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Ridge View Bank hires new SVP for New River Valley

Ridge View Bank has hired Todd Murray as senior vice president of commercial banking in the New River Valley, the Roanoke-based bank announced Wednesday.

Murray will lead an expansion of bank’s commercial banking services in the New River Valley and will be responsible for loan and deposit production, collaborating with the bank’s treasury, private banking and wealth partners.

For the past 27 years, Murray was market president of New River Valley for Danville-based American National Bank and Trust, which Atlantic Union Bank announced last July it would be acquiring.

“I grew up in the New River Valley and am excited to introduce Ridge View Bank to the area,” Ridge View Bank President Carrie McConnell said in a statement. “Moving into a new market, our goal is to find the best banker to build around. I am confident we have that person in Todd Murray.”

Murray holds an undergraduate degree from Virginia Tech and an MBA from James Madison University. He resides in Blacksburg.

Murray is a member of the Rotary Club of Blacksburg, Onward New River Valley’s investor relations and development committee and Montgomery County Chamber of Commerce’s legislative committee.

Ridge View Bank is a subsidiary of Pennsylvania-based CNB Financial that operates in Roanoke and Franklin counties.

NoVa Black Chamber of Commerce hires exec director

LeAnn White became the new executive director of the Northern Virginia Black Chamber of Commerce in November, the Tysons-based chamber announced Thursday.

White has more than 20 years of banking sector experience. She was previously assistant vice president and business development officer at Fairfax-based FVCbank, according to her LinkedIn profile. Before that, White was a senior relationship banker at Pennsylvania-based Fulton Financial.

“I approach this position with a heart of service,” White said in a statement. “I am excited to provide effective programming and valuable resources to foster an environment of creativity that will lead to strategic partnerships and connections for our members.”

Since November 2022, White has served on the chamber’s board of directors as chair of the events committee. She’s also a past secretary of the NAACP Fauquier County Chapter. The chamber’s former executive director, Sheila Dixon, left in July.

“LeAnn’s proven track record and passion for advocating on behalf of Black-owned businesses make her an invaluable asset to our organization,” NVBCC Chairman Samuel Wiggins said in a statement. “We are excited to see LeAnn as executive director and look forward to the fresh perspectives and initiatives she will bring to NVBCC.”

CFBP fines Atlantic Union Bank for overdraft program

The Consumer Financial Protection Bureau fined Richmond-based Atlantic Union Bank on Thursday for illegally enrolling thousands of customers in checking account overdraft programs, according to a news release.

The enrollments took place between 2017 and 2020, according to the bank. The bureau found that Atlantic Union, a subsidiary of Atlantic Union Bankshares, misled consumers who enrolled in the overdraft service by phone and failed to provide proper disclosures.

The CFPB is ordering Atlantic Union to refund at least $5 million in illegal overdraft fees and pay a $1.2 million penalty to the CFPB’s victims relief fund.

“Atlantic Union Bank harvested millions of dollars in overdraft fees through a host of illegal practices,” CFPB Director Rohit Chopra said in a statement Thursday. “Americans are fed up with junk fee scams, and the CFPB will continue its work to ensure families are treated fairly.”

The bureau outlined two ways it says the bank violated federal law: charging fees without proper consent and misleading customers about the terms and costs of overdraft coverage.

The bank does not admit any wrongdoing under the settlement. 

“We respectfully disagree with the CFPB’s conclusions about these historical practices and take very seriously our obligation to comply with applicable law,” Atlantic Union CEO John Asbury said in a statement. “We are, and have always been, committed to treating our customers fairly and providing them with the information they need to help them make financial decisions that work for their lives. Nonetheless, we believe it is in Atlantic Union’s best interest to settle this matter so we can continue focusing on providing the products, services and support our customers want.”

Atlantic Union said, in its own release, that before Thursday’s settlement, it proactively made improvements to its overdraft program. 

“In 2022, Atlantic Union also reduced or eliminated certain overdraft-related fees to help reduce the burden of such fees on customers. Among other changes, it eliminated fees on consumer accounts for items returned unpaid due to insufficient funds; reduced the number of overdraft fees that can be charged per day to a single account; and introduced a ‘no-overdraft’ checking product,” the bank said in a news release.

Atlantic Union Bank had 109 branches in Virginia, Maryland and North Carolina as of the end of September, and it had more than $20 billion in total assets as of March 31. 

Fed’s Fifth District economy grows slightly

The economy in the Federal Reserve’s Fifth District (a multistate region including Virginia, North Carolina, South Carolina, West Virginia and Maryland) grew slightly in recent weeks, according to the latest edition of the Federal Reserve’s Beige Book, released Wednesday.

Published eight times per year, the Beige Book is based on anecdotal information about economic conditions gathered from the nation’s 12 Federal Reserve Banks. It is compiled from reports by bank and branch directors, as well as information gathered from business contacts, economists, market experts and other sources. Wednesday’s release is an update from the Fed’s Oct. 18 report.

Here’s what the most recent Beige Book edition revealed about the direction the economy is taking:

Employment in the Fifth District rose moderately in the previous few weeks, although the labor market remained tight. To retain workers, one general contractor reported wage increases as large as 15% for its highest performers. Trucking firms reported that drivers were more readily available but that it remained difficult to hire skilled mechanics.

Year-over-year price growth remained elevated in the latest Beige Book reporting period but moderated slightly. Prices received by service providers increased a little more than 4% compared with last year, down from the peak of about 7%, according to Fed surveys. Prices received by manufacturers increased by just over 2% compared with last year.

Fifth District manufacturers’ reports were mixed. A textile manufacturer reported an increase in demand from clients who had worked through excess inventories that built up during the COVID-19 pandemic. A furniture manufacturer, however, reported the home furniture industry had been in an 18-month recession, and the manufacturer did not expect demand to increase soon. Several respondents reported they had invested in automation to increase productivity and manage costs.

Ports in the Fifth District reported that trade volumes were down in this reporting period. Imports were flat year-over-year but slightly up month-over-month, mainly from increased consumer goods coming in. Exports were down for the most part. Ports did not have issues with container congestion.

Trucking firms saw low underlying demand, particularly on the industrial side, as freight volumes for construction materials were down. Companies reported they had not had issues maintaining their fleets of trucks and trailers and that new equipment orders had no significant backlogs.

Consumer spending increased modestly in recent weeks, according to the Fed. Clothing and grocery stores reported increasing or steady sales and demand, but furniture and appliance stores reported decreases in purchases. Travel and tourism respondents reported steady to increasing activity.

Residential real estate sales volumes and buyer traffic decreased due to low inventory and higher mortgage rates. New listings were down, and days on the market increased slightly but stayed below historic averages. Although sellers often dropped sales prices or provided concessions for homes that had been on the market for more than 30 days, upward pressure on home prices, especially in more desirable neighborhoods, continued. Builders reported a high cost of materials, labor, trades and financing.

Commercial real estate sources reported slow market activity. The industrial and retail markets were fairly stable, reporting low vacancy rates and rising rental rates. Office building owners offered concessions, incentives or tenant improvement allowances to secure new leases, effectively lowering rental rates. Thanks to new construction coming to market, multifamily rents were flat or down.

In the financial sector, loan demand continued to slow, particularly in the commercial and consumer real estate segments. Sources attributed the softening to high interest rates and global and domestic political concerns. Many institutions increased deposit interest rates, focusing on money market accounts and certificates of deposit, to support deposit retention and growth.

Demand for services and revenues for nonfinancial service providers in the Fifth District remained stable. Wage and expense pressures began to moderate. One respondent expressed concern that demand could soften as student loan repayments restarted and consumers saw decreased discretionary income.

Benchmark Community Bank, parent announce next CEO

Kenbridge-based holding company Benchmark Bankshares and its bank, Benchmark Community Bank, will have a new leader at the start of the new year.

Jay A. Stafford, president and CEO of the holding company and CEO of Benchmark Community Bank, will retire Dec. 31. He will also retire from the bank’s and company’s boards of directors, according to the Nov. 21 announcement.

“It has been an honor to have spent my entire banking career at Benchmark Community Bank,” Stafford said in a statement. “I’ve had a truly fortunate and unique experience of working for one bank for over 35 years. I take pride in having been a part of Benchmark’s growth and consistently strong financial performance, while contributing to growing a bank from two branches with $30 million in assets to 17 branches with over $1 billion in assets.”

Jay A. Stafford will retire from Benchmark at the end of this year. Photo courtesy Benchmark.
Jay A. Stafford will retire from Benchmark at the end of this year. Photo courtesy Benchmark.

E. Neil Burke, currently executive vice president and chief financial officer of the bank and assistant secretary and treasurer of the company, will succeed Stafford on Jan. 1, 2024.

“I am so appreciative to the board of directors for this opportunity and to Jay for his mentorship over the years,” Burke said in a statement. “The banking industry has changed significantly in the past 20 years, and I look forward to working with our customers and employees to incorporate time-tested financial practices with innovative technology that allows us to better serve our markets while staying true to who we are as a traditional community bank.”

Burke, who joined Benchmark in 1999 as a branch officer, has been in his current role since April 2017. Before that, he served nine years as senior vice president and CFO.

He holds a bachelor’s degree in business administration from Bridgewater College and an MBA from Syracuse University. Burke attended the American Bankers Association’s Stonier Graduate School of Banking in 2004 and the University of South Carolina’s Graduate School of Bank Investments and Financial Management program in 2006.

Burke has chaired the Virginia Bankers Association’s CFO Committee since 2021. He also serves on the GO Virginia Region 3 Project Review Committee.

Elizabeth T. “Beth” Beale joined Benchmark as executive vice president in September and will succeed Burke as CFO. She previously served as executive vice president and CFO for Hampton-based Old Point National Bank, beginning in July 2019. Before Old Point acquired Citizens National Bank in 2018, Beale was its executive vice president and CFO.m Beale has a bachelor’s degree in accounting from Elon University and is a member and past chair of the Virginia Bankers Association’s CFO Committee.

Founded in 1971, Benchmark Community Bank operates 17 banking offices in Southern Virginia and northern North Carolina. At the end of 2022, the bank reported $1.12 billion in assets and $13 million in net income.

Fed’s Fifth District economy shrinks slightly

The economy in the Federal Reserve’s Fifth District (a multistate region including Virginia, North Carolina, South Carolina, West Virginia and Maryland) contracted slightly in recent weeks, according to the latest edition of the Federal Reserve’s Beige Book, released Wednesday.

Published eight times per year, the Beige Book is based on anecdotal information about economic conditions gathered from the 12 Federal Reserve Banks. It is compiled from reports by bank and branch directors, as well as information gathered from business contacts, economists, market experts and other sources. Wednesday’s release is an update from the Fed’s Sept. 6 report.

Here’s what the most recent Beige Book edition revealed about the direction the economy is taking:

Employment and wages in the Fifth District grew modestly over the previous few weeks. Companies reported continued trouble finding skilled workers, such as CDL drivers and motorcoach drivers. However, a staffing firm that specializes in executive-level marketers had too many candidates for the number of available jobs.

Prices continued to increase at an elevated rate, but growth was lower than this time last year. Manufacturers reported an unchanged growth in prices received and a slight increase in prices paid for nonlabor inputs. Services firms saw a marginal slowdown in prices received and a decline in nonlabor input prices. Labor costs for both continued to grow.

Manufacturers in the Fifth District reported mixed results, and several cited macroeconomic factors, like fears of a potential recession, as reasons for slowdowns. A gaskets manufacturer reported it was halting hiring, citing fears of a potential economic downturn. A fabric manufacturer said consumer demand declined because retailers had too much inventory, while a steel manufacturer reported strong demand during the same period.

Fifth District ports reported weak demand. Imports were lower both year-over-year and month-over-month, mainly because fewer consumer goods were coming into port. Export volume remained flat, however. Container dwell times returned to normal.

Trucking firm respondents said demand was flat this reporting period, but several trucking companies shut down, allowing carriers to slightly raise freight rates as they exited and reduced market capacity. Companies did not see the normal seasonal uptick this period.

Consumer spending in the district grew slightly, but spending growth varied by category. Food service, grocery stores and office supply stores reported steady or increased sales, while furniture, appliance and home remodeling and repair stores reported declining sales.

Travel and tourism activity slowed slightly this period, partly because of a typical seasonal shutdown and partly because of the threat of hurricanes in coastal destinations, according to respondents. Business travel picked up, helping to offset the reduced leisure travel.

Elevated prices, a lack of inventory and high mortgage rates constrained home sales in recent weeks, and the number of new listings in the Fifth District was down year-over-year. Days on the market increased slightly. Home prices held steady, although some were reduced for homes that had been on the market for more than 30 days.

Commercial real estate development and construction reduced significantly. The availability of credit and cost of capital were the main barriers to projects moving forward, as credit underwriting requirements tightened. Industrial and retail leasing demand continued to outstrip supply, escalating rents.

In the financial sector, loan demand continued to slow, primarily in consumer and commercial real estate portfolios. Banks struggled to maintain deposits.

Nonfinancial services providers reported stable demand and revenues. In terms of labor, applicant pools grew but remained under historical norms, and wage pressure continued.

Old Point National Bank hires new CFO

Hampton-based Old Point Financial has named Paul M. Pickett senior vice president and chief financial officer of Old Point National Bank, effective Oct. 24, the bank announced Wednesday.

Pickett joins Old Point National Bank from Richlands-based First Sentinel Bank, a subsidiary of First Region Bancshares, where he had also been chief financial officer and senior vice president since 2020. Before that, he was CFO for Odyssey Engines, a multistate aviation holding company, for three years. Pickett spent 26 years in public accounting prior to those roles and worked with community banks and bank holding companies. He earned a bachelor’s in business administration in accounting from Radford University and is a certified public accountant.

“We are excited to welcome Paul to the Old Point family,” Rob Shuford Jr., chairman, president and CEO of Old Point Financial, said in a statement. “He is an accomplished addition to our high-performing executive team and reflects Old Point’s commitment to excellence. His wealth of financial services experience collaborating with many community banks will be integral for executing Old Point’s strategies for continued profitability and growth.”

Old Point National Bank has 15 local offices and $1.18 billion in deposits as of June 30, 2022, according to the Federal Deposit Insurance Corp.

Atlantic Union CEO tapped as American Bankers Assoc. chair-elect

Atlantic Union Bankshares CEO John C. Asbury is the 2023-2024 chair-elect for the American Bankers Association.

ABA announced its new board officers and directors on Tuesday, following its annual convention in Nashville, Tennessee.

Asbury was the ABA’s 2022-2023 vice chair. He’s a past chairman of the Virginia Bankers Association and the Mid-Size Bank Coalition of America.

Asbury joined Richmond-based Atlantic Union Bankshares, the holding company for Virginia’s largest community bank, in 2016. He was previously president and CEO of First National Bank of Santa Fe.

Atlantic Union Bank reported $20.6 billion in assets and $15.7 billion in deposits as of June 30. In July, Atlantic Union announced it would acquire Danville-based American National Bankshares, the holding company of American National Bank and Trust, forming a bank with total assets of $23.7 billion as of June 30.

Along with being a Virginia Port Authority commissioner, Asbury serves on the boards of the Greater Richmond Partnership and chairs Virginia Learns. He holds a bachelor’s degree from Virginia Tech and an MBA from William & Mary.

Another Virginia bank executive on ABA’s board is Gary R. Shook, president and CEO of Midlothian-based CBB Financial and Community Bankers’ Bank. Shook, who also chairs the ABA Government Relations Council, is continuing his term as a director. He also serves on the board of the ABA’s BankPac.

Before joining Community Bankers’ Bank in 2020, Shook was president and chief banking officer of Blue Ridge Bank and chief operating officer of its holding company.

Community Bankers’ Bank is a bankers’ bank owned and directed by independent community banks in the Federal Reserve’s Fifth District, a multistate region including Virginia, North Carolina, South Carolina, West Virginia and Maryland. It reported $561,000 in 2022 net income and $162 million in assets.

Like Asbury, Shook is a past chairman of the Virginia Bankers Association. Shook is also on the Virginia Foundation for Independent Colleges Board of Trustees.

Primis Bank names new president

Rick A. Fulk has been promoted to president of Glen Allen-based Primis Bank, a wholly owned subsidiary of McLean-based Primis Financial, the bank announced Wednesday.

“Rick’s promotion to president of our most important division is an exciting moment for our company and demonstrates our commitment to have the bank be the primary driver of our market value. Rick’s influence and leadership in our organization is rooted in his desire to see those around him succeed and his ability to drive the financial results that our board and investors demand. His leadership skills, commercial success and ambition will produce results,” Dennis J. Zember Jr., president and CEO of Primis Financial, said in a statement.

Fulk has worked for Primis Bank (and its predecessors) since 1998 in various commercial capacities and most recently was the regional executive for Richmond and Hampton Roads.

Primis has $3.85 billion in assets, $3.17 billion in total loans and $3.31 billion in total deposits with 32 branches in Virginia, Maryland and all 50 states.

Making bank

Suffolk-based TowneBank continued to lead Hampton Roads with the largest market share in fiscal 2022, 25.67%, according to the Federal Deposit Insurance Corp.’s June 30, 2022, report. However, that figure declined from fiscal 2021, when the bank held a 27.49% market share. Meanwhile, Charlotte, North Carolina-based Truist Bank is threatening to close in on that lead, jumping from 19.94% of market share in fiscal 2021 to 24.34% in fiscal 2022. Wells Fargo’s share dropped from 19.94% to 18.93% but still maintained its solid third place. In January, TowneBank closed on its $53 million acquisition of Windsor-based Farmers Bankshares, the parent company of Farmers Bank, creating a bank with about $17.5 billion in combined assets. Farmers reported 1.46% of market share, down from 1.59% from the previous period. Also of note, Newport News-based Langley Federal Credit Union’s assets increased from more than $4.8 billion in fiscal 2021 to more than $5.1 billion in fiscal 2022; the credit union also added more than 22,000 members.