Palmetto Banker Winter 2013 by SCBA

South Carolina Bankers Association

Winter

Issue 2013-1

Palmetto Banker

Spratt Savings and Loan Association: 120 Years of Service and Counting

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Contact Information: Carolyn Laffitte SCBA Services, Inc.

Phone: (803) 779-0850 Email: carolynlaffitte@scbankers.org

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 Art Seaver Southern First Bank, N.A. First Vice Chairman H. Blake Gibbons, Jr. The Citizens Bank Treasurer David M. Lominack TD Bank Immediate Past Chair Sharon W. Bryant First Citizens SCBA Staff President and CEO

Contents S.C.’s Oldest Savings Institution Remains Focused on Home

Benefits of the Young Bankers Division page 14

page 8

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

Linda W. Parker

Executive Vice President, CFO

President’s Message

Executive Vice President, Employee Benefit Trust/SC Bankers School

Feature – S.C. Bucks Trends as Percentage of Unbanked Drops

Senior Vice President, Conventions Conferences

Modern S&L Movement Took Root in South Carolina

Senior Vice President, Legislative & Regulatory

2012 Young Bankers Scholarship Golf Tournament

Vice President, SCBA Services, Inc.

SCBA Expands Scholarship Program

Young Bankers Conference

Amber Setzler Barnes

Bank Directors, Managers College

Director, Advertising & IT

Community Bankers Forum

Administrative Assistant

Get Smart About Credit Day

Director, Communications and Marketing/Editor Palmetto Banker

Feature – Don’t Overlook IRA Withholding Notices

Meet Your Legislator – Paul Campbell

Legislative Preview

People on the Move

Good Samaritans

Bank News

Calendar of Events

Feature: Veteran Journalist Takes Helm of Palmetto Banker

Welcome, New Associate Members

SCBA BankPAC Honor Roll

Donna S. Taylor

Teresa D. Taylor

E. Anne Gillespie

A. O’Neil Rashley, Jr., Esq. Carolyn Laffitte

Director, Government Relations

M. Caroline Sheorn Bonnie Nelson

R. Kevin Dietrich

The PALMETTO BANKER is a publication distributed by the South Carolina Bankers Association. We welcome your comments and suggestions concerning the magazine. The magazine exists to serve its members by communicating news of interest, education and SCBA activities. Items and articles from members are welcomed; however, the editor reserves the right to refuse copy considered unsuitable for publication or not appropriate to our purpose. With the exception of official announcements, the South Carolina Bankers Association disclaims responsibility for opinions expressed and statements made in articles published in PALMETTO BANKER. Designed and published by CC Publish, Inc. ( 0 ) - 219 © 2012

3 Palmetto Banker

Palmetto Banker

President’s Message

Importance of SCBA Unity Shown in Basel III Decision

f you ever doubted the power of the pen, consider the impact made by those of you who wrote to regulators regarding Basel III. After many months of dire concern that tougher capital standards were going to be handed down for all banks beginning January 1, 2013, federal officials announced in November that they would hold off implementing Basel III guidelines for now. This decision came after a deluge of letters from bankers arguing that the proposed new capital guidelines were not only onerous, but would put them at a disadvantage with global competitors. Officials with approximately 25 percent of the more than 80 banks operating in South Carolina took the time to write to regulators expressing apprehension with Basel III’s proposals. The SCBA also wrote a letter stating its apprehension with Basel III. For those of you who took an active role, I applaud you. I’m proud to say that a higher percentage of bankers at South Carolina financial institutions wrote to regulators than their counterparts across the nation as a whole. Overall, one in five U.S. bankers sent a letter to regulators regarding Basel III. Officials most definitely took notice: “Many industry participants have expressed concern that they may be subject to a final regulatory capital rule on January 1, 2013, without sufficient time to understand the rule or to make necessary systems changes,” the Treasury Department wrote in a press release it issued in early November. We may not have put a stake in the heart of Basel III, but we’ve forced regulators to slow down just a bit. We’ve let them know that we’re keeping an eye on what’s going on in Washington, particularly that which impacts those of us outside the Beltway. In addition, we showed once again that we can rely on the support of our Congressional Delegation. The SCBA worked closely with South Carolina’s elected leaders throughout the summer and fall, and we succeeded in getting all six South Carolina House members to sign on to a letter that asked the Federal Reserve, the FDIC and the OCC to reconsider the proposals put forth in Basel III.

In addition, Senator Lindsey Graham put his signature on a letter expressing concern. But it’s important to note that Basel III isn’t an issue that’s going to go away. Final guidelines will be decided at some point in the nottoo-distant future, most likely. The South Carolina Bankers Association will continue to monitor developments related to Basel III and provide updates on progress and, when possible, what they mean to our members. We may have won this clash, but there are more battles ahead to be fought. Nevertheless, we’re pleased with the result for our efforts. It shows what can be accomplished when we pull together and work as a cohesive group.

“We may not have put a stake in the heart of Basel III, but we’ve forced regulators to slow down just a bit.”

– Fred L. Green

Hopefully, when other important issues come up – and they will – we’ll be able to get the same active, aggressive participation from members. There’s no doubt that banking and banking regulation have changed greatly since the time the SCBA was formed more than a 110 years ago. But the organization’s goal remains the same: to effectively represent the common interest and welfare of the banking industry in South Carolina. Through the cooperation of our state’s elected representatives and the efforts of South Carolina bankers willing to make their voices heard, we have, at a minimum, forced federal regulators to take a closer look at Basel III and what it means for banks big and small. That, in and of itself, is an important victory. Fred L. Green is the president and chief executive officer of the South Carolina Bankers Association.

SCBA Mission “The South Carolina Bankers Association

The SCBA is the professional trade asso-

banking industry in South Carolina, and to

has proudly served South Carolina’s

ciation organized to effectively represent

promote the professional development of

banking industry for more than 110 years.

the common interest and welfare of the

its members and individual practitioners.”

Palmetto Banker

Feature

S.C. Bucks Regional, National Trends as Percentage of Unbanked Falls

fforts by the SCBA’s Young Bankers Division to boost financial literacy are reaping positive results, according to a recent study released by the FDIC. The number of unbanked households in South Carolina dropped more than 12 percent over the past two years, bucking a national trend, according to an FDIC study released in September. As of 2011, the most recent data available, 9.3 percent of South Carolina households were listed as being unbanked. That’s down from 10.3 percent in 2009, according to the FDIC. In addition, underbanked households fell 15.2 percent in the Palmetto State. By comparison, the FDIC reported that the percentage of unbanked U.S. households increased nearly 8 percent between 2009 and 2011. Also, underbanked households rose 12 percent nationwide during the same period. Fred L. Green III, president and CEO of the South Carolina Bankers Association, said he believes the association’s longtime effort to promote financial literacy throughout the state is at least partially responsible for the drop in unbanked and underbanked households. “Last year, South Carolina bankers spoke to more than 45,000 individuals about the importance of financial literacy, and when you consider how many people we’ve reached over the years, you can’t help but think about the impact,” he said. “In many cases, our bankers are reaching people who never realized there were financial accounts available to them, and helping them to take advantage of those opportunities,” Green added. South Carolina’s progress in reducing its number of unbanked and underbanked is particularly noteworthy given economic conditions in recent years. Nationwide, 8.2 percent of US households were listed as unbanked by the FDIC for 2011, up from 7.6 percent in 2009, an

increase of nearly 8 percent. Also, 20.4 percent of US householders were listed as being underbanked as of last year, up from 18.2 percent in 2009. The South as a region saw its unbanked households increase to 10 percent from 9.4 percent, and underbanked households swell to 23.2 percent from 20.8 percent. The SCBA promotes financial literacy through its Personal Economics Program, or PEP, for short. “PEP has been a hallmark initiative of the Young Bankers Division for years,” said Montague Laffitte, chairman of the SCBA’s Young Bankers Division and Columbia City Executive for SCBT. “One of the key components of our jobs as bankers is to not only provide products and services to our clients, but also education to those in our communities. “Our goal is to educate as many individuals as possible on the importance of sound financial management,” he added. “Our bankers are going into schools, churches, civic groups, and even hosting seminars to help others understand the importance of establishing and keeping a sound financial management practices.” By emphasizing the dangers of credit cards and predatory lending, the pros and cons of student loans, and the importance of establishing budgets and saving, South Carolina bankers have helped untold thousands of state residents on the road toward financial stability, Laffitte said. “It is our hope that as we reach these individuals, they are able to take a little bit of information from our presentations and apply that to their daily life,” he added. “This education, especially started at an early age, hopefully is helping to improve the numbers of unbanked households in this state.”

Percentage of Unbanked Percentage of2009 Unbanked - 2009

Percentage 2011 of Unbanked - 2011

8 6 4 2 0

6 Nation - 7.6%

Southeast - 9.4%

South Carolina - 10.3%

Nation - 8.2% Southeast - 10.0% South Carolina - 9.3% Source: FDIC

Palmetto Banker

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Cover Article

Spratt Savings and Loan: 120 Years of Service and Counting by Kevin Dietrich Palmetto Banker Editor

“Our mission and focus is serving the citizens, businesses and institutions of Chester County primarily. I tell folks that Chester County is our universe.”

HESTER – If the folks at Spratt Savings and Loan Association haven’t gotten too worked up during the most recent economic downturn, there is a good reason: After 120 years of being in business, there’s not much the Chester-based savings and loan hasn’t seen. The association, South Carolina’s oldest savings institution, has weathered more than 25 economic recessions or depressions since its founding, including the Panic of 1893, which took place barely a year after Spratt opened its doors on January 25, 1892; the Panic of 1907; the Great Depression, which actually began in South Carolina in the 1920s; the 1973-75 recession, sparked by spiraling gas prices; and the most recent economic upheaval, termed the “Great Recession.” Through it all, the small but sturdy S&L, which today has $100 million in assets, has stuck to its knitting and concentrated on helping customers achieve economic success and financial security, according to chief executive J. Glenn Anderson. “We do that by providing deposit and investment products to meet the transactional and savings needs of our customers while reinvesting those funds to meet the borrowing needs of both individuals and businesses in our market,” he said. Spratt Savings and Loan has two branches: its main office in downtown Chester, where it’s operated since 1963, and a branch office in Great Falls. Anderson said that aggressive branch expansion plans are not part of the company’s strategic plan as Spratt is clearly focused on expanding its client base and enlarging market share in its home area. “Our mission and focus is serving the citizens, businesses and institutions of Chester County primarily,” he said. “I tell folks that Chester County is our universe.” Jim Bennett, Spratt’s chief operating officer, joined Spratt from a statewide bank four years ago. He said as Chester County’s only local bank, it’s hard to overstate what Spratt means to the county. “Banks like ours are important because of our commitment to the community,” he said. “We are 100 percent vested right here in Palmetto Banker

Chester. If we don’t make it here, we don’t make it. I also think it’s important that our customers know their deposits work here in the local community and are not siphoned off to fund some large loan in another state or town.” Bennett added that as a locally based institution, Spratt doesn’t have to adhere to directives from a home office in another town. “This is our home. When someone needs a decision on a loan, it’s made right here,” he said. “When they call us on the phone, they get a live person, not some automated answering system.” That hasn’t gone unnoticed among customers. “If we have a problem, we can call and it’s taken care of immediately,” said Sylvia Robertson, who owns Gene’s Restaurant in downtown Chester with her husband Bill. “We moved our account to Spratt in early 2010 because we got tired of being hit with hidden fees. That doesn’t happen at Spratt. And not only that, everyone is so friendly there.”

A view of downtown Chester. Peoples Bank, which Barnett M. Spratt helped operate while he was starting Spratt Savings and Loan Association, was off to the right. The building now houses the Chester Chamber of Commerce.

“I concluded this would be a great way to finish out a banking career and expand my knowledge of banking in general,” Anderson said. “Having worked for a superregional where job functions were extremely focused resulted in a concentration of knowledge and exposure. I found the opportunity to be involved in practically every aspect of banking both challenging and attractive.” Still, the move from BB&T, now one of the 10 largest bank companies in the U.S. with more than 30,000 employees, to Spratt, with 18 employees, wasn’t without its hiccups.

Unfamiliar Territory

Numerous banks and thrifts have been based in Chester County over the years but today Spratt is the only institution still headquartered in the county. Some competitors were acquired by larger institutions, while others fell on hard times and had to close their doors. Yet Spratt continues to plug along. The next-oldest financial institution in the state is Camden-based First Palmetto Savings, which was begun in 1904, more than a decade after Spratt. “Our strengths lie in our determined but conservative approach to business, along with the aid of a strong balance sheet,” Anderson said. “Through the years, as a mutual, we have been able to retain earnings and that has produced a stellar capital position. That, coupled with strong liquidity and superior asset quality, has allowed us to weather many, many downturns over the years. These factors, plus an active and engaging board that has provided insightful guidance, have all contributed to our long term success.” Anderson said that the institution’s structure as a mutual has contributed to its ability to remain independent over the years. “Our board of directors and management are absolutely dedicated to the preservation of the independence of this institution,” he added. “We enjoy the distinction of being the oldest savings institution in the state, and look forward to holding onto that distinction for a long, long time to come.” Spratt may be South Carolina’s senior savings bank, but Anderson is a relative newcomer to the institution. He’d been with BB&T in North Carolina for more than 30 years when he was contacted by a headhunter in 2007 who asked him if he’d be interested in learning more about a potential opportunity at a small South Carolina savings and loan. “To be honest, I’d been with BB&T for 33 years at that point and kind of figured I’d dropped anchor,” Anderson said. Anderson admitted he was somewhat reticent at first. He’d never given much thought to moving to an institution that, to someone unfamiliar with Spratt, appeared to harken back more closely to its 19th century roots than its 21st century future. But after a meeting with then-Spratt chief executive Ladson Stringfellow and the company’s board of directors, Anderson came away with a very different feeling. The same day of the interview, he received a call from Stringfellow asking him if he’d be interested in the job.

“I’ll never forget my first week; I started on a Monday and on that Friday a young lady here came to me and said ‘Mr. Anderson, you need to set the rates.’ I told her that was the function of the funding desk, to which she replied, ‘You are the funding desk,’” Anderson said with a smile. He added, “I’ve learned more about banking in the five years I’ve been here than I ever would have at a larger institution.” One of the things that eased Anderson’s transition was the depth of knowledge among bank employees and the institution’s board of directors. Of Spratt’s 18 employees, four have more than 20 years’ experience, and two have been with the institution more than 30 years. Accounting manager Susan Wellborn is the senior employee with 35 years at the savings and loan. Anderson is quick to credit his staff for the S&L’s success. From Bennett, his COO, to Chief Financial Officer Lori Jennings, Senior Vice President Kathy Davis, all the way down to his tellers, loan staff and customer service representatives, he says Spratt’s success is the result of a team effort. He also credits an experienced board, which has more than 100 years’ experience. It’s led by Chairman D.C. Wylie, an 88-year-old World War II veteran who fought at the Battle of the Bulge, who is the longest tenured at 42 years, followed by Vice Chairman Allen Heath, who has served on the board for 41 years. The years of experience have enabled Spratt’s staff and board to understand that finance is cyclical, and that it’s often better to play it safe than overreach and try to make an extra dollar.

Armenia United Methodist Church, a few miles northwest of downtown Chester. Spratt Savings and Loan helped finance improvements for the church, which predates the War Between the States. Continued on page 10

9 Palmetto Banker

Cover Article “Through the years we’ve underwritten loans and made fixed income product investments in a fairly conservative manner,” Anderson said. “Because of this, when the bad times came we didn’t have nearly the default rates and subsequent losses that more aggressive competitors had to endure. Again, I point to our balance sheet strength, adequate loss-reserve funding, liquidity, strong capital and assertive but cautious business model that has directed our efforts and provided clear strategies to keep us properly focused.”

Striking a Balance Yet, it’s not all about the bottom line. “It’s our goal – no, it’s more than a goal – it’s our passion to help our customers achieve economic security and one of the ways to do that is by being as aggressive as the market will allow in the rates we pay on deposits,” Anderson said. “We understand a high percentage of our customers are retired and on fixed incomes,” he added. “The money they earn from interest-bearing accounts is a critical component of their total income, consequently helping them to earn high returns is a responsibility we take quite seriously. For that reason, we’ve kept our rates above the market for our full-service customers.” Anderson made it clear that Spratt doesn’t pursue “hot money.” “Our objective is to provide the highest quality banking experience possible for our existing customers and to leverage that strategy to acquire new full-service customers,” he said. “We’ll go to extremes to accommodate our full service customers; we’re not, however, the place to park hot money.” Today’s financial services world is very different than that of 120 years ago when Barnett M. Spratt and a handful of other Chester

10 Palmetto Banker

The Academy for Teaching and Learning, a charter school near downtown Chester. Spratt Savings and Loan Association helped finance the purchase of the facility.

business leaders met and organized Spratt Savings & Loan Association, yet in many respects the institution’s goals remain unchanged. There are many more financial services products available for customers, and the institution’s loan portfolio is considerably more diversified than it was a century ago. Still, the majority of its loans are for single-family residences, just as they were when Spratt was one of Chester County’s newest businesses, rather than its oldest. “Yes, things are much different from a regulatory environment, from a competitive environment and in terms of the products that we can offer than they were years ago, but in the end it’s still about capturing deposits and making loans,” Anderson said. “That’s ultimately what it’s all about.”

Modern S&L Movement Took Root in South Carolina

HESTER – In many respects, the roots of the modern savings and loan association were planted and cultivated in South Carolina. While the first savings and loans began in the United States in the early 19th century, many assert that the concept of the modern S&L can be traced to the middle of that century when a Charleston minister named S.K. Cox published the book Building and Loan Associations: Their History, Principles, and Plan of Operation in 1852. Cox had started the Mutual Deposit and Building Association in Charleston in 1849. It was different from the other savings and loans of the period, which were set up so that members would pool a certain part of their weekly wages until there was enough money saved to begin lending to members to buy homes. This was impracticable for individuals who did not have a steady weekly income, such as farmers, blacksmiths and even businessmen. Cox devised the idea of a “Permanent Plan,” according to information compiled by former South Carolina Savings and Loan League President Steve Smith. It was called “permanent” because unlike the earlier S&Ls, which would cease operations once the original members had all purchased homes, Cox’s model created a permanent institution which was allowed to take on new members even as old ones left.

“The decades following the Civil War were long and lean for the financial services industry in South Carolina, particularly for S&Ls. Spratt Savings and Loan became the first S&L to open in the state since the antebellum period, in 1892.” Another advantage was that under Cox’s plan, borrowers were able to choose the period over which they could spread their repayments, basing it on anticipated income, rather than a single rate devised for everyone. Two other similar savings and loan associations using Cox’s concepts were also started in Charleston around the same time, and before long this permanent-form of savings institution had spread through South Carolina, Smith wrote in a mid-1970s history of the state savings and loan industry. Not surprisingly, the Civil War virtually wiped out the savings and loan industry in the Palmetto State, and S&Ls did not re-emerge until well after Reconstruction. The decades following the war were long and lean for the financial services industry in South Carolina, particularly for savings and loan associations.

This building on “The Hill” in Chester, built in 1891, is believed to be the original location of Spratt Savings and Loan Association. It is now home to the Chester City Hall and town police force.

Spratt Savings and Loan Association became the first S&L to open in the state since the antebellum period, in 1892. Barnett M. Spratt (1854-1924) was actually working as the cashier at another Chester institution, the Exchange Bank when he and eight other local businessmen organized Spratt Savings and Loan Association on Jan. 25, 1892. The institution was capitalized with $80,000, according to a 1963 article in the Chester News. According to a history of Spratt Savings and Loan, written for the S&L’s 90th anniversary in 1982, the purpose of the institution was, “to enable investors to accumulate a fund … for the purpose of erecting improvements on real property … to buy and sell real estate … to receive monies on deposits and to pay interest thereon (not usurious).” Spratt was headquartered on “The Hill,” on Chester’s Main Street, but it moved to its current location on Saluda Street in 1963. The local media was duly impressed when plans for the new structure were unveiled in 1962. “The spacious new unit will contain a large public lobby extending from front to rear in the center of the building,” the Chester News wrote. “Conference and meeting rooms and two offices are located on the left side of the building. On the right side will be teller offices, a vault, and the drive-in teller window facility. To the rear of the building will be a mammoth parking lot capable of parking 85 automobiles.” At one time, Spratt was one of thousands of savings and loan associations across the country. As recently as 1986, there were more than 3,200 S&Ls in operation across the nation. Today, however, savings and loans are a vanishing breed. At last count, there were fewer than 600 still in operation, according to J. Glenn Anderson, Spratt’s chief executive officer. – Kevin Dietrich 11 Palmetto Banker

YoungBankers BankersScholarship ScholarshipGolf GolfTournament Tournament Young

More than 100 Play in Young Bankers Golf Event

he 23rd Annual Young Bankers Division Scholarship Golf Tournament proved a rousing success as more than 100 golfers took part in the event, held Sept. 17 at The Members Club at Woodcreek in Elgin. The 2012 tournament, chaired by Blake Taylor of Southern First Bank, brought in a record-breaking amount of money for scholarships, more than $13,000. In all, 108 golfers took part, and the event was managed by six volunteers. The winning team was made up of Travis Hudson, Prudential Insurance; Dale Ness, Ness Properties LLC; Bryant Puntch, First Citizens; and Jesse Smith, First Citizens. Second place went to the team of Michael Boozer, The Plateau Group, Inc./Integrated Financial Solutions; Wade Connor, Pentegra Retirement Services; Duffie Powers, Gallivan, White & Boyd, P.A.; and Ben Skelley, AgSouth Farm Credit, ACA. Bringing up the rear of the tournament was the foursome of Henderson Duke, Community Bankers’ Bank; Alissa Gibson, Sandhills Bank; Jim Smith, Sandhills Bank; and Rhonda Tiller, Sandhills Bank. Paul Halphen of First Citizens won both the closest-to-the-pin and the longest-drive competitions. The tournament wouldn’t have been possible with the gracious support of several companies, including: Gold Sponsor Vantiv; Birdie Sponsor Rogers Townsend & Thomas; Beverage Cart Sponsors NAI Earle Furman LLC and STS; Hole-in-One Grand Sponsor Home Federal Savings & Loan; Contests Sponsor Bell Carrington; Bag Drop Sponsor Federal Home Loan Bank, Atlanta; and Prize Hole Sponsors BDC/CDC, Elliott Davis LLC and Wells Fargo. In addition, the following served as Hole Sponsors: Banks Street Partners, Blue Ridge Bank, Callison, Tighe & Robinson LLC, Citizens Building & Loan, Ellis Lawhorne, First Citizens, First Reliance, Howe Construction, Nelson Mullins Riley & Scarborough, Palmetto State Bank, SCBT, Southern First Bank, The Bank of South Carolina and Turner Padget.

First place winners, from left, Jesse Smith, First Citizens; Dale Ness, Ness Properties, LLC ; Travis Hudson, Prudential Insurance; and Bryant Puntch, First Citizens.

m left, Henderson Duke, Last place, back row, fro Bank. nk; Jim Smith, Sandhills Community Bankers’ Ba nk; Ba lls dhi ssa Gibson, San Front Row, from left, Ali Bank. lls dhi San ler, Rhonda Til

“SCBA Expands Scholarship Program, Honors Hendricks.”

or decades the Young Bankers Division of the South Carolina Bankers Association has raised money to fund student scholarships. Hundreds of thousands of dollars have been awarded to deserving students over the years through money raised by the Young Bankers Division Golf Tournament and by fundraising efforts of members of the South Carolina Bankers School.

In an effort to assist more students, the SCBA’s Young Bankers Division has expanded its scholarship program in two ways: • First, it is making college scholarship money available specifically to the children of employees of SCBA member institutions; and • Second, it has introduced the Lloyd I. Hendricks Scholarship, a $5,000 grant, to honor the recently retired longtime SCBA president and CEO. The Young Bankers Division recognizes that the costs associated with attending college have increased sharply in recent years and show no signs of slowing down. By offering scholarships to deserving children of bank employees, the SCBA seeks to help deserving students pursue higher education and lay the groundwork for the next generation of South Carolina’s bankers. The Lloyd I. Hendricks Scholarship seeks to recognize and reward an accomplished South Carolina student intent on a career in banking. Hendricks, who retired from the SCBA last year, spent many years as a Palmetto State banker and also served in the state Legislature. During his time at the helm of the SCBA he helped bankers and their institutions navigate a period of great change within the industry. Scholarship details and application forms are available on the SCBA website at www.scbankers.org. The application deadline is March 15, 2013. 12 Palmetto Banker

Beautiful weather, great course conditions and being part of a worthy cause all helped make the 2012 Young Bankers Scholarship Golf Tournament a rousing success. More than 100 individuals participated in the event, held September 17 at The Members Club at Woodcreek, in Elgin, and more than $13,000 was raised for scholarships.

13 Palmetto Banker

Feature

Young Bankers Division: Making a Difference for Nearly 60 Years “You need people you can go to in order to bounce ideas off; and the people I met through the Young Bankers Division became the people I often turned to when I had questions or needed help with something.” – John Poole, CEO, Carolina Alliance Bank

t’s been more than two decades since John Poole moved on from the SCBA’s Young Bankers Division, but the current chief executive officer of Spartanburg’s Carolina Alliance Bank still readily sings the division’s praises. Poole, who joined the Young Bankers Division in 1984, served as president of the division during the 1990-91 year and was the Young Banker of the Year in 1991, has reaped myriad benefits from his involvement. “When you get involved with the Young Bankers, you begin to build relationships with others in the division, relationships that will often last a lifetime,” he said. “These are individuals that you get to know and trust, and that you can turn to for ideas and advice. “You can call them up and ask them if they’ve had this problem or that problem in their organization, and get their thoughts on how they dealt with it,” he added. That’s been of particular benefit to Poole, who helped Carolina Alliance open its doors in early 2007. Prior to that, Poole was president of another Spartanburg-based institution, Carolina Southern Bank, from 1992-2001. “I have a great board at Carolina Alliance, but they don’t know how to run the day-to-day of a community bank, nor should they,” Poole said. “So you need people you can go to in order to bounce ideas off; and the people I met through the Young Bankers Division became the people I often turned to when I had questions or needed help with something.” The division’s goal is simple: to enhance the abilities and opportunities of younger bankers. Young bankers are classified loosely as those under 45, but the SCBA welcomes all who are interested in taking part in what the division has to offer, according to Teresa Taylor, SCBA executive vice president. The biggest point of emphasis for the Young Bankers is the Personal Economics Program, or PEP. Through PEP, young bankers teach financial education and responsibility to students and adults across South Carolina. Last year, more than 45,000 South Carolina residents, many of them school children, learned about the benefits of financial literacy through PEP. In addition, the Young Bankers Division has raised more than $250,000 over the past 20-plus years, which has gone to scholarships for South Carolina students pursuing a career in banking, finance or accounting. One of the key fundraising efforts is the Young Bankers Scholarship Golf Tournament. More than 100 individuals participated in the most recent Young Bankers tournament, last September at Woodcreek golf course in Elgin, which raised more than $13,000. 14 Palmetto Banker

The division also hosts a one-day event for college students where they can get information about careers in banking. College students from across South Carolina attend Banking Careers 101 in Columbia to hear representatives of the Young Bankers Division from all areas of banking explain various job functions and highlight the many different careers available within the industry.

A Worthy Program Poole, who began his career with Bankers Trust of South Carolina in 1976, didn’t hesitate to recommend the Young Bankers program to an up-and-coming Carolina Alliance officer. “John mentioned it to me several times and has had many good things to say about it,” said Cal Wicker, a credit analyst in Carolina Alliance’s commercial department who joined the division in March 2011. Wicker, 24, said participating in the program has been beneficial because it’s allowed him to interact with individuals who are at the same point in their career. “We’re a small community bank, but there are people from large banks, medium banks and banks that are our size all involved, and it’s interesting to see what they’re doing and how they handle issues,” he said. “Being a part of the Young Bankers Division also has helped me create a network throughout the state, people I can turn to for answers or stop in and visit when I’m in different areas,” he added. “One of the things I’ve learned is that when you get down to it, the issues that we face here at Carolina Alliance are pretty similar to many of the same issues that everyone else is facing.” Wicker is one of approximately 425 South Carolina bankers active in the Young Bankers Division, which began nearly 60 years ago. The division has a 19-member board and is chaired by Montague Laffitte, the Columbia City Executive for SCBT. One of the highlights of the division is the Young Bankers Annual Conference, which is held each March. Scores of bankers and associates from across the state attend the event, taking advantage of educational and networking opportunities while fostering and cultivating relationships. This year, the conference will be held March 8-10 at the Westin Spa & Resort on Hilton Head Island. Looking back on his time in the Young Bankers Division, Poole said his involvement with PEP was particularly memorable. “The PEP program helped me understand the need that existed for us bankers to educate young people about banking and finance,” he said. “It helped me to realize that while there are many families that do educate their children about how to handle money, there are just as many that don’t.” He added, “It’s such a great program, and to be able to get into the schools and educate young people is a wonderful feeling.”

Young Bankers Conference

Young Bankers Annual Conference Set for Hilton Head

oung Bankers Division Chairman R. Montague Laffitte III, Columbia City Executive for SCBT, invites bankers of all ages to The Westin Resort & Spa at Hilton Head Island for the Young Bankers Division Conference, March 8-10. This year’s event features a dynamic array of speakers, including Joe Moglia, the Chairman of TD Ameritrade, who left his position as chief executive of the online trading giant to return to his love of coaching football, and SCBT Financial Corp. President and Chief Executive Officer Robert Hill on what it takes to be a high-performing bank. We are also excited to have Morganton (N.C.) Savings Bank President and Chief Executive Officer Mike Ayotte give an economic overview, and Palmetto Health President John Singerling talk about the importance of employees to the success of any operation. Finally, Thirteenth Judicial Circuit Solicitor and former United States Attorney for the District of South Carolina Walt Wilkins will share his message during the annual prayer breakfast. The Young Bankers Conference is recognized for the quality of educational and motivational presentations, its networking and fellowship opportunities, and its environment, which is conducive to building lasting relationships. “Joining the Young Bankers Division enabled me to tap into the wisdom of an up-and-coming group of bankers who would be my peers for many, many years to come,” said Fred L. Green, III, president and CEO of the South Carolina Bankers Association. “Time and again these individuals were available when I had questions or needed advice. They’ve proved an invaluable resource over the years.” Executive management teams view the individuals who attend this conference as emerging leaders who represent the future of their respective institutions. In addition to all of the above, attendees will be able to play the noted Robber’s Row course, among the most picturesque in the Southeast, and partake in casino night, featuring blackjack, craps, roulette and Texas hold ‘em poker. This year, at least 160 individuals are expected to attend the conference. Last year, more than 150 bankers, associates, spouses and guests attended the Young Bankers Conference, which was held at the Grove Park Inn Resort & Spa in Asheville, N.C.

Speakers Michael P. “Mike” Ayotte President & CEO Morganton Savings Bank Mike Ayotte is President & CEO of Morganton Savings Bank, in Morganton, N.C. Ayotte will present, in his own inimitable style, an overview of salient economic data and its relevance for the Young Bankers in attendance. He is a 1979 Graduate of Florida State University, where he earned a bachelor’s degree in Finance. He spent 22 years in the investment business, primarily in the area of fixed income products, and for many years specialized in bank investment portfolio management and asset/liability. Mike has served as an adjunct faculty member of the Graduate School of Bank Investments and Financial Management program at the University of South Carolina, is a former faculty member of the North Carolina School of Banking at Chapel Hill, is a current faculty member at the Graduate School of Banking of South at Louisiana State University, as well as the South Carolina Bankers School, and is a much sought after speaker on a variety of subjects.

Robert R. Hill, Jr. President & CEO SCBT Financial Corp. Robert R. Hill, Jr. serves as president and CEO of SCBT Financial Corporation, a 78-year-old holding company with more than $5 billion in assets and 86 offices across North Carolina, South Carolina and Georgia. Hill will discuss the dramatically changing landscape of the banking industry, the evolution of the industry and look at what it takes to be a successful bank and banker in the world today. With an open dialog, attendees will have an opportunity to ask questions and gain insights

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Young Bankers Conference into the future of the industry and how to emerge as a top performer. Hill has spent 17 years with SCBT, having served in various positions since joining the bank in 1995, including chief operating officer and president. He is a graduate of The Citadel and also earned an MBA from the University of South Carolina’s Moore School of Business. Hill has been honored with numerous awards, including The Citadel School of Business’s Alvah H. Chapman Jr. Distinguished Leadership Award; the South Carolina Bankers Association’s Outstanding Young Banker of the Year; and Outstanding Young Alumni by the USC Alumni Association. Business Week magazine profiled Robert as one of 98 CEOs under 40 in the United States and 140 CEOs under 40 in the world who run publicly traded companies that are on the NASDAQ or New York Stock Exchange. In addition, Hill has held a number of key leadership positions outside SCBT. Currently, he serves on the Federal Reserve Bank of Richmond – Charlotte Branch Board of Directors, and the USC Development Foundation. He is also a member of the Palmetto Business Forum.

Joe Moglia Head Football Coach Coastal Carolina Chairman TD Ameritrade Moglia is the author of “4th and Goal: One Man’s Quest to Reclaim His Dream,” which looks at his decision to leave his position as CEO of TD Ameritrade to return to football after 25 years. Joe Moglia is the Head Football Coach of Coastal Carolina University and Chairman of TD Ameritrade, a position he has held since 2008. 2012 was Moglia’s first as head coach at Coastal. Previously, he served as head coach and president of the United Football League’s Omaha Nighthawks professional football franchise, where he coached against the likes of former NFL head coaching icons Jim Fassel, Marty Schottenheimer, Jerry Glanville and Dennis Green. Over a 20-year football coaching career, Moglia served as executive advisor to the head football coach at the University of Nebraska (2009-2010), won two Ivy League Championships as defensive coordinator at Dartmouth, led units that set defensive and kicking records at Lafayette University, turned two high school programs around and wrote numerous articles in national coaching journals. Joe left coaching to pursue a career at Merrill Lynch, where he worked for 17 years before being named chief executive of TD Ameritrade in 2001. In his seven years as CEO at TD Ameritrade, shareholders enjoyed a 500 percent return. The firm’s market cap grew from $700 million to $10 billion and client assets grew from $24 billion to $280 billion. In 2008 when most financial services firms in the United States were imploding or going out of business, TD Ameritrade had its sixth record year in a row. Moglia decided then the time was right to pull the trigger on his own succession. With opportunities in both business and media, he decided to accept the role of chairman of TD Ameritrade and return to coaching, when he joined the Nebraska staff in 2009. Moglia has received the US Grant Sharp Admiral’s Trophy for 1 Palmetto Banker

Leadership and Service, as voted on by players from the University of Nebraska football team, the Ellis Island Medal of Honor, and has been honored by the National Italian American Foundation, the Columbus Citizens Foundation and the American Institute for Stuttering. He has been inducted into three Halls of Fame, is the recipient of two honorary doctorates and is also the only author to have written books published on both investing and football.

John J. Singerling, III President Palmetto Health John Singerling is president of Palmetto Health. Singerling, who has been with Palmetto Health for nearly two decades, took over as president in October 2010. He is responsible for the daily operations and strategic direction of the Palmetto Health hospitals, including the Palmetto Health Baptist Hospital, Palmetto Health Richland Hospital, Palmetto Health Children’s Hospital, and Palmetto Health Heart Hospital. In addition, he is leading the design and construction of a new hospital, Palmetto Health Parkridge – set to open in December 2013. He oversees an expense budget of $1.3 billion and more than 8,000 employees. The topic of Singerling’s talk will be “Our People Are Our Greatest Asset.” Singerling earned a bachelor’s degree from Michigan State University in 1994 and a master’s degree in health administration from the University of South Carolina in 1996. Singerling is involved in the community. He served as chairman of the 2010 and 2011 March of Dimes March for Babies, is past chair of the American Heart Association’s Start! Heart Walk, and a current board member for the Riverbanks Zoo Society. He also serves on the board of Welvista, a non-profit organization committed to improving the health and wellness of South Carolina’s uninsured and underinsured by providing access to prescription medications. His professional affiliations include being board certified as a Fellow in the American College of Healthcare Executives.

Young Bankers Conference W. Walt Wilkins, III Solicitor Thirteenth Judicial Circuit Walt Wilkins, the Thirteenth Judicial Circuit Solicitor and former United States Attorney for the District of South Carolina, will speak during the sixth annual Prayer Breakfast from 8 a.m.–9 a.m. on Saturday, March 10. Wilkins will speak about faith and adversity in a talk titled “Work, Life and a Plane Crash.” A Greenville native, Wilkins is a graduate of Wofford College and the University of South Carolina School of Law. He began his professional career as an attorney with the Lockheed Martin Aircraft in Argentina and in 2000 joined the Greenville law firm of Leatherwood, Walker, Todd and Mann. In 2005 Wilkins was appointed Assistant U.S. Attorney in the Greenville Office. While there he handled several noteworthy cases, including one of the largest mortgage fraud cases in the district and a high-profile human trafficking case. In 2008 President George W. Bush appointed Wilkins the United States Attorney for the District of South Carolina. As U.S. Attorney, Wilkins served as the chief federal prosecutor for the state

of South Carolina and chairman of the District’s Law Enforcement Coordinating Committee.

About Hilton Head The Westin Resort & Spa is located on a pristine stretch of whitesand beach, where ocean breezes sweep across visitors, whether they’re just outside one of the resort’s spacious meeting rooms networking with fellow bankers, while spouses and guests can take in the beauty of the Lowcountry on a bike ride or shopping the wending network of nearby boutique stores. Hilton Head Island is the largest barrier island between New Jersey and Florida, with a dozen miles of spectacular breathtaking Atlantic beachfront. Located on the Intra-coastal Waterway, Hilton Head Island encompasses sea marshes, creeks and lagoons, and mossdraped forests of live oaks, magnolias, pines and palmettos. Wildlife preserves make the island home to hundreds of species of birds and animals, including the American alligator, which can grow to 12 feet or more in length. Hilton Head Island has more to offer than its trademark striped lighthouse, world-class golfing, top-ranked tennis facilities and picturesque marinas. Practically any water sport imaginable is available, as well, along with great outlet and boutique shopping, and awardwinning restaurants. Rest assured, there will be plenty to do when the Young Bankers Conference wraps up its schedule.

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Directors’ College

USC Hosts 10th Annual College for Directors, Managers

he 10th annual SCBA Bank Directors’ and Bank Managers’ College was held at the University of South Carolina’s Darla Moore School of Business, with the first session taking place Oct. 3-4 and the second Nov. 27-28. Both new and longtime directors came out for the program, which sought to better prepare directors and executives for the increasing challenges and complexities of today’s financial services world. The program not only sought to provide new insight into bank operations, it offered participants an opportunity to talk with regulators and review bank activities from a regulatory perspective. The end result was directors and managers more knowledgeable about their overall fiduciary obligations and able to provide a higher level of service to their respective communities. The recent economic downturn has demonstrated the need for bank directors and managers to clearly understand their roles. As former FDIC Chairman William M. Isaac wrote in The American Banker in 2011, the bank director’s job is significantly more demanding than ever. “It requires a greater time commitment and range of skills,” he wrote. “Banks that get governance right will have much better odds of success in any economic climate. Conversely, if a bank is experiencing serious problems the governance process needs attention.” This highly regarded program was initially designed to provide insight into bank operations, create valuable dialogue with regulators and enhance the edification of all directors, including veteran board members. It has since evolved to include bank managers seeking to fulfill their fiduciary obligations by providing a higher level of service to their respective communities. The two-part series gave bank directors and executives an in-depth view into the world of banking. The program curriculum was graduated, beginning with less complex subjects in the first

session and ending with interactive applications of lessons learned in the second session. Paul Dusenbury, president and CEO of VistaBank, was highly complementary of the event. “The topics are timely and are presented by leaders in their respective fields,” said Dusenbury, who is also on VistaBank’s board. “The interaction between presenters, including bank regulatory officials, and attendees, both during the sessions and while breaking bread together proved to be very valuable as we exchanged our respective thoughts and insights.” Educators, attorneys, consultants, bankers and regulators were among those who made presentations during the two-session event. Topics included the current and future environment for bank capital raising and mergers and acquisitions, strategic planning, the role of a bank director, executive compensation and more. Class size was limited to 40, enabling participants to interact within the group, and also with presenters and regulators.

Highlights from the 2012 SCBA Bank Directors’ and Managers’ College, held in two session this past fall in at the Moore School of Business at the University of South Carolina. Top left, instructor Mike Ayotte of Morganton Savings Bank; top right, participants during the October session; bottom right, instructor and USC professor Tim Koch; and bottom left, instructor and USC professor Doug Woodward.

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Community Bankers Forum

SCBA Community Bankers Forum a Success

early 120 individuals attended the 2012 SCBA Community Bankers Forum Oct. 30 at Seawell’s in Columbia. The forum featured a strong lineup of speakers who addressed some of the most pertinent topics in banking today, including thoughts on how institutions can take control of regulatory risk, the new mathematics of community bank mergers and acquisitions, and assessing the state of the South Carolina and national economy. “We were very pleased with the turnout for this year’s Community Banker’s Forum,” said David Barnett, chief executive officer of Pinnacle Bank and chairman of the SCBA’s Community Bankers Council. “I think the enthusiasm was in part because of a great line-up of speakers, but also because community bankers truly value the opportunity to visit with and share ideas with our peers,” Barnett added. “That was certainly a big factor for me, and we hope to build on this next year with a format which will encourage even more opportunity for our bankers to learn from each other and from the sponsors in attendance.” Speakers at the forum were Bart Smith, managing director of Performance Trust Capital Partners Inc., of Charlotte; Tom DeLoach, president and CEO of the South Carolina Business & Industry Political Education Committee; Rick Kaglic, regional economist for the Federal Reserve Bank of Richmond’s Charlotte office; and Morris A. Ellison, a banking and commercial real estate attorney with the law firm of Womble Carlyle Sandridge & Rice LLP. The grand sponsor for the event was Plexus Capital. Other sponsors were: Mountainseed Appraisal Management; Performance Trust Capital Partners; ESD Architecture & Interior Design, and Reliance Project Management; Banks Street Partners; CICCAR; Decision Dynamics Inc.; Elliott Davis; the Federal Home Loan Bank of Atlanta; Mauldin & Jenkins, certified public accountants, LLC; and SI Solutions.

Highlights from the 2012 Community Bankers Forum, held Oct. 30 in Columbia, include, at top, Alex Gettys of Pickens Savings & Loan, left, with Rudy Matthews of Kingstree Federal Savings & Loan; center, SCBA Community Bankers Council Chairman David Barnett speaks to his fellow bankers; bottom, bankers listen during a session; and left, Bart Smith addresses a group of S.C. bankers during a presentation on how to work with regulators.

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Get Smart About Credit Day

S.C. Bankers Hit Classrooms to Help Kids

ankers from across South Carolina took time away from the office on Oct. 18 to visit classrooms across the Palmetto State and take part in Get Smart About Credit Day. The effort was part of a national volunteer campaign in which bankers worked with young people to raise awareness about the importance of using credit wisely. Bank employees went to classrooms armed with worksheets, stepby-step teacher’s guides and workbooks as they spoke to youth in an effort to promote credit literacy. Among the schools visited was H.B. Rhame Jr. Elementary School in Columbia. Half a dozen Bank of America employees spoke before three separate classes – approximately 50 third grade students in all – at H.B. Rhame, instructing them on the basics of credit and financial literacy. The lessons imparted by the bankers who spoke at H.B Rhame and other South Carolina schools were straightforward: Good credit is essential to a solid financial future. It enables you to buy a car, get an apartment or a home, and, increasingly in some industries, get a job. Students today, many of whom have grown accustomed to living in an essentially cashless society where credit and debit cards are used for nearly all purchases, and gift cards have replaced cash as the present of choice on birthdays and at Christmas, fail to understand the connection between wise spending and a strong credit record. That’s one of the objectives of Get Smart About Credit Day – to show youngsters that credit cards have pluses and minuses, and

Bank of America employees instruct third-grade students at Columbia’s H.B. Rhame Jr. Elementary School of the wise use of credit during Get Smart About Credit Day Oct. 18.

misusing them can have serious financial repercussions for years afterward. The 2012 Get Smart About Credit Day marked the 10th year the event has been held, according to the American Bankers Association. Since it was started by the ABA Education Foundation in 2003 more than 22,000 bankers have reached more than 870,000 young people nationwide.

SSBCI Loan Participation Program

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South Carolina Receives Second Disbursement of Funds US Treasury recently approved South Carolina’s second round of funding for State Small Business Lending Initiative (SSBCI). This program has greatly benefitted enterprising businesses across South Carolina during the first round of funding, as BDC has participated with nine different banks with transactions of approximately $30 million in the program to date. “Receiving our second disbursement of funding is exciting for South Carolina, as this program has helped jump start numerous businesses and has made a substantial contribution to our state’s economic recovery over the past year.” — Edwin O. Lesley, President, BDC To find out more about this exciting program, call us today at 803-798-4064. For SSBCI program details and to view our Master Agreement, visit us online at www.BDCofSC.org BDCAd_PalmettoBanker3.indd 1

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10/17/12 1:02 PM

Feature Feature

Don’t Overlook Withholding Notices for IRA Clients

he deadline for many bank clients to withdraw required minimum distributions from their individual retirement accounts for 2012 recently passed, but it’s never too late to brush up on IRA withholding notice and election requirements. Withholding is an important compliance issue for those with IRAs. Like withholding from paychecks, withholding from an IRA distribution represents the prepayment of income taxes, according to Jennifer Bassett of Ascensus, a nationwide service provider of IRA and retirement plan compliance and document solutions. Election requirements refer to the ability and the obligation of IRA owners to choose whether to withhold a certain percentage from their IRA distribution. It also refers to a financial organization’s obligation to provide the IRA owner with the opportunity to make an election at the time of distribution. This is accomplished through the withholding notice. Taxes withheld from IRA distributions are credited against an individual’s total tax liability for the year. Withholding is not only required by law, it is a valuable customer service that a financial institution provides to its clients.

IRA owners have three choices when it comes to withholding: n Withhold nothing; n Withhold 10 percent, or n Withhold more than 10 percent.

n Space for the client’s name and address; n Space for the client’s Social Security number; nA n entry that the client can mark to claim an exemption from withholding; and nT he substance of the official Form W-4P instructions, including the caution on penalties for not paying enough withholding or estimated tax during the year.

For periodic payments of pensions and annuities, The deadline to withdraw required minimum distributions is the IRS also requires:

Dec. 31 each year, unless it’s a client’s initial distribution. For annual IRA distributions of $200 or more, banks must provide a notice to allow the client (the IRA owner or beneficiary) to elect not to have withholding apply, to designate a specific withholding amount or a percentage, and to inform the client of the right to revoke the election. A bank which fails to give clients a withholding notice can be assessed a penalty by the IRS, according to Bassett. Clients who don’t take distributions on at least a quarterly basis must be provided with a withholding notice before each distribution, but no more than six months before each distribution, she added. If distributions are taken quarterly or more frequently, banks must provide clients with a withholding notice annually at a reasonable time before the first payment each year. To comply with withholding notice requirements, banks must provide clients with an IRS Form W-4P, called a Withholding Certificate for Pension or Annuity Payments, or a substitute form. If your bank offers a substitute form, it must follow certain required guidelines or be submitted to the IRS for approval.

Substitute forms W-4P must include the following information: n The form number (Form W-4P); nT he number and expiration date assigned by the Office of Management and Budget (OMB) to the Form W-4P (OMB 1545-0074);

nA line where the client can show the number of allowances on which withholding is computed; n A line for marital status; nA line to ask for an additional amount to be withheld from each payment; and n A space for the client’s signature. To prove that the form has been sent to the client on a timely basis, institutions should date forms before mailing and retain copies in client files. Two copies should be sent to each client: one to keep and, if a change is desired, one to return with a signature to the bank. Clients may elect to withhold 10 percent or more on IRA distributions. Clients also may elect to waive withholding. Either election must be authorized by the client by signing an IRS Form W-4P or a substitute form. Once a client makes a decision regarding withholding, it is valid until revoked. The institution should retain a copy of the form in the client’s file. If the client does not elect out of withholding, the bank must withhold 10 percent of the IRA distribution. A client may revoke an election at any time by signing another Form W-4P. Many banks integrate the withholding election into the withdrawal statement so that Form W-4P is available for each distribution, according to Bassett. But when a client has established a series of scheduled payments, you may send a Form W-4P to the client according to the notice frequency stated previously. 23 Palmetto Banker

Meet Your Legislator

Campbell Brings Wealth of Business Experience to S.C. Senate

en. Paul G. Campbell Jr. represents Senate District 44, composed of Berkeley, Charleston and Dorchester Counties. A Republican, he took office in 2007. Campbell is the retired president of the Southeast Region for Alcoa Primary Metals, where he had responsibilities for smelters in South Carolina, North Carolina, Tennessee and Indiana. Campbell also had operational responsibilities for a smelter in Maryland. He currently works as a consultant through Paul Campbell LLC. His extensive management and engineering experience in the aluminum industry spans more than 40 years. He also has extensive experience in many other industries. A native of Chester County, S.C., Campbell graduated from Lewisville High School. He is a Clemson University graduate, where he earned a bachelor’s degree in Chemical Engineering. He also earned an MBA from Jacksonville State University. Campbell is on the board of both First Financial Holdings and First Federal of Charleston. He served a four-year appointment by Gov. Mark Sanford on the S.C. Public Service Authority. He was recognized by Gov. Carroll Campbell as an economic development ambassador for South Carolina and served on the executive committee of the Charleston Regional Development Alliance. He has served on the Clemson Board of Visitors and the Engineering Advisory Council. He is on the Board of Governors for the School of Business and Economics at the College of Charleston. He has also served on the S.C. Board for Technical and Comprehensive Education (State Tech Board) and serves on Trident Technical College’s Foundation. He is past chair of the Board of Regents for Leadership South Carolina. Campbell has authored numerous technical articles, as well as editor of “Light Metals,” a technical handbook for the aluminum industry, and continues to be a noted speaker. He is past president of the American Institute of Mining, Metallurgical and Petroleum Engineers (AIME), and The Materials Society (TMS) – two major international professional organizations, with AIME alone having more than 100,000 members globally. The Materials Society recognized Campbell with its prestigious Distinguished Service Award. Campbell is also past chair of the South Carolina Manufacturers Alliance and a past chair of the South Carolina Chamber of Commerce. In addition, he is past president of the Berkeley Chamber of Commerce and also served on the Charleston Metro Chamber of Commerce. Campbell was a member of the executive committee of the Business and Industry Political Education Committee (BIPEC). The Lowcountry Republican has been active in the community over the years, as well. He is past president and past campaign chair of Trident United Way, the Coastal Council of Boy Scouts and Summerville Rotary Club. The Boy Scouts recognized him with the Silver Beaver Award. Campbell is a recipient of the Order of the Palmetto, as well as numerous other awards for service both professional and in the community. He a member of the following Senate committees: Judiciary; Agriculture and Natural Resources; Transportation; Corrections and Penology; and Fish, Game and Forestry. He is a member of the Operations and Management Committee for the S.C. Senate and chaired the Off Shore Natural Gas Exploration Study Committee and the Wind Energy Study Committee. He is member and an elder at Dorchester Presbyterian Church where he has served in many roles. Campbell and his wife Vicki have been married for 44 years and have three children and four grandchildren. 24 Palmetto Banker

New Members of the South Carolina Legislature The following individuals will take office in the South Carolina Legislature this month after being elected last November.

S.C. Senate Karl Allen, D, Greenville (former member, S.C. House of Representatives) Sean Bennett, R, Dorchester Tom Corbin, R, Greenville (former member, S.C. House of Representatives) Greg Hembree, R, Horry Kevin L. Johnson, D, Clarendon (former member, S.C. House of Representatives) Tom McElveen, D, Sumter Katrina Shealy, R, Lexington Paul Thurmond, R, Charleston Ross Turner, R, Greenville Tom Young, R, Aiken (former member, S.C. House of Representatives)

S.C. House of Representatives Beth Bernstein, D, Richland Heather Ammons Crawford, R, Horry MaryGail K. Douglas, D, Fairfield Raye Felder, R, York Kirkman Finlay III, R, Richland Craig A. Gagnon, R, Abbeville J. Wayne George, D, Marion Stephen Goldfinch Jr., R, Georgetown Kevin Hardee, R, Horry Ralph Shealy Kennedy Jr., R, Lexington Weston Newton, R, Beaufort Mandy Powers Norell, D, Lancaster Robert L. Ridgeway III, D, Clarendon Robert Shannon Riley, R, Greenwood Samuel Rivers Jr., R, Berkeley Leola C. Robinson-Simpson, D, Greenville Mike Ryhal, R, Horry Don L. Wells, R, Aiken Donna H. Wood, R, Spartanburg

Legislative Preview

Taxation, Foreclosure Among Issues to Watch in Upcoming Legislative Session Neil Rashley Senior Vice President/Counsel, SCBA

he South Carolina General Assembly reconvenes on Jan. 8, 2013, for the start of its two-year session. Since it is the first year of the session there are no pending bills. At the time of publication of this article, bills prefiling had not occurred. However, there are still some bills from the past session that will be reintroduced and there are many statewide issues that South Carolina’s banks need to be aware of and watch closely.

Taxation Although the House Republican Caucus tax reform package did not pass last year, it is anticipated that much of it will be reintroduced this year. Last year’s bills dealt with adoption of recommendations made by the Tax Realignment Commission (TRAC), including elimination of many sales tax exemptions and restructuring of the property tax. No bills affecting banks were introduced last year; yet South Carolina banks should be aware that TRAC also recommended: taxing banks and thrifts as C corps (at a 5 percent rate); and repealing banks’ and thrifts’ personal property tax exemption. The SCBA opposes these proposals since, if adopted, they would have an enormous financial impact on our institutions and their ability to lend in their communities.

Foreclosure Residential foreclosure remains a concern in South Carolina, and the South Carolina Supreme Court’s order on foreclosures remains in effect. Last session, the Bankers Association worked to defeat S 702, a bill that mandated court-appointed mediation of all foreclosures and proposed to comprehensively regulate all mortgage servicers, including banks. Although the SCBA has not heard that another bill will be reintroduced, it is still an issue to keep an eye on as foreclosure rates remain relatively high.

Probate and Trust A Senate subcommittee has been working in the off-season to introduce a S.C. Bar bill that substantially revamps the Probate and

Trust Code, primarily the probate and guardianship sections of the Probate Code. Last year, a 750-page bill failed to move forward but senators are committed to passing another version. The SCBA has been meeting and working with Senate Judiciary staff, the state bar and other interested parties to craft another bill for next session.

Appraisal-Management Companies Last year, a bill was introduced in response to the Dodd-Frank Act’s requirement that each state, within three years of the release of Dodd-Frank regulations, adopt a state-level registration and regulation program for appraisal-management companies. The Bankers Association worked with House staff and the S.C. Appraiser’s Association; however, the bill did not have time to pass and will be reintroduced this session. Briefly, the bill proposes to comprehensively regulate appraisal-management companies, set requirements for registration and renewal, and bar attempts to improperly influence the outcome of an appraisal. In conclusion, the 2013-2014 session is expected to be a busy one with many new legislators as a good number retired and several others were defeated during the most recent election cycle. Again, the SCBA will continue to closely follow these issues and work with our General Assembly to ensure that South Carolina’s laws promote bank growth and economic development.

Hayes Named Chair of Senate Banking Committee Sen. Wes Hayes, R-York, was named Chairman of the Senate Banking and Insurance Committee last month, replacing Sen. David Thomas, R-Greenville, who was defeated in his primary race last year. Hayes has served in the Senate since 1991 and before that was a member of the South Carolina House of Representatives. The Rock Hill resident is a graduate of the U.S. Military Academy and the University of South Carolina School of Law. He runs his own law practice, based in Rock Hill.

Prior to law school, Hayes served five years in the 82nd Airborne Division of the United States Army. He serves on the local board of SCBT in Rock Hill and also on the board of Guardian Fidelity Mortgage Corporation. Hayes has served on the 15-member Senate Banking Committee for more than a decade.

25 Palmetto Banker

People On The Move Bank of Walterboro

First Citizens

Gwendolyn Bunton has been named president of Bank of Walterboro. Bunton has been with Bank of Walterboro since February 1989. She was with Farmers and Merchants Bank and C & S Bank for 18 years prior to joining Bank of Walterboro. Bunton has worked in all areas of banking during her career, with her latest position being acting president and cashier for Bank of Walterboro since January 2012.

Kimberly Blackwell has joined First Citizens as vice president and relationship manager. She is based in Clemson. Prior to joining First Citizens, Blackwell served as vice president and branch manager for The Palmetto Bank. Blackwell earned a bachelor’s degree from Clemson University and a master’s degree from Southern Wesleyan University in Central, S.C. She also is a graduate of the South Carolina Bankers School.

BNC Bank

Bennett Bowers has joined First Citizens Bank as a vice president and commercial relationship manager. Bowers is responsible for seeking new business opportunities and expanding relationships with commercial clients. He will be based at First Citizens’ Walton’s Corner office in Augusta, Ga. Prior to coming to First Citizens, Bowers served as a private banker for Wells Fargo. Bowers earned his bachelor’s degree from Spring Hill College in Mobile, Ala.

BNC Bank has named Annette Rollins executive vice president, human resources director. Based at the bank’s High Point, N.C., headquarters, Rollins oversees all aspects of human resources, including employee relations, talent development, recruiting, compensation, employee benefits and training. Rollins relocated to the Piedmont Triad from Columbia, where she was previously employed with First Citizens as executive vice president, director of human resources. Rollins earned a bachelor’s degree in Business Administration from Southern Wesleyan University and is a graduate of the National School of Human Resources at the University of Colorado.

Coastal Carolina National Bank Coastal Carolina National Bank has added W. Kyle Hawley as South Strand Manager – Vice President in Garden City. He is responsible for leading the new CCNB Garden City branch. Hawley is a graduate of Clemson University. Hawley serves on the boards of the Coastal Area Fellowship of Christian Athletes and the Waccamaw Regional Foundation for Disabilities and Special Needs. Debra Weiss has joined Coastal Carolina National Bank as vice president and compliance specialist. She has extensive community banking experience in New York state and South Carolina, with responsibilities in branch banking, consumer and commercial lending, collections, business development, administration and compliance. 2 Palmetto Banker

Paul Halphen has been promoted to relationship manager with First Citizens. Previously a commercial credit analyst for the company, Halphen graduated from Clemson University with a degree in financial management. Daniel Smith is First Citizens’ new Capital Management Group sales and service director in the company’s Wealth Advisory Group. Smith graduated from Francis Marion University with a bachelor’s degree in Economics and a minor in Business Administration. Prior to joining First Citizens, Smith served as a Private Advisor team director for BB&T Wealth. He also has served as a financial center leader for BB&T and as a branch manager for Palmetto Citizens Federal Credit Union. Jerry Stevens has joined First Citizens as senior vice president and commercial lending executive. Stevens, who previously worked for Capital Bank as a market president, is based at First Citizens’ Greenwood office. Stevens holds a bachelor’s degree from Lander University.

Koy Stone has been promoted to retail sales manager at First Citizens’ Five Forks branch in Simpsonville. Stone previously worked for SunTrust Bank as a customer service representative. He is a graduate of the University of South Carolina and is pursuing an MBA at Clemson University. First Citizens has promoted Matt Vanvick to personal banker at the institution’s Five Forks’ location in Simpsonville. Vanvick, a native of Greenville, earned a bachelor’s degree from The Citadel.

Greer State Bank George W. Burdette has been named president of Greer State Bank and holding company Greer Bancshares Inc. Burdette, 59, was also named a director of both the bank and the parent company. Burdette brings nearly 30 years of banking experience to his new role with Greer. His background includes serving as regional manager, senior vice president and Greenville city executive for BB&T. Burdette was also vice president for Community Bank in Greenville and served as assistant vice president for C&S Bank in the Columbia market. He earned a bachelor’s degree in Accounting from Carson Newman College in Jefferson City, Tenn., and graduated first in his class from the South Carolina Bankers School.

NBSC NBSC has appointed Robert C. Jones, David P. Merchant and G. Murrell Smith Jr. to its local board of directors in Sumter. Jones is general manager of Jones Chevrolet Cadillac in Sumter. He graduated from Clemson University with a bachelor’s degree in Business Management. Merchant is owner of Merchant Iron Works Inc. and Merchant Crane Service LLC. He graduated from Clemson University where he earned a bachelor’s degree in Agricultural Sciences. He is a member of the American Institute of Steel Construction. Smith is a partner at Lee, Erter, Wilson, Holler & Smith LLC, Attorneys. He is a graduate of Wofford College and the University of South Carolina School of Law.

People On The Move NBSC has appointed Dr. J. Michael Morgan to its Florence board of directors. Morgan is partner and an oral surgeon at Palmetto Oral and Maxillofacial Surgeons in Florence. After graduating from College of Charleston, he attended the Medical University of South Carolina and earned a degree in Dentistry Medicine. Jonathan M. “Jon” Presley has been named a branch manager by NBSC. Presley oversees daily operations and customer service at the bank’s Summerville office. He is also responsible for loan and deposit growth. Jonathan is a graduate of Abilene Christian University and Troy (Ala.) University. Jason Ward has been named manager of NBSC’s West Ashley branch. Ward graduated from the College of Charleston where he earned a bachelor’s degree in Business Administration.

SCBT SCBT Financial Corp. has appointed John C. Pollock to its board of directors. Pollok serves as chief financial officer and chief operating officer for SCBT. He joined SCBT in 1996 and during his career has also served in the positions of chief administrative officer and president of the bank’s mortgage division. Pollok earned a bachelor’s degree in Business Administration from the University of South Carolina.

TD Bank TD Bank has promoted Megan L. Ford to store manager of the Hilton Head main location on New Orleans Road. An assistant vice president, Ford is responsible for new-business development, consumer and business lending, managing personnel and overseeing day-to-day operations at the office. Ford, who has three years of experience in banking and consumer lending, joined TD Bank in 2011. Ford is a resident of Bluffton. She graduated in 1999 from West Chester University in West Chester, Pa.

The Palmetto Bank The Palmetto Bank has expanded its corporate banking services by adding David M. Carpenter as senior vice president, corporate banking; and Kelly F. Gillespie, corporate banking specialist. Carpenter graduated from the University of North Carolina at Chapel Hill with a bachelor’s degree in Business Administration. Gillespie graduated from Washington and Lee University with a bachelor’s degree in Economics. Carpenter was previously with Fifth Third Bank while Gillespie was previously with SunTrust.

Vista Bank Paul Dusenbury, president and CEO of Aiken-based VistaBank, began a three-year term on the Greater Aiken Chamber of Commerce board of directors this month.

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Good GoodDeeds Samaritans CresCom Bank Makes Donation to Teachers’ Supply Closet

South Atlantic Bank Raises Funds for Miracle League

David Morrow, chief executive officer of CresCom Bank, presents a check to Deborah Halon, left, chief operating officer of Teacher’s Supply Closet, and Yvonne Orr, chairman of the board.

Representatives of CresCom Bank donated $2,000 to Charleston’s Teachers’ Supply Closet late last year to help repair damages caused by the heavy rains throughout the region. In August, Hurricane Isaac hammered the Charleston area, bringing between four and eight inches of rain across the low-lying metropolitan area. Due to the rain, the ceiling of Teachers’ Supply Closet collapsed and approximately three inches of water ended up in the building. While most of the school supplies were saved, severe structural damage was caused to the building’s roof. “CresCom Bank wanted to do something to help Charleston’s flood victims and we saw this as an opportunity to step up to the plate,” said David Morrow, president of CresCom Bank. “We are a community bank that cares about the needs of our neighbors and this was a positive way to show our support and help during a difficult time.” Teachers’ Supply Closet is a non-profit organization that provides free school supplies to teachers in the Tri-County area. Its mission is to serve the educational and creative needs of children by providing a means to offer free merchandise donated from businesses and individuals for teachers to use in their classrooms. CresCom was created in 2011 when Carolina Financial Corp. consolidated its two bank charters. Myrtle Beach, S.C.-based Crescent Bank and Charleston, S.C.-based Community FirstBank were brought together under a single charter, and the resulting unified institution was called CresCom.

From left to right: South Atlantic Bank officials R. Scott Plyler, president, and Wayne Wicker, chairman and chief executive officer, present a check to Tory Mackey, executive director of the Grand Strand Miracle League, and James Carson Benton Jr., chairman of the Grand Strand Miracle League’s board of directors.

South Atlantic Bank raised more than $2,500 for the Grand Strand Miracle League, an organization dedicated to providing special needs children and adults the opportunity to play baseball. Proceeds from the fundraisers – $2,519.41 to be exact – were presented to Grand Strand Miracle League officials at the league’s fall opener last September. To raise funds, the Myrtle Beach-based bank held two public events: “Wash Your Windshield Friday” and “Hot Dog Friday.” During “Wash Your Windshield Friday” bank employees washed the windshields of customers’ cars in the drive-through for a donation to the Miracle League. On “Hot Dog Friday” visitors to the bank received a grilled hot dog lunch for a donation to the Miracle League. Monetary donations were also accepted at the bank’s offices in Myrtle Beach, Murrells Inlet and Pawleys Island. In addition, employees participated in an internal raffle for a day off with pay. The bank then matched the contributions up to $500 and presented the check on behalf of its customers and the community. This year’s total marked the best yet fundraising effort for the bank, which is in its fourth year of sponsorship with the Miracle League. Myrtle Beach-based South Atlantic Bank, a subsidiary of South Atlantic Bancshares, Inc. began operations in 2007 and now has offices in Myrtle Beach, Murrells Inlet and Pawleys Island.

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back

Bank News Anderson Brothers Bank has acquired two lots for future expansion in Myrtle Beach at the corner of Grissom Parkway and London Street, and on Farrow Parkway in Market Common. Full-service branches will be erected on both sites with construction in 2013. The locations will be the first in Myrtle Beach for Mullinsbased Anderson Brothers Bank, which already has seven Horry County locations.

profitable nine-week period in company history during the third quarter of 2012. Coastal Carolina, which opened in June of 2009, posted net income of $117,749 or 5 cents a share, the company reported.

Business Administration.

The U.S. Department of Treasury announced in October it would sell preferred stock investments it held in several banks, including Cayce-based Congaree Bancshares, as it worked to close out the Troubled Asset Relief Program, or TARP. The federal government owned $3.29 million worth of preferred stock of Congaree Bancshares, parent of Congaree State Bank, as of last fall.

CertusBank has taken over the deposits of the Hometown

First Citizens, NBSC and First Reliance Bank were all

Community Bank of Braselton, Ga., in an agreement with the FDIC. Hometown Community Bank operated two branch locations with assets of $125 million. CertusBank, which today operates branches in the Carolinas, Georgia and Florida, began in 2011 after it acquired assets of CommunitySouth Bank & Trust of Easley.

recently recognized as being among the Best Places to Work in South Carolina. In addition, SCBA associate members Elliott Davis, McAngus Goudelock & Courie, and Womble Carlyle Sandridge & Rice were also honored. This designation is bestowed by Best Companies Group, a workplace consulting firm, and sponsored by the South Carolina Chamber of Commerce. To be considered, companies had to fulfill the following eligibility requirements: be a publicly or privately held business; have a facility in South Carolina; have a minimum of 15 employees working in South Carolina; and have been in business a minimum of one year.

BNC Bank was given Preferred Lender status by the U.S. Small

CertusBank of Greenville has entered into a definitive agreement to purchase Quadrant Financial Inc., which will make CertusBank the 22nd-largest SBA 7A lender (by dollar volume) in the nation and the top SBA lender based in South Carolina. Quadrant Financial is a subsidiary of First Chatham Bank of Savannah. Coastal Carolina Bancshares, the parent of Myrtle Beach-based Coastal Carolina National Bank, achieved the first

TD Bank was South Carolina’s top SBA bank lender by dollar volume for the SBA’s 2012 fiscal year ending Sept. 30, the third consecutive year TD Bank ranked No. 1 in the state.

Be Part of the Solution The 2013 ABA Government Relations Summit is your opportunity to educate lawmakers and regulators about the vital role banks play in the economy. Creating jobs. Growing businesses. Revitalizing communities. With a new Congress in session, it’s also time to meet with new

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Visit aba.com/Summit for details. 29 Palmetto Banker

Calendar of Events

Calendar of Events January 2013 15

Safety & Soundness Conference, The Clarion Town House Hotel, Columbia

16-17

BSA & AML School: “Managing Risks Today and into the Future”, The Clarion Town House Hotel, Columbia

February 2013 6

Banking Careers 101, Seawell’s, Columbia

SCBA Bank Operations Conference, The Embassy Suites, Columbia

March 2013

June 2013

9-13 SCBA Annual Convention, The Sanctuary, Kiawah Island, S.C.

Community Bankers Spring Peer Group

8-10 Young Bankers Conference, Westin Resort & Spa, Hilton Head, S.C. 13

July 2013

14-19 South Carolina Bankers School, SCBA Economic Developers Lander University, Conference, Midlands Greenwood, S.C. Technical College Northeast Campus, Columbia

September 2013

April 2013 23 11-12 Training the Credit Analyst, 15-17 SCBA Washington Trip/ABA Courtyard Downtown, Government Relations @ USC, Columbia Summit, Washington, D.C.

Who Will Lead? It’s time to identify the innovators in your bank and invest in their preparation to lead your organization. Since 1950 the Graduate School of Banking at Louisiana State University has educated over 15,000 banking leaders in the industry. Contact us and develop your future managers—today.

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Teach Children to Save Day, Across South Carolina

May 26 -June 7

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Young Bankers Division Golf Tournament, The Members Club at Woodcreek, Elgin, S.C.

Feature

Veteran Journalist Takes Helm of Palmetto Banker

his issue of the Palmetto Banker marks the first with Kevin Dietrich handling the publication’s writing and editing duties. Dietrich is a veteran journalist and marketing specialist who joined the South Carolina Bankers Association as Director of Communications and Marketing last September. Dietrich graduated from the University of Maine where he earned a bachelor’s degree in Journalism. He lives in Irmo with his wife Katie and has six children. He spent more than a decade as a business reporter, working for several publications, including the American Banker, the New York-based financial services daily, where he covered community banking in the western United States, and The State, where he covered banking and finance throughout South Carolina. “When I was with The State I always enjoyed working with the folks at the SCBA,” he said. “They were not only helpful and professional, but they knew banking, which I respected.” Dietrich has also served as a speech writer to Gov. Mark Sanford, worked for Columbia advertising agency The Adams Group and was communications coordinator for the state’s largest law firm, Nelson Mullins Riley & Scarborough. “One of the things I have enjoyed most as a journalist is finding interesting or unusual people and businesses, and bringing their stories to a wider audience,” Dietrich said. “The Palmetto Banker gives me a wonderful forum to do just that – highlight South Carolina banks and bankers that haven’t gotten the recognition they deserve.” The decision to focus on Spratt Savings & Loan Association in this issue, for example, was an easy one, he said. “Spratt is the oldest financial services institution in the state, having been founded when Pitchfork Ben Tillman was governor and Chester County was still suffering from deprivations brought about by the War Between the States,” Dietrich said. “Consider the financial storms Spratt has weathered over the decades: there has been at least one recession in every decade since it was founded, it survived the Great Depression – when

hundreds of other banks failed in South Carolina alone – two world wars, the collapse of the textile industry and, most recently, the so-called Great Recession,” he said. “Yet through it all, management has never wavered from its commitment to serving the people of Chester County.” Yet, despite Spratt’s tenacity and perseverance, it would appear no media outlet has written a feature story on the venerable savings and loan in nearly half a century. “It’s unfortunate that good stories like that of Spratt Savings and Loan get overlooked all too often,” Dietrich said. Dietrich said that communications and marketing are more important than ever before for financial institutions. Job cuts in the mainstream media due to declining circulation and viewership over the past decade has resulted in less local business coverage, and made it more difficult for institutions to get the word out about what they’re doing. “One of the things I’d like to help our members with is working with the media and demonstrating why it’s beneficial to reach out to the press,” he said. “It’s imperative that bankers be not only willing to talk with the media when the opportunity arises, but I’d recommend that they be proactive. It’s far better to get a call from a reporter with whom you have an established relationship should something unforeseen happen than have that call be your first contact.” Serious journalists, more than anything else, want to get the story right, and given the complexities inherent in covering business, especially finance, they often need people they can turn to for answers, Dietrich added. “The relatively small amount of time you invest in building a relationship with a reporter could pay huge dividends down the road,” he said. Dietrich said he’s looking forward to traveling around the state, meeting with bankers and getting a better understanding about what sets each institution and its people apart. “Every bank, and every banker, has a story to tell; as a writer it’s my job to discover it and bring it to life,” he said.

The South Carolina Bankers Association Wishes You a Happy New Year 31 Palmetto Banker

Welcome, New Associate Members The Benefit Company, Inc.

The Burke Group, LLC

P.O. Box 211486, Columbia, S.C., 29221 3800 Fernandina Rd., No. 200, Columbia, S.C., 29210

3715 Northside Parkway, Bldg. 400, Suite 475, Atlanta, Ga., 30327

Contact: Steve Lunceford, President Phone: 803.750.5781 Fax: 803.750.8060 Email: steve@thebenfitcompany.com Website: www.thebenefitcompany.com Since 1991, The Benefit Company’s combined understanding of employee benefits and data management systems has bridged the gap between technology and benefits support, resulting in a comprehensive client management solution – Benefitfirst™. Benefitfirst is a turnkey web-based employee benefits management system that can be customized to meet the needs of each of our clients. HR administrators can reduce their administration time by up to 80 percent by enrolling employee benefits for new hires, status changes and annual enrollments in one web portal and in less than five minutes per event. From design to implementation, including ongoing service, our knowledgeable benefits, communication and data-management specialists support an employee benefits plan that will meet the growing requirements of today’s complex employee benefits environment.

nCino 2605 Iron Gate Dr., Suite 100 Wilmington, N.C., 28412 Contact: Mary Ellis Gabriel Phone: 803.467.4927 Email: maryellis.gabriel@ncino.com Website: www.ncino.com nCino’s bank operating system is a comprehensive, fully integrated bank operating system that was created by bankers, for bankers, to drive increased profitability, productivity gains, regulatory compliance and operating transparency at all organizational levels and across all lines of business. Sitting alongside a bank’s core, the Bank Operating System provides seamless integration through its nCommercial, nRetail, nMortgage and nCompliance products, and the security of SAS 70 Type II cloud architecture, the most advanced data security platform in the world. nCino’s solution has enabled existing bank clients to experience a true competitive advantage and significant return on investment. On average our client banks have experienced a 19 percent increase in loan volume, a 34 percent decrease in loan closing time, a 22 percent increase in staff efficiency, a 17 percent reduction in operating costs, a 54 percent reduction in policy exceptions and elimination of regulatory compliance costs.

32 Palmetto Banker

Contact: Bill Herrell Phone: 404.844.4225 Fax: 404.574.5064 Email: bherrell@burkegrp.com Website: www.burkegrp.com With more than 75 years of collective senior-level experience, The Burke Group is an independent firm focused on financial services and based in Atlanta. Having completed more than 100 transactions, our experience is unprecedented. We form lasting client relationships and have led a number of transformational transactions in the Southeast. Our focus is four key areas: mergers and acquisitions, capital raising, strategic advisory and asset disposition.

McAngus Goudelock & Courie, LLC 1320 Main St., 10th Floor, Columbia, S.C., 29201 Contact: David Ross Phone: 803.227.4923 Fax: 803.748.0526 Email: david.ross@mgclaw.com Website: www.mgclaw.com MG&C represents clients in a broad range of commercial and residential real estate transactions. Our legal professionals represent investors, developers, and owners in matters involving real estate acquisitions and sales, financing, mortgage foreclosures, real estate related litigation, and commercial and residential development including the preparation of covenants and restrictions. Additionally, we assist with condominium organization, condemnations, zoning, and other land use matters, as well as commercial and residential landlord/tenant issues including lease negotiation and drafting and default remedies.

ServisFirst Bank 850 Shades Creek Parkway, Suite 200 Birmingham, Ala., 35209 Contact: Richard (Rik) K. Lane Phone: 478.733.0756 Email: rlane@servisfirstbank.com Website: www.servisfirstbank.com The Correspondent Bank Division of ServisFirst Bank is committed to being the choice provider of correspondent banking services for community banks across the southern United States. We are committed to delivering quality service through a variety of product offerings, including: cash management services, online banking services, federal funds services, credit products, international services and consolidated settlement services. At ServisFirst Bank – Our Name is Our Mission.

Welcome, New Associate Members Robinson, McFadden & Moore, PC

Plexus Capital, LLC

P.O. Box 944, Columbia, S.C., 29202 1901 Main St., Suite 1200, Columbia, S.C., 29201

4501 Six Forks Rd., Suite 528, Raleigh, N.C., 27509 Contact: Kel Landis Phone: 919.256.6343 Fax: 919.256.5350 Email: klandis@plexuscap.com Website: www.plexuscap.com

Contact: R. William Metzger, Jr. Phone: 803.227.1130 Fax: 803.744.1550 Email: bmetzger@robinsonlaw.com Website: www.robinsonlaw.com Robinson McFadden has a substantial and diverse finance and transactions practice. We regularly represent lenders and borrowers in all types of commercial transactions. The firm’s secured lending practice involves asset based financing, acquisition and start-up financing and many different types of government guaranteed financing under various USDA and SBA programs. The firm serves as counsel to both local and national banks and asset based lending institutions. In combination with our firm’s other practice groups, the firm is able to represent borrowers and lenders from underwriting through closing, and then to payoff; or, sometimes unfortunately, workout, foreclosure or bankruptcy. Lawyers in the group are consistently recognized in banking and finance law, real estate and workout/bankruptcy areas.

Thomas Ho Company 55 Liberty St., Suite 4B, New York, N.Y., 10005 Contact: Thomas Ho Phone: 212.732.2878 Fax: 212.608.1233 Email: tom.ho@thomasho.com Website: www.thomasho.com Thomas Ho Company is a leading financial engineering company that provides comprehensive asset liability management solutions for a variety of financial institutions including thrifts and community banks. The company was founded in 1999 by Thomas S.Y. Ho, author of the Ho-Lee Model (the first arbitrage-free stochastic interest rate model) and key rate durations (the widely used interest rate-risk measure). Our ALM Portal is a next generation asset liability management solution that allows your bank to view the trends of your dashboard metrics, generate monthly reports for ALCO meetings, do budget planning and access state-of-the-art financial valuation and risk models as per the current IRR regulatory guidelines. With the ALM Portal your bank will can also communicate with THC and your other advisory services, and with brokers to access their market information, quotes and recommendations to enhance your balance sheet performance, based on your Portal’s risk and profitability measures and what-if analyses.

With offices in Charlotte and Raleigh, N.C., Plexus manages $255 million and invests in middle market, high growth companies located in the United States. Typically structured as subordinate debt with warrants, our capital is most often used to fund growth, acquisitions, leveraged buyouts, management buyouts, and stock repurchases. Since 2005, Plexus has invested more than $190 million in 45 companies that provide a broad range of goods and services. Prospective portfolio companies have strong management teams, positive cash flow, large market opportunities, and need capital to execute their business plans. With 31 banks as LPs in Fund II, Plexus is able to leverage existing relationships to provide portfolio companies with access to senior capital to support working capital needs. Plexus is currently winding down Fund I, with 10 active portfolio companies remaining. We are actively investing from Fund II, which currently has closed investments in 18 companies since inception. As an investor, Plexus acts as a partner to management and provides them with any resources they might find useful to their business.

Trehel Corporation PO Box 1707, 1376 Tiger Blvd., Suite 104, Clemson, S.C., 29633 Contact: Will W. Huss, Jr. Phone: 864.654.6582 Fax: 864.654.7788 Email: whuss@trehel.com Website: www.trehel.com Utilizing Trehel Corporation’s proven Better Building Process, we shepherd our clients through a comprehensive construction process – the “3D” process – discern, design, deliver. Allow us to partner with you or one of your clients to discern, design, and deliver your optimum solution – balancing function, size, quality, aesthetic, safety, and of course … schedule and budget. The success of our process is proven with documented stories and testimonials that validate our consistent, yet client specific solutions. With over 30 years of experience, encompassing all market segments, our ability to meet or exceed each client’s unique expectations is proven – over 80 percent of our annual work is through repeat clients. Trehel Corporation is thankful for the opportunities already accomplished with members of the forward to continuing to serve you in the future. Please give us a call. Market segments served: commercial, ministry, industrial, education, hospitality, adaptive reuse, financial, multi-family, municipal, retail, non-profit. Services provided: site evaluation, master planning, feasibility & budgeting, design/build, and customer service. 33 Palmetto Banker

Welcome, New Associate Members Janney Montgomery Scott, LLC

Delta Dental

1801 Market St., Philadelphia, Pa., 19103-1675 Contact: Roger G. Powell Phone: 215.665.6000 Email: rpowell@janney.com Website: www.janney.com

1320 Main Street, Suite 650, Columbia, S.C., 29201 Contact: H. Spann Laffitte Jr. Direct: 803-454-8484 Cell: 803-587-0205 Email: Spann.Laffitte@deltadentalsc.com Website: www.deltadental.com

Janney Montgomery Scott LLC is a leading financial services firm dedicated to putting client needs first. Providing the best in financial and investment advice to help our clients meet their personal or business needs drives our daily operating philosophy. Janney traces its roots to 1832 and provides advice to individual, corporate and institutional clients. Serving the southeast through offices in Aiken, Atlanta, Charlotte, Columbia, Raleigh, Hilton Head and Spartanburg, we provide taxable and non-taxable fixed-income research and trading, investment banking – including public and private equity and debt placement and merger, acquisition and divestiture advice – as well as securities brokerage and asset management for households, pension, and profit-sharing accounts, institutional investors, corporate and non-profit entities. We provide fixed income strategy, commentary and credit research on corporate and municipal bonds to support our institutional clients and provide value-added advice and insight.

Delta Dental is the nation’s leading dental benefits company. A 501(c)(4) nonprofit organization with a social mission to improve oral health, Delta Dental of South Carolina is committed to providing access to quality dental care with the nation’s largest network and exceptional customer service. Based on proven associations between good oral health and good overall health, our smart benefits plans focus on prevention, as well as comprehensive care to promote good oral health among adults and children across our state. Studies show that people who have dental coverage are more likely to visit their dentist regularly, and regular visits lead to earlier diagnosis of tooth decay, gum disease and oral cancer. That’s why we say, “Good health starts here.”

SOUTH CAROLINA BANKERS ASSOCIATION BankPAC HONOR ROLL, 2012 – 2013 Thank you to the following banks, their directors and employees who supported the banking industry by contribuıng to the 2012-2013 SCBA BankPAC Campaign. Your support is graciously appreciated. Abbeville Savings & Loan Abbeville Ameris Bank Columbia Bank of America Columbia The Bank of Clarendon Manning Bank of Travelers Rest Travelers Rest Bank of York York BankGreenville Greenville BB&T Columbia Carolina Alliance Bank Spartanburg CBC National Bank Beaufort The Citizens Bank Olanta

Citizens Building & Loan Greer Clover Community Bank Clover CoastalStates Bank Hilton Head The Commercial Bank Honea Path Congaree State Bank West Columbia Cornerstone National Bank Easley Countybank Greenwood CresCom Bank Charleston Enterprise Bank of SC Ehrhardt First Citizens Columbia First Community Bank Lexington

First Federal Charleston First Federal of SC, FSB Walterboro GrandSouth Bank Greenville Heritage Community Bank Hartsville Home Federal Savings & Loan Bamberg Kingstree Federal Savings & Loan Kingstree Mutual Savings Bank Hartsville NBSC Columbia The Palmetto Bank Greenville Palmetto State Bank Hampton

SCBA BankPAC Board of Directors Gary Horn CBC National Bank Beaufort, Chairman Jack Goettee SCBT Columbia

34 Palmetto Banker

Frank Townsend Southern Bank & Trust (a division of Georgia Bank & Trust)

Aiken

Park Sterling Bank Greenwood Provident Community Bank Rock Hill SCBT Columbia Security Federal Bank Aiken South Atlantic Bank Myrtle Beach Southcoast Community Bank Mt. Pleasant Southern Bank & Trust (a division of Georgia Bank & Trust)

Aiken Southern First Bank, N.A. Greenville Spratt Savings & Loan Chester VistaBank Aiken Woodruff Federal Savings & Loan Woodruff

Tommy Johnson Citizens B&L Greer

Barry Ham The Bank of Clarendon Manning

Glenn Anderson Spratt S&L Chester

Linda Parker SCBA BankPAC Treasurer lindaparker@scbankers.org

South Carolina Bankers School 2013 South Carolina Bankers School July 14-19, 2013 Lander University

The The South South Carolina Carolina Bankers Bankers School School challenges challenges students students to to learn learn more more about about their their responsibiliƟes responsibiliƟes as as bankers bankers while while prepreparing them for future advancement within the industry. Students acquire a beƩer knowledge of the total scope paring them for future advancement within the industry. Students acquire a beƩer knowledge of the total scope of of their their organizaƟons organizaƟons and and the the role role the the nancial nancial services services industry industry plays plays within within the the naƟonal naƟonal economy. economy. The The school school consists consists of of aa three-year progressive course of instrucƟon with a one-week resident session each year. The school is ranked among three-year progressive course of instrucƟon with a one-week resident session each year. The school is ranked among the the pre-eminent pre-eminent insƟtuƟons insƟtuƟons of of its its kind kind in in the the naƟon, naƟon, with with thousands thousands of of PalmeƩo PalmeƩo State State bankers bankers having having enrolled enrolled and and graduated graduated from from the the program program over over the the past past half half century. century.

For For more more InformaƟon: InformaƟon: Please Please contact contact Teresa Teresa Taylor Taylor at at the the South South Carolina Carolina Bankers Bankers AssociaƟon AssociaƟon at at 803.779.0850. 803.779.0850.

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

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