Palmetto Banker 2018-3

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Summer Issue 2018-3


New SCBA Chairman David Morrow


Chairman David L. Morrow CresCom Bank Charleston, SC

Chairman-Elect Samuel L. Erwin IBERIABANK Greenville, SC

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

Treasurer K. Wayne Wicker South Atlantic Bank Myrtle Beach, SC

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


2nd Immediate Past Chairman Robert R. Hill, Jr. South State Bank Columbia, SC

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

Group I Director K. Reid Pollard Enterprise Bank of SC Ehrhardt, SC

Group II Director Boyd B. Jones Synovus Columbia, SC

Group III Director Curtis T. Evatt Oconee Federal Savings & Loan Seneca, SC

Group IV Director James B. Schwiers GrandSouth Bank Greenville, SC

Group V Director Samuel R. Small, Jr. First Palmetto Bank Camden, SC

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

Community Bankers Division, Chairman Fred Gilmer III Southern First Bank Greenville, SC

Bankers School, Chairman Ford P. Menefee The Bank of South Carolina Charleston, SC

Young Bankers Division Chairman Charles K. Talbert The Bank of South Carolina Charleston, SC

Member-at-Large Jan M. Malinowski Palmetto State Bank Beaufort, SC

Member-at-Large James B. Smith Sandhills Bank North Myrtle Beach, SC

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

Member-at-Large Fleetwood S. Hassell The Bank of South Carolina Charleston, SC

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

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

2009 Park Street I PO Box 1483 Columbia, S.C., 29202-1483 803.779.0850 I Fax: 803.779.0890 2018-19 SC BA EXEC U TIV E CO M M ITTE E Chairman.....................................................................................David L. Morrow, CresCom Bank Chairman-Elect.............................................................................. Samuel L. Erwin, IBERIABANK First Vice-Chairman.............................................................. James A. Bennett, First Citizens Bank Treasurer............................................................................. K. Wayne Wicker, South Atlantic Bank Immediate Past Chairman................................................... R. Thornwell Dunlap III, Countybank

Contents 5

Past Chairman’s Message


2018-19 SC BA BOARD O F D IR E CTO R S New Chairman: David Morrow 2nd Immediate Past Chairman.................................................Robert R. Hill, Jr., South State Bank SCBA President & CEO.............................. Fred L. Green III, South Carolina Bankers Association Directors.......................................................................J. Neal Anderson, Anderson Brothers Bank Laurence S. Bolchoz, Jr., Coastal Carolina National Bank Curtis T. Evatt, Oconee Federal Savings & Loan ABA Update Fred Gilmer III, Southern First Bank Fleetwood S. Hassell, The Bank of South Carolina Boyd B. Jones, Synovus Jennifer T. Jones, CBL State Savings Bank Jan M. Malinowski, Palmetto State Bank Legislative Update Ford P. Menefee, The Bank of South Carolina Rose Buyck Newton, Bank of Clarendon K. Reid Pollard, Enterprise Bank of SC James B. Schwiers, GrandSouth Bank Community Bankers Update Samuel R. Small, Jr., First Palmetto Bank James B. Smith, Sandhills Bank Charles K. Talbert, The Bank of South Carolina 2018-19 SC BA C OMM UN ITY B A N KE R S D IV IS IO N B OA R D 2018 SCBA Convention Review Chairman............................................................................... Fred Gilmer III, Southern First Bank Chairman-Elect..................................................................... J. Ted Nissen, First Community Bank Immediate Past Chairman...............................................Robert L. McKinney, South Atlantic Bank Directors.............................................................. Marion E. Freeman, The Conway National Bank L. E. Griffin, Home Federal Savings & Loan South Carolina Bankers School James A. Kimbell III, Coastal Carolina National Bank Richard N. McIntyre, First Reliance Bank Jamie O. Morphis III, Carolina Bank & Trust Co. Barry L. Slider, First South Bank C. Kyle Thomas, Blue Ridge Bank


10 13 16


2018-19 SOUTH C ARO LIN A B A N KE R S S CH O O L B O A R D Chairman ................................................................. Ford P. Menefee, The Bank of South Carolina Chairman-Elect ................................................................................Annette L. Scott, Countybank Past Chairman.............................................................................Scott M. Frierson, CresCom Bank Directors............................................................................. Richard N. Burch, South Atlantic Bank Robert P. Hucks II, Coastal Carolina National Bank Calvin C. Hurst, TD Bank, N.A. John M. Leighton, South State Bank Joseph A. Painter, First Community Bank Marvin E. Robinson, Jr., CresCom Bank J. Reeves Skeen, First Citizens Bank Tricia P. Springfield, Southern First Bank Robert L. White, Bank of Travelers Rest Course Coordinators...........................................................James R. Clarkson, First Reliance Bank John C. Griggs III, Synovus W. David Keller, Coastal Carolina National Bank Francis A. Townsend III, South State Bank 2018-19 Y OUNG BAN KE R S D IV IS IO N B O A R D O F D I R EC T OR S Chairman ............................................................. Charles K. Talbert, The Bank of South Carolina Chairman-Elect..............................................................Elizabeth S. Steifle, Bank of Travelers Rest Past Chairman.................................................................Jennifer T. Jones, CBL State Savings Bank Directors........................................................................... Thomas H. Anderson, South State Bank Brad Cantrell, Oconee Federal Savings & Loan Allison B. Cranford, TD Bank, N.A. Rufus T. Dunlap V, Countybank Casey L. Earl, United Community Bank Margi M. Fleming, The Citizens Bank Lauren D. Greene, Synovus Luther H. Holmes III, Arthur State Bank Jamin M. Hujik, CresCom Bank Othniel W. Laffitte, GrandSouth Bank David P. Looper, Wells Fargo Jared A. Polk, Enterprise Bank of SC Charles H. Redmond, South State Bank B. Oneal Staples, Ameris Bank H. Gibson Tucker, First Palmetto Bank


Young Bankers Division


Welcome New Members


Personal Transactions


Banking News


Education and Professional Development

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




Chairman’s Message

I know the SCBA is in

good hands

As all of you know, I have grown up in the banking industry. I think the first convention of the SCBA I attended with my mother and father was when I was 8 years old. And I have never missed one since. Many of my best friends are bankers and associate members I’ve met over the years. I was fortunate to have been your Chairman this past year, and it has been one of the highlights of my career. It is a personal highlight as well in that my father was the SCBA Chairman 30 years ago. This past year was an exciting and productive one. I want to thank the SCBA staff, our board and our membership for their energetic support on getting a great deal accomplished this year. The primary mission of the SCBA is political advocacy for our industry at both the state and the federal level. Rob Nichols of the ABA mentioned during his remarks at the Annual Convention the Federal success, and I am proud of the role our members play in this industry-wide initiative. Politics on a state level, though, is where we have a more direct impact. Most of what we do is defensive in nature— keeping bad things from happening. And we were successful on all fronts last year. The strategy we developed to defeat the credit unions attempt to expand field of membership played out beautifully and we won on this issue. Tax reform became another issue late in the session and we

won on two bills. One, which would have created a double taxation issue for our state’s S-Corp banks, including mine, was defeated. The FDIC premium whose deductibility was eliminated on the Federal return with tax reform was decoupled on the state return. There are several others, and all together we had another successful legislative year. The second most important issue to our members is our education offerings. All of our events start with the requirement that they cover topics that are important, relevant, timely, and actionable. A quick example is BSA/AML and a concern I had about awareness within our member banks. Within 30 days of raising this concern, an event was created where senior FDIC officials discussed examination processes to our bankers. Of course, it goes without saying that we need to run our Association as efficiently as possible while providing these valuable resources to our members. Because of how we run the business, we have doubled the education foundation over the last 4 years and our Board of Directors has approved a new “dividend of sorts” to our members. I am referring to our Participation Program. Strong participation makes all of our events better, whether it’s a one day seminar, Bankers School or the convention. Having a good mix of bankers and associates from all segments of our industry and all parts of South Carolina is important.

R. Thornwell Dunlap III Immediate Past Chairman, SCBA

Therefore, we want to reward your bank’s participation in our activities this past year. $200,000 has been set aside to act as a “buy one, get one” coupon for events in the next year. These dollars will be allocated to banks on a pro-rata share of the total registration fees paid for all events. For easy math, let’s assume total registration fees for this year were $500,000. With the $200,000 we have set aside for next year, your bank will get roughly 40% credit for events in the next fiscal year. It will be a dollar for dollar match and will be good for one year. Our hope is that this will encourage even greater participation this upcoming year. If you traditionally send one person to Bankers School, hopefully this coupon will allow you to send two. We are very excited about rebating these dollars back to membership in a way that should encourage greater participation in the future and make our Association even stronger. Let me again, thank our staff for their hard work, our board for their engagement and active participation, our members— both banks and associates—for your constant support. I know the SCBA is in good hands as we transition to David Morrow as our new chairman. I’ll end by thanking all of you for making this the best state banking association in the country.



Cover Story

Morrow Brings 40-Plus Years of

Knowledge, Insight to SCBA Chairman’s Role CresCom Chief Executive Officer David Morrow has been through much in his 40-plus years in banking: mergers and acquisitions, starting a bank and more than one significant financial downturn. But nothing in his experience could have prepared him for Aug. 21, 2017.

On that day, a 32-year-old North Carolina man entered a CresCom branch in Conway and brutally killed 59-year-old Donna Major of Conway and 36-year-old Kathryn “Katie” Skeen of Green Sea while robbing the bank. Morrow called the senseless deaths an “unimaginable” tragedy. “It rocked every person in our company to the core,” he said. “It was particularly difficult because we had to hide our grief as we tried to comfort the families of the victims, the team members who worked with the two ladies as well as the entire CresCom team. It was an incredibly difficult time.” “There was a lot of hand-holding and a lot of prayers,” he added. “Through the grace 6

of God, we as a team got through it, but it was a surreal situation.” Morrow, the 2018-19 chairman of the South Carolina Bankers Association, said the rapport the state’s bankers feel for one another, even those who are competitors, came through amid the sorrow. “From the very moment the news broke about the tragedy, we started receiving phone calls and emails from bankers across the state expressing their condolences and asking how they could help,” he said. “It wasn’t surprising, but it certainly was comforting.” Memorial funds were set up in the names of the two tellers, and nearly every bank in the state contributed, along with the SCBA. Even ABA President and CEO Rob


Nichols, vacationing in South Carolina when the shootings took place, called Morrow to see what he could do, and then personally went to a CresCom branch and contributed. Part of the healing process has come from the support of other bankers, which helped provide the strength to move forward, Morrow said.

Past Bodes Well for Present Given the scope of Morrow’s career and the success he’s enjoyed in building CresCom, it’s not surprising that he has a strong network of support to draw upon when necessary. Since 2000, he and his team have built one of the premier community banks in

the state. CresCom today has more than 60 branches in the Carolinas and more than $3.5 billion in assets.

six years, and culture is a big issue you have to be focused on to make the most of your opportunity.

Its growth over the past few years has been exceptionally strong:

After 14 years with Bankers Trust/NCNB, Morrow joined First Union, then was recruited by Carolina First CEO Mack Whittle. He would serve as president of Carolina First Savings Bank and also on the Carolina First Bank board.

• It purchased 13 branches spread among the Carolinas from Virginia based First Community Bank in late 2014;

“Prior to joining Carolina First, my highest position had been city executive, but this was a lot different, and I enjoyed it,” he said.

“The cultural responsibility, making the transition as smooth and seamless as possible, is the CEO’s responsibility,” he added. “That’s something we learned from the Crescent-Community First Bank integration and something we’ve remained focused on.”

• In September 2015, CresCom moved into the Upstate when it opened a de novo branch in Greenville;

Morrow spent nine years with Carolina First Bank. During that time, he decided that if the company were ever sold, he would give serious consideration to starting a new bank.

Morrow said one of the keys to a successful deal is understanding that a merger can’t be shoehorned together. “It’s got to fit before you even get to the deal-signing stage.”

A New Beginning

SCBA Plans

Morrow didn’t wait until Carolina First was sold, though, striking out on his own in 2000 to form Crescent Bank, under holding company Carolina Financial Corp. The latter was formed in 1997 and already had a Charleston-based institution, Community First Bank.

Morrow said he doesn’t envision big changes as chairman of the SCBA. The Association is running smoothly thanks to the leadership of past chairmen and that of current SCBA leadership, and he’d like to continue the progress, he said.

• It bought Cayce-based Congaree State Bank in 2016; • It acquired Greer State Bank in March 2017; and • In November 2017, it purchased Wilmington, N.C.-headquartered First South Bank. “We have been acquisitive and would like to continue to be acquisitive as opportunities present themselves,” Morrow said. Although today Morrow runs the S.C.’s second-largest state-based bank, he didn’t envision a long-term career for himself in the industry after earning a degree from Clemson University. “When I finished school banking seemed like a good industry to start out in,” he said. “I figured I could go into banking, learn the ropes and see what doors it might open elsewhere.” What changed his mind was a shift in responsibilities a few years into his career. He had begun at South Carolina National, then after four years joined Bankers Trust, which later became NCNB, and today is Bank of America. “I spent my first seven years on the retail side, then I moved over to the commercial side, and that really suited me much better,” Morrow said. “That’s when I think I really started considering a career as a banker. When I got into the commercial side, everything came fairly rapidly in terms of moving up.”

Crescent cruised along until the Great Recession struck, beginning in late 2007. Morrow’s experience, skill and ability to make critical decisions during a difficult period was pivotal to keeping the bank and holding company going, according to one senior executive. “We wouldn’t be where we are today without David,” said J. Huggins, president of CresCom’s commercial bank. “We might not even exist as a company without David. We went through a lot of challenges in 2009 to 2011, and he was the glue that kept us together.” As the downturn dragged on, parent company Carolina Financial recognized the need to cut costs. It responded by merging Crescent and Community First Bank into a single institution in 2011, which it named CresCom. The work involved with merging the different cultures of the two institutions gave Morrow invaluable experience for future acquisitions, he said. “Both institutions had very different cultures, and it took a lot of work to bring them together,” he said. “We’ve done a lot of mergers in the past five or

SCBA President and CEO Fred Green has a long relationship with Morrow, beginning when the two were in the early stages of their careers. “David and I moved with our respective banks to Hilton Head in the late ‘80s as regional executives. Although we competed for the same clients every day, we became friends as well,” Green said. “My wife Mary and I have enjoyed a great friendship with David and Nancy since then. I doubt there is another industry besides banking where direct competitors can become good friends.” Among initiatives Morrow wants to continue to build on are improving membership participation and a recently devised plan that will give member banks a discount when attending educational events, based on what they’ve already spent on similar events. “The goal is to allow a bank that might be able to only send one person to a seminar or workshop to be able to send two, or to allow a bank to send someone to a seminar or workshop when it might not have been able to do so otherwise,” he said. Morrow has long been an SCBA advocate. He first became active in the Association



Cover Story

Name Age Hometown Education Title Family

when he went to Bankers School. He served as Chairman of the Young Bankers Division, later was head of the Community Bankers Council, and has served on the board for several terms over the years. Morrow has been on the SCBA legislative trip to Washington more times than he can count and plans to keep the Association and its goals front and center among elected officials.


David Morrow 68 Spartanburg Bachelor’s Degree, Clemson University Chairman, South Carolina Bankers Association President & CEO, CresCom Bank Executive Vice President, Carolina Financial Corp. Wife–Nancy Children–Jennings (Lucy), Griffin (Brittany) Grandchildren–Isabella Grace, Joseph Griffin II “Finn”, Latham

“That trip is very important; it’s a way for us to get the word out about what we do, and it enables us to give real-life examples of how legislation affects our banks and our customers,” he said. “We have to continue to call on our representatives and senators—both in Washington and Columbia—to make sure they understand our industry and the challenges we face.”


Morrow added that he takes great pride in his role as SCBA chairman. “It’s an honor to represent the banking community in South Carolina,” he said. “You get to represent the entire banking community during very interesting times, and that’s something I’m looking forward to.”

ABA U p d at e


Just-as-Hard Part Prior to May 24, 2018, bankers may have had a hard time remembering what a big win in Congress looked like. It’s true that in the past year we saw important progress with the enactment of historic tax reform and the overturning of the Consumer Financial Protection Bureau’s arbitration rule. But substantial regulatory reform had been elusive for a decade. That changed when Senate Banking Committee Chairman Mike Crapo (R-Idaho) committed to crafting a bipartisan bill that recalibrates banking rules to allow banks to better serve their customers, clients and communities. Crapo’s distinctly bipartisan approach, plus roughly 19,000 banker visits to Washington and tens of thousands of emails and calls to lawmakers over the past eight years, changed everything. The result is S. 2155, the first positive, bipartisan regulatory reform bill to be signed into law in years. This occasion is worth noting not because S. 2155 contains everything banks want and need in order to fully serve their customers; it doesn’t. But the law suggests that the era of indiscriminately heaping more rules on banks has ended and a new era of better tailored regulation is settling in. It also recognizes that banks play an essential role in helping their customers, communities and the economy grow, and that policy should support that role, not make it harder. That’s real progress, and it’s thanks to bankers owning their role in the political and policy-making process. You identified the problems, helped craft solutions and explained to lawmakers why they mattered.

Rob Nichols, President and CEO American Bankers Association

regulatory fiat. These include modernizing the Community Reinvestment Act and updating Bank Secrecy Act/anti-money laundering rules, not to mention a top-to-bottom review of the Consumer Financial Protection Bureau’s rules and actions.

As tempting as it is to spend the rest of this column spiking the ball and congratulating us all on a job well done, I won’t. Because even more work lies ahead. Not only is there so much more Congress can do to right-size financial rules, but a quick scan of the effective dates of S. 2155’s provisions shows that Congress made about one-third of the laws’ changes effective immediately; the rest were punted to the regulatory agencies to handle. (You can find a list of effective dates at That means a lot of regulatory proposals and guidance is still to come. Bankers will need to be part of each rulemaking to ensure the banking agencies implement the law as intended. Here’s just one example of why staying involved will matter. Among the provisions to be implemented is a variation of one that ABA and the state associations first suggested, relieving highly capitalized community banks (those under $10 billion in assets) from the complex Basel III capital standards. Congress directed the banking agencies to designate such banks using a simple leverage ratio that is somewhere in the 8-to-10 percent range. If regulators choose 8 percent, around 95 percent of banks under $10 billion could be eligible for the relief. If they choose 10 percent, only two-thirds of those banks would qualify. We believe 8 percent is a logical and appropriate threshold and will need bankers’ help to make that case. In addition to S. 2155 implementation, the new crop of leaders at the banking agencies are eyeing other improvements to rules that can be done through

So for those who might be thinking that S. 2155’s enactment means fewer trips to Washington to plead your case, think again. Your engagement remains vital to improving the policy environment for banks — the focus just shifts from lawmakers to rule makers. Weighing in on the details of proposed rules is the granular part of advocacy, but it’s just as consequential as helping a bill through Congress. That’s why we’ll be reaching out to bankers when the time comes to help us shape rulemakings. I hope you’ll respond with as much passion and commitment to our regulatory action alerts as you did throughout S. 2155’s long, eight-year journey.



L e g i s l at i v e U p d at e


Successful Legislative Session The South Carolina General Assembly ended its two-year session on May 9th...yet returned in June to finish legislation on utilities and to adopt a budget. Even after that extended session, instead of adjourning they receded and may come back in the Fall to take up vetoes and limited issues such as tax conformity. For SCBA, two issues consumed most of the session—credit unions attempting to expand field of membership and tax reform. As is typical for each year, there were also numerous other banking bills that SCBA weighed in on but none passed or were carried over to the next session.

CREDIT UNIONS In January 2017, S337 was introduced on behalf of the credit unions. But this bill was not a regulatory relief bill (as stated by the credit unions) or even a parity bill to bring state-chartered credit unions in line with federal ones; instead, S337 provided state-chartered credit unions significantly more liberal fields of membership than what federal credit unions have. Yet, there are only 11 state credit unions and they have an average size of $50 million in assets. Instead, the intent of the bill was different but simple– create an environment in South Carolina that would entice larger federal credit unions (some over $1 billion in assets) to convert to state ones so they could take advantage of these rules. Fortunately, SCBA staff caught this bill early (before it was introduced) and with the help of many bankers, through emails, calls and testimony, convinced the Senate to reduce the bill to a simple parity bill. The House then passed the Senate version and it was signed by Governor McMaster. So, what did the original bill do? The credit unions initially sold the bill as just a regulatory relief bill. However, what S337 10

actually proposed was to eliminate the State Board of Financial Institutions’ ability to review and approve field of membership expansion. It also allowed state-chartered credit unions to add unlimited members and add numerous communities–all with almost no regulatory review. Most strikingly, the bill proposed that anyone could become a member as long as the credit union had the ability to serve them, which included electronic banking. What this meant was that if a credit union had a website and a person had Internet access then that person could become a member. Essentially S337 provided unlimited membership in credit unions. SCBA pushed back immediately. SCBA staff worked with senators to explain why tightly drawn field of membership rules are necessary–in fact, many senators were unaware of these restrictions and that credit unions do not pay income taxes. Community bankers contacted their senators and pointed out the significant advantages credit unions have with this tax exemption and that these credit unions compete directly with South Carolina community banks.


After three subcommittee hearings the Senate removed these provision and left a bill that allowed state-chartered credit unions to do four things that federal ones already may do: • Check-cashing and money order service to non-members in their field of membership; • Board of directors’ meetings less than 12 times a year; • Investment in charitable donation accounts; and • No cap on fixed asset investment. Lastly, S337 was amended to statutorily adopt a 2001 State Board of Financial Institutions’ operating instruction that allowed state-chartered credit unions to serve communities in South Carolina–as federal credit unions can. This change simply codified what state-chartered credit unions could do as it was. SCBA was successful in its lobbying efforts but SCBA and its bankers must be mindful that this was not the last time credit unions will attempt to expand state law. Their goal is to consistently expand; so bankers must continue to educate their

local lawmakers on why credit unions must “stay in their lane” and the impact additional expansion would have on community banking.

TAXATION Taxation was a much discussed issue even though no significant tax bills were passed in 2018. First, the House Special Joint Committee on Taxation continued to meet on overall taxation issues in South Carolina, attempting to address perceived and actual inequities in taxation. Secondly, tax conformity received attention late in the session. The House tax committee’s meetings did produce work as the committee introduced a bill on individual income taxation reform; issued recommendations (but no bill) on sales tax reform; but continued for future discussion property tax reform. For banks, SCBA discovered there were some issues in the individual income tax bill as it proposed to eliminate the tax credit S Corp bank shareholders receive for their pro rata share of the banks’ tax liability. SCBA immediately worked with staff and key legislators on the importance of this tax credit. The bill was not intended to move forward; however, it likely will be reintroduced in the next session and SCBA will continue to work with legislators and staff if so. Conforming South Carolina tax code to changes in the federal tax code is usually noncontroversial, but this year due to significant changes Congress made with the Tax Cuts and Jobs Act, simply conforming became a difficult option as it would have created more than a $200 million tax revenue windfall to the state. Legislators did not want to be seen as taking advantage of a windfall on the backs of taxpayers. However, not conforming would force taxpayers to compute their taxable income twice–once for federal and once for the state. This, too, was not an option.


act on this bill or its own bill before the end of the session. The Senate now has convened a special subcommittee to review both bills and hopefully pass a conformity bill this Fall.

V.C. SUMMER, SANTEE COOPER, AND UTILITY REGULATION Overwhelmingly, the General Assembly’s focus in 2018 was on SCANA’s announcement that building the V.C. Summer nuclear plant in Fairfield County was no longer financially viable and that it was abandoning construction. The immediate impact was that 5000 were no longer employed; Fairfield County lost a major project; and that SCANA’s 40% partner in the project, state utility Santee Cooper, now was holding $4 billion in debt. But the biggest problem was that a 2007 law, the Base Load Review Act, allowed SCANA to continue to charge ratepayers an 18% each month to pay for the plant even though it was abandoned. Legislators sought to correct these problems and after numerous committee meetings, passed bills that temporarily reduced the charge from 18% to 3%, repealed the Base Load Review Act, and restructured utility regulation and oversight. For Santee Cooper, a study committee is still reviewing whether to sell it to a private interest. There is considerable litigation from these legislative actions and depending on court decisions the General Assembly may need to address these issues again in the next session.

The next two-year session begins on January 8, 2019 and there will be thirteen new House members as the House is up for re-election in November, as well as one new senator since there is a special election to fill the seat in Senate District 20. Additionally, all constitutional officers will be up for re-election in November. With many new faces there will likely be new issues but two issues from the last session will most likely return–utility oversight and tax reform. For banks, there will be new bills concerning subjects such as mortgages, consumer lending, tax credits and uniform laws as well as many others. For banks to continue their positive presence at the State House, SCBA strongly urges its membership to stay on top of legislative issues by subscribing to the SCBA State Legislative Update; but also to remember to cultivate positive relationships with legislators.

If you would like more information about these and other bills, please contact Neil Rashley, SCBA Senior Vice President and Counsel, at or (803) 779-0850. The text of bills can be found at

So, it became incumbent to eliminate this windfall through modifying income taxation and decoupling from some of the federal provisions. The House passed a bill that did this and would send revenues back to taxpayers; but the Senate did not S U M M E R 2 0 1 8 • PALMETTO BANKER


Community Bankers U p d at e


Congress Makes Way for Reciprocal Deposits A lesser-known provision of a new law just changed the market for deposits, and it could not have come at a better time for banks, especially community banks. The provision, which is part of the regulatory relief package for banks just signed by President Trump, provides that most reciprocal deposits are no longer treated as brokered. As a result, well-capitalized banks can now attract more large-dollar, local relationships and, in turn, have more cost-effective funding on hand to finance lending in their communities. In recent months, U.S. banks have been

bracing for increased competition for customer deposits. According to the Bank Executive Business Outlook Survey (2018, Q1) a record number of bank respondents (76 percent) reported facing more competition for deposits over the past year and almost 90 percent believe it is only going to get tougher. In fact, the combination of rate hikes (more are expected later this year) and the Federal Reserve’s $1.5 trillion reduction of its balance sheet should continue to push deposit costs upward. With the Fed not

Experience Compared to 12 Months Ago

Expectation for the 12 Months Ahead












Source: Bank Executive Business Outlook Survey 1st Quarter, 2018

Danny Capitel, Regional Director Promontory Interfinancial Network, LLC

reinvesting the principal proceeds from maturing securities, liquidity will be pulled from the markets and banking system, reversing the impact of the first and second Quantitative Easing. And banks are bracing themselves for more competition from the nation’s largest banks, as well as from non-traditional players that include the likes of fintech companies, Goldman Sachs’s Marcus, and the potential entry of Amazon.

RECIPROCAL DEPOSITS Fortunately, the enactment of the Economic Growth, Regulatory Relief, and Consumer Protection Act should offer banks some relief. This important new law provides that most reciprocal deposits are no longer considered brokered deposits. Reciprocal deposits are deposits that a bank receives through a deposit placement network in return for placing a matching amount of deposits at other network banks. Although there are a number of providers, the leading reciprocal deposit placement network in the United States is operated by Promontory Interfinancial Network, LLC, which invented reciprocal deposits and offers two of the nation’s largest reciprocal deposit placement services: Insured Cash Sweep®, or ICS®, and CDARS®.



Community Bankers U p d at e THE ECONOMIC GROWTH, REGULATORY RELIEF, AND CONSUMER PROTECTION ACT This new law recognizes something that many in the banking sector have long understood–reciprocal deposits behave as core deposits in that they are “sticky” (CDARS deposits reinvest at a rate of approximately 80%, for example), and that the institution accepting the deposit maintains the relationship with the depositor. Specifically, the law amends section 29 of the Federal Deposit Insurance Act so that, subject to the definitions, terms, and conditions of the Act as amended: • If a bank is well capitalized and has a composite condition of outstanding or good (CAMELS 1 or 2), its reciprocal deposits up to the lesser of $5 billion or 20% of the bank’s total liabilities


are no longer considered brokered. Reciprocal deposits over these amounts are allowed, but the incremental amount (overage) is treated as brokered. • If a bank drops below well capitalized, the bank no longer requires a waiver from the FDIC to continue accepting reciprocal deposits, so long as the bank does not receive an amount of reciprocal deposits that causes its total reciprocal deposits to exceed a specified previous average. As before, interest rate restrictions apply while the bank is less than well capitalized. Banks now have a much larger, approved source of stable deposits that can be tapped. This means banks can help even more customers–including businesses (large and small), nonprofits, municipal governments, financial advisers, and even individuals–to safeguard their funds,


potentially at even higher levels. All at the same time attracting locally priced, large-dollar deposits, which can be used to reinvest in the bank’s community. Furthermore, banks can use reciprocal deposits to replace more expensive deposits, like routinely collateralized deposits that come with tracking burdens, and those from listing services (generally associated with wholesale pricing and no loyal or local customer relationship).

MAKING THE MOST OF THIS NEW OPPORTUNITY Now is the time to act by taking advantage of this important change in banking law. Read more about the new law and about the nation’s largest, most well-known reciprocal deposit services by visiting For more information, contact Danny Capitel at

New look. New name. Same commitment. Community Investment Corporation of the Carolinas is now Centrant Community Capital.

For more than a quarter century, we have operated as a partnership of financial institutions, leveraging the resources of the banking industry to finance the creation and preservation of affordable housing. Since 1990, when we served just one state, our legacy and reach as a mission driven lender has expanded steadily. Today, we are a regional funding resource, providing financing for properties across the Southeast.

It’s time for our name to match our vision. S U M M E R 2 0 1 8 • PALMETTO BANKER


SCBA Annual Convention




FOR 2018 ANNUAL CONVENTION More than 400 bankers, associate members, family and friends attended the 2018 SCBA Annual Convention, held June 10-13 at The Cloister at Sea Island, Sea Island, GA. The 118th annual convention featured a strong lineup of speakers, excellent accommodations and the usual warm and hearty fellowship. “For more than 116 years the SCBA has gathered annually and each year our convention seems to get better and better,” said Bankers Association President and CEO Fred Green. Speakers at this year’s event included ABA President and CEO, Robert S. Nichols; President and Chief Investment Officer of Greenwood Capital, Walter B. Todd III; Faculty member of the Bush School of Government and Public Service at Texas A& M University, James M. Olson; and Chaplain Bill Barrow, Chaplain of the Sea Island Company.

There were over 30 exhibitors at the convention, as every exhibitor booth was filled. The grand prize, a 3-day, 2-night return stay at The Cloister, was won by Dr. C. Michael Campbell, Director, Abbeville First Bank, Abbeville. New officers were sworn in, including 2018-2019 Chairman David Morrow of CresCom Bank; Chairman-Elect Sam Erwin, IBERIABANK; First Vice-Chairman James Bennett, First Citizens Bank; and Treasurer Wayne Wicker, South Atlantic Bank. For a complete list of the 2018-2019 South Carolina Bankers Association Board of Directors, see inside front cover. Next year’s annual convention will be held June 9-12, at The Sanctuary, Kiawah Island, SC.

2017-18 SCBA BOARD OF DIRECTORS Pictures from L to R: Jan M. Malinowski, Palmetto State Bank, Curtis T. (Curt) Evatt, Oconee Federal Saving and Loan, Samuel L. (Sam) Erwin, IBERIABANK, James B. (JB) Schwiers, GrandSouth Bank, *David R. Torris, SunTrust, Jennifer T. Jones, CBL State Savings Bank, Fleetwood S. Hassell, The Bank of South Carolina, K. Reid Pollard, Enterprise Bank of S. C., Chairman R. Thornwell Dunlap III, Countybank, Fred L. Green III, South Carolina Bankers Association, David L. Morrow, CresCom Bank, *Robert L. (Bob) McKinney, South Atlantic Bank, Samuel R. (Sammy) Small, Jr., First Palmetto Bank, James A. Bennett, First Citizens Bank, *S. Mark Munn, Bank of America Not pictured: Robert A. Hill, Jr., South State Bank, *David M. Lominack, TD Bank N.A., *W. Jennings Duncan, The Conway National Bank, Laurence S. Bolchoz, Jr., Coastal Carolina National Bank, James B. (Jim) Smith, Sandhills Bank, *Scott M. Frierson, CresCom Bank

Thank you for your service




SCBA Annual Convention





SCBA Annual Convention



Drew Painter Recognized as

2018 S.C. Outstanding Young Banker Joseph Andrew “Drew” Painter, Columbia Regional Market President, of First Community Bank, has been named the 2018 S.C. Outstanding Young Banker by the South Carolina Banker’s Association. Painter received the award—the highest honor presented in South Carolina’s banking industry—during the SCBA’s annual meeting on June 11. This prestigious honor is chosen by the SCBA Past Chairman’s Club and has been awarded to one deserving banker each year since 1970. Past recipients include many prominent South Carolina bankers, who’s names are listed on the next page. “It is such a pleasure to work with someone of Drew’s character and ability, and we are so proud to see his hard work acknowledged on a state-wide platform,” said Mike Crapps, President and CEO of First Community Bank. “Not only is Drew an exceptional leader in our industry, but he’s also an outstanding person, and we’re honored to have him on our team.” With more than 18 years of industry experience, Drew joined First Community

includes serving on the board of directors for Business Carolina, Inc., Palmetto Health and Palmetto Health Children’s Hospital Foundation, where he served as Chairman.

Bank in 2003 shortly after graduating from the University of South Carolina with degrees in finance and marketing. Drew is also a graduate of the Grinnell Leadership Institute, the Greater Columbia Chamber of Commerce’s Leadership Columbia Program and the South Carolina Bankers School, where he currently serves on the board.

Drew is also involved with the United Way of the Midlands, American Red Cross, Greater Columbia Chamber of Commerce, Carolina Walk Park Homeowners Association, where he serves on the advisory board, and the Spring Valley Rotary Club, where he has held many positions, including president, vice president, social chair and treasurer.

In addition to his role with the bank, Drew is an active member of the South Carolina Bankers Association, serving on the State Legislative Committee and Bankers School Board and participating in the activities of the Young Bankers Division. Drew’s commitment to service also extends to his involvement in the community. He currently sits on the board for several foundations, including Palmetto Health Baptist Hospital, where he serves on the board of trustees; the Palmetto Health Foundation, where he serves as treasurer and finance/audit committee chair; and the South Carolina Law Enforcement Foundation. Drew’s previous community involvement

Banking is not only a career for Drew, but part of a family tradition. Drew’s father, William L. Painter, was a banker for almost 40 years, during which he served as the President and CEO of First Federal of Spartanburg and on BB&T’s South Carolina Board of Directors, following the sale of First Federal to BB&T. Drew and his wife, Kelly, live in Columbia with their two daughters, Anna Grace and Emma.



SCBA Annual Convention

1 1 8TH



Outstanding Young Banker AWARD

1970 *James R. Fowler Capital Bank & Trust, Belton 1971 Robert V. Royall The C&S National Bank of SC, Columbia 1972 *Hugh M. Chapman The C&S National Bank of SC, Columbia 1973 *Arthur M. Bjontegard, Jr. South Carolina National Bank, Columbia 1974 John G.P. Boatwright Bankers Trust of South Carolina, Columbia 1975 L.Leon Patterson The Palmetto Bank, Laurens 1976 Paul F. Holcomb, Jr. South Carolina National Bank, Columbia 1977 W. Douglas King First National Bank of SC, Columbia 1978 *Henry S. Laffitte Carolina Commercial Bank, Allendale 1979 Claude E. Surface, Jr. The Bank of Beaufort, Beaufort 1980 Lloyd I. Hendricks Southern Bank & Trust Company, Columbia 1981 Mason Y. Garrett Carolina National Bank, Easley 1982 J.Harold Chandler The C&S National Bank of SC, Columbia 1983 Joel A. Smith III Bankers Trust of South Carolina, Columbia 1984 Douglas T. Yeates Republic National Bank, Columbia 1985 Stephen L. Chryst The Anchor Bank, Myrtle Beach 1986 R.Charles Eldridge, Jr. South Carolina National Bank, Columbia 1987 G.Anderson Douglas, Jr. Rock Hill National Bank, Rock Hill 1988 Mack I. Whittle, Jr. Carolina First Bank, Greenville 1989 Nancy L. Grden The C&S National Bank of SC, Columbia 1990 William C. Barker South Carolina National Bank, Columbia 1991 John S. Poole NCNB National Bank of SC, Spartanburg 1992 W. Jennings Duncan The Conway National Bank, Conway 1993 Richard A. Shirley Southern National Bank of SC, Anderson 1994 Fred L. Green III The National Bank of SC, Columbia 22


1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018


*Sterling J.U. Laffitte The Exchange Bank, Estill R. Thornwell Dunlap III The County Bank, Greenwood Michael C. Crapps First Community Bank, Lexington James A. Bennett First Citizens Bank, Columbia F. Justin Strickland Carolina First Bank, Columbia Robert R. Hill, Jr. First National Bank, Orangeburg L. Andrew Westbrook III BB&T of South Carolina, Spartanburg Peter M. Bristow First Citizens Bank, Columbia J. Barry Ham The Bank of Clarendon, Manning W. Gerald Stevens CapitalBank, Greenwood Samuel L. Erwin Community Bancshares, Inc., Orangeburg Edward McKelvey, Jr. First Federal, Charleston Kitty B. Payne First National Bank of the South, Spartanburg Michael E. Edens The National Bank of S.C., Columbia R. Scott Plyler South Atlantic Bank, Myrtle Beach Gray L. Henderson Palmetto State Bank, Hampton Tyler B. Hudson NBSC, Columbia J. Holt Chetwood Wells Fargo, Columbia Glenn D. Buddin, Jr. Blue Ridge Bank, Walhalla Kevin W. Lindler First Citizens, Columbia R. Montague Laffitte III South State Bank, Columbia Jennifer T. Jones Citizens Building & Loan, Greer John C. Griggs III NBSC, a division of Synovus, Columbia Joseph Andrew Painter First Community Bank, Columbia *Deceased

50 35

Half-Century Club

T H E S C B A C O N G R AT U L AT E S T H O S E W H O H AV E S E RV E D 5 0 Y E A R S Donella Hardee Mortgage Loan Officer CresCom Bank, Myrtle Beach, SC

Gloria C. Langdale SVP/Senior Branch Manager South State Bank, Walterboro, SC

Connie M. Rhome FC Client Service Rep II Bank of America, Greenville, SC

Thirty-Five Year Club

T H E S C B A C O N G R AT U L AT E S T H O S E W H O H AV E S E RV E D 3 5 Y E A R S Janice C. Addington, SVP/Human Resources & Marketing Carolina Alliance Bank, Spartanburg, SC Kimberly Wood Assemany, Trust Admin Officer II Bank of America, Columbia, SC Martha Autry, FSR III South State Bank, Cleveland, GA Sheila Barret, Loan Assistant South State Bank, Cornelia, GA Vicky S. Bartleson, VP/Loan Insurance Escrow Manager South State Bank, Charleston, SC Lisa G. Benke, Teller III South State Bank, Charleston, SC Donna Blackwell, Commercial Banking Assistant GrandSouth Bank, Greenville, SC Manistone L. Brown, Financial Center Operations Manager Bank of America, Goose Creek, SC Maureen O. Bruening, Operations Farmers & Merchants Bank of SC, Holly Hill, SC John B. Buice, Jr., EVP/Relationship Manager Carolina Alliance Bank, Anderson, SC Richard N. Burch, EVP/Chief Financial Officer South Atlantic Bank, Myrtle Beach, SC Lynette M. Byrd, SVP/ Ins./Reg. Relations Officer South State Bank, Columbia, SC Laura Capps, Assistant Branch Manager South State Bank, Florence, SC Irene Y. Carter, HR Assistant Bank of Clarendon, Manning, SC Sharon Christiansen, Customer Care Center Specialist I First Citizens Bank, Columbia, SC Rosemary K. Cochran Sr. FSR South State Bank, Charleston, SC Laura A. Coleman, FC Client Service Rep II Bank of America, Columbia, SC Lisa Connell, Senior Investigator First Citizens Bank, Columbia, SC Carolyn Cooper, Sales & Service Representative First Citizens Bank, Florence, SC Nancy S. Cox, Teller III South State Bank, Santee, SC Sharon Cribb, Branch Officer Coordinator Anderson Brothers Bank, Hemingway, SC Debbie Dorriety, Relationship Manager Bank of America, Greenville, SC Sharon Dosser, Commercial Banking Assistant GrandSouth Bank, Greenville, SC Clarence Alexander Elmore, Jr., EVP/Chief Credit Officer South Atlantic Bank, Myrtle Beach, SC

Edward H. Fetner, Senior Consultant Bank of America, Charleston, SC Catherine Gardner, Operations Services Lead First Citizens Bank, Kershaw, SC John S. Goettee, Sr. Exec VP/Southern Group President South State Bank, Charleston, SC Annette S. Griffin, Senior Teller Synovus, Manning, SC Mary Beth Hale, Document Administrator III Bank of America, Cayce, SC William Harley, Market Executive First Citizens Bank, Clemson, SC Lori Harrison, AVP/Assistant Branch Manager South State Bank, Moncks Corner, SC Fleetwood S. Hassell, President and CEO The Bank of South Carolina, Charleston, SC Linda F. Hay, Reg. Senior Client Associate Bank of America, Hilton Head Island, SC William J. Heustess, Jr., Chief Credit Officer, EVP The Citizens Bank, Olanta, SC Tina R. Hobgood, Lead Relationship Banker Synovus, Charleston, SC Bobby Hoffman, Commercial Lender GrandSouth Bank, Greenville, SC Donna Hughes, Lending Assistant GrandSouth Bank, Greer, SC Lynn S. Jeffcoat, Vice President Home Federal Savings and Loan, Bamberg, SC Wilma Moody Jordan, Customer Service Representative First Community Bank, Columbia, SC Donna Lawrence, VP/Bankruptcy Dept. Manager South State Bank, Cornelia, GA Janice Lewis, Teller Anderson Brothers Bank, Hemingway, SC David C. Mann, SVP/Credit Risk Officer South Atlantic Bank, Myrtle Beach, SC Thomas Manning, AVP, Sr. Credit Underwriter CresCom Bank, Charleston SC J. Barry Mason, EVP/Relationship Manager Carolina Alliance Bank, Spartanburg, SC Donna Wingo McMakin, Loan Specialist, Asst. Secretary CBL State Savings Bank, Greer, SC Regina D. Moore, Testing Specialist Bank of America, Anderson, SC Sheila Parson, Loan Assistant South State Bank, Clarksville, GA Kenneth M. Pickens, EVP/Regional Executive South Atlantic Bank, Mt. Pleasant, SC S U M M E R 2 0 1 8 • PALMETTO BANKER


SCBA Annual Convention


Thirty-Five Year Club


Robert M. Schlau, Senior Consultant Bank of America, Charleston, SC Gail A. Seagrove, Recon Specialist II South State Bank, Charleston, SC Connie Southerlin, Loan Assistant South State Bank, Easley, SC Virginia Allyson Tedder, Administrative Assistant First Citizens Bank, Kingstree Michael J. Thacker, Commercial Credit Officer Bank of America, Columbia, SC Mark M. Tracy, Senior Financial Advisor Bank of America, Charleston, SC

Diana L. Vostatek, Customer Service Representative South Atlantic Bank, Pawley’s Island, SC Jay D. Weir, SVP/Director Enterprise Risk Management South State Bank, Columbia, SC Kathryn Wienges, Loan Assistant South State Bank, Orangeburg, SC Donna B. Woodward, SVP/Retail Operations Officer South State Bank, Charleston, SC Evelyn V. Young-Jenkins, Relationship Banker Bank of America, Columbia, SC

In Memoriam

REMEMBERING THOSE WHO ARE NO LONGER WITH US Shirley Barnhill, Teller Anderson Brothers Bank, Mullins Franklin Myron Berry, Lending Officer First Community Bank, Newberry Lynn Boatwright, Financial Services Representative First Citizens Bank, Hartsville Dr. Henry P. Bozard, Director Bank of Clarendon, Manning Robert W. Braswell, Business Development Consultant The Citizens Bank, Pawleys Island J. Witte Bull, Director Farmers & Merchants Bank of SC, Holly Hill Janice M. Daley, VP/Learning Consultant II South State Bank, Columbia Emmett I. Davis, Jr., Director Emeritus Countybank, Greenwood Leon Barbot de Brux, Senior Vice President The Bank of South Carolina, Charleston Graham Manly Eubank, Chairman/Founding Member CresCom Bank, Charleston Thomas Rhett Evatt, Executive Chairman Oconee Federal Savings & Loan, Seneca Roy Gleason, TD Auto Finance TD Bank, N.A., Greenville Ralph Montague Laffitte, Founding Director Palmetto State Bank, Estill George L. Long, AVP, SBCC Credit Officer TD Bank, N.A., Newberry Donna L. Major, Head Teller CresCom Bank, Conway Jennifer Olin Miller, CSR Enterprise Bank of South Carolina, Ridgeville 24


Pelham Moss, Commercial Appraisal Officer TD Bank, N.A., Columbia James Carlisle Oxner Jr., Chairman and President Arthur State Bank, Columbia Billy L. Painter, President-CEO First Federal Savings and Loan, Spartanburg L. Wayne Pearson, CEO Southcoast Community Bank, Mt. Pleasant Edna Pressley, Commercial CSA TD Bank, N.A., Myrtle Beach Sam Schneider, Contract Employee - Loan Dept. South Carolina Community Bank, Columbia Victoria R. Scott, Receptionist CresCom Bank, Myrtle Beach John M. Settle, Director Emeritus CresCom, Charleston Donald F. Shealy, IRA Representative II TD Bank, N.A., Lexington Kathryn Skeen, Branch Manager CresCom Bank, Conway William Henry Varn, Jr., President-CEO Enterprise Bank of South Carolina, Ehrhardt Lee Ann Wofford, HR Help Desk Specialist South State Bank, Orangeburg

In Memoriam

R A L P H M O N TA G U E “ M O N K ” L A F F I T T E • 1 9 2 5 - 2 0 1 8 Ralph Montague “Monk” Laffitte, beloved banker and former chairman of the South Carolina Bankers Association passed away at his home in Estill, South Carolina on August 3, 2018. Mr. Laffitte served as chairman of the South Carolina Bankers Association in 1971-1972. After graduating from the University of South Carolina in 1949, Mr. Laffitte began an exemplary 69-year career in the banking industry and was still working at the bank until just recently. He was a founding director of the Loan and Exchange Bank, now Palmetto State Bank, and served on the Board of Directors since 1955. He was a past Chairman of The Exchange Bank, the Young Bankers Division of the South Carolina Bankers Association and a Director of NationsBank of South Carolina. Mr. Laffitte contributed greatly to the banking industry, his community and the State while serving on numerous other boards. He was predeceased by Lib his loving wife of 67 years, and his son, Sterling Jinks Usher Laffitte.

Chairman, 1971-1972 South Carolina Bankers Association

Mr. Laffitte will be remembered by those who knew him as a loving husband, father, grandfather, great-grandfather, friend, confidant, and as the quintessential, southern gentleman. He is a legend among South Carolina bankers and he will be missed by all of us.

“Monk was an outstanding banker but an even better family man and role model that we all should try to emulate.” — Charles A. Laffitte, Jr. (Nephew)

Chairman & CEO, Palmetto State Bank, Hampton, SC



the Date



Bankers School



Scott M. Frierson, Chairman South Carolina Bankers School Executive Vice President, Upstate Market Leader, CresCom Bank

July 8-13, students congregated on the campus at Lander University in Greenwood, SC for a week-long, whirlwind of study during the 2018 session. As usual, they found comradery, dynamic professors and comprehensive course offerings. It was an exciting time to see familiar faces, and welcome 67 new students to the program. In total, there were 168 students participating in the School this year, the largest student body on Lander’s campus since 2010. In today’s competitive environment, it is critical for bankers to remain knowledgeable about the banking sector. One of the most comprehensive approaches to ensuring the professional and personal growth of a banking executive is through the completion of the South Carolina Bankers School. One of the School’s greatest assets is its faculty, which is composed of the “best of the best” from the banking, professional and academic worlds. Among the classes taught by these instructors were Economics/Money and Banking, Understanding CAMELS Ratings/ Working with Regulators, Leadership, Why Try to Comply, Bank Investments, and the crown jewel of the School, BankExec. BankExec allows participants to virtually run a mid-sized commercial bank. Third year students were divided into teams to compete against one another. Exercises in asset/liability management, capital planning, gap analysis, accounting and taxes, marketing and resource



allocation, forecasting and planning, economics, and the pricing of bank services, are reinforced by “what-if” scenarios that demonstrate the impact to the balance sheet and income statement of management’s decisions. BankExec provides a bigger picture of the bank by having teams work together to run a virtual bank in a changing economic and regulatory environment; test pricing and funding decisions to see their impact on key indicators like net interest margin and stock price; learn how balance sheet structure influences profitability, including net interest margin and stock price and see how decisions made in one area of the bank affect others. Robert Dozier, Federal Home Loan Bank of Atlanta, was the keynote speaker on Tuesday evening. He spoke to the student body about “Banking with Heart.” After two full days of classes, Dozier’s message was inspiring and uplifting! Thursday evening’s graduation was exceptional. Tangible evidence of the importance of the School was seen by the many CEOs and bank management teams who were in attendance to support and celebrate 42 graduates who received their diplomas. For the first time, two students received the highest cumulative average: Casey Maddox with South State Bank and Alison Van Wagner with South Atlantic Bank were recognized with the Lillie H.

Magalis award. Each will receive a scholarship for the first year to the Graduate School of Banking at LSU. First Year class officers were also announced with Karey Wilson, CresCom Bank and Davis Skipper, The Conway National Bank being chosen as class president and vice president, respectively. The night was also bittersweet as the SCBS Board of Directors honored retiring BankExec Team Leader Dr. Ernie Swift who joined the SCBS faculty in 1987. Dr. Swift has loyally, faithfully and enthusiastically dedicated his time in educating thousands of bankers in this state, and we are grateful for all that he has done to influence the leaders of this great industry. On Friday morning, while the First and Second year students took their exams, Third Year students presented their banks’ Annual Report to shareholders. Several SCBS Board members acted as judges. Congratulations to the winning teams: COMMUNITY A Bank 1 “Best Managed Bank” Kellie K. Chapman, Bank of Clarendon R. Austin Cox, Coastal Carolina National Bank Holly E. Hall, CresCom Bank Brendan C. Farran, First Citizens Bank Corinth O. Ritter, Palmetto State Bank

COMMUNITY B Bank 5 “Tower Bank” Michael Brinson, Federal Reserve Bank of Richmond - Charlotte Brett A. Robinson, Pinnacle Financial Partners Jessica E. Takach, GrandSouth Bank Jaime Terry, TD Bank, N.A.

Even though the schedule and work are demanding, the School provides time for building relationships through socialization outside of the classroom. The networking possibilities and knowledge gained at the SCBS lay the foundation for bankers to continue on to successful careers while cultivating relationships that will last a lifetime. Chairman of the School, Scott Frierson, Executive Vice President, Upstate Market Leader, CresCom Bank, said, “Serving as Chairman of this year’s SC Bankers School allowed me to get very involved throughout the entire process. Spending a week in Greenwood with the students and faculty confirmed to me how beneficial the School is to our banking industry.”



Young Bankers Division


Scholarship On May 22, the Young Bankers Division hosted a celebratory reception at the Palmetto Club in Columbia, SC to honor the recipients of the 2018 Palmetto Scholarship. $63,000 was awarded to sixty college students all of whom were either the children of an employee or a part-time employee of a SCBA member bank. The Division takes great pride in helping students pursue their goals in higher education. Scholarship Committee Chairman Betsy Steifle, Bank of Travelers Rest, extended an invitation to the student, their parent and the CEO or bank representative to attend the reception and celebration. Chairman-Elect of the Division, Chase Talbert, The Bank of South Carolina, assisted with the check presentation. The undergraduates represented twenty-three member institutions. Of special note, the SCBA Board of Directors decided to honor the memory of two members of the South Carolina banking family whose lives were tragically taken during a bank robbery in August of last year. Two $2,500 scholarships were established and named after Katie Skeen and Donna Major of CresCom Bank. Kenneth Turrentine II, Horry Georgetown Technical College received the Katie Skeen Scholarship and Kaitlyn Coleman, North Greenville University received the Donna Major Scholarship. 28

Betsy Steifle said, “Seeing the tremendous expression of pride from the parents and the big smiles from the students validates the importance of the Palmetto Scholarship program. Congratulations to the recipients, their parents and their parent’s bank!” The SCBA understands that many students today often find themselves burdened by significant debt upon graduation. In the US today, there is approximately 1.53 trillion dollars in student debt with 92% of it in federal student loans. In South Carolina alone, there is about $22 billion in outstanding federal loan debt. But, borrowing is not the only resource for paying for college and students may not need to borrow as much as one might think. It is essential that students do their homework and apply for as many scholarships as possible before going the student loan route. Sara Fisher, Business Development Officer with the South Carolina Student Loan Corporation says, “For every scholarship earned or awarded, thousands upon thousands of dollars are saved by the student over a very long period of time. Many schools will allow a student to borrow the cost of tuition, books, and room and board, but often that much is not needed. Never borrow more than is necessary as it can saddle you with a large debt following school.”


Many students expressed their gratitude by writing notes to the scholarship committee. One student said, “Thank you so much for selecting me to be a recipient of the SCBA’s Palmetto Scholarship. This scholarship will help to pay for my senior year allowing me to get one step closer to accomplishing my dream.” Another student wrote, “I look forward to continuing my education and by awarding me this scholarship, you have eased my financial burden which will allow me to continue to focus on my academic goals.” A primary source of the scholarship dollars is raised through the Young Bankers Division Golf Tournament, which will be held on Monday, October 1 at Columbia Country Club. Please visit our website to view more pictures from the event and to view a full listing of the recipients. For more information about the Palmetto Scholarship Program or Golf Tournament, please contact Caroline Snijders, 803-779-0850 or



Young Bankers Division

Register Now


Columbia Country Club Blythewood, SC *Sponsorships Available



2018 Young Bankers Division Scholarship Golf Tournament

S P R I N G 2 0 1 8 • PALMETTO






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


BANK MEMBER The South Carolina Bankers Association welcomes First Bank as our newest bank member. First Bank is a $5.7 billion bank headquartered in Southern Pines, NC. Their South Carolina markets include Florence, Cheraw, Dillon, and Latta.


ASSOCIATE MEMBERS Richard “John” Santorum 154 North Bellefield Avenue Pittsburgh, PA 15213 703.434.9649

Carla Neal 109 Cleveland Avenue Cocoa Beach, FL 32931 321.868.5678

Jonathan Davis VP Business Relations 234 Johnston Street Rock Hill, SC 29730 859.583.4709 32


@RISK delivers “Left of Bang” Cyber Situational Awareness through 24/7 real-time monitoring with our QUORUM™ technology. QUORUM™ will help you plug the holes in your network’s defense before the bad actors have a chance to exploit them. @RISK’s solution provides financial institutions the tools to avoid costly post-event forensics should a breach occur, and augments their current IT staff through significant automation capabilities. While @RISK has a diverse customer mix, we have worked diligently with the banking community to develop a platform tailored specifically for financial institutions. @RISK’s approach offers enterpriselevel security to banks of all sizes. We will show you in real time what we are proactively doing to keep banks safe and compliant.

CCDI is a commercial real estate (CRE) inspection and consulting services firm, providing services since 1994. CCDI provides these services exclusively with our in-house staff. Our principles and managers bring over 100 years of construction experience to your projects. We are 100% woman and minority owned.

Carolina Capital Management, LLC is a private lending firm based out of Rock Hill, South Carolina that specializes in short term purchase money loans backed by fix and flip, rental, commercial, new construction and development projects in the Carolina’s and the South East Region. The Principals of Carolina Capital Management, LLC, Wendy Sweet and Bill Fairman, have over 40 years combined experience in the conventional lending, private lending and real estate investing arenas and have been lending in the Carolina’s since 2001.

Mr. Robert “Rob” Fecio Sr. Client Account Executive 5900 Northwoods Parkway Columbia, SC 28269 704.599.3100 robert.fecio@dieboldnixdorf

Diebold Nixdorf is a world leader in enabling connected commerce for millions of consumers each day across the financial and retail industries. Its software-defined solutions bridge the physical and digital worlds of cash and consumer transactions conveniently, securely and efficiently. An innovation partner for nearly all of the world’s top 100 financial institutions and a majority of the top 25 global retailers, Diebold Nixdorf delivers unparalleled services and technology that are essential to evolve in an ‘always on’ and changing consumer landscape. Diebold Nixdorf has a presence in more than 130 countries with approximately 24,000 employees worldwide.

Donna Gibson Regional Director 121 Woodfern Place Mooresville, NC 28115 704.437.0100

For the past 38 years JMFA has been considered one of the most trusted names in the industry helping banks improve their performance and profitability. Whether it’s recovering lost revenue, uncovering savings opportunities, serving your customers better, finding the perfect personnel fit or delivering a 100% compliant overdraft program, JMFA has the right solutions to help you not only meet, but exceed, your goals. JMFA is proud to be a preferred provider among many industry groups. To learn more please visit or call (800) 809-2307.

Marc Smith President 187 W. Broad Street Spartanburg, SC 29306 864.699.8178

Magnolia Financial is a well-capitalized relationship lender focused on helping companies that currently don’t qualify for traditional bank financing. Our Accounts Receivable Financing and Asset-Based Lending solutions provide companies with the working capital they need to support growth or execute a turnaround plan so they can ultimately “graduate” back to a traditional bank line of credit. Our credit facilities are secured by Accounts Receivable, Inventory and select Purchase Orders. We work with manufaturers, distributors, service companies or basically any company selling to another company on terms. We do not have any monthly minimums, unused line fees nor any prepayment penalties. All of our agreements are month-to-month; therefore our clients are able to return to their local bank once they are bankable.

William J. “Bill” Bossong CEO 1201 Main Street, Suite 1110 Columbia, SC 29201 803.255.1497

Valuant empowers management teams with the analytical tools and services needed to maximize profitability in the complex world of financial modeling.

NOTIFICATION OF NON-RENEWING ASSOCIATE MEMBERS The SCBA reports the following companies did not renew their membership and ask that you please update your listings to reflect these changes: CodeFi Solutions, Commerce Street Capital, LLC, Keefe, Bruyette & Woods, a Stifel Company, Merchant e-Solutions, Inc., Transfund We thank these companies for their past support and would welcome each of them to rejoin.

With all of the evolving financial industry changes, we are thankful for business alliances that meet our members’ needs. The SCBA is dedicated to supporting and promoting cutting-edge industry providers to our member banks. For more information about Associate Membership, please contact SCBA Senior Vice President Carolyn Laffitte Bradley by email at To view our Associate Membership Directory, click here. S U M M E R 2 0 1 8 • PALMETTO BANKER




Heather Brown

Jessica Buttles

James Terry III

Tammy Coleman

Chris Fowler

David Dupont

Brian Rogers

Bradley Moore

Bryan Newton

Barry Hamm

Andy Richard

Dustin Green

Wayne Wicker




Heather Brown has joined the bank as a Loan Assistant/Consumer Loan Officer. She will be based in the bank’s Mullins office.

Barry Hamm, president of Bank of Clarendon has been appointed a member of the South Carolina Board of Financial Institutions. He will serve a four-year term which began June 30th.

Dustin Green has joined it Greenville office as Senior Vice President, Relationship Manager.

Jessica Buttles has joined the bank as VP Commercial Loan Officer in the Oleander office. Tammy Coleman has joined the bank as a Consumer Loan Officer. She will be based in the bank’s Marion office. David Dupont has joined as Mortgage Loan Offficer in the Market Common office. Bradley Moore has joined as Loan Officer in the Conway Church Street office.

ARTHUR STATE BANK J. Carlisle Oxner, III, has been promoted to Chairman of the Board and President.

BANK OF GREELEYVILLE Samuel Williamson has been promoted to president. Tracy Kellahan has been promoted to executive vice president. Diane Nexsen has been promoted to senior vice president.

On June 1, 2018, the following received graduation diplomas from the Graduate School of Banking at Louisiana State University: Megan Beasley Gioldasis, Carolina Bank & Trust, Florence Ryan J. Benton, CresCom Bank, Charleston

Ashley Bell has been named vice president and chief credit administration officer.

Renee E. Dzek, SC Board of Financial Institutions, Columbia


Jeremy L. Hyman, The Conway National Bank, Conway

Elliott Goldsmith has been elected to the Board of Directors.

David H. Strafford, Oconee Federal Savings & Loan, Seneca

Daniel O. Cook, Jr. has been promoted to Chief Executive Officer and CFO. 34



Charles R. Vernon, Jr., ArborOne Farm Credit, Florence

SCBA Webinars… another source for your training needs!

The SCBA has partnered with Total Training Solutions to provide webinars to your financial institution on topics most important to the success and compliance of your bank. Whatever your online training needs may be, SCBA/TTS can assist you. We have webinars ranging from customer service to sales to underwriting—and everything in between. We can’t wait to show you how we can make your job easier!

PINNACLE FINANCIAL PARTNERS James Terry III has joined Pinnacle Financial Partners subsidiary HPB Insurance Group as an insurance advisor for the Greenville area. Chris Fowler and Brian Rogers have joined Pinnacle Financial Partners as financial advisors in the firm’s E. McBee Avenue office.

SOUTH ATLANTIC BANK Bryan Newton and Andy Richard have joined the Bluffton office of South Atlantic Bank. Wayne Wicker, chairman and CEO of South Atlantic Bank has been appointed a member of the South Carolina Board of Financial Institutions. He will serve a four-year term which began June 30th.

SOUTH STATE BANK Greg A. Lapointe has been named president of South State Bank and will relocate to Charlotte, NC.

John S. Goettee has been named president of South Carolina and Georgia. Renee R. Brooks has been named chief operating officer. Jonathan S. Kivett has been named chief credit officer. John E. Windley of South State Bank has been appointed to the South Carolina State Board of Financial Institutions. He will serve a four-year term which began June 30th.

SPRATT SAVINGS AND LOAN Glenn Anderson has retired as CEO of Spratt Savings and Loan as of May 31, 2018. Jim Bennett will succeed him as CEO. Renea W. King was recently promoted to Vice President. She is the Loan Operations Supervisor and has been with the bank for almost three years.

Visit to learn more about the SCBA/TTS webinars and to see the schedule for a myriad of topics. There are over 63 webinars to choose from.

Here is a sampling of upcoming webinars: OCTOBER 4

Lie Detection for HR Managers

Writing High-Impact Executive Summaries

Legal Liabilities when Check Fraud Occurs

Understanding Real Estate Loan Documents




Commercial & Business Lending Basics for Support Personnel


Employment Records and How to Keep Them

Visit for new webinars added daily.



Save the Date

March 8-10, 2019 2019 Young Bankers Division Annual Conference The Omni Grove Park Inn Asheville, NC

$450 banker/associate • $275 spouse/guest Room rates starting at $189++



Banking News

ANDERSON BROTHERS BANK Anderson Brothers Bank celebrated the grand opening of their newest branch, located in the Dillon Community of Dillon County at 1006 Hwy 301 N on Thursday, June 14th. The office will be led by Jackie McKenzie, Office Manager, and Glenn Greene III. The Grand Opening was a huge success with an estimated turnout of over 500 attending. This will be Anderson Brothers Bank’s 23rd branch and its 2nd location in Dillon County.

CLOVER COMMUNITY BANCSHARES Carolina Trust BancShares Inc. will acquire Clover Community Bankshares Inc. and unit Clover Community Bank. The deal is expected to close in the fourth quarter of this year. COUNTYBANK Countybank announced it is acquiring B.A. Bennett Insurance. Terms of the transaction were not disclosed. The deal for the Greer, SC-based insurance broker will take effect on September 4. B.A. Bennett offers auto, home, business and life insurance. FIRST CITIZENS BANK First-Citizens Bank & Trust Company (known as First Citizens Bank) and Palmetto Heritage Bancshares, Inc. (“Palmetto Heritage Bancshares”) announced the signing of a definitive merger agreement. Palmetto Heritage Bancshares provides personal and business banking products and services in South Carolina coastal markets through its subsidiary, Palmetto Heritage Bank & Trust.

CBL STATE SAVINGS BANK CBL Charitable Foundation has awarded $10,000 higher education scholarships to three local students: Kylie Brooke Howard and Carson A. Radlien were both winners of the 2018 Robert F. Williams Scholarship and Hayden Bryson Lines was awarded the 2018 Citizens Building and Loan SSB Scholarship.

CBL State Savings Bank will locate a loan office in Landrum, SC to open on October 1, 2018. The office will be located at 920 East Rutherford Street. Initially, only the bank’s loan products will be available. Other products will be offered at a later date. Angel Forrester will be the offices’ main customer contact.

SYNOVUS NBSC began transitioning to the Synovus brand throughout South Carolina on June 1, 2018. NBSC is the last of 26 non-Synovus branded bank divisions to complete the five-state brand transition, which began in January of this year. SYNOVUS has pledged $250,000 to the International African American Museum which is slated to break ground later this year and open in late 2020. SOUTH CAROLINA COMMUNITY BANK South Carolina Community Bank will change its name to Optus Bank. THE BANK OF SOUTH CAROLINA On May 29, 2018, The Bank of South Carolina broke ground on its 5th location to be located in North Charleston at the intersection of Hwy 78 and Ingleside Drive. The grand opening is planned for some time next year.

CITIZENS BANCSHARES CORPORATION Citizens Bancshares Corporation, the holding company of The Citizens Bank, and Regional Bankshares, Inc., the holding company of Heritage Community Bank, jointly announced today the signing of a definitive merger agreement, under which Citizens has agreed to acquire Regional in a cash and stock transaction with a total current value of approximately $11.3 million, based on an assumed Citizens’ stock value of approximately $30.00 per share as of May 17, 2018. S U M M E R 2 0 1 8 • PALMETTO BANKER


E ducation and P rofessional D evelopment


South Carolina Bankers Association



18 Bank Security Risk

8 Legislative Reception


Inn @ USC Wyndham Garden Columbia, SC

20 CFO Conference

Marriott Downtown Main & Hampton Sts. Columbia, SC

Columbia Museum of Art Columbia, SC

15-16 Commercial Lending School Courtyard by Marriott 630 Assembly St. Columbia, SC

29-30 SCBA Women in Banking Leadership Symposium Hilton Columbia Center Columbia, SC

OCTOBER 2018 1 Young Bankers Division

Annual Scholarship Golf Tournament


Columbia Country Club Blythewood, SC

5 Safety and Soundness Workshop

2-3 Consumer Lending School

Inn @ USC Wyndham Garden Columbia, SC

Courtyard by Marriott 630 Assembly St. Columbia, SC

14 Human Resources Conference

25 2018 Fall Compliance

Inn @ USC Wyndham Garden Columbia, SC


Marriott Downtown Main & Hampton Sts. Columbia, SC

12-13 BSA/AML Workshop

NOVEMBER 2018 TBA Community Bankers Forum Columbia, SC

Courtyard by Marriott 630 Assembly St. Columbia, SC

8-10 Young Bankers

Division Annual Conference Omni Grove Park Inn Asheville, NC

TBA Bank Operations Conference and Trade Show Columbia, SC

19 Spring Compliance Conference

Marriott Downtown Main & Hampton Sts. Columbia, SC

APRIL 2019 TBA Trust and Wealth

Management Conference and Trade Show Columbia, SC

MAY 2019 TBA Asset Liability

Management Conference Columbia, SC

13 Banking Careers 101 Seawells Columbia, SC

JUNE 2019 9-12 SCBA Annual

DECEMBER 2018 4 Credit Conference

Inn @ USC Wyndham Garden Columbia, SC

MARCH 2019 5 Directors and Managers


The Sanctuary Kiawah Island, SC


Inn @ USC Wyndham Garden Columbia, SC

JULY 2019 7-12 SC Bankers School

Please visit to see complete training and webinar schedules. 38


Lander University Greenwood, SC

2009 Park Street • PO Box 1483 Columbia, SC 29202-1483

Congratulations to the

Bankers School class of 2018!