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Volume 18, No. 8, June 27, 2017
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SHENANDOAH VALLEY BUSINESS JOURNAL
Tuesday, June 27, 2017
Inside This Issue The Shenandoah Valley Business Journal is a monthly publication of Rockingham Publishing Company, Inc., 231 S. Liberty St., Harrisonburg, VA 22801.
Focus Section: Banks ■ Community Banking Sees Growth Spurt..............Page 8
Other Business News
Editorial Staff
■ Farm To Table Catering At Bella Festa...............Page 4
Editor and General Manager: Peter S. Yates
■ Valley Cattle Back On China’s Market..........Page 11 ■ Suntrust Location Sold To Frontier................Page 13 ■ Local Ledger...............................................Page 14
Managing Editor: Jerry Blair
Columns
Staff Writers: Vic Bradshaw
■ Financial Focus with Kathy Armentrout.........Page 3
HARRISONBURG — Lenhart Pettit, a Harrisonburg law practice, recently announced that 10 of its attorneys have been honored by designations from 2017 Super Lawyers, a Thomson Reuters business. Five of Lenhart Pettit’s attorneys have been recognized for inclusion in the Virginia Super Lawyers list and five of its attorneys have been named to the Virginia Rising Stars list. The designation process is a multiphased selection process that includes independent research, peer nominations and peer evaluations. The selected Virginia Super Lawyers and the expertise for which they were recognized are: ■ Patrick C. Asplin, Business/Corporate.
■ Michael E. Derdeyn, General Litigation. ■ Jeffrey G. Lenhart, Business/Corporate. ■ Bill Shmidheiser, Business Litigation. ■ Cathleen P. Welsh, Employment and Labor. The selected Virginia Rising Stars and their expertise: ■ Andrew S. Baugher, Business Litigation. ■ Brian A. Craddock, Business/Corporate. ■ Kelly B. Lapar, Construction Litigation ■ Seth J. Ragosta, Family Law ■ Andrew B. Stockment, Intellectual Property. — Staff Report See MOVERS, Page 3
Contact us By mail: Shenandoah Valley Business Journal P.O. Box 193 Harrisonburg, VA 22803 By email: svbjnews@dnronline.com By fax: 433-9112 By phone: 574-6267 (news) 574-6229 (ads)
On The Cover:
Contributing Photographers: Stephen Swofford, Daniel Lin
Ten Lenhart Pettit Attorneys Named 2017 Super Lawyers
Harrisonburg, Va.
F&M Bank Corp. Earnings Grow $7.126M Year Over Year HARRISONBURG — F&M Bank Corp. (OTCQX: FMBM) posted double-digit yearover-year net income growth in the first quarter, but earnings dipped slightly compared to the previous quarter. According to financial data reported April 28, the Timberville-based community banking company netted $2.3 million in the first three months of 2017, or 68 cents per common share. That topped the $2.1 million, or 60 cents a share, earned in the same period a year earlier, but was below the $2.5 million, or 74 cents a share, reached in the fourth quarter of 2016. Net interest income grew $305,000 to more than $7.126 million year over year. F&M’s net interest margin was 4.39 percent. The company’s board of directors declared a 22-cent dividend for the quarter, up
Daniel Lin / DN-R Kristen Lilly of Elkton makes a deposit at First Bank in downtown Elkton. The bank recently acquired new branches in Elkton, Woodstock, Staunton and Waynesboro.
from 19 cents in the first quarter of 2016. F&M is the parent company of Farmers & Merchants Bank, which has 13 branches in Rockingham, Augusta, Page and Shenandoah counties and the cities of Harrisonburg and Staunton. F&M also operates a loan-production office in Penn Laird and owns and operates VBS Mortgage and VS Title, a title insurance company. — Vic Bradshaw
Cadence Inc. Announces Its Unaudited First Quarter Results STAUNTON — Cadence Inc. announced unaudited results for the first quarter of 2017, including a 3 percent increase in revenue from continuing operations to $22.3 million compared to first quarter 2016. See SCENE, Page 3
Harrisonburg, Va.
SHENANDOAH VALLEY BUSINESS JOURNAL
Tuesday, June 27, 2017
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Declare Your Financial Independence Day
W
e’re getting close to the Fourth of July, when we celebrate the freedoms we enjoy in this country. The U.S. Constitution grants us many of these liberties, but we have to earn others — such as our financial freedom. What steps can you take to achieve the financial independence you need to reach your long-term goals? For starters, always work to build your resources. Contribute as much as you can afford to your IRA and your 401(k) or other employer-sponsored retirement plan. At a minimum, put in enough to earn your employer’s matching contribution, if one is offered. If you don’t take advantage of this match, you are essentially leaving money on the table. While how much you invest is an essential factor in gaining your financial freedom, how you invest your money is equally important. So make sure you have sufficient growth potential in all your accounts. While growth-oriented investments, such as stocks and stock-based vehicles, carry investment risk, you can help moderate this
risk by also including other investments, such as bonds. Another way to gain your financial independence is to liberate yourself from the shackles of debt. This isn’t always easy, of course — most of us have experienced times when our cash flow simply wasn’t sufficient to meet our expenses, so we had to take on some type of debt, either through a credit card or a loan. But the more you can control your debts, the more money you’ll have to save and invest for your future. One way to manage your debt load is to build an emergency fund, containing three to six months’ worth of living expenses, which you can use to pay unexpected costs such as a major car repair or a large medical bill. Ideally, you should keep this money in a liquid, low-risk account, so you can access the funds quickly and without penalty. Aside from possibly helping you control your debts, an emergency fund also may enable you to avoid dipping into your long-term investments to pay for short-term needs. Thus far, we’ve only discussed achieving your financial freedom through methods of saving and investing. But you also need to
Financial Focus Kathy Armentrout consider your protection needs, too. If you were to become ill or suffer a serious injury, and you could not work for a while, your financial security could be jeopardized. Your employer might offer you disability insurance as an employee benefit, but it may not be enough for your needs, so you might need to purchase some additional coverage on your own. And to help ensure your family’s financial security, you’ll also need sufficient life insurance. You also might want to protect yourself from the catastrophic costs of long-term care, such as an extended nursing home stay. The average annual cost for a private
room in a nursing home is more than $92,000, according to the 2016 Cost of Care Study issued by the insurance company Genworth. And Medicare generally covers only a small percentage of these expenses. You may want to consult with a financial professional to learn about ways you can protect yourself from the long-term care burden. By following these suggestions, you can go a long way toward declaring your own financial independence. Consider taking action soon. This article was written by Edward Jones for use by Kathy Armentrout, an Edward Jones financial adviser at 560 Neff. Ave., Suite 100, Harrisonburg; 540-574-1013.
COO Plans To Retire From Shentel Soon New Restaurant Opens At Massanutten Movers
FROM PAGE 2
Shentel EVP/COO MacKenzie Set To Retire After 14 Years HARRISONBURG — Earle MacKenzie, executive vice president and chief operating officer of Shenandoah Telecommunications Co. (NASDAQ: SHEN) has informed the company that he plans to retire, according to a news release. MacKenzie will stay with Shentel to work with his replacement to ensure a smooth transition. The company has hired executive search firm Spencer Stuart to help fill the position. A 42-year telecommunications industry veteran, MacKenzie has spent the last 14 years with Shentel. During that time, the company has grown from a small, rural provider with $105.9 million in annual revenue to a major regional telecommunications service company that grossed $535.3 million in 2016. At the end of first quarter, Shentel served 960,700 personal communications service
customers from a market territory covering more than 5.5 million, 77,925 cable and highspeed internet clients, and 18,160 telephone lines. — Vic Bradshaw
First National Elects Nine Board Members For One-Year Terms HARRISONBURG — First National Corp., the Strasburg-based parent company of First Bank, recently elected a slate of nine directors to one-year board terms. Board Chairwoman Elizabeth Cottrell, Vice Chairman and Secretary Gerald Smith Jr. and company CEO Scott Harvard are joined by Emily Beck, Boyce Brannock, Miles Davis, Christopher French, W, Michael Funk and James Wilkins III on the board based on shareholder votes. The votes were tallied at the company’s May 9 shareholder’s meeting in Strasburg. — Vic Bradshaw See MOVERS, Page 6
Scene
FROM PAGE 2
Campfire Cooking Comes Inside
According to a press release from the company, earnings per share from continuing operations decreased 6 percent over prior year first-quarter results to $1.14 per share. The company reported earnings before interest, taxes, depreciation and amortization from continuing operations was down 1 percent at $4.6 million. Earnings per share from total operations increased 43 percent over prior year first-quarter results, the company reported. “Our baseline business continues to be healthy generating EBITDA at over an [$18 million] annualized run rate in the first quarter” said Cadence CFO Ken Cleveland in a statement. Cadence, which has its headquarters in Staunton, supplies products and services to medical, automotive and industrial companies worldwide. More than 475 people work for the firm at its Virginia location and at locations in Cranston, R.I., Pittsburgh, and Sturgeon Bay, Wis. — Staff reports
HARRISONBURG — Massanutten Resort is bringing outdoor cooking and dining indoors with its newest restaurant, Campfire Grill, which opened in June. According to Sarah Elson, the resort’s director of business relations, Massanutten is aware of only two other restaurants in the U.S. attempting to replicate the camp dining experience indoors, none east of the Mississippi River. The menu includes skillets and campfire pouches as entrées and a skillet cookie and skillet S’mores among the desserts. The resort spent $2 million to renovate the restaurant at 4196 Del Webb Drive and add a patio at the site, she said. — Vic Bradshaw
Farm Credit Doles Out $2M In Dividends To Member-Owners HARRISONBURG — Farm Credit of the Virginias’ branch in Rockingham County See SCENE, Page 6
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SHENANDOAH VALLEY BUSINESS JOURNAL
Tuesday, June 27, 2017
Harrisonburg, Va.
Farm-To Table Catering Goes Mobile Bella Luna Owner Creates Bella Festa Wood-Fired Truck By VIC BRADSHAW Daily News-Record
HARRISONBURG — The irony didn’t strike Wade Luhn until someone mentioned it to him. Luhn, owner of Bella Luna WoodFired Pizza, Bella Gelato & Pastries and the Bella Banquets event space on West Water Street downtown, has entered the catering game. He’s done what he can to provide a mobile version of his successful farm-to-table restaurant with Bella Festa Wood-Fired Catering. What pulls the kitchen-on-wheels that features a wood-fired oven that cooks at 1,000 degrees? A fully restored 1954 GMC firetruck. “It fit the feel of our brick-and-mortar Bella Luna,” Luhn said of the truck, which he purchased for an undisclosed amount from a Charleston, S.C.-area entrepreneur known for repurposing vintage vehicles as pizza-oven food On-Farm Dining trucks. “I felt it was an easy transition, Bella Festa offers much of the menu keeping our brand similar.” that’s available at the Bela Luna The truck, he said, al— pizzas, seasonal salads, ready has stopped traffic. appetizers, breads and As he drove it into Hargelato. The truck has It fit the feel of our risonburg for the first a four-tap draft-beer brick-and-mortar Bella time, he said a man system (clients can orgot out of his vehicle der kegs of any brew Luna. I felt it was an at a stoplight, stood the restaurant’s supeasy transition. in front of the truck pliers offer), and wine and took pictures of and full-bar service Wade Luhn, it, stopping only when also is available. Bella Festa Luhn leaned on the Though the truck owner horn after the light turned will be at different events, green. Luhn said he’s targeting caLuhn said he’s particulartering jobs with their set menus ly pleased the truck features an versus the individual orders that come open-kitchen concept, just like his with food-truck businesses. restaurant. His catering staff prepares Kelli Stover, sales and marketing pizza the same way it’s done in the manager for Showalter’s Orchard and restaurant, allowing people to see the Greenhouse and the Old Hill Cider tapculinary creative process. room, said Bella Festa was a hit when “The first couple of gigs we’ve done,” it visited the farm outside Timberville he said, “people have really enjoyed on May 20 for its Festival of Flowers. watching the process. My staff is talking “I think people really enjoy everyto them. The food is out in the party.” thing Bella Luna in Harrisonburg has
LEFT: Bella Luna introduced its new food truck, Bella Festa, at the Showalter Orchard and Greenhouse for the Festival of Flowers on May 20. BELOW: Logan Hill works May 20 at Bella Festa food truck, a restored 1954 GMC firetruck with a wood-fired oven. Photos by Stephen Swofford / DN-R
“
to offer, especially the wood-fired pizzas,” she said. “It was a great opportunity to have their pizza everybody has grown to love here at the orchard.” The old firetruck was restored by an
Ohio man and bought by the South Carolinian to convert into a mobile pizza kitchen, Luhn said. The wood panels See CATERING, Page 12
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Harrisonburg, Va.
Tuesday, June 27, 2017
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Valley Cattle Head Back To China’s Market By VIC BRADSHAW Daily News-Record
HARRISONBURG — Cattle that once chewed their cud in the Shenandoah Valley finally can be what’s for dinner in China again. The U.S. Department of Agriculture announced in June that an agreement has been reached to resume beef exports to China. The country has banned U.S. beef since December 2003 after bovine spongiform encephalopathy, commonly known as mad cow disease, was found in a Washington state animal. The deal gives American beef farmers access to a market that’s surged to $2.5 billion in 2016 from only $275 million in 2012, according to the USDA. “This opportunity is relevant in both the quantity of beef it will add to the Chinese market and the quality,” said Jason Carter, executive director of the Virginia Cattlemen’s Association and Virginia Beef Industry Council. “There’s already a taste
for American beef there from what they call gray market channels that have existed for years. “This gives us the opportunity to ship cuts that are not as popular in the U.S., such as organ meats, but also another market for high-quality beef.” Tony Banks, commodity marketing specialist with the Virginia Farm Bureau Federation, said the sheer size of the Chinese market means U.S. beef producers can benefit by capturing just a small part of sales. New Zealand, Australia and South America are serving the market. However, he thinks meat from America’s grain-fed cattle will differentiate itself from the nations that produce mostly grass-fed beef because it will contain more fat, be more marbled and taste better. “This is one of a very few growth opportunities for the beef market,” Banks said. “Here in the states, poultry consumption per capita outpaces beef, but the Chinese
Local expertise. Fast decisions.
B A N K AT U N I O N .CO M 5 4 0 . 56 8 . 20 8 0
See BEEF, Page 10
Stephen Swofford / DN-R
Angus cattle find shade under a tree June 8 on a ranch off Green Hill road in Linville. The U.S. has reached an agreement to resume beef sales to China, which has banned American imports since 2003. China’s beef market surged to $2.5 billion in sales during 2016, up from $275 million in 2012.
Experience better business banking at Union Bank & Trust. Your business is unique, just like our banking solutions. At Union, our team of local experts know where to start and can guide you along the way. When you’re ready to bank better, bank at Union.
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SHENANDOAH VALLEY BUSINESS JOURNAL
Tuesday, June 27, 2017
Harrisonburg, Va.
Nancy Beahm Expands Real Estate Team City Tooth-Replacement Practice Opens Movers
FROM PAGE 3
Jonathan Bladen Added To Nancy Beahm Real Estate Team HARRISONBURG — Jonathan Bladen as joined the sales team at Nancy Beahm Real Estate. A Woodstock native and graduate of Central High School, Bladen comes to the firm after a stint as a former personal banker at SunTrust Bank in New Market. He previously managed a Sprint wireless outlet in Harrisonburg for Shentel and a RadioShack in Strasburg. Bladen The Harrisonburg residents will be serving clients looking to buy or sell homes in the Rockingham and Augusta county markets and the cities of Harrisonburg, Staunton and Waynesboro.
Nancy Beahm Real Estate is a Harrisonburg-based firm affiliated with Weichert, Realtors. — Vic Bradshaw
City’s Siciliano Lands Post With Demandbase In Silicon Valley HARRISONBURG — City resident Mark Siciliano has landed a new Silicon Valley job. Siciliano recently was hired by Demandbase as vice president of field enablement and sales operations. The San Francisco tech company provide marketing solutions built specifically to help their business clients Siciliano market their materials, goods or services to other businesses. See MOVERS, Page 7
Scene
FROM PAGE 3
recently paid out more than $2 million in cash dividends to member-owners for their patronage. The annual payout was approved by the board of directors of the financial cooperative that supports rural homeowners and businesses. The patronage dividend total for its entire territory was $15 million, which raised dividend payouts since 2001 to $213 million. Farm Credit’s local branch is at 4646 S. Valley Pike, just south of the Harrisonburg city limits. — Vic Bradshaw
Harrisonburg Dentist Opens Tooth-Replacement Practice HARRISONBURG — Dr. Michael Doe has opened an office, Affordable Dentures & Implants, in the city, according to a news release. The practice focuses on tooth-replacement care, including dentures, extractions
and dental implants. New patients can receive free consultations and X-rays. Affordable Dentures & Implants is in Suite 82 in Spotswood Valley Square at 1790 E. Market St. It is a franchise operation owned and operated by dentists. — Vic Bradshaw
Farm Service Agency Seeking County Committee Nominations HARRISONBURG — The Rockingham County Farm Service Agency is taking nominations through Aug. 1 for a seat on the county committee. FSA county committees are comprised of farmers and ranchers elected by their peers to provide input on federal farming programs administered at the local level. Members help direct local FSA policy. A nominee is sought from southwestern Rockingham County, designated as the area east of Interstate 81 and south of Linville-Edom Road. The towns of Dayton, See SCENE, Page 7
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Chamber Of Commerce Position Filled Local Printing Companies Combine Movers
FROM PAGE 6
In his new role, he’ll be in charge of enablement and operation strategies. He will remain in Harrisonburg. Siciliano, who earned bachelor’s degrees in finance and accounting and a master’s degree in business administration at James Madison University, previously was managing senior director of global field enablement for Marketo and senior director of the Oracle Sales Academy. — Vic Bradshaw
Tamberrino Takes State Chamber Of Commerce Executives Post HARRISONBURG — Frank Tamberrino, president and CEO of the Harrisonburg-Rockingham Chamber of Commerce, was installed in June as the president of the Virginia Association of Chamber of Commerce Executives. The local chamber leader assumed the state post at the association’s annual meeting in Lynchburg and will head
the organization for the 2017-18 term. In the role, Tamberrino will preside over association board meetings and represent the organization on the Virginia Chamber of Commerce Board of Directors. Hired by the Harrisonburg-Rockingham chamber in 2009, he holds a bachelor’s degree in urban affairs and a master’s degree in urban and regional planning from VirTamberrino ginia Tech. He has more than 30 years of experience in the chamber industry. The Virginia Association of Chamber of Commerce Executives focuses on the development of the professional skills of chamber executives, staff members and volunteers from around Virginia. — Vic Bradshaw See MOVERS, Page 14
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FROM PAGE 6
Bridgewater and part of Mount Crawford are in the area. The Rockingham County committee is comprised of four members, each serving a three-year term. The panels meet monthly and make decisions on disaster, conservation, emergency and commodity price support loan programs; county office employment; and other matters. Farmers and ranchers are allowed to nominate others or themselves, and farming organizations also can nominate producers. To be eligible, a person must participate in or cooperate with a program administered by the agency and live in the area he or she would serve. Election ballots will be mailed to eligible voters beginning Nov. 6, and completed ballots must be received in the county office by Dec. 4. The new representative’s term begins Jan. 1. Candidates must fill out an FSA669A nomination form to be considered. The form must be received in the
local FSA office or postmarked by Aug. 1. Visit fsa.usda.gov/elections for more information. — Vic Bradshaw
McClung Acquires Charlottesville Press, Consolidates Operations WAYNESBORO — McClung Cos. has integrated the commercial print services of Charlottesville Press, a Charlottesville printer since 1909, into its full-service graphic communication organization of printing, mailing and integrated marketing services. According to a June 5 news release, the combined company will operate out of McClung’s facility in Waynesboro. Rod S. Thomas, director of operations at Charlottesville Press, will continue as account executive for his clients at McClung, and Rodney Thomas, president of Charlottesville Press, will be an adviser. McClung provides graphic communication needs throughout Virginia. — Staff Reports
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SHENANDOAH VALLEY BUSINESS JOURNAL
Tuesday, June 27, 2017
Harrisonburg, Va.
Big Time: Community Banking Sees Growth Spurt By PRESTON KNIGHT
in Mount Jackson, Woodstock, Strasburg, Front Royal, Stephens City, and Winchester. HARRISONBURG — As they expand Harvard said there were no fears their horizons, community banks are within First Bank of overextending itconfident in their ability to overcome self because company officials trusted one big business challenge: grow with- that they managed the growth properout losing that intimate, faly, picking the right spots and, miliar feel that brought them every bit as important, the success to begin with. “You really do right people. “It’s a fine line,” said Scott need to manage “We were further reassured Harvard, president and CEO [of our decision] when we met it. Bigger isn’t of First National Corp., of the employees,” he said. “They always better. are dedicated to the customer.” which First Bank is a subsidiary. “You really do need You can get too For community banks in the to manage it. Bigger isn’t alShenandoah Valley, growth has big for your ways better. You can get too come steadily since the econbritches.” big for your britches.” omy has turned around in reFirst Bank went up sev— SCOTT HARVARD cent years. They are mindful FIRST NATIONAL CORP. of when they might become too eral belt sizes two years ago, when it closed on a deal to big, but that issue is not a conacquire six Bank of America cern for now. branches, including locations in Elk“Sometimes, opportunities just preston, Woodstock, Staunton and Waynes- ent themselves,” said Neil Hayslett, boro. At the time, the Strasburg-based Farmers & Merchants Bank’s executive financial institution operated 12 offices vice president and chief administrative
Special to the SVBJ
Daniel Lin / DN-R
Amanda Boatright of Elkton (right) helps her son, Dylan, 15, open an account at First Bank with Banking Center Manager Jackie Hensley. The bank grew two years ago when it acquired six Bank of America branches in Elkton, Woodstock, Staunton and Waynesboro. officer. “There’s no magic formula to us, but we’ve tried to look at each location and its potential.”
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Timberville-based Farmers & Merchants increased its footprint within Augusta County by opening three branches since 2015. It also added a Grottoes branch in Rockingham County last year, and is building its 14th overall — scheduled to open on Aug. 7 — at Stone Port Retail Park, a new development at Stone Spring and Port Republic roads just south of Harrisonburg. Farmers & Merchants also has vehicle loan offices in Penn Laird and Fishersville, and wholly owned subsidiary VBS Mortgage in Harrisonburg. Hayslett said some of the growth is a result of “unique situations.” For example, in the case of adding a Craigsville location, F&M viewed it as an underserved market where the bank already had an ATM. The bank bought a former BB&T location that the town owned. “That fit our community mission,” Hayslett said. “Had we not already been in the northern end of Staunton, we may not have considered Craigsville.” See BANKING, Page 9
SHENANDOAH VALLEY BUSINESS JOURNAL
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No Cookie-Cutter Feel At New Branches as is increasing a bank’s lending capacity. Giving employees an opportuIn the spirit of being a community nity to advance professionally, such as bank, there’s no cookie-cutter feel to through promotions, is another importnew branches at F&M. Hayslett said ant reason for institutional growth, he a branch must conform to the area it said. is serving. That means smaller, in the At First Bank, Harvard said, expancase of Craigsville, and larger in Fish- sion opportunities usually must first ersville, a “flagship” branch for address two key questions: how Augusta County, he said. robust is the market under “You want to have a consideration, and is it blend of facilities that contiguous to existing meets those needs,” If we can get branches? Hayslett said. “We the people, we’d The overriding intry to either lease in good locations or buy fluence, however, is almost go to a building that’s althe team that can be any market. ready set up perfectly assembled. to go in and give it our “If we can get the Scott Harvard, look, our feel.” people, we’d almost go First National Corp. Regardless of how to any market,” Harand where growth ocvard said. “We’d go to curs, he said development Charlottesville. We might is “vital” to a bank’s efforts go to Richmond.” to keep up with the rising costs in areas such as compliance and health Keep Decisions Local insurance. On a larger scale is the growth Harvard said increasing the earnings and value of stock for shareholders of Richmond-based Union Bank & is a major driving force behind growth, Trust. In May, its parent company,
Banking
FROM PAGE 8
“
Daniel Lin / DN-R
Kristen Lilly of Elkton makes a deposit at First Bank in downtown Elkton. Union Bankshares Corp., announced a merger agreement with Xenith Bankshares Inc. Once that deal becomes final in the coming months, the move will increase Union’s presence in the Tidewater area
of Virginia, but also give it a network beyond the state for the first time, expanding to North Carolina and Maryland. Union has more than 100 branches See BANKING, Page 11
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SHENANDOAH VALLEY BUSINESS JOURNAL
Tuesday, June 27, 2017
Harrisonburg, Va.
The U.S. has reached an agreement to resume beef sales to china, which has banned American imports since 2003. China now imports $2.5 billion in beef. Stephen Swofford / DN-R
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REWARDS POINTS
Chinese Market Was Small In 2003 Beef
FROM PAGE 2
market is so huge that just a small purchase relative to the potential volume in China can have a very good effect here.”
Slow Growth Expected America, according to the USDA, produces more beef than any nation and is the world’s fourth-largest beef exporter. Global sales topped $5.4 billion last year. The Chinese market was small when BSE was discovered on Dec. 24, 2003, in what came to be known as “the cow that stole Christmas.” At the time, though, the U.S. provided 70 percent of the Chinese intake. The deal to re-establish beef exports has been in negotiation since last year, so the announcement wasn’t a surprise. But while there might be immediate demand for U.S. beef, it will take some time for supply lines to be established. Carter said he doubts Virginia’s cattlemen will see any difference in prices or demand until 2018 at the earliest, and growth should be gradual. “We’re not going,” he said, “from zero to a hundred.” Banks said he thinks the biggest steaks
and roasts likely will be most popular in China. He expects those cuts to be in featured prominently at hotels and high-end grocery stores frequented by Americans living there and some of the more affluent Chinese citizens. A key factor, though, will be the terms under which the nation will accept U.S. beef. “[The Chinese] can be very particular at times,” said Banks, “with individual shipments of food products. We’ll have to see what the details are and how they shake out.” Both men said they think some Virginia cattle farmers might increase herd sizes because of added confidence in the market from the Chinese deal. The new market should help support, if not slightly raise, the prices farmers get for their cattle, Carter and Banks said, but neither thinks the extra demand will trigger changes in what U.S. consumers pay for beef. “For the Chinese market to drive up the price of beef,” Carter said, “we’d have to see a pretty steep uptick in exports.” Contact Vic Bradshaw at 574-6279 or vbradshaw@dnronline.com
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‘Getting Bigger Is A Question Of Finances. ... It’s Increasingly Difficult ... To Afford’ Banking
FROM PAGE 8
in Virginia, including about a dozen around the Valley. Bill Cimino, its vice president and director of corporate communications, said a number of new regulations applied to the bank once it went over the $10 billion asset threshold, necessitating growth. “We have to grow at a certain point to cover all expenditures,” he said. “Getting bigger is a question of finances. … It’s increasingly difficult for community banks to afford to keep up with regulations.” As Union grows and expands services to match what bigger banks offer, it will still be able to retain a community banking mindset because each office is equipped to serve a specific area, Cimino said. In other words, the philosophy for growth at the First Bank and F&M level translates to a bigger bank undergoing similar progress. “We want to be headquartered in Virginia. We feel it is important to the Virginia economy to have a bank that
Construction progresses on the Farmers & Merchants bank branch on Stone Spring Road in Harrisonburg. The bank opened three new branches in Augusta County since 2015. It also added a Grottoes branch last year. The city branch being built is its 14th overall. It’s scheduled to open on Aug. 7. Daniel Lin / DN-R
knows Virginia because we’re here. … We’re your neighbors,” Cimino said. “What works in Harrisonburg may not work in Virginia Beach. We know
there’s a difference. There’s also a difference between Harrisonburg and Blacksburg. “To be able to have that expertise in the
local area and meet the needs of customers there is important to us.” See BANKING, Page 13
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SHENANDOAH VALLEY BUSINESS JOURNAL
Tuesday, June 27, 2017
Harrisonburg, Va.
Finding The Right Vehicle Wasn’t Easy Catering
FROM PAGE 4
behind the beer taps are reclaimed from the bed of another truck. Finding the right vehicle wasn’t easy. He needed one that would allow a wood-fired oven to “withstand the rigors of the road� but also wanted something with “personality.� Luhn considered some trailer units but didn’t like them, and he knew he’d found what he wanted when he saw the restored firetruck. “It’s bringing a certain element of style,� he said, “creating a vibe that I like.� The truck, said Luhn, provides an opportunity to fulfill his vision of “creating a space where people come together and enjoy food and one another.� The Bella Festa truck has a rebuilt diesel engine and new transmission, which Luhn said made it easier to drive. He plans to keep it mostly with-
in a 30-mile radius. While admitting taking a restaurant on the road is “a bit of a hassle,� he said it allows him to move closer to his farming roots. Before becoming a restaurateur, Luhn said he operated a community supported agriculture farm in New England. He’s trying to get land nearby to begin farming again to grow ingredients used in his establishments and potentially create an ultimate farm-to-table opportunity. “As I move into the farming idea, from a farm-to-table standpoint, it would fit in that aspect of the restaurant,� he said of the catering truck. “I’d like to pull it onto the farm on the weekend, have a gathering using produce from the farm going right onto the pizza.� Contact Vic Bradshaw at 574-6279 or vbradshaw@dnronline.com
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Harrisonburg, Va.
SunTrust Location Sold To Frontier Bank Sits In Prime Spot On City’s Main Retail Corridor By VIC BRADSHAW Daily News-Record
HARRISONBURG — The company that brought Walmart Neighborhood Market to the Stone Port Retail Park has purchased property in a prime location on the city’s main retail corridor. 1905 Harrisonburg LLC, a company affiliated with Miami-based Frontier Development LLC, paid SunTrust Bank $1.2 million for its former branch at the corner of East Market Street and University Boulevard. The deal closed May 1 but wasn’t recorded at the Rockingham County Courthouse until May 16. The 34,848-square-foot parcel at 1905 E. Market St. has been valued at $1,085,400 since Dec. 28, 2015, following a reassessment. SunTrust closed the branch Jan. 31. A spokesman with the Atlanta-based
company official said the office was closed after the bank reassessed the market’s needs. The deed, however, stipulates that for a year from the sale date, the property can’t be used “as a commercial bank, savings bank, savings and loan association, trust company, credit union or mortgage loan production office.” An automated teller machine also is barred from the property unless SunTrust leases it from Frontier, as are any signs announcing the property as the future home of a financial institution. The property, which includes the bank building and surrounding parking lot, has access to and from University Boulevard and the Valley Mall parking lot. “I’ve definitely found that property fronting on East Market Street from [Interstate] 81 to the city limits is highly desirable and should generate a lot of interest,” said Brian Shull, Harrisonburg’s economic development director. Shull said the small size of the lot and temporary restriction on financial in-
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stitutions limits options for immediate redevelopment. Many restaurants are interested in space along the corridor, he said. Potential retailers seeking access to East Market’s high traffic counts have other street-front options. Local partnership 1756EM LLC will demolish two structures and put up a 9,300-square-foot retail building at 1756 East Market; Aston Properties is advertising a 1.01-acre outparcel in front of Hobby Lobby at 1835 East Market; and German grocer Aldi has extra space that could be developed at the 1990 East Market site it’s developing for a store. Frontier Development bought land in Stone Port and convinced Walmart to put its first grocery store in the Harrisonburg market there. The company’s website indicates that it’s still marketing 15,479 square feet of space next to the grocery. Contact Vic Bradshaw at 574-6279 or vbradshaw@dnronline.com
Tuesday, June 27, 2017
13
‘Integral Part Of ... Communities’ Banking
FROM PAGE 11
Harvard said growth is best achieved when it can be assured that decision makers are placed in every office. Both he and Cimino referenced the appeal of community banks in that customers do not need to wait for corporate approval in another state, or possibly another time zone, to have their needs addressed. “We think community banking is an integral part of Virginia communities,” Harvard said. The response from customers to the Bank of America acquisitions has been positive at First Bank, he added, as they have appreciated broader access to services. Bigger, then, has been better so far. “There’s been no pushback,” Harvard said. Contact the Shenandoah Valley Business Journal at svbjnews@dnronline.com
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SHENANDOAH VALLEY BUSINESS JOURNAL
Tuesday, June 27, 2017
Employee Of The Quarter At McClung Movers
FROM PAGE 7
McClung Recognizes Gordon As Employee Of The Quarter WAYNESBORO — Teresa Gordon, mailing specialist, was named employee of the quarter at Waynesboro-based McClung Cos. Established in 1992, the award is based on recommendations from fellow workers and recognizes McClung employees who display extraordinary dedication to their jobs. Gordon Gordon, who has worked one year at McClung, lives in Mount Solon. McClung provides graphic communication needs throughout Virginia. — Staff Reports
Serco Group Appoints David Dacquino As Its New CEO RESTON — Serco Group recently announced the appointment of David J. Dacquino as chief executive officer of Serco Inc. (Serco’s Americas division). The company, based in Reston with a location in Harrisonburg at 1450 Technology Drive, said in a news release that Dacquino’s appointment follows the announcement in February that Dan Allen had informed the business of his intention to retire from this role in mid-2017. Dacquino leads Serco Inc.’s defense business, and will take on Allen’s responsibilities over the coming weeks, including joining Serco Group’s Executive Committee, according to the company news release. Before joining Serco in 2015, he served as president and CEO of SkyLink, a leading aviation and logistics service provider with international operations in over 60 countries. Serco Inc. has about 8,000 employees and annual revenue of $1 billion. It is a wholly owned subsidiary of Serco Group plc, a $5 billion international business that provides a variety of services to all branches of the U.S. military, as well as to federal civilian agencies, state and local agencies, and commercial customers. — Staff Reports
Harrisonburg, Va.
Local Ledger Central Valley Area Home Sales Median Price Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro
May 2017
May 2016
Pct. Change
$172,000 $225,000 $174,500 $171,700 $185,076 $145,000 $168,450
$174,750 $185,000 $170,500 $110,000 $209,000 $137,775 $144,200
-1.57% 21.62% 2.35% 56.09% -11.45% 5.24% 16.82%
Days On Market Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro
May 2017
May 2016
Pct. Change
18 37 130 203 28 81 38
28 49 128 273 54 56 62
-35.71% -24.49% 1.56% -25.64% -48.15% 44.64% -38.71%
Units Sold Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro
May 2017
May 2016
Pct. Change
53 95 60 12 90 51 40
46 87 53 15 80 30 37
15.22% 9.20% 13.21% -20.00% 12.5% 70.00% 8.11%
Sources: Funkhouser Real Estate Group; Real Estate Business Intelligence
Retail Sales (in millions) Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro
March 2017
$113.4 $60.2 $37.9 $14.9 $49.7 $35.4 $45.8
Source: Weldon Cooper Center for Economic and Policy Studies
Unemployment Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro
April 2017
April 2016
March 2017
4.0% 2.9% 3.3% 4.9% 3.2% 3.3% 3.8%
3.7% 3.0% 3.2% 5.0% 3.2% 3.4% 3.6%
4.2% 3.2% 3.5% 5.9% 3.4% 3.6% 4.0%
Source: Virginia Employment Commission
Labor Force Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro
April 2017
April 2016
March 2017
25,159 41,790 20,806 11,736 37,641 12,211 10,373
24,307 40,662 20,736 11,435 36,657 11,877 10,057
24,898 40,982 20,623 11,419 37,306 12,205 10,373
Source: Virginia Employment Commission
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BUSINESS JOURNAL Your Customers Read the
BUSINESS JOURNAL Your Potential Customers Read the
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It’s Where Business Meets Business Call today to advertise in the next edition of the Shenandoah Valley BUSINESS JOURNAL
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Harrisonburg, Va.
SHENANDOAH VALLEY BUSINESS JOURNAL
Tuesday, June 27, 2017
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Tuesday, June 27, 2017
SHENANDOAH VALLEY BUSINESS JOURNAL
Harrisonburg, Va.
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