Improved finances at Greer State Bank, Independence National Bank help clear restrictions
Two Upstate banks have improved their financial conditions and are no longer under the microscopic eye of banking regulators. Greer State Bank received notice last week that the Federal Reserve Bank had lifted its oversight, and Independence National Bank received notice from the Office of the Comptroller of Currency that the consent order against it had been lifted.
Greer State Bank (GSB) and its holding company, Greer Bancshares Inc., received notice from the Federal Reserve Bank of Richmond on June 2 that the Memorandum of Understanding (MOU) between GSB and the Federal Reserve Bank of Richmond had been terminated effective May 30, 2014, according to a filing with the Securities and Exchange Commission. The MOU had been in effect since May 29, 2013.
The MOU required GSB, among other directives, to preserve its cash; obtain the written consent of supervisory authorities prior to paying any dividends with respect to its common or preferred stock or trust preferred securities, purchasing or redeeming any stock shares or incurring, increasing or guaranteeing any debt; and submit quarterly reports to the Federal Reserve Bank of Richmond regarding the company’s actions to comply with the requirements of the MOU.
GSB reported an 80 percent net income increase in the first quarter of 2014 compared to the same quarter of the previous year. Net income rose to $1,153,000 from $641,000 a year ago.
In March the company announced that it had repurchased $3.15 million of its TARP preferred stock from the U.S. Treasury.
Independence National Bank was put under a consent order Nov. 14, 2011, by the Office of the Comptroller of Currency. The bank was notified last week the enforcement action was lifted effective June 4.
“This is a compelling example of willpower,” said Larry Miller, president and CEO of Independence National Bank. “To have survived some fairly tough economic conditions is pretty incredible. It is welcomed news because it represents very positive feedback from regulators that bank management is moving the bank in a position direction.”
Now that the bank has been “restored to a safe and sound condition by regulators,” Miller says that INB will now be able to pursue “growth initiatives and enhance its infrastructure,” such as lending and mobile banking that it couldn’t do while under the consent order.
