Palmetto Banker Fall 2012 by SCBA

The South Carolina Bankers Association

Fall Issue 2012-3

Palmetto Banker

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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 F. Richard “Rick” Redden, III Wells Fargo Chairman-Elect R. Arthur “Art” Seaver Jr. Southern First Bank, N.A. First Vice Chairman H. Blake Gibbons, Jr. The Citizens Bank Treasurer David M. Lominack TD Bank Immediate Past Chairman Sharon W. Bryant First Citizens SCBA Staff

Contents Annual Convention page 18

Bankers School page 32

President & CEO

Fred L. Green, III Executive Vice President/General Manager/ BankPAC Treasurer

Financial Literacy

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 Senior Vice President, Member Services, Conventions/ Conferences

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

Meet SCBA’s New President and CEO Fred Green

Legislative Update

Legislative Profile Senator John Courson

Feature - Premium Amortization: An Accounting Time Bomb?

Feature - Financial Literacy

Meet SCBA’s New Chairman Rick Redden

Marilynn E. Joyner

Annual Convention

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.

Welcome, New Associate Members

Feature: Spirit of Giving Grows Annually Through The CBL Foundation

Directors’ College

Bankers School

Young Banker of the Year

Bank News

People On The Move

Good Deeds

Calendar of Events

A. O’Neil Rashley, Jr. 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

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Meet SCBA’s New President and CEO

Meet Fred Green, President and CEO “ I have known Fred professionally and personally for twenty years. Because he was reluctant to give the association an interview announcing his arrival, I have taken the liberty of writing this article. We are extremely fortunate to have Fred Green lead our asociation.” – Sara Fisher, Chief Operating Officer, NBSC

rying to get Fred Green to talk Subsequently, C&S was purchased and several South Carolina about himself is as hard as recit- C&S leaders asked Fred to join them at the National Bank of South ing the alphabet backwards. He Carolina. At the time, NBSC was a smaller, community bank and doesn’t like to do it. He is much more under new leadership, grew to be a statewide bank. He began his comfortable talking about others: their career at NBSC as executive lives, their interests, their accomplish- in charge of the Columbia ments – anything but himself. But, if region and rose to the posiyou have ever worked with Fred or been tions of Chairman, CEO around him for a period of time, you and President. After NBSC will learn that he is enthusiastic, energiz- merged and became part of ing, smart and a good leader. Many of Synovus, Fred moved to us already know much about Fred. He Columbus, GA where he is no stranger in South Carolina banking circles as he worked with was named Vice Chairman C&S and later with NBSC. During his time at NBSC, he was cho- of the Synovus Board and sen Young Banker of the Year in 1994, chaired the South Carolina President and COO of Bankers School that same year, and served as Chairman of the Bankers Synovus. Fred spent six Association in 1999. years in Georgia before There may be other things some don’t know about Fred, though. returning to his roots and He grew up in Georgetown, SC. He loved anything that he could do his home state of South outdoors and spent a lot of time on the water and in the woods. He Carolina. graduated from USC at age 20 and has always had a sense of urgency Back in South Carolina, Fred began contemplating future and didn’t want time, or life, to pass him by before he experienced opportunities. He knew that he wanted to be in or associated with as much as he could. At the University of South Carolina, he majored the banking industry in some way. Again, that entrepreneurial spirit in finance. In addition to earning a B.S. degree, he later earned kicked in. He wanted to reshape and build something. He worked a Master of Business Administration in 1983. He loves his alma with a number of bankers, investment bankers, and regulators trying mater and was named “Distinguished Young Alumnus” in 1999 and has to find the right combination to create something new. been an active member of several of the USC foundations. Community Involvement But how did Fred get into banking? It was, as he frequently says, a Fred has always been very involved in his community having served as a Board Member of the little by accident, a little by luck, and South Carolina Chamber of Commerce, both the Columbia and Hilton Head Chambers, the a gentle, but firm, push from his father. Banking did not immediately USC Educational Foundation , Business Partnership Foundation and Alumni Association, and the interest Fred. He felt that it was not ETV Endowment of South Carolina. He is the Past Chairman of the South Carolina Student Loan as dynamic a career as he was seekCorporation and the Cultural Council of Richland and Lexington Counties. Currently, Fred serves ing. He has an entrepreneurial spirit on the Executive Committee of S.C. BIPEC, a member driven, politically non-partisan business and wanted to do something exciting, something that could have rewards and and industry organization. opportunities every day. The summer after graduation from USC, he fished during the day and worked at night, while trying to determine his Then, members of the SCBA search committee called. When next move. As that summer was coming to an end, he met a banker Lloyd Hendricks decided to retire after 25 years, a search began for his from C&S, and the beginning of Fred’s banking career began. He replacement. Fred was the chosen successor. He joined in March as spent the next 12 years at C&S, working in many different areas of CEO and hit the ground running. He and Lloyd had a good “overlap” the bank, including both retail and commercial. At some point during period until Lloyd’s official retirement in June. his tenure at C&S, he realized that a banking career was what he had Fred sees many opportunities for South Carolina banks and for been looking for all along. the South Carolina Bankers Association. He has said that “We must Banking has opened other doors for Fred, as well. While at C&S, continue to do the things we have historically done very well and we Fred attended South Carolina Bankers School, where he met his must meet the challenges facing our industry head on. It is an exciting, future wife Mary (who was with another bank in Greenville). They yet challenging time. What better time to be in banking. ” are married today and have four wonderful children and one grandchild. Oh, and by the way, Mary Green graduated #1 in her banking school class. Fred has always chosen so wisely. Meet Fred Green continued on page 6 4 Palmetto Banker

Cover Article Meet Fred Green continued from page 4

Spare Time

Quotes about Fred

When Fred has spare time he enjoys saltwater fishing and he especially enjoys spring turkey hunting.

“I cannot think of a more qualified individual than Fred to assume the distinguished post held by our beloved Lloyd Hendricks,” said Sharon Bryant, South Carolina Banking Executive for First Citizens and Immediate Past Chairman of the South Carolina Bankers Association (SCBA). “Fred has the knowledge, wisdom, experience and diplomacy to continue the forward progress of the SCBA. I am confident that under his leadership, our fine organization will continue to positively represent the banking industry in South Carolina and make the communities we serve a great place to do business.” – Sharon W. Bryant, First Citizens

He is a voracious reader and he also enjoys spending time with family and friends. When around Fred, you will learn that he is an awesome story teller, maybe with slight or larger embellishment, and he loves to laugh, a laugh you cannot easily forget. You will also note that he always has a smile and a look of mischief in his eyes.

“Having been Fred’s roommate for three years at the Banking School of the South at LSU, I can personally attest to his strong intellectual capacity and his natural leadership skills. The combination of these qualities gives me great confidence about his future success as the CEO of the SCBA. Everything else about those three years will remain confidential in order to protect the innocent.” – Mike Crapps, First Community Bank “Fred has tremendous knowledge of the banking industry and can relate well to both the largest and smallest member banks. His experience with the Federal Reserve as well as the relationships he has with our representatives both in Washington and at the State House will serve us well.” – Chuck Garnett, NBSC “Fred’s banking background gives him a unique perspective as leader of the South Carolina Bankers Association. His ability to communicate is exceptional and his relationships throughout the State, both banking and otherwise, make him a natural for which to continue the outstanding leadership of Lloyd.”

Professional Affiliations In 1999, Fred served as Chairman

– Fleetwood S. Hassell, The Bank of South Carolina

of the S.C. Bankers Association and has been very involved for many years. He has also served as

“The SBCA is fortunate to have Fred join the association. He has been very involved with SCBA in the past and served as our chairman. Fred is extremely knowledgeable of our state and our industry and is an outstanding banker. I look forward to working with him as he works to continue to keep the banking industry in the forefront of our state.”

a Board Member on the Federal Advisory Council, Federal Reserve Board of Governors, representing the 5th District (Richmond) and the 6th District (Atlanta).

Prior to this, he

served as a Board Member of the

– Teresa W. Knight, The Palmetto Bank

5th District Federal Reserve Bank in Richmond.

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Legislative Update

SCBA Finishes Successful and Productive State Legislative Session

he South Carolina General Assembly adjourned sine die on June 7, 2012 ending the 2011-12 session; although the legislature did return briefly in late June to handle limited issues such as the state budget. 2011-12 was a busy session for SCBA with issues such as foreclosure, derivatives, and taxation taking up considerable time. Altogether it was a successful session for banking and the following is a summary of the top issues.

Mortgage Servicing & Foreclosure Mediation S702, introduced in 2011, mandated that all foreclosures be subject to court-ordered mediation and further proposed to impose heavy regulatory and litigation burdens on all mortgage servicers in South Carolina, including banks. SCBA immediately opposed the bill as it would have a dramatic, negative impact not only on mortgage servicing and the foreclosure process but also overall on residential lending. During November, the Senate Banking Committee held special public hearings to hear from the public how S702 could be improved. Once the session began again in January 2012, SCBA worked with subcommittee senators, showing them how S702 was unnecessary due to the fact that Congress and federal regulators had dealt with many of these servicing and foreclosure issues through Dodd-Frank and other actions; additionally the South Carolina Supreme Court had issued its May 2011 order staying all residential foreclosures until the foreclosing party worked with the borrower and also permitting mediation. Essentially, S702 was overly burdensome and would harm lending. SCBA’s efforts, along with contacts from community bankers to subcommittee members, caused S702 to not receive a hearing, ending the debate and the bill for the year.

State-Chartered Banks and Derivatives During the Dodd-Frank debate, Congress discussed banks’ use of derivatives and sought to limit the exposure banks had to borrowers in derivative transactions. The Dodd-Frank definition of derivative was broad enough to include transactions such as interest rate swaps. Congress passed a provision that an FDIC-insured state-chartered bank may engage in derivative transactions only if, by January 2013, a bank’s state lending limit law requires that bank to take into consideration its credit exposure to a counter-party when calculating its lending limits. For national banks, Dodd-Frank amended the national bank lending limit statutes with these changes and they will become effective in July 2012 In response to the language affecting state-chartered banks and also on SCBA’s request, Rep. Bill Sandifer (Oconee) and Sen. Paul Campbell (Berkeley) introduced twin bills, H4554 and S1392 that amended South Carolina’s lending limit statutes and conformed them to these provisions in the Dodd-Frank Act. S1392 became the bill to move forward and both the House and Senate passed it with little debate. Governor Haley signed S1392 into law, effective June 7, 2012. Banks should be mindful that the OCC will issue a rule this summer further defining “credit-exposure” for national banks and that South Carolina regulators may also do so in the future.

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Bank Taxation With the Tax Realignment Commission issuing its tax reform recommendations in 2011, the House Republican Caucus introduced a package of “comprehensive tax reform” bills yet they did not pass. None of the bills directly impacted banking. Only the sales tax exemption bill, H4995, followed the TRAC Commission recommendations, deleting many exemptions. Still, H4995 was heavily amended in subcommittee reinstating most of the exemptions. H4995 passed the House but not the Senate. Property tax bills, H4993 and H998, dealt with lowering manufacturers’ high level of taxation and did not address bank taxation. Those bills were heavily opposed by local governments and were not passed out of committee. Concerning corporate taxation, H4999 proposed to eliminate the corporate income tax rate by reducing it 1.25% per year over four years but did not reference either the bank or thrift tax. The bill did not receive a subcommittee hearing. Finally, although the General Assembly did not pass H4996, a bill that proposed to lower business income tax rates for pass-through taxation, a compromise was reached in the budget bill, H4813, enacting a gradual reduction of the tax rate for income derived from pass-through trade and business arrangements, such as sole proprietorships, partnerships, and S corporations, from 5% to 3% over the course of three years until 2013 when it will remain flat at 3%. The General Assembly also passed H5418, a joint resolution that would further make this tax reduction part of permanent law.

Unauthorized Practice of Law In response to the first Matrix decision, H3988 was introduced and stated that a mortgage was still effective in a foreclosure action even if the closing may have involved the unauthorized practice of law. After the second Matrix decision was issued in place of the first opinion, the House Judiciary Committee did not take the bill up as it addressed some of the bill’s concerns, particularly the issue of unclean hands as a foreclosure defense and also the retroactive effect of the first opinion. Although H3988 was not taken up, SCBA stayed active on this issue, working with the South Carolina Bar to find solutions for transactions such as modifications. SCBA also filed a brief in the case of Warrington v. The Bank of South Carolina arguing that South Carolina public policy supports no attorney supervision on modifications.

Debit Card Fees H4435 prohibited all banks and financial institutions doing business in South Carolina from charging a fee for use of a debit card in a consumer purchase. SCBA opposed the bill and it did not receive a hearing.

Probate and Trust

Closing Insurance

S1243 was a substantial, 750-page bill revamping primarily the probate and guardianship sections of the South Carolina Probate Code. The Senate Judiciary committee sent the bill back to subcommittee to be worked on over the summer – ending it for the year as many senators had questions and concerns and felt it was too late in the session to debate such a large bill. S1243 was drafted and submitted by the Probate and Trust sections of the Bar along with the South Carolina Law Institute; they will continue to work with Senate Judiciary staff, and other interested parties such as SCBA, to craft another bill for next session. On a related issue, S429 was passed amending portions of the Uniform Principal and Income Act to conform with recent IRS Revenue rulings on marital trust deductions, apportionment of taxes between principal and income and also addressing previous ambiguities in the statute. It is effective June 7, 2012.

S1319 authorizes a title insurer to offer closing or settlement insurance and provides for loss against which this insurance may indemnify an insured. A premium charged for this coverage must be approved by the Department of Insurance and must not be subject to any agreement requiring a division of fees or premiums collected on behalf of the title insurer Finally, both the Senate and House adopted identical joint resolutions honoring Lloyd Hendricks for his 25 years of service as CEO and President of the South Carolina Bankers Association. The Senate joint resolution is S1437. SCBA would like to thank all our bankers who gave input on these bills the last two years and to those bankers who took the time to talk to their legislators about the effect these bills would have on banking. All bills can be viewed at www.scstatehouse.gov.

Rehabilitation of Abandoned and Dilapidated Buildings

SCBA Files Brief in Supreme Court Unauthorized Practice of Law Case

The South Carolina Municipal Association introduced S1117; a bill that proposed a receivership system that would allow a municipality to bring an action in circuit court against an owner of either commercial or residential properties that are not in substantial compliance with one or more municipal ordinances. SCBA opposed S1117 and it did not get out of subcommittee. A similar bill, H4802, took a different approach and proposed to incentivize private entities to renovate abandoned buildings by offering tax credits for the costs of rehabilitating these buildings. The House passed H4802 but the Senate could not pass it on the final day.

On June 19, 2012, the South Carolina Supreme Court heard oral arguments in the case of Warrington v. The Bank of South Carolina. The issue at hand was whether modifying the terms of the promissory note in a commercial loan was the practice of law, thus requiring attorney supervision. The mortgaged land was purchased with the intent to develop residential lots but the developer defaulted on the loan – even though the bank modified the loan three times at the request of the borrower. No attorney supervised the modifications but the underlying mortgage was closed with attorney supervision. An additional case was also heard that day that involved a mortgage company that modified a HAMP loan for a borrower without an attorney present. SCBA filed an amicus brief with the court in support of The Bank of South Carolina’s position that no attorney supervision was necessary for these modifications. SCBA’s brief approached the issue from a public policy standpoint and argued that “mortgage assistance promotes the important public policy in South Carolina of financial stability and independence for borrowers, and requiring the parties to hire lawyers to provide mortgage assistance would interfere with that policy.” There is no timeline for the court to rule; however it is anticipated that a decision might be issued by September. SCBA’s full brief can be found at http://www.scbankers.org/images/rotates/Amicus.pdf.

Mandatory ELT H3915 mandated that all entities making car loans would have to participate in DMV’s Electronic and Titling (ELT) program. Although SCBA strongly supports the ELT program, we opposed the bill’s mandatory language and worked extensively with the subcommittee and the sponsors and they agreed to remove this language, emphasizing that banks should make these choices on their own. DMV submitted another amendment that would have created a working group but the subcommittee questioned the need for that as all parties, including SCBA, are already working on implementing the ELT program. A House subcommittee adjourned debate on the bill for the year.

Transfer Fees Signed by Governor Haley and supported by SCBA, H3095 establishes that private transfer fees in deeds are contrary to South Carolina public policy and would limit their use to certain exceptions such as homeowners associations. The bill makes exceptions for fees that directly benefit homeowners associations and 501(c)(3)s where the benefit goes directly to the land. The bill is effective immediately but affects transfer fees only prospectively.

Save The Date 2012 Community Bankers Forum Tuesday, October 30, 2012 Seawell’s, Columbia, SC

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Legislative Profile

John E. Courson State Senator (R) Richland & Lexington Counties Senate President Pro Tempore “As a longtime member of the Senate Banking Committee, Senator Courson is a strong supporter of South Carolina’s banks. He understands that they are drivers of economic development in their communities and is committed to insuring that the General Assembly supports those roles.” – Fred L. Green, III, President and CEO, SCBA

outh Carolina Senator John Courson, Republican of Richland and Lexington Counties, has served in the South Carolina Senate since his election in November of 1984. He is the chairman of the Senate Education Committee and also serves on the Banking and Insurance Committee, Finance Committee, Medical Affairs Committee and Ethics Committee. On March 13, 2012 he was elected by his fellow senators to lead the Senate as President Pro Tempore. Senator Courson lives in the Shandon neighborhood of Richland County but his district (Senate 20) also encompasses parts of Lexington County and runs from downtown Columbia to Irmo, Ballentine and northwestern Richland County. As chairman of the Senate Education Committee he is naturally very involved in K-12 and higher education issues. However, as President Pro Tempore of the Senate he is also particularly proud that through his leadership he can bring sides together on other difficult issues and pass bills such as this year’s Pollution Control Act (H4651) and Broadband legislation (H3508). Both of these bills were extremely important to the business community but passage involved convincing environmental interests and rural communities that South Carolina’s interests were best served by passing the bills. Senator Courson began his active interest in politics in 1964 when he was a student at the University of South Carolina. He was an active supporter of Presidents Ronald W. Reagan and George W. Bush. He served as U.S. Senator Strom Thurmond’s State Chairman, State CoChairman and Treasurer. At three Republican National Conventions, Senator Courson represented President Reagan. He was honored to serve as a member of the South Carolina Presidential Electoral College in 1980 and 1984 as an Elector for President Reagan. In addition to serving on the above Senate committees, he has served as: Chairman of the Advisory Commission on Intergovernmental Relations (1995); Chairman of the Strom Thurmond Monument Commission (1997); Senate Representative on the Counter Terrorism Coordinating Council (2003); Senate Representative to the Southern Regional Education Board (2003); and Chairman of the Armed Forces of the United States Veterans Monument Commission (2004). Senator Courson has received the following honors: Order of the Palmetto; Outstanding Contributions to Art Education, S.C. Art Education Association; Certificate of Merit, MADD; Legislator of the Year, Common Cause of SC; Senator of the Year, S.C. Student Government; Legislator of the Year, The American Legion Department of SC – twice; Friend to the Taxpayer Award, SC Association of 10 Palmetto Banker

“I strongly believe that K-12 education and higher education are top priorities of state government and am pleased to have received numerous awards from the education community, including honorary doctorates, for my strong support. If re-elected on November 6, I plan to remain Chair of the Education Committee and to continue to serve as the senior ranking Republican on the highly important Banking and Insurance Committee. Professionally, as a commercial insurance broker I have had many opportunities to work with the banking community throughout the Palmetto State. South Carolinians are fortunate to have a sound banking structure and bankers whom are outstanding corporate citizens.” Taxpayers - multiple times; Palmetto Leadership Award, SC Policy Council; Small Business Support Award, Greater Columbia Chamber of Commerce; Support of Higher Education Appreciation Award, Clemson University; Distinguished Service Award, Marine Corps League; Public Education – Outstanding Contributions Award, State Department of Education; Excellence in Education Award, Superintendent’s Division, SC Assoc. of School Administrators; Green Tie Award for Senate Conservation Leadership, Conservation Voters of SC; Conservationist of the Year, SC Wildlife Federation; Friend of Education Award, SC Education Association; Business Advocate Award, SC Chamber of Commerce; Legislator of the Year, SC Sierra Club; Legislative Champion, SC Independent Colleges and Universities; Honoris Causa Member, Omicron Delta Kappa National Leadership Honor Society; Significant Sig, Sigma Chi Fraternity; and the Distinguished Service Award, SC Association of Student Financial Aid Administrators. He married the former Elizabeth Poinsett Exum on April 28, 1973 and they have three children: James (Jay) Poinsett, Elizabeth Boykin and Harris Russell. They also have one grandchild, Elizabeth Mae. Senator Courson is a 1968 graduate of the University of South Carolina and served in the United States Marine Corps Reserve. Senator Courson and his family are members of Trinity Episcopal Cathedral in Columbia. He is Senior Vice President of Keenan Suggs Insurance in Columbia and has been associated with the firm for 36 years.

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Feature

Premium Amortization: An Accounting Time Bomb?

ecently, throughout the course of my daily work, I was struck with a foreboding sense of déjà vu—but in this case, I really had had the experience before, around 2001-2003. Back then, many investment portfolios had significant allocations in premium book-price securities, and those who failed to keep on top of their amortization accounting in response to market realities eventually faced unpleasant consequences when the resulting discrepancies could no longer be ignored. Today, in a climate of more critical regulatory scrutiny, the consequences might be even more hazardous than they have been in the past, as they could impact CAMEL ratings in earnings, capital, and management. To be clear, I am not saying that premium securities are automatically dangerous. My message is simply that we must properly amortize these premiums to avoid potential difficulties down the road.

How to Check Your Accounting for Trouble Three Check Levels I’ll break down the methods for checking on and improving your premium amortization practices into three “check levels”— from the quick and simple to the most detailed and involved. Check Level One: To conduct this check, simply compare the current book prices of your premium securities to their

purchase prices. Are they very similar, despite the passage of several months’ time or more? Alternatively, look at your booked yields on these securities on your accounting reports. Do they look realistic, similar to purchase yields or current market yields? Or do they look suspiciously close to the securities’ coupon rates? It should be noted that the term “booked yield” applies to the accrued interest less the amortization for the month, divided by the beginning book balance multiplied by twelve. Accounting reports often report various yields, but not all of them report the booked yield, which reflects the actual yield realized for the month. Keep this in mind as you perform your review, and verify the definition of the “yield” you are examining. Either of the previous findings can be a sign that your initial accounting system settings were either in error or set for much slower prepayment conditions than we face today. Both indicate the likelihood that your premiums are being amortized extremely slowly, if at all. If this has happened on just a few bonds, those bonds are in danger of falling grossly out of whack, accountingwise. Worse, if the error exists throughout your portfolio, you could face severe problems in the future. I am sorry to say that I find this error more often than you would expect. This error can cause the most damaging type of mis-amortization for the simple reason that the securities affected by it are making little or no progress towards a book price of par, so they get further from where they should be with every passing month. Luckily, this error is also the easiest thing to check for. Check Level Two: If your bonds have passed Check Level One, then they were set properly at one time. But now we must check to see if conditions have materially changed. In most systems, premiums are set up to amortize on a projected “level yield” basis, either through assigning a prepayment speed assumption or through setting an “Amortize-To” date chosen based on average life at a presumed speed. Do the settings in your system align with current reality? A straightforward approach is to examine the speed assumption as set in your system (or ask your accounting service provider to do so) and compare this with recent speeds on the bond’s collateral (but take care to ensure that the speed shown on your report is actually being applied for amortization and is not merely “informational”). Another way to approach this is to enter your book price for your specific bond into Bloomberg or another calculator and see if the resulting yield at recent speeds (say the past three months’ average) is similar to your book yield (there will be some difference in any case due to “delay,” which is ignored in book accounting). The solution, if different, is to reset the speed assumption in your accounting system to match the recent months’ average or, in the case of “Amortize-To” methods, reset the date to the newly-determined average life based upon a reasonable prepayment assumption by today’s standards. In fact, many systems provide the option to automatically reset premium amortization assumptions each quarter or month based on the preceding three months’ actual prepayment speeds. You should be able to have your accounting service make this the default setting for you, or to at least adjust your amortization based upon any discrepancies this test reveals.

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Check Level Three: Let me first warn you that this deepest check requires the most hands-on management—but it is also the most conservative and prudent and, if applied, should be applied consistently to satisfy accounting standards. Check Level Two is based upon historical speeds, and thus there is danger of always being somewhat behind, or at best current. Check Level Three employs a “forward-looking level yield” approach. In this check, you use neither recent nor current prepayment speeds, but rather an educated projection of future prepayments (such as a forward-looking prepayment vector). Provided that you are consistent, you can incorporate a variety of factors into your forward-looking speed assumptions, such as rate-incentive in the current market, recent speeds, activity in the refinance application index, or the likelihood and potential impacts of special events such as HARP 2.0. Using a third party’s projections could also be sensible. At any rate, effectively performing Check Level Three will likely require you to have a more intimate knowledge of your accounting system or to engage your accounting service provider rather actively.

experience, both in terms of being the most likely to be incorrectly amortizing and the ones with the biggest and most painful discrepancies once problems are eventually discovered.

I Urge You to Be Proactive on this Issue Improperly amortizing bond premiums could lead to accounting, earnings, and regulatory challenges. The longer the improper amortizations persist—or the later they are discovered—the greater the hazard. Please seek the assistance of your bond accounting service provider if you are unable to easily conduct these checks yourself; don’t let the daunting size of the task lead to dangerous delays. In the words of Poor Richard:

“A stitch in time saves nine.”

Heads Up Whatever level of investigation you manage, I would encourage you to pay particular attention to your locked-out bonds (i.e., CMOs that are not currently paying principal, only interest). These have been some of the greatest offenders in my

About the Author Doug Wilding, Managing Director Performance Trust Capital Partners, LLC 312.521.1420 | douglasw@performancetrust.com

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Feature

Financial Literacy INTRODUCTION TO THE THREE FINANCIAL LITERACY ARTICLES:

inancial literacy in today’s world is of the upmost importance. The Young Bankers Division of SCBA is charged with promoting financial literacy across the state. The national volunteer education program known as PEP consists of bankers working within their communities to teach citizens about personal financial management, banking and banking services in an effort to help them take control of their finances. PEP largely takes place in schools and classrooms across the state, but is not just for students! PEP is for everyone, regardless of age. The program provides an opportunity for banks and bankers to become more aware of their community and consumers’ needs and perceptions. The ultimate goal is to assist consumers in making educated financial decisions. Let’s take a look at some of our star volunteers:

Carolina Alliance Bank

During these tough economic times with high unemployment, fiscal responsibility has become an essential part of every day life. It is our hope that these students will retain this knowledge of how to manage their money soundly on into adulthood which will help them as individuals, as well as benefit our community, our state, and our nation. There have been many instances when I have seen a student really grasp the subject matter, especially when they figure out that you can earn money by keeping money in the bank. These moments are why the personal economics program is important to me. Throughout my life I have had great family support, as well as multiple teachers, mentors, and coaches who have invested time in me; therefore, to be able to invest time in these students has been a terrific experience! – Cal Wicker, Carolina Alliance Bank

Palmetto State Bank

Calvin J. “Cal” Wicker, Credit Analyst, Carolina Alliance Bank, Spartanburg, assisting in the classroom

At Carolina Alliance Bank, we hold ourselves responsible for the betterment of our community. One way in which we promote community growth is through our financial literacy programs. We began our financial literacy efforts in April 2011; and since then we have reached over 250 elementary students with our Teach Children to Save program and over 100 high school students with our Get Smart about Credit program. Our bank has many dedicated volunteers who have made these campaigns a great success! We have delivered lessons to Spartanburg High School and Broome High School, as well as Cooley Springs-Fingerville Elementary, E.P. Todd School, Jesse Boyd Elementary, Mary H. Wright Elementary, Park Hills Elementary, and Pine Street School. Teaching lessons at Pine Street School and Spartanburg High School was extra special for me, as I am an alumnus of both institutions. In the future, we are looking forward to partnering with even more schools so we can reach even more students!

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Financial literacy in South Carolina is more important than ever in today’s changing world and unstable economy. This is why the role the South Carolina Bankers Association is playing is such an important one in our states financial future through the PEP program. This program is essential in teaching children and adults alike the importance of sound financial practices through education. In presentations and forums to school aged children, from elementary to high school, we became aware of the lack of knowledge surrounding finances, the importance of savings, and establishing healthy credit. Schools no longer take the lead in educating students in financial planning and many do not receive instruction at home. It is more important than ever for organizations and programs such as ours to assist with this education to ensure children of all ages have the tools needed to make sound financial decisions in the future. I feel that in our community the best place to start is in our high schools, these young people will be the next generation of customers flooding our market. I believe if we can educate them now and show them the direction that will lead them down the right financial path we will have a better customer base in the future. I have one story of a young man that sat in on a talk I did at the local high school and about five years later came to my office. He told me that the information that I gave him that day has stayed with him and directed him through his college years. The reason he was in my office was to apply for a home loan that I’m glad to say he had no problem getting and he is know a very valuable customer of mine. That is just one example of many that we all have experienced in PEP. – Chad F. Westendorf, Palmetto State Bank

Wells Fargo Places Emphasis on Financial Literacy Wells Fargo has participated in the Teach Children to Save campaign for eight years, with a growing number of team members participating each year. In 2012, 87 Wells Fargo team members partnered with schools and nonprofits across South Carolina to reach

Stan Kelly, Regional President of Community Banking in the Carolinas, Wells Fargo, answering questions in the classroom from inquisitive young minds

more than 4,100 participants. Team members focused on reaching students at Title 1 elementary schools, where they read the Scholastic Book “Sam and The Luck Money” to second and third graders. Each reading was followed with a mini budgeting and savings lesson. Wells Fargo includes a goal for financial literacy in its Visions and Values: “We want all of our team members and customers to be smart and sensible about credit and financially literate—the gateway to economic self-sufficiency.” Partnering with communities through

schools and non-profits helps educate customers on the importance of establishing a systematic savings program within their individual financial plan. In addition, Wells Fargo has created its own web-based financial education curriculum, entitled Hands on Banking. This free, noncommercial program teaches people in all stages of life about the basics of responsible money management. It is available in English and Spanish, and aligns with state and national education standards for mathematics, reading and economics. Hands on Banking includes resources for individuals, educators, non-profits, small business and workplace. Please visit www.handsonbanking.org to access the site. Kimberly Davis, Community Development Officer for Wells Fargo in South Carolina, has been with the company for 25 years and enjoys presenting budgeting and money management to students, particularly those in college. “I think it is interesting to hear older students discuss needs versus wants, creating a spending plan and actually following a plan,” said Davis. “I use age-appropriate life examples to get and to keep the attention of the audiences. In addition, I actively seek participation of the audience. I never stand behind a podium or use handouts in this advanced technology age.” She attributes her success in winning audiences to engaging them in a fun conversation that never runs longer than an hour. “It’s important that we reach students at any age to help them understand the importance of budgeting and basic money management skills,” she adds. “Our goal at Wells Fargo is to help everyone succeed financially, no matter how old they are.” – Kimberly Davis, Wells Fargo

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15 Palmetto Banker

Meet SCBA’s New Chairman

Rick Redden, Chairman of the Board South Carolina President for Wells Fargo

Tell me about yourself. How would you describe your career? How did you become a banker?

A: Growing up, my family moved around a lot for my father’s job. We finally settled in Mount Pleasant, South Carolina, where I attended Wando High School. I later attended Appalachian State University where I majored in business. After graduation, I attended Georgia Tech where I earned my master’s degree in business administration. My interest in business developed early on in my youth. My father was an executive with Hanes and later VF Corp. He would often discuss business and share business-related thoughts at the dinner table. I initially developed a great appreciation for business leadership through his perspective and insights. When it came time to choose a major in college, it seemed natural to pursue a degree in business. During my studies, I became interested in the financial aspects of running and growing successful companies. Upon graduating from Georgia Tech, I decided to pursue a career in banking. My family spent many years in Winston-Salem when I was young, so I was familiar with Wachovia Bank, and thought it might be a good fit. I applied for and accepted a position with Wachovia in early 1993 as a Corporate Associate. Shortly thereafter, I was promoted to Relationship Manager in the bank’s corporate banking division. I really enjoyed being a relationship manager. It gave me an opportunity to work directly with business owners and CEOs and gave me greater insight into how businesses operate their needs and challenges. This experience also gave me a better understanding of the important role bankers play in helping local businesses grow and thrive. In 1995, I moved back to Charleston and soon became the Regional Commercial Banking Manager where I led a team of bankers focused on serving the financial needs of mid-sized businesses. I was later named Chief Credit Officer for South Carolina and then

promoted to Senior Lending Officer for community banking across the Carolina’s. In 2007, I was promoted into my current position as President of Wells Fargo’s regional banking activities in South Carolina. Since assuming this role five years ago, there have been dramatic changes in our industry, but the one thing that hasn’t changed is the important and special role bankers play in the lives of customers, companies, communities and local economies. While there have been major changes in our industry and within my own organization, the heart of what we do remains the same. We are here to satisfy our customers’ financial needs and help them to succeed financially.

With regard to the mission of the SCBA, what are your big plans/goals for the coming year?

A: Over the past 25 years, Lloyd Hendricks and the staff have done a fantastic job helping our industry in their leadership of the SCBA. I want to thank Lloyd for his many contributions to our association. I am excited that Lloyd has a seasoned and influential successor in Fred Green. I look forward to working closely with Fred and supporting him as he embarks on his first year as our CEO. It’s important that the SCBA serve as an advocate for our industry in the public and private arena. One of our key goals this year is to bring to life the strategic plan that the SCBA leadership team worked so hard to create last year. Another important initiative for the SCBA is to help in “telling our story” as an industry, of the significant impact and good work that we do for SC. Given today’s environment, it’s important that the SCBA play an active role in increasing communication efforts to a variety of constituencies including legislators, media, community leaders and the public. We need to restore confidence and showcase the meaningful contributions that the financial industry has made in our local economies, communities and in the lives of consumers throughout the state. The financial services industry is a major employer with approximately one in every 67 employed South Carolinians working in our industry. We are a catalyst for economic development and job creation by providing billions of dollars in capital to support the growth and expansion efforts of local businesses. We are community leaders. Our bankers volunteer tens of thousands of hours of service and our organizations give tens of millions of dollars to local nonprofit organizations. We are helping thousands of residents buy homes, save for retirement and send their children to college. Our industry is making a positive impact throughout the Palmetto state! This is an important message that needs to be told!

What are the biggest challenges facing our industry in South Carolina and in the nation?

A: The challenges we face in South Carolina are not unique to what others are facing throughout the country. I think the economy, unem-

Rick Redden makes a presentation on Teach Children to Save Day

16 Palmetto Banker

ployment rate, consumer confidence and regulations will continue to weigh on our industry. I also think capital and the importance of earnings diversification will to be critical to the health, recovery and stability of our financial institutions.

How can bankers address the needs of communities? What are the greatest opportunities?

I believe our responsibility goes beyond protecting our customers’ assets. Our industry is responsible for being leaders to promote the long-term economic prosperity and quality of life for everyone in our communities. After all, there’s never been a thriving bank in a struggling community. We not only have a responsibility, but an opportunity to be a driver of economic activity. The key areas where our industry should be focusing its efforts are providing access to capital for consumers and businesses and investing in initiatives that promote economic development and job creation. We should also be engaged community leaders and promote volunteerism within our organizations. With over 30,000 people working in financial services in SC, imagine the impact we can collectively have through volunteer and leadership efforts in our local communities. Our greatest opportunity through the SCBA is when we unite as an industry to work in the best interests of our customers and communities across South Carolina to drive economic development and job creation.

What’s your mantra around the office?

I always tell my team that leadership matters. The way that we lead has so much bearing on the culture of our company. Regardless of your title or tenure, every single person in our organization is a leader. When a customer walks through our doors, our team members should feel empowered to use their good judgment to do what’s right for our customers. By giving your team members the confidence in themselves to make good decisions, you are greatly increasing engagement. This in turn results in a stronger culture that is more productive and consistently provides great customer service.

What advice would you give a young banker?

A: From my experience, I would challenge young bankers to really think about what they want to accomplish and have a plan to get there. I’ve known a few people who “wandered aimlessly” to success, but I’ve known absolutely no one who “wandered” their way to greatness. You have to constantly sharpen your skills to get better. The financial services industry is complex and always changing, so you have to be resourceful and never stop learning. Really practice your craft and find a mentor to help you in your development. I had the privilege of working under former Wachovia CEO John Medlin’s leadership. He led with integrity and stood for all the things that make our industry great. I’ve always aspired to be the kind of leader John was. He taught me to lead with humility, self-awareness and conviction.

What is the last book you read?

A: The Extraordinary Leader: Turning Good Managers into Great Leaders by John Zenger. People often try to get better by “fixing” some talent or skill gap. This book suggests that the leap from good to “extraordinary” leadership occurs when you elevate the skills or talents that you already have and leverage them to strengthen your strengths. What I love about this concept is that it’s a positive way to help your leaders pinpoint and maximize the leadership qualities they already possess.

What do you like to do when you are not working?

A: I spend most of the work week on the road traveling to three to five markets and visiting with customers and team members. On the weekends, I enjoy spending time at home near Charleston with my wife of 22 years, Angela, and our two children, Forrest (14) and Merritt (10). We love our time on the water, whether it’s boating, tubing or just tying up with friends and enjoying some fellowship.

The Honorable Steve Benjamin, Mayor of Columbia, and Rick Redden ride the Wells Fargo Stagecoach into Columbia

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Annual Convention

Celebrating the Past and the Future of the South Carolina Banker Association 112th SCBA Convention

he Cloister and The Lodge at Sea Island, Georgia, was the idyllic setting for the 2012 South Carolina Bankers Association’s Annual Convention. The Golden Isles of Georgia offered the perfect venue to honor Lloyd I. Hendricks upon his retirement as President & CEO of the South Carolina Bankers Association. The convention provided many ways to recognize Lloyd’s twenty-five years of service as over 475 bankers, associate members, exhibitors, spouses

and guests were there to offer best wishes and appreciation for his contributions to the SCBA. It was an exquisite location for SCBA’s line-up of speakers, vendors and enlightening business sessions. Attendees were introduced to Fred L. Green, III, president and CEO of the South Carolina Bankers Association. Fred joins the SCBA with a wealth of knowledge having spent his career in banking. During the convention Fred was able to reacquaint with countless banking friends and spend time getting to know many SCBA members. Chairman Sharon W. Bryant presided over the business sessions where attendees had the opportunity to hear Albert C. “Kell” Kelly, Jr., Chairman of the American Bankers Association and president and CEO of SpiritBank in Oklahoma; Dr. Harris Pastides, President, The University of South Carolina and Robert Ariail, Editorial Cartoonist, The Spartanburg Herald Journal. For the first time during the convention, break-out sessions were held. The well received sessions were: A New Era in Community Banking: the Path to Future Profitability Legal, Accounting and Legislative Issues Affecting Banking What Does the Community Bank of the Future Look Like?

See You Next Year! 2013 SCBA Convention The Sanctuary Kiawah Island, South Carolina Chairman Rick Redden wishes to invite you to the 2013 Convention at The Sanctuary, Kiawah Island, South Carolina June 9-12, 2013.

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Two very special events drew large crowds. Patricia Moore Pastides, First Lady, The University of South Carolina, and author of Greek Revival: Cooking for Life charmed participants at a luncheon featuring culinary delights from her cookbook and her presentation of the health benefits of the traditional Mediterranean diet and lifestyle. The prayer breakfast was brought back this year and featured Reverend Dr. Bradley Smith, Founder, Souper Bowl of Caring and Senior Pastor, Eastminster Presbyterian Church, Columbia. To honor the family of Chairman Sharon W. Bryant, a contribution was given to the Souper Bowl of Caring from the South Carolina Bankers Association. On Tuesday evening twenty-two SCBA past chairmen from the years 1984 through 2011 convened at a reception to toast Lloyd. Almost all past chairmen that served during Lloyd’s tenure were in attendance and the SCBA was most appreciative of their participation. The convention concluded on Tuesday evening after a Gala Celebration honoring Lloyd I. Hendricks. The evening had a video tribute to Lloyd, remarks by Chairman Sharon W. Bryant, Fred L. Green, III, Sidney B. Tate and Lloyd, toasts, dinner, dancing and a show performed by The Pink Flamingos. What a grand finale to the 112th SCBA Convention! Many thanks to the sponsors, exhibitors, associate members and bankers for a very special and successful convention of the South Carolina Bankers Association!

ristian ks, with Jennifer and Ch Lloyd and Sue Hendric ment celebration Hendricks, join the retire

So ut hc oa st Pe ar so n, W ay ne Patricia d an , nk Community Ba Suzi Clawson, Pearson with d ler, Boyd, PA an Haynsworth, Sink Robert Clawson

Up to no good - Jim Brant, SCBT; Glenn Blackwood, Equias Alliance; Parker Grubbs, Center State Bank; Thornwell Dunlap, Countybank; and Neal Anderson, Anderson Brothers Bank

Carolyn and Fred Antley, The Plateau Group, catch up with Joye and Mike Wolfe, First Citizens

Atlantic Bank Scott Plyler, South r who loaded with Marshall Plyle g the trade rin du up on ribbons show

Laffitte, , with Henry Spann Laffitte George e Bank and Palmetto Stat s conou wearing his fam Huttonâ&#x20AC;ŚHenry vention jacket

Kell Kelly, ABA Chairman addresses the attendees

Sherry Reddick, Flex Pay, an SCBA Preferred Vendor, speaks with David Morrow, CresCom

Fred Green, SCBA and Tho rnwell Dunlap, Countybank reminis ce

Eliza and Tyler Hudson, NBSC, with Banks and William

Past Chairman Mason Ga rrett, Grand South Bank; Past Chairman John Dic kens and Charles Eldridge, BNC Bank reunite

Tim and Susan Koch, Wells Fargo; James Benn ett, First Citizens; Jessica Shand, Decision Dyna mics, Inc.; Peter Shand, First Citizens; and Peter Bristow, First Citizens

19 Palmetto Banker

Annual Convention

35-Year Club

Every year at the Annual Convention, the South Carolina Bankers Association congratulates those who have served 35 or 50 years!

Sue Adams, Assistant Branch Manager, Banking Officer, SCBT, Walterboro Joseph W. Amy, Executive Vice President and Chief Credit Officer, First Federal Bank, Charleston Barbara Anderson, Marketing Manager, NBSC, Columbia Debbie M. Anderson, Teller Leader, First Citizens, Mullins J. Rodger Anthony, CEO, Cornerstone National Bank, Easley Robert C. Bailey, Senior Vice President, Branch Operations, First Federal Bank, Charleston Cappy Boswell, Manager of Retail Banking, NBSC, Columbia Kathryn Burnette, Project Manager, First Citizens, Columbia Kenneth J. Clair, Senior Vice President, Director Retail Credit, First Federal Bank, Charleston Martha S. Cole, Mortgage Loan Originator, The Bank of South Carolina, Charleston Andrea M. Davis, Financial Center Manager, First Federal Bank, Charleston

Carolyn J. Doig, Marketing Assistant III, First Federal Bank, North Charleston Randy K. Dolyniuk, Chairman and CEO, Coastal States Bank, Hilton Head Island Sandra DuBois, Heritage Community Bank, McBee Janice C. Eaddy, Retail Sales Manager, First Citizens, Florence Dale H. Ellis, Senior Construction Loan Inspector, First Federal Bank, Myrtle Beach Michael Evans, Retail Operations Manager, Senior Vice President, SCBT, Orangeburg Glenda E. Gales, Customer Service Representative, The Bank of Clarendon, Manning Lou Galloway, BB&T Insurance Services, Columbia Agnes Genwright, Teller, First Citizens, Mullins Cherry Gerrald, Retail Sales Manager, First Citizens, Florence John D. Gilbert, III, Home Loan Consultant, First Federal Bank, Charleston

Randy K. Dolyniuk, Chairman and CEO of CoastalStates Bank, Hilton head Island, SC, receives his 35 Year Club award from E. Anne Gillespie of the SCBA.

20 Palmetto Banker

Eleanor Anne Gillespie, Senior Vice President, South Carolina Bankers Association, Columbia Frank Hafner, BB&T Insurance Services, Columbia William S. Harrill, Jr., Senior Vice President, Greer State Bank, Greer Cheryl Helms, Store Manager, Wells Fargo, Mauldin Stewart J. Hull, VP - Home Loan Consultant, First Federal Bank, Charleston Cynthia Hunt, Branch Manager, Vice President, SCBT, Walterboro Brenda Jennings, Lead Teller, Wells Fargo, Lyman Dorothy A. Johnson, Records Assistant, First Federal Bank, North Charleston Kristie Joyner, AAII - Lender Support, BB&T, Columbia Martha B. Kinard, HMDA Data Assistant, First Citizens, Columbia Sterling J. U. Laffitte, President, Palmetto State Bank, Estill Lesley M. Lampert, SVP - Senior Compliance Officer, SCBT, Columbia

E. Anne Gillespie, SCBA, receives her 35-year award from Lloyd Hendricks, SCBA and SCBA Treasurer David Lominack, TD Bank

Wanda LeBlanc, Compliance Manager, First Citizens, Columbia Diane K. McCord, Senior Vice President/ Mortgage Loan Officer, The Bank of Clarendon, Manning Carol Maroska, Business Banker, Wells Fargo, Rock Hill Mary Jane Martin, Customer Service Representative, Horry County State Bank, Socastee Mary Ann Michaels, Personal Banker, Wells Fargo, Conway Jane Moore, Vice President Credit Administration, Peoples Bancorporation, Easle Cherry R. Nicholson, Vice President, CSR, Blue Ridge Bank, Walhalla Rita M. Pittman, Deposit Operations Manager, First Citizens, Columbia Beverly Raley, Heritage Community Bank, McBee Donna N. Reaves, Personal Banker II, First Federal Bank, Florence W. D. Rhoad, III, Director, Home Federal Savings and Loan, Bamberg

Sterling Laffitte, Palmetto State Bank, also joins the 35-year club and is welcomed by Lloyd Hendricks, SCBA; and SCBA Treasurer David Lominack, TD Bank

35-Year Club Betty R. Riley, Support Services Associate, First Community Bank, Lexington William Robinson, Loan Operations Specialist, First Citizens, Columbia Linda W. Rorie, Relationship Banker, Greer State Bank, Greer

Judy Rowell, Assistant Vice President, Loan Officer, Horry County State Bank, Mt Olive Nancy H. Smith, Vice President & Operations Officer, Cornerstone National Bank, Easley

Carole Stroud, Vice President, Greer State Bank, Greer Sandra Szarek, Loan Processor, CresCom Bank Jack Torlay, Vice President, Application Support, First Federal Bank, Charleston

Dianne Weathersby, Senior Teller, BB&T, Red Bank John Welch, Commercial Lender, Senior Vice President, SCBT, St. George Patrice Workman, Teller, Wells Fargo, Greenville

Half-Century Club (L) Wayne Hall, President & CEO of First Federal Bank in Charleston, presents the SCBA 50-Year award to Al Hutchinson, former President & CEO, currently Director Emeritus, of First Federal Bank.

William O. “Bill” Buyck, Sr., Chairman of the Board, CEO The Bank of Clarendon, Manning A.L. Hutchinson, Jr., Former President and CEO, Currently Director Emeritus, First Federal Bank, Charleston

(R) Frances R. Buyck joined the SCBA 50 Year Club in 2011. Here she presents the 2012 50 Year Club Award to her husband, William O. Buyck, Sr., Chairman of the Board, CEO, The Bank of Clarendon, Manning.

In Memoriam The Annual Convention Affords Bankers Time To Remember Those Who Are No Longer With Us.

August 2010 Pamela J. Ellwanger, Financial Services Representative, First Federal Bank, Mt. Pleasant Cadwallader “Quaddy” Jones, Director Emeritus, First Federal Bank & First Financial Holdings, Inc., Charleston

Lewis M. Henderson, Board Member, First Citizens, Columbia David S. Spell, Senior Vice President, Human Resources, First Federal Bank, Charleston August, 2011 N. Welch Morrisette, Jr, Board Member, First Citizens, Columbia

March, 2011 Betty H. Tucker, Sr. (Retired) Construction Loan Assistant, First Federal Bank, North Charleston

September, 2011 Evelea Threadgill, Branch Manager, Peoples Federal, Florence

July, 2011 Floyd Buckner, Director, First Federal of SC, Walterboro

October, 2011 Jackie Elmore, Training Director, NBSC, Columbia

February, 2012 Robert W. Owen, Sr., Director, Newberry Federal Savings & Loan Aileen S. Meetze, Senior Vice President, The Bank of South Carolina, Charleston Malcolm M. “Mack” Erwin, Jr., Vice President (Retired) Marketing, First Federal Bank, Charleston Theodore J. “Ted” Simons, Senior Vice President, Loan Department, First Federal Bank, Charleston Teresa D. Mills, Vice President, Marketing Director, Peoples Bancorporation, Easley

How Can I Honor My Colleagues? Each spring, prior to the annual convention, the SCBA reminds bankers to issue their company’s necrology report so that our colleagues may be honored at the business session and in this account.

March, 2012 Robert R. “Bob” Spearman, Director, Cornerstone National Bank, Easley Michael A. Speeg, Application Analyst, The Palmetto Bank, Laurens April, 2012 Jimmie O. Jamison, Business Developer, First Citizens, Batesburg David P. George, Jr, Director Emeritus, The Palmetto Bank, Greenville Janet Youngblood, Senior Consumer Lender, Senior Vice President, SCBT, N.A., Ridgeland May, 2012 William A. “Bill” Carr, Director Emeritus, The Peoples National Bank and Peoples Bancorporation, Easley

21 Palmetto Banker

Annual Convention

Boyd, PA Bill Short, Haynsworth, Sinkler, Chairman A and his wife Sally talk with SCB Dene and and , zens Citi Sharon Bryant, First , PA Boyd ler Sink rth nswo Hay Chip King,

Bank, Jim Smith, Sandhills y and ned Ken en ldr chi with his heat the from off l coo w, dre An m. with some ice crea

SCBA Past Chairman, 2002-2003, Mike Crapps, First Community Bank and Kay with Linda and Bill Stevens, Park Sterling Bank

Da vid Tre asu rer SCB A with k, Ban TD ck, Lomina Courtney, James, Henry and te Lynne, enjoy the Gradua n nio Reu g kin Ban Schools of

in, Home ch, Bo Griff un B e joy lly Sa ose Hicks en Allen and l and Betty R gi ir V d an ; Federal ival luncheon the Greek Rev

d BA, thanks Lloy Fred Green, SC s leadership Hendricks for hi

22 22Palmetto PalmettoBanker Banker

Dr. Harris Pastides, University of South Carolina, discusses higher education

Tommy Johnso n, Citizens Building and Lo an, and his wife Martha dance th e night away

Mickey Renner, Wells Far go, and his wife Angie visit with Jason Caskey , Elliott Davis, LLC

Mattie Dell Anderson , Grayson Connor (daughter of Wade Connor), and McClain Anderson toast their friendship at the Ice Cream Social

SCBA First Vice Chairman Art Seaver, Southern First Bank and his wife Sally enjoy Michaele and Scott Plylerâ&#x20AC;&#x2122;s company

Twenty-two SCBA Past Chairmen gather to toast Lloyd Hendricks on his 25 years of service and accomplishments

The Bryant family is recognized for their support onist iail, Editorial Carto

South Carolina Bank

ers in training

Robert Ar

SCBA Past Chairmen, 19992000, Jim Apple, First Citizens and SCBA Past Chairman, 1998-1999, Sid Tate, reconnect

1992-1993; Ethel Ann Past Chairmen reception, Steve Chryst, tte, Sterling Laffitte, Chryst, Jim Lindley, 1984-1985; Lin Laffi Leon Patterson, 1; -201 2010 2008-2009; Teresa Knight, John Dickens, and 0; -201 2009 ett, 1986-1987; Chuck Garn 1995-1996

Chairman-elect Rick Redden thanks Sharon Bryant for her leadership during the past year

Patricia Moore-Pastid es happily signs her cookbook during the special event luncheon

SCBA Chairman Sharon W. s Bryant, First Citizens welcome the members

and Dorn Smith, The Citizens Bank, k Ban ral Fede First k, Swin ry Hen

k Redden congratuSCBA Chairman-elect Ric Fargo teammate lls We lates Holt Chetwood,

Brad Smith, Senior Pastor Eastminster and founder of the Souper Bowl of Caring, leads the prayer breakfast

The Pink Flamingos make a grand entrance

SCBA Chairman-elect Rick Redden, Wells Fargo; Marni and Holt Chetwood, Wells Fargo; and Angela Redden visit during the opening reception

23 Palmetto Banker

Annual Convention

BankPAC

Thank you to all those listed below for making a donation to our BankPAC Silent Auction at the Annual Convention. A total of $5,072.00 was raised. Thank you also to all those who placed bids and made some great purchases. Your support is greatly appreciated.

Abbeville Savings and Loan Abbeville

Community Bankersâ&#x20AC;&#x2122; Bank Midlothian, VA

Sandhills Bank North Myrtle Beach

Alostar Bank of Commerce Columbia

CresCom Bank Charleston

SCBA Services, Inc.

Anderson Brothers Bank Hemingway

Federal Home Loan Bank of Atlanta

SCBT Columbia

First Citizens Columbia

South Atlantic Bank Myrtle Beach

First Community Bank Lexington

Southern First Bank Greenville

First Data/Star Network Columbia

TD Bank Greenville

Heritage Community Bank Hartsville

The Bank of Clarendon Manning

Home Federal Savings and Loan Bamberg

The Citizens Bank Olanta

Mauldin and Jenkins Atlanta, GA

The Palmetto Bank Greenville

NBSC Columbia

Vantive John Creek, GA

Oconee Federal Savings and Loan Seneca

Wells Fargo Charleston

Palmetto State Bank Estill

Woodruff Federal Savings and Loan Woodruff

Bank of Greeleyville Greeleyville BB&T Columbia Blue Ridge Bank Walhalla Blue Cross Blue Shield Columbia BNC Bank Myrtle Beach Bryan Cave LLP Charlotte, NC CBC National Bank Beaufort Citizens Building and Loan Greer Clover Community Bank Clover

Porter Keadle Moore LLC Atlanta, GA

Coastal Carolina National Bank Myrtle Beach

2012

Convention Exhibitors Much appreciation to the following exhibitors for making our trade show such a success

360 View Bankerâ&#x20AC;&#x2122;s Dashboard BlueCross BlueShield of South Carolina Broadridge Financial Solutions Calyx Software Consultants and Builders, Inc. CRS Data Flex-Pay

24 Palmetto Banker

Jack Henry Banking ICS Risk Advisors Ken Smith, Inc. Rogers Realty & Auction SCBA Services, Inc. Tyson Sign Company Vantiv Works 24

25 Palmetto Banker

Annual Convention

2012 Tournament Winners Congratulations to the following teams and individuals for winning the golf and sporting clays tournaments!

Golf Tournament First Place Team: Andy Mitchell, Elliott Davis, L.L.C, Greenville Sam Erwin, The Palmetto Bank, Greenville Neil Rashley, SCBA, Columbia Steve Bryant, Columbia Second Place Team: Shawn Martin, CRS Data, Fort Mill Mike Mahoney, Bank of Greeleyville, Greeleyville Jim Vaughn, Mauldin & Jenkins, CPA, L.L.C., Albany, GA Blake Gibbons, The Citizens Bank, Olanta Closest to the Pin: Joey Bostick, The Citizens Bank, Olanta

Sally Seaver, chairman of the tennis tournament, demonstrates her pow erful volley

Longest Drive: Harry Huntley, SC JEDA, Columbia

Sporting Clays Tournament Champion – Fred L. Green III, SCBA Lewis Class Winners: A1: Randy Knight, Greenwood A2: Ted Brunson, Security Technology Services, Inc. B1: Teresa Knight, The Palmetto Bank B2: Sid Tate, Past Chairman, SCBA C1: Glenn Buddin, Blue Ridge Bank C2: Bill Askins, The Citizens Bank

Randy and Teres a Knight, The Palmetto Bank; Charlie, El izabeth, and Dorn Smith and Bill Askins participate in the Sporting Clays

D1: Justin Strickland, Southern First Bank, N.A. D2: Jim Brant, SCBT Much appreciation to those who chaired the tournaments!

Golf – Frank Townsend, Southern Bank & Trust, a division of Georgia Bank & Trust, Aiken Sporting Clays – Randy and Teresa W. Knight, The Palmetto Bank, Greenville Tennis – Sally Seaver, Greenville

Elizabeth Laffitte serves up a big hit during the tennis tournament

Golfers take a practice swing prior to the nk and tournament beginning Ba ern uth So r), nte (ce d sen wn To k an Fr , orgia Bank and Trust Trust, a division of Ge s, kin Jen in uld Ma , (left) presents Jim Vaughn nk ght), The Citizens Ba (ri s on bb Gi ke Bla d an with golf prizes

26 Palmetto Banker

Winning golf team

New Officers Terms are from July 1, 2012 until June 30, 2013

Chairman

Chairman-Elect

First Vice Chairman

Treasurer

F. Richard “Rick” Redden, III

R. Arthur “Art” Seaver Jr.

H. Blake Gibbons, Jr.

David M. Lominack

Wells Fargo Charleston

Southern First Bank, N.A. Greenville

The Citizens Bank Olanta

TD Bank Greenville

New Board of Directors Terms are from July 1, 2011 until June 30, 2012 President & CEO Fred L. Green, III

Young Bankers Chairman R. Montague Laffitte, III

Group III Director Francis A. “Frank” Townsend, III

South Carolina Bankers Association Columbia

SCBT Columbia

Southern Bank & Trust, a division of Georgia Bank & Trust Aiken

Immediate Past Chairman Sharon W. Bryant

South Carolina Bankers School Laurence Bolchoz

First Citizens Columbia

Coastal Carolina National Bank Myrtle Beach

2nd Immediate Past Chairman Teresa W. Knight

Group I Director William G. “Gary” Horn

The Palmetto Bank Laurens

CBC National Bank Beaufort

Community Bankers Council David G. Barnett

Group II Director Jack Goettee

Pinnacle Bank of SC Greenville

SCBT Columbia

Group IV Director J. Thomas “Tommy” Johnson Citizens Building and Loan Greer

Group V Director J. Glenn Anderson Spratt Savings & Loan Association Chester

Group VI Director J. Barry Ham The Bank of Clarendon Manning

Members at Large One Year Fleetwood S. Hassell The Bank of South Carolina Charleston

R. Scott Plyler South Atlantic Bank Myrtle Beach

Two Years Thomas “Tommy” Bouchette BNC Bank Myrtle Beach

J. Ted Nissen First Community Bank Lexington

Three Years Walter Davis CertusBank Greenville

John W. McAlister Bank of America Charlotte

27 Palmetto Banker

Welcome, New Associate Members All Clear System, LLC

Forms & Supply, Inc.

235 East Center, Suite 200 Kingsport, TN 37660

PO Box 563953, Charlotte, NC 28256 (mailing) 6410 Orr Road, Charlotte, NC 28213 (physical)

Contact: Kevin W. Mullins, Chief Executive Officer Phone: 423-285-6500 Fax: 423-285-6505 Email: kevin@allclearsystem.com Website: www.allclearsystem.com

Contact: Kim G. Leazer, VP of Sales and Customer Service Phone: 7004-598-8971, ext. 275 Fax: 704-596-0713 Email: kim.leazer@formsandsupply.com Website: www.fsioffice.com

Description: Protect your employees by providing safer opening and closing procedures with the All Clear System ™. All Clear System offers the first technology-based communications process to safeguard your assets and employees when they are most vulnerable – during the opening and closing process. All Clear System also provides a bank-defined dashboard of real-time information for monitoring your human resources, including storing data needed for compliance audits and reporting. All Clear System ensures your institution’s safety procedures meet federal regulations, while giving your valued employees protection and peace of mind. With thirty-plus years of experience in banking and consulting, the founders of All Clear System have developed a state-of-the-art alert system that is filling a void in bank security technology. Endorsement: Bradley L. Barrett, President Tennessee Bankers Association

Description: A Single Source Provider of Office Needs 1. Office Products 2. IT Supplies 3. Jan/San 4. Breakroom 5. Furniture 6. Equipment 7. Ad Specialty Products 8. Printing Endorsement: Robert Hucks, Vice President Coastal Carolina National Bank

Keefe, Bruyette & Woods Two James Center, 1051 E. Cary St., Suite 1950, Richmond, VA 23219 (mailing) 787 7th Avenue, 4th Floor, New York, NY 10019 (physical)

Angel Oak Advisory 3060 Peachtree Road, Suite 1080 Atlanta, GA 30305 Contact: Wesley Pritchett, Managing Director Phone: 404-671-3215 Fax: 404-953-4988 Email: wes.pritchett@angeloakcapital.com Website: www.angeloakadvisory.com Description: Angel Oak Advisory pairs deep financial services expertise with a practitioner’s perspective on risk governance and balance sheet management issues. Angel Oak works within each client’s parameters as well as its culture to develop and implement risk management solutions. Every assignment receives senior level attention through all stages of the engagement. Our highly efficient processes and team-oriented approach maximize results. Our services include: Model Validation, Portfolio Analysis, Cash Management Services, Stress Testing, Asset Liability Management, Liquidity Management, as well as advice on the new regulatory “hot button,” Enterprise Risk Management. Endorsement: Ben Seabrook, Executive Vice President/COO SouthCoast Community Bank

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Contact: James C. Mabry, IV, Managing Director Phone: 804-643-4250 Fax: 804-643-4253 Email: jmabry@kbw.com Website: www.kbw.com Description: Keefe, Bruyette & Woods (KBW) is a global, fullservice investment bank that specializes exclusively in the financial services sector. Our focus includes banking and insurance companies, real estate companies and REITS, broker-dealers, mortgage banks, asset management companies, and specialty finance companies. KBW has established industry-leading positions in the areas of research, corporate finance, mergers & acquisitions, and sales & trading. Endorsement: Fred Green, President & CEO South Carolina Bankers Association

Welcome, New Associate Members McGladrey, LLP

Secura

4725 Piedmont Row Drive, Suite 300, Charlotte, NC 28210 (mailing) 3600 American Blvd West, 3rd Floor, Bloomington, MN 55431 (physical)

3535 Peachtree Road, Suite 520-547 Atlanta, GA 30326

Contact: Tracie DeVane, Senior Marketing Associate Phone: 704-367-6250 Fax: 704-517-7084 Email: john.brackett@mcgladrey.com; bob.dynko@mcgladrey.com Website: www.mcgladrey.com Description: McGladrey, LLP operates under the McGladrey brand as the fifth largest U.S. provider of assurance, tax and consulting services, with nearly 6,500 professionals and associates in more than 70 offices nationwide. McGladrey is a leading provider of ERM, internal audit, IT audit, Sarbanes-Oxley, regulatory compliance and loan review services to financial institutions. Our experienced team services banks throughout South Carolina, combining the expertise and regulatory perspective of our national financial institution practice with a hands-on approach to client service. We help our clients cost effectively manage their risks and address regulatory requirements. Endorsement:

Contact: Terri Sands, Founder Phone: 404-996-2911 Fax: 888-406-3982 Email: tsands@securariskmanagement.com Website: www.securariskmanagement.com Description: Providing safe and secure payments programs through risk management education, auditing and consulting for community banks. Endorsement: Terri Garner, AAP/Senior Vice President Southern First Bank, N.A.

Thomas Drago, Jr., Compliance Officer CoastalStates Bank

The Correspondent Division of CenterState Bank employs over seventy dedicated correspondent professionals, and we manage over 575 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

29 Palmetto Banker

Feature

Spirit of Giving Grows Annually Through The CBL Foundation

here is a wise old saying: “If it isn’t broken, don’t fix it.” Citizens Building & Loan is a sterling example of a financial institution that has stayed true to its founding purpose, and has been successful doing just that for over a century. Located in the heart of downtown Greer, SC with $120 million in assets, CBL is one of the most highly capitalized financial institutions in the state. CBL was founded in 1907 as traditional Building and Loan, offering mortgage loans and savings products to serve the financial needs of the local community. Over 100 years later, it is business as usual at Citizens Building & Loan, which remains as one of the few mutual savings and loan institutions still operating in South Carolina. Here, customers still receive a passbook when they open any savings account. Here, mortgage loans are originated and serviced in-house and never sold to a third-party. And, there is something else that has remained unchanged here: CBL’s ongoing commitment to the community. A mutually owned association, CBL has always focused on finding ways to give back to its customers and the Greater Greer area. To help assure this, a pro-active Board of Directors in 1999 decided to form the Citizens Building & Loan Foundation. The board set up a special account earmarked for charitable donations in which a percentage of annual profits would be deposited each year. Explains Director Ralph W. Johnson, who was also one of the CBL Foundation originators: “We felt this was an excellent way to help fund the future needs of charities in our community and to sustain Citizen Building & Loan’s spirit of giving.” In 2005, Citizen Building & Loan also began utilizing the CBL Foundation to award continuing education scholarships to local high school seniors. The scholarship decision was made to honor the memory of CBL’s late Chairman of the Board, and longtime Director, Dr. Robert F. Williams. Dr. Williams had been a career educator who had worked with the local school system, was a Trustee at Furman University, and was a member of the S.C. State Board of Higher Education.

The CBL Foundation recently presented a donation to the Greenville Tech Foundation to provide the funds so that Greer area residents can participate in the college’s Quick Jobs for the Future training program. Pictured (left to right): Paul J. Rogers (Director), J. Thomas Johnson (CBL President & CEO), Laurens I. James Jr. (Director), Robert E. Howard (Greenville Tech Foundation President), W. Terry Dobson (Director), Benjamin B. Waters III (CBL Chairman of the Board), and Ralph W. Johnson III (Director)

30 Palmetto Banker

E a c h year in May, Citizens Building & Loan awards two $5,000 Citizens Building & Loan is located at 229 Trade scholarships Street in downtown Greer, SC. Learn more about this to outstanding one-of-a-kind financial institution at www.CBLGreer.com. seniors at both Greer High School and Blue Ridge High School. The scholarship money is sent directly to the student’s college of choice to help offset continuing education tuition costs. The awards are based on financial need and academic and community achievements, and target welldeserving students that may not otherwise have the opportunity to receive scholarship funding. To date, over $662,000 has been awarded through the CBL Foundation in charitable grants and higher education academic scholarships. The Board of Directors at CBL meets quarterly to discuss and carefully review grant applications. Past recipients of CBL Foundation charitable grants include Greer Community Ministries, Greer Relief, Visions of Excellence, Greer Christian Learning Center, Greer Soup Kitchen, Joshua’s Way, Center Quest and other key non-profits in the Greater Greer area. All of these charities have at least two things in common: they are categorized as non-profit and depend on local contributions and community support to survive. “We felt it was important to focus our attention at the local level by accepting grant requests only from non-profits in the community that don’t receive government funding.” explains CBL Board Chairman, Benjamin B. “Buddy” Waters, who was also on the Board that initiated the CBL Foundation in 1999. One such charity is Greer Community Ministries. According to Randy Kemp, former Executive Director: “During the summer of 2005, when we were reviewing a reduction of our services, the CBL Foundation gave us the largest grant in our history, thereby stabilizing our financial operations, eliminating a need for staff reduction and ensuring the continuation of our services. CBL’s generosity enabled our ministry to serve 340 meals a day in our Meals on Wheels and Senior Dining programs, and assist over 4000 people in our Food Pantry and Clothing Closet during the year.” Most recently, Greer Christian Learning Center received a $10,000 grant to purchase a used bus to transport students to the facility. Over 600 middle school and high school students are participating in the Center’s high school credit classes and Christian outreach programs. Pierce Williams, Treasurer of The Center since 1996 comments: “Several times over the years, Citizens Building & Loan has met our crucial needs with generous donations. We are deeply grateful for the support of CBL, their directors, and the Foundation.” Current President and CEO of Citizen Building & Loan, J. Thomas “Tommy” Johnson, reaffirms just how important giving back is to the financial institution’s sense of purpose: “We remain committed to returning a portion of our earnings toward the betterment of our community. Through the CBL Foundation, this small financial institution has been able to make a big impact locally.”

Directors’ College

Bank Directors’ and Managers’ College – Class X Daniel-Mickel Center for Executive Education, Darla Moore School of Business University of South Carolina, Columbia October 3-4, 2012 and November 27-28, 2012 The 2012 Bank Directors’ and Managers’ College helps bank directors gain a better understanding of their overall duties and increasing challenges. For the past nine years, this highly-regarded program was initially designed to provide new insight into bank operations, create valuable dialogue with regulators and enhance even the veteran director’s education. It has since evolved to include bank

managers as they fulfill their fiduciary obligations in providing a higher level of service to their respective communities. The Bank Directors’ and Managers’ College is held in two sessions every fall with housing provided by The Inn at USC. Call Anne Gillespie at 803-779-0850 for more information.

Special Points of Interest: ■ The purpose of the directors’ and managers’ college is to educate new directors and reeducate veteran directors of banks regarding their responsibilities.

■ Provides attendees the opportunity to interact with regulators and review bank activities from a regulatory perspective. ■ Held at the Daniel-Mickel Center for Executive Education, Darla Moore School of Business, USC, with housing provided by The Inn at USC.

■ Sponsored by the SCBA, USC and in association with the FDIC. ■ Helps directors and senior management gain a better understanding of their overall duties and increasing challenges. ■ Provides new insight into bank operations. ■ Promotes valuable dialogue with regulators. ■ Class size is limited to 40.

ck Stockton, LLP, , Partners, Kilpatri gia ug Ag ge ul Pa d an Ed Olifer s’ and Officers’ Colle SCBA Bank Director ess dr ad s , me DC , Ti ton ory Washing these Regulat tors Responsibility in on the Board of Direc

Panel Discussion: The Bank Board Meeting - Mitchell W. Willoughby, Chairman, First Community Bank and First Community Corporation, Lexington and Attorney, Willoughby & Hoefer, PA, Columbia, SC; Michael C. Crapps, President and CEO, First Community Bank and First Community Corporation, Lexington, SC; Curtis A. Tyner, President and CEO, Heritage Community Bank and Regional Bankshares, Inc., Hartsville, SC; Goz. G. Segars, Chairman, Heritage Community Bank and Regional Bankshares, Inc., Hartsville, SC and President and Founder of Segars Prudential Realty, Segars Farms and Segars Development

31 Palmetto Banker

Bankers School

he 51st Session of the South Carolina Bankers School was held at Lander University in Greenwood, SC. The School was held July 8 -13, 2012 under the leadership of Francis A. “Frank” Townsend, III, Southern Bank and Trust, a division of Georgia Bank and Trust. Bankers School is a three-year progressive course of instruction with a one-week resident for each of the three consecutive years. Students are challenged to learn more about their responsibilities while preparing for future advancement. On Sunday afternoon, the first year students were motivated by Linda Dolny, former President and Owner of PML Associates, Inc. Linda provided the students with some very valuable life lessons. On Monday, after the first full day of classes, the students were ready to unwind at a dance party hosted by the School. Our very own Jerry Stevens, Park Sterling Bank, was the DJ and had a few dance moves to teach the students. Back by popular demand, all students and CEOs attended an expert panel of CEOs for an informative discussion of the industry. On Thursday evening, 43 students received their diplomas. A reception and dinner were held in the Horne Arena on Lander’s campus. Many of the graduates’ CEOs and Supervisors were in attendance to congratulate those who had achieved this three-year accomplishment. Finally, on Friday, the third-year students competed in the BankExec competition. The superlative projects were judged, and the winners are:

Linda Dolny motivates the first-year students

es a

t mak Greg Blake provides tips on wha great leader

, The Palmetto Trish Springfield e second year stu Bank, teaches th ess oc Pr re ltu Cu dents The Sales

Lesley Lampert, SCBT, shares her com pliance expertise with the second year class

Community A – Bank 3: “Olympic Bank” 1. Dee Bowen, Greer State Bank 2. Vaughan Dozier, First Community Bank 3. Carmen Nagle, SCBT 4. Aaron Zynczak, TD Bank (Team CEO)

Community B – Bank 2: “Mofo Financial” 1. William Johnston, Southern First Bank, N.A. 2. Caleb McGowan, NBSC 3. Bob White, Bank of Travelers Rest 4. Jeremy Wright, Wells Fargo (Team CEO) Our Lillie Magalis Winner this year is William Johnston with Southern First Bank, N.A. William’s cumulative average for the 3 years is 98.00 and he will receive a scholarship for the first year to the Graduate School of Banking at LSU. Congratulations, William! We know you worked very hard. The Chairman for the 2013 Bankers School is Laurence Bolchoz with Coastal Carolina National Bank in Myrtle Beach. Chairman Bolchoz and the Bankers School Board are excited to return to Lander University. We look forward to seeing your students in Greenwood next year July 14 – 19, 2013. For more information on Bankers School, please contact Teresa Taylor at 803-779-0850. 32 Palmetto Banker

SCBS Board Member Jerry Stevens, Park Sterling Bank, gives dance lessons during the Monday night party

Wayne Hall, First Fe deral Bank; Justin Str ickland, Southern Fir Gwen Thompson, Clove st Bank; r Community Bank; and Sam Erwin, The Bank, shared their exp Palmetto ertise on the CEO panel which was moderated Green, SCBA Presiden by Fred t and CEO

SC Bankers School Board of Directors 2012-2013 Mr. Laurence Bolchoz Chairman Coastal Carolina National Bank it mmunity Bank, vis ike Crapps, First Co M d ris an Ch n d sse an Ni p d Te Dunla BA, and Thornwell with Fred Green, SC k Roberts, Countyban

Bank, is Dean Cutshall, First Federal ch for spee his ing dur cing vin con very he is as t iden first-year class vice pres n! Dea job, d the winner! Goo

Mr. Kevin Lindler Chairman-Elect First Citizens Mr. Francis A.”Frank” Townsend Immediate Past Chairman Southern Bank and Trust, a division of Georgia Bank and Trust Mr. David E. Anderson Anderson Brothers Bank Mr. Willis Fortson The Palmetto Bank

uthern ank Townsend, So SCBS Chairman Fr Bank gia or Ge division of Bank & Trust, a eciapr ap of en tok es a and Trust, receiv oz, lch Bo n-elect Laurence tion from Chairma tional Bank Coastal Carolina Na

Mr. John Griggs NBSC Kyle Hawley, The Conway National Bank, is the first-year class President. Congratulations, Kyle!

Mrs. Tracy Kellahan Bank of Greeleyville Mr. David Keller Southern First Bank Mr. Edward McKelvey First Federal Bank Mr. W. Gerald “Jerry” Stevens Park Sterling Bank

Alan Whitecross, Th urmond Clower and Associates, teaches Co mmercial Lending

Fred Green, SCBA President and CEO, and Rick Redden, SCBA Chairman, present diplomas

SC Bankers School Course Coordinators Mr. James B. Brant SCBT Mr. James R. “Jimmy” Clarkson Horry County State Bank Mrs. Gray Henderson Palmetto State Bank Mr. R. Scott Plyler South Atlantic Bank

South Mary Jo Rogers, s on tip es giv , nk Atlantic Ba rs de en n-L No for Lending

Wells Fargo, Rusty Copsey, Applications for Melissa Albergot ti, Bank of America, teaches Business teaching Bank Marketing and Sale first-year s

33 Palmetto Banker

Bankers School

Sam Erwin, The Palmetto Bank, shares their capital raising story

ate , Appalachian St Dr. Harry Davis ty ili ab Li es Asset University, teach Management

SCBS Past Chairman Gray Henders on teaches the first year class Con sumer Credit

Jeremy Wright, Wells Fargo; Caleb McGowan, NBSC; William Johnston, Southern First Bank, and Bob White, Bank of Travelers Rest, prepare for Bank Exec Competition. Their efforts paid off as their bank, Mofo Financial was the winner for Community B.

Mike Ayotte, Morganto n Federal Savings an d Loan, Morganton, N.C., explaining Mo ney Market and Bank Inv estments

34 Palmetto Banker

Sue Bready, Park Sterling Bank, teaches Analyzing Real Estate Appraisals

John Moore, Nelson Mullins Riley & Scarborough, LLP explains Banking Law

, rk Sterling Bank Tripp Tuttle, Pa to t us Tr view of provides an over ss cla ar ye ird the th

s Curt London, SCBT, give g an overview of Fundin ar Alternatives for the third-ye class

Class President and Vice-President Jason Craddock, SCBT, and Dodd Hul sey, BB&T, announce the results of the scholarship fundraising efforts

Capital & Midis, explains Bill Tucker, Tucker g Thinkin Planning/Strategic

e Bowen, Community Bank; De Vaughn Dozier, First , and BT SC , gle Na en Carm Greer State Bank; Exec nk Ba Bank, prepare for nk, Aaron Zynczak, TD ba ir the as off efforts paid Competition. Their A. ity un mm Co for er winn Olympic Bank was the

SCBS Chairman Fr ank Townsend congratulates William Johnston for receiving the Lillie Ma galis award.

Young Banker of the Year

J. Holt Chetwood Named Outstanding Young Banker for 2012

olt Chetwood, Wells Fargo, Columbia, was named Outstanding Young Banker for 2012 at the South Carolina Bankers Association’s (SCBA) annual meeting on June 11, 2012. Chetwood is the Midlands market president/business banking manager for Wells Fargo. He successfully helped lead the transition from Wachovia to Wells Fargo in the Midlands region during the 2011 fall conversion. Tyler Hudson, NBSC (left), 2011 The Outstanding Young recipient, presents the 2012 Award Banker Award is the highto Holt Chetwood, Wells Fargo est honor presented in South Carolina’s banking industry. Sponsored by the SCBA Past Chairmen’s Club, it has been given each year since 1970. Fred L. Green, III, President and CEO of the SCBA, says “All of the past recipients of this honor have advanced into higher leadership positions in the South Carolina Banking Industry. Holt truly deserves this recognition not only because of his past accomplishments but also because of his potential.”

Holt has received numerous bank honors over the years, including being named banker of the year in his segment. He has been a highly visible leader in his community by serving on the boards of the Columbia Chamber of Commerce, United Way of the Midlands, EdVenture Children’s Museum, EnGenuitySC, Midlands Tech Foundation, Junior Achievement, St. Lawrence Place, and the SC Higher Education Foundation. Holt was instrumental in raising the profile of the bank in this community. “He has been a leader in this bank and the community. Many teammates rely on Holt and his guidance. He does the job the right way and is well respected by his peers,” says nominator Mickey Renner. Holt was born and raised in Winston-Salem, North Carolina and graduated from Clemson in 1997 with a BS in Business Management. He is married to the former Marni Vincent of Montgomery, Alabama and they have four children, ages 7, 6, 3 and 8 months. Holt with his wife, Marni

Blast from the Past by Marilynn Joyner

lmore Alexander, Dean of the School of Management at Marist College, emailed the South Carolina Bankers Association’s President & CEO, Fred L. Green, III, inquiring about photographs of his grandfather, who served for several years as executive secretary of the SCBA. After searching through piles of archives at the SCBA office, Fred finally stumbled upon SCBA’s Annual Convention programs dating back from the 1940s. Elmore’s grandfather is pictured in several of these programs. E.R. Alexander served as the Secretary-Treasurer for the South Carolina Bankers Association from 1944-1966. Upon receiving the pictures of his grandfather in the annual convention programs, Elmore told Fred about his time as a child at the SCBA Convention. Elmore explains, “My memories of the SCBA are quite fond ones. I went to my first convention in 1953 or 1954. Granddad and Grandmother used to take me up to the room after the Saturday night dinner while my parents stayed

to dance. Granddad and Grandmother didn’t dance – she was a good Baptist girl. Unbeknownst to anyone including my parents, they took dancing lessons one year following the convention. At the next convention, they headed to the dance floor for the first dance and shocked all with their skills. Supposedly, the group passed the hat when the band’s contract was up to get them to play for another hour.” Fred and the rest of the SCBA staff are grateful that Elmore came to them in search for pictures of his grandfather. We encourage those who have family that were involved with the SCBA, please contact us with stories about experiences, so we can continue the “Blast from the Past” editorial in future Palmetto Bankers.

35 Palmetto Banker

Bank News BB&T

SCBT

BB&T Corp. reported on July 19, 2012 a record secondquarter earnings with a net income of $510 million, which is up 66% from the previous $307 million in the second quarter of 2011. The Winston-Salem, N.C. – based financial institution and holding company had the third-largest market share of bank deposits in South Carolina as of June 30, 2011 according to the Federal Deposit Insurance Corporation (FDIC). Loan growth improved during the quarter as average loans increased 7% on an annualized basis compared with the first quarter. The growth was led by a 33% increase in loans originated by BB&T lending subsidiaries, a 20% increase in residential mortgage loans, a 10% increase in direct retail loans and a 9% increase in sales finance loans. BB&T had another excellent quarter reducing credit costs with the decline of nonperforming assets by 16%, including a 42% reduction in foreclosed real estate. Net char-offs fell to 1.22% of average loans and leases in the quarter compare to 1.28% last quarter, and losses are expected to continue to trend lower this year. BB&T is excited to report the strongest net income for any quarter in their history.

SCBT Financial Corporation (NASDAQ: SCBT) (“SCBT”) announced in April the completion of their acquisition of Peoples Bancorporation, Inc. Under the merger, Peoples shareholders will receive 0.1413 shares of SCBT common stock in exchange for each Peoples share they owned, which is a cumulative of approximately 1,003,225 shares of SCBT common stock. Also, under the completion of the merger, SCBT will operate the banking locations of Peoples’ three banking subsidiaries, The Peoples National Bank; Bank of Anderson, NA; and Seneca National Bank under the SCBT name. With the acquisition SCBT has added eight full-service banking locations in the Upstate region of South Carolina. SCBT welcomes the customers and employees of Peoples Bancorporation, Inc. with open arms and is appreciative to add a great bank to the SCBT franchise.

South Atlantic Bank

On April 17, 2012 TD Bank became the second major bank to announce that it will voluntarily adopt Pew’s simple disclosure for checking accounts. Pew’s Safe Checking in the Electronic Age Project created a concise model disclosure to give financial institutions a tool to make their checking account terms and fees easier for consumers to understand. Research shows that the nation’s 10 largest banks’ median length disclosure documents are 111 pages, making it more difficult for consumers to find important policies and fee information. With Pew’s model disclosure, consumers can easily find the information they need and determine the checking account that best fits their financial needs. TD Bank joins Illinois’ Inland Bank, University of Illinois Employees Credit Union, and Tennessee’s Eastman Credit Union in the Pew’s simple disclosure initiative.

On May 10, 2012, South Atlantic Bank announced its entrance into the Pawleys Island market with the opening of their loan production office. And, effective immediately, on June 19, 2012, South Atlantic Bank reached approval from the Federal Deposit Insurance Corporation (FDIC) and the South Carolina State Board of Financial Institutions to operate a full service branch in Pawleys Island. The new branch will be located in Unit B of Waverly Place, located at 10593 Ocean Highway. Currently, the bank has a branch in Murrells Inlet in addition to the bank’s headquarters in Myrtle Beach. Drew Johnson and Donna Murphy, both with more than 40 years of experience in Pawleys Island, will lead the banking team into this market. Drew will serve as senior vice president and Georgetown County executive, and Donna will serve as vice president and retail business development officer. South Atlantic bank is pleased to have the opportunity to serve Pawleys Island and the Waccamaw Neck.

The Palmetto Bank

Southern First Bancshares, Inc.

Palmetto Bancshares, Inc. (the “Company”) (NASDAQ: PLMT) announced on July 1, 2012 its wholly-owned subsidiary, The Palmetto Bank, consummated the sale of 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 signing of the agreement was originally announced on January 30, 2012. Carolina Premier Bank purchased real estate, equipment, substantially all of the loans, and certain other assets, and assumed the deposits and lease obligations associated with these two branches. The terms of the transaction included a deposit premium that was paid to the Company at closing. 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. Completing the branch sale will have a positive impact on the Company’s earnings and accelerate return on profitability in 2012.

Southern First Bancshares, Inc. (NASDAQ: SFST), holding company for Southern First Bank, N.A. (also doing business with Greenville First Bank), announced on July 9, 2012 that the Company has redeemed $1.0 million of the $173 million in preferred stock. The Company previously issued this stock to the US Treasury under the Capital Purchase Program of the Troubled Asset Relief Program (TARP). Due to the Company’s strength and increasing earnings, the Company was granted permission by all required regulatory agencies to partially redeem its Tarp investment. The Company is pleased to redeem the preferred shares issued under TARP. Their goal is to continue generating internal capital through increased earnings and measure future capital needs accordingly.

TD Bank

36 Palmetto Banker

People On The Move by Marilynn Joyner

Anderson Brothers Bank Bryan Lenertz joined the bank as vice president, Horry County executive.

Jonathan Walker joined the bank as assistant vice president and branch manager of the Spartanburg office. Samuel Boyce Youngblood was promoted to assistant vice president and senior BSA analyst.

Robert L. Walker joined the bank as branch manager of the Kingstree branch.

Coastal Carolina National Bank Scott Bennings was named mortgage loan officer and assistant vice president. Chris McElhinny was named senior vice president of commercial banking.

Tammy Brookshire received certified insurance counselor designation from Countybank Insurance. Tonya S. Heaton was promoted to assistant vice president.

First Bank Mazie Anderson was named assistant branch manager for its Little River branch.

First Citizens Richard Awbrey joined the bank as vice president and consumer lending manager.

South Atlantic Bank Janis Cottinhgam was appointed to assist in the new Pawleys Island branch.

Janis Cottingham

Hunt Earns was promoted to banking officer and assistant manager of the South Atlantic Bank’s main office in Myrtle Beach. Drew Johnson joined the bank as senior vice president, Georgetown County executive. Jessica Konewko was promoted to head teller at the bank’s main office in Myrtle Beach. Diane McLean was appointed to assist in the new Pawleys Island branch.

Paul Bopp joined the bank as capital management group director. Steve Groth joined the bank as senior vice president and director of government & institutional banking. Paula Hughes joined the bank as director of consumer lending. Paul Lehman was named chief investment officer. Kevin Lindler was promoted to retail market executive.

Diane McLean

Peg Shaffer joined the bank as assistant vice president and assistant manager of loan servicing at the bank’s main office in Myrtle Beach. Donna Spitzer was appointed to mortgage loan processor/underwriter at the bank’s main office in Myrtle Beach.

Jason Rogers was promoted to branch manager.

SCBT Michael T. Amacher joined the SCBT Wealth Management Group as the retirement plan services division manager.

Len Howell

Tina Bagwell joined the bank as store manager of the Spartanburg Main store. Nate Barrett was named senior commercial relationship manager in Greenville. Michael B. Cooper was named as vice president, senior lender in middle market lending in Greenville. Casey Glover joined the bank as portfolio manager in commercial real estate in Greenville. Nancy Matthews joined the bank as commercial relationship manager in Florence. Grant McAnulty joined the bank as small business relationship manager in Charleston. Karen S. Smith was promoted to regional vice president for the Midlands. Jason T. Stevens joined the bank as vice president of commercial banking in Hilton Head Island.

The Palmetto Bank

Donna Murphy joined the bank as vice president and retail business development officer.

NBSC

Len Howell joined the bank as executive vice president and Charleston regional executive.

TD Bank

Bo Youngblood

Countybank

Southern First Bancshares, Inc.

Donna Spitzer

Carol Vaci was promoted to customer service representative at South Atlantic Bank’s main office in Myrtle Beach.

Matt Babb was promoted to business banker for the Greenwood and Abbeville communities. John A. Bickley joined the bank as senior vice president, specialized lending. Eva E. Harrison was promoted to assistant vice president. Kimberly Hrabovsky was named portfolio manager in healthcare lending in Greenville. Pamela B. Simpson was appointed to deposit risk and documentation leader. Sharon H. Woods was appointed to telephone banking officer.

37 Palmetto Banker

Good Deeds CresCom Bank CresCom Bank announced on April 12, 2012 its partnering with WGTR FM 107.9, WWXM FM 97.7 and WYNA FM 104.9 for CresCom’s “Have a nice bank” social media scavenger hunt cash giveaway where listeners will have a chance to win up to $1, 400. The contest involved radio stations promoting clues for finding yellow “Smiley” banks throughout Myrtle Beach area during the morning radio shows. The stations selected a location each weekday morning starting April 16th though April 27th, inviting listeners to visit CresCom Bank’s Facebook page (www.facebook.com/CresComBank) for clues to find that day’s Smiley location. Each weekday, the winning listener who finds Smiley, will bring him to the radio station from which they were listening to receive a $100 cash card. One of the 10 days will have a surprise $500 reward. CresCom Bank used social media and traditional media in promotion as a fun way for residents to win some cash. They were proud to introduce more people to their banking philosophy of “Have a nice bank.”

“I think it is wonderful that these computers which would normally just be recycled can be used for such a worthy cause,” said Montague Laffitte, SCBT Columbia city executive. “This is a great partnership.” Communities In Schools of the Midlands’ mission is to surround students with a community of support, empowering them to stay in school and achieve their life goals. The organization works with selected schools in Richland One and Richland Two School Districts. They establish relationships with students, businesses, parent volunteers, social service agencies, and health care providers to provide needed resources.

South Atlantic Bank On June 1, 2012 the South Atlantic Bank supported The St. James High School Sharks Booster Club by raising more than $4,000 through its parking fundraiser during the 2012 Harley-Davidson Motorcycle Rally. South Atlantic Bank provided the parking lot at its Murrell Inlet office to the club, which then charged a per vehicle fee to raise money for athletic programs. The bank was proud to help the St. James Sharks Club with its fundraiser.

SCBT

TD Bank

On May 17, 2012, SCBT partnered with Communities In Schools of the Midlands to provide 20 computers to active parents of students at John P. Thomas Elementary School. The program was organized by Naomi Washington, Communities In Schools of the Midlands coordinator at John P. Thomas Elementary School. “We are so grateful to be able to reward parents who are active in our local schools,” said Washington. “With everyone’s busy lives, it is hard for parents to attend all the events and activities that we have throughout the year. We want to thank those who make an effort to be involved and help out when needed.” The computers were donated by SCBT and were awarded in a door prize drawing to parents who have been active in school activities for the year.

TD Bank approved $15.1 million in U.S. Small Business Administration (SBA) loans to South Carolina small businesses. This initiative makes TD Bank the state’s current top lender by dollar volume. TD Bank leads a long list of South Carolina SBA bank lenders, approving 15 loans averaging $1.07 million per loan since the beginning of the government’s fiscal year starting October 1, 2011. This marks the eight consecutive SBA quarter that TD Bank has made the largest dollar volume of SBA-backed loans to South Carolina small businesses. TD Bank’s SBA team is dedicated to lead the way in providing the necessary financing to grow small businesses in South Carolina. They are pleased to lend to small businesses in the state and offer SBA products that will help businesses focus on their growth and success. TD Bank is also using social media to educate and converse with small business owners with the creation of informative videos about small business banking on YouTube (www.youtube.com/TDBankUS) and live weekly Twitterviews (Q&A). Each Friday, Small Business Banking experts will be available for live #smallbizfridays on Twitter @TDBank_US (www.twitter.com/TDBank_US) to answer questions and share tips and advice.

Index of Advertisers BDC – Business Development Corp.

Elliott Davis

Howe Construction

CenterState Bank

FHL Bank

Raymond James

Community Capital Advisors

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Flex-Pay Payroll Services

Vantiv

Calendar of Events September 2012 18

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

October 2012 3-4

Bank Directors’ and Managers’ College, Module 1, Darla Moore School of SCBA Human Resources Conference, The Clarion Town House, Columbia

March 2013 24-25 Understanding Real Estate Appraisals, Columbia 30

Community Bankers Forum, Seawell’s, Columbia

Community Bankers Spring Peer Group, Location TBA

7-10

Young Bankers Division Annual Conference The Westin, Hilton Head Island

November 2012 27-28 Bank Directors’ and Managers’ College, Module 2, Darla Moore School of Business, University of South Carolina, Columbia

Banking Careers 101 Seawell’s, Coumbia

BRANCH OUT! CONNECT ONLINE WITH THE SOUTH CAROLINA BANKERS ASSOCIATION! The South Carolina Bankers Association is new to social networking. We would greatly appreciate if you will find us on our social networks for updates on our upcoming events, legislative actions, pictures, etc. We also encourage our members to get on social networks as well.

Find us on our social networks today!

For more information please contact

Marilynn Joyner at mjoyner@scbankers.org.

15-17 SCBA Washington Trip/ ABA Grassroots Summit

June 2013 9-12

February 2013 6

April 2013

Annual Convention The Sanctuary, Kiawah Island, SC

SCBA’S Two Cents Biweekly E-Bulletin The South Carolina Bankers Association’s “Two Cents” is the new and improved biweekly e-bulletin. If you’re a member with the SCBA and have not received this bulletin via email, please contact Marilynn Joyner at mjoyner@scbankers.org.

How Can I Get My Bank News Published? It’s simple!

Just e-mail your press releases and photos to:

mjoyner@scbankers.org

Deadlines are available at www.scbankers.org Click on About Us, then News and Publications. 39 Palmetto Banker

South Carolina Bankers Association

Prsrt Std US Postage

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

PAID Columbia, SC Permit 706

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.

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