Pub. 12 2021 Issue 3


2021 Calendar of Events

2021 Calendar of Events (All events scheduled are live and have a recorded backup online) September 16 Human Resource Management for Bankers (Sam Bowling) 21 Asset Liability Management (Sam Bowling) October 4-5 BSA/AML School Fundamentals (Stonewall) 6-7 BSA/AML School Advanced (Stonewall) November 2 Business Continuity & Vendor Management (Zoom) 7-9 CEO Conference (Renaissance Baltimore Harbour Place Hotel) 9 New Accounts (Sam Bowling) …

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State Privacy Legislation: A Trend Worth Watching for Banks

States are showing increasing interest in supplementing federal protection of consumer data privacy rights. Since 2018, three states have enacted consumer data privacy statutes. The current statutes appear to be of limited concern for community banks, but bankers should be vigilant as statutes are proposed in the states where they do business. This article will briefly discuss the state privacy trend, application, bank exemptions, and what to watch for in emerging legislation.


Opportunities in Partnership: Ways Community Banks Can Benefit from Today’s FinTechs

There’s no question that the pandemic caused devastating loss throughout the country. But as the world begins to open back up, companies are evaluating what their “new normal” looks like and identifying ways to drive more revenue into their business. The pandemic forced us to find new ways to interact with customers. As a result, …

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Three Issues — and Opportunities — Facing Banks in the Post-Pandemic World

As the world (hopefully) comes out of the COVID-19 pandemic later this year, the way we conduct business is changing. The banking industry, described by one commentator as “the most old-school of the old-school professions,” is criticized as resistant to change. As one article described it, “the fundamental ways that financial institutions function has not changed with the times.”


Bond Market Behavior: Trusting the Fed on Inflation

The narrative for the U.S. economy has shifted as we move into the second half of this year. Not long ago, financial markets were saturated with talk about inflation and rising interest rates. However, after an initial economic reopening and rebooting surge, the bond market is now telegraphing expectations for weaker growth, lessened inflation fears, and perhaps a more diligent Federal Reserve. The 10-year U.S. Treasury yield, which had jumped sharply from the August 2020 low-point of .50% up to 1.75% through the end of the first quarter, reversed and steadily traded lower into mid-year, ending the second quarter below 1.50%. The slope of the yield curve, which had previously steepened to the widest in six years, is now much flatter, reflecting clarity from policymakers and diminishing expectations for sharply higher yields.


Collateral Concerns: Common Interest Ownership Communities

Taking collateral in a common interest community should involve heightened due diligence because of the relative complexities associated with common interest communities and how liens attach to units. As a lender, you want to ensure you obtain the lien priority you desire. Accordingly, special attention should be paid to the Uniform Common Interest Ownership Act (UCIOA) and how it treats liens. Lenders should utilize title attorneys who are experienced with UCIOA, which West Virginia adopted in 1986. UCIOA applies to all common interest communities created in West Virginia after the effective date of the Act. Pre-existing communities are also subject to certain provisions of UCIOA, including the lien for assessments under W.Va. Code § 36B-3-116. Of note, UCIOA does not apply to a planned community in which all units are restricted exclusively to nonresidential use unless the Declaration, described below, provides that UCIOA does apply (W.Va. Code § 36B-1-207).


Let’s Talk About Firewalls

Let’s Talk about the Bank’s Firewall. With the evolution of network security technology, there are more sophisticated firewalls available called next generation firewalls (NGFW). An NGFW is a network security device that provides more security than the traditional firewall appliance. The NGFW results from the increase over the years in cyber threats that have become more sophisticated in finding ways to breach traditional firewalls and ultimately gain access to company networks.


How Will Your Bank Leverage Fintech?

Financial technology, or fintech, refers to the broad set of financial innovations that apply new technologies to a financial service or product. Although potential competition from fintech companies initially raised concerns for the banking industry, banks quickly recognized and adapted to the changing market as consumer and regulatory demand for better technology increased. Today, banks have implemented fintech solutions for both back-end processes (monitoring of account activity) and consumer-facing products (applications to apply for loans and pay bills online). Many community banks now partner with fintech companies, often through their core processing service providers, to provide modern platforms and services to their customers, obtain data about their customers to offer individualized products and services, and increase security.


Meet Your Chairman: Chad Mildren, Chief Consumer Banking Officer, United Bank

I come from a long line of bankers. I’m actually a fourth-generation banker, so it’s almost as if banking is in my blood. I began my career in the banking industry working as a teller during the summers while in college. And in the summer prior to my senior year, I interned at Jackson State Bank in Jackson Hole, Wyoming. The internship provided me the opportunity to experience and gain insight into several areas of the industry, including new accounts and branch operations. It was at that point I decided to pursue a career in banking and upon my graduation from the University of Kentucky, I took a role as a credit analyst at that same bank in Jackson Hole.