Pub. 5 2016 Issue 4

The CommunityBanker 8 T he historic election of 2016 is now behind us, and despite all the uncertainty that lies ahead, there seems to be reason for optimism that regulatory relief is far closer, even for com- munity banks, than it was just a fewmonths ago. It can’t come soon enough. We’re being attacked on all fronts. Within the last year, the credit unions’ “regulator,” the NCUA, has voted twice to unilaterally expand the credit union franchise far beyond what Congress has authorized. In March, they created the opportunity for credit unions to exceed limits on commercial lending established by Congress. Then, in October, they expanded field of member- ship rules to allow quadrupling of caps (yep, quadrupling) in two significant ways. The definition of “rural district” was expanded from 250,000 people to 1 million, and the cap on a “well-defined local community” was expanded from 2.5 million people to 10 million. Wow. Could you even imagine your regulator as that kind of a cheerleader and advocate for you? On another front, our reputation took another broad hit in the wake of the Wells Fargo fiasco. How can that grand a breach of ethics be so widespread? You have told me on several occasions that this is not just a Wells Fargo problem, it is a mega-bank problem. When relationship banking gives way to “metrics on steroids,” this is a logical result. When regulatory focus is overloaded on community banks and insufficient for mega-banks, we should not be surprised at awful revelations like this one. Fortunately for you, we are deeply engaging in these battles. I was visiting Capitol Hill on September 13 as the Wells story broke. I was honored to be present in person with several key Senate and Congressional staffers to underscore what they already knew: we are not Wells Fargo. We continue to push for major regulatory relief in the lame duck session, despite the fact that the Wells mess has dampened Congressional enthusiasm on that front. It is good that leaders in financial services from our Virginia Congressional Delegation know and value the distinction. We’re working harder than ever to be engaged with them. We are also in total support of ICBA’s decision to sue the NCUA over their unlawful commercial lend- ing rule. VACB has donated $1,000 to the ICBA Credit Union Litigation Fund and is actively working to collect information about the impact of unfair credit union com- petition in Virginia communities. As I write this, a final decision has not been announced regarding legal action on the NCUA membership rules, but many are hoping that the issue will be amended into the original filing, or that a separate suit would be filed. The challenges are great, but you are more than worth the fight, and we cherish the opportunity to fight for you. I’m hopeful that 2017 will see more of you engaged in community bank advocacy in Washington, DC, which will yield success for us in gaining regulatory relief. Here’s to a great year ahead. President’s Message By Steve Yeakel, CAE VACB President & CEO Here’s to a Great Year Ahead! M E S S A G E Steve had the privilege of meeting The Hon. Robert Scott, who represents Virginia’s 3rd Congressional District, on November 16. Thanks to the support of VACB bankers for ICBPAC, a small delegation was invited to attend an event at Congressman Bob Goodlatte’s home on October Lyn Hayth, Bank of Botetourt; Carly Fiorina, GOP Presidential candidate; Brian Plum, Blue Ridge Bank; Steve Yeakel, VACB; Congressman Goodlatte.