Location and Market Area
The Banks market area primarily consists of Region 2000, which encompasses the seven jurisdictions of the Town of Altavista, Amherst
County, Appomattox County, the Town of Bedford, Bedford County, Campbell County, and the City of Lynchburg. Region 2000 supports a diverse, well-rounded economy. U.S. Routes 29, 60, 221, 460 and 501 and State Routes 24 and 40 all pass through the
trade area and provide efficient access to other regions of the state. Regional airport service and rail service provide additional transportation channels.
Total population in the market area equals approximately 252,000. According to the 2010 U.S. Census (the last census available), in 2010 the
populations of the localities in the Region 2000 market area were approximately as follows: City of Lynchburg 76,000; Amherst County 32,000; Appomattox County 15,000; Bedford County (including the Town of Bedford) 74,000;
Campbell County (including the Town of Altavista) 55,000. The area is serviced by one daily newspaper and a number of radio and television stations providing diverse media outlets. Median family income in Region 2000 has risen over the past
Region 2000 has a broad range of services, light industry, and manufacturing plants. Principal service, industrial, research
and development employers include: BWX Technologies, Inc. (nuclear fuel); Framatome (nuclear services); Centra Health, Inc. (health care services); C.B. Fleet, Inc. (medical supplies); Pacific Life (life insurance and other financial products); Frito-Lay, Inc. (snack foods); Griffin Pipe Products Co. (ductile iron pipe); as well as six colleges and universities including Randolph College, Sweet Briar College, Liberty University, and the University of
In recent years we have expanded into Charlottesville, Virginia (north of Region 2000), Roanoke, Virginia (west of Region
2000), Harrisonburg, Virginia (northwest of Region 2000), Appomattox (east of Region 2000), Blacksburg (southwest of Region 2000), Lexington, Virginia (northwest of Region 2000), and Rustburg, Virginia (south of Region 2000).
Even with this expansion outside of Region 2000, the Bank continues to consider its primary market to be Region 2000.
Retail and Commercial
The banking business is highly competitive. We compete with other commercial banks, savings institutions, credit unions,
financial technology companies, mortgage banking firms, consumer finance companies, securities brokerage firms, insurance companies, and other financial institutions operating in the Region 2000 market area and elsewhere. Many of our nonbank
competitors are not subject to the same extensive federal regulations that govern federally-insured banks and state regulations governing state-chartered banks. As a result, such nonbank competitors may have certain advantages over the Bank in
providing certain services.
Virginia law permits statewide branching by banks. Consequently, the Banks market area is a highly
competitive, highly branched banking market. Competition in the market area for loans to individuals, small businesses, and professional concerns, the Banks target market, is keen, and pricing is important. Most of the Banks competitors
have substantially greater resources and lending limits than the Bank and offer certain services, such as extensive and established branch networks and trust services, that the Bank is not currently providing. Deposit competition is strong and comes
from institutions in the market, U.S. Government securities, private issuers of debt obligations and suppliers of other investment alternatives for depositors, among other sources. As a result, the Bank has paid, and may in the future pay,
above-market rates to attract deposits.
The adoption of legislation permitting nationwide interstate banking and branching and the use of
financial holding companies may also increase competition in the Banks market area. See Supervision and Regulation of Financial below.