1. Virginia Bankers Association Solutions Through Unified Effort

2. About the VBA Founded: 1893 Headquartered: Glen Allen, VA Staff: 27
Mission: Enhance banks’ ability to serve their customers and communities.
Vision: To be the best state bankers association in the country.
Chairman: Bill Hayter, President & CEO/Director, First Bank & Trust Company

3. Guiding Principles Industry Unity Strong Advocacy Meaningful Solutions
Proactive Posture
Unparalleled Relationships
Financial Strength & Revenue Diversification

4. VBA Organizational Chart

5. Industry and Association Situation Scan
Challenges for 2017 and Beyond
Ongoing consolidation
Lack of new bank formations
Maintaining scale to sustain VBA programs
Ensuring value for members

6. VBA Membership 2005 2010 2015 2017 YTD Banks and Savings Institutions
156
141
115
104
Associate Members
184
210
199
Financial Services Members
N/A 17 16

7. VBA Entities Fiscal Year 2016 Revenues Consolidated Revenue $8
VBA Entities Fiscal Year 2016 Revenues Consolidated Revenue $8.1 Million
Virginia Bankers Association:
$1.1 Million
Advocacy; Communications
VBA Education Foundation:
$111,000
VBA BankPAC:
$432,000
VBA Benefits Corporation:
$3.2 Million
Health and Welfare Plans; Retirement Plans
VBA Management Services, Inc.:
$3.4 Million
Education & Training; Products & Services; Management Services
VBA Properties:
$322,000
Owner of VBA Office Building

8. May 2016 - May 2017 Consolidated Revenues
41.2%
40.1%
26.6%
25.3%
14.3%
15.3%
13.1%
14.3%
3.8%
4.2%
1.0%
0.8%

9. 2017 Budget VBA Consolidated Revenues

10. May 2016 - May 2017 Consolidated Expenses
52.1%
52.3%
12.9%
13.2%
13.1%
11.7%
11.0%
11.3%
5.9%
6.4%
5.1%
5.2%
3.7%
3.7%
1.8%
1.4%

11. VBA Consolidated History

12. VBA Revenues vs. Member Banks 2016

13. Revenue Per FTE 2016

14. Revenue Per Bank Member by State Banking Association 2016

15. Unrestricted Net Assets 2012-2016*
*Decrease in 2014 due to increase in pension liability

16. Directors & Officers Liability Insurance
Insurance Carrier: Zurich (A+ Superior AM Best rating)
Policy Term: January 1, 2017 to January 1, 2020
Coverage Section
Limit of Insurance
Management Liability
$5,000,000
$50,000 retention
Professional Liability
Trust E&O Liability
Employment Practices Liability
(including 3rd Party EPLI)
$3,000,000
$15,000 retention
Fiduciary Liability
3-Year Prepaid Premium
$47,739
Cyber and Privacy Insurance (Beazley Breach Response)
$4,100 Annual Premium

17. VBA Risk Management Committee Overview
VBA’s identified areas of greatest risk: Financial, HR, Legal & Regulatory, Security & Technology & Third Party Vendor Risks. Committee members represent each of these areas of expertise within the Association.
Committee meets semi-annually to ensure the comprehensive risk assessment is updated on an annual basis and potential gaps are addressed with internal monitoring activities:
Risks identified and rated
Mitigating controls in place
Residual risk rating
Identify emerging risks and assess appropriate responses
Report to VBA Board on an annual basis

18. The VBA Community A Member-Driven Organization of Banking Professionals
21-member board of directors, representing banks from across the state; 6 member executive committee
Bankers serving on MSI, Benefits and Education Foundation boards
16 functional committees – 283 bankers were invited to participate in the committee structure for
Various peer groups and roundtables

19. VBA Board *Executive Committee Chairman WILLIAM H. HAYTER*
MICHAEL W. CLARKE
DANIEL G. WAETJEN
President & CEO/Director
President, CEO & Director
Group President
First Bank & Trust Company
Access National Bank
BB&T
Chairman-Elect
DABNEY T. P. GILLIAM, JR.
ROBERT WOJCIECHOWICZ
SCOTT C. HARVARD*
Executive Vice President
Chief Executive Officer
The Bank of Charlotte County
Capital One Financial Corporation
First Bank, Strasburg
JEFFREY V. HALEY*
Chairman-VBA Benefits Corporation
Immediate Past Chairman
BARRY C. ELSWICK
JOHN G. STALLINGS*
American National Bank & Trust
President and CEO
President
TruPoint Bank
Union Bank & Trust
LETON L. HARDING, JR.*
CEO
Chairman-VBA Management Services, Inc.
RICHARD M. ADAMS, JR.
Powell Valley National Bank
AUBREY H. HALL, III
United Bankshares Inc.
CHARLES R. HENDERSON, JR.
First National Bank
SVP, ESG Program Manager, Market President
JOHN C. ASBURY
Bank of America, NA
Chairman-VBA Education Foundation
President & CEO
JEFFREY M. SZYPERSKI
Union Bankshares Corporation
BRAD E. SCHWARTZ
Chairman, President & CEO
SEVP & Chief Operating Officer
Chesapeake Bank
CHRISTOPHER W. BERGSTROM
TowneBank
President - Virginia
Chairman-VBA Government Relations Committee
United Bank
JOE A. SHEARIN
GARY R. SHOOK
RAVI CHANDRA
Sonabank
Middleburg Bank, a Div of Access National Bank
Region President   
Wells Fargo Bank, N.A.
SUSAN K. STILL
HomeTown Bank

20. VBA Every Day: Key Association Areas
Government Relations
Communications
Education & Training
Emerging Bank Leaders
Financial Literacy
Products & Services
VBA Benefits Corp.

21. Operational Efficiencies Provided by VBA Membership
Time
We Provide Talent Recruitment Options through the VBA Career Center and the upcoming VBA Internship Program
We Speak on Your Behalf as the Voice of the Industry to media and legislators through in-person visits with both audiences
Money
We Negotiate Discounts on Products and Services through our MSI Endorsed Provider Program
We Provide Cost Savings on Employee Benefits Plans through the VBA Benefits Corp.
Employee Resources
We Provide Career Growth Opportunities for Rising Stars through the Emerging Bank Leaders group
We Provide Leadership Development for all bank employees at all levels through access to quality programming and nationally recognized speakers and trainers

22. Government Relations
Direct voice to Virginia’s U.S. congressional delegation and the Virginia General Assembly
Direct voice to state and federal regulators
Legislation:
The VBA works through its committee structure and the board of directors to set legislative and public policy objectives. VBA staff then implements the objectives by drafting legislation, arranging sponsors, counseling legislators, testifying before committees and generating grassroots banker contact with legislators.
Tracked more than 100 bills in 2017 Virginia General Assembly Session
General Counsel Report summarizes legislation of interest to the banking industry passed during the previous session of the Virginia General Assembly and signed into law by the Governor
Advocacy Events – Connecting bankers with legislators:
Banker Day – January in Richmond
VBA/ABA Government Relations Summit – spring in DC; DC Regulatory Visits
State and federal legislative meetings – throughout the year across the state
Regulation:
VBA monitors regulations to keep members up-to-date on proposals. VBA staff also provides regulators with input and guidance, while helping banks develop programs to assist with compliance requirements.
VBA BankPAC:
Bank employees participate in the political process by contributing to BankPAC. In state and congressional races, this program then contributes to candidates who help foster the free enterprise system.

23. BankPAC Income and Expense 2015-2016

24. VBA PAC Contributions 2007-July 2017

25. Communications
Managed 270 media requests for interviews since 2010 on topics such as cybersecurity, regulatory relief, credit union taxation, the banking industry landscape and the financial literacy efforts of Virginia banks.
Community, banker, business group presentations about banking
Delivers eight different magazines and newsletters to keep you up-to-date on the VBA and the banking industry.
Weekly Legislative Bulletin during the General Assembly about important legislation
Bi-weekly Executive Brief
Bi-monthly magazine - Virginia Banking
Bi-monthly VBA Emerging Bank Leaders newsletter
Weekly cybersecurity newsletter
Financial literacy newsletter – The Kit
Monthly Regulatory Bulletin
For Your Benefit newsletter from the VBA Benefits Corporation

26. Communications: Social Media
Like Our Facebook Page: Virginia Bankers Association
The VBA’s Facebook page highlights Virginia bankers’ involvement in your communities. Also, encourage your rising stars to join our Emerging Bank Leaders group on Facebook.
Follow Us On
Want to promptly receive the latest industry followers receive General Assembly session updates, the latest on legislation impacting the industry, regulatory deadlines and more. Follow
Follow Our Instagram
The VBA takes photos of our events year-round and uploads them to our Instagram account. Download the Instagram app for free on your iPhone or Android and search Once you become a follower, you can check out the latest happenings at the VBA and share your own photos with us!
Follow Us On LinkedIn
Follow our VBA LinkedIn page for the latest professional articles on our industry, as well as connect with other Virginia bankers. Are you a graduate of the Virginia Bankers School of Bank Management? Join our LinkedIn alumni group to stay in touch with classmates.

27. Education & Training Overview
The VBA’s seminars, conferences and leadership programs are designed to challenge the thinking of the participants and to leave them reflecting on what they have learned, sharing the knowledge with their coworkers upon their return to the bank, and applying the concepts to new initiatives and projects, all in an effort to do something new and innovative.

28. Education & Training Continuum

29. Education & Training New Initiatives
Management Development Program:
Designed for entry level bankers who have developed a passion for banking, want to enhance their knowledge of the business of banking, and who are motivated to excel in their career and reach their full potential.
VBA Internship Pilot Program:
Brand-new, from-scratch internship program for college students, which serves as a wrap-around for banks’ current intern programs or as a starting point for banks that would like to begin a program. This year’s pilot program included mentor orientation and intern orientation days. Throughout the summer, interns completed departmental rotations at their bank, took a class on the banking industry, worked on a capstone project on the topic of fintech, participated in their bank’s community service activities and received a certificate of completion at the end of the summer. The VBA also created and distributed many templates and tools for participating members, with the idea of making it as simple as possible to host interns, as well as make it a positive experience for both banks and interns.
and Coming Soon!
The VBAConnect Conference will combine our current Retail Banking & Marketing Conference with our HR & Training Conference for a larger, more robust event with a track for each functional area, exciting general sessions and a larger exhibit hall. Similarly, we will combine the current Operations & Technology Conference, Security Risk Workshop, Enterprise Risk Management Workshop and our Advanced Compliance Session into one event called VBAProtect. Coming in 2018!

30. Education & Training 2017 Calendar

31. The Emerging Bank Leaders (EBL) is a group that connects 470 members, mostly young bankers, to develop, connect and engage them in the future of the banking industry. EBL members are also involved in VBA government relations efforts, financial literacy programs, and networking events. There is no registration fee and there are no age or participation requirements.
Objectives:
DEVELOP. As an emerging bank leader, I develop my professional skills in order to grow and progress within my career in the banking industry.
CONNECT. As an emerging bank leader, I connect with other bank professionals from across Virginia.
ENGAGE. As an emerging bank leader, I engage with the industry and other bankers.
Leadership Conference:
The Leadership Conference gives emerging bank leaders the opportunity to share ideas with their peers, gain valuable career insight from bank CEOs and learn from industry speakers. It will take place October this year in Staunton.

32. Financial Literacy & the VBA Education Foundation
The VBA Education Foundation (VBAEF) supports a number of financial literacy initiatives and organizations across the Commonwealth, including:
Get Smart About Credit Day: This event allows bankers to enter the classroom to teach the fundamentals of money management, the meaning of good credit and credit scores, and the importance of saving to high school and college students.
Teach Children to Save Day: This event occurs every April when bankers make presentations to students in grades K-12 about budgeting, saving, recognizing needs and wants and how interest makes money grow.
Virginia Bankers Association Bank Day Scholarship Program: The VBAEF awards a total of $26,000 in college scholarships through this program.
Virginia Council on Economic Education (VCEE)
EverFi
Virtual Virginia
Jump$tart
Junior Achievement
*The VBA created the Financial Literacy Toolkit with your needs in mind. This free kit is a one-stop shop for financial literacy resources and more information about all the above initiatives. The toolkit is updated frequently with new information, resources, and lesson plans and is available for download on our website.

33. Products & Services
VBA Management Services, Inc. is a subsidiary of the Virginia Bankers Association dedicated to bringing products and services to members that provide new income opportunities, offer cost savings, help banks stay in compliance and help train bank employees.
199 companies have become an integral part of the Virginia Banking industry by becoming an associate member of the Virginia Bankers Association.
29 endorsed providers - products and services to help you make or save money
Partner Organizations:
Bankers Insurance
Virginia Mortgage Lenders Association
VBA Multi-Bank Title Agency Program:
Virginia Title Center, LLC
Bankers Title, LLC
Bankers Title Shenandoah, LLC
West Virginia Bankers Title, LLC

34. VBA Products & Services Summary
Benefits
Medical
Dental
Life
Short Term Disability
Long Term Disability
Vision
401(k)
Non-Qualified Deferred Comp
Pension
Flexible Spending Account
Accident/Critical Illness
Hospital Indemnity
Legal Assistance
Pet Insurance
Endorsed Providers
ABA Community Bank Mortgage
Identity Theft
ABA Insurance Services
Infinex
Akouba
Office Depot
ANOVA Financial
Promontory
Bankers Insurance Owner
PWCampbell
Bankers Insurance Client
Salary Survey
Blue Ocean Brain
S&P Global
Career Center
Thomas Compliance Assoc.
Compliance Alliance
Title Insurance
CRA Partners
TSYS
Decision Dynamics
UMB
Discover Debit
VCDC
Equias Alliance
WolfPAC Integrated Risk Mgmt.
EverFi
Zurich Insurance
Harland Clarke

35. Affordable Care Act Support
Provide ongoing updates on regulations and share cost-saving strategy trends
Benefits Strategic Planning
Assist in development of employer's employee benefit strategy for upcoming year
Maintain Competitive Benefit Programs
Leverage association size to bring members "best in class" benefits
Open Enrollment Renewal Support
Support includes educational booklets, webinars and marketing pieces
Other Value-Add Benefit Programs
Examine market for other benefit products to assist in attracting and retaining talent (i.e. voluntary benefits)
Retirement Plans
Provide fiduciary protection, access to funds not available on stand alone basis and educational opportunities
Since 1946, the VBA has offered a number of employee benefit programs for member banks.
All benefits are provided through contracts issued by insurance carriers and other providers to the VBA Insurance and Pension Trusts.
Daily operation of the benefit programs is the responsibility of the VBA Benefits Corporation.
VBA Employee Benefit Programs are monitored by the VBA Benefits Corporation Board of Directors. Selected from participating VBA members, the Board of Directors meets quarterly to review performance goals and to oversee program operations.
VBA Benefits Corp.

36. 2017 VBA Benefits Corp. Enrollment by Line of Coverage
$90,000,000 insurance premiums
$400,000,000 in retirement plan assets
Banks Headquartered in Virginia
107 85 84
(Q1 ‘17)
Line of Coverage
2012
2016
2017
% Change
( )
Medical
8,366
8,291
8,384
1.1%
Dental
7,013
6,545
6550
0.1%
Voluntary Vision
3,886
4,439
4,352
(2.0%)
Life Insurance
9,541
8,901
9,072
1.9%
Long Term Disability
9,723
8,589
8,863
3.2%
401(k) Plan
5,889
4,722
4,559
(3.5%)
However, the good news is that we are holding relatively steady in enrollment for our major lines of coverage even when the number of VA-based community banks continues to decrease.
2012 = 107 banks / 2016 = 85 banks; you can see the number of covered employees for those years and CLICK
For 2017, we are managing over $90 million in health & welfare insurance premiums and $400 million in retirement plan assets between our 401(k), defined benefit and NQDC plans. CLICK

37. VBA Strategic Plan 2016-2018: Key Member Outcomes
The VBA helps my bank plan for and engage in the future of banking.
The VBA provides my bank with the resources we need to build and develop a stronger team of banking professionals.
The VBA strengthens the ability of my bank to have a positive impact on the communities we serve.
The VBA team knows and understands our industry, and they are proactive partners in strengthening the banking industry in Virginia.

38. VBA Strategic Plan 2016-2018: Strategic Goals
The VBA challenges my thinking, and keeps me informed about industry trends and innovations.
The VBA provides me with new services and benefits that make my bank more competitive.
The VBA helps me recruit, train and develop my employees throughout their careers to become highly skilled bank professionals, and leaders in the industry.
The VBA elevates the voice of the banking industry in Richmond, in Washington, and in communities throughout the Commonwealth.
The VBA helps me promote the success of individuals, families and small businesses in my community, and highlight our role as community leaders.
The VBA helps me increase financial literacy in my community – from elementary school and into retirement – to allow me to be a stronger financial partner with my community.
The VBA staff works side-by-side with my employees, eager to learn about our industry from the people who know it well and willing to share their own knowledge to help my bank succeed.
The VBA is always looking for ways to strengthen the association through stronger partnerships and growth opportunities that benefit members.

39. Expectations of a VBA Director

40. Engage Attend and participate in VBA Board meetings
Promote VBA membership and active involvement to your management team and directors, as well as to other financial institutions when opportunities arise to do so
Read the VBA Executive Brief, Virginia Banking and Legislative Bulletin and encourage others in your organization to do the same
Encourage participation of the next generation of leaders within your institution in VBA activities and encourage them to join the Emerging Bank Leaders

41. Collaborate
Provide insight and expertise in shaping the VBA agenda, priorities and positions on issues of material importance to the Virginia banking industry
Provide insight and direction to make VBA products and services better, and to develop solutions for unmet industry needs

42. Advocate
Actively participate in VBA grassroots lobbying activities and encourage directors and employees at every level in your institution to do likewise
Personally contribute to VBA BankPac and conduct a PAC campaign in your bank
Participate in VBA Banker Day at the General Assembly, the GR Summit in Washington and regional legislative meetings

43. Participate
Attend major VBA membership events including the Financial Forecast, CEO Forum and Annual Convention
Consider using the VBA School of Bank Management, VBA Executive Leadership Institute and VBA Management Development Program as key management development tools
Consider using other VBA education programming to develop talent within your company
Consider using VBA benefits, products and services

44. Thank you for your service to the VBA and to the industry!