News for Virginia's Hometown Banks

October 8, 2026

This issue of the Community Bank Leader is presented by Travelers Insurance

VACB Celebrates Virginia's Community Banks at 49th Annual Convention

Great Connections, Lasting Memories:

VACB’s 49th Annual Convention & Trade Show

VACB’s 49th Annual Convention & Trade Show brought community bankers and industry partners together October 4–6 at The Boar’s Head Inn in Charlottesville for a gathering of education, networking, and celebration. Timely and relevant Business Sessions offered prime banking insights, and the Trade Show gave attendees opportunities to explore new products, connect with exhibitors and learn more about their offerings. From conversations at networking activities to catching up with colleagues between sessions, the Convention reflected the spirit of Virginia’s community banking community.

The fun continued with our Virginia Country Faire and a festive Oktoberfest celebration, adding local flavor and plenty of opportunities to make lasting memories. Our sincere thanks go to the attendees, speakers, exhibitors, sponsors, and Preferred Vendors who helped make this year’s Convention such a success. 

VACB Announces 2026-27 Board Leadership

The Virginia Association of Community Banks is pleased to announce its Board of Directors and officers for 2026–27, following elections held this week in conjunction with VACB’s 49th Annual Convention and subsequent Board of Directors meeting.

2026–27 VACB Officers

• Chair: Jay Hendricks, TowneBank
• Vice Chair: Mark Reed, Pioneer Bank
• Secretary: Paul Mylum, The Bank of Charlotte County
• Treasurer: Neil Burke, Benchmark Community Bank
• Past-Chair: Lisa Kilgour, Potomac Bank
• ICBA State Delegate: Blake Edwards, Skyline National Bank

This year’s Director elections, conducted at yesterday’s VACB Annual Meeting, continue VACB’s transition to a more balanced, staggered Board structure in accordance with the Association’s bylaws. Directors were elected to both two- and three-year terms, helping establish a more consistent rotation of Board service and continuity in VACB’s governance from year to year.

Directors Elected to Three-Year Terms, Expiring in 2029

• Neil Burke, Benchmark Community Bank
• Blake Edwards, Skyline National Bank
• J.W. Kiser, New Peoples Bank
• Paul Mylum, The Bank of Charlotte County

Directors Elected to Two-Year Terms, Expiring in 2028

• Aaron Green, Pendleton Community Bank
• Jay Hendricks, TowneBank
• Bobby Hobbs, CornerStone Bank
• Tom Rasey, The Farmers Bank of Appomattox
• Matthew Steilberg, C&F Bank

VACB extends its appreciation to Lisa Kilgour of Potomac Bank for her leadership as Chair over the past year and looks forward to working with Jay and the entire Board as the Association enters an important year ahead, including VACB’s 50th anniversary in 2027.

Save the Date: VACB 50th Annual Convention & Trade Show

Following a successful 49th Annual Convention & Trade Show, VACB is looking ahead to a milestone worth celebrating! Join us September 26–28, 2027, at The Omni Homestead Resort for our 50th Annual Convention & Trade Show. This golden anniversary will honor five decades of connections, collaboration, and commitment to Virginia’s community banks - and the people who have made it all possible.

A celebration this special deserves an extraordinary setting, and The Omni Homestead provides the perfect backdrop to reflect on our history and look toward our future. Plan to join fellow bankers, industry partners, and friends for meaningful conversations, valuable insights, and memorable moments together.

Save the dates and help us make VACB’s 50th a huge success!

VIDEO: H.B. 190 Creates Virginia Work Group to Address Electronic Transfer Fraud

To see the video from WTKR News 3 (10/1/2026) click HERE

VA Economists: Inflation Increase is Less Than Feared, but Still 'Uncomfortably High'

"Inflation didn't rise as much as feared in August, based on the measurement that the Federal Reserve Board prefers, but Virginia economists say a 3.4% increase over a year ago is still "uncomfortably high" as record diesel fuel prices ripple through the economy.

The Personal Consumer Expenditures Index, or PCE, inched up by 0.3% in August from the previous month, while the core inflation rate, minus the cost of fuel and food, rose by 0.2% from July and 3% for the previous 12 months, the U.S. Bureau of Economic Analysis reported on Wednesday.

'They're probably happy it didn't grow by more, but it's uncomfortably high,' said Alice Louise Kassens, dean of business, economics and analytics at Roanoke College."

To read more from Insurance News Net (10/1/2026) click HERE

Past Decade's Industrial Focus Benefits Southern Virginia

"Work is ramping up on Berry Hill, more than a decade after plans for the super-sized industrial park were in early stages.

Today, the Southern Virginia Megasite at Berry Hill, co-owned by the City of Danville and Pittsylvania County, is the site of the $1.35 billion Microporous battery separator facility under construction, and work on Stack Infrastructure’s data center campus is set to start before year’s end.

And don’t forget Avio USA, which is set to build a $500 million, 865,000-square-foot rocket and missile factory at Southern Virginia Multimodal Park, owned by the Staunton River Regional Industrial Facility Authority, a collaboration among Pittsylvania, Danville and the Town of Hurt.”  

To read more from Virginia Business (9/29/2026) click HERE

Virginia Unveils First Draft Rules for Recreational Marijuana Sales

"The Cannabis Control Authority recently unveiled its first draft of rules for businesses seeking to enter recreational marijuana sales in Virginia next year.

The rules include thousands of dollars in fees, competition among applicants, and a limited number of retail licenses for the Commonwealth.

Statewide, 350 retail licenses are available, roughly the number of ABC liquor stores.

For standalone retailers, the cost is $4,000 to apply, $20,000 for initial authorization, and $15,000 annually to renew.

Charlie Alovisetti, a partner at Vicente LLP, is representing some businesses in the state trying to get a license.

There are things businesses can do now to prepare before the regulations are finalized, especially if they are looking at applying for a microbusiness license."

To read more from NBC 12 News (9/22/2026) click HERE

Sen. Kaine Discusses Housing Law, Funding Needs at Abingdon Roundtable

"U.S. Sen. Tim Kaine joined regional housing leaders Friday in Abingdon for a roundtable discussion on the 21st Century Road to Housing Act, which he co-sponsored and was recently signed into law.

The Regional Housing Alliance of Appalachia brought together housing developers, financial institutions and community leaders to discuss how the law could affect Southwest Virginia and the Tri-Cities region.

Kaine said the law allows up to 20% of Community Development Block Grant funding to be used for new affordable-housing construction.

'Virginia gets between $60 million and $70 million a year in CDBG funding, so that can produce $12 million to $15 million a year for new construction on affordable housing,' Kaine said.

The discussion also gave attendees an opportunity to raise concerns and ask questions about future housing priorities, funding and advocacy.

Mike McGirr, special projects manager for Beyond Housing, said the gathering was designed to help housing professionals examine the law’s potential and identify what is still needed."

To read more from WCYB News5 (9/25/2026) click HERE

New Data Shows Lifetime Return on Investment of Virginia Degree Programs

"Prospective Virginia college students and their families now have access to additional data to help evaluate four-year degree programs: return on investment (ROI). 

Earlier this year, the State Council of Higher Education for Virginia released a new data dashboard to show the average lifetime earnings of graduates from public institutions across the commonwealth compared to earnings for those without a degree.

The calculation attempts to determine whether specific majors are 'worth it' from a financial standpoint, and whether students were able to pay off their student loans and earn more than a Virginia high school graduate does on average by the time they turn 67. It uses nearly 25 years’ worth of historical earnings data ending in 2019–20 (adjusted for inflation to 2023 values) for the calculations."

To read more from VPN (10/5/2026) click HERE

As Farmers Face Mounting Financial Pressures, Advocates Want to Keep Farmland Away from Developers - And Data Centers

"When a developer bought the Frank Williams Farm in Chesapeake in August, it triggered a wave of concern the site would become a data center.

But Chesapeake resident Mike Hoffman said he soon realized the issue wasn’t just about data centers.

'The bigger question is how can we give farmers more options when they feel like the only option is to sell (their) land?' Hoffman said.

Farmers in Hampton Roads — and across the country — are dealing with economic strains, including higher farming costs, tariffs and cuts to federal farm programs. As farming becomes a less viable venture and farmers age into retirement, many are selling their land to developers or other farmers.

Today, data centers’ demand for land is just one pressure farmers face — but it’s one that has a lot of momentum."

To read more from the WHRO (9/25/2026) click HERE

VIDEO: Virginia Woman Charged in Mass. Bank Account Theft Investigation

To see the video from NBC10 Boston (9/23/2026) click HERE

Spanberger Unveils Energy Plan to Meet Growing Virginia Demand

"Gov. Abigail Spanberger on Thursday unveiled her administration’s energy plan, outlining multiple ways that she said Virginia’s power sector could achieve net-zero carbon emissions by 2050 while keeping electricity affordable and reliable.

The nearly 200-page plan describes different outcomes for Virginia having no energy policy, continuing its current policies or pursuing one of three new paths that emphasize distributed resources such as rooftop solar and having large customers such as data centers reduce or shift their energy consumption during peak times, which is known as demand flexibility. 

It lays out a seven-point strategy for Virginia’s energy future that includes focusing on the 'lowest cost, fastest, and cleanest energy solutions' such as utility-scale solar and storage, reducing carbon emissions and building a 'homegrown workforce and supply chain to power Virginia’s energy economy.'"

To read more from Cardinal News (10/1/2026) click HERE

BCTCares Foundation's 'Pack the Pack' Program Breaks Record, Raises $120,000 for Local Backpack Charities to Feed Local Food-Insecure Children

"The BCTCares Foundation, a nonprofit founded and operated by employees of Potomac Bank (OTCID: PTBS), recently announced that its annual Pack the 'Pack campaign broke its yearly fundraising record by raising $120,000 for local charities who help feed food-insecure children and their families. This year's campaign surpassed the previous record of $104,000, set last year.

The Pack the 'Pack program's mission is to partner with four local nonprofits each of whom are locally established in the markets Potomac Bank serves. Those partners focus on providing nourishing food to food-insecure children, individuals, and families. This year's donation for each of the partner nonprofits is $30,000, providing crucial funding for the purchase of food, which equates to over 11,000 backpacks being filled with enough food for two days (weekend) per child."

To read more from the Yahoo Finance (9/29/2026) click HERE

ICBA Urges Court to Rein in OCC Over Trust Charters

Banking Dive - 10/5/2026

During President Donald Trump’s second term, the OCC has approved or conditionally approved 21 national trust bank charters, with 13 of those for crypto companies, ICBA said in the"...READ MORE

Crypto Lost its CLARITY. Here's How Industry and Government are Rebuilding

Pymnts - 9/28/2026

There’s a changing of the guard taking place across crypto. The Sept. 15 failure of the Digital Asset Market Clarity Act to advance in the Senate has coincided with a rash of leadership changes across the cryptocurrency....READ MORE

VIDEO: Community Banks Are Struggling, Crypto Isn't to Blame

Yahoo Finance - 9/24/2026

In this clip from the Daily Wolf, Scott Melker sits down with John D'Agostino, head of strategy for Coinbase (COIN) Institutional, to discuss his findings on community banks and crypto. D'Agostino says his research found that....READ MORE

Senate Passes Common Cents Bill

Reatil Dive - 9/30/2026

The legislation had two votes in both the House and Senate due to an amendment added in the Senate version when that chamber endorsed the bill in August. That set up a second House vote earlier this month, followed by the second...READ MORE

New Technologies Bring Threats and Opportunities to Community Banks

CSBS - 10/6/2026

Emerging technologies are having a sizeable impact on community banks, according to the 2026 Conference of State Bank Supervisors' (CSBS) Annual Survey of Community Banks.Net interest margins and core deposit....READ MORE

Joint Trades Comment on OCC's GENIUS Act Stablecoin Application Forms

BPI - 9/25/2026

The Bank Policy Institute, American Bankers Association, Consumer Bankers Association, and Independent Community Bankers of America appreciate the opportunity to respond to the notice and request for comment issued...READ MORE

Agencies Update Compliance Guide for Community Bank Leverage Ratio Framework

InfoBytes - 8/7/2026

On July 30, the OCC published a bulletin announcing that it, the Fed, and the FDIC jointly issued a revised, non-binding “Community Bank Compliance Guide” summarizing the Community Bank Leverage Ratio framework...READ MORE

Fast Money Needs Faster Fraud Checks

Pymnts - October 2026

Fraud is putting more pressure on payment systems just as money is moving faster. Firms are adding stronger defenses, but the data shows gaps in detection speed, customer friction and readiness for new fraud-monitorin....READ MORE

Rising Interest Rages Challenge Utility Financing Plans, US Bank Managing Director Says

Utility Dive - 10/5/2026

U.S. utilities “exhibit a pronounced sensitivity to interest rate movements,” according to 2025 analysis from investment firm Redwheel, though the analysis said independent power producers like Vistra, Constellation Energy....READ MORE

Trump Immigration Crackdown Pushing Illegal Aliens Out of U.S. Banking System

Breitbart - 9/24/2026

The number of non-citizens engaged in the U.S. banking system has fallen sharply amid the Trump administration’s crackdown on illegal migrants.

Immigrants have been closing bank accounts and going back to...READ MORE

VACB Third Quarter Operations Forum - Get Registered!

Make plans to join us October 14 & 15 at Hotel 24 South in Staunton for our lastest Ops Forum!.

Consumer Loan Regulations – October 14

TILA

• Consumer loan coverage and protections
• Open-end and closed-end loans
• HELOCs
• HPMLs and HCMLs

RESPA

• Consumer Real Estate Secured Loams

ECOA

• Consumer Rights and Responsibilities
• Non-Work Authorized Individual Issues
• Appraisal Requirements

Loan Operations Thursday – October 15

Fraud and Litigation Trends

Loan Origination Issues 

• Adverse Actions
• ATR (Mortgages) and ATP (Credit Cards)
• ECOA and Reg B
• TRID Issues and Enhancements

Loan Servicing

• Current Requirements
• Loss Mitigation
• Changes on the Horizon

Loan Collection

• UDAAP Issues

Room Reservations

VACB has reserved a limited number of rooms for the nights of October 14. The rate is $119 for a single or double room. Reservations MUST be made directly with Hotel 24 South by calling the hotel directly at (540) 885-4848 and referencing the Virginia Association of Community Banks room block. This block of rooms will only be held until Wednesday, September 30. Check-in time is 4:00 pm and check-out time is 12:00 noon.

VACB Fall Brush-Up BSA Conference - Get Registered!

Make plans to join us October 20-21 via Zoom for our Fall BSA/AML Program.

Refresh, Refocus & Prepare for What's Next


Why Attend?

The 2026 BSA AML/ CFT Brush-Up School is designed specifically for experienced BSA professionals who understand the basics and need an annual refresher on what has changed, what deserves renewed attention, and what practical steps institutions should take moving forward. Rather than rebuilding programs from the ground up, this session revisits core principles through the lens of today's regulatory and operational environment.

Whether preparing for the next examination cycle, strengthening fraud controls, refreshing risk assessments, improving SAR quality, or understanding the latest FinCEN initiatives—including Geographic Targeting Orders and the AML/CFT Program Notice of Proposed Rulemaking—participants will leave with actionable insights and practical solutions tailored for community banks.

Attendees will receive comprehensive training materials, practical resources, implementation tools, and opportunities to exchange ideas with peers facing similar challenges across the banking industry.

Program Highlights:

• FinCEN Brush-Up: What Changed Since Last Year?
• The AML/CFT Program NPRM: What Community Banks Need to Know
• Building a Better BSA Risk Assessment
• Decision, Documentation & Narrative Quality: A SAR Refresher
• OFAC & Sanctions: The Annual Compliance Check-Up
• Fraud Trends Every BSA Officer Should Know
• Turning Tellers and CSRs into Your First Line of Defense
• High-Risk Customers: Refreshing Due Diligence Expectations
• Payments, ACH & NACHA Updates
• Examination Trends, Lessons Learned & Action Planning

CRA & Fair Lending Deep Dive for Community Banks

Make plans to join VACB, Financial Solutions, Inc and ICBA CRA Solution on October 27 & 28 at Hotel 24 South in Staunton for this timely program!


TUESDAY, OCTOBER 27

Fair Lending

• CRA Foundations & RegulatoryRequirements
• The Agencies, Assest Sizes & Requirements by Bank Classification
• CRA Exam Standards & Lending Products
• Community Development Definition & Qualifying Activities
• Performance Context: Telling the Bank’s CRA Story
• Peer Analysis & Benchmarking
• CRA Examination Management & Readiness
• Regulatory Outlook: 2026 OCC & FDIC CRA Proposal
• ECOA (Reg B) Issues
• DOJ Referrals
• Special Purpose Credit Programs (SPCP)
• Second Reviews

WEDNESDAY, OCTOBER 28

Fair Lending

• Fair Lending Risk Assessment
• Fair Lending Controls
• Fair Lending Training
• Monitoring & Management
• Home Mortgage Disclosure Act (HMDA) Data

VACB Fall Internal Audit with Brown Edwards

Make plans to join us November 3 via Zoom for our Fall Internal Audit Program 


Fall Internal Audit Program Topics

• AI Readiness – The ICBA released an AI readiness guide earlier in the year. We will share highlights of the guide to help you in your role.

• Model Validations – We will discuss recent changes to regulatory guidance related to model validations and how those changes impact your internal audit plan.

• AI in IA – With AI on our minds, we will share additional examples and case studies that apply to the internal audit function.

• Regulatory Changes – Always a hot topic, we will discuss relevant regulatory changes and invite regulators to a discussion panel.

• Fraud Mitigation – Based on actual fraud cases, we will facilitate an interactive session where we discuss practical controls to mitigate risk.

Featured Presenters:

• Alan Landes, Partner, Financial Institution Services Group
• Jason Ross, Partner, Financial Institution Services Group
• Jennifer Theimer, Director, Financial Institution Services Group

See VACB's full calendar of current & upcoming events HERE.

VACB always has a great lineup of webinar trainings for our members!

Oct. 9 - Managing Your Money Service Businesses - Risk, Compliance & Set-Up

Oct. 13 - Active Shooter Training: REACT - ESCAPE - SURVIVE

Oct. 14 - TRID Breakdown Part 1: Loan Estimates for Fixed-Purchase, Variable-Refinance & Construction

Oct. 15 - Call Report Series: Understanding Call Report Regulatory Capital

Oct. 15 - Frameworks to Execution: Bringing AI POC to Life

Oct. 19 - When a Borrower Dies: Next Steps

Oct. 20 - Fair Lending Risks in AI-Driven Credit Decisions: Bias by Algorithm

Oct. 20 - ACH Return Reasons Codes Explained

Oct. 21 - Fraud Series: Exploding Check Fraud

Oct. 21 - BSA & OFAC Annual Training for Lenders

Oct. 22 - The Advent of Roth SEPs, & Simples: Options, Choices & Considerations

ICBA Education - Ongoing Offerings

ICBA provides community bankers with premier and industry-specific education for every career stage. Our proven, comprehensive curriculum of best-in-class education is offered through multiple delivery channels to fit the needs and busy schedules of today’s community bankers.

Barret Virtual Sim Competition - October 22

Put your banking knowledge to the test in Barret School of Banking's exciting 1-Day Bank Sim Competition. Teams of 3–5 compete virtually, simulating three years of critical banking decisions - from interest rate management to balance sheet strategy - all in a single day. 

Learn More About the Barret School of Banking

Learn more about what the Barret School of Banking has to offer you and your staff.