annual report - Department of Banking and Finance

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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
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Page 6 and 7: documenting mortgage fraud. The Dep
Page 8 and 9: ORGANIZATIONAL PROFILE AND STAFF CO
Page 10 and 11: District 4—Southeast NAME TITLE G
Page 12 and 13: ORGANIZATIONAL PROFILE AND STAFF CO
Page 14 and 15: SUPERVISORY DIVISION SUMMARY OF ACT
Page 16 and 17: There were 68 state-chartered credi
Page 18 and 19: SUPERVISORY DIVISION STATECHARTER
Page 20 and 21: From left to right (front row): Der
Page 22 and 23: SUPERVISORY DIVISION STAFF District
Page 24 and 25: NONDEPOSITORY FINANCIAL INSTITUTI
Page 26 and 27: Check Cashers NONDEPOSITORY FINAN
Page 28 and 29: NONDEPOSITORY FINANCIAL INSTITUTI
Page 30 and 31: • Changes to provide parity for G
Page 32 and 33: ADMINISTRATIVE DIVISION FISCAL YEAR
Page 34 and 35: 2008 HIGHLIGHTS FROM THE DIRECTOR O
Page 36: Our Motto is: “Safeguarding Georg

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