Palmetto Bancshares yesterday announced that its wholly-owned banking subsidiary, The Palmetto Bank, received notification from the Federal Deposit Insurance Corporation and the South Carolina State Board of Financial Institutions that the Consent Order the Bank had been operating under since June 2010 was terminated effective January 30, 2013.
“Termination of this regulatory agreement is a fitting start to 2013 for The Palmetto Bank,” said Samuel L. Erwin, President and Chief Executive Officer of the Bank. “This positive action by the banking regulators is further confirmation that the execution of our Strategic Plan is yielding the desired results.” He added “Over the past year, we improved the electronic delivery of our banking services to enhance our clients’ experience, introduced expanded products and services such as our Small Business Administration lending, Corporate Banking and e-Treasury services, and returned to quarterly profitability starting in the third quarter. We are excited to begin 2013 with positive momentum to continue the rich heritage and long legacy of our 106 year old institution.”
Although the Consent Order has been terminated, certain regulatory requirements and restrictions remain, including requirements to continue to improve credit quality and earnings, restriction prohibiting dividend payments without prior approval from the Supervisory Authorities, and the maintenance of a specified leverage capital ratio.
Headquartered in Greenville, South Carolina, The Palmetto Bank is a 106-year old independent state chartered commercial bank and is the fourth largest banking institution headquartered in South Carolina. The bank began in Laurens and continues to operate banking locations in Laurens and Clinton.