FDIC Lifts Consent Order Against Greer State Bank

Improved financial performance at Greer State Bank has led federal and state regulators to ease oversight of the bank, which like many financial institutions saw its fortunes fall amidst the recent recession.

The state-chartered bank reported that the FDIC and state banking regulators have lifted a consent order issued in 2011 requiring the bank to improve its financial performance by hitting certain benchmarks aimed at boosting its capital position and reducing its level of bad loans.

The bank has improved its capital position by bringing its Tier 1 capital ratio to 9.08 percent and its total risk-weighted capital ratio to 15.14 percent as of December 31, 2012.  The consent order required the bank to maintain a Tier 1 capital ratio of at least 8 percent and a total risk-weighted capital ratio of at least 10 percent. 

Significant improvements have been made in earnings performance with a reversal of losses for several consecutive profitable quarters, the bank said. The company reported a net income of $4,186,000 for 2012 as compared to a $2,142,000 net loss for the prior year.  

“These corrective actions reflect positively on the bank and our entire team is to be commended for their outstanding effort and hard work to achieve these improvements,” said George W. Burdette, President and CEO of Greer Bancshares Inc. and Greer State Bank, in a news release.

“The past few years have been challenging for many businesses and consumers," he added. "With the accomplishments we have made, we feel this improves our market position as we continue to provide the financial solutions needed by the local and surrounding communities now and in the future.”

Greer State Bank maintains three branches in Greer, and one in Taylors.