Local customers of First Federal likely won’t notice it, but First Federal is changing its charter. The financial institution, headquartered in Charleston, SC, has been a savings and loan association since its founding in 1934; now it is becoming a Federal Reserve member bank.

“Our customers will see no change at all,” said R. Wayne Hall, president and CEO of First Financial Holdings, Inc., the parent company of First Federal. “The real change is in the regulations that govern us, and in the regulator.”

Hall explained that, with the advent of the Dodd-Frank Act, the office of the Thrift Supervisor was eliminated and all remaining savings and loan institutions were under the purview of the Office of the Comptroller of the Currency (better known as the OCC). No new thrift charters are being awarded.

The transition was an ideal time for First Federal to seek official bank status. Otherwise, said Hall, it’s business as usual: the institution will continue to offer commercial and consumer banking products and services. First Federal has assets of about $2.4 billion; it has the sixth-largest market share in Wilmington and operates 10 offices here.

Under its new regulator, the Federal Reserve, First Federal is planning long-term growth through organic means as well as through acquisitions that make financial sense. The new bank’s geographic footprint, which now extends along the coast from Wilmington south to Hilton Head Island and also includes Florence, will likely expand somewhat.

“We like the Carolinas in general,” he said. “We will look for opportunities to diversify our markets to cover the Carolinas.”

SBA veteran joins Live Oak Bank

Wilmington-based Live Oak Bank, which specializes in making SBA loans, has named a former Small Business Administration manager as its general manager.
Steve Smits, former associate administrator for the SBA’s Office of Capital Access, joined Live Oak Bank February 6. In his tenure with the SBA, Smits oversaw the agency’s programs and operations that allowed for the expansion of funds across more industries, providing financial assistance to more small business owners and entrepreneurs. He also oversaw agency reforms aimed at making the SBA more responsive to both borrowers and lenders, including the implementation of provisions to the Small Business Jobs Act.
Prior to joining the SBA, Smits managed SBA loan operations and portfolios for prominent financial institutions such as Quadrant Financial, PNC Bank, FCNB Bank of Rockville, MD and Mid-Atlantic Financial Partners. He has more than 20 years’ experience providing financial assistance to small business owners.
“We are thrilled to bring on one of the top SBA experts in the country,” stated Chip Mahan, Live Oak Bank’s CEO. “His wealth of experience in both small business lending and SBA programs will be a great asset as we continue to build out the Live Oak platform.”
Live Oak Bank was founded to provide small business loans that enable professionals to start or expand their business. The bank originally began lending to veterinarians, and has since expanded to dentists, independent pharmacists, and funeral home owners nationwide. Aside from acquisitions and refinancing, Live Oak’s lenders specialize in real estate loans and ground-up construction projects. For information, visit www.liveoakbank.com.