When you started your career as a community banker, did you ever believe we would be facing the issues we have today? After our world was upended three years ago by a global pandemic, little did we realize at the time just how far-reaching the effects would be on community banking and the people we serve.
This year will be another interesting one for Virginia’s community bankers. The Paycheck Protection Program’s deposit highs have transitioned into deposit pressure from increased competition, inflation, an uncertain economic situation, and the downward swing in liquidity hanging over us each day. Interwoven into those concerns are capital, loan quality, margin pressure, loan demand — and keeping good employees.
A universal wrinkle most of our community banks — and many of the commercial customers we support — did not anticipate three years ago is the challenge of attracting and retaining employees who share our commitment to customer service. The pandemic introduced the new work-from-home culture our digital age has spawned. Combined with salary pressure, finding talent interested in a career and not just a job is a major issue wherever you are located.
It is in suiting up to face these dilemmas each day that I am so appreciative of the VACB and the relationships developed with my fellow CEOs. Being able to give one of you a call when I need another set of eyes on a situation lets me — and you — know we are not in this alone. Whatever the challenge, we gather the resources to navigate them — and I find that to be of immeasurable value.
Along with member CEOs as sounding boards, your VACB Board of Directors is laser-focused on the key areas of the organization’s Strategic Plan adopted in August 2022 and addressed during our October convention in Williamsburg:
- Driving Member Value
- Increasing and Diversifying Revenue
- Developing a Long-Term Operating Plan
- Planning for Management Succession
Successfully addressing these four target areas will reinforce our efforts to fortify VACB’s overall goal of incorporating community bank advocacy and member collaboration to underscore our standing as a valuable organizational resource for community bankers throughout Virginia.
Two task forces are now at work analyzing future revenue opportunities and reviewing the Association’s educational offerings. Revenue is becoming so much more important as we face rising costs and fewer Virginia banks, so we want to ensure that our educational programs present relevant topics for your organizations. Are our education topics of value to your bankers? Please let us know.
And thanks to each of you for sending in an updated list of your key bankers’ contact information. Please be sure to keep the office updated on any changes to that list. We are counting on our member banks to keep us in touch with the right people. We want to be sure that the correct person is receiving educational material relevant to their work.
Long term, we are beginning to consider succession planning as Steve’s retirement is fast approaching. The Association’s long-term operating plan will center around addressing these areas, each of which is important in carrying us forward.
In addition to our online programs, our VACB conferences and events provide tremendous value. Spending time away from our desks and cultivating strong relationships with fellow community bankers is an all-too-often overlooked benefit. Some upcoming events you will want to put on your calendar include:
- VACB/VBA Director Symposiums — April 18–19
- ICBA Capital Summit — May 15–17
- VACB Golf Tournament — May 22
- VACB Convention in Roanoke — October 1–3
As I write this, I am personally looking forward to going to this year’s ICBA convention. I have never been to an ICBA convention, nor have I been to Hawaii. I’ve heard from several Virginia bankers planning to attend, so we will be well represented. I look forward to providing you with an update and hope to see you at a community banking event soon.
My best to each of you as we navigate another successful year at our banks. I am excited about the energy and excitement from our Board members as we tackle these issues facing our industry. I look forward to hearing from you with comments or suggestions on how we can make your association better. Thanks for your investment and support.
