Day: June 22, 2021


WVCCPA Finds Its Equilibrium

On March 29, 2021, Governor Jim Justice signed into law Senate Bill 5, which amended the West Virginia Consumer Credit and Protection Act (“WVCCPA”). The amendments were met with optimism by businesses in West Virginia as they provide enhanced procedures intended to deter frivolous lawsuits. Initially enacted in 1974, the stated purpose of the WVCCPA was to “protect the public and foster fair and honest competition.” However, since its enactment, the WVCCPA has been criticized for its notoriously consumer-friendly application. As amended, the WVCCPA provides


Is Opportunity Cost Hurting Our Bottom Line?

As the U.S. economy continues to work its way out of the recession brought on by the COVID-19 pandemic, many economists debate what the future will hold. With inflation, asset bubbles, rising rates, and the effect of fiscal spending being hot topics during board and ALCO discussions, the question becomes this: What should we do to prepare our balance sheet for what may come? However, for all these discussions about potential future challenges to earnings, seldom do boards and ALCOs discuss the revenues lost due to opportunity cost.


Good Things Come to Those Who Wait: Interagency Proposed Flood Q&As

The Agencies (OCC, FRB, FDIC, FCA, and NCUA) have recently proposed revisions to the Interagency Questions and Answers Regarding Flood Insurance. The purpose of this proposal is to supplement the July 2020 proposed Q&As, which only contained two proposed questions on private flood insurance. These new proposed Q&As are formulated based on questions received by the Agencies regarding private flood insurance rules that went into effect July 1, 2019, and include 24 proposed Q&As on private flood insurance.


Five Pillars Supporting Community Bank Independence

Most community bank boards aspire to maintain
long-term independence. Supporting that aspiration requires a commitment to five distinct pillars: Performance, Shareholders, Management, Leadership and Vision. A consistent focus on all five pillars can significantly increase the bank’s chances of remaining independent or supporting a high price for being acquired. Neglecting any one pillar will undermine the bank’s value and decrease the chances of staying independent.


The Loyalty Factor: Translating Relationships into Non-Interest Income

2020 has challenged our industry in ways previously unknown. We began the year expecting our biggest challenge would be continued growth of deposits at reasonable rates. Today, we face three challenges: a prolonged low-rate environment with continued margin compression, the challenge of keeping branches open and serving our communities, and an increasing number of customer transactions moving to the digital arena.