Palmetto Banker Summer19 by SouthCarolinaBankers

PALMETTO Banker

SAM ERWIN 2019-2020ChairmanSCBA

Summer Issue 2019-3 SOUTH BANKERSCAROLINAASSOCIATION

Group

SamuelChairmanL. Erwin Greenville,IBERIABANKSC

SCBA BOARD OF DIRECTORS IV Director David R. Torris SunTrust Greenville,BankSC V Director J. Carlisle Oxner III Arthur State Bank Union, SC VI Director J. Neal Anderson Anderson Brothers Bank Hemingway, SC

III

JamesChairman-ElectA.Bennett Citizens Bank Columbia, SC

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

2019-2020 BOARD OF DIRECTORS

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

First

Immediate Past Chairman David L. Morrow CresCom Charleston,BankSC Thornwell Dunlap Greenwood,Countybank & Fred L. Green III South Columbia,BankersCarolinaAssociationSC

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

CEO

First

Group II Director Boyd B. Jones Columbia,Synovus SC

FleetwoodTreasurer S. Hassell The Bank of South Charleston,Carolina SC

Bankers AnnetteChairmanSchool,L.Scott Greenwood,Countybank SC Young ElizabethDivision,BankersChairmanS.Steifle Bank of Travelers Rest Travelers Rest, SC ThomasMember-at-LargeBouchette The Citizens Bank Florence, SC JohnMember-at-LargeD.Kimberly Carolina Alliance Bank Spartanburg, SC LaurenceMember-at-LargeS.Bolchoz, Jr. Coastal MyrtleNationalCarolinaBankBeach,SC CurtisMember-at-LargeT.Evatt Oconee Seneca,SavingsFederal&LoanSC JenniferMember-at-LargeT.Jones CBL State Savings Bank Greer, SC RoseMember-at-LargeBuyckNewton Bank of Manning,ClarendonSC

SCBA EXECUTIVE COMMITTEE 2nd Immediate Past Chairman R.

Group

SC President

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

David R. Torris, SunTrust Bank

SCBA President & CEO

Marvin E. Robinson, Jr., CresCom Bank

Calvin C. Hurst, Southern First Bank

Thomas R. Britt, Jr., Bank of Travelers Rest Laurence S. Bolchoz, Jr., Coastal Carolina National Bank

Arnold A. Zipperer III, 1st Federal Savings Bank

Fred L. Green III, South Carolina Bankers Association

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

James R. Clarkson John C. Griggs III, Synovus W. David Keller, The Citizens Bank Francis A. Townsend III, South State Bank

Michelle A. Coletta, South Atlantic Bank Vaughan R. Dozier, Jr., First Community Bank Rufus T. Dunlap V, Countybank

Chairman Elizabeth S. Steifle, Bank of Travelers Rest Chairman-Elect Allison B. Cranford, TD Bank, N.A.

Casey L. Earl, United Community Bank Margi M. Fleming, The Citizens Bank Austin J. Goforth, Southern First Bank

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

Chairman

Course Coordinators

Senior Vice President E. Anne Gillespie

John M. Leighton, South State Bank

Bradley R. Cantrell, Countybank

Directors J. Neal Anderson, Anderson Brothers Bank

Thomas Bouchette, The Citizens Bank

Carolinas Regional President

SCBA COMMUNITY BANKERS DIVISION BOARD

Chairman-Elect

2019-20

Cover Photograph by John C. Gillespie, John Gillespie Photography LLC

2nd Immediate Past Chairman

President & CEO

Cover: Sam Erwin, SCBA Chairman and IBERIABANK, Executive Vice President

Directors

Annette L. Scott, Countybank

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.

Elizabeth S. Steifle, Bank of Travelers Rest

Senior Vice President Carolyn L. Bradley

Contents5613141618262934363839PastChairman’sMessageCoverStoryABAUpdateTaxPlanningOpportunityDeNovoUpdateSCBA2019AnnualConventionYoungBankersDivisionSouthCarolinaBankersSchoolWelcomeNewMembersPersonalTransactionsBankingNewsEducation&ProfessionalDevelopmentandTradeShowReview

2019-20

Fred L. Green III

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

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

SCBA EXECUTIVE COMMITTEE

J. Ted Nissen, First Community Bank

Rose Buyck Newton, Bank of Clarendon

Past Chairman Ford P. Menefee, The Bank of South Carolina Directors Richard N. Burch, South Atlantic Bank

J. Carlisle Oxner III, Arthur State Bank

Fred Gilmer III, Southern First Bank

2019-20

Curtis T. Evatt, Oconee Federal Savings & Loan Boyd B. Jones, Synovus

Robert P. Hucks II, Coastal Carolina National Bank

Jennifer T. Jones, CBL State Savings Bank

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.

James A. Bennett, First Citizens Bank First Vice-Chairman K. Wayne Wicker, South Atlantic Bank

SCBA BOARD OF DIRECTORS

Executive Vice President & CFO Donna S. Taylor

Immediate Past Chairman

Chairman Samuel L. Erwin, IBERIABANK

SCBA Staff

Robert L. White, Bank of Travelers Rest

Director, Advertising & IT M. Caroline Snijders

John D. Kimberly, Carolina Alliance Bank

J. Ted Nissen, First Community Bank

R. Thornwell Dunlap III, Countybank

Administrative Assistant Bonnie E. Nelson

YOUNG BANKERS DIVISION BOARD OF DIRECTORS

2019-20

David L. Morrow, CresCom Bank

Marion E. Freeman, The Conway National Bank L. E. Griffin, Home Federal Savings & Loan

2019-20 SOUTH CAROLINA BANKERS SCHOOL BOARD

Chairman Annette L. Scott, Countybank Chairman-Elect

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

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

Joseph A. Painter, First Community Bank Michelle Seaver, United Community Bank J. Reeves Skeen, First Citizens Bank Mze Wilkins, Ameris Bank

Contact a relationship manager about your bank’s needs at correspondentservices@ftb.com or toll-free at 800-453-7686. Holding Company Loans • Fed Funds Letters of Credit • International Services Image Cash Letter • Settlement Services Commercial Safekeeping

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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.

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!

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.

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.

David L. Morrow, Past Chairman South Carolina Bankers Association

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.

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.

SUMMER 2019 • PALMETTO BANKER 5 P ast C hairman ’ s m essage

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.

2019 ANNUAL MEETING ReportChairman’sfrom

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.

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.

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

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 Erwinindustry.hasworked 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.

SET SCBA CHAIRMAN ON PATH TO Father’s Advice Banking

PhotographsSuccessbyJohnC.Gillespie

6 SUMMER 2019 • PALMETTO BANKER C over s tory

Despite his myriad successes over the years, banking wasn’t Erwin’s initial goal when he began at Clemson University.

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.

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.

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.

Promptedsaid.by

“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?’

“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.”

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.

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

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.

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.

“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

SUMMER 2019 • PALMETTO BANKER 7 SAMUEL L. “SAM” ERWIN Age ................ 51 Position Carolinas Market President, Chairman,IBERIABANKSouth Carolina Bankers Association Education ...... Bachelor’s Degree Financial Management, Clemson University Hometown Greenwood Family ............ Wife, Meg; two sons

C over s tory 8 SUMMER 2019 • PALMETTO BANKER

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.

“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.”

RETURN TO ROOTS

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.”

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.

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.

“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.”

Erwin sees IBERIABANK, which has $31 billion in assets nationwide, as a return his early-career experience.

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.

“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.

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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“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.

“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 recognizes that it’s crucial to be proactive rather than reactive, both as a banker and as chairman of the Bankers Association.

a market-centric model, meaning most decisions are made locally. However, some centralization is essential, Erwin said.

IBERIABANKdeveloped.”employs

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 Erwinresponsive.”hasbeen 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.

“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.” tory

“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.”

“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 IBERIABANKsaid.has 190 branches nationwide, with locations in 12 states,

“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.”

C over s

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.

“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.

“It’s very impressive how the Association has responded to the changes within the

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

“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

Erwin said the Bankers Association helps accentuate the positive attributes of the banking profession and has proven beneficial to his career.

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

SUMMER 2019 • PALMETTO BANKER 11

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SUMMER 2019 • PALMETTO BANKER 13 a B a U P date

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.”

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.

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.

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.

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.

Credit Union

The most recent criticism comes from a respected independent research firm— Federal Financial Analytics, run by

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.

DEBATE

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.

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.

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.

REFRAMING THE

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

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.

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.

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

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.

14 SUMMER 2019 • PALMETTO BANKER

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

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.

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,

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

INCREASE CAROLINA OPPORTUNITY

JOB TAX CREDIT TIERS

TO SOUTH

Creates State Tax Planning

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.

• Has the bank created new jobs that exceed the required job creation thresholds in the past three to five years?

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.

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

Management should ask the following questions in analyzing the potential impact South Carolina job tax credits may have on their institution:

must also meet a wage threshold test to determine whether they receive the full credit amount or 50% reduced credit.

• Is there an opportunity to pair the job tax credits with other economic incentives?

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.

• 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?

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.

JOB TAX CREDIT DEVELOPMENT TIERS $1,500 credit per new, full-time job Anderson, Beaufort, Charleston, Dorchester, Greenville, Lexington, Newberry,Spartanburg,Richland,York $2,750 credit per new, full-time job Aiken, Berkeley, Florence, Georgetown, Greenwood, Jasper, Pickens,Lancaster,Kershaw,Oconee,Saluda,Sumter $4,250 / $20,250* credit per new, full-time job Abbeville, Calhoun, Cherokee, Chesterfield, Colleton, Darlington Edgefield, Fairfield, Horry, Laurens,UnionMcCormick, *2019 Credit Amount $8,000/ $25,000* credit per new, full-time job Allendale, Bamberg, Barnwell, Marlboro,Hampton,Clarendon,Chester,Dillon,Lee,Marion,Orangeburg,Williamsburg *2019 Credit Amount TIER I TIER II TIER III TIER IV

SUMMER 2019 • PALMETTO BANKER 15

How Best to Start a New Bank Today

WHY BUILD IT? THE DE NOVO PROCESS

16 SUMMER 2019 • PALMETTO BANKER d e n ovo U P date

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.

There are several benefits to a de novo charter approach, specifically:

INTRODUCTION

• A clean slate to start with, including the latest technology without potentially cumbersome or outdated legacy systems

BUILD IT OR BUY IT:

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

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

• An improved regulatory willingness to facilitate formation of new banks with a more definite time frame for approval

By: Neil E. Grayson, Benjamin A. Barnhill, and Richard E. Davis, Jr.

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

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.”

• Additional flexibility to structure compensation for organizers who undertake the effort to rebuild the bank or contribute at-risk capital to the venture

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.

• Substantially more flexibility in developing the bank’s business plan, including a niche or specialtyfocused plan, and in raising capital in multiple rounds at different valuations and on an as-needed basis, leading to greater interest from 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

• 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

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.

• Potentially high costs of replacing legacy infrastructure/IT systems

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.

But there are also unique headwinds that organizers choosing to buy or invest in a smaller charter approach face, including:

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

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.”

• 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

• Less clear regulatory pathway and timeframe for regulatory approval

• A shortened de novo restriction period of three years

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.

Benefits in buying an existing charter to operate a de facto de novo include:

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

CONCLUSION

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.

• (Hopefully) existing profitability of the established bank

• Existing systems, which allow a bank to start at “second or third base”

SUMMER 2019 • PALMETTO BANKER 17

WHY BUY IT? THE EXISTING BANK MODEL

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.”

18 SUMMER 2019 • PALMETTO BANKER s CB a a nn U al C onvention

There were over 30 exhibitors presenting their valuable product and services to our bankers.

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.

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.

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.

30 Year Highfor2019 Annual Meeting

ATTENDANCE AT

Please mark your calendars now for next year’s meeting for June 14-17, 2020 at The Broadmoor.

SUMMER 2019 • PALMETTO BANKER 19

20 SUMMER 2019 • PALMETTO BANKER s CB a a nn U al C onvention

SUMMER 2019 • PALMETTO BANKER 21

Young Banker of the Year

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 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 is married to the former Kieley Duncan of Spartanburg and they have two daughters and a son.

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.

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 SUMMER 2019 • PALMETTO BANKER s CB a a nn U al C onvention

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

Southern National Bank of SC, Anderson

2016 Jennifer T. Jones

NBSC, a division of Synovus, Columbia

1995 *Sterling J.U. Laffitte

Outstanding Young Banker

BB&T of South Carolina, Spartanburg

1972 *Hugh M. Chapman

The C&S National Bank of SC, Columbia

Carolina Commercial Bank, Allendale

1998 James A. Bennett

First National Bank of SC, Columbia

Bankers Trust of South Carolina, Columbia

1985 Stephen L. Chryst

South Carolina National Bank, Columbia

Carolina First Bank, Greenville

1977 W. Douglas King

1993 Richard A. Shirley

1979 Claude E. Surface, Jr.

The County Bank, Greenwood

First Citizens Bank, Columbia 1999 F. Justin CarolinaStricklandFirstBank, Columbia

2001 L. Andrew Westbrook III

1976 Paul F. Holcomb, Jr.

2009 R. Scott Plyler

South State Bank, Columbia

2019 Blake G. SouthernTaylorFirstBank, Columbia

First Citizens, Columbia

2018 Joseph A. Painter

1986 R. Charles Eldridge, Jr.

The C&S National Bank of SC, Columbia

Wells Fargo, Columbia

The C&S National Bank of SC, Columbia

NCNB National Bank of SC, Spartanburg

1984 Douglas T. Yeates

2012 J. Holt Chetwood

First National Bank, Orangeburg

2017 John C. Griggs III

1978 *Henry S. Laffitte

South Atlantic Bank, Myrtle Beach

2011 Tyler B. Hudson

Citizens Building & Loan, Greer

The National Bank of S.C., Columbia

1987 G. Anderson Douglas, Jr.

1973 *Arthur M. Bjontegard, Jr.

2004 W. Gerald CapitalBank,StevensGreenwood

2006 Edward McKelvey, Jr.

2008 Michael E. Edens

1989 Nancy L. Grden

1994 Fred L. Green III

The Palmetto Bank, Laurens

1988 Mack I. Whittle, Jr.

First National Bank of the South, Spartanburg

1975 L. Leon Patterson

First Federal, Charleston

1971 Robert V. Royall

Rock Hill National Bank, Rock Hill

2003 J. Barry Ham

2002 Peter M. Bristow

1997 Michael C. Crapps

2014 Kevin W. Lindler

2000 Robert R. Hill, Jr.

Carolina National Bank, Easley

2007 Kitty B. Payne

South Carolina National Bank, Columbia

The Exchange Bank, Estill 1996 R. Thornwell Dunlap III

2015 R. Montague Laffitte III

1990 William C. Barker

1992 W. Jennings Duncan

NBSC, Columbia

First Community Bank, Columbia

The National Bank of SC, Columbia

1974 John G.P. Boatwright

1981 Mason Y. Garrett

1982 J. Harold Chandler

1983 Joel A. Smith III

The C&S National Bank of SC, Columbia

South Carolina National Bank, Columbia

Republic National Bank, Columbia

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

1991 John S. Poole

First Community Bank, Lexington

First Citizens Bank, Columbia

The Bank of Beaufort, Beaufort

1980 Lloyd I. SouthernHendricksBank&Trust Company, Columbia

The Bank of Clarendon, Manning

South Carolina National Bank, Columbia

2005 Samuel L. CommunityErwinBancshares, Inc., Orangeburg

Bankers Trust of South Carolina, Columbia

The Anchor Bank, Myrtle Beach

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

*Deceased SUMMER 2019 • PALMETTO BANKER 23

The Conway National Bank, Conway

2010 Gray L. PalmettoHendersonStateBank, Hampton

Bank of America, Business, Control Analyst

James Barry Ham Bank of Clarendon, President

Donna J. Emens

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

THE SCBA CONGRATULATES

Gregory R. Shuler

Lisa S. DeHaven

John R. Peters III

GrandSouth Bank, Head Teller

Palmetto State Bank, Vice President Compliance

Bank of America, Private Client Manager II

South State Bank, SVP, Consumer Loan Administrator

Bank of America, Document Administrator III

First Palmetto Bank, Chief Executive Officer

First Community Bank, Customer Service Representative / Office Manager

The Bank of South Carolina, Senior Vice President THOSE WHO HAVE SERVED 35 YEARS

5035 s CB a a nn U al C onvention

First Citizens Bank, Area Executive Vice President

Bonnie Crowley

South State Bank, Deposit Operations Team Leader

Palmetto State Bank, Head Teller

James A. Bennett

Wanda H. Galloway

Bobbie C. Martin South State Bank, Commercial Loan Assistant II

Ellen Cavanaugh

Douglas R. Mount Bank of America, Document Administrator III

Carolina Alliance Bank, Banking Officer/ Deposit Operations Manager

Joanna Hooker

B. Craig Robinson

Henry Phillips McDowell

Patty Brownlee

J. Robert Mauney Bank of America, Wealth Management Advisor

Susan L. McLeod

Janice N. Bonnett

South State Bank, SVP, Director of Ops and Compliance

Sharon W. Bryant

Samuel Mark Munn

Martha E. Duncan

Candace “Candy” L. Cherry

Dana Magic

First Citizens Bank, Regional President

Misty Church

Paula Gore

Elizabeth K. Anthony

South State Bank, SVP, Protfolio Review Manager

South State Bank, Loan Assistant

South Atlantic Bank, SVP Corporate Liaison

First Citizens Bank, Sales & Service Rep II

Vicki M. Faile

Barbara A. Davis

CresCom Bank, Customer Service Rep

First Citizens Bank, Sales & Service Rep II

24 SUMMER 2019 • PALMETTO BANKER

DeeDee Kehl

The Bank of South Carolina, Senior Vice President

First Community Bank, Executive Assistant

Sam Peden

Gail B. Brazell

The Bank of South Carolina, Executive Vice President

CresCom Bank, Senior Retail Mortgage Underwriter

Sonya Arnold Motes

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

BB&T, Branch Banker

Michelle M. Harring

CresCom Bank, Business Development Officer

Cheryl A. Gambrell

CresCom Bank, Director of Loan Administration

Daniel “Dan” B. Minnis

First Community Bank, Chief Commercial & Retail Banking Officer

Douglas H. Sass

Phyllis E. Shropshier

Ronald L. Strawn

Samuel R. Small, Sr.

Bank of Travelers Rest, Chief Executive Officer

Cindy Brewer

Theresa “Terri” P. Gaillard

Wells Fargo, Lead Teller

South State Bank, AVP, Consumer Lender

Bank of America, Senior Financial Advisor

J. Ted Nissen

GrandSouth Bank, Market President Fountain Inn

W. Gerould Clark

Rob Phillips

GrandSouth Bank, Midlands/Coastal Regional Executive

Laura Childs

Vivien Richardson

Peggy D. Burger

Bank of America, Senior Consultant

First Community Bank, Teller

First Citizens Bank, Executive Assistant

Bank of America, Wealth Management Advisor

First Community Bank, Market Executive

First Community Bank, Teller

Half -Century Club Thirty Five-Year Club

Wells Fargo, Personal Banker

Kenneth “Ken” J. Clair

South State Bank, Senior Accountant II

CresCom Bank, Branch Manager

THE SCBA CONGRATULATES THOSE WHO HAVE SERVED 50 YEARS

R. Bruce White

South State Bank, Teller II

Carey Harris

Jobeth K. Woods

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

Thirty Five-Year Club

Harry Gause Maintenance, Anderson Brothers Bank, Mullins

Frank Holding, Sr. Chairman, First Citizens Bank, Smithfield, NC

John B. Wood

James “Jamie” Edward Lawson

Lisa H. Smith

Sharon Frizzell Mortgage Closing Coordinator, South State Bank, Columbia

SUMMER 2019 • PALMETTO BANKER 25

Gloria V. Staley

James H. Sloan

Renee Wilcox CresCom Bank, Loan Processor

C. Ronald Coward

Carolina Alliance Bank, Client Services Representative

W. Jane Youmans Palmetto State Bank, Teller

GrandSouth Bank, Loan Administration Specialist

Sidney Shealy Business Banker, BB&T, Chapin

First Community Bank, Business Services Specialist

South State Bank, Loan Booking Specialist

South State Bank, Banking Officer, Residential Funding Supervisor

CEO, Arthur State Bank, Union

W. C. Bennett

Gail H. Stone Palmetto State Bank, CSR

In Memoriam

Raymond S. Caughman

Board Member, The Bank of South Carolina, Charleston

Secretary/Treasurer, Home Federal Savings & Loan, Bamberg

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

(continued)

Phyllis D. Brosh

Indirect Buyer, Anderson Brothers Bank, Kingstree

Credit Officer, GrandSouth Bank, Greenville

W. D. Rhoad III

FSR, First Citizens Bank, Mullins

Allen S. Williams

Anderson Brothers Bank, Maintenance

Angela Shelley

Vice Chairman, Palmetto State Bank, Estill, Past Chairman, SCBA

Elaine Steading

J. Virgil Hicks, Sr. Chairman of the Board, Home Federal Savings & Loan, Bamberg

Lydia B. Suggs

REMEMBERING THOSE WHO ARE NO LONGER WITH US

VP, Branch Manager, South State Bank, Florence

Betty Jo Skelton Bank of America,ManagerRelationship

Susan T. Caulder Night Processor, Anderson Brothers Bank, Mullins

BB&T, Senior Teller

GrandSouth Bank, Upstate Regional Executive

Senior Mortgage Underwriter, First Reliance Bank, Florence

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

Chairman, BB&T/The Lexington State Bank, Lexington, Past Chairman, SCBA

David E. Burgess

First Citizens Bank, Sales & Service Rep II

Gina M. Smith

Carolina Alliance Bank, Assistant VP/Accounting Manager

Kendall R. Stewart Bank of Clarendon, CFO

R. Montague “Monk” Laffitte

Alan S. Hovermale

Rachel Weatherford

Daniel “Chip” Amaker Business Services Officer, BB&T, Columbia

Don’t miss this inaugural event – it will be a BLAST! REGISTER NOW! QUESTIONS: Contact Carolyn L. Bradley, Young Bankers Division or Donna S. Taylor, BankPAC

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.

T A L E N T G A T H E R S H E R TE A L E N T G A T H E R S H E R E SPECIALENDSDECEMBER31, 2019! Select Three 30-day Online Job Posting Package for $799 and enter code BUY2GET1 to receive savings at checkout Take Advantage of our Special Offer Online: BankTalentHQ.com/specialoffer Cost: $799 $598 B U Y T W O 3 0 - D A Y J O B P O S T I N G S , G E T O N E F R E BE U Y T W O 3 0 - D A Y J O B P O S T I N G S , G E T O N E F R E E y o U ng B ankers d ivision 26 SUMMER 2019 • PALMETTO BANKER

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.

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.

SUMMER 2019 • PALMETTO BANKER 27

Dedicated personal relationship manager for partners

Bank core integration capability

24/7 award-winning U.S. based customer service

FITECH

Over 28 years of payment experience

Dedicated personal relationship manager for partners

Matthew Mingenback

True processor (not an ISO)

Partnered with over 100 banks

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Works exclusively with community banks

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We are a leading merchant services provider committed to helping community banks be competitive and relevant in today’s market.

IT COULD BE FITECH

We are a leading merchant services provider committed to helping community banks be competitive and relevant in today’s market.

Works exclusively with community banks

IT COULD BE FITECH

DO YOU KNOW WHO YOUR PAYMENT PROVIDER IS?

Bank core integration capability

DID YOU KNOW THAT FITECH:

Partnered with over 100 banks

817.698.2268 mmingenback@fitech.com CAN YOUR CURRENT PROCESSOR SAY THE SAME? www.fitech.com © Copyright 2019 Fitech Payments, LLC. All rights reserved. Fitech Payments, LLC is a registered ISO of Fifth Third Bank, Cincinnati, OH. Let us create a merchant services program that’s fit for your bank!

South Carolina Bankers School

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

SUMMER 2019 • PALMETTO BANKER 29

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

2019

ChairmanSchool.ofthe

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.”

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

B ankers s C hool

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

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.

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! s C hool

Thursdayuplifting!evening’s

Chelsea Black, South State Bank

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.

Chastity Ginn, Palmetto State Bank

Amber Bell, Coastal Carolina National Bank

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.

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.

Justin Chastain, Strategy Corps.

B ankers

Bart Berger, South State Bank

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

Maggie Harken, The Bank of South Carolina Ethan Sartain, Sandhills Bank

Congratulations to the winning teams:

COMMUNITY B: “PLUS ONE BANK AND TRUST”

Angelo Parker, Federal Reserve Bank of Richmond

Nathan Hughes, United Community Bank

Danielle Fields, Countybank

COMMUNITY A: “ENDEAVOR BANK”

32 SUMMER 2019 • PALMETTO BANKER

B ankers C hool

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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.

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

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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.

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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.

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.

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SUMMER 2019 • PALMETTO BANKER 35 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

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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:

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

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

SOUTHERN FIRST BANK

NELSON MULLINS RILEY & SCARBOROUGH

Wells Fargo Home Mortgage has named J. Benjamin Black as a Home Mortgage Consultant in its Charleston Office.

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.

has joined Countybank as Vice President, SBA Business Development Officer in Greenville.

FIRST NATIONAL BANK

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

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.

Vicki Coleman J. Benjamin BlackRhett Calcutt

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

Eric Schelble Thomas Anderson

BradCOUNTYBANKCantrell

UNITED COMMUNITY BANK

Jon Tomberlin has been appointed Managing Partner effective August 1.

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

SOUTH STATE BANK

COMMUNITY FIRST BANK

Eric Schelble has joined United Community Bank in Columbia as Vice RelationshipPresident/CommercialManager.

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.

ANDERSON BROTHERS BANK

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

WELLS FARGO

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.

CRESCOM BANK

DIXON HUGHES GOODMAN

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

Senior Examiner Remonia Felix has been promoted to Chief Examiner.

Tammy Strickland

SOUTH CAROLINA BOARD OF FINANIAL INSTITUTIONS

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 AndersonStreet.Brothers

Wells Fargo Commercial Banking announced that Thomas Anderson has been tapped to lead commercial banking operations for South Carolina.

AMERIS BANK

36 SUMMER 2019 • PALMETTO BANKER P ersonal t ransa C tions

843-538-6814 | PO Box 1766, Walterboro, SC 29488 | www.CompassSouthAppraisals.com Email Requests to: officemanager@CompassSouth.com Compass South Appraisals specializes in appraising commercial and properties.agricultural There are very few appraisal companies that seek this kind of specialization. Typical Examples Include • Offices • Retail Spaces • Industrial Buildings • CAGE Animal Operations • Agricultural & Timberland • Orchards Credible. Timely. Competitive. Locations Served • Agriculture and Timberland appraisals are provided in all counties below • Commercial property appraisals provided in the blue highlighted counties below SUMMER 2019 • PALMETTO BANKER 37

UNITED COMMUNITY 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.

COASTAL STATES BANK

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.

3 SC BANKS NAMED TO FORBES’ 2019 “BEST IN-STATE BANKS

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.

B anking n ews 38 SUMMER 2019 • PALMETTO BANKER

CAROLINA FINANCIAL/CAROLINA TRUST

United Community Bank is proud to have been named one of the Best Banks to Work For by American Banker and Best Companies Group.

Consultants in

29 ..........How

and Trust Administration 2019 DECEMBER 17

Member=$280 / Non-Member=$675

HERE IS A SAMPLING OF UPCOMING WEBINARS:

Downtown Vista, Columbia, SC

October Springhill30-31Suites

SCBA WEBINARS: Another source for your training needs! Visit www.scbankers.org for new webinars added daily. All registration fees are subject to change.

Corporate Trustees NOVEMBER 20 .......The

Call Report Seminar

DECEMBER 2019

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 underwriting—and everything in between. We can’t wait to show you how we can make your job easier!

Member=$515 / Non-Member=$845

For Consumer Loan Officers, Branch Managers, Assistant Branch Managers, Personal Bankers, Management Trainees and Collection Officers.

Member=$295 / Non-Member=$785

Country Club, Blythewood, SC

Model Validation DECEMBER 5..........Recent Developments in

Member=$125 / Non-Member=$175

Member=$295 / Non-Member=$750

For Executive risk-management teams and regulatory compliance officers.

Member=$230 / Non-Member=$485

December 5

For CEOs, lenders and credit officers.

October Courtyard10Marriott at USC, Columbia, SC

Young Bankers Division Annual Scholarship Golf Tournament October Columbia7

Community Bankers Forum October 24

For CEOs, CFOs, Senior executive management teams and associate members.

Partnering for Innovation NOVEMBER 12 2019 Industry Update

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.

Graduate Columbia (formerly the Inn at USC), Columbia, SC

Credit CourtyardDecemberConference3Marriott at USC, Columbia, SC

OCTOBER 2019

2019 Calendar of Events

OCTOBER to Fintech, for Role of Successful Estate .......Drive Stronger Leads with Digital Marketing

For Bankers, Associate Members and Vendors.

Fall Compliance Conference

For Operations officers, CEOs, CFOs, internal auditors, and anyone who is responsible for the preparation, verification or certification of the call reports.

NOVEMBER 2019

Buy

Member=$125 / Non-Member=$175

Consumer Lending School

Palmetto Shooting Complex, Edgefield, SC

Marriott Hotel Downtown, Columbia, SC

Young Bankers Division BankPAC Sporting Clays Tournament Fundraiser November 20

2009 Park Street • PO Box 1483 Columbia, SC 29202-1483 The 2020 SCBA Annual Convention JUNE 14-17, 2020 | COLORADO SPRINGS, COLORADO Save the date