consentorder.htm


    


     

    FEDERAL
DEPOSIT INSURANCE CORPORATION

     

     

    WASHINGTON,
D.C.

     

     

    


     

    
      	
              In
      the Matter of

            	 
      
	
               

              CAROLINA
      FIRST BANK

              GREENVILLE,
      SOUTH CAROLINA

               

              (INSURED
      STATE NONMEMBER BANK)

            	
               

              CONSENT
      ORDER

              FDIC-10-121b

            


    

     

     

    The
Federal Deposit Insurance Corporation (“FDIC”) is the appropriate Federal
banking agency for Carolina First Bank, Greenville, South Carolina (“Bank”).
under 12 U.S.C. § 1813(q).

     

     

    The Bank,
by and through its duly elected and acting Board of Directors (“Board”), has
executed a “Stipulation to the issuance of a Consent Order” (“STIPULATION”),
dated April 29, 2010, that is accepted by the FDIC and the Commissioner of the
South Carolina Board of Financial Institutions (the “Commissioner”). The
Commissioner may issue an order pursuant to the provisions of S.C. Code Ann. §
34-1-60.

     

     

    With the
STIPULATION, the Bank has consented, without admitting or denying any charges of
unsafe or unsound banking practices or violations of law and/or regulation
relating to weaknesses in capital, asset quality, management, earnings, and
liquidity, to the issuance of this Consent Order (“ORDER”) by the FDIC and the
Commissioner.

     

     

    Having
determined that the requirements for issuance of an order under 12 U.S.C. §
1818(b) and S.C. Code Ann. § 34-1-60 have been satisfied, the FDIC and
the

     

     

    Commissioner
hereby order that:

     

     

    BOARD OF
DIRECTORS

     

     

    1.           (a)           Beginning
with the effective date of this ORDER, the Board shall increase its
participation in the affairs of the Bank, assuming full responsibility for the
approval of sound policies and objectives and for the supervision of all of the
Bank’s activities, consistent with the role and expertise commonly expected for
directors of banks of comparable size.  The Board shall prepare in
advance and follow a detailed written agenda for each meeting, including
consideration of the actions of any committees.  Nothing in the
foregoing sentences shall preclude the Board from considering matters other than
those contained in the agenda.  This participation shall include
meetings to be held no less frequently than monthly at which, at a minimum, the
following areas shall be reviewed and approved: reports of income and expenses;
new, overdue, renewal, insider, charged-off, and recovered loans, including
loan-to-value exceptions; investment activity; operating policies; and
individual committee actions.  Board minutes shall document these
reviews and approvals, including the name of any dissenting
directors.

     

     

    (b)           Within
30 days from the effective date of this ORDER, the Board shall establish a Board
committee (“Directors’ Committee”), consisting of at least four members, to
oversee the Bank’s compliance with the ORDER.  Three of the members of
the Directors’ Committee shall not be officers of the Bank.  The
Directors’ Committee shall receive from Bank management monthly reports
detailing the Bank’s actions with respect to compliance with the
ORDER.  The Directors’ Committee shall present a report detailing the
Bank’s adherence to the ORDER to the Board at each regularly scheduled Board
meeting.  Such report shall be recorded in the appropriate minutes of
the Board’s meeting and shall be retained in the Bank’s
records.  Establishment of this committee does nt in any way diminish
the responsibility of the entire Board to ensure compliance with the provisions
of this ORDER.

     

     

    MANAGEMENT

     

     

    2,           The
Bank shall have and retain qualified management.

     

    (a)           Within
60 days from the effective date of this ORDER, the Board shall:

     

    
      	
              (i)  

            	
              Analyze
      and assess the Bank’s management and staffing needs, addressing those
      specific areas identified in the Joint Report of Examination dated as of
      January 2, 2009 (“Report”) as requiring attention:
  and

            


    

     

    
      	
              (ii)  

            	
              Produce
      a written plan (“written management plan”) which shall address those areas
      identified in the Report, including staffing, management of the areas,
      overall effectiveness, placement in the overall management structure, and
      the scope and timing of any remediation
  activities.

            


    

     

    (b) The
written management plan and any subsequent ORDER thereto shall be submitted to
the Regional Director of the FDIC’s Atlanta Regional Office (“Regional
Director”) and the Commission (collectively, “Supervisory Authorities”) for
review and comment.  No more than 30 days from the receipt of any
comment from the Supervisory Authorities, and after consideration of such
comment, the Board shall approve the written management plan and/or any
subsequent ORDER thereto which approval shall be recorded in the minutes of the
Board.  Thereafter, the Bank and its Bank-affiliated parties shall
implement and follow the written management plan and/or any subsequent
ORDER.

     

    (c) During
the life of this ORDER, the Bank shall notify the Supervisory Authorities in
writing of the resignation or termination of any of the Bank’s directors or
senior executive officers.  Prior to the addition of any individual to
the Board or the employment of any individual as a senior executive officer, the
Bank shall comply with the requirements of Section 32 of the Act, 12 U.S.C. §
1831i,, and Subpart F of Part 303 of the FDIC’s Rules and Regulations, 12 C.F.R.
§§ 303.100-303.104 and any requirement of the State of South Carolina for prior
notification and approval.

     

    (d) While
this ORDER is in effect, the Bank shall comply with the requirements of Part 359
of the FDIC’s Rules and Regulation, 12 C.F.R. Part 359.

     

     

    CAPITAL

     

    3.           (a)           Within
120 days from the effective date of this ORDER, the Bank shall have a Leverage
Ratio of not less than 8 percent and a Total Risk-Based Capital Ratio of not
less than 12 percent.  The Leverage and total Risk-Based Capital
ratios shall be calculated using the definitions contained in Section 325.2 of
the FDIC’S Rules and Regulations, 12 C.F.R. § 325.2.  Thereafter, in
the event the Leverage Ratio falls below 8 percent or the Total Risk-Based
Capital Ratio falls below 12 percent, the Supervisory Authorities should be
notified in writing and capital shall be increased in an amount sufficient to
meet the ratios required by this provision within 30 days.

     

    (b)           The
amount of capital needed to maintain the ratios at the levels required in
paragraph 3(a) shall be in addition to a fully funded allowance for loan and
lease losses (“ALLL”), the adequacy of which shall be satisfactory to the
Supervisory Authorities as determined at subsequent examinations and/or
visitations.

     

    (c)           Within
60 days from the effective date of this ORDER, the Bank shall submit to the
Supervisory Authorities a written capital plan.  Such capital plan
shall detail the steps that the Bank shall take to achieve and maintain the
capital requirements set forth in paragraph 3(a) above.  In developing
the capital plan, the Bank must take into consideration:

     

    
      	
              (i)  

            	
              the
      volume of the Bank’s adversely classified
  assets;

            


    

     

    
      	
              (ii)  

            	
              the
      nature and level of the Banks’ asset
  concentrations;

            


    

     

    
      	
              (iii)  

            	
              the
      adequacy of the Bank’s ALLL;

            


    

     

    
      	
              (iv)  

            	
              the
      anticipated level of retain
earnings;

            


    

     

    
      	
              (v)  

            	
              the
      Bank’s cumulative loss estimates;

            


    

     

    
      	
              (vi)  

            	
              anticipated
      and contingent liquidity needs; and

            


    

     

    
      	
              (vii)  

            	
              the
      source and timing of additional funds to fulfill future capital
      needs.

            


    

     

    (d)           In
addition, the capital plan must include a contingency plan in the event that the
Bank has:

     

    
      	
              (i)  

            	
              failed
      to maintain the minimum capital ratios required by paragraph
      3(a)

            


    

     

    
      	
              (ii)  

            	
              failed
      to submit an acceptable capital plan as required by this paragraph;
      or

            


    

     

    
      	
              (iii)  

            	
              has
      failed to implement or adhere to a capital plan to which the Supervisory
      Authorities have taken no written objection pursuant to this
      paragraph.  Said contingency plan shall include a plan to sell
      or merge the Bank.  The Bank shall implement the contingency
      plan upon written notice from the Regional
  Director.

            


    

     

    (e)           Any
increase in Leverage Ratio and Total Risk-Based Capital necessary to meet the
requirements of paragraph 3 of this ORDDER may be accomplished by the
following:

     

    
      	
              (i)  

            	
              the
      sale of common stock’

            


    

     

    
      	
              (ii)  

            	
              the
      sale of non-cumulative perpetual preferred
  stock;

            


    

     

    
      	
              (iii)  

            	
              the
      direct contribution of cash by the Board,
  shareholders;

            


    

     

    
      	
              (iv)  

            	
              any
      other means acceptable to the Supervisory Authorities;
  or

            


    

     

    
      	
              (v)  

            	
              any
      combination of the above means.

            


    

     

    Any
increase in Leverage Ratio and total Risk-Based Capital necessary to meet the
requirement of paragraph 3 of this ORDER may not be accomplished through a
negative provision to the Bank’s ALLL.

     

    (f) If all or
part of the increase in Leverage Ratio and Total Risk-Based Capital required by
paragraph 3 of this ORDER is accomplished by the sale of securities, the Board
shall adopt and implement a plan for the sale of such additional securities,
including the voting of any shares owned or proxies held or controlled by them
in favor of the plan.  Should the implementation of the plan involve a
public distribution of the Bank’s securities (including a distribution limited
only to the Bank’s existing shareholders), the Bank shall prepare offering
materials fully describing the securities being offered, including an accurate
description of the financial condition of the Bank and the circumstances giving
rise to the offering, and any other materials disclosures necessary to comply
with Federal securities laws.  Prior to the implementation of the plan
and, in any event, not less than 20 days prior to the dissemination of such
materials, the plan and any materials used in the sale of the securities shall
be submitted to the FDIC, Division of Supervision and Consumer Protection,
Accounting and Securities Disclosure Section, 550 17th
Street, N.W., Room F-6066, Washington, D.C. 20429 and to the Commission, South
Carolina Board of Financial Institutions, 1205 Pendleton Street, Suite 305,
Columbia, South Carolina 29201.  Any changes requested to be made in
the plan or materials shall be made prior to their dissemination.  If
the increase in Leverage Ratio and Total Risk-Based Capital is provided by the
sale of non-cumulative perpetual preferred stock, then all terms and condition
of the issue, including but not limited to those terms and conditions relative
to dividend rate and convertibility factor, shall be presented to the
Supervisory Authorities for prior approval.

     

    (g) In
complying with the provisions of paragraph 3 of this ORDER, the Bank shall
provide to any subscriber and/or purchaser of the Bank’s securities, a written
notice of any planned or existing development or other changes, which are
materially different from the information reflected in any offering materials
used in connection with the sale of Bank securities. The written notice required
by this paragraph shall be furnished within 10 days from the date such material
development or change was planned or occurred, whichever is earlier, and shall
be furnished to every subscriber and/or purchaser of the Bank’s securities who
received or was tendered the information contained in the Bank’s original
offering materials.

     

    (h) For the
purposes of this ORDER, the terms “Leverage Ratio”, “Tier 1 capital,” “total
risk-based capital,” and “total assets” shall have, the meanings ascribed to
them in Part 325 of the FDIC Rules and Regulations, 12 C.F.R. §§ 325.2(m),
325.2(y), 325.2(v) and 325.2(x), respectively.

     

     

    LIQUIDITY AND FUNDS
MANAGEMENT POLICY

     

    4.           (a)           Within
30 days from the effective date of this ORDER, the Bank shall adopt and
implement a written plan addressing liquidity, contingency funding, and asset
liability management.  A copy of the plan shall be submitted to the
Supervisory Authorities upon its completion for review and
comment.  Within 30 days from the receipt of any comments from the
Supervisory Authorities, the Bank shall incorporate those recommended
changes.  Thereafter, the Bank shall implement and follow the plan.
Quarterly during the life of this ORDER, the Bank shall review the plan for
adequacy and, based upon such review, shall make appropriate revisions to the
plan that are necessary to strengthen funds management procedures and maintain
adequate provisions to meet the Bank’s liquidity needs.

     

     

    REDUCTION OF CRITICIZED
ASSETS

     

    5.           (a)           Within
60 days from the effective date of this ORDER, the Bank shall formulate a
written plan to reduce the Bank’s risk exposure in relationships with assets in
excess of $5,000,000 criticized as “Substandard”, “Doubtful”, or “Special
Mention” in the Report.  For purposes of this paragraph, “reduce”
means to collect, charge off, or improve the quality of the asset so as to
warrant its removal from adverse criticism by Supervisory
Authorities.  In development of the plan mandated by this paragraph,
the Bank shall, at a minimum, and with respect to each adversely criticized loan
or lease, review, analyze, and document the financial position of the borrower
including the source of repayment, repayment ability, and alternative repayment
sources, as well as the value and accessibility of any pledged or assigned
collateral, and any possible actions to improve the Bank’s collateral
position.

     

    (b)           In
addition, the written plan mandated by this paragraph shall also include, but
not be limited to, the following:

     

    
      	
              (i)  

            	
              a
      schedule for reducing the outstanding dollar amount of each adversely
      criticized asset, including timeframes for achieving the reduced dollar
      amounts (at a minimum, the schedule for each adversely criticized asset
      must show its expected dollar balance on a quarterly
    basis);

            


    

     

    
      	
              (ii)  

            	
              a
      specific actions plan intended to reduce the Bank’s risk exposure in each
      criticized asset;

            


    

     

    
      	
              (iii)  

            	
              a
      schedule showing, on a quarterly basis, the expected consolidated balance
      of all adversely criticized assets, and the ratio of the consolidated
      balance to the Bank’s projected Tier 1 capital plus the
    ALLL:

            


    

     

    
      	
              (iv)  

            	
              a
      provision for the Bank’s submission of monthly written progress report to
      its Board; and

            


    

     

    
      	
              (v)  

            	
              a
      provision mandating Board review of the progress reports, with a notation
      of the review recorded in the Board
minutes.

            


    

     

    (c) The plan
mandated by this paragraph shall further require a reduction in the aggregate
balance of assets criticized as “Substandard” and “Doubtful” in the Report in
accordance with the following schedule.  For purposes of this
paragraph, “number of days” means number of days from the effective date of the
ORDER.

     

    
      	
              (i)  

            	
              within
      180 days , a reduction of fifteen percent (15%) in the balance of assets
      criticized “Substandard” of
“Doubtful.”

            


    

     

    
      	
              (ii)  

            	
              within
      360 days, a reduction of thirty-five percent (35%) in the balance of
      assets criticized “Substandard” or
“Doubtful.”

            


    

     

    
      	
              (iii)  

            	
              within
      540 days, a reduction of sixty percent (60%) in the balance of assets
      criticized “Substandard” or
“Doubtful.”

            


    

     

    
      	
              (iv)  

            	
              within
      720 days, a reduction of seventy-five (75%) in the balance of assets
      criticized “Substandard” or
“Doubtful.”

            


    

     

    (d) The
requirements of this paragraph do not represent standards for future operations
of the Bank. Following compliance with the above reduction schedule, the Bank
shall continue to reduce the total volume of adversely criticized
assets.

     

    (e) Within 60
days from the effective date of this ORDER, the Bank shall submit the written
reduction plan to the Supervisory Authorities for review and comment. Within 30
days from receipt of any comment from the Supervisory Authorities, and after due
consideration of any recommended changes, the Bank shall approve the plan, which
approval shall be recorded in the minutes of the meeting of the Board.
Thereafter, the Bank shall implement and fully comply with the plan. Such plans
shall be monitored and progress reports thereon shall be submitted to the
Supervisory Authorities at 90–day intervals concurrently with the other
reporting requirements set forth in this ORDER.

     

     

    CHARGE-OFF

     

     

    6.          (a)           Within
30 days from the effective date of the ORDER, the Bank shall eliminate from its
books, by charge-off or collection, 50 percent of those assets classified
“Doubtful” in the Report that have not been previously collected or charged-off.
If an asset is classified “Doubtful”, the Bank may, in the alternative, charge
off the amount that is considered uncollectible in accordance with the Bank’s
written analysis of loan or lease impairment. Such analysis shall be
accomplished in accordance with generally accepted accounting principles and the
Federal Financial Institutions Examination Council’s Instructions for the
Reports of Condition and Income, Interagency Statements of Policy on the ALLL,
and other applicable regulatory guidance that addresses the adequacy of the
Bank’s ALLL. Elimination of any of these assets through proceeds of other loans
made by the Bank is not considered collection for purposes of this
paragraph.

     

    (b)           Additionally,
while this ORDER remains in effect, the Bank shall, within 30 days from the
receipt of any official Report of Examination of the Bank from the FDIC or the
Commissioner, eliminate from its books, by collection, charge-off, or other
proper entries, the remaining balance of any asset classified “Loss” and 50
percent of the those classified “Doubtful” unless otherwise approved in writing
by the Supervisory Authorities.

     

     

    ALLOWANCE FOR LOAN AND LEASE
LOSSES

     

    
      	
                 
      7.  

            	
              Within
      60 days from the effective date of the ORDER, the Board shall review the
      ALLL and establish a comprehensive policy for determining the adequacy of
      the ALLL. For the purpose of this determination, the adequacy of the ALLL
      shall be determined after the charge-off of all loans or other items
      classified “Loss” and all charge-offs made in accordance with paragraph 6
      of the ORDER. The policy shall provide for a review of the ALLL at least
      once each calendar quarter. Said review shall be completed in time to
      properly report the ALLL in the quarterly Reports of Condition and of
      Income. The review shall focus on the results of the Bank’s internal loan
      review, loan and lease loss experience, trends of delinquent and
      non-accrual loans, and estimate of potential loss exposure of significant
      credits, concentrations of credit, and present and prospective economic
      conditions. A deficiency in the ALLL shall be remedied in the calendar
      quarter it is discovered, prior to submitting the Reports of Condition and
      Income, by a charge to current operating earnings. The minutes of the
      Board meeting at which such review is undertaken shall indicate the
      results of the review. The Bank’s policy for determining the adequacy of
      the ALLL and its implementation shall be satisfactory to the Supervisory
      Authorities.

            


    

     

     

    REDUCTION OF CONCENTRATIONS
OF CREDIT

     

    8. Within 30
days from the effective date of the ORDER, the Bank shall continue to review and
update its risk segmentation analysis with respect to the Concentration of
Credit identified in the Report. Concentrations should be identified by product
type, geographic distribution, underlying collateral or other asset groups,
which are considered economically related and in the aggregate represent a large
portion of the Bank’s Tier 1 capital.  The Bank shall provide a copy
of its updated analysis to the Supervisory Authorities. The Bank shall develop a
plan to reduce any segment of the portfolio which the Supervisory Authorities
deem to be an undue concentration of credit in relation to the Bank’s Tier 1
capital. The plan and its implementation shall be in a form and manner
acceptable to the Supervisory Authorities.

     

    RESTRICTIONS ON ADVANCES TO
ADVERSELY CLASSIFIED  BORROWERS

     

    9.          (a)           As
of the effective date of this ORDER, the Bank shall not extend, directly or
indirectly, any additional credit to, or for the benefit of, any borrower who
has a loan or other extension of credit from the Bank that has been charged off
or classified, in whole or in part "Loss" or "Doubtful" and is uncollected. The
requirements of this paragraph shall not prohibit the Bank from renewing (after
collection in cash of interest due from the borrower) any credit already
extended to any borrower.

     

    (b)           Additionally,
during the life of this ORDER, the Bank shall not extend, directly or
indirectly, any additional credit to, or for the benefit of, any borrower who
has a loan or other extension of credit from the Bank that has been classified,
in whole or part, "Substandard" or is listed for "Special Mention" and is
uncollected

     

    (c)           Paragraph
9(b) shall not apply if the Bank’s failure to extend further credit to a
particular borrower would be detrimental to the best interests of the Bank.
Prior to the extension of any additional credit pursuant to this paragraph, in
the form of a further advance of funds, such additional credit shall be approved
by a majority of the Board or a designated committee thereof, who shall certify
in writing:

     

    (i) why
the failure of the Bank to extend such credit would be detrimental to the best
interests of the Bank;

     

    (ii) that
the Bank's position would be improved thereby; and

     

    (iii) how
the Bank's position would be improved.

     

     

    (d) The
signed certification shall be made a part of the minutes of the Board or its
designated committee and a copy of the signed certification shall be retained in
the borrower's credit file.

     

     

    LENDING AND COLLECTION
POLICIES

     

    10.           (a)           Within
90 days from the effective date of this ORDER, the Bank shall revise, adopt, and
implement written lending and collection policies to address all underwriting
and credit administration criticism noted in the Report. In addition, the Bank
shall obtain adequate and current documentation for all loans in the Bank's loan
portfolio.  Such policy and its implementation shall be in a form and
manner acceptable to the Supervisory Authorities.

     

    (b)  The
Board shall adopt procedures whereby officer compliance with the revised loan
policy is monitored and responsibility for exceptions thereto assigned. The
procedures adopted shall be reflected in the minutes of a Board meeting at which
all members are present and the vote of each is noted.

     

     

    INTERNAL LOAN
REVIEW

     

    11.           Within
90 days of the effective date of this ORDER, the Bank shall adopt an effective
internal loan review and grading process to provide for the periodic review of
the Bank's loan portfolio in order to identify and categorize the Bank's loans,
and other extensions of credit which are carried on the Bank's books as loans,
on the basis of credit quality. Such system and its implementation shall be
satisfactory to the Supervisory Authorities as determined at their initial
review and at subsequent examinations and/or visitations.

     

     

    WRITTEN STRATEGIC
PLAN

     

    12.           Within
90 days from the effective date of this ORDER, the Bank shall prepare and submit
to the Supervisory Authorities its written strategic plan consisting of
long-term goals designed to improve the condition of the Bank and its viability
and strategies for achieving those goals. At a minimum the plan shall establish
objectives for the Bank's earnings performance, growth, balance sheet mix,
liability structure, capital adequacy, and reduction of nonperforming and
underperforming assets, together with strategies for achieving those objectives.
The plan shall also identify capital, funding, managerial and other resources
needed to accomplish its objectives. The plan shall be in a form and manner
acceptable to the Supervisory Authorities, but at a minimum shall cover three
years and provide specific objectives for asset growth, market focus, earnings
projections, capital needs, and liquidity position.

     

     

    PLAN TO IMPROVE
EARNINGS/BUDGET

     

    13.           (a)           Within
90 days from the effective date of this ORDER, the Bank shall formulate and
fully implement a written plan and a comprehensive budget for all categories of
income and expense for the calendar year ending 2010. The plan and budget shall
include formal goals and strategies, consistent with sound banking practices and
taking into account the Bank's other written policies, to improve the Bank's net
interest margin, increase interest income, reduce discretionary expenses, and
improve and sustain earnings of the Bank.  The plan shall include a
description of the operating assumptions that form the basis for and adequately
support major projected income and expense components. Thereafter, the Bank
shall formulate such a plan and budget by November 30 preceding each subsequent
budget year.

     

    (b)  The
plan and budget and any subsequent modification thereto shall be submitted to
the Supervisory Authorities for review and comment. Within 30 days after the
receipt of any comment from the Supervisory Authorities, the Board shall approve
the plan and budget or subsequent modification thereto, which approval shall be
recorded in the minutes of the meeting of the Board.

     

    (c)           Following
the end of each calendar quarter, the Board shall evaluate the Bank's actual
performance in relation to the plan and budget and shall record the results of
the evaluation, and any actions taken by the Bank, in the minutes of the Board
meeting at which such evaluation is undertaken.

     

     

    BROKERED
DEPOSITS

     

    14.           (a)           Throughout
the effective life of this ORDER, the Bank shall not accept, renew, rollover any
brokered deposit, as defined by 12 C.F.R. § 337.6(a)(2), unless it is in
compliance with the requirements of 12 C.F.R. § 337.6(b), governing solicitation
and acceptance of brokered deposits by insured depository
institutions

     

           
(b)     The
Bank shall comply with the restrictions on the effective yields on deposits as
described in 12 C.F.R. § 337.6.

     

     

    RESTRICTIONS ON CERTAIN
PAYMENTS

     

    15.           (a)           While
this ORDER is in effect, the Bank shall not declare or pay dividends or bonuses
without the prior written approval of the Supervisory
Authorities.  All requests for prior approval shall be received at
least 30 days prior to the proposed dividend or bonus payment declaration date
(at least 5 days with respect to any request filed within the first 30 days
after the effective date of this ORDER) and shall contain, but not be limited
to, an analysis of the impact such dividend or bonus payment would have on the
Bank's capital, income, and/or liquidity positions.

     

    (b)           During
the term of this ORDER, the Bank shall not make any distributions of interest,
principal or other sums on subordinated debentures, if any, without the prior
approval of the Supervisory Authorities.

     

     

    ASSET GROWTH
LIMITATIONS

     

    16.           During
the life of this ORDER, the Bank shall limit asset growth to no more than ten
percent (l0%) per calendar year and in no event shall asset growth result in
noncompliance with the capital maintenance provisions of this ORDER without
receiving prior written approval of the Supervisory Authorities.

     

     

    PROGRESS
REPORTS

     

    17.           Within
30 days from the end of the first quarter following the effective date of this
ORDER, and within 30 days of the end of each quarter thereafter, the Bank shall
furnish written progress reports to the Supervisory Authorities detailing the
form and manner of any actions taken to secure compliance with this ORDER and
the results thereof.  Such reports shall include a copy of the Bank's
Reports of Condition and of Income. Such reports may be discontinued when the
corrections required by this ORDER have been accomplished and the Supervisory
Authorities have released the Bank in writing from making further
reports.  All progress reports and other written responses to this
ORDER shall be reviewed by the Board and made a part of the minutes of the
appropriate Board meeting.

     

     

    DISCLOSURE

     

    18.  Following
the issuance of this ORDER, the Bank shall provide to its shareholder or
otherwise furnish a description of this ORDER in conjunction with the Bank's
next shareholder communication or in conjunction with its notice or proxy
statement preceding the Bank's next shareholder meeting. The description shall
fully describe the ORDER in all material respects.  The description
and any accompanying communication, statement or notice shall be sent to the
FDIC, Division of Supervision and Consumer Protection, Accounting and Securities
Disclosure Section, 550 17th
Street, N.W., Room F-6066, Washington, D.C. 20429 and to the Commissioner, South
Carolina Board of Financial Institutions, 1205 Pendleton Street, Suite 305,
Columbia, South Carolina, 29201, to review at least twenty (20) days prior to
dissemination to shareholders. The Bank shall make any changes required by the
Supervisory Authorities prior to dissemination of the description,
communication, notice, or statement.

     

    The
provisions of this ORDER shall not bar, estop, or otherwise prevent the FDIC,
the Commissioner, or any other federal or state agency or department from taking
any other action against the Bank or any of the Bank’s current or former
institution-affiliated parties.

     

    This
ORDER shall be effective on the date of issuance.

     

    The
provisions of this ORDER shall be binding upon the Bank, its
institution-affiliated parties, and any successors and assigns
thereof.

     

    The
provisions of this ORDER shall remain effective and enforceable except to the
extent that and until such time as any provision has been modified, terminated,
suspended, or set aside in writing.

     

    Issued
Pursuant to Delegated Authority.

     

    Dated
this 30th day
of April, 2010.

     

    


     

    /s/  Doreen R.
Eberley                                           

    Doreen R. Eberley

    Acting Regional
Director

    Atlanta Region

    Federal Deposit Insurance
Corporation

    


    The
Commissioner of the South Carolina Board of Financial Institutions having duly
approved the foregoing ORDER, and the Bank, through its Board, agree that the
issuance of the said ORDER by the Federal Deposit Insurance Corporation shall be
binding as between the Bank and the Commissioner to the same degree and legal
effort that such ORDER would be binding on the Bank if the Commissioner had
issued a separate ORDER that included and incorporated all of the provisions of
the foregoing ORDER pursuant to S.C. Code Ann. § 34-1-60.

     

    Dated
This 30th day
of April, 2010

     

    


     

    /s/  Louie A.
Jacobs                                

    Louie A. Jacobs

    Commissioner

    South Carolina Board
of

    Financial
Institutions