Pub. 6 2017 Issue 3

C O N T E N T S © 2017 Virginia Association of Community Banks |The newsLINKGroup, LLC. All rights reserved. The Community Banker is published four times each year byThe newsLINKGroup, LLC for the Virginia Association of Community Banks and is the official publication for this association. The information contained in this publication is intended to provide general information for review and consideration. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your specific circumstances.The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the Virginia Association of Community Banks, its board of directors, or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or serviced advertised. The Community Banker is a collective work and as such some articles are submitted by authors that are independent of the Virginia Association of Community Banks. While The Community Banker encourages a first print policy, in cases where this is notpossible,everyefforthasbeenmadetocomplywithanyknownreprintguidelinesorrestrictions.Contentmaynotbereproducedorreprintedwithoutpriorwrittenpermission.Forfurther information,pleasecontactthepublisherat:855-747-4003. 6 16 20 12 VACB EXECUTIVE COMMITTEE CHAIRMAN Alice Frazier President & CEO Bank of Charles Town Charles Town CHAIRMAN-ELECT G. Lyn Hayth, III President & CEO Bank of Botetourt Buchanan VICE CHAIRMAN Brian K. Plum President & CEO Blue Ridge Bank Luray PRESIDENT & CEO Steven C. Yeakel, CAE President & CEO VACB Richmond IMMEDIATE PAST CHAIRMAN Michael A. Ewing Vice Chairman & CEO Oak View National Bank Warrenton ICBA VIRGINIA DELEGATE Jeff W. Dick CEO & Chairman of the Board MainStreet Bank Fairfax VACB DIRECTORS SERVICES COMMITTEE CHAIR Richard Liles Bank of McKenney McKenney CLASS OF 2017 Dennis A. Dysart First Bank Strasburg 2017 J. Allan Funk Skyline National Bank Independence 2017 Mark C. Hanna EVB Newport News 2017 A. Preston Moore, Jr. Virginia Community Bank Louisa 2017 Howard F. Pisons Community Bankers’ Bank Midlothian CLASS OF 2018 Randal R. Greene Bank of Lancaster Kilmarnock 2018 Lloyd B. Harrison Virginia Partners Bank Fredericksburg CLASS OF 2019 Dabney T. P. Gilliam, Jr. The Bank of Charlotte County Phenix 2019 J. Michael Thomas Select Bank Forest VACB STAFF Katharine C. Garner, CMP Vice President Education & Communications Kelli C. Mallinger Director Member Services 6 Chairman’s Message 8 President’s Message 10 Changing Market Dynamics’ Effect on Banks’ Balance Sheets 12 The World Needs Your HERO 16 CECL Myths and Realities: What the New Accounting Standard Means for Community Banks 18 BSA/AML Model Validation: How to Know If Your Model is Producing Garbage or Gold 20 Should You Be Anti Anti-Virus? ?