November 2020

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

Past VBA Chairman John Stallings passed away November 2, 2020, after battling cancer since 2018. John, former president of what is now Atlantic Union Bank and a SunTrust Bank regional executive, will be remembered for his contributions to our industry and his community. John served as 2016-2017 VBA Chairman and also on the board of the VBA Education Foundation, where he was instrumental in the recent partnership between the Foundation and the Virginia Foundation of Independent Colleges and Realworld.

VBA President & CEO Bruce Whitehurst remembers John as a Virginia banking leader who leaves behind a legacy of integrity and genuineness. “John loved to see his teams thrive and succeed. But at the same time, he was the most congenial competitor. John was extremely well-liked and highly regarded and respected by his peers all across Virginia."

John made time to volunteer with numerous community organizations, including United Way, the Greater Richmond YMCA and Venture Richmond, as well as serving on the boards of Virginia Foundation for Independent Colleges, Collegiate School, the Virginia Chamber and the Science Museum of Virginia Foundation. “John was always doing something for a worthy cause. He was an incredible community leader. When he got on a nonprofit board, he was going to make a contribution without a doubt,” said Whitehurst.

In 2018, John was honored with a Humanitarian Award from the Virginia Center for Inclusive Communities, recognizing his commitment "to promote respect and understanding among people of diverse racial, ethnic and religious backgrounds." And, in 2020, John was honored with a Living Legend Award by  Virginia Business magazine.

You can read more about John’s legacy here and his full obituary here. We keep his family in our thoughts and prayers during this difficult time.

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Bankers On The Move & Recent Promotions

Old Point National Bank
Pinkaj Klokkenga – Senior Vice President, Information Technology

Pinnacle Financial Partners
Cindy Forren – Senior Vice President, Financial Advisor

Southern Community Bank
Matt Paciocco – Executive Vice President, Market President

Taylor Bank
Doreen Angelo – Assistant Vice President, Branch Manager/Relationship Officer

Virginia Community Capital
Meredith Smith – Senior Credit Officer

Delta Dental of Virginia
Computer Services Inc
Industry News & Trends
Over the last two years, the largest financial institutions in the U.S. marketplace have made significant investments in their mobile applications centered around improving the client experience. This fast pace has banks contemplating how they can compete in this mobile "arms race" and what unique value smaller institutions can bring to the table. (Gonzo Banker)
A silver lining to the cloud of the COVID-19 crisis is that it provides an opportunity for banks to rethink executive compensation in ways that focus management’s efforts on moving beyond survival mode to how the bank can flourish once the crisis is over. Incentive plans—if managed properly—can be a powerful tool for the bank to drive individual, department and bank-wide performance. (ABA Banking Journal)
From VBA Partners
Challenged by having excess liquidity and fewer loan opportunities, financial institutions need to utilize all available tools to be competitive and determine how best to meet their customers’ needs while also managing their own rate risk in this historically low-rate environment. Here, VBA Associate Member Chatham Financial explores three proven interest rate hedging strategies that can be used to help both parties meet their objectives.
In our current era of litigation and government oversight (at the state AND federal levels), it is more important than ever that every financial institution have a consistent and uniform record retention policy that is accessible and easy to understand by all appropriate employees. Here, VBA Endorsed Provider Shred-It shares best practices for document retention.
With the new strain that COVID-19 is placing on banks, there is a greater impetus placed on creating safe environments that have the ability to provide social distancing within bank branches. Here, James Caliendo of VBA Endorsed Provider PWCampbell shares strategies that banks can use to optimize their retail locations.
Like our country, the U.S. banking system is also resilient. Regardless of the ups and downs of economic cycles and the effects they elicit, our banking system has always, in the end, remained a source of financial strength. In this article, Past VBA Chairman Gary Shook of Community Bankers’ Bank takes a look at how bankers in the Fifth Federal Reserve District are processing the moving parts and pieces that 2020 has handed us thus far.
The COVID-19 pandemic is having a significant — and evolving—impact on the nation’s banks. Financial institutions are being forced to react in real-time while trying to maintain a high level of best practices and resourcefulness to ensure they continue to operate effectively for their employees, customers, members and other stakeholders. According to this report from VBA Associate Member SafeSystems, as the pandemic persists, banks are learning important lessons—and more insights will follow—as they grapple with how to address the present situation and successfully plan for an uncertain future.
The formal study of risk management has been around since World War II and involves learning how to identify, assess and manage financial risks for an organization. In this article, VBA Endorsed Provider Compliance Alliance discusses how the concept of risk began to cover pure risk management, technological risk management models, and operational risk. And as the identification of new risks emerged, so did an expanded concept of operational risk.