More...
The Scoop: Send us stories and pictures of local injustices or corruption.
Special Reports: Read the Upstate's best investigative reporting, plus web-only extras.
RSS: Add Journal Watchdog to your feeds.
Palmetto leader retires
Published: August 13, 2009, 10:57 a.m.
Leon Patterson and Paul “Bill” Stringer joined the Army the same day, trained together, flew to Vietnam together, served together and flew home together.
Then, they worked side by side for 40 years to transform The Palmetto Bank from a small rural bank in Laurens that squeaked through the Great Depression to become a major financial player in Upstate with 29 branches.
On June 30, Stringer, 65, retired as chairman and chief executive officer of the bank and president and chief operating officer of its holding company, Palmetto Bancshares Inc. Patterson remains as chairman and chief executive officer of the holding company.
“I’ve had my dream job for 40 years. I’ve had my wife for 44 years and she’s been ill, and my first priority is to my family,” Stringer said.
During the Vietnam War, they served in the intelligence detachment of the 9th Infantry Division. Patterson was captain and Stringer was his lieutenant.
After Patterson and Stringer left Vietnam on the same transport in 1967, Patterson returned to Laurens to join his father Dwight, who was president of Palmetto, and Stringer went to Memphis to join Leader Financial.
Two years later, Stringer accepted Patterson’s invitation to join him and his father at Palmetto.
“Leon was the thinker, and I was the shoe to pavement guy,” said Stringer, who talked of his years beating the streets in Upstate towns to build relationships, add depositors, make loans and spread branches.
Palmetto Bank was founded in 1906 in Laurens to loan to the agriculture and merchant community, said Patterson, who succeeded his father Dwight.
Dwight Patterson joined Palmetto in 1931 and it was the only bank of five in Laurens to reopen after the bank holiday of 1933.
Today, like every bank in America, Palmetto is confronted with the worst economic downturn since then. While it has remained profitable, Palmetto has experienced a drop in its portfolio of residential real estate and commercial loans.
Recently, the corporate staff moved into a new $13.7-million building in downtown Greenville; the authorized number of common shares was increased from 10 million to 25 million; the bylaws were altered to make public trading more accessible; and the dividend was cut from 20 to 6 cents a share in the first quarter and totally eliminated for the second. It will be the first time in 103 years Palmetto has not paid a dividend.
The bank also announced plans to cut $1 million in expenses without layoffs.
To replace Stringer, Palmetto Board of Directors elevated Samuel L. Erwin, who had been hired earlier in the year as senior executive vice president. Erwin, 41, has been in banking since his graduation from Clemson in 1990, most recently as CEO of Community Bankshares in Orangeburg.
Lee Dixon, 43, who had joined Palmetto as executive vice president from PricewaterhouseCoopers, was named chief operating officer of the bank and of the holding company.
Patterson, 68, remains as CEO and chairman of the holding company and added chairmanship of the bank. Patterson said he would step down as CEO on Jan. 1. Andy Douglas, 57, became vice chairman for retail banking.
Erwin said he finds it “refreshing to come to a company that has such wonderful traditions, but a company and a board that also is open to change, if that is necessary.”
Erwin said his immediate focus is increasing the bank’s liquidity and capital to make sure it can manage any further pending losses from the collapse of the residential and commercial mortgage market and to prepare the bank for opportunities, including possible acquisitions, once the economy improves.
“I believe there will be consolidation, and I hope we’ll be part of it,” Erwin said.
The steps the company has taken to increase authorized common shares to 25 million – 6.9 million shares were outstanding of the 10 million authorized before the change – improving risk management and the cost-cutting efficiencies are part of the company’s strategy to put more cash on the books, he said.
He also said the board may try again to get shareholder approval to sell one million preferred shares. Shareholders rejected that proposal at the company’s annual meeting May 19.
“What we need to have as a board and as a management team is the ultimate ability to raise capital when we need it,” Erwin said. “Preferred stock is a favored way for community banks to raise capital in this environment.”
Add this page to your favorite Social Bookmarking websites
| Comments |
|
3.26 Copyright (C) 2008 Compojoom.com / Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."
It's the well-founded rumors, the snippets heard on the street - all the info that's got the business world talking.
