Palmetto Banker Spring 2015 by SCBA

PALMETTO BANKER

SPRING ISSUE 2015-2

CLASS OF ‘33: Three Third-Generation Family-Owned Banks WOMEN IN BANKING: PAST & PRESENT REMEMBERING STERLING LAFFITTE REP. WESTON NEWTON PROFILED

SOUTH CAROLINA BANKERS ASSOCIATION

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 H. Blake Gibbons, Jr. The Ci zens Bank, Olanta Chairman-Elect David M. Lominack TD Bank, N.A., Greenville First Vice Chairman Robert R. Hill, Jr. South State Bank, Columbia Treasurer Cur s A. Tyner, Sr. Heritage Community Bank, Hartsville

South Carolina Bankers Trek to Na on’s Capital, Page 9

Banking Holds Special Place for Rep. Weston Newton, Page 11

President’s Message

3 Banks Started in ‘33 & Run by 3rd Genera on

SCBA Staﬀ President and CEO Fred L. Green, III

Boll Weevils & Bank Taxes: S.C. Banking in 1915

Execu ve Vice President, CFO/BankPAC Treasurer Donna S. Taylor

Dedicated Community Bank Joins SCBA

Execu ve News

Women in Banking Event Sees Strong Showing

Mayde Andrews: Female Banking Pioneer

Bank News

Personal Transac ons

Remembering SC Banker Sterling Laﬃ e

Young Bankers Meet at Wild Dunes

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.

New Associate Members

Kea ng: New Banks Crucial to Economy

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.

Cover photo: Images of headquarters of Anderson Brothers Bank, Mullins; Arthur State Bank, Union, and Countybank, Greenwood. Photos by Zach Sykes/Octagon SoluƟons; design by Caroline Sheorn, South Carolina Bankers AssociaƟon.

Immediate Past Chairman Art Seaver, Jr. Southern First Bank, Greenville

Execu ve Vice President, Employee Benefit Trust/ South Carolina Bankers School Teresa D. Taylor Senior Vice President, Conven ons/Conferences E. Anne Gillespie Senior Vice President, Legisla ve & Regulatory A. O’Neil “Neil” Rashley, Jr. Vice President, SCBA Services, Inc. Carolyn E. Laﬃ e 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

Belmond Charleston Place to Host 2015 Conven on 7

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President’s Message

Washington Trip Stresses Need to Make Voice Heard

he SCBA’s annual trip to Washington, D.C., proved a success once again, with some 30 bankers journeying north to meet with our state Congressional delega on to get a feel for the poli cal environment in the na on’s capital. The con ngent was of ideal size, allowing bankers and elected oﬃcials the opportunity to talk freely. It also showed the la er that South Carolina financial leaders understand the value of establishing and maintaining relaonships with their legislators. The group not only featured bankers from an array of ins tu ons, ranging from the na on’s largest banks to some of the state’s smaller ins tuGreen ons, but there were five members of the SCBA’s Young Bankers Division who took part, as well. We were very engaged with each member of Congress we met with and enjoyed a high success rate in ge ng our delega on to discuss issues of importance to the banking industry. The SCBA lobby also learned more about Amplify, an important tool that the American Bankers Associa on first unveiled in late 2013 and has con nued to bolster. Amplify, available at www.amplifybankers.com, enables bankers to take charge of their own des ny, no small ma er in an era of increasing regulaon, technology and compe on from non-bank opera ons. It allows bankers to support one another by lending our voices, exper se and grassroots strength in eﬀorts to create a be er policy environment in Washington. This is crucial as influencing public policy represents the best hope for shepherding our industry in the right

direc on. But Amplify is much more than just a tool to touch lawmakers in Washington, D.C. It’s a means by which you can send posi ve messages about banking to your customers, the media and people of influence in your communi es, as well. Simply put, Amplify is an effec ve way to redirect the conversa on about the banking industry at the grassroots level. On the Amplify website you’ll find sample speeches and customizable presenta ons on topics ranging from data security to careers in banking. There’s also an interac ve Twi er map to assist you in sending tweets to your representa ves, interview ps and guidelines for using social media. And Amplify is accessible to any bank employee or director, not just those whose ins tu ons are part of the ABA. The ABA built Amplify around four key messages that its research showed resonated with consumers: • Banks are the safest place to keep money; • Banks make people’s lives more convenient; • Banks have a stake in the economic growth, health and vitality of communi es; and • Local bankers are there to help with all of life’s important events. These facts represent the reali es that consumers value most about banks, so it makes smart sense to highlight them when you have the opportunity – in talks with customers, community groups, reporters, elected officials and others who might sway public policy. The resources available through Amplify offer a means to counteract the drumbeat of nega ve news that some, par cularly those in Big Media, have unleashed against the industry in recent years. It gives bankers the opportunity to highlight and underscore the many posi ve things banks and bankers do in

our communi es. However, it’s up to each of you to spread the word about the benefits your ins tu ons bring each and every day. Together we can change the conversaon about banking. It starts with you answering simple ques ons like: How many people does your bank employ? How many small business loans do you make? How many farmers depend on you for their financing needs? Those numbers and sta s cs tell a compelling story about your bank’s

‘Amplify enables bankers to take charge of their own des ny, no small ma er in an era of increasing regula on, technology and compe on from non-bank opera ons.’ importance to your community and its posi ve impact on your customers’ lives. Throughout South Carolina, the importance of those numbers is magnified when you add up what banks and thri s mean in all the towns and ci es they serve. Banks, both big and small, are the backbone of our economy, and the fact is you are already doing the good work necessary to assist consumers, grow businesses and strengthen your communi es. There’s nothing wrong with making sure your stories and successes, and those of the financial services industry, are known. Amplify, and all the tools it oﬀers, is a way to make that possible. (Fred L. Green III is president and CEO of the South Carolina Bankers Associaon.) 3

Cover Story

Inside 3 Third-Generation Family Banks Begun in ‘33 as they pass from genera on to genera on. While about 40 percent of U.S. family-owned businesses become any and mul faceted second-genera on opera ons, far are the obstacles South fewer – approximately 13 percent Carolina’s community – are passed down successfully to banks have had to overcome dura third genera on, according to ing the past 80-plus years. family business experts. In addi on to the recent Great Factor in that South Carolina has Recession, there were downturns seen its state-based banks and in the early ‘80s, ‘90s and at the thri s dwindle from more than start of the 21st century. Before 120 a li le more than two decades that, skyrocke ng oil prices and ago to fewer than 70 today and it heavy government spending becomes evident that the success between 1973 and 1975 led to soof the three is even more notecalled stagfla on, which crippled worthy. the economy. Anderson Brothers Bank, Arthur In addi on, economists cites six State Bank and Countybank have different recessionary periods besurvived because they’ve been tween the end of World War II and able to evolve, adopt new strate1970. And, of course, the Great gies and adapt to fresh ways of Depression involved the lengthiest thinking that other small-market and most extreme downturn in banks were some mes reluctant our na on’s history. to embrace, according to Fred On top of the financial slumps, Green, president and chief execurecent years have seen escala ng ve officer of the South Carolina regulatory burdens as Congress Bankers Associa on. passed new laws that have led to All three ins tu ons have had increased compliance costs and their ups and downs, par cularly diminished bank revenue, parwith the recent economic downcularly during the recent period turn, but each learned from their of low interest rates and reduced hardships and said they’ve moved profitability. David and Neal Anderson, president and execu ve vice forward, wiser for the experience. Add in interstate banking, costs president, respec vely, of Anderson Brothers Bank, And while there are shared related to rapid-fire advances in in the lobby of the bank’s headquarters in Mullins. In technology and compe on from the background is a pain ng of one of the ins tu on’s themes among the trio, each has its own unique story to tell. credit unions and non-tradi onal founders, their grandfather Ernest Anderson. en es such as PayPal, Starbucks Banking in the Blood and Google, and it’s evident that runthird-genera on opera ons. Financial service careers were never ning a small family-operated bank is “Not many businesses make it to the in ques on for brothers David and Neal drama cally different than it was in the third genera on, so the bank is some1930s or even 1980s. thing we’re proud of,” said David Ander- Anderson, CEO and execu ve vice president, respec vely, of Anderson Brothers Yet, several Palme o State banks have son, chief execu ve officer of Anderson Bank. withstood these myriad challenges and Brothers Bank. “Our daddy’s goal was “We grew up in banking, so it was just con nue chugging along many decades to make sure he passed the bank on to a natural progression,” said Neal, whose a er their founding. us, and we’re doing the best we can to grandfather and great-uncle founded Among them, three ins tu ons – keep it going.” the ins tu on in 1933. “In high school, Anderson Brothers Bank of Mullins, The success of the Andersons, the Union-based Arthur State Bank and Oxners, who run Arthur State Bank, and we’d get out of school at the end of the Greenwood’s Countybank – share an the Dunlaps, who are in charge at Coun- year and go to work in the bank. In college, we’d get out of school at the end unusual bond: All three were started tybank, is even more remarkable given of the year and go to work in the bank. I in 1933; all are family run; and all are the high failure rate of U.S. businesses By Kevin Dietrich Palme o Banker Editor

for the Bank of Mullins. don’t know what I would have done if I of FDR and Blackwood le Mullins and Anderson Brothers Bank s ll retains hadn’t gone into banking.” many other South Carolina towns withthat office today, which features indiBut both Andersons recognize that out banks. Mullins was in the heart of vidual pain ngs of the bank’s founders, things are very different from when a booming tobacco region, but area tothey began their careers in the 1970s. bacco warehousemen needed financing. David and Neal Anderson’s grandfather and great-uncle, in its lobby. “Back in my father’s and grandfather’s Not only was there no bank in town, Grandfather Ernest Anderson con nme and even when I started, we didn’t but no big-city bank was interested in ued at the bank un l the mid-1960s and even have account numbers. And if a financing a small-town tobacco market. died in 1980. His son, Bert Neal Anderteller couldn’t read a customer’s name, Warehousemen had already appealed son, served as president through the they were able to recognize the handto large ins tu ons in Columbia, Florwri ng,” David Anderson said. “Also, we ence, Charlo e and Wilmington without mid-1980s and chairman un l he died in 2012. Today, there are three fourthclosed the bank from 1 p.m. to 3 p.m. success. genera on Andersons working within every day so the tellers could balance Mullins faced the very real danger of the bank, so it appears family con nuity the books.” not only losing its tobacco market, but is assured. When the pair started, Anderson having its tobacco operators lose farms That doesn’t mean there haven’t been Brothers Bank had about $50 million in and homes as well if a local bank wasn’t ups and downs along the road. assets. Today it’s a $500 million ins tuestablished. Among crucial points during the past on with 20 loca ons, ranging from The previous year, brothers Ernest and few years: Florence to North Myrtle Beach. Bishop Bonar Anderson had started • In 2001, Anderson Brothers Bank Anderson Brothers Bank, like Arthur Anderson Brothers Cash Depository, a merged with sister ins tu on State Bank and Countybank, got its start simplified financial ins tu on that took Anderson State Bank, started in as a result of the Great Depression. deposits and had to keep funds received 1948 in Hemingway, under a single President Franklin Roosevelt declared on hand in cash. charter; a na onal “Bank Holiday” on March 6, The following year, with no banks le • In 2007, just as the bank was startin town as a result of government clo1933, shu ng down the na onal banking to experience credit problems sures, the depository was converted to ing system. In South Carolina, Gov. Ibra Anderson Brothers Bank. Later that year connected to the economic downC. Blackwood declared a state banking turn, it revamped its organiza onal the Anderson Brothers took over a strikmoratorium on the same day, closing structure; and state ins tu• In ons across 2014 the bank the Palme o had its best State. year ever, During this marking a sucsuspension cessful transibanks had to on through submit finanthe Great cial statements Recession. regarding their “Today, we’re condi on and a different it was le to bank with the governa different ment whether mindset,” Dathey could vid Anderson open again. said. “Up to An army of 2007 we operexaminers was ated under sent across a small-bank the na on to Countybank President and CEO R. Thornwell Dunlap III, in his office in Greenwood. model with litcheck the soltle overall organiza onal structure. ing Renaissance Revival-style structure vency of ins tu ons, and they cer fied At that point, the bank hired a consultthe sound ones and closed the unsound on North Main Street which features ant and it was told a drama c change rus cated red brick laid in Flemish ones. bond. The building, constructed around was needed for efficiency’s sake. In South Carolina, more than 30 banks 1910, had once been the headquarters alone were closed in 1933. The ac ons See Genera ons, Page 12 5

SCBA Annual Conven on

Boll Weevils, Bank Taxes Focus of 1915 Chairman’s Talk The following is taken from the address of C.J. Shannon Jr., 1914-15 SCBA chairman, during his address to members at the 1915 Annual Conven on, held June 15-16, 1915, at Isle of Palms. Shannon (1863-1948) served many years as president of Camden-based First Na onal Bank.

arrying out your resolu on, I promptly proceeded to effect an organiza on of all available forces to assist the agricultural interests in preparing for the coming of the boll weevil. A joint mee ng of the large interests in the state was held in Columbia the la er part of July. At this mee ng were representa ves of the co on seed crushers, co on manufacturers, fer lizer manufacturers, merchants, bankers and officials of Clemson College, all joining enthusias cally and earnestly in the movement. A permanent organizaon was effected I was made chairman, and a comprehensive plan of campaign outlined. Almost immediately therea er the conflagra on in Europe made us realize that all of our energies must be devoted to saving the co on crop just made, and other work deferred. It is not abandoned, however; the understanding is, that that body should assemble again at the call of the Chairman. Condi-

ons are about normal and I think that we are jus fied in making this call in the near future. If this meets the approval of our incoming President, I shall make the call. Realizing that upon the prosperity of our agricultural interests in the State depends largely the prosperity of many other business interests, I would recommend that you give our Agricultural Commi ee as liberal support as the Shannon Associa on’s treasury will permit. This is a very ac ve and earnest commi ee and its work is opening out before it. I would also recommend that the Execu ve Council realign the groups to conform to the Congressional districts. Should this be done, it would reduce the number of groups from eight to seven. Upon these groups depends the local work of the Associa on, and I believe they could do be er work if the members of the diﬀerent commi ees, who are largely selected by Congressional districts, are in closer touch with the group chairman.

Agriculture was the backbone of early 20th century South Carolina’s economy, and banks’ fiscal well-being o en rose or fell with that of farmers. 6

The glaring discrimina on shown against banks in tax assessments is a very serious menace to our order, and I would suggest that strong eﬀort be made to correct it. I appointed a commi ee to look into this ma er and their chairman will make his report to you later. I am glad to report that all the member banks of our Associa on are in good condi on. It is a ma er of pleasurable pride to me, and I feel sure to all of you, to know the steady way the banks of South Carolina stood the strain of the last few months. The way that those at the helm of these ins tu ons managed to provide the funds for picking the cotton crop and holding a very large part of it oﬀ a demoralized market compelled admira on, and yet they were shortening sail all the me and ge ng themselves in such shape that when the co on pool was at last launched it was no longer needed. However, the splendid ac on of our President in throwing the credit of the treasury behind the banks, thus announcing to the world that this great na on did not propose to have its financial system demoralized enabled the country to meet the emergency. A currency associa on was formed in this, as in other States, and its commi ee ably performed their du es. At the first shock of the disturbance I asked our Execu ve Council to meet to talk over the situa on and devise plans for meeting any emergency. We found, however, that nothing was needed, the banks individually being quite equal to any demands upon them. It would not be proper to pass this ma er by without saying that except in one or two instances the eastern correspondents of our banks responded loyally to every legi mate call for accommoda on, and, though their own great resources must have been seriously strained at mes, they came across as if it were a pleasure to do so. This might have been just good manners, but it was a pleasant way to do it.

SCBA Annual Conven on

Charleston’s Rainbow Row is just one of many things for which the Holy City is noted.

Belmond Charleston Place to Host 2015 Annual Convention

he 2015 SCBA Annual Conven on will take place June 7-10, 2015, at the Belmond Charleston Place hotel. The hotel is located in the heart of downtown Charleston and is within walking distance of all the major a racons. Speakers at the 115th Annual Conven on include University of South Carolina Athle c Director Ray Tanner, James Ballen ne, Gibbons execu ve vice president of Congressional Rela ons and Poli cal Aﬀairs for the American Bankers Associa on, and Joseph T. Keating, chief investment oﬃcer, execu ve vice president and head of Wealth Management for CenterState Bank. Former New York Yankee All-Star and ex-USC baseball coach Bobby Richardson will be the prayer breakfast speaker

on Tuesday, June 9. There is no cost to a end the Prayer Breakfast, but the Bankers Associaon asks that you register beforehand because space is limited. BankPAC will again host a silent aucon, to be held Tuesday during the recep on and banquet. The 2015 SCBA golf tournament will be held at pres gious Yeamans Hall and a picnic cruise around Charleston Harbor will take place aboard the Spirit of Carolina, with both events scheduled for June 8, according to SCBA Chairman Blake Gibbons. In addi on to the business sessions, there will be a dinner dance and reunion for alumni of banking schools. Belmond Charleston Place is a 436room hotel that features a pool located on the top of the fourth floor and a state-of-the-art gym. The hotel recently embarked on the second phase of a three-part $30 million renova on of its guest rooms. Charleston is considered among the

most beau ful, historic and livable ci es on the East Coast. Standing on a peninsula surrounded by dal rivers and windswept harbor, downtown Charleston’s array of antebellum houses, colonial churches, wrought iron gates, cobblestone streets and spacious gardens have earned it recogni on as one of America’s most historic and spectacular ci es. Charleston’s Upper King Street district is full of energy during the day where home design and bou que shopping abound. The vibrant nightlife scene boasts an eclec c array of culinary innovators with some of the most frequented restaurants in the Southeast and possibly the na on, including MacIntosh, The Ordinary, Basil, Monza, Hall’s Chop House, Fish and more. For your convenience, nightly hotel rates will be extended to registrants three days before and a er the convenon should you choose to linger and further enjoy Charleston’s hospitality. 7

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SCBA Washington Trip

More than Two Dozen Attend SCBA Washington Trip The South Carolina Bankers Associaon’s Washington Trip proved a success once again as some 30 bankers traveled to the na on’s capital to talk with the state’s Congressional delega on and meet with regulators, March 23-25. “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.”

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. James Clyburn, Jeﬀ Duncan, Trey Gowdy and Mark Sanford. A special highlight was a tour of the Capitol building given by Rep. Rice, which lasted approximately 90 minutes and included a visit of both the U.S. House and Senate chambers. “One of the benefits of a gathering like this is the interac on and camaraderie among our bankers,” Green said. “I see a special bond among our bankers that isn’t evident in the other state associaons.”

Top le , clockwise: Rep. Tom Rice gives a tour of the Capitol building; Sen. Tim Sco , standing, talks to South Carolina bankers; Rep. Mick Mulvaney, le , speaks with Blake Gibbons, The Ci zens Bank and SCBA chairman, Glenn Buddin, Blue Ridge Bank, Chad Westendorf, Palme o State Bank, SCBA President and CEO Fred Green, and Jennifer Jones, Ci zens Building and Loan; the en re South Carolina Bankers Associa on delega on with Rep. Tom Rice, middle with red e in front of John Trumball’s 1817 work “General George Washington Resigning his Commission”; SCBA President and CEO Fred Green, Rose Washofsy. Ellio Davis Decosimo, B.T. Atkinson, Nelson Mullins, and Blake Gibbons, president, The Ci zens Bank and SCBA chairman; Jus n Strickland, Southern First Bank, Rep. Joe Wilson, Blake Gibbons, The Ci zens Bank and SCBA chairman, David Lominack, TD Bank, NA. 9

SCBA News

Dedicated Community Bank Joins Bankers Association Dedicated Community Bank became the latest Palme o State bank to join the South Carolina Bankers Associa on when it came aboard in March. “We’re excited to be a member of the South Carolina Bankers Associa on and look forward to taking advantage of the educa onal seminars and other benefits that the organiza on oﬀers,” said Henry Funderburk, president and chief execu ve oﬃcer of Dedicated Community Bank. The $49 million, Darlington-based ins tu on was begun nearly 30 years ago, following the acquisi on of venerable South Carolina Na onal Bank by Wachovia. Several individuals who lived in the Darlington regions and sat on SCN’s Darlington-area advisory board determined

that there was a need for a locally based commercial bank and selected long me banker Thomas P. Rhodes to head the effort. Rhodes, with W.B. McCown III serving as president and chief execu ve officer, opened what was then called Darlington County Bank in March 1986. Today, Dedicated is one of the few banks in South Carolina founded in the 1980s that is s ll independent and s ll in opera on. The ins tu on began opera ons at 202 Cashua St., in the same building that previously housed Pee Dee Electric Coopera ve’s corporate offices and Darlington County emergency management services. By early 1989, the Dedicated Community Bank was opera ng in a revamped state-of-the-art banking facility at the same address. With the growth of the late 1990s, a

new opera ons building was constructed adjacent to the main oﬃce. In April 2009, the bank changed its legal name to Dedicated Community Bank. The new name and slogan were chosen as a way of resta ng the bank’s commitment both to its customers and the community it serves. The addi on of Dedicated Community Bank marks the third ins tu on the South Carolina Bankers Associa on has picked up in the past year; Dedicated Community Bank joined Spartanburgbased First South Bank and Camdenbased First Palme o Bank, both of which came aboard in the past year. The South Carolina Bankers Associaon, begun in 1900, has 84 members, which among them control more than 99 percent of all deposits in the state, represen ng an all- me high for the SCBA in terms of percentage of state deposits.

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Meet Your Legislator

Banking Retains Special Place for Beaufort’s Newton Kevin Dietrich Palme o Banker Editor

t took li le me for Rep. Weston Newton to earn the respect of his colleagues in the S.C. House of Representa ves. The second-term legislator was recently appointed to chair the newly created House Legisla ve Oversight Committee, despite being a rela ve newcomer. Newton, a Republican who represents Beaufort and Jasper coun es, was elected to the General Assembly in 2012 and won re-elec on last year. Newton understands that good government and public trust go hand in hand. “I believe it was (U.S. SuNewton preme Court Jusce) Louis Brandeis who said ‘Sunlight is said to be the best of disinfectants,’” said Newton, a graduate of Washington and Lee University and the University of South Carolina School of Law. “I’m a big believer in the idea that transparency is tantamount to good government. It is essen al to holding people accountable. “One of the challenges is that overall there is not a heck of a lot of trust in elected officials,” he added. Newton said that while there are many good people involved in government at all levels, today’s technology – parcularly social media and the ability to glean news almost the moment it occurs – can inflate the impression given off by a handful of bad poli cians. Among the solu ons, he said, is to allow the public to see more of what goes on inside the Statehouse. “We need to do everything we can to help the public to see what we’re doing and help them understand everything that’s going on,” he said. “If we can restore public trust and confidence in government, doing the difficult (legislave) tasks will become easier.”

significant number of foreclosures. Newton said another pressing issue “It’s good public policy,” he said. “With that needs to be addressed this session the historic levels of foreclosures that is infrastructure. were taking place, the courts were not “One of the most challenging issues only ed up, but the proper es were facing South Carolina today is the not in produc ve status.” quality of our infrastructure,” he said. Newton is also a co-sponsor for H3682, “Something absolutely needs to be an SCBA priority bill that allows banks done and infrastructure does not need and other businesses to take legal acto become a poli cal football. In recent on against patent trolls – en es that years we have failed in that regard.” use ques onable means to assert that a Newton may not have a lot of me under his belt in the legislature, but he’s bank has violated a patent and owes a no public service novice. He was elected significant license fee. If the bank doesn’t pay the fee then it to Beaufort County Council in 1999 and is forced to incur expensive li ga on, became chairman of that body in 2003, even if the patent is not enforceable. a posi on he held for 10 years. Many states have passed bills allowing An a orney in Beaufort, Newton is banks to stop this abuse and Newton married to Rose Buyck Newton, the believes strongly that South Carolina daughter of William O. “Bill” Buyck and should do the same. the late Frances Reedy Buyck. Rose Newton said that his experience both Buyck Newton is vice chairman of the with the Bank of Clarendon and in Bank of Clarendon, Bill Buyck is chairBlu on has underscored the signifiman of the ins tu on and Weston cance of the banking industry and why Newton’s brother-in-law, Will Buyck, it’s important that the industry remain serves as chief execu ve oﬃcer of the $225 million bank. Weston Newton serves on the board of the Manning-based ins tu on, which was begun in 1932 by his wife’s grandfather. Newton’s family’s banking interest has given him a valuable insight into the industry. Last session he cosponsored a bill to speed mortgage foreWeston Newton is chairman of the House Legisla ve closures on abandoned Oversight Commi ee. proper es, among the healthy and vibrant. most impac ul pieces of legisla on affec ng banking since the mid-1980s. “I’ve seen up close just how important The legisla on created a process to community banks and all banks are to iden fy abandoned proper es and get South Carolina,” he said. them on the market more quickly while “Not only are they essen al for the insuring property rights were protected. economy but bank employees are inNewton said that his job as an a orvolved in every aspect of the communiney gave him prac cal insight into what es they live in,” he added. “I know that was happening in the housing market, especially in the smaller communi es in par cularly in the Beaufort area, where South Carolina that involvement is very the Great Recession had resulted in a significant.” 11

Cover Story Genera ons Anderson Brothers Bank proceeded to hire a chief financial oﬃcer, chief credit administrator, branch administrator and chief technology oﬃcer, and it added an underwri ng department and indirect lending department. The revamped model helped the bank survive through the ensuing recession. Having learned the importance of being structured properly, both David and Neal Anderson are looking forward to a bright future for their ins tu on.

Arthur approached his father J.D. Arthur, who had been a bank cashier prior to re rement. Harry Arthur then loaned funds to his father and two of his brothers, and put in addi onal cash himself to form the Arthur Cash Depository, which opened in April 1933. The following year, Harry Arthur established a cash depository in Woodruﬀ, 30 miles to the west. The Arthur Cash Depository was converted to a bank in 1935, the Woodruﬀ Depository converted in 1946, and a third cash depository, in Chesnee, was purchased by Arthur and converted to a bank in the mid-1950s. The beginnings of Arthur State Bank were anything but robust, according to Carlisle Oxner. “The original ledger shows that on the first day of business the three brothers and their father each deposited their $625, which marked the beginning of the ins tu on,” he said. Harry Arthur remained ac ve in the bank for decades. When Carlisle Oxner gradu-

ated from the University of South Carolina in the 1980s, his grandfather dispatched him to what was then a separate subsidiary, Woodruff State Bank. “I remember him telling me, ‘I’m going to pay you $8,000 a year and that’s a hell of a lot of money!’” Carlisle Oxner recalled. “He told me, ‘You do whatever they tell you to do, and that includes sweeping the floor.’ I told him, ‘Yes, sir!’” In the bank’s early decades, it had the irregular hours common to ins tu ons in small towns. It closed between 1 p.m. and 3 p.m. each day, and didn’t open at all on Filling Big Shoes in a Small Town Wednesdays. J. Carlisle Oxner III admits that taking Even by the me Carlisle Oxner had over the family business some mes joined the bank, “it wasn’t unusual for us leaves him feeling as though he’s trying to make $100 loans all day long,” he said. to determine how many angels can But despite his age, Harry Arthur wasn’t dance on the head of a pin. afraid to change with the mes. Arthur State Bank was founded by his “In 1969 Gen. Arthur called me into his grandfather, Harry M. Arthur, one of office and made me a bank officer, and Union County’s most prominent ci that was at a me when no one was doing zens. Harry Arthur not only helped start that,” said Ola Jean Kelly, a former Arthur Union County’s longest-lived financial State Bank employee hired out of high school who would spend 40-plus years ins tu on, he rose to the rank of major with the ins tu on. “I became an asgeneral in the U.S. Army, and spent sistant cashier, then oversaw all the two years as the ranking American branches, moved up to auditor and officer with the Chinese Army durended up as the corporate comptroling World War II. ler. He really was ahead of his me.” When Gen. Arthur, whose grandIn the late 1970s, as Harry Arthur father Benjamin Franklin Arthur got older, the bank promoted longserved as the secretary to the South me Arthur State Bank execu ve Carolina Secession Conven on in W.C. Benne to be chief execu ve 1860, died in 1988, his passing merofficer. Carlisle Oxner Jr. was named ited no ce in the New York Times. president and CEO in 1988 and CarYet, Carlisle Oxner hasn’t done too lisle Oxner III took over three years badly himself. Arthur State Bank later. The former remains chairman today has 20 offices in eight counof the board. es and more than $500 million in One thing that Carlisle Oxner said assets, with much of that growth his grandfather, who served as chairtaking place since Oxner took over man of the South Carolina Bankers as chief execu ve officer in 1991. Associa on during 1949-50, ins lled Arthur State Bank came about as in him was the importance of cusa direct result of the 1933 Bank tomer service. “He couldn’t stand seeing a customHoliday. Harry Arthur owned a er wai ng at a teller line,” he said. chain of department stores, a chain “He’d go up and open up a teller line of hosiery mills and several herd of himself if he had to.” ca le. However, the Bank Holiday Carlisle Oxner has tried to carry on ul mately le Union without a that commitment. financial ins tu on. The closest J. Carlisle Oxner III, president and CEO of Arthur State “My customers have my cell phone ins tu on s ll opera ng was the Bank of Jonesville, some 11 miles Bank, in his office in Union. Above Oxner is a picture of number so they can call me direct his grandfather and bank founder, Harry M. Arthur. whenever they need to,” he said. away.

Staying the Course Countybank is headed by R. Thornwell Dunlap III, a third-genera on execu ve. But his isn’t like other opera ons that have passed from genera on to generaon. First, it’s a closely held corpora on in which the Dunlap family owns a large poron of the outstanding shares but not a controlling interest. Second, Dunlap’s maternal grandfather G. Bonner Harvley and two other men put in an equal amount of money following the 1933 Bank Holiday to get Countybank up and running. However, Dunlap’s father, R. Thornwell Dunlap Jr., didn’t come aboard un l he was hired by Harvley in 1958, a er the senior Dunlap was working for Wachovia in North Carolina. Finally, the younger Dunlap’s succession wasn’t assured, either. A er college he spent the 1980s working for Wachovia in Charlo e. As his father, who had taken over as president in 1970, began to consider re rement toward the end of the decade, he asked his son if he was interested in coming to work for Countybank. “We talked it out on the front end and approached it from the standpoint that if it was a good deal for the bank and if it was a good deal for me personally and career-wise, we’d go forward,” Thornwell Dunlap III said. Dunlap ended up joining the bank in 1988 and took over as president and CEO in 1994. Harvley got his start in banking during World War I, when many of Greenwood’s men were oﬀ figh ng in Europe. He was only 16, but he got a job in a bank, sweeping floors, ven ng windows and handling other entry-level tasks. The Bank Holiday claimed a number of Greenwood financial ins tu ons, so a long me area banker named John B. Sloan approached Harvley about beginning a bank. The pair, along with a third individual, put up equal amounts of money, and addi onal shares were sold to outside investors. Sloan served as president and Harvley as cashier, a posi on that handled most of the work inside the bank. When Sloan was killed in a car accident in 1957, Harvley became president of

‘My dad was a listener. Whenever I wanted to implement something at the bank he would ask me a few choice ques ons, but he would never tell me what to do or how to do it.’

–R. Thornwell Dunlap III CEO, Countybank Countybank. One of the first things he did was hire his son-in-law away from Wachovia to become the first branch manager of any Greenwood bank the following year, Dunlap said. Thornwell Dunlap Jr. would eventually become president, CEO and chairman of Countybank. By the me the younger Dunlap came on board, he’d had the benefit of working for several years in Wachovia’s correspondent banking division, serving a number of South Carolina community banks. But he said his father quietly helped him keep the bank on an even keel. “My dad was a listener,” Thornwell Dunlap III said. “Whenever I wanted to implement something at the bank he would ask me a few choice ques ons, but he would never tell me what to do or how to do it. “His ques ons would force me to think closely about what I was considering and probably half the me I’d go ahead with it and half the me I wouldn’t,” Dunlap added. “He let me learn from my mistakes but he wouldn’t let me drive oﬀ the cliﬀ.” The elder Dunlap, who served as chairman of the South Carolina Bankers Associa on during 1987-88, re red from the holding company at age 70 but stayed on as chairman of the bank un l his death in 2009. That helped with the con nuity and management of bank ac vi es, his son said. Today, Dunlap classifies himself as a delegator. “I recognize that there’s no way I can know everything there is to know about technology, security, investments, etc., so I listen to my experts and let them do

what they do best,” he said. Dunlap, whose son R. Thornwell “Wells” Dunlap recently joined the bank, added that while Countybank is considerably larger than it was when he came aboard in the late ‘80s, with five offices and nearly $350 million in assets, it’s s ll committed to the same sound banking principles that it was when it started in 1933. “That’s what’s sustained us all these years and there’s no reason to change things now,” he said. Rela onships Key to the Family Business Some 80-plus years a er the founda ons of Anderson Brothers Bank, Arthur State Bank and Countybank were laid, each are not only going concerns but thriving enterprises that have successfully carved out niches for themselves in today’s hypercompe ve banking environment. The three have expanded far beyond the original scope envisioned by their founders, embraced change and s ll remained focused on customers. Execu ves and employees know customers by name, can sit down with them if a problem or opportunity arises and understand the communi es they serve. They say they’ve survived by surrounding themselves with talented people, recognizing the need to alter and modify their opera ons when necessary and by being willing to go the extra mile on a regular basis. “We can pre y much offer anything a big bank can offer. We won’t be the first to offer something, but we’ll get there,” said Carlisle Oxner III. “What we can do is offer customer service, and it’s something we pride ourselves on.” The Andersons, Oxner and Dunlap also take great pride in the communi es, and the role their banks have played in keeping them viable concerns, no small ma er in an era when many of South Carolina smaller communi es are on life support. But trying to get them to take credit for their successes can be like trying to throw a lamb chop past a wolf. “It’s not my nature to want to be recognized,” Dunlap said. “Like my father and grandfather, I don’t need the accolades. I get my sa sfac on out of ge ng things done rather than being recognized.” 13

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Execu ve News

Hugh Lane Joins Father in S.C. Business Hall of Fame

ugh C. Lane Jr., chairman and founder of The Bank of South Carolina, recently joined his father in the South Carolina Business Hall of Fame. Lane was recognized April 9 at the Columbia Metropolitan Conven on Center. Lane joined his father, Hugh C. Lane Sr., also a banker, who was inducted in 1985. Honorees are chosen for their contribu ons to S.C.’s business landscape, for being agents of posi ve change, for their leadership and for Lane being a source of inspira on to the leaders of tomorrow. Hugh Lane Jr. began The Bank of South Carolina, leading group of nearly two dozen organizers and helping raise more than $10 million to launch the Charleston-based ins tu on in 1987. The Bank of South Carolina, which today has more than $375 million in assets, has realized a profit every year since its founding. Today, the bank has four oﬃces, with loca ons in Summerville, Mount Pleasant and West Ashley in addi on to its headquarters site in

Charleston. Lane stepped down as president and CEO in 2012 but stayed on as chairman. A er earning an Economics degree from the University of Pennsylvania, he began his banking career at Ci zens and Southern Na onal Bank of Georgia. He spent a year with Chemical Bank in New York, then returned to the South to join Ci zens and Southern Na onal Bank of South Carolina, known as C&S Bank of South Carolina. Lane started The Bank of South Carolina a er C&S of South Carolina was acquired in 1986. Hugh Lane Sr. (1914-2005) began his banking career with Albany Exchange Na onal Bank in Albany, Ga. In 1937 he moved to Charleston to become assistant to the president of Ci zens and Southern Na onal Bank of South Carolina. The elder Lane was named president of the ins tu on in 1944. At that point, C&S had branches in Charleston, Columbia and Spartanburg and deposits of nearly $64 million. By the me Hugh Lane Sr. re red in 1974, C&S had 73 branches in 24 ci es and deposits of $600 million. He would later serve as chairman of both C&S Bank and its holding company. Like his father, community involvement

has been a crucial component of Hugh Lane Jr.’s makeup. He is on or has served on the boards of the following en es over the years: • The Charleston County Greenbelt Bank board; • The Trident Chamber of Commerce President’s Roundtable; and • Woﬀord College. Lane has held leadership posi ons with Ashley Hall School, Belle W. Baruch Founda on, Charleston Museum, Trident Urban League, Drummond Center, Lowcountry Open Land Trust, Independent Colleges and Universi es of SC, Roper Founda on, S.C. Chamber of Commerce, South Carolina Coastal Council, Trident United Way, MUSC’s Health Sciences Founda on, Palme o Project, Planta on Society and Southern Environmental Law Center. He also organized a task force that worked to fund and enact the S.C. Conserva on Bank, which sought to iden fy significant lands in South Carolina and how they could be protected and sustained. In 2008 Lane was awarded the Order of the Palme o, South Carolina’s highest civilian honor, by Gov. Mark Sanford. The South Carolina Business Hall of Fame is presented by Junior Achievement of Central South Carolina.

Community First Bank Gets Carter Replacing Matthews at Kingstree Federal S&L Approval for New Management Rupert B. “Rudy” Ma hews, president and CEO of Kingstree Federal Savings and Loan Associa on, will re re this summer. In March, Allan Carter was named president of the ins tuon, which dates back to 1926. Carter has 34 years of banking experience and most recently worked at Abbeville First Bank. Ma hews, who joined the Kingstree-based mutual in June 2009, has been in the banking business for 46 years. Kingstree Federal is South Carolina’s smallest ins tu on, with assets of around $34.5 million. It’s among a handful of mutual savings and loans le in South Carolina. Ma hews said in an interview last year that Kingstree’s decision to s ck to basics has helped it survive. “We have found our niche, we have found our market, and we have stayed within that market,” he said.

Community First Bank recently appointed a new execu ve management team, led by President and Chief Execu ve Officer Richard D. Burleson Jr., Chief Financial Officer William B. West and Chief Credit Officer Victor K. Grout of Greer. Burleson and West assumed their posi ons in early January and all three individuals received final regulatory approval in late March. West joined the bank in 2012 while Grout came from another South Carolina community bank, where he served as chief banking officer. Burleson had been interim chief credit officer at Community First for the past 18 months. Burleson’s career includes 16 years in community banking. Opened in 1990, Community First has four offices in Oconee County and three in Anderson County. 15

Women in Banking

Robust Showing at Women in Banking Symposium A endance at the 2015 Women in Banking Symposium increased nearly 20 percent from last year as more than 170 bankers and guests turned out for the April 8-9 event in Charlo e. The symposium, held at The Omni, featured an array of high-profile speakers, including Cathy Callaway Adams, chief opera ons oﬃcer with the Federal Home Loan Bank of Atlanta; Cathy Bessant, global technology and operaons execu ve for Bank of America;

Beth Dinndorf, president of Columbia College; and University of South Carolina first lady Patricia Moore-Pas des. A leadership panel included Kris n Couch, CFO of N.C.-based Aquesta Bank; Robin Hager, chief administra ve oﬃcer of N.C.’s NewBridge Bank; Anne Surre , regional director for Wells Fargo; and Clover Community Bank CEO Gwen Thompson. Those who a ended this year’s event said it was an excellent experience.

“Many of the speakers had great messages about how they found mentors and sponsors to help them move up in their companies and then became both mentors and sponsors themselves,” said Mary Jo Rogers, an execu ve vice president with South Atlan c Bank. Plans are underway for next year’s session to be held in South Carolina, most likely in the Greenville area, possibly in the fall, according to organizer Anne Gillespie, SCBA senior vice president.

Among those who took part in the 2015 Women in Banking Symposium were U.S. Rep. Alma Adams (D-N.C.), bo om center.

Mayde Matheson Andrews: South Carolina Banking Pioneer While records aren’t precise, it appears that the first woman to head a Palme o State bank dates back more than 90 years. Mayde Matheson Andrews (1882-1963) was elected the first president of Andrews Bank & Trust Co., a Georgetown County ins tu on that opened in January 1925. Andrews was married to Walter H. Andrews, founder of the town of Andrews. Andrews Bank & Trust organizers featured 14 investors, including Mayde Andrews, the W.H. Andrews Co. – formed by Walter Andrews – and Herbert S. Parsons, who would later serve as president as Andrews Bank & Trust, and whose son Arthur H. Parsons would also serve president of the bank and chairman of the S.C. Bankers Associa on in 1961-62. It’s unclear how long Mayde Andrews served as president of Andrews Bank & Trust, but it seems possible she stepped down a er her husband’s death in 1935. Walter Andrews was a Vermont na ve who came to George16

town in 1899 to become superintendent of the Atlan c Coast Lumber Co. and the Georgetown and Western Railroad. He helped purchase land that would become Fort Bragg, and he also served on the staﬀ of S.C. Gov. Cole Blease. Andrews also organized the Bank of Andrews and, later, Andrews Bank & Trust Co., which for several years was the only banking ins tu on in Georgetown County, according to A History of the Lowcountry of South Carolina. Today, one of Mayde and Walter Andrews’ grandchildren, Stuart Andrews of Columbia, is an a orney for Nelson Mullins Riley & Scarborough. John More, another Nelson Mullins attorney, is the long- me general counsel to the SCBA. Andrews Bank & Trust was acquired in 1986 by C&S Na onal Bank of South Carolina, now part of Bank of America. Today, there are an increasing number of women in the senior management ranks in banks across the state.

Bank News Anderson Brothers Bank Anderson Brothers Bank recently reopened its banking center at 102 N. Main Street in Mullins a er a month of lobby renova ons and structural reinforcement. When founders Ernest and Bishop Bonar Anderson established the ins tu on, it originally operated in a small oﬃce located in the back of the warehouse. A er a short me they moved to the 102 North Main Street loca on and later across the street to what is now bank headquarters, when that site was vacated a er The Bank of Mullins failed. For many years the 102 North Main Street site operated as the bank’s me payment department, for financing cars and other consumer loans. The loca on was converted into a bank branch in the 1990s. Anderson Brothers Bank is con nuing to partner with EverFi to bring its financial educa on program to students at two Florence-area high schools at no cost to schools or taxpayers. The web-based program uses the latest in new media technology – simula ons, gaming and adap ve-pathing – to bring complex financial concepts to life for today’s digital genera on. The high school course oﬀers a variety of financial topics including credit scores, insurance, credit cards, student loans, mortgages, taxes, stocks, savings, 401ks and other cri cal concepts based on na onal financial literacy standards. “More and more evidence suggests

that rigorous financial educa on delivered early in a young person’s development leads to posi ve financial behaviors later in life,” said Susan Grant, marke ng oﬃcer for Anderson Brothers Bank. “By providing high school students with the knowledge and skills they need to make smart financial decisions, we are inves ng in the future economic well-being of the communies we serve.”

Carolina Alliance Bank Carolina Alliance Bank in Spartanburg has upgraded its common stock to trade on OTCQX, the top marketplace of the U.S. unlisted market for established, U.S. and interna onal companies. Carolina Alliance Bank is the 60th community bank na onwide and the first South Carolina-based bank to join OTCQX since OTC Markets Group introduced tailored OTCQX qualifica on requirements for community banks last spring. CertusBank, NA Greenville-based CertusBank, NA, announced in late March plans to sell its lone Charlo e branch to Cornelius, N.C.-based Aquesta Bank. CertusBank announced that its Lenoir and Granite Falls branches in western North Carolina would be acquired by Charlo e-headquartered CommunityOne Bank, NA. The transac on is expected to close in the second quarter and is subject to regulatory approval.

Earlier this year, CertusHoldings Inc., the parent of Greenville-based CertusBank, agreed to sell its small business finance unit to Miami Lakes, Fla.-based BankUnited Inc.

Entegra Financial Corp. Entegra Financial Corp. said earlier this year that its banking subsidiary will open a loan produc on office in Greenville, at 301 N. Main Street, Suite 2101. The Franklin, N.C.-based company expects the unit to operate in South Carolina as Entegra Bank. James “Jimmy” Kimbell III has been hired as the South Carolina market execu ve to lead the new office and business development efforts in the upstate South Carolina region. Greer Bancshares Inc. Greer Bancshares Inc. announced in March it had officially deregistered its common stock, according to a Securi es and Exchange Commission filing. Horry County State Bank Loris-based Horry County State Bank, a unit of HCSB Financial Corp., recently entered into a defini ve agreement to sell certain branches to North Myrtle Beach-based Sandhills Bank, according to documents filed with the Securi es and Exchange Commission in March. The company intends to sell branches in Socastee, Windy Hill, and Carolina Forest. The sale includes approximately See Bank News, Page 21

Carolina Alliance, Pinnacle Bank Parent to Join Together Carolina Alliance Bank recently signed a defini ve merger agreement with Pinnacle Bank of S.C. parent PBSC Financial Corp. The combined bank will have eight banking offices and two loan and lease produc on offices. All of the offices will operate as Carolina Alliance Bank and the bank will be headquartered in Spartanburg. “Both Carolina Alliance and Pinnacle Bank are young, healthy, and growing banks,” said John S. Poole, Chief

Execu ve Oﬃcer of Spartanburg-based Carolina Alliance. “Merging these financially sound ins tu ons is a natural fit to bridge our Spartanburg and western upstate oﬃces.” David G. Barne , president and CEO of Greenville-based PBSC Financial and Pinnacle Bank, will join Carolina Alliance Bank’s senior management team and serve as president of the Greenville and South Carolina Western region. “We have known the bankers at Carolina Alliance for years,” Barne

said. “We started our respec ve banks with the vision that local communi es deserve to have access to experienced knowledgeable bankers oﬀering consulta ve financial advice. Our philosophy has always been about communi es and service. This combina on allows us to serve our exis ng communi es - and new ones - with an even greater focus on that philosophy.” The deal, expected to close in the fourth quarter, will create a bank with approximately $567 million in assets. 17

Personal Transac ons

Stone

Tyler

Abbeville First Bank Susan Sherard Stone recently joined Abbeville First Bank as a lender. Anderson Brothers Bank Anderson Brothers Bank fraud inves gator Elmore Bethea was recognized at the S.C. State House for 20 years of work as an Inves gator. Bethea was honored at the Capital by Rep. Wayne George. Craig Deadwyler has joined Anderson Brothers Bank as a collec on manager.

Coastal Carolina Na onal Bank Myrtle Beach-based Coastal Carolina Na onal Bank has promoted Robert Hucks to senior vice president of the North Strand market. Clover Community Bank Clover Community Bank President and CEO Gwen Thompson was one of seven individuals recently named by the FDIC to its advisory commi ee on community banking.

Anderson Brothers Bank has promoted Toni Fon to branch opera ons coordinator.

CresCom Bank CresCom Bank has promoted Joan Baird to vice president and announced she will oversee day-to-day opera ons at its West Ashley and James Island branches.

Paula Lee has been promoted by Anderson Brothers Bank to branch manager of the Longs Oﬃce.

Ryan Benton has joined CresCom Bank as vice president and commercial loan oﬃcer for its Mount Pleasant branch.

Anderson Brothers Bank has added Jennifer Tyler as AVP/bank loan oﬃcer, and based in the bank’s Conway branch.

Bailey Gronbeck has been promoted to branch manager for CresCom Bank’s James Island loca on.

Carolina Alliance Bank Carolina Alliance Bank recently added Pam Pless as a senior vice president, commercial banking oﬃcer.

CresCom Bank has named Don Hamilton as an underwriter in its retail mortgage department.

Gina Rogers has joined Spartanburgbased Carolina Alliance Bank as a banking oﬃcer, credit analyst.

Carolina Financial Corp. Claudius Wa s IV has joined the boards of Charleston-based Carolina Financial Corp. and unit CresCom Bank. He is a partner and managing director of Carlyle Group LP. 18

Gronbeck

Jeﬀ Fleming has been appointed vice president and Summerville city execuve by CresCom Bank. Kathy Lambert has been promoted to banking oﬃcer at CresCom’s 16th Avenue branch in Conway. Jordan Miller has been promoted to the posi on of vice president by CresCom Bank.

Benne

Trippe

CresCom Bank recently named John Riddick to the posi on of Charleston commercial market execu ve and senior vice president. Dawn Small has been appointed to the posi on of assistant vice president, university training consultant by CresCom Bank. The Mortgage Bankers Associa on has appointed Fowler Williams, president of Crescent Mortgage Co., a subsidiary of CresCom Bank, chairman of the Mortgage Ac on Alliance for 20152016. CresCom Bank has named Shaundra Williams manager for its Conway branch.

Entegra Financial Corp. James “Jimmy” A. Kimbell III has been hired as the South Carolina market execu ve for Entegra Financial Corp. and will lead the new loan produc on office and business development efforts in the Upstate South Carolina region. Franklin, N.C.-based Entegra Financial Corp. recently announced that it will open its loan produc on office in Greenville. The company expects its banking subsidiary to operate in South Carolina as Entegra Bank. First Ci zens Bank James A. Benne will lead First Ci zens Bank’s newly acquired Capitol City Bank & Trust division opera ons. In addi on to serving as the bank’s area execu ve for its S.C. Central area, Benne will assume responsibility for all eight Capitol

Personal Transac ons

Blackhurst

Coﬀey

City Bank oﬃces in Georgia, including branches in Atlanta, Stone Mountain, Albany, Augusta and Savannah. Jan Burt has been promoted to senior vice president/Metro Columbia retail banking manager at First Ci zens. Peggy Chamblee has been selected to serve as retail sales manager for First Ci zens’ East Greenville Street branch. Allison Trippe has been named vice

Brown

president and retail sales manager for First Ci zens’ Hilton Head branch.

First Federal Bank of S.C. Joseph P. “Joe” Laferte has been named chief financial oﬃcer by First Federal Bank of S.C. First Reliance Bank Joan Billheimer, community development oﬃcer for First Reliance Bank in Florence, was recognized as Florence County’s Economic Development Am-

Jones

Strain

bassador for 2015 during a ceremony at the Governor’s Mansion Complex April 2.

NBSC Jennifer Williams Blackhurst had been promoted to vice president by NBSC, a division of Synovus Bank. Dean G. Cutshall has been named branch manager of NBSC’s Rock Hill oﬃce. See Transac ons, Page 21

Transac ons/Bank News Bank News

Transac ons L. Craig Harmon has joined Synovus Securi es as a financial consultant in the company’s Spartanburg main office. Joseph K. Coffey and Gary C. Lee have been named to Clarendon County Advisory Board for NBSC. Coffey is a partner in Coffey, Chandler and McKenzie Law Firm while Lee is owner of Pocotaligo Products, LLC, a wood-product company. John Fitzhugh “Fitz” King has been promoted to senior vice president by NBSC. NBSC’s Hilton Head office, led by market president Tom Henz and branch manager Traute Raedisch, earned recogni on as a South Carolina recipient of the Synovus Circle of Excellence Sales Award. Charleston commercial banker Alan Uram was recognized by NBSC as a top banker in the bank’s South Carolina market, lauded as a South Carolina recipient of the Synovus Circle of Excellence Award.

Pinnacle Bank Tracy Woodruff has been selected to serve as branch manager for Pinnacle Bank’s new Easley loca on, while Mandy Lamb and Lisa Smith have been named personal bankers at the branch. South Atlan c Bank Denise Brown has been named senior vice president and retail market sales leader for South Atlan c Bank. Brown leads the retail division of the bank, including branch management, sales processes, and customer service training, while overseeing the management training program and branch staffing. South Atlan c Bank has promoted Mandy Edge to banking officer and assistant manager at the Myrtle Beach office. Liz Miles has been named teller super-

visor in South Atlan c Bank’s headquarters in Myrtle Beach. Leah Rodriguez is now a banking officer and assistant manager for South Atlan c Bank at the ins tu on’s Murrells Inlet oﬃce. Michelle Ward recently joined South Atlan c Bank as a deposit opera ons specialist and BSA assistant.

The Palme o Bank The Palme o Bank has appointed Roy D. Jones treasurer. Jones, who assumed responsibility for the treasury funcons of the bank in 2013, will con nue to serve as The Palme o Bank’s chief financial officer. Jones joined the bank in 2010 as chief accoun ng officer and was named the chief financial officer in February of the following year. Tidelands Bank Gerald Davis was appointed senior vice president and city execu ve for Summerville by Tidelands Bank. Tidelands Bank appointed Rudy Gill senior vice president and community banker. Tidelands Bancshares Inc. Chairman Larry Tarleton will re re from the corporate on May 18, as he reaches the corpora on’s mandatory re rement age for directors. Tarleton has served on Tidelands Bancshares’ board since 2006. The board decided to reduce its size to six directors from seven directors, effec ve at the commencement of the 2015 annual shareholder mee ng, to be held May 18.

United Community Bank United Community Bank has appointed Rob Edwards as the ins tu on’s chief credit oﬃcer. Samantha J. Strain recently joined United Community Bank’s specialized lending team as a senior vice president and general manager.

$45.5 million in deposits and $8 million in loans. The deal is scheduled to close in the third quarter.

Independence Na onal Bank Independence Na onal Bank employee Vincent Harris was awarded second place by the S.C. Press Associa on for his music column in the Greenville Journal. Harris, a float teller with Independence, has been authoring ar cles for the Journal for three years. Security Federal Bank Aiken-based Security Federal Bank held a groundbreaking ceremony on Jan. 15 for its newest branch in Irmo. Security Federal’s loca on is scheduled to open in mid-2015. South Atlan c Banchshares Inc. Myrtle Beach-based South Atlan c Bancshares Inc. completed the first phase of a private placement offering of common shares at the end of 2014, according to the company’s 2014 annual report. The second phase of the offering con nued into the first quarter of 2015. Proceeds from South Atlan c’s offering will be used for general corporate purposes and to support the growth and capital posi on of unit South Atlan c Bank. Both new and exis ng shareholders are involved in this offering. United Community Bank The board of directors of Blairsville, Ga.based United Community Banks Inc., the parent of SCBA-member United Community Bank, promoted Lynn Harton to president and chief opera ng officer in February. United Community Banks Inc. announced plans earlier this year to acquire Lenoir, Tenn.-headquartered MoneyTree Corp. and its wholly owned subsidiary First Na onal Bank. The transac on has been unanimously approved by the board of directors of each company. The transacon is expected to close in the second quarter of 2015. 21

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www.servisfirstbank.com | Member FDIC | Equal Housing Lender

In Memoriam

Remembering Former SCBA Chairman Sterling Laffitte Sterling J.U. Laﬃ e, president of Palme o State Bank and SCBA former chairman passed away on Feb. 13, 2015, at age 59. Laﬃ e came from a long line of respected bankers. His grandfather, father and uncle were involved in banking, as were his three older cousins. A er gradua ng from The Citadel in 1976, he went to work for Bankers Trust

of S.C., spending four years with the Columbia-based ins tu on before returning home to Es ll to join his father R. Montague “Monk” Laﬃ e at The Exchange Bank. In 1987 he became president of The Exchange Bank and was later named president of Palme o State Bank, created by the merger of The Exchange Bank, Carolina Commercial Bank and

Palme o State Bank in 2007. A graduate of the S.C. Bankers School and the Graduate School of Banking at LSU, Laffi e served as chairman of the SCBA during the 2008-09 term. In addi on to being SCBA chairman, Laffi e also served as chairman of the Young Bankers Division and chairman of the South Carolina Bankers School. See Laffi e, Page 27

Feature

Consider Longterm Objectives When Booking Loans Chris Nichols CenterState Bank

s loan pricing becomes more compe ve, the opportunity to book high quality credits at thin margins presents itself more and more. A 2 percent margined loan represents about a 9 percent risk-adjusted return on equity (depending on your cost structure), which is below most bank’s cost of capital. As such, there is every reason to pass on the credit and let another bank book the loan. However, before you do, consider the following: Booking a 9 percent loan may hurt your return on equity and return on assets, but it will help your earnings per share. This is a clear case of Nichols being clear what your goals are. Is it a dividend? Capital efficiency? Or is your goal another metric? Earnings per share is likely what your shareholders are really concerned about. While we are big fans of capital produc vity, we would argue that underdeployed efficient capital is not as good as fully deployed non-efficient capital. If you have under-leveraged deposits and capital, then that 9 percent ROE loan should be considered. A bunch of 9 percent ROE loans can produce a 20 percent ROE bank. If constructed the right way, a well-engineered balance sheet produces greater excess return than the sum of its parts. Build a diversified por olio and the sum of your risk is decreased thereby increasing the return on equity on all loans. In fact, proper construc on can add approximately 20 percent more return, making that group of 9 percent loans closer to an 11 percent return.

‘Almost every bank measures risk at its highest point – at incep on. The reality is that risk changes over me.’ Further, interest income is just one part of the equa on. That loan also represents fee income, referrals, deposits and other future business that you may or may not be capturing. Addi onal income may not only come from future cross-sell, but from future growth in the rela onship, as those $50k of balances turn into $150k in two years. Add these streams in and your bank can easily take those 9 percent loans and turn them into a 20 percent relaonship. In fact, while a bank is not the sum if its loans, the sum of its rela onship profitability would yield something closer to aggregate ROE. Almost every bank measures risk at its highest point – at incep on. The reality is that risk changes over me. Businesses grow, property appreciates and loan balances get paid down. All things being equal, the risk of a loan peaks somewhere between years Two and Five in the life of a loan and then trails down. Of course risk can increase at any me, but the odds are with you that the risks decrease if you pick the right management team. Few risk systems capture the profile of credit exposure over me and so approximate the probability of default at the me of booking. As seasoning occurs, spreads ghtened giving that loan more value and increasing the return substan ally above that 9 percent. It is also important to realize that most likely you are coun ng your loan reserve as an expense when it is capital. You might include a 2 percent reserve now resul ng in 9 percent return, but the

reality is you will likely reduce your loan loss reserve in the future, par cularly as credit quality improves. You might be alloca ng your capital, funding cost and direct loan maintenance expenses to the loan, but that says nothing of the fixed investment you have in your infrastructure. Even if you are one of those sophis cated banks that have a state-of-the-art funds transfer methodology, it is doub ul that you take into account the opportunity cost of resource slack. You may want to hold out for that 20 percent ROE loan, but while you do you have excess capacity and under-deployed resources that could be producing income. Be er to use your loan system, branch, risk management system and other fixed resources with excess capacity to drive dollars to the bo om line today. A dollar today, means much more than a dollar tomorrow. Processes and technology is increasingly driving down the future cost of opera ng a bank. Just as remote-deposit capture reduces the need for a courier or a branch; new loan processing systems, credit stress test models, channel delivery, management systems and hundreds of other items will make the bank more eﬃcient in the future. Banks not only base their profitability decisions on loans using the highest expected credit risk, but they also underwrite loans based on their current cost structure. Wells Fargo, for example, is underwri ng loans not on where their cost structure is today, but where it is in the future. If you don’t have ini a ves to reduce opera ng cost in the future, you should and planning for it will ensure it will happen and thus should be considered when booking loans today. To survive, your bank may also have to add other products. Adding these future services will inSee Risk, page 30

Young Bankers Conference

Wild Dunes Proves Inviting Locale for Young Bankers Some 200 individuals turned out for the 2015 Young Bankers Conference, marking the 60th anniversary of the Young Bankers Division. Bankers, associate members and a number of 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. Trish Springfield of The Palme o Bank moderated the panel. Bankers weren’t the only ones to benefit from a ending the 2015 Young Bankers Conference. Michael Boozer, president of associate member Integrated Financial Solu-

ons, said he sees the conference as an investment in his company. “If a bank decides to send an employee to the conference ... they obviously see that person as a young bright member of their staff,” he said. “It is much better to develop a rela onship with that person before they are being pulled in a million different direc ons.” The 2016 Young Bankers Conference will be held March 18-20 at The Omni Grove Park Inn, in Asheville, N.C. Among highlights from 2015 Young Bankers Conference: top le , Marvin Robinson and Chad Westendorf, past division chairman and divsion chairman, respec vely. Center le : Henry and Libby Laffi e; further below: Fred and Mary Green, Bill and Linda Stevens. Bo om le : Former YBD chairmen: David Morrow, Sam Erwin, Tyler Hudson and Henry Laffi e. Below top. Chad Westendorf and incoming division chairman Glenn Buddin. Below bo om: SCBA Chairman Blake Gibbons.

It’s Not Just a Building...

It’s Home. Community Investment Corporation of the Carolinas is a lending consortium of more than 100 southeastern financial institutions, working together to provide permanent financing that supports the development of high-quality affordable multifamily housing in the Carolinas, Georgia, Tennessee, Virginia and West Virginia. Since 1990, CICCAR members have funded more than $275 million in loans, creating 17,000 units in over 300 properties. In return, they receive the benefits of loan growth, CRA credit and the satisfaction of creating “home” for nearly 50,000 people. Call today to learn more about the ways that membership in CICCAR can benefit your bank and the communities you serve.

Community Investment Corporation of the Carolinas P.O. Box 19999, Raleigh, NC 27619 Toll free: (800) 662-7044 Local: (919) 781-7979 www.ncbankers.org/CICCAR

@CICCarolinas

Calendar Professional Development Calendar May 12-14, 2015 June 7-10, 2015 July 12-17, 2015 Sept. 22, 2015 March 18-20, 2016 June 12-15, 2016 July 10-15, 2016

2015 Commercial Lending School 2015 SCBA Annual Conven on 2015 South Carolina Bankers School Young Bankers Division Scholarship Golf Tournament 2016 Young Bankers Conference 2016 SCBA Annual Conven on 2016 South Carolina Bankers School

Columbia, S.C. Charleston, S.C. Greenwood, S.C. Members Club at Woodcreek, Elgin The Omni Grove Park Inn, Asheville The Sanctuary, Kiawah Island, S.C. Greenwood, S.C.

Laffi e In 1995 he was selected Outstanding Young Banker of the Year, the highest award presented by the SCBA. Laffi e, whose loss was noted by the SCBA Past Chairman’s Club, ensured that the customer was priority No. 1. “You treat everybody who walks through the door as you would like to be treated,” he told the Palme o Banker in 2008. Laffi e was a member of the American Bankers Associa on where he served many terms on the Government Rela ons Council and was ac ve in numerous causes in his home area, including the Hampton County Econom-

ic Development Board, the Hampton County Chamber of Commerce, Patrick Henry Academy’s Board of Directors and the Lawtonville Bap st Church. “Sterling was an excellent boss, mentor, and friend,” said Chip Mikell, vice president with Palme o State Bank. “He treated every customer and every employee with respect. He was a consummate gentleman. He never lost his composure or showed it if he was stressed. He was definitely a calming presence at the bank. “I hear the same thing over and over from our customers, that he was always

so nice to them and that he was one of the finest men they knew,” Mikell added. “He will be greatly missed by everyone who had the pleasure of knowing him.” Laffi e is survived by his wife Lin, son Usher, daughters Sydney and Mary Madison, parents Monk and Elizabeth “Lib” Usher Laffi e, brother Dr. R.M. “Monty” Laffi e and wife Carol Wienges Laffi e, sister Elizabeth “Liz” Laffi e Malinowski and husband Jan M. Malinowski, numerous other family members and many friends in the South Carolina banking community.

Make Your Shareholders HAPPY! Use our C&I Program to instantly add loan growth and diversiﬁcation. Contact your representative today or email to CI@centerstatebank.com 5960 Fairview Road, Suite 400 Charlotte, North Carolina 28210 704.496.2612 www.c sb c o r resp o n de n t. c o m

Welcome New Associate Members Compensa on Advisors 1101 Gulf Breeze Parkway Building 6 Suite 17 Gulf Breeze, FL 32561 Contact: Joseph R. “JR” Llewellyn IV Phone: (678) 427-1015 Web: www.compensa onadvisors.com Email: jr.llewellyn@compensa onadvisors.com As thought leaders since 2005, Compensa on Advisors has exclusively served the community banking industry providing guidance on the latest compensa on and hiring developments. As industry experts, Compensa on Advisors delivers insightful strategies and solu ons working with financial ins tu ons across the U.S. providing a full range of services to include: execu ve and director compensa on reviews, pay-for-performance incen veplan structures, equity alloca on plans, benefit-plan design structures, base salary reviews (company-wide), risk assessments, regulatory updates, compensaon commi ee governance and LINQS+, a proprietary methodology to reduce SERP benefit expense while enhancing the benefit payment to life me.

Computer Services, Inc. 3901 Technology Dr. Paducah, KY 42001 Contact: Pam Farnsworth Phone: 270.442.7361 Website: www.csiweb.com Email: pam.farnsworth@csiweb.com Computer Services, Inc. is a customer service company that delivers innova ve technology solu ons to financial ins tu ons na onwide. A total solu ons provider, CSI oﬀers core processing, managed services, mobile and Internet solu ons, payments processing, electronic and print distribu on, and regulatory compliance solu ons. With 50 years as an industry leader in innova on 28

and service, CSI serves financial ins tuons as a trusted technology partner that understands their needs and delivers solu ons that empower them to be more compe ve, compliant and profitable.

Environmental Risk Innova ons 201 McCullough Drive, Suite 150 Charlo e, NC 28262 Contact: Karen Nelson Phone: 704.548.9333 Website: www.eriskinnova ons.com Email: knelson@eriskinnova ons.com ERI is the na on’s largest environmental risk-consulting firm, specializing in the management of environmental risk for commercial lenders. ERI’s clients include a broad base of commercial lenders, from small regional banks to large banks with naonal footprints. ERI develops internal environmental risk policy for commercial lenders, provides third-party review of environmental assessment reports, and conducts Records Search with Risk Assessments/“desktop reviews” on commercial proper es. ERI is not a

tradi onal environmental consul ng firm that performs Phase I or Phase II Environmental Site Assessments. As a result, ERI’s recommenda ons represent a truly independent, third-party opinion that conforms to the client bank’s specific risk tolerance.

Golden Eagle Insurance 9145 Miller Road Johnstown, OH 43031 Contact: Alicia Jellison Phone: 800.461.9224, ext. 3425 Web: www.goldeneagle-insurance.com Email: Alicia.jellison@goldeneagleinsurance.com Golden Eagle Insurance was founded in 1995 by William Jones, a West Point graduate. Golden Eagle Insurance believes quality specialty lending products and services should not only create value, but also provide superior customer sa sfac on. As one of the largest specialty lending insurance agencies in the Midwest, Golden Eagle Insurance services more than 300 financial ins tu ons in 13 states and handles

Notification of Non-Renewing S.C. Bankers Association Members As the 2014-15 fiscal year comes to a close, the South Carolina Bankers Associa on 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 and wish them future success. The SCBA would welcome each of them to rejoin the Associa on as Associate Members. The non-renewing companies are: • Accumen EDGE; • Ascensus; • Fidelity Informa on Services (FIS); • Integra Realty Resources;

• Payscape Advisors; • Strategic Risk Associates; • TCP Leasing; and • The Floyd Law Firm. SCBA Services Inc. is dedicated to reducing the costs of products and services for South Carolina banks. To find out more about SCBA Associate Membership or to become a Preferred Vendor, please contact SCBA Vice President Carolyn Laﬃ e at 803.779.0850 or through email at carolynlaﬃ e@ scbankers.org.

Welcome New Associate Members more than 1,000 successful claims each year. Golden Eagle Insurance works with the finest ‘A’ rated insurance providers in the industry. Together, the Golden Eagle team has more than 150 years of experience in the insurance and financial services industries. The dedicated staﬀ provides the innova ve custom solu ons and personal interac on that you expect from a trusted business partner. Perhaps nothing sets Golden Eagle Insurance apart from the compe on more than its claims-management process, which ensures that claims are se led quickly and favorably. An experienced internal claims manager will assist in every step of the process.

Greystone Servicing Corp. 152 W 57th Street New York, NY 10019 Contact: Daniel B. “Dan” Lambert Phone: 843.379.4590 Website: www.greyco.com Email: dlambert@greystoneusa.com Greystone is a financial services and private investment group whose original core business is mul family real estate lending. Over the years, Greystone has added business lines that are related to, and natural extensions of, its core business. Headquartered in New York with offices across the U.S., Greystone is ac ve in three major business segments: mortgage finance, healthcare and real estate. Greystone’s mission is to apply unparalleled crea vity while modeling corporate compassion. Loans are offered through Greystone Servicing Corp., Greystone Funding Corp. and/or other Greystone affiliates. Lexington Medical Center Founda on 2720 Sunset Blvd. West Columbia, SC 29619 Contact: Timothy M. “Tim” James Phone: 803.791.2740 Website: lmcfounda on.com Email: tmjames@lexhealth.org

Founded in 1990 as the hospital’s philanthropic department, the Lexington Medical Center Foundaon focuses on developing and funding programs that are consistent with the strategic vision of the hospital. Its mission is to ensure that high quality health services and pa ent-centered care are available in the Midlands. By suppor ng a variety of community and hospital programs, the Founda on sa sfies community needs that contribute to wellness, peace of mind and dignity. This includes providing Lexington Medical Center and its network with state-of-the-art technology, funding nursing scholarships, suppor ng health care educa on and assis ng in-need pa ents.

Moore & VanAllen, PLLC 100 North Tryon St. Charlo e, NC 28202 Contact: Cynthia J. Lowery Phone: 843.579.7000 Website: www.moore&vanallen.com Email: cynthialowery@mvalaw.com Moore & Van Allen PLLC is one of the largest law firms in the Southeast, with nearly 300 a orneys and oﬃces in Charleston and Charlo e and Research Triangle, N.C. The a orneys at Moore & Van Allen provide sophis cated legal services within their Banking Services Team (which includes collec ons, bankruptcy, workouts, loan restructures and foreclosures), Finance, Li ga on, Corporate, Estate & Wealth Planning and Intellectual Property law prac ces for banks. Privacy and data security, along with CFPB developments are prac ce areas developed specifically to address the needs of banking clients. Addi onally, the firm is comprised of groups which provide services for manufacturers, energy leaders, healthcare and technology companies. Addi onal informa on and a complete lis ng of its prac ce areas can be found on Moore &

Van Allen’s website. U.S. News & World Report and Best Lawyers recognized Moore & Van Allen in their 2015 “Best Law Firms” rankings, both regionally and na onally.

Secure Banking Solu ons 700 S. Washington Ave., Suite 200 Madison, SD 57042 Phone: 605.270.3321 Contact: Rick Olivier Website: www.protectmybank.com Email: rick@protectmybank.com Secure Banking Soluons, LLC is a financial industry leader in cyber security consul ng and audi ng, and governance and risk-management solu ons. SBS consul ng and audi ng services include: informa on security audits, penetra on tes ng, vulnerability assessments, social engineering tes ng, IT policy and tes ng and security awareness training. SBS has also developed an industry-leading tool for automa ng informa on security governance and risk-management called TRAC. TRAC can assist you with: IT risk assessment, GLBA risk assessments, policy management, informa on security programs, third party management, business con nuity planning, enterprise risk assessment and BSA risk assessment.

Time Warner Cable Business Class 3347 Pla Springs Road West Columbia, SC 29170 Contact: Chris Keasler Phone: 803.705.4164 Website: mewarnercable.com Email: christopher.keasler@twcable.com

Time Warner Cable Business Class delivers reliable enterprise-class solu ons over advanced fiber-rich IP network and empowers you to cost-eﬀec vely scale bandwidth to meet growing business needs such as Internet, network See Associate Members, Page 30 29

Risk crease the overall life me value of a large por on of your customers, thus resul ng in higher future return on equity for many of your customers. If you don’t have the quality businesses that you need, you may never have enough scale to make these fee income lines worth the risk. Most likely you have already spent half your acquisi on cost in pu ng the bank in a posi on to issue a term sheet on the loan. While not our best argument, making that loan at 9 percent recoups that investment in obtaining that rela onship and enhances the bank’s overall ROE compared to le ng that loan go to a compe tor. Speaking of the loans you want to go to a compe tor, it is the higher-margined, riskier loans that contain a large credit component that you really want

‘Speaking of the loans you want to go to a compe tor, it is the highermargined, riskier loans that contain a large credit component that you really want to see go elsewhere.‘ to see go elsewhere. These loans may produce a high return on equity now, but if you are going to err, we recommended erring on the side of being able to extract future value from a quality rela onship than having to bet on future credit fundamentals. Before you turn down that quality loan at a thin margin consider there is very li le correla on between earnings and

net interest margin. A bank is faced with a series of investment decisions at any given me and it has to be sure that before you pass up that 9 percent return on equity loan a be er loan must come by and come by quickly. If you give up that 9 percent this year, because of the me value of money, that means you need to book loan with a larger ROE next year and a s ll larger ROE the year a er. If you are already leveraged up, then passing on a low earning loan may be your best move. However, if you have under-deployed capital, funding and infrastructure, making that 2 percent margined loan may be your best tac cal move. (Chris Nichols is chief strategy oﬃcer for Florida-based CenterState Bank.)

Associate Members services, voice and cloud. The proliferaon of smartphones, tablets and other devices on your network – along with the move to cloud-based applica ons – is eleva ng bandwidth demands to new levels. Oﬀering a full suite of enterpriseclass solu ons, including MEF CE 2.0 Cer fied Ethernet, and the financial stability of a Fortune 500 company, you can rely on Time Warner Cable Business Class to sa sfy your growing technology and communica ons needs. Connect your business loca ons with our wholly owned network of over 350,000 fiber route miles includes last-mile access all the way to customer premises. Our selfhealing metro, regional and fiber-ring topology protects your cri cal data and provides superior network availability and resiliency.

Valua on Management Group, LLC 1640 Powers Ferry Road Bldg. 15, Suite 100 Marie a, GA 30067 Contact: Patrick McMillen Phone: 678-486-7495 Website: www.valua onmanagement30

group.com Email: patrick.mcmillen@vmgappraisals.com Valua on Management Group is a na onwide commercial and residenal appraisal management company that oﬀers a full suite of appraisal services. Partnering with VMG for review services or to manage compliance of all your appraisals ensures appraiser independence and quality appraisal reviews. VMG understands the importance of rela onships in the community and works with the bank to establish its own list of approved appraisers and manages all of the third-party due diligence. Our services can reduce bank expenses for appraisal management or review while strengthening bank regulatory process. VMG delivers personal and mely service to its clients. VMG engages the most qualified and experienced professionals in the industry and is commi ed to the highest level of integrity, accountability and reliability.

WolfPAC Integrated Risk Management 99 High Street, 21st Floor Boston, MA 02110 Contact: Joseph M. “Joe” Romanello Phone: 617.261.8195 Website: www.wolfpacsolu ons.com Email: jromanello@wolfandco.com WolfPAC Integrated Risk Management is a secure, hosted enterprise risk management solu on used to automate the iden fica on of risks, threats and control gaps. Developed by financial professionals in 2004, WolfPAC provides tools to review and monitor informa on technology, privacy, vendor and other enterprise-wide risk assessments. Quarterly methodology updates are designed to align with changing business environments and emerging compliance and examina on standards. A robust suite of reports allows management to analyze their control gaps and benchmark risk profiles against peers. WolfPAC keeps ins tu ons safe and sound, maximizing the outcome of strategic objec ves.

Feature

Keating: New Banks Crucial to Well-Being of Economy Frank Kea ng ABA Chairman

in the United States,” a Brookings Ins tu on report found last year. The scholars found that the long-term trend of more firms star ng than failing reversed in 2008. Depressingly, it’s a sta s c that has persisted. What we know about the virtuous cycle of credit, entrepreneurship and job crea on suggests that these data points aren’t a coincidence. Do fewer bank startups mean there is less funding for startups in other sectors? It wasn’t always like this. As late as 2009, you could see several dozen new, or “de novo,” banks formed each year. The average from 2002 to 2008 was closer to 100. Even in slower years during the early 1990s, the number of new banks never dipped below 25. There is s ll plenty of demand for banks’ services. But investors are reluctant to shoulder the cumula ve regulatory burdens – both from new laws and from a more stringent approach by regulators themselves – and the rising legal risks associated with running a bank these days. I hear this message from bankers all too o en. A 35-year veteran banker told me that now “the first thought that comes to my mind is how the regulators will look at the loan transac on – not the thought of how I can help my customers achieve their dreams.” Regulators have also raised the capital requirements to charter a new bank.

For example, figures from the Federal Reserve Bank of St. Louis show that the ini al capital-to-assets ra o for new banks rose by about 50 percent from 2002 to 2008. That increases the hurdles for bank entrepreneurs. To be sure, the low interest rate environment is challenging for bank startups. And the number of banks has been steadily falling for decades due to a wave of mergers and acquisi ons. But this M&A pa ern has historically been accompanied by significant numbers of new startups. Not anymore. The lack of startups is accelera ng the shrinking number of banks. According to recent research from the Federal Reserve Bank of Richmond, had the historical de novo trend persisted, between 2007 and 2013 we would have lost a net of just 269 commercial banks instead of 836. I thus salute the Primary Bank team for bucking the trend. The people of southern New Hampshire will soon enjoy a new bank compe ng for their business. I hope regulators see the benefits new banks bring to their hometowns – and allow innova ve bankers, with new ideas and solid business plans, to serve their communi es, promote entrepreneurship and create jobs.

omething unusual will happen in New Hampshire in the next few months: a bank will be born. With condi onal approval for insurance from the Federal Deposit Insurance Corpora on, Primary Bank will soon be able to open its doors – bringing a new source of credit and financial security to the greater Manchester area. In most industries, a startup doesn’t make na onal news. Kea ng But not in the banking industry, where regulators have approved charters for only one new bank since 2010. That new bank startups have slowed to a trickle should worry anyone who cares about economic growth. Startups are the hallmark of America’s entrepreneurial economic model. Banks are cri cal to financing these ventures – figures from Harvard Kennedy School researchers, for example, show that community banks provide more than half of all small business lending. Other (Frank Kea ng is president and CEO of studies have found that startup busithe American Bankers Associa on. This nesses are in turn responsible for nearly piece first appeared in The Hill.) all net job crea on. In recent years, scholars have been puzzled by the slow pace of job creaon since the end of the recession. We have only recently recovered the jobs lost a er the financial crisis – and we have some way to go to account for growth in popula on. Meanwhile, others are worried about declining startup ac vity. “Business dynamism and entrepreneurship are experiencing Pennsylvania’s Amish country is the site of the lone de novo, Bank of Bird-in-Hand, to be opened in a troubling secular decline the U.S. since 2010, when Dodd-Frank was passed and enacted.

Good Samaritans Anderson Brothers Bank Anderson Brothers Bank was the sponsor for the first “Law Enforcement Apprecia on Dinner” for the law enforcement oﬃcers of Marion and Dillon coun es earlier this year. The event was held at Hidden Acres in Marion. More than 200 guests a ended the event. Anderson Brothers Bank employees Rosie Minton and Brent Hardee par cipated in the Youth Leadership Academy at Coastal Carolina University earlier this year. Youth Leadership Academy is an annual Myrtle Beach Area Chamber of Commerce event that provides ac vies developed for high school students who currently demonstrate leadership skills in their homes, schools, workplace and communi es. Youth Leadership Academy recognizes students’ talents and challenges them to become eﬀecve and ethical leaders. Anderson Brothers Bank donated $850

to Swamp Fox Chili Cookoﬀ in Marion, held on the grounds of the Old Gym in Marion on Feb. 28.

average more than 500 children within these coun es that are in foster care due to abuse and or neglect.

Anderson Brothers Bank contributed $2,000 to the Historic Marion Run Fest, which was held Feb. 28.

South State Bank South State Bank donated a half bushel basket of fresh pecans and $100 to the Carolina Wildlife Center. Each year, the center takes in nearly 600 squirrels during two ma ng seasons in winter and late summer. Most are orphaned baby squirrels displaced when nests are compromised by weather or tree cu ng, said Jay Coles, execu ve director of the Carolina Wildlife Center.

Anderson Brothers Bank donated $1,500 to Marion Rescue Squad for the purchase of new equipment to be er serve the needs of Marion County residents earlier this year.

CresCom Bank During the past holiday season associaons with CresCom Bank helped raise $1,200 for the Conway-based nonprofit Fostering Hope, an organiza on dedicated toward serving children in foster care throughout Horry, Georgetown, Marion and Dillon coun es. Fostering Hope has a store where the children can come in and shop for clothing, shoes, toys and school supplies at no cost. There are on

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