WEST VIRGINIA BANKER 8 10 24 SUMMER 2022 A Conversation with EJ Hassan – 2022 West Virginia Young Banker of the Year The Society of Bank Executives: The Power of Peer Networks 2022 Young Banker of the Year Award Nominees

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Six-Month Free Trial Sample Municipal Summary 03/31/2017 Page 1 of 2 635,461 GO+REV 9,896,680 GO 4,752,978 REV GO 64.7% REV 31.1% GO+REV 4.2% Total : 100.0% Municipal Type 689,324 TX PSF 10,199,393 AA 4,180,764 A 215,638 NR TX PSF 4.5% AA 66.7% A 27.4% NR 1.4% Total : 100.0% Moody/S&P Composite Rating AL CA CO IA IL IN KY NM OH OK TX WA WI AL 1.9% CA 2.3% CO 1.4% IA 3.9% IL 10.8% IN 10.2% KY 2.4% NM 1.7% OH 8.0% OK 9.9% TX 33.2% WA 4.7% WI 9.6% Total: 100.0% State of Issue Individual Municipal Ratings are as of 3/19/2017, unless recently purchased. weighting based on Book Value of 15,285,119 Insd-AGM Insd-BAM Insd-PSFG Insd-PSFG, Pre-ReFunded Insd-State Aid Not Insured Not Insured, Pre-ReFunded Insd-AGM 12.0% Insd-BAM 3.4% Insd-PSFG 3.1% Insd-PSFG, Pre-ReFunded 1.4% Insd-State Aid 11.9% Not Insured 58.2% Not Insured, Pre-ReFunded 10.0% Total: 100.0% Insurance 4/13/2017 6:43:55AM - FSG / SAMP The Baker Group Software Solutions, Inc. - APMTM Although the information in this report has been obtained from sources believed to be reliable, its accuracy cannot be guaranteed. ADVANCED PORTFOLIO MONITORTM 18 18 Sample Cusip Par Cpn Book Price Market Price Gn/(Ls) *Acctg Eff Dur Eff Cnvx Underlying Municipal Credit Detail 03/31/2017 Yield Description Page 6 of 7 Muni Insurer Muni Type Moody S&P Call Date Maturity ASC 320 Gn/(Ls)% State Underlying Ratings GO | REV *DA% | DC *Per Cap | Covnt Issue Date Tax Status Overlapping D/A - Debt/Pop Net Asset Ending Beginning Cnty Jobless Security Fiscal Year Report Date *Proj 944431BL8 220,000 5.500 103.90 105.18 2,816 4.34 4.39 (0.98) WAYNE SD #112-B-BABS IL 26 Not Insured N/A N/A GO N/A A+ 12/01/20 12/01/26 AFS 1.23 IL 5.58 | -- 507 | -- 12/08/10 Taxable 8.29 - 754 WAYNE - 8% 2016 Report AD VAL TAXES 2015 4.34 3 Items 4.19 4.19 3.91 (0.30) (458) 103.36 103.40 5.311 1,160,000 Taxable Municipal Totals 39 Items Portfolio Totals 3.25 3.25 3.91 (0.26) 3.392 104.59 101.78 (409,651) 14,615,000 6,385K AA 6,918K A 1,981K NR AA 41.8% A 45.3% NR 13.0% Total: 100.0% Moody/S&P Composite Underlying Rating 1,471K Aa2 213K Aa3 1,533K A1 768K A3 11,299K N/A Aa2 9.6% Aa3 1.4% A1 10.0% A3 5.0% N/A 73.9% Total: 100.0% Moody's Underlying Rating 695K A+ 635K A 232K A13,723K N/A A+ 4.5% A 4.2% A- 1.5% N/A 89.8% Total: 100.0% S&P Underlying Rating 689K AAA 10,415K AA 4,181K A AAA 4.5% AA 68.1% A 27.4% Total: 100.0% Moody/S&P Composite Rating weighting based on Book Value of 15,285,118 * Denotes Tax Equivalent Yield (TEY) where applicable. Individual Municipal Ratings are as of 2/28/2017, unless recently purchased. * D/A% = Debt to Assesed Ratio; DC = Debt Coverage | Per Cap = Per Captia Debt; Covnt = Rate Covenant 4/13/2017 6:43:56AM - FSG / SAMP The Baker Group Software Solutions, Inc. - APMTM Although the information in this report has been obtained from sources believed to be reliable, its accuracy cannot be guaranteed. ADVANCED PORTFOLIO MONITORTM 26 26 Balances ($000's) Page 1 of 1 12/31/2019 Book Value % of Book TA **Rate Sensitive < 1 Year *Book Yield/ Rate *Reinv. Rate *12 Mo. Proj. Yield/Rate Avg. Life Effective Duration Effective Convexity Full Indx. Rate / Total is % of Segment Fixed Var. Non Int. Summary ALCO - Asset/Liability Mix Sample $20,414 4.16 46.55 53.45 46.55 0.97 0.04 0.01 0.00 Cash & Due 0.97 0.97 / 0.97 $172,210 35.10 100.65 (0.65) 14.56 2.81 4.60 3.55 (0.51) Investments j 2.81 2.64 / 0.00 (Includes MTM) $4,500 0.92 100.00 100.00 1.63 0.04 0.04 0.00 Funds Sold 2.13 2.13 / 2.13 $276,700 56.39 56.28 45.26 (1.53) 53.28 5.20 2.59 1.96 (0.22) Loans 5.37 5.47 / 5.76 $6,511 1.33 100.00 2.49 12.63 0.00 0.00 Other Earning 2.49 2.49 / 0.00 $10,358 2.11 100.00 Non-Earning $490,693 3.24 Total 68.38 28.37 100.00 38.01 4.17 3.27 2.36 (0.31) Assets 4.28 4.28 / 5.31 $276,064 56.26 66.70 33.30 12.02 0.53 7.66 4.48 0.54 Non-Maturing Deposits 0.53 0.53 / 0.53 $92,498 18.85 99.44 0.56 0.00 82.54 0.84 0.70 0.65 (0.04) Certificates of Deposit 0.84 0.81 / 0.70 $37,721 7.69 100.00 68.68 1.09 0.97 0.93 (0.02) Jumbo CDs 1.08 1.05 / 0.00 $28,250 5.76 95.58 4.42 46.90 2.06 1.95 1.89 0.03 Borrowed Funds 2.04 1.86 / 1.88 Other Paying $6,724 1.37 100.00 Non-Paying $441,257 22.36 Total 35.51 42.13 89.93 33.70 0.80 5.15 3.14 0.33 Liabilities 0.80 0.77 / 0.54 10.07 $49,436 (0.60) (0.46) Total Equity Capital 100.00 $490,693 Total Liab & Capital Liability Mix Asset Mix Liquidity Ratios Constant Benchmark ALCO Dependency Ratio Liquid Assets / TA Ratio is outside benchmark. P < 750.00% < 100.00% < 50.00% < 20.00% > 10.00% < 35.00% < 300.00% 42.39 68.11 559.71 48.04 6.31 10.19 7.69 Loans / Assets 56.39 Investments / Deposits Loans / Deposits Loans / Capital Net Borrowed Funds / Capital < 75.00% Available Line of Credit $90,500 56.39 Loan 35.10 Inv 4.16 Cash 2.11 Non-Earn 1.33 Other Earn 0.92 Others 56.26 NMD 18.85 CDs 10.07 Equity 7.69 J CDs 5.76 Borrow 1.37 Others Reliance on Wholesale Funding 9.14 < 30.00% The smallest 2% of all categories will be grouped into an 'Others' category. Jumbo CDs / TA Note: Values are rounded before printing, but full precision values are used in all calculations. * Yields/Rates are reported on EA & PL. Investments using Accounting yield. j (Ver 4.0 R7) Copyrighted 1994 - 2020 1/29/2020 3:39:46PM - SAMPLE / SMB1218 The Baker Group Software Solutions, Inc. - IRRMTM Although the information in this report has been obtained from sources believed to be reliable, its accuracy cannot be guaranteed. 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Members of our Bowles Rice Banking Team are consistently recognized for their experience and depth by respected peer review organizations, including Chambers USA, Martindale-Hubbell, U.S. News & World Report’s Best Law Firms, Best Lawyers and Super Lawyers. In addition to our core Banking Team, nearly 50 other Bowles Rice lawyers regularly assist banks across our region with human resources and employment issues, litigation and disputes, real estate, government relations, trusts and estates, executive compensation, and employee benefits. For more information about the Bowles Rice Banking Team, contact Sandy Murphy at (304) 347-1131. | 1-855-977-8727 Responsible Attorney: Marc Monteleone • 600 Quarrier Street • Charleston, WV 25301 CHARLESTON, WV • MARTINSBURG, WV • MORGANTOWN, WV • PARKERSBURG, WV • SOUTHPOINTE, PA • WINCHESTER, VA The Bowles Rice Banking Team Experienced. Respected. Recognized. Mike Proctor Drew Proudfoot Amy Tawney Ben Thomas Sandy Murphy Floyd Boone Julia Chincheck Elizabeth Frame Follow us on Twitter @BowlesRice | @bowlesbanklaw | @creditors_law

8 CONTENTS ©2022 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 A Message from the Chief Executive: 2022 Young Banker of the Year Award By Sally Cline 8 A Conversation with EJ Hassan – 2022 West Virginia Young Banker of the Year 10 2022 Young Banker of the Year Award Nominees 15 Are Your Borrowers Getting What They Paid For? By Michelle Walker, Investors Title Insurance Company 16 Student Loans: Stressors and Pitfalls as Repayments Begin and CFPB Actions Against Alleged Fraudulent Conduct By Angela L. Beblo, Spilman Thomas & Battle, PLLC 20 CECL is Finally Here What to Know as We Approach Implementation By Kelly Shafer, Suttle & Stalnaker, PLLC 24 The Society of Bank Executives: The Power of Peer Networks By Dr. Paul Godfrey, BYU Marriott School of Business 26 I Said, “Stop!” ... or at Least I Thought I Did Borrower Complaint Letters That Trigger a Duty to Respond By Russell Jessee and Sarah Ellis, Steptoe & Johnson, PLLC 30 The Educated 3(16) Fiduciary By Richard Rausser, Pentegra 32 Crypto-Related Activities Ask Before You Leap By Mark Mangano, Jackson Kelly, PLLC 16 4 West Virginia Banker

A MESSAGE FROM THE CHIEF EXECUTIVE: By Sally Cline As bankers, we know and understand that a career in banking continues to be one of the most challenging, competitive and rewarding careers in the corporate world. Moreover, our industry covers a diverse collection of job positions that include nearly every skill set, experience level, and career goal. What is so exciting about our industry is that banking is constantly changing and evolving. Today’s banking environment is not what it was 20 years ago, and it will not be the environment of the future. From a talent management perspective, the workforce is transforming too. Baby boomers are beginning to retire in increasing numbers, and Generation Xers are moving into senior management positions. The next group, Generation Y or millennials, are now far enough in their careers to have gained some meaningful experience, with a number having been identified as up-and-coming leaders. In order to preserve West Virginia’s existing network of banks, it is imperative that we cultivate the next generation of bank leaders. As announced late last year, the Future Leaders Council presented to Association leadership an idea to recognize high-potential bankers under the age of 40 through a Young Banker of the Year Award. WVBankers received nine nominations from six-member banks. Each of the nominees is impressive and has clearly demonstrated a deep commitment to his/her organization, the industry and the local community. I am pleased to announce that the WVBankers Board of Directors, through a blind selection process, selected Elisha “E.J.” Hassan, AVP and Senior Portfolio Manager at United Bank, as our inaugural Young Banker of the Year. He, along with his fellow nominees, exemplifies what it means to be a banker. Congratulations to all the nominees for this special recognition. With your enthusiasm and determination, the future of banking looks bright. I would also like to congratulate United Bank, as well as the other banks that participated in our Young Banker of the Year initiative, for creating an environment that allows and encourages employees to grow and develop. Talent and Leadership Development programs are integral to that process. If your bank does not offer its own internal training program, please look to the offerings at WVBankers. Continued on page 6 2022 Young Banker of the Year Award Pub. 13 2022 I Issue 2 Summer 5 West Virginia Banker

Lenders...Start Your Engines BBKY’s loan participation program can help eliminate any legal lending limit, Regulation O, or concentration issues that your bank may encounter. We canalsohelpyour bank accelerate your loan portfolio by offering high quality commercial loan participation opportunities. CONTACT: David Fletcher, Vice President Email: Phone: 304-389-4431 A priority of WVBankers is to help you, your employees, and your institution thrive so that your customers and communities will too. We offer workforce training built for today but focused on tomorrow. You and your bank’s employees can reskill, upskill, and hone your expertise with our wide range of in-person and virtual training and events. Our training and education offerings span the many diverse roles and opportunities today's world of banking offers. I encourage you to explore our options for various areas of focus. From an entry-level perspective, WVBankers has partnered with ABA to offer basic facilitated banking courses such as Banking Fundamentals, Money and Banking, and General Accounting. Once an employee has advanced to a first-level officer, they are encouraged to attend the West Virginia School of Banking, a one-week program held in May of each year. This educational program has been around for 75 years, and it is constantly updated to provide relevant and timely content. The challenging curriculum is taught by a faculty with excellent teaching credentials and vast experience. Students obtain a broad and fundamental understanding of significant banking, economic, and monetary issues, as well as a better understanding of day-to-day banking operations. Twenty-seven students graduated from the two-year program this spring. In 2001, we added a third year for returning students to take graduate-level classes with a more challenging curriculum as well as advanced bank simulation. Training then progresses to the Emerging Leaders Forum and the Graduate School of Banking at LSU. As bankers, you also recognize that challenges lie in developing the key leadership requirements for institutional success and in the navigation of the managerial challenges that lie ahead. Because we know that success as an institution requires thoughtful, forward-looking leadership, I am pleased to announce that WVBankers has joined with other State Bankers Associations across the country to offer the Society of Bank Executives, which provides a platform by which your executive team can actively engage with peers outside your market to address real-world challenges. Included in this magazine is an article submitted by the Academic Director of the Society, Dr. Paul Godfrey, where you can learn more about this empowering network. Training programs that focus on talented younger employees in the organization are important, but none of us should become complacent in our jobs. We each have an obligation to grow and learn. The future of our industry depends on it.  Continued from page 5 In order to preserve West Virginia’s existing network of banks, it is imperative that we cultivate the next generation of bank leaders. 6 West Virginia Banker

What contribution have you made in your career that is the most meaningful to you? The most meaningful contribution I have made in my career was the time spent helping customers navigate the pandemic. In a time of extreme uncertainty that was felt across the entire state, it was an extremely humbling and rewarding experience to play the role of financial first responder. We worked around the clock to process PPP loans and provide other assistance for customers who were concerned about their financial future and ability to continue operating their businesses and paying their employees. What is your greatest career accomplishment? My greatest career accomplishment is leading teams responsible for managing the PPP process throughout the bank. The process was new to everyone and became even more difficult to navigate as additional funding rounds were open concurrently with forgiveness processing. Additionally, United Bank was in a unique situation. We were onboarding customers and lenders associated with two mergers and expanding the bank into the new geographical territory. Our team provided consistent guidance and direction to lenders across the entire footprint and worked within various specialized areas responsible for efficient processing. We processed more than 100 paper applications daily at times and eliminated any application or technical issues that might stand in the way of a borrower and the funding they needed. A Conversation with EJ Hassan – 2022 West Virginia Young Banker of the Year 8 West Virginia Banker

I am so grateful for the trust that the bank put in me to help lead us through this program. It allowed me to truly impact our entire business while building connections and relationships with PPP team members and lending teams across West Virginia and the bank’s footprint. What motivates you to work? I am motivated to work, specifically in banking, because our industry is the financial backbone of the communities we serve. As part of the commercial lending group, I understand that my team’s work helps to drive economic activity within the Huntington market. I take ownership of that responsibility when I come into the branch each day to work. What is your favorite thing about living in West Virginia? My favorite thing about West Virginia is its natural beauty. Time tends to move a bit slower here than in other parts of the country, giving West Virginia a unique, peaceful charm that makes it a great place to build a family and career. Who is the most influential person in your life, and how have they influenced you? Why has this person been so important to you? The two most influential people are my wife and mother. They are the most important women in my life. Each of them has always been there at critical points in my life, pushing me to be the best version of myself and allowing me to unlock my full potential. What is a fun fact about yourself? I love to camp! My wife, our two dogs and I have developed a true love for the outdoors and spend as many weekends as we can at our wonderful state parks here in West Virginia and other destinations across the east. What is some advice you would give your teenage self? The best advice I would give my teenage self would be to trust my gut and be confident. As I have continued to grow, have more opportunities, and work with many great entrepreneurs in Huntington, I have learned that success is truly defined by the individual and that we set our own limits for ourselves. Those who continue to push outside their comfort zone with confidence understand that failure is just an opportunity to learn. It is OK to trust yourself and learn from your mistakes and successes! What are you most excited about for the future? I am most excited about the opportunity to be in West Virginia, continuing to build my career and family. I am grateful to have an incredible company behind me in United that has challenged me to be my best and provided me opportunities to build on my skills and become a solid banker and community partner. I can’t wait to continue to build on these skills in the place I’ve called home for nearly all of my life. United is a strong, growing company that has seen my potential for the past five-and-a-half years. The sky is the limit!  The most meaningful contribution I have made in my career was the time spent helping customers navigate the pandemic. In a time of extreme uncertainty that was felt across the entire state, it was an extremely humbling and rewarding experience to play the role of financial first responder. We worked around the clock to process PPP loans and provide other assistance for customers who were concerned about their financial future and ability to continue operating their businesses and paying their employees. Pub. 13 2022 I Issue 2 Summer 9 West Virginia Banker

2022 Young Banker of the Year Award Nominees 10 West Virginia Banker

Continued on page 12 Gabrielle “Gabby” Newcomer FNB Bank Residential Lending Officer Years in Banking: 15 Gabby was brought on board at FNB Bank on Jan. 5, 2015, with the goal of resurrecting our consumer Mortgage Services department. At this point in time, this business segment was a major challenge for our bank. Gabby had previously worked in community banking and also had experience with a compliance consulting firm. Fast forward seven years later and Gabby holds the title of Residential Lending Officer. In her role, she manages a team of four, which operate under the strictest regulatory environment. Her team and coworkers look up to her for her diligence, knowledge, efficiency and discernment. Under Gabby’s leadership, our consumer mortgage portfolio has grown from $44 million to $88 million in seven years, while also managing our secondary market avenues. FNB Bank’s relationships with realtors, attorneys and home builders are as strong as ever through the work being performed by FNB’s Mortgage Services. Gabby does all of this with a positive attitude and a pleasant personality that our staff, service providers and customers have come to know and expect. Gabby has completed the WVBA Future Leaders Program and serves locally on the Hampshire County Community Foundation and the Calvary Christian Academy PTA. Gabby is the mother of Charlotte & Emma, and the wife of a full-time farmer, Luke, in Mineral County, WV. What is your greatest career accomplishment? I believe my greatest career accomplishment is the FNB Mortgage Department I manage. When I came on board at FNB, Senior Management gave me the opportunity to build the department and create a team in the way I envisioned would create success. I have worked hard over the last seven years to create this envisioned success and my work has paid off. My department is so successful because our customers and community know we provide efficient and unmatched customer service. Our federal exams and auditor reports also prove we are compliant with the stringent rules and regulations that govern mortgage lending. I believe being able to provide such a high level of efficiency and customer service while also staying compliant with the regulatory requirements speaks volumes. Kim Zwier Fifth Third Bank Vice President Business Relationship Manager Years in Banking: 14 Excellence, drive, and dedication define Kim in her day-to-day performance to exceed banking and personal goals. While Zwier is a graduate of Ohio State University, with a Bachelor of Science in Animal Science with a minor in Agribusiness, she has lived and worked in West Virginia for most of her career. Her banking career spans over 14 years, holding a broad range of positions. Currently, Zwier is among the top 10% of business banking relationship managers in the company. In July 2012, Kim started at Fifth Third Bank in Charleston, WV, where she continues her banking career today and she is a top performer. Kim was a 2013 President’s Circle Winner, and processed the highest number of PPP loans for her customers, including assisting other Fifth Third regions. Kim’s dedication to the West Virginia community is a priority to her. She is a part of several community organizations and holds volunteer positions in the Charleston Lions Club, United Way, Generation Charleston, YMCA, Education Elevators, Charleston Rotary and Buckskin Council (Boy Scouts). Kim is a 2019 graduate of WV Banker’s Association Emerging Leaders, and 2013 graduate of Leadership Kanawha Valley. Kim is viewed by management, as well as her colleagues, as a “force of nature” in the banking and financial services business. What motivates you to work? I really enjoy helping people, whether it’s helping someone with a loan to start their dream business or connecting/ referring other business partners. When my clients value a strong/good/true business banking relationship it also really helps me want to work hard for them to exceed their needs and expectations. Sometimes, certain things with banking have a process and can take time and I enjoy walking clients through those steps to meet their goals. For example, sometimes I can’t say yes on day one for a loan request, but I can provide them with the right steps and information needed to get to a “yes” in the future. I’m also motivated because I’m competitive, enjoy a challenge, and enjoy winning. Pub. 13 2022 I Issue 2 Summer 11 West Virginia Banker

Continued from page 11 Kayla Addison City National Bank Vice President/Dual Branch Manager Years in Banking: 15 Kayla began her career at City National Bank in 2007 as an IRA specialist in the operations center and worked her way up to her current position of Vice President/Branch Manager. Kayla is a graduate of West Virginia State University and the West Virginia School of Banking. She also attended WVBA Branch Management School. Kayla is the treasurer for the Kanawha City Community Association. She is also involved with various Morgan Hodge City National Bank VP, Regional Manager, Allegheny East Region Years in Banking: 9 Accountability, passion and community are just a few words most often used to describe Morgan Hodge. With nine years of experience in the banking industry, Morgan has established herself as a leader among her peers and a trusted advisor to her customers. In her current role at City National Bank, Morgan leads strategic business development and customer engagement while guiding the success of a high-performing team. Morgan’s success comes through her effective communication skills and the determination to remain customer-centric. Those qualities earned her the respect of clients and peers alike. Morgan has built and developed a successful professional career. She has increased her span of responsibility from a Personal Banker to Regional Manager with oversight of seven bank branches totaling assets of $98MM. She continues to take on additional roles within the bank, and in the Lewisburg community, to expand her experience and acumen. Advice I would give my teenage self? You need to trust yourself before others can trust you – trust has been a key component in my career. Forget what people think about you; all that matters is what you think about yourself. Whatever you decide to do in life, do it because it makes YOU happy. Jennifer Moore City National Bank Vice President, Branch Manager Years In Banking: 14 Jen is a dual branch manager, leading our Hurricane and Winfield offices since 2012. She has been awarded branch of the year (top branch out of 95 offices) and consistently finishes in the top 10. In 2020, both her branches finished in the top 10 of our organization, a feat no other dual role manager has accomplished. She has coached two of our company’s top loan producers and groomed them both for their current manager roles. Jen is a graduate of Marshall University and the West Virginia School of Banking. She is an active member of our local Chamber of Commerce's Network of Women and Generation Putnam. You can often find Jen donating time for our local United Way and community service initiatives throughout Putnam County. In your career, what is your greatest accomplishment that is the most meaningful to you? I’m finally at a point in my career where I’m getting to watch the seeds I’ve nurtured grow. I’m getting to watch employees I’ve had on my team step into their own leadership roles. A company is only as good as its people and it’s rewarding to me to watch them flourish in their new roles. other non-profit organizations. Kayla is a wife and mother of two children. What motivates you to work? I am motivated by the relationships I have built throughout the years, both with customers and coworkers. Being in banking allows me to get to know people on such a personal level. I have customers who I have known now for more than a decade and consider my close friends. I have been able to celebrate retirements, weddings, and new babies with them, mourn with them when they experience the loss of a loved one, and help them make plans for their futures. I have built relationships with new bankers and had the opportunity to develop and encourage them. It’s one of my biggest sources of joy to watch their careers take off and celebrate their accomplishments. 12 West Virginia Banker

Joe Hager Summit Financial Group Chief Audit Executive and Chief Risk Officer Years in Banking: 6 Joseph Hager is the Chief Audit Executive and Chief Risk Officer at Summit Community Bank. With almost 20 years in financial, accounting, and professional services, Joe has established himself as a trusted leader and advisor not only at Summit, but in the entire West Virginia banking sector. Having served distinguished organizations such as PwC and Arnett Carbis Toothman, Joe holds both CPA and CGMA designations which have allowed him to not only deliver strategic analysis but excel at risk management and driving corporate audit and risk operations toward success and profitability. Who is the most influential person in your life, how have they influenced you, and how he or she is important? Recently, my mentor John Gianola passed away. He was a selfless leader, a visionary, and a driving force in my professional development. John saw my talents and abilities, even before I did, and pushed me to be a better person. His zeal for life was an inspiration to be passionate in any endeavor worth pursuing. Jesse Holston City National Bank Assistant VP – Digital Channels Manager Years in Banking: 9 Jesse is a life-long West Virginian. She was a National Scholar's Honor Society student at Sissonville High School and earned her Bachelor of Business Administration in Marketing with a minor in Communications from Marshall University. In her free time, Jesse can be found at the Winfield youth ball fields where she's served as a volunteer, coach, and board member. She is a strong supporter of the United Way of Central West Virginia, participating in its Day of Caring for many years. Jesse joined City in 2013 in the Electronic Banking area. Since then, she's been promoted regularly to her current role as Digital Channels and Credit Card Manager. In your career, what is your greatest accomplishment that is the most meaningful to you? In June 2020, we rolled out our new mobile banking app. This project is something I worked on for several years, and it felt great to finally make it available to our customers. The response we received was overwhelmingly positive, and it meant a lot to me that I was involved in something that truly benefited and was appreciated by our customers. Amy R. Bradlyn First Neighborhood Bank President/CEO Years in Banking: 7 Amy started as a PT teller 14 years ago while attending college. She returned to the bank full-time as a credit analyst in 2015. She became a lender and was named Chief Lending Officer in 2019 and was named President & CEO Jan. 1, 2022. Amy was appointed to our Board of Directors in March 2022. She is a graduate of the WV School of Banking and will graduate this June from the Graduate School of Banking at LSU. She is also a board member of the Wood County/Parkersburg Area Development Corporation. Pub. 13 2022 I Issue 2 Summer 13 West Virginia Banker

By Michelle Walker, Investors Title Insurance Company Are Your Borrowers Getting What They Paid For? As foreclosures resume after pauses due to the COVID-19 pandemic, a predictable uptick in lender title claims has followed. Spotting trends in these claims can help us identify common traps for the unwary. One recurring category of claim issues seen recently is an incomplete legal description that fails to include all of the parcels the parties intended to convey, often resulting in a significant encroachment or even lack of title to the parcel where the intended residence is located. Of particular note for mortgage lenders, a lender’s title policy may not provide coverage for failure to receive a valid lien on an intended parcel. The Covered Risks set forth in the 2006 ALTA Loan Policy provide coverage for defects in title to the estate or interest described in Schedule A as of the date of the policy. Schedule A typically provides that the policy insures a mortgage encumbering a fee simple interest in the “Land,” which is defined as the land described in Schedule A and affixed improvements that by law constitute real property. The definition of “Land” goes on to explicitly state that “the term ‘Land’ does not include any property beyond the lines of the area described in Schedule A.” This framework can result in a lack of coverage for failure to receive a lien on an intended parcel if the lender did, in fact receive a valid lien on the land identified in Schedule A of the policy. Seeing how things can go wrong gives us insight into strategies for avoiding these issues on the front end. A closer should be sure to identify the source of title for all parcels listed in the purchase agreement. In many claims, a purchase agreement (or even MLS listing) will identify two or more parcels by reference to the county’s tax identification number, but only the parcel containing the residence will be searched. While county geographic information systems (GIS) are not a substitute for a title search or professional land survey, they can be helpful in identifying the parcels intended to be conveyed and sometimes their source of title as well. Similarly, lenders should take care to confirm that the precise parcels listed in the purchase agreement are evaluated in the origination appraisal, then check the parcel information against the legal description contained in the mortgage to the extent possible. Attorneys should also confirm that the new conveyance deed includes a complete legal description derived from all deeds vesting title to the intended land in the seller. We often see tracts of land that have been created over time through acquisition of neighboring parcels. The seller may have even combined the parcels for tax purposes so that they are identified by one tax identification number. If the legal description is pulled from only the most recent deed into the seller, the borrowers and their mortgage lender may be missing title to a portion of the land intended to be purchased. While lack of title to an intended parcel can be addressed by obtaining a deed for the missing parcel, getting cooperation from a borrower to encumber a missing parcel may be challenging in a foreclosure context. If they become necessary, legal actions take time and may delay the foreclosure process. In the words of the namesake for the “Benjamins” changing hands in a real estate transaction, “an ounce of prevention is worth a pound of cure.”  As claims counsel, Michelle Walker identifies and resolves major claims for Investors Title. Prior to joining Investors Title, Ms. Walker was a bankruptcy and litigation attorney at Parry Tyndall White in Chapel Hill, North Carolina. Ms. Walker is a Board Certified Specialist in Business and Consumer Bankruptcy Law by the North Carolina State Bar Board of Legal Specialization. She has frequently served as a speaker on bankruptcy topics for legal practitioners and law students in continuing education and classroom settings. Pub. 13 2022 I Issue 2 Summer 15 West Virginia Banker

Student Loans: Stressors and Pitfalls as Repayments Begin and CFPB Actions Against Alleged Fraudulent Conduct By Angela L. Beblo, Spilman Thomas & Battle, PLLC On March 13, 2020, near the beginning of the pandemic in the U.S., the CARES Act included a pause for all federal student loans. Nearly 90 percent of student borrowers accepted “the option of pressing the pause button on their” student loans. Thus, the U.S. Department of Education ceased loan payments, applied a 0% interest rate, and stopped collection on defaulted loans (including garnishments). That pause has been extended repeatedly, and borrowers for certain student loans have not been required to make payments for nearly two years. [1] Despite the pandemic pause, the CFPB has actively been engaged in investigation and enforcement activity relating to student loans. Payments Resume As the deadline for payments to resume nears, many experts are sounding the alarm that borrowers are unprepared to restart payments on their student loans. A recent survey of 23,000 borrowers found that 93% of borrowers are “not prepared to resume payments” on their student loans.[2] “Even before the pandemic, the country’s outstanding student loan debt balance exceeded $1.7 trillion and posed a larger burden to households than credit card or auto debt. Roughly a quarter of borrowers, or 10 million people, were estimated to be in delinquency or default.”[3] According to the president of the Student Debt Crisis Center, “The ongoing pandemic combined with unprecedented inflation are huge obstacles for borrowers who are, by and large, not ready to resume payments, struggling to afford basic needs, and confused about their options moving forward.”[2] The Government Accountability Office report found an increased risk of delinquency for up to half of federal student loan borrowers as repayment begins.[3] Part of this increased risk results from outdated contact information, making communications about payments more difficult.[3] The good news is that “the amount due will be largely the same since interest on most federal student loans was suspended during the government’s payment pause.”[2] While borrowers are not facing increased student loan payments, borrowers are still facing rising inflation and an increased cost of living that occurred while payments were paused.[2] For those who cannot afford to restart payments, exploring options, including income-driven repayment plans, 16 West Virginia Banker

forbearance, or deferment, may help to address the impending restart of payments. This is important for a couple of reasons. First, given the potential for repayment problems, servicers should expect that a potentially large number of borrowers will be contacting servicers to discuss repayment terms, repayment programs, and other options. Servicers should review policies and procedures and prepare for a potential deluge of borrowers seeking information and assistance. Second, borrowers should ensure contact information is current and, if hardship may occur due to the upcoming payment restart, should proactively be prepared to contact their servicers for assistance, options, and, potentially, more time. CFPB Enforcement While the pause in federal student loan payments has occurred, the CFPB has actively been engaged in enforcement activity relating to student loan debt. Enacted in 2007, the Public Service Loan Forgiveness ("PSLF") program is a federal student loan forgiveness program for people devoted to careers in nonprofit and public organizations. The PSLF provides parameters for the cancellation of student loan debt if a borrower meets certain criteria relating to payments and years of service for a qualifying employer.[4] The loan program has proven complicated for borrowers to navigate, and several large student loan servicers recently left the program. Given the historical complaints about the PSLF program and the numerous current proposals on changes to the federal student loan programs and payments, it is no surprise that the CFPB has increased scrutiny of servicers regarding the PSLF program.[4] “Through its supervision of student loan servicers, the CFPB has found that servicers made deceptive statements to borrowers about their ability to become eligible for PSLF. When servicers fail to provide accurate and complete information, they mislead borrowers about their ability to benefit under PSLF, which can lead to tens of thousands of dollars in loan payments that should have been canceled.”[4] A new waiver program from the Department of Education addresses these issues. The CFPB has issued clear guidance that servicers are expected to comply with federal consumer financial protection laws while administering the new waivers. “The CFPB plans to prioritize student loan servicing oversight work in deploying its enforcement and supervision resources in the coming year with a specific focus on monitoring engagement with borrowers about PSLF and the PSLF Waiver.”[4] The CFPB is not focusing only on the servicing of student loans; it has also investigated student loan lending during the pandemic pause. In one case, the CFPB entered a consent order with a company that provided “income share agreements (ISAs) to finance postsecondary education.”[5] The companies used the ISA agreement in an attempt to circumvent disclosure requirements under Reg Z and TILA.[5] “The CFPB alleged that the financing companies misled students by characterizing ISAs as neither ‘credit’ nor ‘private education loans,’” when, in fact, the ISAs were “credit” requiring certain federal disclosures.[5] The CFPB has indicated clearly it will be focusing investigation and enforcement activity on student loans, and the servicing of student loans, for the foreseeable future. Servicers should routinely review announcements and bulletins from the CFPB on areas of focus, inquiry, or concern, then review policies and procedures to ensure compliance.  For those who cannot afford to restart payments, exploring options, including income-driven repayment plans, forbearance, or deferment, may help to address the impending restart of payments. Angela L. Beblo is a Counsel attorney based in Spilman's Charleston, West Virginia office. Her primary areas of practice are consumer finance and litigation. She can be reached at 304.340.3852 or 1. 2. 3. 4. 5. Pub. 13 2022 I Issue 2 Summer 17 West Virginia Banker

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CECL is Finally Here What to Know as We Approach Implementation By Kelly Shafer, Suttle & Stalnaker, PLLC The effective date for the current expected credit loss (CECL) standard is fast approaching for all financial institutions that have not yet implemented it. While most of us have been holding out hope for yet another extension, in November, the Financial Accounting Standards Board (FASB) all but guaranteed that CECL will move forward as planned with an effective date of Jan. 1, 2023, for non-public companies. This realization came after FASB denied a request for another two-year extension, indicating they no longer see the COVID-19 pandemic as a barrier to implementation. As we approach the January date, banks should be past the planning stage and well on the way to implementation. The following are a few practical considerations as we enter the home stretch: The Process Can Be Outsourced, Not the Responsibility Outsourced solutions have become increasingly popular, especially for smaller banks. A few years ago, discussions centered on whether to develop a CECL model internally or purchase third-party software to handle the leg work. 20 West Virginia Banker

Continued on page 22 As more software models hit the market, it became clear that the affordability and ease of use made this option preferable to the time and effort it would take to develop an in-house model. While software can automate much of the process, management still bears the ultimate responsibility for the estimate. Key duties of management include evaluating and setting risk characteristics of the bank’s loan pools, developing qualitative factors and forecasts, understanding the methodology used, and identifying how changes to inputs impact the estimate. Good software can make the process easier, but it can’t replace your knowledge about your bank, your customers, and your risks. Another important consideration when outsourcing is the control environment of the vendor providing the software. A service organization control (SOC) audit report can be obtained from vendors providing CECL software and reviewed for areas of concern. Items to look for include issues with vendor controls that may materially impact the CECL calculation and complementary user controls identified in the report. Complimentary user controls are those the vendor recommends the bank has in place to properly use their software. If the vendor’s SOC report identifies significant control deficiencies, it may be necessary to reconsider the reliability of the vendor’s model. Conduct Trial Runs If your bank is not yet conducting trial runs of your CECL model, now is the time to start. It is best practice to run the ALLL and CECL models concurrently for at least two quarters to assess the impact CECL will have on the allowance leading up to implementation. This will help identify weaknesses and refine sensitivities in the calculation. Many banks may need to adjust their approach based on the initial results of the calculation. Be Ready on Day One The implementation date for CECL is January 1, and the impact of implementation should be reported on the first-quarter call report. Banks will need to run the CECL calculation Jan. 1, 2023. The result of the calculation is compared to the bank’s ALLL calculation Dec. 31, 2022, with As we approach the January date, banks should be past the planning stage and well on the way to implementation. Pub. 13 2022 I Issue 2 Summer 21 West Virginia Banker

Unlike the incurred loss model, the CECL model does not specify a minimum threshold for recognition of an allowance. Therefore, banks will need to evaluate expected credit losses on these assets even if there is a low risk of loss. In some cases, the resulting loss may be zero. If you would like additional information on CECL implementation please contact Kelly Shafer at or 304-343-4126. Continued from page 21 the difference recorded directly to retained earnings as a cumulative-effect adjustment for the adoption of CECL. After this initial adjustment to retained earnings, future changes in the CECL estimate will be recorded through the income statement in the same manner as the ALLL. It is also important for banks to work with their auditor on the front end to identify information required for financial statement disclosure under the new CECL requirements. New disclosure information can be accumulated throughout the year to ensure adequate data is available when the time comes to prepare financial statements. Document All Components The CECL calculation is comprised of three components: historical loss rate, qualitative factors, and reasonable and supportable forecasts. While the historical loss rate is the base for the calculation, qualitative factors and forecasts are equally as important. FASB has identified qualitative adjustments and forecasts as significant judgments in the calculation that require proper support and documentation. They have also made it clear that there is no cookie-cutter approach to CECL, affording banks a broad latitude in how they develop and document these two components. While this flexibility allows banks to tailor the calculation to their own risks, the lack of a standard approach can make it difficult to evaluate these factors. Auditors and regulators will hone in on these specific areas. Expect questions as they work through the calculation and gain an understanding of your methodology. The key is robust documentation and the ability to back up each element of the calculation. CECL Isn’t Only About Loans For banks, the primary focus has been the impact on the loan allowance calculation but CECL also applies to a number of other financial instruments carried at amortized cost, including: • Held-to-maturity debt securities • Trade receivables • Receivables related to repurchase agreements • Finance leases • Off-balance sheet credit exposures such as loan commitments, standby letters of credit, and financial guarantees If your bank holds these assets don’t be caught unprepared. Unlike the incurred loss model, the CECL model does not specify a minimum threshold for recognition of an allowance. Therefore, banks will need to evaluate expected credit losses on these assets even if there is a low risk of loss. In some cases, the resulting loss may be zero. While the CECL model does not apply to available-for-sale debt securities, the standard made targeted changes to existing accounting for available-for-sale debt securities that are impaired. Most notably, removing the “other-thantemporary” impairment concept and requiring the use of an allowance when security is impaired as opposed to permanently writing down the cost basis. Expect expanded financial statement disclosures in this area but no significant change in accounting for available-for-sale debt securities unless specific securities are identified as impaired.  22 West Virginia Banker