Virginia Banking July eNewsletter

The Virginia Banking eNewsletter is a monthly supplement to Virginia Banking magazine, intended to help you stay on top of industry knowledge via current trends data and insights.

From the VBA

A recent report found that credit unions are falling short of their mission to serve households of “small means.” In fact, according to the research by respected analyst Karen Shaw Petrou, credit union members are disproportionately from middle- and upper-income households, and credit unions’ lack of “mission compliance” deepens U.S. economic inequality.

The report from Petrou’s firm, Federal Financial Analytics, found that the National Credit Union Administration maintains no data on credit unions’ effectiveness at providing financial services to people of “small means,” and that its definition of “low-income” is far more expansive than that used by other federal agencies. As a result, she found, designated low-income credit unions simply replace community bank credit instead of providing new credit.

The report also found that credit unions evade the Federal Credit Union Act’s mandate to provide credit for “provident or productive purposes” by making risky and even “predatory” loans—including subprime auto loans and, notoriously, taxi medallion loans that resulted in several credit union failures and saddled vulnerable borrowers with massive debts. The report recommends renewed policymaker and public attention to the credit union mission and effective enforcement to ensure that it is meaningfully and materially achieved.

Policymakers are being strongly encouraged to read this report so they can judge for themselves if today’s credit union industry is meeting the mission Congress intended, and whether the NCUA is providing the regulatory oversight consumers deserve.

Read the report. Read the Federal Financial Analytics news release.

Read the latest Washington Update below, from ABA President and CEO Rob Nichols, who reframes the credit union debate.

Bankers On The Move & Recent Promotions

Bank of Botetourt
Laurie Hart – Senior Vice President, Chief Strategic & Retail Officer

Benchmark Community Bank
Susan Jenkins – Vice President, Branch Manager
Bonnie Marshall – Loan Operations Manager
Holly McFarland – Vice President, Regional Manager
Cynthia Parrish – Relationship Banker
Darlene Roberts – Assistant Vice President, Help Desk Manager
Kristen Sadler – Relationship Banker
Sherry Shriver – Assistant Branch Manager

Capital Bank, N.A.
Tom Ciolkosz – Senior Vice President, Commercial Lending

Community Bankers’ Bank
Thomas J. Bourque – Senior Vice President and Chief Lending Officer

Essex Bank
Gail Letts – Board of Directors

Old Point National Bank
John Beahm – Branch Officer
Andy Orleans – Mortgage Loan Originator
Amber Rice – Vice President, Small Business Relationship Manager

Pioneer Bank
Lang Smith – Vice President, Senior Commercial Loan Officer

Powell Valley National Bank
Melody Lovell – Assistant Vice President, Senior Loan Administrator

Skyline National Bank
Anthony Edwards – Vice President, Credit Administration

Shane Stevens – Executive Vice President, Director of Treasury and Merchant Services

Computer Services Inc
Industry News & Trends
Despite predictions that brick-and-mortar banks will become a thing of the past, banks across Virginia are thriving. Consumers value the electronic platforms offered by their banks, but local branches have much more to offer. (The News & Advance)
In 1903, the year that Virginian Maggie Walker founded St. Luke’s Bank in Richmond, it would have surprised a lot of men to see a woman spending time in the main lobby of a bank as a customer—let alone as a bank executive. (Scalawag Magazine)
In the most recent American Bankers Association Washington Update, ABA President and CEO Rob Nichols discusses ABA's deliberate efforts in the past two years to raise the level of awareness about credit union policy issues and excesses among third parties and the media. (ABA)
The Federal Reserve Bank of New York’s Center for Microeconomic Data released the June 2019 Survey of Consumer Expectations, in which respondents were generally more upbeat about their financial situation and about the labor market, with expectations about the U.S. unemployment rate, finding a job, and losing one’s job all improving. (New York Fed)
When is the last time you saw a bank ad that made you laugh out loud? Chances are, you have to search your memory pretty hard — and you still might not come up with anything. Do banking ads have to be so solemn, even as other industries are harnessing the power of humor? (ABA Bank Marketing)
Financial marketers must reject the popular notion that all millennials want fancy financial tech and would rather use a chatbot than talk to a person. As millennials age, it turns out they want much of the same advice other generations did, they're just better prepared for the conversation. (The Financial Brand)
From VBA Partners
As banks look to modernize and expand their operations centers with the latest technology and customer experience enhancements, VBA Endorsed Provider PWCampbell explains why careful thought should also be given to office space, including furniture, as well as the overall work environment.
Long-awaited Regulation CC will be effective July 1, 2020. In July 2020, the Regulation CC dollar thresholds will adjust every five years based on changes to the Consumer Price Index (CPI) similar to current annual changes in Regulations M and Z, rounded to the nearest $25. VBA Endorsed Provider TCA explains what banks need to know about the updated regulations.