The Banking Industry in SC

[Spartan]

I was reading one of my South Carolina history books last night and I came across the section about SCNB. I didn't realize how significant that institution was to the history of this state. It's a shame that a storied institution like that could not remain in South Carolina.

[krazeeboi]

I didn't realize that Carolina First's assets had dwindled to about $12 billion shortly before they were acquired. I think at their peak, they had around $30 billion in assets. It will be interesting what the new federal financial regulations coming down the pike will mean for the future growth potential of banks.

[CorgiMatt]

They've lost money every year since about 1998 if I read correctly the other day. I could be wrong about that, but at any rate their financial picture had been heading down hill for quite some time.

[goodbye]

Actually 2008 sounds more accurate. They were quite strong until the global financial crisis, which unfortunately happened almost instantly after they publicly announced plans to expand into a new headquarters. They have been losing hundreds of millions in worth virtually every quarter for nearly two years now -- 9 straight quarters to be precise.

[goodbye]

By the way, they took a significant hit when the real estate market collapsed, especially in Florida.

[krazeeboi]

Two more South Carolina banks — First National Bank of the South of Spartanburg and Woodlands Bank of Bluffton — were seized Friday by federal regulators. Now three state-based banks have failed this year since Beach First of Myrtle Beach was shut down in April (I'm guessing that The South Financial Group doesn't count yet, since shareholders have not yet officially approved its acquisition by TD Bank). First National was bought Friday by a new Charlotte bank, NAFH National Bank, while Bank of the Ozarks of Little Rock, Ark., took over Woodlands. First national has 13 branches in six counties statewide; Woodlands has eight branches in South Carolina, Alabama, and Georgia and a loan office in Florida.

[krazeeboi]

Pretty big deal for the banking industry in SC:

 

SCBT said Wednesday it will acquire First Financial Holdings, owner of Charleston’s second-biggest bank, in a deal that is likely to bring up to 1,500 jobs to the Midlands and the Lowcountry over the next five to seven years.

 

The combined bank will be headquartered in Columbia. When the deal closes in the fall, it will be the fifth largest operating bank in South Carolina, based on deposits, and the 14th largest in the Southeast, officials said. The deal also will give SCBT a strong presence along the S.C. coast – an area where it had been lacking.

 

With the newest merger, SCBT is in the top 5 for market share in South Carolina’s major markets, Hill told The State after the analyst call. Looking forward, SCBT wants to grow its market share in Georgia and North Carolina, where it already has a presence, and possibly enter Virginia, he said.

 

Wednesday’s merger will result in a combined 148 S.C. bank branches, the banks said, with only about 10 percent overlapping. That means the banks would expect around 15 branches that are in close proximity eventually to close. Most of the job losses as a result of the closures likely could be handled through attrition, Hill said.

 

But as the bank grows its assets to a projected $20 billion from its current $8.3 billion over the next five to seven years, more support jobs will be added, Hill said. He anticipates the bank will add 1,000 to 1,500 jobs at support centers in Charleston, Columbia and Orangeburg, where SCBT has its roots.

[GvilleSC]

First Citizens is no longer SC-based. It's sad to see another one who called SC home bite the dust.

[krazeeboi]

First Citizens is no longer SC-based. It's sad to see another one who called SC home bite the dust.

 

And acquired by an NC-based bank at that. Oh well, it seems that with the probable loss of headquarter functions and the addition of new jobs from the SCBT-First Financial merger last year, it will be a wash for Columbia in terms of net banking jobs.