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November/December 2013
IN THIS ISSUE CDIFS ARE CONDUITS FOR OPPORTUNITY | GRASSROOTS ADVOCACY AND FINANCIAL LITERACY HIGHLIGHTS
Emerging Internet Mobile Community&
Rewriting the Future of Banking
The
We take great pride in treating our members like family, and our advisors at Dixon Hughes Goodman mirror this commitment. We trust their industry knowledge and accounting proficiency to navigate banking regulations, governance and reporting. Through it all, we receive outstanding client service as we continue to grow our hometown community bank.
CPAs and Advisorswww.dhgllp.com/banking | [email protected] | 877.999.9343
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Dixon Hughes Goodman Financial Institution Services GroupBanking PartnersBanking Clients Bank Professionals
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-G. Robert Aston, Jr., Chairman & CEO, TowneBank
Walter McNairy Walter is the Partner-in-Charge of the Financial Institution Services Group and has been serving banks throughout the Southern U.S. for 23 years.
Dave NilesDave is the Partner-in-Charge of Risk Advisory Services for Community Banks and an Audit Partner, and he has more than 18 years of experience serving banks.
Mike GilreathMike is a Senior Manager based in Richmond and has 12 years of experience serving the financial institution industry.
2013-2014 OFFICERS AND DIRECTORS OF THEVIRGINIA BANKERS ASSOCIATION
Gary R. Shook, Chairman, Middleburg Bank
John R. Milleson, Chairman-Elect, Bank of Clarke County
Jeffrey M. Szyperski, Immediate Past Chairman, Chesapeake Bank
Christopher W. Bergstrom, Cardinal Bank
Katherine E. Busser, Capital One Financial Corporation
Tim Butturini, Wells Fargo Bank, N.A.
J. Peter Clements, The Bank of Southside Virginia
Randy K. Ferrell, The Fauquier Bank
Gary Gore, Bank of America, N.A.
Scott Harvard, First Bank, Strasburg
William H. Hayter, First Bank & Trust Company
G. Lyn Hayth, III, Bank of Botetourt
T. Gaylon Layfield, III, Xenith Bankshares, Inc.
Monte L. Layman, Blue Ridge Bank
Susan R. Ralston, Bank @Lantec
John G. Stallings, SunTrust Bank
H. Watts Steger, III, Bank of Botetourt
Susan K. Still, HomeTown Bank
David P. Summers, Virginia Heritage Bank
Daniel G. Waetjen, BB&T
Michael O. Walker, Benchmark Community Bank
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
Monte L. Layman, Blue Ridge Bank
VBA Education Foundation Chair
H. Watts Steger, III, Botetourt Bankshares, Inc.
EDITORIAL & EXECUTIVE OFFICES4490 Cox Road Glen Allen, VA 23060804-643-7469 Fax 804-643-6308www.vabankers.org
Bruce T. WhitehurstPresident and CEOVirginia Bankers Association
Chandler DeweyManager, Communications &
Government RelationsVirginia Bankers Association
SUBSCRIPTIONSIf you would like to subscribe to Virginia Banking, contact Chandler Dewey at [email protected]. Virginia Banking is published bi-monthly. Copyright 2013.
Statements of fact and opinion aremade on the responsibility of theauthors alone and do not imply anopinion or endorsement on the partof the officers or members of VBA.
features
cover
4 Calendar of Events 5 Insights 6 Worth Noting 7 New Associate Members 8 Legislative Update 10 Legal Line11 Washington Update16 Compliance Corner22 Bankers on the Move
Send us your thoughts or ideas on Virginia Banking! Please email Chandler Dewey at [email protected] . Has your information changed? Please email Kellee Edelin at [email protected] with your new contact information.
The Emerging Internet & Mobile Community is Rewriting the Future of Banking
12
in every issue
The Warren GroupDesign / Production / [email protected]
©2013 The Warren Group Inc. All rights reserved. The Warren Group is a trademark of The Warren Group Inc. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without written permission from the publisher. Advertising, editorial and production inquiries should be directed to: The Warren Group, 280 Summer Street, Boston, MA 02210. Call 800-356-8805.
PUBLISHED BY
280 Summer Street, Boston, MA 02210Phone: 617-428-5100 Fax: 617-428-5118 www.thewarrengroup.com
November/December 2013 | Virginia Banking 3
November/December 2013
How Participating in Bank Day Shaped My Career17
Financial Literacy andGrassroots AdvocacyHighlights of Fall 2013
18
Bringing the World to Virginia20
2014 FINANCIAL FORECASTGREATER RICHMOND CONVENTION CENTERJANUARY 3, 2014
BRANCH LEADERSHIPVBA TRAINING CENTERFEBRUARY 19-20, 2014
BANK SECRECY ACT TWO-DAY SCHOOLVBA TRAINING CENTERFEBRUARY 25-26, 2014
RETAIL BANKING & MARKETING CONFERENCEOMNI CHARLOTTESVILLE HOTELMARCH 11-12, 2014
ANALYZING FINANCIAL STATEMENTSVBA TRAINING CENTERMARCH 18-19, 2014
BANK DIRECTORS SYMPOSIUMTHE WESTIN RICHMONDAPRIL 1, 2014
THE INN AT VIRGINIA TECHAPRIL 2, 2014
WESTFIELDS MARRIOTT - NORTHERN VIRGINIAAPRIL 3, 2014
COMPLIANCE SCHOOL AND COMPLIANCE HOT TOPICSOMNI CHARLOTTESVILLE HOTELAPRIL 6-11, 2014
SECURITY & ENTERPRISE RISK MANAGEMENT CONFERENCEOMNI CHARLOTTESVILLE HOTELAPRIL 23-24, 2014
HR & BENEFITS CONFERENCEOMNI CHARLOTTESVILLE HOTELMAY 4-6, 2014
OPERATIONS & TECHNOLOGY CONFERENCEOMNI CHARLOTTESVILLE HOTELMAY 13-14, 2014
APPRAISAL REVIEW SEMINARVBA TRAINING CENTERMAY 21-22, 2014
TRUST & WEALTH MANAGEMENT CONFERENCEVBA TRAINING CENTERTBD
ANNUAL CONVENTIONTHE SANCTUARY AT KIAWAH ISLANDJUNE 15-18, 2014
CFO CONFERENCEOMNI RICHMOND HOTELAUGUST 25-27, 2014
CEO FORUMTHE GREENBIERSEPTEMBER 15-16, 2014
COMMERCIAL LENDING SCHOOLVBA TRAINING CENTEROCTOBER 15-16, 2014
CREDIT MANAGEMENT CONFERENCEOMNI CHARLOTTESVILLE HOTELOCTOBER 6-7, 2014
WOMEN IN BANKING SEMINARTBDNOVEMBER 5, 2014
LEADERSHIP CONFERENCETBDNOVEMBER 13-14, 2014
SAVE THE DATES FOR 2014 CONFERENCES AND EVENTS
4 Virginia Banking | November/December 2013 www.vabankers.org
EDUCATION & TRAINING
Without a doubt, the banking indus-try is one that is connected in nu-merous ways. Through the Virginia
Bankers Association, bankers come together for industry advocacy, education and training and to address industry challenges and concerns. The VBA is fortunate to have many active bankers from banks all over Virginia; it makes our voice stronger while also creating networking opportu-nities and lasting friendships among bankers.
Banks of all sizes are not only connected through their active participation in the VBA, but also through their joint efforts in communities all over the commonwealth. Go to any civic club meeting in any town or city, and you are sure to see bankers from more than one bank there. Look at the board rosters and list of contributors for nonprofit organizations and you will find bank-ers and banks there. Check the leader board for United Way campaigns and you will see more of the same. Collective work on community leader-ship is simply part of a banker’s DNA.
Another clear way banks are connected is through cooperative efforts to meet customers’ needs. For community banks in particular, this means working with correspondent and invest-
ment banking firms. Correspondent services give community banks more flexibility to offer larger loans and meet various other needs of their cus-tomers, without having to offer every service on a standalone basis. Investment bankers help com-munity banks raise capital, plan for future growth and stay up to date on industry trends.
This issue will explore how community bank-ers can bring their approach to banking to a global audience, sometimes with the help of correspon-dent and investment banking services. A number of firms that offer these services are connected to each other and the industry through their ac-tive support of and membership in the VBA. They benefit from the networking and dialogue opportunities the VBA affords them and we rely on them to help us accomplish our mission of en-hancing Virginia banking so banks can best serve their customers and communities.
Banks compete daily for business – that’s what the free enterprise system is all about – yet they also connect and collaborate, making our indus-try even stronger as a result. Those of us on staff at the VBA are honored to play a key role in creat-ing good and lasting connections within our in-dustry.
Bruce Whitehurst can be reached by email at [email protected].
Bruce Whitehurst
President and CEO,
Virginia Bankers Association
A Connected Industry
www.vabankers.org
Insights
November/December 2013 | Virginia Banking 5
Jan
uar
y
3 ~ N
oon-2pm ~ Richmon
d, V
A
2014 Financial Forecast
JANUARY 3, 2014 GREATER RICHMOND CONVENTION CENTER
VISIT WWW.VABANKERS.ORG FOR MORE INFORMATION
HOSTED BY THE VIRGINIA BANKERS ASSOCIATION AND THE VIRGINIA CHAMBER OF COMMERCE
www.vabankers.org20 Virginia Banking | November/December 2013
Technological advances within the past five years have created a remarkable shift for community banking. The internet’s vast
connectivity has delivered the world to many, when transactions with customers in Paris or Portsmouth can be done with relative ease. At Virginia Commu-nity Capital (VCC) and other Community Develop-ment Financial Institutions (CDFIs), this access revo-lution has generated a slightly different result. The core focus for CDFIs will always be invigorating local communities. But, our horizons have expanded tre-mendously in terms of partners and resources avail-able to support our mission and work.
VCC and our for-profit Community Capital Bank of Virginia (CCB) strengthen communities throughout Virginia in core areas of affordable housing, job creation, community facilities like health care or child care, and Main Street revitalization. Within the past year, like other CDFIs across the country, we’ve broadened our focus to include healthy foods. VCC has also reached out to address needs through small business lending. Success depends on mobilizing strong collaborations to promote vibrant local communities, create jobs, and deliver innovative capital across Virginia. We have solid relationships with the public sector (local and state) as well as with many partner banks.
Within the past few years, much as community banking has opened its doors to a global audience, CDFIs have cultivated national and regional partners through innovative programming or products. With VCC, these high-profile partnerships elevate our work to a global platform and, in doing so, create
exponential impact for Virginians.Engaging national prospects has required diligent
research, extensive upper-level conversations, and detailed knowledge of innovative models for community development investment. As with most CDFIs who are also mission-focused, VCC analyzes every potential project, program, or loan through two lenses: will it provide lasting impact to an underserved market and does it make financial sense? When national issues emerge, we dedicate minds and resources to considering how these initiatives can improve lives across Virginia. If an opportunity passes the mission-money litmus test, we proceed with vigor.
Our ongoing participation in the Goldman Sachs 10,000 Small Businesses initiative offers a perfect example of a national, mission-related investor complementing VCC’s dedication to helping small businesses excel. We began conversations with Goldman Sachs over a year ago. We introduced them to our broad portfolio of successes in communities across Virginia and openly discussed our strategy to expand our small business support. Preliminary conversations turned to targeted program development through their 10,000 Small Businesses initiative; and in July, we announced a $4.4 million investment in VCC by Goldman Sachs. The funding includes $4 million going directly to VCC’s loan fund to lend money to small businesses that are growing and creating jobs in low- to moderate-income areas and an additional $400,000 serves as a loan loss reserve and expands our small business lending outreach and assistance.
The Goldman Sachs support has already delivered noteworthy impact. Funds leveraged a loan to early-stage Evatran, developer of Plugless Power, the world’s first wireless charging system for electric vehicles. The support allowed for acceleration of beta units to market, which galvanizes opportunity for an integrated product with major U.S. and German automobile manufacturers for 2015 vehicles. Parts will fly from Richmond to Munich as the result of the VCC/CCB support and Goldman Sachs partnership. Further, the Goldman Sachs/VCC collaboration has created 49 jobs and retained an additional 20.
Restoring America’s manufacturing landscape is a national priority and so is elimination of food deserts across our country. The Food Trust introduced a CDFI-
Bringing the World to VirginiaCOMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS ARE CONDUITS FOR OPPORTUNITY
Expanding horizons
By Jane HendersonPresident and
CEO, Virginia
Community Capital
www.vabankers.org November/December 2013 | Virginia Banking 21
based initiative for healthy food support back in 2010 after a study found that 42 percent of the urban youth surveyed shop in corner stores two times a day and 53 percent surveyed visit once a day. In absence of a traditional grocery store, many residents of urban food deserts are primarily purchasing food from local corner stores which carry high-calorie, processed and unhealthy foods.
In its own backyard, VCC found one of the most severe food deserts in the country for cities of a similar size – Richmond. “Get Fresh East End!” represents a dynamic collaboration of local philanthropic, government, nonprofit, and health partners including the City of Richmond Health Department, the Bon Secours Health System, Councilwoman Cynthia Newbille, Tricycle Gardens, the Community Foundation, Neighborhood Resource Center, and Shalom Farms.
Dedicated to expanding the opportunity for fresh foods in Richmond’s East End neighborhood, “Get Fresh” is focused on three goals: increase access to fresh and local foods in corner stores, work with and educate the store owners on the business aspects of marketing and selling fresh foods, and educate the community about how to prepare and enjoy healthy foods. Progress within the first year has been noteworthy with two neighborhood stores offering fresh, local vegetables to their customers. VCC will expand the corner store program to other food deserts as part of a larger statewide effort announced this summer.
Seeded locally, the Healthy Foods project received national attention in June when VCC was recognized at the Clinton Global Initiative America (CGI America) for launching the Virginia Fresh Food Loan Fund (VFFLF), an $11 million fund dedicated to building opportunities for healthy foods in urban and rural areas across the commonwealth. VCC’s VFFLF was accepted as a CGI Commitment to Action – defined as a plan for addressing significant social and economic challenges. To date, CGI members have made more than 2,300 Commitments to Action, which have improved the lives of over 400 million people in more than 180 countries.
VCC’s Commitment addresses the unmet capital needs of healthy food enterprises throughout rural and urban regions in Virginia and will catalyze growth of Virginia's healthy foods sector. The VFFLF
combines small business technical assistance as well as lending opportunities to increase the capacity of urban corner stores to sell and market healthy items and foster the expansion and formation of food hubs primarily located in rural communities. The VFFLF introduces a new tool in building access to healthy foods as well as strengthening the overall food system throughout Virginia. As the CGI recognition has placed VCC in an international spotlight, the work we undertake in Virginia might well inform progress in communities around the world.
CDFIs are establishing important, new frontiers with national philanthropic partners. The Jessie Ball duPont Fund, one of the nation’s most respected private foundations, has embarked on a Program-Related Investment (PRI) with VCC and a CDFI in its home state of Florida. The $1.5 million impact investment with VCC will be used to enhance affordable housing opportunities and spur business growth in the Northern Neck area. As the second PRI the fund has committed, the community development and finance worlds will be watching closely.
While many national partners are joining VCC at the table, we can never overstate the importance of our local banking community to VCC/CCB. As one of Virginia’s largest CDFIs, we complement the work of community banks. CDFIs are able to blend private capital with philanthropic and government money. In doing so, we fortify communities and businesses with the intention of opening doors for our community banking partners. We may offer that small business its seed financing. Three years later with solid growth, that business may be ready to work with its local community bank.
So, when we truly consider how globalization and the internet have redefined community, CDFIs occupy an innovative and important niche. We attract national partners and investments from as large a resource as Wall Street, channeling these resources, in the case of VCC, to Virginia’s Main Street. We demonstrate ways that investment capital can positively enhance our collective experience, whether the support creates an expanded market for a manufacturing plant, increased financial protection for a sole proprietor, or healthier food options for young people in an urban setting. Every language and culture appreciates the importance of jobs, security, and home.
Jane Henderson is president and CEO of Virginia Community Capital and its subsidiary
community development bank, Community Capital Bank of Virginia. Learn more about VCC at
vacommunitycapital.org.
MoveBankers on the
KelleyBell BrandtBohanon GillGaydica CorrellWilliams
American National Bank & Trust CompanyMichelle Gaydica, Senior Vice President-
Retail Banking
Bank of VirginiaDon Andree, Executive Vice President
Benchmark Community BankAce Bohanon, Vice President/Branch
ManagerNatasha Gill, Relationship Manager
Cardinal BankKelly Bell, Senior Vice President, Retail
Banking ManagerAndy Williams, Branch Manager and
Banking Officer
Cordia Bancorp Inc.Mark Severson, Executive Vice President &
CFO
Hampton Roads Bankshares, Inc.Thomas Dix III, Executive Vice President,
CFO & TreasurerMyra Langston, SVP, Controller & Chief
Accounting Officer
MainStreet BankShares, Inc.Lisa Correll, Senior Vice President and Chief
Financial Officer
Middleburg BankLinda Perry, Senior Vice President,
Commercial Relationship Manager, Community Executive
TD BankWilliam Brandt, Jr., Vice President, Senior
Loan Officer in Commercial Real Estate Lending
Leslie Parker, Store ManagerMichael Perez, Store ManagerCameron Walker, Store Manager
Virginia Community BankDave Herold, Vice President and
Commercial LenderStacy P. Roe, Assistant Vice President and
Branch Manager
Virginia Heritage Bank Alan Drewer, Chief Real Estate Lending
Officer
Wells FargoGlen Kelley, Virginia Regional President
www.vabankers.org22 Virginia Banking | November/December 2013
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