The Subprime Lender: C. Dan Adams of The Capital Corporation


C. Dan Adams founded The Capital Corporation, an investment-banking firm that shares an office with Integrity Texas Funding, a company through which Adams invests in the consumer lending industry. Adams is an active leader in the payday industry. He serves on the board of the Community Financial Services Association of America – the payday industry’s special interest trade group, which fights efforts in Washington and across the nation to protect hard working families from the predatory practices of its member companies.

Adams was also the chairman and board member of the First National Bank of the South (owned by First National Bancshares). During his tenure, the bank failed and was put in receivership by the FDIC, costing the FDIC $75 million. The bank had been posting losses in the tens of millions while he served as chairman and it admitted to providing subprime home loans that didn’t even meet its own internal underwriting standards. The bank’s financials were so bad that its application to receive bailout funds from the federal government was denied. Despite his lack of leadership, he earned tens of thousands of dollars in fees to attend board meetings.

Being a payday lender and investment banker has paid off handsomely for Adams. He has amassed a large number of properties valued in the millions of dollars. He owns a $1.36 million home near Greenville, South Carolina, an office building, several vacant lots, a condo near the beach in Spartanburg County, and a luxury condo in Charleston County that he bought for over $1 million.

It has paid off for others too. During the past few election cycles, Adams has contributed nearly $100,000 to the campaigns of Members of Congress and payday lending special interest PACs, which have also donated large sums of money to the campaigns of elected officials. He has donated or raised money for Republican politicians around the country.

In addition to contributing vast sums of money to campaigns and special interest PACS (at least $264,700 over the years), Adams has also been involved in politics. He serves as a board member to the Palmetto Policy Forum, a South Carolina think tank founded by former U.S. Senator Jim DeMint.

The Details:

Adams Founded and Leads an Investment Banking Firm

  • Adams Serves as President & CEO of The Capital Corporation, Which He Founded in 1991. “As President and CEO of The Capital Corporation, Dan Adams is responsible for the overall operations and strategic direction of the company as well as its relationships with its affiliates and portfolio companies. Dan founded The Capital Corporation in 1991 as an investment banking firm focusing on mergers and acquisitions to the lower middle market. Through Dan’s leadership, The Capital Corporation has grown into one of the most successful merger and acquisition boutiques in the Southeast.” [Capital Corporation, accessed 8/21/14]

He’s Also an Investor in the Consumer Lending Industry…

  • Adams Is an “Active Private Equity Investor” with “Particular Concentration in Consumer Finance Through Integrity Funding, a Texas Based Lending Company Serving the Consumer Lending Industry.” [The Capital Corporation, accessed 8/21/14]
  • Integrity Texas Funding LP Lists the Same South Carolina Address as The Capital Corporation on Its Address on Its LLC Filing. [Texas Secretary of State, 10/20/14]

…And a Leader in the Payday Lending Industry

  • Adams Serves on the Board Of Community Financial Services Association Of America. [, Accessed 8/21/14]
  • Adams, Contributed $10,000 at a Bahamas Fundraising Event Organized by the Community Financial Services Association for Ohio Senate Candidate Josh Mandel. “This separate campaign committee, it turns out, was also the conduit for donations from payday lenders who attended a Mandel fund-raising event in the Bahamas in early March. Mandel’s campaign in March did not release the take from that event. But Federal Election Commission filings from the Mandel Senate Victory Committee now show that this single event raised at least $67,000 from payday lenders and their PACs. Checks came from executives and PACs representing such companies as Advance America, $15,000; Axcess Financial (whose holdings include Check ‘n Go), $10,000; Speedy Cash, $5,000; CheckSmart, $10,000, and QC Holdings (aka Quick Cash), $10,000. C. Dan Adams, a board member of the group sponsoring the Bahamas event, the Community Financial Services Association of America, gave $10,000. Mandel also gave a speech at the industry conference, his campaign said. Critics of the industry say that with accrued interest, payday loans can stick borrowers with rates of 300 percent and more. The lenders say that as bankers of last resort, they stave off evictions and the repo man by giving clients cash when they need it the most. The industry has been fighting ongoing efforts in states to restrict its practices. The payday contributions in the Bahamas do not include a $30,000 donation given in February by Lee Schear of Dayton, whose financial services company has an affiliate, NCP Finance, that funds payday loans.” [Cleveland Plain Dealer, 6/7/12]

Adams Also Served as Chairman of the Board of a Bank That Failed – Cost FDIC $75 Million

For Years, Adams Served as a Member of the Board of First National Bank of the South Including Chairman of the Board

  • Adams Served as Chairman of First National Bancshares in South Carolina, Ceo of Southeastern Capital Partners and President of the Capital Finance Group. “Mr. C. D. Adams is Chairman at First National Bancshares, Inc. (South Carolina), President & Chief Executive Officer at Southeastern Capital Partners LLC, and President at The Capital Finance Group, Inc. Mr. Adams was previously employed as Vice President by C&S National Bank. He also served on the board at First National Bank of the South. He received his undergraduate degree from the University of South Carolina, an undergraduate degree from Louisiana State University, and a graduate degree from Louisiana State University.” [, accessed 8/21/14]
  • Adams Was Chairman of the Board of First National Bancshares, Served on Board, Audit, Nominating and Compensation Committees. “C. Dan Adams, 50, Class III director, is the Chairman of our board of directors. Mr. Adams has been the president and principal owner of The Capital Corporation of America, Inc., an investment banking company located in Greenville/Spartanburg, since 1991. Prior to joining The Capital Corporation, Mr. Adams served as vice president with C&S National Bank, where he was employed for twelve years. Mr. Adams graduated from the University of South Carolina Upstate in 1983 with a degree in business administration. He graduated in 1989 from The Banking School of the South at Louisiana State University and is a Certified Commercial Investment member.” [, accessed 8/21/14]
  • April 2008: Adams Was Elected Chairman of the Board of First National Bancshares. [SNL Bank and Thrift Daily, 4/23/08]

Under Adams’ Watch as Chairman, the Bank Filed for Bankruptcy and Failed, Costing the FDIC

  • July 2010: First National Bank of the South Failed, FDIC Was Named the Receiver. “On Friday, July 16, 2010, First National Bank of the South, Spartanburg, SC was closed by the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.” [FDIC, updated 3/21/14]
    • Headline: “Feds swoop in, close First National Bank of the South.” [, 7/17/10]
    • Headline: “FDIC Seizes Control of Spartanburg Bank.” [WSPA, 7/16/10]
    • FDIC Lost $74.9 Million As A Result Of The Bank’s Failure. [CNNMoney, accessed 8/21/14]
  • First National Bancshares Of South Carolina Filed For Bankruptcy Under Adams, Who Signed The Paperwork Informing The SEC. “On December 31, 2010, First National Bancshares, Inc., a South Carolina corporation (the “Company”), filed a voluntary petition for relief pursuant to Chapter 7 of Title 11 of the United States Code in the United States Bankruptcy Court District of South Carolina, Bankruptcy Case No. 10-09281. The bankruptcy trustee is John K. Fort, PO Box 813, Drayton, South Carolina 29333. The trustee was appointed on January 3, 2011 and will be responsible for the wind-up of the Company’s business.” The form was signed by C. Dan Adams, “Chairman.” [Form 8-K, First National Bancshares Inc., 1/3/11]
  • First National Bank of the South Acknowledged Providing Subprime Loans to Individuals Who Didn’t Meet Their Own Underwriting Guidelines. “Business was booming for First National Bank of the South in 2007, just eight years into its founding with ambition to grow from one Spartanburg office into a statewide force in banking. That ambition crashed last Friday when the FDIC put the bank into receivership, closed its doors and sold it to a private equity firm created to scoop up failed banks. First National reopened as business as usual Monday under the new owners. The high hopes were dashed by moving too fast in illusionary boom years and an unforgiving recession that exposed consequences of aggressive lending to developers in a real estate market that inflated into a bubble over years and deflated in months…More than 90 percent of all First National’s loans were collateralized by real estate, and the company acknowledged it made some loans that exceeded its own underwriting guidelines. First National’s expansion into coastal South Carolina proved especially costly. Forty-two percent of its $120 million in toxic real estate loans at the end of 2009 were in that hard-hit market.” [Journal Watchdog, 7/21/10]
  • May 2010: First National Bancshares Posted Net Loss of $5.4 Million to Common Shareholders. “First National Bancshares, Inc. (Nasdaq:FNSC) today announced its results for the quarter ended March 31, 2010. First National reported a decrease in troubled loans, an increase in recovery of assets, and continuing improvements in such important quarter-to-quarter indicators as core interest margins and decreased expenses. For the first quarter 2010, First National Bancshares, the holding company for Spartanburg-based First National Bank of the South, posted a net loss of $5.4 million to common shareholders — more than two-thirds of which was a $3.7 million, non-cash provision for loan losses that represents adjustments to the value of the Company’s assets. Most noninterest expense categories — in particular, salaries and benefits with a 20-percent reduction — declined. FDIC insurance premiums, however, increased almost 600 percent for the first quarter of 2010 to $757,000 as compared to the first quarter of 2009, and this growth was in addition to increases in other regulatory fees. Credit quality was positively reflected in the significant year-to-year decrease of approximately $31 million, or 80 percent, in 30-89-day delinquencies to $7.6 million as of March 31, 2010.” [Press Release, First National Bancshares, 5/10/10]
  • Fiscal Year 2010: First National Bancshares Posted a Net Loss of $43.7 Million to Common Shareholders. “First National Bancshares, Inc. (Nasdaq:FNSC) today announced its results for the year ended December 31, 2009, with the filing of its Form 10-K that revealed a lowered annual loss, continued resolution of assets, and improved trends for quarter-to-quarter indicators. For fiscal year 2010, First National Bancshares, the holding company for Spartanburg-based First National Bank of the South, posted a net loss of $43.7 million to common shareholders, a decrease from 2008. Most of that, $39.7 million, was a non-cash provision for loan losses that represents adjustments to the value of the Company’s assets — in particular, those associated to South Carolina’s distressed real estate market. Despite almost all noninterest expenses decreasing, First National’s results reflected a 500-percent increase in FDIC premiums in addition to other regulatory fees, totaling more than $3.5 million…‘First National took the brunt of the recession in 2009 and has responded with a new, flexible strategy, focused on restoring strength to our balance sheet and vision to our leadership,’ C. Dan Adams, Chairman of First National Bancshares, said. ‘In 2010, First National is focusing on delivering value to our stakeholders — customers, communities and shareholders — and we are beginning to show some positive indicators.’” [First National Bancshares Release, 3/11/10]

The Bank Was in Such Poor Financial Position That Its Application for a Taxpayer Bailout Was Withdrawn After Being Rejected

  • Charleston Business Reported That First National Bancshares “Withdrew” Its Application For TARP Funds “Because Of Concern That Its Magnitude Of Nonperforming Assets Might Lead To Rejection.” “Like the South Financial Group, First National has been hit hard by deteriorating real estate assets, particularly along the coast. It increased its provision for loan losses in 2008 from $1.4 million to $20.5 million. Nonperforming assets grew to $75.5 million, or10.9% of loans and other real estate owned, compared with 3% in 2007 and 0.15% in 2006. The bank recently withdrew its application for TARP funds from the federal government because of concern that its magnitude of nonperforming assets might lead to rejection.” [Charleston Business, 5/11/09]
    • First National Bancshares Withdrew Their Application For TARP Funds Only AFTER They Were Rejected. “Our application for participation in the TARP Capital Purchase Program has not been accepted.  Therefore, we have withdrawn our application.” [First National Bancshares, SEC Form 10Q]

…Meanwhile, Adams Was Paid Nearly $70,000 to Attend Board and Committee Meetings For First National Bancshares:

  • 2009: $3,200
  • 2008: $23,900
  • 2007: $20,400
  • 2006: $20,400

[First National Bancshares Inc. SEC Filings, accessed 8/21/14]

Adams Has Been Active in Conservative Politics – Associating Himself with the Most Conservative Members of the GOP

  • Adams Served On Board Of Conservative Think Tank In South Carolina Founded By Jim DeMint. “Retired U.S. Sen. Jim DeMint, president-elect of one of the nation’s prominent conservative think tanks, has formed a conservative think tank in South Carolina. DeMint, a Greenville Republican who spent 13 years in House and Senate, is investing $300,000 from his remaining campaign money to establish the Palmetto Policy Forum. He also will serve as chairman…The Heritage Foundation, where DeMint is president-elect, is working with state-based policy groups around the country, he said…C. Dan Adams, president and chief executive of Greenville-based The Capital Corp.”[McClatchy, 2/6/13; Palmetto Policy Forum, accessed 8/21/14]

Adams Has Helped Several Politicians Raise Money

  • August 2011: Adams Planned To Hold Fundraising Reception For Rick Perry. “Texas Gov. Rick Perry will be talking to South Carolina voters and asking some to reach into their pockets when he makes his two-day swing through the state this week. In addition to headlining a fund-raiser for the South Carolina Republican Party in downtown Columbia Friday, the GOP presidential candidate will attend a fund-raiser at a private residence just outside Greenville that same evening. According to a copy of the fund-raising invitation obtained by CNN, a reception with Perry will be held at the home of The Capital Corporation President and CEO Dan Adams. ‘Sponsors’ will pay $5,000 per couple, and ‘hosts’ will chip in $2,500 per couple or $1,000 per individual.” [CNN, 8/18/11]
  • Adams Served On Governor Nikki Haley’s Finance Advisory Committee. “Governor Nikki Haley today announced a statewide finance advisory committee. The committee, made up of thirty-two business leaders from all across South Carolina, will help Gov. Haley prepare for a potential re-election bid.” [Haley Press Release, 3/6/13]

Adams Has Contributed at Least $264,700 to Powerful Politicians and Special Interest PACs

It has paid off for others too. Over the years, Adams has contributed at least $264,700 to the campaigns of powerful politicians and special interest PACs, which have also donated large sums of money to the campaigns of elected officials.

  • 09/07/2000 – $1,000 – Republican Party of South Carolina
  • 05/14/2001 – $1,000 – Graham, Lindsey
  • 06/01/2005 – ($1,000) – Graham, Lindsey
  • 06/01/2005 – $1,000 – Graham, Lindsey
  • 06/01/2005 – $1,000 – Graham, Lindsey
  • 03/13/2007 – $2,300 – Giuliani, Rudolph
  • 03/30/2007 – ($1,300) – Graham, Lindsey
  • 03/30/2007 – $1,300 – Graham, Lindsey
  • 03/30/2007 – $4,200 – Graham, Lindsey
  • 04/13/2007 – ($2,100) – Graham, Lindsey
  • 05/10/2007 – $500 – Romney, Mitt
  • 08/11/2008 – $2,000 – Fund for America’s Future (Sen. Graham Leadership PAC)
  • 12/01/2008 – $250 – National Republican Trust PAC
  • 06/30/2009 – $2,000 – Fund for America’s Future (Sen. Graham Leadership PAC)
  • 07/24/2009 – $2,400 – Gowdy, Trey
  • 01/15/2010 – $500 – Wilson, Joe
  • 02/18/2010 – $300 – Rice, Rex
  • 02/22/2010 – $1,000 – Minnick, Walt
  • 04/12/2010 – $5,000 – Texas First PAC (Rep. Cuellar Leadership PAC)
  • 05/20/2010 – $2,400 – Shelby, Richard
  • 05/20/2010 – $2,400 – Shelby, Richard
  • 05/20/2010 – $2,400 – Shelby, Richard
  • 05/20/2010 – $2,400 – Shelby, Richard
  • 06/11/2010 – $2,400 – Gowdy, Trey
  • 06/14/2010 – $1,000 – Mulvaney, Mick
  • 09/22/2010 – $1,000 – Mulvaney, Mick
  • 09/24/2010 – $1,000 – Wilson, Joe
  • 10/23/2010 – $400 – Minnick, Walt
  • 03/21/2011 – $2,400 – McHenry, Patrick
  • 03/30/2011 – $2,500 – Neugebauer, Randy
  • 03/30/2011 – $2,500 – Neugebauer, Randy
  • 03/31/2011 – $2,500 – Shuler, Heath
  • 04/01/2011 – $10,000 – Republican Party of South Carolina
  • 06/01/2011 – $5,000 – Defend America PAC (Sen. Shelby Leadership PAC)
  • 06/15/2011 – $2,500 – Vitter, David
  • 06/15/2011 – $2,500 – Vitter, David
  • 06/28/2011 – $3,000 – American Solutions PAC (Newt Gingrich Leadership PAC)
  • 06/30/2011 – $2,500 – Duncan, Jeff
  • 06/30/2011 – $2,500 – Mulvaney, Mick
  • 08/25/2011 – $2,500 – Perry, Rick
  • 11/21/2011 – $5,000 – Graham, Lindsey
  • 11/21/2011 – $2,500 – Graham, Lindsey
  • 11/21/2011 – ($2,500) – Graham, Lindsey
  • 03/14/2012 – $1,000 – Chaffetz, Jason
  • 04/01/2012 – $5,000 – Republican Party of Cuyahoga County
  • 06/14/2012 – $2,500 – Romney, Mitt
  • 06/30/2012 – $2,500 – Texas First PAC (Rep. Cuellar Leadership PAC)
  • 06/30/2012 – $2,500 – Cuellar, Henry
  • 08/20/2012 – $20,000 – Republican National Committee
  • 10/12/2012 – $2,000 – Conway, Jack
  • 03/27/2013 – $2,600 – Neugebauer, Randy
  • 03/27/2013 – $2,600 – Neugebauer, Randy
  • 03/30/2013 – $2,600 – Scott, Tim
  • 03/30/2013 – $2,600 – Scott, Tim
  • 06/12/2013 – $2,600 – Gowdy, Trey
  • 06/12/2013 – $2,600 – Gowdy, Trey
  • 06/28/2013 – $2,600 – Duncan, Jeff
  • 06/30/2013 – $1,000 – Cuellar, Henry
  • 07/23/2013 – $5,000 – Community Financial Services Association of America PAC
  • 08/05/2013 – $2,600 – Country Roads PAC
  • 08/07/2013 – $2,600 – McHenry, Patrick
  • 08/26/2013 – $2,600 – Capito, Shelley Moore
  • 10/22/2013 – $2,000 – Southerland, Steve
  • 11/06/2013 – $1,000 – Stivers, Steve
  • 12/18/2013 – $2,500 – Mulvaney, Mick
  • 12/31/2013 – $2,500 – Cotton, Tom
  • 01/27/2014 – $5,000 – Community Financial Services Association of America PAC
  • 03/13/2014 – $1,250 – Fincher, Steve
  • 03/24/2014 – $1,000 – Clay Jr., William
  • 03/26/2014 – $2,600 – Toomey, Pat
  • 03/31/2014 – $1,250 – Ross, Dennis
  • 04/01/2014 – $1,250 – Wagner, Ann L
  • 05/30/2014 – $1,000 – Murphy, Patrick
  • 06/04/2014 – $1,000 – Scott, David
  • 06/27/2014 – $5,000 – Cuellar, Henry
  • 06/30/2014 – ($2,400) – Cuellar, Henry
  • 08/14/2014 – $2,600 – Sullivan, Dan
  • 08/14/2014 – $2,600 – Sullivan, Dan
  • 09/10/2014 – $1,000 – Cotton, Tom
  • 09/30/2014 – $2,600 – Ernst, Joni
  • 10/08/2014 – $2,600 – Gardner, Cory
  • 10/17/2014 – $7,400 – National Republican Congressional Committee
  • 10/17/2014 – $5,000 – More Conservatives PAC (Rep. McHenry Leadership PAC)
  • 11/04/2014 – $2,500 – Stivers, Steve
  • 11/04/2014 – $2,600 – McHenry, Patrick
  • 11/12/2014 – $2,000 – Republican Party of Florida
  • 01/27/2015 – $3,120 – Reclaim America PAC (Sen. Rubio Leadership PAC)
  • 01/27/2015 – $2,080 – Rubio, Marco
  • 02/05/2015 – $2,600 – Graham, Lindsey
  • 02/18/2015 – $1,000 – Chaffetz, Jason
  • 02/19/2015 – $5,000 – Community Financial Services Association of America PAC
  • 03/02/2015 – $5,000 – Defend America PAC (Sen. Shelby Leadership PAC)
  • 03/02/2015 – $2,500 – Shelby, Richard
  • 03/02/2015 – $2,500 – Shelby, Richard
  • 03/24/2015 – $2,500 – Toomey, Pat
  • 03/31/2015 – $2,300 – Scott, Tim
  • 03/31/2015 – $2,700 – Scott, Tim
  • 06/05/2015 – $2,500 – Murphy, Patrick
  • 07/14/2015 – $15,000 – Republican National Committee
  • 07/28/2015 – $2,700 – Bush, Jeb
  • 10/30/2015 – $2,700 – Scalise, Steve
  • 10/30/2015 – $2,300 – Scalise, Steve
  • 03/22/2016 – $2,700 – Wilson, Joe
  • TOTAL: $264,700

Special thanks to National People’s Action for allowing Allied Progress to use its extensive research on payday lending industry executives.

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