Palmetto Banker Spring 2012

Spring

The South Carolina Bankers Association

Issue 2012-1

Palmetto Banker

An Industry Progress Report

page 6

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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 Creating the Paperless Bank

Meet Your Legislators page 14

page 6

President & CEO

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

Linda W. Parker Executive Vice President, Financial Planning

Donna S. Taylor

Annual Convention

Executive Vice President, Employee Benefit Trust/ SC Bankers School

page 18

Teresa D. Taylor Senior Vice President, Member Services, Conventions/ Conferences

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

A. O’Neil Rashley, Jr.

Legislative Profile

4

Cover Article Creating the Paperless Bank

6

Amber Setzler Barnes

Feature - The New Commandments of Strategy & Execution

8

Director, Community Bankers Council M. Caroline Sheorn

Feature - Healthy Customer Relationships

10

Young Bankers - Scholarship Winners

13

Meet Your Legislators

14

SCBA BankPAC

16

Bankers School

17

Annual Convention

18

Welcome, New Associate Members

23

People On The Move

23

Bank News

24

Good Deeds

25

Calendar of Events

27

Vice President, Communications Director/Editor, Palmetto Banker

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

Carolyn E. Laffitte Director, Government Relations

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 © 2011

3 Palmetto Banker

Legislative Profile

Alan Wilson South Carolina Attorney General

A

lan Wilson was elected South Carolina’s FiftyFirst Attorney General on November 2, 2010 and took office on January 12, 2011.

Prior to his election, Wilson spent his legal career as an Assistant Solicitor, an Assistant Attorney General, and as a civil litigator in private practice with Willoughby & Hoefer, P.A., in Columbia, SC Growing up, Wilson’s parents, Joe and Roxanne, stressed the importance of service to all four of their sons. Each has achieved the rank of Eagle Scout and each presently serves our nation in uniform. Immediately following his graduation from Francis Marion University in 1996, Alan joined the South Carolina National Guard. And over the past fourteen years, Alan has been promoted to the rank of Major and received the Combat Action Badge for leading troops through enemy fire in Iraq.

A 2002 graduate of the University of South Carolina School of Law, Wilson began his legal career working for the late Judge Marc H. Westbrook before prosecuting crimes across South Carolina including violent crimes, white collar crime, public corruption, DUI, domestic violence and child abuse as both an Assistant Solicitor and as an Assistant Attorney General.

In 2009, Wilson left the Attorney General’s office and entered private practice as a civil litigator with the firm of Willoughby & Hoefer in Columbia, SC. Today, in addition to serving as Attorney General, Wilson serves as a Judge Advocate General in the National Guard where he provides legal support for soldiers and assists in the prosecution military crimes.

Wilson and his wife, Jennifer, have two young children, Michael and Anna Grace.

This is Wilson’s third stint in the Attorney General’s Office.

Previously, he served the office as a prosecution division intern under Charlie Condon and as an Assistant Attorney General under Henry McMaster.

Jason Caskey, CPA Financial Services Practice Chair

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5 Palmetto Banker

Cover Article

Creating the Paperless Bank − An Industry Progress Report

by Tom Cobb and Mike McGinty, FIS Consulting Services

The results of a recent survey conducted by FIS Consulting Services gauges the progress mid-tier banks have made toward becoming completely paperless institutions and offers insight into untapped productivity gains. The conclusions drawn from this research validate the neefor a comprehensive approach to paperless banking and confirm that a fragmented, piecemeal approach will not generate maximum return on investment (ROI).

The Survey Says With significant progress made in all forms of electronic migration, financial institutions now must collectively swivel their sights at imaging as a comprehensive productivity tool − and ecological enabler. Phrases such as paperless banking and Enterprise Content Management (ECM) come up in cost savings discussions as bankers seek cost-effective practices to offset sluggish revenue growth.

Recently, FIS measured the progress banks are making toward becoming fully paperless entities. In this survey we measured banks’ progress and asked their justification for investing in document imaging solutions. The findings reveal much opportunity exists to take a comprehensive approach to paperless banking. The following statistical data highlights important survey findings and offers observations on imaging best practices based on the experience bankers gained through Imaging-enabled business transformation projects.

More than 98 percent of banks surveyed employ some form of imaging today. However, imaging is primarily employed in the deposit world, to a lesser extent in lending and rarely in wealth management.

The good news is banks do plan to expand the use of imaging across a greater portion of their organizations. Nearly 82 percent of banks plan some imaging expansion with the graphic below highlighting functional areas considered.

Barriers to Becoming a Paperless Bank

Contrary to Popular Opinion One specific barrier to imaging’s success borne out in the survey is that a majority of bankers anticipate centralizing document capture within their organizations. And, many of the mid-tier banks surveyed underestimate the potential impact going paperless can have on their bottom line. The predisposition to centralizing the imaging of documents is shown in the graphic below.

Where will image capture occur?

Contradicting this graphic is our experience with banks that incorporate imaging at the point the document enters the bank.

These projects garner much greater savings as they enable entirely new business processes. In fact, these imaging initiatives that become reengineering efforts stand to generate 5 − 6 times the financial benefit of centralized imaging implementations.

Functional Areas Planning Image Capture

Creating a Comprehensive Initiative Barriers to becoming a paperless bank according to banks surveyed include overcoming ingrained business processes and inadequate business objectives for the initiative.

6 Palmetto Banker

Analysis of the imaging survey results indicates a lack of understanding of the need for business process-driven improvement and the size of the expense savings available. Let’s take a look at the difference

between the traditional approach to imaging and that of a comprehensive enterprise content management initiative.

Traditional Image Capture – A Piecemeal Approach The piecemeal approach does not follow or rely on bank-wide standards for Imaging. Rather individual departments drive their own Imaging of documents. Multiple Imaging technology platforms exist across the bank and only a storage repository may be shared in common.

In a piecemeal effort, the technology often drives the initiative and seldom do business processes change. Consequently these single point Imaging solutions create silos of electronic images and paper still moves throughout the banking organization. The paper file continues to exist as the tail the wags the proverbial dog.

The effect on productivity of a piecemeal approach can lessen efficiency gains and actually create redundant tasks with the introduction of new technology. Let’s take a look at the elements of a comprehensive enterprise-wide approach to Imaging.

Enterprise Content Management – A Comprehensive Approach The Enterprise Content Management approach creates a bankwide strategy for strategic Imaging initiatives. With ECM you create standards followed by the entire organization and apply to not only the Imaging and the underlying technologies, but to processes and people in the bank. The ECM approach looks to stop the movement of paper documents at their first point of first contact with the bank.

Changing business processes is the driver for this comprehensive approach as automated workflows are designed to meet or exceed business requirements. Technology serves as the enabler of re-engineered business processes, not the driver of single silo Imaging solutions. Digital forms and documents are the norm and most paper is shredded if in fact not even created.

significant process improvements and annualized savings of close to $3 million.

■ Improved service levels ■ Cycle time reductions – elimination of non-work time – Lending pre-close: 2 – 12 days – Lending post-close: 0 – 15 days – Deposit services: 1 – 13 hours ■ Developed implementation plan with timeline for all changes ■ Projected annual benefit of approximately $2.8 million ■ Projected ROI approximates 40 percent

Getting Started The first step to launching a comprehensive imaging (or ECM) initiative is to understand where you are relative to your institution’s paperless strategy. From that assessment you can form a road map for a paperless bank.

With road map in hand, then collect and analyze pertinent process-based data and document the movement of paper between branches, loan offices and central departments − all affected departments of the bank. Then identify redundancies and inefficiencies where possible. Interview executives, managers and process owners to understand and validate information gathered and any special processing requirements. From this initial plan you are ready to launch a comprehensive, non-piecemeal approach to imaging within your bank.

About the Authors Mike McGinty and Tom Cobb are both Senior Consultants with FIS Consulting Services.

Expected Results from a Comprehensive Approach Banks taking a comprehensive approach to their Imaging initiative stand to gain in faster processes and reduced operating costs.

The following are documented expectations from a comprehensive paperless banking initiative from a $5 billion bank, highlighting

Mike McGinty

Tom Cobb

7 Palmetto Banker

Feature

The New Commandments of Strategy & Execution How to Lead the Bank toward a Successful Future

by Chris Bledsoe, CEO & Founder, Banker’s Dashboard

S

enior management teams can no longer operate the same way they have in the past. Of course, external market factors can’t be controlled, but CEOs and CFOs must focus on what they can command and start to run the bank like a retail business. You need to be looking at the institution’s performance daily and down to the branch level; something you’ve never really had to do in the past. Operating your institution in this way is going to make the difference in securing its position as a successful bank of the future—and it means thinking differently in your approach to strategy and execution.

Setting a Clear Strategy Gone are the days of annual strategic planning retreats where you looked five years ahead without discussing any specifics about how you’d actually get there. The new strategic plan is one that you and your team lives by and lives up to. You review it quarterly and execute on it every day. Here’s what to consider in setting a clear strategy.

1. Information gathering. What is the bank’s ultimate goal? Why was it founded in the first place—to fulfill what need? What do you want the bank to look like in 12 months? Brainstorm ideas for your strategic plan as a management team. For each option proposed, assess what the bank will gain and the risks associated with it. Be specific and evaluate everything. Confirm that you have the infrastructure and resources in place to support the proposed strategy. And remember… this is not the five-year strategic plan. You’re determining what the team will focus on now, in the months, ahead to sustain the bank.

2. Strategic planning. Once you’ve solidified and prioritized your ideas for the plan, discuss it with your board and then pare the list down to two or three critical areas of focus—and be specific. Consider examiner expectations too; they’ll want to see that projections and forecasted numbers are aligned with your strategy. As part of your new process, you will be reviewing and tweaking the strategic plan with the board on a quarterly basis.

3. Documentation. Ensure that you thoroughly record your strategic plan and refer to it often. Also, your projections and incentive plans need to support the strategy. Documenting the plan will help you constantly drive the strategy home with the Board and your entire team, keeping everyone accountable. It’s an absolute requirement for examiners as well.

4. Implementation. Your strategic plan should be used as a tool for driving the bank’s performance. If you don’t execute on it, then you are really wasting everyone’s time. The best way to ensure that you 8 Palmetto Banker

execute is to communicate specific goals to employees and monitor progress as part of your daily routine. Keep in mind that bank of the future CEOs and CFOs are not number crunching; they are using their time to analyze how the bank is performing and finding adjustments today that can affect results tomorrow.

5. Keep it SIMPLE! Don’t make planning so complicated that you can’t get it done. As the CEO, it’s up to you to lead the strategic planning process and create a culture where everybody in your organization is thinking about the plan and delivering on it each day.

Executing the Plan Ninety percent of strategies fail due to poor execution, according to Harvard Business School research. Why? I believe the breakdown for community banks comes from several factors. Number one, you and your management team most likely spend a lot of your day working on “urgent” items, but not the “most important” ones. Your phone will always be ringing, and daily fires will always need your attention. But you can’t let that stop you from delivering on a strategy that will mean bottom-line results for the bank.

Successful execution lies squarely in your hands. You’ve already determined where you want the bank to be and set a clear strategy… now break it down and get it done. Here’s how.

1. Identify key drivers. What will you need to do to achieve the bank’s top two or three strategic objectives? Measure and track these performance factors in order to see how well you’re doing. They will be unique to your bank, and they are absolutely necessary to help you predict where the bank is headed. Everyone, including your team and your board of directors, should be watching these drivers. What you can measure, you can manage.

2. Make an action plan. You know what needs to be done. Now, assign actions to every person on your team—they should all have a role in the strategy and be held accountable for helping to achieve it. The goal is to have everyone thinking about and taking action on the strategy every single day. Be specific about your expectations and make them personal.

3. Communicate constantly. Repeat the banks’ goals often. When you set clear goals and communicate your progress (or lack of it), it’s amazing what can happen. CEOs and CFOs must be closely managing their people and monitoring activity on a regular basis, comparing where the team is to where it should be, and addressing any obstacles that may pop up. Empower people and then hold them accountable for results. Give all the team members personal scorecards so they can easily track results and make timely decisions. You also need to communicate to your board. Most directors don’t understand banking, so help educate them.

4. Own the roadblocks. Always think ahead to what could slow you down. Spend a few minutes a day with some tough questions. What

keeps you up at night? Is it loan quality, people problems or marginrelated issues? What’s the worst thing that could happen to affect the bank’s strategy? Roadblocks will occur, and more are just waiting around the corner. As the CEO/CFO, you need to deal with them quickly. If your organization is resisting change, handle the issue now.

If you’re worried about an external event, start making adjustments to offset the potential impact.

5. Monitor execution daily. Ask yourself…what are you doing every day to keep your finger on the bank and its plan? Make it a habit to spend 10 minutes a day reviewing how results are tracking and making any needed course corrections. When you spot a “job well done” or a “coaching moment”, make a few phone calls to team members. Provide feedback and ask pertinent questions. Understand which branches are helping and hurting the bank, then apply the best practices across the network. Review trends so that you’ll have an accurate picture of where the bank is headed and react accordingly.

And, keep in mind that technology can play a big part in making this an easier process.

Resourceful. Responsive. Reliable.

Celebrating 25 Years as Your Strategic Partner, Never Your Competitor

The moral of this story is that you must begin doing things differently—and now! It’s tough out there and all banks are dealing with thinner margins and more regulatory issues than ever before. But don’t lose sight of what’s most important. Consider the commandments above as you adapt your approach to set a clear strategy for your institution and take action every day to deliver on that plan.

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Feature

Healthy Customer Relationships Drive Long-term Loan Growth and Near-term Deposit Growth: Why a Bank’s PR Function is a Hidden Weapon in the Quest for Growth

by Jean Creech Avent, MS and Eyun-Jung Ki, PhD

Questions and Answers: Awareness and Relationships

W

hy did John Helmers, founder of Swiftwater Capital, a South Carolina-based asset management firm, agree to write a December 2011 blog for CNBC.com titled: Helmers Predictions 2012: Why Financials are on the cusp of a big 2012? Why did Catherine Madden, Senior Research Analyst, IDC Energy Insights, and Timothy Voyt, Director of Global Energy Program, EMC agree to spend one-hour conducting a webinar titled The End Of “Easy Oil:” How IT Is Critical To Maintaining Successful E&P Operations for Hart Energy publications’ readers?

Why did Bill Strang, Vice President of TOTO USA agree to be one of the keynote speakers at the recent inaugural Next Generation Manufacturing event held in Atlanta, Georgia?

After considering all of the possible answers to those three questions, the fundamental answer can be boiled down to one concise point: awareness.

Helmers’ firm and a headshot of him as well as his thoughts and ideas were exposed to millions of affluent business people and investors, as CNBC.com is ranked highest of stand-alone business web sites visited and read by people with household incomes of more than $100,000. Madden and Voyt were directly interacting with potential clients who cared about a specific energy topic. Strang was networking with important peers, corporate constituents, and media, resulting in a positive profile article about Toto USA several weeks later in the Atlanta Journal Constitution.

The next question and its answer are even more telling. Why do these people want to generate awareness through tactics like: publicity, webinars, speaking opportunities?

The answer can be boiled down to one concise point: relationships.

If a tree falls in the forest and no one hears it, does it make a sound? The same question can be asked of businesses: If a company makes a product or offers a service, and no one is aware of it, can the company make money?

Awareness begins a relationship. Relationship begins a business transaction. Those two critical aspects of the stakeholder lifecycle are the fundamental domain of the public relations profession, thus the crux of the business case for public relations.

Awareness, Relationships and Financial Rewards Furthermore, in addition to leading an organization’s effectiveness, including helping resolve conflicts between the organization and its publics, improving its image, etc., healthy organization-public relationships lead to financial rewards. Influencing the financial outcomes of an organization moves public relations away from being a cost center toward being a strategic necessity.

To add analytics to the discussion around the business case for public relations, we launched the Customer Relationship Index in 2009. The intention of the Customer Relationship Index is to be 10 Palmetto Banker

an annual benchmarking tool for public relations professionals to use to articulate value. Each industry and company included on the Customer Relationship Index receives an individual Customer Relationship Score. The first industry on the Index is banking. Let’s look at the specifics for the results of the 2010 Index.

Bank/Customer Relationships and Recent Economic Woes It’s universally recognized that the banking industry is relationship based, so much so that the word relationship is nearly bankrupt in meaning due to its overuse throughout the industry. A seasoned banking reporter who works for one of the global news wires told us drolly, “All banks say they’re a relationship-based bank The relationships a bank has with one of its primary stakeholder groups, customers, has been tested since 2008, the onslaught of the recession.

On-going bank failures, constant high unemployment rates, and consumer cautiousness are the remnants of the recession and, going into 2012, continue to have an impact on a relationship between a bank and its customers. You know the numbers: In 2009 there were 140 bank failures and 2010 there were 157 bank failures. In 2011, 92 banks have failed as of December 16, 2011, costing $7.2 billion. What’s interesting, though, is that 48 percent of the 2011 bank failures were located in the nine-state Southern region of the country. For example, Georgia (23 2011 bank failures) and Florida (13 2011 bank failures) are followed by South Carolina (three 2011 bank failures).

In 2010 and 2011, the national unemployment rate has stayed above 9.0 dipping below only a couple of times.

Unemployment has hit certain states much harder. For the past two years South Carolina and Georgia have reported unemployment levels well above the national average, with some counties reporting unemployment in the 20 percent range. Nationally and locally, that number is expected to pop back up in the first quarter of 2012. Furthermore, Europe’s economic tarantella is a continuing cause for concern. Keith Ordan, staffing partner at The Intersect Group, a national staffing and consulting firm, says that “all [employment] bets are off, if Europe melts down.”

Just as consumers have started to feel more confident, an economic blow occurs. The dramatic ups and downs are reflected in The Conference Board’s Consumer Confidence Index, which has been erratic for the past two years.

Empirical Research What’s the impact of these on-going economic swells on the bank-customer relationship?

By conducting empirical research of the relationships during the third and fourth quarters of 2010, we find the answer. Participating in the research are the top six commercial banks as defined by banking industry business intelligence firm, SNL Financial: Bank of America,

Bank of New York Mellon, CitiGroup, J.P. Morgan Chase, U.S. Bancorp, Wells Fargo (Wachovia). A single category for local community banks is included.

Relationship indicators include: control mutuality, satisfaction, trust, and commitment. The research evaluates attitude and behavioral intention to test the impact of relationship indicators on attitude and behavior, like word of mouth referencing. Additionally, correlations between bank financial data and the relationship indicators are analyzed. More important, cause-effect model, which tests the predictability of relationship on attitude and behavior, was performed by structural equation modeling.

Following are highlights of the empirical research outcomes: ■ Satisfaction is the most influential relationship indicator of customers’ supportive attitude toward all of the participating banks. That is, customers demonstrating higher levels of satisfaction will be more likely to show more positive attitudes toward the bank.

■ Surprisingly, this research reveals that control mutuality—the power balance between customers and their banks—either does not impact bank customers’ supportive attitudes or in some cases, even negatively influences their attitudes.

■ Across all of the banks, customers’ attitudes have the most significant and positive influence on their behavior intentions or even actual behaviors.

■ For the second year in a row, and surprisingly, perception of trust among bank customers has no significant impact on customers’ attitudes toward the banks with the exception of two banks, Bank of America and CitiGroup. Only Bank of America and CitiGroup customers demonstrated a correlation between perceptions of trust and attitudes toward their banks.

■ While the majority of participating bank customers believe their banks treat them fairly and justly, most do not believe that they have much influence with the decision-makers at their banks.

■ Among the participating banks, customers at Bank of America feel that they have the least influence with the decision-makers at the bank. In comparison, in 2009, customers at CitiGroup felt like they had the least influence with the decision-makers at the bank.

■ For the second year in a row, the research shows that local community bank customers rated their banks more positively across all of the relationship indicators, attitude, and behavioral intention than did customers of larger national banks.

■ Customers of the local community banks showed the highest levels of satisfaction, trust, commitment, and control mutuality, which are the relationship indicators. Out of a nine-point scale, the average score across the four relationship indicators exceeded seven (7). For the bigger banks, the average score was closer to six (6).

■ Customers at the local community banks provided the highest ratings of overall quality of relationship with the bank. In addition, the average length of time that customers had been banking at the local community banks was over 15 years, while the average length

of customers banking with the national banks was two (2) to three (3) years.

Financial Analysis We also conducted a financial analysis of the results of the 2010 Customer Relationship Index.

The financial analysis summarized the five-year financial performance of each publicly traded bank. All but the allinclusive local community bank category; it isolated key financial performance indicators using measures of absolute dollar performance, growth percentages, and financial ratios; and finally it attempted to correlate these financial performance indicators back to the bank industry’s 2010 Customer Relationship Score.

Table 1 outlines the financial indicators.

Table 1

Measure

Rationale

• Revenue net of interest expense and provision for credit losses in dollars (2010) • Earnings before tax excluding unusual items in dollars (2010) • Net income dollars (2010) • Total Asset dollars (2010) • Gross loan dollars (2010) • Net loan dollars (2010) • Total deposit dollars (2010)

Are banks with higher Customer Relationship Scores larger and more profitable in absolute terms? Do they attract more depositors and make more loans in absolute dollars?

Long and short-term (5, 4, 3, 2, and 1 year) growth in revenue, earnings, net income, assets, gross loans, net loans, and total deposits.

Are banks with higher Customer Relationship Scores growing more quickly than those with lower relative scores?

Do banks with higher Customer Selling, general, and administraRelationship Scores have lower tive cost margin (% of revenue) Do banks with higher Customer relative costs to serve their over 5, 4, 3, 2, and 1 year(s).

Relationship Scores have higher customers? returns?

Earnings before tax and unusual items margin (%) and net income margin (%) for the 5, 4, 3, 2, and 1-year average(s).

Do banks with higher Customer Relationship Scores have higher profit margins?

Return on assets (%), Return on Equity (%) for 5, 4, 3, 2, and 1-year average(s).

Do banks with higher Customer Relationship Scores have higher returns?

11 Palmetto Banker

Feature The correlation coefficient was determined for the overall average Customer Relationship Score relative to the measures in the previous chart. Correlation coefficients indicate the tendency of the performance measures to vary with the Customer Relationship Score where: • 1 = Perfect correlation between bank financial performance and the Customer Relationship Score; • 0 to 1 = The bank financial performance tends to increase with the Customer Relationship Score; • 0 = The bank financial performance and Customer Relationship Score do not vary together at all; • 0 to -1 = Bank financial performance and Customer Relationship Score tend to move in opposite directions; • -1.0 = Perfect negative or inverse correlation between bank financial performance and the Customer Relationship Score.

Findings Normalized financial performance ratios indicate the public banks’ financial performance was generally positively correlated (or negatively correlated, in the case of expense) with the Customer Relationship Score – meaning that financial performance tends to improve with Customer Relationship Scores. The strongest correlations were as follows: Bank Financial Performance Indicator 2010 Earnings Before Taxes

Correlation to Customer Satisfaction Score 0.92

(EBIT) Margin 2010 Net Income Margin

0.87

2010 Return on Assets (ROA)

0.99

2010 Return on Equity (ROE)

0.90

2010 Selling, General, and Admin

(0.67)

(SG&A) Margin

Specific 2010 results follow: • Profitability increases with increased Customer Relationship Scores (i.e. costs are controlled while sales are increasing).

• For the second year in a row, the results of the financial analysis show that short-term returns on assets (ROA) and equity (ROE) increase with increased Customer Relationship Scores (i.e. a bank is more efficient and more profitable); • Selling, general, and administrative (SG&A) expense levels tend to decrease as the Customer Relationship Score increases (i.e. satisfied customers are less expensive to service) • Long-term loan (gross and net) growth tends to increase slightly with the Customer Relationship Score. Interestingly, in the 2009 survey, long-term loan growth tended to increase much more significantly with the Customer Relationship Score.

• Near-term deposit growth tends to increase moderately with a Customer Relationship Score;

12 Palmetto Banker

So What?

This article contains a great deal of information. For just a few brief minutes, pull the camera back from your daily to do list.

Think about your bank’s public relations strategy. Does it include generating awareness? Does it include building or cultivating healthy relationships with the key publics (i.e. stakeholders)? We’re willing to bet that the answers are “yes”.

Why this article and public relations matters is that a strategic public relations plan improves your bank’s relationship with key stakeholders. Your bank’s satisfaction levels will increase and in turn customers’ attitudes become more supportive and positive. This result drives positive word of mouth referencing and increases the length of time customers stay with your bank. In addition, your bank, in the short-term, will become more efficient and profitable because ROA and ROE are expected to increase in correlation with the execution of the public relations strategy.

Although executing the right tactics is important, evaluating relationship quality with the key publics on a regular basis should not be ignored. Organizations, particularly in relationship based industries, should conduct relationship evaluation at least once a year while bi-yearly evaluation is recommended. The outcomes of relationship evaluations give more concrete ideas of where public relations tactics should be focused and it gives real insight on behaviors and intended behaviors. For example, if satisfaction is found to be a key indicator of relationship but its scores are low, the public relations professional would know to consider ways of improving its stakeholder’s satisfaction.

If you want more information about the criticality of measuring relationships, please contact us. We’d enjoy a stimulating conversation.

Jean Creech Avent is the CEO and founder of OrgPR LLC, a full-service marketing communications, public relations and research firm.

Headquartered in Atlanta, Georgia, OrgPR services business-to-business clients nationwide.

It specializes in working with financial services companies. Jean is a Greenville, SC native, receiving her undergraduate degree from Converse College, Spartanburg, SC and graduate degree from Syracuse University, Syracuse, NY. She may be reached at jean@orgprllc.com or 770-862-7978.

Dr. Eyun-Jung Ki, Ph.d., is OrgPR LLC’s lead researcher. Dr. Ki also is an assistant professor of public relations in the College of Communication & Information Sciences at the University of Alabama. In addition, Dr. Ki is a Fellow, The Plank Center for Leadership in Public Relations. She is considered by the communications field a rising star in the relationship measurement field and has been published widely in this area. She received her undergraduate degree from Sookmyung Women’s University in Seoul, Korea and her Master’s and Doctorate degrees from the University of Florida.

Young Bankers Division

Scholarship Winners

T

o encourage and promote excellence in the field of banking and finance, the Young Bankers Division of the South Carolina Bankers Association provides annual scholarships to deserving South Carolina students pursuing a career in banking, finance, and/or accounting.

Over the last twenty years, the Young Bankers Division has raised funds to establish scholarships for deserving students enrolled in the school or department of business administration. The candidates must possess a strong interest in the financial industry. This

past year, through the Young Bankers Division Scholarship Golf Tournament, the South Carolina Bankers School senior class fundraiser, and the SCBA Board of Directors match, these efforts raised $22,000 in scholarship money and was awarded to twenty students.

These deserving students demonstrated poise, passion, and financial acumen, as well as a financial need for tuition assistance. Our goal is to discover the best and the brightest in South Carolina and award the bankers of tomorrow with scholarship money to assist them today.

Congratulations to ourWinners!

Chaniece Applewhite – Francis Marion University

John McAfee – Clemson University

Cameron Coker – Francis Marion University

Adrian McClellan – Wofford College

Emily Dobson – Wofford College

Brandon Morgan – Francis Marion University

Stephen Gary – Furman University

Julia Mullins – Coastal Carolina University

Ava Green – Francis Marion University

Victoria Neumon – Morris College

Stewart Gress – The Citadel

Abbagayle Stevenson – Columbia College

Shatonya Griffin – USC Upstate

Feddie Strickland – College of Charleston

Brenley Hardin – Clemson University

Diqwuan Thompson – Claflin University

Sim Harmon – Wofford College

Eliza Truett – Presbyterian College

Kirsten Lee – Clemson University

David Wilson – Clemson University

These students were recognized during Banking Careers 101, (on February 1), at Seawell’s, Columbia. Each year the Young Bankers Division hosts a one-day event for college students to learn about banking as a career. College and university students throughout the state attend Banking Careers 101 to hear bankers from all areas of the bank explain the functions of their jobs.

13 Palmetto Banker

Meet Your Legislators

2012 Legislative Reception On January 10, 2012, the members of the South Carolina Bankers Association made their way once again to the beautiful Columbia Museum of Art to entertain the members of the 2012 General Assembly and SC judiciary. The meet-and-greet, which attracted nearly 450 lawmakers and bankers, was created many years ago to bring SCBA bankers and associate members together with policymakers in an effort to address industry issues in a casual setting. This popular annual event, held under the astonishing Dale Chihuly chandelier in CMA’s lobby, is historically hosted by our bankers the opening night of the legislature’s session.

Representative Steve Mo ss and Neil Rashley, SCBA

and Senator Harvey Peeler t Chairman Sharon Bryant, Firs Citizens

as, , Senator David Thom Amber Barnes, SCBA n aro Sh n ma air Ch BA, and Lloyd Hendricks, SC s Bryant, First Citizen an Sharon Citizens, Chairm Jim Apple, First nator Jim Se . .S U d tizens, an Bryant, First Ci DeMint

and Stan m Hodges Ji r o n er v Go ells Fargo Gibson, W

Johnson, Representative Kevin Johnson, Kimberly Carl ative Bank of Clarendon, and Represent Anderson

Attorney General Alan Wilson, Frank Townsend, Southern Bank & Trust, Sam Erwin, The Palmetto Bank, and Randy Carmon, Vista Bank

rtis , State Treasurer Cu Mike Brenan, BB&T te Sta ans, Office of the Loftis and Justin Ev Treasurer Senator Billy O’Dell, Leon Patt erson, The Palmetto Bank, and Representat ive Carl Anderson

d Kim ki Setzler an Senator Nik a ic er m ank of A Wilkerson, B

14 Palmetto Banker

Senator David Thomas and Representative D eborah Long

Lloyd Hendricks, Representa tive Bakari Sellers and Sam Erwin, The Palm etto Bank

Ten Ways to Make Effective Contact with Your Legislator

by Lloyd I. Hendricks, SC Bankers Association

ve ne Gillespie, Representati Senator Greg Ryberg, An ftis Lo t igh Dw ve resentati Harold Mitchell and Rep

tor Larry Martin, Representative Dwight Loftis, Sena tative Jerry Govan esen Congressman Joe Wilson and Repr

W. W. Coleman, The Citizens Bank, Neal Anderson, Anderson Brothers Bank, Blak e Gibbons, The Citizens Bank, and Tommy Bouchette, BNC Bank

Representative Todd Rutherford, Amber Barnes, SCBA, Representative Derham Cole, Jr., Representative Deborah Long, Attorney General Alan Wilson, Representative Robert Brown, Representative David Mack and Lloyd Hendricks, SCBA

In 1989, Lloyd Hendricks wrote a brief guide on ways to go about contacting your legislator. Since that time, the article has appeared in over 15 various trade publications and we have received numerous requests for reprints. Written from years of experience in the House, “Ten Ways” offers a very specific approach to effective contact with your legislator. With this in mind, we are re-printing Lloyd’s article in hopes that it will be beneficial to our Contact Banker System.

1. Don’t wait to talk to your legislator in the lobby of the State house.

The basic steps are to get involved and to start at home.

• Make a commitment to good government.

• Support a candidate – pick one with ideas that are compatible with yours.

• Talk to your neighbors and friends.

• Make sure that you and your family and your employees and co-workers are registered to vote because government is only as good as you make it.

2. Don’t go to your legislator to ask for help until you know what you want.

Work out your problems, get a good consensus among your industry and speak united. Nobody follows an unsteady trumpet. Everyone has a general idea of what he wants, but you should have your research done and be ready with specific facts. After you determine that need, consensus and policy, set up a strategy to implement the course of action. Look for potential support and opposition.

• Have the right person contact the right legislator. This should include follow-up and supporters should be briefed.

3. Don’t communicate with your legislator on a crisis basis. Share information periodically and stay in constant communication.

• There is great competition for the time of a government official.

• If changes occur in the legislation you propose, let your legislator know immediately.

4. Don’t be dictatorial.

• Have some humility.

• Be persuasive instead of antagonistic.

• Remember that once you’ve made a House member or Senator mad, your chances of passage are nil.

5. Don’t be the sponsor of just a certain group of legislators.

• Approach each one individually.

6. Don’t ever make a false statement or be dishonest (not even a shade).

Silence will not get you in trouble, and if you’re not sure of something, don’t make a statement that could later cause you to lose support.

7. Don’t threaten a legislator. (For example, “If you don’t help us with our legislation, we’ll never vote for you.”)

8. Don’t just give one side either. Let your government official know what the opposing view is.

9. If you’re writing to a legislator and the explanation is complex, be sure to include a good summary that he can use before his committee and his constituents.

• Put the summary on the front page.

10. The question for you is not, “Do you know your legislator?” The question is “How well does your legislator know you?” Get involved.

I have always believed we can change ourselves and the lives of others for the better if we care enough to make the effort, and if we have the faith and desire to make our political system, our Constitution, and our laws work.

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BankPAC Bank PAC

South Carolina Bankers Association 2011-12 BankPAC Honor Roll Thank you to the following banks, their directors and employees who supported the banking industry by contributing to the 2011-12 SCBA BankPAC campaign raising a total of over $57,000.00.

Your support is graciously appreciated.

Abbeville Savings & Loan, Abbeville

Home Federal Savings & Loan, Bamberg

Ameris Bank, Columbia

Kingstree Federal Savings & Loan, Kingstree

Anderson Brothers Bank, Mullins

Mutual Savings Bank, Hartsville

Bank of America, Columbia

NBSC, Columbia

Bank of Anderson, NA, Anderson

The Palmetto Bank, Greenville

The Bank of Clarendon, Manning

Palmetto State Bank, Hampton

Bank of Travelers Rest, Travelers Rest

Park Sterling Bank, Greenwood

Bank of York, York

Peoples Bancorporation, Easley

BankGreenville, Greenville

Pickens Savings & Loan, Pickens

BB&T, Columbia

Provident Community Bank, Rock Hill

BNC, Myrtle Beach

SCBT, N.A., Columbia

Carolina Alliance Bank, Spartanburg

Security Federal Bank, Aiken

CBC National Bank, Beaufort

Seneca National Bank, Seneca

The Citizens Bank, Olanta

South Atlantic Bank, Myrtle Beach

Citizens Building & Loan, Greer

Southcoast Community Bank, Mt. Pleasant

Clover Community Bank, Clover

Southern Bank & Trust, FSB, Aiken

CoastalStates Bank, Hilton Head

Southern First Bank, N.A., Greenville

The Commercial Bank, Honea Path

Spratt Savings & Loan, Chester

Community FirstBank of Charleston

VistaBank, Aiken

Congaree State Bank, West Columbia

Woodruff Federal Savings & Loan, Woodruff

Cornerstone National Bank, Easley Countybank, Greenwood Crescent Bank, Myrtle Beach Enterprise Bank of SC, Ehrhardt First Citizens, Columbia First Community Bank, Lexington First Federal, Charleston First Federal of SC, FSB, Walterboro GrandSouth Bank, Greenville Heritage Community Bank, Hartsville

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SCBA BankPAC Board of Directors Michael R. Brenan, BB&T, Columbia, Chairman J. Glenn Anderson, Spratt S&L, Chester William J. Cook, Abbeville S&L, Abbeville William G. â&#x20AC;&#x153;Garyâ&#x20AC;? Horn, CBC National Bank, Beaufort J. Thomas Johnson, Citizens B&L, Greer Curtis Tyner, Heritage Community Bank, Hartsville

Bankers School

Register Today for the Graduate School of Banking at LSU

F

or over a half century, the Graduate School of Banking at Louisiana State University has been a major provider of advanced financial education in the United States.

More than 14,900 executives have successfully completed the program which is held each spring on the LSU campus in Baton Rouge. The School’s purpose is to fill the need for graduate level study by bank officers and others meeting admission requirements leading toward a broader knowledge and understanding of major banking functions.

Completion of the program has become a requisite to professional advancement in many banks. Executives at multi-billion dollar financial institutions as well as community banks find that the School’s curriculum addresses their educational needs.

The faculty of the Graduate School of Banking consists of experienced bankers, academicians, regulatory officials, attorneys and others who have expert knowledge of their subject areas and who have the ability to teach other professionals. Approximately seventy faculty teach at the School, and some have been associated with the program for many years. Faculty and courses are critically evaluated to assure that banker-students receive the best possible professional education.

The GSB at LSU is presented by the Southern States Conference at Louisiana State University and is sponsored by the South Carolina Bankers Association along with other state bankers associations.

For more information, visit www.gsblsu.org or contact Michael Edens, Senior Vice President-Private Banking, NBSC, at (803) 929-2003 or michaeledens@nationalbanksc.com.

The following colleges’ MBA programs grant credit for earning the GSBLSU diploma: University of South Carolina University of Mississippi Mississippi State University University of West Georgia University of Tennessee at Martin Milsaps Mississippi College

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. Don’t miss the Early Bird Deadline for big savings for First Year Students. You can save $100 if you register by February 27. Deadline for all registrants is May 1.

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

visit www.scbankers.org to apply 17 Palmetto Banker

Annual Convention

Saying Goodbye in a Convention-al Way 2012 South Carolina Bankers Association Annual Convention | June 10-13, 2012 The Cloister and The Lodge, Sea Island, Georgia

S

CBA Chairman Sharon Bryant, First Citizens Bank, and her husband, Steve, invite all members and associate members to attend the SCBA 112th Annual Convention at The Cloister and The Lodge, Sea Island, GA. Consistently rated as one of the top resorts in the world, Sea Island provides luxurious guest experiences along the Golden Isles of Georgia. At Sea Island, beauty and distinction come in several award-winning choices. The SCBA has rooms blocked at The Lodge, which is a golfer’s paradise, surrounded by all three of Sea Island’s famed golf courses. Continuous shuttle service is offered which is usually just a ten-minute ride to the main building. Those who have stayed at The Lodge say it is their favorite accommodation at Sea Island. Colt & Alison, one of Sea Island’s highly praised restaurants, is located at The Lodge. There are a limited number of rooms blocked at The Lodge and are reserved on a first-come, firstserved basis. The Cloister centralizes the Sea Island resort experience, encompassing beach access, the Cloister Spa, and the full spectrum of resort activities and amenities. It will be the perfect venue for SCBA’s line-up of speakers, vendors and enlightening business sessions. For your convenience, nightly hotel rates ($395/Cloister or Lodge and $425 Beach Club Rooms) are extended to our registrants two days before and after the convention. Convention fees are $495 for members and associates ($395 for spouses/guests and $155 for children older than 14). A noted activity is a visit to The Cloister Spa at Sea Island. The Spa is a Forbes Five-Star haven of health, fitness and well being, where personalized treatments, services and hospitality extend well beyond your stay. The magnificent, 65,000-square-foot spa provides an environment where you can relax, revive and reconnect. If you plan to bring children you will want to review all the plethora of children’s activities offered by Camp Cloister. There is so much to do it makes you want to be a child again! Please visit www.seaisland.com to learn all that Sea Island has to offer.

After 25 years of service, a special gala in honor of our retiring president and CEO, Lloyd I. Hendricks, will take place at this year’s convention. Join us in celebrating his service to the SCBA. The gala on Tuesday evening will begin with a reception, dinner, the salute to Lloyd I. Hendricks, and a floorshow featuring the wildly popular Pink Flamingos. To continue the festivities of the evening, following the floorshow, the room will burst into excitement as attendees demonstrate their old dance moves and maybe some new ones learned from The Pink Flamingos. Chairman Bryant encourages all to be present on Tuesday night to enjoy this gala celebration and to honor Lloyd I. Hendricks.

The 2012 SCBA Convention and celebration is truly one not to be missed!!

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Speakers

Robert Ariail Editorial Cartoonist, “The Herald-Journal” Robert Ariail was the editorial cartoonist for The State newspaper from 1984 until 2009. He now works for the Spartanburg (S.C.) Herald-Journal and his work continues to be published in over 600 newspapers through United Features Syndicate. Robert has won numerous awards for his work. The scope of his awards is recognized nationally and in the state to include becoming a finalist for the Pulitzer Prize in 2000 and 1995.

Ariail is a Columbia, S.C. native and University of South Carolina graduate. In 1985 he was given the Distinguished Alumnus Award by the University. In 1992, Ariail was honored with the Ambrose Hampton Award for distinguished service to The State. He appeared in and drew cartoons for Hemdale Motion Picture’s The Boyfriend School filmed in Charleston, S.C. in 1990. Ariail has published three collections of cartoons. The most recent, Ariail!!!, was one of Columbia’s bestselling books in 2001.

Robert Ariail is a sought after speaker throughout South Carolina and lends his time and talent to many community and charitable organizations. Most recently, he served two terms on the executive board of The Fine Arts Center of Kershaw County. Robert and his wife and their 16-year-old daughter live in historic Camden, S.C. See more of Ariail’s work at robertariail.com.

Albert C. “Kell” Kelly, Jr. ABA Chairman Albert C. “Kell” Kelly, Jr. is president and CEO of SpiritBank in Oklahoma. He has been with the bank for 25 years. During this time, the bank has grown from a 40 million dollar institution in Bristow to a $1.5 billion dollar institution in 12 cities.

Kelly is currently chairman of the American Bankers Association.

He is past chairman of the Oklahoma Bankers Association and is also past chairman of the American Bankers Association’s Community Bankers Council. He previously served on the board of the American Bankers Association. He serves as the Oklahoma Bankers Association coordinator for banking advocacy. Kelly is currently co-chairman of TRUST, (Transportation Revenue Used Strictly for Transportation).

Kelly served an eight-year term as vice chairman of the Oklahoma Transportation Authority advising Governor Frank Keating’s administration.

Kelly is involved in numerous other community organizations.

He earned a bachelor’s degree in business administration from the

University of Oklahoma in 1977 and a juris doctorate from OU College of Law in 1980. Prior to his banking experience, Kelly was an assistant district attorney for Creek and Okfuskee counties from 1982 to 1984, and was a partner in the law firm of McMillan, Vassar & Kelly from 1980 to 1985. He became president and CEO of SpiritBank in 1990. Kelly also served in the U.S. Army Reserve, attaining the rank of captain.

Dr. Harris Pastides President, University of South Carolina Harris Pastides is serving as the 28th president of the University of South Carolina, elected to that position by the University’s Board of Trustees on August 1, 2008. His election marked the first internal candidate for the presidency of the University in over a half century. Previously, Dr. Pastides had served as vice president for research and health sciences and dean of the Arnold School of Public Health. He and his wife, Patricia, first came to the University in 1998.

Dr. Pastides sees USC as a place for producing leaders who can have extraordinary impacts at the local and global levels. His guiding philosophy for students, faculty and staff is “participate, innovate and lead.” His personal priorities are leadership, health, Rule of Law, K-12 education and energy. Dr. Pastides currently serves as the Southeastern Conference representative on the NCAA Board of Directors.

Under his leadership, the University’s student population has grown to record levels at the Columbia campus and among the system’s regional institutions. Entering freshman SAT averages have shown continued growth, as have their average GPAs. In athletics, the University of South Carolina’s men’s and women’s teams have enjoyed extraordinary successes across the array of sports in the University system in the past two years.

Before joining the University’s faculty, Dr. Pastides was a professor of epidemiology and chairman of the Department of Biostatistics and Epidemiology at the University of Massachusetts at Amherst. He received his masters of public health and his Ph.D. in epidemiology from Yale University.

Special Event Guest Speaker The SCBA is very honored that Patricia Moore-Pastides will share her knowledge of nutrition and Greek cooking as she presides over the special event luncheon. Time has been reserved during the luncheon for a book signing of her highly acclaimed cookbook, Greek Revival: Cooking for Life. Her cookbook is filled with delicious recipes, nutritional tips, comments about her visits to Greece and beautiful photographs taken by Dr. Pastides. This intriguing cookbook will be presented to each attendee as a gift from Chairman Sharon Bryant upon your arrival at The Cloister. A myriad of Greek foods will be served at the luncheon using Patricia Moore-Pastides’ appetizing recipes.

Patricia Moore-Pastides First Lady, University of South Carolina and author of “Greek Revival: Cooking for Life” Patricia Moore-Pastides is the First Lady of the University of South Carolina and an accomplished cook, writer, and public-health professional. The author of Greek Revival: Cooking for Life received her AB in Sociology from the College of the Holy Cross in Worcester, MA and her Masters in Public Health from Yale University School of Medicine.

After relocating to South Carolina in 1998, Patricia managed the Richland County Health Department for the SC Department of Health and Environmental Control (1999-2003). She then directed the Pregnant and Parenting Teen Provider Network for the SC Campaign to Prevent Teenage Pregnancy (2003-2006). She currently serves on the boards of: the Sisters of Charity Foundation, SC Ovarian Cancer Prevention- Riverbanks Region, and Trustus Theatre.

Patricia is active at the University of South Carolina on several boards: McKissick Museum, USC Dance, the ExLibrus Society, the USC Colon Cancer Research Center and the Archeology Research Trust. She teaches adult and children’s Mediterranean cooking classes at Columbia’s Cooking!, an interactive community cooking program offered by the University’s Cancer Prevention and Control Program. She cultivates an organic vegetable garden to provide food for university events, the campus Healthy Carolina Farmers’ Market, and Harvest Hope food bank. She promotes the cause of improving wellness and environmental sustainability on campus and works closely with Healthy Carolina, the University’s wellness program.

Ms. Moore-Pastides has increased plant-based dining for Presidential events and works closely with the university food service provider to improve healthy food choices on campus, and to reduce landfill waste by increasing the use of biodegradables. She has initiated composting and rainwater collection, and is an advocate for lactation support in the university community.

With the publication of her first book, Greek Revival: Cooking for Life, Ms. MoorePastides has embarked on a campaign to introduce Americans to the culinary delights and health benefits of the traditional Mediterranean diet and lifestyle. She was recognized as a featured author by the National Press Club at their 33rd Annual Book and Authors’ Festival.

She was a featured speaker at the Southern Independent Book Dealers Association Book Festival, the University of Central Florida Book Festival and the SC Book Festival. In addition, Greek Revival was selected as a finalist for the cookbook of the year award sponsored by SIBA and ForeWord magazine. She has shared her message that food can be both delicious and healthy to thousands of individuals through presentations to local book, garden and community clubs and in June 2011 she lectured at the Greek Embassy in Washington, DC. Ms. Moore-Pastides donates net proceeds from Greek Revival (now in its third printing) to the Health and Sustainability Fund. In Spring 2011, she taught Introduction to Healthy Mediterranean Cooking through the College of Hotel, Restaurant, and Tourism Management and worked with students to create their own healthy recipes inspired by local farmers’ 19 Palmetto Banker

Annual Convention markets. These recipes were compiled into a booklet entitled Fresh Cuisine: A Farmers’ Market Approach to Cooking supported by the Health and Sustainability Fund through the Right Choice Fresh Start Farmers’ Market in Orangeburg, a partnership with the USC School of Public Health.

Ms. Moore-Pastides has appeared in many television, radio, and print interviews to promote Greek Revival and its message of health and nutrition. The SC Dietetic Association presented her with the Public Service Nutrition Award, and she was inducted by the Mu chapter of the Delta Omega Public Health Honor Society.

She and her husband, USC President Harris Pastides, have two adult children.

Prayer Breakfast Featuring

The Rev. Dr. Brad Smith For Brad Smith, being transformed

by God’s amazing grace in Jesus Christ means living to love God and neighbor.

Smith has had the unique experience of seeing God at work in the everyday rhythms of people’s lives, while also seeing God’s Spirit stir in new ways that reach, literally, across America.

As a young seminary intern, Smith stood before his congregation on Super Bowl Sunday 1988 and offered up a simple prayer: “Lord, as we enjoy this Super Bowl football game, help us be mindful of those who are without even a bowl of soup to eat.” Inspired by the prayer, Smith put an idea into action, organizing his Columbia, S.C. youth group to collect dollar donations from the congregation and then donate the entire collection to a local charity. So began Smith’s dual path ministry of serving in the local church, while also fostering the growth of the Souper Bowl of Caring.

In 2001, Smith left the local church to devote himself fulltime to the Souper Bowl of Caring. What began with that one youth group has now netted over $80 million for soup kitchens and food banks across the country. In addition, over two hundred thousand young people each year are experiencing the joy of making a difference 20 Palmetto Banker

in the world through their involvement with the Souper Bowl of Caring.

Where the vision God gave him for the Souper Bowl of Caring took Smith from coast to coast, from soup kitchens to NFL owner’s offices, and from youth ministry conferences to Super Bowls, Brad never lost appreciation for walking with people along life’s journey as a pastor. In 2009, he responded to God’s call to return to the local church as pastor of Columbia’s Eastminster Presbyterian Church.

Brad’s wife Nancy is a partner in ministry and in life. They have three children: a son and two daughters.

Brad’s efforts with Souper Bowl of Caring have been recognized

by NFL team owners, athletes, and awards, including The Order of the Palmetto, South Carolina’s highest civilian honor, awarded by Gov. Jim Hodges in 1999; The University of South Carolina - The Algernon Sydney Sullivan Award in 1999; and the Central Carolina Community Foundation David W. Robinson Catalyst Award in 1996.

Sporting Tournaments

Tennis, Golf and Sporting Clays SCBA Immediate Past Chairman, Teresa Knight of The Palmetto Bank, Greenville and her husband Randy will chair the sporting clays tournament this year. The sporting clays tournament was a huge success last year under their leadership so why not let a great event become an annual tradition. The sporting clays tournament is scheduled for 1:30 p.m. on Monday, June 11, 2012. The SCBA tournament registration fee is $125.00 per player. The art of clay target shooting is a treasured tradition at Sea Island, and the Sea Island Shooting School ranks among the nation’s best. Facilities include a competitive five-stand sporting clay field, two skeet ranges, and a trap field. The ten stations at nearby Rainbow Island Sporting Clays Course take shooters on a stunning mile-long nature walk.

The 2012 SCBA Tennis Tournament will be held at the Cloister tennis center. It is the best in tennis featuring eight Har Tru courts and a stadium court. The tennis tournament is scheduled for 2:00 p.m. on Monday, June 11, 2012. The registration fee is $45.00 per player, which includes registration, refreshments, prizes and court time.

The 2012 SCBA Golf Tournament will be chaired by Frank Townsend, Southern Bank & Trust, Aiken. The Seaside Course was named one of Golf Magazine’s “Top 100 Golf Courses.” “I’d say, in terms of strength and beauty and excitement -- the Seaside Course at Sea Island Golf Club is probably as good a golf course as we’ve ever had the opportunity to work on,” said Tom Fazio. Seaside is the pinnacle of links golf. Situated at the southern tip of St. Simons Island at The Lodge at Sea Island Golf Club, this oceanside course places a premium on careful shot selection, recovery, and putting. Offering Sea Island’s most demanding layout, Seaside is the host venue for the PGA Tour’s McGladrey Classic. Seaside has also hosted multiple USGA events, challenging golf’s best amateur players. Originally designed in 1929 by famed architects Harry S. Colt and Charles Alison, the Seaside Course was updated in 1999 by Tom Fazio, earning it a prominent place on Golf Digest’s list of “Top 100 Courses in the United States.” Tidal creeks, dunes, salt marshes and the St. Simons Sound frame the course, which plays fast, firm, and fun in the tradition of legendary Scottish links.

Between golf, tennis and sporting clays there is something for all SCBA athletes.

Agenda Sunday, June 10, 2012 3:00 p.m. - 6:00 p.m.

5:45 p.m. - 6:30 p.m.

Registration Table Open; Trade Show Open The Graduate Schools of Banking Reunion/Reception* 6:30 p.m. - 8:00 p.m.

Opening Night Reception; Trade Show Open Evening free for dining and entertainment on your own

Monday, June 11, 2012 7:45 a.m. - 8:45 a.m.

8:30 a.m. - Noon 9:00 a.m. – Noon 12:15 p.m.

3:00 p.m. – 4:00 p.m.

Coffee and Pastries; Trade Show Open Registration Business Session Special Event-Luncheon featuring Patricia Moore-Pastides, First Lady, University of South Carolina, Columbia Ice Cream Social *For SCBA Youngsters, Tweens and Teens

Afternoon events: Select from Golf Tournament*, Tennis* or Sporting Clays Tournament*

6:30 p.m. - 8:00 p.m.

Chairman’s Reception and SCBA BankPAC Silent Auction Sea Island, Georgia

Tuesday, June 12, 2012 7:45 a.m. - 9:00 a.m.

7:45 a.m. — 8:45 a.m.

9:00 a.m. - Noon 10:00 a.m.—11:00 a.m.

11:00-Noon 6:15 p.m.

7:00 p.m.

Coffee and Pastries Prayer Breakfast featuring Dr. Bradley Smith, Senior Pastor, Eastminster Presbyterian Church, Columbia Business Session Concurrent Sessions.

Choose from the following: A New Era in Community Banking: the Path to Future Profitability R. Jason Caskey, CPA, Elliott Davis, LLC, Columbia Legal Accounting and Legislative Issues Affecting Banking Lloyd I. Hendricks, SCBA, Columbia, George S. “Chip” King, Haynsworth Sinkler Boyd, P.A., Columbia, John T. Moore, Nelson Mullins Riley & Scarborough, LLP, Columbia and William H. “Bill” Short, Jr., Haynsworth Sinkler Boyd, P.A., Columbia What Does the Community Bank of the Future Look Like?

Dr. Timothy W. Koch, Professor of Finance, University of South Carolina, Columbia

The Cloister

Business Session Continues Gala Evening honoring Lloyd I. Hendricks Cocktails Dinner Celebration and Remarks After-Dinner Entertainment featuring The Pink Flamingos followed by dancing

*Prior registration is required for this event.

The Pink Flamingos

21 Palmetto Banker

Sponsors A special thank you belongs to the following sponsors for making this event possible:

Sapphire Sponsor - $5,000.00

Grand Sponsor - $4,000.00 Golf at Sea Isla

nd Resort

Platinum Sponsor - $3,000.00

Gold Sponsor - $2,200.00

Silver Sponsor - $1,200.00 The Seaside Course

Bronze Sponsor - $850.00

The Cloister

22 Palmetto Banker

Welcome, New Associate Members Accusource Solutions, Inc.

Steve H. Powell & Company

537 Links Pointe Court, Chapin, SC 29036 (mailing) 1406 Dunn Drive, Carrollton, TX 75006 (physical)

PO Box 2701, Statesboro, GA 30459 (mailing) 3 Courtland Street, Statesboro, GA 30458 (physical) Contact: Steve H. Powell, President Phone: 912-764-1934 Fax: 912-489-5354 Email: spowell@shpco.net Website: www.shpco.net

Contact: Harry Lowman, Engagement Manager Phone: 972-446-9283 Fax: 972-446-9314 Email: hlowman@accusourcesolutions.net Website: www.accusourcesolutions.net Bank-specific, 35-year-old company. Providing free secured/monitored 24/7 warehousing and desktop delivery to SCBA members on Expense Management Program to all branches and cost centers.

Specializing in image and MICR documents, envelopes, marketing promotionals and brochures, GLs, general banking supplies and office supplies. 100% contractual guarantee on month-end reconciliation.

Cutting-edge software with heavy back-end bank specific accounting capabilities. Quantitative analysis and executive summary provided free of charge to all SCBA members. Excel savings analysis is emailed in cut and paste format and all results are presented with binding confidential safeguards.

Steve H. Powell & Company specializes in providing superior asset quality monitoring and regulatory compliance support for financial institutions. We also provide our clients bank regulatory application consulting, financial analysis, and strategic planning. Our staff incorporates individuals with both banking and regulatory experiences. A diverse banking background facilitates a blend of regulatory expectations with real world applications. Our company’s Goal: To increase the capacity of our clients to compete in an ever changing financial world. Our goal is obtained first by lowering the cost of necessary, “unproductive” banking operations. By outsourcing services it is less expensive than an in-house position. And second by providing superior service, timely feedback, and the value added benefit of outsourcing services with trained professionals. Our company provides ongoing support to over 100 institutions throughout the southeastern United States.

People On The Move

by Marilynn Joyner

Countybanc Insurance

REMINDER If your company is a member of our association, SO ARE YOU! Let’s stay in touch! Go to www.scbankers.org.

Sign in using your company e-mail address, select your

Ken Finch was elected president-elect of the Independent Insurance Agents and Brokers of South Carolina.

First Citizens Arfran Qureshi joined the bank as Director of Learning and Organizational Development.

company name, then review all member benefits. Please take a moment to make sure ALL personal information is updated in our MEMBERS ONLY section.

Questions?

Alissa Gibson was appointed vice president.

Alissa Gibson, Dolores Argento-Heron, and Glenda Jenrette celebrated five years of service with the bank.

TD Bank Amy F. Lasley was promoted to store manager of Lexington Main.

Sandhills Bank Ashley Causey was appointed assistant vice president.

Stefania Brinkosova was appointed vice president.

Contact Caroline Sheorn: CSheorn@scbankers.org

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Bank News SCBT, N.A. SCBT Financial Corporation, the holding company for SCBT, N.A., and Peoples Bancorporation, Inc., the holding company of Peoples National Bank, Bank of Anderson, N.A., and Seneca National Bank, jointly announced on December 20, 2011 the signing of a definitive merger agreement under which SCBT will acquire Peoples Bancorporation. The combined company will have approximately $4.5 billion in assets, $3.8 billion in total deposits, and $3.2 in total loans. The transaction is expected to close the second quarter of 2012 subject to the customary conditions.

Community Bankers’ Bank Celebrating 25 Years In the summer of 1986, a group of Virginia bankers led the effort to establish a client owned correspondent bank that was not a competitor for their customers. That effort led to the formation and opening of Virginia Bankers’ Bank in January 1987. It was the 11th bankers’ bank organized in the United States. In 1996, the bank expanded its market to include financial institutions in the Fifth Federal Reserve District (Virginia, Maryland, North Carolina, South Carolina, the District of Columbia, and most of West Virginia). To better reflect the footprint enlargement, the name was changed to Community Bankers’ Bank (“CBB”), and today CBB remains the only bankers’ bank headquartered in the Fifth Federal Reserve District.

When CBB opened, there were more than 14,000 FDICinsured banks in the U.S., the Prime rate was 7.5%, the Fed Funds rate was 6%, the average rate for a 30YR fixed mortgage was 9.2%, and the Dow Jones Industrial Average broke the 2,000 level for the first time on January 8, 1987. Community Bankers’ Bank and the banking industry have seen a lot of changes in the last 25 years.

What has not changed in all that time, however, is CBB’s commitment to helping clients and share¬holders enhance their viability in a competitive and ever changing marketplace.

The staff of Community Bankers’ Bank is a dedicated group of banking professionals with an average of 22 years of experience.

CBB has 108 shareholders and nearly 50% of all community banks

Community Bankers’ Bank, Midlothian, Virginia

within the Fifth Federal Reserve District have a correspondent relationship with CBB. Community Bankers’ Bank was organized to do business exclusively with community financial institutions. CBB’s strategic plan and mission statement dictate that it exists solely for the purpose of supporting and facilitating the success of its clients and shareholders. For 25 years, CBB has been a correspondent partner that can be relied upon in good times and bad, never competing for clients’ customers.

Community Bankers’ Bank is part of a network of 16 bankers’ banks currently serving more than 6,000 community banks in 50 states by providing a comprehensive mix of wholesale correspondent and related services. Bankers’ banks are organized to support, inform, influence, and protect community banking. They help community banks manage their non-interest expenses and gain operational efficiencies and economies of scale on services such as cash letter, wires, ACH, safekeeping, and more. This, in turn, helps community banks offer better pricing to retail customers.

Community Bankers’ Bank is here to ensure that the banking system will continue to be vibrant and, most importantly, diversified. At a time when many large regional and money center banks have sharply curtailed or abandoned correspondent banking services, CBB continues to fulfill a vital role – providing high-quality, solid and dependable correspondent banking services to community banks throughout the Mid Atlantic seaboard. CBB is grateful for its progress and success over the last 25 years and clients can rely on CBB’s specialized expertise, technology, and reliable service for many years to come.

Community Bankers’ Bank Executive Committee, including Robert “Bobby” W. Jonte, Jr., president and CEO, Bank of Greeleyville (3rd from Left)

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Good Deeds Crescent Bank

Index of Advertisers Crescent Bank president M.J. Huggins, III presents Julie Farmer of Myrtle Beach Intermediate School with a check for $1,200, which was donated to the school’s Angel Tree fund. The money donated to the school was given by the associates of Crescent Bank.

Bankers School

17

BDC – Business Development Corporation

7

Community Bankers Bank

9

Credit Risk Management

28

Dixon Hughes Goodman

2

Elliott Davis

4

Flex-Pay Payroll Services

5

First Citizens First Citizens Foundation recently donated $5,000 to the Cultural Council of Richland and Lexington Counties to support various programs and services for local schools, artists and art organizations.

Specifically, the donation will provide technical assistance, information resources, regional arts promotions and additional services not funded by local municipalities.

Also, First Citizens Foundation donated $50,000 to the Midlands Technical College Foundation. The donation from the First Citizens Foundation will be used to provide funding to financially-burdened students who are pursuing a post-secondary education at Midlands Technical College.

Lastly, First Citizens Foundation donated $10,000 to the ETV Endowment of South Carolina for South Carolina ETV’s Reimaging in Public Radio campaign. Specifically, the funds will be used to update studio space for the state-owned public educational broadcasting network.

Guest Media Technology, LLC

20

Howe Construction

13

First Reliance Bank First Reliance Bank has announced that Kaesi Boyce of Florence, a student of Francis Marion University, is the recipient of the 2011/2012 First Reliance Bank Scholarship.

The First Reliance Bank Scholarship recognizes and assists outstanding area students who are pursuing a degree in business or finance. Administered through the Francis Marion University Foundation, the scholarship program has been helping area-wide students to meet their academic financial obligations since 2010. Boyce, a business major, is the second student to be awarded the scholarship.

KeenanSuggs

9

Performance Trust University

27

SCBA Services, Inc./Employee Benefit Trust

26

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Calendar

Calendar of Events March 2012 6

Community Bankers Spring Peer Group, Columbia

8

SCBA 2012 Compliance Conference: State Issues, The Clarion Town House Hotel, Columbia

9-11

14

Young Bankers Division Annual Conference, The Grove Park Inn Resort & Spa, Asheville, NC SCBA 2012 Economic Developers Conference, Midlands Tech NE Campus, Columbia

15

SCBA Bank Officer Call Training, The Clarion Town House Hotel, Columbia

June 2012

April 2012

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

24

Teach Children to Save Day

July 2012

25

SCBA 2012 Trust Conference, The Marriott Courtyard, USC, Columbia

May 2012 1

Final Deadline to Register for SC Bankers School

9

SCBA Asset Liability Conference, The Clarion Town House Hotel, Columbia

8-13

South Carolina Bankers School, Lander University, Greenwood

August 2012 TBD

September 2012 18

SCBA Call Report Seminar

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

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