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.


    
      
         


      

      
         


        
          

        

      

      
         


      

    


    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

              	 
      


      

    


    
      
         


      

      
        2

        
          

        

      

      
         


      

    


    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

                                          	 
      


                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    


    
      
         


      

      
        3

        
          

        

      

      
         


      

    

    


    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                      /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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