Was He Set Up?/How to Lose Your Family

For the past two days, we've looked at the case of Dwayne Charles Holcombe, former vice president of the Farmers and Merchants Bank of Waterloo. We continue to receive e-mails indicating that Holcombe was set up--asked to falsify records or asked to take the blame for those who actually did falsify the documents.

What would you do if you were asked by your janitor/secretary/co-officer/president to modify records illegally? We hope you would refuse. The worst case scenario would be that you would lose your job. You would not go to jail, lose your family (we hope), or have to repay money which you didn't take. You would also be able to apply for a position elsewhere that was similar to the one you lost--something Holcombe is not able to do since he is now barred from working at any licensed bank in Alabama.

If Holcombe is indeed innocent, he should have shouted it from the rooftops when he was first accused. Of course, his attorney may have advised him to remain quiet until he was legally charged with the crimes. We're glad that Mr. Holcombe has so many friends to come to his defense; but we don't believe they're looking at the facts of the case with an unbiased eye. If Dwayne Charles Holcombe is innocent, we hope he proves so in court, as well as implicating the guilty party/parties.

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We always solicit guest commentaries. Sometimes we receive a guest blog that we hold until an appropriate subject arises. This is the case with our guest blog today by Bailey Quarters, a regular contributor:

The Re-Attached Limb

I've had many friends over the years who have committed crimes. These were honest people who made a mistake, some more serious than others. A good friend once killed her boyfriend. This friend had experienced more tragedy in life than most of us ever will, but she did have a large extended family. She lost the support of most of her family when she committed her crime.

After she had served her sentence of many years she tried to reconnect with her mother and children. It wasn't easy and she has never been able to restore these relationships fully. She once told me it was like a severed limb that had been reattached. It was there and had some feeling, but would never function as it should completely.

Before anyone commits a crime, they should ask themselves how their family will feel when it comes to light, as it almost always does. It's not just the person who commits the crime who suffers, it's their entire family. I'll add here that many times the family is also guilty of not giving the support their relative needed before the crime. They are the ones who raised him or married him. They have to share the guilt. They should also be the first ones to forgive.

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Congressman Mo Brooks (AL-05) announced today that he will hold a Town Hall in Killen on Thursday, June 30, from 6 to 7:30 PM. The event will be held at the Killen Town Office at 231 J C Mauldin Highway, Killen, AL 35645. Congressman Brooks said, “I’m looking forward to meeting with folks in Killen to talk about the issues that are important to them. The town hall is a question and answer session, so please come with your questions. All resident from the fifth district are welcome to attend.”

The town hall will open with brief remarks by Congressman Brooks, and the remainder of the event will be devoted to Q&A with the audience. For questions or directions, please contact the Huntsville District Office at (256) 551-0190.

Shoalanda

Good Ol' Boy Handshake Loans/Help Me!!

Our blog yesterday focused on the indictment of Dwayne Charles Holcombe, former vice president of the Farmer and Merchants Bank of Waterloo. Several readers responded with their take on the case, many blaming newer banking rules for forcing Holcombe to falsify records in order to accommodate long-time customers who were behind on their repayment schedule. Sadly, the days of the Jimmy Stewart type banker are over. Still, if this is indeed what happened with Mr. Holcombe, he deprived other investors of profit in his attempt to save a chosen few.

Others wanted to know more about the small Waterloo bank where Holcombe wore many hats. The bank was established in 1914 by Buck Sharp. Tom D. Ray is the current president. Mr. Ray is known as a supporter of small town banks and has taken an active stand against standardization of banking policy without regard to size of the institution.

In his own words:

Community banks fund their operations by taking deposits and holding loans for the long term. Many of our financial instruments are not readily marketable.

We oppose the proposed accounting treatment for core deposits. The calculations would be expensive and time consuming, particularly for smaller banks like ours that have limited staff resources.

We oppose requiring institutions to record demand deposits at fair value. We also oppose requiring fair value calculations for loans that are held for the long-term to collect cash flows.

Fair value measurements will not provide a better understanding of the values of illiquid agricultural loans held by small banks in rural areas such as this bank.

Community banks such as this bank create and hold small business loans for which there is no active market; it would be very difficult and costly to mark them to market.

Did this policy influence Dwayne Holcombe's actions? It should be an interesting trial.

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We obviously read a lot of local, state, and national blogs--both just for fun and to prepare for our commentaries. The following is one of the most profound and astute local observations we've read in quite some time:

Help Me!!

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Yesterday at 12:16 p.m. was the Summer Solstice, but only for purists. The rest of you Druids may continue to celebrate today as well since it is only two seconds longer than yesterday. So by request...





Shoalanda

You Can't Bank on Dwayne Charles Holcombe

Dwayne Charles Holcombe graduated from the University of North Alabama in 1983 with a degree in Business Management. The former 4-H club standout soon became vice president of the small Farmers and Merchants Bank of Waterloo and headed its Central Plaza branch. From all outward appearances, Holcombe, along with his wife Lisa, was going somewhere; the only question now is "where?"

In August 2010, the Alabama Banking Association found that the long-time Waterloo resident had altered accounts by changing Social Security numbers of loan holders in the bank's maintenance system. At that time, the Association forbade Holcombe from working in any bank or lending institution licensed by the State.

The 49 year-old Holcombe, son of Mrs. Herschel Holcombe, has now been officially charged with one count of bank fraud and three counts of altering bank records. The Federal indictment does not specify how much, if any, of the missing 1.4 million dollars Holcombe received during the six year period covered in the investigation. FBI agents have stated that this information will not be published before the trial.

While it's a sad end for Holcombe's career in banking, it's certainly more so for the bank's investors who expected more from its officers. These investors may also wish to know why it has taken 10 months to indict Holcombe. The trial should prove especially interesting to all West Lauderdale residents, but especially Farmers and Merchants Bank depositors who just may wish to know who benefited from Holcomb's convoluted web of deception.

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We're adding another location to our list of Shoals eyesores. The old B.M. Ingram building on South Seminary Street in Florence stands near collapse. There appears to be a for sale sign attached to the former store. Good luck with that.

Thanks to M.C. for the photo.



Shoalanda