Palmetto Banker 2019-3 by SCBA

PALMETTO SOUTH CAROLINA BANKERS ASSOCIATION

Summer Issue 2019-3

SAM ERWIN

2019-2020 SCBA Chairman

Banker

2019-2020 BOARD OF DIRECTORS SCBA EXECUTIVE COMMITTEE

Chairman Samuel L. Erwin IBERIABANK Greenville, SC

Chairman-Elect James A. Bennett First Citizens Bank Columbia, SC

First Vice-Chairman K. Wayne Wicker South Atlantic Bank Myrtle Beach, SC

Treasurer Fleetwood S. Hassell The Bank of South Carolina Charleston, SC

Immediate Past Chairman David L. Morrow CresCom Bank Charleston, SC

SCBA BOARD OF DIRECTORS

2nd Immediate Past Chairman R. Thornwell Dunlap III Countybank Greenwood, SC

President & CEO Fred L. Green III South Carolina Bankers Association Columbia, SC

Group I Director Arnold A. Zipperer III 1st Federal Savings Bank Walterboro, SC

Group II Director Boyd B. Jones Synovus Columbia, SC

Group III Director Thomas R. Britt, Jr. Bank of Travelers Rest Travelers Rest, SC

Group IV Director David R. Torris SunTrust Bank Greenville, SC

Group V Director J. Carlisle Oxner III Arthur State Bank Union, SC

Group VI Director J. Neal Anderson Anderson Brothers Bank Hemingway, SC

Community Bankers Division, Chairman J. Ted Nissen First Community Bank Lexington, SC

Bankers School, Chairman Annette L. Scott Countybank Greenwood, SC

Young Bankers Division, Chairman Elizabeth S. Steifle Bank of Travelers Rest Travelers Rest, SC

Member-at-Large Thomas Bouchette The Citizens Bank Florence, SC

Member-at-Large John D. Kimberly Carolina Alliance Bank Spartanburg, SC

Member-at-Large Laurence S. Bolchoz, Jr. Coastal Carolina National Bank Myrtle Beach, SC

Member-at-Large Curtis T. Evatt Oconee Federal Savings & Loan Seneca, SC

Member-at-Large Jennifer T. Jones CBL State Savings Bank Greer, SC

Member-at-Large Rose Buyck Newton Bank of Clarendon Manning, SC

2009 Park Street I PO Box 1483 Columbia, S.C., 29202-1483 803.779.0850 I Fax: 803.779.0890

www.scbankers.org 2019-20 SC BA EXEC UTIV E CO M M ITTE E Chairman....................................................................................... Samuel L. Erwin, IBERIABANK Chairman-Elect..................................................................... James A. Bennett, First Citizens Bank First Vice-Chairman............................................................ K. Wayne Wicker, South Atlantic Bank Treasurer........................................................... Fleetwood S. Hassell, The Bank of South Carolina Immediate Past Chairman............................................................David L. Morrow, CresCom Bank 2019-20 SC BA BOARD O F D IR E CTO R S 2nd Immediate Past Chairman............................................ R. Thornwell Dunlap III, Countybank SCBA President & CEO.............................. Fred L. Green III, South Carolina Bankers Association Directors.......................................................................J. Neal Anderson, Anderson Brothers Bank Thomas Bouchette, The Citizens Bank Thomas R. Britt, Jr., Bank of Travelers Rest Laurence S. Bolchoz, Jr., Coastal Carolina National Bank Curtis T. Evatt, Oconee Federal Savings & Loan Boyd B. Jones, Synovus Jennifer T. Jones, CBL State Savings Bank John D. Kimberly, Carolina Alliance Bank Rose Buyck Newton, Bank of Clarendon J. Ted Nissen, First Community Bank J. Carlisle Oxner III, Arthur State Bank Annette L. Scott, Countybank Elizabeth S. Steifle, Bank of Travelers Rest David R. Torris, SunTrust Bank Arnold A. Zipperer III, 1st Federal Savings Bank 2019-20 SC BA C OMM UN ITY B A N KE R S D IV IS IO N B OA R D Chairman.............................................................................. J. Ted Nissen, First Community Bank Immediate Past Chairman...................................................... Fred Gilmer III, Southern First Bank Directors.............................................................. Marion E. Freeman, The Conway National Bank L. E. Griffin, Home Federal Savings & Loan James A. Kimbell III, Coastal Carolina National Bank Richard N. McIntyre, First Reliance Bank Dominik Mjartan, Optus Bank Jamie O. Morphis III, Carolina Bank & Trust Co. C. Kyle Thomas, Blue Ridge Bank 2019-20 SOUTH C ARO LIN A B A N KE R S S CH O O L B O A R D Chairman .........................................................................................Annette L. Scott, Countybank Chairman-Elect ................................................................Marvin E. Robinson, Jr., CresCom Bank Past Chairman........................................................... Ford P. Menefee, The Bank of South Carolina Directors............................................................................. Richard N. Burch, South Atlantic Bank Robert P. Hucks II, Coastal Carolina National Bank Calvin C. Hurst, Southern First Bank John M. Leighton, South State Bank Joseph A. Painter, First Community Bank Michelle Seaver, United Community Bank J. Reeves Skeen, First Citizens Bank Mze Wilkins, Ameris Bank Robert L. White, Bank of Travelers Rest Course Coordinators...........................................................................................James R. Clarkson John C. Griggs III, Synovus W. David Keller, The Citizens Bank Francis A. Townsend III, South State Bank 2019-20 Y OUNG BAN KE R S D IV IS IO N B O A R D O F D I R EC T OR S Chairman ......................................................................Elizabeth S. Steifle, Bank of Travelers Rest Chairman-Elect........................................................................Allison B. Cranford, TD Bank, N.A. First Vice Chairman............................................................................David P. Looper, Wells Fargo Past Chairman....................................................... Charles K. Talbert, The Bank of South Carolina Directors........................................................................... Thomas H. Anderson, South State Bank Bradley R. Cantrell, Countybank Michelle A. Coletta, South Atlantic Bank Vaughan R. Dozier, Jr., First Community Bank Rufus T. Dunlap V, Countybank Casey L. Earl, United Community Bank Margi M. Fleming, The Citizens Bank Austin J. Goforth, Southern First Bank Lauren D. Greene, First Citizens Bank Othniel W. Laffitte, GrandSouth Bank Everette J. Livingston, First Citizens Bank Jared A. Polk, Enterprise Bank of SC Charles H. Redmond, South State Bank B. Oneal Staples, Ameris Bank H. Gibson Tucker, First Palmetto Bank

Contents 5 6 13 14 16 18 26 29 34 36 38 39

Past Chairman’s Message

Cover Story

ABA Update

Tax Planning Opportunity

De Novo Update SCBA 2019 Annual Convention and Trade Show Review Young Bankers Division

South Carolina Bankers School

Welcome New Members

Personal Transactions

Banking News Education & Professional Development

Cover: Sam Erwin, SCBA Chairman and IBERIABANK, Executive Vice President Carolinas Regional President Cover Photograph by John C. Gillespie, John Gillespie Photography LLC SC B A St a f f President & CEO............................. Fred L. Green III Executive Vice President & CFO...... Donna S. Taylor Senior Vice President....................... Carolyn L. Bradley Senior Vice President....................... E. Anne Gillespie Senior Vice President & Counsel..... A. O’Neil Rashley, Jr., Esq. Director, Advertising & IT............... M. Caroline Snijders Administrative Assistant................... Bonnie E. Nelson The Palmetto Banker is a publication of the South Carolina Bankers Association. The magazine exists to serve its members by communicating news of interest, education and SCBA activities. Items from members are welcome, however the editor reserves the right to refuse copy. With the exception of official announcements, the SCBA disclaims responsibility for opinions expressed and statements made in articles published in the Palmetto Banker.

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Past

Chairman’s Message

Chairman’s

Report from

2019 ANNUAL MEETING As I think back over my career, and to some extent my life, I realize that I am a very lucky guy. After graduating from Clemson In 1972, I was fortunate to start my career in banking. This was a time prior to interstate banking and I joined one of the largest banks in the state, SCN, in their management training program. I later joined Bankers Trust, one of the other large SC banks. Bankers Trust became NBNC which is now Bank of America. I was with First Union for a while, which together with the old SCN, is now Wells Fargo. Carolina 1st gave me my first chance to get involved in a senior management position, and that bank is now TD. We started Crescent Bank in 2000, and we are CresCom Bank today. I share this stroll down memory lane to say I’ve been fortunate to have learned from a lot of smart bankers, have seen how different business models work, and have formed friendships throughout our state from both a wide-array of customers and a large number of bankers. Nancy and I moved 9 times and we lived in 6 different communities. And I loved every bit of it. Just as all of you have done, we got involved in many community activities and made great friends there as well. Just as many of you, I have tried to give back to my community and our industry by volunteering my time and talents. Of all the boards and activities I’ve been involved in, I have enjoyed more than any other to serve as your Chairman this past year. After being sworn in at the convention last years, our first board meeting was to re-affirm our priorities and access our challenges and opportunities. Our priority of being the primary political advocacy voice for our industry at both the state and federal levels remains intact. Our legislative reception held the first night of the session was another well attended, much enjoyed, and productive gathering. Although we might not have gotten into any detailed legislative conversations, it was a perfect way to build and strengthen relationships.

David L. Morrow, Past Chairman South Carolina Bankers Association

Our Washington trip this year in conjunction with the ABA Government Relations Summit was, in my opinion, our best ever. In addition to personal visits with every member of our delegation to discuss legislation important to our industry, House Majority Whip Jim Clyburn hosted our bankers in the Whip’s office at the Capitol building. Believe it or not, that Sunday night, there were 25 South Carolina bankers that, along with the Congressman and his staff and Capitol Security, had the full run of the Capitol building – we were the only ones there. Later, we enjoyed a lunch with Congressman Wilson and had Congressmen Norman, Rice and Timmons join us for dinner. We discussed important banking issues, but just as important, we built on strong relationships. Our educational offerings have the second greatest priority and all events this year including this annual meeting were well attended and created value to our members. The objective of all the events is to provide educational benefits that are important, relevant, timely and actionable. We hit the target again this year as I know we will continue to in the future. I began my comments sharing some of my background. As our industry changed with interstate banking in the 1980’s, we changed with it. As the Great Recession took a toll on all of us, we survived it and are stronger for it today. As consolidation continues without the historical new bank information, the number of banks in our state will probably continue to shrink. But just as we adjust in our banks, the SC Bankers Association adjusts to each of these challenges as well! I want to thank our Board of Directors for your engagement and support. I also want to thank my team members that are with me for supporting me during this past year.

S U M M E R 2 0 1 9 • PALMETTO BANKER

Cover Story

Father’s Advice

SET SCBA CHAIRMAN ON PATH TO

Banking Success Photographs by John C. Gillespie

Sam Erwin understands the advantages and drawbacks of many different banking styles. That shouldn’t be surprising as the seasoned South Carolina banker has seen a lot during his nearly 30 years in the industry. Erwin has worked for megabanks and startups, regionals and superregionals. He’s survived and learned from three economic downturns, including the Great Recession. He was a chief executive officer of a multi-bank holding company at 36 and back in a startup role of sorts at 48. He’s been through two mergers and worked in markets as varied as Charlotte, Greenville, Columbia and Orangeburg. Today, Erwin, the Carolinas market president for IBERIABANK, is chairman of the South Carolina Bankers Association, one of fewer than six score individuals to hold that role since the organization’s inception more than a century ago. Despite his myriad successes over the years, banking wasn’t Erwin’s initial goal when he began at Clemson University. “My father is an attorney and I had always planned to be an attorney when I was young,” Erwin said. “When I started college my dad asked me what I was going to study and I told him history. He 6

asked why and I said that I loved history, was good at memorization and since I wanted to go to law school my major wasn’t significant, as long as I did well.

When NationsBank beat out other competitors for the right to take over FirstRepublic, it made the Charlotte bank a national player.

“He said, ‘Why don’t you study business or finance instead? You can still go to law school and it will give you more options down the road.’ I ended up studying financial management, with a focus area of financial institutions,” he added. “It turned out to be very wise advice.”

“Listening to Hugh McColl describe the excitement involved with the acquisition really got me thinking about banking,” Erwin said.

Among events that shaped Erwin’s future was the opportunity to listen to a guest speaker while he was still a student at Clemson. That speaker, then–NationsBank chief executive officer Hugh McColl, opened Erwin’s eyes to the fact that banking could be more than just interest rates and escrow accounts. Among the topics McColl touched on was Charlotte-headquartered NationsBank’s 1988 entry into the Texas market, and what an exciting time it was at the bank. The deal McColl was referring to in his talk to Erwin and his Clemson compatriots was NationsBank’s acquisition of FirstRepublic Bank Corp. of Dallas. FirstRepublic, the largest bank in the Lone Star State, filed for bankruptcy during the savings and loan crisis in the late 1980s.

S U M M E R 2 0 1 9 • PALMETTO BANKER

Prompted by McColl’s infectious enthusiasm, Erwin decided to give banking a shot while still holding on to the idea that he would eventually go on to law school. Erwin joined another Charlotte bank, First Union, after graduating in 1990. After going through the bank’s management training program, he was sent to Columbia. After a few years he began to give serious thought to applying to law school, but noticed his father, an attorney with the well-known Columbiabased firm of Nelson Mullins Riley & Scarborough, was silent on the idea. “I noticed my dad wasn’t encouraging me to attend law school, which I thought was strange, since he was a lawyer,” Erwin said. “So I said to him, ‘You’re not pushing me to go to law school. How come?’

SAMUEL L. “SAM” ERWIN Age.................51 Position...........Carolinas Market President, IBERIABANK Chairman, South Carolina Bankers Association Education.......Bachelor’s Degree Financial Management, Clemson University Hometown ....Greenwood Family.............Wife, Meg; two sons

S U M M E R 2 0 1 9 • PALMETTO BANKER

Cover Story

“He said, ‘It’s been a great career for me, but it’s come at a price. I think banking may give you everything you want and more.’ It turns out he was exactly right. I couldn’t have picked a better career or a more rewarding one.”

Erwin joined The Palmetto Bank at the height of the Great Recession and helped the venerable institution not only weather the storm, but thrive, according to Leon Patterson, who brought Erwin to The Palmetto Bank in 2009.

Erwin was with First Union until 1997, then joined what was then First National Bank (today’s South State Bank) in Orangeburg, serving as regional executive. He moved back to Columbia in 2000 to serve as First Union’s market president before joining Columbia startup Carolina National Bank as a senior lender.

“Sam inspired confidence in the employees. He inspired them to overcome obstacles, to set challenging goals and to reach those goals,” added Patterson, who, like Erwin, served as CEO and chairman of Palmetto Bancshares. “One of his strengths is that he clearly communicates what he wants accomplished.”

In 2005 he landed his first C Suite role, being name CEO of Community Bankshares, a multi-bank holding company with operations in the Midlands and Pee Dee. After Community Bankshares was acquired in 2008, Erwin joined The Palmetto Bank, one of the oldest banks in the state, serving as chairman and CEO of the bank, and chairman, CEO and president of holding company Palmetto Bancshares.

When The Palmetto Bank was acquired in 2015, Erwin served as regional president for the Upstate for acquirer United Community Bank until the following year, when he left to help Louisianaheadquartered IBERIABANK start up its Carolina operations.

“Each position has presented me with interesting opportunities,” Erwin said. “I’ve tried to take what I’ve learned at each position and apply the lessons to the ensuing opportunities.”

S U M M E R 2 0 1 9 • PALMETTO BANKER

RETURN TO ROOTS Erwin sees IBERIABANK, which has $31 billion in assets nationwide, as a return his early-career experience. “When I began at First Union, it looked a lot like IBERIABANK does today, so you could say I’ve gone back to my roots,” he said. When Erwin joined First Union it had just topped the $40-billion-asset level and was in the middle of a rapid expansion through whole-bank acquisitions, with a particular focus at the time on the Florida market. When he joined IBERIABANK in 2016, it had $19 billion in assets, which has grown to more than $31 billion, primarily through two large acquisitions in Florida. In both situations, Erwin joined banks that were moving beyond the “comfortable confines of a growing community bank within a limited geography to a regional player across a growing number of states,” Erwin said.

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Cover Story

“Just as was the case at First Union, within IBERIABANK there is a heavy reliance on state-by-state leaders, regional presidents like myself,” he added. “It has been a lot of fun to participate at a strategic level in the challenges and opportunities that come with rapid expansion through the Southeast and deep South.”

ranging from Dallas, Texas, to Midtown Manhattan in the heart of New York City. IBERIABANK’s footprint includes all the Southern states except Virginia.

One of the major differences between First Union in the early 1990s and IBERIABANK today is the makeup of the banking landscape.

“Sam is a very skillful banker, a good manager and a good leader, and that combination is what you need in a CEO,” said Patterson, who himself served as chairman of the SCBA, in 1996-97. “His leadership style is to tell you what he wants done, and see that it happens. He allows others to get their jobs done, and he’s not a micromanager.”

“In 1990 there were nearly 15,000 banks nationwide; today there are around 5,000,” Erwin said. “So there were certainly many more M&A targets then as compared to now. In addition, for the most part First Union had only to worry about competition from banks. Today we have all the banks to worry about plus all the non-bank competition that has developed.” IBERIABANK employs a market-centric model, meaning most decisions are made locally. However, some centralization is essential, Erwin said. “For example, a lesson I’ve learned is that if you don’t centralize your credit culture you open yourself up to potential problems,” he said. “With a centralized credit structure you can resolve problems quickly when they arise. We’ve made a point of being absolutely consistent regarding credit across our footprint.” When Erwin joined IBERIABANK the company identified six markets in the Carolinas it wanted to serve: Greenville, Charlotte and Greensboro, where it currently operates locations, and Columbia, Charleston and Raleigh. “We haven’t opened offices in the latter three, but we’re always looking for the right talent and we can get a new market open quickly when we find the right person,” he said. IBERIABANK has 190 branches nationwide, with locations in 12 states,

Erwin isn’t afraid of change, and he’s a good communicator, two critical traits in a top executive, according to Patterson, the former Palmetto Bank executive.

Erwin recognizes that it’s crucial to be proactive rather than reactive, both as a banker and as chairman of the Bankers Association. “When I took the stage at Kiawah at the 2019 Bankers Association annual meeting, I talked about the changes we’re experiencing as an industry,” he said. “They’re coming very rapidly and we have to be ready to respond. “It’s very impressive how the Association has responded to the changes within the

industry, and we have to continue to be ready to adapt when necessary,” Erwin added. “We need to offer clients the products they need and we need to be responsive.” Erwin has been involved with the Bankers Association for 20 years. He was named Outstanding Young Banker in 2005 and has served on the Association’s board of directors for a number of years. “I’ve known Sam for 20 years and think of him as a good friend,” said SCBA President and CEO Fred Green. “I look forward to working more closely with him in his chairman’s role.” Erwin said the Bankers Association helps accentuate the positive attributes of the banking profession and has proven beneficial to his career. “The Association has afforded me the opportunity to become friends with bankers from other institutions and learn from them in a way that I believe is unique to our industry,” he said. “It’s proven an invaluable resource that has helped me again and again over the years, and enabled me to make friendships that will last my entire life.”

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ABA U p d at e

REFRAMING THE

Credit Union DEBATE

For too long, banks with legitimate concerns about unbridled credit union growth have been portrayed as Goliath picking on David. The truth is that in many states, a credit union is one of the largest local financial institutions, outranking most of the state’s community banks in size. But rather than trying to convince policymakers or the public that central casting got it all wrong—that it’s big credit unions that are harming small banks—ABA, with guidance from our long-standing banker Credit Union Task Force, has made a deliberate effort in the past two years to raise the level of awareness about credit union policy issues and excesses among third parties and the media. We believe this strategy is effectively reframing the debate from banks vs. credit unions to credit unions vs. taxpayers, a crucial step toward drawing more oversight of the industry. More people now are questioning whether credit unions, which enjoy a generous federal tax exemption, are earning this benefit. Even major media outlets like The Wall Street Journal, The New York Times and National Public Radio have turned a critical eye to credit union practices— running stories on the lax enforcement of meaningful membership restrictions and an expose of the industry’s taxi medallion loans, which imposed predatory terms on thousands of taxi drivers and drove some credit unions out of business. The most recent criticism comes from a respected independent research firm— Federal Financial Analytics, run by

veteran banking policy analyst Karen Shaw Petrou who has a strong interest in matters of economic inclusion. ABA commissioned the study but had no editorial control over Federal Financial Analytics’ research and conclusions. Petrou’s study assessed not only the extent to which credit unions meet their mission, but also how their federal regulator judges and enforces it. The paper found, among other things, that credit union members are disproportionately from middleand upper-income households, that the National Credit Union Administration maintains no data on credit unions’ effectiveness at providing financial services to people of “small means,” and that its definition of “low-income” is far more expansive than that used by other federal agencies. This lack of credit union mission compliance is the rub for Petrou. “Sometimes the question of credit-union mission compliance is seen as an usversus-them battle between bankers and credit unions,” she said. “This study readily acknowledges the vital role credit unions can and should play in household financial services—its goal is not to question credit unions, but to remind policy-makers of their vital mission to ensure that taxpayer-benefits received are credit-union benefits earned.”

Rob Nichols, President and CEO American Bankers Association nichols@aba.com

It’s past time for policymakers to take a truly critical look at today’s $1.5 trillion credit union industry to ensure the American taxpayer is not being cheated. We have called for just such scrutiny, urging NCUA in particular to conduct a “top-to-bottom assessment” of whether the industry is meeting its targeted, statutory mission to serve households of “small means.” We have also asked the NCUA Inspector General to review the regulator’s role in allowing credit unions to lose sight of their mission. In the meantime, ABA is continuing to challenge NCUA in the courts. Our lawsuit against NCUA over its expansive field of membership rule is still active; we won two of four counts, are appealing the other two, and a decision could come any day. But we are excited to move our case to the court of public opinion—and even more encouraged that the response isn’t a knee-jerk dismissal of our grievances as competitive sour grapes. Others are now seeing the serious implications of credit unions’ mission failures and lax oversight, and such awareness is crucial to achieving a level playing field.

ABA does not disagree. We have long maintained that there is a role for credit unions in our financial services ecosystem. But that role has become blurred as some credit unions increasingly look and act like banks, even purchasing them. S U M M E R 2 0 1 9 • PALMETTO BANKER

INCREASE TO SOUTH CAROLINA JOB TAX CREDIT TIERS

Creates State Tax Planning

OPPORTUNITY

By: Will Clarke, JD, EA, State & Local Tax Manager, Elliott Davis, LLC & Beverly Seier, CPA, Tax Shareholder, Elliott Davis, LLC

On May 22, 2019, Governor Henry McMaster signed H. 4243 into law. This bill, which was commonly dubbed the “Carolina Panthers Incentive Bill”, includes much more than specific incentives for the Carolina Panthers. In actuality, this legislation creates valuable job creation tax incentives to qualifying businesses located in lower-income counties of South Carolina, including banks.

Tier III and Tier IV counties. Qualifying businesses who are located in a Tier III (second-to-lowest income category) county, have seen their job tax credit increase from $4,250 to $20,250 per job. Tier IV counties receive the highest benefit, with their credit increasing from $8,000 to $25,000 per job. This is a remarkable state tax incentive for qualifying businesses with locations in the Tier III and Tier IV counties.

Specifically, H. 4243, as signed, includes a drastic increase to the South Carolina job tax credit amounts for new jobs created in

South Carolina is one of a handful of states that specifically allows for the utilization of job tax credits by banks.

S U M M E R 2 0 1 9 • PALMETTO BANKER

As community banks in rural counties may be some of the largest employers in the county, job tax credits provide an excellent opportunity to further expand the bank’s workforce. Even those banks located in Tier I or Tier II counties can also take advantage of these credits by expanding their workforce, but at a lower credit amount. The job tax credit is a valuable incentive that rewards businesses for creating and maintaining new jobs in South Carolina. Credits are limited to 50% of corporate or individual income tax, bank tax,

or insurance premium tax. The credit may be earned by C-corporations, S-corporations, partnerships, sole proprietors, and limited liability companies. Unused credits can be carried forward for fifteen years. For each new, full- time job created in South Carolina, the tax credit ranges in value from $1,500 to $25,000 per year for up to five years, depending in which county the job is located. Counties are tiered based on unemployment and per capita income of the county. In order to qualify for the initial job tax credit, a business must create and maintain a certain number of net new full-time jobs in a taxable year, using a monthly average. For large employers with 100 or more full-time employees, the company must create ten new jobs in year 1 and maintain those jobs through year 2 in order to claim the credit. For smaller employers with less than 100 full-time employees, the company must create two new jobs in year 1, which can then be claimed on that year’s tax return through the “accelerated” small business job tax credit. Jobs created by small employers

must also meet a wage threshold test to determine whether they receive the full credit amount or 50% reduced credit. As long as those initial new jobs are maintained, the company can generate credits for those jobs and any additional new jobs for a five-year period.

• Is there an opportunity to pair the job tax credits with other economic incentives? • Are there plans to expand the bank’s workforce at a current or new location, especially in the advantageous Tier III or Tier IV counties?

For example, if a bank with less than 100 employees created two new full-time jobs in a South Carolina Tier IV county, met the wage threshold, and maintained the jobs for five years, it would generate $125,000 in job tax credits per new employee over five years or $250,000 in total for the two new employees. This creates a significant savings against a bank’s South Carolina tax.

To the extent your bank has expanded and increased jobs in the last three to five years and has not taken advantage of the job tax credit, the credit can be earned and applied retroactively. The South Carolina job tax credit rules and requirements can be complex and require a comprehensive analysis when planning for credit utilization. We encourage you to contact your tax advisor to discuss a potential state credits and incentives analysis for your bank. With proper planning, these tax credits may significantly impact your bank.

Management should ask the following questions in analyzing the potential impact South Carolina job tax credits may have on their institution: • Has the bank created new jobs that exceed the required job creation thresholds in the past three to five years?

JOB TAX CREDIT DEVELOPMENT TIERS TIER I

TIER II

TIER III

TIER IV

$1,500 credit per new, full-time job

$2,750 credit per new, full-time job

$4,250 / $20,250* credit per new, full-time job

$8,000/ $25,000* credit per new, full-time job

Anderson, Beaufort, Charleston, Dorchester, Greenville, Lexington, Newberry, Richland, Spartanburg, York

Aiken, Berkeley, Florence, Georgetown, Greenwood, Jasper, Kershaw, Lancaster, Oconee, Pickens, Saluda, Sumter

Abbeville, Calhoun, Cherokee, Chesterfield, Colleton, Darlington Edgefield, Fairfield, Horry, Laurens, McCormick, Union

Allendale, Bamberg, Barnwell, Chester, Clarendon, Dillon, Hampton, Lee, Marion, Marlboro, Orangeburg, Williamsburg

*2019 Credit Amount

S U M M E R 2 0 1 9 • PALMETTO BANKER

De Novo U p d at e

BUILD IT OR BUY IT:

How Best to Start a New Bank Today By: Neil E. Grayson, Benjamin A. Barnhill, and Richard E. Davis, Jr.

INTRODUCTION Build it or buy it? The decision is not just for home buyers – it also applies to those seeking to start a bank. And although these are two well-established ways to start a bank, at any given time over the past 40 years it has usually been pretty clear which approach made more sense. During most of the 1990s there were few de novos because the regulatory hurdles were so high. Similarly, from 2008 until 2016 the FDIC had placed a virtual moratorium on de novo banks, so the only realistic path was to buy an existing small bank and make it your own, a de facto de novo. During this period, most “new” banks were recapitalizations of 16

troubled banks forced to sell as a last resort. On the other hand, from the late 1990s until the start of the Great Recession, new banks were relatively easy and inexpensive to form, resulting in a wave of de novo charters averaging more than 100 per year during that period. With the notable shift in regulatory attitudes over the last few years, obtaining a de novo charter is again an option. But in some markets there are also small, healthy banks for sale – especially in rural markets with little growth potential and aging management teams. Based on current bank stock values, these banks can be cost-efficiently purchased and rebuilt to form a new de facto de novo. So

S U M M E R 2 0 1 9 • PALMETTO BANKER

which approach makes more sense today? The answer depends on a few key factors, including those discussed below.

WHY BUILD IT? THE DE NOVO PROCESS There are several benefits to a de novo charter approach, specifically: • A clean slate to start with, including the latest technology without potentially cumbersome or outdated legacy systems • An improved regulatory willingness to facilitate formation of new banks with a more definite time frame for approval

• A shortened de novo restriction period of three years • No time spent looking for a bank that passes due diligence scrutiny and can be bought on terms acceptable to the new management team and investors A de novo charter was the path chosen by Beacon Community Bank, a South Carolina state-chartered bank which opened for business in Charleston in January 2018. The successful organization of Beacon was due in large part to its rapidly growing market and its wellconnected group of local organizers. Beacon’s President and CEO, Brooks Melton, noted, “The Charleston metro area is an excellent market, and we are proud to have our effort to bring a new community bank here financially supported by so many local residents, most of which we are now pleased to have as customers.” De novo groups without well-connected organizers and those in slower growth markets have found that pitching an investment in a de novo bank is more difficult than expected. In the current environment, investing in a de novo bank is not purely a financial decision. Comparable investment returns could probably be achieved by investing in publicly traded bank stocks. Investors in de novo banks are also typically motivated by a sense of community service, entrepreneurial spirit, or both. As Shaun Dalton of Community Capital Advisors, Inc. has observed, “There often is very little appetite from out-of-market investors, so the Board and management team must have deep roots in the community. The days of sending out offering circulars and making phone calls to raise the capital are over. You have to get in front of every potential investor, educate them on the process, and let them know how the bank can disrupt the current local banking environment and make money on a go-forward basis.” Both state and federal regulators have demonstrated their desire to assist de novo banks and streamline the regulatory approval process, including committing to make a decision on the regulatory applications within 120 days. The FDIC’s shortened de novo period also means that

a bank has the full flexibility of its charter following its first three years of operations. And a de novo bank starts with a clean slate – every bit of technology infrastructure as well as each loan and deposit are of its own choosing, with no inherited headaches from a prior management team. However, regulators are requiring de novo groups to raise significantly more capital than before the financial crisis – enough to take the bank to profitability within three years. At the same time, regulators have been reluctant to approve innovative or high growth business plans. This combination makes it difficult to build a business model that will be attractive to both regulators and investors. As a result, there have been a number of de novo groups in the past few years that received all necessary regulatory approvals but had to withdraw their applications because they could not raise their capital.

WHY BUY IT? THE EXISTING BANK MODEL Benefits in buying an existing charter to operate a de facto de novo include: • Existing systems, which allow a bank to start at “second or third base” • (Hopefully) existing profitability of the established bank • Substantially more flexibility in developing the bank’s business plan, including a niche or specialty focused plan, and in raising capital in multiple rounds at different valuations and on an as-needed basis, leading to greater interest from investors • Additional flexibility to structure compensation for organizers who undertake the effort to rebuild the bank or contribute at-risk capital to the venture A group of organizers recently followed this de facto de novo approach in purchasing control of North Carolinachartered First Capital Bank and expanding with a new branch in Charleston. The new CEO of First Capital, Frank Cole, who had previously formed a de novo bank in the late 1990s, notes, “Our investors perceived a value in purchasing an existing charter near

book value and avoiding the significant accumulated losses that come with a traditional de novo. We are happy with our decision to partner with First Capital and help the bank take another significant step in its life cycle.” But there are also unique headwinds that organizers choosing to buy or invest in a smaller charter approach face, including: • Ability to find a bank that can be bought (or that will accept growth capital and a change in officers and directors) on terms acceptable to the new management team and investors • Challenges in continuing to serve the bank’s existing market area, which in many cases will be rural with little or no growth, while expanding into a new market • Less clear regulatory pathway and timeframe for regulatory approval • Potentially high costs of replacing legacy infrastructure/IT systems Additionally, state banks cannot move their headquarters across state lines without re-chartering in the new state, so if a group buys a non-South Carolina bank it may have to retain its headquarters in its state of organization and simply open branches in South Carolina.

CONCLUSION If the economy continues its modest growth and existing banks continue to consolidate, we will likely see additional efforts to form new banks in South Carolina. Whether the better path is a traditional or a de facto de novo bank will depend on a number of factors but, based on our experience in the current cycle, we would caution that the ability of an organizing group to raise sufficient capital cannot be over-emphasized. A de novo bank effort that runs out of capital is no prettier than an unfinished home construction project.

Neil Grayson and Ben Barnhill are partners and Ricky Davis is an associate in the Greenville, South Carolina office of Nelson Mullins Riley and Scarborough, LLP.

S U M M E R 2 0 1 9 • PALMETTO BANKER

SCBA Annual Convention

AT T E N D A N C E AT

30 Year High

2019 Annual Meeting

for

Almost 450 bankers, associate members, family and friends enjoyed each other’s company at the 2019 SCBA Annual Meeting. This year’s meeting was held at the spectacular Sanctuary at Kiawah Island on June 9-12. We had an outstanding lineup of speakers for the 119th Annual Meeting. Speakers at this year’s event included ABA President and CEO Rob Nichols, former Federal Reserve, 5th District CEO Jeff Lacker, and “futurist” Mark Zinder. First Lieutenant Patrick Cleburne “Clebe” McClary III, USMA, Retired led us in an inspirational Prayer Breakfast. There were over 30 exhibitors presenting their valuable product and services to our bankers. New officers sworn in included 2019-20 Chairman Sam Erwin, Chairman-Elect James Bennett, First Vice Chairman, K. Wayne Wicker and Treasurer, Fleetwood S. Hassell. Please mark your calendars now for next year’s meeting for June 14-17, 2020 at The Broadmoor.

S U M M E R 2 0 1 9 • PALMETTO BANKER

S U M M E R 2 0 1 9 â&#x20AC;¢ PALMETTO BANKER

SCBA Annual Convention

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SCBA Annual Convention

Young Banker of the Year Blake Taylor, Executive Vice President and Columbia Market Executive for Southern First Bank has been named the 2019 SCBA Outstanding Young Banker of the Year. This award — the highest honor given by the South Carolina Banking industry — was presented during the annual meeting on June 10, 2019. The Past Chairman’s Club of the SCBA review nominations from member banks and have awarded one deserving banker each year since 1970. Past recipients of this prestigious honor include many prominent South Carolina bankers who continued to advance in their careers to the highest level of leadership within their bank. 22

Justin Strickland, President of Southern First Bank nominated Blake and said in the nomination form:

“Blake is one of the top performers at Southern First. He demonstrates exceptional leadership skills. His character and work ethic places him at a high level”. Blake joined Southern First Bank in 2007. He began his banking career in 2002 shortly after graduation from the University of South Carolina and a brief period of playing professional baseball.

S U M M E R 2 0 1 9 • PALMETTO BANKER

In addition to his role at Southern First, Blake has been active in the South Carolina Bankers Association. He has been an active member of the Young Bankers Division and became Chairman of this division. He has also served as the Vice Chairman of the American Bankers Association’s Emerging Leaders Advisory Board. Blake is involved in numerous community organizations in the Columbia area. Blake is married to the former Kieley Duncan of Spartanburg and they have two daughters and a son.

Outstanding Young Banker 1970 *James R. Fowler, Capital Bank & Trust, Belton

1995 *Sterling J.U. Laffitte The Exchange Bank, Estill

1971 Robert V. Royall The C&S National Bank of SC, Columbia

1996 R. Thornwell Dunlap III The County Bank, Greenwood

1972 *Hugh M. Chapman The C&S National Bank of SC, Columbia

1997 Michael C. Crapps First Community Bank, Lexington

1973 *Arthur M. Bjontegard, Jr. South Carolina National Bank, Columbia

1998 James A. Bennett First Citizens Bank, Columbia

1974 John G.P. Boatwright Bankers Trust of South Carolina, Columbia

1999 F. Justin Strickland Carolina First Bank, Columbia

1975 L. Leon Patterson The Palmetto Bank, Laurens

2000 Robert R. Hill, Jr. First National Bank, Orangeburg

1976 Paul F. Holcomb, Jr. South Carolina National Bank, Columbia

2001 L. Andrew Westbrook III BB&T of South Carolina, Spartanburg

1977 W. Douglas King First National Bank of SC, Columbia

2002 Peter M. Bristow First Citizens Bank, Columbia

1978 *Henry S. Laffitte Carolina Commercial Bank, Allendale

2003 J. Barry Ham The Bank of Clarendon, Manning

1979 Claude E. Surface, Jr. The Bank of Beaufort, Beaufort

2004 W. Gerald Stevens CapitalBank, Greenwood

1980 Lloyd I. Hendricks Southern Bank & Trust Company, Columbia

2005 Samuel L. Erwin Community Bancshares, Inc., Orangeburg

1981 Mason Y. Garrett Carolina National Bank, Easley

2006 Edward McKelvey, Jr. First Federal, Charleston

1982 J. Harold Chandler The C&S National Bank of SC, Columbia

2007 Kitty B. Payne First National Bank of the South, Spartanburg

1983 Joel A. Smith III Bankers Trust of South Carolina, Columbia

2008 Michael E. Edens The National Bank of S.C., Columbia

1984 Douglas T. Yeates Republic National Bank, Columbia

2009 R. Scott Plyler South Atlantic Bank, Myrtle Beach

1985 Stephen L. Chryst The Anchor Bank, Myrtle Beach

2010 Gray L. Henderson Palmetto State Bank, Hampton

1986 R. Charles Eldridge, Jr. South Carolina National Bank, Columbia

2011 Tyler B. Hudson NBSC, Columbia

1987 G. Anderson Douglas, Jr. Rock Hill National Bank, Rock Hill

2012 J. Holt Chetwood Wells Fargo, Columbia

1988 Mack I. Whittle, Jr. Carolina First Bank, Greenville

2013 Glenn D. Buddin, Jr. Blue Ridge Bank, Walhalla

1989 Nancy L. Grden The C&S National Bank of SC, Columbia 1990 William C. Barker South Carolina National Bank, Columbia 1991 John S. Poole NCNB National Bank of SC, Spartanburg 1992 W. Jennings Duncan The Conway National Bank, Conway 1993 Richard A. Shirley Southern National Bank of SC, Anderson 1994 Fred L. Green III The National Bank of SC, Columbia

2014 Kevin W. Lindler First Citizens, Columbia 2015 R. Montague Laffitte III South State Bank, Columbia 2016 Jennifer T. Jones Citizens Building & Loan, Greer 2017 John C. Griggs III NBSC, a division of Synovus, Columbia 2018 Joseph A. Painter First Community Bank, Columbia 2019 Blake G. Taylor Southern First Bank, Columbia *Deceased

S U M M E R 2 0 1 9 â&#x20AC;˘ PALMETTO BANKER

SCBA Annual Convention

50 35

Half -Century Club

THE SCBA CONGRATULATES THOSE WHO HAVE SERVED 50 YEARS Janice N. Bonnett South State Bank, Loan Assistant

Samuel R. Small, Sr. First Palmetto Bank, Chief Executive Officer

B. Craig Robinson CresCom Bank, Business Development Officer

Ronald L. Strawn The Bank of South Carolina, Senior Vice President

R. Bruce White Bank of Travelers Rest, Chief Executive Officer

Thirty Five-Year Club

THE SCBA CONGRATULATES THOSE WHO HAVE SERVED 35 YEARS Elizabeth K. Anthony CresCom Bank, Senior Retail Mortgage Underwriter James A. Bennett First Citizens Bank, Area Executive Vice President Gail B. Brazell First Citizens Bank, Executive Assistant Cindy Brewer GrandSouth Bank, Head Teller Patty Brownlee First Community Bank, Customer Service Representative / Office Manager

Martha E. Duncan Palmetto State Bank, Head Teller Donna J. Emens Bank of America, Document Administrator III Vicki M. Faile Bank of America, Business, Control Analyst Theresa “Terri” P. Gaillard South State Bank, Deposit Operations Team Leader Wanda H. Galloway First Citizens Bank, Sales & Service Rep II Cheryl A. Gambrell BB&T, Branch Banker

Sharon W. Bryant First Citizens Bank, Regional President

Paula Gore CresCom Bank, Branch Manager

Peggy D. Burger South State Bank, Teller II Ellen Cavanaugh CresCom Bank, Director of Loan Administration Candace “Candy” L. Cherry South Atlantic Bank, SVP Corporate Liaison Laura Childs Wells Fargo, Lead Teller Misty Church CresCom Bank, Customer Service Rep Kenneth “Ken” J. Clair South State Bank, SVP, Consumer Loan Administrator

James Barry Ham Bank of Clarendon, President

Barbara A. Davis First Citizens Bank, Sales & Service Rep II

Daniel “Dan” B. Minnis South State Bank, SVP, Protfolio Review Manager

Sonya Arnold Motes Bank of America, Wealth Management Advisor

Douglas R. Mount Bank of America, Document Administrator III Samuel Mark Munn Bank of America, Private Client Manager II J. Ted Nissen First Community Bank, Chief Commercial & Retail Banking Officer Sam Peden GrandSouth Bank, Market President Fountain Inn

Carey Harris GrandSouth Bank, Executive Assist. to Midlands/Coastal Regional Executive

John R. Peters III Palmetto State Bank, Vice President Compliance

Joanna Hooker First Community Bank, Executive Assistant

Rob Phillips GrandSouth Bank, Midlands/Coastal Regional Executive

DeeDee Kehl First Community Bank, Market Executive Dana Magic First Community Bank, Teller Bobbie C. Martin South State Bank, Commercial Loan Assistant II J. Robert Mauney Bank of America, Wealth Management Advisor

Lisa S. DeHaven South State Bank, SVP, Director of Ops and Compliance

Susan L. McLeod South State Bank, AVP, Consumer Lender

Michelle M. Harring South State Bank, Senior Accountant II

W. Gerould Clark Bank of America, Senior Financial Advisor Bonnie Crowley Wells Fargo, Personal Banker

Duncan L. McGoogan, Jr. BB&T, Business Services Officer

S U M M E R 2 0 1 9 • PALMETTO BANKER

Henry Phillips McDowell Bank of America, Senior Consultant

Vivien Richardson First Community Bank, Teller Douglas H. Sass The Bank of South Carolina, Executive Vice President Phyllis E. Shropshier Carolina Alliance Bank, Banking Officer/ Deposit Operations Manager Gregory R. Shuler The Bank of South Carolina, Senior Vice President

Thirty Five-Year Club Betty Jo Skelton Bank of America, Relationship Manager

Elaine Steading GrandSouth Bank, Loan Administration Specialist

James H. Sloan First Citizens Bank, Sales & Service Rep II

Kendall R. Stewart Bank of Clarendon, CFO

Gina M. Smith Carolina Alliance Bank, Assistant VP/Accounting Manager

Gail H. Stone Palmetto State Bank, CSR

Lisa H. Smith Carolina Alliance Bank, Client Services Representative Gloria V. Staley South State Bank, Loan Booking Specialist

(continued)

Renee Wilcox CresCom Bank, Loan Processor Allen S. Williams Anderson Brothers Bank, Maintenance John B. Wood GrandSouth Bank, Upstate Regional Executive

Lydia B. Suggs South State Bank, Banking Officer, Residential Funding Supervisor

Jobeth K. Woods BB&T, Senior Teller W. Jane Youmans Palmetto State Bank, Teller

Rachel Weatherford First Community Bank, Business Services Specialist

In Memoriam

REMEMBERING THOSE WHO ARE NO LONGER WITH US Daniel “Chip” Amaker Business Services Officer, BB&T, Columbia W. C. Bennett CEO, Arthur State Bank, Union Phyllis D. Brosh Senior Mortgage Underwriter, First Reliance Bank, Florence David E. Burgess Credit Officer, GrandSouth Bank, Greenville Raymond S. Caughman Chairman, BB&T/The Lexington State Bank, Lexington, Past Chairman, SCBA Susan T. Caulder Night Processor, Anderson Brothers Bank, Mullins C. Ronald Coward Board Member, The Bank of South Carolina, Charleston

Larry D. Cunningham Loan Compliance Officer, Anderson Brothers Bank, Hemingway

R. Montague “Monk” Laffitte Vice Chairman, Palmetto State Bank, Estill, Past Chairman, SCBA

Sharon Frizzell Mortgage Closing Coordinator, South State Bank, Columbia

James “Jamie” Edward Lawson VP, Branch Manager, South State Bank, Florence

Harry Gause Maintenance, Anderson Brothers Bank, Mullins

W. D. Rhoad III Secretary/Treasurer, Home Federal Savings & Loan, Bamberg

Cliff D. Girard Report Analyst, South State Bank, Charleston

James H. Rozier, Jr. Director, Farmers & Merchants Bank of South Carolina, Holly Hill

J. Virgil Hicks, Sr. Chairman of the Board, Home Federal Savings & Loan, Bamberg Frank Holding, Sr. Chairman, First Citizens Bank, Smithfield, NC

Sidney Shealy Business Banker, BB&T, Chapin Angela Shelley FSR, First Citizens Bank, Mullins

Alan S. Hovermale Indirect Buyer, Anderson Brothers Bank, Kingstree

S U M M E R 2 0 1 9 • PALMETTO BANKER

Young Bankers Division

The South Carolina Bankers Association’s Young Bankers Division is excited to host the first BankPAC Sporting Clays Tournament on Wednesday, November 20, 2019. The tournament will take place at The Palmetto Shooting Complex in Edgefield, SC. What better way to spend the day than rotating through 15 challenging sporting clays stations with your peers in the banking industry?! This is also a great opportunity to invite legislators to join us and strengthen relationships with our states lawmakers. Since the SCBA’s main initiative is government relations it makes the most sense for the Young Bankers Division to get involved in the Association’s grassroots efforts. This particular event supports the SCBA State BankPAC which contributes only to candidates running for state-level office such as the South Carolina General Assembly, The Governor’s office and Constitutional officers. This is a great way to support the banking industry.

Don’t miss this inaugural event – it will be a BLAST!

QUESTIONS: Contact Carolyn L. Bradley, Young Bankers Division or Donna S. Taylor, BankPAC

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Bankers School

2019

South Carolina Bankers School July 7-12, students congregated on the campus at Lander University in Greenwood, SC for a week-long, whirlwind of study during the 2019 session. As usual, they found comradery, dynamic instructors and comprehensive course offerings. It was an exciting time to see familiar faces, and welcome 66 new students to the program. In total, there were 184 students participating in the School this year, the largest student body on Lander’s campus since 2010. In today’s competitive environment, it is critical for bankers to remain knowledgeable in the banking sector. One of the most

able to work closely with some truly exceptional bankers and officers from our South Carolina Bankers Association who are committed to educating and developing the future leaders in our state’s industry.”

comprehensive approaches to ensuring the professional and personal growth of a banking executive is through the completion of the South Carolina Bankers School.

Chairman of the School, Ford P. Menefee, The Bank of South Carolina, had this to say about the 2019 session, “My year as Chair of the South Carolina Bankers School has been one of the highlights of my career as it afforded me the opportunity to obtain an insiders perspective on the current South Carolina banking industry leadership and I was

One of the School’s greatest assets is its faculty, which is composed of the “best of the best” from the banking, professional and academic worlds. Among the classes taught by these instructors were Economics/Money and Banking, Understanding CAMELS Ratings/Working with Regulators, Leadership, Effective

S U M M E R 2 0 1 9 • PALMETTO BANKER

Bankers School Negotiations, Bank Investments, and the crown jewel of the School, BankExec. BankExec allows participants to virtually run a mid-sized commercial bank. Third year students were divided into teams to compete against one another. Exercises in asset/liability management, capital planning, gap analysis, accounting and taxes, marketing and resource allocation, forecasting and planning, economics, and the pricing of bank services, are reinforced by “what-if” scenarios that demonstrate the impact to the balance sheet and income statement of management’s decisions. BankExec provides a bigger picture of the bank by having teams work together to: run a virtual bank in a changing economic and regulatory environment; test pricing and funding decisions to see their impact on key indicators like net interest margin and stock price; learn how balance sheet structure influences profitability, including net interest margin and stock price and see how decisions made in one area of the bank affect others.

Hugh C. Lane, Jr., Chairman, The Bank of South Carolina, was the keynote speaker on Tuesday evening. He shared his stories and experiences about “Leadership” with the student body. After two full days of classes, Mr. Lane’s message was inspiring and uplifting!

On Friday morning, while the First and Second year students took their exams, Third Year students presented their banks’ Annual Report to “shareholders.” Several SCBS Board members and Fleetwood Hassell, President and CEO of The Bank of South Carolina acted as judges.

Thursday evening’s graduation was exceptional. Tangible evidence of the importance of the School was seen by the many CEOs and bank management teams who were in attendance to support and celebrate 55 graduates who received their diplomas. Lynn G. Burgess, South State Bank, was named the Lillie H. Magalis recipient, an honor awarded to the student with the highest cumulative average over the course of the three years. First Year class officers were also announced with Mollie Sandman, South Atlantic Bank and Jeff Williamson, Anderson Brothers Bank being chosen as class president and vice president, respectively.

Even though the schedule and work are demanding, the School provides time for building relationships through socialization outside of the classroom. The networking possibilities and knowledge gained by attending the SCBS helps lay the foundation for bankers to continue on to highly successful careers while also cultivating friendships that will last a lifetime.

Congratulations to the winning teams: COMMUNITY A: “ENDEAVOR BANK” Chelsea Black, South State Bank Justin Chastain, Strategy Corps. Chastity Ginn, Palmetto State Bank Maggie Harken, The Bank of South Carolina Ethan Sartain, Sandhills Bank

COMMUNITY B: “PLUS ONE BANK AND TRUST” Amber Bell, Coastal Carolina National Bank Bart Berger, South State Bank Danielle Fields, Countybank Nathan Hughes, United Community Bank Angelo Parker, Federal Reserve Bank of Richmond

Next year’s school session will take place Sunday, July 12 – Friday, July 17, under the leadership of Annette L. Scott, CFO/EVP of Countybank!

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Bankers School

S U M M E R 2 0 1 9 â&#x20AC;¢ PALMETTO BANKER

Look Again BDC’s Second Look Program

Do you have a good quality loan request that you can’t get done at your bank? BDC can help. BDC’s Second Look Program could give you the opportunity for a “second look” on loans that just can’t be approved through your bank due to high LTV/LTC, low down payment, reliance on projections, industry risk, or insufficient collateral. If you have a loan request that needs a second look, contact one of our lenders today to find out if one of our innovative loan programs can help get your loan approved.

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Ted Crosson Vice President SBA Lending Officer TCrosson@BDCofSC.org 803.744.0312

A Leader in Small Business Lending

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New

Members

Welcome

We are fortunate to have an active and engaged roster Associate members and proudly welcome these new members:

t NEW

ASSOCIATE MEMBERS AaSys Group, Inc. 11301 North US Highway 301, #106 Thonotosassa, FL 33592 813.246.4757 www.aasysgroup.com Cheryl Buntin 11301 Norh US Highway 301, #106 Thonotosassa, FL 33592 813.246.4757 cbuntin@aasysgroup.com

Crestmoor Capital Building J-201 2301 S. Capital of Texas Highway Austin, TX 78746 512.450.5170 www.crestmoorcapital.com Wes Wells Building J-201 2301 S. Capital of Texas Highway Austin, TX 78746 803.920.6832 wes@crestmoorcapital.com

J. Outlaw Consulting 303 Newport Hill Ct. Lexington, SC 29072 803.730.8464 joutlawconsulting.com

Mr. Jimmy Outlaw 303 Newport Hill Ct. Lexington, SC 29072 803.730.8464 jimmy@outlawconsulting.com

S U M M E R 2 0 1 9 â&#x20AC;˘ PALMETTO BANKER

AaSys Group helps Financial Institutions optimize the use of technology! Our Bank Operations Specialists manage the core evaluation and contract negotiation process. Additionally, Business Process Reviews are geared toward maximizing operational efficiencies. AaSys Network Support division provides both onsite and remote Help Desk support. We monitor the health of our clientâ&#x20AC;&#x2122;s networks and provide patch management services. With an area of expertise in Disaster Recovery planning, our engineers design and implement virtualization projects as well as enterprise backup solutions. Our engineering terms works with banks to meet regulatory, security, compliance and functionality mandates. The AaSys Help Desk rounds out the technology support offerings by assisting employees with day-to-day issues.

Crestmoor Capital Partners is a specialty merchant banking company that partners with financial institutions to provide creative solutions for non-accrual and transitional credits, in addition to OREO and Bank-Owned Assets. Crestmoor invests its own capital into every deal, and creates a strategic path forward for each problematic scenario with a dual mandate of maximum recovery and the shortest possible timeframe. Crestmoor works with each bank partner to provide full-service financial restructuring, capital investment, and asset management for our proprietary repositioning programs.

J. Outlaw Consulting is an agent for your financial institution, comparing vendor programs, reviewing contracts, and negotiating with check vendors to reduce cost and bring in new revenue. Over 35 years in the financial services industry gives us the experience to expertly negotiate on your behalf, saving clients millions of dollars. Our process frees up your team to focus on your business. Invest an hour upfront to provide contract details, and business goals. J. Outlaw manages every detail of contract negotiations and presents final results. One more hour to review is all it takes. We also provide Marketing & Creative Services with packages to help propel your website, social media, or email marketing to the next level.

nCino 6770 Parker Farm Drive, Suite 300 Wilmington, NC 28405 888.676.2466 www.ncino.com

nCino is the worldwide leader in cloud banking. With its Bank Operating System, built on the Salesforce platform, financial institutions can deliver the speed and digital experience that customers expect, backed by the quality and transparency that bankers need. Follow @nCino or visit www.ncino.com.

Chris Soule 6770 Parker Farm Drive, Suite 300 Wilmington, NC 28405 910.444.2255 chris.soule@ncino.com

Sound Payments 50 N. Laura Street, Ste. 2550 Jacksonville, FL 32202 888.728.1688 www.soundpayments.com James “Bucky” Porter 1214 Hyatt Avenue Columbia, SC 29203 864.417.5816 bucky.p@soundpayments.com

Source4 8936 North Pointe Executive Park Dr. Suite 100 Huntersville, NC 28078 704.602.0110 www.source4.com Dan Siadk 8936 North Pointe Executive Park Dr. Suite 100 Huntersville, NC 28078 704.602.0110 www.source4.com

Sound Payments Banking Technology Solutions (BTS) provides best-in-class branch automation and online and mobile banking technology solutions that are normally only available at larger financial institutions. Our mission is to serve as the leading provider of technology solutions in the financial services industry by continuously delivering revolutionary, value-added solutions that provide reliable, sustainable, and customizable technologies. Sound Payments BTS is a part of our multi-channel, diversified technology company that delivers innovative technology and software in the Payments, Healthcare and Financial Services Industries. Our kiosks that allow for branch automation perform tasks that a teller handles such as depositing bulk checks and cash, dispensing cash with various mixes, coin dispensing, transferring funds between accounts, and issuing cashier’s checks. The online and mobile banking platform has all the features that you would find at a larger bank (and more) but at a price that is more affordable for small and medium sized banks, including remote and mobile deposit, advanced bill pay features and enhanced security and account notifications.

Source4, a National Company, specializes in “Integrated Business, Marketing and Fulfillment Solutions for Financial Institutions. Our IMAGE E-Supply Chain/Marketing Portal is being utilized by over 100 Financial Institutions to: • Reduce their “non-interest expenses” • Reduce overall operational and marketing expenses • Streamline the internal ordering and accounting processes • Control budgets by cost centers

With all of the evolving financial industry changes, we are thankful for business alliances that meet our members’ needs. The SCBA is dedicated to supporting and promoting cutting-edge industry providers to our member banks. For more information about Associate Membership, please contact SCBA Senior Vice President Carolyn Laffitte Bradley by email at carolynbradley@scbankers.org To view our Associate Membership Directory, click here.

S U M M E R 2 0 1 9 • PALMETTO BANKER

Personal

Transactions

Rhett Calcutt

Vicki Coleman

Tammy Strickland

Eric Schelble

Thomas Anderson

J. Benjamin Black

AMERIS BANK

CRESCOM BANK

SOUTH STATE BANK

Mze Wilkins has joined the Board of Directors of Business Development Corporation (BDC) of SC.

CresCom Bank expands its Commercial Lending Team with the introduction of Clay Hughes as Senior Vice President and Homebuilder Finance and Commercial Real Estate Specialist in the Charleston Market.

Crystal Farrow has joined South State Bank’s Private Banking team.

ANDERSON BROTHERS BANK

SOUTHERN FIRST BANK

Rhett Calcutt has joined Anderson Brothers Bank as Loan Officer and will be based in the bank’s Florence 2nd Loop Office.

Alex Wetherall has been promoted to Commercial Lending Officer in the Charleston market.

Michael D. Dowling has been promoted to Chief Operating Officer. He will continue to serve as Chief Financial Officer of Southern First Bank.

Anderson Brothers Bank announces the addition of Vicki Coleman as Consumer Loan Officer. Coleman will be based in the bank’s Mullins office at 232 West McIntyre Street.

DIXON HUGHES GOODMAN

UNITED COMMUNITY BANK

Jon Tomberlin has been appointed Managing Partner effective August 1.

Eric Schelble has joined United Community Bank in Columbia as Vice President/Commercial Relationship Manager.

Anderson Brothers Bank announces the promotion of Tammy Strickland as Branch Operations Coordinator of the Loris 701 office.

FIRST NATIONAL BANK

COMMUNITY FIRST BANK

First National Bank announced that it has hired Leonard “Len” L. Hutchinson III, as Regional Market Executive and President of the Bank’s Charleston and South Carolina markets.

John Owens has been hired as President of SeaTrust Mortgage, a subsidiary of Community First Bank.

NELSON MULLINS RILEY & SCARBOROUGH

COUNTYBANK Brad Cantrell has joined Countybank as Vice President, SBA Business Development Officer in Greenville. Scott Presley has joined Countybank as VP, Director of Residential Construction Lending.

Four Nelson Mullins Attorneys were selected for Columbia Business Monthly’s annual Legal Elite list. The honorees are George Cauthen in Bankruptcy/ Creditor’s Rights Law, Jamey Goldin in Government Law, John Moore in Banking and Finance Law, and Patrick Quinn in Consumer Products/Retail Law.

SOUTH CAROLINA BOARD OF FINANIAL INSTITUTIONS Senior Examiner Remonia Felix has been promoted to Chief Examiner. 36

S U M M E R 2 0 1 9 • PALMETTO BANKER

Shannon Stephens, Austin McVay and Michael Glenn have joined United Community Bank and will spearhead operations in the Midlands, introducing the bank’s commercial lending capabilities to the market.

WELLS FARGO Wells Fargo Commercial Banking announced that Thomas Anderson has been tapped to lead commercial banking operations for South Carolina. Wells Fargo Home Mortgage has named J. Benjamin Black as a Home Mortgage Consultant in its Charleston Office.

Credible. Timely. Competitive. Compass South Appraisals specializes in appraising commercial and agricultural properties. There are very few appraisal companies that seek this kind of specialization.

Locations Served • Agriculture and Timberland appraisals are provided in all counties below • Commercial property appraisals provided in the blue highlighted counties below

Typical Examples Include • Offices • Retail Spaces • Industrial Buildings • CAGE Animal Operations • Agricultural & Timberland • Orchards

843-538-6814 | PO Box 1766, Walterboro, SC 29488 | www.CompassSouthAppraisals.com Email Requests to: officemanager@CompassSouth.com S U M M E R 2 0 1 9 • PALMETTO BANKER

Banking News

CAROLINA FINANCIAL/CAROLINA TRUST Carolina Financial Corporation and Carolina Trust BancShares, Inc., the parent company of Carolina Trust Bank, jointly announced the signing of a definitive merger agreement. Jerry Ocheltree, President and CEO of Carolina Trust, will be named President of CresCom Bank’s North Carolina Commercial Banking Operations. Jonathan Rhyne, Carolina Trust’s current Chairman of the Board, will be appointed to the Carolina Financial and CresCom Bank Boards of Directors. COASTAL STATES BANK Coastal States Bank (CSB) is pleased to unveil its new website and redesigned brand. The new website (www. coastalstatesbank.com) features user-friendly navigation, enhanced functionality, personalized tools and resources, and a modern design that emphasizes the CSB brand. As part of the brand refresh, Foothills Community Bank, which previously operated as a division of Coastal States Bank, will be rebranded as CSB.

S U M M E R 2 0 1 9 • PALMETTO BANKER

3 SC BANKS NAMED TO FORBES’ 2019 “BEST IN-STATE BANKS CresCom Bank, Conway National Bank and South State Bank, have been named to Forbes’ 2019 “Best-in-State Banks” list for South Carolina. This is the second consecutive year South State has been named to the list. UNITED COMMUNITY BANK United Community Bank is proud to have been named one of the Best Banks to Work For by American Banker and Best Companies Group.

2019

Calendar of Events OCTOBER 2019 Young Bankers Division Annual Scholarship Golf Tournament October 7 Columbia Country Club, Blythewood, SC

Community Bankers Forum October 24 Marriott Hotel Downtown, Columbia, SC

For Bankers, Associate Members and Vendors. Member=$125 / Non-Member=$175

For CEOs, CFOs, Senior executive management teams and associate members. Member=$230 / Non-Member=$485

Fall Compliance Conference October 10 Courtyard Marriott at USC, Columbia, SC

Consumer Lending School October 30-31 Springhill Suites Downtown Vista, Columbia, SC

For Executive risk-management teams and regulatory compliance officers. Member=$295 / Non-Member=$785

For Consumer Loan Officers, Branch Managers, Assistant Branch Managers, Personal Bankers, Management Trainees and Collection Officers. Member=$515 / Non-Member=$845

NOVEMBER 2019 Young Bankers Division BankPAC Sporting Clays Tournament Fundraiser November 20 Palmetto Shooting Complex, Edgefield, SC For Bankers, Associate Members and Vendors. Member=$125 / Non-Member=$175

DECEMBER

2019

Credit Conference December 3 Courtyard Marriott at USC, Columbia, SC

Call Report Seminar December 5 Graduate Columbia (formerly the Inn at USC), Columbia, SC

For CEOs, lenders and credit officers. Member=$295 / Non-Member=$750

For Operations officers, CEOs, CFOs, internal auditors, and anyone who is responsible for the preparation, verification or certification of the call reports. Member=$280 / Non-Member=$675 All registration fees are subject to change.

SCBA WEBINARS: Another source for your training needs! The SCBA has partnered with Total Training Solutions to provide webinars to your financial institution on topics most important to the success and compliance of your bank. Whatever your online training needs may be, SCBA/TTS can assist you. We have webinars ranging from customer service to sales to underwritingâ&#x20AC;&#x201D;and everything in between. We canâ&#x20AC;&#x2122;t wait to show you how we can make your job easier! Visit scbankers.org/webinars to learn more about the SCBA/TTS webinars and to see the schedule for a myriad of topics. There are over 63 webinars to choose from.

HERE IS A SAMPLING OF UPCOMING WEBINARS: OCTOBER 29...........How to Buy Fintech, Partnering for Innovation NOVEMBER 12........2019 Industry Update for Corporate Trustees NOVEMBER 20........The Role of Consultants in Successful Model Validation DECEMBER 5...........Recent Developments in Estate and Trust Administration 2019 DECEMBER 17........Drive Stronger Leads with Digital Marketing

Visit www.scbankers.org for new webinars added daily.

2009 Park Street â&#x20AC;¢ PO Box 1483 Columbia, SC 29202-1483

Save the date The 2020 SCBA Annual Convention

JUNE 14-17, 2020 | COLORADO SPRINGS, COLORADO