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paBanker Magazine 2019 Q1

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pa THE OFFICIAL MAGAZINE OF THE PENNSYLVANIA BANKERS ASSOCIATION Quarter 1 Volume 21 1 Join Us For PA BANKERS 2019 CONVENTION JW Marriott Desert Springs Resort Spa Palm Desert Calif May 15 18 2019 FOCUS ON PA Bankers 2019 Convention Preview Palm Desert Calif Thank You

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MAGAZINE STAFF Managing Editor Sara Hocker Editorial Advisors J Duncan Campbell III Jacqueline A Catalano Daniel J Reisteter Louise A Rynd Michelle L Staton Cynthia L Wallett Wayne Whipple BRINGING TIMELY NEWS AND INFORMATION TO THE MEMBERSHIP OF THE PA BANKERS PA Bankers Services Corporation Board of Directors and Officers President Steven G Fisher Secretary David P Ruddock Treasurer J Duncan Campbell III Maureen H Beilman John D Blecher Gerard A Champi Trudy K Everhart Richard L Greslick David E Raven Jennifer A Roxbury SPJHR CSP SHRM Daniel J Schaffer M Theresa Schwartzer Jeffrey A Stopko FEATURED ARTICLES 34 35 Your Member of Congress Wants To Hear from You Address Correspondence to paBanker Magazine c o Pennsylvania Bankers Association 3897 N Front St Harrisburg PA 17110 Tel 717 255 6915 Fax 717 233 1477 E mail shocker pabanker com 36 37 SWIFT Whitepaper paBanker Magazine is published four times a year by the PA Bankers Services Corporation Services Corporation a subsidiary of the Pennsylvania Bankers Association PA Bankers The Association serves Pennsylvania banks and financial institutions with educational programs member services and represents members on the state and federal level Since 1895 the PA Bankers continuously worked to be the premier financial services organization supporting a diversified membership through volunteer participation a knowledgeable staff state of the art technology and a commitment to excellence paBanker Magazine is the official publication of the PA Bankers Subscriptions are free to all member institutions and PA Bankers volunteers Additional copies are available to members at a rate of 40 per year Non member subscriptions are available for 60 per year 38 39 Regulatory Priorities A Look into 2019 Editorial The opinions expressed in articles by authors other than Association staff and officers are the responsibility of the authors only and not necessarily those of the PA Bankers the Services Corporation or its members All articles unless otherwise noted have been written by paBanker Magazine staff Questions and comments should be addressed to the Managing Editor PA Bankers members may reproduce any non commercial part of this publication with verbal permission from the editor All others must receive written permission from the editor prior to reproduction of any part of this publication Copyright 2003 PA Bankers Services Corporation All Rights Reserved 40 41 Will Banks Gamble on New Interactive Gaming Opportunities Available to Customers Postmaster send all address changes to paBanker Magazine 3897 N Front St Harrisburg PA 17110 Printed By Art Communication Systems Inc Sponsored by 42 43 Why Asset Size Does Not Matter to Regulators in ERM Volume 21 1 Quarter 1 3 pabanker com

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For forty years The Baker Group has been known for its proven software and products and for helping clients make sound strategic decisions The Baker Group s Interest Rate Risk and Investment Strategies Seminar was developed speci cally for managers of nancial institutions Designed to meet current nancial challenges it is an in depth examination of topics including APR Economic Overview Market Update and Fed Policy Outlook Late Cycle Behavior Preparing the Balance Sheet for the Next Environment April 25 26 2019 Dallas Texas Best Practices to Comply with the Latest Liquidity and IRR Regulatory Guidance What Should Our Bank Be Buying Today Seeking the Best Relative Value Managing Cash ow Optionality to Protect Against Extension and Contraction Risk Protecting Your Portfolio with a Robust Municipal Credit Process Guest Speaker Dr Lacy H Hunt Executive Vice President of Hoisington Investment Management Company Who Should Attend Financial institutions CEOs CFOs investment officers board members and those who are directly or indirectly responsible for nancial management functions will bene t from this seminar There is no cost for this seminar Thursday Golf 12 00 pm Dinner 6 00 pm Friday Breakfast 7 00 am Seminar 8 00 am Lunch 12 00 pm Conclusion 4 00 pm Westin Stonebriar Hotel 1549 Legacy Dr Frisco TX 75034 972 668 8000 Old American Golf Club 1001 Lebanon Rd The Colony TX 75056 972 370 4653 Register online at GoBaker com texas For more information call Skoshi Heron at 888 990 0010 CPE credits will be earned for your attendance Member FINRA and SIPC www GoBaker com 800 937 2257 Oklahoma City OK Atlanta GA Austin TX Indianapolis IN Long Island NY Salt Lake City UT Springfield IL The Baker Group LP is the sole authorized distributor for the products and services developed and provided by The Baker Group Software Solutions Inc

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PA BANKERS STAFF DIRECTORY General Phone Switchboard 717 255 6900 PRESIDENT CHIEF EXECUTIVE OFFICER J Duncan Campbell III dcampbell pabanker com 717 255 6916 EXTERNAL RELATIONS Amy Doyle External Relations Administrative Assistant adoyle pabanker com 717 255 6937 Sara Hocker Director of Marketing Communications shocker pabanker com 717 255 6912 Erin L Kanter Director Advocacy Government Relations ekanter pabanker com 717 255 6910 Nell McCormack Abom Vice President of Marketing Communications nabom pabanker com 717 255 6915 Daniel J Reisteter Vice President Government Relations dreisteter pabanker com 717 255 6933 MEMBER RELATIONS PROFESSIONAL DEVELOPMENT PA BANKERS SERVICES CORPORATION Jill A Ametrano Registrar and Records Coordinator jillametrano pabanker com 717 255 6927 Jacqueline A Catalano Vice President Professional Development jcatalano pabanker com 717 255 6939 Tiffani A Chambers Director Member Relations tchambers pabanker com 717 255 6928 Donna L Price ABA Training Administrative Assistant dprice pabanker com 717 255 6926 Volume 21 1 Quarter 1 MEMBER RELATIONS PROFESSIONAL DEVELOPMENT PA BANKERS SERVICES CORPORATION Linda A Scott Member Relations Administrative Assistant lscott pabanker com 717 255 6903 BRINGING TIMELY NEWS AND INFORMATION TO THE MEMBERSHIP OF THE PA BANKERS SPECIAL FEATURES Cynthia L Wallett Senior Vice President Member Relations and Professional Development and Managing Director PA Bankers Services Corporation cwallett pabanker com 717 255 6913 Wayne R Whipple Vice President Business Development wwhipple pabanker com 717 255 6925 25 32 PA Bankers 2019 Convention Preview Marilyn Wisniewski Director Residential Schools Meeting Operations mwisniewski pabanker com 717 255 6934 IN EVERY ISSUE OPERATIONS FINANCE Michelle Bosch Receptionist and Administrative Assistant mbosch pabanker com 717 255 6900 Connie A Ferraro Director Information Technology cferraro pabanker com 717 255 6921 Annette M Moshgat Director Finance amoshgat pabanker com 717 255 6938 Michelle L Staton Senior Vice President Finance Operations mstaton pabanker com 717 255 6923 FEDERAL GOVERNMENT RELATIONS GENERAL COUNSEL Lisa R Brandt Legal Assistant lbrandt pabanker com 717 255 6936 Louise A Rynd Esq General Counsel lrynd pabanker com 717 255 6935 6 Chairman s Insights 18 23 From Your Peers 7 From the CEO to the CEO 35 New to PA Bankers 10 10 on 10 45 59 Government Relations 12 16 Community Corner 61 64 PA Bankers A Look Ahead 16 Index to Advertisers 66 67 Select Vendor Slick 5 pabanker com

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CHAIRMAN S INSIGHTS James V Dionise President CEO Mars Bank FOSTERING GROWTH WITHIN THE INDUSTRY It s officially baseball s spring training season and the PA Bankers staff is busy preparing for many of the association s flagship events which will take place in the next few months priorities technology disruptions and more Back by popular demand we will again present a Sunrise Savings program highlighting select vendors of the association Featured speakers will include Lieutenant Colonel Robert J Darling U S Marine Corps retired who will speak on crisis leadership and decisionmaking and Sean O Brien CEO RISK Technologies Inc who will speak to bank executives on what they need to know about cyber threats More information about the PA Bankers 2019 Convention can be found on pages 25 32 In April PA Bankers will host its annual regional spring meetings the 2019 Spring Socials formerly known as the Spring Summits This year you can expect a few changes as the association announced an adjustment to the format for the evening To provide more time for meaningful networking the event will be centered around a high energy extended reception We will mingle with industry peers throughout the evening and enjoy heavy hors d oeuvres Challenge your colleagues to a game of cornhole or other competitive matches including giant Connect Four Yahtzee or Uno plus donate a financial literacy book to the PA Bankers Financial Literacy Book Drive to assist libraries in resupplying following the recent devastating hurricanes I look forward to attending each of the Spring Socials and I hope to see you there We have waived the fee to attend so I encourage you to join us and bring your colleagues especially those who have never attended a PA Bankers event To confirm the date of your regional Spring Social please visit the Look Ahead section of the magazine on page 61 64 As PA Bankers prepares for these upcoming events to support individuals in the banking industry it also has been working hard to continue its effort of recruiting the next generation of banker The association actively participates in several initiatives throughout the year that work to both train future bankers and garner interest for a career in the industry the CSBS Case Study Competition Next Generation Bankers Academy and BankWork Each of these three initiatives has seen progress in the last few months with the help of the association s members CSBS Case Study Competition As Duncan wrote in the last edition of paBanker magazine the 2019 Conference of State Banking Supervisors CSBS Case Study Competition is currently underway If you will recall the CSBS Case Study Competition is a national program that pairs undergraduate college university student teams with local community banks to conduct original case studies This year s competition will focus on the Economic Growth Regulatory Relief and Consumer Protection Act Public Law No 115 174 and how it will impact banks and their local communities Last month the final list of bank college teams was confirmed and the participation and commitment Additionally the countdown to the PA Bankers 2019 Convention is on I hope you will join me in Palm Desert along with hundreds of our fellow members as we experience three days packed with dynamic speakers lively discussions about the banking industry inspirational programs peer exchanges fine dining entertainment and more This year s program will offer informative engaging sessions on the following topics advocacy audits balance sheet strategy board meetings digital strategy directors diversity and inclusion managing continued on page 8 PA Bankers Association 6 Volume 21 1 Quarter 1

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FROM THE CEO TO THE CEO Duncan Campbell President CEO PA Bankers Association EVERYONE HAS A PLACE TO USE THEIR VOICE ADVOCACY MEANS HAVING A CAUSE THAT YOU CARE DEEPLY ABOUT ENOUGH SO THAT YOU MAKE IT A PRIORITY TO REPRESENT THAT CAUSE WHEN POSSIBLE BEING WILLING TO EDUCATE OTHERS AROUND YOU SO THEY TOO CAN UNDERSTAND WHY FIGHTING FOR THE CAUSE IS SO IMPORTANT AND THAT EVERYONE HAS A PLACE TO USE THEIR VOICE successfully achieved bipartisan legislative support for regulatory and tax relief two issues critically important to our ability to serve our customers and local communities And in Pennsylvania the state legislature is more philosophically divided than in recent memory potentially making it harder for legislation to be passed and then signed into law by the Governor These shifts present us with both a challenge and an opportunity The challenge will be to educate these new legislators and our incumbent legislators as well that Pennsylvania s banking industry is the backbone of their local communities the engine that drives their local economy through business development small business lending charitable giving and job growth as well as the catalyst to help individuals dreams come to life By promoting the merits of the Pennsylvania banking industry we have the opportunity to emphasize our value which will ultimately strengthen that bipartisan appreciation for what our industry means to the nation s economy and the local communities we serve PA BANKERS MEMBER PA Bankers recently conducted an advocacy audit asking members to take a brief survey to establish a baseline understanding of how comfortable you all are with advocacy This is just one of the powerful statements that resulted from the survey as well as guidance on how to begin educating our members on the importance of advocacy in the Pennsylvania banking industry It is our priority to encourage advocacy among your team We want to empower you by giving you the tools you need to strengthen your voice and make an impact As you may have read in the Q4 edition of paBanker magazine the PA Bankers Board of Directors voted to elevate advocacy within the association late last year At the beginning of the year a signi cant number of new legislators were sworn into of ce both in Washington D C and in Harrisburg In Pennsylvania alone we welcomed seven new members of Congress along with dozens of new legislators in the PA State Legislature One of the rst steps of this important initiative was to convert the former Grassroots Advocacy Advisory Committee to the Advocacy Standing Committee which reports directly to the board This committee led by the second vice chair of the association On a national level we have new political leadership in the United States House of Representatives This change comes at a time when our industry had continued on page 9 Volume 21 1 Quarter 1 7 pabanker com

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CHAIRMAN S INSIGHTS continued from page 6 Next Generation Bankers Academy To complement this effort to recruit the next generation of bankers PA Bankers plans to participate again in the Next Generation Bankers Academy with the Pennsylvania Department of Banking and Securities this summer As the association continues to work on the details of the program look for updates and information in the coming months from the association s member banks is astounding Eighteen sponsoring Pennsylvania banks and 13 universities will participate in this year s competition which is a meaningful increase from last year s 11 banks and 11 universities Participating member banks include 1ST SUMMIT BANK Johnstown Pa BankWork Finally PA Bankers has entered its second year with the BankWork program and its partnership with the Philadelphia Opportunities Industrialization Center Inc OIC Working in communities of need and with students who typically would not be considered qualified candidates for banking financial services positions BankWork offers opportunities to succeed in well paying jobs that can lead to a lasting career in the banking industry Each eight week class is designed to train qualified entry level bank tellers customer service representatives and personal banker candidates and ultimately provide and connect those candidates to local banks and financial institutions Bryn Mawr Trust Bryn Mawr Pa Citizens Northern Bank Wellsboro Pa First Resource Bank Exton Pa Fulton Bank Lancaster Pa Hyperion Bank Philadelphia Pa Kish Bank Belleville Pa Lafayette Ambassador Bank Lehigh Valley Pa Mars Bank Mars Pa Mid Penn Bank Millersburg Pa Since the program s beginning in December 2017 there have been 72 graduates and 50 individuals placed into jobs within the banking industry thus far the Philadelphia OIC is continuing to place the program s December 2018 graduates Without this program these 72 individuals may have never been exposed to the industry or found a meaningful career opportunity in banking New Tripoli Bank New Tripoli Pa Penn Community Bank Perkasie Pa PeoplesBank A Codorus Valley Company York Pa QNB Bank Quakertown Pa Somerset Trust Company Somerset Pa While the next class is underway the association is actively working with BankWork to expand this program to another urban location in the Commonwealth The National Bank of Malvern Malvern Pa The Victory Bank Limerick Pa and York Traditions Bank York Pa There are many exciting initiatives happening right now in our association and our industry In order to remain competitive we must engage empower and educate our current bankers while recruiting the most talented and diverse workforce across all levels of our institutions That only works if every member takes an active role As we continue to gather details of these next generation banker and workforce development programs I encourage you to connect and continue your work to support and foster growth within our industry Only we can be the driving force for the future of banking I am excited to continue Mars Bank s involvement with the program Last year it was exciting to see students discover community banking its impact on our economy and the many career opportunities available to a college graduate Each student came to the program with preconceived ideas some negative and left with a new appreciation for our industry and the very important role we play in our communities The association will continue to update you on the progress of this year s competition and we wish the teams luck as they work to submit their final papers on April 22nd PA Bankers Association Thank you and I look forward to seeing you all at the 2019 Spring Socials and PA Bankers 2019 Convention 8 Volume 21 1 Quarter 1

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FROM THE CEO TO THE CEO continued from page 7 and the Government Relations Policy Committee chair is populated with representation from various committees including Agriculture Rural Issues Committee Emerging Leaders Committee Federal Direct Contact Bankers Information Technology Committee Member Relations Policy Committee PaBPAC Board of Directors Professional Development Policy Committee PR Communications Committee and Women in Banking Committee There are three at large representatives as well This committee will provide strategic leadership on advocacy education and development within your institution Using the advocacy audit survey results the committee will work to nd opportunities to advance advocacy by integrating it throughout the full PA Bankers enterprise including training and messaging initiatives It is our commitment to strengthen our advocacy efforts and grow our overall advocacy network all of which will require your personal engagement support and overall leadership This engagement will include actions such as writing emailing your legislators on important industry issues hosting them in your bank contributing to PaBPAC State and personally attending our various meetings throughout the year with regulators and legislators both at the federal and state levels Your voice is a powerful tool the voices of your employees add volume and strength to our industry s message and we need that support today more than ever in new initiatives with the goal of encouraging more participation and increased giving over the 2019 2021 time period For more information about our 2019 PaBPAC Campaign visit page 55 We know how deeply you care about the banking industry and we want you to make an impact on legislation or regulation that affects your institution as well as Pennsylvania s banks It is our responsibility to give you the tools you need to comfortably engage in that regard Your voices are powerful but your political engagement is equally as important In 2018 the PA Bankers Public Affairs Committee PaBPAC raised over 405 000 and contributed more than 335 000 to the campaigns of pro banking pro business candidates running for governor state senator or state representative all of which were closely reviewed by the PaBPAC Board of Directors when determining nancial support Look for more information from PA Bankers as we explore opportunities to incorporate advocacy throughout the association And if you have any ideas please contact Erin Kanter PA Bankers director advocacy government relations via ekanter pabanker com or 717 255 6910 we would love to hear from you As always if you have any questions please do not hesitate to contact me We are looking forward to helping you tell our industry s collective story because together we can make a difference Although our PaBPAC contributions helped to elect bi partisan pro banking candidates in 2018 we did not have 100 percent participation among our member nancial institutions Beginning this year the PaBPAC Board of Directors is focusing on a three year effort educating all of our members on the importance of political advocacy and engaging Volume 21 1 Quarter 1 Sincerely 9 pabanker com

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TEN ON PAGE 10 10 on 10 Advocate with PA Bankers 4 Fifteen minutes Call your legislator You might not think it is necessary but be sure to make an appointment to call your legislator Contact the scheduler to find a time that is convenient for your elected official to have a 10 15 minute conversation with them If they are not available feel free to ask for an appointment with any legislative staff members who are working on that issue for the legislator While you may already have a relationship with the legislator the staffer will let them know that you spoke Advocacy is crucial to the success and sustainability of our industry Not sure how to get started Check out our 10 tips for effective advocacy below 1 Two minutes Tweet yourlegislator Before you tweet at them for the first time be sure to check www legis state pa us for their official handle Feel free to tweet about your bank s impact on Pennsylvania your county small businesses and families Keep your tweets succinct you only have 280 characters 2 Three minutes Contribute to PaBPAC State You can contribute to PaBPAC State by writing a check or contributing online with a personal credit card www pabanker com governmentrelations pabpac contribute If you are heading to PA Bankers 2019 Convention look for mulligan sales at the PA Bankers Convention Open Buy two for 20 benefitting PaBPAC State 5 Thirty minutes Create your own letter Use your own voice to send a message to your elected official Only you know how legislation impacts your customers your bank and your community so make sure you let your legislator know how important that issue is to you Use talking points from PA Bankers or the American Bankers Association as a guide to help you formulate your messaging about the nuances of a particular issue 3 Five minutes Send a pre written letter Head to aba com and click on Issues Advocacy and Bankers Speak Up to send a pre written email to your member of Congress with only one click The program will populate a template based on a hot issue but we encourage you to personalize your message accordingly 6 One hour Visit your legislator in their office not including travel time Whether you are visiting their district office or their Capitol office getting some face time with your elected official on their turf is so important Be sure to make an appointment this will ensure that you are able to meet with the legislator and will not unintentionally create negative feelings by interrupting other important business 7 Two hours Invite your legislator to your bank Do not make it just about the issues Go for a tour of the vault introduce your legislator to your front line highlight a financial literacy initiative or charitable giving and show them the impact of your community bank Visiting the bank helps to improve the industry s reputation and aides in humanizing community banking PA Bankers Association 10 Volume 21 1 Quarter 1

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TEN ON PAGE 10 8 Four hours Help to conduct a PaBPAC State campaign in your bank Ask your CEO or manager how you can help to get across the importance of giving to the industry s PAC Encourage your team to give what they can every little bit helps elect probanking pro business bi partisan candidates To contact your legislator go to www legis state pa us You can nd your legislator by clicking Who s My Legislator on the navigation panel 10 Two plus hours per week Offer your experience to a campaign You have a lot to offer Whether you host a fundraiser for a member of Congress or work a poll for your local representative your volunteerism is crucial to our democratic process 9 Six to eight hours per year Participate on a PA Bankers Government Relations Advisory Committee We need your help At PA Bankers we pride ourselves on banker involvement ensuring they are integrated in all aspects of our government relations policy making By sitting on an advisory committee you will help to shape our priorities and be on the front lines of legislative advocacy Contact Tiffani Chambers tchambers pabanker com for more information Volume 21 1 Quarter 1 Interested in learning more about how you can advocate on behalf of the industry Contact Erin Kanter PA Bankers director advocacy government relations via ekanter pabanker com 11 pabanker com

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COMMUNITY CORNER FEATURED ENTRY ORRSTOWN BANK SUPPORTS NORTH CAROLINA RESIDENTS AFFECTED BY HURRICANE FLORENCE When Hurricane Florence stormed through the Carolinas in September causing devastating ood damage throughout the region no one anticipated that months later some areas would still be without running water and electricity Such is the case in rural Burgaw North Carolina This small agricultural community was ravaged by the ood waters of the Cape Fear River with water levels reaching as high as chimney level on some homes In mid January Nathan Eifert Orrstown s VP of marketing and communications traveled with the truck to the Sand Hill AME Church in Burgaw to deliver the supplies on behalf of the bank its employees and customers The church is serving as a local distribution point for relief efforts Mr Eifert was joined at the site by Peter Gwaltney president of the North Carolina Bankers Association community volunteers and AmeriCorps volunteers to unload the truck by hand Shippensburg based Orrstown Bank which had collected relief supplies for Texas and Florida after Hurricanes Harvey and Irma reached out to the North Carolina Bankers Association and the North Carolina Department of Public Safety to nd out how they could assist in the relief efforts in that state and they were immediately directed to the Burgaw community The community was overwhelmed by the support and could not express how appreciative they were that people were still thinking of them months after the storm Many of those helping that day are still living in borrowed travel trailers and campers waiting for FEMA to provide housing assistance and for local building permits to be issued Over the span of several weeks the bank collected household items personal hygiene products food and water donated by their customers and partnered with two local companies to coordinate the logistics of shipping the supplies 500 miles south Lancaster County based Shady Maple donated the use of a 53foot trailer which was lled from end to end with the donated supplies and H R Ewell Inc donated the use of the tractor and the time of a driver to make the delivery PA Bankers Association As a community bank giving back is core to our mission said Mr Eifert In this case we were able to engage with the communities we serve to help others where there was a tremendous need even if it was outside of our back yard These people are living in the midst of destruction months after the storm and need all the help they can get We are grateful for the support of our customers and our delivery partners and can t thank them enough for all that they did to ease the burden in Burgaw 12 Volume 21 1 Quarter 1

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COMMUNITY CORNER NEW TRIPOLI BANK DONATES 100 000 TO NORTHWESTERN LEHIGH EDUCATIONAL FOUNDATION UNIVEST RAISES NEARLY 7 000 FOR PHILADELPHIA RONALD MCDONALD HOUSE DURING SHOW YOUR STRIPES FUNDRAISER New Tripoli Bank donated 100 000 to the Northwestern Lehigh Educational Foundation as a result of the Educational Improvement Tax Credit program of Pennsylvania This donation will be used to support educational programs that might not otherwise receive funding giving students in the Northwestern Lehigh School District the tools and skills they need to thrive in an increasingly digital focused world The funds provided by this donation will support the SMART Board Project that works to supply SMART Boards to classrooms in the school district the Digital Immersion Program that provides Chromebooks to students the Virtual Reality Program allowing students to access Virtual Reality Google Expedition kits for enhanced learning opportunities and the Model Based Inquiry Program purchasing equipment necessary for real world projects in math engineering and STEAM lab classes Univest Bank and Trust Co presented the Philadelphia Ronald McDonald House PRMH with a check for 6 936 The money was raised through the Show Your Stripes fundraiser which sold red and white striped sock monkeys at 34 Univest nancial centers across Philadelphia Bucks Chester Lehigh Montgomery and Cape May counties Univest customers and employees embraced the promotion by purchasing almost 700 of the plush sock monkeys during the two week sale Additionally Univest employees showed support for the campaign by wearing their red and white stripes on Oct 15 and posting photos on social media to help generate awareness All proceeds bene t PRMH s mission to support families of seriously ill children by creating a community of comfort and hope RIVERVIEW BANK COMPLETES LARGE HOLIDAY GIVING MISSION IN 15 DAYS OPERATION COMMUNITY SPIRIT Throughout 12 counties of Pennsylvania Riverview Bank donated more than 15 000 in just 15 days to over 40 unique recipients through 50 local giving missions Operation Community Spirit is a community outreach initiative that allows Riverview Bank employees to give 50 to a deserving person or group within the community over the holiday season Pictured L to R Susan Campbell chief executive of cer Philadelphia Ronald McDonald House and Dana Brown executive vice president of consumer banking Univest Bank and Trust Co with Sophia Volume 21 1 Quarter 1 13 pabanker com

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COMMUNITY CORNER SUSQUEHANNA COMMUNITY BANK DONATES 2 500 TO FIRST COMMUNITY FOUNDATION PARTNERSHIP OF PENNSYLVANIA WAYNE BANK COLLECTS TOYS FOR KIDS IN PIKE COUNTY Wayne Bank s Pike County Community Of ces recently took part in the Toys For Kids in Pike County Tri State collection sponsored by the Marine Corps League Tri State Gung Ho detachment 909 The bank s Milford and Shohola Community Of ces participated in the program which took place from Nov 1 through Dec 14 Community members were also encouraged to donate new unwrapped toys for distribution to local families in need during the holiday season The Marine Corps League Gung Ho detachment 909 runs Toys for Kids of Pike County Tri State to help local families in need with gifts for Christmas Susquehanna Community Bank presented a check in the amount of 2 500 to the First Community Foundation Partnership of Pennsylvania through the Education Improvement Tax Credit Program bene ting the Mif inburg Area School District PS BANK SUPPORTS CHILDHOOD EDUCATION PS Bank supports early childhood education through its scholarship assistance program by providing scholarships to families with students enrolled in Pre K programs The Wyalusing Valley and Wysox Children s Centers have a mission to provide a quality early childhood experience for young learners enrolled in their programs The bank s donation to these centers was made possible through the Pennsylvania Educational Improvement Tax Credit program and was administered through The Community Foundation of the Endless Mountains PA Bankers Association Pictured L to R Noelle Lacy Milford Community Of ce teller Wendy Olsen Milford Community Office assistant manager Madeline Portugal Milford Community Of ce manager Jennifer Jacobs Milford Community Of ce head teller Linda Hughson Milford Community Of ce teller and Helen Miller Milford Community Of ce teller 14 Volume 21 1 Quarter 1

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COMMUNITY CORNER PENN COMMUNITY BANK BOARD DIRECTORS HELP BUILD HABITAT FOR HUMANITY HOME IN MORRISVILLE MARS BANK BUTLER RADIO TEAM UP TO SUPPORT VETERANS IN NEED Mars Bank and the Butler Radio Network presented a check for 3 200 to Veterans in Need of Butler County The bank WISR WBUT and 97 7 The Rock Station donated as well as raised funds at community events the Veterans Day Parade in Butler and Mars Bank locations Veterans in Need provides emergency assistance to veterans in Butler County This is the second year that the Mars Bank sponsored Step Forward Campaign raised funds for Veterans in Need Penn Community Bank Directors Robert L Byers Bruce Weed and W Thomas Lomax participated in a build day for the Habitat for Humanity of Bucks County Woodland Park Project on Jan 4 in Morrisville Penn Community Bank team members Diane Brown chief administrative of cer and Will Kadri multi site manager joined the directors in the build In October 2018 Penn Community Bank announced a sponsorship pledge of 100 000 over the next three years to Habitat for Humanity of Bucks County to support the creation of affordable housing in the county Veterans in Need was founded in 2016 to provide emergency assistance to veterans who suffer sudden loss of income or emergency Funds are provided for everyday essentials that are beyond the individual s ability to meet The organization also operates a furniture warehouse which provides household goods to veterans Any veteran honorably discharged and with a valid DD214 or other documentation may apply for assistance Visit www bcvin org for more information The homes in the Woodland Park development project will pave a path to homeownership for four deserving families To qualify for Habitat s homeownership program families must invest at least 200 sweat equity hours in the building project have a stable income and credit history and be able to afford the projected monthly mortgage payments while earning an average of 60 to 80 percent of Bucks County s median family income which Habitat pegs at 87 400 for 2018 The Philadelphia suburbs are among the most expensive places to live in Pennsylvania often putting homeownership out of reach of lower income earners Supporting efforts to create safe stable affordable housing is one of Penn Community Bank s four primary priorities for community giving Do you have hometown happenings that you d like to share Send your bank s community news to Sara Hocker PA Bankers director of marketing communications shocker pabanker com for a chance to be featured in paBanker magazine or on PA Bankers social media channels and website Pictured L to R Penn Community Bank directors and team members W Thomas Lomax Robert L Byers Will Kadri Bruce Weed and Diane Brown Volume 21 1 Quarter 1 15 pabanker com

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COMMUNITY CORNER F M TRUST COMMITS 50 000 TO MENNO HAVEN THE FARMERS NATIONAL BANK OF EMLENTON DONATES TO UNITED WAY OF VENANGO COUNTY F M Trust recently committed 50 000 to Menno Haven a nonpro t senior living provider in Franklin County The commitment is part of Menno Haven s capital campaign to fund its ve year campus expansion plan Project GENESIS Announced in 2016 the 76 5 million construction project includes creating a new rehabilitation center replacing the original 1964 nursing home adding memory care houses building a new resident life center constructing a new health care center and adding new independent living cottages It is being funded through a mix of bonds loans and raised capital Menno Haven s goal is to raise 15 million in gifts multi year pledges and planned gifts to fund the project The Farmers National Bank of Emlenton recently donated 8 976 to the United Way of Venango County in support of their annual fundraising campaign for 2019 Since the start of the program in 2010 employees have contributed over 49 000 to the United Way Annually the employees of Farmers National Bank may contribute toward the campaign through payroll deduction These employee elections have been distributed to the local United Way of ces in the following areas Butler Venango Clarion Grove City DuBois Titusville St Marys Brookville Allegheny County Ridgway Area and Chester W Va The bank s pledge to match all employee donations is directed to the United Way of Venango County home of the bank s headquarters INDEX OF ADVERTISERS ABA Training 55 Cornerstone Advisors 17 ABA Stonier Graduate School of Banking 44 Investors Title Insurance Company 50 ACS 65 L R Webber 57 APPI Energy 11 PA Bankers Services Corporation Career Center 20 Bank Health Care Consortium 60 Pillar Aught 43 Barley Snyder 39 PNC 24 Burns White LLC 23 RKL LLP IFC CloudBnq Inc 11 S R Snodgrass P C BC Commonwealth Charitable Management 33 The Baker Group 4 Compliance Alliance 54 The Mercadien Group 18 PA Bankers Association 16 Volume 21 1 Quarter 1

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Volume 21 1 Quarter 1 17 pabanker com

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FROM YOUR PEERS PA BANKERS CHAMPIONS PROGRAM PA Bankers Program Champions Update PA Bankers Champions Program PA Bankers launched the PA Bankers Champions program to raise awareness of how PA Bankers can assist its members and their employees through educational opportunities advocacy communications access to resources pro tability enhancements and more With that goal in mind more than 55 members have identi ed one or more PA Bankers Champions to ll this role The program s goal is to connect resources and people so that each member institution can maximize the value of its membership and the association can deepen member engagement to achieve greater sustainability Here are some examples of how a PA Bankers Champion can assist your institution If you are seeking training or have an idea or need for a speci c training If you are looking to get more engaged in a volunteer activity to bene t the industry If you have a speci c regulatory or legal concern i e regulatory reform tax issue etc that you would like to bring to the industry s attention or If you are looking to compare products and services for a vendor contract Still need to join the list of members using the PA Bankers PA Bankers Champions Program Webinars Webinar Start Time 10 a m May 6 June 3 July 1 Aug 5 Sept 9 Nov 4 Champions Program We ask that CEOs email Tiffani Chambers director member relations tchambers pabankers com with your PA Bankers Champion today and start connecting the right PA Bankers resources with your organization s needs FINANCIAL INSTITUTIONS SERVICES GROUP HELPING BANKS STAY COMPLIANT AHEAD OF THE CURVE BY OLUTIONS PROVIDING RESPONSIVE FORWARD THINKING INNOVATIVE SOLUTIONS Internal Audit Model Validation Staff Augmentation BSA AML Consulting Regulatory Compliance SOX FDICIA Consulting Enterprise Risk Management Information Technology Audits Salvatore Zerilli CPA CAMS Managing Director Chair Financial Institutions Services szerilli mercadien com Princeton NJ 609 689 9700 Philadelphia PA 215 854 4059 Mercadien com PA Bankers Association 18 Volume 21 1 Quarter 1

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FROM YOUR PEERS RETIRED BANKERS PROGRAM AND EMERGING LEADERS NETWORK Retired Bankers Program Update You will receive an array of PA Bankers bene ts as a member of the Retired Bankers Program including A listing in the Retired Bankers Directory mailed annually to bank CEOs as a resource for consulting projects A complimentary subscription to paBanker Magazine which includes a section devoted to Retired Bankers Members only access to the PA Bankers website and a designated section for Retired Bankers Discounted registration to the annual PA Bankers Convention and an invitation to the Retired Bankers Reception at the convention Receipt of PA Bankers weekly email updates Eligibility for educational programs especially designed for Retired Bankers Access to PA Bankers educational offerings at the member rate Discount travel packages Long term care insurance and other af nity programs as available through PA Bankers Services Corporation Ability to submit articles to paBanker Magazine Opportunity to connect with and mentor peers and colleagues Ability to serve as a faculty member for PA Bankers Schools Opportunity to provide assistance with PA Bankers community nancial education programs and Volume 21 1 Quarter 1 Eligibility to participate in grassroots assistance and be a contributor to PA Bankers Public Affairs Committee PaBPAC Sign up now to enjoy the bene ts and opportunities that come with complimentary membership in the Retired Bankers Program Participation in education and social functions will be on a userpay basis Special pricing will be offered You may become a member of the Retired Bankers Program if you are retired or semi retired from a nancial institution in Pennsylvania after having served 10 or more years regardless of whether the nancial institution was a member of PA Bankers Qualifying service tenure may include years of service in states other than Pennsylvania Retired employees of PA Bankers with 10 or more years of service also may join Individuals retired from nancial regulatory agencies are not eligible for membership The PA Bankers Member Services Policy Committee has nal responsibility for determining eligibility Becoming a member is easy Contact Tiffani Chambers tchambers pabanker com or 717 255 6928 to join today Emerging Leaders Network Update What is an Emerging Leader An emerging leader is a high performer who demonstrates the desire capacity and initiative to make a signi cant contribution to the success of his her bank and community The PA Bankers Emerging Leaders Network is focused on but not limited to banking professionals 40 years of age and younger PA Bankers annual Emerging Leaders Conference is on the move SAVE THE DATE Emerging Leaders Conference Sept 22 23 2019 Renaissance Pittsburgh Hotel Pittsburgh Pa 19 pabanker com

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PA Bankers Services Corporation Career Center Join Us Online Connecting Banking Professionals Many employers are discovering the advantages of searching online for qualified candidates to fill their specific industry jobs But when it comes to finding qualified banking professionals the mass market approach of the mega job boards may not be the best way to find exactly what you re looking for The PA Bankers Services Corporation Career Center linked to the Financial Job Exchange Network gives employers and job seeking professionals a better way to find one another and make that perfect career fit Targeted Advertising Exposure reach a focused audience of industry professionals Easy Online Job Listing Management Resume Search Included with Job Posting Automatic e mail notification when job seekers match your criteria Exposure to multiple websites at no additional cost Build Company Awareness list company information and link to your website and Competitive Pricing package and high use member discounts available If you have any questions about the PA Bankers Services Corporation Career Center please contact Wayne Whipple Vice President Business Development at 717 255 6925 or wwhipple pabanker com http careers pbasc com PA Bankers Association 20 Volume 21 1 Quarter 1

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FROM YOUR PEERS WOMEN IN BANKING NETWORK Women in Banking Conference More than 350 bankers and nancial services professionals attended the sixth annual Women in Banking Conference on March 4 at the Hershey Lodge Convention Center Conference attendees represented a diverse cross section of roles within banks and nancial services rms of all sizes Four attendees received awards as part of the Women in Banking Recognition of Excellence Program The association received nearly 35 nominations for its Women in Banking Recognition of Excellence program The categories and winners included The Patricia A Husic Woman of In uence Award Jeane Vidoni President CEO Penn Community Bank The conference also included guest speakers The Honorable Jelena McWilliams FDIC chairman Sharon Melnick Ph D CFO Horizon Point Inc Kate Shattuck principal Global Financial Markets and co founder Impact Investing Korn Ferry and Maria ContrerasSweet CEO Contreras Sweet Enterprises Champion for Women Award Af liate Member Linda Anderson Owner and Brand Strategist Anderson Group Finally conference attendees donated shoes and handbags to Dress for Success South Central PA a nonpro t organization dedicated to serving women of Pennsylvania The organization s services and inventory is free to women and its mission is to empower women to achieve independence by providing a network of support professional attire and development tools to help women thrive in work and life Save the date for next year s conference Champion for Women Award Financial Institution Member Genevieve Oduor VP Business Development Of cer Community Banking Manager S T Bank Tomorrow s Promise Award Kelly M Carter SVP Comptroller The Gratz Bank Thank you to this year s sponsors March 11 12 2020 Hershey Lodge Convention Center Hershey Pa Volume 21 1 Quarter 1 21 pabanker com

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FROM YOUR PEERS WOMEN IN BANKING NETWORK Hometown Hero Christine Toretti Honored for Global Impact as Trailblazing Businesswoman Each year ATHENA International a nonpro t organization that seeks to support develop and honor female leaders through leadership development and award programs selects one exceptional woman to receive the ATHENA Global Leadership Award This year Indiana based entrepreneur Christine Toretti chairman and CEO of Palladio LLC and rstever female chair of the board of directors of S T Bancorp Inc S T was honored as the 2018 recipient last December In accepting this global award Christine joins a distinguished list of previous recipients including Condoleezza Rice Pat Summit Dolores Huerta Billie Jean King Ruth Bader Ginsberg Marlo Thomas and Laura Liswood This highly prestigious recognition is awarded to women who exude professional excellence give back within their communities and most importantly champion women to reach their full leadership potential Throughout her life Christine has been challenged to overcome adversity in order to succeed as a businesswoman small business advocate community in uencer philanthropist and global ambassador After the unexpected passing of her father in 1990 Christine stepped up from her role as CFO and willingly took ownership of her grandfather s PA Bankers Association IN RECEIVING THIS NOTABLE HONOR CHRISTINE REMAINS GROUNDED STATING I AM HUMBLED TO HAVE BEEN HONORED ALONGSIDE THIS INCREDIBLE GROUP OF WOMEN RECEIVING THIS AWARD HAS TRULY BEEN THE PINNACLE OF MY CAREER I WILL CONTINUE TO MAKE IT MY DUTY TO HELP AS MANY WOMEN FIND THEIR PATH EMBRACE IT AND LIVE IT EVERY DAY Photo Credit Becky Thurner Braddock 101 year old drilling company S W Jack Drilling the largest privately owned land based drilling company in the United States In taking over this position Christine forged forward as a rare female CEO in a male dominated industry and as a working mother at the time she felt siloed with no other female C Suite executives represented in the energy sector This experience inspired her to do what she could to advance more women into leadership roles in every industry and initiate opportunities for businesswomen to support and relate with one another 22 I started a retreat 30 years ago for all female CEOs in the YPO organization the premier leadership organization of chief executives in the world which at the time was only 352 women out of 83 000 members said Christine This kick started a transformational annual initiative that allowed women to support one another make connections and most of all be their authentic selves Her unparalleled determination to keep women in leadership roles at the forefront would pave the way for many rsts in Christine s Volume 21 1 Quarter 1

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FROM YOUR PEERS WOMEN IN BANKING NETWORK professional career including being named the rst female chair of the S T board of directors following in the footsteps of her father who was elected chairman in 1983 Christine serves as a long tenured and valued member of the S T board of directors said Todd D Brice CEO of S T Bancorp Inc Under her direction we have experienced signi cant growth and provided our shareholders above market returns We are proud to have her leadership and valuable business experience in her role as chairwoman of the board of directors Christine s altruistic mentality aligns with the Bank s relationship building mission She not only provides S T with the business acumen needed to successfully grow year over year but also offers a true dedication to humanitarian efforts that make her role as chairwoman of the board even more valuable to S T Bank and the Indiana region Her experience as a woman leader early in her career inspired the direction of her leadership on the S T board where she continually seeks diverse talent from every walk of life to serve the Bank From the onset of her professional career Christine has pioneered her way to the top and now makes it her mission to pave the way for women across all sectors to achieve the same through the foundation of the Anne B Anstine Excellence in Public Service Series in Pennsylvania and the Dodie Londen Excellence in Public Service Series in Arizona both leadership training programs designed to educate and advance women for roles in public of ce elected appointed or grassroots activism In receiving this notable honor Christine remains grounded stating I am humbled to have been honored alongside this incredible group of women Receiving this award has truly been the pinnacle of my career I will continue to make it my duty to help as many women nd their path embrace it and live it every day Legal Solutions for Pennsylvania Bankers Our attorneys Handle commercial class action and complex litigation Assert and defend bankruptcy and creditors rights claims Construct loan facilities Structure business transactions and real estate deals DELAWARE NEW JERSEY OHIO PENNSYLVANIA WEST VIRGINIA BURNSWHITE COM Volume 21 1 Quarter 1 23 pabanker com

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31 6 1 1 167 787 216 5283 31 9 625

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Join Us For PA BANKERS 2019 CONVENTION JW Marriott Desert Springs Resort Spa Palm Desert Calif May 15 18 2019

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PA Bankers Takes the West Coast The Pennsylvania Bankers Association PA Bankers and its Board of Directors invite you to attend the PA Bankers 2019 Convention in beautiful Palm Springs Calif Join hundreds of your peers this spring May 15 18 2019 for networking opportunities and top notch educational programming from banking industry experts The Property From the stunning views of the Coachella Valley to luxurious rooms and suites the JW Marriott Desert Springs Resort Spa offers guests the experience of a lifetime Explore the nearly 234 900 square feet of Li V i i i vi y 7 i w i v courses and a serene spa the JW Marriott Desert Springs Resort Spa offers something for everyone all with the elegance and impeccable service that you expect from a JW Marriott resort Accommodations PA Bankers has negotiated group room rates for a limited number of rooms with the JW Marriott Desert Springs Resort Spa from Friday May 10 Tuesday May 21 based on availability These special rates are only available following registration with PA Bankers via L i V i L i w V i w i i basis Once your registration is received we will e mail you a link to access secured discounted room rates The PA Bankers room rate is 229 There is also a resort fee of 10 per night This fee includes daily in room enhanced wireless internet VVi w i Vi i VVi w i V i i v golf daily golf bag storage unlimited range balls one hour hard court and raDquet rental and all lawn games PA BANKERS 2019 CONVENTION MAY 15 18 2019

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Extracurricular ACTIVITY SCHEDULE The following activities require pre registration PALM SPRINGS AERIAL TRAM Wednesday May 15 Depart Hotel 9 15 a m Return 2 p m Aboard the Palm Springs Aerial Tramway World s Largest Rotating Tramcar you will experience a breath taking journey up the sheer cliffs of Chino Canyon Begin the 10 minute ride at the Valley Station elevation 2 643 ft and end at the Mountain Station elevation 8 516 ft No matter what the season whether you are enjoying spectacular views or hiking in a pristine wilderness a one of a kind experience can be had by all During summer months camping and guided nature walks are available What s at the top There are two restaurants a cocktail lounge observation decks a small natural history museum two theaters showing State Park and tram construction videos a gift shop Magic Memories for photo viewing and over 50 miles of hiking trails SHOPPING SHUTTLE EL PASEO Thursday May 16 Depart Hotel 12 30 p m Return 3 p m i w i i i ii i ii L i v i w i i i i v i i L i i i i Vi i iV wi i V i Saturday evening wine and music series in The Gardens to the glitz and glamour of Fashion Week and specialty stores offering dynamic shopping experiences El Paseo embraces gracious living Offering more than 250 retailers renowned restaurants many with alfresco dining professional services day spas interior designers and more and a scenic back drop that inspires this mile long strip in the heart of Palm Desert turns heads It s a dynamic boulevard buzzing with locally owned boutiques prestigious fashion retailers presenting designer casual v y i i i i Vi i i jV PICKLEBALL TOURNAMENT Thursday May 16 1 p m Tennis Court CELEBRITY HOMES BUS TOUR Friday May 17 Depart Hotel 8 a m Return 11 a m A 2 5 hour tour will allow you to drive by 20 30 beautiful homes of movie stars past and present Our expert guide will entertain your guests not only with Hollywood gossip but will give them a fascinating look into the history of our valley our unique geology and the culture of our Native American tribe A list of residents of Palm Springs is a who s who of Hollywood and the world Here is a list of a few that are on the tour route Jack Benny Zsa Zsa Gabor Elvis Presley Frederick Loewe Liberace Alan Ladd Howard Hughes Mary Martin Marilyn Monroe Nat King Cole Rona Barrett Donald O Connor Peter Lawford Dean Martin Goldie Hawn Kirk Douglas Warner Brothers Estate Ronald Reagan Elizabeth Taylor Hepburn Tracey Lena Horne Mary Pickford Sammy Davis Jr Clark Gable Carole Lombard Frank Sinatra Bob Hope Bing Crosby Darryl Zanuck Jim Tammy Faye Bakker and Lucille Ball Desi Arnez and many many more GOLF TOURNAMENT Friday May 17 1 30 p m Desert Springs Golf Club Palms Course on property Scramble format shotgun start PA BANKERS 2019 CONVENTION MAY 15 18 2019

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2019 PROGRAM SCHEDULE WEDNESDAY MAY 15 2019 9 a m 2 p m 9 20 a m WELCOME TO PALM DESERT RECEPTION 9 30 a m Springs Patio Reception Entertainment 2 4 p m DIRECTOR SESSSION PANEL SESSION Springs Salon F What is Your Digital Strategy Moderator Tony DeSanctis Cornerstone Advisors Inc Panelists John C Gill Somerset Trust Company T Michael Price First Commonwealth Financial Corp Angie Sargent Fulton Financial Corporation Susie B Shipley The Huntington National Bank 6 7 30 p m PA Bankers Chair Remarks James V Dionise Mars Bank 10 40 a m 11 11 50 a m CHAIR S RECEPTION Springs Salon C E Concurrent B Workplace Sexual Harassment in a Post Weinstein Cosby O Reilly Lauer etc World Todd Shill Esquire Pillar Aught REGISTRATION CONTINENTAL BREAKFAST Springs Patio SUNRISE AVINGS San Jacinto Ballroom Includes Continental Breakfast Increase Revenue Reduce Expenses Improve the Customer Experience Featuring Six Services Corp Select Vendors Limited to bankers and Services Corp Select Vendors only 8 10 9 a m 11 11 40 a m Springs Salon C E Concurrent B Banking Audit Committee 101 Understanding and Executing Your Fiduciary Duty Ivan Cilik CPA Baker Tilly Virchow Krause LLP Springs Salon A B Concurrent C Technology Disruptions Impacting Our Lives and the Banking Industry Daniel J Desko and James B Yard Schneider Downs Co Inc NOON GUEST SESSION San Jacinto Ballroom Managing Priorities in a Busy World Linda Eagle Ph D Global Bankers Institute PA BANKERS 2019 CONVENTION GUEST SESSION GENERAL SESSION Springs Salon G L Cyber for the C suite What Executives Need to Know About Cyber Threat Sean O Brien RISK Technologies Inc 1 p m ADJOURNMENT AFTERNOON FREE 12 30 4 p m SHOPPING SHUTTLE El Paseo Depart from the hotel at 12 30 p m Must pre register for this session 1 4 p m 8 10 9 a m Springs Salon A B Concurrent C Winning Policy Changes Developing Effective Relationships with Elected 1H EKCNUq Moderator Duncan Campbell PA Bankers Association Panelists Luke Bernstein Orrstown Bank Allison Beresyak Karakis and Peter Knight FHLBank Pittsburgh San Jacinto Ballroom The Coachella Valley History Beyond Morgan Wind in Her Hair Levine Desert Adventures CONCURRENT SESSIONS Springs Salon F Concurrent A p QNFKPI HHGEVKXG H EKGPV Energetic Board Meetings Frank Bonaventure Esquire and Taylor Tipton Esquire Baker Donelson CONCURRENT SESSIONS Springs Salon F Concurrent A Balance Sheet Strategy Considerations and Utilizing Capital Markets and Mergers Scott Hildenbrand and Emmett Daly Sandler O Neill Partners L P THURSDAY MAY 16 2019 7 8 a m COOKIE BREAK Springs Patio Driving Range Jim s Opening Night 7 a m PA BANKERS ASSOCIATION ANNUAL BUSINESS MEETING Springs Salon G L Introduction of PA Bankers Past Chairs and Special Guests 50 Year Club Inductions Nominating Report Board Election v vwVi Springs Salon F Directors Responsibilities Liabilities Effective Boards High Performing Banks David L Kemp Bankers Management Inc 4 15 5 15 p m GENERAL SESSION Springs Salon G L The State of the Association J Duncan Campbell III PA Bankers Association REGISTRATION South Counter 1 3 30 p m OPENING CEREMONIES Springs Salon G L Presentation of the Colors National Anthem PALM SPRINGS AERIAL TRAM TOUR Depart from the hotel at 9 15 a m Must pre register for this session 1 4 p m 9 10 a m PICKLEBALL TOURNAMENT Meet at the tennis courts at 1 p m Must pre register for this tournament MAY 15 18 2019

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2019 PROGRAM SCHEDULE 1 15 2 15 p m LUNCH LEARN San Jacinto Ballroom Bank CEO Peer Exchange Moderator Alan Kaplan Kaplan Partners Must pre register for this session Limited to Bank CEOs only FRIDAY MAY 17 2019 7 a m CONCURRENT SESSIONS Springs Salon F Concurrent A Diversity Inclusion Linda Eagle Ph D Global Bankers Institute Springs Salon A B Concurrent B Going for the Gold Capital Raising Techniques for Community and Regional Banks Charles Ferry Stevens Lee s Financial Group i vw V David W Swartz Esquire Stevens Lee Springs Salon C E Concurrent C How to Dynamically Measure Monitor and Manage Your Liquidity in a Volatile Rate Environment Ryan Hayhurst The Baker Group LP 8 11 a m CELEBRITY HOMES BUS TOUR Depart from the hotel at 8 a m Must pre register for this session 8 20 a m CONCURRENT SESSIONS Springs Salon A B Concurrent A Medical Marijuana in PA Banking Employment Issues Carter Frantz Esquire and Catherine Walters Esquire Bybel Rutledge LLP Springs Salon C E Concurrent B Payment Trends Fintech Disruptors Tony DeSanctis Cornerstone Advisors Inc Springs Salon F Concurrent C Thriving in a Competitive Banking Environment Panel Discussion Panelist from PNC TBD 9 30 a m GENERAL SESSION A View from Washington Robert S Nichols American Bankers Association PA Economic Outlook Lindsey Piegza Ph D Stifel Nicolaus Company Inc a Parent Company of Keefe Bruyette Woods Inc 11 11 15 a m SNACK BREAK Springs Patio 11 15 a m 12 15 p m ADJOURNMENT AFTERNOON FREE 1 p m GOLF PA Bankers Convention Open The Palm Course Boxed lunch included 7 30 10 p m POOL PARTY Jim s Curtain Call REGISTRATION CONTINENTAL BREAKFAST Springs Patio 7 15 a m 12 20 p m COMBINED SESSION Springs Salon G L A Crisis Leadership and Decision Making Presentation Lieutenant Colonel Robert J Darling United States Marine Corps Ret PA BANKERS 2019 CONVENTION FEATURED SPEAKERS ROBERT J DARLING Lt Col USMC Retired In October 2007 Lieutenant Colonel Darling retired from the United States Marine Corps with just i i v V i i Vi i yi V helicopters in Desert Shield and Desert Storm during i w v 7 v V of Operation Restore Hope In June 1998 he was i iV i y i i i Helicopter Squadron One and in October 2000 he was handpicked to v i 7 i i vwVi v i i i It was in that capacity that Lt Col Darling supported the President Vice President and National Security Advisor in the President s Emergency Operations Center PEOC on Sept 11 2001 In May 2002 he attended the Naval Postgraduate School where he earned his MBA in Financial Management and subsequently served as a Program Manager for the Chief of Naval Operations supporting the Department of the Navy Flying Hour Program As a public speaker on crisis leadership and decision making Bob has addressed numerous academic government and military organizations to include Harvard University s John F Kennedy School of Government and as a guest lecturer on the subject of Crisis Leadership and Counterterrorism at the FBI National Academy in Quantico Va Bob is the author of 24 Hours Inside the President s Bunker 9 11 01 The White House and the President and CEO of Quantitative Analytics LLC and Turning Point Crisis Management USA a crisis leadership decisionmaking and management consulting company located in Stafford Va SEAN O BRIEN CEO RISK Technologies Inc Since his entry into the professional workforce Sean has over 20 years of positions ranging from combat operations leadership sales P L responsibility and growth He is often referred to as a technology unicorn given his ability to operationalize complex concepts through a Big Data Analytic Delivery While he was the president at Atigeo Corporation he sold Big Data Cyber Analytics to the health care industry As the co founder of YaData Solutions a big data analytics company he successfully led the design and sale of Big Data Analytic platforms that supported the U S Special Operations Command U S Marine Corps U S Army The National Security Agency and the DOD CIO YaData delivered analytic platforms that leveraged IBM Technology with operational integration His professional career started in the U S Army as an Airborne Ranger Infantry vwVi L V L i i iVi i V wV V i v L iV i operations For questions about PA Bankers 2019 Convention please contact Jackie Catalano jcatalano pabanker com or 717 255 6939 MAY 15 18 2019

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Palm Desert Known for its shopping galleries and beautiful scenery Palm Desert Calif offers a variety of activities for every type of traveler Take an adventure through the Southern California landscape on one of the many hiking or biking trails swing by more than 100 golf courses taste your way through the region at more than 150 restaurants or enjoy total relaxation at one of the area s incredible spas There is no shortage of adventure relaxation or fun in Palm Desert Planning Your Trip PA BANKERS 2019 CONVENTION PRICING Member Bank Director Rate 1 175 V i i Li vw i i Li i f xI Non Member Rate 2 350 Spouse Family Guest Retired Bank Rate 625 Does not include accommodations For information on accommodations please visit page 2 of the brochure TRAVEL Airport The recommended airport servicing the JW MarriotU Desert Springs Resort Spa is Palm Springs International Airport PSP Ground Transportation Taxicabs are available at the airport However we encourage you to familiarize yourself with Uber or Lyft as this is the most economical form of transportation If you would like to book with a transportation company please contact Jackie Catalano 717 255 6939 and she can provide you with contact information Airlines servicing Palm Springs International Airport PSP Air Canada Alaska Airlines Allegiant Air American Airlines Delta Air Lines JetBlue Sun Country United Airlines Virgin America and West Jet Direct Flight vvi iV v International Airport PSP PA BANKERS 2019 CONVENTION MAY 15 18 2019

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Thank You TO OUR SPONSORS GOLD DIAMOND Chair s Reception Convention Wi Fi Welcome to Palm Desert Swag Bag SILVER Convention Room Keys PA Bankers Registration Desk Co Sponsor Association Staff Attire General Session Snacks Friday May 17 Golf Tournament Prizes Opening Ceremonies Printing of Convention Program Continental Breakfast Thursday May 16 Co Sponsor QPXGPVKQP QP TOCVKQP KVU General Session Snacks Thursday May 16 PA Bankers Registration Desk Co Sponsor Badge Lanyards Continental Breakfast Thursday May 16 Co Sponsor Continental Breakfast Friday May 17 Co Sponsor PLATINUM General Session Keynote Speaker Closing Party Entertainment Co Sponsor 1H EGT KHV Co Sponsor 1H EGT KHV Co Sponsor Combined Session Keynote Speaker Co Sponsor 1H EGT KHV Co Sponsor Closing Party Entertainment Co Sponsor Baker Donelson Combined Session Keynote Speaker Co Sponsor J P Morgan BRONZE KBW Seedcopa PCBB Stradley Ronon Financial Outsourcing Solutions LLC As of 2 1 19 PA BANKERS 2019 CONVENTION MAY 15 18 2019

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ATTENDEE REGISTRATION FORM PA Bankers Convention 2019 Wednesday May 15 Saturday May 18 JW Marriott Desert Springs Resort Spa Palm Desert California Please complete this form legibly make a copy for your records and return the original Only one couple per registration form Multiple bankers should not appear on the same form ATTENDEE First name ________________________ Middle initial ________ Last name __________________________________ Name for badge nickname _______________________________________________________ Male Female Title ____________________________________________________________________________________________ Bank BHC Firm ___________________________________________________________________________________ Mailing address ___________________________________________________________________________________ City _______________________________________________ State _______________ Zip _____________________ Tel ________________________ Cell ________________________ Email ___________________________________ SPOUSE GUEST list information only if individual is attending all functions First name ________________________ Middle initial _____________ Last name _____________________________ Name for badge nickname _______________________________________________________ Male Female FORM COMPLETED BY _______________________________ Email ______________________________________ CONVENTION FEE CATEGORIES every 10 paid registrations within same category entitles the bank institution to a rebate of one registration fee following completion of convention Member Bank Director Rate 1 175 ___________ Associate Member Affiliate Member Rate 1 765 ___________ Non Member Rate 2 350 ___________ Spouse Family Guest Retired Banker Rate 625 ___________ TOURS Name of Attendee Palm Springs Aerial Tram Wednesday May 15 85 pp 4 5 hrs with lunch on your own Shuttle departs from hotel lobby at 9 15 a m _________________________________ _________________________________ ___________ ___________ _________________________________ _________________________________ ___________ ___________ Number attending _________________ n a _________________________________ _________________________________ ___________ ___________ _________________________________ _________________________________ ___________ ___________ _____________________HDCP ______ ___________ _____________________HDCP ______ ___________ Shopping Shuttle Thursday May 16 40 pp 3 hrs Depart from hotel lobby at 12 30 p m Lunch Learn Bank CEO Peer Exchange Thursday May 16 1 15 p m No charge Limited to Bank CEO Only Moderator Alan Kaplan Founder CEO Kaplan Partners Pickleball Tournament Thursday May 16 20 pp Tennis Court Meet at courts at 1 p m Celebrity Homes Bus Tour Friday May 17 85 pp 2 5 hrs Bus departs hotel lobby at 8 a m Golf Tournament Friday May 17 1 30 p m Desert Springs Golf Club Palms Course on property 175 pp includes greens cart fee boxed lunch Scramble format Payment must accompany registration form TOTAL DUE FOR REGISTRATION FEES TOURS GOLF For internal use only Date __________________ PA Bankers Association Fee Check _____________________ Amount _____________________ 32 Volume 21 1 Quarter 1

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I S YO U R BA N K O R B U S I N E SS C O N S I D E R I N G E D U C AT I O N A L I M P R O V E M E N T TAX CREDITS WE DO IT RIGHT MAKE IT SIMPLE EXPERTISE RELATIONSHIPS 15 years experience developed relationships within DCED millions of dollars awarded for dozens of business donors supporting school districts across Pennsylvania SAVE MANAGEMENT TIME AND COST Start to finish administration from state application to annual reporting DONOR RECOGNITION Your logo front and center in all communications FULFILLMENT OF COMMUNITY REINVESTMENT REQUIREMENTS Focused grants fulfill banks CRA while improving education TARGETED LOCATIONS BENEFICIARIES Grants directed to the best education nonprofits in locations ideally matched to benefit your employees customers and potential clients Cristine Clayton COMMONWEALTHCHARITABLE ORG Volume 21 1 Quarter 1 33 commonwealthcharitable org pabanker com

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FEATURED ARTICLE Your Member of Congress Wants To Hear from You The midterm elections have passed and an estimated 5 billion was spent on ashy media campaigns and targeted digital messaging Mailboxes were stuffed with daily attacks on opposing candidates When Election Day nally arrived so did the ubiquitous reminders the barrage of television ads and of course the constant stream of phone calls in case you somehow had forgotten to vote Then it all stopped But what happens after all the advertisements have run and the elections are determined What did you do after November 6th Was voting enough to assure your voice was heard As a banker you deal with the enormous volume of legal and regulatory requirements on a daily basis You have seen the importance of good regulations as well as the impact of regulations that although well intended produce unexpected and sometimes harmful results That means you have to add policy risk to all the other risks that you currently manage Election Day marks the beginning of the congressional process not the end Immediately following the election members of Congress are already hearing from groups seeking support for their particular issue s In fact bankers associations in D C and across the country began educating new members even before the election and have continued this important work But is that enough WAS VOTING ENOUGH TO ASSURE YOUR VOICE WAS HEARD Members of Congress are most responsive to their constituents the people who live and work in the districts they represent Banking professionals more so than individuals in practically any other industry have an incredibly important role in every community they serve That makes you a vital resource in informing members and their staffs on the impact of their decisions in their hometowns When was the last time you met with your member of Congress Does he or she know you by name Do congressional staffers call your organization seeking your expert opinion If this sounds impossible it s not Members of Congress need your help They want to know you and your organization Our political representatives are expected to be knowledgeable about their communities and numerous other issues but they have only a few staffers to help them sift through mountains of information As a leader in your community you can play an essential role in helping your representatives understand what s going on and how they can make a difference Additionally as a banker you can provide expertise on complicated nancial regulations and help staffers About the Author ALLISON BERESNYAK KARAKIS government relations manager for FHLBank Pittsburgh manages the Bank s in district government relations program including the Public Policy Network PPN a coalition of advocates who have a strong interest in nancial services housing and community and economic development She provides education and networking opportunities to PPN members She also builds and maintains relationships with congressional of ces throughout the Bank s three states West Virginia Pennsylvania and Delaware PA Bankers Association 34 Volume 21 1 Quarter 1

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FEATURED ARTICLE decipher the impact of proposed laws The midterm election brought many new members to Washington Ten new senators and 101 new representatives were elected Of the 18 seats in Pennsylvania eight new members were elected in 2018 How do these new members view banking Are they aware of the impact your bank has made in their districts When a new member of Congress considers banking bills do they realize how many neighbors have received a home mortgage from your bank Do they know that the local mechanic bought new equipment through your small business lending program Bankers have the opportunity to share a unique message While you may be in the business of loans and deposits what you really provide is funding to renovate the local community center a car to ensure a family can get to work and school and the spark to help an entrepreneur launch a new product into the world You have your nger on the economic pulse of the communities you serve These are the things that matter to elected of cials Effectively sharing your insights can truly in uence the way a member of Congress votes but it s essential that your representative knows your story before a major piece of legislation is being considered Last minute calls without prior contact have very little impact responsibility you should consider designating an of cer within your bank to manage this effort Building a relationship with your member of Congress can begin with a simple call to his or her of ce requesting a meeting You can also attend an event at which the member will be speaking Chamber of Commerce events are typically a good place to start Congressional staffers are also essential in the process as they write brie ngs for the member and can be your most effective advocates As a result it s very important to identify staffers at events and make time to say hello After the event be sure to follow up with a phone call or meeting request Another option is to showcase the impact of your bank on the local community by hosting your own event such as a tour of an affordable housing project for which you provided the funding Media can be invited providing valuable exposure to both your bank and the member of Congress Building and maintaining relationships with elected of cials should be a part of every bank s business strategy However it is not the sole responsibility of a CEO or other executive bank leader Employees at all levels have networks that can be tapped to help establish and strengthen your bank s relationship with your member of Congress This will take some time and effort but it s an investment worth making Your member of Congress wants you to call Don t miss the opportunity Make the call and ensure your voice is heard Want to learn more Join us at the PA Bankers 2019 Convention for the Winning Policy Changes Developing Effective Relationships with Elected Of cials session on Thursday May 17 from 11 a m to 11 50 a m Peter Knight director of government relations at FHLBank Pittsburgh will join me to discuss the most effective techniques for educating members of Congress about the importance of banking to the communities we serve New to PA Bankers Affiliate Members Wolf Company P C Covington Burling LLP Royer Cooper Cohen Braunfeld LLC As of 3 6 Even when you want to get involved and engage with your political representatives nding time is always a challenge If you are simply too busy to take on this Volume 21 1 Quarter 1 35 pabanker com

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SELECT VENDOR ARTICLE SWIFT Whitepaper Overview Many institutions are adopting the changes with SWIFT Society for Worldwide Interbank Financial Telecommunication Standards MT Message Type Release in 2020 related to payment data management This means removing free format message options for elds 50 and 59 from the MT 103 and related messages to ensure that payer and bene ciary data is systematically captured and exchanged in a structured format As a rst line of defense community banks and credit union banks must adapt and comply with screening detailed information i e full name address when ordering customers and bene ciaries on wire fund transfers To comply with the increase regulations by 2020 businesses are mandated to screen against regulatory published lists of sanctioned entities on upcoming changes with SWIFT Standard MT that enables customers to clearly de ne which counterparties are allowed to transact In addition the new SWIFT structured formats will further increase security in countering against cyber threats that have been negatively impacting banks and nancial institutions for the last several years ARE YOU COMPLIANT WITH THE NEW REGULATIONS MANDATED BY THE SWIFT CUSTOMER SECURITY PROGRAM CSP NEWLY BENCHMARKED STANDARDS ON SWIFT HAVE CAUSED MANY COMMUNITY BANKS AND CREDIT UNION BANKS TO ENHANCE THEIR WIRE FUNDS TRANSFER CONTROLS Pressure on SWIFT Community Banks and Credit Union Banks The newly benchmark standards on SWIFT have applied signi cant pressure on various community banks and credit union banks to do the following Improve methods to identify the name of the payer and the appropriateness of the payment data Ensure interfaces for exchanging SWIFT messages with back of ce applications are working properly Set up and de ne which counterparties are allowed to send FIN wire transfers messages between community credit union banks and nancial institutions Align and secure the local SWIFT infrastructure using the CSP standards and principles against cyber threats The main goal for community credit union banks and nancial institutions is to be able to deliver a robust customer payment from a traditional correspondent bank to enhance the global payments innovation GPI initiative Without upgrading the key processes in accordance with SWIFT Standards MT by 2020 and having a SWIFT Subject Matter Expert the current state to transact payment is slow over 2 3 days expensive and relies on outdated system interfaces to PA Bankers Association 36 capture the necessary information timely and accurately How can you defend against Cyberattacks A new set of standards is being implemented to address an increasing number of large dollar compromises on the SWIFT Network As part of the updated CSP new technical standards are being implemented to address these threats The goal is to improve the current state of your SWIFT infrastructure to prevent fraud and unauthorized nancial transaction from occurring Below are the SWIFT s Customer Security Controls Framework CSCF controls 1 Limit Privilege User Access Based on Job Roles and Responsibilities on IT Applications 2 Reduce the Attack Surface and Vulnerabilities 3 Physically Secure your Environment 4 Prevent Compromise of Credentials 5 Manage Identities and Segregate Privileges 6 Detect Anomalous Activity to Systems or Transaction Records and 7 Plan for Incident Response and Information Sharing Volume 21 1 Quarter 1

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SELECT VENDOR ARTICLE Implementation of security controls such as incident response security awareness training multi factor authentication and detection of anomalous behavior is necessary in order for your bank to protect itself from compromise Escalating their current privileges e g via system exploits or by obtaining user credentials Where are the attacks coming from Repeating to move laterally across the network in search of the end goal SWIFT upstream systems Cyberattacks can occur anywhere in the world at any given point in time For the last few years community banks and credit unions banks have been cyberattacked with unauthorized wire fund transfers i e SWIFT resulting in millions stolen This has been the result of poor SWIFT governance and operational controls due to smaller size and scale of the organizations See below for targeted cyberattacked Performing reconnaissance activities to identify the next target system Performing reconnaissance to understand how transactions can be performed and authorized and executing their end goal submission of fraudulent transactions 2 Wright Patt Credit Union Bank located in Ohio stolen undisclosed amount in 2018 and Additionally there are key methods to circumvent the established SWIFT controls by penetrating either the mail gateway high restrictive controls in which le types are limited to only those necessary endpoint devices software to prevent arbitrary binary execution and control of script and macro execution or account control privilege access rights 3 The National Bank of Blacksburg a community bank located in Virginia hacked twice within eight months and stolen 2 4M in 2017 How Accume Can Help We at Accume Partners have the expertise to meet your requirements Below are our key SWIFT service products What are likely Threat Scenarios Some of the most common root causes of unauthorized access are vulnerabilities identi ed in the internal network such as the following Provide guidance and assist in SWIFT Implementation for your organization 1 American Eagle Credit Union Bank located in Missouri stolen undisclosed amount in 2018 Using malware which compromises the network perimeter and establishes a foothold within the local network Perform an external audit review on Pre and or Post SWIFT Implementation Phase s Evaluate the existing business logic transaction generation data feeds from both internal and external sources and the local SWIFT infrastructure located at headquarter s and any of its subsidiaries and Evaluate security controls are in place to ensure good business practices spanning the SWIFT end to end transaction process Accume Partners can provide 1 a review of end to end local SWIFT infrastructure transactions 2 comparison and benchmark against industry standards and peers 3 data integrity and feeds 4 Cybersecurity and forensic investigations 5 External SWIFT Audit Program in Pre and Post Implementation Plans and 6 Penetration Testing Accume SWIFT Service Team Our Accume Partners team will provide guidance and help ensure control monitoring enforcement of SLA Standard Legal Agreement and maintenance of service quality In addition we will provide guidance on the expectations of SWIFT requirements from 2018 through 2021 These include the following all banks are able to receive GPI messages all payments are tracked via UETR Unique endto end Transaction Reference for MT 103 bene ciary bank MT 202 COV cover payments bankto bank payments all payments are to be con rmed and the same UETR must be passed across from the ordering institution to the intermediary institution to the bene ciary institution to comply with SWIFT Standard Release About the Authors SANJAY MARWAHA Global Risk Regulatory Advisory Services Practice Leader Accume Partners For more information contact Sanjay at 585 721 9399 or email him at smarwaha accumepartners com ALAN CHEUNG Director in the Risk and Regulatory Advisory in Capital Markets BSA AML Compliance Data Analytics and Cybersecurity Accume Partners For more information contact Alan at 646 831 0506 or email him at acheung accumepartners com Volume 21 1 Quarter 1 37 pabanker com

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SELECT VENDOR ARTICLE Regulatory Priorities A Look into 2019 If you ve read any recent headlines on the banking industry you ve likely seen some combination of the following record pro tability strong asset quality and expanding margins There is plenty of great news out there however you will never get the everything is perfect rhetoric from the regulators trust me I used to be one Even with a thriving industry the regulators are always reluctant to get too comfortable and they de nitely don t want bankers to get too comfortable Here is my Regulatory Priority List for 2019 Credit Risk Yes even with the low charge off and past due numbers in the industry credit risk remains a critical regulatory concern Credit risk should always be on the list as this is the most likely cause of bank failures However we saw zero bank failures in all of 2018 So why now the big concern with credit risk In 2018 many banks experienced strong loan demand and as of 3Q 2018 72 percent of banks saw increases in their loan and lease balances from the previous quarter Loan todeposit ratios have increased to pre nancial crisis levels Additionally the regulators have identi ed incremental easing in credit underwriting standards for several years Recommendation Ensure any underwriting and credit administration practices are strong and exceptions to policy are properly identi ed tracked and documented contingency funding planning As always run a scenario where you are considered less than well capitalized and consider the effects to your contingency liability sources Liquidity Risk In the eyes of the regulators more loans equal less on balance sheet liquidity Higher loan to deposit and loanto asset ratios have reduced onbalance sheet liquidity for many banks Additionally reliance on wholesale funding has steadily increased Interest Rate Risk Interest rates have nowhere to go but up right We will see about that however the regulators have been in our ear about rising interest rates since they were last cut by the Fed in late 2008 There are two major concerns Recommendation Conduct forward looking cash ow liquidity analysis and run quarterly stress tests to that cash ow analysis Ensure your liquidity stress testing process is intertwined with your 1 As rates have increased some institutions have had to pay up more rapidly on their deposits in order to keep them These increased liability costs have translated into a more challenging net interest margin picture for them Others have About the Author DALE SHELLER Senior Vice President in the Financial Strategies Group The Baker Group He joined the rm in 2015 after spending six years as a bank examiner with the Federal Deposit Insurance Corporation Sheller holds a bachelor s degree in nance and a master s degree in business administration from Oklahoma State University He works with clients on interest rate risk management liquidity risk management and regulatory issues Contact 800 937 2257 dsheller GoBaker com PA Bankers Association 38 Volume 21 1 Quarter 1

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SELECT VENDOR ARTICLE been fortunate enough to lag and drag the Fed s rate hikes and have seen their margins expand However deposit competition has been heating up as of late and the Fed is now well into its tightening phase 2 Since the historical fall in rates money has own into nonmaturity deposits NMDs at a rapid pace These low cost NMDs have bene ted banks for years but it is unknown whether depositors will now seek higher deposit rates at other institutions or shift into higher yielding time deposits Recommendation Stress test your earnings at risk and capital at risk by changing underlying assumptions on your NMDs repricing betas and time lags Additionally simulate a migration of your lower costing NMDs into higher costing time deposits and or wholesale funding the regulatory agencies including the FFIEC s Cybersecurity Assessment Tool and the FDIC s Information Technology Risk Examination work program The Cybersecurity Assessment Tool will help look at your cybersecurity preparedness and the FDIC work program will give you insight into what examiners will be assessing you on Cybersecurity Risk I don t see cybersecurity risk going away anytime soon and I m sure you don t either Additionally one could easily argue that it is only going to increase each year Banks rely heavily on third party service providers for their IT and cybersecurity systems The regulators expect continued due diligence with respect to thirdparty service providers 2018 was a great year for banking however the regulators feel that 2019 may present additional challenges and risks Whether your next examination starts this coming Monday or in 18 months always strive to improve your risk management processes Recommendation Utilize the publicly available resources from Accessible FLHQW 6ROXWLRQV for Your Bank 2018 BEST BUSINESS LAW FIRM WINNER 2019 Listed by U S News Best Lawyers as a 2019 Harrisburg 7LHU HVW DZ LUP LQ HLJKW SUDFWLFH DUHDV 7LHU UP LQ IRXU SUDFWLFH DUHDV DQG 7LHU UP LQ RQH SUDFWLFH DUHD www BARLEY com LANCASTER YORK READING HARRISBURG GETTYSBURG MALVERN HANOVER HUNT VALLEY MD COLUMBIA MD Volume 21 1 Quarter 1 39 pabanker com

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AFFILIATE MEMBER ARTICLE Will Banks Gamble on New Interactive Gaming Opportunities Available to Customers Consumers utilize online and mobile banking to pay everything from mortgage payments to concert tickets to kids school lunch bills Online purchases linked to a credit card or bank account can be made simply by speaking in the presence of a smart device All of this is done increasingly through a variety of mobile applications speci c to the service if not through a bank directly Consumers increasingly demand the ease of online mobile payment systems and nancial institutions are meeting the challenge Pennsylvania and a handful of other states have recently increased gaming opportunities In Pennsylvania Act 42 of 2017 made several changes to Pennsylvania s gaming laws including creating a mechanism for internet based gaming in the parlance of the statute interactive gaming This legislation has paved the way for legal sports betting and other forms of virtual gambling in the Commonwealth The industry has enormous potential Estimates for Pennsylvania sports betting alone exceed 12 billion annually This gure would triple the sports wagering that occurs in Nevada At the time it was passed portions of Act 42 directly con icted with the federal Professional and Amateur Sports Protection Act PASPA which prohibited sports gambling in most states However PASPA was already the subject of a court challenge at the time PA Bankers Association Act 42 was passed and in May 2018 the U S Supreme Court declared PASPA unconstitutional This removed the nal hurdle for states to legalize sports betting and hastened progress towards interactive gaming in the Commonwealth Since then the Pennsylvania Gaming Control Board has implemented several regulations consistent with Act 42 and is in the process of accepting applications to permit entities to conduct interactive gaming Interactive gaming is expected to be available sometime in 2019 after interactive gaming licenses are in place If current consumer habits hold people will be extremely receptive to online gaming supported by the mobile and internet payment systems that are already commonplace Undoubtedly many who try their luck with this new pastime will seek funding through their existing nancial institutions on a credit or debit basis Act 42 allows participants to create interactive gaming accounts to be funded by money checks electronic checks electronic transfers of money credit cards or any other instrumentality to transmit electronic information The law interprets all wagers made through interactive gaming as deemed to be initiated received or otherwise made within the geographic boundaries of this Commonwealth 40 Clearly the intent is to keep all aspects of interactive gaming within the borders of the Commonwealth However despite authority to do so on the state level nancial institutions should consider whether federal law may limit their ability to provide funding for interactive gaming In particular two federal laws may impact funding of interactive gaming accounts the Unlawful Internet Gambling Enforcement Act UIGEA and The Wire Act UIGEA is likely the law of primary concern to nancial institutions UIGEA prohibits persons engaged in the business of betting or wagering from knowingly accepting payments in connection with the participation of another person in unlawful internet gambling Gambling that is entirely intrastate is excluded from UIGEA This quali cation seemingly provides a safe harbor for gambling under Act 42 which must be conducted entirely within the Commonwealth However interactive gaming adds the element of the internet to the equation Federal courts have held that the internet is inherently an interstate activity regardless of whether the activity crosses state borders Because the internet is an instrumentality of interstate commerce federal law may reach internet use even if the actions occur entirely within the borders Volume 21 1 Quarter 1

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AFFILIATE MEMBER ARTICLE of a single state Therefore while in person cash transactions permitted by Act 42 are outside the reach of UIGEA funding an interactive gaming account online could trigger federal jurisdiction Further although UIGEA s application to persons engaged in the business of betting or wagering would seemingly exclude nancial institutions regulations promulgated by the Treasury Department and the Federal Reserve require entities under their supervision to block prohibited transactions The joint Treasury Federal Reserve regulation requires nancial institutions to follow procedures designed to prevent payments relating to unlawful internet gambling Whether a wager is unlawful in any particular case will depend on the speci c facts and the jurisdiction involved But since the regulation applies to ACH transfers card systems check collection systems wire transfer systems and money transmitting businesses it is generally safe to assume it is applicable to all electronic payments Even though Act 42 provides that all interactive gaming is deemed to occur wholly within the Commonwealth it may be risky for nancial institutions to rely on this safe harbor because of the existing interpretations of federal law Pennsylvania nancial institutions should be mindful of this con ict if they are considering policy changes in the wake of Act 42 The second federal law that may impact funding of interactive gaming accounts is the Wire Act The Wire Act is a law originally passed to ght organized crime Like UIGEA the Wire Act is directed towards those engaged in the business of betting or wagering Therefore the Wire Act is not directed at nancial institutions in normal circumstances But a nancial institution could unwittingly nd itself in the middle of a Wire Act case because of a reality of online gambling that ironically exists in part due to UIGEA regulations It is common in the online gambling world for bettors to use third party hosts to route payments Precisely because nancial institutions have existing UIGEA policies that limit funding sources bettors utilize third parties to mask the true nature of the transaction and avoid UIGEA detection These third party hosts located almost exclusively overseas exist for the purpose of facilitating online gaming accounts Even if a nancial institution could not commit an underlying Wire Act offense it could unwittingly bring itself within the scope of the Wire Act by funding a thirdparty host In practice nancial institutions may be protected from penalties in this situation due to the requirement that they act with knowledge of such transactions Nevertheless it may be advisable to implement policies to provide additional protection to guard against this possibility This is especially necessary given recent efforts by the Department of Justice to expand the reach of the Wire Act On Jan 14 2019 the DOJ delivered a new opinion expanding the previous scope of the Wire Act Since 2011 the DOJ had interpreted the Wire Act as applicable only to sports gambling The new opinion interprets the Wire Act as applying to all forms of gambling While it remains to be seen a broader interpretation of the Wire Act could be a harbinger of more federal scrutiny of gambling that is otherwise legal under state law as has occurred with marijuana legalization Act 42 has already delivered expanded gaming opportunities to Pennsylvanians These opportunities are sure to increase in 2019 once interactive gaming is available But as customers seek methods to nance these opportunities nancial institutions should make sure that any services they provide in this area not only comply with Act 42 but also do not ignore federal law About the Author MICHAEL R PROCTOR is an attorney in the Southpointe Pa of ce of regional law rm Bowles Rice A member of the rm s Banking and Financial Services group he represents lenders in all aspects of their loan portfolios and has signi cant experience with bankruptcy and commercial litigation He can be reached at 724 5148934 or by email at mproctor bowlesrice com Volume 21 1 Quarter 1 41 pabanker com

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AFFILIATE MEMBER ARTICLE Why Asset Size Does Not Matter to Regulators in ERM Conventional wisdom in banking has been that asset size matters in terms of regulatory expectations around enterprise risk management ERM But that traditional school of thought might be changing A new question has emerged is it the institution s asset size that matters or is the complexity of the risk pro le more important A common question among peer roundtables what is a bank expected to do for ERM as it approaches the 10 billion asset size threshold of a regional banking organization RBO The Federal Reserve considers an RBO to have total consolidated assets between 10 billion and 50 billion The next question typically is if regulatory expectations have lessened around comprehensive capital analysis and review CCAR or Dodd Frank Act Stress Test DFAST requirements because of recent reforms in Congress These are hot topics especially for banks below the 10 billion asset size bubble known as community bank organizations CBO by the Fed because the cost of ERM implementation remains high Speci c to CBOs between 2 billion and 5 billion in assets regulatory agencies have been providing more prescriptive guidance and recommendations to upgrade and enhance ERM and model risk management frameworks consistent with existing regulatory guidance aimed at RBOs Examinations are more detailed covering policies and procedures personnel risk appetite risk assessment activities and board reporting Examiners are pushing smaller banks to recognize the ERM value proposition because a keen risk awareness will inspire more informed decisions An effective ERM program starts with the risk culture necessary for appropriate governance of policies and procedures risk awareness training tone from the top and credible challenge The culture should start with the CEO and the board establishing a proactive risk strategy and aligning the risk appetite of the bank with strategic planning Implementing an effective risk management program is understanding your bank s risk pro le and addressing matters proactively having the discipline to identify emerging risks and mitigating those risks before a risk event or loss About the Authors MIKE DEMPSEY is a senior manager at Dixon Hughes Goodman He has more than 20 years of experience related to enterprise operational and third party risk management and regulatory safety and soundness Mike possesses both national and international experience creating and implementing enterprise and operational risk frameworks as well as audit risk methodologies Source This article originally appeared on BankDirector com on Jan 21 2019 and is used by permission PA Bankers Association 42 Volume 21 1 Quarter 1

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AFFILIATE MEMBER ARTICLE As banks approach 10 billion in assets they are expected to increase the rigor around risk identi cation and assess risks for their likelihood and impact before identifying risk mitigating controls A CBO should have a champion to effect change strategically throughout the organization rather than a regulatory or audit check the box exercise The risk management champion can be compared to an orchestra conductor who does not need to do everyone else s job but should be able to hear someone is out of tune Breaking down silos is key because risk management should be a continuous collaborative process involving all stakeholders Regulatory expectations are converging as examiners push smaller banks to show a safe and sound risk management framework This should encompass a separate board risk committee or at a minimum a subcommittee responsible for ERM All banks have traditionally been expected to maintain appropriate risk management processes commensurate with their size and complexity and operate in a safe and sound manner The formality and documentation required is a new evolving trend Board and senior management oversight is important as is risk monitoring and information system reporting Board support is critical to understand risk areas develop training programs and establish accountability among leadership and risk management team members Regulatory scrutiny for banks below 10 billion of assets has increased for ERM sub processes including model risk management new products and services and third party risk management We live in a post CCAR world trending toward deregulation however the regulatory burden of risk management expectations for the smaller CBOs is increasing Essentially asset size does not matter anymore WHICH CAME FIRST IS ALL A MATTER OF PERSPECTIVE No matter which side of the argument Pillar Aught knows how to consider all perspectives to best protect and advance your interests Keen insight extreme responsiveness and deep expertise explain how Pillar Aught has raised the bar Learn how we can impact your business and how we ve transformed the legal services experience pillaraught com Volume 21 1 Quarter 1 43 pabanker com

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achieve Achieve leadership skills at the ABA Stonier Graduate School of Banking the only graduate banking school with an Ivy League location Graduates earn both the Stonier Diploma and Wharton Leadership Certificate Join the next class of bankers learning alongside the industry s finest June 6 13 2019 at the University of Pennsylvania in Philadelphia Apply Today experience ABAStonier com PA Bankers Association 44 Volume 21 1 Quarter 1

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GOVERNMENT RELATIONS STATE Pennsylvania Amends Statutes Affecting Condominiums Cooperatives and Planned Communities On October 19 2018 Governor Tom Wolf signed Act No 2018 84 that will amend Pennsylvania s Uniform Condominium Act Real Estate Cooperative Act and Uniform Planned Community Act The Amendments became effective on Dec 18 2018 and affect various operations of and the rights and obligations of associations unit owners developers and lenders in all common interest ownership projects and communities Below is a summary of many of the changes made by the Amendments Some will apply to condominiums cooperatives and planned communities while others only apply to planned communities Some amendments will apply to declarations recorded after the Amendments become effective Others will apply to existing and newly created communities or projects And as to some the applicability is not entirely clear Although the Amendments have an effective date there are no transition provisions to explain their application to existing condominiums cooperatives and planned communities Changes for Condominiums Cooperatives and Planned Communities The Amendments rst change appears to affect only those projects for which a declaration is recorded after the Amendments become effective or where an existing declaration is amended Volume 21 1 Quarter 1 after that date to assign an association or unit owners responsibilities regarding operation or maintenance of storm water management facilities If the declaration assigns an association or unit owner responsibility for the operation and maintenance of storm water management facilities the declaration must include a statement that upon approval of the permittee s notice of termination by the Department of Environmental Protection or by an authorized county conservation district the association or unit owner then will become responsible for the storm water management facilities permit terms and conditions including long term operation and maintenance of postconstruction storm water best practices in accordance with applicable requirements However the declarant remains responsible for compliance with other obligations with respect to storm water management facilities as may be required by the approved subdivision and land development plans the declaration or this Act until such time as the obligations of the declarant may cease While the obligations of the association or unit owner will be postconstruction the language is not very clear on either the scope of the declarant s obligations or when those obligations will end In addition to levying reasonable 45 nes for delinquent assessments or violations of the declaration bylaws or rules and regulations of the association an association will have the power to suspend unit owners rights including without limitation the right to vote to serve on the board or committees and right of access to common elements recreational facilities or amenities This language raises some interesting questions A unit owner whose assessments are delinquent may be denied access to the community s pool but will the association be permitted to bar the delinquent unit owner from driving on the private roads that are common elements in the community Furthermore the Amendments list these unit owner rights speci cally but indicate that others may be suspended To what other unit owner rights might this suspension power apply If an election of the association s executive board in which at least a majority of the members are unit owners has not taken place prior to the termination of the period of declarant s control of the association then any executive board member who was elected by the unit owners may call a special meeting for the unit owners to do so If there is no executive board member elected by the unit owners then unit owners holding at least 10 percent pabanker com

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GOVERNMENT RELATIONS STATE of the votes in the association may call that special meeting It is clear that this right would apply to an association of a community whose declaration is led after the effective date of the Amendments But does it also apply to an association in an existing community where the declarant has not yet turned over control of the association to the unit owners The Acts already provide that the conveyance or encumbrance of common elements in a condominium part of the cooperative or portions of common facilities in a planned community respectively is void unless done in accordance with requirements speci ed in the applicable Act Those requirements include obtaining approval of persons holding at least 80 percent of the votes in the association in a condominium or planned community and at least 66 66 percent of the votes in a cooperative or a higher percentage if speci ed in the applicable declaration The Amendments specify that a tax sale or involuntary transfer of common elements for condominiums of part of the cooperative for cooperatives and of common facilities for planned communities as well as the judicial sale of a portion of cooperative must also comply with these requirements The application of these unit owner approval requirements to a tax sale involuntary sale or judicial sale raises some interesting questions Will a lender who has made a bank loan to an association secured by an interest in some portion PA Bankers Association of a condominium s common elements part of a cooperative or planned community s common facilities and obtained the required unit owner approval for the loan be required obtain a separate approval from the unit owner after the association has defaulted in order to complete the foreclosure of the mortgaged property An interest in common elements part of the cooperative or an interest in common facilities respectively that is conveyed or subjected to an encumbrance will remain subject to the declaration after such conveyance or encumbrance unless speci cally provided otherwise in the deed or agreement of conveyance or encumbrance Lenders should consider the impact of this Amendment If a portion of a common elements or common facilities or a part of a cooperative has been encumbered by a mortgage that predates the effective date 46 of the Amendments will that mortgage need to be amended in order for the lender to take back the mortgaged property free of the declaration after a mortgage default Before conveying a unit to a purchaser other than the declarant and before the declarant conveys any real estate to the association the declarant has been required to have the real estate released from all liens The Amendments refer to liens as including without limitation real estate taxes in the case of a declarant conveying real estate to the association but the same language is not included in the provision regarding conveyances to purchasers Why was the same language referring to real estate taxes not also included for a declarant conveying a unit to a purchaser free of liens and what is the implication of its absence Changes are being made to the time period within which Volume 21 1 Quarter 1

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GOVERNMENT RELATIONS STATE an association has the right to bring an action to enforce a claim against a declarant for the statutory warranty against structural defects The period had been six years from when the warranty begins The Amendments make the deadline six years after the warranty begins or two years after the unit owners elect an executive board whichever is later thereby potentially stretching the time for a warranty claim if there has not been an executive board election after the termination of declarant control Will this Amendment serve to reinstate a period for an association to bring a warranty claim in a community where the former six year period has already expired but there has not yet been an election of an executive board controlled by the unit owners The most puzzling Amendment which applies only to planned communities relates to certain special rights that a declarant can retain i to cause provisions of the Act regarding master associations to apply to the planned community ii to merge or consolidate the planned community with another planned community iii to subject any portion of the planned community to an easement in favor of anyone who is not an owner or occupant of a unit or iv to designate as a common facility any portion of a planned community or any improvement or facility then existing or contemplated for the planned community For a declarant to retain any of these rights the Planned Community Act has required the declarant to include in the declaration appropriate disclosures and information about the parameters of and what to expect from the exercise of these special rights The Amendment provides that if the declarant preserved the rights described above the declarant s failure to include in the declaration any of the provisions or statements that the Act required for each of the rights preserved shall not affect the enforceability of the provisions or statements as if they were included in the declaration Is this Amendment intended only to apply to declarations which as of the effective dates of the amendments preserved one of the rights prior to the Amendment s effective date or is it to apply for future declarations to allow the speci c provisions for a particular right to be omitted If the purpose of the required provisions or statements is to provide disclosure of how the planned community and its unit owners are to be affected by the exercise of the preserved rights and to provide certain speci cs about those rights with the declaration stating the parameters of the rights if exercised by the declarant how are such unstated provisions or statements to be enforced Without the speci cs provided in the declaration for the particular right reserved what is there to enforce And by whom and against whom are they to be enforced Because the scope and operation of many of the provisions of the Amendments are not entirely clear from the mere text associations developers unit owners and lenders will need more guidance on how to comply with some of these Amendments True clarity may only come from further amendments or by judicial interpretation in litigation Associations executive boards declarants and unit owners and lenders should consider how these Amendments will affect their respective rights and obligations and the operations of the common interest communities in which they have interests Disclaimer This alert has been prepared and published for informational purposes only and is not offered nor should be construed as legal advice For more information please see the rm s full disclaimer About the Authors DAVID HAAS a partner in Duane Morris Philadelphia of ce David I Haas practices includes real estate development residential commercial and industrial joint venture structuring transactions and nancing planned community and condominium development structure and creation of condominium homeowners association and other real estate project governance regimes commercial leases construction contracts zoning and land use AARON FEINBLATT is an associate in Duane Morris Philadelphia of ce He practices in the area of real estate law Volume 21 1 Quarter 1 47 pabanker com

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GOVERNMENT RELATIONS STATE Senate Banking and Insurance Committee Chairman Don White Announces Retirement was strongly supported by PA Bankers that amended the PA Tax Code to exclude goodwill from the calculation of the Bank Shares Tax This was an important proposal that greatly assisted those Pennsylvania banks involved in acquisitions from having to pay additional Bank Shares Tax that resulted from the goodwill that arose in those acquisitions He was a leader in shepherding legislation through the Senate in 2012 that modernized both the Banking Code of 1965 which is the primary statute governing the activities of state chartered banks as well as the Department of Banking Code which provides the PA Department of Banking and Securities its authority to oversee and regulate state chartered institutions These proposals were joint initiatives of PA Bankers and the Department under then Secretary Glenn E Moyer Senator White was also a strong supporter of Act 52 of 2013 that updated and restructured the Bank Shares Tax Pennsylvania banks that pay this tax were facing signi cant increases in the amount they paid each year as a result of more stringent capital requirements that arose after the nancial crisis of 2008 Senator Don White R Indiana recently resigned from the state Senate on Feb 28 2019 Senator White chaired the Banking and Insurance Committee and was rst elected to the Senate in 2000 In addition to Indiana County his district includes Armstrong as well as parts of Butler and Westmoreland Counties Senator White was a strong supporter and champion of the banking industry in Pennsylvania and maintained close relationships with his local banks including S T Bank and First Commonwealth Bank headquartered in Indiana Pa In 2007 he was the prime sponsor of legislation that was part of Act 55 of 2007 which PA Bankers Association 48 Volume 21 1 Quarter 1

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GOVERNMENT RELATIONS STATE In his role as chair of the Banking and Insurance Committee he was well respected by his Senate colleagues who looked to him for advice and guidance on issues concerning the banking and insurance industries that the Senate was considering Among his other legislative accomplishments Senator White was the prime sponsor of a law that revamped Pennsylvania s insurance solvency laws that minimized increases in workers compensation premium costs helping small businesses and preserving jobs As the chairman of the Senate Banking and Insurance Committee Senator White has actively worked to promote competition in the medical insurance marketplace and to improve access and affordability of health care coverage for consumers Born in Kittanning Senator White has lived in Indiana most of his life and is a 1968 graduate of Indiana Area High School He attended Juniata College from 1968 to 1972 Senator White enlisted in the U S Army in 1972 and served in Germany until receiving an Honorable Discharge in 1975 He is married to Sarah Anne Broderick Their daughter Abby is an associate surgeon instructor of surgery at Harvard Medical School PA Bankers deeply appreciates the friendship and support Senator White provided to the industry many individual bankers and the association during his 18 year Senate career We wish you all the best Senator Volume 21 1 Quarter 1 Photo credit The Senate Republican Caucus 49 pabanker com

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SOMEONE IS MAKING MONEY ON TITLE INSURANCE IT SHOULD BE YOU It s like owning your own title insurance company only better PA Bankers Services Corporation along with Investors Title Insurance Company will help you become part of a multi bank owned title insurance agency and share in the pro ts every time title insurance is written To learn more simply give us a call at 717 255 6925 and we ll show you how your bank can earn non interest income from title insurance PA Bankers Association 50 Volume 21 1 Quarter 1

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GOVERNMENT RELATIONS STATE 2017 18 Legislative Session Enactments The 2017 18 legislative session that concluded on Nov 30 2018 saw the enactment of legislation in which PA Bankers was involved or was a priority for the association New laws that impacted banking include Act 81 of 2017 Regulation of NonBank Mortgage Servicers This legislation was an initiative of the PA Department of Banking and Securities DoBS to provide the authority to the Department to regulate non bank mortgage servicers PA Bankers sought amendments to the bill that were included to require the Department to promulgate regulations that incorporate the Consumer Financial Protection Bureau s CFPB mortgage servicer regulations When the CFPB s regulations are altered DoBS shall promulgate regulations making the appropriate changes Act 30 of 2018 Property Assessed Clean Energy PACE Programs for Commercial Real Estate This legislation authorizes municipalities or counties to establish by resolution or ordinance a property assessed clean energy program PACE de ned as a means of nancing clean energy projects water conservation projects or alternative energy systems for commercial properties in a district through a property tax assessment PA Bankers was actively involved in this issue and had a number of concerns with this legislation that were addressed through amendments to the bill Act 32 of 2018 Expedited Foreclosure Procedures for Abandoned and Vacant Properties A high priority for PA Bankers this anti blight initiative provides for an Volume 21 1 Quarter 1 expedited process for the foreclosure of abandoned and vacant residential properties and sets forth criteria for how a determination is to be made if a property is abandoned and vacant as well as who makes that determination The goal of the legislation is to provide another tool in the ght against blighted properties by accelerating the foreclosure process so that a property does not become run down and deteriorated Act 75 of 2018 Authority for Real Estate Brokers to Provide Broker Price Opinions BPO The legislation amended the Real Estate Licensing and Registration Act to provide for circumstances under which real estate brokers can provide Broker Price Opinions BPO A BPO is essentially an estimate prepared by a broker or salesperson that details the probable selling price of a particular property and includes details about the property s condition market and neighborhood A BPO may be prepared only for use in conjunction with a property owned by a lender after an unsuccessful sale at a foreclosure auction a modi cation of a rst or junior mortgage or equity line of credit a short sale a sale of real property in which the proceeds fall short of the amount required to pay off all liens secured by the property or an evaluation or monitoring of a portfolio of properties A BPO shall not be deemed to be an appraisal under the Real Estate Appraisers Certi cation Act or a valuation of real estate under the Appraisal Management Company Registration Act Licensees may not prepare or sign a BPO unless they have completed education 51 in the preparation of BPOs and at least three hours of continuing education in BPO topics prescribed by the rules of the State Real Estate Commission A salesperson may not prepare a BPO unless they have held an active license for the three years immediately preceding the date of the BPO The responsible broker must sign all BPOs including those prepared by a salesperson and any fees charged shall be paid to the broker The State Real Estate Commission is authorized to promulgate temporary regulations to implement the provisions regarding BPOs Act 100 of 2018 Changes to Neighborhood Assistance Tax Credit Program NAP The enactment of this legislation provides long sought after changes to the Neighborhood Assistance Tax Credit Program NAP by proponents of this tax credit program including PA Bankers and a number of individual banks by increasing the total amount of tax credits available under the Neighborhood Assistance Tax Credit program from 18 million to 36 million A new provision was added requiring the Department of Community and Economic Development to issue a report to the General Assembly within 12 months and each ve years thereafter The report must include a funding evaluation of the tax credit program and recommendations on ways the department can interact with and promote the inclusion of community organizations not previously included in the projects receiving tax credits The increase in the amount of the tax credits under the program takes effect on July 1 2019 pabanker com

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GOVERNMENT RELATIONS STATE PA Banks Didn t Shutdown Federal Employees PA Senate Democrats recently highlighted 10 PA Bankers members on their social media accounts showcasing the banks support of the employees impacted by the federal shutdown While we are not surprised by the good work our members are doing we are PABankersProud of the large impact they made earlier this year Graphics provided by the PA Senate Democratic Caucus PA Bankers Association 52 Volume 21 1 Quarter 1

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GOVERNMENT RELATIONS PaBPAC UPDATE 425 000 400 000 Thank you to all who contributed to the 2018 PaBPAC Campaign 350 000 300 000 250 000 200 000 150 000 100 000 Introducing New Medallion Levels for the 2019 PaBPAC Campaign Bronze 1 249 Silver 250 499 Gold 500 799 Platinum 800 999 Denny s Dare 1 000 The 2019 PaBPAC chairman Denny Doll is challenging his peers to match his contribution of 1 000 before the end of April All members who contribute at that level will receive recognition at PA Bankers 2019 Convention in Palm Desert A few things to note 1 Contributions will be counted towards your institution s overall total 2 Medallion recognition at all 2019 PA Bankers events will be based on last year s medallion levels and 3 This is not a solicitation for PaBPAC Federal Volume 21 1 Quarter 1 53 pabanker com

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GOVERNMENT RELATIONS FEDERAL 2019 Different Approach Same Agenda Washington Update January 2019 Signi cant progress at the regulatory agencies as well as the passage and implementation of long sought bipartisan regulatory reform made 2018 a breakthrough year in many ways The new year brings fresh challenges including how to maintain momentum for policy improvements in the face of a newly divided Congress But as I have said on many occasions the fundamental business of banking from the deployment of credit to the building of communities does not belong to one party Banking issues can and should be bipartisan So while our tactics might change with the new dynamic in Washington our agenda hasn t and won t Bank Secrecy Act Reform There is growing consensus that now is the time to update the compliance structure surrounding the nation s anti money laundering rules which has not changed since 1970 We will be working to build bipartisan support for BSA AML reform including updated Suspicious Activity Report and Currency Transaction Report thresholds further modi cations to customer due diligence rules and better communication between banks and law enforcement Cannabis Banking As cannabis is now legal in some form in 33 states the growth in dispensaries as well as numerous BANKING ISSUES CAN AND SHOULD BE BIPARTISAN SO WHILE OUR TACTICS MIGHT CHANGE WITH THE NEW DYNAMIC IN WASHINGTON OUR AGENDA HASN T AND WON T ABA will actively advocate on a range of policy issues in 2019 including additional regulatory reforms that didn t make it into S 2155 such as exam fairness provisions that would establish deadlines for banking agencies to issue exam reports and create an independent examination review and appeal process Other topics we think are ripe for bipartisan action include About the Author ROB NICHOLS President and CEO American Bankers Association PA Bankers Association 56 Volume 21 1 Quarter 1

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GOVERNMENT RELATIONS FEDERAL fast growing offshoot businesses is putting our industry in an untenable position A bank might choose not to serve a marijuana grower or dispensary since cannabis remains illegal under federal law yet still face signi cant legal operational and regulatory risk if it offers services to a customer with a tangential connection to cannabis We ve heard many stories like the bank that was told by its regulator not to lend any more to a local mall owner after it leased space to a cannabis dispensary This con ict between federal and state law is reaching a tipping point and we believe Congress and regulators must provide greater legal clarity Watch for hearings likely to begin with the House Financial Services Committee and for the introduction of bills that address banks challenges While ABA is not weighing in on the societal cultural or moral aspects of this issue we do want legal protections for banks providing services in states where cannabis is legal CECL Accounting Standard Understanding the impact that the Financial Accounting Standards Board s Current Expected Credit Loss accounting standard will have when fully implemented is a signi cant challenge But we know that the standard s upfront loss recognition changes the economics of lending and could force hundreds of banks to raise capital or limit their product offerings For this reason ABA is advocating that a thorough quantitative impact study be conducted before allowing the standard take effect The standard is scheduled to take effect in 2020 for Securities Exchange Commission registrants 2021 for non registrant banks with outside equity debt holders and 2022 for privately held and mutual banks HEALTHCARE COSTS HAVE YOU FEELING BLUE WE HAVE THE SOLUTIONS x Employee Bene ts Consul ng x Employee Bene ts Outsourcing x PA Bankers Health Care Consor um x Data Analy cs x Claims Admin TPA Services x Pharmacy Bene t Administra on x Compliance Services x Care Management Booker Moore 814 695 8066 bmoore lrwebber com Volume 21 1 Quarter 1 57 pabanker com

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GOVERNMENT RELATIONS FEDERAL PA Bankers Welcomes New Members of Pennsylvania Congressional Delegation Congresswoman Madeleine Dean D 4 Rep Madeleine Dean Montgomery and Berks counties sits on the Financial Services Committee as well as the Subcommittee on Oversight and Investigations and the Subcommittee on Diversity and Inclusion She draws on her experience in the Pennsylvania State Legislature where she served as a member and vice chair of the Finance Committee The nancial sector employs many residents of the Pennsylvania 4th District and Rep Dean is working to ensure that this vital industry continues to grow and thrive Congresswoman Chrissy Houlahan D 6 Representative Chrissy Houlahan is an Air Force veteran engineer entrepreneur and educator who is continuing her career of service as the rst woman ever to represent Pennsylvania s 6th District in Congress Houlahan has helped lead several thriving Southeastern Pennsylvania companies including AND1 a basketball apparel company headquartered in Paoli and B Lab the organization that launched the B Corporation movement She went on to serve in Teach for America as a chemistry teacher at Simon Gratz High School in North Philadelphia and then led and scaled a non pro t helping thousands of underserved students all across America build their literacy skills Congressman John Joyce R 13 Dr John Joyce lives in Blair County with his wife Alice Joyce worked with the United States Navy at Portsmouth Naval Hospital in Virginia during Operations Desert Shield and Desert Storm He received commendations from U S Navy Rear Admiral David B LeStage for his work during this time Upon completion of his time with the Navy Dr Joyce returned to his hometown where he and his wife established Altoona Dermatology Associates John was elected to serve as a member of Congress for Pennsylvania s 13th Congressional District in 2018 He was sworn in to of ce on Jan 3 2019 Congressman Dan Meuser R 9 Dan is a conservative business leader who is bringing to Congress his experience as a job creator and as a respected member of his community After school Dan joined Pride Mobility helping transform it from a small business to a large and successful employer named one of the state s best places to work Dan felt called to give back to his community through public service In 2011 Governor Tom Corbett nominated Dan to serve as Pennsylvania s Secretary of Revenue Dan worked to reform the Department of Revenue and make it more ef cient and customer friendly for taxpayers Dan and his wife of 28 years Shelley have raised their three children in Pennsylvania PA Bankers Association 58 Volume 21 1 Quarter 1

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GOVERNMENT RELATIONS FEDERAL Congressman Guy Reschenthaler R 14 Congressman Guy Reschenthaler represents Pennsylvania s 14th Congressional District including Washington Fayette Greene and portions of Westmoreland Counties The son of former teachers Guy was raised in southwestern Pennsylvania graduated from Penn State The Behrend College and completed law school at Duquesne University After law school Guy joined the U S Navy Judge Advocate General Corps and volunteered for duty in Iraq In Baghdad Guy prosecuted nearly 100 terrorists He also successfully defended a Navy SEAL falsely accused of mishandling the Butcher of Fallujah Back home in southwestern Pennsylvania Guy worked in private practice at a multi state law rm Congressman Reschenthaler previously served as a Magisterial District Judge and as a State Senator Congresswoman Mary Scanlon D 5 Congresswoman Mary Gay Scanlon an education and human rights advocate currently represents Pennsylvania s 5th Congressional District She was rst sworn into U S House of Representatives on November 13 2018 Congresswoman Scanlon previously served as national pro bono counsel at a major US law rm where she directed and supervised over 600 lawyers in 15 of ces in providing more than 50 000 hours of pro bono legal services annually to low income clients and non pro t organizations Under her leadership the pro bono program worked on critical issues including voting rights child advocacy immigration housing public bene ts criminal justice reform free press and other constitutional rights The program earned the 2018 American Bar Association s annual pro bono award Congresswoman Scanlon also served as an attorney at the Education Law Center as President of her local school board and as co chair of the Voting Rights Task Force of the Association of Pro Bono Counsel Congresswoman Scanlon s priorities in Congress include voting rights education common sense gun safety legislation and protecting the rights of children families veterans and our seniors She currently serves as Vice Chair of the House Judiciary Committee the House Rules Committee and the House Select Committee on the Modernization of Congress Mary Gay is a graduate of Colgate University and University of Pennsylvania Law School She and her husband Mark have three children Casey Daniel and Matthew Congresswoman Susan Wild D 7 Congresswoman Susan Wild has been a member of the Lehigh Valley community for more than 30 years Her two adult children were born and raised in the Valley where they attended public schools Susan built a successful legal practice while raising her two children and became the rst woman to be appointed as Allentown City Solicitor In November 2018 Congresswoman Wild was elected as the rst woman to represent Pennsylvania s 7th Congressional District in the U S House of Representatives Rep Wild has been appointed to the House Education and Labor Committee and the House Foreign Affairs Committee and is committed to ghting for quality affordable health care for all an economy that bene ts every member of our community and reforming our political system to return government to the American people Volume 21 1 Quarter 1 59 pabanker com

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BANK HEALTH CARE CONSORTIUM OF PA PROVIDES OVI D E SAdSAVINGS SAVI N G S Bank Health h Care Ca Car C arP a r R Consortium SERVICE SE RVI C E AND A N D QUALITY Q UAL ITY The Pennsylvania Bankers Association PA Bankers offers a unique health care program alternative for banking institutions and PA Bankers affiliate members with 50 or more employees Join today WHAT IS A CONSORTIUM A consortium is joining together for the advantages of economies of scale and cost efficiencies Each member organization can choose the benefit plan design and employee contribution structure that best suits its needs while paying its own rate The rates are based on the financial institution s demographics and historical claims experience HOW WILL THE CONSORTIUM ASSIST MY ORGANIZATION The consortium model is a vehicle to stabilize costs and cash flow for employee health benefits It provides benefits design flexibility enabling even small institutions to offer employees a customized benefit program If health benefits claims cost less than the coverage funded the institution may receive a credit for the surplus toward the funding of future health care costs The consortium model offers financial institutions protection from excessive costs in a year in which employees experience high shock medical claims THE CONSORTIUM CURRENTLY WORKS WITH THE FOLLOWING NETWORKS LEARN MORE ABOUT THE PROGRAM If your institution is interested learning more about the consortium contact Wayne Whipple PA Bankers Services Corporation 717 255 6925 wwhipple pabanker com or Brad Webber L R Webber Associates Inc 814 695 8066 x232 bwebber lrwebber com

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A Look Ahead As you plan your training and development for 2019 20 we hope you ll consider learning with us Here s a sneak peek at some of the opportunities to learn with PA Bankers this coming year Please note all dates locations and prices are subject to change M Member A Affiliate NM Non Member Banking Education Agricultural Bankers Conference April 25 2019 The Nittany Lion Inn State College 325 M 385 A 457 50 NM The Agricultural Bankers Conference offers dynamic presentations about the agricultural banking industry s current issues profitability challenges and forecasts Asset Liability Management Seminar June 4 2019 PA Bankers Training Room Harrisburg 325 M 385 A 457 50 NM More information will be available soon School of Banking June 9 13 2019 Penn Stater Conference Center State College 3 000 M 3 500 A 4 000 NM Analogous to 100 level college course study the School of Banking focuses on four primary areas of banking leadership sales and marketing bank environment and finance Faculty includes experienced banking professionals college professors and consultants supporting the financial services industry who focus on providing students with practical knowledge they can apply to their job on a daily basis School of Treasury Management II April 29 30 2019 PA Bankers Training Room Harrisburg 675 M 775 A 1 012 50 NM The School of Treasury Management is a two day program which provides an understanding of bank treasury management also known as cash management products and services discusses how these products provide value to business clients and aids participants in generating revenue and new business relationships Advanced School of Banking July 21 26 2019 Penn Stater Conference Center State College 3 500 M 4 000 A 4 500 NM The three year Advanced School of Banking encompasses a variety of learning techniques to build upon and expand the knowledge acquired at the School of Banking The curriculum including the BankExec asset liability simulation in Year III provides a greater understanding of the multiple banking disciplines and how those disciplines work together within the bank Cash Flow Seminar May 8 2019 PA Bankers Training Room Harrisburg 325 M 385 A 457 50 NM This seminar will compare alternative approaches to cash flow and demonstrate the appropriate application of each approach in assessing and monitoring a borrower s financial performance The program will also teach participants how to determine the maximum line of credit appropriate for a borrower and the factors which will determine when it is appropriate to convert revolving debt to amortizing debt Volume 21 1 Quarter 1 61 pabanker com

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PA BANKERS A LOOK AHEAD Compliance Regulatory School of Compliance 2020 TBD PA Bankers Training Room Harrisburg Regulators continue to emphasize the importance of a comprehensive compliance management system supported by a knowledgeable compliance officer and management team The School of Compliance focuses on the regulatory issues with the highest risks and incorporates discussion of real life examples and best practices BSA Seminar Sept 25 2019 PA Bankers Training Room Harrisburg 325 M 385 A 457 50 NM More information will be available soon Government Relations 2019 ABA Washington Summit April 1 3 2019 Washington D C Registration is FREE for the Government Relations Summit Mutual Community Bank Forum Emerging Leaders Forum and the Women s Leadership Forum Join us in Washington as we unite to educate Congress and regulators on the critical role of America s banks 2019 PA Bankers Day at the State Capitol April 29 2019 Harrisburg This event is free Join us in Harrisburg to learn about advocacy and share examples of how we strengthen our small towns by meeting with key legislators and policymakers Group Association Events Spring Socials Group 4 April 3 2019 Williamsport Country Club Williamsport Group 6 April 11 2019 Blair County Convention Center Altoona Join us for a high energy networking reception featuring heavy hors d oeuvres and games Group 3 April 4 2019 Radisson Lackawanna Station Hotel Scranton PA Bankers 2019 Convention May 15 18 2019 JW Marriott Desert Springs Resort Spa Palm Desert Calif Experience three days packed with dynamic speakers lively discussions about the banking industry inspirational programs fine dining entertainment and more at the PA Bankers 2019 Convention Group 2 April 8 2019 Rivercrest Golf Club Phoenixville Group 5 April 9 2019 Sheraton Harrisburg Hershey Hotel Harrisburg Group 1 April 10 2019 Pittsburgh Marriott North Cranberry Township Human Resources Human Resources Conference 2019 TBD PA Bankers Training Room Harrisburg Join us for the Human Resources Conference Network with peers and learn about current hot topics in human resources from industry professionals PA Bankers Association 62 Volume 21 1 Quarter 1

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PA BANKERS A LOOK AHEAD IT Operations Cybersecurity Seminar April 23 2019 PA Bankers Training Room Harrisburg 325 M 385 A 457 50 NM This seminar is designed to provide training on evolving cybersecurity threats and what your bank should do to build a strong information security program that helps to protect against these threats Security Risk Management Seminar May 9 2019 PA Bankers Training Room Harrisburg 325 M 385 A 457 50 NM Calling all individuals responsible for security and risk management Join us this spring to learn the latest trends in financial crime investigations robberies and preventative policies Leadership Directors Institute June 20 2019 Hershey Country Club Hershey The Directors Institute co sponsored by PA Bankers and Bybel Rutledge LLP is Pennsylvania s premier educational program for directors and senior executives of financial institutions The seminar canvasses current issues facing financial institutions and their boards and includes presentations from various experts in the field 2020 Annual Economic Forecast and Business Leadership Summit Feb 25 2020 Sheraton Harrisburg Hershey Hotel Harrisburg The Annual Economic Forecast and Business Leadership Summit formerly Economic Forecast Summit brings together some of the nation s most respected economic forecasters analysts and technology futurists to provide insights to help business leaders understand the details of today s economy and to prepare for what is expected in the future FDIC Directors College Nov 14 2019 Hershey Country Club Hershey 325 The FDIC Directors College is an interactive one day program designed for bank directors that provides ongoing education on current topics and various elements of bank supervision Lending Real Estate Lending Compliance Seminar Aug 5 6 2019 PA Bankers Training Room Harrisburg 675 M 775 A 1 012 50 NM This program provides an overview of the real estate lending requirements from 10 regulations along with comprehensive coverage of selected topics policy suggestions employee training tips audit techniques and steps to eliminate past problems Emphasis is placed on coverage and exemption rules determining which disclosures are required the content of the required disclosures and prohibited acts or practices School of Consumer Lending April 2 4 2019 PA Bankers Training Room Harrisburg 975 M 1 075 A 1 462 50 NM Join fellow professionals in the lending industry to learn how to make sound credit decisions This educational program provides essential knowledge and skills to lending professionals Volume 21 1 Quarter 1 63 pabanker com

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PA BANKERS A LOOK AHEAD Lending to attain well rounded business development and commercial lending skill sets TRID Essentials Seminar May 16 2019 PA Bankers Training Room Harrisburg 325 M 385 A 457 50 NM This one day program provides a thorough review of the TRID regulations including the 2017 amendments including The general rules contained in 1026 19 The content rules and the detailed instructions for completing the loan estimate from 1026 37 and The content rules and the detailed instructions for completing the closing disclosure from 1026 38 Advanced School of Commercial Lending Aug 21 22 2019 PA Bankers Training Room Harrisburg 675 M 775 A 1 012 50 NM More information will be available soon Essentials of Commercial Lending Seminar Nov 4 5 2019 PA Bankers Training Room Harrisburg 675 M 775 A 1 012 50 NM More information will be available soon Lending Conference Nov 21 22 2019 The Hotel Hershey Hershey 475 M 650 A 712 50 NM The Lending Conference offers education and updates on a variety of current lending topics and provides a valuable opportunity for lenders and bankers to network School of Commercial Lending June 9 13 2019 Penn Stater Conference Center State College 3 000 M 3 500 A 4 000 NM The PA Bankers School of Commercial Lending primarily focuses on business development credit structuring the practical application of commercial lending knowledge and client and internal communication The educational content of this program is similar to 200 and 300 level college course study and is designed for individuals looking Analyzing Personal Financial Statements Dec 10 2019 PA Bankers Training Room Harrisburg 325 M 385 A 457 50 NM More information will be available soon Networks Women in Banking Conference March 11 12 2020 Hershey Lodge Convention Center The Women in Banking Conference provides tailored networking and professional development opportunities to strengthen and deepen involvement in the industry community and the association Emerging Leaders Conference Sept 22 23 2019 Renaissance Pittsburgh Hotel Pittsburgh 325 M 385 A 457 50 NM This conference is designed for individuals from all areas and levels of the banking industry with current leadership responsibilities or those aspiring to a leadership position including but not limited to supervisors managers lenders AVPs and all senior management Wealth Management Trust Wealth Management Trust Conference Exhibition Nov 6 8 2019 Hershey Lodge Convention Center Hershey 475 M 650 A 712 50 NM This conference is a time to connect with fellow bankers hear updates on trends and issues network with trust professionals learn from seasoned presenters and industry experts and visit the exhibitor resources PA Bankers Association 64 Volume 21 1 Quarter 1

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Solutions Are In Our DNA ART COMMUNICATION SYSTEMS INC 800 336 2522 OR 717 232 0144 email acsprint artcomsys com website www artcomsys com Volume 21 1 Quarter 1 65 pabanker com

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PA Bankers Services Corporation Select Vendors Provide PA Bankers Members Savings Service and Quality RISK TECHNOLOGIES Automated CAT Tool Digital Forensic Investigation Network Consensus Cybersecurity Allen Mitchell 215 485 7315 armitchell atrisktech com ABA INSURANCE SERVICES Bond D O Cyber Insurance and Employment Practices Liability Patricia Williams 216 220 1280 pwilliams abais com ACCUME PARTNERS Outsourced Internal Auditing and Risk Management Services Nicole Lloyd 717 903 3142 nlloyd accumepartners com AFFILIATED POWER PURCHASERS INT L Electricity and Natural Gas Procurement Services Jane Seagraves Sidebottom 800 520 6685 jseagraves appienergy com ANDERSON GROUP An Integrated Marketing and Communications Firm Ray Melcher 610 678 1506 rmelcher thinkanderson com APPROVAL PAYMENT SOLUTIONS Merchant Processing Megan Noe 888 311 7248 ext 5011 mnoe apsolutions net THE BAKER GROUP Asset Liability Management Software and Services Charles Amis 405 415 7231 Charlie gobaker com BANK HEALTH CARE CONSORTIUM OF PA 34 banks received credits in surplus of over 8 9 million in 2017 with an average net funding increase in single digits Wayne Whipple 717 255 6925 wwhipple pabanker com BITS Managed Service Provider for Voice and Data Communication Christian Ericson 973 474 1828 Christian ericson bitsnetwork com COMMONWEALTH CHARITABLE MANAGEMENT Cristine Clayton 570 278 3800 cclayton commonwealthcharitable org COMPLIANCE ALLIANCE Quality Compliance Services That Complement and Assist Internal Compliance Personnel Wayne Whipple 717 255 6925 wwhipple pabanker com CORNERSTONE ADVISORS Contract Negotiation Jennifer Wagner 480 425 5204 JWagner crnrstone com SENIOR HOUSING CRIME PREVENTION FOUNDATION Receive High Yielding CRA Credit Sue Shaffer 901 529 4787 sue shaffer SHCPFoundation org DEALERTRACK COLLATERAL MANAGEMENT SERVICES INC Electronic Lien and Title Program Wayne Whipple 717 255 6925 wwhipple pabanker com As of 3 12 19

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DELUXE Check Program Todd Wroblewski 724 625 5599 todd wroblewski deluxe com EQUIAS ALLIANCE AN NFP COMPANY BOLI Executive Compensation and Long Term Care David Shoemaker CPA PFS CFP 901 754 4924 dshoemaker equiasalliance com INVESTORS TITLE INSURANCE COMPANY Multi Bank Owned Title Insurance Program Karen Brittain Barnett 419 577 5900 kbarnett invtitle com THE KAFAFIAN GROUP Performance Measurement Robert E Kafafian 973 299 0300 x106 rkafafian kafafiangroup com EVERFI Financial Education Technology Platform Benjamin Kelbaugh 410 241 1651 bkelbaugh everfi com THE FULCRUM GROUP INTERNATIONAL INC Reviewing Re negotiating and Bidding Check Printing Relationship Ted Amon 770 736 5787 ted thefulcrumgroupintl com GLOBALVISION SYSTEMS INC Anti Money Laundering Catherine Lew 818 998 7851 x128 clew gv systems com MANUFACTURERS ECONOMIC DEVELOPMENT FINANCING ASSOCIATES INC MEDFAS Sam Macrina 610 763 2310 smacrina medfas com OPTIMUM SYSTEM PLUS Outsourced Internal Purchasing Office Supplies Inventory Control Pat McMahon 570 207 5107 pmcmahon opoffice com PA BANKERS SERVICES CORPORATION CAREER CENTER KEYSTATE CAPTIVE MANAGEMENT Brian Amend Managing Director VP Sales Eastern Region 302 425 5158 bamend key state com Connecting Professionals www pbasc com Black 80 PWCAMPBELL Planning Design Coordination and Construction Management Erin Campbell 800 253 7430 Erin campbell pwcampbell com L R WEBBER Multiple Medical Drug Dental Vision Options and EB Solutions Brad Webber 814 695 8066 bwebber lrwebber com Vendor selections and recommendations are made in accordance with PA Bankers Services Corporation s stated mission It is believed that the promoted products and services merit strong consideration by PA Bankers member banks PA Bankers Services Corporation due diligence and selection criteria should not be construed as a guarantee as the ultimate appropriateness may vary from bank to bank In addition member banks are encouraged to conduct their own due diligence reviews of recommended vendors Remuneration received by PA Bankers Services Corporation is utilized in part to support the PA Bankers Association through contracted agreements corporate sponsorships and overhead coverage This financial support expands resources and strengthens the services and programs of the PA Bankers Association As of 3 12 19

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pa PRESORT STD US POSTAGE PAID HARRISBURG PA PERMIT 411 THE OFFICIAL MAGAZINE OF THE PENNSYLVANIA BANKERS ASSOCIATION 3897 North Front Street Harrisburg PA 17110 NO OTHER FIRM No other accounting or consulting firm offers more knowledge of community banks challenges and opportunities than S R Snodgrass www srsnodgrass com banking 833 404 0344 PA Bankers Association Unlike other accounting or consulting firms that work in banking S R Snodgrass works only in banking every day every week of every month for more than 70 years In fact no other accounting and consulting firm has greater knowledge of the needs challenges and opportunities of today s community banks than S R Snodgrass If you think our unique blend of unrivaled banking expertise and personalized service could benefit your bank please allow us to introduce ourselves We d be delighted to meet you 68 Volume 21 1 Quarter 1