Virginia Banking SEPT/OCT 2012

IN THIS ISSUE LOW-INCOME HOUSING TAX CREDITS | Q&A WITH LEADERSHIP DIVISION CHAIRMAN

September/October 2012

VIRGINIA BANKERS SCHOOL OF BANK MANAGEMENT 2012

SUMMER SESSION

ATMs changed banking transactions. The Opteva® Flex PerformanceSM Series transforms the entire branch operation.

The Diebold Opteva Flex Performance Series redefi nes what a branch can do, enabling tellers to provide higher-value services and branches to run more

effi ciently. By bringing together multiple functions—envelope-free cash and check acceptance, full recycling, cash sorting and note fi tness-checking—this new technology dramatically reduces service and personnel costs. Another innovation.

And another reason why Diebold has remained a leader for more than 150 years.

For the entire story, visit diebold.com/boldinnovation.

1.800.806.6827 diebold.com [email protected]

die7614-07_FLEX_VirginiaBanker_v01AR_20120823.indd 1 8/23/12 2:30 PM

2012-2013 OFFICERS AND DIRECTORS OF THEVIRGINIA BANKERS ASSOCIATION

Jeffrey M. Szyperski, Chairman, Chesapeake Bank

Gary R. Shook, Chairman-Elect, Middleburg Bank

William Couper, Immediate Past Chairman, Bank of America, NA

O. R. Barham, Jr., StellarOne Corporation

Christopher W. Bergstrom, Cardinal Bank

Katherine E. Busser, Capital One Financial Corporation

Tim Butturini, Wells Fargo Bank, N.A.

Larry G. Dillon, C&F Bank

Randy K. Ferrell, The Fauquier Bank

Larry A. Heaton, Franklin Community Bank, NA

T. Gaylon Layfield, III, Xenith Bankshares, Inc.

John R. Milleson, Bank of Clarke County

Susan Ralston, Bank @Lantec

John G. Stallings, SunTrust Bank

David P. Summers, Virginia Heritage Bank

Daniel G. Waetjen, BB&T

Michael O. Walker, Benchmark Community Bank

AT-LARGE MEMBERS

Benefits Corporation Chair

Richard M. Liles, Bank of McKenney

Management Services Inc. Chair

Frank Bell, III, Chesapeake Bank

Government Relations Committee Chair

Monte L. Layman, Blue Ridge Bank

VBA Education Foundation Chair

H. Watts Steger, III, Botetourt Bankshares, Inc.

EDITORIAL & EXECUTIVE OFFICES

4490 Cox Road Glen Allen, VA 23060804-643-7469 Fax 804-643-6308www.vabankers.org

Bruce T. WhitehurstPresident and CEOVirginia Bankers Association

Chandler DeweyManager, Communications/

Marketing and Financial LiteracyVirginia Bankers Association

SUBSCRIPTIONSIf you would like to subscribe to Virginia Banking, contact Chandler Dewey at [email protected]. Virginia Banking is published bi-monthly. Copyright 2012.

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

Virginia Bankers School of Bank Management 2012 Summer Session

4 Calendar of Events 5 Insights 6 Worth Noting 7 Welcome New Associate Members

8 Legislative Update 9 Washington Update 10 Legal Line14 Compliance Corner 22 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.

12

16

18

20

in every issue

Low-Income Housing Tax Credits After the CrashA look at the federal program, 25 years after its birth.

Get Smart About Credit Day October 18, 2012 Join hundreds of bankers in educating children about credit.

Q&A with VBA Leadership Division ChairmanGet to know Ward Currin.

The Warren GroupDesign / Production / [email protected]

©2012 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

September/October 2012 | Virginia Banking 3

September/October 2012

65 students graduated from the school this year.Photo courtesy of grogan photography.

INSTRUCTOR-LED SEMINARS

2012 LEADERSHIP CONFERENCE, WINTERGREEN OCTOBER 11

COMMERCIAL LENDING SCHOOL, GLEN ALLEN OCTOBER 17

2012 MASTERING HMDA SEMINAR, LYNCHBURG OCTOBER 30

2012 MORTGAGE UPDATE – B TO Z SEMINAR, LYNCHBURG OCTOBER 31

HOW TO ENSURE COMPLIANCE WITH DEPOSIT REGULATIONS SEMINAR, LYNCHBURG NOVEMBER 1

INFORMATION GOVERNANCE, GLEN ALLEN NOVEMBER 7

IMPLEMENTING THE NEW CTR AND SAR, CHARLOTTESVILLE NOVEMBER 27

IMPLEMENTING THE NEW CTR AND SAR, SANDSTON NOVEMBER 28

IMPLEMENTING THE NEW CTR AND SAR, CHESAPEAKE NOVEMBER 29

ACH PROCESSING & COMPLIANCE SEMINAR, SANDSTON DECEMBER 4

ACH PROCESSING & COMPLIANCE SEMINAR, ROANOKE DECEMBER 5

COMPLIANCE WITH FEDERAL LENDING REGULATIONS SEMINAR, SANDSTON DECEMBER 18

ONLINE SEMINARS

INTRODUCTION TO AGRICULTURAL LENDING OCTOBER 9

AIB ANALYZING FINANCIAL STATEMENTS OCTOBER 9

AIB PRINCIPLES OF BANKING OCTOBER 9

AIB LAW AND BANKING: PRINCIPLES OCTOBER 9

AIB MARKETING FINANCIAL SERVICE OCTOBER 9

AIB LAW AND BANKING: APPLICATIONS OCTOBER 15

AIB PRINCIPLES OF BANKING ACCELERATED OCTOBER 15

AIB GENERAL ACCOUNTING OCTOBER 15

AIB CONSUMER LENDING OCTOBER 22

AIB PRINCIPLES OF BANKING OCTOBER 22

AIB INTRODUCTION TO MORTGAGE LENDING OCTOBER 22

AIB ANALYZING FINANCIAL STATEMENTS NOVEMBER 5

AIB PRINCIPLES OF BANKING NOVEMBER 5

MANAGING INTEREST RATE RISK NOVEMBER 12

AIB PRINCIPLES OF BANKING ACCELERATED NOVEMBER 12

AIB MONEY AND BANKING NOVEMBER 12

AIB GENERAL ACCOUNTING NOVEMBER 12

Live Event Online Seminar Webinars

For more information go to www.vabankers.org.

Information and online registration is available at the VBA website. Please

either go to www.vabankers.org or use this form to check the box next to the

program you want information about, then fax the form to the VBA office at

804-643-6308. The VBA will send you information about the program as soon

as it is available, usually eight weeks before the program.

Name________________________________________________

Bank/Firm _____________________________________________

Address ___________________________________________________

City___________________________ State/Zip _______________

Phone _______________________________________________

Fax _______________________________________________________

Email _____________________________________________________

4 Virginia Banking | September/October 2012 www.vabankers.org

Calendar of Events

“I didn’t get here alone That road’s just too rough and long I might be the one the spotlight’s on But I didn’t get here alone”

— Kenny Chesney

Shortly after our very successful School of Bank Management Resident Ses-sion in Charlottesville this August,

my family and I had the chance to see Kenny Chesney and Tim McGraw in concert. It was a great concert and although he did not perform it that evening, I was reminded of one of my fa-vorite Kenny Chesney songs, “I Didn’t Get Here Alone.” Chesney wrote this song a few years back as a tribute to the many people who helped him along the way to superstardom. No, he was not referring to the federal government, but to his parents, his mentors in the music business and all the people who have contributed to his success.

We may not be superstars in the same sense as Kenny Chesney, but as leaders in the banking industry, we play a vital role in our communi-ties and in our economy. We also know that we didn’t become leaders alone, but rather through the support and mentorship of many who have helped us along our career paths. As a young banker, I benefitted greatly from mentors within the bank as well as from my attendance at Bank School (go class of ’90!) and my active participa-tion in the Young Bankers Section. These VBA experiences opened my eyes to the business of banking and the impact we can have working together.

That Jefferson National Bank invested in me, through internal and external training and men-torship opportunities, made me a better banker and employee at the time and also set me on a path for a great career in this great industry. As I have written before, my time at the VBA has given me the gift of numerous mentors. In addition to my predecessor, Walter Ayers, and other internal mentors, I get to learn from the best banking lead-

ers, year in and year out, as they devote time to leading the industry by way of service to the VBA.

119 years old and strong as ever, the VBA does a lot of things on behalf of and in partnership with our member banks. One of the coolest things we have the privilege of doing is to play a direct role in leadership development in several meaningful ways. We have a wealth of education and train-ing opportunities that help bankers stay current with their chosen profession and develop their leadership skills. We have numerous committees on which hundreds of bankers serve, giving the VBA invaluable feedback and bankers an out-standing peer networking opportunity. We have our Leadership Division, the reincarnation of the Young Bankers Section. With over 300 members and growing almost daily, the Leadership Divi-sion connects emerging banking leaders with each other and the VBA, providing a great net-work and leadership development opportunities as these rising stars plug in to VBA legislative grassroots and financial literacy programs. We help banks do for their employees what Jefferson National Bank did for me earlier in my career.

Please take advantage of the opportunities the VBA affords you to be actively engaged, not only on behalf of your industry, but also to enrich your own professional and leadership development. If you are one of our nearly 3,600 Bank School grad-uates, encourage others in your bank to consider pursuing this opportunity. Consider – for yourself or others – the Graduate Banking School at LSU (www.gsblsu.org), which the VBA and 14 other southeastern state bankers associations own and sponsor. Take a look at our Executive Leadership Institute. Attend or send others from your bank to our first Leadership Conference Oct. 11-12 at Wintergreen. Go to www.vabankers.org for infor-mation on these and other upcoming VBA events.

The older I get, the more I realize how much I have yet to learn. But I do know this, without a doubt: I didn’t get here alone and my future success will continue to depend on guidance and mentorship from others. To that end, I look for-ward to seeing you – and learning from you - at a VBA event soon.

Bruce Whitehurst can be reached by email at [email protected].

Bruce Whitehurst

President and CEO,

Virginia Bankers Association

Developing Future Leaders

September/October 2012 | Virginia Banking 5 www.vabankers.org

Insights


VBA SAFETY GROUP RETURNS DIVIDENDS

The VBA Safety Group Dividend Pro-gram returned dividends of $183,977 to participating banks from the 2010 program year. This program is a joint effort with VBA Management Services, Inc. and Zu-rich North America Financial Enterprises (formerly the Fidelity & Deposit Compa-nies). The goal of the VBA Safety Group Dividend Program is to provide banks the opportunity to reduce their overall insur-ance costs.

Pictured here is John Bowers, VBA di-rector of member services, presenting Rick Wheeler, chairman, president and CEO of Franklin Federal Savings Bank, with his safety check. Since its inception in 1997, the program has returned dividends total-ing $3.94 million to participating Virginia member banks. A dividend has been paid for 12 out of the 14 years the program has been in existence.

KIM SNYDER GRADUATES FROM THE ABA STONIER GRADUATE SCHOOL OF BANKING

Kimberly B. Snyder, execu-tive vice presi-dent and CFO of Valley Financial Corporation and its subsidiary Val-ley Bank, recently graduated from the ABA Stonier Graduate School of Banking held at the University of Pennsylvania.

She will also sit on the Stonier Advisory Board. Congrat-ulations, Kim!

NotingWorth

VBA BANKPAC AND ABA BANKPAC PARTNER FOR SUCCESS

In July, the VBA stepped up with a $110,000 contribution to ABA BankPAC, which closely coordinates all political giving in Virginia with the VBA. Thank you to all VBA member banks who support BankPAC at the federal and state levels.

Kim Snyder

the voice of your industry

* vba leadership conference * oct. 11-12 * w

intergreen resort

Agenda and registration information available at www.vabankers.org.

It’s not too late to register! Sign up today!


CONSULTING & TRAINING, INVESTMENT & TRUST SERVICESPERFORMANCE TRUST CAPITAL PARTNERS, LLC

500 W. Madison, Suite 450Chicago, IL 60657Phone: (312) 521-1465Fax: (312) 521-1565

Website: www.performancetrust.comCONTACT: RYAN TILLERY VICE PRESIDENTEmail: [email protected]

For over 17 years, Performance Trust Capital Partners, LLC has been dedicated to developing and teaching analytics and strategy for disciplined, responsible portfolio management in the fixed-income marketplace.

CREDIT & LENDING RESOURCES, FUNDING & CAPITAL SOURCESU.S. SMALL BUSINESS ADMINISTRATION

400 N. 8th Street, Suite 1150Richmond, VA 23219Phone: (804) 771-2400Fax: (804) 771-2764

Website: www.sba.gov/vaCONTACT: JAYNE E. ARMSTRONG, DISTRICT DIRECTOREmail: [email protected]

Since its founding in 1953, the U.S. Small Business Administration has delivered millions of loans, loan guarantees, contracts, counseling sessions and other forms of assistance to small businesses. SBA provides assistance primarily through its four programmatic functions: capital, counseling, contracting, and advocacy.

IT CONSULTING & SERVICESVISITECH ENTERPRISES INC.

500 Montgomery Street, Suite 400Alexandria, VA 22314Phone: (703) 535-6640Fax: (703) 535-5884

Website: www.visitech.comCONTACT: CHRISTOPHER CHADBOURNE, PRESIDENTEmail: [email protected]

For over 17 years VisiTech has worked with clients to describe, specify and select the information technology that drives their businesses. Please inquire about VisiTech’s cost-effective network, software, connectivity and data flow diagramming/reporting services; or their help developing audit-ready documentation supporting major IT initiatives.

Welcome New Associate Members

Fonts » Times (Regular), Gotham (Book, Bold)

Images » DSC_0045C_cmyk.psd (CMYK; 341 ppi; 70.36%), UMB SIG BP 3C CMYK_M.eps

(47.21%, 48.49%), Visa logo.ai (71.53%)

Inks » 4C Cyan, Magenta, Yellow, Black

UMB_1444_Ad_VABanking_V3.indd R

JobClient

Media Type

BleedTrimLive

Publication

Creative DirectorDesigner

Account ManagerStudio Artist

Print ProductionProofreader

UMB 1444UMB

CS5

None7.25” x 4.75”6.75” x 4.25”

None

NoneNoneAllison PinkowskiLexie FiserShelley SchulenburgNone

Notes » None

JOB INFO FONTS & IMAGESAPPROVAL & NOTES

SAVED 2-20-2012 4:23 PM | BY Lexie Fiser | PREVIOUSLY BY Sandy Henehan | FILES SENT VIA Email » Contact Blair Vance · (816) 423-6096 · [email protected] ROUND

UMB Card Services is the preferred premier bankcard provider of the Virginia Banker’s Association, offering credit cards at a competitive cost with less hassle.

Better correspondent

banking is within your

reach. Grab it.

Energize your business

with UMB Correspondent

Banking Services. We

have the knowledge and

resources to keep you

competitive with easy

access to the services

you need to grow.

To learn more, visit

umb.com/services or

call 866.885.5609.

S:6.75”

S:4.25”

T:7.25”

T:4.75”

B:7.25”

B:4.75”


The Importance of the Struggle

Like millions across the globe, I watched in wonder the many events of the London Olympics. While I will undoubtedly not

watch another minute of competitive archery, fenc-ing or synchronized diving for another four years, I enjoy viewing these less followed sports. Often, I find myself drawn into an event more for the person-al stories of the participants than any understanding of their specific sport.

These Olympic games were no different. Whether it was South African sprinter Oscar Pistorius over-coming the loss of both his legs at a young age or the women athletes from countries where they are treat-ed as second-class citizens, there are always great stories of athletes overcoming the odds to achieve their dreams.

The Olympic creed states, “the most important thing in the Olympic Games is not to win but to take part, just as the most important thing in life is not the triumph but the struggle. The essential thing is not to have conquered but to have fought well.” While far more athletes return home without medals than with, all should take pride in their accomplishments and their perseverance in their pursuit. It never ceases to amaze me that individuals put in countless hours of training and effort to compete at the high-est level in events that sometimes last mere seconds.

That creed has application in nearly every aspect of life, including, I believe, the advocacy of our in-dustry. Make no mistake, I prefer winning to the alternative and that is the goal to which we continu-ally strive in our legislative and regulatory efforts. However, just as the Olympic competitors trained rigorously for their race or match in order to be best prepared to prevail, so too must we make the efforts necessary to obtain the results we desire. We may not always achieve the changes we advocate for or con-vince decision-makers of the superiority of our argu-ments, but if we truly want to achieve those goals, we must continue to try, no matter the obstacles.

I recently had the opportunity to join Johnny Milleson and others at Bank of Clarke County for a visit with Rep. Frank Wolf at the bank. The bankers were able to tell the congressman about the bank and the customers and communities they serve. We also

discussed the important legislative and regulatory issues our industry is facing. When we got to the is-sue of credit union business lending, Wolf – who has declined to sign on as a co-sponsor of the bill to ex-pand their business lending – noted that a group of credit union members had recently visited him. That should serve as a reminder that there are those out there pursuing their goals that run counter to ours, making it that much more imperative that we con-tinue our efforts.

Milleson and his bank understood the importance of being proactive in our outreach by inviting the congressman to visit. Hundreds of bankers across Virginia have made the effort to attend Banker Day and legislative meetings, email their representatives or send comment letters to regulators. All of those activities are part of the important struggle each of us must assiduously participate in order to achieve advocacy success.

We hope you take part in any of our upcoming leg-islative events. Our meetings thus far with members of Congress and the General Assembly have gone well and produced a good dialogue between bankers and our elected officials. Be on the lookout for events in your area and save the date for Banker Day in Richmond on Thursday, January 10, and our VBA/ABA Government Relations Summit on April 15-17.

We hope you send comment letters to the regula-tors on any of the proposed rules that will impact your daily operations. The VBA is working on sev-eral and values your input as we respond to the concerns raised in the thousands of pages of draft regulations.

We hope you consider inviting your congressmen and women and state legislators to your bank. These are great opportunities for you to tell your bank’s story to your local elected leaders. The VBA is happy to help coordinate these visits.

Working together, it need not be a struggle, but a collective dedication to accomplishing what is best for your institution and our industry as a whole. Like the Olympians, there will be obstacles that need to be overcome and the outcome uncertain, but it is impor-tant that we fight and fight well.

Matt BruningDirector of

Government Relations,

Virginia Bankers Association

UpdateLegislative

Matt Bruning can be reached by email at [email protected].


Relationship Management

One thing I often hear is how banking is a relationship business. You strive to get to know your customers, understand

their needs and provide them with solutions.These relationships, with proper care and nur-

turing, can be managed and grown. With your help and expertise, a small manufacturer today might become a regional force tomorrow. That’s not just good for the manufacturer and your bank. It’s also good for your community.

These customer relationship management, or CRM, principles apply equally to lawmakers, who have proven their ability to impact your bank’s bottom line. Relationships with your elected rep-resentatives must be grown and nurtured. This is the heart of grassroots political advocacy, and it requires patience and perseverance. Helping bankers succeed at it is one of the primary goals of our revamped Banker Advocacy and Grassroots Committee.

We announced this new committee at our re-cent Summer Leadership Meeting in Chicago. The

committee’s co-chairs for the new association year – which begins with the ABA Annual Convention in October – are Bill Hayes, president and CEO of Kishacoquillas Valley National Bank, Reedsville, Penn., and Max Cook, president and CEO of the Missouri Bankers Association.

Having a state association executive co-chair the committee reflects the importance of state-based and local advocacy efforts in achieving our

industry’s policy goals. The rest of the committee will be composed of politically active bankers in each state. Together, they will plan advocacy and grassroots strategies for the new 113th Congress that will convene next January.

Our new committee – with banker representa-tion from all 50 states – builds on what ABA and bankers already do very well while recogniz-ing that we need to do more. We are very good at quickly mobilizing and communicating with members of Congress on the issues.

Now it’s time to take it to the next level. We want bankers who are already involved to devel-op deeper relationships with their representatives and senators, and their staffs in Washington and back home. That means talking to and meeting with lawmakers in between votes, asking about their needs, not just ours. We also want to encour-age novice banker advocates to take the first step in establishing a connection with their elected leaders.

To help on both fronts, ABA is producing a series of brief videos on building effective rela-tionships with members of Congress. The series – which includes not just “how to’s” but also “why to’s” – walks viewers through advocacy es-sentials, beginning with why bankers should get involved in grassroots advocacy and how to set up a successful bank visit. Additional videos will be added over the next several months, so please be on the lookout for them.

Never underestimate your power as a constitu-ent. You have a great story to tell about what your bank is doing for its customers, communities and local economies. And by providing first-hand ac-counts of your work and its challenges – not the least of which is a hefty stack of compliance di-rectives – you are enabling your lawmaker to cast informed votes on issues that affect you.

Learn more and view our new grass-roots advocacy training videos at aba.com/ grassrootstraining.

Frank Keating President and CEO,

American Bankers Association

UpdateWashington

Gov. Frank Keating can be reached by email at [email protected].

We want bankers who are already involved

to develop deeper relationships with their

representatives, senators, and their staffs.

”

“

The Virginia Supreme Court alarmed many mortgage lenders recently when it required a face-to-face meeting between

a lender and borrower before the lender could foreclose on real estate securing a Federal Hous-ing Authority (FHA) loan. In Mathews v. PHH Mortgage Corp., the court considered whether a defaulting borrower could enforce U.S. Depart-ment of Housing and Urban Development (HUD) foreclosure regulations referenced in, but not ex-pressly incorporated into, a deed of trust securing a FHA loan.

The court’s opinion begins with an in-depth review of what constitutes a material breach of a deed of trust. Refusing to accept the lender’s argument that an event of nonpayment should bar the borrower from enforcing other condi-tions precedent to foreclosure, the court instead took the view that a deed of trust allows a non-paying borrower to enforce the full provisions of the deed of trust, despite the payment default on the related note. The court emphasized that the deed of trust outlines many restrictions on how a lender may proceed with foreclosure after the borrower has defaulted on the note. Those restric-tions provided sufficient evidence for the court to hold that the lender and the borrower contractu-ally agreed that an event of nonpayment does not constitute a material breach of the deed of trust.

Because the deed of trust referenced certain HUD regulations, the court found that those reg-ulations were part of the contractual terms of the deed of trust. The lender argued that the reference to HUD regulations:• was ambiguous because it was a general refer-

ence and could potentially incorporate a wide variety of regulations

• did not expressly incorporate those regula-tions into the terms of the contract

• was an agreement between the lender and HUD, not between the lender and borrower.

The court dismissed these arguments, finding that because the deed of trust’s foreclosure pro-vision referenced HUD foreclosure regulations,

it was clear that the parties intended to incorpo-rate all of the HUD foreclosure regulations into the deed of trust, including the face-to-face meet-ing requirement; a reference to the HUD regula-tions was sufficient to incorporate them into the deed of trust; and the plain language of the deed of trust indicated it was a contract between the lender and borrower.

The lender further argued that HUD had in-terpreted its own regulations to mean that a face-to-face meeting was only required if the lender operates a “servicing office” within 200 miles of the borrower’s residence. Because the lending in-dustry often relies on HUD’s interpretations, the lender argued that the court should give defer-ence to HUD’s guidance. The express language of the rule, however, states that the lender must perform a face-to-face meeting prior to foreclo-sure when the lender operates a “branch office” within 200 miles of the borrower’s residence. The court dismissed HUD’s guidance, holding that an agency may not redefine an unambiguous term such as “branch office” simply by issuing guid-ance to interpret “branch office” to mean “servic-ing office.” The court held that all lenders with a “branch office” within 200 miles of the borrower’s residence must conduct a face-to-face meeting with the borrower, but the lender’s loan servicing professionals may attend such meeting either in person or by teleconference.

In addition to confirming the face-to-face meet-ing foreclosure requirement in FHA mortgage loans, the Virginia Supreme Court’s Mathews de-cision provides several important lessons for Vir-ginia mortgage lenders. First, a payment default on a note will not bar a borrower from enforcing conditions precedent to a foreclosure sale in the related deed of trust. Second, if a deed of trust or other contract makes any mention of a regulatory agency’s rules and regulations, courts may deem those regulations to be incorporated by reference into the terms of the contract. And, third, courts may not always defer to an agency’s interpre-tive guidance when interpreting the agency’s regulations.


Supreme Court Enforces Pre-Foreclosure Face-to-Face Meeting Requirement

LineLegal

Mel Tull General Counsel, Virginia Bankers

Association

Mel Tull can be reached by email at [email protected].

Our Focus is on Your SuccessAs a cooperative, FHLBank Atlanta is keenly focused on helping our shareholder banks succeed. We do this by being a reliable resource of sound counsel and low-cost, customizable funding products many institutions cannot get anywhere else. Working in partnership with our shareholders, we help make homeownership affordable, local communities thrive, and the U.S. financial system stronger. To learn more about the value we can offer your institution, visit our website or call us today.

www.fhlbatl.com 1.800.536.9650 Ext. 8011

The Virginia Bankers School of Bank Management is suc-cessful because of the quality of the instructors who teach there, making the school one of the best in the nation. This year’s faculty members include: Thomas S. Bateman, McIn-tire School of Commerce at the University of Virginia; Richard S. Coughlan, Ph. D., Robins School of Business at the Univer-sity of Richmond; Mark M. Faircloth, Faircloth Performance Partners; Lynn Hamilton, McIntire School of Commerce at the University of Virginia; Gary F. Higgins, Bank of America;

Jeffrey S. Kane, retired from the Federal Reserve Bank of Rich-mond; Angela M. Robinson, Igniting-Success, Inc.; Kerry S. Sauley, Ph. D., Louisiana State University; Jimmy Sawyers, Sawyers & Jacobs LLC; Edmond J. Seifried, Ph. D., Seifried & Brew; Stephen P. Theobald, Hampton Road Bankshares; and Bruce Whitehurst, Virginia Bankers Association.

The classes taught, including new additions like Orienta-tion/Communications, Presentation Skills, Retail Banking/Marketing, and Leadership, all tie into the curriculum, which

VIRGINIA BANKERS SCHOOL OF BANK MANAGEMENT 2012

SUMMER SESSION

65 students graduated from the school this year.Photo courtesy of grogan photography.


This summer 199 Virginia bankers from across the commonwealth met at the Darden Graduate School of Business at the University of Virginia in Charlottesville for the Virginia Bankers School of Bank Management. The university, with its wide respect in the national business community and beautiful grounds designed by Thomas Jefferson, provided the ideal setting for this learning experience. The location, combined with a top-notch faculty, a group of excellent fellows, and fun social and community involvement events sprinkled throughout the week, made for a perfect Bank School Summer Session.


is designed to provide students with specific skills in the functional areas of banking, an understanding of how com-mercial and savings banks fit within the financial services in-dustry, sales and business development strategies, the ability to solve problems, work in teams and make decisions in a managerial setting, and exposure to the increasingly complex and important areas of banking law and regulations.

In addition to the required classes that students attend during their three, one week, summer sessions, bank school

students must complete eight home study problems – four after each of the first two years. The typical assignment re-quires research and the preparation of a paper based on the research. The home study problems reinforce many of the concepts learned during the on-campus sessions and give participants a heavy dose of hands-on analysis of real-world banking situations. The school also requires participation in a bank executive simulation, which this year was done entirely

The third year class had a bowling tournament to benefit the Wound-ed Warriors Program. The class was so successful with their efforts that they raised $13,589.55!

Third Year Class Officers, from left: Chip Jones, Union First Market Bank; Sharon Martin, Old Point National Bank; and Jason McDonough, Cardinal Bank.

Second Year Class Officers, from left: Russel Marsh, Virginia Commerce Bank; Diane Smith, Fulton Bank; Bobby Gutierrez, Virginia Commerce Bank; and Andrew Stone, TowneBank.

First Year Class Officers, from left: Kelly Johnson, Old Point National Bank; William Rothwell, Sandy Spring Bank; Marie Brooks, Cardinal Bank; and Melinda Williams, Old Point National Bank.

Continues on page 19


Even though the Dodd-Frank created Con-sumer Financial Protection Bureau has direct oversight responsibility only for banks with

assets of $10 billion or more, the CFPB’s “Supervision and Examination Manual” has become the new regula-tory guide for examiners from every banking agency.

The reason: A memorandum of understanding (MOU) signed by the federal banking regulatory agen-cies in May that commits each to work with the others in supervising financial institutions. The impact is likely to be seen first in CMS programs.

For banks in Virginia, and elsewhere, the MOU means that your bank’s compliance management sys-tem, or CMS, must measure up to the CFPB’s standards.

Rules and responsibilities matter. As a practical mat-ter, here is a summary of what your bank’s CMS must achieve:• The board is responsible and makes necessary re-

sources available.• Management oversees day-to-day implementation,

holds staff responsible.• The compliance committee establishes systems,

processes, disclosures and the like.• The compliance officer/manager/director pro-

vides expertise and management of the CMS.

It is nearly impossible to over-emphasize the impor-tance of top-level CMS support. If directors and senior bank management fail to clearly demonstrate both indi-vidual and collective commitments to compliance, the CMS program starts at a significant disadvantage.

The commitment, by the way, must include an effec-tive allocation of resources – i.e., staffing, training and technology.

The CMS also must incorporate employee responsi-bilities – and performance. As a practical matter, that means written policies and procedures and supervised day-to-day practices become the standard against which employees operate.

Consequently, specific job descriptions must incorpo-rate compliance-related responsibilities against which

performance can be evaluated. Each employee must understand and comply with the rules within their job function.

In fact, each employee’s understanding of her, or his, compliance requirements and performance becomes a factor in salary, bonuses, and, if necessary, disciplinary action.

At the same time, VBA members must assure that compliance training is adequate – and documented for the examiners – and that any corrective action is taken quickly and effectively.

COMPREHENSIVE PROGRAM

Your bank’s formal CMS program establishes the in-frastructure upon which specific compliance elements are built. Building the program includes:• Comprehensive, written policies and procedures.• A risk-based compliance training process that is

fully documented.• Effective, risk-based monitoring of key processes,

to provide early detection of problems.• A comprehensive, formal, written, annual risk as-

sessment.• Testing, driven by risk assessments, monitoring

and independent review testing.• A process to manage compliance changes.• Vendor management process that includes the ven-

dor’s liability insurance.

Once thought of as an add-on to many CMS pro-grams, expectations and public perception of the impor-tance of the complaints process have been significantly raised by the CFPB: Not only must banks establish processes to respond to written (including email) com-plaints, verbal complaints should also be addressed.

All complaints must be carefully tracked and ana-lyzed to identify inconsistencies, and potential UDAAP and Fair Lending implications. Compliance profession-als also should track complaints for other purposes – indications of poor customer service or weaknesses in staff training, for example.

By Wylli FooteDirector of Visiting

Compliance Management

Services, Thomas

Compliance Associates, Inc.

CornerCompliance

New Regulatory Focus Increases CMS ImportanceSupport from Board, Top Management Becomes Critical as CFPB Sets CMS Program Standards

VBA members seeking information about their bank’s CMS program structure, or assistance with bringing their CMS programs up to expected standards, should call TCA’s Wylli Foote, a certified regulatory compliance manager and member of the TCA senior management team. The toll-free number is 800-934-7347. TCA is the VBA’s endorsed provider of compliance consulting and support.


INDEPENDENT REVIEW

Whether the process is called a “re-view” or “audit” at your bank, there are key aspects that need to be part of the Independent Review process. All of the following aspects need to be part of the component to be acceptable.

Sufficient independence. Different lev-els of independence are acceptable. Some banks view “independence” as complete-ly external to the bank, without any previ-ously-gained knowledge of the activities that are the subject of the review. Others hold a view that independence is solely a factor of whether or not the reviewer was involved in any aspect of the activity.

Regardless of the level of independence deemed acceptable by the bank (and the regulatory agency), the board should un-derstand and accept the “independence” determination.

Sufficient expertise. Compliance ex-pertise goes far beyond completing a checklist. Unless the reviewer has appro-priate expertise for the activities being reviewed, the results may be unreliable and the conclusions uncertain. Whether the reviewer is internal to the bank or a trusted external provider, their expertise needs to be understood and accepted by the board.

Reporting. The results of the indepen-dent review should go to the board (or designate). The written report should identify the scope, detail the findings, and be supported by clear, complete work papers. The reviewer should present find-ings to the board.

Review scope Reviews should cover applicable and appropriate rules with a risk-based focus. The importance of care-ful scoping comes into play during the pre-review stages, although care must be taken to make certain the reviewer is not inappropriately influenced during the scoping process.

Review structure. Reviews should be structured as appropriate for the bank’s size and complexity. The review should consider the uniqueness of the bank, its activities, its product mix, its delivery channels and other risk factors.

Timely reporting. The reviewer should provide timely, accurate reporting to the

supervisor/manager of the area covered and the compliance officer to permit veri-fication of the accuracy of findings prior to delivery of the formal report to the board.

Corrective action. Following verifi-cation of the accuracy of review find-ings, the root cause of each issue should be identified. A corrective action plan

should be developed and implemented. Following correction of the root cause, the specific issue identified should be resolved.

The work isn’t finished at this point, however: Once the root cause and issue have been fixed, the corrective action should be validated to ensure that the is-sue has been fully resolved.

It’s only a sampling, but look what’s in the compliance services package TCA provides VBA member banks:

• Hands-on help, with scheduled on-site audits.• Timely, accurate information about compliance issues and trends.• Advice about how to meet federal compliance requirements.• An e-newsletter heads-up when the rules change.• Access to the TCA compliance professionals, the people who make TCA the

most respected source of compliance information and assistance in banking.

Whether your need is BSA/AML, IT vulnerability scans and web site security reviews, or training that keeps your staff — and directors — up-to-date, TCA is your Compliance Advantage.

Call us . . . today . . . to learn more. 1-800-934 -7347.

Thomas Compliance Associates, Inc.2846 N. Mildred Avenue, Suite 150Chicago, Illinois 606571-800-934-7347

www.tcaregs.com

With the stroke of a pen in 1986, President Ronald Reagan authorized the creation of the Low-Income Housing Tax Credit

(LIHTC) program that was part of the Tax Reform Act of 1986. Reagan believed that private sector account-ability was necessary in most areas of society and he hoped that it would make multi-family rental hous-ing for lower income people successful in the long run. LIHTCs are used by the housing developer to bring in investors who provide an equity investment in the housing development. Today, the LIHTC pro-gram is the largest federal housing program and, by far, the most successful in terms of production and quality of rental units. A considerable number of VBA member banks have invested in LIHTCs and are real-izing the benefits of their investment.

Over the 25-year history of the LIHTC program, many studies have documented the success of the program. The most recent was published in August 2011 by the Reznick Group, entitled “The Low-In-come Housing Tax Credit Program at 25: A Current

Look at its Performance.”1 This article summarizes the study’s description of the program’s success, as measured by median physical occupancy, median hard debt ratio and median per unit cash flow. “Medi-an” implies that 50 percent of the sample is above the median and 50 percent is below. The Reznick Group reviewed these three measures of success over the three year period of 2008 to 2010. Using the Reznick data, this article seeks to compare the Reznick conclu-sions with the portfolio of LIHTC funds of the Vir-ginia Community Development Corporation.

INTRODUCTION TO LOW-INCOME HOUSING TAX CREDITS

On its surface, the LIHTC program appears to be simple. Investor(s) make an equity investment to own part or all of a multi-family rental housing de-velopment for low and moderate income people and families. Low and moderate income is defined as households with incomes at or below 60 percent of the area median income. In exchange for its equity in-

Low-Income Housing Tax Credits After the Crash


By Dan TatarVice President of

Equity Investments,Virginia

Community Development Corporation

Jan

uar

y

4 ~ N

oon-2pm ~ Richmon

d, V

A

The Virginia Bankers Association and the Virginia Chamber of Commerce Present:

January 4, 2013Noon-2PMRichmond Convention Center

For more information on the event please contact:

Save the DateSponsorship

Opportunities Available

Contact Rann Paynter,

VBA Executive Vice President,

at [email protected].

2013 Financial Forecast

Courtney FlemingVirginia Bankers Association Vice President, Education & Training/[email protected]

Karen SurmacewiczVirginia Chamber of Commerce Director of [email protected]

vestment, the investor receives two forms of return:• 10-year flow of federal tax credits,

which are a dollar for dollar reduction in the investor’s federal tax liability (profit and loss statement impact); and

• annual passive losses from the project, such as depreciation and interest ex-pense (income statement impact).

Under the LIHTC program, a properly structured multi-family rental housing development should return to the inves-tors a competitive after-tax market rate of return. This requires that the housing be rented to income-qualified people and be economically feasible for a 15-year com-pliance period (tax credit flow is acceler-ated for the first 10 years, but the develop-ment must remain in compliance with IRS regulations for 15 years). Investor return is not related to property value appreciation, but instead to flow of housing tax credits and passive losses. Thus, a key risk in in-vesting in LIHTC development lies in the 15-year compliance period.

In essence, investors have two ap-proaches to investing in LIHTC-financed rental housing.2 One approach is to direct-ly invest in a LIHTC development whose developer has obtained an allocation of LIHTC from an awarding state housing finance agency. As a direct investor, the investor will own the housing and as-sume the 15-year compliance burden. The second approach is to invest indirectly through a managed fund that takes on the responsibility for the entire compliance burden on behalf of the fund’s investors. With this second approach, it is advisable to invest in a LIHTC fund with a proven track record of experienced management of compliance and real estate risk.

2011 REZNICK STUDY

Many studies have documented the success of the LIHTC program, both for investors and communities needing qual-ity affordable housing. The significance of the 2011 Reznick study is that it docu-ments the success of the LIHTC program in the three years immediately following the nation’s economic turmoil that began in 2007.

PORTFOLIO PERFORMANCE – 2008, 2009, AND 2010

The Reznick study collected data from

over 32 currently active LIHTC syndicators and investors. The sample included over 14,700 properties, with 1,049,723 units that will be used as the statistical sample for data below. This data was collected for the calendar years of 2008, 2009 and 2010.

Reznick – Study 2008 2009 2010

Median physical occupancy 96.4% 96.3% 96.6%

Median hard debt coverage ratio 1.15 1.19 1.24

Median per unity cash flow $246 $335 $412

Over the same calendar years, VCDC’s investment portfolio revealed the following results for those same performance measures:

VCDC – Portfolio 2008 2009 2010

Median physical occupancy 97.6% 96.5% 97.1%

Median hard debt coverage ratio 1.36 1.43 1.40

Median per unit cash flow $578 $519 $604

The physical occupancy measure measured the percentage of units that provide a full year of rent payments. Generally, the underwriting of LIHTC properties assumes a 7 per-cent vacancy rate or an economic occupancy of 93 percent. The vacancy rate assumes the periodic turnover of apartment units, or the non-collection of rent. The debt coverage ratio (DRC) measures the relationship between the net income and debt service. Having a DCR lower than 1 implies a potential problem of nonpayment for the mortgage. Per unit cash flow is net operating income less required reserves and debt payments divided by the number of apartment units.

1. Reznick Group is a top 20 national CPA firm. Its Tax Credit Investment Services group is a dedicated business unit within Reznick Group and is the author of the August 2011 study.

2. Various different models of direct and indirect investments are possible, but the majority of investments are made in one of the two ways discussed.


Join the Virginia Bankers Association at our annual Banker Day at the State

Capitol on January 10, 2013.

As banks face difficult economic and political challenges, this is an opportunity to voice your views in person. You will have the

chance to share success stories and concerns with your state legislators.

Don’t miss this chance to meet your delegation and let your voice be heard!

VBA BANKER DAYJANUARY 10, 2013

Contact Bobbi Weimer at 804.819.4725 or [email protected] for more

information.

The Get Smart About Credit program is a nation-wide cam-paign to demonstrate the pro-

found impact of financial literacy educa-tion by banks in their communities. The official target date is Oct. 18, but all re-lated financial literacy efforts conducted in the fall will count toward the program. Get Smart About Credit is sponsored by the Virginia Bankers Association and the American Bankers Association Edu-cation Foundation and is eligible to all banks, both members and non-members. To participate in this year’s Get Smart About Credit program: (1) schedule credit-focused financial literacy outreach during the month of October, (2) assem-ble financial literacy resources and (3) register with the Virginia Bankers Asso-ciation at www.vabankers.org (under the Financial Literacy tab).

Please be sure to keep the VBA up to date on your efforts, so that we can pub-lish your stories in Virginia Banking, on-line through our Facebook page, and in our other publications.

For more information, please contact Chandler Dewey at the VBA at 804-819-4707 or [email protected].

Oct 18: Get Smart About Credit Day

Jason Caskey, CPAFinancial Services Practice Chair

Not all of a bank’s assets are found on its balance sheet.

More than 100 banks in the Southeast, large and small, depend on

Elliott Davis for personal attention, industry experience and services,

including external and internal audit, SEC reporting, taxation and

compliance. Our financial services practice is 90 professionals strong,

with a 60-year reputation for helping banks operate stronger, wiser,

better. Let us know how we can be an asset to you.

3900 Westerre Parkway • Richmond, VA 23233 • www.elliottdavis.com©

201

2 El

liott

Dav

is P

LLC

© 2

012

Ellio

tt D

avis

PLL

C

Resourceful.Responsive.Reliable.

Celebrating 25 Years as Your Strategic Partner, Never Your Competitor

www.CBBonline.com 804.239.0452


online by the students in teams. This phase of the school allows third year students the opportunity to make deci-sions acting as senior officers of a bank. Working in teams, students make oper-ating, lending and pricing decisions for eight fiscal quarters that influence bank profitability and bank stock prices. As in the real world, good decisions lead to improved profits and higher stock prices and bad decisions generate re-duced earnings and reduced stock prices. A group of eight fellows are on staff to lead and assist the students with the bank executive program. They are: Frank Bell, Chesapeake Bank; Don-ald S. Buckless, Old Point National Bank; J. Peter Clements, The Bank of Southside Virginia; AJ Duke, Federal Reserve Bank of Richmond; Gregory D. Frederick, Middleburg Bank; Jeffrey S. Kane, retired from the Federal Reserve Bank of Richmond; Edmond J. Seifried, Ph. D., Seifried & Brew; and H. Watts Steger, III, Botetourt Bankshares, Inc.

By the time the summer sessions are completed, students have developed a range of skills that will enhance current performance and qualify them as can-didates for advancement.

Since the students work very hard and are in class all day, it is important to also allow them the opportunity to have a little fun and make connec-tions that will last throughout their entire banking careers. Throughout the week, several socials and mixers were held, which allowed the students to get to know each other outside of the classroom. Additionally, the third year class organized a bowling tournament to benefit the Wounded Warriors Pro-gram. The event raised $13,589.55 for the program, which is quite an accom-plishment!

On August 3, 65 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, ex-aminations, home study problems and completion of any other assignments. The accomplishment is slightly bitter-sweet as many of them began to look forward to attending Bank School ev-ery summer.

Each year, the VBA recognizes the student in the third year class with the highest GPA. This year, the Honor Graduate was M. Robin Honnick, Vir-ginia Commerce Bank, who had a GPA of 99.1! We would also like to congratu-late all the students who graduated this year and want to make special men-tion of the top 10 percent of the class of 2012: Brandon D. Atkins, American National Bank & Trust Co.; Laura E. Jones, Virginia Commerce Bank; Jason R. McDonough, Cardinal Bank; Garret R. Reed, Virginia Commerce Bank; Wil-liam S. Via, American National Bank & Trust Co.; and Sun Hee Waite, Virginia Commerce Bank.

Congratulations, graduates!

Continued from page 13


educate your core audience

Increase your company’s exposure by reaching 100,000 banking professionals across the Northeast and Mid-Atlantic in one magazine for one low price! Editorial focus on new products and technologies.

Distribution of 25,000 in over 900 different banks

across seven states, including all member bank Ceos.

expanD your Coverage toDay!editorial submissions welcome.

2013

Call to reserve your spaCe toDay!617.896.5344 or email [email protected].


The Virginia Bankers Association created the Leadership Division in 2009 to ensure a continuum of lead-

ership for the future of Virginia banking. The VBA Leadership Division has grown to over 260 members and has three objectives: to improve the financial literacy of Virginia’s youth to create sustainable and responsible money management skills; to positively in-fluence the legislative landscape in support of value added industry initiatives; and to foster and develop the unique leadership abilities of Division members through men-torship programs, board involvement and community outreach.

Take a minute to get to know our new VBA Leadership Division Chairman, Ward Currin!

Ward, please tell us a little about yourself. I live in Kilmarnock with my wife, Tucker,

and my daughter, Madden (2 years old). I am originally from Roanoke, and then moved to Richmond after graduating from Radford University. I worked for three years as a manager of a financial firm in Rich-mond before starting with Bank of Lancaster in Kilmarnock in 2005, running their loan resolution department. I moved into retail in 2007 and have been a branch manager since then. I am also the government rela-tions coordinator for the bank, making sure everyone is up to date on the current legis-lative landscape affecting our industry. If I ever find any spare time, I am always up for a round of golf.

How long have you been involved with the VBA Leadership Division?

I became involved with the Leadership Division in 2009, my first year at the Virginia Bankers School of Bank Management. Soon

Q&A with VBA Leadership Division Chairman

VBA BENEFITS CORPORATION

VBA BENFITS CORPORATION

Providing competitive benefits for your employees has never been so easy. Our all-inclusive, cost-effective plans are developed by bankers for bankers and include:

Full-time partnership with a professional consulting firm, legal counsel, and audit firm•

State-of-the-art on-line enrollment and billing systems•

Representation and program management through a Board of Directors, •comprised of peer banks

Toll-free member services number to address benefit needs and inquiries•

Consolidated monthly billing for all benefit programs•

Preparation of plan documents and IRS filings, as well as assistance with •filings required of individual banks

Training services, staff meetings, regional seminars and users conference •

Administration of Flexible Spending Accounts and COBRA continuation•

VBA Benefits Corporation4490 Cox Road

Glen Allen, VA 23060(800) 643.5599

Visit our website at www.vabankers.org


after, I joined the steering committee and was the Capital Region director for the past year.

What are some of your favorite experiences from being involved in the VBA Leader-ship Division?

Some of the best experiences from the Leadership Division involve two things for me. First is participating in the Get Smart About Credit campaign and being able to help lay the foundation for the next genera-tion of students as they begin facing finan-cial decisions that will affect the rest of their lives. The second experience that comes to mind is the overall feeling of becoming more familiar with Virginia bankers. When I went to my first Banker Day in Richmond, I remember being overwhelmed with how many people were there and only know-ing two or three of them. It feels very good to now go to a VBA function and know so many people because I met them through Leadership Division events.

As the new chairman of the VBA Leader-

ship Division, are there any specific goals you would like achieve?

I would like to continue our momentum and see the Leadership Division keep grow-ing. I want to see it become something that people want to be a part of the minute they come into our industry. Right now, we are still somewhat in the “recruiting” phase, where we are actively seeking new mem-bers. When the day comes that Leadership Division is so big and beneficial it is one of the first things people request to join, that will be an excellent achievement.

What advice do you have for anyone who wants to get involved with the VBA Lead-ership Division?

I would say ask around your bank and get involved. The Leadership Division is something that is for anyone interested in furthering their banking career. Please don’t feel intimidated or feel that you should have some specific prerequisite to join. All it takes is some interest and enthusiasm. If you don’t have anyone at your bank who you can talk to, or you need some help defining the ben-

efits of Leadership Division to your supervi-sor or even yourself, get in touch with me, and I will be more than happy to assist.

If you are interested in joining the Divi-sion, think about coming to our first ever Leadership Division Conference. It will take place October 11-12 at Wintergreen Resort, and we have an excellent agenda planned, with speakers on topics such as the role of an emerging banking leader in Virginia; an economic update; the role of the CFPB; nego-tiating success in your banking career; inter-active networking; emerging bank technol-ogy; and social media. Contact Anna Clay at [email protected] for more information or to register.

Anything else you would like your fellow bankers to know?

Just want to remind everyone to take an active role in furthering their careers, be-cause if you don’t make the effort, no one else will.

Ward Currin can be reached at wcurrin@

banklanc.com.

GlenLake One · 4140 ParkLake Ave, Suite 530 · Raleigh, NC 27612 · 919-846-1601 · www.CreditRiskMgt.com

Your Underwriting Partner...Innovative · Dynamic · Effective

· Capture critical data points for portfolio management

· Integrate underwriting with your credit policy

· Track and report underwriting exceptions

· Chronicle loan approvals in a database

· Preserve judgment-based lending

Customized Credit Underwriting Software Developed by Bankers for Bankers

CRM Credit Leader v2.0

Blending Credit Talent & Technology to Serve Over 200 Community Banks Since 1989

Contact Credit Risk Management today for an online demonstration

MoveBankers on the

BettiusDevlin WorthyEstep Lane McDonough Thompson Rowe Corno

Access National Bank Meg Taylor, Senior Vice President and CFO

Bank of the James Michael Syrek, Executive Vice President and

Senior Loan Officer

C&F BankKatie Devlin, Assistant Vice President,

e-Commerce Manager

Cardinal BankAlex J. Bettius, Assistant Vice President,

Real Estate Loan OfficerJames Estep, Vice President, Commercial LendingRobert Lane, Vice President, Commercial Loan

OfficerJason R. McDonough, Assistant Vice President,

Real Estate Loan Officer

Central Virginia BankMelanie R. Keene, Vice President and

Controller of Finance


M. Delores Nabors, Assistant Vice President and BSA/AML Officer

Michelle H. Simon, Vice President and Sales and Marketing Manager

Theresa A. Trimmer, Assistant Vice President and Deposit Services Manager

Highlands Union Bank Amy Mellinger, Assistant Vice President and Branch

ManagerLeisa Thompson, Assistant Vice President and

Branch Manager

Middleburg BankMarie Doe, Senior Vice President of Credit Marybeth Muir, Senior Vice President of Process

ImprovementJim Maki, Senior Vice President and Commercial

Relationship Manager

StellarOne BankGary Rowe, Reverse Mortgage Program Manager

SunTrust BankWilliam Carter, Vice President, Community

Development ManagerDebra R. Pollock, Vice President, Private Wealth

Management DivisionTodd Connor, Vice President and At Work

Business Development Officer

TD BankChris Corno, Assistant Vice President,

Store ManagerMark H. Worthy, Vice President, Middle Market

Relationship Manager

Valley Bank Andrew B. Aggee, Executive Vice President,

Chief Lending OfficerMary P. (Gill) Hundley, Executive Vice President,

Chief Risk Officer Edward C. Martin, Executive Vice President,

Chief Credit OfficerConnie W. Stanley, Executive Vice President,

Chief of Retail BankingKevin S. Meade, Executive Vice President,

Chief Operating Officer

Virginia Commerce BankLadonna L. “Donna” Coley, Assistant Vice

President, Branch Manager

Virginia Commonwealth BankC. Rodes Boyd, Executive Vice President/

Chief Banking OfficerBrad Hildebrandt, Senior Vice President/

Commercial Banker James A. Motley, Senior Vice President/

Chief Credit Officer John G. Dane, Vice President/Commercial

Loan Officer Shauna L. Robertson, Vice President of Retail

Branch Operations Adam M. Jante, Commercial Loan Officer Jill R. Thomas, Human Resource Officer Tanja Brown, Branch Manager Kristina Nieves, Branch Manager Stephanie Stables, Branch Manager

Union First Market BanksharesRobert M. Gorman, Executive Vice President and

Chief Financial Officer

Xenith BankHilary Blanchard, Senior Credit AdministratorBrad Nott, Senior Vice President and Commercial

and Industrial Banking

A L O S T A R B A N K . C O M

MEMBER FD IC

Stacy Brantley

SVP, Morris Bank

Dublin, GA

A L O S T A R B A N K . C O M

Here’s what can happen when a bank has the right tools for the job.

Warner Robins Supply Company, a 65-year-old building materials retailer in Georgia, sought to position the company for strategic growth, but needed capital. Dublin, Georgia-based Morris Bank knew that with AloStar Bank by their side, capital was a tool they had in the tool box. At AloStar, we say we strengthen the banks and build the businesses that grow America. In the case of Morris Bank and Warner Robins Supply, we did both. It simply came down to having the right tools for the job.

Meet more bus inesses A loSta r i s g rowing th rough the i r 10-week cha l l enge a t

10 DEALS IN 10 WEEKS.COM

8 6 6 . 2 1 9 . 9 0 3 5

ASTR_10CampCorrAd_WarrenGroup_8.125x10.625.indd 1 8/29/12 3:25 PM

#1 Dixon Hughes Goodman Financial Institution Services Group

20+ Banking Partners

125+ Banking Professionals

150+ Bank Clients

We have come to expect Dixon Hughes Goodman’s significant technical proficiency, but we truly value their understanding and responsiveness in navigating the complexities and challenges of today’s banking industry.

—John M. Mendez, President & CEO, First Community Bancshares, Inc.

““

CPAs and Advisors throughout the Southern U.S.www.dhgllp.com/banking | [email protected] | 877.999.9343

Documents

Virginia Banking SEPT/OCT 2012