Pub. 10 2021 Issue 2

Fair lending has been a focus of regulators for several years. Consequences of non-compliance can be devastating to a bank, as formal regulatory action can often bring significant fines, penalties, attract negative attention and potentially stall mergers and acquisitions. As the world around us continues to change, institutions that commit to performing data-driven fair lending reviews can expect to receive dividends from their efforts for years to come.

It can be tricky to separate the concepts of risk and significance when it comes to vendor management. Are they just two paths saying the same thing? Does one depend on the other? How does due diligence play into those ratings? If you have asked those questions before, or if this is your first time to see them, you have come to the right place. Let us explore this idea.

I have some good news for community bank portfolio managers who have grown weary of some or all the following conditions that have persisted since 2020:

declining portfolio returns
erratic cash flows
call option exposure
paltry yield spreads

As further evidence of our emergence from the COVID-19 pandemic, VACB sold out its 21st Annual Bankers’ Cup Golf Tournament on May 4 at Spring Creek Golf Club in Gordonsville. Over 100 bankers and associate members gathered for a day of fun and fellowship on the green. The mood was electric and jovial, as golfers were glad to be together in a relaxed post-pandemic environment. This year’s tournament was again co-sponsored by Williams Mullen, and 25 teams wasted no time getting to their spots for the shotgun start. While out on the fairway, players were well fed and hydrated, thanks to our supporting sponsors. Vining Sparks, an endorsed provider of ICBA, and the Federal Home Loan Bank of Atlanta graciously sponsored the beverage carts during the tournament, and Sentry Management provided boxed lunches. Many thanks also to Source4’s, Meg Forsberg, who volunteered to be an honorary VACB staffer for the event! (We appreciated your help, Meg!) As the Spring Creek golf pro tallied up tournament results to determine the winners, golfers enjoyed food and fellowship at the post-tournament reception and meal, generously provided by new VACB Associate Member ProcessMaker. William Mullen’s Scott Richter and VACB’s Steve Yeakel awarded team and contest prizes. The 21st Annual Bankers’ Cup tournament was a huge success once again, and we thank all our members for their support, both on and off the green! We could not do what we do without your help and support!

The payments industry is abuzz with excitement as one topic continues capturing headlines, with profound implications for community banks: Bitcoin.

Consider the valuable accomplishments of VACB bankers and associates over the last several weeks: an in-person four-hour leadership conversation; 100 VACB members enjoying the Spring Creek Golf Course and time with each other; and productive and engaging education sessions. It would be easy to take a couple of victory laps. But it’s better to use these “high points” as rich fuel for the challenges that lie ahead.

With summer just around the corner, vaccination rates rising, and restrictions easing, everyone is looking forward to life, mainly returning to the pre-pandemic normal. Interestingly, a lot of what we miss so much now we would likely have considered mundane 16 months ago. The lesson here is to enjoy life in the moment. The truth is the COVID pandemic will forever change our lives, our businesses, our industry, and our country. Community Bankers have always found ways to meet the needs of their customers and communities during previous life-altering seminal events in the past. As always, we will Improvise, Adapt and Overcome, again.