Palmetto Banker Fall 2013

Palmetto Banker

Fall Issue 2013-4

South Carolina Bankers Associa on

SCBT: The Return of the Publicly Traded Banking Giant to Columbia

Contents 2009 Park Street, Post Office Box 1483 Columbia, S.C., 29202-1483 Phone: 803.779.0850; Fax: 803.779.0890 Web: www.scbankers.org Chairman Art Seaver, Jr. Southern First Bank, Greenville Chairman-Elect H. Blake Gibbons, Jr. The Ci zens Bank, Olanta First Vice Chairman David M. Lominack TD Bank, N.A., Greenville Treasurer Cur s A. Tyner, Sr. Heritage Community Bank, Hartsville Immediate Past Chairman F. Richard “Rick” Redden, III Wells Fargo, Charleston SCBA Staff President and CEO Fred L. Green, III Execu ve Vice President, CFO/BankPAC Treasurer Donna S. Taylor Execu ve Vice President, Employee Benefit Trust/ South Carolina Bankers School Teresa D. Taylor Senior Vice President, Conven ons/Conferences E. Anne Gillespie

Strong Turnout Boosts SCBA Young Bankers Golf Tournament Page 16

Rexroad Takes Reins as CEO at Carolina Financial Corp.

Page 29

President’s Message

5

SCBT: S.C.’s New Publicly Traded Bank Power

6

Looking Back: SCBT and First Federal - From the Great Depression to the Great Recession

8

First Ci zens Turns Reconstruc on-Era Building into 21st Century Bank Branch, Café 11 BankExec: Preparing Tomorrow’s Bankers Today 12 S.C. Bankers School - A Look Back

13

The 2013 Community Bankers Forum

15

Senior Vice President, Legisla ve & Regulatory A. O’Neil Rashley, Jr.

New Rules on Private Capital-Raising Deals

19

Vice President, SCBA Services, Inc. Carolyn Laffi e

Calendar

19

Director, Government Rela ons Amber Barnes

Meet Your Legislator - Rep. Bruce Bannister

22

Director, Adver sing & IT M. Caroline Sheorn

Bank News

26

Administra ve Assistant Bonnie Nelson

Personal Transac ons

30

Director, Marke ng and Communica ons; Editor, Palme o Banker R. Kevin Dietrich

Good Samaritans

37

New Associates Members

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The Palme o Banker is a publica on of the South Carolina Bankers Associa on. The magazine exists to serve its members by communica ng news of interest, educa on and SCBA ac vi es. Items from members are welcome, however the editor reserves the right to refuse copy.

With the excep on of official announcements, the SCBA disclaims responsibility for opinions expressed and statements made in ar cles published in the Palme o Banker.

Cover photo: SCBT Chief Execu ve Robert Hill, le , and President Wayne Hall, on the fourth-floor of their company headquarters in Columbia. Hill and Hall helped engineer the merger of SCBT and First Financial earlier this year, crea ng the largest publicly traded bank company in South Carolina.

Photo by Zach Sykes/Octagon Solu ons

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President’s Message

Credit Unions Need to Start Paying Their Fair Share

F

ounding Father Benjamin Franklin once famously quipped that “in this world nothing can be said to be certain, except death and taxes.” Apparently, that axiom doesn’t quite ring true for credit unions.

For nearly a century, the credit union industry has operated under a taxexempt status, beginning in 1917 when credit unions were small, volunteer-run opera ons that catered to a common group of individuals, such as those who belonged to the same church or place of employment.

But today’s credit union is o en a far different creature than that of 100 years ago.

Many modern credit unions are largely indis nGreen guishable from banks in how, and with whom, they conduct business. Large credit unions have expanded far beyond their original small, well-defined membership fields and now aggressively pursue higherincome individuals and businesses.

Just like banks, these credit unions offer all types of deposit accounts, loans and online banking, and have wide-ranging networks of branches and ATMs. However, there is s ll one difference between banks and credit unions: Banks pay corporate income taxes and credit unions do not.

That discrepancy gives credit unions a compe ve benefit in that, unlike banks, they don’t have to factor the expense of corporate income taxes into the pricing of their products and services. Ul mately, of course, banks, like all businesses, pass tax costs onto customers.

Credit unions, however, are connuing to fight against paying their fair share of taxes.

How much of a benefit do credit un-

ions receive from their tax exemp on?

The most recent U.S. Office of Management and Budget tax-expenditure analysis es mated that credit unions’ tax exemp on will reduce federal tax revenues by $9.46 billion in the next five fiscal years (2014-2018).

I don’t need to tell you that our federal government is facing innumerable fiscal challenges in the years ahead. The funding of Social Security, Medicaid, Medicare and protec ng our na on from those who would do us harm are just a few of the major expenditures that are only going to increase in the coming years.

The credit union industry’s tax exemp on is of par cular significance now because the leadership of the U.S. Senate Finance Commi ee has begun the process of reforming the Federal tax code.

Sens. Max Baucus, D-Montana, and Orrin Hatch, R-Utah, have stated that they want to reform the tax code without the current special provisions in the form of exclusions, deduc ons and credits. They believe that exclusions should only remain if they help grow the economy, make the tax code more equitable or promote important policy objec ves. It is expected that the House Ways and Means Commi ee will begin a similar process in the near future.

The credit union industry’s 96-year tax exemp on does not meet these criteria and can no longer be jus fied.

That’s why we have asked SCBA members to send le ers to their senators and respec ve representa ve to let them know that the credit union tax exemp on no longer serves its original purpose and simply isn’t necessary.

But credit unions have a good deal at present – a very good deal – and they know it. That’s why the industry has launched a na onal campaign tled “Don’t Tax My Credit Union.” The effort, “dedicated to ensuring Congress doesn’t raise taxes on 96 million credit union members na onwide and preserves

financial choice for American consumers,” is misleading because no one has suggested levying taxes on individual credit union members.

The campaign is nothing more than a sleight of hand that seeks to distract American consumers from discussions about why credit unions aren’t paying their fair share of taxes.

The fact is, if Congress removed the credit union exemp on, credit unions would be taxed just like banks. No one anywhere has men oned decreasing financial choices for consumers.

Credit Unions make up a $1 trillion industry today, compe ng for the same business and offering the same prod-

‘To put it bluntly, if credit unions want to act like banks, then they should be taxed like banks.’ ucts as community banks.

They have grown to control a significant share of the market for banking services, par cularly in retail banking, and today there are 208 credit unions with more than $1 billion in assets. Another 223 are between $500 million and $1 billion in assets.

These ins tu ons are a far cry from the common-bond associa ons that sprang up in the first half of the 20th century to serve people of modest means.

The bo om line is this: The need for the industry’s tax exemp on no longer exists and there’s no reason that Americans should have to shoulder credit unions’ tax burden. Further, in the face of rising na onal debt levels, it’s a subsidy we can no longer afford.

To put it bluntly, if credit unions want to act like banks, then they should be taxed like banks.

(Fred L. Green III is the president and CEO of the South Carolina Bankers AssociaƟon.)

Cover Story

Hill, Hall & Co.: Striking a Blow for S.C., Columbia

By Kevin Dietrich Palme o Banker Editor

C

OLUMBIA – Robert Hill pleads guilty to being parochial in 2002 when it came me for him and other execu ves of what was then First Na onal Bank to relocate to Columbia and choose a new name for the fastgrowing opera on.

Hill was then president of First Naonal, at that point a $1 billion ins tuon that was heavily invested in many of the more-rural areas surrounding its home base of Orangeburg. Hill, Chief Execu ve Officer John Hipp and those around them knew the me had come to embrace a more aggressive, expansive strategy, one that encompassed a wider swathe of South Carolina. The plan they devised proved wholly inadequate within just a few years.

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“Eleven years ago we named our company South Carolina Bank and Trust because we thought we’d only be growing in South Carolina for the next 20 or 30 years,” Hill said. “There was ini ally no vision on going out of the state, and that was shortsighted on my part.”

Hill, however, didn’t let his ini al strategic myopia interfere when opportuni es arose for the bank to expand beyond the Palme o State.

A li le more than a decade a er moving into the company’s four-story office on Gervais Street in Columbia, SCBT – as the bank would later shorten its name to – has far surpassed anything Hill, or any of the long- me board members or bank employees, could have imagined: •

Its more than $8.2 billion in assets makes it currently the largest publicly traded bank holding company

• •

headquartered in the state and the sixth-largest public company in South Carolina; It has nearly 150 branches in the Carolinas and Georgia; and With approximately 2,300 employees it’s among the largest employers based in South Carolina.

In the past 3-1/2 years alone, SCBT has completed six deals, including, most recently, a major deal with First Financial Holdings Inc., the $3.2 billion parent of First Federal Bank, formerly First Federal Savings & Loan of Charleston.

The $300 million deal, which was completed in late July of this year, added 65 branches to SCBT’s footprint in North Carolina and South Carolina, solidifying the bank’s posi on as a major player in nearly every significant South Carolina market.

Not surprisingly, the deal caught the a en on of those outside the bank.

“The FFCH combina on takes SCBT to a new and enviable compe ve level – and we are expec ng con nued growth and success from SCBT over me,” said Jefferson Harralson, managing director with Keefe, Bruye e and Woods, a bouque investment bank that specializes in the financial services sector.

Fred Green, president and chief execu ve officer of the South Carolina Bankers Associa on, also predicted success for the merged company.

“Knowing both ins tu ons and having observed how they operate, I’m confident that the combina on will be a successful one,” he said.

Hill, who took over as CEO in 2004, said the goal of SCBT’s growth has never been growth for growth’s sake.

“The goal wasn’t ge ng huge or being a mul -state bank company,” he said. “The goal was to be a good, sound, profitable and growing bank; to be a steady, consistent performer.”

The seeds of the SCBT-First Federal deal were sown in 2009, when former First Federal Chief Execu ve Officer Tom Hood contacted Hill.

“Tom called me up and said ‘Let’s sit down and talk,’” Hill recalled. “We did talk and we recognized that there could be a lot of benefits to a merger, but there was also too much turbulence in the financial markets going on then, so we said let’s wait and talk again later.”

Also in on that mee ng was Wayne Hall, who succeeded Hood as CEO of First Federal and is now president of the merged company.

“Prior to talking with Robert, Tom and I began to think about where we wanted to expand, and we both agreed that the Carolinas as a whole was a great market with a lot of poten al for growth,” said Hall, who joined First Federal in 2006, coming from Provident Bank of Maryland, then the largest ins tu on based in that state.

Hall and Hood began to discuss how they wanted to go about adding to their franchise. Op ons included acquisi ons, growing organically by opening offices in new and exis ng markets, or merging with another ins tu on.

Given the increase in regula ons over

the past few years, Hall believes banks need to reach a certain size – about $10 billion in assets – in order to create economies of scale that allow them to maximize their profitability while also providing a wide range of services to customers.

With First Federal having less than $2 billion in assets in 2009, it was apparent that the road to $10 billion would be a long one unless the company took drama c steps.

S ll finding the right partner wasn’t a decision Hall, who spent 20 years working in mergers and acquisi ons for Provident Bank before moving south, took lightly.

“It’s a lot like da ng: You want someone with a background similar to your own, who has values similar to your own, a culture similar to your own,” he

forward just yet.

“We felt like our stock was not trading at its fair value,” Hall said. “I told Robert that we were in the middle of several transac ons that would allow our shareholders to ul mately see a greater benefit when we got around to doing a deal, and that’s exactly what happened.”

Once First Financial completed the deals in the pipeline, and completed each one successfully, Hall knew the me was right for the ins tu on to go forward with the merger, confident that all par es – shareholders, customers and employees – would benefit, he added.

The combina on, announced on Feb. 20, 2013, created the second-largest publicly traded bank holding company in S.C. history, a er The South Financial

SCBT employees in training inside a specially designed room at the company’s headquarters on Gervais Street. Photos by Zach Sykes/Octagon Solu ons.

said. “These things o en don’t happen overnight; they o en take me.”

Hall said he remembers the ini al mee ng with SCBT went well, but said the ming just wasn’t right.

“There’s risk with any merger, so our thought was, ‘Why add addi onal risk of doing a deal during difficult mes?’” he said.

A couple of years later, a er Hall had taken over as chief execu ve at First Federal, he and Hill met again. Each believed the deal made sense for both ins tu ons, but Hall wasn’t ready to go

Group, later acquired by TD Bank. It also meant Columbia, which had seen the lion’s share of its public companies disappear since the mid-1980s, was back on the map in the eyes of investors.

While Columbia does have the state’s largest privately owned bank in First Ci zens, which is slightly larger than SCBT at approximately $8.3 billion in assets, it’s been some me since a major publicly traded bank company was based in the Capital City.

See SCBT, page 35 7

Looking Back

SCBT, First Federal Trace Roots to Great Depression

T

hat both SCBT and First Federal trace their histories back to 1933 isn’t as curious as the fact that each opted to begin opera ons at the height of the Great Depression.

Looking back, it would have been difficult to have picked a less auspicious me in our na on’s history to jump into the financial services market.

That year, newly elected President Franklin Roosevelt had proclaimed a na onwide bank holiday, declaring financial ins tu ons across the country closed on March 6, 1933, in a empt to stem the consumer alarm that had led to the failure of thousands of banks and savings and loans. While ins tu ons

failed in 1933 alone. In South Carolina, 110 commercial banks failed between 1930 and 1933. That came on the heels of more than 200 bank failures in the Palme o State during the 1920s, a par cularly difficult economic period in the state’s history, according to Making Change: South Carolina Banking in the Twen eth Century, a 1990 work by John G. Sproat and Larry Schweikart.

Despite the tough mes, seven business leaders got together in 1933 in Orangeburg and pledged to purchase at least $1,000 in stock to put toward a new bank. Together they raised $62,500. The group then borrowed a matching amount from the federal

First Federal Savings and Loan Associa on execu ves and directors celebrate the thri ’s 25th anniversary in 1959. On the far le is founder Mary Horres.

were allowed to commence opera ons on March 13, many banks and thri s never opened their doors again.

Despite Roosevelt’s efforts and the passage of the Emergency Banking Act in March 1933, some 4,000 commercial banks and 1,700 savings and loans 8

government’s Reconstruc on Finance Corp., a federal agency established a year earlier to make loans to banks, mortgage associa on and other businesses, according to Donna Pullen, senior vice president and director of public rela ons for SCBT.

While there was plenty of risk involved with opening a bank during the Great Depression, the organizers of what would become SCBT also recognized opportunity: There were no other financial ins tu ons based in Orangeburg when SCBT’s forerunner, First Na onal Bank, with six employees and bank President Robert Lide, opened its doors on Jan. 2, 1934, in the old Edisto Na onal Bank building at 170 Russell Street. Every other bank and thri in the city had failed by 1933, Pullen said.

First Federal filled a void, as well, as the Depression had stripped Charleston of its thri s. Mary Horres, a 32-year-old Charleston businesswoman, realized that, as a result, there was no prac cal long-term real estate financing of any kind available in the city, according to Dee Bee Wright, the former chief compliance officer for First Federal who holds the same tle with the new company formed by the July merger of SCBT and First Federal.

Horres decided to meet with Charleston a orney and World War I Dis nguished Service Cross recipient Buist Rivers to discuss what could be done to increase real estate-lending opportunies when she began paging through a pamphlet while wai ng in his office. It explained the Homeowners Loan Act, said Wright, who is the unofficial historian for all things First Federal.

The act authorized a federal agency to establish and regulate savings and loan associa ons na onwide to invest funds by refinancing home loans in distress.

For each dollar of local money invested in the associa ons, three dollars would be invested by the federal government.

These associa ons were organized under a federal charter with strict government supervision and control. Investors would deposit their money, as in a savings account, and these funds would be lent to those persons who wished to build or remodel and repair homes.

Horres recognized that this could be the solu on to Charleston’s short-

age of credit for real estate lending, and brought the idea to Rivers. She then met with regulators, discussing Charleston’s need for a savings and loan associa on, and received Federal approval to move forward.

Charleston Mayor Burnet R. Maybank, who would go on to serve as governor

Cer ficate received by SCBT predecessor First Na onal Bank from the FDIC in 1935, guaranteeing customer deposits up to $5,000.

and U.S. Senator, called a public meeting in late 1933 to explain the basics of a savings and loan associa on and help gin up interest. The favorable response resulted in federal authoriza on for Horres and Rivers to solicit funds to begin the ins tu on. They raised $5,000 in cash and commitments for another $45,000, and received a charter on May 28, 1934.

First Federal was one of very few financial ins tu ons of its me to be founded by a woman. Mary Horres would remain ac ve with First Federal for many decades, serving ini ally as secretary of the ins tu on and as a director un l her death in 1968.

An indica on of how much Charleston has changed in the past eight decades is evident from the fact that First Federal’s first office at 39 Broad Street was leased for $15 a month. It would be three months before First Federal made its first deal, a $2,600 loan for altera ons for a house on Race Street.

Things started slowly at First Na onal, too. In its first year of opera on, the

own holding company, First Na onal bank earned a profit of just $1,395 Corp., two years later. The la er started and directors met each day to consider subsidiaries Na onal Bank of York loans.

County and Florence County Na onal Business picked up for First Federal Bank, in 1996 and 1998, respec vely. during World War II, when military perBy the end of the 1990s, First Na onal sonnel swelled the Holy City. With them came a need for housing and real estate finally made it to the capital city, when loans. The thri moved to a larger space it acquired Columbia’s FirstBank. The moved was a precursor to bigger and at 34 Broad Street in 1943, then had be er things in Columbia, as the comthat structure enlarged and renovated. pany would relocate its headquarters to In 1954, as Charleston’s popula on spilled into surrounding areas, First Fed- Columbia and change its name to South Carolina Bank and Trust in 2002. In eral opened the first branch office of a January of that year, it moved its main South Carolina-based savings and loan, office to 520 Gervais Street. in West Ashley.

It would be from that striking four-stoFirst Na onal also grew steadily. By ry loca on that many of the discussions 1974, it had expanded from its original six employees to 120. A decade later, on surrounding the 2013 merger of SCBT its 50th anniversary, it opened an opera- and First Federal would be conducted. ons center on John C. Calhoun Boulevard and boasted some 200 employees. First Na onal, however, remained rooted to Orangeburg and the surrounding areas. It moved into Cameron through the purchase of the Bank of Cameron in 1956, and St. George, Ridgeland and Walterboro with the acquisi on of the Bank of St. George in 1969. In 1980, First Na onal opened offices in Denmark and Hardeeville, and 11 years later opened a branch in Moncks Corner.

First Federal, which converted to a stock savings company in 1983 and created parent company First Financial Holdings Inc. four years later, made its first thri acquision in 1992, when it purchased Peoples Savings and Loan Associa on of Conway, a company that dated back to 1914.

First Na onal bought First Federal Savings and Loan’s first office, at 39 Broad Street in Santee State Bank in Charleston. When the thri began opera on in 1934, it paid $15 a 1993 and created its month to lease the loca on.

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Feature

First Citizens Turns 1870s’ Building into Branch, Café

F

irst Ci zens combined the past lowing the 1861-65 conflict. Brennen ‘Through the rehabilita- purchased the building shortly a er its with the present this summer when it opened a coffee shop on Ɵon of the Brennen Build- construc on, according to The State the first floor of the recently rehabilinewspaper. ing, First CiƟzens has pre- Brennen’s son, E.J., later operated a tated Brennen Building in downtown Columbia. served an important part grocery store out of the building.

Called the First Ci zens Café, the site By the early 20th century, the Etheris located at 1210 Main Street, near First of Columbia’s history while edge Motor Co. and the Columbia Ci zens’ headquarters, and was opened introducing a new, engag- Motor Co. established Columbia’s first to the public on Aug. 26. automobile dealerships in the Brennen It features not only locally roasted cof- ing and innovaƟve space.’ Building. fee, pastries from various local bakeries The offices, garage and showrooms and free wireless internet, but the café’s were all housed on the premises, ac– Robin Waites baristas can put patrons in touch with a cording to the paper. From 1911 un l Historic Columbia banking specialist should they request 2002 it was home to the Capitol Café. assistance with financial needs.

First Ci zens purchased the structure Founda on Also, an image-deposit ATM is availin 2002 and renovated the building. able for customers to make check or “The Brennen Building is one of the built around 1870, and was one of the currency deposits, view scanned items first structures built on Main Street a er oldest buildings on Main Street and has and total deposits on-screen, and long served as a center for hospitality William Tecumseh Sherman’s Union receive printed check images on their and service,” said Robin Waites, executroops laid waste to Columbia at the receipts. ve director for the Historic Columbia end of the War Between the States.

“The café is a first-of-its-kind concept Founda on. “First Ci zens has gone The building was named for Irish imin Columbia, S.C., and will allow us to to great lengths to protect and restore migrant Michael Brennen, who operbuild rela onships with café patrons many of the original architectural ated a carriage factory at the corner of and introduce them to First Ci zens in a Washington and Sumter streets folelements, including the Main Street casual and relaxed façade, and the se ng,” said Peter fireplaces and Bristow, president millwork on the and chief operatsecond floor. ing officer for First “Through the Ci zens. rehabilita on of “The café’s the Brennen Buildengaging, modern ing, First Ci zens space is a place has preserved an where people can important part of enjoy a great cup of Columbia’s history coffee, collaborate while introducing with colleagues a new, engaging and socialize with and innova ve friends in one of space,” Waites Columbia’s most added. historic buildings,” The First Ci zens Bristow added.

Café is open for The Brennen business from Building, featuring 7 a.m. to 6 p.m.

French VictorianMonday through style, is one of the Friday. It is also oldest building on available for speColumbia’s Main The outside of the First Ci zens Cafe, on Columbia’s Main Street. The site is housed in the historic cial occasions.

Street, reportedly Brennen Building, constructed around 1870.

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Bankers School

BankExec: Crown Jewel of Bankers School Experience Kevin Dietrich Palme o Banker

B

ankExec, the culmina ng course of the three-year South Carolina Bankers School, may not replicate exactly the senior execu ve experience, but it goes a long way toward giving bankers an understanding of what a career in upper management involves, adherents say.

BankExec has been a key component of the South Carolina Bankers School since 1987 when Dr. Ernie Swi introduced it to the curriculum. Since then, thousands of Palme o State bankers have benefi ed from the opportunity to help run a model community bank.

Bank of Clarendon President Barry Ham is among those who believe his par cipa on in BankExec was pivotal to his career development.

“I believe the program really opened my eyes to all the different parts that make a bank work, and enabled me to understand how they fit together,” he said. “To be honest, I don’t know that I’d be where I am today without the knowledge I acquired from BankExec.”

BankExec is based on a computer program that simulates the ac vi es of a community bank. Using the program as a star ng point, the course forces students to apply the knowledge they’ve acquired during their first two years at the school, enabling them to get a be er idea of what it takes to be a CEO or involved in senior management.

In addi on, the course also involves regulators, so if students cross the line when running their model banks they understand what they have to do to fix problem situa ons, just like in the real world, said Swi , of Atlanta-based Northern Lights Consul ng.

Students, working in teams of fours and fives, all begin with the same bank model: A troubled ins tu on with low profitability and facing many challenges and obstacles. The teams work through exercises in an array of areas, including: asset and liability management, capital

12

planning, gap analysis, accoun ng and taxes, marke ng and resource allocaon, forecas ng and planning economics, pricing bank services, strategic planning, policy forma on and analysis, and organiza onal structure. They make a wide range of daily decisions involving all aspects of bank management and opera ons. Through computerized analysis and printouts, they can view results of their ac ons.

“The exercise was as much about engaging with an eclec c mix of professional styles as it was about understanding how the balance sheet and income statement interrelate,” said Amber Turner, a 2013 Bankers School graduate who is a vice president and senior business rela onship manager with Wells Fargo in Florence.

Instead of a final exam, third-year students are required to par cipate in the presenta on of their model bank’s annual report. Swi evaluates the financial performance of each model ins tuon based on organiza on, consistency,

Dr. Ernie Swi of Northern Lights Consulting discusses the BankExec program with students at the South Carolina Bankers School this past July at Lander University.

earnings, and ability to report results to shareholders and posi on the bank for the future, while Bankers School course coordinators act as judges during the presenta on of the annual reports.

The simula on was par cularly insigh ul, said Chris S. Roberts, a 2013 Bankers School graduate who is vice president and director of mortgage opera ons for Countybank in Greenwood.

“While our team was successful, we discovered how difficult it is to remain balanced in all areas to provide outstanding results to our shareholders,” he said. “We o en joked that this balance in changing economic mes was like juggling a chainsaw, so ball and live grenade at the same me.”

BankExec was originally formulated in the 1960s.The version used at the Bankers School is a later itera on that Swi helped develop, launching it in 1977 and bringing it to SCBS a decade later.

Ted Nissen, execu ve vice president for First Community Bank in Lexington and a graduate of the South Carolina Bankers School, said BankExec helped him to grasp the “bigger picture” much more clearly.

“Instead of just viewing the bank within the area I was responsible for, I began to think globally, about how things are connected and how different departments depend on one another,” he said.

Swi said the BankExec course enables graduates to communicate be er with senior management, customers and, if necessary, regulators.

He added that even individuals not des ned for senior management benefit from the course because it gives them a be er understanding of how different parts come together within a bank.

“This is really a program that can benefit anyone,” Swi added.

(For more informaƟon on BankExec or the South Carolina Bankers School, contact Teresa Taylor at the SCBA at 803.779.0850 or by email at teresataylor@scbankers.org.)

Bankers School

Third-year students listen a en vely to BankExec instruc ons.

Bankers School Chairman Laurence Bolchoz of Coastal Carolina Na onal Bank welcomes students to the 2013 South Carolina Bankers School, held at Lander University in Greenwood.

Le : The Bank of South Carolina Chairman Hugh Lane, Pinnacle Bank of SC CEO David Barne , CertusBANK CEO Walter Davis and GrandSouth Bank President Ron Earnest discuss current events in banking as South Carolina Bankers Associa on President and CEO Fred Green moderates.

Zach Freeman, Southern First Bank, and Chris Roberts, Countybank, review results.

Students par cipa ng in the cornhole tournament raised $8,000 for the scholarship fund.

Third-year students prepare for their final presenta on.

Countybank CEO Thorwell Dunlap with Chris Roberts, Lillie Magalis Award recipient, given to the student with the highest cumula ve average.

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Community Bankers Forum

Loftis, Boeing Executives Among Speakers at Forum The 2013 Community Bankers Forum touched on a number of topics of interest to community bankers, including changes within the industry and why they ma er, and characteris cs that create greater shareholder value for community banks.

The one-day forum, held Tuesday, Oct. 29 at the Courtyard by Marrio Columbia Downtown @ USC in Columbia, featured a pair of speakers known beyond financial services circles: State Treasurer Cur s Lo is and Vice President and General Manager of Boeing South Carolina Jack Jones.

More than 120 individuals turned out for the forum, which received rave reviews from those who a ended the annual event.

“The forum provides a unique opportunity to discuss issues that impact our community banks,” said Jim Benne , senior vice president and chief operating officer with Spra Savings and Loan Associa on, and chairman of the Community Bankers Council. “As managers and CEOs we o en don’t have departments or specialists in house to advise us so it’s a great resource to come together and share experiences.”

The grand sponsor for this year’s forum was Travelers. Other sponsors were Ellio Davis LLC, FIG Partners LLC, Pacific Coast Bankers’ Bank, Van v, ATNET Services, Decision Dynamics Inc., Performance Trust Capital Partners and the Federal Home Loan Bank of Atlanta.

Speakers Steve Brown President & CEO Pacific Coast Bankers’ Bank Steve Brown, President and CEO of the Pacific Coast Bankers’ Bank, discussed major industry changes in areas such as mobile, tablets and

branches, and looked at where things are going, how to respond and how community banks can adapt in order to compete while minimizing risks associated with these pla orms. Brown has more than 25 years financial services experience. He also co-founded the Banc Investment Group and was a cofounder of a web-based capital markets trading pla orm.

Cur s Lo is, Jr. Treasurer, State of South Carolina The Honorable Cur s M. Lo is Jr. serves as State Treasurer of South Carolina. He is a graduate of University of South Carolina. He is a business owner, and the founder and benefactor of The Saluda Charitable Founda on.

The Treasurer is the “private banker” for South Carolina. He is responsible for the investment, cash management and safekeeping of the state’s general and restricted funds and the assets of the S.C. Re rement Systems. He is the Vice Chairman of the State Budget & Control Board, which handles such func ons as the S.C. Re rement System, State Procurement, State Insurance Programs, the Budget Office, State Auditor’s Office, State Human Resources’ Office, General Services, the Budget Office and the State Technology Office.

Christopher Marinac Managing Partner and Director of Research FIG Partners, LLC Christopher “Chris” Marinac of FIG Partners LLC discussed the characteris cs that create greater shareholder value for your bank. Marinac is managing principal and director of

research for FIG Partners in Atlanta.

Prior to the forma on of FIG Partners, LLC, Chris served as senior research analyst at The Robinson-Humphrey Co., SunTrust Robinson Humphrey, and Interstate/Johnson Lane (now Wachovia Securi es). He has been an analyst since 1992, and has covered banks, thri s, REITs, and finance companies during his career. Chris brings a grassroots research discipline to FIG Partners. He is a two- me winner of the Wall Street Journal’s “Best on the Street” survey and noted by InsƟtuƟonal Investor magazine as an “Up and Comer” during several annual investor polls. Chris graduated Summa Cum Laude from Kent State University and is a CFA charter holder.

Jack Jones Vice President and General Manager Boeing South Carolina Jack Jones is vice president and general manager of Boeing South Carolina. He has overall leadership responsibility for Boeing’s South Carolina opera ons and specifically for its facili es in North Charleston. Boeing South Carolina assembles and delivers 787 Dreamliners to customers around the world. The site also fabricates, assembles and installs systems for the a fuselage sec ons of the 787 and joins and integrates 787 mid-body fuselage sec ons from structural partners in Japan and Italy. Before joining the Boeing South Carolina team in March 2011, Jones served as vice president of the Evere Delivery Center, overseeing Airplane-on-Ground, Paint, Pre-Flight and Delivery opera ons for the Boeing wide-body models (747, 767, 777 and 787) assembled in Evere , Wash. Jones has been with Boeing for nearly 35 years. He earned a bachelor’s degree in finance from the University of Washington.

15

Young Bankers Tournament

Young Bankers Golf Tournament a Day to Remember The 2013 SCBA Young Bankers Scholarship Golf Tournament was held Sept. 23 at The Members Club at Woodcreek in Elgin. Nearly 120 golfers from across the state turned out for the 24th annual event, which raised $17,000 for scholarships for the children of employees of SCBA-member ins tu ons.

Prize hole sponsor Sherri Scearce of BDC/CDC and Young Bankers Division Board member Cal Wicker of Carolina Alliance Bank sell string for a good cause.

Neal Beard and Ted Brunson of Security Technology Services Inc. helped keep golfers refreshed with beverages.

At le , R. Montague Laffi e III of SCBT and the past-chairman of the SCBA Young Bankers Division, takes a swing during the hole-in-one compe on.

Right: Young Bankers Division Board members Beth McMahan, NBSC; Jennifer Jones, Ci zens Building and Loan; and Stefania Brinkosova, Sandhills Bank, volunteered at The Members Club at Woodcreekcourse.

Above: Alex Campbell and Grice Hunt with NAI Earle Furman LLC provided cold snacks for the players. Upper right: Jus n Gough, CIGNA; Spann Laffi e, Delta Dental; Steve Lunceford and JD Whalen, The Benefit Company.

Lower right: Chandler Abbo , Homeowners Mortgage, and Brad Gower, Gallivan White and Boyd, with birdie sponsor, Lewis Carlee, Van v.

16

The winning team of Travis Hudson, Pruden al Insurance; Bryant Puntch, First Ci zens; Alex McLean, Ellio Davis; and Lindsay Carrington, Bell Carrington.

The Ci zens Bank Team: Ashley Wheeler, Greg Shuler, SCBA chairman-elect Blake Gibbons and Peter Shand of BDC/CDC.

Sandhills Bank team of Jim Smith, Alissa Gibson, Jennifer Ashburn and Josh Wise con nued the tradi on and again took home the coveted last-place award.

Darrick Moore of The Risk Management Group, center, with Jason Smith and Steve Sanella, both of Clover Community Bank, a er finishing their round.

Thank You to the Young Bankers Golf Tournament Sponsors Eagle Sponsor Van v Birdie Sponsor Marco’s Pizza Hole in One Grand Sponsor South Atlan c Bank Young Bankers Division Chairman Marvin Robinson, Wells Fargo, and Golf Chairman Blake Taylor, Southern First Bank, receive a check from Kris Stoutamire of Howe Construc on.

Beverage Cart Sponsors NAI Earle Furman, LLC, Security Technology Services, Inc. Prize Hole Sponsors BDC/CDC, Bell Carrington, LLC, Ellio Davis Contest Sponsor Palme o State Bank

Weather Sponsor Ameris Bank

Hole Sponsors Bank of Walterboro, Blue Ridge Bank, Callison Tighe, Ci zen Building and Loan, Countybank, Federal Home Loan Bank of Atlanta, First Ci zens, Heritage Community Bank, Sandhills Bank, Smith Debnam, SNL Financial, Southern First Bank, The Ci zens Bank, The Bank of South Carolina, Turner Padget, Wells Fargo Prize hole sponsor Tyler Gregg and GriďŹƒn Bell, Bell Carrington LLC, with Terry Bishop, Re/Max, and Rawlings LaMo e, Bollin Ligon.

Special Thanks to Howe Construc on 17

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Somewhere along the line, “can” has to become “will.” Every AloStar correspondent banker has worn community bank shoes; so we understand the challenges you face. But, we also have the resources to guide you in today’s challenging regulatory environment, and the knowledge it takes to convert “can do” to “will do.” It’s what we call KnowHow. And it’s what sets us apart.

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Feature

SEC Adopts New Rules on Private Capital-Raising Deals

By Neil Grayson, Benjamin Barnhill and Mike Johnson Nelson Mullins Riley & Scarborogh, LLP

T

he Securi es and Exchange Commission recently removed the ban on general solicita on and general adver sing in certain capital raising transac ons, effec ve as of Sept.

23, 2013.

This new rule is one of the most important capital raising developments in decades and is likely to have a significant impact on the Grayson banking community.

The new rule permitting general solicitation is part of the most common exemption relied upon by banks and bank holding companies in connection with private securities offerings and recapitalizations – Rule 506 of Regulation D. The amendment permits a company issuing securities to engage in general solicitation and advertising in Rule 506(c) private offerings, provided that:

• •

All purchasers are accredited investors; and The company takes reasonable steps to verify the purchasers are accredited.

Non-accredited investors may not purchase securities offered through general solicitation.

Thus, banks and bank holding companies seeking to raise capital in private offerings will need to decide whether they want to engage in general solicitation, or rely upon the old Rule 506(b) exemption they have historically used which allows for sales to non-accredited investors.

Under the new Rule 506(c), companies must take reasonable steps to verify the Barnhill accredited investor status of purchasers.

This is a new, higher threshold for companies. Under the old Rule 506(b), a company was not required to take any affirmative steps to confirm that the investor was accredited – it could simply take the investor’s word for it.

Under the new Rule 506(c), the SEC identifies several steps to satisfy the non-exclusive “safe harbor” methods of verifying accredited investor status for natural persons, including reviewing copies of the investor’s tax returns, bank statements, brokerage statements, or credit reports, or by obtaining a written confirmation that the investor is accredited from a registered broker-dealer, an SEC-registered investment adviser, a licensed attorney, or a certified public

accountant.

In addition, if the accredited investor has previously invested in the company, the company may rely on the investor’s certification at the time of the new offering that the investor is still accredited.

As noted above, companies that do not want to follow these new verification requirements may continue to conduct offerings under the old Rule 506(b) – without general solicitation.

As the SEC noted in the Johnson proposed rule, offerings under Rule 506(b) represent an important source of capital for companies of all sizes, and the SEC believes that “the continued availability of existing Rule 506(b) will be important for those companies that either do not wish to engage in general solicitation in their Rule 506 offerings (and become subject to the requirement to take reasonable steps to verify the accredited investor status of purchasers) or wish to sell privately to non-accredited investors who meet Rule 506(b)’s sophistication requirements.”

(Neil Grayson, Ben Barnhill and Mike Johnson are all attorneys with Nelson Mullins Riley & Scarborough LLP, in the firm’s Greenville office.)

Professional Development Calendar November 19, 2013

Community Bankers Credit Workshop

November 20, 2013 December 3-5, 2013

2013 Human Resource Conference 2013 Commercial Lending School

January 8-9, 2014 January 14, 2014 February 12, 2014 March 7-9, 2014 March 24-26, 2014 June 15-18, 2014 July 13-18, 2014

2014 Bank Secrecy Act Seminar 2014 Legisla ve Recep on Banking Careers 101 Young Bankers Division Annual Conference 2014 SCBA Washington Summit SCBA Annual Conven on South Carolina Bankers School

Courtyard Columbia Downtown @ USC Columbia, S.C. Courtyard Columbia Downtown @ USC Columbia, S.C. Columbia, S.C. Seawell’s, Columbia, S.C. Pinehurst Resort, Pinehurst, N.C. Washington, D.C. Palm Beach, Fla. Lander University, Greenwood, S.C. 19

Educa on

Call Report Seminar Kicks Off 2013-14 SCBA Year The 2013 Call Report Seminar, the South Carolina Bankers Associa on’s first educa onal conference of the 2013-14 fiscal year, brought 45 individuals in from around the state to hear presenters from accoun ng firm Mauldin & Jenkins LLC.

20

The one-day seminar, held Sept. 10 at the Courtyard Marrio in Columbia, explained the hows, whys and wheres of call report prepara on.

Par cipants received a detailed lineby-line review in the comple on of significant schedules of call reports and

were encouraged to share call report experiences.

The following Cer fied Public Accountants from Atlanta-based Mauldin & Jenkins LLC spoke to the nearly four dozen registrants: Michael Gordon, Rachael Mar n and Kris Trainor.

Community

We Want to Hear What You’re Doing The South Carolina Bankers Associa on knows its member banks and employees are ac ve in the communi es they serve.

Your commitment to your customers and their families is evident each and every day. The SCBA wants to help get the word out about the good things you’re doing, but we need your help. Share your community news with the SCBA and we’ll include it in the PalmeƩo Banker.

What We’ve Done:

To get the word out, mail, fax or email your staff ’s community accomplishments to: The South Carolina Bankers Associa on A n: Kevin Dietrich P.O. Box 1483, Columbia, S.C., 29202 Fax: 803.779.0890 Email: kdietrich@scbankers.org To contact Kevin by phone call 803.779.0850

21

Meet Your Legislator

Bannister Recognizes Bank Liability in DOR Breach While consumers are protected by law if they promptly report instances where their bank accounts have been hacked and money taken, banks are on their own when it comes to tracking down criminals and seeking reimbursement, a fact that hasn’t escaped Rep. Bruce Bannister’s no ce.

“People are beginning to understand that if their accounts are hacked and they report the the , they’ll be reimbursed, but what they’re forge ng is that the banks are s ll out the money in ques on,” said the Greenville Republican. “That’s a big problem and one we need to give some considera on to.”

Bannister, 41, the managing partner of the Greenville law firm Bannister and Wya , LLC, won elec on to the seat for House District No. 24 in 2005. He took over as assistant majority leader in 2008 and became elected by the Republican caucus as Majority Leader in 2012.

He said the top item on the agenda for the House Republican caucus in the upcoming session is restructuring, namely, giving the governor more power so that he or she can opera on more like a chief execu ve.

“For our state to move forward and for us to Bannister be able to do the things we need to do to improve things here in South Carolina, we need a different structure,” he said. “If we had an elected governor who acted as a CEO, the state could run much leaner, much more efficiently and much more compe vely.”

Bannister, a graduate of Davidson College and the USC School of Law, said

that the architects of South Carolina’s current cons tu on inten onally devised an inefficient structure.

“The 1895 cons tu on was wri en by a small group of guys who were afraid of the effects of African-Americans entering into the poli cal realm, and they didn’t want a governor coming in and wholesale changing how things were done in South Carolina, so they made it difficult for the governor to do much of anything,” he said.

The problem with a system that dominated by the legislature is it tends to be cumbersome, as different fac ons have to be placated for things to get done.

“It’s a slow process; different people have different issues to pass,” Bannister said. “If we talk about the gas tax, we may end up having a debate on the health care bill or property tax relief, rather than a pure gas tax-versus-no gas tax discussion. That can slow things up.”

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Educa on

Executive Banker Conference Touches on Key Issues Crucial issues facing South Carolina bankers, the result of recent regulaons, were addressed during a one-day execu ve banker conference Sept. 25 in Columbia.

Basel III, Ability to Repay and “Qualified Mortgage” exemp ons, and Interchange will all have a profound effect

on the business strategy of Palme o State banks going forward, and the SCBA brought in experts from different companies to address these topics.

B.T. Atkinson and Mike Shumaker of the law firm Bryan Cave LLP spoke on Basel III, set to go in effect for most banks on Jan. 1, 2015.

W. Brad Washburn of Steve H. Powell and Company discussed Ability to Repay and Qualified Mortgage rules, which become effec ve on Jan. 10, 2014.

Finally, John D. Brader II, a CPA with Experis Finance, touched on Interchange, addressing the strategic impact from a variety of perspec ves.

23

Feature

S.C. Housing: Bigger, More Attuned to Bank Needs

F

orty years a er the S.C. State Housing Finance and Development Authority began helping make the dream of home ownership a reality, the agency is bolstering products and funding available to banks involved in Palme o State mortgage lending.

SC Housing, which offers programs that provide down-payment assistance for first- me homebuyers and individuals such as firefighters and teachers, currently works with 46 banks that serve South Carolina, but is looking to add more, according to Claude D. Spurlock, director of mortgage produc on for the agency.

“We have a core group of approximately 150 loan officers at banks that send us business regularly, but our biggest problem is reaching the rural markets,” Spurlock said. “That’s ironic because there are many people in those markets who would be eligible for our programs and would, with our downpayment assistance, be able to become homeowners that can’t do so otherwise.”

Spurlock and the rest of the agency

are working to get the word out about SC Housing and its programs, including: •

•

•

SC Housing’s “KickStart” Ini a ve, which increases down-payment assistance to $8,000 under the agency’s new-construc on ini a ve and $5,000 toward the purchase of a new home; The SC HELP program, which assists individuals who have been hit with a catastrophic event such as the death of a spouse, serious health issues, divorce or loss of a job with mortgage assistance in an effort to keep them in their homes; and The S.C. Mortgage Tax Credit Program, which provides a federal income tax credit to qualified homeowners of up to $2,000 per calendar year.

SC Housing, while a state agency, receives no state appropria ons, according to Clayton Ingram, marke ng and communica ons director for the agency.

Instead, it sells bonds to investors. SC Housing bond offerings are of various

sizes, depending on the needs of the agency. The spread on the bonds is what the agency uses to fund its operaons, Ingram added.

Ingram said 90 percent of agency ac vity involves mortgage lending, even though SC Housing relies on banks and brokers to make most of the actual loans. The agency then purchases the mortgages.

SC Housing’s Home Ownership program, which provides as much as $8,000 in down-payment assistance, has proved a boon to South Carolinians looking to purchase homes, said Dana Maynard, a loan processor with CresCom Bank in Myrtle Beach.

“Being able to offer State Housing Authority products allows us to bring a lot more to the table for our clients because it provides more opportuni es for people to become first- me housebuyers,” said Maynard, who makes about a dozen SC Housing loans annually. “It allows them to get their foot in the door in terms of buying a house, thanks to the down-payment assistance programs.”

Companion at Horton Farms in Easley, apartment homes for residents age 55 and older, was built in coopera on with SC Housing.

24

SC Housing programs even if they are not first- me homebuyers, because the agency waives its first- me homebuyer requirements in 34 coun es, for veterans honorably discharged in the past 25 years, single parents and borrowers that are 100 percent disabled, Spurlock said.

Borrowers who meet SC Housing guidelines regarding income, home price and credit can receive down-payment assistance of up to $8,000 on the purchase of a newly constructed home and $5,000 on exis ng homes. Those figures were raised at the beginning of the year, from $5,000 and $4,000, respec vely, under the agency’s KickStart Ini a ve to boost home ownership. The loans come with a fixed interest rate, currently set at 4.5 percent, according to Ingram.

“In a lot of cases the down-payment assistance is the only way people can qualify to buy a home,” said Tommy E. Harris, vice president – community development officer for First Ci zens in Columbia. “We’re talking about people, say, who are just out of college, and don’t have a lot of money.”

First Ci zens makes both FHA mortgage loans, which require 3.5 percent down, and U.S. Department of Agriculture mortgage loans, which require 3 percent down. SC Housing’s downpayment assistance program has helped individuals qualify for both.

“Those may not seem like huge amounts, but for somebody who’s living paycheck to paycheck that’s a whole lot of money,” added Harris, who said he makes between 30 and 50 SC Housingconnected mortgage loans each year.

The impact of the KickStart Ini a ve has been apparent through the first six months of 2013. During the period between Jan. 1, 2013 and June 30, 2013, 62 mortgages for newly constructed homes, worth $9 million, were underwri en under the program, Ingram said.

That was up sharply from the six-month period between July 1, 2012 and Dec. 31, 2012, when just 20 new-home mortgages worth $2.7 million were underwri en using SC Housing funding.

The program means more than just the fee income that accompanies a bank qualifying a customer for a mortgage loan, Ingram said. It allows the ins tu-

on the opportunity to help individuals clear the o en-daun ng hurdle of coming up with a down payment and can also lay the groundwork for a long-term rela onship, Ingram said. The agency also has a special home-loan program for teachers, nurses, law enforcement officers, firefighters, veterans and emergency medical services workers through its Palme o Heroes Program.

This year, the program disbursed $7.7 million in funding, issuing fixed-rate 3 percent mortgages that came with up to $8,000 in down-payment assistance, Spurlock said. A finite amount of funds are allo ed to the Palme o Heroes Program each year and 2013’s total has been exhausted he said, adding the agency hopes to be able to offer the program again next year.

Help for S.C. Not all SC Housing programs are geared to help get people into houses.

SC HELP, for example, works to keep individuals who are struggling financially in their homes. SC HELP came about in 2010, when the U.S. Department of the Treasury – through SC Housing – made more than $295 million available to help eligible South Carolina homeowners avoid mortgage delinquencies and foreclosure.

“If someone falls behind on their mortgage, we help them catch up; if they can’t make their monthly mortgage payments, we can make it for them,” Ingram said. “And we take care of the principle, the interest, the taxes and the insurance, paying it all directly to the bank.”

Since 2011, the agency has assisted nearly 5,900 South Carolina homeowners through SC HELP, dispensing $72.7 million. Another $25.3 million is commi ed for assistance to those in need, Ingram said.

The agency can provide the assistance for a maximum of 24 months or un l it pays out a total of $36,000,” he added.

The assistance is forgivable at a rate of 20 percent a year and the only way the agency would try to collect on the money awarded to a homeowner in distress is if the la er sold their home before the five-year period was up, and then was able to sell it at a profit.

The agency also offers the S.C. Mortgage Tax Credit Program, a mortgage credit cer ficate program that provides a federal income tax credit to qualified homebuyers of as much as $2,000 annually. It’s open to homeowners who don’t take out one of SC Housing’s other home-ownership loans.

“When you purchase a home you can buy a cer ficate that will provide you with up to $2,000 a year or 30 percent of interest paid on the loan annually each year as a tax credit,” Ingram said.

“A tax credit is money you get back annually, and is available every year as long as the home in ques on is your principle residence.”

The mortgage credit cer ficate costs $500 ini ally and banks typically charge a one- me $200 fee, but a er that there are no other costs so it quickly pays for itself.

“It’s proven to be a great incen ve for someone who’s on the fence about buying a home,” Ingram said.

Spurlock said one of his goals is to get more banks in rural markets to offer SC Housing products.

“One of the things we do when we talk to bankers in the rural markets is tell them about the advantages of people in their area being able to buy a house with li le or no money down,” he said. “We do what we can to make deals work; in rural areas we some mes waive bank set-up fees, for example.”

For the small banks that don’t have mortgage opera ons of their own, the bank takes applica ons and gets the informa on needed, then sends it to SC Housing, which underwrites the loan.

“We handle it and the bank receives a fee for origina ng the loan,” Spurlock said.

Maynard, of CresCom Bank, said the agency has made huge strides during the dozen years she’s been making SC Housing loans.

“Back in the day it would seem like it would take an eternity to close an SC Housing loan, but with technology it’s go en so much quicker,” she said.

“Today they give us access to a closing coordina on company that can help walk you through the whole process.”

– Kevin Dietrich 25

Bank News

Carolina Alliance Bank Inks Deal First Community with Forest Commercial Bank to Combine with

Carolina Alliance Bank and Forest Commercial Bank signed a defini ve merger agreement in early August.

The combined opera on will have three full-service offices, in Spartanburg, Asheville, N.C., and Hendersonville, N.C., along with a loan produc on office in Charlo e, N.C. Also, a branch is proposed for Seneca.

All offices will operate as Carolina Alliance Bank.

The bank will be headquartered in Spartanburg with senior management personnel opera ng from both Spartanburg and Asheville.

Combined, the bank will have approximately $385 million in assets, approximately $277 million in loans, approximately $314 million in deposits and a very strong capital posi on of approximately $50 million.

The transac on is expected to close in the first quarter of 2014, subject to regulatory and shareholder approval.

John S. Poole will remain chief execu ve officer of Carolina Alliance Bank and John D. Kimberly, president and chief execu ve officer of Forest Commercial Bank, will become president of the combined bank.

R. Lamar Simpson, treasurer and chief financial officer of Carolina Alliance, will retain his posi on. Terry Cash will remain chairman of Carolina Alliance, and W. Louis “Lou” Bisse e Jr., chairman of Forest Commercial Bank, will become vice chairman. The board of the combined bank will be restructured, and ini ally will consist of 15 members, with nine from the exis ng Carolina Alliance board and the remainder from the exis ng Forest Commercial board.

“Both Carolina Alliance and Forest Commercial are young, healthy, and growing banks,” Poole said. “Merging these financially sound ins tu ons seems to be such a natural fit. Both banks are commi ed to seasoned local bankers, making local decisions, and serving the local communi es in which we operate.”

Kimberly added, “The merger creates a larger and stronger financial ins tu on be er able to compete in today’s challenging environment, with a significantly higher lending limit, expanded product offerings, and the ability to generate efficiencies which should increase profitability.”

Regulator Lifts Agreement with CBC Coastal Banking Co. Inc, the Beaufortbased parent of CBC Na onal Bank, announced in mid-August that the Office of the Comptroller of the Currency has li ed its formal wri en agreement with the bank, effec ve Aug. 8.

As such, the bank is no longer considered to be in troubled condi on by the OCC or the FDIC, and the ac on brings to a conclusion agreements the ins tu on entered into with the OCC in the summer of 2009.

In complying with the terms of the formal agreement, the bank lowered its credit risk, reduced its level of cri cized assets, implemented a profit plan that 26

has generated sustained earnings and maintained its limited reliance on brokered deposits.

Coastal Banking has operated under a memorandum of understanding with the Federal Reserve Bank of Richmond since November 2010, which requires the company to obtain consent or nonobjec on from the regulator prior to the payment of stock dividends or trust preferred securi es interest.

The li ing of the bank’s formal agreement by the OCC will trigger an evaluaon by the Fed to assess the con nued need for the memorandum of understanding.

Savannah River

First Community Corp., the Lexington-based holding company for First Community Bank, and Savannah River Financial Corp., the holding company for Aiken-headquartered Savannah River Banking Co., announced plans to merge in August.

The combined financial services company will have approximately $775 million in total assets, $635 million in total deposits and $450 million in total loans.

First Community Corp. currently operates 11 banking offices in Lexington, Richland, Newberry and Kershaw counes. Savannah River Financial operates two financial centers, located in Augusta, Ga., and in Aiken.

The merger agreement was unanimously approved by the board of directors of each company. Closing of the transac on, which is expected to occur early in the first quarter of 2014, is subject to customary condi ons, including regulatory approval and approval by the shareholders of both companies.

“This is a comfortable extension of our company into a con guous county, and beyond into Augusta. The central Savannah River area and the midlands of South Carolina have many economic similari es, and both are experiencing nice momentum in business growth,” said First Community President and Chief Execu ve Officer Mike Crapps.

Under the merger agreement, 60 percent of the merger cost will be paid in cash and the balance will be in newly issued shares of First Community common stock.

First Community will acquire Savannah River Financial in a cash-and-stock transac on valued at about $33.6 million. The value of the deal may change at the me the merger is completed due to changes in the price of First Community stock.

Bank News Abbeville First Bank For just the fourth me in its 106-year history Abbeville Savings and Loan has changed its name, this me to Abbeville First Bank.

“The name of our bank has evolved over the years to communicate the products and services that were important at that me in history,” said Andy Timmerman, president and chief execuve officer of Abbeville First Bank.

Officials conducted several community focus groups, listened to recommenda ons from individuals within the community and took note of internal discussions. It whi led its op ons to three: • Abbeville First Bank; • Abbeville State Bank; and • Abbeville Heritage Bank.

The bank invited customers to vote for their favorite name in mid-summer, and the winner was chosen in September and revealed in October.

The change is due in part to the in-

creased range of financial products and services available to bank customers.

CertusBANK, NA Easley-based CertusBANK NA, through its wealth management division, CertusWealth, has agreed to make a strategic investment in Monarch Business and Wealth Management LLC. Terms of the transac on were not disclosed and the comple on of the transac on is subject to customary closing condi ons.

CertusBank is a subsidiary of Atlantabased CertusHoldings Inc. Monarch Business and Wealth Management is a joint venture between Barry Klarberg and Asset Alliance.

CresCom Bank Charleston-based CresCom Bank has entered into a purchase-and-assumpon agreement to acquire First Federal of South Carolina’s branch in St. George.

The transac on, which is subject to regulatory approval and other stand-

ard closing condi ons, is expected to be completed in late 2013 or early 2014, according to CresCom. The new CresCom Bank branch will be located on West Memorial Boulevard in St. George.

Upon comple on of the transac on, all current First Federal of S.C. employees at the St. George branch are expected to become employees of CresCom Bank.

CresCom Bank will acquire the real estate, equipment, substan ally all of the loans, and certain other assets, and assume the deposits associated with the St. George branch. Last month, CresCom Bank acquired a branch site located at 13021 Ocean Highway in Pawleys Island, with the an cipa on of opening an addi onal branch loca on in late 2013.

Greer State Bank Greer State Bank has embarked on a new ini a ve to bring financial literacy educa on to high school students by Con nued on Page 36

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Execu ve News

Rexroad Takes Over as CEO of Carolina Financial Carolina Financial Corp., the holding company for CresCom Bank, recently named Jerry L. Rexroad as its new chief execu ve officer and Bill Gehman as its new chief financial officer.

Both Rexroad and Gehman are cer fied public accountants.

Rexroad, who also serves in the senior management of CresCom Rexroad and is CEO and chairman of Crescent Mortgage Co., has more than 20 years of experience in financial ins tu on management. He first joined Carolina Financial in 2008.

“I look forward to con nuing to grow and strengthen Carolina Financial Corpora on’s posi on within the market-

place,” Rexroad said. “As new CEO, my focus will also be on fostering smart growth and expansion for CresCom Bank.”

Gehman who possesses more than a decade of experience with financial ins tu ons, also joined Carolina Financial Corp. in 2008. In addi on to serving as CFO, he will con nue as execu ve vice president at Carolina Financial Corp.

“Bill’s financial experience and history with Carolina Financial Corpora on make him an invaluable asset as our new chief financial officer,” Rexroad said. “He understands the complexi es associated with the modern banking industry and will help us con nue to grow as a company.”

Rexroad is a member of the American Ins tute of Cer fied Public Accountants, the S.C. Associa on of Cer fied Public Accountants and the Financial Manag-

65 YEARS STRONG Growing up without growing old.

www.gsblsu.org Photo taken in 1958 as bankers arrived at the Baton Rouge airport.

For information on our 2014 Session: May 25 – June 6 225-766-8595 • 4273 Highland Road, Baton Rouge, LA 70808

ers Society Inc. Before coming to Carolina Financial Corp., Gehman served as senior vice president and corporate controller at Coastal Financial Corp., where his responsibili es included public and regulatory repor ng.

Prior to this, he spent nearly a decade with Peat, Marwick, Mitchell & Co., a predecessor to the na onal accoun ng firm KPMG, LLP. Gehman is a member of the American Ins tute of Cer fied Public Accountants, the S.C. Associa on of Cer fied Public Accountants and the Financial Managers Society, Inc. Currently, Carolina Financial Corp. operates 10 CresCom branches. CresCom was created last year following the merger of Carolina Financial Corp.’s former subsidiary banks, Crescent Bank and Community FirstBank.

You’re never too old to set another goal or to dream a new dream.

We’re 65 and not ready to retire. The Graduate School of Banking at LSU has educated thousands of young bankers and we’re just getting started. Our up-to-date curriculum addresses the future leadership needs of your bank. Contact us today because those who keep learning stay young and continue to venture forward.

Personal Transac ons

Bates

S er

Anderson Brothers Bank Harry G. Bates IV has been named Myrtle Beach City Execu ve and vice president by Anderson Brothers Bank. Bates will be based in the bank’s temporary Myrtle Beach branch at 4705 Oleander Drive. Bates has a bachelor’s degree in Business Administra on from Flagler College and has extensive background in the banking industry. He brings more than 13 years of local banking experience to Anderson Brothers Bank.

Anderson Brothers Bank has added Shannon Delgado as a mortgage originator in the bank’s Florence Second Loop branch. Delgado brings nearly a decade worth of residen al mortgage banking experience to Anderson Brothers Bank

30

Wilkerson

25 years of investment experience to Anderson Brothers Bank.

Bank of America Kim Wilkerson, South Carolina president for Bank of America, was one of 12 women chosen by the Columbia Regional Business Report as a finalist for the Columbia Influen al Women in Business awards. Women from four different categories were chosen, with Wilkerson nominated in the Execu ve category. Natasha Drozdak of SCBT was nominated in the Rising Star category.

Brent Hardee has joined Anderson Brothers Bank in the ins tu on’s Longs branch as an assistant vice presidentloan officer. Hardee earned a Bachelor of Science in Economics and minor in Business Administra on from East Carolina University in Greenville, N.C. Most recently he was with a compe tor in Horry County for the past two-plus years.

Carolina Alliance Bank Following the proposed merger of Spartanburg-based Carolina Alliance Bank and Asheville, N.C.-based Forest Commercial Bank, John Poole will remain chief execu ve officer of Carolina Alliance, and John Kimberly, president and CEO of Forest Commercial Bank, will become president of the combined bank. R. Lamar Simpson, treasurer and chief financial officer of Carolina Alliance Bank, will retain his posi on. Terry Cash will remain chairman of Carolina Alliance and W. Louis Bisse e Jr., chairman of Forest Commercial Bank, will become vice chairman of the bank.

Tim S er has joined Anderson Brothers Bank as an investment officer. He is based in the bank’s Conway branch.

S er earned a Bachelor of Science in Business Administra on from Murray State University and also a ended Jackson State Community College in Jackson Tenn. He has extensive background in the Investment industry with Series 7 & 63 Licenses along with current Insurance Cer fica ons. S er brings nearly

CresCom Bank Joan Baird has been named new branch manager for CresCom Bank’s James Island branch. Previously, Baird served as the senior financial sales manager at compe tor’s Johns Island branch. Baird started her financial services career at Advance Financial Savings Bank in West Virginia. Baird received her Bachelor of Arts degree from West Liberty College in West Virginia.

Baird

Israel

Diana Evans has been named branch manager for CresCom Bank’s new Litchfield/Pawleys Island branch. Evans will oversee branch ac vi es and transacons, and manage the loca on’s team members. Previously, Evans managed the Pawleys Island branch for another South Carolina ins tu on. Evans is the president of the Rotary Club of Pawleys Island and chairman of the annual Pawleys “Island” Fest.

CresCom Bank has added Bailey Gronbeck, a new customer service representa ve, and Jamie Baker, a full- me bank teller, to its West Ashley branch in Charleston. Gronbeck received her Bachelor of Science degree in business administra on from Appalachian State University. Baker is currently comple ng her associate of arts degree at Trident Technical College.

Pam Israel has joined CresCom Bank as a new mortgage originator. Israel will work out of CresCom’s Garden City branch loca on. In her new posi on, Israel will be responsible for assis ng borrowers throughout the mortgage lending process. Israel earned her Associate’s Degree from Avere University in Danville, Va. Joseph Kassim is CresCom’s new senior vice president of finance. Kassim, who is based out of the bank’s West Ashley opera ons center in Charleston, reports to Chief Financial Officer Bill Gehman. In his role, Kassim will assist the CFO and controller in special repor ng, projects, lines of business repor ng, branch profitability, regulatory filings, quarterly reports and budgets. Previously, Kas-

Personal Transac ons

Blakely

Bradham

sim served as a manager in the audit division of Elliot Davis’ banking and financial services department.

Felicia Tharp has joined CresCom as an account services/call center supervisor.

Tharp’s responsibili es include managing account services and overseeing the call center team. Tharp is based out of the bank’s opera ons department in its Charleston-based West Ashley branch.

First Ci zens Barry Blakely has joined First Ci zens’ in-house broker dealer, First Ci zens Securi es, as a sales assistant. He graduated from Clemson University with a degree in marke ng and is based at the company’s East Greenville office.

Chris Bradham has been named First Ci zens’ agricultural business rela onship manager and vice president for the company’s Darlington, Florence, Lee County and Sumter markets. Bradham comes to First Ci zens with more than eight years of experience in the agricultural lending industry. Bradham is a graduate of Clemson University in Clemson, S.C., and holds a bachelor’s degree in agricultural mechaniza on and business. Bradham operates from the company’s Bultman office.

Kevin Glass has been promoted to Private Banking Director for First Ci zens’ South Carolina region. Glass, who has served as the bank’s Augusta Commercial Area Execu ve for the past 18 months, has worked with his team to grow the First Ci zens brand and commercial client base. He will be based out of the historic Brennen Building in

Glass

downtown Columbia. Glass joined First Ci zens in August 2008 as a commercial rela onship manager. A University of South Carolina-Aiken graduate with a bachelor’s degree in business, Glass is also a graduate of the Stonier School of Banking, University of Pennsylvania.

Norm Kirkwood has joined First Ci zens’ in-house broker dealer, First Ci zens Securi es, as a financial advisor and vice president for the Anderson area. A graduate of Anderson College, Kirkwood earned his Chartered Re rement Planning Counselor (CRPC) designa on from the College of Financial Planning. He is based at the company’s East Greenville office.

Janet Shaver has joined First Ci zens as a private banking rela onship manager and vice president for the company’s Wealth Management team.

Shaver brings more than 17 years of wealth management experience to First Ci zens. Shaver holds Series 7 and 63 licenses. She earned a bachelor’s degree in business administra on from Kutztown (Pa.) University and is based at the company’s East Bay office.

First Community Corp.

As part of Lexington-based First Community Corp.’s proposed acquisi on of Savannah River Financial Corp., Savannah River CEO Randy Po er, along with Paul Simon and Leland Reynolds, all current Savannah River board members, will be included as members of the First Community board of directors. Po er will serve the combined company in a consul ng role for a one-year period.

Jeff Spears, president of Savannah River,

Kirkwood

Shaver

will remain as the regional president of the central Savannah River area market.

Independence Bancshares Inc. Independence Bancshares Inc., the holding company for Independence Naonal Bank, has added former Verizon Wireless execu ves Aditya Khurjekar and Humphrey Chen to help the company build out its mobile technology and banking capabili es. Previously, Khurjekar was responsible for leading a number of mobile payments and commerce ini a ves at Verizon. He established pioneering partnerships in mobile money involving mobile operators, financial ins tu ons and technology innovators. Prior to joining Independence, Chen founded Verizon’s 4G Venture Forum and was execu ve director of New Product Technologies, responsible for innova on and capital investments in emerging technologies. He has also held execu ve posi ons at Avaya, Microso and the U.S. Federal Communica ons Commission Wireless Bureau.

Independence Bancshares has added three new members to its board: Robert B. Willumstad, the former president and chief opera ng officer of Ci group; Alvin Hageman, the former co-head of Ci group’s Securi za on Products Group and senior credit officer; and Keith Stock, former president of MasterCard Advisors LLC, member of the MasterCard Worldwide Opera ng Commi ee and Management Council, and senior partner at A.T. Kearney, Capgemini, Ernst & Young, and McKinsey & Company.

See Transac ons, Page 32 31

Personal Transac ons

Beecher

Drozdak

NBSC NBSC, a division of Synovus Bank, announced recently that Charlene Grigsby has been promoted to Banking Officer. Grigsby joined NBSC in 2010 as a Personal Banker, and brings 24 years of banking experience to the posi on. In June of 2012, she was promoted to Assistant Branch Manager. She is an Honor Graduate of Midlands Technical College with a degree in Banking and Finance.

Ac ve in her community, Grigsby is a member of the Harvest Church in Lexington.

NBSC has appointed John N. McCarter Jr. to its local Columbia Community Board of Directors. McCarter is the president, chief opera ng officer and chief financial officer for Defender Services Inc. He is a graduate of Clemson University and serves on the Board of Clemson, Indian Waters Council for Boy Scouts of America and the South Carolina Waterfowl Associa on.

32

Atkins

17-plus years of extensive and wideranging human resources experience, primarily with two companies listed on na onal stock exchanges. As the leader of the Bank’s Human Resources support group Ireland will be responsible for talent acquisi on, compensa on, performance management, leadership development and training and development. One of Ireland’s primary areas of focus will be the ongoing development of the Bank’s team and the recruitment of catalyst hires that will con nue to deliver specialized exper se and outstanding client service. She brings a passion for leading teams that provide valueadded, client-focused human resources support. Ireland earned a bachelor’s degree in Accoun ng and Spanish from Wofford College and a master’s degree from Miami University of Ohio. She is cer fied as a senior professional in Human Resources.

Palme o Bancshares Inc. Bryan Neill has joined Palme o Investment Professionals, part of Palme o Bancshares Inc., as a financial advisor.

Most recently, Neill was a financial advisor with Merrill Lynch in Greenville and has addi onal experience in finance, small business management, manufacturing, accoun ng, consul ng and lending. He holds a Series 7, Series 66 and insurance license. Neill is working ini ally from the company’s Fountain Inn office.

The Palme o Bank has named Paul Pickhardt to lead its Small Business Administra on line of business. Pickhardt comes to The Palme o Bank from TD Bank, where he was the top SBA 7a loan producer in the state of South Carolina for the past four years. He possesses more than a decade of experience of SBA marke ng, selling and originating following a career in which he held several management posi ons in the manufacturing industry. Pickhardt is a Vietnam veteran who honorably served his country as a captain in the U.S. Army.

The Palme o Bank The Palme o Bank has named Lisa Ireland chief talent officer. Ireland has

SCBT Will Beecher has joined SCBT Wealth Management Group as senior vice

Barnhill

Cote

president and trust adviser for the Charleston market. Beecher will focus primarily on trust and estate planning, rela onship management and business development for the Coastal South Carolina markets of SCBT and First Federal. Previously, Beecher spent nearly 10 years with Wells Fargo and predecessor Wachovia, most recently as senior vice president and trust specialist for the Charleston market.

Natasha Drozdak, online marke ng manager for SCBT, was one of 12 women chosen by the Columbia Regional Business Report as a finalist for the Columbia Influen al Women in Business awards. Women from four different categories were chosen, with Drozdak nominated in the Rising Star category.

Also nominated was Bank of America’s Kim Wilkerson.

Ann Snelling Gluse of SCBT has been elected chair of the Probate, Estate Planning and Trust Law Sec on of the South Carolina Bar. Gluse was elected for a one-year term leading the Secon Council and the members of the Probate, Estate Planning and Trust Law Sec on in addressing issues related to this area of the law. During her career, Gluse has gained extensive experience in trust administra on, in probate and in the areas of estate, tax and wealth transfer planning. Currently, she is a senior vice president and the director of Trust and Estate Services for SCBT. Gluse earned a bachelor’s degree in Business Administra on from the University of South Carolina and a Juris Doctor degree from University of South Carolina School of Law.

Personal Transac ons

Siau

Morgan

Lynn Greer of SCBT has been named chair-elect of the South Carolina Associa on of Nonprofit Organiza ons for the 2013-14 term. Greer is vice president Nonprofit Treasury Management for SCBT and was among a slate of new board officers were elected by SCANPO’s membership. SCANPO is a statewide membership organiza on that brings together nonprofit leaders to strengthen the effec veness of the state’s nonprofit sector.

SCBT Wealth Management Group Columbia, S.C.-based First Financial Holdings Inc. has hired David Kirkpatrick for its SCBT Wealth Management Group. Kirkpatrick was previously vice president and por olio manager in the South Carolina market for a southeastern regional bank. Now, he takes on the role of senior vice president and por olio manager for the firm, pushing to grow its asset management business in the Carolinas and in Georgia.

South Atlan c Bank Debbie Atkins has been appointed by South Atlan c Bank assistant vice president and loan administra on specialist at the bank’s main office in Myrtle Beach. A veteran banker with more than 30 years of experience, Atkins most recently served as director of loan operaons for StellarOne Bank in Chris ansburg, Va. She is a graduate of New River Community College in Dublin, Va., and completed the Virginia Bankers Associaon School of Bank Management.

Susie Barnhill has joined South Atlanc Bank as a teller at its main office, located on the corner of 29th Avenue

Spitzer

North and Grissom Parkway. Barnhill has 28 years of business and teller experience and worked as a teller for two local community banks over the past 16 years. She is a graduate of Aynor High School and a ended the Aynor-Conway Career Center.

Anne Cote has been promoted to senior vice president and has taken on the role of director of loan opera ons for South Atlan c Bank. A veteran banker with 25 years of experience, Cote has been with the bank since its opening in November 2007 and most recently served as manager of the Myrtle Beach office. She earned a bachelor’s degree in finance and management from USC. Michelle A. Love has been named vice president and manager of South Atlan c Bank’s Myrtle Beach main office. Love joined the bank in June 2008, serving as vice president and retail business development officer. Love earned a bachelor’s degree in finance from Coastal Carolina University.

South Atlan c Bank has appointed two veteran Georgetown bankers to its staff.

Danny Siau and Yve e Morgan will establish the ins tu on’s presence in the Georgetown market from a new loan produc on office at 1187 North Fraser Street. Siau, who has 25 years’ banking experience, will serve as senior vice president and Georgetown city execuve. Morgan will serve as assistant vice president and loan specialist. He earned a bachelor’s degree in business management from the University of South Carolina. She is a graduate of HorryGeorgetown Technical College.

Dotson

Jutzeler

Donna Spitzer has been promoted to assistant vice president and mortgage loan underwriter by South Atlan c Bank. She joined South Atlan c in June 2012 and possesses more than two decades of business experience, including 13 years as a mortgage underwriter and processor. Spitzer is a na ve of Maryland and has lived in Pawleys Island for 14 years.

Synovus Corp.

Victoria G. Dotson and Jeremy A. Jutzeler have joined Synovus Trust Co., part of Synovus, the parent of NBSC. Dotson will serve as vice president and senior rela onship manager, and Jutzeler as assistant vice president and rela onship manager. Dotson has more than 28 years of trust experience in the Charleston market. She earned a bachelor’s degree in Business Administra on from the College of Charleston and graduated from the Southeastern Trust School. Jutzeler brings more than 13 years of experience to his new posi on. He earned a bachelor’s degree in Financial Management from Clemson University, an MBA from The Citadel and is a graduate of the Southeastern Trust School. Dotson and Jutzeler are located in NBSC’s Meeting Street branch in Charleston.

Wells Fargo Brian Hungerford joined Wells Fargo & Co. as senior vice president. Hungerford also takes on the role of senior rela onship manager at the bank’s Upstate regional commercial banking office in Greenville. Hungerford earned a bachelor’s degree in Economics from Virginia Tech.

33

The Financial Industry Responding to Community Lending

CICCAR is a regional lending consortium offering permanent debt financing to support the development of affordable multifamily housing in North Carolina, South Carolina, Tennessee, Virginia and West Virginia.

Established in 1990, CICCAR is the largest affordable housing loan consortium of its kind in the nation. With support from more than 100 member banks, we have approved over $240 million in loans to date — creating almost 15,000 rental units for working families, seniors and people with disabilities.

Our lending program is an excellent example of how public and private partnerships can be forged to achieve a common goal of providing safe, decent and affordable housing.

Community Investment Corporation of the Carolinas

CICCAR

P.O. Box 19999, Raleigh, NC 27619 Toll free: (800) 662-7044 Local: (919) 781-7979 www.ncbankers.org

@CICCarolinas

SCBT That’s because in the mid-to-late 1980s many of the big Columbia-based statewide banks were snapped up by out-of-town and out-of-state banks.

Among the venerable ins tu ons that were swallowed: South Carolina Naonal, Bankers Trust of South Carolina, C&S Bank of South Carolina and First Na onal Bank of South Carolina.

“Our goal was to recreate a dominant South Carolina bank, and it’s something we’ve been working on for decades,” he said. “The best banks, I believe, are built over me, o en a great deal of me.

“And the thing we learned the most from the mergers is you can’t build a good bank quickly; it takes decades, not years,” Hill added.

Hill said that he’s been fortunate that SCBT has always had a board of directors and execu ve management willing to take a very long-term view.

Prior to 2010, nearly all of SCBT’s growth came organically, one customer at a me. It went 74 years before it made its first out-of-state purchase, buying the Sco sh Bank of Charlo e, N.C., in late 2007. However, a few years ago, as it became apparent that turmoil was in store for the financial services industry, the SCBT team decided to begin seeking out deals.

“In 2007-08 we knew there was going to be a lot of devasta on in the financial services industry,” Hill said. “We knew we were going to be be er posi oned than most other banks, and we prepared ourselves to take advantage of any opportuni es that might come our way.”

As 2008 rolled around, the SCBT team had a plan in place that detailed where the bank wanted to grow and was preparing itself for taking on two deals a year beginning in a short while.

Since 2010, SCBT has acquired six bank companies: •

The first was the acquisi on of Cornelia, Ga.-based Community Bank & Trust, a 107-year-old ins tu on which was brought into the SCBT fold in 2010 with FDIC help;

‘The best banks, I believe, are built over Ɵme, oŌen a great deal of Ɵme. ... The thing we learned the most from the mergers is you can’t build a good bank quickly; it takes decades, not years.’

– Robert Hill CEO, SCBT •

•

•

•

•

SCBT added to its Georgia franchise a li le more than a year later when, again with FDIC assistance, it acquired Habersham Bank of Clarksville, Ga., in February 2011; The company took over its third failed bank in 18 months when it acquired Columbia-based BankMeridian in July 2011; SCBT substan ally boosted its Upstate franchise when it bought Peoples Bancorpora on Inc., the Easley-based parent of The Peoples Na onal Bank, Bank of Anderson and Seneca Na onal Bank. The $28.4 million deal was completed in April 2012; It made another Georgia deal at the end of 2012, purchasing Savannah Bancorp Inc., parent of The Savannah Bank in a $67 million deal; and SCBT completed the biggest in-state bank merger in South Carolina history on July 26, 2013, when it completed its deal with First Financial Holdings.

Between January 2010 and August 2013 SCBT grew from $2.2 billion in assets, 48 branches and 700 employees to more than $8 billion in assets, 146 branches and 2,300 employees.

First Financial was also busy during the same period:

•

It acquired Cape Fear Bank a er the Wilmington, N.C., ins tu on failed in 2009; • It took over Pawleys Island-based Planta on Federal Bank, another failed company, in April 2012; and • It purchased five Liberty Savings Bank branches in Hilton Head in April 2012.

Hall said that while the two banks were pre y similar in terms of culture, there was some difference in how each operated.

“SCBT operates by pu ng a lot of the decision making in its market regions, while we tended to rely on a more centralized, func onal-line system,” he said.

“We will be going with the local-market model and our folks are excited about it.”

Hall added that the most important aspect to making the merger successful is the con nua on of exis ng rela onships between customers and their bankers, something he has no plans to change.

“We saw how important that was after we acquired Cape Fear Bank when it failed,” he said. “The first day it opened under our name, there were lines of customers who wanted to see if their bankers, the ones who had worked with them prior to our taking their bank over, were s ll there. And they were, which helped us retain nearly all the customers.”

Hill said that SCBT will con nue to employ a community banking model of opera on. A key element in that strategy is close involvement with bank customers.

“I lived in Orangeburg for three years and Rock Hill for eight years in previous pos ons with the bank,” he said. “When you live next door to your customers and see them every day, banking becomes much more than a business rela onship; it’s a personal rela onship and we’ve con nued that approach into our larger markets.

“We’re a community bank – a large community bank – but a community bank, nevertheless,” Hill added.

35

Bank News providing them with access to the EverFi-Financial Literacy learning pla orm.

EverFi is a web-based program that employs new media technology – simula ons, avatars, gaming and adap vepathing – to bring financial concepts to life for today’s digital genera on. The pla orm enables students the opportunity to become cer fied in hundreds of personal finance topics, allowing them to become more informed and responsible.

Independence Bancshares Inc. Greenville-based Independence Bancshares Inc. has filed with the S.C. Secretary of State amended ar cles of incorpora on to increase the number of authorized shares of common stock to 300 million from 100 million, according to a Form 8-K filed with the Securi es and Exchange Commission on July 22.

Palme o Banchsares Inc. Palme o Bancshares Inc., the parent

company of The Palme o Bank, was recently added to the small-cap Russell 2000 Index. Russell determines membership for its equity indexes primarily by objec ve, market-capitaliza on rankings and style a ributes. Inclusion in the Russell 2000 Index will increase visibility for the bank and improve liquidity in the company’s common stock, Chief Execuve Sam Erwin said.

Oconee Federal Financial Corp.

Seneca-based Oconee Federal Financial Corp., the parent of Oconee Federal Savings and Loan, repurchased 10,100 shares of its 150,000 share authorizaon during the quarter ended June 30, 2013.

SCBT Financial Corp.

SCBT Financial Corp. has been added to the NASDAQ Financial-100 Index.

The index includes 100 of the largest domes c and interna onal financial securi es listed on the NASDAQ Stock

Market based on market capitaliza on.

It is reviewed annually and features companies that are included within NASDAQ’s bank, insurance and other finance indexes.

Yadkin Bank Yadkin Valley Bank and its divisions of American Community Bank, Piedmont Bank, High Country Bank and Cardinal State Bank have rebranded under the name Yadkin Bank.

“As this company has grown, each en ty has retained its original name, and we are proud of the strong heritage in each of our legacy names,” Now is the right me to capitalize on the synergy we can create by moving to one brand and one name – Yadkin Bank, bank president and chief execu ve officer Joe Towell said.

Yadkin, which is headquartered in Elkin, N.C., has 34 branches across the Carolinas, including three in South Carolina.

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Good Samaritans First Ci zens The First Ci zens Founda on recently donated $10,000 to the Tri-Development Center of Aiken County Inc. The funds will be used to pay for a por on of the cost to equip one of the center’s vans to be wheelchair accessible. In addi on, a por on of the funds will be used to enhance exis ng residen al services for Aiken County residents with au sm, head and spinal cord injuries, and intellectual disabili es.

“Over the past several years, our state funding has not increased to offset the rising costs of everyday necessi es such as transporta on, electricity and food,” said Ralph Courtney, execu ve director of the Tri-Development Center of Aiken County. “We very much appreciate First Ci zens’ con nued support of our mission.”

From le , Gene McConnell, Nate Barber and Ka e Hane of SCBT; Theresa Chandler, Mabry Center The Tri-Development Center of Aiken for Cancer Care director; Margaret Frierson, Regional Medical Center Founda on interim director; Tom Dandridge, RMC president and CEO; and Donna Ma hews, RMC Founda on chairman, at the County is a private, nonprofit corporaJuly announcement that SCBT will donate $100,000 to the Regional Medical Center. on. line is to raise enough money to turn over five years, will allow the foundaIt provides support for Aiken County the Midlands region of South Carolina on to provide much-needed services, individuals and families affected by disinto a no-kill community. This means no including funding programs that benefit abili es and educates the community healthy, adoptable pet will be euthauninsured individuals within the local on disability preven on. nized simply because it is homeless. The community.

NBSC NBSC team, called the Money Mu s, Among the founda on’s newest proNBSC, a division of Synovus Bank, was among the top contributors, raising jects is the crea on of a Dialysis Access named six South Carolina students $945.

Ins tute and expansion of the Mabry among its 2013 Jack B. Parker ScholarCenter for Cancer Care. ship recipients. Palme o State winners The Mabry Center expansion will NBSC partnered with Gov. Nikki Haley are: Victoria Anderson, from Lexington; add 8,560 square feet to the exis ng and The Original Six Founda on to colRobert Phillips, Charleston; Stephanie 10,145-square-foot facility. lect new and gently used children’s and Futrell, Charleston; Neha Sharma, South Carolina history books.

Sumter; Marian Matney, Charleston; South Atlan c Bank NBSC team members across the state and Cassandra Staton, Columbia.

South Atlan c Bank helped raised more par cipated in this ini a ve and the TThe scholarship program awards total collec on was in excess of 1,600 than $3,000 for the Grand Strand Miracollege or voca onal ins tu on scholbooks. These and other books donated cle Leagues. arships to Synovus team members’ by the public will be distributed to In all, $3,165 was presented to Grand children who excel academically, libraries, schools and a er school proStrand Miracle Leagues officials at the demonstrate strong leadership and are fall opener on Sept. 5. grams in Allendale, Bamberg, Barnwell, involved in ac vi es to improve their Clarendon, Marion, Marlboro and Union This year’s total marked the best funcommuni es. coun es to benefit students in those draising effort yet for the bank, which is This year, 79 scholarships totalling areas. in its fi h year of sponsorship with the $77,500 were awarded to children of Miracle Leagues.

Synovus team members.

The Miracle Leagues are dedicated SCBT NBSC recently raised nearly $1,000 dur- South Carolina Bank and Trust is to providing special needs children and ing Pawme o Lifeline’s Bark to the Park adults the opportunity to play baseball contribu ng $100,000 to the Regional Walk for Animals. and other sports.

Medical Center in Orangeburg.

The ul mate goal of Pawme o LifeThe dona on, which will be paid 37

Welcome, New Associate Members Acumen Edge 1 Distribu on Court Greer, S.C., 29650 864.271.9000 Contact: Stacy A. Kuper Phone: 864.542.7905 Email: stacy.kuper@acumenit.com Website: www.acumenit.com One of the largest technology companies in the Carolinas and Georgia, Acumen EDGE provides industry-leading IT Managed Services, Data Center Solu ons, and Business Applica ons for businesses of all sizes.

Offering a unique combina on of industry-leading technology products and professional consul ng services, Acumen helps companies address their most complex business needs. With a team of senior-level consultants, Acumen boasts extensive experience across all business func onal areas including execu ve-level financial, opera ons, sales, IT, HR, distribu on, and manufacturing.

AT-NET Services 9625 D. Southern Pine Blvd.

Charlo e, N.C., 28277 704.831.2500 Contact: Joel K. Sosebee Phone: 704.831.2504 Email: joel.sosebee@AT-NET.net Website: www.exper p.net Founded in 1999, AT-NET Services has grown into the premier technology integra on firm in the Southeast.

With a consulta ve, solu ons-focused approach, best-of-breed vendors, and the industry¹s most talented sales and engineering force, AT-NET offers comprehensive assess, design, build, secure & manage. Clients choose ATNET because: We are the best in our field; we employ smart people who are 38

passionate about their careers; we staff only dedicated career employees; we have built a reputa on as responsive, capable, & accessible; and we strive to have a valuable partnership with our customers.

Premier Alliance Group, Inc. 4521 Sharon Rd., Suite 300 Charlo e, NC 28211 704.521.8077 Contact: Glenn Ross Email: glenn.ross@premieralliance.com Website: premieralliance.com Premier Alliance is a leading provider of business performance, cyber security and energy management solu ons. Headquartered in Charlo e, N.C., Premier has been delivering results that improve producvity, mi gate risk and maximize profits since 1995. We have delivered tangible results to our clients from Fortune companies to mid-sized and ownermanaged businesses across a broad range of industries and government.

The Advisory Services division partners with organiza ons that are dealing with business challenges brought about by shi ing markets, transac ons, day-today opera ons, technology projects and regula on.

Roe Cassidy Coates & Price, P.A. 1052 N. Church St. Greenville, S.C., 29601 864.349.2600 Contact: Amber B. Glidewell Phone: 864.349.2620 Email: aglidewell@roecassidy.com Website: www.roecassidy.com At Roe Cassidy Coates & Price, P.A., we try cases, we help our clients do deals, and we help our clients solve problems. Roe Cassidy Coates & Price, P.A. was founded in January 2002. It is a small

law firm engaged in a large firm pracce. We have 10 lawyers who provide representa on and counsel in the areas of li ga on, alterna ve dispute resoluon, real estate, business and corporate ma ers, bankruptcy and banking, employment, compe on and trade secrets, professional liability, family law probate and elder law, and health law.

Collec vely we have over 200 years of experience in the prac ce of law. At Roe Cassidy Coates & Price, P.A. we pride ourselves not only on our legal experience and knowledge, but also on our dedica on to dealing with the en re needs of our clients - we take the me to know and develop a rela onship with our clients in order to fully understand how we can best represent them.

SNL Financial 1 SNL Plaza Charlo esville, Va., 22902 434.951.4419 Contact: Julie Jones Email: jjones@snl.com Website: www.snl.com/communitybank For 25 years, SNL Financial has been recognized as the gold standard for banking industry intelligence.

More than 700 community banks across the na on already rely on SNL Financial for the data and tools they need to outperform the compe on. With new product addi ons like a comprehensive interest rate database and tools for UBPR analysis and bank valua ons, SNL is now, more than ever, your secret weapon for banking success. SNL will help you evaluate your performance and balance sheet ra os rela ve to peers, improve your compe ve intelligence and refine your pricing strategy, understand compe tor branches and deposits, and the demographics of your markets, assess poten al mergers and acquisi ons, prepare for mee ngs with your board, investors and regulators.

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South Carolina Bankers Associa on (2009 Park Street) Post Office Box 1483 Columbia, South Carolina, 29202-1483

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More than 100 banks in the Southeast, large and small, depend on Elliott Davis for personal attention, industry experience and services, including external and internal audit, SEC reporting, taxation and

Not all of a bank’s assets are found on its balance sheet.

compliance. Our financial services practice is 90 professionals strong, with a 60-year reputation for helping banks operate stronger, wiser, better.

Let us know how we can be an asset to you.

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