Virginia Banking Sept/Oct 2014

September/October 2014

Sixty-One

Bankers Graduate

from Virginia Bankers School of Bank Management

IN THIS ISSUE

Q&A WITH BROWNING HERBERT | 200 BANKERS GATHER FOR COMMITTEEPALOOZA | KNOW YOUR OPTIONS

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September/October 2014

2014-2015 Officers and Directors of the Virginia Bankers Association John R. Milleson, Chairman, Bank of Clarke County T. Gaylon Layfield, III, Chairman-Elect, Xenith Bankshares, Inc. Gary R. Shook, Immediate Past Chairman, Middleburg Bank G. William Beale, Union First Market Bank Christopher W. Bergstrom, Cardinal Bank Michael W. Clarke, Access National Bank J. Peter Clements, The Bank of Southside Virginia Barry C. Elswick, TruPoint Bank Gary Gore, Bank of America, NA Scott C. Harvard, First Bank, Strasburg William H. Hayter, First Bank & Trust Company G. Lyn Hayth, III, Bank of Botetourt Glen Kelley, Wells Fargo Bank Brad E. Schwartz, Monarch Bank John G. Stallings, SunTrust Bank Susan K. Still, HomeTown Bank Daniel G. Waetjen, BB&T Michael O. Walker, Benchmark Community Bank Robert Wojciechowicz, Capital One Financial Corp., Richmond AT-LARGE MEMBERS Benefits Corporation Chair J. Peter Clements, The Bank of Southside Virginia Management Services Inc. Chair G. Lyn Hayth, III, Bank of Botetourt Government Relations Committee Chair Ron Haley, River Community Bank, NA VBA Education Foundation Chair Charles Majors, American National Bank & Trust Co.

features

SUBSCRIPTIONS If you would like to subscribe to Virginia Banking, contact Melanie Reilly at mreilly@vabankers.org.

Bruce T. Whitehurst President and CEO Virginia Bankers Association

Virginia Banking is published bi-monthly. Copyright 2014.

Melanie Reilly Communications Coordinator Virginia Bankers Association

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Sixty-One Bankers Graduate from Virginia Bankers School of Bank Management

15

Q&A with Browning Herbert, VBA Leadership Division Chairman

20

Know Your Options: Design a Loan Model That Works Best for Your Bank

21

7th Annual CommitteePalooza Brings Together 200 Bankers

EDITORIAL & EXECUTIVE OFFICES 4490 Cox Road Glen Allen, VA 23060 804-643-7469 Fax 804-643-6308 www.vabankers.org

12

cover

in every issue 4 Calendar of Events 5 Insights 6 Worth Noting 8 Legislative Update 10 Legal Line 11 Washington Update 18 Compliance Corner 22 Bankers on the Move

Send us your thoughts or ideas on Virginia Banking! Please email Melanie Reilly at mreilly@vabankers.org. Has your information changed? Please email Melanie Reilly at mreilly@vabankers.org with your new contact information.

September/October 2014 | Virginia Banking 3

Calendar of

Visit www.vabankers.org/event-calendar to learn more about these events.

GOVERNMENT RELATIONS EVENTS

HARRISONBURG LEGISLATIVE LUNCHEON

OCTOBER 15

WEBINARS COMMERCIAL REAL ESTATE APPRAISALS: REVIEWING AND INTERPRETING

CHARLOTTESVILLE LEGISLATIVE LUNCHEON

OCTOBER 16

BANKER DAY, RICHMOND

VBA/ABA GOVERNMENT RELATIONS SUMMIT, WASHINGTON DC

VBA BENEFITS CORPORATION EVENTS

BVBA BENEFITS CORPORATION ANNUAL FALL MEETINGS, VARIOUS CITIES

OCTOBER 7, 8, 9

CREDIT MANAGEMENT CONFERENCE, CHARLOTTESVILLE

OCTOBER 6-7

COMMERCIAL LENDING SCHOOL, GLEN ALLEN

OCTOBER 15-16

ENTERPRISE RISK MANAGEMENT CONFERENCE, GLEN ALLEN

OCTOBER 28

REAL ESTATE LENDING COMPLIANCE SEMINAR, CHARLOTTESVILLE

NOVEMBER 4-6

WOMEN IN BANKING CONFERENCE, RICHMOND

NOVEMBER 5

REAL ESTATE LENDING COMPLIANCE SEMINAR, SANDSTON

DECEMBER 16-18

SUCCESSFUL WORKOUT STRATEGIES FOR PROBLEM LOANS

OCTOBER 7

AG LENDING IN A NEW BUSINESS CLIMATE

OCTOBER 7

ENHANCING SHAREHOLDER VALUE THROUGH CORPORATE TRANSACTIONS

OCTOBER 14 COMMERCIAL REAL ESTATE LOAN DOCUMENTATION

OCTOBER 15

MARCH 23-25, 2015

WEBINARS

KEYS TO UNDERSTANDING PERSONAL AND GLOBAL CASH FLOW FROM TAX RETURNS

JANUARY 15, 2015

INSTRUCTOR-LED SEMINARS

OCTOBER 14

OCTOBER 7 HMDA UPDATE 2014

OCTOBER 14

COMMERCIAL REAL ESTATE CASH FLOW: ANALYZING INCOME- PRODUCING OR RENTAL REAL ESTATE

OCTOBER 14

OCTOBER 16

THE DRIVE FOR REVENUE: NEW FRONTIERS IN COST CONTROL

OCTOBER 17

MANAGING GENERATIONS IN TODAY’S WORKPLACE

OCTOBER 17

WEBCAST: LENDING COMPLIANCE UPDATE

OCTOBER 21

IRA BENEFICIARY DISTRIBUTIONS

OCTOBER 22

RISK MANAGEMENT FOR COMMUNITY BANKS

OCTOBER 22

COLLECTING PAST DUE ACCOUNTS UNDER THE NEW CFPB REQUIREMENTS: ARE YOU READY?

OCTOBER 23 THE FIRST THREE CALLS ON A PROSPECT: PROVEN TECHNIQUES FOR BUILDING MOMENTUM

OCTOBER 27 ANALYZING THE COMPANY’S LIQUIDITY POSITION USING THE CASH CONVERSION CYCLE

OCTOBER 28 IRA REPORTING

OCTOBER 29

SBA GUARANTEED SMALL BUSINESS LENDING OVERVIEW

OCTOBER 29

THE EVOLUTION OF SOCIAL TECHNOLOGY – ARE YOU KEEPING UP (AND CONNECTING) WITH YOUR CUSTOMERS?

OCTOBER 30

VBA LEADERSHIP DIVISION EVENTS VALLEY REGION VIRGINIA LEADERSHIP DIVISION EVENT, HARRISONBURG

4 Virginia Banking | September/October 2014

LOAN UNDERWRITING MISTAKES

OCTOBER 15 LEADERSHIP CONFERENCE, VIRGINIA BEACH

NOVEMBER 13

www.vabankers.org

Insights The Flagship

W Bruce Whitehurst President and CEO, Virginia Bankers Association

e often refer to the Virginia Bankers School of Bank Management as the flagship of our expansive VBA Education & Training programs, and with good reason: since becoming a three-year program in 1959, our Bank School has graduated 3,702 bankers, equipping them to make a greater impact on their careers and at their bank. As a member of the class of 1990, I am proud to be counted among our Bank School alumni and know firsthand what an amazing experience it provides.

Our resident session in late July was representative of what makes our Bank School so great, as we brought together outstanding faculty members and banking fellows, bankers on our board of trustees, VBA staff members and of course a couple hundred banker students at the school. Many among these groups often comment that Bank School is one of their favorite weeks of the year; it is truly a remarkable institution and a gem for Virginia banking.

As with so many things, banking leaders who came before us had the foresight to establish our Bank School – initially as a one-year program – in 1938 at the University of Virginia and in partnership with the McIntire School of Commerce.

Seventy-six years later, we continue this valued partnership with the McIntire School and hold the resident session at the Darden Graduate School of Business in a setting that is hard to beat.

In 1960, then-VBA President Harry V. Lindsey offered this momentous report at the VBA Annual Meeting: “One of the most significant accomplishments of the year was the establishment of our School of Bank Management. For some time it was the feeling of the trustees that a major revision was necessary in the education program sponsored by our association. Consequently, under the leadership of Robert H. Daniel who has since been replaced

by Marchant D. Wornom as chairman of the trustees, a new format was established, which is now known as the School of Bank Management. Not only in my opinion, but in the opinion of all who

have observed it, this is far and away the most outstanding state-sponsored education venture yet devised. I think you should know that students who enroll in this school do so for a threeyear course. They receive outstanding instruction from leaders in the banking and academic world.

When they return to their banks in the late summer, they begin an intensive series of extension problems, which are carefully graded by competent persons and these grades are made a part of the records of the individual students. At the conclusion of their three-year course, these students will undergo a thoroughly comprehensive examination and as a result, Virginia banks will be staffed as they have never been staffed before by well-trained management succession personnel.”

Nearly 55 years later, we are saying all the same things about our Bank School, even as the curriculum has evolved along with the industry and there has been the expected and natural rotation of faculty over time. What foresight these bankers had in 1959 to convert our one-year program to the three-year Bank School that still makes such a positive impact on Virginia banking today!

Dan Collins did not include our Bank School as an example when he wrote his bestseller, Built to Last, but he certainly could have. When you read President Lindsey’s report to the VBA membership at the 1960 VBA Convention and recognize that the same could be said about our school today, we clearly have a valuable institution that was built to last.

The same can certainly be said of the Virginia Bankers Association. One hundred and twentyone years old and as strong as ever, the VBA emulates our Bank School as an organization that is valuable and impactful to Virginia banking. We have an untold number of current and past banking leaders to thank for the strength of the VBA, and we know our future leaders will keep the VBA strong for many years to come. Our training flagship – the School of Bank Management – plays a key role in making this so.

Email Bruce Whitehurst at bwhitehurst@vabankers.org with any comments on this article. www.vabankers.org

September/October 2014 | Virginia Banking 5

Noting

Worth

VBA BANKPAC CONTRIBUTES $110,000 TO ABA’S FEDERAL PAC CAMPAIGN More than 200 state association executives and bankers joined together to discuss the industry’s most pressing priorities at the American Bankers Association Summer Leadership meeting in Denver this July. States at the meeting presented BankPAC checks exceeding $881,000.

The Virginia Bankers Association contributed $110,000 to this total, thanks to the support and leadership of our members. The VBA and ABA BankPAC campaigns coordinate closely on federal PAC contributions and are effective because of the support of so many banks and their dedication to the industry.

WE WILL MISS …

We are very sad for the loss of J.D. Morefield, who passed away July 18 following a brief illness. Morefield was one of the founders of Highlands Union Bank, where he served as chairman of the board for 27 years. He was a graduate of Virginia Military Institute and T.C. Williams School of Law. Morefield practiced law for over 40 years in Washington County and was a well-known resident of Abingdon. Our thoughts and prayers are with his family during this difficult time.

BUREAU OF FINANCIAL INSTITUTIONS DEPUTY COMMISSIONER JOHN CROCKETT RETIRES, ROBERT HUGHES ASSUMES ROLE The Bureau of Financial Institutions announced the retirement of John Crockett, deputy commissioner, effective Aug. 29. At that time, Robert W. Hughes assumed the role of deputy commissioner of financial institutions for the bureau’s Bank and Savings Institution Section.

Hughes began his career at the Bureau in 1980 as a bank examiner trainee, and most recently held the position of manager of examinations, overseeing a portfolio of 26 statechartered banks. Hughes has been the examiner-in-charge of banks and thrifts of all sizes and complexities, including Capital One, Signet Bank, First Virginia Bank, Crestar Bank and Central Fidelity Bank. Hughes holds a B.S. and M.B.A. degree, is a graduate of the LSU Graduate School of Banking and is a Certified Internal Auditor.

6 Virginia Banking | September/October 2014

HIGHLANDS BANKSHARES NAMES CHAIRMAN, COMPANY PRESIDENT AND BANK PRESIDENT Following the death of J.D. Moorefield, the Highlands Bankshares Inc. board appointed James Moore Jr. as chairman of the board.

Moore most recently served as the company’s president.

In addition, Highlands Bankshares named Charles Olinger president. Olinger – a certified public accountant and principal partner with Blackley Olinger & Associates PLLC – has been a company director since 1995 and a director of Highlands Union Bank since 1988.

Samuel Neese, executive vice president and CEO of the company and Highlands Union Bank, took on the additional role of bank president. Neese has been the CEO of Highlands Bankshares Inc. since 1995 and its subsidiary, Highlands Union Bank, since 1991.

TWO VIRGINIA BANKERS GRADUATE FROM THE GRADUATE SCHOOL OF BANKING The Graduate School of Banking at Colorado (GSBC) recently completed its 64th Annual School Session, with two banking professionals from Virginia as a part of the class of 2014. Melinda Cooper and Katherine Laidig of the Federal Reserve Bank of Richmond completed the three-year program on July 24.

GSBC prepares bank-industry professionals to take on senior management roles within their organizations. During the 25-month program, which meets two weeks each July for three consecutive years, students complete six intersession research projects, on-campus coursework, exams and a bank-management simulation.

SIX VIRGINIA BANKERS NOMINATED FOR THE VIRGINIA BUSINESS 2014 CFO AWARDS Congratulations to the following Virginia bank CFOs who were nominated for this year’s Virginia CFO Awards, hosted by Virginia Business magazine: • M. Shane Bell, CPA, First National Corp.

• Thomas F. Cherry, CPA, C&F Financial Corp.* • Clyde A. Cornett, CPA, Virginia Community Captial, Inc.* • Michelle A. Crook, Bank of Botetourt • Laurie Grabow, CPA, Old Point National Bank • Kimberly B. Snyder, CPA, Valley Financial Corp./Valley Bank *Category finalists

UNION MORTGAGE GROUP HIRES JAMES G. CARTER III AS PRESIDENT AND CEO Union Mortgage Group Inc., a non-bank affiliate of Union Bankshares Corp. has hired James G. “JG” Carter III as president and CEO. Carter has more than 30 years of experience in the mortgage industry starting with United Virginia Mortgage. A member of the Mortgage Bankers Association of America, Carter is past chairman of both the association’s Residential Loan Production Committee and The Wholesalers Subcommittee, and previously served on the organization’s Residential Board of Governors. He is on the board of Housing Virginia, a nonprofit organization focused on affordable housing issues in the commonwealth of Virginia. In addition, Carter is a past president of the Virginia Mortgage Lenders Association and former member of the association’s board of directors. www.vabankers.org

IN LOVING MEMORY OF VERNARD W. HENLEY

Do Business With Someone Who Thinks Like You.

The Virginia Bankers Association will greatly miss Vernard W. Henley, retired chairman and CEO of Consolidated Bank & Trust Co. and former president of the VBA, who passed away at 85 in August. Mr. Henley was the first of his family to go to college, and graduated from Virginia State College with a bachelor’s degree in business administration. Upon graduating, he accepted a job as an assistant note teller at Mechanics & Farmers Bank in Durham, N.C., and went on become CEO of Consolidated Bank & Trust Co., the oldest continuously African-American owned U.S. bank.

Mr. Henley served on the board of the American Bankers Association and the executive committee of the VBA. In 1994, he became the first AfricanAmerican elected president of the VBA. Mr. Henley is well-known for his leadership in the community and service to many community boards.

We are very sad for his passing, and our thoughts and prayers are with Mr. Henley’s family.

www.CBBonline.com • 804.239.0452

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8/14/14 3:24 PM7 September/October 2014 | Virginia Banking

Legislative

Update

Making Key Connections

W

Matt Bruning Vice President, Government Relations, Virginia Bankers Association

hen explaining the VBA’s approach to advocacy, I note that we really employ two distinct but necessarily aligned means to achieving our policy objectives. The first is that which your association’s government relations staff handles on behalf of the industry – drafting and monitoring legislation, testifying in committee hearings, meeting with legislators and staff on specific bills. These efforts are full-time functions essential to influencing legislative outcomes that are situated with your trade association since bankers have operations to manage, loans to make and customers to serve.

The other aspect of our overall advocacy is the fundamental cornerstone for all the efforts: grassroots engagement. The VBA assists in facilitating opportunities for participation in the legislative and political process through frequent meetings, events and indirect methods. Through participation in those activities, elected officials hear from those whose voices matter most – their constituents, their voters. The functions carried out by your VBA team are only possible because legislators are well aware that we are representing the hundreds or thousands of Virginia bankers in their districts.

Our collective accomplishments are predicated on the long record of banker involvement. Whether it be the show of force in sheer number at our annual Banker Day at the General Assembly in Richmond, the long-held high regard for the VBA leadership of Bruce and Walter, or the initiative of local bankers to send their congressman an email about overregulation, our elected officials understand and respect our unified industry voice.

However, legislators can come and go. There has been tremendous turnover in the make-up of the General Assembly just over the last decade.

This fall’s federal elections will ensure at least three new members to our Virginia delegation go to Washington. With the multitude of new faces, combined with the need to maintain strong relationships with long-serving, tenured officials, continually making meaningful connections between bankers and legislators is more critical than ever.

That is why we launched the VBA Key Contact

Banker Program earlier this summer. While many of you have already been active in our efforts, this program seeks to formalize and strategically organize those existing connections to maximize the effectiveness of our grassroots advocacy. It also offers a new path for those currently not engaged to begin participating in those efforts with guidance from the VBA. The purpose of this program is for VBA Key Contact Bankers to work with the VBA to serve as connections with elected officials by maintaining or developing strong relationships with state or federal legislators.

Through participation as a VBA Key Contact Banker, the VBA will identify area legislators to connect you with in order to establish or deepen the relationship they have with the banking industry.

Whether it is sharing your story with a legislator at one of our fall meetings, sending a Call-to-Action email to your congressman or representing VBA BankPAC at a local fundraiser, volunteering for this program provides the opportunity for greater and more effective engagement.

We encourage those interested in serving as a VBA Key Contact Banker to visit our redesigned website – www.vabankers.org – and click on the Engage in Gov’t Relations tab to learn more about the program and sign up to participate.

The connections you make through grassroots advocacy help elevate our overall industry voice.

We also hope that you receive a sense of fulfillment from lending your support as we impact the direction of the industry and customers we serve.

Email Matt Bruning at mbruning@vabankers.org with any comments on this article.

8 Virginia Banking | September/October 2014

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Line

Legal

Dormant But Not Forgotten Fees for Dormancy and Legally Required Action for Abandoned Deposit Accounts

I Mel Tull General Counsel, Virginia Bankers Association

often receive questions from bankers about dormant accounts. Dormant accounts and abandoned accounts differ in certain aspects. The contract between a bank and its customer determines when an account becomes dormant and when a bank can impose dormancy fees. On the other hand, Virginia law determines when an account becomes abandoned and must be turned over, or escheated, to the state.

Virginia law does not define when an account will be considered dormant or inactive for purposes of charging a fee. The account contract between the bank and its customer will govern when the account is deemed dormant or inactive and the associated fees. Under the Virginia Uniform Disposition of Unclaimed Property Act, banks can charge a dormancy or inactivity fee as long as the deposit account contract with the customer accurately discloses the fee, the bank gives no more than three months’ notice prior to charging the fee, and the bank does not reverse those charges.

While the Act permits banks to administer fees on dormant accounts, the law mandates that abandoned accounts be turned over to the state. Under the Act, it is generally the case that bank deposits and funds in financial institutions are deemed to be abandoned if there has been no communication with the bank for five years.

The Act provides several ways for customers to satisfy the communication requirement, and there are special rules for automatically renewing property (such as an automatically renewing certificate of deposit), unclaimed checks, and safe deposit boxes. An account will not be considered abandoned for escheat purposes if it meets any of the following four conditions: • The customer performed any activity on the account, such as making a deposit or withdrawal.

• The customer communicated in writing about the account.

• The customer communicated verbally with the bank about the account and the bank

documented the conversation in a memo placed in the account file.

• The customer has another account with the bank that meets one of the first three conditions and the bank communicates in writing about the inactive account to the same address the customer uses for the active account.

Virginia law requires banks to review their records each year to determine whether they hold any deposits that have remained unclaimed with no communication from the customer for five years. Banks holding abandoned deposits must file an annual report with Virginia’s Department of the Treasury, Division of Unclaimed Property and escheat the property to the state.

Banks with nothing to report, however, do not need to submit any paperwork.

Treasury conducts audits and compliance reviews to verify that holders of unclaimed property are complying with the Act. Failure to report unclaimed property triggers penalties including interest charges and a civil penalty up to $1,000 for each day the report and remittance is withheld. The maximum value of the penalty is the lesser of $50,000 or 100 percent of the value of the property that should have been paid to the state. Additionally, holders of unclaimed property will be required to pay the administrator interest at the same annual rate as is applicable to delinquent taxes.

In addition to maintaining the abandoned property program, Treasury offers assistance to banks through educational compliance programs. Treasury offers a reporting guide series that addresses common industry and property questions. Moreover, Treasury offers on-site consultation visits, educational seminars and presentations geared toward banking professionals. Treasury’s abandonment program includes a continuous effort to locate the owners Continued on page 11

For more information about the Virginia laws on abandoned property and dormant accounts, contact Mel Tull, VBA general counsel, at mtull@vabankers.org or (804) 819-4710.

10 Virginia Banking | September/October 2014

www.vabankers.org

Update

Washington

A Growing Need

W Frank Keating President and CEO, American Bankers Association

hen the Gallup Organization released its annual Economy and Personal Finance Poll earlier this year, the results confirmed a growing year-to-year concern for young adults: how to pay for college tuition or pay off college loans.

More than one in five adults aged 18 to 29 identified these college costs as the biggest financial challenge their families were dealing with. Among the other issues young adults cited were: lack of money/low wages (15 percent); housing costs (14 percent); and bills/ credit cards/debt (10 percent).

The good news is that these are personal financial management issues that are in the wheelhouse of ABA’s Get Smart About Credit program. Now in its 12th year, Get Smart About Credit brings volunteer bankers like you together with young people to help them develop responsible credit habits.

Our industry’s financial education efforts are much needed. According to the Organization for Economic Cooperation and Development, more than 40 percent of U.S. students – more than in any other country – reported receiving financial education in their classrooms from private-sector individuals, such as bankers or other volunteers.

On Get Smart About Credit Day – Oct. 16 – and throughout the fall, bankers will be doing just that. They’ll be delivering lessons to teens and young adults on managing three financial

challenges: paying for college; building good credit habits; and protecting their identity.

These life lessons are designed to give young adults an edge in mastering personal finance and taking control of their financial futures. For example, we’re encouraging them to: • Take control and responsibility over their finances by creating budgets and sticking to them, including planning for unexpected expenses such as car repairs.

• Understand the responsibilities and benefits of credit.

• Utilize their bank and valuable services, such as check-cashing, debit cards, online banking, balance alerts, personal loans and direct deposit, as well as asking for help and advice from parents or their banker.

Paying for college and managing college loan debt are significant concerns. So, too, are meeting housing costs and managing personal debt, and these are all linked. Bankers can fill a need – and groom a new generation of bank customers – by providing wise counsel on these personal financial management issues.

If your bank hasn’t participated in any young adult financial education program before, please consider doing so this year. The need seems to grow every year. So, too, must our industry’s response.

Email Frank Keating at keating@aba.com with any comments on this article.

Legal Line Continued from page 10

of unclaimed property. To do so, Treasury annually places advertisements in major newspapers statewide that list the names and addresses of newly reported unclaimed property owners.

The website VaMoneySearch.org also holds a database of names that is freely searchable by any interested party. www.vabankers.org

In general, banks have discretion to set dormancy periods and fees at the outset of a customer relationship in the initial customer contract. While Virginia law does not determine exact dates for when a bank can begin to charge fees on dormant accounts, the law requires banks to turn over

deposit accounts to the state after five years of no communication from the customer.

This article has been prepared for informational purposes only and is not legal advice and does not create an attorneyclient relationship.

September/October 2014 | Virginia Banking 11

Sixty-One

Bankers Graduate

from Virginia Bankers School of Bank Management

Two hundred bankers spent the last week in July at the Darden School of Business, where they attended this year’s Virginia Bankers School of Bank Management.

The students learned from exceptional faculty on staff including: Richard S. Coughlan, Ph. D, associate dean for graduate and executive programs and associate professor of management at the University of Richmond Robins School of Business; Mark M. Faircloth, partner, Faircloth Performance Partners; Michael Glotz, partner, Strategic Risk Associates LLC; Lynn Hamilton, associate professor and general faculty of director management communication programs and chair of the ICE Steering Committee at the University of Virginia McIntire School of Commerce; David L. Hartley, president and CEO, Middleburg Investment Group; Gary F. Higgins, risk management professional; Jeffrey S. Kane, director, Park Sterling Bank; Lance Kessler, president, Lance Kessler & Associates; Chuck Lewis, vice president, compliance services, Missouri Bankers Association; Jake Lutz, partner, Troutman Sanders 12 Virginia Banking | September/October 2014

LLP; Kerry S. Sauley, Ph. D., instructor, Department of Management, Louisiana State University; Jimmy Sawyers, member, Sawyers & Jacobs LLC; Brad Schwartz, CEO, Monarch Bank; Edmond J. Seifried, Ph. D., co-chairman, Seifried & Brew; Gary Shook, president and CEO, Middleburg Bank; Scott Wayne, founder, The Frontier Project; and Bruce T. Whitehurst, president and CEO, Virginia Bankers Association.

The VBA School of Bank Management is designed to provide a multi-dimensional educational experience for bankers. Students must complete three one-week summer sessions and eight home study problems and participate in a BankExec Simulation, which allows them the opportunity to make decisions acting as senior officers of a bank.

This year, the first years benefited from a new marketing instructor, Lance Kessler, president of Lance Kessler & Associates. His experience as a banker for 25 years before beginning his own Continued on page 14 www.vabankers.org

Virginia

The 2014 Class of the

Bankers School of Bank Management

First-Year Class Officers, from left: Darren Tully, Virginia Heritage Bank; Shareema Williams, Essex Bank; Jermony Cox, Union First Market Bank; and Marcus Wade, Bank of Botetourt.

Second-Year Class Officers, from left: Don Hillbish, C&F Bank; Jennifer Register, Old Point National Bank; Stacy Dail, Federal Reserve Bank of Richmond; and Ron Burley, United Bank.

Third-Year Class Officers, from left: Melinda Williams, Old Point National Bank; Kelly Johnson, Southern Bank and Trust Company; and Marie Brooks, Cardinal Bank.

Congratulations to the Virginia Bankers School of Bank Management Class of 2014! www.vabankers.org

Monica Baboota Cardinal Bank C. Annette Bartlett EVB Lori M. Bevans Union First Market Bank Marie Thomas Brooks Cardinal Bank Frank M. Buckley Old Point National Bank StephanieAnn Burch Peoples Community Bank Chase A. Clark CornerStone Bank NA Robert A. Dahl CornerStone Bank NA Romonda F. Davis First National Bank Denys Diaz Monarch Bank Jesse Dorey-Ferrera Access National Bank Christopher B. Dunn SunTrust Bank Kara M. Evans City National Bank Stuart C. Evans American National Bank & Trust Co. Benjamin D. Farner Old Point National Bank Frank W. Friedman CornerStone Bank NA Kimberly K. Garrison Union First Market Bank Penny D. Gilbert Chesapeake Bank Taryn R. Haden C&F Bank James B. Hall, Jr SunTrust Bank Lynette P. Harris Monarch Bank Susan N. Hartsook Union First Market Bank Kelley T. Healey TowneBank Robert J. Hobbs Bank of Clarke County John D. Hollingsworth III TowneBank Lori A. Hyatt Union First Market Bank Kelly A. Johnson Southern Bank and Trust Co. Curtis P. Kavanaugh TowneBank William L. Kirby, IV American National Bank & Trust Co Benjamin D. Lawler Access National Bank Hang-Nga Phan Le Sandy Spring Bank Richard B. Luttrell Middleburg Bank Eric Z. Lysak Pinnacle Bank William A. Meece Carter Bank & Trust Amy T. Mellinger Highlands Union Bank Catherine D. Mise Chesapeake Bank Ryan C. Oates First Bank, Strasburg Ramon Parada Burke & Herbert Bank Fleur V. Phills United Bank Linh Chi Phu Access National Bank R. Brandon Ratliff Grundy National Bank Peter C. Reeves Heritage Bank Jonathan T. Reimer Cardinal Bank Shauna L. Robertson Virginia Commonwealth Bank Michael A. Rodgers MVB Bank, Inc. Gina M. Rogacki EVB James P. Ryan TowneBank Heather Schoeppe Chain Bridge Bank, NA Wes Shepherd Citizens Community Bank Travis R. Slocum United Bank Catherine W. Snowden Chesapeake Bank Dana E. Tiller CornerStone Bank NA R. Michelle Tompkins Carter Bank & Trust Sophia Chafin Vance First Bank & Trust Co. Sherry M. VanLandingham Chesapeake Bank Philip I. Walker National Bank William M. Whirley Jr. First Bank, Strasburg Tyler S. White Old Point National Bank Melinda J. Williams Old Point National Bank Charles M. Wright Monarch Bank Vanessa E. Wynn Lee Bank & Trust Co.

Bank School Continued from page 12 marketing firm was valuable in the insight he provided to the students. His class was very well-received by students with and without marketing experience.

Scott Wayne, founder of The Frontier Project, expanded his Cartography of Personal Innovation class to two sessions, which provided the opportunity to walk through an Amtrak case study with the first years.

New to the second year curriculum was an asset/liability management course taught by Brad Schwartz, as well as a class on trust and wealth management taught

by Middleburg Bank President and CEO Gary Shook and Middleburg Investment Group President and CEO David Hartley.

The course covered how trust and wealth management fits within banks’ service offerings, context on how trust and wealth management officers play a role in helping their clients establish clear financial objectives, planning for retirement, organizing charitable giving and managing estates. In addition, Gary Higgins modified his course to focus on credit portfolio management.

While the third years stayed busy with their BankExec simulation, they also benefited from sitting in on a new class on the legal environment in banking, taught

by Jake Lutz, a partner at Troutman Sanders LLP. The third year class was assisted by the school’s fellows, who were on hand to assist during the BankExec process: Frank Bell, Chesapeake Bank; Donald S. Buckless, Old Point National Bank; J. Peter Clements, The Bank of Southside Virginia; Amy Jo Duke, Federal Reserve Bank of Richmond; Jeffrey S. Kane, Park Sterling Bank; and H. Watts Steger III, Bank of Botetourt.

In addition to their academic pursuits, and showing how bankers are always at the forefront of community service, the graduating class raised more than $11,000 through a bowling tournament and their senior class party to benefit the Special Olympics of Virginia.

The graduating class of the Virginia Bankers School of Bank Management contributes to a different charity of their choosing each year. Past charities that have received funds raised by Bank School students include the ROC Solid 14 Virginia Banking | September/October 2014

“Dr. Ed” leads the students through his Economic Environment course.

The first years pose after winning the annual kickball tournament.

Foundation, the Virginia Wounded Warrior Program and the Juvenile Diabetes Research Foundation.

On Aug. 1, 61 third-year students completed their last year of Bank School and graduated from the program. Completion of the program is based upon attending all classes, satisfactory performance in class discussions, examinations, home study problems and completion of any other assignments.

Acting Class President Kelly Johnson, Southern Bank & Trust Co., said of her graduating class, “I’m so proud of the work my fellow students and I have accomplished these past three years, including raising thousands of dollars for the Special Olympics of Virginia. It has been a valuable and rewarding experience for all of us, and I look forward to seeing how we continue to grow and progress in our banking careers.”

Each year, the VBA recognizes the student in the third-year class with the highest GPA. This year, the Honor Graduate was Frank M. Buckley of Old Point National Bank, who had a GPA of 97.9! We would also like to congratulate all of the students who graduated this year and want to make special mention of the top 10 percent of the class of 2014: C. Annette Bartlett, EVB; Lori M. Bevans, Union First Market Bank; Robert A. Dahl, CornerStone Bank NA; Venjamin D. Farner, Old Point National Bank; Lynette P. Harris, Monarch Bank; Ryan C. Oates, First Bank, Strasburg; Jonathan T. Reimer, Cardinal Bank; and Travis R. Slocum, United Bank.

Congratulations to the graduates and we look forward to seeing the returning students and new first year class at the 2015 resident session. www.vabankers.org

Q&A

with Browning Herbert

Q&A with Browning Herbert, VBA Leadership Division Chairman BROWNING, PLEASE TELL US A LITTLE ABOUT YOURSELF. I grew up in Northern Virginia and graduated from Elon University in 2006. Since that time I have been in the banking and finance industry. I initially worked at Middleburg Bank for two years, and then worked at MainStreet Bank as a commercial lender for one year before returning to Middleburg Bank, where I am today. I got married in October 2012 to my wife J.J. Herbert, who is from Williamsburg. I enjoy playing golf, spending time with family and friends and rooting for the Redskins.

TO YOU,WHAT IS THE MOST ENJOYABLE ASPECT OF BEING A BANKER? The most rewarding part of my position is helping clients achieve their growth goals and seeing how our financing helps businesses in our community. I love what I do because there is such a wide array of businesses that I work with. It keeps me focused and engaged.

HOW LONG HAVE YOU BEEN INVOLVED WITH THE VBA LEADERSHIP DIVISION? This will be my third year as a member of the Leadership Division.

WHAT ARE SOME OF YOUR FAVORITE EXPERIENCES FROM BEING INVOLVED IN THE VBA LEADERSHIP DIVISION? My favorite experience was the first annual Leadership Division Conference held at Wintergreen Resort. It was a great event, and with so many rising executives and participating executives there I was able to learn a ton of best practices. That event set the stage for future Leadership Division Conferences that have been very successful.

AS THE NEW CHAIRMAN OF THE LEADERSHIP DIVISION, ARE THERE ANY SPECIFIC GOALS YOU WOULD LIKE TO ACHIEVE? While increasing membership is always a goal, I want to keep our current members engaged, and increase participation at existing events like legislative meetings and at the Leadership Division Conference in November.

WHAT ADVICE DO YOU HAVE FOR ANYONE WHO WANTS TO GET INVOLVED WITH THE VBA LEADERSHIP DIVISION? The first step is to sign up for the Leadership Division, but the most important piece is being active within the group. It is an excellent opportunity to learn from peers, and you will get out what you put into it.

Browning Herbert, second from left, talks about the efforts of the Division at the Leesburg Legislative Luncheon. Also pictured from left: Brian Hester (BB&T); Patrick Heijmen (Middleburg Investment Services) and Delegate Tag Greason.

WHY IS IT IMPORTANT TO ATTEND EVENTS LIKE THE VBA LEADERSHIP CONFERENCE? It is rare to have a conference specifically tailored to rising executives in banking that focuses on banking skills so comprehensively. In addition to learning from the speakers, few events enable such strong peer-to-peer discussions regarding best practices for both the individual and respective bank.

Interested in joining the Leadership Division?

Email Chandler Dewey at cdewey@vabankers.org to sign up.

To find out more about the VBA Leadership Conference being held in Virginia Beach on November 13-14, visit www.vabankers.org/vba-leadership-division-events.

September/October 2014 | Virginia Banking 15

Virginia Banks:

Anchoring Virginia’s Communities Community Investment Survey For centuries Virginia banks have provided a safe place for people and businesses to keep their money.

Banks reinvest that money in their communities by lending to families and small businesses to help them thrive. Virginia banks have taken the lead in donating resources and time to charities in their communities, and have fueled the curriculum for financial literacy through educational programs and scholarship opportunities. From stem to stern, Virginia banks are an anchor in their communities.

The Virginia Bankers Association recently conducted a Community Investment Survey of the Commonwealth’s banks to determine ways in which they support growth and civic development in their local communities.

Responses were compiled from 50 banks throughout Virginia, each of which make a significant impact in their respective communities. The following is just a glimpse of how these banks make waves in their communities.

A Beacon of the Economy

The FDIC reported that in 2013, small business loans from 99 lenders were made in Virginia for a total of $9,430,142,000.2 Mortgage loans in Virginia totaled $68,362,673,000 in 2013.2

The Mainstay of Community Employment Virginia

banks employed 65,422 Virginians in 2013, 64% greater than the 41,700 employed in 1994, and 19% greater than the 53,000 employed in 2010.2

VBA Survey of Banks

1

FDIC

2

Steering Toward a Bright Future Banks donated $277,465 in

college scholarships this year.

18,500 students Over received financial literacy education from Virginia bankers in 2013 between Get Smart About Credit Day, Teach Children to Save Day and the VBA Bank Day Scholarship Program.1

Making Waves in Local Communities

In 2013, 30,111 bank associates donated more than 534,900 hours of community service to their local communities.1 Virginia banks donated a total of $23,986,592.15 to local charities and nonprofits in their cities.1

Stewards of the Community

Representative Examples American National Bank and Trust Company supported the U.S. Marine Corps Reserve and the Toys for Tots Foundation. Bank employees generously donated toys that were given to less fortunate children in the communities served by the bank.

Bank of Clarke County announced a partnership with the Laurel Center in Winchester, an organization dedicated to empowering victims of domestic and sexual violence by providing emergency housing, advocacy, support services, and education.

The Cardinal Bank Community Fund awarded $2,500 to Capital Caring Hospice and Palliative Care. Cardinal’s grant will benefit The Adler Center for Caring on the Van Metre Campus for Hospice Care in Loudoun County. Capital Caring enables patients to live as fully as possible in the end stages of life by offering comprehensive, compassionate care to patients and families facing serious, progressive illnesses.

To help students in need, First Capital Bank started their Stuff the Bus program in 2008. Every August, the bank takes a school bus to local Walmart stores around Richmond and encourages the community to help “stuff the bus” with pencils, notebooks, backpacks, and other supplies students need to start the school year with confidence. This year, the Stuff the Bus efforts provided school supplies for approximately 5,000 students in the Richmond metro area.

Thank You to the Following Banks for Participating in the Community Investment Survey American National Bank and Trust Company Bank of America Bank of Botetourt Bank of Clarke County Bank of Floyd Bank of Georgetown Bank of McKenney Bank of the James

Benchmark Community Bank Blue Ridge Bank Burke & Herbert Bank C&F Bank Cardinal Bank Capital One Chain Bridge Bank, N.A. Chesapeake Bank Colonial Virginia Bank EVB First Bank First Bank & Trust Company First Capital Bank First Century Bank, Inc. First National Bank

First National Bank of Ronceverte First State Bank First Tennessee Bank Freedom Bank of Virginia HomeTown Bank John Marshall Bank MainStreet Bank Oak View National Bank Peoples Community Bank Powell Valley National Bank River Community Bank, N.A. Select Bank Sonabank Southern Bank and Trust Company

The Bank of Marion The Bank of Southside Virginia The Farmers Bank of Appomattox The Fauquier Bank TowneBank TruPoint Bank Valley Bank Village Bank Virginia Company Bank Virginia Heritage Bank Virginia National Bank Wells Fargo Xenith Bank

Compliance

Corner

Be Aware of CFPB’s HMDA Proposal; Be Very Aware James Nemecek Director, Accume Partners

O

n July 24, 2014, the Consumer Financial Protection Bureau (CFPB) released its long-awaited proposal for HMDA (Home Mortgage Disclosure Act), also known as Regulation C. A mere 573 pages long, it would add 37 new data items to the existing items already being collected. The comment period is running and lasts through Oct. 22, 2014.

The bureau’s stated goal for this significant increase in data collection is to, “shed more light on a consumer’s access to mortgage credit by updating the reporting requirements of HMDA regulations.” The bureau also aims to simplify the reporting process for financial institutions.

There is some good news in at least two areas: • The adoption of a uniform loan volume threshold of 25 loans. Covered financial institutions would not need to report HDMA data if originating less than this threshold.

• Unsecured home improvement loans would no longer need to be reported. However, all closed-end loans, open-end lines of credit, including HELOCs, and reverse mortgages would now be reportable.

The CFPB is further proposing to require numerous data items that are in addition to those that were mandated by Dodd-Frank. All of these new data elements can be broken down into four broader categories of information.

These include: • Data of applicants, borrowers, the underwriting process, such as age, credit score, debt-to-income ratio, reasons for denial (if denied), the application channel and automated underwriting results.

• Data about the subject property, construction

method, property value, lien status, number of dwelling units in the property and data on manufactured and multifamily housing.

• Data about loan features such as pricing information, loan term, interest rate, introductory rate period, any non-amortizing features and the type of loan.

• Unique identifier data such as a universal loan identifier, property address, loan originator identifier, and legal entity ID for the financial institution.

We can discuss the merits or downfalls of collecting such a massive amount of information on each covered loan to be reported, as these may relate to the privacy of the borrowers, and even to the competition of banking in a given geographic marketplace. Making use of the stated comment period and informing the Bureau of your bank’s position on these massive changes in data collection is certainly warranted, and needed, to give voice to industry concerns.

But let’s take a quick look at some basics that your financial institution needs to consider, whether the proposal is rolled out as presently written, or if any further changes are made prior to any final implementation date.

New data, in general, will mean new processes for your staff and your technology systems that handle these data elements. That translates into training issues for staff to make them aware of the new fields to be collected, and also how the technology will interact with obtaining and retaining and reporting that new information.

In mentioning technology, it is not too early to confirm with your vendor how they will meet the timeline and expectations of being ready for

You may submit comments, identified by Docket No. CFPB-2014-0019 or RIN 3170-AA10, by the following methods: Email: FederalRegisterComments@cfpb.gov Electronic: www.regulations.gov. Follow the instructions for submitting comments.

18 Virginia Banking | September/October 2014

www.vabankers.org

all the new data elements.

Management will be required to develop and to implement appropriate action plans to assure data integrity is of high quality. Recall that examiners routinely perform data integrity reviews in preparation for Community Reinvestment Act purposes, and also for Fair Lending purposes.

The bottom line from an operational view is that with the massive number of additional data elements to collect, a financial institution must have a comprehensive HMDA management system in place. If this was important prior to the latest CFPB proposal (and it was), just multiply that importance substantially going forward when this proposal becomes final.

And if your bank needs any further reminder of the current, and future, importance of HMDA data integrity, let’s have a discussion about Civil Money Penalties: regulators have the authority to penalize any financial institution that holds erroneous data at the time of a data integrity review, or after the submission of the LAR (loan application register). During the last two years alone, fines have ranged from $4,250 upward to $425,000. Obviously, this is something any bank should look to avoid by having the proper HMDA management systems and controls in place.

In the past, the CFPB has shown a willingness to consider bankers’ thoughtful, informed comments and recommendations and incorporate them in its finalized proposals. Your bank’s input could make a difference. Support the changes you believe are beneficial. Explain what you don’t like and how it can be improved. And set a goal of getting your comments to the CFPB by early to midOctober. www.vabankers.org

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September/October 2014 | Virginia Banking 19

Paper

White

Know Your Options Deborah Whiteside President, ABA Community Bank Mortgage LLC

W

hen a community bank of any size originates a mortgage loan, it has a variety of options to weigh regarding the disposition of that loan. Each option has costs and benefits. Factors to consider include economic goals, business model and strategic objectives, customer service ramifications, capital and accounting impact, compliance ramifications and subservicing options.

The first decision a bank makes is whether or not to sell the mortgage into the secondary market. Some banks sell all their loans, some sell certain products at interest rates – and in certain environments, some do not sell loans at all. One of the advantages of being a bank and having a portfolio is that the portfolio increases the bank’s options.

Once the bank has made a decision to sell the loan, the next question is on what terms: servicing retained or servicing released? That decision is a complex one and determines which secondary market investors to do business with.

The primary factor in deciding how a bank sells its mortgages is economic: what is the value of the mortgage servicing rights (MSR) in the

market at a given point in time? Put simply, a best execution analysis needs to be performed.

There are numerous models and methodologies to determine the MSR value. It is a complex asset, and the value of the asset changes over time and in various interest rate environments.

In addition to a market best execution analysis the bank should consider its own MSR valuation if it decides to keep the asset. What is the cost to service? What are the expected MSR cash flows and prepayment expectations? What is the potential for, and cost of, delinquency and foreclosure expenses? What are the capital, compliance and accounting considerations? And, perhaps most importantly for a community bank, what are the customer service and brand ramifications?

Community banks have the flexibility to adopt – and transition between – various mortgage lending business models depending on their own strategic goals, both short term and long term, and the market dynamics they are facing. Through careful consideration and analysis, a community bank can design a business model that works best for itself, its customers and its brand.

Deborah Whiteside is the president of ABA Community Bank Mortgage LLC, a VBA-endorsed product.

She can be reached at dwhiteside@aba.com or (202) 663-5580.

Case Study August 2014 FirstBank Lexington,Tenn.

REWARDS OF A RETAINED SERVICING MODEL

RISKS OF A RETAINED SERVICING MODEL

1. Potential for increased revenue

1. Interest rate risk on the MSR pool asset value

2. Tax-deferred revenue

2. Setting the MSR value at loan level

3. Creation of income producing assets (MSR pool)

3. Reduction in immediate cash revenue

4. Avoid aggregator/investor overlays that were

4. Increase in operational responsibilities

causing operational challenges

5. Advance exposure during servicing

5. Increase retention of borrowers and loan officers

6. Increase in regulatory and compliance risks

6. Increase the bank’s brand equity

7. Bank brand risk/exposure if done poorly

In 2010, FirstBank’s mortgage origination and sale strategy was a traditional best efforts/ best execution servicing released loan sale to several aggregators/investors. By 2012, the bank had grown monthly origination volumes and decided to transition to a best execution model using mandatory deliveries for their servicing released sales in order to optimize loan 20 Virginia Banking | September/October 2014

sale proceeds. It engaged a third-party vendor to assist with hedging the interest rate risk. By 2013, FirstBank re-evaluated its business again by beginning the research necessary to evaluate the risks and rewards of selling loans to the GSEs on a servicing retained basis.

Some of the factors the bank considered are above.

After careful consideration, the bank decided to enter into a sub-servicing agreement with a third-party provider in the fall of 2013. By March 2014, it delivered its first loans to Freddie Mac and Fannie Mae under servicing retained executions.

Since then, FirstBank has retained the servicing on more than 1,100 of its customers’ conventional mortgage loans. It believes that its biggest responsibility and exposure is the valuation of the mortgage servicing right of each loan. By leveraging a vendor to value their MSR pool on a monthly basis, the bank feels comfortable in its mortgage business model transformation. In 2015, FirstBank anticipates retaining the servicing rights on its Ginnie Mae securitizations. www.vabankers.org

Palooza

Committee

7th Annual CommitteePalooza Brings Together 200 Bankers Thank You to Our 2014-2015 VBA Committee Chairs

More than 200 bankers gathered over two days to kick off the year at CommitteePalooza.

Michael Williams, Trust & Wealth Management Committee chair, Park Sterling Bank, and Sherri Sackett, Marketing Committee chair, Select Bank.

From left to right: Steve Farbstein, Mortgage Executives Committee chair, Park Sterling Bank; Doug Callaway, Legal Affairs Committee chair, Union First Market Bank; Donna White, Compliance Committee chair, River Community Bank; and Sharon Moynihan, Operations & Technology Committee chair, United Bank.

T

he chairmen and committee members of 13 VBA committees met Sept. 4 and 5 for the VBA’s 7th Annual CommitteePalooza: an orientation session, industry update, and first meeting of the VBA program year.

Members from the Retail Executives, Lending Executives, Trust & Wealth Management, Security, Operations & Technology, Human Resources, Legal Affairs, Marketing, Compliance, Mortgage Executives, Enterprise Risk Management, CFO and Leadership Division committees were in attendance, and met as committees to discuss how each might provide value to Virginia bankers, and to begin to plan annual events and conferences.

During the lunch hour, committee members attended a joint session led by keynote speaker Bruce Whiteurst, president and CEO of the VBA. Bruce led the bankers through an open discussion on “headwinds” and “tailwinds” in the banking industry, in which bankers were encouraged to share current industry trends that hinder banking efforts, as well as trends that propel success in Virginia banks. Bruce also used an ABA Amplify Banker presentation, “Careers in Banking,” to inspire bankers in attendance to share about their jobs, as well as spread awareness about the many opportunities for banking careers. As always, Bruce reminded bankers to continue to share their banking stories to remind others the invaluable roles our banks play in our communities.

Thanks to all the bankers who made time in their busy schedules for this important event! www.vabankers.org

From left to right: Wendy Dunhum, Security Committee chair, Access National Bank; Scott Nininger, Enterprise Risk Management Committee chair, Union First Market Bank; Randy Anderson, Lending Executives Committee chair, United Bank; Kim Snyder, CFO Committee chair, Valley Bank; Jenny Clark, HR Committee chair, Benchmark Community Bank; and Browning Herbert, Leadership Division chair, Middleburg Bank.

Not Pictured: Ron Haley, Government Relations committee chair, River Community Bank, NA and Teresa Weaver, Retail Executives Committee Chair, C&F Bank.

Matt Bruning, vice president of government relations, VBA (right), shows his CommitteePalooza spirit during the general session led by VBA President and CEO Bruce Whitehurst.

September/October 2014 | Virginia Banking 21

Move

Bankers on the

Are your bankers on the move?

Email submissions to mreilly@vabankers.org.

Nadler

Webster

Cooke

American National Bank and Trust Company Bob Nadler, Senior Vice President of Trust & Investment Services

Cardinal Bank Ralph J. Edwards, Jr., Senior Vice President, Chief Information Officer Diane Webster, Vice President, Manager of Cardinal’s Old Town North Banking Office

Essex Bank Duncan Cooke, Vice President, Relationship Manager Julie Dominguez, Loan Administrator Eddie McCall, Senior Vice President, Richmond Area Executive Patricia M.Vogel, Chief Credit Officer

Dominguez

McCall

Beahm

Farmers & Merchants Bank

Monarch Bank

Matthew Beahm, Commercial Relationship Manager

Andrew Proctor, Senior Vice President, Richmond Office

Hampton Roads Bankshares, Inc.

Sandy Spring Bank

Pamela Ellyson, Vice President, Senior Business Development Officer Deborah Mast, Senior Vice President and Senior Business Development Officer Gregg Smith, Senior Commercial Relationship Manager

TD Bank

HomeTown Bank Carrie McConnell, Senior Vice President and Commercial Lender

George Cave, Senior Vice President and Commercial Banking Division Leader

Michael J. Duganich, Vice President, Relationship Manager Ray Naisan, Vice President, Store Manager

Valley Bank Bob Scarborough, Senior Vice President and Manager of Private Wealth Management

2014 LEADERSHIP CONFERENCE:

Designed for Virginia’s Emerging Banking Leaders EXPERTISE

NETWORKING

KNOWLEDGE DEVELOPMENT

November 13-14, 2014 | Virginia Beach,VA Sheraton Virginia Beach Oceanfront Hotel Go to www.vabankers.org to register online and view the agenda.

22 Virginia Banking | September/October 2014

www.vabankers.org

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