Business Journal by Daily News-Record

A Byrd Newspapers Publication

Volume 18, No. 7, May 30, 2017

Behind The Wheel And Ahead Of The Curve

o Spotlight

Driving r Behavio Page 7

Ways your Organization can EHQHĂ&#x20AC;W IURP WKH -08 0%$

Inquire Today!

JMU.EDU/MBA or mba@jmu.edu

Save your employees money by establishing an academic partnership with the JMU MBA Program. Make the JMU MBA a preferred program for employees that want to earn an MBA, and your employees will receive a tuition discount on our already competitively-priced program.

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, May 30, 2017

Inside This Issue Focus Section: Insurance Innovation The Shenandoah Valley Business Journal is a monthly publication of Rockingham Publishing Company, Inc., 231 S. Liberty St., Harrisonburg, VA 22801.

■ So You Think You Can Drive..................................Page 6

Other Business News ■ ViaAir Performance ‘Exceptional’.......................Page 5

Editorial Staff

■ Local Ledger..................................................Page 10

Editor and General Manager: Peter S. Yates

By mail: Shenandoah Valley Business Journal P.O. Box 193 Harrisonburg, VA 22803 By email: svbjnews@dnronline.com By fax: 433-9112 By phone: 574-6267 (news) 574-6229 (ads)

Columns

Staff / Contributing Writers: Vic Bradshaw, Preston Knight

■ Financial Focus with Kathy Armentrout..........Page 3

On The Cover: Nikki Fox / DN-R Kevin Iwanicki, a personal lines underwriting manager at the Rockingham Group, views his driving habits recorded online with the SmartWheelDrive Program.

Contributing Photographers: Nikki Fox

HARRISONBURG — Matthew Smith, a driver for Wal-Mart Transportation in Mount Crawford, received the 2017 Virginia State Truck Driver of the Year award Wednesday during the Virginia Trucking Association’s annual safety and human resources seminar in Staunton, according to a news release. Smith Smith has been with the company for more than 18 years and is approaching 2.5 million safe miles. The local Wal-Mart distribution center was recognized with the 2017 Safety Award for having the safest private

■ City’s Olive Garden Opens For Business............Page 11

Managing Editor: Jerry Blair

Smith, Wal-Mart Drivers Awarded

Harrisonburg, Va.

fleet in Virginia.

Union Bank Starts Strong In 2017 — Vic Bradshaw

Miller Joins Park View Mortgage HARRISONBURG — Park View Federal Credit Union has added Chris Miller to its staff as a mortgage loan advisor. Miller has experience in financial service, having previously specialized in lending and branch leadership. The Eastern MenMiller nonite University graduate works out of Park View’s branch in Harmony Square. See MOVERS, Page 3

HARRISONBURG — Union Bankshares Corp. (NASDAQ: UBSH) opened 2017 with a strong first quarter, according to financial results released April 19. The Richmond-based parent company of Union Bank & Trust netted $19.1 million, or 44 cents a share, for the quarter that ended March 31. That topped its performance in the first quarter of 2016 of $16.9 million in net income, or 38 cents a share. Revenue growth in the community bank segment keyed the increase. Compared to the first three months of 2016, loans held for investment grew $773.5 million, or 13.4 percent annualized, and period-end deposits were up 668.2 million, or 11.2 percent. Union Bank & Trust has 113 branches in Virginia, including two in Harrisonburg and one in Grottoes. Union Bankshares also operates Union Mortgage Group Inc., Union Insurance

Group LLC and investment advisory firm Old Dominion Capital Management Inc. — Vic Bradshaw

Bank Of The James Earnings Soften HARRISONBURG — Bank of the James Financial Group Inc. (NASDAQ: BOTJ) turned a $760,000 profit in the first quarter, but the performance failed to match its net income for the same period in 2016. The Lynchburg company, which operates Bank of the James branches in central and western Virginia, including one in Harrisonburg, reported on April 21 that it earned $887,000, or 20 cents per diluted share, in the first three months of last year. This year’s first-quarter earnings amount to 17 cents per diluted share. Robert Chapman III, the bank’s See SCENE, Page 3

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, May 30, 2017

Don’t Let Your Investments Take A Vacation

t’s summer again — time for many of us to take a break and possibly hit the open road. But even if you go on vacation, you won’t want your investments to do the same — in summertime or any other season. How can you help make sure your portfolio continues to work hard for you all year long? Here are a few suggestions: ■ Avoid owning too many “low-growth” investments. As you know, different investments have different characteristics and can help you in different ways. For example, you typically own stocks because you want them to grow in value so that you can eventually sell them for a profit. Other investments, such as certificates of deposit, provide you with a regular source of income and stability of principal — two valuable contributions to your portfolio. However, investments like CDs don’t offer much in the way of growth. So, if you own too many of them, you might be slowing your progress toward your important financial goals, such as a comfortable retirement. You can maximize the productivity of your portfolio by owning a variety of in-

vestments — domestic stocks, international stocks, corporate bonds, U.S. Treasury securities, CDs and more. How much of each investment should you own? The answer depends on a variety of factors, including your age, income, risk tolerance, family situation and specific objectives. Over time, your ideal investment mix may change, but you’ll likely need at least some growth potential at every stage of your life. ■ Don’t let your portfolio go “unsupervised.” Your investment portfolio can be subject to “drift” if left alone for extended time periods. In fact, without your making any moves at all, your portfolio can move in directions that may not be favorable to you. Suppose you think your holdings should be made up of 70 percent stocks, but due to strong gains, your stocks now make up 80 percent of your portfolio. This development could lead to a risk level that feels uncomfortably high to you. That’s why you should review your portfolio at least once a year, possibly with the help of a financial professional, to check your progress and make adjustments as needed.

Financial Focus Kathy Armentrout

■ Don’t stop at the nearest “resting place.” Some people hope that if they can get that one “winner,” they will triumph in the investment arena. But the ability to “get rich quick” is much more of a myth than a reality. True investment success typically requires patience, persistence and the resilience to continue investing even during market downturns. In other words, investing is a long-term endeavor, and you need a portfolio that reflects this reality. The investment moves you make today may pay off for you decades from now. You must establish your

goals and keep them constantly in mind as you invest. And you will never really reach the end of your investment journey, because you’ll need to make choices and manage your portfolio throughout your retirement years. Hopefully, you will enjoy a pleasant vacation sometime this summer. But your investment portfolio shouldn’t take time off. This article was written by Edward Jones for use by Kathy Armentrout, an Edward Jones financial adviser at 560 Neff. Ave., Suite 100, Harrisonburg; 540-574-1013.

Pendleton Bank CEO Visits White House Earnings Decline Attributed To Growth Movers

FROM PAGE 2

Park View is a nonprofit, member-owned cooperative that provides a full range of financial services. It operates two branches in Harrisonburg and one each in Broadway and Dayton. — Vic Bradshaw

Loving, Bankers Meet Trump HARRISONBURG — Bill Loving, president and CEO of Pendleton Community Bank, was among a group of more than 100 officials with the Independent Community Bankers of America that met with President Donald Trump and top administration officials at the White House earlier this year. The meeting was part of the 2017 ICBA Capital Summit. Members of the organi-

zation’s executive committee, board of directors, federal delegate board, and policy committees attended. Trump told the bankers his administration is focused on relieving regulatory burdens to help community banks lend more money to small businesses. Based in Franklin, W.Va., Pendleton Community Bank operates six bank branches, including one in downtown Harrisonburg and one in Rockingham County, west of the city. — Vic Bradshaw

Familiar Voice Leaves Radio HARRISONBURG — Charles Graves has retired after 44 years of service with WSVA radio. His last day was Friday, according to See MOVERS, Page 4

Scene

FROM PAGE 2

president and CEO, attributed the earnings decline to expenses tied to expanding Bank of the James’ market reach, including staff increases. Interest income grew to $5.51 million in the first quarter, up 5.2 percent over the $5.24 million earned in the first three months of 2016. Total loans reached a company record of $466.24 million as of March 31, an increase of $32.54 million from the previous year. — Vic Bradshaw

First National Net Income Grows HARRISONBURG — First National Corp. (OTC: FXNC) reported net income grew 40 percent in the first quarter. The Strasburg-based parent compa-

ny of First Bank earned $1.5 million, or 31 cents per share, in the quarter that ended March 31. That easily topped the $1.1 million, or 22 cents a share, in net income posted a year earlier. In an earnings release, company officials attributed the financial improvements to a $366,000, or 6 percent, drop in noninterest expenses to $5.8 million and a $293,000, or 5 percent, boost in net interest income to $6 million. First National operates 14 bank branches in the Shenandoah Valley and Central Virginia, including two offices Woodstock and one each in Elkton, Mount Jackson and Strasburg, and a loan-production office in Harrisonburg. It also operates First Bank Wealth Management and First Bank See SCENE, Page 4

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, May 30, 2017

Harrisonburg, Va.

Started As Student At WMRA Station App Also Nominated For Webby Award Movers

FROM PAGE 3

a news release. Graves started in the industry while a student at Madison College, working at college station WMRA. He worked at WRAAAM in Luray before joining the WSVA staff in 1973. He produced commercials, worked as a disc jockey and was the afternoon weather reporter for WSVA and its sister stations in the Harrisonburg Radio Group at various times in his career. Off-air, Graves was the engineer for the broadcast of many high school and James Madison University athletic events. — Vic Bradshaw

Nielsen Builders Adds Two HARRISONBURG — Nielsen Builders has added two new staff members to its team. Heath Knott, who worked for the company as a carpenter helper for several summers while he attended

We Love Small Business! Start Smart Workshops— June 9: 1:00-3:00pm Harrisonburg June 20: 1:00-3:00pm Verona July 10: 2:00-4:00 Harrisonburg July 25: 11:00am-1:00pm Verona

Business Smarts— 7:30-9:00am, Harrisonburg June 9: Expand your Digital Presence July 14: Personal Planning Systems

Free Webinars— 12:15-1:15pm June 1: Getting Found on Google June 29: eCommerce Basics for Retail Find more Free Online Workshops at www.VirginiaSBDC.org/Training

Your SBDC in Your Town— Verona/Augusta Co: June 7 & 20 Lexington/Rockbridge: June 6 & 27 Page County Towns: By Appointment

See details of these & more at ValleySBDC.org Small Business Development Center

college, has been hired as a project engineer. He’ll work with project managers to help them complete projects. A Hinton native, he earned a bachelor’s degree in interdisciplinary studies from Virginia Tech and miKnott nored in building construction. Aaron Trovato is a new project manager for the Harrisonburg contractor. The Staunton resident will be Nielsen’s primary representative on projects and lead the construction effort. He has more than Trovato 10 years of commercial construction experience and earned a bachelor’s degree in construction management from Appalachian State University. — Vic Bradshaw

McClung Cos. Names President WAYNESBORO — McClung Cos., which provides graphic communications services, has named Adam Monk as its new president, according to an announcement from the company. Monk had been serving as the Waynesboro-based company’s vice president of operations. According to a statement from Monk Tom Trevillian, McClung chairman, Monk earned a degree in print management from West Virginia University Institute of Technology, and started his own IT service business before joining the company. Monk, who has worked five years for McClung, lives in Churchville. — Staff Reports

Scene

FROM PAGE 3

Financial Services. — Vic Bradshaw

Rosetta Stone App Wins Awards HARRISONBURG — Rosetta Stone Inc. (NYSE: RST) has received two awards and an award nomination for its language-learning software. The company announced in April that its mobile application, Learn Languages with Rosetta Stone, won the Platinum Award for Best Educational App in the winter contest held by BestMobileAppAwards.com. The app also was nominated for, but did not win, a Webby Award for Best Mobile Site & App in the Education & Reference category. The prestigious awards, which drew 13,000 entries from around the world, are sponsored by the International Academy of Digital Arts and Sciences. — Vic Bradshaw

Evans & Associates Posts Records HARRISONBURG — More than 100,000 records from past sales are now available at jeffreysevans.com, the revamped website of the Jeffrey S. Evans & Associates auction house. The Mount Crawford company announced in a news release this month that its new website had been launched. It includes a searchable database of sales records from 2004 to the present, with full descriptions and photos of each item. While the previous absentee bidding platform was maintained, features such as secure online payment of invoices have been added. No fees or registration are required to access the sales-record information. Evans & Associates is known for its expertise in Southern furniture, decorative art, and folk art, and early American glass and lighting. — Vic Bradshaw

Six Community Banks In Top 200 HARRISONBURG — Six banks with local operations ranked among the Top 200 publicly traded community banks and thrifts with less than $2 billion in assets, according

to financial services trade publication American Banker. F&M Bank Corp. (OTCQX: FMBM), the parent company of Farmers & Merchants Bank, was the highest-ranking bank headquartered in the region, placing 104th in the report that used return on average equity over three years as its guiding metric. The Timberville company’s average was 10.27 percent, just below the Top 200 average of 10.86 percent but well above the 6.73 percent return average for all qualifying banks. First National Corp. (NASDAQ-FXNC), the Strasburg-based parent company of First Bank, ranked 114th with a 10.03 percent return on average equity over three years. Ranking 182nd was Stanley-based Pioneer Bankshares (OTC: PNBI), Pioneer Bank’s parent company. Its three-year average return rate was 9.05 percent. Among other banks in the Harrisonburg-Rockingham County market, Lebanon-based First Bancorp (OTC: FBLV), the parent company of First Bank & Trust Co., ranked 36th with a 12.47 percent three-year average return. Moorefield, W.Va.’s Summit Financial Group (NASDAQ: SMMF), Summit Community Bank’s parent company, provided a 10.9 percent return on average equity from 2014 through 2016 to place 78th on the list. Coming in at 196th on the list was Bank of the James Financial Group Inc. (NASDAQ: BOTJ), parent company of Bank of the James. The Lynchburg company produced an 8.84 return on average equity over the previous three years. — Vic Bradshaw

Pioneer Bankshares Earnings Jump HARRISONBURG — Stanley-based Pioneer Bankshares Inc. (OTCBB: PNBI) grew its earnings 52 percent in the first quarter compared to 2016. The parent company of Pioneer Bank netted $636,000, or 66 cents per share, in the quarter compared to $419,000, or 43 cents per share, in the same period a year earlier. The company released the financial data April 27. The net income jump was attributed to gains on securities transactions and decreases in operational expenses and provision for loan loss set-asides. Pioneer Bank has grown its loan portfolio by $9 million to $163.1 million since March 31, 2016. It grew deposits $12.9 million to See SCENE, Page 9

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, May 30, 2017

ViaAir Performance ‘Exceptional’ By VIC BRADSHAW Daily News-Record

WEYERS CAVE — Once-unreliable carrier ViaAir has been “exceptional” over the past two months, Shenandoah Valley Regional Airport Commission members were told during their May meeting, and the company is doubling its one-stop flights to Orlando, Fla., this summer. Greg Campbell, the airport’s executive director, used the superlative to describe the company’s performance since March 1 at the commission’s monthly meeting. Only four of about 250 inbound or outbound flights in that time have been canceled: one inbound at SVRA’s suggestion when a large snow was forecast in mid-March, one inbound due to a crew issue, and their accompanying outbound flights. In the airline industry, he said, a flight-completion percentage in the low 90s is considered good and the mid-90s is very good. “They are doing really, really well,”

Campbell told the panel. “And they’re largely on time, if not early.” Using 50-seat regional jets, Orlando-based ViaAir began shuttling passengers between the Weyers Cave airport and Charlotte Douglas International Airport in North Carolina on Nov. 30. Beginning Dec. 11, Wednesday and Sunday flights continued on to carry passengers to and from SVRA and Orlando Sanford International Airport. In winning the bid to provide service to the local airport under the federally subsidized Essential Air Service program, ViaAir pledged to complete 98 percent of its flights to and from SVRA. However, its completion rate was only 83 percent in December and fell to 72 percent in January. That drew a rebuke from the U.S. Department of Transportation, which is providing ViaAir a subsidy of up to $3.8 million a year to serve the airport. The department began monitoring its performance and having weekly check-in calls about service quality, calls that Campbell said continue.

A private plane lifts off from the runway of the Shenandoah Valley Regional Airport in Weyers Cave. Nikki Fox / DN-R

The airport director added that he’s heard positive comments from passengers about the carrier in recent months.

the most popular, Campbell said, with most full or nearly full. In anticipation of summer demand, ViaAir has added one-stop service to and from Orlando on Fridays beginning

Orlando Still Popular The one-stop flights to Orlando have been

See VIAAIR, Page 10

Benefits with values You want the best for your employees, because they give you their best. Let us help you put your values to work, with health plans, health-related savings and spending accounts and other workplace benefits and programs. Contact us today! 841 Mount Clinton Pike Harrisonburg, VA 22802 (540) 437-0672 everence.com/harrisonburg

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, May 30, 2017

Harrisonburg, Va.

So You Think You Can Drive? Device Monitoring Driving Behavior May Lower Premium By PRESTON KNIGHT Special to the SVBJ

HARRISONBURG — Modern technology is catching up to all of the self-proclaimed driving masters. Area insurance companies offer auto policyholders devices that monitor driver behavior. This can mean anyone who professes that they are great drivers now may have the data to back it up — or, alternatively, be called out for embellishment. The advantages, however, are far more meaningful than the opportunity to prove one’s skills. Roads have the potential to become much safer for everyone. Parents can rest easy about the performance, and even whereabouts, of their young drivers. And, money can be saved as policies can be better catered toward a driver’s potential for loss.

At the Rockingham Group, Kevin Iwanicki, the personal lines underwriting manager, has been recognized by the area technology community for his work to bring the SmartWheelDrive program to his company. He was a nominee for the Innovation in Utilization at the recent Tech Nite awards held by the Shenandoah Valley Technology Council. A SmartWheelDrive device is installed in a vehicle’s onboard diagnostic port and provides feedback on driving behavior covering four main areas: hard braking, acceleration, speeding, and nighttime operation. The device, from Massachusetts-based Octo Telematics North America, collects key performance information from your vehicle such as VIN, time, maneuvers, location, speed, acceleration/deceleration, and vehicle health. Data can be reviewed on a secured website or through a mobile app, putting at

Experience better business banking.

See DRIVE, Page 7

Nikki Fox / DN-R

Kevin Iwanicki, personal lines underwriting manager for the Rockingham Group, checks his driving habits online that were recorded with the SmartWheelDrive Program.

Banking solutions that deliver from Union Bank & Trust. The leaders of Friendship Industries, a commercial packaging and logistics company in Harrisonburg, share Union’s commitment to the community. That’s why they chose Union commercial banker Greg Godsey for ﬁnancial solutions that deliver results. When you’re ready to bank better, bank at Union.

B A N K AT U N I O N .CO M 5 4 0 . 56 8 . 20 8 0

SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.

Policy Discount Can Rise To 15 Percent depending on the daily miles that are driven. About 250 people now participate, your fingertips proof, or indictment, of including the original 30 from the iniyour driving trends. Iwanicki said the insurance compa- tial rollout, Iwanicki said. “It has gone up this year, but it ny launched the initiative in October hasn’t taken off yet,” he said. 2015, offering auto policyholders the State Farm offers a similar chance to monitor their driving program, Drive Safe and behavior for $5 a month. It Save, that provides for the was marketed as a tool to same 5 percent discount help parents keep watch It has gone up this at enrollment, but can on young drivers in year, but it hasn’t increase to as high as their households, he taken off yet. 50 percent, according said. to information provid“It wasn’t very ed by Dayton-based successful,” Iwanic Kevin Iwanicki agent Shannon Lokey. ki said, noting there of the Rockingham The program collects were roughly 30 particGroup, on program mileage and, in some ipants. participants cases, basic driving charLast July, a second acteristics through OnStar phase of the program’s rollor SYNC, a Microsoft company. out occurred with some importDrive Safe and Save gives policyant changes. Rockingham Group now offers SmartWheelDrive for free, and holders control of what they pay for applies an immediate 5 percent auto auto insurance, according to State policy discount to those enrolled and Farm. who drive the vehicle to school or work. Through Nationwide, policyholders The discount can rise to 15 percent, can earn an instant 10 percent dis-

Drive

Tuesday, May 30, 2017

The device installed in a vehicle’s onboard diagnostic port can provide feedback on driving behavior covering four main areas: hard braking, acceleration, speeding and nighttime operation.

FROM PAGE 6

“

Nikki Fox / DN-R

count when they sign up for the company’s SmartRide program, according to its website. Based on a person’s driving, the discount can reach 40 percent. Denise Click, the personal lines division manager for LD&B Insurance and Financial Services, said carriers they represent, such as Progressive and Travelers, offer devices that measure driving behavior, including how many

hard brakes a driver has or the number of rapid accelerations. However, the number of people signing up has been low, she said, while the technology appears to be catching on faster in highly populated areas such as Richmond and Northern Virginia. The benefits of the data are still See DRIVE, Page 8

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, May 30, 2017

Harrisonburg, Va.

Another Program Feature Allows Users To View Last Position Of Their Vehicle helpful in case of a motor vehicle theft and comforting for parents when they want to valuable no matter where one gets behind know a young driver’s whereabouts, Iwanthe wheel, improved safety and carrier dis- icki said. Curfew alerts and geofencing, in which counts at the top of that list, Click said. “On the flip side of that, a driver could you can monitor when a vehicle leaves or have their premium increased based on enters a designated spot, are also available as safety features. Perhaps as eartheir driving patterns,” she said. ly as this year, another benefit will At Rockingham Group, poor be SmartWheelDrive’s ability driving performance through to provide emergency alerts SmartWheelDrive cannot in case of a crash. lead to higher premiums. We can alert first “We can alert first But, information gleaned responders and responders and we can from the device should call loved ones,” Iwangive a poor performer we can call loved icki said. every indication he or ones. On the more playful she would need to imside, there’s also an elprove on the roads. Kevin Iwanicki, ement of gaming where For example, each Rockingham Group users can send out their trip on SmartWheelDrive driving scores over Twitter. is shown on Google Maps “It’s a neat feature not rewith each risky driving event lated to the discount,” Iwanicki identified to help motorists find behavioral patterns in their daily commutes. said. Another feature tied to Google Maps In other words, if you’re not convinced is that the program allows users to view when someone makes claims of being a the last position of their vehicle, which is good driver, anecdotal evidence and per-

Drive

FROM PAGE 7

Curfew alerts and geofencing, in which users can monitor when a vehicle leaves or enters a designated spot, also are available as safety features through the program.

“

In search of the BEST FINANCING? Search no more! We offer a VARIETY OF FINANCING to ﬁt anyone’s needs! PLUS, we take time to simplify the process to make it easy for you!

Nikki Fox / DN-R

sonal opinions are no longer the only ways to support an argument. Let the car do the talking. Everyone could possibly benefit. “They use it to potentially become a bet-

ter driver, a safer driver,” Iwanicki said of the Rockingham Group’s program. “We encourage it.” Contact svbjnews@dnronline.com

Advertising gets results.

call 574-6229

Harrisonburg West 540.434.4722 Harrisonburg Downtown 540.214.2070 Franklin, WV 304.358.2311 Mooreﬁeld, WV 304.538.7900 Petersburg, WV 304.257.4000 Marlinton, WV 304.799.6700 LOAN PRODUCTION OFFICE: Wardensville, WV (304) 897.2265 NMLS #403498

Cindy Rader, Loan Ofﬁcer NMLS #1163890 / (540) 746.8819

www.yourbank.com

facebook.com/yourbank

MEMBER FDIC

PORCHES, ARBORS & PERGOLAS, HANDICAP RAMPS

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, May 30, 2017

Rosetta Stone Posts First Quarterly Profit In Five Years; Expects To End Year In Red Scene

FROM PAGE 4

$162.5 million over the same period. Pioneer Bank has seven offices, including branches in Harrisonburg, Luray, Shenandoah and Stanley and operates consumer- and auto-loan company Valley Finance Services. — Vic Bradshaw

Rosetta Stone Registers Rare Profit HARRISONBURG — Rosetta Stone (NYSE: RST) recently announced that it posted its first quarterly profit in five years, but company officials still expect to end the year in the red. The Arlington-based language-learning software company reported May 9 that it netted $500,000, or 2 cents per diluted share, for the first quarter of 2017. That compares to a net loss of $7.5 million, or 34 cents per diluted share, for the first quarter last year. The quarterly profit was Rosetta Stone’s first since the fourth quarter of 2012, according to spokeswoman Michelle Alvarez. The positive results were heavily affect-

ed by a $9 million initial payment related to a licensing deal with Japan’s leading software distributor, SOURCENEXT Corp. The transaction is to pay Rosetta Stone at least $19.5 million over a 10-year period. The company, however, also cut operating expenses year over year by $9.5 million, or 20 percent. It was the ninth straight quarter of expense reductions year over year. Revenue from Rosetta’s literacy segment, Lexia, jumped 34 in a year to a record $10.2 million. At its May 9 investor presentation, Rosetta Stone officials announced a full-year projected loss of $13 million to $15 million. The company posted a $27.6 million loss in 2016. Rosetta Stone was founded in Harrisonburg 25 years ago. As of March, it still employed more than 200 people in the city. — Vic Bradshaw

Union Bankshares, Xenith Merging HARRISONBURG — Union Bankshares Corp. (NASDAQ: UBSH) recently announced that it has reached a merg-

er agreement with Xenith Bankshares Inc. (NASDAQ: XBKS) in an all-stock deal that combines two Richmond-based banks, according to a news release. The merger allows Union Bankshares, the parent company of Union Bank & Trust, to expand its footprint into North Carolina and Maryland. The transaction has been approved by the directors of both companies and is expected to close in early January. The combined company would have $11.9 billion in assets, $9.2 billion in deposits and $8.9 billion in gross loans, based on financial data as of March 31. Union President and CEO John Asbury will remain in that role following the merger, as will Raymond Smoot Jr., chairman of Union’s board. Xenith CEO T. Gaylon Layfield III will be Union’s executive vice chairman for a transitional period. The Union board will expand from 18 to 20 members with the addition of two members from Xenith’s board. The agreement calls for each outstanding share of Xenith common stock to be exchanged for 0.9354 shares of Union

common stock. Based on Union’s May 19 closing price of $31.72, the deal values Xenith stock at $29.67 per share and sets the deal’s value at $701.2 million. Union has 113 branches, all in Virginia. Xenith operates 40 branches in Virginia, Maryland and North Carolina. — Vic Bradshaw

GreenWood Hits 5M Safe Hours HARRISONBURG — GreenWood Inc., a company that provides operations, maintenance and construction assistance to businesses, recently announced that its employees have accumulated 5 million safe work hours at the Merck & Co. plant south of Elkton. Based in Greenville, S.C., GreenWood provides construction-related services for Merck, according to a news release. The company has had employees at work for 26 years without a lost-time injury. Merck manufactures drugs at the plant on South East Side Highway. — Vic Bradshaw

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, May 30, 2017

Harrisonburg, Va.

Local Ledger Central Valley Area Home Sales Nikki Fox / DN-R

Private planes parked at the Shenandoah Valley Regional Airport in Weyers Cave.

Flights To Charlotte Not Selling As Well ViaAir

Median Price Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro

April 2017

April 2016

Pct. Change

$161,425 $175,000 $169,000 $148,500 $199,000 $124,900 $207,000

$147,500 $203,000 $162,450 $111,500 $205,900 $163,000 $96,000

9.44% -17.06% 4.03% 33.18% -3.35% -23.37% 115.63%

Days On Market Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro

April 2017

April 2016

Pct. Change

8 44 121 166 23 25 27

27 114 166 183 72 84 19

-70.37% -61.40% -27.11% -9.29% -68.06% -70.24% 42.11%

Units Sold Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro

April 2017

April 2016

Pct. Change

36 62 48 14 62 26 32

33 68 58 14 77 37 19

9.09% -8.82% -17.24% 0% -19.48% -29.73% 68.42%

Unemployment Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro

March 2017

Feb. 2017

March 2016

4.2% 3.2% 3.5% 6.0% 3.4% 3.7% 4.0%

4.4% 3.3% 3.8% 7.2% 3.5% 3.8% 4.2%

4.5% 3.6% 3.9% 6.6% 3.6% 3.9% 4.0%

FROM PAGE 5

June 1 and on Monday as of July 1. The airline is close to finalizing ticket and bag accommodations with a major carrier operating out of Charlotte that would make booking and traveling easier for many passengers. The change would allow passengers to book most connecting flights in a single transaction instead of two, and in most instances allow luggage to be transferred from ViaAir’s jet to the connecting flight’s aircraft. Passengers must now buy tickets separately and claim and recheck bags for connecting flights. Campbell said an agreement has been reached and tests are being performed to make sure the computer system works properly for all flights. He was hopeful the system would be operational by the end of May. While ticket sales to Florida have been good, the individual flights to Charlotte aren’t selling as well. Campbell, however, said after the meeting that he expects business to pick up once the ticket and baggage offering is functional because it would get flights to and from SVRA listed on all the major travel websites. “I believe the key to Charlotte’s performance is the implementation of that agreement with the mainline partner,” he said. “We will not see the full potential of Charlotte until that is online.” The Shenandoah Valley is a destination for many business and recreation travelers, Campbell said, but they must search to find the two flights they need to reach the local airport. When the change occurs, SVRA will be listed as a destination. “A lot of those folks right now,” Campbell said, “aren’t even seeing us.” Contact Vic Bradshaw at 574-6279 or vbradshaw@dnronline.com

Sources: Funkhouser Real Estate Group; Real Estate Business Intelligence

Retail Sales (in millions) Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro

Feb. 2017

$98.6 $53.0 $31.9 $12.9 $38.4 $29.6 $37.9

Source: Weldon Cooper Center for Economic and Policy Studies

Source: Virginia Employment Commission

Labor Force Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro

March 2017

Feb. 2017

March 2016

24,895 40,972 20,623 11,421 37,359 12,223 10,386

24,948 41,073 20,514 11,400 36,932 12,080 10,265

24,287 40,309 20,783 11,288 36,774 11,965 10,130

Source: Virginia Employment Commission

You Read the

BUSINESS JOURNAL Your Customers Read the

BUSINESS JOURNAL Your Potential Customers Read the

BUSINESS JOURNAL

It’s Where Business Meets Business Call today to advertise in the next edition of the Shenandoah Valley BUSINESS

JOURNAL

540-574-6220

SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.

Tuesday, May 30, 2017

City’s Olive Garden Opens For Business She came early partly because she thought there might be special offers for the first diners (there weren’t). A Sentara RMH Medical Center HARRISONBURG — The city’s long nurse whose son Michael joined her for lunch, Kitta said she’s driven to Winmunicipal nightmare is over. A prolonged yearning for many din- chester multiple times over the years ers in the region came to an end at 11 to patronize the closest Olive Garden to a.m. May 22 when Olive Garden offi- Harrisonburg and eaten at the restaucially opened its doors at 45 Burgess rant during travels to Tennessee and Road. The Italian chain had been at the North Carolina. “I’ve been to a lot of Olive Gardens,” top of local residents’ restaurant wish the 55-year-old Rockingham County list for years. Frank Tamberrino, president and native said, “and I haven’t been disapCEO of the Harrisonburg-Rockingham pointed.” City, county, chamber and company Chamber of Commerce, said during a ribbon-cutting ceremony that preceded officials were part of the ribbon-cutting the opening that the first question he ceremony. Greg Godsey, chairman of the chamwas asked when he came here in Deber’s board of directors, thanked the cember 2009 was how he was doing. company for its investment in the comThe second? munity and the jobs it’s providing. “When are we getting an Olive Olive Garden officials have Garden?” he said. said more than 175 people Brian Shull, the city’s would work at the store. economic development diThe approximaterector, then joked that I am Olive Garden’s ly 7,500-square-foot he’d been hearing the No. 1 fan. I have restaurant has a postsame question since ed seating occupancy he arrived in 1994. been waiting for of 265. Its decor, of Mayor Deanna this forever. course, has an Italian Reed used giant scisfeel. sors to hold the green Deanna Reed, Each table has a ribbon in place for the Harrisonburg mayor Ziosk touchscreen tabceremony, while Stephen let on which diners can Walls, the restaurant’s order desserts and nonalcogeneral manager, used regholic drinks, see food nutrition ular scissors to cut the banner. Reed seemed elated to be part of the information, play games and access news feeds. festivities. Walls said after the ceremony that “I am Olive Garden’s No. 1 fan,” she gushed. “I have been waiting for this the restaurant invited friends and family members to dinner Saturday forever. and Sunday and served more than “I could retire after this day.” Walls, a nearly 14-year company vet- 1,000 people. The soft opening helped eran who started as a server and has the staff get some “last-minute kinks been the restaurant manager in Win- worked out” before the public rolled in. The food and nonalcoholic drinks chester for four years, thanked those in attendance for the ceremony and the both nights were free, he said. Money dozens of people in line awaiting the charged for alcohol was donated to the opening. Boys & Girls Clubs of Harrisonburg “This,” he said, “is going to be an and Rockingham County. amazing experience.” As part of Olive Garden’s Harvest program, Walls said the restaurant 175 Jobs Created also will prepare opened but unserved Tammy Kitta likely agreed whole- pasta and other foods nightly for The heartedly. Salvation Army to pick up the followThe Penn Laird resident said she ar- ing morning and provide to needy local rived at 9:45 a.m. “to beat the crowd” families. for the opening and was first in line. To make way for the restaurant, the

Long-Awaited Restaurant Chain Now Taking Orders

“

Photos by Nikki Fox / DN-R

ABOVE: Tammy Kitta of Penn Laird and her son, Michael, of Grottoes, are the first to enter Harrisonburg’s Olive Garden on Monday as its doors open for business. LEFT: People stand in line outside Olive Garden. 28-year-old Best Western Harrisonburg Inn was demolished. Walls said he’s well aware of the long-standing public clamor for Olive Garden in the market. “I think it means a lot to the folks of Harrisonburg,” he said of the opening. “It‘s validation of years and years and years of hard work. “I’ve spoken to a lot of people who have been championing this to happen. I think it speaks volumes to the commitment of everybody here making their voices heard, and they’ve been heard.” Contact Vic Bradshaw at 574-6279 or vbradshaw@dnronline.com

Star Heating & Cooling Inc. Independent TRANE Comfort Specialist Sales & Service

• Reliable Home Comfort • Energy Saving Systems • Residential & Commercial • Get Filtered Air Up To 99.98% Clean 1169 S. High St., Harrisonburg, VA 540-433-1102 www.trane.com

Tuesday, May 30, 2017

SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.

Whether It’s A Home Ofﬁce Or A Corporate Suite - WE CAN DO IT! IT!

ADJUSTABLE TABLE

Sit, Stand, change positions through the day with Friant MY-HITE adjustable work tables. Change height at the touch of a button, from 24.5” to 50”.