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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported): August 16, 2010
PEOPLES BANCORPORATION, INC.
Incorporated under the Commission File No. 000-20616 I.R.S. Employer
laws of South Carolina Identification No.
57-09581843
1818 East Main Street
Easley, South Carolina 29640
Telephone: (864) 859-2265
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act (17 CFR 240.13e-4(c))
Section 1 - Registrant's Business and Operations
Item 1.01 Entry into a Material Definitive Agreement
On August 16, 2010, The Peoples National Bank, the largest of
Registrant's three bank subsidiaries, entered into a formal agreement with the
Office of the Comptroller of the Currency (the "OCC") for the bank to take
various actions with respect to the operation of the bank. The actions include:
(a) creation of a committee of the bank's board of directors to monitor
compliance with the agreement and make quarterly reports to the board
of directors and the OCC;
(b) adoption, implementation and adherence to a capital program and a
profit plan;
(c) protection of its interest in its criticized assets (those assets
classified as "loss," "doubtful," "substandard," or "special mention"
by internal or external loan review or examination), and adoption,
implementation and adherence to a written program designed to
eliminate the basis of the criticism, as well as restricting further
extensions of credit to borrowers whose loans are subject to
criticism;
(d) development, implementation and adherence to a written program to
improve the bank's credit risk identification process;
(e) development, implementation and adherence to a written program to
reduce the high level of credit risk in the bank;
(f) development, implementation and adherence to a written program to
improve the bank's loan portfolio management;
(g) adoption, implementation and adherence to a written asset
diversification program that appropriately identifies and manages
concentrations of credit risk;
(h) ensuring that the level of liquidity at the bank is sufficient to
sustain the bank's current operations and meet anticipated or
extraordinary demand; and
(i) obtaining a determination of no supervisory objection from the OCC
before accepting brokered deposits.
Additionally, the bank is required by the agreement to submit numerous
periodic reports to the OCC regarding various aspects of the foregoing actions.
The agreement resulted from the OCC's examination of the bank begun in
the first quarter of 2010. Beginning in 2008, the bank began to experience an
increase in criticized assets as the economy in the bank's primary lending areas
has come under increasing downward pressure. The substantive actions called for
by the agreement should strengthen the bank and make it more efficient in the
long-term. Implementation of the agreement will increase the bank's
administrative costs somewhat in the near-term, but the amount of such increase
is not expected to be material to the Registrant. Many of the actions required
by the agreement have already been implemented by the bank.
Section 2 - Financial Information
Item 2.02 Results of Operations and Financial Condition.
2010 Second Quarter Earnings
Please see Exhibit 99 for the Registrant's 2010 Second Quarter Letter to
Shareholders and Earnings release.
Section 9 - Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits
(c) Exhibit 99 - Registrant's 2010 Second Quarter Letter to Shareholders and
Earnings Release.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
PEOPLES BANCORPORATION, INC.
(Registrant)
Date: August 18, 2010 By: /s/ Robert E. Dye, Jr.
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Robert E. Dye, Jr.
Senior Vice President (Principal Financial
and Principal Accounting Officer)
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EXHIBIT INDEX
Exhibit 99 Registrant's 2010 Second Quarter Letter to Shareholders and
Earnings Release
