WASHINGTON, D.C. – U.S. Senator David Perdue (R-GA) and 17 members on the Senate Banking Committee have drafted a bipartisan proposal to roll back significant portions of the Dodd-Frank Act, providing regulatory relief for Georgia’s community banks, credit unions, mid-sized banks, regional banks, and custody banks, none of whom contributed to the financial crisis of 2008. The proposal also improves important consumer protections, particularly for veterans, senior citizens, and victims of fraud.
“This is a huge win for our rural communities, small businesses, and the banks supporting them,” said Senator David Perdue. “This proposal will improve access to capital for small businesses, particularly in Georgia’s rural communities who have struggled with overregulation. In addition to this proposal, there is still work to be done. We will continue working with Secretary Mnuchin and the Trump Administration to eliminate even more regulations for consumers and business.”
“We appreciate the hard work of Senator David Perdue on behalf of the bankers and consumers in Georgia,” said Joe Brannen, President & CEO of the Georgia Bankers Association. “We are more hopeful that true relief can be accomplished in the near future so that Georgia bankers can continue to serve their communities in even more meaningful ways.”
Last spring, the Senate Banking Committee issued a request for legislative proposals from stakeholders, companies, and consumers aimed at creating economic growth. The committee then held a series of hearings exploring these ideas and has been drafting this proposal since that time. Democrats agreed that significant regulations of Dodd-Frank were negatively impacting local economics across the nation and joined Republicans in drafting this proposal.
Three key bills sponsored by Senator Perdue are included in this agreement: the Reciprocal Deposits Bill, the Portfolio Lending and Mortgage Access Act, and the PROTECT Act, which simplifies the credit freezing process. View the proposal’s text here and a summary here.
Highlights of the bipartisan package include:
- Improves consumer access to mortgage credit;
- Provides regulatory relief for small financial institutions and protects consumer access to credit;
- Provides specific protections for veterans, consumers and homeowners; and
- Tailors regulations for banks to better reflect their business models.
According to a recent release by South State Bank, a definitive agreement has been signed with Park Sterling Corporation, holding company for Park Sterling Bank.
The release also states, “Combining the two companies will create a $14.5 billion in assets franchise operating throughout the Carolinas, Virginia and Georgia.”
While both boards have reportedly approved the merger unanimously, the merger will actually begin transitioning in the fourth quarter of 2017 and continue with systems conversions into the first quarter of 2018 after approvals by regulatory boards and shareholders. At that time, Park Sterling Corporation will be merged into South State Corporation, and Park Sterling’s bank subsidiary, Park Sterling Bank, will be merged into South State’s bank subsidiary, South State Bank.
James C. Cherry, CEO of Park Sterling Corporation, commented on the merger stating, “Our team is proud to be partnering with South State to create what we believe will come to be recognized as the preeminent regional community banking franchise in the Southeast. This combination will substantially fulfill our vision of truly becoming big enough to have the talent and services necessary to help customers achieve their financial aspirations while still remaining small enough and passionate enough to care that they do.”
After the companies merge, Cherry will be appointed to the combined company’s board of directors in addition to another individual to be mutually agreed upon and named at a later date.
As of now, Park Sterling Bank has over 50 branches across North Carolina, South Carolina, Virginia, and Georgia. According to South State’s release, “under the terms of the agreement, shareholders of Park Sterling Corporation will receive 0.14 shares of South State common stock for each share of Park Sterling common stock. The aggregate consideration is valued at approximately $690.8 million in the aggregate, based on 53,112,726 shares of Park Sterling common stock outstanding as of March 31, 2017 and on South State’s April 26, 2017 closing stock price of $91.90.”