Much activity in the banking sector during 2013 was aimed at achieving stability – either to gain larger market share or to improve financial position. The year saw continued merger activity, banks’ downsizing of their mortgage staffs and a industry-wide trend toward streamlining branch operations as consumers engage in more online and mobile banking.

Mergers slow down
Fewer banks in the Wilmington market acquired other banks in 2013 than in 2012. Just three mergers had a direct impact on the Cape Fear area.

First Federal, based in Charleston, S.C., announced in February a plan to merge with Columbia, S.C.-based SCBT, and the two institutions spent months managing the transaction. Since the close of the deal in July, officials continue to shape the new organization and consider a new name, which should be announced in early 2014, officials say.

Acquisition of Southport-based Security Savings Bank by Greensboro-based NewBridge Bank was announced in June and finalized in October. Purchase of the troubled Security Savings, which operates six branches in Brunswick County, gives NewBridge a much larger presence in the greater Wilmington market.

Vantage South – formerly Crescent State Bank in the local market before a 2012 merger with Vantage South – closed on its merger with East Carolina Bank (ECU) on April 1. An unsuccessful attempt to raise capital to acquire some assets of Gateway Bank in 2012 left ECU itself in a position to be acquired.

New on the scene
Even as demand for mortgage refinancing began to slow and some mortgage brokers cut payroll, Towne Bank Mortgage announced in April plans to establish a new presence in Wilmington.  

Continued demand for new mortgages in southeastern North Carolina was cited by officials of the Hampton Roads, Va.-based bank as influencing the decision to expand its mortgage division into the Port City.

The Little Bank plans to establish a loan production office in Wilmington as the Kinston-based bank’s first foothold in the market. Since making the announcement in October, the bank has been working to ready the office, which will open in the first quarter of 2014, at 1427 Military Cutoff Road, Suite 210, according to officials.

Two veteran financial advisors in Wilmington are now leading their own firm. Mark Nabell and Scott Winslow, formerly of First Citizens Bank’s Private Wealth Management division, formed Nabell Winslow Investments and Wealth Management, which opened officially Sept. 30.

Changing addresses
Two banks, a credit union and a mortgage brokerage expanded into new office space during the year.

First South Bank’s Wilmington branch completed its transition
from loan production office to full-service bank and moved from Barclay Commons to larger quarters at 1612 Military Cutoff in the fall.

And in early June, Live Oak Bank unveiled its spacious headquarters building on a new campus at 1741 Tiburon Drive.

In August, Gateway Bank Mortgage moved from its Eastwood Road location to a larger and more visible office at 901 Military Cutoff Road.

The Wilmington branch of Self-Help Credit Union opened April 9 in a new location. The branch office purchased office space at 307 S. College Road and moved from smaller and less visible leased quarters at 4710 Oleander Drive. 

In April, Corning Credit Union revealed plans to replace its existing 1,500-square-foot Leland office with a 3,500-square-foot banking center in Leland, prompted by continued member growth in northern Brunswick County. The project broke ground in late spring.

Area credit unions grow
In line with a national trend, area credit unions saw their membership numbers and assets rise in FY 2012-13.

According to a June 19 report from SNL Financial, Raleigh-based State Employees’ Credit Union (SECU) is the country’s second-largest credit union and had the third largest membership increase. It added slightly more than 67,000 new members during its fiscal year ending March 31 – a 3.8 percent growth rate. SECU’s five branches in Wilmington now serve more than 38,000 members, a spokeswoman said.

At the beginning of 2013, SECU became authorized to enter the life insurance business. State insurance commissioner Wayne Goodwin signed the new organization’s official license in December 2012, paving the way for a Jan. 1 launch of the SECU Life Insurance Company.

The following month, SECU’s board of directors announced the launch of a property management subsidiary, SECU*Real Estate (SECU*RE). The new unit’s goal, according to a news release, is to enable the credit union to streamline management of its real estate-owned properties in North Carolina.

Almost all credit unions in the Wilmington market saw their membership grow in the 2012-13 fiscal year, including Piedmont Advantage Credit Union, which acquired Wilmington-based East Coast Credit union in late 2012 and saw its local membership increase from 1,821 in December 2012 to 5,200 by March.

Finance highlights
In late spring, University of North Carolina Wilmington announced
the development of the Seahawk Innovation Fund. The fund’s purpose is to help new ventures bridge the financing chasm between seed money and venture capital.

Fund partners are Tom Looney, Tobin Geatz and Dallas Romanowski. The three will serve without pay initially as they attract investors to the fund, whose goal, according to UNCW officials, is $20 million. Grants are anticipated to be in the $500,000 to $1.5 million range, Looney said.

In April, IronGate Partners formed an affiliation with Raleigh-based Capital Investment, an arrangement that allows it to deal in Real Estate Investment Trusts and securities transactions that involve commissions.

Live Oak Bank software spinoff nCino announced in June it had raised $9 million in Series A capital. During the year, Live Oak Bank also announced its entry into two new small business lending markets: physicians and family entertainment centers. The bank makes Small Business Administration-backed loans in very specific industries.

Market Consulting Mortgage established an office in Raleigh in early September. The office, which hopes to take advantage of brisk home sales in the Triangle area, will be run by Patrick Bayley.

PNC announced in early March that its Financial Services Group’s Eastern Carolinas wealth management team was in place. The team operates from main offices in Wilmington and Raleigh to serve customers in the Triangle as well as in eastern North and South Carolina.