012: Darrin Williams, CEO of Southern Bancorp, Inc.

Ray Hoffman introduces Darrin Williams. Darrin Williams practices capitalism in places where capitalism is sorely needed — some of the poorest towns and neighborhoods of Arkansas and Mississippi, particularly in the Mississippi Delta. Darrin Williams left a promising career in law and politics to be the CEO of Little Rock-based Southern Bancorp, a bank on a mission, a mission to create economic opportunity. To learn about Darrin Williams, it may be best to go back about three decades.

Key Takeaways:

[:51] Darrin Williams was student body president at Little Rock Central High School. Governor Bill Clinton named him to a school advisory board. In high school, Darrin never had the intention to become CEO of a bank. His sights were on the law, and initially, he practiced law with an interest in politics.

[1:42] At the age of two weeks, Darrin was adopted. His father was 55 and his mother was in her late 40s, so they were much older than his friends' parents when he was growing up. A lawyer handled the adoption and continued to serve as the family's lawyer through Darrin's teens. He was a role model for Darrin.

[2:11] In 2014, Darrin was President Pro Tempore of the Arkansas House of Representatives. He still had no interest in joining a bank. He had been a securities litigation attorney on the plaintiff's side, suing banks in class action litigation.

[3:10] Now that he is in the CEO position, it has been a wonderful opportunity. Southern Bancorp is a community development financial institution. Their focus is really on serving underserved communities. They lift communities and individuals to build their net worth.

[4:06] Darrin is very focused on service. It is what drew him to law to start with, and now to a financial institution. He credits his minister father and schoolteacher mother with guiding his direction in a life of helping others.

[5:20] Darrin believes he hit the parent lottery. He learned proper manners in a traditional upbringing.

[6:03] As a young attorney, Darrin became chief of staff for Mark Pryor, the Arkansas State Attorney General elected in 1998. Darrin led a group of dedicated public servants who really cared about their clients. He witnessed practicing law from a client-focused perspective.

[6:39] Darrin sees his time on the Attorney General's staff as being significant preparation for becoming a CEO.

[7:17] In 2012, Darrin learned about Southern Bancorp, Inc. when they approached him to discuss becoming CEO. He turned them down at the time in favor of continuing to practice law. However, he wanted to help and he joined the holding company board of directors.

[7:58] As a board member, Darrin helped initiate the search for CEO. He did not know that six months later he would become the CEO.

[8:20] Through his church, Darrin led a financial principles class, where he worked to help people understand how to be good stewards of their money. This experience also led him to see that so many people struggle financially unnecessarily because they don't have the skills and resources, and were never taught how to use money well.

[9:01] Darrin observed people were having significant improvements in their financial lives from taking the class, and Darrin thought he would like to teach about money full-time. When the CEO job was offered to him and Darrin turned it down, his wife reminded him of what he had said he wanted. He decided to take the CEO position.

[9:36] Darrin talks about how a community development financial institution operates. By law, they have to commit to doing 60% of their activity in low-to-moderate income census tracts. Southern Bancorp primarily focuses on rural communities in the mid-south or poor urban areas, where other banks choose not to go.

[11:16] In 16 of their markets, Southern Bancorp is either the only one or one of only two financial institutions offering access to capital in the community.

[11:36] Studies show that the further away a business moves from capital and credit, the more they pay for capital and credit.
[11:57] Darrin explains how Southern Bancorp's being one of two financial institutions leads to success for client businesses. He gives an example of their work in one community, and the programs they run and sponsor, even bringing a charter school to augment a failing school system.

[13:39] In spite of the mass consolidation of banks, Southern Bancorp is in growth mode. They note where they are needed and they grow there. At every Southern Bancorp location, they have opportunity centers to meet the customers where they are. They have very skilled credit counselors. This is a free service, even to non-customers.

[15:02] For the last 13 years, Southern Bancorp has provided free tax preparation services for thousands of customers. They make sure low-income people who qualify for the earned income tax credit know about it and apply for it.

[15:53] Now you understand about Southern Bancorp being a bank on a mission? This is capitalism.

Mentioned in This Episode:

Southern Bancorp

Mark Pryor

Stephens.com

This Is Capitalism