAME TITLE 

Jane Stage, CEM District Director 

Virginia Riddick, CEM Supervisory Examiner 

Terry Tucker, CEIC Senior Financial Examiner 

James Johnson, CEIC Financial Examiner 

Sue Ann Tucker, CEIC Financial Examiner 

Rebecca Clark Senior Assistant Financial Examiner 

Ivan Crocker Senior Assistant Financial Examiner 

Jim Mixon Senior Assistant Financial Examiner 

Valdosta Office 



Joyce Jones, CEM/CSCUES Supervisory Examiner 

Kay Tillman Green, CEIC/CSCUES Senior Financial Examiner 

John Sutphin, III, CEIC/CSCUES Senior Financial Examiner 




District 8—Large Institutions 


Steve Pleger, CEM District Director 770‐986‐1387 

Amy Johnson, CEIC/CTE Supervisory Examiner 770‐986‐1388 

Mike Anderson Large Institutions Specialist 770‐986‐5044 

Susan Andrews Senior Financial Examiner 770‐986‐5048 

Ernie Coats, CEIC Capital Markets Specialist 770‐986‐1390 

Ayanna DeRamus IT Specialist 770‐986‐1389 

John Sonnier, CPA/CEIC Senior Financial Examiner 770‐986‐5047 

Evans Yancy Credit Specialist 770‐986‐1391 

NONDEPOSITORY FINANCIAL INSTITUTIONS DIVISION: This Division is responsible for 

the licensing and supervision of mortgage lenders, brokers, and processors who are licensees and 

registrants under the law. The Division is also responsible for the licensing and supervision of check 

cashers, sale of check companies and money transmitters ‐ collectively referred to as Money Services 

Businesses (MSBs). The Division is headed by Deputy Commissioner for Non‐Depository Financial 

Institutions Rod Carnes. 


Rod Carnes, CFE Deputy Commissioner for Non‐Depository Financial Institutions 770‐986‐1371 

Melinda Kinard, CEM Director of Money Service Businesses and Mortgage Licensing 770‐986‐1649 

Sandra Sheley, CEM Director of Mortgage Supervision 770‐986‐5036 

Felicia Faison‐Holmes Non‐Depository Financial Institutions Division Attorney 770‐986‐1648 

Larry Shelley, CEM Supervisory Manager ‐ Mortgage Regulation 770‐986‐1372 

Joel Byers, CFE Supervisory Manager ‐ MSBs 770‐986‐1656 

Diane Hester, CFE Supervisory Examiner ‐ Mortgage 770‐986‐1312 

Betty Thomas, CFE Senior Financial Examiner ‐ Mortgage 770‐986‐1316 

Bob Bauguss, CFE Financial Examiner ‐ Mortgage 770‐986‐5043 

Andy Reid, CFE Financial Examiner ‐ Mortgage 770‐986‐1310 

Phillip Valenzuela, CFE Financial Examiner ‐ Mortgage 770‐986‐1620 

Peter Lisowski, CFE Financial Examiner ‐ MSBs 770‐986‐1315 

Fernando Ornelas, CFE Senior Assistant Financial Examiner ‐ Mortgage 770‐986‐1313 

Rhonda Sampson, CFE Senior Assistant Financial Examiner ‐ Mortgage 770‐986‐1311 

Amanda Turner Senior Assistant Financial Examiner ‐ Mortgage 770‐986‐2811 

Janet Anderson Financial Examiner ‐ Review 770‐986‐1268 

Deborah Long Assistant Financial Examiner ‐ Review 770‐986‐2810 

Teresa Koeppel, CFE Administrative Examiner ‐ MSBs 770‐986‐1639 

Susan Nelson Applications Analyst ‐ MSBs 770‐986‐1652 

Irene Harper Applications Analyst ‐ Mortgage 770‐986‐5027 

Brenda Harrell Secretary III 770‐986‐5035 

Gloria Smith Secretary/Receptionist 770‐986‐1136 




LEGAL AND CONSUMER AFFAIRS DIVISION: The Legal and Consumer Affairs Division is 

responsible for providing legal advice and legislative drafting support for the Commissioner and staff. The 

Consumer Affairs Specialist provides consumers with appropriate contacts and referrals to assist 

consumers with their concerns. The Division is headed by Deputy Commissioner for Legal and Consumer 

Affairs Judy Newberry. 


Judy Newberry Deputy Commissioner for Legal and Consumer Affairs 770‐986‐1650 

Mark Simpson Consumer Affairs Specialist 770‐986‐2809 

ADMINISTRATIVE DIVISION: The Administrative Division is responsible for human resource 

management, budgeting, accounting services, information systems, training activities, property 

management, and records management. The Division is headed by Deputy Commissioner for Administration 

Tracy Whitesides. 


Tracy Whitesides, CPA, CEM Deputy Commissioner for Administration 770‐986‐1640 

Jeanetta Alexander Accountant 770‐986‐1632 

Denise Brown Director of IT 770‐986‐1651 

Vicki Brantley, CEM Training Manager 770‐986‐1644 

Charlene Haynie Senior Payroll Supervisor 770‐986‐5038 

Marilyn Harris, CEIC Personnel Officer 770‐986‐1638 

Felicia Hedgebeth Network and Information Security Administrator 770‐986‐1373 

Reneé Martin Accounting Director I 770‐986‐1641 

Carol Hyde IS Database Integrator 770‐986‐1383 

Susan Brown Office Manager 770‐986‐1621 

Kaushik Mehta Support Services Officer 770‐986‐1622 

Sheila Ball Administrative Secretary 770‐986‐1633 

Wanda Williams Administrative Secretary 770‐986‐1633 


The Supervisory Division of the Department of Banking and Finance regulates 

and examines banks, credit unions, and trust companies chartered by the State 

of Georgia. The Department also has regulatory and/or licensing authority 

over subsidiaries of state‐chartered banks, bank holding companies conducting 

business in Georgia and international banking organizations. We share 

regulatory responsibility for Georgia state‐chartered financial institutions with 

our federal counterparts (FDIC, FRB, and NCUA). Major activities and 

challenges during the year included: 

• The Department took possession of five banks pursuant to the Official Code 

of Georgia, Section 7‐1‐150(a) which authorizes the Department in its 

discretion to take possession of the business and property of any state 

chartered financial institution whenever such financial institution is either 

insolvent or operating in an unsafe or unsound condition. 

• The depositors of the five banks closed in 2008 were largely unaffected, as acquiring institutions 

stepped forward to service those customers. 

• During 2008, 115 safety and soundness examinations of banks and 51 safety and soundness 

examinations of credit unions were performed by the Department. 

• The results of the 2008 Annual Customer Satisfaction Survey continued to be positive, with the 

Supervisory Division receiving a 94% rating for overall quality of services provided to regulated entities. 

Summary of Application Activity: 

SUPERVISORY DIVISION 

SUMMARY OF ACTIVITIES FOR 2008 

KEVIN HAGLER 

Deputy Commissioner for 

Supervision 

♦ The Department approved five bank charter applications in 2008 and nine state‐chartered banks 

opened in 2008. 

♦ Financial institutions continued to take advantage of on‐line, expedited processing procedures for 

corporate filings to establish branch offices, relocate branch offices, renew representative offices and 

expand fields of membership. 




STATECHARTERED BANKING STATISTICS 

The number of Georgia state‐chartered banks decreased during the year. As of the end of the year, 

the number of state‐chartered banks totaled 276, a decrease of 15 from the previous year. This net 

decrease was the result of: 

• nine new state banks opening, 

• one state‐chartered bank converting to a thrift charter, 

• 18 state‐chartered banks merging out of existence, and 

• five state‐chartered banks being closed by the Department /put into FDIC receivership. 

A four‐year financial performance summary for state‐chartered banks can be found on Page 16 of 

this Report. 




Banks in Receivership Date of Receivership Deposits Acquired by 

Integrity Bank 

Alpharetta, Fulton County 

Alpha Bank & Trust 

Alpharetta, Fulton County 

The Community Bank 

Loganville, Walton County 

First Georgia Community Bank 

Jackson, Butts County 

Haven Trust Bank 

Duluth, Gwinnett County 

08/29/2008 

10/24/2008 

11/21/2008 

12/05/2008 

12/12/2008 

Regions Bank 

Birmingham, Alabama 

Stearns Bank, N.A. 

Saint Cloud, Minnesota 

Bank of Essex 

Tappahannock, Virginia 

United Bank 

Zebulon, Georgia 

Branch Banking and Trust Company 

Winston Salem, North Carolina 

The above chart details the Georgia state‐chartered banks that were closed by the Department of Banking 

and Finance during 2008. In each bank closure, the FDIC was appointed as Receiver of the bank effective 

upon the Department taking possession. 

Detailed information about failed banks can be found on the FDIC’s website at: 

http://www.fdic.gov/bank/individual/failed/banklist.html. This webpage contains useful information 

for the customers and vendors of these banks. This includes information on the acquiring bank (if 

applicable), how customer accounts and loans are affected, and how vendors can file claims against the 

receivership. 

New bank charter activity 

slowed significantly during 

the year, with only two 

new state bank charter 

applications accepted, five 

approved, and nine opened. 

It appears that the level of 

chartering activity in 2009 

will continue to be 

minimal, reflecting the 

current challenging 

banking environment. 

De novo banks, defined as 

banks opened less than 

three years, represented 

13% of the total number of 

state-chartered banks as of 

year end 2008. 


There were 68 state-chartered credit 

unions in Georgia at year-end 2008, a 

decrease of one from the previous year. 

The net decrease is attributed to one 

federal credit union converting to a 

state charter and two state-chartered 

credit unions merging out of existence 

during the year. 

A four-year balance sheet and income 

statement snapshot for state-chartered 

credit unions can be found on Page 17 

of this Report. 

NOTE: In the graph to the right, Total 

Assets for state-chartered credit unions 

includes the Corporate Credit Union 

(Georgia Central Credit Union). 

STATECHARTERED CREDIT UNION STATISTISTICS 

OTHER SUPERVISED/REGISTERED FINANCIAL INSTITUTIONS 

BANK HOLDING COMPANIES 

A total of 265 bank holding companies were registered with the Department at the end of 2008. The 

Department accepted six and approved nine holding company formation applications during 2008. Five 

holding company acquisition applications were accepted during the year and six were approved. 

FOREIGN BANKING ORGANIZATIONS 

At year‐end, the number of International Bank Agencies and Domestic International Banking Facilities 

licensed by the Department remained unchanged at three and one, respectively. All three International Bank 

Agencies operate as representative offices only, but maintain their licenses as an agency. The number of 

International Representative Offices registered increased by one during the year to total three. 

TRUST COMPANIES 



Trust activities continue to be conducted principally by bank trust departments. There is one state‐chartered 

non‐deposit trust company in Georgia that is an independent trust company (Reliance Trust Company, 

Atlanta, Georgia). 

REPRESENTATIVE OFFICES OF BANKS AND BANK HOLDING COMPANIES 

A representative office is an office established by a bank, a bank holding company, or an agent or subsidiary 

of either for the purpose of conducting other than a banking business, and is not considered a main office or 

a branch office. As of the end of 2008, there were 71 entities registered with the Department having 

representative offices operating in this state. 



STATECHARTERED BANK FINANCIAL SUMMARY 

Source: Call Report and Thrift Financial Report 

FDIC‐Division of Insurance and Research 



STATECHARTERED CREDIT UNION FINANCIAL SUMMARY 

* Data above does not include Georgia Central Credit Union, which had Total Assets at the end 

of 2008 of approximately $1.8 billion. 


MAIN OFFICE STAFF 

The primary responsibility of the 

Supervisory Division is the supervision, 

regulation, and examination of state‐ 

chartered financial institutions including: 

banks, credit unions and trust companies. 

This Division also supervises bank holding 

companies and international banking 

organizations. The Division is also 

responsible for processing various types of 

applications, registrations, and notifications 

filed by financial institutions. 

DISTRICT EXAMINATION STAFF 

The Department has six examination districts which have district work areas located in various geographic 

regions of the state to facilitate the supervisory process. 

From left to right (front row): Ira Goolsby, Melissa Sneed, 

Aline De Oliveira, Daisy Mitchell, Vic Greene, Larry Moody 

From left to right (back row): Mark Pressler, Rich Parker 

Ryan Baker, Robbie Williams 

Not pictured: Aaron Fisher 

SUPERVISORY DIVISION STAFF 

Main Office & District Offices 

Seated from left to right: Lori Godfrey, Merian Johnson, Mike Killeen 

Standing from left to right: Susan Weissinger, Murali Ramachandran, 

Janet Blackmon, Laura Millen 

Northwest District 1 - Woodstock 

645 Molly Lane, Suite 140 

Woodstock, Georgia 30189 

Phone: (770) 928-1803 Fax: (770) 928-6209 


From left to right (front row): Derek Thompson, Lori Binford, 

George Campbell 

From left to right (2nd row): Kevin Smitko, Candice Jones, 

Brittany Bohannon, Gloria Jack 

From left to right (3rd row): Chad Taylor, Shannon Boyt, 

Deborah Latimer, Dennis McNeer 


District Offices 

From left to right (front row): Justin McElheney, Victoria Williams, 

Pam Keane, LaTosha Rose, Heather Sartain 

From left to right (back row): Mathew Robinson, Bill Warnock, Cacey Rogers 

Harold Carney, Brett Poole, John Cowart 

Northeast District 2 - Loganville 

3715 Harrison Road, Suite 100 

Loganville, Georgia 30052 

Phone: (770) 554-0676 Fax: (770) 554-5915 

Central District 3 - College Park 

510 Plaza Drive, Suite 1230 

College Park, Georgia 30349 

Phone: (404) 559-4937 Fax: (404) 559-6622 


From left to right (front row): Michael Bryan, Kimberly Nobles, 

Emily Fennell, Janet Bryan, Michael Hooks 

From left to right (back row): David Widincamp, Presley Norris, 

Bob Herndon, Patrick Brahana, Mark Smith, Gary Ford 

Not pictured: William (Trey) Craig, III 

From left to right (front row): Ivan Crocker, Kay Tillman Green, 

Jim Mixon, Sue Ann Tucker, John Sutphin, Virginia Riddick 

From left to right (back row): James Johnson, Terry Tucker, 

Rebecca Clark, Joyce Jones, Jane Stage 



Southeast District 4 - Dublin 

P.O. Box 965 

Dublin, Georgia 31040 

Phone: (478) 275-6740 Fax: (478) 275-6742 

Savannah Office 

6555 Abercorn Street, Suite 222 

Savannah, Georgia 31405 

Phone: (912) 356-2770 Fax: (912) 356-2769 

Southwest District 5 - Douglas 

211 E. Ashley Street, Suite 100 

Douglas, Georgia 31533 

Phone: (912) 389-4248 Fax: (912) 389-4287 

Valdosta Office 

2215 Bemiss Road, Suite F 

Valdosta, Georgia 31602 

Phone: (229) 333-5299 Fax: (229) 333-2139 




From left to right (front row): Evans Yancy, Mike Anderson, 

Ernie Coats 

From left to right (back row): Steve Pleger, Ayanna DeRamus, 

Amy Johnson, Susan Andrews, John Sonnier 

Large Institutions—District 8 

The Large Institutions District does not have a 

separate office. Examiners work from the 

main office or from other district work areas. 



EXAMINATION DISTRICTS AND WORK AREAS 


NONDEPOSITORY FINANCIAL INSTITUTIONS DIVISION 


The Non‐Depository Financial Institutions Division (NDFI) is responsible for 

the licensing, regulation and examination of mortgage lenders, brokers, and 

processors who are licensees and registrants and Money Service Businesses 

(MSBs) which include sale of check companies, money transmitters, and 

check cashers. The Department now regulates over 2,200 Mortgage 

Licensees and Registrants and over 1,000 MSBs. Major activities of the year 

included: 

• Fighting mortgage fraud remained a primary strategic focus for our 

division. We continued our Risk Focused Examination Program, which 

targets those involved in mortgage fraud, with great results. During the 

past year, the Department issued 96 Cease and Desist Orders and 60 

Intent to Revoke Orders and made referrals totaling more than $20 

million to other law enforcement and regulatory agencies as a result of 

our examinations and investigations. 

ROD CARNES 


Non‐Depository Financial Institutions 

• According to a report issued by the Mortgage Asset Research Institute (MARI), Georgia ranked 4th in the 

country for mortgage fraud in 2008, down from 7 th in 2007. We will continue to work closely with 

federal, state, and local law enforcement and regulatory agencies, the Georgia Real Estate Fraud 

Prevention & Awareness Coalition, community task forces, and the industry to combat mortgage fraud. 

• On July 30, 2008, the Housing and Economic Recovery Act of 2008 was signed into federal law. Title V of 

the Act, the Secure and Fair Enforcement Mortgage Licensing Act (S.A.F.E), requires all states to 

participate in the Nationwide Mortgage Licensing System and licensure of all loan originators. We 

anticipate legislation will be passed during the 2009 legislative session requiring mortgage loan 

originator licensing. 

• As of January 2, 2009, Georgia went on‐line with the Nationwide Mortgage Licensing System, which is 

sponsored by the Conference of State Bank Supervisors (CSBS) and the American Association of 

Residential Mortgage Regulators (AARMR) to unify and streamline state licensing requirements and 

help fight mortgage fraud. 

• Our division continued our Risk Focused Examination Program for MSBs. In 2008, we increased the 

number of examinations performed by 18% and issued one administrative action. Our examination 

program not only focuses on Georgia laws and Department rules, but also ensures compliance with the 

Bank Secrecy Act and anti‐money laundering initiatives. In 2008, we gave presentations at MSB 

conventions and will continue to work closely with the MSB industry to provide training and feedback 

under our program. 




MORTGAGE LICENSEE AND REGISTRANT STATISTICS 

Article 13 of Title 7 of the 

Official Code of Georgia 

Annotated requires all 

persons who transact 

business as a residential 

mortgage lender, broker, or 

processor to be licensed or 

registered with the 

Department, unless they are 

exempt or subject to 

notification requirements 

only. 

Since 2006, the Department 

has seen a continuous decline 

in the volume of new 

applications filed each year. 

At the end of 2008, active mortgage licensees and registrants totaled 2,259, representing a net decrease of 754 for the 

year. As indicated in the applications graph above, new applications declined by approximately 46% in 2008. 


Check Cashers 



MONEY SERVICE BUSINESSES (MSB) STATISTICS 

Check Sellers and Money Transmitters 

Since 1965, the 

Department has been 

supervising companies 

that sell travelers’ checks 

and money orders to 

people in Georgia, and 

has been licensing money 

transmitters since 2003. 

At the end of the year, 23 

companies having over 

13,000 agents throughout 

the state were licensed to 

do business in Georgia. 

At the end of the year, 80 

money transmitters having 

over 6,000 agents 

throughout the state were 

licensed to do business in 

Georgia. 

The Department continued 

to experience a substantial 

amount of application 

activity for check casher 

licenses/registrations 

during 2008. 

At the end of 2008, there 

were 907 check cashers 

licensed or registered with 

the Department. There 

were 242 new applications 

for check casher licenses 

or registrations during the 

year, and 158 companies 

either closed or did not 

renew their licenses during 

the year. This represents a 

net increase of 84 or 10% 

from the previous year. 


NONDEPOSITORY FINANCIAL INSTITUTIONS DIVISION STAFF 

Mortgage Licensing / Examination & Supervision 

MORTGAGE LICENSING STAFF 

The primary responsibilities of the 

mortgage licensing staff are to process new 

and renewal applications for the licensing 

or registration of mortgage lenders, 

brokers, and registrants. In addition, the 

staff processes changes to existing licensees 

such as the addition and deletion of branch 

locations, addition or change to branch 

managers, change in business structure/ 

name, change in control, change in 

management, changes to the surety bond, 

and registration of a d/b/a name. Mortgage 

licensing also processes educational 

provider applications and their renewals. 

MORTGAGE EXAMINATION / SUPERVISION STAFF 

From left to right (front row): Rhonda Sampson, Felicia Faison-Holmes, 

Amanda Turner, Sandra Sheley, Betty Thomas, Diane Hester 

From left to right (back row): Andy Reid, Fernando Ornelas, 

Phillip Valenzuela, Bob Bauguss 

From left to right (front row): Brenda Harrell, Larry Shelley, Melinda Kinard 

From left to right (back row): Deborah Long, Irene Harper, 

Gloria Smith, Janet Anderson 

The mortgage supervision/examination 

staff examines mortgage licensees for 

compliance and conducts mortgage fraud 

investigations of both licensed and 

unlicensed entities. Its members prepare 

the reports of examinations and, if 

administrative action is warranted, they 

collect and organize the supporting 

evidence. The division attorney then issues 

the action or forwards the documentation 

to the Attorney General’s office in 

preparation for an administrative hearing. 

The staff also works with law enforcement 

and prosecutors on criminal mortgage 

fraud cases. 


NONDEPOSITORY FINANCIAL INSTITUTIONS DIVISION STAFF 

Money Service Businesses (MSB) 

MSB LICENSING/SUPERVISION STAFF 

The primary responsibilities of the MSB licensing/ 

supervision staff are to process new and renewal 

applications for the licensing or registration of sale of check 

companies, money transmitters, and check cashers. In 

addition, the staff handles changes in address, branch office 

locations and relocations, office closure notifications, 

contact changes, and agent updates for seller of checks and 

money transmitters. Also, staff members perform 

examinations of the licensees, prepare the report of 

examination, and recommend administrative action where 

needed. 

DID YOU KNOW THAT . . . 

From left to right (front row): Peter Lisowski, Joel Byers 

From left to right (back row): Teresa Koeppel, 

Melinda Kinard, Susan Nelson 

On our website, you can search for active or inactive mortgage licensees/registrants, notificants, and cease and 

desist orders and other administrative actions against mortgage entities or individuals. 

Links to those searches and other industry applicable information for mortgage entities are found on our website 

from the main page for Mortgage Brokers & Lenders at— 

http://dbf.georgia.gov/dbfmtg 

You can also search for licensed and registered money service businesses (check cashers, check sellers and money 

transmitters ‐ collectively referred to as MSBs) conducting business in Georgia. 

Links to those searches and other industry applicable information for MSBs are found on our website from the main 

page for Money Service Businesses at— 

http://dbf.georgia.gov/dbfmsbs 


The Legal and Consumer Affairs Division is responsible for providing legal 

advice and legislative drafting support for the Commissioner and staff. Major 

2008 Legislative highlights included: 

• In 2008, the Department did not sponsor a “Housekeeping Bill” (which 

traditionally provides statutory clarifications). Instead during the 2008 

legislative session the Department focused its attention on a bill to amend 

Title 7, Article 13, Licensing of Mortgage Lenders and Mortgage Brokers, to 

permit Georgia licensed mortgage lenders and mortgage brokers to readily 

convert to a uniform nationwide mortgage licensing system pursuant to a 

multi‐state uniform mortgage licensing project spearheaded by industry 

representatives, the Conference of State Bank Supervisors (CSBS), and the 

American Association of Residential Mortgage Regulators (AARMR). 

The provision which can be found at O.C.G.A. §7‐1‐1003.5 allows participation in a single source 

depository of multi‐state mortgage lender and mortgage broker information which will provide the 

Department with a much broader spectrum of information with which to assess an applicant’s 

qualifications for licensure, as well as provide access to disciplinary actions across state lines which 

should further advance the Department’s focus on regulating the industry and fighting mortgage fraud. 

• Department Rules were updated in 2008, via two separate rulemaking processes, as provided for by the 

State Administrative Practices Act, after review and consultation with interested parties and members 

of the industry. The Department welcomes comments from the public or from the industry throughout 

the year regarding amendments or clarifications to Department Rules that will enhance the regulatory 

oversight and enforcement of its regulated entities. 

Highlights of 2008 rulemaking: 

LEGISLATIVE HIGHLIGHTS FOR 2008 

JUDY NEWBERRY 

Deputy Commissioner for Legal 

and Consumer Affairs 

• Changes were made to various Mortgage Rules In order to accommodate participation in the 

Nationwide Mortgage Licensing System (NMLS) and to facilitate the transition of mortgage brokers and 

mortgage lenders to the NMLS. 

• A provision was added in the Mortgage Rules to require the maintenance of certain information relative 

to employees, including date of hire, criminal background check, and date the Department website was 

reviewed to verify eligibility for employment. What constitutes payroll records was clarified and a 

requirement was added that copies of such records must be maintained by a licensee or registrant for 

employees or contractors even if the filing of these forms with the Internal Revenue Service was done by 

an agent. 


• Changes to provide parity for Georgia state‐chartered financial institutions regarding interest only 

loans by deleting the 10 year amortization period. The Department continues to advise caution 

regarding the usage of interest only loans, noting that they should only be extended to appropriate 

credit‐worthy borrowers after a proper financial and credit analysis. 

• Change requiring check casher registrants to post their registration in public view and addition of a 

fine for licensees and registrants that fail to post their license or registration as required. 

CONSUMER AFFAIRS SPECIALIST 

LEGISLATIVE HIGHLIGHTS FOR 2008 

While the Department is unable to handle individual consumer complaints and 

inquiries about such entities, we attempt to provide consumers with appropriate 

contacts and referrals to assist consumers with their concerns. Consumer Affairs 

Specialist Mark Simpson is primarily responsible for directing consumers with 

complaints or inquiries to resources that enable them to become financially 

educated and to make informed decisions when dealing with one of our regulated 

entities. 


ADMINISTRATIVE DIVISION 


The Administrative Division experienced several changes during 2008. The 

Division is responsible for human resource management, budgeting, accounting 

services, information technology, training activities, records systems. Major 

highlights of the year included: 

• We welcomed two new faces in the division. Renee Martin joined the 

Department in May as the Accounting Director. Renee came to us from the 

Department of Administrative Services. IS Database Integrator Ralph Shire 

retired after 34 years with the Department and was replaced by Carol Hyde 

in December. She has 20 plus years experience in database administration. 

• Four new employees joined the staff of the Department in 2008. Three of the 

four employees were field examiners. 

TRACY WHITESIDES 


Administration 

• In conjunction with the Non‐Depository Financial Institutions Division, we began the transition over to 

the National Mortgage Licensing System to collect mortgage and broker licensing fees. 

• In light of the current budget, the division undertook an initiative to increase in‐housing training for 

examiners. During 2008, eight in‐house training seminars were held in order to provide training to 

Department examiners. 

• The Department’s IT staff converted the Department to Ironport for secure email. Additionally, all 

examiners received new laptops. District servers were replaced with higher storage capacity servers and 

district networks were upgraded with smart switches and firewalls. 


ADMINISTRATIVE DIVISION 

FISCAL YEAR RECEIPTS AND DISBURSEMENTS 

NOTE: Revenues collected are remitted to the Office of the Treasury and Fiscal Services. The level of 

expenditures is subject to the state budgetary process. 


FRONT DESK/OFFICE MANAGEMENT 

The primary responsibilities of the front desk/ 

office management staff are to provide general 

and clerical support to Department's divisions. 

The Office Manager serves as administrative 

support for the Commissioner and Senior Deputy 

Commissioner. The receptionists screen and 

forward calls as appropriate. The Support 

Services Officer oversees the receipt, sorting, and 

distribution of mail; maintains office equipment 

and supplies; and assists with routine repairs and 

preventive maintenance. 

INFORMATION TECHNOLOGY (IT) 

The primary responsibilities of the IT staff are to: (1) Procure 

and maintain computer equipment and software (desktop, 

laptop, handheld, server, local area network, firewall, wide 

area network, etc.); and (2) Provide technical support (Help 

Desk) to Department employees. These individuals also make‐ 

up the Department’s IT Recovery Team which, in the event of 

an emergency situation, is responsible for recovery of the 

Department’s IT infrastructure and recovery and restoration 

of data and voice communications. 

HUMAN RESOURCES/ACCOUNTING/ 

BUDGET 

ADMINISTRATIVE DIVISION STAFF 

The primary responsibilities of the human resources/ 

accounting/budget staff are to: (1) Provide and 

administer the functions necessary to the recruitment, 

training, and certification of a professional staff; (2) 

Manage appropriated budget funds; assuring proper 

accounting and tracking of revenue and expense 

collections; (3) Coordinate benefit and payroll 

transactions, records and reports, and oversight of 

employee benefit programs, (4) Perform all State 

dictated accounting functions and processes 

(involving payables, receivables, payroll, balancing of 

accounts, etc.); and (5) Manage physical property 

acquisition and disposition. 

From left to right (front row): Wanda Williams, Sheila Ball, 

Susan Brown, Kaushik Mehta 

From left to right: Carol Hyde, Felicia Hedgebeth, 

Denise Brown 

From left to right: Charlene Haynie, Marilyn Harris, 

Vicki Brantley, Jeanetta Alexander, Reneé Martin 


2008 HIGHLIGHTS FROM THE 

DIRECTOR OF COMMUNICATION AND PLANNING 

During 2008, the Department continued its focus on customer service 

improvement through strategic planning initiatives that impact our external 

customers and our employees. Initiatives that have not been mentioned elsewhere 

in this report are highlighted below, along with other accomplishments and 

activities during the year: 

• We were reaccredited by the Conference of State Bank Supervisors (CSBS) 

during 2008. The CSBS Accreditation Program identifies banking departments 

that serve the citizens of their State by operating a capable and professional 

regulatory program. Every five years, the Department is subject to an on‐site 

review to ensure that we continue to fulfill our statutory responsibility to 

charter, examine, supervise and regulate all state‐chartered commercial banks 

and trust companies in Georgia. A Review Team of three highly experienced 

former regulators and the CSBS Vice President, Accreditation and Certification, 

performed the on‐site review. 

• The State ushered in a new Strategic Planning methodology during the year. The new integrated 

strategic planning process was the result of collaborative work among the state planning agencies to 

consolidate and integrate four separate strategic planning processes. The ultimate goal of the new 

process is to ensure that agencies are achieving results for Georgians —continuing our efforts to be good 

stewards of the state’s resources. The Department’s goals for the next three years are focused primarily 

on the following areas: 

♦ Increase overall supervisory capabilities and effectiveness. 

♦ Reduce mortgage fraud in Georgia. 

CAROL WEBB 

Director of Communications 

and Planning 

♦ Enhance E‐Commerce/E‐Government capabilities to improve service to internal and external 

customers. 

• Feedback from our customer satisfaction surveys for application and examination processes in our two 

largest programs continued to reveal extremely positive results during 2008, with satisfaction ratings for 

overall quality of service greater than 90%. 


SUMMARY OF ACTIVITIES 

FOR STATE CHARTERED FINANCIAL INSTITUTIONS 

AND OTHER ENTITIES REGULATED BY, LICENSED BY, OR REGISTERED WITH 

THE DEPARTMENT OF BANKING AND FINANCE DURING 2008 


Our Motto is: “Safeguarding Georgia’s Financial Services” 

Our Mission is to promote safe, sound, competitive 

financial services in Georgia through innovative, 

responsive regulation and supervision. 

Our Vision is to be the best financial services industry 

regulator in the country – Progressive. Proactive. 

Service-Oriented. 

Visit us on the web at: 

http://dbf.georgia.gov 

GEORGIA 

DEPARTMENT OF 

BANKING AND FINANCE 

2990 Brandywine Road 

Suite 200 

Atlanta, Georgia 30341-5565 

Phone: (770) 986-1633 

Toll-free: (888) 986-1633 

Fax: (770) 986-1654 or 1655 

Email: dbfpress@dbf.state.ga.us

annual report - Department of Banking and Finance

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