The manufacturing industry in the United States has undergone fundamental changes in recent decades.

The transition to advanced manufacturing has contributed to output growth even as manufacturing employment has fallen.

Throughout this period of changing industry conditions, community banks in manufacturing-concentrated states have provided more commercial loans than other community banks and reported higher net interest margins.

They also exhibited more cyclical sensitivity to economic downturns. While the manufacturing industry was negatively affected by the Covid-19 pandemic, it recovered much more quickly than in previous recessions, according to a new FDIC report, “Community Bank Performance in Manufacturing-Concentrated States,” published in the FDIC Quarterly.

The FDIC found that:

* Manufacturing continues to be a broad and important segment of U.S. economic output, even as the U.S. economy has evolved. The manufacturing industry accounted for roughly 11 percent of gross domestic product as of 2021.

* Community banks headquartered in the five states with the highest manufacturing output concentrations stand out from community banks headquartered in other states with their substantially higher concentration of various types of commercial loans.

As of fourth quarter 2021, there were 552 community banks headquartered in the top-five manufacturing-concentrated states. These banks account for about 12 percent of all community banks, a share that has been fairly stable since 2000.

* The share of commercial and industrial (C&I) loans at banks headquartered in manufacturing-concentrated states has fallen since 2000, but it has consistently been much higher than for other community banks, frequently twice the share. Similar to C&I loans, the share of commercial real estate loans at banks headquartered in manufacturing-concentrated states is much higher when compared with other community banks.

* The net interest margin of community banks in manufacturing-concentrated states has on average exceeded that of other community banks.

The manufacturing industry is sensitive to business cycles and recessions, which may have weighed on community bank profitability through direct credit exposures to manufacturing firms and indirectly through the manufacturing industry’s impact on the local economy.

* In contrast with previous recessions, the manufacturing sector has recovered losses from the recession in 2020 relatively quickly and continued to grow as the U.S. economy reopened and producers responded to pent-up demand. Community banks in manufacturing states generally maintained profitability during this time.

* Even as these short-term challenges from the pandemic resolve, banks face longer-term risks from continued structural changes in the manufacturing industry, which may change the size and composition of industries in the community.

FDIC officials said manufacturing has highest share of GDP in Indiana, Kentucky, Louisiana, Michigan, and Wisconsin.

Greenville, S.C.-based United Community Bank announced the addition of veteran banker Cory Boyte to lead the development of a corporate banking division. 

Bank officials said Boyte will use his extensive banking background to serve large corporate and institutional clients with integrated capital, treasury, and investment solutions to develop long-term mutually beneficial relationships.

Boyte also will manage United’s bank-partner relationships and develop corporate banking products and services to help position the bank and its clients for future growth.

“Cory is absolutely the best person to drive the development of this division for us,” said Rich Bradshaw, president and chief banking officer. “Expanding this capability enables us to grow with our customers as their needs change.”  

Boyte comes to United with nearly 30 years of experience in the financial services industry.

He had a long, successful career with BB&T (now Truist) most recently serving as executive vice president and capital markets corporate banking division manager.

His previous responsibilities included leading the corporate banking division, equipment and governmental finance, asset-based lending, loan syndications and interest rate derivatives.

Boyte received his MBA and graduated magna cum laude with his bachelor’s degree in finance from the University of North Carolina at Greensboro.

 Capital Square, one of the nation's leading sponsors of tax-advantaged real estate investments and an active developer of multifamily communities, and Method Co., a real estate management, development and design company rooted in hospitality, held a groundbreaking ceremony July 21, 2022, for a new design-forward, 50-unit development bridging the boutique hotel experience with apartment-style living, located at 529 King Street in Charleston's historic downtown.

The $61 million project designed by acclaimed Morris Adjmi Architects will feature 52,700 square feet of space comprising a mix of studio, one-, two- and three-bedroom apartment hotel units, a rooftop lounge, and 27,700 square feet of rentable space.

Method Co. will operate the property's rooftop lounge, drawing on significant experience in food and beverage operations to create a space that serves both as an amenity to guests and locals.

Attendees included Capital Square executives Louis Rogers, founder and CEO, and Whitson Huffman, chief strategy and investment officer; Method Co.'s CEO and co-founder, Randall Cook, and president and co-founder, David Grasso; and Kathy Crawford, regional director of the Office of U.S. Senator Tim Scott (R-SC).

With construction underway, the hotel property is slated for completion in early 2024.

Eye Health America (EHA), an integrated platform of leading eyecare practices across the Southeastern United States, announced a new partnership with Bradenton Eye Clinic, the company’s 21st partnership since 2018. 

Based in Bradenton, FL, Bradenton Eye Clinic (BEC) and its founder, Dr. Liaquat Allarakhia, MD have been providing medical and surgical ophthalmic services to the community since 1995. Officials said the partnership enhances EHA’s market presence in Southwest Florida.

EHA has seen substantial growth in recent years, and with the addition of BEC, is operating with over 85 physicians across 54 locations, eight ambulatory surgical centers, and more than 1,000 employees in South Carolina, Georgia, and Florida. EHA provides strategic and operational support to practice groups and ASCs.

Eye Health America (EHA) was formed in 2018 by the partnership between LLR Partners, a growth-focused private equity firm, Clemson Eye and The Eye Associates.

EHA is led by an experienced team of eye care veterans including Co-CEOs Mary Lou Parisi and John Swencki; Chief Medical Officer Cathleen McCabe, MD; Chief Development Officer Philip Isham; Chief Operating Officer Patrick Maguire; Chief Financial Officer Kevin Becker; and a leadership team across the platform comprised of members from many of its partner practices.

Eye Health America (EHA) is headquartered in Greenville, S.C., which partnered with ophthalmology practices, optometry practices and ambulatory surgery centers across the Southeast U.S.

Member practices include Clemson Eye, Piedmont Surgery Center, The Surgery & Laser Center, Carolinas Centers for Sight, Florence Surgery and Laser Center, Southeast Retina Center, Augusta Retina Laser Surgicare, The Eye Associates, Eye Centers of Florida, Surgicare Center, Updegraff Laser Vision, Tampa Bay Eye Surgery Center, and many other top eyecare providers in the Southeastern U.S.

They offer full-service, integrated eye care from routine eye exams, contact lenses, and glasses to medical ophthalmology and surgery including refractive cataract surgery, cornea, retina, glaucoma, LASIK, pediatrics, and oculoplastics.