Palmetto Banker Winter 2016

PALMETTO BANKER Winter Issue 2016-1

South Carolina Bankers Association

South Carolina’s Historic Bank Buildings 2015: The Year in Review A Tribute to Henry Laffitte A Look at the 2016 Legislative Session

2016 Young Bankers Conference Where Tomorrow’s Leaders Come Together Today March 18-20, 2016 Omni Grove Park Inn Asheville, North Carolina The Young Bankers Conference is an opportunity for young bankers to learn more about the industry, to acquire leadership skills that will beneĮt both them, their banks and their communiƟes, and to provide networking opportuniƟes that promote personal and professional growth. Those who aƩend will walk away from the conference with not just a wealth of informaƟon on the Įnancial services industry, but they will begin or reinforce meaningful relaƟonships that will last a lifeƟme.

For more InformaƟon on the 2016 Young Bankers Conference, please contact Carolyn LaĸƩe at the S.C. Bankers AssociaƟon at 803.779.0850, or by email at carolynlaĸƩe@scbankers.org.

Contents 2009 Park Street, Post Office Box 1483 Columbia, S.C., 29202-1483 Phone: 803.779.0850; Fax: 803.779.0890 Web: www.scbankers.org Chairman David M. Lominack TD Bank, N.A., Greenville Chairman-Elect Robert R. Hill, Jr. South State Bank, Columbia Treasurer David L. Morrow CresCom Bank, Charleston Immediate Past Chairman H. Blake Gibbons, Jr. The Ci zens Bank, Olanta SCBA Staff President and CEO Fred L. Green, III Execu ve Vice President, CFO/BankPAC Treasurer Donna S. Taylor Senior Vice President, Conven ons/Conferences E. Anne Gillespie Senior Vice President, SCBA Services, Inc./ South Carolina Bankers School Carolyn E. Laffi e

Sen. Thomas Alexander, Oconee’s Man in Columbia, Page 11

Young Bankers Conference Set for March 18-20, Page 12

President’s Message

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Cover Story: S.C.’s Old-Time Bank Buildings

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2015 Year in Review

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SCBA Washington Trip Set for March 14-16

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Hundreds A end SCBA Legisla ve Recep on

A Look at the 2016 Legisla ve Session

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Directors Workshop Among SCBA Events on Tap

Reviewing the 2015 Community Bankers Forum

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SCBA Welcomes New Preferred Vendor

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Remembering Long me S.C. Banker Henry Laffi e

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Bank News

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Personal Transac ons

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The Palme o Banker is a publica on of the South Carolina Bankers Associa on. The magazine exists to serve its members by communica ng news of interest, educa on and SCBA ac vi es.

BankPAC Honor Roll

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New Associate Members

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Items from members are welcome, however the editor reserves the right to refuse copy. With the excep on of official announcements, the SCBA disclaims responsibility for opinions expressed and statements made in ar cles published in the Palme o Banker.

Good Samaritans

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Calendar

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Senior Vice President & Counsel, Legisla ve & Regulatory A. O’Neil “Neil” Rashley, Jr., Esq. Director, Adver sing & IT M. Caroline Sheorn Administra ve Assistant Bonnie E. Nelson Director, Marke ng and Communica ons; Editor, Palme o Banker R. Kevin Dietrich

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Cover: Chester’s old Commercial Bank, built in 1913 and recently renovated by area aƩorney Bill Marion. Photo by Zach Sykes.

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President’s Message

Keep the Cake: Five Years (and more) of Dodd-Frank

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n case you missed the streamers, balloons and all-around hoopla, there was a major legisla ve anniversary last summer.

Last July marked the fi h anniversary of the passage of the Dodd-Frank Act, legisla on that brought the most significant changes to financial regula on in the U.S. since the regulatory reforms that followed the Great Depression.

Of course, Dodd-Frank hasn’t exactly been a hit with the financial services sector, which has had to deal with increased compliance costs and greater regulatory oversight, among other things.

It was hoped that Congress would include meaningful regulatory relief in the nego ated 2016 spending bill that was unveiled this past December.

Green However, despite a grassroots push from bankers in South Carolina and across the na on, lawmakers were unable to enact common-sense reforms that would help America’s hometown banks be er serve their clients, customers and communies, all of which would have helped bolster the economy.

In case there are those who think this was a one- me effort, more than 130 bills have been introduced in Congress to amend the law or repeal Dodd-Frank en rely. In addi on, the House Financial Services Commi ee has held 58 meetings related to Dodd-Frank.

Among legisla on the SCBA is watching: HR 1210 (Por olio Lending and Mortgage Access Act) – This long-sought legisla on of bankers, the ABA and state bankers associa ons creates a safe harbor for qualified mortgages held on a bank’s balance sheet. U.S. Reps. Mick Mulvaney, Tom Rice and Joe Wilson are co-sponsors;

HR 1941 (Financial Ins tu ons Examina on Fairness and Reform Act) – This amends the Federal Financial Ins tuons Examina on Council Act of 1978 to require federal financial ins tu on’s regulatory agency to make a final examina on report to a financial ins tu on within 60 days a er the la er of: (1) the exit interview for an examina on of the ins tu on; or (2) the provision of addi onal informa on by the ins tu on rela ng to the examina on; HR 1941 – Would also en tle financial ins tu ons to appeal a material supervisory determina on contained in a final report of examina on to a newly created independent examina on review director. Reps. Mulvaney and Jeff Duncan are co-sponsors of the bill; HR 1553 (Small Bank Exam Cycle Reform Act) – This will increase the asset threshold for insured depository ins tu ons eligible for 18-month on-site examina on cycles from $500 to $1 billion; HR 766 (Financial Ins tu on Customer Protec on Act) – HR 766 prohibits a federal banking agency from formally or informally sugges ng, reques ng or ordering that a depository ins tu on terminate a customer account unless the agency has a material reason to do so and that it is not based solely on reputa on risk. Rep. Mulvaney is a cosponsor; and HR 3192 (Homebuyers Assistance Act) proposes to provide a temporary legal safe harbor (un l Feb. 1, 2016) from enforcement of the Consumer Finance Protec on Bureau’s TILA-RESPA Integrated Disclosure Rule set to take effect in early October. A similar Senate bill, S 1711, was sponsored by Sen. Tim Sco .

Also in the Senate there is S 1484, the Financial Regulatory Improvement Act of 2015. Sen. Sco supports this bill, which essen ally does what the above House bills do.

It’s clear that some forms of regulatory relief were and are needed.

A recent survey by SNL Financial showed that five years a er the passage

of Dodd-Frank, compliance costs have surged for many banks and rela ons with regulators have deteriorated.

Smaller community banks in par cular believe the law has become overly burdensome, with stacks of new regulatory requirements hiking costs and making it increasingly difficult to kept resources focused on primary services such as lending and deposit gathering.

According to an SNL online survey conducted this summer, 35 percent of respondents said compliance costs have increased 30 percent or more during the past five years.

Another 27 percent said such costs have climbed between 20 percent and 30 percent.

Banks and bankers find themselves devo ng more me, energy and dollars to regulatory compliance – far more than they had to even half a decade ago.

This is me and resources that should be focused on bank customers.

Unfortunately, among the same survey respondents 40 percent said banks’ rela ons with regulators have deteriorated since the passage of Dodd-Frank, just 13 percent said they had improved and 47 percent said they had remained steady.

I was op mis c that with the financial crisis in the distant background, cooler heads would begin to prevail in our naon’s capital.

While we came up short this me in our bid for meaningful regulatory relief, we have laid the groundwork for future success.

Let’s hope that with me we will begin to see some of the onerous measures passed in the of the heat of moment repealed or at least amended, so that our state’s bankers can spend more me on their bread and bu er, making loans and taking deposits, and doing the things which will ul mately help our state and na on prosper.

(Fred Green is the president and chief execu ve officer of the South Carolina Bankers Associa on.)

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Cover Story

Old Bank Buildings: Relics of Bygone Financial Glory Kevin Dietrich Palme o Banker Editor

to have its own banks.

The above weren’t outliers, either. The list of small communi es that could anks sprouted up in communiclaim a financial ins tu on of its own es large and small across South was extensive as South Carolina entered Carolina beginning in the late the Roaring Twen es. Not only did ny 19th century as merchants, farmers and locales such as Ashton, Cades, Centeother business leaders recognized the nary, Chappells, Conastee, Cope, Fork, need for local access to capital.

Hagood, Lockhart, Lydia, Mt. Croghan, From the state’s largest ci es to, in Parler, Pinewood, Ruby, Starr, Tatum, some cases, hamlets of fewer than 200 Trio, Wellford, Whitmire and Yemespeople, hundreds of financial see have their own banks, ins tu ons were started to but marginally larger comserve the needs of state resimuni es had many more, dents. Some of these banks including Abbeville (with five were housed in impressive banks), Anderson (five), Benedifices, among the Palme o ne sville (four) and GreenState’s first skyscrapers, while wood (five). Charleston had others, par cularly in the 16 banks based in the city smaller communi es, tended and even the small Marlboro to be small one-story strucCounty town of Clio could tures that some mes were boast three banks of its own a ached to drug stores or and the ny Kershaw County barber shops. community of Bethune By 1920, there were nearly (popula on 229) had two.

450 state-based banks and Nearly all the small ins tuanother 130 state-based ons and many of the larger savings and loan associa ons banks that once dominated serving South Carolina. They the commercial centers of ranged from well-known the state’s larger ci es have ins tu ons such as the long since closed or been Aiken-based Bank of Westacquired. The buildings ern Carolina, Greenville’s these banks originally operBank of Commerce and the ated from have largely been Columbia-headquartered pulled down, but a handful Standard Building and Loan of old- me bank buildings Associa on, to ny operas ll can be found throughout ons such as the County Savthe state. ings Bank of Abbeville (with They range from the nearless than $25,000 in deposits, majes c, such as the iconic the Farmers and Merchants Farmers and Exchange Bank Bank of Eastover (deposits Building in Charleston, of barely $18,000) and the declared a Na onal HisJim Fuller of the Chester County Chamber of Commerce shows off Bank of Sco a (approximately toric Landmark more than 40 the newly renovated chamber building, the former People’s Bank $17,500 in deposits). years ago, and the Ci zens of Chester.

Today, fewer than 100 banks Bank building in Rock Hill, and thri s serve the state, but the big start a local financial ins tu on. to the ny Bank of Olar building, which difference, unlike nearly a century ago, That’s how ny towns such as Neeses, stands alone on one of the Bamberg is that most every bank opera ng in in Orangeburg County, (popula on 289 County town’s few roads, and the old South Carolina has mul ple branches. in 1920), McCormick County’s Plum Bank of Pomaria building, in the small Back in 1920, only a handful of S.C. Branch (popula on 169), and Smoaks, in Newberry County community, which banks had branches and only one of Colleton County, (popula on 132) came wouldn’t be recognizable as a former

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those – the Bank of Western Carolina – had more than a single branch.

Today, by comparison, there are more than 1,300 banking offices in the state spread among the 80-plus banks and thri s that operate in South Carolina.

What lack of branching 100 years ago meant was that if those in smaller towns wanted to make deposits or take out loans, they either had to take to the road for such transac ons or work to

What was originally the Bank of the State of South Carolina’s Abbeville branch (and the first bank office of any kind in the Upstate), opened at 107 Court Square in Abbeville in 1860.

However, it only operated as a branch of the state bank un l the end of the Civil War. It later became the Na onal Bank of Abbeville (18851925). Built in 1858, the The Bank of Waterloo served residents of western Laurens two-story stucco brick County from 1913 un l 1931. building served as a bank office un l the 1990s when Bank of Hampton operated from 1892 America predecessor Na onsBank un l 1926, then the structure was donated it to the city, which turned All Edifices, Great and Small used as commercial space un l the it into the Abbeville Visitors Center.

The architecture of these old bank 1960s. Since 1987, it has housed structures is as varied as South Carolina the Hampton Museum and Visitors’ • The Bank of Waterloo, in western Laurens County, is representa ve itself. The “second life” some of these Center. of long-defunct ins tu ons that are buildings have experienced a er bank• The Ci zens Bank & Trust Co. Buildlargely only remembered because ing has differed radically from town to ing, 157 East Main St., Rock Hill, the building they were once housed town: was built for the Ci zens Bank & in s ll remain. Located on Main • Bishopville is home to what was Trust Co. The decora ve six-story Street of the small community, the once the Bank of Bishopville, structure was Rock Hill’s first highBank of Waterloo (1913-1931) was although it is be er known as the rise office building. The Ci zens housed in a one-story brick buildPeople’s Bank of Bishopville buildBank began in 1915 and survived ing. Today, the structure is boarded ing. Located at 140 N. Main St., the un l 1927. It later housed the main up, overgrown with vegeta on and two-story brick structure features office of Rock Hill Na onal Bank for has definitely seen be er days. Yet a stone exterior and is an example 35 years, beginning in 1941, and with its brick cornice and pilasters, of Neo-Classical style, with large WRHI Radio, from 1944 through and the “Bank of Waterloo” s ll Doric columns flanking the main 1977. Today it serves as an office easily readable on the building’s entrance. It was built in 1912 for building. façade, it is one of the commuthe Bank of Bishopville, which later nity’s best-known and most-photobecame Bishopville Na onal Bank Other structures are decidedly simpler graphed edifices. before going out of business in in styling: 1932. It was then purchased by the • The Bank of Buffalo, in Union The demise of many of the state’s People’s Bank of Bishopville and County, was built to accommodate small-town banks came in the 1920s remained under that name un l the needs of workers at the Buffalo it was acquired by First Ci zens in Mill, constructed around the turn of and ‘30s.

South Carolina saw a startling wave 1986. In 1998, First Ci zens donatthe 20th century. The bank itself, loof bank failures with the onset of the ed it to the city for use as the City cated at the end of South Street in 1920s. This was due in no small part County Complex, which it remains Buffalo, opened during World War to a downturn in agriculture. With the today.

I in a red-brick two-story structure end of World War I, the price of cot• The Bank of Hampton, located at that also housed a drug store and ton, which represented 70 percent of 15 Elm St. in Hampton, was built barber shop. The bank closed just the value of all Palme o State crops, in the early 1890s. It is described before the beginning of World War crashed. Tobacco prices fell, as well, and as being an “Italianate-influenced” II, but con nued to be used as a See Old Bank Buildings, page 26 brick building. The Bank of store and later a senior center.

financial ins tu on except for the faint outline of the le ers B-A-N-K atop the façade.

Yet, those that remain o en occupy a special place in their communi es. Some have been designated as Na onal Historic Landmarks while others are part of Na onal Historic Districts. Some have been converted to other uses, from newspaper offices and senior centers to restaurants and chambers of commerce. A very small percentage con nue as banks, though almost always under different names than when they were constructed.

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Feature Story

Legislative Success, Giving, Events: Reviewing 2015 Kevin Dietrich Palme o Banker Editor The past year was much like any other in that it had its ups and downs, but there were a number of unusual occurrences that affected bankers and the banking industry during 2015, from flooding that wreaked havoc across parts of the state in the fall, to an up ck in M&A ac vity to success in the legislature on specific bills affec ng banks.

Here’s a look back on some of the big events that le a mark on South Carolina banking last year, in chronological order: 2015 Legisla ve Session The 2015 Legisla ve year proved significant to the SCBA as the General Assembly addressed a number of issues that affected banking in South Carolina, bills the SCBA took an ac ve role.

Priori es during the year included: Public Deposits. The legislature enacted the SCBA’s bill to amend the public deposit statutes to enable local governments in South Carolina to take advantage of a deposit placement service known as Insured Cash Sweep, or ICS. ICS allows a local government depositor’s funds to be redeposited from a transac on account at a bank into money market deposit accounts and demand deposit accounts at mulple banks throughout the country in amounts that are less than the standard FDIC insurance maximum.

Patent Trolls. The SCBA con nues to support passage of a bill to rein in the abusive ac ons of patent trolls. Trolls use patents they’ve purchased to target common business devices such as ATMs, office copiers and scanners, and hotel and restaurant Wi-Fi, claiming that the use of these “off-the-shelf” products violates a patent – a patent that the troll simply bought from another and will not use to further the technology.

Banks and other business targets are then le to choose between pay6

ing exorbitant license fees in order to con nue to use these normal everyday items or to pay extraordinary legal fees defending their ac vity. Despite significant support throughout the General Assembly, last year’s bill was stopped the final week in the session by one senator.

Transporta on Network Companies.

Transporta on network companies such as Uber and Ly have become increasingly popular by offering a technologically convenient way to connect independent, private drivers with passengers that normally would rely on taxis.

However, this business model le states such as South Carolina deba ng how to properly regulate these en es to ensure driver safety and sufficient insurance coverage.

For banks, the issue was whether drivers had comprehensive and collision insurance if there was a lien on the driver’s vehicle.

If the driver had a wreck while driving for the TNC there was a possibility that the insurance company would deny coverage as the car was being driven to transport passengers for a fee. Because of this and other issues, H3525 was enacted.

Young Bankers Conference More than 175 individuals turned out for the 2015 Young Bankers Conference, which marked the 60th anniversary of the Young Bankers Division.

Bankers, associate members and a number of quality speakers were on hand for the event, held March 6-8 at The Boardwalk Inn at Wild Dunes.

Speakers included Nate DePore from PeopleMa er; Jack Ellenberg, S.C. Ports Authority; Cathy Jones-Stork, S.C. Department of Educa on; and Bob Long, Van v. A panel discussion of former Young Bankers Division chairmen featured Sam Erwin, The Palme o Bank; Tyler Hudson, NBSC; Henry Laffi e, Palme o State Bank; and David Morrow, CresCom Bank.

SCBA Washington, D.C., Trip Some 30 bankers took part in the SCBA Washington Trip, March 23-25.

The annual trip was held in conjunc on with the American Bankers Associa on’s Government Rela ons Summit. The SCBA group was able to enjoy extended me with Reps. Mick Mulvaney and Tom Rice at a dinner sponsored by Nelson Mullins Riley & Scarborough and Ellio Davis Decosimo at Nelson Mullins’ Washington office.

The group was also able to a end a luncheon with Rep. Joe Wilson.

The SCBA delega on then split up and visited with other members of the S.C. Congressional delega on, including Sens. Lindsay Graham and Tim Sco , and Reps. Jeff Duncan, Trey Gowdy and Mark Sanford.

A special highlight was an insiders’ tour of the Capitol building given by Rep. Rice, which lasted approximately 90 minutes and included a visit of both the United States House and Senate chambers.

“It was a highly produc ve trip,” said SCBA President and CEO Fred Green.

“Because we met with some of our Congressional delega on members over dinner or lunch, we were able to have in-depth discussions with them about issues of significance to the banking industry.”

Women in Banking Symposium The second annual Women in Banking Symposium saw a 20 percent increase in a endance as more than 170 bankers and guests from North and South Carolina turned out for the event, April 8-9 in Charlo e.

The event, held at The Omni, featured an array of high-profile speakers, including Cathy Callaway Adams, chief operaons officers with the Federal Home Loan Bank of Atlanta; Cathy Bessant, global technology and opera ons execuve for Bank of America; Beth Dinndorf, president of Columbia College; and Patricia Moore-Pas des, first lady at the University of South Carolina.

Scholarships The SCBA awarded $42,000 in scholarships to Palme o State college students in May. Forty-two students from 10 South Carolina ins tu ons were recipients of Palme o Scholarships. The program emphasizes offering scholarships to the children of employees of SCBA-member banks.

Annual Conven on More than 425 bankers, associate members, family and friends a ended the 2015 South Carolina Bankers Associa on Annual Conven on, held June 7-10 at the Belmond Charleston Place.

The 115th annual conven on featured great weather, an outstanding array of speakers and excellent accommodaons.

“Of all the many conven ons I’ve attended over the years, I believe this one was probably the best of the bunch,” said SCBA President and Chief Execu ve

Officer Fred Green.

Speakers at this year’s event included James Ballen ne, execu ve vice president of congressional rela ons and poli cal affairs for the ABA; Joe Kea ng, chief investment officer for CenterState Bank; Ray Tanner, USC athle c director; and former New York Yankee and USC baseball coach Bobby Richardson.

There were 30 exhibitors at the conference, a sharp increase from the previous year.

Outstanding Young Banker R. Montague Laffi e III, central South Carolina region president for South State Bank, was named SCBA Outstanding Young Banker for 2015 at the organiza on’s Annual Mee ng in June. Laffi e, a 2000 graduate of Wofford College and 2002 graduate of the Moore School of Business, joined Columbia-based South State Bank in 2002.

The Outstanding Young Banker Award

is the highest honor presented in South Carolina’s banking industry. It is chosen by the SCBA Past Chairman’s Club and has been given to a deserving banker each year since 1970. Past recipients include many prominent S.C. bankers.

New Chairman David Lominack, South Carolina Market President for TD Bank N.A., took over as South Carolina Bankers Associa on chairman last summer, succeeding Blake Gibbons of The Ci zens Bank of Olanta.

Lominack, based in TD’s Greenville office, became the SCBA’s 115th chairman at the associa on’s annual conven on in Charleston in June.

A graduate of Presbyterian College, Lominack began his banking career while s ll in school, taking a posi on as a summer teller at Greenville-based Carolina First Bank. He joined the bank upon gradua on and stayed with it a er See 2015, page 15

SBA 7(a) Authorized Area of Operations In an effort to expand the value of your membership in Business Development Corporation (BDC), we have received authority from the Small Business Administration (SBA) to make SBA 7(a) loans in a seven state area that includes: » South Carolina » Alabama » North Carolina » Florida » Georgia » Virginia » Tennessee

If we can help you in any of these areas, give us a call today at 803.798.4064 or visit us online at BDCofSC.org.

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Washington Trip

SCBA’s Annual Washington Trip Set for March 14-16 The annual SCBA Washington Trip/ ABA Government Relaons Summit will be held March 14-16, 2016, with a endees staying at the Washington Marrio Marquis.

For those arriving early on Sunday evening, we’re planning a casual dinner, similar to that of the past two years. In addi on, we hope to arrange a dinner with several members of Congressional delega on on Monday evening.

Following lunch on Tuesday, we’ll spend the a ernoon on the Hill visi ng with our delega on. The Federal Home Loan Bank of Atlanta is sponsoring a dinner that evening.

Last year, the SCBA Washington trip enjoyed another robust turnout as 30

bankers made the trip to our na on’s capital to meet with members of the state’s Congressional delega on and regulators. The trip offers a rare opportunity for bankers to sit down and get valuable face me with our elected officials in Washington who help shape na onal policy.

For more informa on about a ending the conference, contact the ABA at 800.226.5377 or Anne Gillespie at the SCBA at 803.779.0850.

Regarding accommoda ons, the Washington Marrio has reserved a room block for SCBA members, with a Feb. 26

cutoff date.

Reserva ons received a erward will be accepted on a spaceavailable basis at the prevailing rate. The Washington Marrio requires a credit card to guarantee accommoda ons.

All reserva ons as well as changes in arrival, departure or type of accommoda ons must be made in wri ng directly through reghousing@aba.com or by fax at 202.663.7543.

“Our Washington Trip is not only highly produc ve and enables us to sit down and talk with our elected officials, but helps develop a special bond among bankers that I don’t see in other state banking associa ons,” said SCBA President and CEO Fred Green.

Don’t Miss the 2016 SCBA Annual Convention June 12-15, 2016 The Sanctuary, Kiawah Island, S.C. Call Anne Gillespie at 803.779.0850, or email agillespie@scbankers.org.

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Legisla ve Recep on

Some 400 Attend Legislative Reception in Columbia Some 400 bankers, associate members, elected officials and friends a ended the annual South Carolina Bankers Associa on’s annual Legisla ve Recep on, held Jan. 12 at the Columbia Museum of Art. Among those on hand for this year’s event were Lt. Gov. Henry McMaster, House Speaker Jay Lucas, S.C. Senate Commi ee Chairmen Thomas Alexander (R-Oconee), Kevin Bryant (R-Anderson), Ronnie Cromer (R-Newberry), Wes Hayes (R-York), Luke Rankin (R-Horry), and Larry Mar n (R-Pickens).

S.C. House Commi ee Chairmen who a ended included David Hio (R-Pickens), Wes Newton (R-Beaufort) and Bill Sandifer (R-Oconee); and S.C. House Chairwoman Rita Allison (R-Spartanburg).

Other notables included former Gov. Jim Hodges, Sen. Nikki Setzler (DLexington) and South Carolina Banking Commissioner Louie Jacobs.

There were also numerous individuals who serve on the boards of state schools, lower courts and, of course, bankers from across the state, includ-

ing several former Bankers Associa on chairmen.

Among the many bankers who attended was Bill Varn, who last year celebrated his 65th year of involvement with The Enterprise Bank of S.C. “We had another strong turnout this year, and as always it was good to see representa ves from both big banks and smaller banks on hand,” said SCBA President and CEO Fred Green. “This is a popular event because it gives our bankers the chance to strengthen rela onships with their legislators.”

Counterclockwise, from top le : Jim Benne , Spra Savings & Loan, and Sen. Wes Hayes; Gov. Jim Hodges and Mike Brenan, BB&T; Neil Rashley, SCBA, David Lominack, TD Bank, and House Speaker Jay Lucas; Rep. Gary Clary and Frank Townsend, Southern Bank & Trust, a division of Georgia Bank & Trust; Bill Varn, Enterprise Bank of S.C., Gene Varn, Enterprise Bank of S.C., and Louie Jacobs, S.C. Banking Commissioner; Fred Green, SCBA, Sen. Nikki Setzler and Neil Rashley, SCBA; Jennifer Ashburn, Sandhills Bank, Circuit Court Judge Cli on Newman, Jim Smith, Sandhills Bank. Middle: Sen. Larry Mar n, Fred Green, SCBA, and David Lominack, TD Bank.

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Legisla ve Preview

SCBA Positive as Second Year of Session Commences Neil Rashley Senior Vice President & Counsel

T

he South Carolina General Assembly reconvened Jan. 12 for the second year of the 2015-16 session.

In the first year of the session a number of bills SCBA supported and worked on were enacted including: Public Deposits (S375), the South Carolina Business Development Corpora on (S389), Guaranteed Asset Protec on Waivers (S441) and Transportaon Network Companies such Rashley as Uber (H3579).

This second year will be equally busy as the following bills are s ll pending or were recently introduced.

Patent Trolls SCBA’s priority bill (H3682) that allows banks and other businesses vic mized by patent trolls to recover damages under the Unfair Trade Prac ces Act is now pending in the Senate. With the strong support and sponsorship of Rep. Kirkman Finlay, the House overwhelmingly passed the bill last year. Since 2013, 27 states have passed similar legisla on, including Georgia, Florida, Tennessee and North Carolina.

Criminal Background Checks There is an increasing na onal movement to study whether criminal convic ons and pen-

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al es should be changed in order for applicants to get a job. In South Carolina, there is a present study commi ee considering expanding crimes eligible for expungement to include crimes of fraud and the . There is also a bill (S957) that would restrict an employer’s ability to ask for an applicant’s criminal history.

The Bankers Associa on tes fied at a recent hearing in opposi on to expanding expungement of these crimes and it also strongly supports allowing an employer to conduct proper background checks for criminal convic ons.

Mandatory Use of Chip, PIN Technology Last fall SCBA worked with A orney General Wilson on the issue of whether states should mandate that banks exclusively use Chip and PIN technology.

The A orney General agreed with SCBA that the state should not mandate this technology and refused to par cipate in a le er from other a orneys general asking legislatures to do so. This session the issue has come back as H4389, if passed, would establish a Financial Transac on Cards Protec on Study Commi ee to examine manda ng EMV Chip and PIN technology. The study commi ee would also review South Car-

olina’s criminal penal es for credit card fraud and iden ty the and whether these penal es should be reduced.

SCBA is opposed to these measures and will con nue to work with and educate commi ee members on the risks of manda ng a technology that does not increase consumer protec on.

Property Assessed Clean Energy Loans Introduced last year, S668 would allow commercial Property Assessed Clean Energy (PACE) loans made by local governments to businesses to finance upgrading to energy-efficient systems.

In order to facilitate financing of these loans, the PACE lien would be senior to an exis ng mortgage but only to the extent that the borrower is in arrears.

SCBA has worked with PACE advocates to amend the bill so that a PACE loan cannot be made un l the bank consents to the loan and the lien.

Appraisals Two bills should be introduced this session concerning appraisals. The first would be the Real Estate Appraisal Board’s bill that would allow bank employees not licensed as appraisers to conduct internal bank evalua ons in lieu of an appraisal. This would be consistent with the 2010 federal banking agencies’ interagency guidelines and would be similar to excep ons allowed in Georgia and North Carolina.

These changes are what SCBA has sought with the board for two years.

Second is another Real Estate Appraisal Board bill that would license and regulate appraisal management comSee Session, page 31

Meet Your Legislator

Walhalla’s Alexander Handles Many Roles in Senate

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.C. Senator Thomas Alexander holds a unique dis nc on: he is the first and only South Carolina legislator to serve as chairman of both the House Commi ee on Labor, Commerce and Industry (in the 1990s) and the Senate Commi ee on Labor, Commerce and Industry (2012-present).

He’s been in the General Assembly for nearly 30 years, the first seven as a member of the House and since 1994 as a member of the Senate.

Among other legisla ve commi ees that Alexander, R-Oconee, serves on is Senate Banking and Insurance. He’s well posi oned for that role due in part to having been a member of the board of directors of Walhalla-based Blue Ridge Bank for more than 20 years. During that period, the bank has tripled in size and gone from one office to three.

“The Blue Ridge Bank is a good community ins tu on and we’re proud that it’s been embraced by the communi es it serves,” Alexander said.

As the 2016 legisla ve session gets underway, Alexander iden fies several cri cal issues that need to be addressed, including infrastructure and workforce development.

The flooding that struck the state last October le myriad bridges and roads washed out or in need of repair. Even before that natural disaster there had been considerable discussion about the need to bolster South Carolina’s infrastructure, in order to assist economic growth, improve safety and enhance quality of life.

“With the natural disasters we’ve had we understand that we’ll have some responsibility from that standpoint, and I’m confident we’ll do what’s necessary to make sure what needs to get done gets done,” Alexander said.

“The emphasis will be on roads and bridges, but it’s going to take some me,” he added.

Alexander said workforce training is cri cal to the future of the state.

“We want to make sure we have a workforce that’s ready to work and able

S.C. Senate Thomas Alexander, R-Oconee, speaking on the Statehouse steps.

to take on jobs that will help communies across South Carolina,” he said.

Alexander said he’s hearing about this need from employers, and the goal is to make sure South Carolinians are prepared for the jobs of today.

“We’ve seen such a change in the requirements of jobs; they’re not what they were even five or 10 years ago,” he said.

“We want to, first, make sure we can fill those needs because it’s good for the ci zen and it enables them to become more produc ve,” Alexander added. “It also allows the Department of Commerce and the governor to go out and bring industry to the state.”

Alexander said that workforce development is crucial to the state’s economy because at least 80 percent of new jobs come from exis ng companies.

“So we have to be sure we’re partnering with those companies and providing training to keep them in our state,” he said. “We’re compe ng with other locaons, not only na onally, but globally, for keeping jobs.”

Alexander, who graduated from Clemson University with a degree in Econom-

ics, is the owner of Alexander’s Office Supply stores and Cleveland Gospel Supply.

In addi on to chairing the Senate Labor, Commerce and Industry Commi ee and serving on the Banking and Insurance Commi ee, Alexander also chairs the Senate Public U lity Review Commi ee, and serves on the Finance Commi ee, where he is chairman of Health and Human Services Subcommi ee; the Senate Medical Affairs Commi ee; and the Joint Bond Review Commi ee.

Alexander also played a key role in something close to his heart: the reconstruc on of Walhalla Presbyterian Church. The house of worship, founded in 1868, burned in 2013, leaving just parts of the brick walls, the floor joists and some stained-glass windows.

Alexander, a lifelong member of Walhalla Presbyterian, served on the rebuilding commi ee and was on hand when the restored structure was opened last year.

“It was very meaningful to me to be a part of that process,” he said.

–Kevin Dietrich 11

Young Bankers Division

The 2016 Young Bankers Conference will be held March 18-20, 2016, at the Omni Grove Park Inn in Asheville, N.C.

Young Bankers to Hold 2016 Conference in Asheville

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he 2016 Young Bankers Conference will be held March 18-20 at the scenic Omni Grove Park Inn, in Asheville, N.C. The Young Bankers Division has helped up-and-coming S.C. bankers for more than 60 years, enabling the future leaders of the state’s banking industry to gain insight into the financial services industry and the issues facing it.

“The Young Bankers Conference offers an opportunity to make new friends, catch up with old friends and, just as importantly, learn about what of significance is happening in our industry,” said Young Bankers Division Chairman and Blue Ridge Bank CEO Glenn D. Buddin Jr. “Who you meet and what you learn as a member of the Young Bankers Division will benefit you your en re career.”

The Young Bankers Division is noted for several ini a ves, including: • A scholarship program highlighted by the YBD Scholarship Golf Tournament and the S.C. Bankers School.

Last year $42,000 was awarded to

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the children of employees of SCBAmember banks; • Banking Careers 101, an annual event in which Palme o State college students are brought together to learn about opportuni es in banking; • A Financial Literacy program which touched 71,000 individuals during the past fiscal year; and • The Young Bankers Conference, held annually each spring. This two-day event encourages peer interac on, and offers educa onal opportuni es and the chance to learn more about the Division.

The 2016 conference will feature several notable speakers, including S.C. Sen. Thomas Alexander; Clemson economist Sco Baier; Robert Hucks, senior vice president with Coastal Carolina

Na onal Bank; and Susan Wind, a social media and cyber security consultant with kNOwmore of Mooresville, N.C. There will also be a panel discussion featuring past recipients of the Outstanding Young Banker award: Thornwell Dunlap III, CEO of Countybank; Montague Laffi e III, central regional president and senior vice president with South State Bank; Sco Plyler, president of South Atlan c Bank; and John Poole, CEO of Carolina Alliance Bank.

The panel will be moderated by Tricia P. “Trish” Springfield, retail banking execu ve with Southern First Bank.

Bobby Richardson, former New York Yankee, University of South Carolina baseball coach and a na ve of Sumter will give the Prayer Breakfast talk.

Others who will speak during the three-day event include Division Chairman Buddin; SCBA President and CEO Fred L. Green; David Lominack, South Carolina market president for TD Bank N.A. and SCBA chairman; and Blake See Conference, page 30

SCBA News

Directors’ Workshop Among Events Slated for 2016 on the near-horizon include the 2016 Bank Opera ons Conference (Feb. 3 in Columbia) and the 2016 Safety and Soundness Workshop (Feb. 11 in Columbia).

The Safety and Soundness Workshop, tailored to directors, CEOs, CFOs, chief risk officers, senior compliance officers and other senior bank officers, will look at each of the CAMELS components conducted by experts from the banking industry and a panel of top regulators.

The SCBA is, as always, ac ve on the outreach front. On Feb. 10 it will hold its annual Banking Careers 101 at Seawell’s in Columbia. Last year, some 130 students from more than a dozen South Carolina colleges and universies turned out for the event, which featured 30-plus South Carolina bankers talking about their jobs and the industry. Banking Careers 101 is an excellent way to tell future young professionals

With a new year comes an array of opportuni es to a end career-related educa onal events and also reach out to poten al up-and-coming bankers.

On the career development front, the SCBA will be offering several top-notch conference, seminars and workshops in the coming months. While a full schedule of events is listed on page 33, one of par cular interest is the Bank Directors and Managers Workshop, set for Feb. 23 in Columbia.

Led by David Kemp of Bankers Management Inc., the workshop will look at responding to regulatory ac ons, including board responsibili es; performancereview systems and why boards should review their CEOs each year; analysis of the audit commi ee, an en ty whose importance has grown considerably in recent years; and the importance of sound and per nent board reports.

Other noteworthy educa onal events

about opportuni es within the banking industry.

The SCBA recently began accep ng applica ons for its Young Bankers Division scholarship program. Last year, $42,000 was awarded to children of SCBA-member bank employees, part of the Associa on’s effort to reinforce its commitment to educa on and assist students with the ever-increasing cost of higher educa on.

To be considered for the SCBA Palmetto Scholarship students must: Be a resident of South Carolina; have a parent who lives in South Carolina and works for a SCBA member bank in South Carolina; be a full- me junior or senior undergraduate at an accredited fouryear college or university in South Carolina during the fall semester of 2016; have a minimum grade-point average of 3.0 on a 4.0 scale; be ac ve in his or her See Upcoming, page 25

tŝƚŚ Ă ϯϲϬΣ ƉĞƌƐƉĞĐƟǀĞ͕ ŽƵƌ ĮŶĂŶĐŝĂů ƐĞƌǀŝĐĞƐ ƚĞĂŵ ŝƐ with you every step of the way.

More than 125 banks in the Southeast depend ŽŶ ůůŝŽƩ ĂǀŝƐ ĞĐŽƐŝŵŽ ĨŽƌ ƉĞƌƐŽŶĂů ĂƩĞŶƟŽŶ͕ ŝŶĚƵƐƚƌLJ ĞdžƉĞƌŝĞŶĐĞ ĂŶĚ ƐĞƌǀŝĐĞƐ͕ ŝŶĐůƵĚŝŶŐ ĞdžƚĞƌŶĂů ĂŶĚ ŝŶƚĞƌŶĂů ĂƵĚŝƚ͕ ^ ƌĞƉŽƌƟŶŐ͕ DΘ ĐŽŶƐƵůƟŶŐ͕ ƚĂdžĂƟŽŶ ĂŶĚ ĐŽŵƉůŝĂŶĐĞ͘ KƵƌ ĮŶĂŶĐŝĂů ƐĞƌǀŝĐĞƐ ƉƌĂĐƟĐĞ ŝƐ ŵŽƌĞ ƚŚĂŶ ϭϬϬ ƉƌŽĨĞƐƐŝŽŶĂůƐ ƐƚƌŽŶŐ͕ ǁŝƚŚ Ă ϲϬͲLJĞĂƌ ƌĞƉƵƚĂƟŽŶ ĨŽƌ ŚĞůƉŝŶŐ ďĂŶŬƐ ŽƉĞƌĂƚĞ ƐƚƌŽŶŐĞƌ͕ ǁŝƐĞƌ͕ ďĞƩĞƌ͘ >Ğƚ ƵƐ ŚĞůƉ LJŽƵ ŵŽǀĞ ĨŽƌǁĂƌĚ͘

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elliottdavis.com

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Feature 2015 it was acquired by Canada’s Toronto-Dominion Bank. Lominack worked his way up through ranks, eventually spending four years in Columbia as Midlands market president before returning home to Greenville in 2010 to serve as Upstate market president. A er the TD-South Financial deal, he was promoted to market president of the newly formed Upstate-Midlands region. Last May he was promoted to South Carolina market president for TD. Giving to Emanuel AME Banks opera ng in donated hundreds of thousands of dollars in the wake of the June 17 shoo ngs at the Mother Emanuel AME Church in Charleston.

Sizable contribu ons from South Carolina banks or banks with significant opera ons in the state went to support Mother Emanuel AME Church vic ms’ families, the Lowcountry Unity Fund, to promote long-term solu ons addressing systemic issues contribu ng to racism

and economic inequality in AfricanAmerican communi es, and the Palmetto Project, to support the vic ms, their families and programma c ministries of Rev. Clementa Pinckney, a state senator who was among the nine vic ms.

S.C. Bankers School Some 42 students graduated from the South Carolina Bankers School last July, with 130 students in all a ending the highly regarding program from July 1217 at Lander University in Greenwood.

Students came from more than two dozen ins tu ons, including banks, thri s, Farm Credit banks, and the Federal Reserve Bank of Richmond’s Charlo e office, and were led by 25 instructors. The third-year class raised more than $17,000 for the SCBA’s educa on scholarship program, the largest amount in at least the past 15 years.

Young Bankers Golf Tournament Nearly $26,000 was raised at the 26th annual Young Bankers Division Scholarship Golf Tournament, held Sept. 22 at The Members Club at Woodcreek in Elgin. Tournament proceeds went to scholarships for children of employees of SCBAmember banks and thri s. In all, 155 golfers par cipated one of the largest turnouts ever for the Young Bankers Division Scholarship Golf Tournament.

S.C. Flooding South Carolina banks and bankers rose to challenges presented by

devasta ng floods that struck the state in October, dona ng me, treasure and talent to help the state get back on its feet. Bankers quickly stepped up to help those in need, with ins tu ons commitng hundreds of thousands of dollars to support disaster relief efforts in South Carolina. South Carolina banks almost immediately began assis ng customers affected by the disaster in a variety of other ways, as well. Many ins tu ons put together special-product promoons to help customers affected by flooding and weather-related difficules, and bankers also began developing relief strategies in the communi es they served. Many banks found themselves impacted by the disaster, as scores of bank offices were closed in the immediate a ermath of the torren al downpour that deluged parts of the state with more than 20 inches of rain in a 24-hour period beginning Oct. 3, with some unable to open for days or weeks.

M&A Ac vity South Carolina saw one of its busier years for merger-and-acquisi on ac vity as a number of deals were announced or completed around the state.

High Point, N.C.-based BNC Corp. announced plans in August to acquire Southcoast Financial Corp. of Charleston, the holding company for Southcoast Community Bank; United Community Banks Inc. of Blairsville, Ga., completed its deal for Greenville-based Palme o Bancshares Inc., parent of The Palme o Bank, in August.

In October, Carolina Alliance Bank completed its purchase the parent of Pinnacle Bank of South Carolina.

Finally, in November, Beaufort-based Coastal Banking Co. Inc., the holding company of Fernandina Beach, Fla.based CBC Na onal Bank, agreed to acquire Ocala, Fla.-based First Avenue Na onal Bank.

In addi on, there have been numerous branch sales, both to in-state and outof-state banks.

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Community Bankers

Forum Pulls in Bankers from 54 Financial Institutions The 2015 SCBA Community Bankers Forum a racted nearly 90 individuals, including bankers from 54 ins tu ons and 32 associate members, as speakers touched on an array of crucial issues facing community banks today.

Topics ranged from strategic planning and board development to data management and bank merger and acquision trends.

Put on by the SCBA’s Community Bankers Council, the Oct. 28 program

was developed to assist independently owned banks and thri s with deposits of $1 billion or less.

“A endance was very good and the topics were both relevant and mely,” said Grier Sandifer, chairman of the Community Bankers Council. “Speakers presented informa on that was beneficial for those community bankers in a endance and everyone had some ‘takeaways’ from the event.

“It was also a great me to network

Top, clockwise, from le : Grier Sandifer of the Bank of York. Aggie Gibson, Independent Bankers Bank, and Jim Bigger, right, CenterState Bank, with an uniden fied individual. Ben Barnhill, Nelson Mullins Riley & Scarborough, and Lamar Simpson, Carolina Alliance Bank.

Middle right and middle: A endees listen to presenta ons. Middle le : Lou Dunham, Ardmore Banking Advisors, and William Langford, Bank of York. Bo om right: SCBA President and CEO Fred Green, right, moderates the regulatory panel, which featured John McFadden, State Board of Financial Ins tu ons; Paul Frey, Federal Reserve Bank of Richmond; and Jeff Burgess, Federal Deposit Insurance Corp.

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with other bankers as well as vendors that provide services to our community banks,” he added.

Held at the Agape Conference Center in Columbia, the event not only featured speakers from as far away as Pennsylvania and Virginia, but included a regulatory panel made up representaves from the Federal Deposit Insurance Corp., Federal Reserve Bank of Richmond and the Office of the Comptroller of the Currency.

SCBA News

SCBA Preferred Vendor Program Styled to Aid Banks These days it seems many of us are trying to do more with less. We’re facing more onerous regula ons and more burdensome compliance costs while we have less me and less staff.

As the banking industry con nues to undergo drama c developments we must look for ways to help members retain business, offer first-rate service, manage risk be er, improve efficiencies and increase revenue.

The mission of SCBA Services Inc. is to recognize the needs of our bankers and to review and recommend products and services.

Companies that meet this designa on are designated “preferred vendors.”

Endorsements are limited to a select group of companies offering products and services that South Carolina banks

need in order to operate an efficient and profitable bank.

Each of our preferred vendors provide top-quality service, offer generous benefits and can add value to each ins tuon.

SCBA members value and appreciate the level of integrity associated with our preferred vendors.

The ini al due diligence and the ongoing monitoring done by SCBA Services provides comfort to the member banks.

The ve ng process includes submission of a full RFP applica on, a thorough review of company financials and an extensive reference check.

We expect all of our preferred vendors to be high-caliber companies with impeccable references and a solid financial background.

The goals of our preferred vendor program include: •

To save your bank me by bringing a product or service to the table

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•

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immediately; To save your bank money, as preferred vendors offer discountmember pricing; To save your bank’s resources, as preferred vendors can o en serve as an extension of your staff; and To produce revenue for your bank, by offering exper se, convenience and efficiencies.

This is an excellent opportunity for you to get the most out of your membership. As a banker, one of your goals is to be er serve your customers and your communi es while mee ng regulatory obliga ons.

SCBA Services’ preferred vendor program can help you reach that objec ve.

For more informa on on the South Carolina Bankers Associa on’s preferred vendor program, please contact SCBA Senior Vice President Carolyn Laffi e at 803.779.0850 or via email at carolynlaffi e@scbankers.org.

Secure Banking Solutions Becomes Preferred Vendor Secure Banking Solu ons of Madison, S.D., is the South Carolina Bankers Associa on’s newest preferred vendor.

SBS is a cybersecurity company that works with financial ins tu ons to help them with informa on technology examina ons. It implements risk-management programs to help negate cybersecurity threats and incidents.

SBS offers many products and services, including TRAC, a cybersecurity risk-management so ware; risk-based audits; vulnerability assessment; and consul ng.

SBS also offers financial cybersecurity educa on, including training and cer fica on programs.

SBS focuses exclusively on the banking industry and has partnered with 17 state banking associa ons. Its goal is to solve the cybersecurity problems of the future.

Preferred vendors are a select group of en es offering products and services that SCBA-member banks can use to operate efficiently and profitably. Each is approved by the SCBA, provides top-quality service, offers generous benefits and can add value to SCBA-member ins tu ons.

For more informa on on working with SBS, contact Carolyn Laffi e at 803.779.0850, or by email at carolynlaffi e@scbankers. org.

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News

Final Current Expected Credit Loss Standard on the Way Michael Gulle e ABA Banking Journal

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ere it comes! A er five years and five different proposals, the Financial Accoun ng Standards Board is set to issue a final Current Expected Credit Loss standard for impairment of loans and debt securi es.

With an effec ve date for fiscal year 2019 for SEC registrants and 2020 for all others, CECL is bound to make a big splash – but not necessarily in ways first an cipated. While es mates made by regulators in 2011 indicated that CECL would result in a 30-50 percent increase in the allowance for loan and lease losses, a recent KBW ar cle believes the increase will be much lower, around 6-8 percent. So, it may not be the huge hit to capital that many feared, but it will be the jump in complexity that presents the biggest challenge to bankers.

While acknowledging that systems will need to be reconfigured in order to perform CECL’s life-of-loan loss es mates, both regulators and FASB members want a standard that is scalable to banks of all sizes, not requiring complex modeling.

An cipa ng CECL’s release, the Federal Reserve staff recently held an “Ask the Fed” webinar to show bankers how a vintage analysis (one that analyzes charge-offs by year of origina on) may be used to es mate expected credit losses over the life of a loan por olio. Presumably, this is a good example of a non-complex model.

Wrong.

Never mind that forecasts over a year in the future are notoriously unreliable, even those made by economists. The LOL concept introduced in CECL is an enormous change from current accoun ng and has poten al complexi es wai ng at every turn. It is not the examiners, though, that bankers should fear. In the real world, auditors, complying with their regulator (the Public Company Accoun ng Oversight Board), will require detailed documenta on to support the specific financial impact of banker long-term forecasts of future losses. No shortcuts. No, Monte Carlo simula ons will not be needed, and thirty-year forecasts will not be required. If this were 1995, it might not be a big deal; in this post-financial crisis age of too-li le-too-late reserves, earnings management and Sarbanes-Oxley, however, quan fying such es mates will be a steep hill to climb for many bankers.

Forecasts of the future: Too hard for too long During their webinar, the Fed staff presented historical life-of-loan charge-off rates per vintage. While different, this vintage approach seems straigh orward – more work, yet straigh orward nonetheless. The fine print is that these averages are merely the star ng point – the real challenge is what bankers must do in order to arrive at an actual loss expectaon during a real life audit. Current PCAOB inspec ons have auditors scrambling to obtain specific quan ta ve support 18

for the so-called “Q factor” qualita ve adjustments applied to historical loss rates. Jus fying that the rise in local unemployment will result in a 10 basis point (bp) increase in losses (and not 20 bps) is an arduous task now, and it will get significantly harder under CECL. Q factors are currently used to adjust historical loss rates to reflect current condi ons. Under CECL, they must reflect current condi ons, as well as condi ons a year from now, two years from now, and so on over several years. How will banks do that?

Think of the complica ons of es ma ng future losses. For example, an assump on that general unemployment will increase over the next two years will impact one vintage differently than another vintage. That will need to be modeled.

Remember also that losses on collateral-based loans also do not normally occur un l loan to value ra os hit 100 percent.

That must be considered, too. Needless to say, future loss expecta ons based on forecasts of future economic indices will o en get pre y hairy. The regulators may allow certain short cuts. Auditors will, nevertheless, require bankers to include such factors into their es mates.

Piling on top of these complexi es is the extended me period that a LOL forecast requires – the financial impact of your assump ons will be mul plied over years. Bankers now struggle in explaining to auditors why a Q factor resulted in a 25 See CECL, page 25

Execu ve News

Paying Tribute to Longtime S.C. Banker Henry Laffitte

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and S.C. Archives and Hisong me South Carotory Museum Board. lina banker Henry Mike Brenan, South Spann Laffi e, vice Carolina president for BB&T, chairman of Palme o said Laffi e was one of the State Bank and the former first bankers he met when president of Carolina he moved to the Palme o Commercial Bank, passed State in 1999. away Dec. 31, 2015, in “As a banker Henry was Allendale. second to none in so many Laffi e enjoyed a long ways. I par cularly loved career in banking da ng his stories and, of course, back 50 years. he was a man of style, “Henry never forgot a par cularly his madras friend and no one ever jacket, which always made forgot Henry,” said Lloyd Palme o State Bank execu ve Henry Laffi e, in his iconic plaid sports appearances at the annual Hendricks, former SCBA jacket, with long me friend Leon Pa erson of The Palme o Bank at a conven on,” Brenan said. “I president and CEO, and a recent SCBA annual conven on. Laffi e, who passed away in late know I am a be er man and banker whose friendship December, wore the jacket to the conven on for decades. banker for knowing Henry. with Laffi e stretched back to their college days, when they SCBA Annual Conven on in 1989, which He le his mark on many of us and I know we are all grateful that he crossed were fraternity brothers at the Univeris where I first met Henry,” said SCBA our paths.” sity of South Carolina.

President and CEO Fred Green. “I have Laffi e was a long me member of the “He was a man of keen intellect, imloved his stories and his great sense of Allendale Presbyterian Church, where peccable integrity and a real friend to humor over the years. We will all miss everyone he met. And he contributed so him and the plaid jacket he always wore he had served as deacon and elder.

Laffi e is survived by his wife of nearly much to the banking industry,” Henat the conven on.”

50 years Elizabeth Peeples Laffi e, their dricks added.

Laffi e, 74, a ended The Citadel and Laffi e was named Outstanding Young graduated from USC with an undergrad- two children, Henry Spann Laffi e Jr. and his wife Elizabeth Fraser Laffi e of Banker, the highest honor presented in uate degree and an MBA. Columbia, and Elizabeth Laffi e Hu on the South Carolina banking industry, in Laffi e, whose family is noted for its and her husband George Sargeant Hut1978, and for years played a key role in role in South Carolina banking, rose to ton of Columbia; and his grandchildren, the SCBA’s Young Bankers Division, serv- become president of Carolina CommerAlice Lowndes Laffi e, Lucille Morrison ing as president of the Young Bankers cial Bank in Allendale.

Laffi e, Elizabeth Anne Hu on, Henry Division of the South Carolina Bankers With the consolida on in 2007 of the Sargeant Hu on and George Stearns Associa on in 1980-81. He authored An three Laffi e family banks – Carolina Hu on of Columbia.

Account of the Young Banker’s Division Commercial Bank, The Exchange Bank Also surviving are his two brothers, of the South Carolina Banker’s Associaand Palme o State Bank – under a sinCharles Atkins Laffi e Jr. (LaClaire) of on in 1980. Laffi e was also a member gle charter, Laffi e became vice chairHampton and Montague Tucker Lafof the SCBA’s Board of Directors. man of the combined en ty. fi e (Ann) of Blu on, numerous other Laffi e not only was a graduate of Laffi e was about more than banking, South Carolina Bankers School, but later though. He took an ac ve part in a wide family members and many friends in the served as chairman of the en ty. range of cultural and community organi- South Carolina banking community.

“Henry was a dedicated husband to He was also a graduate of the School za ons throughout the state. of Banking of the South at LSU and the He served on Allendale County Council, Libby, a devoted father to his children and a friend to everyone,” Brenan said.

Stonier Graduate School of Banking at was president of the Allendale County “I knew him as a man with a deep and Rutgers. He served as a member of the Historical Society and the Huguenot abiding faith in the Lord Jesus Christ. FiAmerican Bankers Associa on’s ComSociety of S.C., and was a member of nally, look up the consummate Southern munity Bankers Group, and he was numerous organiza ons, including the gentleman and banker in the dic onary involved in acquiring funding and supGeneral Society of Colonial Wars, Sociand you’ll find a picture of Henry.” plies for the ABA’s Personal Economic ety of First Families of S.C., S.C. HistoriProgram. cal Society Board, Governor’s Mansion –Kevin Dietrich “As a banker, I started a ending the Founda on, S.C. State Museum Board 19

South Carolina Bankers School ENROLL NOW FOR THIS YEAR’S CLASS! 2016 SOUTH CAROLINA BANKERS SCHOOL JULY 10-15, 2016 LANDER UNIVERSITY

The South Carolina Bankers School challenges students to learn more about their responsibiliƟes as bankers while preparing them for future advancement within the industry. Students acquire a beƩer knowledge of the total scope of their organizaƟons and the role the Įnancial services industry plays within the naƟonal economy. The school consists of a threeͲyear progressive course of instrucƟon with a oneͲweek resident session each year. The South Carolina Bankers School is ranked among the preͲeminent insƟtuƟons of its kind in the naƟon, with more nearly 2,800 PalmeƩo State bankers having enrolled and graduated from the program over the past half century.

Enroll now by visiƟng www.scbankers.org.

For more InformaƟon: Please contact Carolyn LaĸƩe at the South Carolina Bankers AssociaƟon at 803.779.0850.

Bank News

Coastal Makes Acquistion in Florida CresCom Parent the central Florida market. Coastal Beaufort-based Coastal Banking Co. Banking noted in the release that the Inc., the holding company of CBC Crafts Deal acquisi on allows the company to grow Na onal Bank, agreed in November to acquire Ocala, Fla.-based First Avenue its core community banking franchise for Congaree while con nuing to bolster its two other Na onal Bank.

The deal is slated to close at the end of the first quarter of 2016, subject to approval by the shareholders of Coastal Banking and First Avenue, receipt of regulatory approvals and other customary closing condi ons.

When the deal is completed Coastal Banking expects to merge First Avenue’s opera ons into CBC Na onal Bank.

First Avenue, which operates two branches in Ocala and one branch in The Villages, Fla., will add about $125 million in assets, $108 million in deposits and $79 million in gross loans to CBC Na onal Bank, according to a company press release.

The acquisi on of First Avenue is Coastal Banking’s first expansion into

primary opera ng divisions, residen al mortgage banking and governmentguaranteed lending.

A er the comple on of the deal, First Avenue President and CEO Ralph Strayhorn III will be returning to his banking and business advisory prac ce, while senior execu ves Adam Woods, Jason Welborn and Patrick Moses will be joining CBC Na onal Bank.

Woods has been named CBC Na onal Bank’s market execu ve for Marion and Sumter coun es, according to the company.

Addi onally, two members of the First Avenue’s board will be joining the Coastal Banking’s board upon compleon of the deal.

Conway Na onal Bank Conway Na onal Bank has received approval from the Office of the Comptroller of the Currency to establish an office at 4100 River Oaks Drive, Myrtle Beach.

The company expects to open the office some me in 2016.

Federal Financial Corp. on Nov. 24 authorized a buyback program pursuant to which the company intends to purchase up to 175,000 shares of its issued and outstanding common stock.

In connec on with the authoriza on of this buyback program, Oconee Federal Financial’s board terminated a previous repurchase program, which had authorized the company to purchase up to 150,000 shares of its issued and outstanding common stock. Oconee Federal Financial repurchased a total of 113,400 shares under the previous program.

Entegra Bank Entegra Bank, the wholly owned subsidiary bank of Entegra Financial Corp., announced in mid-December that it had completed its acquisi on of two branches from Arthur State Bank.

Entegra acquired approximately $40 million in customer deposits and $5 million in loans between the two branches, located in Anderson and Chesnee.

First Palme o Bank First Palme o Bank of Camden completed its purchase of two branches from South State Bank in late October.

Columbia-based South State sold First Palme o offices in Loris and Li le River.

Oconee Federal Financial Corp.

The board of Seneca-based Oconee

TD Bank, N.A. TD Auto Finance U.S., the auto financing business unit of TD Bank, announced in November plans to consolidate its contact centers in the U.S. The consolida on will result in the closure of TD Auto Finance’s contact center in Dallas, in April 2016. TD Auto Finance will transfer these posi ons to other TD contact centers and make addi onal hires, with 250 posi ons being added in Greenville, and another 100 posi ons split between Michigan and Florida.

CresCom Bank parent Carolina Financial Corp. announced the first South Carolina acquisi on of 2016, announcing on Jan. 6 that it had signed a definive agreement to purchase Congaree Bancshares Inc., the parent company of Congaree State Bank.

The $16.3 million deal for West Columbia-based Congaree will give Carolina Financial approximately $1.5 billion in assets and enables it to move into the Columbia market.

“This transac on is a combina on of two companies with very similar philosophies, cultures and core values,” Congaree Chief Execu ve Officer Charles Kirby said. “Our current branch and lending personnel will remain in place, and we expect to add new people and increase our market presence as we join the Carolina Financial Corpora on team.”

The agreement has been unanimously approved by the boards of directors of both companies, and the transac on is expected to close in the second quarter of 2016.

Congaree was started in 2006. It has an office in Cayce in addi on to its headquarters loca on in West Columbia.

Carolina Financial Corp. was founded in 1997. CresCom was created in 2011 from the consolida on of Carolina Financial’s two subsidiaries, Community FirstBank and Crescent Bank.

Carolina Financial subsidiary CresCom Bank has expanded rapidly over the past year-plus. During 2014, CresCom completed two branch acquisi ons and grew from 11 to 26 branches. It also moved into the Greenville market and opened a loan produc on office in Wilmington, N.C. Late last year, Carolina Financial closed a public offering of more than 2.2 million shares of common stock at a price to the public of $15.25 per share, ne ng more than $32 million.

21

Personal Transac ons

Grooms

Griffin

Anderson Brothers Bank Jay Benson has been promoted by Anderson Brothers Bank to branch manager of the Florence Cashua office.

Anderson Brothers Bank has hired Jennifer Grooms as its social media marketing officer.

James “Jim” Hanley has joined Anderson Brothers Bank as vice president Commercial Lending. He will be based in the bank’s North Myrtle Beach loca on.

Anderson Brothers Bank execu ve Micky Wa s spoke at the SubPrime Forum in Sco sdale, Az., in November.

Wa s spoke on the state of the U.S. Subprime Auto Finance Market and Trends Session moderated by Benchmark Consul ng.

Bank of America Charlie Griffin recently joined Bank of America Merrill Lynch’s commercial banking team as vice president and rela onship manager.

22

Franklin

members to its South Carolina Market Advisory Board. They are: Dan Hamilton, opera ng principal of Keller Williams Realty of Greenville; Joe Pazdan, managing principal, McMillan Pazdan Smith Architecture; Ron Shaw, vice president of Shaw Resources; and Laura S lle, Spartanburg City Council District 4 representa ve, community volunteer, registered die an.

Clover Community Bank Charles “Bo” Redmond has joined Clover Community Bank as senior vice president, Commercial Banking.

Coastal Banking Co. Inc. Beaufort-based Coastal Banking Co. Inc. has promoted Brynn Stensrud to execuve vice president. Stensrud was named head of the company’s Atlanta-based residen al mortgage banking division in June.

CoastalStates Bank Andrew R. Richard recently joined CoastalStates Bank as vice president and commercial lender.

Carolina Alliance Bank Marshall Franklin, Richard Sumerel and Larry Webb have been named to the board of Spartanburg-based Carolina Alliance Bank. They were directors of Pinnacle Bank, which Carolina Alliance acquired in October. Franklin serves as COO of Bob Jones University, Sumerel works as execu ve vice president and COO of Verdae Development Inc., and Webb serves as the principal and broker with KDS Commercial Proper es.

Countybank Federal Home Loan Bank of Atlanta on Oct. 28 elected R. Thornwell Dunlap III to its board of directors. Dunlap – chairman, president and chief execu ve officer of Greenwood-based Countybank – was elected to fill the member directorship that the Federal Housing Finance Agency designated for the state of South Carolina.

Carolina Alliance Bank has added four

CresCom Bank CresCom Bank has named Travis Dan-

Dunlap

Pa erson

nelly business development officer and assistant vice president.

Amanda Diehl has joined CresCom Bank as vice president/internal auditor.

CresCom Bank has appointed Michelle Brannon Blower branch manager for its Greenville-based branch.

Joel Foster has joined CresCom Bank as South End market execu ve and vice president/commercial loan officer. He will operate out of the bank’s Garden City based branch.

Josh Kimbrell has been appointed vice president and commercial loan officer for CresCom Bank’s Greenville market.

Ka e Ma hews joins CresCom as a mortgage loan originator at the bank’s West Ashley branch.

David Smith has joined CresCom Bank as a mortgage loan originator for its Conway branch.

First Ci zens Bank Tripp Whitener of First Ci zens Bank has been appointed chairman of City Center Partnership’s board of directors. City Center Partnership manages a business-improvement district in downtown Columbia.

First Na onal Bank of S.C. Jonathan D. Pa erson has been promoted to execu ve vice president by First Na onal Bank of South Carolina.

First South Bank

Personal Transac ons

Rodriguez

Springfield

Gerald

Mallory J. Edwards has joined First State Bank in Spartanburg as vice president, commercial lending officer.

branch manager for NBSC’s Greenville main office, located at 201 E. McBee Ave.

Greer State Bank Greer State Bank recently announced the promo on of Kevin Duncan to assistant vice president, LPL Financial Consultant, Greer Financial Services.

Oconee Federal Savings & Loan William C. Barker has joined Oconee Federal Savings & Loan Associa on as a senior credit officer.

Independence Na onal Bank Ta Osborne has joined Independence Na onal Bank as branch manager of the Greenville-based ins tu on’s Simpsonville office.

South Atlan c Bank Kathy Doane has been promoted to assistant vice president by South Atlan c Bank.

South Atlan c Bank’s Brian Michel has been promoted to senior vice president.

NBSC, a division of Synovus Lyne e L. Koon has been promoted to Trust Specialist with the Synovus Trust Co.

Leah Rodriguez has been named mortgage loan originator at the South Atlanc Bank’s main office in Myrtle Beach.

Jessica M. Maddox has been promoted to branch manager for NBSC’s Spartanburg office located at 2660 Reidville Rd.

Kurt Seguer of South Atlan c Bank has been promoted to the post of senior vice president.

NBSC has added three individuals to its Greenville Advisory Board of Directors.

They are: Valerie Miller, an Oklahoma na ve who is a realtor with The Marchant Company in Greenville; Jacqueline H. “Jackie” Pa erson, originally from Alabama, an a orney at Pa erson and Associates P.A. in Greenville; and Greenville na ve Givens B. Stewart, who is principal at Colliers Interna onal.

Ann-Marie White has joined South Atlan c Bank as a loan administra on specialist.

Tommy Preston Jr. has been named to NBSC’s local board of directors. Preston is director of Na onal Strategy and Engagement at Boeing South Carolina.

George S. Sutherland has been named

Southern First Bank Southern First Bancshares Inc. has named Tricia P. “Trish” Springfield execu ve vice president of retail banking.

South State Bank South State Bank has named Michelle Freeman mortgage loan officer for its Rock Hill office.

Danielle “Dani” Gerald has been named a mortgage lending officer for South State Bank in Summerville.

Barre

Woodward

Rebecca “Becky” Schauer Robertson of South State Bank has earned the Cer fied Advanced AML Audit Specialist (CAMS-Audit) creden al from the Associa on of Cer fied An -Money Laundering Specialists.

South State Bank has named Leo A. Smith as branch manager for its Powdersville office.

TD Bank, N.A. TD Bank has Nate Barre senior middle market rela onship manager for the Carolinas.

John Rutenberg has been named regional vice president for the North Coast market in South Carolina and Wilmington, N.C., by TD Bank.

United Community Bank United Community Bank recently welcomed Todd Coleman to the United Community Mortgage Services team as a senior loan officer and assistant vice president.

Tom Kutyla has joined United Community Bank as a senior commercial banker in Charleston.

United Community Bank has appointed Jay McCutcheon as a senior commercial banker in Charleston.

Dixon Woodward has been named to manage all United Community Bank func ons in the Charleston area as regional president-Coastal South Carolina. UCB recently opened an office in Charleston.

23

2015-16 South Carolina Bankers Association

BankPAC Honor Roll

Thank you to the following banks, their directors and employees who supported the banking industry by contributing to the 2015-16 SCBA BankPAC campaign raising over $72,000. Your support is graciously appreciated.

Ameris Bank Anderson Brothers Bank Arthur State Bank Atlantic Community Bank Bank of Clarendon Bank of Travelers Rest Bank of Walterboro Bank of York BB&T Blue Ridge Bank Carolina Alliance Bank Carolina Bank & Trust Co. Citizens Building & Loan Clover Community Bank Coastal Carolina National Bank CoastalStates Bank

Congaree State Bank Cornerstone National Bank Countybank CresCom Bank Enterprise Bank of SC First Citizens Bank First Community Bank GrandSouth Bank Greer State Bank Heritage Community Bank Independence National Bank Kingstree Federal Savings & Loan Mutual Savings Bank NBSC, a division of Synovus Bank Palmetto State Bank Park Sterling Bank

Pickens Savings & Loan Association Sandhills Bank Security Federal Bank South Atlantic Bank South Carolina Community Bank South State Bank Southcoast Community Bank Southern First Bank Spratt Savings & Loan The Citizens Bank The Commercial Bank The Palmetto Bank United Community Bank VistaBank Wells Fargo Woodru Federal Savings & Loan

CECL basis point bp adjustment and not one of 50 bps. Imagine the struggle in jus fying a 100 bp life me loss adjustment, when other legi mate assump ons could result in 250 bp adjustment!

Historical data: To use or not to use Reminiscent of mutual fund disclosures that warn “past performance is not indica ve of future results”, the Fed staff acknowledges that some historical experience may not be relevant to current vintages.

For example, a bank’s current loss expecta ons should not generally be based on losses experienced during the financial crisis. They also point out that expecta ons may differ, based on increases or decreases in underwriting standards and other circumstances that may cause certain vintages to be unique.

That sounds reasonable, but which history WILL be relevant and how will banks support that assump on? Will a separate analysis be required for each

vintage of history to be used?

Currently, auditors merely ask that the last X number of years of historical loss data be consistent from year to year.

This is because recent history, by its nature, is related to current losses. Under CECL, however, such a rela onship does not exist because CECL does not address actual losses, but expected losses over the life me of the loan. Under CECL, virtually every year of historical data used will be scru nized.

Metrics: When rising delinquencies and unemployment are good things Bankers typically look at different credit metrics, such as delinquencies or nonaccrual loans, to get an idea of where loan loss provisions should go.

An increase in delinquencies normally equates to an increase in loss provisions.

This allows bankers to also communicate with their boards and their investors. Unfortunately, such a rela onship will no longer exist under CECL. Since

loan loss provisions are ini ally recorded at origina on, provisions will decrease, even as delinquencies increase, if such delinquencies are less than what was expected at origina on. Increases in unemployment can cause a decrease in provisions if the increase was less than expected and provided for.

Both FASB and banking regulators are intent on implemen ng CECL in a “scalable” fashion that does not require complex models. Unfortunately, it is the audi ng firms which may make CECL a mul -headed monster only a “quant” could love.

So far, the regulator of the audi ng firms, the PCAOB, has not commented publicly on CECL on what kind of documenta on will be considered reasonable and supportable. However, un l they do, FASB will not know how many heads this monster will have.

(Michael Gulle e is vice president for accoun ng and financial management policy at ABA.)

Upcoming school and community, demonstrate a solid work ethic, and possess strong leadership abili es, good teamwork and a desire to succeed; and submit a resume and le er of recommenda on from a dean or professor when comple ng the online applica on.

The deadline to apply for the Palme o Scholarship is March 11, 2016.

Finally, na onal Teach Children to Save Day is April 29, 2016. Teach Children to Save Day is an annual awareness day when bankers demonstrate their community commitment by teaching young people about the value of saving.

Visi ng classrooms, youth centers, a erschool programs and more, bankers from around South Carolina will use their realworld knowledge and professional skills to encourage young people to start saving young, and to save more. To learn more about this program and the Young Bankers Division financial literacy efforts, contact Carolyn Laffi e at 803.779.0850 or by email at carolynlaffi e@scbankers.org.

25

Cover Story Old Bank Buildings combined with the ravages of the boll opera ons of ins tu ons based in ‘It’s interes ng that many larger towns and ci es. weevil, farmers found the value of their products and their property withered of these structures, which dras cally.

Gone, but not Forgo en housed banks integral Banks, especially those in rural areas Today, some of these venerable old which had lent heavily to farmers and buildings enjoying a renaissance, to the development of the though o are made loans backed by an cipated en not as bank buildings. The communi es they served, old Bank of Beaufort building on Bay profits on co on and land, suffered accordingly. Between 1920 and 1933, an Street is used today as a restaurant; the are con nuing to play key astounding 74 percent of South Carolina old Ci zens & Southern Na onal Bank roles in the economic banks either failed or were absorbed, building on West Main Street in Sparaccording to the 1990 work, Making tanburg, built in 1915 for First Na onal vitality of their Change: South Carolina Banking in the Bank of Spartanburg, is now a pizzeria Twen eth Century. and pub; the old Florence Bank building surrounding areas In addi on, the federal government on West Evans Street in Florence is now decades later.’ had greatly restricted the ability of part of Hotel Florence, a bou que hotel. na onal banks to lend on real estate, In Chester, in fact, a minor bank-refurwhich meant farmers who wanted to bishing boom took place during 2015.

Fred Green borrow by using land as collateral had The old Commercial Bank and the old SCBA President & CEO to seek out smaller state banks, accordPeoples Na onal Bank, located roughly ing to John G. Sproat and Larry Schweia block from one another on Gadsden the number of ins tu ons in the state. kart in Making Change.

Street, were both renovated during the Where there had been nearly 450 As a result, 80 percent of bank suspen- banks in the state in 1920, by the end of year. sions occurred in towns with populaBill Marion, an a orney who’s prac1933, that number had fallen to fewer ons of 5,000 or fewer, which was the ced in the Commercial Bank building than 120. vast majority of South Carolina comsince 1973, said he’s long wanted to Small-town banks, like many small muni es. towns, never recovered, although many restore the structure at 124 Gadsden By the me President Franklin St., built in 1913. communi es were able to land branch Roosevelt “I’ve wantand Gov. Irba ed to redo Blackwood this building declared a for a long na onal and me, but not state “bank too long ago holiday,” we got a leak respec vely, and it was in March one of those 1933, most leaks that struggling would only South Carooccur when lina banks there was a had already heavy rain, gone under. so it was S ll, there hard to find were several where it was at,” he said. state banks “We ended that didn’t up calling in reopen fola contraclowing the tor, and it bank holiday, The Bank of Western Carolina (Batesburg branch), in Lexington County. Opened in 1915 and closed was at that further when the bank failed amid the Great Depression in 1931. point that diminishing 26

I decided to look at redoing the en re building.”

Marion, who’s said his law partner’s grandfather began working in the building when it opened more than a century ago, said the project took more than 10 months to complete and that as of early December he hadn’t even go en around to totaling the cost.

Commercial Bank, established in 1899, ended up merging with Orangeburgbased American Bank & Trust in 1972.

Two years later, American Bank & Trust became part of Southern Bank & Trust of Greenville. In 1986, Southern Bank was purchase by First Union. First Union, which had two branches in Chester, chose to consolidate its opera ons and vacate the Gadsden Street loca on.

At 109 Gadsden St., James Fuller of the Chester Chamber of Commerce decided to follow Marion’s lead.

The building was originally constructed

More Images of Old South Carolina Bank Buildings, pages 28-29 in 1875 to house a jeweler, but became the home of the Peoples Na onal Bank in 1914, which remained in business un l the 1950s, Fuller said.

The work, which involved removing ceiling panels to expose the larger interior, refinishing wooden beams and doors, and opening up exis ng windows, among other things, cost about $27,000 and took nearly 10 months, he said.

Today, both bank building look much more similar to what they were like when they were financial ins tu ons, according to images taken of the banks many decades ago.

Chester, interes ngly, had at least

five banks and thri s based in the city around 1920. In addi on to the above two, there was also the Na onal Exchange Bank, begun in 1906 and located at 125 Main St. which today is a Masonic temple; the White Bank of Chester, across from the Na onal Exchange Bank on Main Street; and Spra Savings and Loan Associa on, begun in 1892, also on Main Street. Only the la er remains in opera on. It is South Carolina’s oldest state-based financial ins tu on.

“It’s interes ng that many of these structures, which housed banks integral to the development of the communi es they served, are con nuing to play key roles in the economic vitality of their surrounding areas decades later,” said SCBA President and Chief Execu ve Officer Fred Green.

“It’s just another example of the longterm posi ve impact that banks have on their communi es,” he added.

27

Cover Story

Bank of Parksville (McCormick County): Organized, 1908; closed, 1920s.

Above: Farmers and Merchants Bank of Eastover (Richland County): Organized, 1910; closed, prior to 1950.

Bank of Hampton: Organized, 1892; closed, 1926.

Bank of Springfield (Orangeburg County): Organized, 1903; closed, 1920s.

28

Bank of Lancaster: organized, 1889; acquired, 1983.

Peoples Bank of Bishopville (Lee County): Organized, 1908; acquired, 1986.

Bank of Johnston (Edgefield County): Organized, 1888; closed, 1925.

Bank of the State of S.C., Abbeville branch: Establisted, 1860; closed, 1865.

Later: Abbeville Na onal Bank; The Ci zens Bank, Rock Hill: Organized, 1915; Farmers Bank, McCormick (McCormick Na onsBank. closed in 1927.

County): Organized, 1906; closed, 1930.

Planters Savings Bank, Greer (Greenville County): Organized, 1907; closed, 1940.

Bank of Bualo (Union County): Organized, 1918; closed, 1940.

Bank of Olar (Bamberg County): Organized, 1905; closed, 1927.

Bank of Pomaria (Newberry County): Organized, 1908; closed, 1930.

29

Welcome New Associate Members BDS Yarmouth & Choate 3535 Peachtree Road, NE, Suite 520-521 Atlanta, GA 30326 Contact: Robert “Rob” O’Halloran Phone: 828.333.6300 Website: www.yarmouthchoate.com Email: rohalloran@yarmouthchoate. com BDS Yarmouth & Choate provides specialty execu ve search and consul ng services to client banks varying from community banks to regional en es. We are in mately familiar with the evolu on of the community banking sector in the Southeast and the resulting sensi ve needs of clients within its borders. We are na onally recognized experts; contribu ng material to the New York Times, NBC Evening News and Fox News Channel. Our na onal industry awareness and candidate contacts benefit our local clients in very impactful ways.

HUB Interna onal Southeast 2430 Mall Drive, Suite 280 Charleston, SC 29406 Contact: Allison Rhyne

Phone: 843.529.5901 Website: www.hubinterna onal.com Email: allison.rhyne@huninterna onal. com HUB Internaonal serves the insurance and risk management needs of over 1 million customers. Our regional structure allows us to proac vely address local market needs from our 300-plus offices – including six loca ons in South Carolina.

Our Financial Ins tu ons Solu ons Group works with more than 700 community and regional banks na onwide.

J.P. Morgan Asset Management 270 Park Avenue New York, NY 10065 Phone: 212.648.1160 Contact: Tom Easow Email: thomas.p.easow@jpmorgan.com J.P. Morgan Asset Management is a leading asset manager for individuals, advisors and in-

30

NYMBUS 1000 5th Street Miami, FL 33139 Phone: 888.840.0089 Contact: Susie Dougherty Website: www.nymbus.com

Notification of Non-Renewing S.C. Bankers Association Members

Conference Taylor, senior vice president with Southern First Bank and chairman-elect of the Young Bankers Division.

Events include golf on March 19 at the Grove Park Golf Course, beginning at 1 p.m.; and, Saturday night entertainment featuring “Let’s Make a Deal,” based on the noted television game show.

A endees are encouraged to dress up, as players are chosen at the host’s whim.

If you have a wacky costume or crazy sign you have a be er chance at an opportunity to play the game.

For more informa on about a ending the 2016 Young Bankers Conference, contact SCBA Senior Vice President Carolyn Laffi e at 803.779.0850 or by email at carolynlaffi e@scbankers.org.

s tu ons. Our investment professionals are located around the world, providing strategies that span the full spectrum of asset classes. As one of the largest asset and wealth managers in the world, with assets under management of $1.8 trillion (as of June 30, 2015), we provide global market insights and a range of investment capabili es that few other firms can match. Throughout our long and dis nguished history, we have been steadfastly commi ed to pu ng our clients’ interests first. This fiduciary responsibility defines our rela onship with clients and informs the basis of every decision we make on their behalf.

This core principle is the founda on of our business as we work to understand our clients’ needs, offer informed advice and execute strategies to generate excess returns and provide world-class client solu ons.

The South Carolina Bankers Associaon reports that the following companies are no longer SCBA associate members.

Please update your lis ngs to reflect these changes.

We thank these companies for their past support.

The SCBA would welcome each of these companies to rejoin the Bankers Associa on as associate members again.

The non-renewing companies are: • • •

e-Rela onship; K. Sco and Associates, LLC; McAngus Goudelock & Courie;

• • • •

Pearl Meyer & Partners; Queens University; Voya Financial; and WolfPAC Integrated Risk Management.

To find out more about South Carolina Bankers Associa on associate membership or to become a preferred vendor, please contact SCBA Senior Vice President Carolyn Laffi e at 803.779.0850 or through email at carolynlaffi e@scbankers.org.

Welcome New Associate Members Email: sdougherty@nymbus.com NYMBUS is transforming the way tradi onal banks and financial ins tu ons support and interact with their customers. Miami, Fla.-based NYMBUS offer a modern, holis c so ware system that includes core processing func onality and an impressive suite of applica ons to improve workflows, automate processes and engage their customers – all in an environment that reduces technology challenges and nurtures constant innova on.

Praesidio 710 2nd Avenue, Suite 310 Sea le, WA 98104 Phone: 206.512.8691 Contact: Mary-Kelly Rich Website: www.praesidio.com Email: marykelly@praesidio.com Praesidio is a big data cybersecu-

rity management (CsM) company that bridges the gap between security and policy governance, solving the real-world problems of breach detec on, remedia on, and cybersecurity insight, so that C-suite and boards of directors can sleep at night knowing they are secure. Formed by bankers and technology experts, Praesidio bridges the gap between governance and IT by linking cybersecurity policies with the millions of system events where threats hide. Praesidio aggregates data across all cybersecurity tools to provide real- me management repor ng that proves to security teams, boards, auditors and regulators that a financial ins tu on is ac vely managing and enforcing its policies. Praesidio’s integrated policies and best prac ces help financial ins tu ons know definitely that they are safe.

S.C. Bankers Employee Benefit Trust P.O. Box 533 Chapin, SC 29036

Contact: Teresa D. Taylor Phone: 803.575.8401 Email: aylor.scbebt@gmail.com Website: www.scbebt.org.

Email: aylor@scbebt.org The South Carolina Bankers Employee Benefit Trust was established in 1981. It was formed as a service for bankers and is governed by a board of nine bankers.

The Trust offers group insurance plans that can include health, dental, life, LTD, STD, voluntary life insurance and vision insurance. The Trust’s medical plan is administered by BlueCross BlueShield of SC. The dental plan is offered through Delta Dental. Voya Financial is the carrier for the group term life, long-term disability, short-term disability and voluntary life plans. The S.C Bankers Employee Benefit Trust’s carrier for the vision plan is VSP. We partner with Benefi irst for an online portal to easily enroll all Trust plans. These plans provide excellent coverage at reasonable premiums.

Session panies. The Dodd-Frank Act requires all states to pass a licensing and regula on system for AMCs within three years of issuance of the Federal Reserve’s final rule, which was adopted last year. SCBA worked on a previous AMC bill and will con nue to review for impact on banks.

Probate Law – Powers of A orney Introduced last year and a product of the South Carolina Bar’s Probate and Trust sec on, S778 would adopt substan al por ons of the Uniform Powers of A orney Act. The South Carolina Bankers Associa on worked with Bar in dra ing this bill and favorably resolved an issue SCBA raised to allow banks to request opinions of counsel when a power of a orney is presented. This is a provision that is in the Uniform Act but was ini ally not included by the Bar. S778 is expected to be taken up in 2016.

Probate Law – Digital Assets Another uniform act, S908, proposes adop on of the Revised Uniform Fiduciary Access to Digital Assets Act. Essen ally, the act clarifies that the tradi onal power of a fiduciary to

manage tangible property also extends to management of a person’s digital assets, such as computer files, web domains, and virtual currency. On the other hand, the Act restricts a fiduciary’s access to electronic communica ons such as email, text messages, and social media accounts unless the original user consented in a will, trust, power of a orney, or other record. The Revised Uniform Act balances many compe ng interests and is the result of a compromise between legal authori es, banking interests, Internet companies and privacy advocates.

The General Assembly will adjourn this session in June but will hopefully resolve issues such as transporta on infrastructure, flood relief and educa on funding. SCBA encourages all bankers to be aware of the legisla ve issues that affect banking and to develop posi ve rela onships with their local legislators. All bills and acts can be found at www.scstatehouse.gov.

(Neil Rashley is senior vice president and counsel for the South Carolina Bankers Associa on.)

31

Good Samaritans Anderson Brothers Bank Anderson Brothers Bank’s second blood drive of 2015, at the bank’s conference center in Mullins, proved a success. The bank’s goal was to collect 20 units of blood and it was able to exceed that by 25 percent.

CoastalStates Bank In coordina on with Memory Matters, staff members of CoastalStates Bank have completed a comprehensive employee sensi vity training, part of its involvement with the Purple Angel Project, which seeks to raise awareness and educa on of all types of demen as. In an effort to create a demen a-friendly community, the training educated bank staff to have the confidence to be er serve customers with demen a and to understand the role of the caregiver.

Mike Friez, Director of the Greenwood Gene c Center’s Diagnos c Laboratories. “Their support has helped us ensure that our pa ents have access to the latest technology available.”

Next-genera on sequencing technology provides families with faster and more accurate diagnoses for a variety of gene c condi ons including au sm, intellectual disability, and seizure disorders.

“This technology has allowed us to provide answers for pa ents who may have been on a diagnos c odyssey for years, and in many cases, can guide treatment decisions,” said Friez.

“First Ci zens is pleased to make this grant to the Greenwood Gene c Center Founda on,” said Jerry Stevens, market execu ve and senior vice president for the bank. “The addi onal resources we have provided will con nue to support families across the state by advancing diagnos c testing and research discoveries, and we look forward to con nuing to pledge our support for the Center’s mission.”

First Ci zens Bank has joined with nonprofit Teen Cancer America and From le : Victoria Hann, director of development, Greenwood Gene c Center; Ma Howard and Jerry Stevens, First Ci zens The Who’s Roger Bank; and Dr. Mike Friez, director, Greenwood Gene c Center’s Daltrey to help open the door to Diagnos c Laboratories. be er cancer care for young adults.

First Ci zens Bank First Ci zens Bank recently announced The First Ci zens Founda on recently a major sponsorship of Teen Cancer presented the Greenwood Gene c America designed to increase awareCenter with an $8,000 contribu on, ness and support for targeted care and comple ng a five-year, $40,000 comspecialized treatment facili es for teens mitment it made in 2011. The dona on and young adults with cancer. has been used to fund next-genera on First Ci zens Bank is the official Southsequencing in the center’s diagnos c eastern U.S. corporate sponsor of Teen and research laboratories.

Cancer America.

“We are very apprecia ve of the longAs part of this effort, Roger Daltrey, standing rela onship and support that we have had with First Ci zens,” said Dr. lead singer of legendary rock and roll 32

group The Who, has recorded a new version of the 1980 Pete Townshend hit, “Let My Love Open The Door,” exclusively for First Ci zens Bank and Teen Cancer America.

Teen Cancer America works with hospitals and cancer centers to create treatment programs and recovery spaces for teens with cancer.

HomeTrust Bank HomeTrust Bank helped sponsor The HOPE Relay in Greenville late last year.

The event supports the services of Project HOPE Founda on, which serves individuals of all ages across the au sm spectrum, from those most severely impacted to those with Asperger’s Syndrome.

HomeTrust was not only an exchange sta on sponsor for the event, but its employees served as volunteers.

TD Bank, N.A. The TD Charitable Founda on, the charitable giving arm of TD Bank, recently donated a total of $750,000 in grants to food pantries along the Eastern US, including two loca ons in South Carolina.

The Lowcountry Food Bank Inc. in Charleston and the South Carolina Food Bank Associa on in Columbia will each receive grants from the TD Charitable Founda on, it was announced last month.

The grants went to help pantries prepare for the holiday season and aid in assis ng thousands of people experiencing food insecuri es.

The TD Charitable Founda on recently included South Carolina-based Homes of Hope Inc. as one of 13 organiza ons that were winners in $2.5 million in grants to support affordable housing ini a ves through the founda on’s 10th annual “Housing for Everyone” grant compe on.

The compe on invited non-profits from Maine to Florida to submit proposals outlining their plans and ini a ves.

The TD Charitable Founda on is the charitable giving arm of TD Bank.

South Carolina Bankers Association Education Calendar For more information, contact Anne Gillespie by phone at 803.779.0850, or by email at agillespie@scbankers.org.

Banking Careers 101 Date: Feb. 10, 2016 Loca on: Seawell’s Columbia, S.C. Safety and Soundness Workshop Date: Feb. 11, 2016 Loca on: Inn @ USC Wyndam Gardens Columbia, S.C. Directors and Managers Workshop Date: Feb. 23, 2016 Loca on: Courtyard Marrio Downtown @ USC Columbia, S.C.

March 2016 Spring Compliance Conference Date: March 22, 2016 Loca on: Courtyard Marrio Downtown @ USC Columbia, S.C. SCBA Washington Trip Date: March 14-16, 2016 Loca on: Washington, D.C. Young Bankers Conference Date: March 18-20, 2016 Loca on: The Omni Grove Park Inn Asheville, N.C.

May 2016 Trust Conference Date: May 3, 2016 Loca on: Columbia Conference Center Columbia, S.C. Asset Liability Conference Date: May 10, 2016 Loca on: Inn @ USC Wyndham Gardens Columbia, S.C.

June 2016 Annual Conven on & Trade Show Date: June 12-15, 2016 Loca on: The Sanctuary Kiawah Island, S.C.

July 2016 South Carolina Bankers School Date: July 10-15, 2016 Loca on: Lander University Greenwood, S.C.

September 2016 Consumer Lending School Date: September 2016 Loca on: Columbia, S.C.

Bank Security Conference

April 2016

Date: September 2016 Loca on: Columbia, S.C.

Credit Conference Date: April 5, 2016 Loca on: Inn @ USC Wyndham Gardens Columbia, S.C.

October 2016 Young Bankers Scholarship Golf Tournament

Community Bankers Spring Peer Group Date: April 20, 2016 Loca on: Charleston, S.C. Commercial Lending School Date: April 26-28, 2016 Loca on: Courtyard Marrio Downtown @ USC Columbia, S.C.

Date: October 3, 2016 Loca on: Columbia Country Club Blythewood, S.C.

Women in Banking Symposium Date: September 28-29, 2016 Loca on: Omni Charlo e Hotel Charlo e, N.C.

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

SCBA WASHINGTON TRIP

MARCH 14-16, 2016 The South Carolina Bankers AssociaƟon’s annual Washington, D.C., trip is your chance to travel to our naƟon’s capital, talk with members of our state delegaƟon, meet with regulators and make your voice heard. Last year, some 30 bankers took part in the excursion and enjoyed extended sessions with several South Carolina congressmen.

For more InformaƟon on the 2016 SCBA Washington Trip, please contact Anne Gillespie at the South Carolina Bankers AssociaƟon at 803.779.0850, or by email at agillespie@scbankers.org.