2024 Pub. 15 Issue 4

Contents ©2024 The West Virginia Bankers Association | The newsLINK Group LLC. All rights reserved. West Virginia Banker is published four times each year by The newsLINK Group LLC for the West Virginia Bankers Association and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the West Virginia Bankers Association, its board of directors or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. West Virginia Banker is a collective work, and as such, some articles are submitted by authors who are independent of the West Virginia Bankers Association. While West Virginia Banker encourages a first-print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. 5 PRESIDENT’S MESSAGE Elections Present New Opportunities and Challenges By Mark Mangano, President & CEO, WVBankers 6 Why Community Banks Don’t Hedge (and Why They Should) By Dennis Falk, SVP and Regional Manager, and Jo Ellen McKinley, SVP and National Business Development Manager, PCBB 8 The Blunt Truths of Banking MRBs By Carol Ann Warren, JD, MBA, Assistant Vice President, Associate General Counsel, Compliance Alliance 11 Workout Your Workouts Make Trimming the Fat Part of Your Bank’s New Year’s Resolution By Michael R. Proctor, Special Counsel, Bowles Rice LLP 14 Top Strategies for Managing Liquidity in a Falling‑Rate Environment By H.D. Barkett, Senior Managing Director, Treasury Desk, IntraFi 16 Scarcity or Prosperity The Efficiency Ratio Under Attack By Dr. Sean Payant, Chief Strategy Officer, Haberfeld 20 Proper Oversight Keeps a Plan Running Smoothly By John Schafer, VP, National Leader, Financial Institutions Channel, Pentegra 22 Credit Risk Management Early and Accurate Risk Ratings By Brad Snider, Director, Laura Knight, Director, and David Bartus, Director, Forvis Mazars 24 Cybersecurity and AI What Community Banks Should Know By Steve Sanders, Chief Risk Officer, Chief Information Security Officer, CSI 26 Is the United States Entering a Prolonged Period of Low Unemployment and Rising Wage Inflation? By Chris Dahlgren, Senior Financial Strategist, The Baker Group 27 2025 Upcoming Events 6 22 4 West Virginia Banker

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