The simple goal of any mission-driven, member-centric organization should be to do what you say you do. For the Virginia Association of Community Banks, this means delivering “undiluted advocacy, targeted education, and quality collaboration to advance Virginia’s community banks.”
VACB’s mission statement is succinct. It follows the “Rule of Threes,” a principle suggesting that items presented in threes are more effective, memorable, and satisfying to an audience than other numbers. Certainly advocacy, education, and collaboration are some hallmarks of exceptional nonprofit organizations.
But VACB’s current mission statement poses some unresolved questions. Towards which stakeholders should VACB’s educational offerings be targeted? With which entities should VACB seek to collaborate? These are important queries that will be answered by the organization’s volunteer leaders in the coming weeks and months. We will ask these questions of you at our upcoming VACB Member Roundtables across the Commonwealth this spring (stay tuned to your emails and the new Community Bank Leader e-newsletter for details).
Less ambiguous is the phrase “undiluted advocacy.” It means providing a strong voice for the unique concerns of community banks before policymakers at all levels of government. During the 2025 session of the Virginia General Assembly, VACB took a more active approach. By design and with intention, this amplification of our state advocacy efforts was a charge given by your Board of Directors upon my hire last September.
As I shared during VACB’s 2024 Annual Convention, Virginia’s banking community was already blessed with two exceptional advocates in the Virginia Bankers Association: Bruce Whitehurst and Matt Bruning. Both were very gracious before and during session, sharing the knowledge necessary to successfully navigate through my initial foray into the complex world of banking policy. I was proud that VACB could better complement their many successful efforts this year.
In reconnecting with state legislators under a new hat, I took an opportunity to gauge their perception of Virginia’s community banks. Your brand is incredibly strong in Richmond. The community bank experience that electees and appointees shared throughout session was genuine and overwhelmingly positive. Some were familiar with VACB. Others were pleased to learn that there was a voice dedicated exclusively to community banking.
That brand perception played interestingly during two key legislative debates. First, Sen. Glen Sturtevant and Del. Tom Garrett introduced “debanking” legislation that aimed to restrict account closures based on political or religious affiliation. Supposedly aimed at large institutions, these bills may have created significant regulatory conflicts and potential liabilities for all Virginia banks.
In Tennessee, where a similar debanking law was enacted last year, the legislature added an exemption for smaller banks. Though both Virginia debanking bills ultimately failed, the trajectory of the issue here and in other states raises a question: Could Virginia’s community banks have secured a similar exemption if the bills had gained traction?
Next, Sen. Lamont Bagby introduced legislation addressing usurious online lending. While it was clear that loans made by Virginia banks were not subject to the legislation, the fintech lenders launched a misleading media and grassroots campaign in opposition to the measure. At protectborrowerchoice.com, you will find the following grassroots messaging:
“Community banks and credit unions, when partnered with FinTech companies, provide credit to people who need something other than traditional loans. Partnerships help banks reach new markets and get more people into the banking system. They expand access, and this bill is trying to limit access.”
Fintech partnerships undoubtedly play a vital role in the efficiency and competitiveness of community banks. But this mischaracterization of those partnerships tried to leverage our sector’s positive reputation to advance someone else’s political agenda. As of press time, SB1252 passed and is headed toward Gov. Youngkin’s desk for his signature, amendment, or veto.
These examples clearly underscore the need for VACB to deliver on its promise of undiluted advocacy. While complimenting the outstanding work of partners at the federal and state levels, VACB must grow its ability to stand up and make a difference for you right here in Virginia. That is why the Board of Directors adopted a budget that dedicates annual fundraising activities to the enhancement of our advocacy function.
Additionally, VACB must examine future opportunities to undertake proactive advocacy initiatives that support entrepreneurship in local communities. Reforming Virginia’s broken economic development apparatus and/or adopting a state-level SAFE Banking Act becomes increasingly possible with greater focus, effort, and improved resource allocation.
The first and foremost consideration in public policy for community banks is to “do no harm.” But the promise of undiluted advocacy is that it can also open doors. So perhaps we can do some good too.
