FEDERAL DEPOSIT INSURANCE CORPORATION

WASHINGTON, D.C.

 
)
 
In the Matter of
)
   
)
STIPULATION TO
SOUTHERN COMMUNITY BANK AND
)
THE ISSUANCE OF A CONSENT
TRUST
)
ORDER
WINSTON-SALEM, NORTH CAROLINA
)
   
)
FDIC-10-823b
(Insured State Nonmember Bank)
)
   
)
 

Subject to the acceptance of this STIPULATION TO THE ISSUANCE OF A CONSENT ORDER
(“STIPULATION”) by the Federal Deposit Insurance Corporation (“FDIC”), it is
hereby stipulated and agreed by and between a representative of the Legal
Division of the FDIC, the Commissioner (“Commissioner”) for the State of North
Carolina, State Banking Commission, and Southern Community Bank and Trust,
Winston-Salem, North Carolina (“Bank”), through its board of directors, as
follows.
 
1.           The Bank has been advised of its right to receive a written Notice
of Charges and of Hearing (“Notice”) detailing the unsafe or unsound banking
practices and violations of law and/or regulations alleged to have been
committed by the Bank (and as set forth in the Bank’s Report of Examination
dated as of June 30, 2010) and of its right to a hearing on the alleged charges
under section 8(b)(1) of the Federal Deposit Insurance Act (“Act”), 12 U.S.C. §
1818(b)(1), and the FDIC’s Rules of Practice and Procedure (“Rules”), 12 C.F.R.
Part 308, and has waived those rights.

 
 

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2.           The Bank, solely for the purpose of this proceeding and without
admitting or denying any of the alleged charges of unsafe or unsound banking
practices and/or any violations of law and/or regulations, hereby consents and
agrees to the issuance of a CONSENT ORDER (“ORDER”) by the FDIC and the
Commissioner in the form attached hereto.  The Bank further stipulates and
agrees that such ORDER shall become effective immediately after its issuance by
the FDIC and the Commissioner and be fully enforceable by the FDIC pursuant to
the provisions of section 8(i)(1) of the Act, 12 U.S.C. § 1818(i)(1), and the
Rules, and by the Commissioner pursuant to of N.C. Gen. Stat. § 53-107.1 subject
only to the conditions set forth in paragraph 3 of this STIPULATION.
 
3.           In the event the FDIC accepts this STIPULATION and issues the
ORDER, it is agreed that no action to enforce said ORDER in the United States
District Court will be taken by the FDIC unless the Bank or any
“institution-affiliated party”, as such term is defined in section 3(u) of the
Act, 12 U.S.C. § 1813(u), has violated or is about to violate any provision of
the ORDER.
 
4.           The Bank hereby waives:
 
 
(a)
the receipt of a written Notice;
     

 
(b)
all defenses to the charges to be set forth in the Notice;
     

(c)
a hearing for the purpose of taking evidence regarding the allegations tobe set
forth in the Notice;
     

 
(d)
the filing of Proposed Findings of Fact and Conclusions of Law;
     

 
(e)
a Recommended Decision of an Administrative Law Judge; and
     

 
(f)
exceptions and briefs with respect to such Recommended Decision.

 
Dated:  February 16, 2011
 
FEDERAL DEPOSIT INSURANCE CORPORATION
LEGAL DIVISION

BY:
  /s/ Patrice R. Walker
 
Patrice R. Walker
 
Senior Regional Attorney
 

 
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NORTH CAROLINA STATE BANKING COMMISSION

BY:
     
  /s/ Joseph A. Smith, Jr.
 
Joseph A. Smith, Jr.
 
Commissioner
     
SOUTHERN COMMUNITY BANK AND TRUST,
WINSTON-SALEM, NORTH CAROLINA
   
BY:
     
  /s/ F. Scott Bauer
 
F. Scott Bauer
     
  /s/ Edward T. Brown
 
Edward T. Brown
     
  /s/ James G. Chrysson
 
James G. Chrysson
     
  /s/ James O. Frye
 
James O. Frye
     
  /s/ Matthew G. Gallins
 
Matthew G. Gallins
     
  /s/ Beverly Hubbard Godfrey
 
Beverly Hubbard Godfrey
 

 
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  /s/ Lynn L. Lane
 
Lynn L. Lane
     
  /s/ H. Lee Merritt, Jr.
 
H. Lee Merritt, Jr.
     
  /s/ Stephen L. Robertson
 
Stephen L. Robertson
     
  /s/ W. Samuel Smoak
 
W. Samuel Smoak
     
  /s/ William G. Ward, Sr., MD
 
William G. Ward, Sr., MD
     
BOARD OF DIRECTORS
 

 
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