Palmetto Banker Summer 2012 by SCBA

The South Carolina Bankers Association

Summer Issue 2012-2

Palmetto Banker

Lloyd I. Hendricksâ&#x20AC;&#x2122; Retirement

Managing Payments, Driving Solutions

We’re Vantiv. Dedicated, strategic professionals with 40 years of experience developing innovative payment processing solutions for ﬁnancial institutions and merchants. We offer an extensive suite of debit, credit, prepaid, ATM and merchant services to provide you with new sources of revenue. And we’ll help protect your business with our comprehensive data security and fraud prevention solutions. Our people, technology and partnerships are the Vantiv difference. Let’s discuss your future success.

Let’s Talk Payment Processing 866.622.2201 www.vantiv.com/scba

Scan here or visit: www.vantiv.com/scba

2009 Park Street, PO Box 1483 Columbia, SC 29202-1483 Phone: 803/779-0850 Fax: 803/779-0890 Fax: 803/256-8150 www.scbankers.org Chairman Sharon W. Bryant First Citizens Chairman-Elect F. Richard “Rick” Redden, III Wells Fargo First Vice Chairman R. Arthur “Art” Seaver Jr. Southern First Bank, N.A. Treasurer David M. Lominack TD Bank Immediate Past Chairman Teresa W. Knight The Palmetto Bank SCBA Staff

Contents Lloyd Hendricks Retires page 6

Not all Criminals are Dumb Criminals page 23

President & CEO

Lloyd I. Hendricks Executive Vice President/General Manager/ BankPAC Treasurer

Washington Trip 2012

Linda W. Parker

page 14

Executive Vice President, Financial Planning

Donna S. Taylor Executive Vice President, Employee Benefit Trust/ SC Bankers School

Teresa D. Taylor

Legislative Profile

Senior Vice President, Member Services, Conventions/ Conferences

Cover Article - Farewell Friend: Lloyd Hendricks Retires

E. Anne Gillespie Senior Vice President, Government Relations, Economic Development and Counsel

A. O’Neil Rashley, Jr. Vice President, Communications Director/Editor, Palmetto Banker

Penny D. Cothran Vice President, SCBA Services, Inc.

Carolyn E. Laffitte Director, Government Relations

Amber Setzler Barnes Director, Community Bankers Council M. Caroline Sheorn Administrative Assistant, Director of Social Media

Marilynn E. Joyner The PALMETTO BANKER is a publication distributed by the South Carolina Bankers Association. We welcome your comments and suggestions concerning the magazine. The magazine exists to serve its members by communicating news of interest, education and SCBA activities. Items and articles from members are welcomed; however, the editor reserves the right to refuse copy considered unsuitable for publication or not appropriate to our purpose. With the exception of official announcements, the South Carolina Bankers Association disclaims responsibility for opinions expressed and statements made in articles published in PALMETTO BANKER. Designed and published by CC Publish, Inc. (704) 545-7399 © 2012

Feature - Top Five Reasons You Should Offer Small Business Online Bill Pay – and Do it Now

Feature - Washington Trip

Feature - Accusations of the Unauthorized Practice of Law: A Banker’s Primer in Prevention

Young Bankers Conference

Young Bankers - Banking Careers 101

Feature - Not All Criminals are Dumb Criminals

Welcome, New Associate Members

Preferred Vendors Highlight

Community Bankers

Compliance Corner

Bank News

People On The Move

Good Deeds

Calendar of Events

3 Palmetto Banker

Legislative Profile

Larry A. Martin State Senator (R) Pickens County Chairman, Senate Judiciary Committee

tate Senator Larry Martin, Republican of Pickens County, has served in the South Carolina Senate since his election in November of 1992. Prior to his election to the Senate, Martin served in the South Carolina House of Representatives from 1978 until 1992. He was the youngest member of the South Carolina House for six years and was seated on the House floor with Speaker Emeritus Solomon Blatt of Barnwell County until his death in 1986. The Senator from Pickens County is a member of the following Senate Committees: Judiciary; Banking and Insurance; Education; General; and the Rules Committee. Martin served as Chairman of the Senate Rules Committee from January, 2001 until March, 2012. He became Chairman of the Senate Judiciary Committee in March, 2012. He was actively involved in the reorganization of the South Carolina Senate for the session that began in January 2001. Martin also served as one of the three senators on the House-Senate Conference Committee that crafted the final legislation to enact a state-run lottery. He has been a leader in the legislative efforts in recent years to produce private property rights legislation, pro-business legislation, private guardian ad litem reform, tougher DUI laws, and immigration reform legislation. As Chairman of the Senate Rules Committee, Martin was instrumental in the successful reform of the Senate Rules during the 2005 legislative session, and in the 2011 session. In 2011, the Senate Rules were amended to provide for greater transparency by requiring roll call votes on more matters. Senator Martin has received the following honors: Guardian of Small Business award in 2000 by the National Federation of Independent Businesses; the prestigious Public Servant of the Year award in 2002 from the S. C. Chamber of Commerce; Guardian of Home Rule award in 2003 from the S. C. Association of Counties; Patrick B. Harris Humanitarian Award for Public Service in 2003 from the Anderson-Oconee-Pickens Area Mental Health organization; 2004 Legislator of the Year award from the National Federation of the Blind of S. C.; 2005 Senator of the Year award by the S.C. Human Service Providers Association; 2005 Legislator of the Year award by the S. C. Career & Technology Administrators Association; Mental Illness Champion award in 2006 from the National Alliance on Mental Illness; Legislative Advocacy award from the Greenville Hospital System Children’s Hospital Development Council in 2006; 2006 Conservation Champion by the Conservation Voters of South Carolina; 2006 Legislator of the Year by the South Carolina Commission for the Blind; Defender of Manufacturing award from the S. C. Manufacturers Alliance in 2007; 2007 Senate Member of the Year from the South Carolina Fraternal Order of Police; 2007 Legislator of the Year from the South Carolina Apartment Association; Conservation Partner, Rocky Mountain Elk Foundation, 2007; 2008 Hammer and 4 Palmetto Banker

“I have been fortunate to have maintained an excellent relationship with our state’s banking community since the early days of my service in the Legislature. My very first subcommittee assignment was on the Banking and Consumer Affairs subcommittee. It provided me with a great opportunity to get to know the leaders of South Carolina’s banking community and to learn about some of the challenges facing the industry,” says Martin. “It is my sense that the banking industry in South Carolina is undergoing some significant changes in the aftermath of much tighter federal banking regulations. What will not change is the desire of our state’s banking community to provide strong customer service and to help to grow our state’s economy.” Trowel Award from the Home Builders Association of South Carolina; Palmetto Family Council 2008 Legislator of the Year; Recognized by the S. C. Baptist Convention for exceptional service and leadership in family and marriage matters in the General Assembly, November, 2008; Legislator of the Year, S.C. Realtors, 2009; and S. C. Education Association Friend of Education, 2011. The son of Edgar and Lois Martin of Dacusville, the Senator married the former Susan Evatt of Pendleton, South Carolina on June 25, 1983. The Martins reside in Pickens. Susan teaches at Pickens Middle School. They have three children: Caroline Swiger is a PhD candidate at Clemson University and lives in Georgia with her husband; Anthony is a Clemson graduate and he and his wife reside and work in Alabama; and Anna Leigh is a freshman student at Clemson. Senator Martin and his family are active members of the First Baptist Church in Pickens where he serves as church moderator and teaches Sunday school. He has been associated with Alice Manufacturing Company, Inc., in Easley for thirty years as Director of Safety.

Cover Article

Si Monumentum Requiris, Circumspice Farewell Friend: Lloyd Hendricks Retires After a Long Career Touching Many Lives Prologue

Gov. Dick Riley

On June 12, 2012, the South Carolina Bankers Association honored its retiring CEO with a gala celebration during the 112th Annual Convention held at The Cloister on Sea Island, GA. To recognize his achievements, SCBA Chairman Sharon Bryant commissioned a video featuring interviews from some of Hendricks’ closest compatriots. Here are some of their selected tales about Lloyd as told to Columbia documentarian Will Salley. (A shorter version of these interviews made the cut and were shown at the gala in the video spanning Lloyd’s many years (and many lives) in business and politics.) Please join us in congratulating Lloyd I. Hendricks on his 25 years of service to the South Carolina Bankers Association (SCBA).

SC Governor (1979-1987) and US Secretary of Education (1993-2001)

6 Palmetto Banker

Well first of all I’m so honored to be here and honor my great friend, Lloyd Hendricks. Lloyd served in the house “co-chairmanously” with me; I was eight years in the governor’s office and his ten years included all eight of those years. He was a tremendous [friend], not only [a] personal friend of mine, but he and Sue and Tucky and I were great friends and spent time in the governor’s mansion. I knew him before I was governor, and I certainly knew him very well afterward. He helped me on so many things that were important to me. Thinking in terms of banking, one of the most important banking measures that came out during that whole era was to enable banks to merge across state lines. SC was short of capital and we couldn’t attract major industry into the state often times because we couldn’t provide loans significant enough to bring them in. The idea then of six Southeastern states coming together forming this compact - I appointed Lloyd to serve on the study commission and to represent me in that group and they came together and that was a tremendous help. SC was then able to loan significant amounts of money, more than before and it really helped us so much with economic development. But it wasn’t only economic development that Lloyd was interested in on the Ways & Means committee; he was so helpful in tax reform, all the fiscal measures; [and] tremendous help to me in the education improvement act. He was right down the line supporting quality education, all the time. All of the different things dealing with government itself, dealing with efficiency, he was always there. I could always depend on him. The reason he was so effective was not because he was a “power” person, but because he was so well respected. All the different factions in the house and the senate, and outside respected Lloyd Hendricks so much that he was tremendously effective and he was tremendously effective to me as governor. Sue and Lloyd and Tucky and I were friends. Sue was very active herself; she was involved heavily with me in the State Museum. We acquired the property from Mt. Vernon Mills and had negotiated the property. Finally they gave it to us. She and Nat Vandiver, a good banking name, then developed private funds to help us renovate the State Museum. I’m so proud of that. Sue Hendricks was very much involved to make that possible. One of the things that Lloyd is certainly well remembered for and had a high profile [for] was the blue laws. The blue laws in SC were out of date. It was a law that was really started in the 17th century. It was time for us to look at commerce, as it would be developed. Lloyd was the person then who [was] the real leader in reform of the state’s blue laws and that also meant a lot to our economic development. Lloyd Hendricks and I have been great friends for a number of years. Really he was a fraternity brother with my wife’s brother, Ed Yarborough. Ed introduced me to Lloyd many years ago and I observed Lloyd with his fellow legislators and other business people in SC. Always, he was respected in the top level of integrity. People listened to him because of that respect they had for him. I never knew him to do or say anything that was in any way not helpful to the state of SC and that’s the truth. Lloyd was recognized as Legislator of

7 Palmetto Banker

Cover Article the Year in 1984. Then in 1985, he was SC Legislator of the Year by the Greenville News. So I was not the only person who had high respect for him. He was respected throughout the state. I appointed him on the commission to represent me and he did it and did it well.

I.S. Leevy Johnson Attorney with Johnson, Toal & Battiste, P.A. since 1976 I first met Lloyd in law school. We started in the class of 1965 and graduated in 1968 and he was a distinguished student while in law school. While in law school he was working at First National Bank and each year FSN would have a reception for the lawyers. The trust dept would sponsor this reception and it was one of the highlights of our law school career. We had a close-knit class and a distinguished class. Our current chief justice of the SC Supreme Court, Jean Toal, was our classmate. Also, associate justice, Costas Piquonas, was our classmate. Former chair of the house, Bob Sheheen was our classmate. So many of our classmates have served as circuit judges. We had one classmate to serve as a congressman and of course Lloyd himself served in the SC House of Representatives. I got elected in 1969 and began service in 1970. I was one of the first three African-Americans since the turn of the century to be elected to the House of Representatives. Jim Felder and I got elected from Richland County and Herb Fielding got elected from Charleston County. Obviously it was a historical occasion and during the campaign, Lloyd was very helpful and instrumental in my getting elected. I reciprocated when he decided that he was going to seek office. Back in those days, one of the keys, unlike today, was to go out in the community. We did some radio and TV but the most effective way to get elected was to attend stump meetings. The African American community was to visit churches. Lloyd did not have any familiarity with the African American churches so I had to teach him the rhythm so when he would go to the church he would have the right beat. Seriously, we would go around and I would introduce him and the important thing was that he had a confidence level although we were from different races. Lloyd had a confidence level among African Americans, among whites, among Jews and this was a strong asset that enabled him to get elected. And I had a confidence level because my credibility was at stake in telling people that Lloyd Hendricks was the real McCoy; that he was a person that was not only interested in diversity but also interested in inclusion and there is a big difference. Lloyd and I were desk mates so not only did we have participation on a public level but we also had participation on a private level. When you sit next to someone 3 days a weeks, you learn a lot about them. My recollection of Lloyd was he had many outstanding characteristics but the one thing that distinguished him from a lot of the other legislators was his credibility. You’ve heard the ad, “when EF Hutton speaks everyone listens”; that was Lloyd Hendricks because when he spoke, people had confidence, one, that he knew what he was talking about, [and two] that he was speaking from a point of integrity and honesty. And so those were characteristics that distinguished him.

Leon Patterson Former Chairman of South Carolina Bankers Association I think it was Bob Royall who identified Lloyd as an excellent candidate for the new SCBA executive at that time. We all knew who Lloyd was and knew of his fine reputation in banking and in the Statehouse. We were coming off of Bob Royall’s year as president, (we were called presidents back in those days), and I was the incoming 8 Palmetto Banker

president. Our current executive, Bob Hodges, was leaving and Bob Royall identified Lloyd as someone we should be in touch with. And I remember very well Bob and I meeting with Lloyd in Bob’s office and talking to him about the position and we already knew Lloyd Hendricks, but it was after that meeting and immediately [following] Bob and I agreed that this is our man IF we can get him. Bob made the comment, “Leon, my year is ending. Yours is starting so you have got to be sure that this is someone that you want to work with.” I said, “I can’t think of a better person than Lloyd Hendricks to work with as the SCBA executive.” Twenty-five years later, I still have the same opinion. Lloyd has always been an outstanding administrator and he could find that great balance between his work in the Statehouse; and the rest of the association and the Statehouse. And lobbying and government affairs is just one part of that role as the chief exec of the SCBA. I think the way he was able to handle those duties and responsibilities just shows what a fine manager and leader that Lloyd Hendricks is. He was highly respected in the Statehouse from [representing] Columbia and [from] being a House member and having received the award for being the House member of the year several times and then over on the banking side, highly respected by all of us bankers. At the time he came with us, I believe he was with First Union Bank and we were just so fortunate that he had experience in those dual roles as a banker and in the Statehouse also. His strengths have always been [as] a strong leader and a great manager. When I think back on his many successes, there are some that do stick out and I would have to mention that putting together the two major financial institution organizations in the state was one of his hallmarks. He oversaw that and presided over the integration of SCBA and the SC League of Savings Institutions. The fact that today we are one solid organization attests to the fact that he oversaw that integration extremely well. The result is that today we do have one organization of financial institutions except the credit unions. We haven’t yet found a way to make peace with those guys yet. That certainly was one of the hallmarks of Lloyd’s time at the SCBA was the merger of the two associations into one SCBA. That became a win/win for everyone and that was not an easy task either. It was something that was in the works for many years even at the national level. Many of the states were moving in that direction. Eventually at the national level, it came about also just in the last several years so that the National League of Savings Associations and the American Bankers Association have combined into one organization. Other things that I will always remember that stand out in working with Lloyd have been our working through the American Bankers Association at the national level on behalf of the banking industry and on behalf of SC. I think, for me, those are some of the finest times that I will remember with Lloyd. And the times that I will remember the most are the visits to Washington with the SCBA and then individual trips with Lloyd when we called up on the Hill. I’ll always remember the time when we called on our former governor Mark Sanford. That was a real experience in his office in Washington and it was the first call we had made on Mark Sanford and I don’t think either Lloyd or myself were quite prepared for what we were going to be a part of - what we would see – [and] how we would be met. And we found out this was a different kind of person in office. Lloyd and I have remarked about this many times afterward: that he had picked as his chief banking person a former fellow who came out of the credit union administration and we thought, oh my, this is truly the fox in the henhouse. And what can we do about it. And yes, Mark Sanford was a very different type of member of Congress, compared to the others that we called on. And

over the years we called on Senator Hollings, Senator Thurmond, and the other members of the House. One thing about Lloyd: he was treated with such great respect by all of them, regardless of the side of the aisle that they sat on. It didn’t really matter. Lloyd was always so non-partisan. Whether it was John Spratt or Jim Clyburn; whether it was Joe Wilson from Columbia or Gresham Barrett from Oconee. But those trips to Washington were always something to look forward to and I think that the members of the SC Delegation really looked forward to him. In fact, all of Washington really looked forward to it because we hosted many receptions for members on the Hill, the members of the agencies, the Federal Reserve, and SC bankers. And Lloyd Hendricks was known for putting on one of the best receptions in town. I don’t think there was anybody who was respected more at the Statehouse than Lloyd Hendricks. But, there is another side of our business where we have to be concerned with regulatory burden and a lot of federal regulation and our laws that come out of Washington, DC. Of course you’ve got the House Banking Committee; you got the Senate Banking and Finance Committee also in Washington; and they are both extremely powerful committees. Most recently, as you probably know, we have had to deal with a very onerous bill called the Dodd/Frank, which has just heaped regulation on top of regulation on the industry. That’s a great example of why your presence in Washington is so important. And the thing about Lloyd is that he has commanded such respect from our delegation, and from other delegations, and from the American Bankers Association especially. We have always had great support from our delegation and they have always

listened to us and they have generally gone in with us on most of the issues. That’s not to say we’ve won all the battles, but we have certainly got a fabulous batting record when it comes to Washington, DC. and our agenda on banking. It’s probably one of the biggest parts of my memory of working with Lloyd Hendricks has been on a Washington level simply because I was more personally involved at the Washington level than I really was at the state level so we teamed up and made many a call together in Washington with the members of the delegation. Lloyd was such great friends with the people in the offices of Senator Thurmond, Senator Hollings and all the other House members - and personal friends with so many. Always non-threatening; always on a very personal basis; always on a very friendly basis, almost to the point where we say we like to do business with people that we like. It’s the same thing with Lloyd in Washington. I truly believe that he was welcomed in the offices in Washington because people looked forward to seeing him again. He was a southern gentleman, and that was his way of operating. He treated them with great respect. I never once, in all of those years, have seen Lloyd Hendricks raise his voice with anyone, much less, anyone in Washington, DC. For anybody who has known Lloyd Hendricks… when you are between a sword and a stone, you know the people you want with you, and I can assure you that Lloyd Hendricks is one of those people you want with you. I think for most of us that we’re fortunate in our lives if we have four or five people we can really call a good friend, and I am so fortunate that I can call Lloyd Hendricks one of those people.

Meet Our Experts

Everyone Deserves a 2nd Chance

J. Connally Bradley Over 29 years of lending experience

W.C. “Bill” Grimes Over 43 years of lending experience

For the past several years, many small businesses have struggled to get the ﬁnancing they need. And, you’re often the one having to tell them “no.” Through BDC’s 2nd Look Program, your customer not only gets a second chance at getting a loan, it gives you an opportunity to say “yes, we can.” By partnering with us, we reduce the bank’s risk on a loan that may not qualify through your standard loan process, which makes it a “win-win-win” for you, the bank and your customer. To ﬁnd out more about BDC, give us a call today at 803-798-4064 or visit us online at BDCofSC.org.

9 Palmetto Banker

Cover Article Cal McMeekin Lloyd and I met in the 7th grade at Hand Junior High and we’ve been friends ever since. Lloyd had great parents. Lloyd’s mother and daddy were role models, not only to him, but to all of us who hung around with Lloyd. I can’t tell you how fine a people Mr. & Mrs. Hendricks were. Mr. Hendricks would take us bird hunting. He was always very careful about guns and things like that. Lloyd and I have hunted together for over fifty years now. Lloyd has always been a leader. When we were at Hand, Lloyd was the mayor, which is the equivalent of the president of the student body. We went to Dreher [High School] together and I think Lloyd was a class officer every year. He was active in the Key Club and went to Boys State and he excelled there too. Lloyd’s leadership starts at the ground with his mother and daddy but he’s developed his own style and is a great leader. We’ve always hung around a good bit together. Lloyd is a crutch to many of us because we would run into somebody we haven’t seen in a long time and nobody can remember who we’re seeing but Lloyd. Lloyd always remembers somebody’s name. He never forgets a name. And it’s a real attribute and strength in my opinion and I admire his ability to have instant recall of peoples’ names. Lloyd is a special guy. He is considerate, he’s thoughtful, and he’s humble. And those three things combined, to me, show the real character of leadership. Lloyd does not look for attention at all. He’s just a great guy. He’s fun to be with. That’s why we all like to hang around with him. He’s very careful, in my opinion, not to leave anybody out. He’s very thoughtful to include people in anything that he does. He’s always got room for one more if he’s hunting. He’s just thoughtful. Another special thing about Lloyd is that he makes everybody feel at ease. When you’re with him, he could be talking to the governor and somebody else no one has ever heard of, and he treats them all the same. That’s a special characteristic. The bottom line is Lloyd is fun to be with and I’ve enjoyed my association with him over the years as all of us do. I go back a long way with Lloyd. I was at the First National Bank of SC when he came there in the trust department, way back in his career. Lloyd has always been an achiever, and he does it through subtle leadership. And I think what he has done at the Banker’s Association is unbelievable. It’s my understanding he got pension plans set up for the smaller banks and he’s taken an organization that is small in staff and done great things with it. I know they’ll miss him. One thing that I know that Lloyd did at the Banker’s Association is selecting the people to work with him. Everybody there contributes. He was kind enough to give my son a job while he was in college one summer, and I got to go by from time to time and meet a lot of the folks on his staff and they are just great people. Lloyd associates himself with people who are leaders in their own right; that can carry the ball. That’s a real attribute to a real leader of an organization that has a good staff. Back in the early ‘60s, I was dating a girl at Columbia College and they had a terrible fire at the college. And the girl I was dating [at the College] was from North Carolina. She called me up a said all I got out with was a raincoat and a pair of Weejuns and I’ve got to go home this weekend and restock. And we had a big dance weekend at Clemson. So that was on Tuesday. Tuesday night I called Lloyd and said, “Lloyd, this is a big weekend up here, I need a date.” So he went to the Russell House and said, “Who wants to go to Clemson?” And my present wife, Frances, said “I’ll Go.” So Lloyd introduced me to my wife so I’m indebted to him for that.

10 Palmetto Banker

Lloyd cares about the environment and the outdoors. He has instilled that in both his boys, Inman and Christian. Everything that Lloyd has done with Christian involving land, they have done it as great stewards of the land. I think Lloyd is on the Congaree Open Land Trust board and they are trying to preserve the Congaree, Wateree, [and] Santee basins. He’s been very heavily involved in those kinds of activities. He’s been a real steward of the outdoors and land. Lloyd was one of those people in the legislature who could work both sides of the aisle back at the time when that was really done. Lloyd was a Democrat in a Republican district. He covered Forest Lake on out to the Wildwood area, which I would think would be very heavily Republican, but he was able to succeed and work on both sides of the aisle. One thing he did for hunters, for example, Lloyd got a bill introduced that people couldn’t shoot off a railroad right-of-way. If someone had a railroad going through their property, poachers would have the tendency to walk the railroad and shoot off the railroad track. Lloyd got a bill passed to stop that - or at least to make it illegal. I don’t know if it ever stopped it. Lloyd’s got the characteristics of a Boy Scout. He’s honest, cheerful, thrifty, brave...He’s thoughtful, humble and all of that. In my opinion, [it] goes back to his family and his parents. Lloyd and his sister Mary Ellen were very blessed to have wonderful parents in Mr. & Mrs. Hendricks. And Lloyd certainly carried on those genes and even instills them in his children and grandchildren.

Highlights Bob Royall Former Chairman of the South Carolina Bankers Association on why he selected Lloyd Hendricks for the CEO role: Of course, he was a banker. When you put all the factors together - his educational background, his legislative network - Lloyd stood out as the type of leader that we really needed badly back in the ‘80s... a time when we really needed a man like Lloyd Hendricks. Quite frankly he was the perfect fit. It was quite an interesting time to be head of the Banker’s Association. You had practically every piece of legislation introduced that impacted the financial sector that had either a positive or negative impact on your banks. Lloyd was the perfect candidate from that standpoint, but even more so because he was so highly respected by all the folks who were in the Statehouse. The fact is the relationship with others, with legislators, with bankers, with the general public, all remains a high priority, and Lloyd fit the bill in every case. The “banking industry” and “economic development” work hand in hand for the good of all the people in the state of SC. Along with that comes a great responsibility for bankers to look after the interest of the private citizen; of companies, small and large; [and] of opportunities for development in the state. I like to look at Lloyd and his trademark, which is, how to help others, how to make an impact on the lives of those who labor in the state; and to leverage the banker’s association in that regard. I think he’s done a great job relative to that. The proof is out there. We were lucky to get him.

Sharon Bryant Current Chairman of the South Carolina Bankers Association, on Lloyd’s role: He’s been very effective, not only at the ABA level and the federal level, but he is particularly effective, having been a legislator, with the SC delegation. They know him, they respect him, and he has their ear… he has an ease of being able to connect people. Lloyd’s amazing background makes him the perfect fit for the role that he is in now and has been for the last 25 years ... Lloyd is unique: his experience, his ability to communicate, his network. It’s so broad and so helpful when you are dealing with legal bills in the delegation and you are talking about an industry that he is extremely familiar with and passionate about. Lloyd is an extremely passionate person, whether he is passionate about South Carolina, all SC banks, whether it be his beautiful family, or hunting in the fields. There is no high and low with Lloyd. It’s all one level and it’s very passionate and very exciting. His passion shows in everything that he does. The magic word for Lloyd is trust. He creates an environment of trust, people know that they can count on him, he creates followership from all different bodies, and that’s what makes him so incredibly special. He has an interest in seeing all people move forward and to grow and be developed and be mentored. He’s just an exceptional partner. You can always tell when someone is very genuine and they are truly interested in you as an individual, in your career and what you are doing, and Lloyd has certainly demonstrated that to me. He’s charming, he’s funny, he can be very serious. He is quick to understand the issues. And he’s respected. Rarely do you find that kind of person that can encompass so many different feelings, emotions, characteristics and competencies, all in one.

Susan Hendricks Wife Basically, he has the same sense of humor, and the same way with friends and with our children. The bottom line is he has a core value that seems to stay the same all the time. He has a way of presenting himself that is true to his fundamental principles and to his ideas of what is important, which is to be a friend and to be a part of something that is bigger than he is.

Washington. Third, he is a past legislator. Successful lobbying at the Statehouse is all about strong relationships, and Lloyd has developed a bunch of strong relationships during his time in Columbia. Finally, Lloyd is and will always be a gentleman and friend to all. You put all this together, and you have the epitome of a successful association executive. From a personal perspective, Lloyd has been a tremendous friend and mentor to me throughout my career. He has always offered wonderful advice and counsel. His support of me over the years has made a difference in my career. It is truly an honor to call him a friend. As you might imagine, there are so many in the state who would say exactly the same thing. That is his gift.

Raymond Caughman: I wish I could be there for the recognition of Lloyd’s retirement. I speak with personal knowledge of his excellence in fulfilling his long, outstanding service, along with his wife Sue, to our association. Lib & I wish him the very best retirement one could expect. We will miss him and Sue greatly. The Lord has certainly blessed our association with his leadership for the past 25 years.

John G.P. Boatwright Former Chairman of the South Carolina Bankers Association It’s hard to believe the time has come for you to retire. There are few people who have exercised the level of leadership and stewardship that you have given over your career. How wonderful it must be to be able to look back on your career and to say without question, “I gave it my all – and succeeded.” Few people in any job have earned the love and respect that you have in your years with the SC Bankers Association. I remember fondly my years of working closely with you. As you retire you can do so with the confidence that your career may not have made you rich in money, but rich in the most important things: friends and their respect. My best to you and Sue as you enter this phase of your life – with many happy years ahead.

Sam Erwin Mentee From a professional perspective, Lloyd brought to his job a very unique skill set that made him extremely effective. I bet there is not a state association executive in the country will this skill set. First, and very importantly to us all, Lloyd was a very successful banker before he came to lead the SCBA. He knows and understands our business. Second, he is a lawyer. This has been critical to understanding the intricacies of the legal and legislative process in Columbia and 11 Palmetto Banker

Feature

The Top Five Reasons You Should Offer Small Business Online Bill Pay – and Do it Now Tighter cash flow management, more flexible payroll administration, and greater back office efficiencies are just a few of the reasons small businesses are attracted to bill pay solutions tailored just for them. by Amy Aldrich, Product Marketing Specialist, Jack Henry Banking

ecent studies have proven that small business customers are a highly valuable, yet under-served target market for financial institutions. If you’re missing out on securing relationships with these vital customers, it’s time to think about new ways to anticipate their needs and respond before they even know they have them. If you don’t, they are likely to find a bank that will. One strategic way to anticipate the demands of small business customers is to offer an online bill pay solution that is specifically targeted to their unique needs. This alleviates some of the worry from financial management and gives small business customers more control. What’s so attractive about a tailored business online bill pay solution? Tighter cash flow management, more flexible payroll administration, and greater back office efficiencies are just a few of the features that are extremely attractive to small businesses, and they won’t find these functions in standard consumer online bill pay solutions. Small business bill pay is customized to meet the evolving demands of this customer segment, and it offers numerous opportunities for banks to increase revenue and secure ongoing commercial relationships. In a recent study, iPay Technologies™ examined the market for business online bill pay and discovered that there is a significant number of small business owners that are ready to sign up for this service right now. So what are you waiting for? Below are the top five reasons you should adopt a tailored bill pay solution for small businesses – and do it fast!

Reason No. 1

A big market is up for grabs.

In the referenced study, iPay discovered that approximately 5.9 million small businesses have a need for business online bill pay and the desire to adopt this service now. This figure represents 23 percent of America’s small businesses – a substantial small business market that is up for grabs for banks nationwide.

Reason No. 3

Small business customers don’t just say that small business bill pay is valuable – they’re willing to put their money behind it. In fact, 72 percent of the financial institutions targeted in iPay’s study said they were willing to pay a monthly fee for business online bill pay. Small business bill pay is especially attractive to banks now because it offers a potential revenue stream in the wake of mandates like Regulation E that impose tighter limits on fees and drive banks to seek new profit areas. Business online bill pay is increasingly viewed as a viable option for institutions looking to generate new sources of revenue.

Reason No. 4

This technology serves an immediate need.

Business moves fast, and small business owners want more convenient ways to manage their finances. They want more control, flexibility, and convenience, and they want it now. In fact, 91 percent of those surveyed by iPay were ready to immediately adopt small business online bill pay as soon as they were able to visualize the tangible role it would play in their day-to-day operations. For banks, this presents an opportunity to strengthen relationships and meet an immediate demand for small business customers, often before they recognize a need is even there.

12 Palmetto Banker

You can attract and retain a lucrative segment of business customers.

Today’s small businesses are increasing their expectations of their banks and want easier and more convenient financial management. According to the iPay study, 78 percent of banks surveyed were willing to switch institutions to get business online bill pay. This implies that once small business customers are made aware of the value of small business bill pay, they’ll do what it takes to reap the benefits, even if it means going through the hassle of switching banks. Additionally, customers who adopt business online bill pay from a bank have a more tangible connection to that institution and more reasons to continue doing business with them.

Reason No. 5 Reason No. 2

Your bank can make more money!

You’ll have a competitive advantage over other banks.

Offering business online bill pay makes financial institutions more appealing in the eyes of small business owners. As a result, providing this service can give banks a competitive advantage when they are trying to capture a greater share of the small business market. Offering a bill pay solution targeted specifically for the needs of small businesses is an act of goodwill that business customers will notice. The iPay study reported that 97 percent of banks would think more favorably of an institution that offers business online bill pay.

As technology changes, the economy recovers, and the dynamic segment of small business customers evolves, one thing seems certain – small businesses want simple, convenient financial management options and they rely on their banks to provide the services that will work best for them. If you’re not currently offering a small business bill pay solution, it’s time to formulate a plan of action to adopt this solution right away. And when you do, make sure you actively market this offering so your small business customers are completely aware of its many advantages. The value of this offering is clear, and the benefits are many. It’s time to secure relationships with small business customers now, before the bank down the street beats you to it. Amy Aldrich is a product marketing specialist for Jack Henry Banking, a division of Jack Henry & Associates, Inc. She can be reached at aaldrich@jackhenry.com. Download the complete iPay white paper referenced in this article at www.ipaytechnologies.com.

The Correspondent Division of CenterState Bank employees over seventy dedicated correspondent professionals, and we manage over 565 relationships throughout the Southeastern United States. OUR SERVICES: Portfolio Strategies Bond Accounting and Safekeeping Asset/Liability Management Reporting Clearing and Cash Management International Services Bond School and Customized Educational Events Fed Funds Program Fed Funds Lines of Credit

120 Club Oaks Court, Suite 150 Winston-Salem, NC 27104 336.659.7100 y 877.604.8282

www.csbcorrespondent.com

13 Palmetto Banker

Feature

Washington Trip 2012

his year twenty-six bankers from South Carolina traveled to Washington, DC for the SCBA’s annual Washington Trip held March 19th – 21st in conjunction with the American Bankers Association’s Government Relations Summit. Over 1,000 bankers from all fifty states were in attendance in order to express their views and assert their position to members of Congress. The trip began with a SC Bankers Briefing that included an update on legislative and economic issues by James Ballentine and Keith Leggett of the ABA, followed by a welcome reception and dinner where attendees listened to Representative Shelley Moore-Capito (R-WV) speak on her examination relief legislation. Tuesday morning began with general sessions and a meeting with David Silberman, Acting Association Director for Research, Markets and Regulation at the CFPB. That afternoon, our South Carolina bankers headed to the Hill and had very productive meetings with all of the members of our delegation. Special thanks to the Federal Home Loan Bank of Atlanta for hosting a reception and dinner for our group on Tuesday evening. The general session continued Wednesday morning with speakers Senator Mark Warner (D-VA); Indiana Governor Mitch Daniels; Chris Matthews, host of Hardball; Acting Comptroller of the Currency John Walsh; and Acting Chairman of the FDIC Marty Gruenberg. For the first time the American Bankers Association provided scholarships for Outstanding Young Bankers and Emerging Leaders. South Carolina received three scholarships which allowed Robert Hucks, Coastal Carolina National Bank; Chris Robinson, TD Bank, NA; and Jim Smith, Sandhills Bank to attend the Washington trip for the first time. Robert Hucks had this to say about the trip: “As a first time attendee on the annual trip to Washington, DC, I was honored to represent Coastal Carolina National Bank, the South Carolina Bankers Association, and the banking industry in general. I was amazed and encouraged by the compilation of so many talented bankers not only from the State of S.C., but from all states that were represented on the trip. It was certainly a motivating experience to see such a united and collective effort going towards ensuring the success of the banking industry and its future. I am extremely thankful to the ABA for extending scholarships this year which allowed more Young Bankers to make the trip, including myself. This experience has opened my eyes to the importance of building and maintaining strong relationships with the members of our Congressional delegation. Unless we stay in close communication with our representatives, they may be unaware of how certain regulations or legislation may affect the day-to-day operations of our banks. I feel it is our responsibility as bankers, and to our industry, to make sure they are kept aware of any concerns we may have that might impact our banks and its ability to serve their respective communities. For this reason I hope to continue to make the annual trip going forward and begin to forge relationships with our delegation that can be maintained throughout my banking career. The banking industry continues to play a vital role in our local and national economies. Where there is a thriving community bank, there is a thriving community. It’s the community bank that helps the local library…it’s the community bank that coaches the Little League team…it’s the community bank that supports local non-profit organizations…it’s our job to make sure our industry remains strong and these things continue going forward. If you have never made the trip in the past, I highly recommend you join the effort next year.” Please mark your calendars and plan to attend next year’s trip scheduled for April 15-17, 2013.

14 Palmetto Banker

Representative Shelley MooreCapito discusses her examination relief legislation

Lloyd Hendricks, SCBA, gives a Hill visits

report on SC Bankers’

Chris Matthews, host of Hardball, speaks to atten

dees

National Bank astal Carolina Co , ks uc H rt Robe sey Graham and Senator Lind

Fleetwood Hassell, Th e Bank of South Ca rolina, Fred Green, Frank Townsend, SCBA, Southern Bank & Trust, a division of Bank & Trust, Robe Georgia rt Hucks, Coastal Ca rolina National Ba Elizabeth Hassell nk, and

t Hucks, Coastal rship recipients Rober Young Bankers Schola Bank, and Chris ls nk, Jim Smith, Sandhil Carolina National Ba Robinson, TD Bank

NBSC, a divink, Chuck Garnett, Ba TD , son bin Ro Chris Southern Bank and , Frank Townsend, sion of Synovus Bank ust, Lloyd Hendricks, Georgia Bank & Tr Trust, a division of First Bank wait ickland, Southern Str tin Jus d an , SCBA n Mulvaneyâ&#x20AC;&#x2122;s office outside of Congressma

s Bank, Ben Seabrook, , a division of Synovu SC NB tt, rne Ga uck Ch ells Fargo, Gary Horn, Bank, Rick Redden, W mmy Bouchette, Southcoast Community rrick, NBSC, and To De b Bo , nk Ba l na CBC Natio BNG

Jim Smith, Sandhills Bank, Teresa Knight, The Palmetto Bank, and Kevin Wyckoff, FHLB Atlanta

Acting FDIC Chairman, Marty Gruenberg, speaks to attendees

SC Bankers visit Capitol Hill

15 Palmetto Banker

Feature

Accusations of the Unauthorized Practice of Law: A Banker’s Primer in Prevention by Drew Walker, Ellis, Lawhorne & Sims

Don’t Give It Away: Avoiding New Unauthorized Know Your Lawyer Banks cannot choose their lawyer in a residential real estate closPractice of Law Consequences Banks lend money – they don’t give it away. However, recent rulings from South Carolina appellate courts may close the courtroom door to a bank seeking mortgage foreclosure and a money judgment. Without relief from the courts for bad loans, the bank has essentially given their money away. South Carolina law requires an attorney to perform or supervise certain steps in a real estate closing. Lenders and lawyers have known this for 25 years. The 1987 Buyers Service case and its progeny served notice on lenders that an attorney must supervise the following aspects of a real estate closing: preparing the loan documents, abstracting the title, closing the loan, recording the loan documents and disbursing the loan proceeds. These five steps constitute the practice of law. If any of these steps are performed by a non-attorney (i.e. lender, closing service company, broker, paralegal) without attorney supervision, then the non-attorney has committed the unauthorized practice of law (“UPL”). The recent rulings in Wachovia v. Coffey and Matrix v. Frazer establish a drastic consequence for lenders committing UPL – a loss of legal and equitable remedies. In essence, the decision in Matrix means that a bank has no ability to foreclose its mortgage when a lender closes a loan without attorney supervision. Some argue that the Coffey ruling provides that legal relief under the terms of promissory notes and other loan documents will also be barred, regardless of the borrower’s obvious intent to enter the transaction. And if you thought the only thing you needed to worry about was your borrower, think again. Third-parties (i.e. junior mortgagee or lienholder), who are strangers to the loan transaction, may challenge the enforceability of a mortgage through accusations of UPL. While a substituted, re-filed Matrix decision attempts to only apply UPL consequences to “filings” after August 8, 2011, the meaning of the prospective application of the decision is open to argument. Moreover, the May 2010 Coffey decision, which is still good law, may apply retroactively. The new UPL consequences create potential windfalls for borrowers and junior creditors. Expect increased UPL litigation throughout the banking industry. These recent decisions have caused attorneys representing borrowers and junior creditors to scrutinize loan documents for the smallest UPL threads to pull to unravel the transaction and allow their clients to secure better positions at the lender’s expense. These new UPL consequences are not great news for banks. How do you avoid the UPL courtroom? ■ ■ ■ ■

Know Know Know Know

Your Lawyer the Place of Your Closing What’s in Your Settlement Statement What’s in Your Mortgage

The benefits of dealing with these details on the front-end of a closing transaction greatly outweigh the expense of a costly UPL defense on the back-end. Here’s how to prevent accusations of UPL. 16 Palmetto Banker

ing. Borrowers possess the statutory right to select their own counsel. In fact, this choice must be presented to the borrower by the lender. Banks should ensure that borrowers choose their own counsel in order to avoid later accusations that an attorney was forced upon them. While a bank is always entitled to separate counsel in addition to the borrower’s counsel, multiparty representation is allowed in South Carolina and is usually cost-effective for the bank in residential closings. When your borrower has selected a lawyer, get to know that person and his or her closing practices. Call the lawyer on the phone and ask him or her where the closing is going to be held. Banks should prefer and encourage the use of a conference room at the attorney’s office. An in-home closing at the borrower’s residence is an immediate red flag for parties that accuse lenders of UPL. In litigation, borrowers often accuse lenders of hiring an attorney to merely show up at the home to witness the borrower’s signature and make an appearance of propriety. Borrowers have become prone to argue that the lender or a closing service company prepared the loan documents that were not reviewed or explained by the attorney. The in-home closing feeds this argument. For this reason, it’s best to have the borrower take the proactive step of going to the attorney’s office to have the loan closed. Is one lawyer handling all aspects of the closing that require attorney supervision? It’s commonplace for lawyers to hire non-attorney abstractors to research title for review by the attorney; however, when one lawyer certifies title and another lawyer attends the closing, more red flags go up. Closing service companies often spread closing responsibilities among several lawyers in an attempt to comply with South Carolina’s unique UPL rules. This may lead to other problems, such as failure to update title before recordation that leaves a gap for intervening liens and judgments between title certification and mortgage recording. Involving too many lawyers can create an appearance of impropriety. Ensure that your residential closing attorney is handling all five aspects of the real estate closing that constitute the practice of law in South Carolina.

Know Your Forms

Settlement Statements Improperly prepared settlement statements are an Achilles’ heel for lenders engaged in UPL litigation. Failure to review a final HUD1 settlement statement prepared by a third party can result in serious heartburn for banks. A settlement statement should list the “Settlement Agent” as the South Carolina attorney or firm that closed the loan. The settlement statement should also list the “Place of Settlement” as the physical location in South Carolina where the closing took place. In recent UPL litigation, settlement statements often list the settlement agent as a closing service company and that company’s national headquarters (TX, CA, CO, etc.) as the place of settlement. This prompts assumptions as to who is running the closing show – the closing service company or the lender -- and not the borrower’s attorney.

Also, the “Title Charges” section of the settlement statement can pique the interest of a UPL accuser. Quite often, the “Attorney’s Fee” line does not have a charge next to it. Rather, the lines for closing and notary fees show charges for the use of non-attorneys. Even if an attorney supervised all of the necessary aspects of the closing, this glaring mistake on the settlement statement can give rise to accusations of UPL. It’s important for the bank to review the final HUD statement prior to the date of closing.

Mortgages and Recording Attorneys usually do not walk mortgages down to the recording office. Nevertheless, the recording must still be performed under attorney supervision. The top left-hand corner of a mortgage often has a stamp stating “Recorded by ABC Closing Service Company” or “Return to ABC Closing Service Company, Dollywood, California, after recording.” This is a UPL red flag. Placing the name of the closing attorney or omitting the return information altogether avoids the appearance of UPL. Encourage your lawyer and underwriters to pay attention to the recording instructions on the mortgage, which becomes part of the public record.

The Irony of It All If a bank cannot practice law, then why is it charged with looking behind the closing attorney to ensure compliance with UPL rules? The drastic consequences for UPL in recent case law have made it necessary for banks to become mindful of the attorney’s role in the closing. While both Matrix and Coffey involve disputes where an

attorney was completely absent from the closing, recent accusations of UPL in the wake of these cases involve situations where an attorney was present for part of the transaction. Matrix and Coffey blur the line between bad lawyering (professional negligence) and the absence of a lawyer (UPL). Negligent supervision by an attorney in a real estate closing is distinct from the absence of an attorney; however, when the UPL accuser can challenge whether the attorney was calling the shots at all, the lender could have UPL exposure. By knowing its lawyer and loan documents, banks can avoid the obvious missteps that lead to accusations of UPL. Stay in the business of lending money and avoid giving it away.

Drew Walker is a litigation attorney at Ellis, Lawhorne & Sims in Columbia, SC. He routinely represents local, regional and national lenders and title insurance companies across the state in disputes that involve accusations of the unauthorized practice of law. Drew has obtained favorable results for his clients in the UPL arena over the past several years. Drew’s practice focuses on financial disputes concerning mortgage banking, real estate and debt collection. Drew may be reached at 803-212-6514 or dwalker@ ellislawhorne.com.

Intelligent Information. Smart Decisions. Introducing The Banker Suite... Powered by CRS Data For over 20 years, CRS Data has been providing banking professionals with the industry’s most indepth and reliable Real Estate information solutions. We are committed to helping Community Banks stand strong in today’s regulatory environment. The Banker Suite addresses many of the challenges detailed in the Interagency Appraisal & Evaluation Guidelines. The Banker Suite will increase the quality of your evaluations and extend the life of your appraisals while decreasing the costs. We can help you justify your lending decisions while providing continual evaluations of your collateral.

For Complete Information and a Comprehensive Customized Demonstration Contact Us Today: 800- 374-7488 • www.crsdata.com/banking

17 Palmetto Banker

Young Bankers Conference

2012 Young Bankers Conference

ver 158 bankers, associates, spouses, and guests attended the 2012 Young Bankers Conference at the Grove Park Inn Resort & Spa in Asheville, NC on March 9-11, 2012. The event began with Friday’s speakers including Rick Saunders, First Reliance Bank, who delivered his speech “The Success Journey” and Rory Aplanalp, Aplanalp & Associates, Inc., who gave the first of his two speeches entitled “The Model of Control.” Saturday morning began with a prayer breakfast featuring speaker Mike Nunn, Florence County Sheriff’s Office, who was an inspirational survivor of “The Miracle on the Hudson.” Next up was the business session and “The Great Debate” featuring Dr. Harry Davis, Appalachian State University, and Mike Ayotte, Morganton Federal Savings & Loan. The session ended with Rory Aplanalp’s “How to be Happier by Watching What you Put on your P.L.A.T.E.” Then bankers were invited on a golf outing or to enjoy an afternoon free for networking. Saturday evening’s dinner showcased a dueling piano concert. Chairman Jeff Paolucci, First Reliance Bank and conference chairman/chairman-elect Montague Laffitte, SCBT, N.A. wish to thank the sponsors and welcome the newly approved board.

Member Jennifer Caison Boozer, Board ing and Loan and Jones, Citizens Build Bank, sing along TD Allison Cranford, during the show

ci Bennett Sally Robinson and Nic steal the show!

ki, Thank you Gold Sponsors Lisa Hostetler, Teri Stoms and ki Stoms Nick PC, as, Rogers Townsend & Thom Jennie Lee

Laffitte Teresa Taylor and Carolyn rockin’ and rollin’

18 Palmetto Banker

Friday’s featured speakers received two thumbs up! Rory Aplanalp, Aplanalp & Associates and Rick Saunders, First Reliance Bank

Board Members Montague Laff itte, SCBT, N.A., and Blake Taylor, Southern First Bank, thank Lloyd Hendricks for his leadership and support of the Young Bankers Division through the years

Past Chairmen Will Howar d, First Citizens, and Gray Hen derson, Palmetto State Bank

Griffin Bell, Bell & Carrington, LLC; Board Member Blake Taylor, Southern First and Hudson Williams, Turner Padgett Graham and Laney, PA

Reliance Bank, Jeff Paolucci, First his service as receives his plaque for g Bankers un Yo Chairman of the Division

Craig and Sheila Tibbetts, First National Bankers Bank Board Members Glenn Buddin and Jim Smith with their spouses Dannette Buddin and Heather Smith with Henderson and Karen Duke, Community Bankers Bank

ler, Elizabeth m Tom Coker, Stuart Ply Bank of Travelers Rest tea Schroeder and Bob White The Young Bankers Board of Dir ectors gathered in Asheville Thursda y evening to kick off the Conference

The weekend concluded with a dueling pian

o show

Young Bankers Division Board of Directors 2012-2013 Chairman R. Montague Laffitte, III SCBT, N.A. Columbia

Group I Director-Elect Charles K. “Chase” Talbert The Bank of South Carolina Charleston

Group V Director Jeffrey M. “Jeff” Thompson The Palmetto Bank Laurens

Chairman-Elect Marvin E. Robinson, Jr. Wells Fargo Columbia

Group II Director Beth McMahan NBSC Columbia

Group V Director-Elect James D. “Jamie” Westmoreland, III Bank of York Lake Wylie

First Vice Chairman Chad F. Westendorf Palmetto State Bank, Hampton

Group III Director Todd C. Stanford Security Federal Bank N. Augusta

Group VI Director Robert P. Hucks II Coastal Carolina National Bank Myrtle Beach

Immediate Past Chairman Jeffrey A. “Jeff” Paolucci First Reliance Bank Florence

Group III Director-Elect Glenn D. Buddin, Jr. Blue Ridge Bank Walhalla

Group I Director P. Carter Pearson Southcoast Community Bank Mt. Pleasant

Group IV Director Jennifer T. Jones Citizens Building & Loan Greer

Members at Large One-Year Term Richie C. Godfrey Park Sterling Bank Anderson John Rowe First Federal Myrtle Beach

Jesse Smith First Citizens Columbia

R. Christopher “Chris” Robinson TD Bank Greenville

Two-Year Term Charles Griffin Bank of America Columbia

Blake G. Taylor Southern First Bank, N.A. Cayce

19 Palmetto Banker

Young Bankers Conference

, d Michelle Clayton dson Williams an Hu sor sor on on Sp Sp r ze on lve Si PA; Br Graham & Laney, r Turner, Padgett, , Boyd, PA; Silve ler nk Si , th or sw yn Ha d , an son d hn Will Jo Shaun Cranfor anford, TD Bank, Sponsor Allison Cr Jason Clayton

Ayotte, ebaters” Mike “The Great D , and an Lo d an l Savings Morganton Federa by Lisa were kept at bay Dr. Harry Davis arke White, Harland Cl

H er ita ge C ot hr an , K at hy her husth wi , nk Community Ba band Richard

Alliance Bank, Cal Wicker, Carolina Jennifer Jones, , ber and Board Mem d Loan Citizens Building an

20 Palmetto Banker

, Inc., Silver Sponsor Neal Beard, STS ith, Sm Jim er mb Me rd Boa h wit visits Sandhills Bank

SCBA Staff Teresa Taylor, Lloyd Hendricks and Carolyn Laffitte

2011 PEP Chairman Montague Laffitte, SCBT, N.A., congratulates PEP winner Brian Hungerford, Bank of America, for his financial literacy efforts

Good bankers and friends John Griggs, NBSC, Jesse Smith, First Citizens and Chairman-Elect Monta gue Laffitte, SCBT, N.A.

Prayer Breakfast speaker Mike Nunn, Florence County Sherriff’s Office, shares his experience from the Miracle on the Hudson plane crash

& lis, Lawhorne Jake Barker, El r d so an on s gg Sp e Su nz n/ Bro , Keena ac Humphries C D /C Sims, P.A.; M C BD Ryan Barnes, Silver Sponsor

David Rhodes, South Atl antic Bank; Collier Schettig and Josh Wise, BNC Bank, traveled from the Coast to the Mountains

Nakia Davis, The Pe oples Bank, Chad W estendorf, Hal Bennett and Chip Mi kell, Palmetto State Ba nk, catch up before Friday’s business session

21 Palmetto Banker

Young Bankers Division

Banking Careers 101

ach year, the South Carolina Bankers Association’s Young Bankers Division coordinates an annual educational banking program. Banking Careers 101, formerly known as Banking Orientation, is designed to help students studying banking, finance and accounting learn more about the world of banking. The event is a one-day workshop bringing professional bankers together with students in a career fair-like atmosphere. Students tour stations representing the various departments within a bank, network with hiring banks, and interact with various career bankers from all divisions of the industry. On February 2, over 100 South Carolina college students had the opportunity to learn and network with over 30 bankers. In December 2011, the scholarship committee conducted over 24 interviews. During the luncheon at Banking Careers 101, a total of $22,000 in scholarships was awarded to 20 deserving students representing 12 colleges and universities in SC. The Young Bankers Division Annual Scholarship Golf Tournament and the SC Bankers School student fundraising efforts contributed $11,000 to that scholarship fund. The SCBA Board of Directors matched that amount, totaling $22,000 in scholarship money awarded to students who were recognized at the BC101 event.

Bankers from around the state attended Banking Careers 101 to meet the best and brightest students who are interested in pursuing a career in banking.

2011 Scholarship Winners

22 Palmetto Banker

Thank You to Our BC101 Sponsors: Bank of Walterboro Blue Ridge Bank CresCom Bank Palmetto State Bank First Citizens Wells Fargo TD Bank, N.A. (GRAND SPONSOR) First Reliance Bank Bank of America

Holt Chetwood, Wells Fargo, delivers an important message during the luncheon – “Get Smart About Credit.”

Feature

Not All Criminals are Dumb Criminals by Bret Rock, Fraud-Net

he next time you are surfing the web and want something to laugh about, go to Google.com and search for “dumb criminals” — you will find plenty of results. You can laugh about the bank robber who gave the teller his ID and account information before trying to hold the place up. Or about the guy who robbed a bank and then proceeded to update his Facebook status to reflect that he was “now a bank robber.” There certainly is no shortage of criminals who seem well short of mastermind status, but where we get in trouble in the financial industry is when we assume that all criminals are idiots, because, sadly they are not. When you step back and look at the schemes and scams that are taking place to our customers these days, the fact that some of these perpetrators are pretty clever becomes abundantly clear. Take the hackers that recently broke into the Sony Playstation 3 system and compromised millions of accounts or the TJX incident from a couple of years ago. Look at how sophisticated and scarily accurate some of the phishing e-mails that get sent out to your customers are. It’s becoming nearly impossible to separate the real from the fake. Skimming is another activity on the rise. When we instructed our clients to be extremely careful when they were entering their information into an ATM or to be on the look-out for any suspicious attachments installed on the ATM, criminals moved to putting these devices on the doors leading into ATM vestibules. Financial security departments at financial institutions are always concerned about how criminals are going to use the newest wave of technology meant to make our customers’ lives easier to their gain and, frankly, for good reason — these people we are dealing with are smart. Thankfully we have tools at our disposal as well. One of those tools is Fraud-Net.

Is Your Bank Using Fraud-Net? Fraud-Net was created to help financial institutions and law enforcement share information in the effort to fight financial crime from occurring. Although it’s idealistic to think there is one magic bullet to stop all financial crime, Fraud-Net is a tremendous resource in keeping your bank informed. There are numerous examples of Fraud-Net helping a bank prevent losses in the tens of thousands of dollars range. If your bank is not using Fraud-Net, you may be missing out on critical information that could help you protect your customers and your institution from becoming the victim of financial crime. Best of all, Fraud-Net is provided free-of-charge to members of the South Carolina Bankers Association. In these economic times, it now more important than ever to make sure your institution is getting the absolute most out of every dollar. If you aren’t using Fraud-Net, not only are you not getting the most of your membership to the SCBA, but you are also denying your bank the opportunity to learn about crimes in their area, state and nationally that might save a significant amount of money.

Using Fraud-Net Is Easy If you have time to send an email, you have time to post an alert on Fraud-Net. Posting is the lifeblood of the system. If there is a counterfeit check, robbery, mortgage fraud or any other type of financial crime at your institution, we encourage you to post it on Fraud-Net. If you don’t have time to post, please send an e-mail with as much information as possible to tips@fraud-net.com and we will make Bret Rock sure it is posted on your behalf. Looking for information on Fraud-Net is even easier. Built like a message board, it is very easy to see what is happening in your region, state and nationally. If you would like more information on how to use FraudNet or would like to schedule a webinar for your institution, please contact Bret Rock at brock@fraud-net.com.

Now Is the Time to Start Using Fraud-Net While we all can laugh at the bank robber who left his pants behind (with the company name he worked for on the tag, no less), we need to be as clever and get the most out of the tools we have in order to stop the not-do-dumb criminals. If your institution is not yet a member of Fraud-Net or you are looking for more information, please contact Anne Gillespie at agillespie@scbankers.org.

23 Palmetto Banker

Welcome, New Associate Members Bell Carrington, LLC 870 Cleveland Street, Suite 1B Greenville, SC 29601 Contact: P. Griffin Bell, Member Phone: 864-272-0556 Fax: 864-752-1075 Email: griffinbell@bellcarrington.com Website: www.bellcarrington.com Bell Carrington, LLC is a full service law firm with offices in Greenville and Columbia. The firm interacts with the banking industry daily through the firm’s real estate practice and foreclosure practice.

Cape Point Advisory Partners, LLC 2201 Rhododendron Court, Charlotte, NC 28205 Contact: Ralph Strayhorn, Managing Member Phone: 336-202-0678 Email: rnstrayhorn@capoepointpartners.com Mr. Strayhorn, Managing Member of Cape Point Advisory Partners, LLC, has spent the last 21 years in the banking and related financial businesses since receiving his JD degree in 1981 from UNC-CH and his BA from UNC-CH in 1977. During 12 of the last 18 years, he has served as an executive officer of four community banks in North Carolina, served on the board of directors of three of these banks and served as President & CEO of two of these banks. He has successfully executed corporate restructurings, private equity placements and mergers. From November 24, 2008 to April 10, 2009, he had the distinction of attempting to salvage Cape Fear Bank in Wilmington, NC. The bank was taken into receivership by the NC Commissioner of Banks and the FDIC on April 10, 2009. From May 2009 to present, upon the recommendation of both banks’ counsel and various regulatory authorities, Mr. Strayhorn has been engaged by 10+ “troubled” bank or bank holding companies, subject to regulatory enforcement actions, as a strategic advisor to their management and boards of directors. His initial duties for client banks include negotiating, organizing and overseeing compliance with regulatory orders. More specifically, he has both drafted and engaged outside vendors to conduct and issue management studies as required by Consent Orders, evaluated the quality and competence of existing management teams, hired investment bankers and regulatory attorneys on behalf of boards of directors and directly interfaced with clients’ state and federal regulators. Mr. Strayhorn has engaged and supervised special asset subcontractors on clients’ behalf to assist with analyzing, managing, restructuring and disposing of criticized assets. In addition, with the assistance of outside legal counsel, he has led the review of clients’ existing D&O coverage and has been successful in locating and obtaining new regulatory coverage for several clients. Mr. Strayhorn has both lectured and spoken at various directors’ colleges and CEO forums in North Carolina and Virginia and has 24 Palmetto Banker

addressed the North Carolina Banking Commission on the “Anatomy of a Failure” and the present state of community banking in North Carolina. His comments, conclusions and recommendations stated in various public speaking engagements are based on his cumulative experiences in his various roles.

Community Capital Advisors, Inc. 1815 Satellite Boulevard, Suite 502 Duluth, GA 30097 Contact: Lee Bradley, Senior Managing Director Phone: 678-417-6600 Fax: 678-417-6699 Email: lbradley@communitybankcapital.com Website: www.communitybankcapital.com Community Capital Advisors is a consulting firm that works exclusively with community banks. Our Managing Directors have a combined 91 years’ experience in this arena and have raised over $1.4 billion for their clients. We work on-site with every client until the completion of each transaction. Our services include on-site consulting, web-based data management, capital marketing, and mergers and acquisitions. Our model has led us to the success of over 140 community bank capital campaigns. Understanding that each bank client is unique, and formulating a unique solution, is what has made us successful since 1987.

EDTS, LLC PO Box 1926, Augusta, GA 30903 (mailing) 933 Broad Street, Suite 301, Augusta, GA 30901 (physical) Contact: Charles K. Johnson, CEO Phone: 706-722-6604 Fax: 706-722-8133 Email: cjohnson#@EDTSolutions.com Website: www.EDTSolutions.com Since 1999, EDTS has provided customized Information Technology (IT) Consulting, Design, Implementation and Support services to hundreds of organizations across the Southeast, generating long-term trust and delivering measurable business results. EDTS focuses on networking, security, business continuity/disaster recovery and IT support need for the banking industry. Our local presence means we’re readily accessible to you with fast response times and friendly faces. And our expert services provide you decreased cost and increased performance.

Welcome, New Associate Members Fifth Third Bank

360 View

38 Fountain Square Plaza MD 10908E15 Cincinnati, Ohio 45263

PO Box 79116, Charlotte, NC 28270 (mailing) 545 Mainstream Drive, Suite 250, Nashville, TN 37228 (physical)

Contact: Sam Merkle Phone: 800-344-5300 Fax: 513-534-6479 Website: www.53.com

Contact: Jon C. Hall, National Sales Phone: 615-242-0007 Fax: 615-242-0017 Email: jhall@inbizservices.com Website: www.threesixtyview.com

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. The Company has $115 billion in assets, operates 15 affiliates with 1,314 full-service Banking Centers, including 103 BankMart® locations open seven days a week inside select grocery stores and 2,437 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania, Missouri, Georgia and North Carolina. Fifth Third operations four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Investment Advisors. Fifth Third also has a 49% interest in Vantiv, LLC formerly Fifth Third Processing Solutions, LLC. Fifth Third is among the largest money managers in the Midwest, and, as of September 30, 2011 had $273 billion in assets under care, of which it managed $23 billion for individuals, corporations and notfor-profit organizations. Fifth Third Bank offers our customers the capital strength and security of one of the nations’ strongest, most financially sound banks. Our Correspondent Banking Group has over 100 years of experience in providing correspondent banking services. Our focus is on delivering a comprehensive suite of core banking services to the financial institution market. Fifth Third Bank’s Correspondent offering includes: Cash Letter Services, Credit & Lending, Securities, Investment and Institutional Services, International and Global Trade Services, and Treasury Management Services.

Find Great People, International 15 Brendan Way, Suite 140 Greenville, SC 29615 Contact: Rhiannon Poore, Marketing and Communications Manager Phone: 864-297-0000 Fax: 864-297-0114 Website: www.fgp.com Find Great People, International is an internationally recognized executive search and professional recruitment firm that specializes in recruiting great people for the banking industry. We’ve completed over 2,000 executive and senior level searches, with a client retention rate of over 97%. We would love to help you build a great company!

360 View CRM is a web-based software solution that can be hosted at your institution or via the web by inBusiness Services, developer of 360 View. This customer relationship management system can import all your core and third-party accounts and services on a daily basis while rebuilding the customer relationship into one customer view so that your customer’s relationship to others and their value to your institution are instantly recognizable. This advanced CRM system will help with sales automation, call center tracking, frontline cross-sells, goal and incentive management, customer profitability, and campaign marketing. This software was developed by financial institutions for financial institutions. 360 View has been thoroughly field tested all over the U.S. by financial institutions, small and large, with proven ROI results.

L. Michael Wofford Consultants & Advisors, Inc. 400 North Church Street, Unit 709, Charlotte, NC 28202 Contact: Michael Wofford, President Phone: 704-332-6020 Email: Michael@michaelwofford.com Website: www.michaelwofford.com L. Michael Wofford, Consultants and Advisors was founded on March 11, 2011. We offer 30 years of experience in the banking industry, including consulting for major corporations such as First Union Finance and Bank of America, as well as over 100 community banks across the country. Michael Wofford, Consultants and Advisors has the experience and knowledge to provide your financial institution the assistance you need to boost technology productivity and efficiency while insuring that you have the necessary functionality to serve your customers. How we help community banks and other financial institutions. We offer: ■ ■ ■ ■ ■

Core selection services Technology Assessments and Planning Internet Banking and Cash Management Selection Contract Negotiation including Core and ATM/ETF processing Project Management and Implementation Services

Based on our 10 years of consulting experience with over 100 community banks, we have the knowledge to assist you with any of these products. 25 Palmetto Banker

Welcome, New Associate Members We also have a cost database and proprietary cost measurements that help guide you on how to spend technology dollars and measure technology costs to maximize your return on investment. We are here to make sure that our clients make the best decisions and choose the best options for their specific needs. Visit us at www.michaelwofford.com for more information.

McPherson Company

Designed with the cooperation and advice of clients, the McPherson Company utilizes the profiles created within the Clear Director development tools. These tools provide desirable and measurable solutions for business people. Each module personalizes the counsel, analysis, or training by integrating axiology, technology, business sciences, and our clients’ experience. Every product is scientifically sound, delivered electronically, and proven in real business and professional services contexts.

PO Box 9181 Columbia, SC 29290

nFusion Constultancy, LLC 2411 N. Oak Street, Suite 105 Myrtle Beach, SC 29577

Contact: David McPherson, President Phone: 803-695-1000 Email: david.mcpherson@mcpherson-co.com Website: http://mchpherson-co.com We specialize in helping clients achieve major productivity and performance improvements by developing managers’ ability to make balanced decisions and fine tuning their work habits to sustain the process measured against key performance indicators. We help senior management identify their best work habits and reproduce them with their key people; frequently this involves documenting best practices, less productive practices and then implementing a habit change process to ensure the most effective habits are utilized.

Resourceful. Responsive. Reliable.

Celebrating 25 Years as Your Strategic Partner, Never Your Competitor

www.CBBonline.com 26 Palmetto Banker

704.844.2505

Contact: Jay Smith, President Phone: 843-839-0182 Fax: 843-492-6529 Email: jsmith@nFusionConsultancy.com Website: www.nFusionConsultancy.com nFusion is a collection of highly-skilled and experienced individuals whose broad objective is to provide comprehensive, value-added services and solutions to the banking industry. Clients of nFusion not only benefit from the direct experience of its principals, but also from the knowledge and depth of a variety of strategic partners that can provide a wide scope of services on an as-needed basis. Through these collaborative relationships, we can deliver the best available knowledge, insight and counsel needed to guide clients through the critical thinking and decision making that’s necessary in order to project or evaluate the value of its assets. nFusion’s ability to harness these resources expediently, efficiently and affordably sets it apart from all other advisors in the market today. We offer our clients a wide spectrum of services designed to help them take full advantage of all the assets, entitlements and alternatives available to strengthen the performance of their portfolio, property or project. Some of our services include REO evaluation and disposition, loan sales, receivership services, portfolio analysis, project structuring and repositioning, asset and operational management and tax and property tax appeal. Additionally, through a network of buy-side relationships, we have also been successful in delivering superior pricing in the sale of notes for the banking industry. Our breadth of knowledge and carefully developed relationships have consistently yielded attractive results in a number of areas of critical importance for our banking clients.

Welcome, New Associate Members NAI Earle Furman, LLC 101 E. Washington Street, Suite 400, Greenville, SC 29601 Contact: Jason Richards, Chief Operating Officer Phone: 864-232-9040 Fax: 864-235-4300 Email: Jason@naiearlefurman.com Website: www.naiearlefurman.com NAI Earle Furman, LLC, one of South Carolina’s largest commercial real estate brokerage and property management firms, has long enjoyed strong relationships with many community, regional and national banks. In the last three years, our team of 50 professionals has brokered over $300 million in transaction volume and has assisted multiple financial institutions with consulting, management and disposition of more than 40 REO properties. The property management division currently handles in excess of 6,000,000 sf of office, retail and industrial property including over 30 bank branches, bank offices and standalone ATM’s. NAI Earle Furman provides a full service, single point of contact for commercial real estate issues and opportunities for banks of any size.

State Bank & Trust Co. 4885 Riverside Drive, Suite 200, Macon, GA 31210 Richard Lane, Senior Vice President, Correspondent Banking Phone: 478-757-3318 Fax: 478-796-6029 Email: Richard.lane@statebt.com Website: www.statebt.com State Bank Financial Corporation (NASDAQ:STBZ) is the holding company for State Bank & Trust Company, one of Georgia’s bestcapitalized banks, with $2.75 billion in assets as of December 31, 2011. State Bank has locations in Metro Atlanta and Bibb, Houston, Dooly, and Jones counties in Middle Georgia. State Bank Financial Corporation is headquartered in Atlanta and State Bank and Trust Company is headquartered in Macon, GA. State Bank was named the top performing bank in the United States by Bank Director Magazine’s 2011 Bank Performance Scorecard, a ranking of the 150 largest U.S. publicly-traded banks and thrifts based on 2010 calendar-year financials. For additional information, please visit the Investor page of our website, www.statebt.com . A New Solution to Correspondent Banking is Closer than You Think. State Bank’s Correspondent Banking Group offers a new approach to meet the needs of community banks, providing vital support to succeed in today’s challenging economy. As your correspondent banking partner, State Bank can enable you to attract new business, navigate complex regulatory requirements and become more profitable. You’ll

have access to the expertise, resources and capacity of a partner in community banking, just like you. Correspondent banking services include: ■ Loan Participations (purchased and sold) ■ Whole Loan Purchases ■ Holding Company Lines of Credit ■ Director Loans –Assistance with Reg O Compliance ■ Loan Portfolio Strategies – Balance Sheet Management/Restructure ■ Money Market Accounts – Liquidity/Funds Diversification

State Farm Bank 3 State Farm Plaza, Bloomington, IL 61791 Mark Tilkin, Counsel Phone: 309-622-6114 Email: mark.tilkin.gzj7@statefarm.com Website: www.statefarm.com State Farm Bank received formal approval for a thrift charter from the Office of Thrift Supervision (OTS) in November 1998 with an intention to focus on consumer-oriented financial products. SF Bank is a nontraditional financial institution and doesn’t have branch offices. The bulk of direct customer instruction and product assistance is provided by SF Agents, augmented by a telephone call center, the mail, and the Internet. SF Bank offers checking accounts, interest checking accounts, money market accounts, fixed rate CDs, individual retirement accounts, education savings account CDs, health savings accounts, credit cards, gift cards, vehicle loans, home mortgage loans, home equity loans, and home equity lines of credit.

Works24, Inc. 3508 French Park Drive, Suite 1, Edmond, Oklahoma 73034 Contact: Philip Edwards, Territory Manager Phone: 919-422-7232 Email: pedwards@works24.com Website: www.works24.com Works24, formerly Bank On Hold, provides innovative digital media marketing solutions for banks all across the United States. Works24’s services are used, endorsed, and preferred by more state banking associations (10 including the NCBA) than any other digital media marketing company in the country. The company’s efficient, customized digital signage, on hold messaging and touch screen technology products enable you to maximize your communications with your customers – your captive audience, while on hold or while waiting in your lobby. Your latest products and services, community events and news can now be easily delivered directly to customers thereby increasing sales, cross sales, and upgrades quickly – increasing your bottom line. 27 Palmetto Banker

Preferred Vendors

What are Our Bankers Saying About SCBA Preferred Vendors? Thank you Flex-Pay for your extraordinary commitment to providing excellent customer service for all these years. We especially appreciate the additional help you have provided during the past few months with our recent merger. In a day and time when one-to-one customer service has faded, we appreciate the enthusiasm and confidence with which your team serves our account. – Elizabeth Dykes, Human Resources Specialist, Park Sterling Bank We first found out about the Senior Housing Crime Prevention Foundation when we were invited to attend a webinar by the South Carolina Bankers Association in the summer of 2010. My father was a career Army soldier who served in the Vietnam War so I have always been interested in providing services and support for our veterans. As a CFO, I was also looking, selfishly, for something that made financial sense for the bank. The loan to the Foundation accomplished both as we were able to support our veterans at a reasonable cost for the bank. The employees of the Foundation were extremely helpful in working through the details. They make the loan documentation and recording very easy. Since closing, we receive the interest payments on time and everything has worked exactly as promised. I have been pleased with this opportunity to support our Veterans. – Tommy Warren, Chief Financial Officer, Pinnacle Bank of South Carolina The South Carolina Bankers Employee Benefit Trust has provided me with dependable health insurance coverage during my entire banking career. There is an expectation of excellent service combined with no rate surprises! – Curtis Tyner, CEO/President, Heritage Community Bank When compared to traditional methods, BSG Financial’s Re$ubmitIt program provides a wonderful alternative for our business customers to collect dishonored or returned checks as well as utilize the efficiencies of re-presenting a check electronically to a bank account for collection. Customer service is always available to provide assistance and our business customers can track collection efforts from the comfort of their office by simply visiting Re$ubmitIt’s user-friendly website. We value our relationship with Re$ubmitIt and have been very pleased with the assistance they have provided to our business customers with regards to their collection efforts. – Chris M. Talley, Senior Vice President & Chief Operations Officer, Greer State Bank

When we first began looking for someone to handle our statement processing we contacted several fellow South Carolina banks. Hands-down SI-Solutions was the most recommended. Everyone that we spoke with that works with SI-Solutions spoke to their high level of professionalism, to their production efficiencies and to realized cost savings. While we have only been working with SI-Solutions for a few months we have found those comments to be true and we look forward to a longterm relationship with SI Solutions. – Frank M. Gadsden, SVP & CIO, Clover Community Bank As our banking organization has worked through the difficult economic environment we have faced over the past several years, we have been pleased to have partnered with Glenn Blackwood and his company, Equias Alliance, for our non-qualified benefit plans and bank-owned life insurance (BOLI) needs. The programs they helped us implement have been critical in allowing us to maintain the key members of our management team as well as effectively manage bottom line impact of those programs via the BOLI acquisition. The transition process from Clark Consulting (Glenn’s former company who decided to exit the business) to Equias Alliance was seamless and professional. They deliver outstanding service and administration expertise, such as annual reviews, monthly detailed reporting and timely updates regarding regulatory guidelines and tax law issues. In addition, their staff of experienced service professionals, CPA’s, legal and regulatory experts provides us great value as we face various questions that arise from time to time. As one of the 30+ financial institutions in South Carolina to have worked with Glenn, we understand why the South Carolina Bankers Association has chosen to endorse Glenn Blackwood and Equias Alliance and would recommend them to any South Carolina financial institution considering these programs. – Michael C. Crapps, President and Chief Executive Officer, First Community Bank Heritage Community Bank partnered with Customers Stream’s CardCash program in November of 2011 to provide customers with a 1% cash back reward for signature-based debit card purchases. CardCash provided Heritage Community Bank the ability to further position itself as a smart alternative to mega banks with high checking account fees. Our customers can earn up to $500 per year cash back just by using their debit card. Instead of charging higher fees for checking, CardCash has produced an average 63% increase to our signature-based debit swipes and a 97% increase to signature-based interchange income for the bank. Anytime we can combine cash back rewards for our customers and increased fee income for our bank we consider it a success, CardCash has provided a measurable benefit for us. – Jim Roberts, CFO, Heritage Community Bank

28 Palmetto Banker

When the SCBA changed their credit card processing to Vantiv it was the easiest transition I have ever experienced. They did the work and all I had to do was answer a few questions. I have an individual contact if I have any problems but have never had to make a call since the switch-over. Vantiv is really on top of everything. – Donna Taylor, Executive Vice President South Carolina Bankers Association

We’ve been customers of KeenanSuggs for over twenty years. We have nothing but positive things to say about Tommy and his team. Their products offerings are good, and their service and responsiveness is second to none. – William O. Buyck, Jr., Vice President, Bank of Clarendon

Palmetto Bank has worked with Affinion Group since 1978. Affinion gets it! They continue to provide innovative ideas that increase customer engagement, generate fee income and strengthen relationships and brand loyalty. We truly believe that Affinion will deliver on what they promise and their level of support is superior. We would recommend them to any bank!

Decision Dynamics, Inc. (DDI) has been a trusted and valuable partner throughout the years of our vendor relationship. For the past five years, First Citizens Bank has used DDI’s Premier eTitleLienTM electronic titling product and has been impressed with DDI’s responsiveness. When issues arise that require additional research and the involvement of local DMV offices, DDI plays a big role in helping to navigate through to a quick resolution. As a whole, the bank has benefited from the many efficiencies in our titling processes as a result of using electronic titling. – Johanna Huggins, Vice President and Loan Operations Manager First Citizens

At NBSC, we’ve been utilizing the Thumbprint Identification Program for many years and appreciate the benefits associated with the program. It not only positively links the presenter to the check, but also deters fraudsters. The Thumbprint pads are simple to use and very inexpensive. They are a proven deterrent to the “bad check artist,” reducing loss. They are also recognized by law enforcement officials for providing protection to our customers. – Sharon Duke, Senior Vice President, NBSC, a division of Synovus Bank

– Ana Miles, SVP Director of Marketing, Palmetto Bank

It’s Time to Enroll in South Carolina Bankers School Chairman Francis A. “Frank” Townsend, III, Southern Bank & Trust, Aiken, wants you to attend the South Carolina Bankers School. It will be held July 8-13, 2012 at Lander University in Greenwood, SC. Deadline for all registrants was May 1.

La st Ch an ce !S ea ts Sti ll A va ila ble !

Reasons to Enroll in 2012 ✱ No Tuition Increase ✱ Register and Pay Online ✱ More Bang for Your Buck

visit www.scbankers.org to apply 29 Palmetto Banker

Community Bankers

Community Bankers Council Overview

he Community Bankers Councilâ&#x20AC;&#x2122;s mission is to recognize the unique needs of community bankers, and to review and recommend products and services that help make community banks more profitable and efficient. A community bank is defined as an independently owned bank, operating only in South Carolina, with $750 million or less in deposits. We encourage all of our member banks to participate in an annual product review and give feedback of what they wish to see from their member association. Upon receiving a recommendation for a new preferred vendor, a very thorough review takes place before approval. SCBA and the councilâ&#x20AC;&#x2122;s Product Review Subcommittee take an in-depth look at the companyâ&#x20AC;&#x2122;s financials, references and history, and follow up with a presentation to the council. A quorum must be met to approve submission to the SCBA Board of Directors who finalize endorsement. The Community Bankers Council is made up of 18 bankers from community banks statewide, consisting of the following: â&#x2013; one member from an eligible community bank to be appointed from each of the six (6) respective geographical groups within the state â&#x2013; ten (10) at-large members from eligible community banks â&#x2013; a chairman of the Community Bankers Council, who shall also serve as a voting member on the SCBA Board of Directors â&#x2013; an immediate past chairman of the Community Bankers Council.

The Community Bankers Council sponsors two peer group sessions and one forum. The Spring and Fall Peer Group Sessions are intended to attract a smaller, more intimate group of community bankers who have the opportunity to gather with a professional facilitator to discuss and network with one another regarding current issues facing community banks. Each October, the Community Bankers Forumâ&#x20AC;&#x2122;s format allows for several speakers who cover prevalent industry issues. The upcoming events for 2012 are as follows: â&#x2013; Community Bankers Fall Peer Group: Wednesday, September 12th at the Spartanburg Marriott, Spartanburg, SC | Featuring speakers from Haynsworth Sinkler Boyd, P.A. â&#x2013; Community Bankers Forum: Tuesday, October 30th at Seawellâ&#x20AC;&#x2122;s, Columbia, SC | Speakers TBA If you have any questions regarding the council or suggestions for future focal points, speakers or events please contact Caroline Sheorn, Director of the Community Bankers Council at csheorn@ scbankers.org.

:KHQ VHOHFWLQJ D FRUUHVSRQGHQW EDQN LWÂˇV QR ORQJHU MXVW ZKR \RX NQRZ &255(6321'(17 6(59,&(6

,WÂˇV ZKDW WKH\ NQRZ Strategic Balance Sheet Management Investment Portfolio Management and Sales Asset Liability Management Clearing Funds Management Program Bond Accounting Safekeeping Fed Funds Management International Services

/HWÂˇV IDFH LW LQ WRGD\ÂˇV UHJXODWRU\ HQYLURQPHQW FRPPXQLW\ EDQNV QHHG DOO WKH KHOS WKH\ FDQ JHW 7KDWÂˇV ZK\ $OR6WDU &RUUHVSRQGHQW 6HUYLFHV KDV SXW WRJHWKHU D WHDP RI WKH EHVW SHRSOH HTXLSSHG ZLWK D SRZHUIXO PHQX RI VHUYLFHV DQG PRUH LPSRUWDQWO\ WKH H[SHULHQFH DQG NQRZOHGJH WR GHOLYHU WKHP :H VWUHQJWKHQ WKH EDQNV WKDW JURZ $PHULFD MEMBER FDIC

30 Palmetto Banker

A LO S TA R B A N K . C O M

| 803.530.6870

Compliance Corner

South Carolina State Law May Impact Banks’ Ability to Obtain Real Estate Evaluations by Nathan C. Brown, Chief Legal Officer, MountainSeed Advisors, LLC

he revised Interagency Appraisal and Evaluation Guidelines, published December 10, 2010 (Revised Guidelines), permit the use of real estate evaluations in lieu of full-blown appraisals for certain low risk-transactions, including those whose transaction value falls underneath the $250,000 minimum appraisal threshold, certain business loans with transaction values under $1 million, and certain refinancings and other subsequent transactions. And, the regulatory agencies themselves recognize that financial institutions appreciate the flexibility. However, the flexibility under Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) may be inducing banks and their third-party vendors to violate South Carolina’s appraiser licensing law. South Carolina’s appraiser licensing law is one of the strictest in the nation. On its face, it requires any person, even an internal bank employee, performing an evaluation to hold an appraiser license. South Carolina is a so-called “mandatory” state, meaning the South Carolina Real Estate Appraiser Licensing and Certification Act (the SC Act) broadly defines an appraisal as the act or process of developing any opinion of value for or in expectation of compensation, fee or other consideration, and prohibits performing an “appraisal” (as defined in the SC Act) without a license. However, unlike many other mandatory states, the SC Act does not exempt bank employees or other persons performing real estate evaluations from the requirement, even when they are otherwise complying with FIRREA and the guidance issued by their bank’s primary federal regulator. The potential penalties for violating the SC Act include fines, and even jail time. Federal bank regulations do not require that an evaluation be performed by a licensed appraiser. A footnote in the Revised Guidelines confirms that regulated institutions are not required to use state certified or licensed appraisers to perform evaluations – although they are permitted to. (See below for additional discussion on using appraisers to perform evaluations.) But federal law may not broadly trump the state licensing requirements. Most bankers and their legal counsel are generally familiar with the concept of federal preemption. The details are beyond the scope of this article, except to say in oversimplified fashion that one way (among others) that preemption can arise is through implied or “field” presumption, where Congress so pervasively regulated a field through federal regulation as to leave no room for the states. And, in some instances, nationally-charted banks and federal savings banks may be afforded additional preemption rights under the National Banking Act (NBA) or the Home Owners Loan Act (HOLA), respectively, which may not be available to state-chartered banks under the dual banking system. However, before you assume that your bank, even your federallycharted national bank or federal savings bank, can take advantage of federal preemption and ignore the SC Act, be aware that recent case law calls into question a broad application of field preemption in the context of appraisal regulation. Specifically, in a recent ruling out of the Cuomo v. First American case, New York’s highest court ruled on November 11, 2011, that the state attorney general was not preempted by FIRREA from prosecuting an appraisal management company (AMC) for violations of state appraisal regulations based on an alleged failure of certain

appraisal to comply with USPAP, even where the AMC was serving a federal savings bank. There, the court noted that FIRREA specifically envisioned a cooperative effort between federal and state authorities, and asserted that even according to the Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination Council (FFIEC), FIRREA permits the States to impose stricter appraisal standards as necessary. Although relevant Dodd-Frank provisions took effect after the facts at issue in the case, the court took the time to note in the opinion that Dodd-Frank confirms that understanding. The dissenting judge (disagreeing with the result under the pre-Dodd-Frank analysis) acknowledged that for federal savings banks, Dodd-Frank “brought about a sea change in HOLA preemption” in recognizing that HOLA does not occupy the field in any area of law. And even the defendant AMC – the party arguing that the suit was preempted – acknowledged that the suit would not have been preempted under Dodd-Frank’s new preemption standard for federal savings banks. As discussed above, the Revised Guidelines provide that a bank may use a licensed appraiser to perform an evaluation, and banks may be tempted to engage or employ licensed South Carolina appraisers to perform evaluations, but even they may not be able to perform an evaluation unless they transform the evaluation into a restricted-use or summary appraisal. The SC Act requires all licensed appraisers to “conform their professional conduct” to the Uniform Standards of Professional Appraisal Practice (USPAP). While previous versions of USPAP included a departure rule that allowed appraisers to perform limited appraisals that may have allowed for the simplified form of real estate evaluation contemplated by the Revised Guidelines, that concept was eliminated several years ago. On this issue, the Revised Guidelines cross- reference USPAP’s Advisory Opinion 13. The 2010-2011 version of USPAP contained Advisory Opinion 13, which gave guidance to real estate appraisers on performing evaluations, but required the appraiser to report the evaluation as either a restricted use, summary or self- contained appraisal. But the 2012-2013 version of USPAP eliminated Advisory Opinion 13, and replaced it with a statement that the ASB is working on the issue and hopes to have more guidance by January of 2014. Pending new developments in law, or confirmation from their legal counsel on the issue of federal preemption as it applies to real estate appraisal regulations, South Carolina banks should proceed with caution when ordering and performing real estate evaluations in lieu of fullblown appraisals, even where permitted by the Revised Guidelines.

31 Palmetto Banker

Bank News Coastal Carolina National Bank On January 23, 2012, Coastal Carolina National Bank hosted a financial literacy press conference at Horry Georgetown Technical College to announce their implementation of the EverFi financial literacy program in its community (the first of its kind in Horry County). Bank representative Robert Hucks, pictured here, was joined by SC Representative Nelson L. Hardwick and other community officials to kick-off this partnership between EverFi, CCNB and Early College High School. The bank partnered with a local-nonprofit in the area to sponsor the first high school which will begin implementation of the program that same semester by offering it to their senior students participating in their AVID program at the high school.

Congaree State Bank Congaree Bancshares, Inc., the holding company for Congaree State Bank, reports first full year profit for 2011. The Cayce/West Columbia based company, which celebrated its fifth anniversary October 16, 2011, posted a $532,868 net profit for the year ended December 31, 2011. Congaree Bancshares Inc., the holding company for Congaree State Bank, reported an improvement in basic earnings per share from $(0.29) in 2010 to $0.30 in 2011. Net shareholder equity also improved from $4.44 per share in 2010 to $5.05 per share in 2011.

First Citizens First Citizens Bank and Trust Company, Inc., and The Exchange Bank of South Carolina, Inc., both wholly-owned subsidiaries of First Citizens Bancorporation, Inc., announced last July they have consummated their proposed merger. The Exchange Bank of South Carolina has officially become part of First Citizens Bank and Trust Company, Inc. First Citizens now operates a total of three branches in Kingstree, S.C., one branch in Andrews, S.C., and one branch in Hemingway, S.C. Customers of The Exchange Bank of South Carolina will now receive expanded banking services, with access to more than 190 branches and 200 ATMs in South Carolina and Georgia. First Citizens today announced February 17, 2012 that the White House and U.S. Department of Agriculture (USDA) recognized Fort Mill-based Nation Ford Chemical and its banking partner First Citizens for the positive contributions they have made to the

economy and job sustainability in South Carolina. Representatives from Nation Ford Chemical and First Citizens were invited to attend the “White House Recognition of Manufacturing Success in Rural America” event, held Friday, Feb. 17, at the White House.

NBSC, a division of Synovus Synovus Bank, the Georgia-chartered, FDIC-insured bank, and NBSC, a division of Synovus Bank, were recently honored with 11 National Awards from the 2011 Greenwich Associates Excellence in Middle Market and Small Business Banking program. Out of 750 banks from across the country that were evaluated and eligible for this recognition, only 43 earned National Excellence Awards in 2011. In the Middle Market Banking segment, Synovus Bank and NBSC were recognized in four National categories: Overall Satisfaction, Relationship Manager Performance, Customer Service and Treasury Management. In addition to the four national awards, Synovus Bank and NBSC were also honored with two Middle Market South Regional awards for Overall Customer Satisfaction and Treasury Management. In the Small Business Banking category, Synovus Bank and NBSC received seven National awards: Overall Satisfaction, Personal Banking, Relationship Management Performance, Credit Policy, Branch Satisfaction, Treasury Management and Customer Service. In the South Regional segment, Synovus Bank and NBSC were recognized for Overall Customer Satisfaction and Treasury Management.

The Palmetto Bank Palmetto Bancshares, Inc. (the “Company) (NASDAQ: PLMT) announced that its wholly-owned subsidiary, The Palmetto Bank, entered into a Purchase and Assumption Agreement (the “Agreement”) to sell its Rock Hill and Blacksburg, South Carolina branches to Carolina Premier Bank, a North Carolina state chartered bank and wholly owned banking subsidiary of Premara Financial, Inc. The potential sale of these two branches was previously announced on December 14, 2011 as one of the Company’s strategic actions designed to align its infrastructure and expense base with its current balance sheet size, scope of business activities, and underlying revenue generating capacity of the franchise. Under the terms of the Agreement, Carolina Premier Bank will purchase real estate, equipment, substantially all of the loans, and certain other assets, and assume the deposits and lease obligations associated with these two branches. The terms of the transaction include a deposit premium to be paid to the Company at closing. The transaction, which is subject to regulatory approval and other standard closing conditions, is expected to be completed in the second quarter of 2012.

Index of Advertisers AloStar Bank of Commerce

CenterState Bank

Flex-Pay Payroll Services

Bankers School

Community Bankers Bank

Howe Construction

Credit Risk Management

Vantiv

Elliott Davis

BDC – Business Development Corp. CRS Data

32 Palmetto Banker

5 11 2

The Peoples National Bank

Wells Fargo

The American Bankers Association recognized The Peoples National Bank for its past accomplishments in helping to achieve home ownership, encouraging volunteerism, fundraising for foundations and local groups, improving financial literacy, reaching out to the underserved, building with Habitat for Humanity, and revitalizing the community. The ABA awards banks nationally for each of the above seven categories for creativity, innovation and making a profound difference. The bank was given the 2012 ABA Community Bank Award Certificate of Recognition “for outstanding service to our community,” marking the second year the bank has received this recognition.

Wells Fargo officially “rolled into Columbia” on September 28, 2011.

South Atlantic Bank BauerFinancial, Inc., a leading independent bank rating firm, has awarded South Atlantic Bank a 5-Star Superior rating for its financial performance in the fourth quarter 2011. The 5-Star rating is the highest rating a bank can receive, and again, South Atlantic Bank was the only bank in the Grand Strand market to receive a 5Star rating. The bank also earned first 5-Star ratings for its financial performance in the second and third quarters of 2011.

Atop the stagecoach: Rick Redden, Wells Fargo South Carolina Regional President, Columbia Mayor Steve Benjamin. Inside the stagecoach Ike McLeese, President & CEO of the Greater Columbia Chamber of Commerce, Holt Chetwood, Wells Fargo, Midlands Market President Mac Bennett, President & CEO of United Way of the Midlands, Kathy Heffley, Wells Fargo Midlands Community Bank President.

People On The Move by Marilynn Joyner

Leslie A. Wdowiak was promoted to vice president and director of loan servicing.

Capital Bank

First Citizens

Mitchell C. Sells was announced as commercial loan officer and vice president.

Jackie Sutton joined the bank as retail sales manager.

TD Bank

Carolina Alliance Bank

Sharon Bryant was promoted to South Carolina Banking Executive.

Cynthia Mayer joined the bank as commercial lender for the Charleston region.

NBSC

Scott E. Sharp was promoted to regional vice president for the North Coast and Wilmington regions of South Carolina.

Pamela Gilliam was named vice president and loan compliance officer.

Coastal Carolina National Bank Laurence S. Bolchoz, Jr. was named president and chief executive officer.

Countybank Merry Bagwell was promoted to vice president. Nancy Smith was promoted to vice president.

Crescent Bank Jerry O. Jenerette was named senior vice president and Grand Strand market executive.

Troy Conrad Santoscoy and William W. Wheeler, III joined the bank’s Bishopville Community Board.

SCBT, N.A. Stacy Cannon was promoted to senior vice president in the Greenville office of SCBT Investment Services.

South Atlantic Bank Karen M. Atwood Ervin was named director of loan administration. Shirley Y. Kulcsar was promoted to assistant vice president and loan administration specialist. Mandy Lischner was named teller at the bank’s main office.

William Quantz joined the bank as senior relationship manager in Charleston.

The Palmetto Bank Darlene L. Cole joined the bank as vice president and human resources benefits manager. Lynne C. Monroe joined the bank as assistant vice president and branch manager of the Spartan Centre Branch located in downtown Spartanburg.

Wells Fargo Marvin E. Robinson, Jr. joined the bank as business relationship manager and vice president.

Leah Mazurkiewicz was appointed as a teller at the bank’s main office. 33 Palmetto Banker

Good Deeds Bank of America

South Atlantic Bank

To raise awareness around the growing risk of hunger and demand for food assistance, on Thursday, December 15, 2011 more than 100 Bank of America employees volunteered at the Harvest Hope Food Bank in Greenville and Columbia, and at the Lowcountry Food Bank in Charleston. Collectively, the Bank of America teams contributed nearly 600 volunteer hours and packed 3,300 holiday boxes for families in need in the state of South Carolina. For every $1 donated to Feeding America or local food banks via feedingamerica.org/BankofAmerica or bankofamerica.com/give, the Bank of America Charitable Foundation will contribute an additional $2, up to a total match of $1,000,000. The match is in addition to a $1 million contribution to Feeding America. This support is part of the bank’s ongoing efforts to address critical economic and social issues in the communities it serves, through the bank’s Gift for Opportunity™ fund, established to extend the impact of individual donations.

South Atlantic Bank recognized eight Myrtle Beach Elementary School students for artistic excellence during a reception held at the school on Thursday, March 29. The students were honored for their depictions of the bank based on tours they had taken earlier this year. During the tours, more than 690 Myrtle Beach Elementary School students saw banking in action at the bank’s main office at 630 29th Avenue North in Myrtle Beach. After the tours, all the students drew pictures of their experiences at the bank. Bank employees then voted on their favorite works of art with eight students receiving a cash award for their work. In addition to the student awards, Janet Trupiano, the Myrtle Beach Elementary School art teacher, received a grant from the bank for future art projects. The winning artwork will be on display at the bank through the middle of April.

SCBT, N.A.

The winners are: Grade 2 1st Place: Camilla Lomeli 2nd Place: Bella Morello 3rd Place: Paulina Bautista Honorable Mention: Mohamad Aitbouhassoun

SCBT and The University of South Carolina partnered together on February 23 to improve literacy and financial education in Orangeburg County through Cocky’s Reading Express. The Souper Bowl of Caring got underway in January 2012 for the 7th annual campaign at SCBT. Bank branches statewide collected funds between January 1st and February 29th. The 2012 competition involves a new twist in that banking affiliates in three states had teams competing – South Carolina Bank and Trust in South Carolina, North Carolina Bank and Trust in North Carolina, and Community Bank & Trust in Georgia. Each bank selected a charity that feeds hungry people in their local community and the branch that collects the most wins an additional $1,500 for their selected charity.

Grade 3 1st Place: Patrick Le 2nd Place: Sophia Estepa 3rd Place: James Farley Honorable Mention: Starashia Alston

Mohamad Aitbouhassoun

Wells Fargo Wells Fargo & Company has announced that it invested over $3.1 million in more than 375 nonprofits in South Carolina in 2011. In addition, Wells Fargo team members contributed more than 10,800 volunteer hours to help their neighborhoods and communities succeed. “At a time when everyone has been touched in some way by the difficult economic environment, I am appreciative and proud of the generosity of our team members and company,” said Rick Redden, Wells Fargo President for South Carolina. “We are committed to using our financial resources and expertise, working closely with nonprofits and other stakeholders, to create long-term economic growth and help improve the quality of life for everyone in the communities we serve.”

How Can I Get My Bank News Published? It’s simple! Just e-mail your press releases and photos to: pennycothran@scbankers.org Deadlines are available at Click on About Us, then News and Publications.

www.scbankers.org

34 Palmetto Banker

Calendar

Calendar of Events June 2012

September 2012

November 2012

10-13 2012 SCBA Annual Convention & Trade Show, The Cloister, Sea Island, GA

12 Community Bankers Fall Peer Group, Spartanburg Marriott, Spartanburg

TBD

July 2012 8-13 South Carolina Bankers School, Lander University, Greenwood

August 2012

18 SCBA Call Report Seminar, Clarion Town House Hotel, Columbia 26 SCBA IRS Reporting Seminar, Clarion Town House Hotel, Columbia

December 2012 TBD

June 2013 9-13 2013 SCBA Annual Convention & Trade Show, The Sanctuary, Kiawah Island

TBD

October 2012 30 Community Bankers Forum, Seawell’s, Columbia

Jason Caskey, CPA Financial Services Practice Chair

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.

fully engaged: for you Kgml` ;YjgdafY Fgjl` ;YjgdafY ?]gj_aY Naj_afaY ǁǁǁ͘ĞůůŝŽƩĚĂǀŝƐ͘ĐŽŵ ͻ ϴϴϴ͘ϴϭϲ͘ϬϴϮϲ

35 Palmetto Banker

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

36 Palmetto Banker

Prsrt Std US Postage

PAID Columbia, SC Permit 706