Palmetto Banker Issue 1, 2024

SCBA Members Proudly Advocate for South Carolina Banking with Senator Tim Scott and Others at the 2024 ABA Washington Summit

803.779.0850

2023-24 SCBA EXECUTIVE COMMITTEE

Chairman ..................................................................................................

Chair-Elect

First Vice Chairman

Treasurer

Boyd B. Jones, Synovus

Jennifer T. Jones, CBL State Savings Bank

H. Richard Sturm, Ameris Bank

Samuel R. Small, Jr., First Palmetto Bank

Immediate Past Chairman Fleetwood S. Hassell, The Bank of South Carolina

2023-24 SCBA BOARD OF DIRECTORS

Second Immediate Past Chairman

President & CEO

Directors

K. Wayne Wicker, South Atlantic Bank

Fred L. Green III, South Carolina Bankers Association

Marc J. Bogan, Bank of the Lowcountry

Stacy B. Brandon, Bank of America

Renee R. Brooks, SouthState Bank

William O. Buyck, Jr., Bank of Clarendon

Allan B. Carter, Kingstree Federal Savings & Loan

Michael E. Edens, First Reliance Bank

Mary D. Garcia, Pinnacle Financial Partners

M. J. Huggins III, United Bank

Coleman A. Kirven, The Peoples Bank

John M. Leighton, SouthState Bank

Benita E. Lefft, Optus Bank

Michael M. Sarvis, First National Bank

Kevin M. Short, TD Bank, N.A.

B. Oneal Staples, Ameris Bank

Philip R. Wahl II, Security Federal Bank

202 3-24 COMMUNITY BANKERS DIVISION BOARD

Chairman

Immediate Past Chairman

Directors

Michael E. Edens, First Reliance Bank

Curtis T. Evatt, Oconee Federal Savings & Loan

Kenneth M. Harper, Countybank

William J. Holmes III, First Carolina Bank

Jamin M. Hujik, The Southern Bank

Joseph S. Kassim, First Capital Bank

Coleman A. Kirven, The Peoples Bank

Brooks Melton, Beacon Community Bank

Dominik Mjartan, Optus Bank

R. Scott Plyler, South Atlantic Bank

James B. Smith, The Citizens Bank

Eugene H. Walpole IV, The Bank of South Carolina

2023-24 BANKERS SCHOOL BOARD

Chairman

Chairman-Elect

Immediate Past Chairman

John M. Leighton, SouthState Bank

Robert P. Hucks II, Coastal Carolina National Bank

Directors...............................................................

Course Coordinators

J. Reeves Skeen, First Citizens Bank

Thomas C. Anderson, Jr., First Palmetto Bank

Nathan T. Crowe, Security Federal Bank

Mary D. Garcia, Pinnacle Financial Partners

Kenneth M. Harper, Countybank

William R. Johnston, Southern First Bank

Joseph A. Painter, First Community Bank

Michelle B. Seaver, United Community Bank

Allison P. Stout, South Atlantic Bank

Charles K. Talbert, Bank of the Lowcountry

James R. Clarkson

John C. Griggs III, Synovus

Ford P. Menefee, The Bank of South Carolina

Marvin E. Robinson, Jr., Ameris Bank

2023-24 YOUNG BANKERS DIVISION BOARD OF DIRECTORS

Chairman B. Oneal Staples, Ameris Bank

Chairman-Elect Othniel W. Laffitte, First Bank

First Vice Chair

Immediate Past Chairman

Directors........................................................

Margi M. Fleming, The Citizens Bank

Rufus T. Dunlap V, Countybank

M. Charles Abbott, Jr., Carolina Bank & Trust Co.

Eugene A. Gardner IV, TD Bank, N.A.

Margaret C. Harken, The Bank of South Carolina

Vaughan R. Dozier, Jr., First Community Bank

Blake H. Dressler, First Reliance Bank

Austin J. Goforth, First Palmetto Bank

Lauren D. Greene, First Citizens Bank

Mallory Holley, Security Federal Bank

Joseph H. Hyman, The Conway National Bank

Everette J. Livingston, First Citizens Bank

Ashleigh Oxner Malm, Arthur State Bank

J. Jefferson Manning, SouthState Bank

S. Alexis Matthews, The Peoples Bank

Albert A. Munn V, South Atlantic Bank

W. Clarke Walker, Southern First Bank

SCBA Staff

President & CEO

Fred L. Green III

Chief Operating Officer ...................... Richards H. Green

Senior Vice President

Carolyn L. Bradley

Senior Vice President E. Anne Gillespie

Senior Vice President & Counsel A. O’Neil Rashley, Jr., Esq.

Accounting Officer

Communications & Engagement

Administrative Assistant

Israel D. Reeves

Diane Krell

Bonnie E. Nelson

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Consequences...

Part of parenting is teaching your young children what they should and shouldn’t do. When our children were young, I would explain the rules and what would happen if they ignored them. Somewhere along the way I started using the expression “you’ll pay the consequences” if they broke the rules. That expression worked for our older children, but not our younger ones. I recall one conversation with our youngest son and he asked, “who are the consequences?” I guess in his mind, he was going to break the rules and just needed to know who he would have to pay!

I learned my lesson, so today I try to do a better job of explaining the consequences of certain legislative and regulatory issues. What I have found is my conversations and approach are different on state issues than federal issues.

In our statehouse, we enjoy a good reputation among all of our elected officials. This took decades of forging relationships based on trust and honesty. I can’t think of a single piece of legislation during my tenure that was intentionally written to cause negative consequences to our industry. I can, however, think of dozens of bills written or contemplated that had the unintentional consequence of hurting our industry. When this happens we meet with the sponsors of the bill and explain that certain items in the legislation would have a negative impact on our industry and we offer suggestions on how to improve the bill while eliminating these unintended consequences.

This session we met with sponsors of a bill, that if enacted as written, would be harmful to banks. We suggested changes in language, process, and penalties and our recommendations were fully accepted after the sponsors learned more about the unintentional negative impact.

This is how it should work, and it does at our statehouse. This is not the case, however, in Washington.

The Credit Card Competition Act, AKA Duban 2.0, was promoted as a benefit to consumers. Bankers know, though, this was written to favor one industry, large retailer, to the detriment of the banking industry. Bankers have pointed out that it doesn’t benefit consumers as promised, but would actually harm them by reducing the security of the transaction and eliminating rewards programs. Maybe the harm to consumers is an unintentional consequence.

An even bigger concern than harmful legislation is the deluge of recent bank regulations that have an even greater impact on our industry. Almost every new regulation has the unintentional consequence of hurting our bank customers. I talk to senior regulators fairly frequently. This year I’ve had two calls with the Director of the

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

CFPB with his stated intention of getting feedback from our industry. On our first call I discussed the burden and expense of complying with the Small Business Data Collection Rule (1071) and pointed out that it would have the unintentional consequence of harming, not helping, small businesses. The very low threshold of only 100 transactions a year to trigger a bank’s reporting probably covers 99% of the banks in the country. I pointed out that the cost of compliance relative to the volume of small business loans would have the unintended consequence of many banks no longer offering small business loans.

Most recently, Director Chopra and I talked about the CFPB proposal to apply Reg.Z to overdraft services. As proposed, banks with assets over $10 billion would have to calculate the APR based on the fee charged relative to dollar amount and time outstanding. This, of course, is impossible to do so the CFPB has offered an alternative to reduce the overdraft fee to an amount they set ranging from $3 – 14.

Once again, their stated intent is to benefit the consumer, but I pointed out the unintentional consequence is harm to the consumer. I suspect many banks around the country will determine it is not worth the risk of paying overdrafts and would make blanket policies to return each one. I think it will also cause banks to raise their minimum opening requirements which would have the unintentional consequence of increasing the level of the unbanked and underbanked.

Of course, the rebuttal was the rule would only apply to banks with assets of $10 billion and above. The reality, and maybe another unintended consequence, is that it would apply to all banks because of the potential image hit of a smaller institution charging more than their $10 billion competitors.

Included in this edition of the Palmetto Banker is a section on our most recent Washington trip. We had over 30 South Carolina bankers make visits on the hill to members of our delegation describing these issues plus many more. I hope that over time, through our efforts and those of bankers throughout our country, we can positively impact legislation and regulation that does so much harm to the customer we serve.

I can’t tell you how important it is for our bankers to make this trip and have meaningful conversations with our delegation. Thanks to everyone that joined us this year and those that have participated in prior years. This consistent dialog helps build the relationships and trust with the policy makers in Washington. That trust and confidence in us can lead to meaningful change.

THE REAL LOSERS

in the

Reg II Fight

In 2010, the Durbin Amendment was dropped into Dodd-Frank in the dead of night, and without so much as a hearing, the government imposed restrictions and price controls on debit cards and connected checking accounts. Bankers warned that mega retailers would not pass on any savings at the checkout, and that bank customers would ultimately foot the bill in lost rewards. Both predictions have proven true, but for reasons clear only to the Federal Reserve, the government is poised to double down on this misguided policy with another 30% cut in debit interchange followed by an automatic biannual adjustment. This “one-way ratchet” will continue to hack away at debit programs every two years based on data and a formula of the Fed’s choosing, without public comment.

The Fed is proposing to slash the interchange rate cap from 21 cents to around 14.4 cents—and recent research estimates that this move could reduce interchange revenue for banks by $3 billion annually. That’s essentially the equivalent of the government reaching into banks’ pockets, taking money allocated to ensuring affordable, seamless, secure banking products and services, and handing it over to the very largest retailers.

Retailers will claim that they intend to pass those savings on to consumers. But as we’ve seen in the thirteen years since the original Durbin price caps took effect, those promises ring hollow.

That means that the real losers in this fight will be American consumers.

Not only will consumers not gain the advantage of lower prices in stores, but the Fed’s proposed changes to Regulation II will fundamentally affect the economics of what banks do—and that, in turn, affects the products and services they are able to offer their customers and communities.

Banks use interchange revenue to fund free or low-cost checking accounts and other services that consumers value. Prior to the enactment of the Durbin amendment, for example, many banks offered debit card rewards programs—but those programs were eliminated when the revenue streams funding them dried up due to government price controls.

These new proposed cuts to interchange revenue will have an even more dire consequence: they will undermine banks’ efforts to foster financial inclusion by providing access to the free and low-cost transaction accounts that help unbanked Americans get their foot in the door – a first but necessary step to true inclusion.

Our colleagues at the CFE Fund, which oversees the Bank On initiative that ABA has proudly championed, recently wrote to the Fed to emphasize what makes the national account standards work: They were designed to address the needs of lowand moderate-income consumers (bill pay, debit card access, ATM access). They were designed to knock down the barriers that keep so many consumers outside the banking system (minimum balance, credit checks, overdraft fees). And, importantly, they were designed to be economically sustainable for banks offering the accounts.

Interchange fees play an important role in that sustainability equation. If banks do not have the revenue streams to support these and other low-cost accounts, they have two options: pass the costs on to consumers or stop offering and/or marketing the product altogether.

Bank On accounts are currently offered by a growing list of banks across the country. And to ensure we can continue that momentum, ABA has been working hard on behalf of its members to elevate these concerns to policymakers. But we can’t do it alone—we need your help. With the Fed recently extending the comment deadline to May 12, ABA is calling on all bankers to share how this change in regulation will affect their bank and their customers. You can send a letter easily through ABA’s grassroots platform, SecureAmericanOpportunity.com

Banks put interchange to work funding low-cost banking services that help consumers find their way into the regulated banking system—enabling them to take advantage of deposit insurance protections, build credit, and do so many other things that can only happen with a banking relationship.

If the Fed’s Reg II proposal moves ahead, the very largest retailers will pocket that surplus to pad their bottom line—and consumers won’t see a penny of it.

That’s a tradeoff that leaves our country poorer.

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

Legislative Reception

Tuesday, January 9, 2024

Pastides Alumni Center, University of South Carolina

BDC expects to fund more than $ 800 Million in SSBCI loans for small businesses in SC over the next 10 years.

During the past 10 years, BDC has partnered with commercial banks to administer the SSBCI Loan Participation Program, approving more than $300 million in loans to date and forecasting to fund more than $800 million in South Carolina small business loans over the next ten years.

Ranging from $100,000 to $20 million, the SSBCI program provides business loans with reduced equity requirements while mitigating risk for the lender, allowing fast turnaround times with flexible terms on owner occupied real estate and equipment loan requests.

For more information and to learn how the SSBCI Program can benefit you and your customers, contact one of our lenders today.

2024 Community Bankers Conference

A Recap of Excellence: The 2024 Community Bankers Conference made history at The Pastides Alumni Center on January 8–9, with record attendance. This year’s event impressed attendees with impactful insights and thought-provoking sessions.

Kicking off the conference was the legendary Coach Mike Ayers, captivating the audience with his wisdom on motivation and team dynamics. From deposit strategies to political insights, our diverse lineup of speakers kept the energy high over the two-day event.

A highlight was the firsthand perspectives shared by Federal Reserve Board Governor Michelle Bowman and the incomparable Mick Mulvaney, offering unique insights into banking and the political landscape. Their invaluable contributions added a layer of depth that resonated with all participants.

A heartfelt thank you to our esteemed speakers and sponsors for their pivotal role in making the 2024 conference a resounding success. Stay tuned for more enriching experiences at our upcoming regional Community Banker Peer Group meetings, starting with a lowcountry gathering in Charleston at Hotel Emeline on April 23.

COACH MIKE AYERS SC Football Hall of Fame Inductee Former Wofford College Coach

RHONDA MIDGETTE, PHR, SHRM-CP HR Business Partner

Nelson Mullins Riley & Scarborough LLP Owner

Insightful HR Consulting

NEIL RASHLEY, JR. Senior Vice President & Counsel, Legislative and Regulatory South Carolina Bankers Association

ADAM THOMPSON Director of Sales StrategyCorps

JEFFREY CROTEAU Senior Consultant Darling Consulting Group

MICK MULVANEY Actum Strategic Advisers

MICHELLE BOWMAN Governor Federal Reserve Board

W. BARTOW SMITH Partner, Head of Risk & Regulatory Insights Performance Trust Capital Partners

WILLIAM J. WAGNER Managing Director Raymond James

NAVIGATING THE FINANCIAL SERVICES LANDSCAPE: Strategies for Customer Growth, Deposits & Retention

Banks are on a continuous quest for smarter approaches to household acquisition, striving not only for better outcomes but for sustained success. Throughout this process they encounter several hurdles:

• Acquiring primary customers

• Impact of external events

• Regulatory and compliance adherence

• Heightened ROI expectations

• Changing demographics

Adopting a strategic and methodical approach is key to developing successful marketing strategies. This process should consider:

1. Identifying the Best Markets: This involves understanding not just where potential customers are geographically, but also their behaviors, preferences, and financial needs. Analyzing demographic data, economic trends, and consumer spending habits can reveal which markets are ripe for growth.

2. Channel Selection: This process is crucial because different demographics prefer different channels; and channels should align with the nature of the message and the product.

3. Optimizing Spend: The key is to create a balanced mix that leverages both high-performing and emerging channels, ensuring that each dollar spent contributes to the overarching goal of customer acquisition and retention. This requires a thorough analysis of past marketing campaigns to understand which channels have yielded the best results.

4. Executing Omnichannel Strategy: The goal is to provide customers with a unified and cohesive journey, where each channel complements and supports the others. Ensuring these transitions are smooth and integrated improves the customer experience, enhancing the likelihood of acquisition and retention.

5. Measuring Success and Improvement: This involves measuring not just the quantitative outcomes like the number of new accounts or deposits, but also qualitative aspects like customer satisfaction and brand perception. Continuous analysis of these metrics allows for ongoing refinement, ensuring strategies remain effective in an ever-evolving market landscape.

Vericast helps banks create data-driven acquisition programs using variables like industry benchmarks and consumer predictive intelligence. Contact us for a consultation to grow your deposits.

Alexa Bennett, Content Marketing Manager, Vericast For more, read full blog

www.vericast.com/insights/blog

SCBA MeMBerShip BAnking At A glAnCe

South Carolina Banking Institutions

Total number of bank offices in S. C.

South Carolina Headquartered Banks

Banks with over $1 billion in deposits

Total S.C. deposits for these banks

Banks with deposits greater than $500 million and less than $1 billion

Source: FDIC Summary of Deposits, June 30, 2023

MUTUAL BANKS AND CREDIT UNIONS IN SOUTH CAROLINA:

A Comparative Look at their History, Differences, and the Ongoing Debate Surrounding Taxation

What financial institutions are owned by their depositors? It might surprise many that both mutual savings banks (including mutual savings associations) and credit unions are all owned by their depositors.

Mutual savings banks have a rich history dating back to the late 19th century in the United States, while the credit union industry emerged in the 1930s. Originally established primarily in rural and underserved communities, both mutual savings banks and credit unions shared a common mission of providing

financial services to consumers in their local communities. As time passed, they have both evolved to offer a broader suite of products and some have expanded their reach far beyond their initial communities.

The nine mutual savings banks headquartered in South Carolina range in size by total assets from $35 million to $665 million. All are community oriented, and their existence is considerably important to the people and the economies of the communities they serve. One example is Kingstree Federal

Savings and Loan Association which has been helping its customers achieve financial security since 1926. Al Carter, President and CEO of Kingstree Federal Savings and Loan, said, “In 1926, our founders had the vision of an institution that would provide the people of Kingstree the ability to purchase or construct a home by providing savings and home loan products. Through the years, we have not strayed from this mission and are proud of the families we have helped for nearly 100 years.” Likewise, CBL State Savings Bank is an integral part of

“We are proud of our nine mutual savings banks in South Carolina—their history of remaining focused on their communities and their customers. It is unfair to expect them not to have the same taxation benefits as their credit union competitors.”

— Fred L. Green, III President and Chief Executive Officer South Carolina Bankers Association

FAST FACTS: BANKS & CREDIT UNIONS

the community it serves and is dedicated to giving back. CBL was established in 1907 by local citizens to provide financial services to local farmers, mill workers, and merchants to achieve their dreams of homeownership. CBL now offers a wide array of real estate loans, including commercial loans. CBL’s dedication to its local community is also exemplified by their establishment of a foundation that provides grants to local nonprofits. “As a small mutual bank, we strive to uphold the principles of community banking and it is a privilege to serve our neighbors and friends,” said Jennifer T. Jones, President and CEO of CBL State Savings Bank. “However,” she added, “we also value fair competition and it’s disheartening to witness the asymmetrical playing field created by the presence of credit unions. While we are subject to taxation and regulatory burdens, credit unions enjoy significant

advantages, such as tax exemptions and fewer regulatory constraints. This imbalance undermines fair competition and challenges the sustainability of mutual banks like ours, which are deeply rooted in serving local communities.”

The similarities of these two charters in ownership and mission have now diverged. While both mutual savings banks and credit unions fulfill the financial needs of their customers, a key factor that distinguishes the two is the federal and state income tax exemption enjoyed exclusively by credit unions. Historically, credit unions were granted this tax advantage because of a clearly defined field of membership and a mission to serve those of modest means. This field of membership and mission has expanded so much in larger credit unions that they now look like a bank and act like a bank, but they still don’t pay taxes like a bank.

A look at the largest financial institutions in South Carolina, what’s the difference?

To be fair, many of the South Carolina-based credit unions have maintained their focus on their original field of membership, community, and product offering. It is the largest credit unions, with billion-dollar assets and expanded services that have raised concerns about fairness and accountability, that give the industry a “black eye.”

There are eighteen financial institutions headquartered in South Carolina with $1 billion or more in total assets and half of those are now tax-exempt credit unions. These large financial institutions have leveraged their tax exemption and become indistinguishable from banks in that their field of membership is broad and their product and service offerings have

expanded to include many of the same ones offered by banks. Furthermore, these large institutions have lobbied our State General Assembly to allow them to use that same tax advantage to purchase banks, expand market area, and accept public deposits.

South Carolina banks are held accountable by regulators for serving the financial needs of the communities where they operate. These regulatory rules require a tremendous amount of recordkeeping and resources. South Carolina’s banks are committed to serving their communities and have an outstanding record of compliance with community reinvestment laws. Unfortunately, the taxexempt credit unions are not subject to those same regulatory requirements. Without such accountability, there is no way

to know if these large financial institutions are meeting the needs of all segments of their potential membership, including those with low- and moderate-income.

Even as some credit unions have expanded their fields of membership and abandoned their mission to serve those of modest means, the topic of tax parity between banks and credit unions remains contentious. The credit union lobbyists always try to make a point that credit unions are not owned by investors, but they are owned by their depositors. This, they feel, helps justify their tax-exempt benefit. Mutual savings banks are also owned by their depositors but are subject to paying income taxes. Maybe, as a start, if we can’t change the tax advantage of the credit unions, maybe we can work to get similar advantages for banks.

Annual Conference Annual Conference 2024

The Young Bankers Division Annual Conference was held at The Omni Grove Park Inn, March 8-10. Asheville proved to be a fun destination once again, as many enjoyed golf, the microbrewery tour, the Biltmore Estate tour, and of course the exceptional spa at The Grove Park Inn.

Chair Oneal Staples of Ameris Bank in Lexington, SC, and his wife, Jennifer, welcomed over 200 attendees to the conference. The business sessions’ topics and speakers kept eveyone’s attention, as much of the focus was on new network security intrusion issues and artificial intelligence in banking. Many thanks to these incredible speakers: Jessica L. Kearney, Assistant Vice President of Public Policy Initiatives, Travelers Institute; D. Brad Rustin

IV, Partner, Chair Financial Services Regulatory Practice, Nelson Mullins Riley & Scarborough, LLP; and Jantzen N. “J” Blackmon, Special Agent, Homeland Security Investigations. We were also fortunate to start our Saturday morning with a prayer breakfast “Faith, Family, Football” lead by Patrick S. DiMarco, Business Development and Investor Relations, Cason Development Group and former NFL football player.

A special thanks to our many sponsors — this event would not be possible without your support! For more information about the Young Bankers Division and/or the Annual Conference, please contact Carolyn L. Bradley, carolynbradley@scbankers.org.

2024 YOUNG BANKERS DIVISION CONFERENCE

2024STATE HOUSE VISIT

Government relations play a vital role in the South Carolina Bankers Association’s mission, and the Young Bankers Division steps up to actively engage in grassroots initiatives. On February 21st thirty bankers from all across South Carolina met at the State House with a busy agenda. Meetings were held with Chairman Bill Sandifer of the House Labor, Commerce and Industry committee; Senator Alexander, President of the Senate; Senator Ronnie Cromer, Chair of Banking and Insurance; and Senator Tom Davis, Chair of the Labor, Commerce and Industry committee.

These personal interactions play a crucial role in advancing our government relations efforts and advocating for the interests of our industry. The Young Bankers Division’s efforts underscore our commitment to building lasting relationships and ensures that the voices of South Carolina bankers are heard and understood in the legislative process. By actively participating in these discussions and engaging in constructive dialogue, we pave the way for positive collaboration and progress within the banking community.

To learn more and get involved, contact Carolyn L. Bradley, carolynbradley@scbankers.org.

WHEN PUBLIC NOTICES REACH THE PUBLIC, EVERYONE BENEFITS.

In addition to publishing public notices and legal advertisements in your local newspaper, notices from all S.C. newspapers are now also available online, free of charge and in one convenient location.

SCPublicNotices.com is designed to help citizens and businesses know more about the actions of local, county and state government and the courts.

There’s no better way to notify the public than through the combination of South Carolina newspapers and SCPublicNotices.com... the permanency of print paired with the accessibility of a statewide, searchable site.

SUBSCRIBE to the site’s Smart Search function to receive revelant public notices emailed to you daily. Email admin@scpublicnotices.com for a 30-day free trial of Smart Search.

SCPublicNotices.com

This free service is provided by the Palmetto State’s newspapers.

SCBA Members Advocate for South Carolina Banking at the ABA Washington Summit

The South Carolina Bankers Association traveled to Washington D.C. in March with an impressive group of bankers to participate in the American Bankers Association’s Annual Washington Summit. Their purpose was to advocate for sound public policy that will benefit the customers and communities that SCBA members serve. South Carolina’s banking industry is fortunate to have a strong and supportive congressional delegation. Much gratitude goes out to Representatives Jim Clyburn, Jeff Duncan, Russell Fry, Nancy Mace, Ralph Norman, William Timmons, and Joe Wilson, as well as Senators Lindsey Graham and Tim Scott, for taking the time for our visits to hear our concerns.

L to R: Samuel Small, Jr., First Palmetto Bank; Marvin Robinson, Jr., Ameris Bank; Michael Edens, First Reliance Bank; Senator Tim Scott (R-SC); Mickey Renner, HomeTrust Bank; Dita Brown, Beacon Community Bank; and Blake Dressler, First Reliance Bank

L to R: Oneal Staples, Ameris Bank; Rufus Dunlap V, Countybank; Othniel Laffitte, First Bank; Blake Dressler, First Reliance Bank; Chase Talbert, Bank of the Lowcountry

L to R: J. Huggins, United Bank; Mike Sarvis, First National Bank; Richards Green, SC Bankers Association; Boyd Jones, Synovus; Representative Joe Wilson (R-SC)

Representative William Timmons (R-SC)

Washington Summit: March 18-20, 2024

Welcome

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

Apiture, Inc. 1805 Tiburon Dr. Wilmington, NC 28403 (910) 499-0077 apiture.com

Mr. Charles Grass Vice President of Sales (407) 752-2223

charles.grass@apiture.com

Arthur J. Gallagher 15 S. Main St., Suite 900 Greenville, SC 29601 (864) 239-0544 ajg.com

Mr. Connor Shaw (864) 448-4471 connor_shaw@ajg.com

K2 Capital 1912 Highland Ave. Florence, SC 29501 (843) 618-6767 k2capital.com

Mr. Christian Peebles (Chris) CEO and Founder (843) 618-6767 chris@k2capital.com

Apiture delivers award-winning digital banking solutions to U.S. banks. The Apiture platform meets a wide range of needs, from leveling the playing field with larger institutions to supporting growth through innovative data intelligence and embedded banking strategies.

Gallagher’s Benefits & HR Consulting division is one of the largest commercial insurance, risk management and consulting companies in the world. This division partners with employers on people strategy; advising, designing, administering and communicating benefits, retirement, pension, HR and compensation programs for employers and plan participants across the globe.

K2 Capital provides commercial capital for private and institutional clients who don’t necessarily fit into the box of traditional bank lending. They provide our banking partners an avenue to offload accounts with broken covenants, redirect prospective borrowers that have been declined, or supplement funding for existing customers who have reached their credit limit or are out of market. K2 Capital’s funding is transactional and strategic which allows the borrower to maintain their current relationship with the bank while obtaining the funding they need to grow their business or acquire their next commercial real estate investment. Specialties include commercial and investment real estate funding, SBA 7(a) advisory services for business acquisition or expansion, and business lending solutions.

SC Community Loan Fund

1501-A Gardner Road Charleston, SC 29407 (843) 973-7285

sccommunityloanfund.org

Mr. Nathaniel Barber (Nate) Chief Executive Officer

1122 Lady St. Columbia, SC 29229 (803) 517-8471

nate@sccommunityloanfund.org

Strunk, LLC

126 Manor North Drive Alpharetta, GA 30004 (800) 728-3116

strunkaccess.com

Ms. Kristal Daly (Kristi) Senior Vice President Sales & Client Support (713) 423-0926

kdaly@strunkaccess.com

SC Community Loan Fund is a Community Development Financial Institution providing equitable access to capital and financing projects and small businesses that build healthy, resilient South Carolina communities. Their mission is to advance equitable access to capital to build assets and benefit the communities and people most in need of economic opportunity, with a focus on serving people of color, women, low-income individuals, and those in rural communities. Loans are more than financial transactions—they create and save jobs, build generational wealth, create safe and affordable housing, and act as catalysts for lasting community change. Their lending programs include financing for affordable housing, healthy food enterprises, community facilities, and small businesses.

For more than 40 years, Strunk has developed and implemented successful profit improvement, compliance and risk management solutions for hundreds of community FIs. Strunk offers easy to use solutions that help FIs boost profitability – Pricing Manager and ODP Manager – and more efficiently identify and manage risk –Risk Manager. Strunk provides the focus, experience and resources your organization needs to increase net interest margin, drive fee income and streamline compliance and risk management processes – all with a money back guarantee.

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

ARTHUR STATE BANK

Jerris B. Garner has been promoted to chief human resource officer and will also lead the branch administration team in directing all 18 branches in management procedures. Garner has evolved with the company throughout her tenure of more than 50 years.

JB Garrett has been named chief financial officer and will oversee all accounting and tax operations.

John C. Gregory has been named chief operating officer and chief lending officer. John began his career at Arthur State Bank as a management trainee in 2005 and has become an integral part of the bank for more than 18 years.

Shannon G. Rector has been promoted to chief technology officer after more than 33 years of unwavering commitment to the community bank.

Tara W. Webb has been named chief trust officer. She has overseen the growth and success of the bank’s trust and wealth management department for the past 16 years.

Alton B. Bishop IV has joined the bank as vice president and loan officer and is based out of the Union main branch.

Lori H. Patrick has joined the bank as vice president and loan officer and is based out of the Rock Hill branch.

COUNTYBANK

Peggy Chamblee has been promoted to vice president, retail banking manager.

THE CITIZENS BANK

Tiffany Suggs has been named chief operations officer. Tiffany has been at the bank since June of 2022 as director of operations. She holds her ABA Certified Regulatory Compliance Manager designation.

UNITED BANK

Kevin Adams is announcing his retirement from United Bank on April 30, 2024, after a 37-year-long career in commercial banking, serving the local Lexington and Richland Counites exclusively.

Shannon G. Rector

John C. Gregory

JB Garrett Jerris B. Garner

Tiffany Suggs

Tara W. Webb

Peggy Chamblee

Alton B. Bishop IV

Lori H. Patrick

Kevin Adams

COASTAL CAROLINA NATIONAL BANK

Coastal Carolina National Bank President and Chief Executive Officer, Laurence S. Bolchoz, Jr., received the “Grand Strand’s 50 Most Influential” award at the B2B: Grand Strand awards reception.

Laurence has been with Coastal Carolina National Bank since 2012. He is a graudate of Clemson University and The ABA Stonier Graduate School of Banking.

COUNTYBANK

Countybank Foundation donated to many worthwhile charities over the past months, to include $5,000 to the Lakelands Region YMCA, $2,500 to the South Carolina Ovarian Cancer Foundation, $25,000 to Self Regional Healthcare Foundation, $2,500 to Multiplying Good, $5,000 to Anderson Interfaith Ministries, and $2,500 to Faith Home. In addition, Countybank and Greenwood Capital donated $73,552 as part of their annual fundraising campaign to United Way, which was then distributed per associate-based donations to their respective local United Way organizations in the Greenwood, Greenville/ Greer, and Anderson communities. Associates made personal pledge donations totaling $47,602 as part of the employee campaign, plus an additional $3,950 as part of the organization’s monthly Casual for a Cause fundraiser. The Countybank Foundation provided an additional campaign contribution of $22,000.

Congratulations to R. Thornwell Dunlap III who received the United Way of the Lakelands Shining Star Award. It is presented annually to an individual or business who exemplifies leadership through their support of United Way’s mission and vision.

Countybank also celebrated the grand opening of its new financial center in Greer, at 530 West Wade Hampton Boulevard on February 8.

Pictured (left to right):David Tompkins, Commercial Banking Manager for Countybank; Brian Harlan, Lakelands Region YMCA CEO; and Tony Lawson, Commercial Relationship Manager for Countybank.

Pictured (left to right): John Cooper, Senior Private Client Advisor for Greenwood Capital; David Trent, SBA Business Development Officer for Countybank; Margie Blalock, Director, Resource Development for United Way of the Lakelands; Richard Thomason, Mortgage Consultant for Countybank Mortgage; Dayle Mumford, Professional and Executive Banking for Countybank; Marisel Losa, President and CEO for United Way of the Lakelands; and Shelli Futch, HR Administrator for Countybank.

Pictured (left to right): David Trent, SBA Business Development Officer for Countybank; John Cooper, Senior Private Client Advisor for Greenwood Capital; Dayle Mumford, Professional and Executive Banking for Countybank; Marisel Losa, President and CEO for United Way of the Lakelands; and Richard Thomason, Mortgage Consultant for Countybank Mortgage.

Pictured (left to right):Ken Coffey, Executive Director for Self Regional Healthcare Foundation; John Wiseman, Director of Fixed Income for Greenwood Capital; John Cooper, Senior Private Client Advisor for Greenwood Capital; Walter Todd, President/CIO for Greenwood Capital; Dayle Mumford, Professional and Executive Banking for Countybank; David Tompkins, Commercial Banking Manager for Countybank; April Prince, Trust Officer for Countybank Trust; and Wells Dunlap, Senior Operations Officer for Countybank.

DOGWOOD STATE BANK

Dogwood State Bank and Community First Bancorporation jointly announce the signing of a definitive merger agreement for Dogwood State Bank to acquire Community First Bancorporation, and its subsidiary, Community First Bank in an all-stock merger. The boards of directors of both businesses have unanimously approved the merger agreement. The transaction is anticipated to close in the second half of 2024, subject to customary closing requirements, including Community First shareholder, Dogwood shareholder and regulatory approvals.

“The partnership with Community First Bancorporation unlocks long-term growth potential for shareholders and access to significant scale in the Upstate of South Carolina,” said Steve Jones, President and Chief Executive Officer of Dogwood State Bank. “With this transaction, we will have a meaningful presence in the largest major growth markets in the Carolinas.”

“From the beginning, Community First Bank has been focused on developing a business model that focuses on safe and sound relationship banking in the markets we serve. We believe we have been very successful with this in our Tennessee, North Carolina and South Carolina markets, which encompass some of the fastest growing markets in the nation.” said Richard D. Burleson, President and Chief Executive Officer of Community First Bancorporation and Community First Bank. “However, to continue growing, to provide cutting edge technology and to become more profitable, we need a partner who can provide us the opportunity to better serve our customers with a much larger balance sheet, enhanced technology and expanded products and services. We believe our partnership with the Dogwood team provides just that, and I believe the synergies that exist between our companies will result in tremendous success for both sides.”

FIRST RELIANCE BANK

First Reliance Bank is pleased to announce that through their partnership with Apiture, Apiture has received an award, marking its third consecutive win for digital banking innovation. Apiture earned the distinction for spearheading a digital banking transformation initiative for First Reliance Bank and their 18,000 customers throughout the Carolinas. Rick Saunders, Chief Executive Officer and Founder said, “We have been very pleased with Apiture’s platform, customer service, and delivery. Through their banking solution, First Reliance has been able to attract larger business customers, thus driving notable revenue growth.”

FIRST RELIANCE BANK

South Carolina, on May 24, 1937. He grew up in Sumter, SC, and began a career with Suburban Propane Gas at the early age of 19, where he remained with the company in management until his retirement at the age of 62, working 43 years for the same company. After retirement, he realized that having days without a sense of real purpose was not as enjoyable as he envisioned, so he launched an entirely new career. From age 63 until his passing at 86, he helped his two sons build First Reliance Bank–a long-standing regional bank. Managing the company’s fixed assets across the Carolinas, he was an outstanding member of the First Reliance Team and a proud father. Being forced into independence at an early age, he learned the importance of character, integrity, courage, hard work, excellence in effort, and grit. He made sure that his sons understood and exercised those principles, leaving a legacy that all his family will forever be proud of.

Freddie Saunders

May 24, 1937 – January 9, 2024

First Reliance Bank founder’s father, Freddie Saunders, 86, of Florence, South Carolina, died on January 9, 2024, at the McLeod Health Hospice Care. Freddie was born in Sumter,

PINNACLE FINANCIAL PARTNERS

Pinnacle Financial Partners presented a $100,000 gift to the Mother Emanuel Memorial Foundation at the grand opening celebration for the firm’s new Morrison Yard office. “Mother Emanuel is a pillar of hope in the Charleston community,” said Mary Garcia, regional president for Pinnacle Financial Partners. “We’re honored to partner with the Mother Emanuel Foundation in their efforts to honor the lives of the Mother Emanuel Nine. Supporting our community is not just a corporate responsibility. It’s a fundamental part of who we are.”

In addition to representatives from Mother Emanuel AME Church, business and community leaders and Pinnacle clients attended the January 11 event at Pinnacle’s Morrison Yard office, 850 Morrison Drive, Suite 101. The new full-service office sits beautifully at the gateway to the Charleston peninsula, the base of the iconic Arthur Ravenel Jr. Bridge. It expands the firm’s ability to serve in the heart of a growing Charleston.

SOUTH ATLANTIC BANK

South Atlantic Bank Executive Vice President and Chief Lending Officer, Mary Jo Rogers, received the “Grand Strand’s 50 Most Influential” award at the B2B: Grand Strand awards reception.

Mary Jo joined South Atlantic in 2007 as one of the founding employees and has since helped the bank grow to more than $1.4 billion in assets. She leads the commercial lending team and oversees sales and management of the bank’s loan, merchant service, and treasury service lines of business. She is passionate about giving back to her community and serves as the founding chairman of New Directions of Horry Country and is a board member of One Grand Strand and the Myrtle Beach Downtown Alliance. She also serves on the faculty of the South Carolina Bankers School and has taught at the Barrett Graduate School of Banking and for the American Bankers Association through the local technical school.

TD BANK, N.A.

TD Bank, N.A. makes second donation to the International African American Museum in Charleston, SC for education and programming totalling $500K, following their initial gift of $250,000 as a founding donor in 2016. The TD Bank Program Series is designed to educate and empower the local community and beyond. The series provides a cohesive and engaging experience for attendees.

Shelley Sylva, who leads U.S. Corporate Citizenship at TD Bank noted, “Elevating the voices and sharing the untold stories of African Americans is a crucial piece of our collective journey towards inclusivity and equity. At TD, we believe community, culture and education fuels this journey, so we take great pride in our ongoing commitment to support the initiatives of the International African American Museum. The TD Bank Program Series at IAAM is designed to boost access to culturally significant programming highlighting the African American experience – especially by and for those who have historically been excluded. We’re excited to see this incredible effort come to fruition and the positive impact it will have on those it touches.”

2024 SOUTH CAROLINA BANKERS SCHOOL

SUNDAY, JULY 14 - FRIDAY, JULY 19, 2024

THE DARLA MOORE SCHOOL OF BUSINESS UNIVERSITY OF SOUTH CAROLINA, COLUMBIA

CURRICULUM

FIRST YEAR: Foundation

• Analyzing Bank Financial Performance

• Business Development & Client Engagement

• Credit Portfolio Management

• Cybersecurity

• Understanding Digital Transformation in Banking

• Economics/Money and Banking

• Leadership

• Marketing

• Navigating Your Career

• Sources of Non-Interest Income

• Tax Return Analysis

• Team Building

• Understanding CAMELS Ratings/ Working with Regulators

SECOND YEAR: Application

• Asset/Liability Management

• Banking 101 for Non-Lenders

• Capital Planning/Strategic Thinking

• Commercial Lending

• Deposit Products

• Economic Outlook

• Effective Communication

• Effective Negotiations

• Employment Law 101

• Intro to BankExec

• Investments

• Principles of Lending for Non-Lenders

• Treasury Management and Mitigating Fraud

• Troubled Assets (for Lenders)

• Understanding Bank Financial Statements

• Wealth Management

THIRD YEAR: Integration

• BankExec

• Dynamic Presentation Skills

• Funding Alternatives

• Managing IRR and Liquidity Risk in the Current Environment

• Political and Social Advocacy for Banking

Calendar of Events

April

23

Coastal Regional Community Bankers

Peer Group Meeting

TUESDAY 9:30 AM - 3:00 PM

This gathering is tailored specifically for bank members and provides a platform for timely speakers, engaging round table discussions, and invaluable networking opportunities. Bankers from across the state shoud attend. Our Charleston meeting will feature Barbara Melvin, President & CEO, South Carolina Ports Authority—a top 10 U.S. operating container port that has an $87B economic impact on SC each year. We will also hear from commercial and residential property advisor, Harrison Barnes, from HUB International about risks related specifically to coastal coverage. You dont want to miss this opportunity regardless of your location! (Limited to bankers only)

LOCATION: Hotel Emeline 181 Church Street Charleston, SC 29403

Spring Compliance Conference

TUESDAY 9:00 AM - 4:00 PM 30

This conference is designed for executive risk-management teams and regulatory compliance officers. We will explore the latest regulatory changes and the impact of these changes on financial institutions. We will discuss fair lending and the scrutiny financial institutions face under new regulations, examine the new CRA rule and dive into some of the notable TRID matters that financial institutions should be aware of. As the regulatory landscape continues to change, financial institutions must stay alert, adapt to changes, and modify their processes to navigate the complexities of compliance in this rapidly transforming environment.

LOCATION: SpringHill Suites Downtown/The Vista 511 Lady Street Columbia, SC 29201

May

78

Women in Banking Leadership Symposium

TUESDAY 1:30 PM - 6:30 PM

WEDNESDAY 8:00 AM - 1:30 PM

This symposium is for women bankers and associate member leaders—designed for learning, networking and fellowship. Gain insights on visionary leadership and strategic thinking. Collaborate and network with your industry colleagues. Get fresh ideas to better serve your bank, your community, and your family. Check our website for the latest on our impressive line-up of speakers.

LOCATION: Hilton Columbia Center 924 Senate Street Columbia, SC 29201

23

Asset Liability Management Conference

THURSDAY 9:00 AM - 4:00 PM

Financial institutions’ CEOs, CFOs, investment officers, board members, and those who are directly or indirectly responsible for financial management functions will benefit from 2024 Asset Liability Management Conference.

LOCATION: Columbia, SC

SCBA Webinars: Another source for your training needs.

Please visit scbankers.org/all-online-training-opportunities to see the myriad of courses and webinars offered and to register!

PROFESSIONAL

Calendar of Events

June

20 -

23

SCBA Annual Convention and Trade Show

THURSDAY - SUNDAY

SCBA’s 124th Annual Convention boasts two full days of educational opportunities for bankers, directors and associate members. We will witness the installation of our SCBA officers, network at our receptions, and more! This event is suited for upper executive management teams and directors. Check our website for the latest on our impressive line-up of speakers and make plans to join us as we reunite for this annual event.

LOCATION: The Greenbrier

101 W Main Street

White Sulphur Springs, WV 24986

July

SUNDAY - FRIDAY 14 -

19

South Carolina Bankers

School

The South Carolina Bankers School threeyear program provides the practicing banker—junior and mid-management level officers—an integrated and complete set of usable courses covering all aspects of banking, as well as overall bank management. The school fosters academic and social interactions with fellow bankers conducive to joint bank problem-solving during school and later in the workplace. The curriculum, designed as a stepping stone to graduate banking schools, provides benefits for the duration of one’s banking career. This excellent intermediate-level education is one of the premier state banking programs in the country. And, starting this year, classes will be held in the state-of-the art Darla Moore School of Business at USC. Even though the rigorous schedule and work are demanding, the school provides time for fellowship and building relationships through socialization outside of the classroom.

LOCATION: Darla Moore School of Business 1014 Greene Street Columbia, SC 29208

DIANNE BAILEY

ELIZABETH WOOTEN BURWELL