Virginia Banking Sept/Oct 2017

September/October 2017

Virginia Bankers School of Bank Management IN THIS ISSUE

VBA PILOTS SUMMER INTERNSHIP PROGRAM | MEET THE EBL CHAIR, ADAM HILL TENTH ANNUAL COMMITTEEPALOOZA RECAP

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September/October 2017

2017-2018 Officers and Directors of the Virginia Bankers Association William H. Hayter, Chairman, First Bank & Trust Company Scott C. Harvard, Chairman-Elect, First Bank, Strasburg John G. Stallings, Immediate Past Chairman, Union Bank & Trust Richard M. Adams, Jr., United Bankshares, Inc. John C. Asbury, Union Bank & Trust Ray L. Barnes, Jr., BB&T Christopher W. Bergstrom, United Bank Ravi Chandra, Wells Fargo Bank, N.A. Michael W. Clarke, Access National Bank Dabney T.P. Gilliam, Jr., The Bank of Charlotte County Jeffrey V. Haley, American National Bank & Trust Leton L. Harding, Jr., Powell Valley National Bank Charles R. Henderson, Bank of America, NA Brad E. Schwartz, TowneBank Joe A. Shearin, Sonabank Susan K. Still, HomeTown Bank Robert Wojciechowicz, Capital One Financial Corporation AT-LARGE MEMBERS VBA Benefits Corporation Chair Barry C. Elswick, TruPoint Bank VBA Management Services Inc. Chair Aubrey H. Hall, III, First National Bank Government Relations Committee Chair Gary R. Shook, Middleburg Bank, a Division of Access National Bank VBA Education Foundation Chair Jeffrey M. Szyperski, Chesapeake Bank

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Bruce T. Whitehurst President and CEO Virginia Bankers Association

Virginia Banking is published bi-monthly. Copyright 2017.

Monica McDearmon Communications & Financial Literacy Coordinator Virginia Bankers Association

Statements of fact and opinion are made on the responsibility of the authors alone and do not imply an opinion or endorsement on the part of the officers or members of VBA.

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cover

Virginia Bankers School of 18 Bank Management

features

14

Q&A With Adam Hill

21

Tenth Annual CommitteePalooza

22

VBA Pilots New Summer Internship Program

in every issue 4 Calendar of Events 5 Insights 6 Legal Line 8 Washington Update 9 Legislative Update 10 Compliance Corner 11 Worth Noting 13 New Associate Members 23 Bankers on the Move

Send us your thoughts or ideas on Virginia Banking! Please email Monica McDearmon at mmcdearmon@vabankers.org. Has your information changed? Please email Kellee Edelin at kedelin@vabankers.org with your new contact information.

Calendar of

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

Contact Walt Lyons at wlyons@vabankers.org to be added to the VBA’s Weekly Webinar Update.

INSTRUCTOR-LED SEMINARS FOURTH QUARTER TRUST & WEALTH MANAGEMENT PEER EXCHANGE - GLEN ALLEN OCTOBER 26, 2017 LENDING & CREDIT CONFERENCE - CHARLOTTESVILLE OCTOBER 30-31, 2017 CEO FORUM - CHARLOTTESVILLE NOVEMBER 2-3, 2017 WOMEN IN BANKING CONFERENCE - MANAKIN SABOT NOVEMBER 9, 2017 ENTERPRISE RISK MANAGEMENT WORKSHOP - GLEN ALLEN NOVEMBER 15-16, 2017 2017 MASTERING HMDA - LYNCHBURG NOVEMBER 29, 2017

WEBINARS

WEBINARS EXPLORING THE IRA UNIVERSE – 4 PART SERIES OCTOBER 19, 2017 LOAN UNDERWRITING MISTAKES OCTOBER 19, 2017 STRATEGIES FOR FAMILY BANKS OCTOBER 19, 2017 FFIEC INFORMATION SECURITY HANDBOOK REVIEW OCTOBER 20, 2017 MARKETING & ADVERTISING COMPLIANCE OCTOBER 24, 2017 COMMERCIAL REAL ESTATE CASH FLOW: ANALYZING INCOMEPRODUCING OR RENTAL REAL ESTATE, PLUS GLOBAL CASH FLOW OCTOBER 24, 2017 HOW TO BOOST YOUR TEAM’S PROSPECTING RESULTS OCTOBER 24, 2017

DENIALS OCTOBER 12, 2017

COMMERCIAL REAL ESTATE APPRAISALS: REVIEWING AND INTERPRETING OCTOBER 24, 2017

ADVANCED HSAS OCTOBER 12, 2017

KEYS TO UNDERSTANDING PERSONAL AND GLOBAL CASH FLOW FROM TAX RETURNS OCTOBER 24, 2017

DEVELOPING AN ENTERPRISE-WIDE RISK ASSESSMENT OCTOBER 12, 2017 HMDA 2018 CHALLENGES WITH TAKING APPLICATIONS TWO-PART SERIES OCTOBER 12, 2017 EXCEL EXPLAINED: FILTERING AND FORMATTING DATA OCTOBER 13, 2017 ADVANCED FINANCIAL STATEMENT ANALYSIS OCTOBER 16, 2017 COMMERCIAL REAL ESTATE CASH FLOW: ANALYZING INCOME-PRODUCING OR RENTAL REAL ESTATE, PLUS GLOBAL CASH FLOW ISSUES OCTOBER 17, 2017

TECH FRAUD: A VIRTUAL MINDFIELD OCTOBER 25, 2017 INTRODUCTION TO IRAS OCTOBER 25, 2017 PROBLEM LOAN IDENTIFICATION & PREVENTION OCTOBER 26, 2017 TOP 5 IT RISK ASSESSMENTS NECESSARY FOR YOUR BANK OCTOBER 26, 2017 COMPLIANCE PERSPECTIVES: A MONTHLY UPDATE OCTOBER 26, 2017

FINANCIAL ANALYSIS OF COMMUNITY BANK ACQUISITIONS OCTOBER 17, 2017

LENDING TO NON-PROFIT ORGANIZATIONS OCTOBER 27, 2017

COMMERCIAL REAL ESTATE APPRAISALS: REVIEWING AND INTERPRETING OCTOBER 17, 2017

INTERVIEWING SKILLS FOR BETTER HIRES OCTOBER 27, 2017

PATCH THE PEOPLE – EDUCATION FOR CUSTOMERS AND EMPLOYEES OCTOBER 17, 2017

CONTINGENT LIABILITIES: THREE LINES OF DEFENSE FOR LENDERS OCTOBER 30, 2017

CUSTOMER CONFLICT: OPPORTUNITY KNOCKS OCTOBER 18, 2017

COMMERCIAL REAL ESTATE CASH FLOW: ANALYZING INCOME-PRODUCING OR RENTAL REAL ESTATE, PLUS GLOBAL CASH FLOW ISSUES OCTOBER 31, 2017

LOAN DOCUMENTATION 101: TWO PART SERIES OCTOBER 18, 2017 TOP 10 HSA ISSUES OCTOBER 18, 2017 BUILDING A RECOGNITION PROGRAM FOR SUCCESS OCTOBER 18, 2017 THE WORLD OF TRUSTS FOR BANKERS OCTOBER 18, 2017

4 Virginia Banking | September/October 2017

LANDSCAPE OF AGRICULTURE TODAY AND TOMORROW OCTOBER 31, 2017 COMMERCIAL REAL ESTATE APPRAISALS: REVIEWING AND INTERPRETING OCTOBER 31, 2017 KEYS TO UNDERSTANDING PERSONAL AND GLOBAL CASH FLOW FROM TAX RETURNS OCTOBER 31, 2017

www.vabankers.org

Insights Being a Banker

A Bruce Whitehurst President and CEO, Virginia Bankers Association

t our recent VBA School of Bank Management graduation ceremony at the University of Virginia, our current VBA Chairman, Bill Hayter of First Bank & Trust Company in Abingdon, gave a compelling speech on what it means to be a banker. Bill’s theme – which resonated with everyone – was this: being a banker is not just what you do, it’s who you are.

Given the nature of banks and the key role they play in the communities they serve, bankers are viewed as representatives of their bank well beyond the normal work day.

To be sure, bankers are employees who fulfill their job duties and responsibilities and do all they can to help their banks succeed.

Beyond this, bankers are community leaders and volunteers, often devoting evenings and weekends to these activities. Bankers are also trusted advisors to current and prospective clients as well as to family and friends.

Banks operate in a heavily-regulated environment and bankers learn how to ensure compliance with regulatory requirements while also serving their customers – not always an easy balancing act! Bankers have the

Being a banker is not just what you do, it’s who you are.

privilege of lending to individuals, families and small businesses, thereby helping spark economic growth. They also have the responsibility to say no to a customer’s loan request when the ability to repay is not clearly evident. As Bill said in his remarks, “it’s better to be up front and deny a loan request than

to make the loan and later see the borrower at church, a little league game or a civic club meeting, knowing that borrower is struggling to keep up with loan payments.”

Being a banker means being an advocate for the banking industry and standing up for the best possible legal and regulatory environment in which banks can operate profitably in order to meet the needs of their customers and communities. In fact, bankers who established the Virginia Bankers Association in 1893 had great foresight when they organized a unified voice for the industry that remains strong nearly 125 years later.

Being a banker means being a learner.

Bankers who invest in continuous learning make a more meaningful impact on their bank, their customers and communities. Bill, a 1984 graduate, congratulated the 51 bankers graduating this year from our Bank School for clearly recognizing the value of continuous learning and urged them to maintain a focus on professional development.

Banking took a big image hit during and after the Financial Crisis of 2008. The lines between Wall Street and Main Street banking were blurred in the media and among political leaders. It was a tough time to be a banker, especially when banks kept doing all they could to support their communities, even as they were all painted with the same, very large brush. As we approach the 10-year mark since the crisis, the public image of banking is on the mend. Within the industry though, bankers never stopped being bankers, 24/7, rather than just doing a job at a bank.

Thanks Bill, for a great message to a great group of rising bank leaders and congratulations to all of this year’s graduates. For more on the 2017 Bank School session, see page 18.

Email Bruce Whitehurst at bwhitehurst@ vabankers.org with any comments on this article or tweet him at @BruceTW. September/October 2017 | Virginia Banking 5

Line

Legal

CFPB Suffers Setback Enforcing RESPA’s Anti-Kickback Provisions

T Mel Tull General Counsel, Virginia Bankers Association

he Consumer Financial Protection Bureau (“CFPB”) recently suffered a setback in its attempt to enforce the anti-kickback provisions of the Real Estate Settlement Procedures Act (“RESPA”) against Borders & Borders, PLC, a Kentucky law firm that provides residential real estate closing services.

Despite the CFPB’s setback, those who refer residential settlement services between affiliates should remain cautious and avoid reading too much into the CFPB’s loss.

Section 8(a) of RESPA prohibits giving or accepting any “fee, kickback, or thing of value” in exchange for the referral of real estate settlement services such as title searches, surveys, appraisals, etc. An exemption exists under section 8(c)(4) for affiliated business arrangements (“AfBAs”) where a person referring a settlement service “has either an affiliate relationship with or a direct or beneficial ownership interest of more than one percent in” the business receiving the referral. To qualify for this exemption, an AfBA must meet the following conditions: (1) the person making the referral must disclose the arrangement to the client; (2) the client must remain free to reject the referral; and (3) the person making the referral cannot receive any thing of value from the arrangement other than a return on the ownership interest or affiliate relationship.

The Borders & Borders case began in 2011 with an investigation into the law firm’s potential violations of RESPA section 8(a)’s antikickback provision due to its affiliation with nine title insurance agencies. The investigation revealed that the law firm partners had 50 percent ownership interests in each title insurance agency, that the law firm provided written disclosure of its relationships to the title agencies at closing and that all nine title insurance agencies were staffed by a single agent working as an independent contractor from a home office.

After Borders & Borders refused to settle, the CFPB filed a lawsuit in the United States District Court for the Western District of Kentucky alleging that the law firm partners’ receipt of

6 Virginia Banking | September/October 2017

income distributions from the title insurance agencies constituted a fee, kickback, or thing of value in violation of RESPA Section 8(a). The CFPB further alleged that the income distributions were not subject to Section 8(c)’s AfBA exemption because the title insurance agencies were not bona fide providers of settlement services. In other words, the CFPB viewed the title insurance agencies as sham entities set up to disguise referral fees through income distributions.

The federal district court disagreed, relying on the Sixth Circuit Court of Appeal’s decision in Carter v. Welles-Bowen Realty, Inc. In Carter, the Sixth Circuit identified the above-described three conditions for the AfBA exemption based on a plain reading of RESPA section 8(c)(4). The Sixth Circuit declined to adopt a fourth condition, based on a 1996 HUD policy statement, that the affiliate receiving the referral must be a bona fide provider of settlement services. HUD’s 1996 policy statement stemmed from its recognition that the AfBA exemption could be used to disguise referral fees through the creation of sham entities. In its statement, HUD listed ten factors that help distinguish a bona fide provider of settlement services from a sham entity created to disguise referral fees.

Several HUD factors could have impacted the Borders & Borders case if they had been applied, including: (1) whether the affiliate has its own employees or office space; (2) whether the affiliate performs services itself or relies on independent contractors; and (3) whether the affiliate competes for business from settlement service providers other than the provider that created the affiliate.

It would be unwise for settlement service providers to disregard the HUD factors (available at https://www.gpo.gov/fdsys/pkg/ FR-1996-06-07/pdf/96-14331.pdf) based on the Sixth Circuit’s decision in Carter and the Borders & Borders case. First, no other United States Court of Appeals has endorsed or followed the Sixth Circuit’s refusal to consider the HUD factors. Second, neither the Supreme www.vabankers.org

Court of Virginia, nor any federal district court sitting in Virginia, nor the Fourth Circuit Court of Appeals has addressed the issue of eligibility for the AfBA exemption under RESPA section 8(c). Settlement service providers that refer business between affiliates cannot predict how these courts might approach the issue.

Finally, it is worth pointing out an unsettling contrast between the Borders & Borders case and the highly publicized PHH case in which the DC Court of Appeals recently held a rehearing en banc (before the entire DC Court of Appeals). In the PHH case, PHH, along with various mortgage industry representatives (through amicus briefing), have argued persuasively that the CFPB unlawfully ignored prior HUD guidance regarding the legality of captive reinsurance arrangements under RESPA section 8(c). In the Borders & Borders case, however, prior HUD guidance received no consideration owing to the Sixth Circuit’s decision in Carter. It goes without saying that prior HUD guidance cannot matter only when it is convenient.

For now, settlement service providers should avoid relying too much on the Borders & Borders decision to disregard the HUD bona fide entity guidance. Unfortunately, in the near-term, this case may create an un-level playing field by emboldening some settlement industry participants to unfairly compete using sham entities to pay for referrals, while other participants (such as banks that are subject to strict regulatory examinations) take a more cautious approach and continue to abide by the HUD guidance. Stay tuned. Undoubtedly, there will be more regulatory and judicial proceedings and interpretations to resolve the uncertainties created by this case.

For more information about the RESPA section 8 and the Borders & Borders case, contact Mel Tull, VBA General Counsel, at mtull@vabankers.org or (804) 819-4710. This article has been prepared for informational purposes only and is not legal advice.

SMART CREDIT STARTS WITH YOU This October, take advantage of the opportunity to join the thousands of volunteer bankers participating in the national Get Smart About Credit campaign. Raise your bank’s profile in the community while bringing lessons of sound money management to young people.

Get Smart About Credit Day is October 19, 2017. Register today!

NEW!

BANKERS AND YOU

PRESENTATIONS THAT EXPLORE CAREERS IN BANKING.

aba.com/GetSmart September/October 2017 | Virginia Banking 7

Update

Washington

Tax Reform: A Hard Job Worth Doing

N Rob Nichols President and CEO, American Bankers Association

othing in Washington that is worth doing is easy, and tax reform is no exception.

There is no doubt that our tax code needs a rewrite. As Congress’ Joint Committee on Taxation points out, since our last overhaul in 1986, our economy has nearly doubled in size, and the internet and globalization have fundamentally changed the way we do business.

Today’s tax code fails to recognize these changes, puts us at a global competitive disadvantage (the combined state and federal U.S. corporate tax rate of more than 39 percent is two and three times higher than that of “competing” countries) and ultimately hinders job and economic growth.

The good news is that leaders in the House, Senate and White House agree on the need for tax reform and are committed to its enactment. While that creates a solid foundation for this important effort, we all know it will take fortitude and persistence to change a tax code that now spans 74,000 pages.

The American Bankers Association (ABA) and VBA are in favor of tax reform that strengthens economic growth and creates jobs. A stronger economy would be good for the country, our members and their customers. We have made ourselves a resource to the lawmakers and staff who are at the center of this enormous undertaking, providing analysis

Economic growth – which tax reform is intended to spur – is priority number one for our industry.

and expertise. We also are encouraging bankers to raise this topic in meetings with their elected representatives.

Of course, like others, we have strong opinions about specific provisions, like the deductibility of interest and the tax-favored status of bank competitors. But we also know that economic growth – which tax reform is intended to spur – is priority

number one for our industry, and that any package put forward must be evaluated as a whole, based on its net impact on the economy, banks and bank customers.

That is why we developed a set of core principles for tax reform that will serve as the basis for our comprehensive analysis of any package that emerges from the deliberations. Those principles, which are available in full on aba.com, urge policymakers to: • Lower rates for all businesses substantially – 15 to 20 percent has been proposed – to boost growth and allow U.S. businesses to be competitive in the global market • Broaden the base and simplify the tax code to level the playing field • Specifically eliminate favored tax treatment enjoyed by credit unions and the Farm Credit System • Consider carefully the effects of any potential effort to limit the deductibility of interest, which could adversely impact economic growth (The extent of tax rate reductions will be a key factor in assessing the broader impact of any changes to the deductibility of interest).

• Avoid industry-specific taxes, which would be punitive, unfair and slow economic growth • Provide adequate transition time for the market and balance sheets to adjust to the new system ABA developed these principles through an internal tax reform working group that has coordinated closely with ABA’s banker-led Taxation Administrative Committee and solicited feedback from bankers in various forums. We have highlighted the principles in communications to Capitol Hill, informing members that we will strongly support tax reform efforts that align with these principles.

Our goal is to encourage a smart approach to comprehensive tax reform that can help America’s communities thrive.

As a veteran of the Treasury Department in the early 2000s when tax cuts were enacted, I know this undertaking is hard – I have the bruises to prove it.

But that doesn’t mean it can’t be done. It can, and we should do everything in our power to make it happen.

Email Rob Nichols at nichols@aba.com.

8 Virginia Banking | September/October 2017

www.vabankers.org

Legislative

Update

Continuous Learning “Anyone who stops learning is old, whether at twenty or eighty. Anyone who keeps learning stays young. The greatest thing in life is to keep your mind young.” – Henry Ford

H

Matt Bruning Senior Vice President, Government & Member Relations, Virginia Bankers Association

aving completed my second resident session at the VBA School of Bank Management earlier this summer – shout out to the Class of 2018! – I continue to be impressed by my fellow classmates’ and instructors’ commitment to continuous learning. Coming from disparate backgrounds, ages, locations and roles, we came together to acquire a deeper knowledge and understanding of the industry in which we serve professionally, as well as to grow and improve on a personal level. The hundreds of bankers who attend any of the VBA’s annual education and training offerings represent our industry’s dedication to life-long education, enrichment and development.

I recognize that I am fortunate to represent such an industry and appreciate the VBA’s commitment to assisting you – and me – in that endeavor.

While the program at the School of Bank Management is filled with deciphering balance sheets, understanding credit portfolios and comprehending compliance risks, you also learn about assessing difficult ethical dilemmas, coaching effectively and collaborating on team decisions; important skills not only for working in banking, but life in general.

Acquiring a better grasp on financials, payments technology and risk management has helped to make me a better advocate for the industry. Being able to better comprehend the various functions, variables and interconnectedness within a financial institution will strengthen my ability to educate policymakers on legislative and regulatory changes we are seeking or explain why and how certain proposals could have a detrimental impact.

I am certain our industry will never stop learning within our field, especially as it continues to evolve and innovate, but it is just as important to learn beyond the confines of our financial sector. An area that fulfills both is advocacy; being engaged in the legislative and political processes afforded in our government should be seen as another opportunity for learning and professional and personal development.

As bankers, being aware of the issues considered and acted upon by legislators and regulators is good business. With incessant changes from policymak-

ing bodies, keeping abreast of the issues helps position you and your bank to best respond and adapt to forthcoming laws and requirements. Taken further, actually participating in the process – through direct interaction with lawmakers and regulators, communicating industry positions and supporting pro-banking candidates – is both an opportunity to stretch beyond your typical daily role while simultaneously benefiting your bank and the overall industry. You already know banking better than they do, so educate lawmakers on our industry and the impact it has on our customers, communities and economy.

At the VBA, we offer a number of ways to learn more about advocacy so you can be as fluent and at ease with interacting with elected officials as possible. As with any learning journey, it simply takes the willingness and desire to start. Begin by participating in our regional meetings with local state lawmakers in your area later this year. Join us at the 2018 Banker Day on January 11th in Richmond to gather and hear from state legislators at the beginning of the General Assembly session. Sign up to be with thousands of bankers from across the country next April 23-25 for the VBA/ABA Government Relations Summit in Washington, DC. If this is your first experience in advocacy, it’s okay to come and just listen – it’s a valuable part of the learning process. These are opportunities to learn more about the legislative system – broken as it often feels – the personalities, backgrounds and insights of your representatives, and the policies and issues facing our industry, commonwealth and country. If you have a question, do not hesitate to ask – the VBA wants to be, and is, a resource to support your better understanding. You do not need to be an expert, especially at the start, but to learn and engage more is something in which you, as a banker and citizen, have a vested interest, whether you know it or not.

Henry Ford also said, “One of the greatest discoveries a man makes, one of his great surprises, is to find he can do what he was afraid he couldn’t do.”

Each of us can learn how to be advocates, which not only helps us stretch ourselves and our abilities, but also keeps our minds young in the process.

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

September/October 2017 | Virginia Banking 9

Compliance

Corner

FFIEC Focus Includes Management Compliance Oversight

T James F. Dray President, Thomas Compliance Associates

he Federal Financial Institutions Examination Council (FFIEC) unilaterally changed the 1980 compliance rating scale in March 2017. All the prudential regulatory agencies and the Consumer Financial Protection Bureau (CFPB) are bound by the new uniform rating system. The 1 through 5 grades were maintained, but the grading components of each grade changed, meaning there will be a significant change in how examiners approach your next compliance examination. There are now three key areas to consider when planning for the bank’s next examination: board and management oversight, risk-based compliance program (or CMS), and consumer harm risk.

As expectations for board oversight of the CMS are continuing to evolve, examiner expectations for management oversight also have changed. If you aren’t aware and prepared, you could be at risk of significant criticism and maybe worse. The senior management team and the leaders of your bank’s business units all play a role in the enterprise-wide culture of compliance. An effective compliance program cannot exist without a strong compliance culture. This requires the right “tone” and support from the top of the organization down. Here are some tips to increase senior management awareness about their responsibilities within the CMS and help pave the way toward meeting examiner expectations.

THE ROLE OF MANAGEMENT Start with the easy stuff – documentation. It has never been more important to be able to exhibit that the board and management not only consider compliance a high priority but also make compliance a high priority. The burden of proof always falls on the bank to show what has been done. Document, at every opportunity, the ways in which management is involved with oversight and administration of the CMS. We suggest a separate section or heading in the board minutes and a standard agenda. This is an easy step that is often overlooked. Let’s face it, with no documentation it is going to be a tough sell that the bank is committed to an effective CMS. Management’s primary role is to implement the board’s CMS expectations so senior management must be involved in the development and mainte-

10 Virginia Banking | September/October 2017

nance of the CMS. Management can delegate development and implementation of the CMS but it cannot delegate responsibility for it. Management can demonstrate the commitment to maintain an effective CMS and encourage compliance in the following ways: Appoint a Qualified Compliance Officer

The performance of your compliance officer will be considered when examiners are assessing the management component of the bank’s CAMELS rating. A qualified compliance officer should be appointed who holds authority, independence and who will carry out compliance accountability within the organization. A compliance officer must have knowledge and understanding of all consumer protection laws and regulations that are applicable to the institution; sufficient knowledge of the bank’s operations; understand the board and management’s tolerance for risk; understand the bank’s strategic goals; and find ways to properly foster the bank’s goals without sacrificing adherence to the rules. Communication across departmental lines regarding changes to products, services, business practices, personnel, or any other area affecting risk management is essential. Remember also that your compliance officer needs to understand the business of banking so that the collective efforts of all of management are consistent with the bank’s strategic goals. Be ready to show examiners the qualifications of the compliance officer – they are going to ask.

Utilize a Compliance Committee

The committee structure can be useful in communicating accountability to staff and can also be used to communicate that the compliance officer is not solely responsible for compliance and that compliance truly is “everyone’s responsibility.”

ALLOCATE RESOURCES Resources include management, staff, training, systems and other components. How much is enough? Most bankers believe they already spend too much on managing compliance risk. Risk adjusted returns require compliance expenditures and www.vabankers.org

Noting

Worth

DUKE NAMED WELLS FARGO CHAIRMAN

Wells Fargo Vice Chairman Elizabeth “Betsy” Duke was named Chairman, to replace Stephen Sanger effective January 1, 2018.

Duke, a former VBA and American Bankers Association chairman as well as a former Federal Reserve governor, will be the first woman to hold a top board role at one of the nation’s largest banks. Duke joined the Wells Fargo board in 2015 and became its vice chairman last year. Congratulations to Betsy on this new role!

Officer Candidate School and was a Naval officer from 1952-1955.

Paul spent most of his banking career with First Virginia Banks, Inc., serving as president and chief administrative officer until 1995.

Paul also served on First Virginia’s board of directors and its executive committee and then on BB&T’s board after First Virginia was acquired by BB&T in 2003. Bruce Whitehurst, VBA president and CEO, remembers Paul as “a wonderful person and a role model as a banker.” Paul’s family is in our thoughts during this difficult time.

STALLINGS NAMED PRESIDENT OF UNION BANK & TRUST

VBA BANKPAC CONTRIBUTES $110,000 TO ABA’S FEDERAL PAC CAMPAIGN

John Stallings, immediate past chairman of the VBA, was named President of Union Bank & Trust, effective September 29, 2017. Stallings was most recently President & CEO of the Virginia Division of SunTrust Banks, Inc., and during his career at both regional and community banks, has led retail, commercial, business banking and wealth management teams. Congratulations to John on this new position!

THOMAS SMITH NAMED PRESIDENT & CEO OF MOVEMENT BANK, FORMERLY FIRST STATE BANK

Thomas Smith, a finance professional from Greensboro, NC, was recently named President & CEO of Movement Bank, previously First State Bank, in Danville, VA. Casey Crawford became the majority shareholder of First State Bank in June and now serves as chairman of the board of Movement Bank. Laura Bowles will serve as vice chair of the board and Laurence Trapp will serve as executive vice president, COO and CFO. First State Bank was formed in 1919 in rural Virginia.

WE WILL MISS…

Paul H. Geithner, Jr., who served as VBA president during the 100th anniversary year, passed away on August 1, 2017. Before he began his career in banking, Paul graduated from the US Navy’s

Over 200 state association executives and bankers joined together to discuss the industry’s most pressing priorities at the American Bankers Association (ABA) Summer Leadership meeting in Boston this July. States at the meeting presented BankPAC checks exceeding $900,000. The VBA 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. Pictured left to right: Jeff Szyperski, Chesapeake Bank Chairman, President & CEO; Rob Nichols, ABA President & CEO; Bill Hayter, First Bank & Trust Company President & CEO and VBA Chairman; Dorothy Savarese, Cape Cod Five Cents Savings Bank President & CEO; and Bruce Whitehurst, VBA President & CEO..

Compliance Corner continued from previous page the trick is not to spend too much or too little. Looking at this solely from the expense side of the balance sheet is a sure way to under allocate which amplifies risk and remediation costs.

REVIEW THE MEMBERSHIP AND CHARTER OF THE COMPLIANCE COMMITTEE. Compliance departments differ from bank to bank. In larger and some mid-size banks, risk management adopts the “three lines of defense” strategy for managing compliance risk. At these institutions, the line of business “owns” the risk and the compliance department is used for guidance, identifying and managing risk and ensuring the decisions of the lines of business are within risk tolerance. In some institutions, the role of compliance is more of a front-end control for managing risk. Either way, the leaders of the business lines should be a part of the committee. You should also include those with accountability for key compliance processes. The compliance committee ensures key information flows both up (such as the results of compliance monitoring performed www.vabankers.org

by the business lines) and down (such as information about new or changing laws or regulations and the coordination of change control in response) through the organization. Detailed minutes of the discussions and action of the compliance committee are key to your documentation of adequate management oversight.

EMPOWER THE COMPLIANCE OFFICER. After working with large banks’ and community banks’ compliance staffs, we firmly believe that compliance staff should help management to be able to exhibit they have adequate oversight of the CMS. The compliance officer should have a path where they can comfortably communicate up and down the organization. Irrespective of the organizational reporting structure, the compliance officer should always be interacting with the board, management and business line leaders. Stay on the Path.

James F. Dray is the president of Thomas Compliance Associates, a VBA Endorsed Provider.

September/October 2017 | Virginia Banking 11

Discover

Debit

Finding Untapped Sources of Income Through Your Debit Card Program Driving Growth on Your Income Statement Mark Reda Senior Manager, PULSE

C

ommunity banks have felt the impact of the drastic changes that have occurred over the last decade. From increased regulatory oversight and the deluge of fintech companies, to shrinking margins and institution consolidation, the options for driving revenue have continued to decrease. These market changes have made it more important than ever for community banks to tap into new income sources, allowing them to thrive in the ever-changing landscape of community banking. As institutions seek out increased profitability, one of the places they can make great strides is by examining their sources of non-interest income.

INCREASE NON-INTEREST INCOME, NOT FEES While growth strategies in non-interest income often impact customers through increased fees, there is an alternative stream for driving non-interest income, while increasing customer engagement and decreasing employee frustration. Reviewing your signature debit card program can be an eye-opening experience that could potentially lead to great savings with the added benefit of less stress on your employees.

According to the 2016 Debit Issuer Study from PULSE® Network, debit remains a critical source of non-interest income, with smaller institutions generating approximately $111 per active consumer debit card per year in interchange revenue.* Reviewing your debit portfolio with a knowledgeable payments expert can help you get a better understanding of how your legacy debit card

A Fresh Face In Debit Cards. Yours.

12 Virginia Banking | September/October 2017

program is impacting your non-interest income. Increased interchange income, reduced fees, and a better understanding of your legacy debit bill are some of the benefits you may be able to uncover when conducting your analysis.

STOP HITTING THE REPEAT BUTTON ON YOUR LEGACY DEBIT CARD PROGRAM Diving into a review of your legacy debit card program might seem overwhelming, but it can also be a driver for increasing non-interest income, simplifying complex network fees and reducing employee frustration. Legacy debit programs often have bills that are up to 20 pages, are time consuming to review and virtually impossible to understand. All of this takes up valuable working hours for operational staff. In addition, community banks often don’t receive prioritization and are faced with limited support from their legacy programs. After completing an analysis with a payments expert and "looking under the hood” of your legacy debit program, it’s possible to find significant fee savings of up to 15% or more.

Delve into the details of your legacy debit program and learn how you can increase your noninterest income by partnering with a debit company that’s here for you. *2016 Debit Issuer Study commissioned by PULSE Network and performed by the financial services practice of Oliver Wyman.

This article was republished with permission from Discover. Mark Reda is the senior manager of business development with PULSE, a Discover company. Discover Debit is a VBA Endorsed Provider.

Discover® Debit offers a compelling alternative in signature debit. www.vabankers.org

Welcome

New Associate Members and Financial Services Members

FINANCIAL SERVICES MEMBER:

FINANCIAL SERVICES MEMBER:

ASSOCIATE MEMBER:

Crowe Horwath LLP

Jones Walker LLP

CB Resource, Inc.

Address: 1455 Pennsylvania Avenue N.W., Suite 700 Washington, DC 20004-1008 CONTACT NAME: JASON STOCKTON Phone: (202) 552-8010 Email: jason.stockton@crowehorwath.com Web: www.crowehorwath.com/banking

1227 25th Street, NW, Suite 200 Washington, DC 20037 CONTACT: JOHN SPIDI Phone: (202) 434-4670 Email: jspidi@joneswalker.com

Address: 584 Wald Irvine, CA 92618 CONTACT NAME: JEFFREY A. RIGSBY Phone: (949) 502-6861 Email: jrigsby@cb-resource.com

Crowe Horwath LLP is one of the largest public accounting, consulting and technology firms in the U.S., providing audit, tax, advisory, risk and performance services.Their dedicated financial services team of more than 800 professionals has more than 50 years of industry experience and serves more than 1,800 financial services organizations.

Jones Walker LLP is one of the largest fullservice law firms in the United States.The Banking & Financial Services Practice Group of Jones Walker offers comprehensive legal and regulatory compliance counsel to financial institutions located throughout the country.

CB Resource, Inc. (CBR) serves its national network of community bank clients by providing actionable intelligence, risk management and planning solutions. By integrating its solutions, CBR is setting the new industry standard in enterprise risk management, strategic and capital planning.

Interested in associate membership in the VBA? Contact Amy Binns at abinns@vabankers.org or 804-819-4726.

ONGOING THROUGHOUT THE YEAR

About the GSB Online Seminar Series Offering a convenient and cost-effective way to participate in educational opportunities, these programs are designed specifically for financial professionals and delivered by some of today’s top industry experts. The use of state-of-the-art audio and video technology ensures a quality, interactive learning experience. Relevant, bank-specific topics provide a solid educational value for you and your staff.

Educating Professionals, Creating Leaders www.vabankers.org

2017

GSB ONLINE SEMINAR SERIES

Registration includes: • One connection into the online seminar presentation—invite others to participate through the same connection at no additional cost • Handouts and other resource material • Unlimited access to the recording of live, online seminar presentations for 90 days after the conclusion of the program • Access to industry experts and nationally known speakers from the convenience of your office

GSB. org September/October 2017 | Virginia Banking 13

Spotlight

Member

2017-2018 Emerging Bank Leaders Chair

Q&A With

Adam Hill Union Bank & Trust

Tell us about how you got into banking and why you chose to make your job a career.

I’m a second-generation banker.

I was introduced to the industry by watching from home as my dad’s career progressed. I was fortunate that he had a very strong connection to the VBA and I actually had the opportunity to attend the VBA Annual Convention as a family member just before graduating from Virginia Tech. Getting to know so many bankers, including those associated with the VBA and my teammates here at Union, really showed me the quality and caliber of people that make up our industry. The Virginia banking industry is filled with strong role models and mentors and I have had more than my fair share along the way. Those mentors have really motivated me to want to contribute to the banking industry and the community in the ways they have, and make this job a career and a life.

You recently graduated from the Virginia Bankers School of Bank Management as the honor graduate and received the Faircloth Family Award of Excellence.

Wow! To what do you contribute to your success, and 14 Virginia Banking | September/October 2017

how did you make the most of your experience at the school?

Going to the Virginia Bankers School of Bank Management was an amazing and rewarding experience. The folks at the VBA, my teammates at Union and my family all committed a lot of time and resources to give me the opportunity to be there, so I wanted to make the most of it. That first day of Bank School, you don’t really know what to expect. The program kicks off at a fast pace and you find yourself surrounded by a group of incredible bankers who all happen to be even more incredible people, and on top of that, you’re learning from executives and instructors that are experts in their respective fields. It’s pretty easy to be motivated by the success and accomplishments of the people around you and the Virginia Bankers School of Bank Management is filled with motivation in that sense.

There is a lot of talk about succession planning and a talent gap in the industry to fill the shoes of retiring executives. You recently spoke to this on an EBL panel at the VBA Internship Program Mid-Summer Meet Up. Tell us more about how bankers can encourage students to get involved in the industry so that we can attract that next generation of talent.

I really think it comes down to how we market and present the banking industry and banking profession to future generations and the community as a whole. For a lot of people, their view of the www.vabankers.org

banking industry is limited to the teller line or drive-thru window.

Even worse, if you Google the word ‘banker’, the first page of images all include a guy behind a desk in a big high-rise either talking on the phone or presiding over a pile of money. There’s even a guy lighting a cigar with a burning dollar bill. These stereotypes are how the world sees the banking industry, even if they have a great relationship with their bank. The same is true for most students coming out of college. Our EBL panel tried to highlight the diversity in banking – not just in the people that make up our industry, but the various job titles and positions that make up each and every bank. We have people on our team from a variety of backgrounds with skills and interests as diverse as the community we serve. Sure, finance and accounting are important elements of banking, but so is proficiency in social media, understanding marketing, community relations, non-profit work and so on.

The other thing to highlight, for Millennials in particular, is the experience aspect of being a banker. The Millennial generation is said to value experiences over ‘stuff’ – they’d rather spend their money on vacations or dinner with friends than a house or fancy car. In my short career in banking, I’ve had so many cool and unique experiences, from discussing important issues with our politicians in DC to playing golf with the voice of the Hokies, Jon Laaser, on top of my day-to-day job which puts me in front of business leaders in our community. Being a banker is a tremendous experience and so much more than numbers, calculators and money.

You are passionate about government relations and serve on the VBA Government Relations Committee.

Why is it important for bankers in Virginia to be involved in advocacy?

I think perception of the industry vs. reality is one of the most important reasons for bankers to be involved in advocacy. I will never forget going to my wife’s high school reunion a few years after the financial crisis hit rock bottom. The recovery had started but was slow at best and people were still hurting. As I was meeting her former classmates and answering the natural ice-breaker of “what do you do?” one particular individual responded immediately, “So you’re the bad guy!” This may have been his attempt at a joke – or maybe he had just read about a new agency that would “protect” consumers from the banking industry – but it really hit me. I gladly spent the next 30 minutes explaining who the real people of “the banking industry” were. That we were his neighbors, pew-mates at church, coaches for the little league baseball team, members of the local non-profit board and so on. Our politicians need to hear and repeat the same message to help small businesses continue to regain confidence in the banking industry so that we can play our role in helping to fund small businesses so they can drive our economic recovery. I also believe it is part of our responsibility as American citizens to participate in the political process, beyond stuffing the ballot every couple of years. It was Thomas Jefferson that said, “We in America do not have a government by the majority, we have a government by the Continued on next page

www.vabankers.org

September/October 2017 | Virginia Banking 15

majority who participate.” Your politician’s exposure to banking may also be limited to that drive-thru teller window, so they rely on us to help explain and understand the consequences of new legislation. Not just how those consequences will make our jobs harder but how those regulations will hurt our customers and the community. While it can be ugly at times, our friends in government really do try their best to represent their constituents but they don’t understand what you want or your position on major policies unless you take the time to tell them.

literacy of Virginia’s youth and have opportunities to engage in the political process and advocate for their industry and their community. These opportunities for personal growth, like the annual Leadership Conference, Get Smart About Credit Day or the VBA/ABA Government Relations Summit in DC, give members an opportunity to network and engage with their peers who will ultimately become resources, sounding boards and maybe even coworkers as they progress in their careers.

Since its inception in 2009, the EBL has grown to more than 470 members. What is your favorite thing about this group and what is the best way for other bankers to get involved?

The thing I love about EBL is that its membership is full of individuals who have either identified themselves or have been selected by their bank’s leadership as the future of the banking industry. Our members believe in the future of Virginia banking and they believe they will play a major role in that future. With that in mind, the EBL gives them an opportunity to develop their professional skills so that they can contribute at a high level within their respective institutions. EBL members also have the opportunity to promote and contribute to the financial

What role do you see the EBL having as the industry evolves over the next five, 10, 20 years?

One major opportunity for the EBL is to engage with the VBA and all of the wonderful colleges and universities in the commonwealth to promote the Virginia banking industry as a great place to start and build a career. The VBA’s new summer internship program is a great first step in that effort and I think the EBL should be able to naturally connect with the interns and help demonstrate and promote the passion that goes into our industry so that we can change the outside perception. While one of our primary goals is to prepare our membership for future roles in leadership, I think we could also leverage the minds and talent of our membership to help current leaders in our industry understand shifts in technology

16 Virginia Banking | September/October 2017

www.vabankers.org

or consumer preferences as they’re occurring.

Every industry is spending a significant amount of time and resources trying to understand the Millennial generation and an increasingly large segment of our membership should be able to help answer some of those questions and be agents of change for the industry.

What do you do for fun when you’re not in the office?

My wife Ashley and I have been blessed with three boys, Jackson (seven), Isaac (five) and Foster (two) so we are never short on fun or excitement at our house. If I’m not working, the place I am happiest is with my family, whether that be tailgating for a Virginia Tech football game, spending time at the beach or the lake with extended family, hanging out at the pool or just “relaxing” at home. As our kids get older, their passions become ours too so these days we are big into Cub Scouts and spending time exploring the outdoors (which is right up my alley).

VBA Management Services Endorses New Provider

The board of directors of VBA Management Services Inc. recently endorsed Akouba. Akouba is a secure tech-only, digital end to end platform that allows banks to take a business loan from app to closing, online. With Akouba, banks continue to use their money, their credit policy and risk-rating metrics while continuing to build relationships with their customers. Akouba just provides the technology to help them get small and mid-size business deals done faster, more efficiently and more profitably, which enhances both the customer and banker experience.

Utilizing an attractive omnichannel borrower portal with secure login, Akouba’s product is designed to help banks deliver what their customers expect: a transparent loan process, seamless 24/7 online experience, and quick decision abilities.

Bankers get an end-to-end loan process with more visibility across departments allowing for more cohesiveness, reduced costs, and improved application completion rates. This includes pipeline view and lead generation, workflow tracking and automated document management, risk-rating and financial analysis. For more information contact Mike Dillon, national sales director, at mike@akoubacredit.com or 312-448-7424.

For more information on any of the VBA Endorsed Providers, visit www. vabankers.org or contact Matt Bruning, senior vice president, government and member relations, at mbruning@vabankers.org.

SECRET FORMULA REVEALED! Today’s banks are searching everywhere for a technology partner that does business the same way they do—a commitment to innovation and a focus on service. Well, look no further than CSI. Our innovative solutions and customer-centric approach are the secret combination you’ve been waiting for.

csiweb.com/Secret www.vabankers.org

September/October 2017 | Virginia Banking 17

Management

VBA School of Bank

Virginia Bankers School of Bank Management More than 180 bankers came together for this year’s weeklong resident session of the Virginia Bankers School of Bank Management at the University of Virginia’s Darden School of Business. Bankers leave school each year with a deeper understanding of the banking industry through classes focused on topics such as the economic environment, marketing, decision making and technology in banking. This year’s school brought back many instructors who have been a part of the school for many years, as well as a new instructor, Elena Loutskina, associate professor of business administration, Darden School of Business, who led a class on “Mortgage Securitization and Its Role in Banking” in the third year class.

Students participated in many charitable, social and networking events throughout the week. This year’s graduating class organized a collection and Bowling for a Cause event for the UVa Children’s Hospital. At registration, they collected board games and art supplies and raised over $4,000 for the hospital at the bowling event. The Emerging Bank Leaders (EBL) hosted a series of Dine Around Dinners again this year, where students had the opportunity to learn about this group of bankers. Students also had an opportunity to visit King Family Vineyards for a wine tasting.

The second annual Faircloth Family Award of Excellence was awarded to Adam Hill of Union Bank & Trust. This award recognizes a member of the third year class who exhibits three attributes which Mark Faircloth is “still learning from his wife Jennifer, son Will and daughter Rebecca” – continuous learning, passionate giving and purposeful living. Recipients are chosen by a selection committee based on academic achievement, contributions to the school, behavior in the classroom and relationships formed with other students.

Adam Hill was also this year’s honor grad, with a GPA of 98.9.

Congratulations to those who graduated in the top ten percent of the class: Rachel Ashby, First Bank & Trust Company; Johnna Barksdale, Select Bank; Jared Giordano, Middleburg Bank, a 18 Virginia Banking | September/October 2017

Division of Access National Bank; Adam Grindstaff, Union Bank & Trust; and Ashley Stevens, Union Bank & Trust.

For more information about the VBA School of Bank Management and the admission criteria, please visit the VBA’s website at www. vabankers.org.

Congratulations to the class of 2017 and we look forward to seeing the new and returning students next summer for the 2018 session!

The 1st year class.

The 2nd year class.

The 3rd year class. www.vabankers.org

1st year class officers: Cindy Driest, treasurer; Jules Tamo, vice president; Ryan Melcher, president; and Jamie Johnson, secretary.

2nd year class officers: Keith Smith, vice president; Bethany Bajsert, secretary; Josh Toth, president; and Scott Griffin, treasurer.

Members of the 3rd year class delivered donations to the UVa Children’s Hospital.

3rd year class members Scott Atkins, Candance Davenport and Amanda Peay at registration.

Instructor Brad Schwartz, TowneBank, during Bank Financial Management II with the 2nd year class.

Adam Hill was this year’s Honor Grad as well as the recipient of the Faircloth Family Award of Excellence. Pictured here are Adam’s parents, C.T. and Moira Hill, Adam, and Jennifer and Mark Faircloth (left to right).

Chesapeake Bank students at the "I love the '80s" party hosted by the 3rd year class.

The team from the 3rd year class was this year’s kickball champion.

1st year classmates Rhonda Stollings, Jody Kuehn and Vikeesa Stultz at the Welcome Cook-out.

Tim Pannell discusses strategic marketing with the 1st year class.

Kerry Sauley took a break from his “Organizational Bank School students enjoyed a wine Behavior” class and awaited his next wrestling opponent. tasting at King Family Vineyards.

www.vabankers.org

3rd year class officers: Amanda Peay, secretary; Marshall Jett, president; and Alicia Howard, vice president.

Scott Harvard, VBA chairman-elect (center), at The Pouring with Watts and Linda Steger.

September/October 2017 | Virginia Banking 19

Virginia Bankers School of Bank Management 2017 continued from page 19

Marshall Jett, 3rd year class president, presented Bruce Whitehurst with a birthday gift from the graduating class.

Bank of Botetourt bankers Watts Steger, Paul Murphy and Michelle Crook support their graduate, Amanda Peay (third from right), 1st year students Mary Ann Miller and Todd Parsons (third from left and far right), and 2nd year student Travis Hull (second from left).

Jimmy Sawyers during his “Technology in Banking� class with the 2nd year students.

Bill Hayter, VBA chairman and president & CEO of First Bank & Trust Company, addressed the class of 2017 at graduation and spoke to them about what it means to be a banker.

Joe Collum, principal vice president, Burke & Herbert Bank, and chairman of the School of Bank Management Trustees, presided over graduation.

Mark Faircloth and Elena Loutskina, UVA liaison, Darden School of Business.

Virginia Bankers School of Bank Management Class of 2017 Debbie Arrington

New Peoples Bank Inc.

William R. Karst

United Bank

Rachel S. Ashby

First Bank & Trust Company

Nicole Kemp

Essex Bank

Scott D. Atkins

Essex Bank

Tina K. Kent

Chesapeake Bank

William N. Bailey

Farmers Bank

Alexandre Knapp

Access National Bank

Daniel L. Baldwin

Access National Bank

Michael Knotts

MVB Bank, Inc.

Chandni Baptiste

Federal Reserve Bank of Richmond

Shon B. Koly

Burke & Herbert Bank

Johnna Willse Barksdale Select Bank

Joseph A. Lewis, III

Village Bank

Samuel B. Blaser

The Fauquier Bank

Hector Ochoa

Burke & Herbert Bank

Dena M. Bonniwell

Chesapeake Bank

Matthew G. Paciocco

Virginia Commonwealth Bank

Amy V. Channell

Summit Community Bank, Inc

Jason A. Padua

SunTrust Bank

Christopher L. Clifton

TruPoint Bank

Amanda B. Peay

Bank of Botetourt

Donna H. Craft

Highlands Community Bank

Tyler Perry

SunTrust Bank

Nicole M. Crandall

TowneBank

Jamie M. Radford

Carter Bank & Trust

Candace L. Davenport

First Bank, Strasburg

Laurie Pennington Rowe Chesapeake Bank

Matt Doane

Highlands Union Bank

Georges Emile Saison

Peoples Community Bank

Amy B. Everett

The Bank of Southside Virginia

Ashley E. Stevens

Union Bank & Trust

Tony Farland

Community Bank of the Chesapeake

Claudia K. Stinnie

Union Bank & Trust

Jared K. Giordano

Middleburg Bank, a Division of Susan Templeton Access National Bank

Middleburg Bank, a Division of Access National Bank

Quincy A. Gregory

BB&T

Tara Totino

First Community Bank

Adam P. Grindstaff

Union Bank & Trust

Darren T. Tully

Freedom Bank of Virginia

Raleigh E. Hayter

First Bank & Trust Company

Barbara Ann VanDyke

New Peoples Bank Inc.

Adam J. Hill

Union Bank & Trust

James B. Watson

National Bank

James C. Hill, II

Southern Bank and Trust Company

David Josiah Wood

Carter Bank & Trust

Alicia Moniba Howard Union Bank & Trust

Lauren Leigh Wood

C&F Bank

D. Marshall Jett

Gregory R. Young

Pioneer Bank

Essex Bank

Michelle Darice Johnson Union Bank & Trust 20 Virginia Banking | September/October 2017

www.vabankers.org

Palooza

Committee

Tenth Annual CommitteePalooza Committees That Met During CommitteePalooza: • • • • • • • • • • • • • •

CFO Committee Compliance Committee Enterprise Risk Management Committee Government Relations Committee Human Resources Committee Emerging Bank Leaders Steering Committee Legal Affairs Committee Lending Executives Committee Marketing Committee Operations & Technology Committee Retail Executives Committee Security Committee Training Committee Trust & Wealth Management Committee

Committee Chairs

T

he Virginia Bankers Association hosted its 10th annual CommitteePalooza on Sept. 9, 2017 at the Troutman Sanders building in downtown Richmond. Fourteen committees held meetings this year with over 170 bankers in attendance.

VBA committees work through the year to provide input to the VBA on matters affecting the banking industry and the committee’s functional area of banking, identify possible legislative or regulatory issues, provide input on education and training needs, and provide a forum for the exchange of ideas and networking.

Their commitment to this purpose contributes to creating a stronger banking community in Virginia. VBA committees also work with VBA staff to plan for upcoming conferences and events.

Bruce Whitehurst, VBA president and CEO, welcomed the group and gave an industry update during the General Session.

Jake Lutz, Alan Wingfield, Shannon Patterson and Seth Winter, all with Troutman Sanders, gave updates on trends and educational offerings relevant to the bankers in attendance, including cybersecurity.

Courtney Fleming, VBA senior vice president, education and training/communications, highlighted the VBA’s two new conferences for 2018, VBAConnect and VBAProtect. These new conferences will combine some of the former, smaller conferences into larger events which will enhance learning and extend vendor relationships and networking opportunities. VBAProtect, May 1-3, 2018, will be designed for security, risk, compliance, operations and technology professionals and VBAConnect, May 14-16, 2018, will be designed for marketing, retail, HR and training professionals. Both events will be held at the Williamsburg Lodge.

Thank you to all the Virginia bankers who attended Palooza.

Please contact Tracy Ottinger, tottinger@vabankers.org, for more information about VBA committees. www.vabankers.org

Thomas J. Chmelik CFO Committee

MainStreet Bank

Tom Lackey

Compliance Committee

MainStreet Bank

Adam J. Hill

Emerging Bank Leaders Steering Committee

Union Bank & Trust

Jennifer S. Theimer Enterprise Risk

Management Committee

Bank of Botetourt

Gary R. Shook

Government Relations Committee

Middleburg Bank, a Division of Access National Bank

Judith A. Clements

Human Resources Committee First National Bank

Rachael R. Lape

Legal Affairs Committee

Union Bank & Trust

C. Rodes Boyd, Jr.

Lending Executives Committee Virginia Commonwealth Bank

Erin Black

Marketing Committee

Old Point National Bank

Donald J. Seeterlin Operations &

Technology Committee

Chesapeake Bank

Ann-Cabell Williams Retail Executives Committee

EVB

Wendy Dunham

Security Committee

Access National Bank

Colette Saccoccio

Training Committee

Christine N. Thomas Trust & Wealth

Management Committee

Benchmark Community Bank BB&T

Committee Vice-Chairs Elizabeth T. Beale

CFO Committee

Citizens National Bank

Kathryn W. Lifsey

Compliance Committee

Bank of the James

Thomas L. Rasey, Jr. Emerging Bank Leaders

Steering Committee

The Farmers Bank of Appomattox

Rodney W. Cogbill

Human Resources Committee C&F Bank

John M. Oakey, III

Legal Affairs Committee

Essex Bank

Benjamin T. Horne, IV Lending Executives Committee Blue Ridge Bank Jennifer W. Knighting Marketing Committee

Oak View National Bank

Lynne E. Clary

Operations & Technology Committee

Citizens Bank & Trust

LeAnne R. Emert

Retail Executives Committee

Benchmark Community Bank

Dollie Marshall Kelly Security Committee

C&F Bank

Mia C. Mallory

Village Bank

Training Committee

September/October 2017 | Virginia Banking 21

Program

VBA Summer Internship

VBA Pilots New Summer Internship Program “Speaking with professionals in this industry has been really enlightening because banking is not something that has been highly advertised in college as a career possibility. In fact, I never really thought about banking as career until this internship. I think that the VBA is doing a huge service in setting this program up to help create internship programs that are valuable and allow for an appreciation of the banking industry.”

– Nick Nonnemacker, Chesapeake Bank Intern

Matthew Newman and Laurie Rowe, Chesapeake Bank, made a Careers in Banking presentation at the Intern Orientation. They discussed the banking industry, their own personal career paths and the ways banks give back to their communities.

A

Aaron Green, Tom Rasey, Adam Hill and Dorothy Welch served on an Emerging Bank Leaders panel at the Mid-Summer Meet Up. They discussed how they got into the industry, how they feel their banks are unique and what it takes to be a banker.

s a direct result of the ongoing discussion of attracting and retaining talent, the VBA created an internship program for member banks to participate in. This past summer, fifteen interns completed the pilot VBA Summer Internship Program at seven banks across the Commonwealth.

As part of this pilot program, interns were exposed to the banking industry through a variety of projects, online coursework, departmental rotations through their banks, community events and on-site training at the VBA. Interns who completed a set of requirements were eligible to receive the VBA Internship Program Certificate of Completion.

The VBA offered a Mentor Orientation in April for bankers who would be in the supervisor role throughout the summer where they learned the importance of creating an educational experience during the internship period. Interns began the program at the Intern Orientation in late May, where they learned more about the VBA, the banking industry, business etiquette and heard from two Emerging Bank Leaders about their careers. The interns returned to the VBA in July for the Mid-Summer Meet Up. At this event, interns heard from Karen DesRoches, VBA vice president and HR committee liaison, and Rachel Blankenship, Old Point National Bank director of HR, about resumes, interviews and other HR best practices, as well as from a panel of four Emerging Bank Leaders who discussed their individual career paths and what it takes to be a banker. The event concluded with a fintech presentation from Dave Waller of Q2, a VBA Associate Member, which directly related to the interns’ capstone project for the summer, “Fintech: Partner or Disrupter?”.

The VBA is excited to offer this program to all member banks for the summer of 2018. Please contact Monica McDearmon at mmcdearmon@vabankers.org to learn more about this program.

22 Virginia Banking | September/October 2017

For their capstone project, the interns explored the world of fintech and its effect on the banking industry. Dave Waller from Q2, a VBA associate member, made a fintech presentation at the Mid-Summer Meet Up to help the interns with their research.

2017 Internship Program Participants Intern Bank

College/University

Brennan Lloyd

Bank of Clarke County

Shenandoah University

Whitney Eriksen

Chesapeake Bank

East Carolina University

Nick Chesapeake Bank Nonnemacker

Christopher Newport University

Brian Owens

Chesapeake Bank

Christopher Newport University

Jonathan Shearin

EVB

Randolph-Macon College

Joshua Lasam

F&M Bank

Bridgewater College

Adam Varner

F&M Bank

Virginia Tech

Cameron Whitehurst

Middleburg Bank, a Division of Access National Bank

William & Mary

Bryce Altizer

Skyline National Bank

Virginia Tech

Emily Hart

Skyline National Bank

Bluefield College

Jacob Kohl

Skyline National Bank

Virginia Tech

Camryn McGrady

Skyline National Bank

Radford University

Nicholas Sage Skyline National Bank

Wytheville Community College

Aaron Smith

Skyline National Bank

UVa – Wise

Matt Wilson

The Bank of Southside Virginia

East Carolina University

www.vabankers.org

Move

Bankers on the

Are your bankers on the move? Email submissions to mmcdearmon@vabankers.org.

Lisa A. Caldwel

L. Michael Arthur

E. Neil Burke

Jennifer M. Clark

Steve H. Creedle

Leanne R. Emert

Tammy K. Brown

Andrew McLean

Raj Mahajan

Candace DowellBrower

Jim Sedlar

Angela Brown

Bank of Botetourt Lisa A. Caldwell – Mortgage Services Officer

Benchmark Community Bank L. Michael Arthur – Senior Vice President, Credit Administration E. Neil Burke – Executive Vice President, Chief Financial Officer Jennifer M. Clark – Senior Vice President, Director of Human Resources Steve H. Creedle – Senior Vice President, Business Banker Leanne R. Emert – Executive Vice President, Retail Banking G. Lee Minix – Senior Vice President, Credit Officer Donna Wilborn – Operations Officer Carter Bank & Trust Tammy K. Brown – Vice President, Commercial Relationship Manager First National Corporation M. Andrew McLean – Richmond Market President HomeTown Bank John Hanna – Assistant Vice President, Private Banking Officer

G. Lee Minix

New Peoples Bank Joe Waters – Senior Vice President, Regional Commercial Banking Officer Old Dominion National Bank Raj Mahajan – Executive Vice President, Mortgage Lending Pinnacle Financial Partners Candace Dowell-Brower – Office Leader SunTrust Bank Billy Harper – Relationship Manager Lara Rayborn – Regional Sales Manager, Treasury & Payment Solutions Cheryl Carrington – Senior Vice President Client Advisor, Wealth Management Union Bank & Trust Nathalia D. Artus – Vice President, Community Development Banker Virginia Commonwealth Bank Jim Sedlar – Senior Vice President, Commercial Banking VCB Financial Group Angela Brown – Vice President, Trust Officer

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Todd Phillips: 803.808.4937 / todd.phillips@dditechnology.com Amanda Jensen: 803.808.4922 / amanda.jensen@dditechnology.com

Donna Wilborn

Auctioneers & Appraisers delivering successful results to Virginia Banking institutions since 1963

Same Day. Same Place. Two Events.

SAVE THE DATE: JANUARY 11

STATEWIDE ADVOCACY BREAKFAST EVENT Featuring: Breakfast and Relationship Building with Legislators A Panel of Legislators in Leadership Roles VBA Updates on the 2018 General Assembly Session Ahead Please contact Grace Stephens at gstephens@vabankers.org with questions.

PREMIER ECONOMIC FORECASTING LUNCHEON Featured Speakers: Jim Chessen, Executive Vice President and Chief Economist American Bankers Association Jeff Ricketts, President Anthem Blue Cross & Blue Shield of Virginia Please contact Courtney Fleming at cfleming@vabankers.org with questions.