While Hanes's actions were criminal, another big story is about systemic failures in their banking controls and how they contributed to this failure:

Board allowed a single individual to wire tens of millions without additional approvals

No automated systems flagged the unusual transaction patterns

Previous red flags from Hanes's 2011 firing for questionable loans didn't lead to enhanced oversight

Board continued considering his requests for more money ($18M) even after learning of the initial theft

Reliance on personal trust and reputation substituted for proper institutional controls

No separation of duties or multi-party approval requirements for large transfers

Community banks need strong governance regardless of size or personal trust relationships.