QUARTER 3 | VOLUME 22.2
REFLECTIONS FROM PAST CHAIRS
2020-2021
BOARD MEMBERS
WelcomingWelcoming
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PA Bankers Association » Quarter 3, 2020 3
thisISSUE
IN EVERY ISSUE
FEATURES
6 Chairman’s Insights
8 From the CEO to the CEO
10 Ten on Page Ten
12 Community Corner
28 Government Relations
38 A Look Ahead
42 From Your Peers
44 Vendor Articles
18 Welcome 2020-21
New Board Members
20 Meet Your New
Vice Chair
22 Reecting on 125 Years
24 Reections from
Past Chairs
26 #BanksNeverAskThat
Anti-Phishing Campaign
12
QUARTER 3 | VOLUME 22.2
REFLECTIONS FROM PAST CHAIRS
2020-2021
BOARD MEMBERS
Welcoming
Welcoming
WELCOMING 2020-21
BOARD MEMBERS
on the cover
20
4 » PA Bankers Association
PA Bankers Association 54 Volume 21.1 | Quarter 1
C/A COMPLIANCE PRODUCTS BY TOOL TYPE
Calculators
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Training
Past Events
COMPLIANCE
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ACCOUNTING
INFORMATION TECHNOLOGY
STAFF TRAINING
HUMAN RESOURCES
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DEPOSIT OPERATIONS
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COST CENTERSREVENUE CENTERSALL-INCLUSIVE PRODUCTS
PA Bankers Association » Quarter 3, 2020 5
PA Bankers STAFF DIRECTORY
General Phone/Switchboard
(717) 255-6900
President & Chief Executive Ocer
J. Duncan Campbell III
dcampbell@pabankers.com | (717) 255-6916
External Relations
Amy L. Doyle, External Relations Administrative Assistant
adoyle@pabankers.com | (717) 255-6937
Erin L. Kanter, Director, Advocacy & Government Relations
ekanter@pabankers.com | (717) 255-6910
Daniel J. Reisteter, Vice President, Government Relations
dreisteter@pabankers.com | (717) 255-6933
Federal Government Relations & General Counsel
Lisa R. Brandt, Legal Assistant
lbrandt@pabankers.com | (717) 255-6936
Louise A. Rynd, Esq., General Counsel
lrynd@pabankers.com | (717) 255-6935
Finance & Operations
Jill A. Ametrano, Registrar and Records Coordinator
jillametrano@pabankers.com | (717) 255-6927
Michelle L. Bosch, Receptionist and Administrative Assistant
mbosch@pabankers.com | (717) 255-6900
Connie A. Ferraro, Director, Information Technology
cferraro@pabankers.com | (717) 255-6921
Sara E. Hocker, Director of Marketing & Communications
shocker@pabankers.com | (717) 255-6912
Annette M. Moshgat, Director, Finance
amoshgat@pabankers.com | (717) 255-6938
Michelle L. Staton, Senior Vice President, Finance & Operations
mstaton@pabankers.com | (717) 255-6923
Courtney M. Young, Communications & Marketing Coordinator
cyoung@pabankers.com | (717) 255-6915
Member Relations, Professional Development & PA Bankers Services Corporation
Jacqueline A. Catalano, Vice President, Professional Development
jcatalano@pabankers.com | (717) 255-6939
Tiani A. Chambers, Director, PA Bankers Services Corporation
tchambers@pabankers.com | (717) 255-6928
Karen J. McDermott, Director, Member Relations
kmcdermott@pabankers.com | (717) 255-6914
Linda A. Scott, Member Relations Administrative Assistant
lscott@pabankers.com | (717) 255-6903
Cynthia L. Wallett, Senior Vice President, Member Relations and Professional Development,
and Managing Director, PA Bankers Services Corporation
cwallett@pabankers.com | (717) 255-6913
Wayne R. Whipple, Vice President, Business Development
wwhipple@pabankers.com | (717) 255-6925
Marilyn M. Wisniewski, Director, Residential Schools & Meeting Operations
mwisniewski@pabankers.com | (717) 255-6934
magazineSTAFF
Managing Sara E. Hocker
Editor
Editorial J. Duncan Campbell III
Advisors Jacqueline A. Catalano
Tiani A. Chambers
Daniel J. Reisteter
Louise A. Rynd
Michelle L. Staton
Cynthia L. Wallett
Wayne R. Whipple
Courtney M. Young
PA Bankers Services Corporation Board of
Directors and Ocers
President Jennifer A. Poulsen
Secretary M. Theresa Schwartzer
Treasurer J. Duncan Campbell III
Ocers Gerard A. Champi
Trudy K. Everhart
Timothy M. Finnerty
Scott E. Fritz
Richard L. Greslick
Timothy G. Henry
Karl F. Krebs
David E. Raven
Jerey A. Stopko
Tracy E. Watkins
Dale A. Westwood
Address Correspondence to:
paBanker Magazine
c/o Pennsylvania Bankers Association
3897 N. Front St., Harrisburg, PA 17110
Tel. (717) 255-6912
E-mail: shocker@pabankers.com
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
nancial institutions with educational programs,
member services and represents members on
the state and federal level. Since 1895, PA Bankers
continuously worked to be the premier nancial
services organization supporting a diversied
membership through volunteer participation, a
knowledgeable sta, state of the art technology
and a commitment to excellence.
paBanker Magazine is the ocial publication of
PA Bankers.
Editorial
The opinions expressed in articles by authors
other than Association sta and ocers 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 notied, have been written by paBanker
Magazine sta. 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.
Postmaster, send all address changes to:
paBanker Magazine
3897 N. Front St., Harrisburg, PA 17110
Printed by: HAAS Printing Co
Sponsored by:
6 » PA Bankers Association
t is my great honor to serve as
the PA Bankers chair for 2020-
21, as I’m privileged to follow in
the footsteps of so many great
men and women who have
chaired the Pennsylvania Bankers
Association during its 125 years of
existence. Today, we are considered
one of the nation’s leading state
associations, investing in the future
growth and success of the financial
services industry.
I am proud to take the handoff
from Mike Price, who led us so
effectively during the past year,
most notably navigating through the
COVID-19 crisis and initial stages of
its economic impact. We thought
we would be honoring Mike for his
efforts in Bermuda and celebrating
his association year by enjoying each
other’s company in-person. Instead,
we recognized Mike at our first virtual
Annual Meeting in early June. This
adjustment enabled us to convene
as an industry to advance the
Association’s business and welcome
new officers and board members.
Relationships have always been
at the core of our PA Bankers
I
Relationships Are
At Our Core
Adapted from his June 2020 Virtual Annual Meeting Remarks
J. BRADLEY SCOVILL
President & CEO
C&N
Association, built over time
through our shared experiences
and tested and strengthened by
the difficult challenges we have
faced. Providing our industry with
the ability to do well while we do
good. While not surprising, it has
been impressive to once again see
our bankers come together during
COVID to serve our customers,
communities, commonwealth and
nation. These bonds have allowed
us to learn from each other, share
ideas with each other, and help
each other through the past several
months in a manner that has
strengthened our association and
industry for the future.
Relationships matter. You don’t need
them until you do, and they can’t
be built “just-in-time” to deal with a
significant challenge. And now we
have another major issue to address
as a nation – racism. There are no
short-term, easy solutions to this
societal challenge. However, the
anger, sadness and frustration of
recent events serve as a catalyst
for more listening, understanding
and introspection. Our response
will require us as Pennsylvania
bankers to engage and be open to
diverse perspectives and innovative
ideas, while drawing on established
relationships within our banks and our
communities, across the industry and
with policymakers in all parties.
We have a long history of galvanizing
as an industry during times of
crisis and responding to change.
Recently, our initiatives to develop
Women in Banking and Emerging
Leaders programs, focus on civility
and engagement, tell our story and
enhance our alignment around
advocacy, develop partnerships
with the Bankwork$ program and
CSBS case study participation, and
prioritize diversity and inclusion and
digital banking reflect our capacity to
lock arms and take actions that have
lasting impact.
So we will lock arms and take action
again as we leverage all of PA
Bankers’ existing resources and work
together to restore Pennsylvania’s
post-COVID economy. We will also
collaborate to build a sustainable
action plan for a diversity and
inclusion initiative that will strengthen
the industry and our communities
chairman’sINSIGHTS
PA Bankers Association » Quarter 3, 2020 7
over time. As always, our bankers will
work side by side—small community
banks, regional banks, larger banks,
women and men of all races and
backgrounds because the fabric
woven of all those relationships
makes us a stronger industry.
We will emerge from this time with
a refreshed commitment to serving
our customers and communities
and a focus on delivering services in
ways that create value. Responding
to COVID required us to look inward
to deal with the daily challenges
that were constantly front of mind;
now is the time for us all to look
outward and focus on our future -
our industry’s future, our customers’
future and our commonwealth’s
future. And, as always, PA Bankers
will be at the center of leading us into
that future.
As your 2020-2021 PA Bankers chair,
working with our committed and
talented board of directors, I stand
on the shoulders of Mike Price and
the leaders that came before him
to further the good that they have
started. Thank you for the trust that
you have placed in me and the other
officers, along with the incoming
board of directors.
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Thank you very much.
8 » PA Bankers Association
e have already had
such a unique year,
and yet 2020 has
another quarter left
to go. What else can
possibly happen? It is hard for any of
us to predict what to expect, as we
claw our way out of this COVID-19
pandemic.
The PA Bankers Board of Directors
met virtually last month for our
strategic board retreat, and the
economic impact of this health
emergency was on everyone’s
mind. Future economic conditions
are so uncertain—credit quality,
continued interest rate compression,
an inverted/flat yield curve. How
long will this health crisis continue,
and what are the lasting economic
effects? At the state level, how does
the state government address a $3-5
billion hole in the state budget? These
are all pertinent and concerning
questions, both for our customers and
our banks, themselves.
Equally important, the board spent
significant time talking through the
issue of diversity and inclusion with
Mr. David Motley, founder of the
African American Directors Forum.
David helped us think through the
positive effects that our financial
A Summer
Like No Other
institutions will realize through
the development of a diverse and
inclusive workforce. We have work
to do, both as an industry and as an
association, but this was a focused
starting point of a purposeful and
intentional discussion.
I am grateful that as part of this retreat
discussion the board authorized
the establishment of a D&I Advisory
Council. This group will look across
the association enterprise to review
our volunteer efforts, with specific
interest in building more diversity
within our association boards and
committees. Additionally, this
advisory group will help us look at
opportunities for D&I training for our
members and evaluate potential
partnerships that will help to support
our recruitment, retention and
advancement efforts. We thank our
members and professional friends
who have agreed to give their time to
this initiative, and we look forward to
benefiting from their experience and
expertise.
The second day of the retreat
included a presentation by Rob
Nichols, president and CEO of the
American Bankers Association, who
provided us with a Washington
update, updated us about the current
CARES 2.0 legislation, and offered us
some election forecasting for Nov. 3.
Regardless of the election’s outcome,
we remain concerned that our efforts
during this COVID-19 crisis will not be
viewed consistently by the federal
regulators during their examinations.
We hope that they will follow the
interagency statement that was issued
by the FFIEC in June, stating that
“The agencies have issued numerous
statements related to supervisory
policy since the declaration of the
national emergency. Appropriate
actions taken by institutions in good
faith reliance on such statements,
within applicable timeframes
described in such statements, will
not be subject to criticism or other
supervisory action.
The banking industry has received
so many positive comments from
the federal and state regulators,
lauding us for our efforts during
this crisis. In Pennsylvania alone,
we originated more than 173,000
Paycheck Protection Program loans,
equating to more than $20.7 billion
of loans for Pennsylvania’s small
businesses. Hundreds of thousands of
jobs were saved because the banking
industry worked around the clock to
ensure the survival of their local small
businesses. And, the PPP was just one
from the CEO to the CEO
DUNCAN CAMPBELL
President & CEO, PA Bankers Association
W
PA Bankers Association » Quarter 3, 2020 9
example of how banks served their
customers during this time of need—
loan modifications, forbearance
offerings and fee waivers all were
provided by banks to their customers.
At the state level, we were pleased to
have the Senate Banking & Insurance
Committee Chairman Mario Scavello
join the retreat and offer us a
state legislative update. Chairman
Scavello represents parts of Monroe
and Northampton Counties. He
recognized the significant efforts
of the banking industry during the
pandemic, especially with regards
to PPP loans to Pennsylvania’s small
businesses.
We concluded the retreat with
a discussion about our training
efforts for this association year. In
practicality, we may not be back in
person together until 2021. But, we
still have important education and
professional development seminars,
conferences and schools to offer
the membership. We will continue
to work with you to ensure that we
are meeting your needs and ask that
you join us for our virtual trainings.
There are important regulatory and
industry topics that our banks need
to understand. We hope you will join
us by video for the training sessions
and member relations opportunities
that meet your needs.
I want to thank you all, again, for all
that you are doing for your customers
and communities. Your PA Bankers
staff is here to support you. Please
reach out to us and let us know
how we can assist your efforts. We
will continue to get through this
pandemic, and we will get through it
together.
Take care and stay well!
Sincerely,
CINNAIRE.COM
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Transforming Communities. Transforming Lives.
10 » PA Bankers Association
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Ryan@GoBaker.com
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800.937.2257
Member: FINRA and SIPC
The Baker Group
Is Here to Help
As American financial institutions—along with
the rest of the world—face unprecedented times,
The Baker Group is ready with tools and services
to help
maximize the performance of
your institution.
That’s why we’re oering new clients our
Software Solutions*
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six-month free trial
. Not only will you have
access to our latest market research and insight
from our Financial Strategies Group, you’ll be
included in all of our webinars. There you’ll hear
the latest on how COVID-19 could impact your
institution and its investment portfolio.
Baker’s Software Solutions Service
Package Includes:
Asset/Liability Analysis – Interest Rate Risk Monitor (IRRM®)
Your management team will find that The Baker Group’s
quarterly review of the loan and deposit information
outlined in the Interest Rate Risk Monitor and Asset
Liability Analysis is an eective tool in managing your
risk and performance.
Baker Bond Accounting
®
(BBA)
The Baker Group will provide you with accurate, easy-to-
read reports delivered electronically to you each month.
Investment Analysis – Advanced Portfolio Monitor (APM®)
The Advanced Portfolio Monitor is a key monthly report
that we utilize to help you measure, monitor, and manage
the overall risk and performance of your investments.
To obtain the resources you need to maximize the performance of your
bank, contact Ryan Hayhurst with our Financial Strategies Group
at 800.937.2257, or via email at Ryan@GoBaker.com.
Stay Connected with PA Bankers!
tenONpageTEN
The beginning of 2020 has been a learning experience for all of us. Working from home, wearing masks and social
distancing are all part of the new normal for our industry. The association staff has been hard at work to ensure
our members are getting the most up-to-date information, while still providing various training opportunities.
Check out these 10 ways to stay engaged with PA Bankers while working remotely.
1» NEW WEBSITE: If you have not already noticed, we recently released our new website, www.pabankers.com,
which makes it much easier to navigate everything PA Bankers has to offer.
2» WEBSITE RESOURCES: With a new website comes new resources. The website now features new COVID-19,
digital banking and diversity and inclusion resources, while still housing a platform for member resources and
products and services offerings.
3» NEW APP: We have developed an app to make our event information more easily accessible to our members.
The new app includes an event calendar with the capability to register for events at the touch of a finger,
receive event alerts and access event handouts exclusive to registered attendees. The app also includes news
updates, member resources, products and services, and advocacy information. Be sure to download the
PA Bankers app in the Apple App or Google Play Stores in order to access all of these resources.
4» PA BANKERS VIRTUAL TRAININGS: In an effort to continue to provide training and events to our members during
the pandemic, we have switched all in-person events to virtual trainings for the remainder of 2020. Be on the
lookout for emails from the association to register for these events.
5» AMERICAN BANKERS ASSOCIATION: The ABA is a great source for even more online training, offering facilitated
and self-paced online training through the ABA Training Program. Be sure to access these trainings through the
PA Bankers website to receive a member discount.
6» ONCOURSE LEARNING: Formally TTS, OnCourse Learning provides live or on-demand webinars to your financial
institution on banking-specific topics. From the convenience of your desktop, you can get additional training on
everything from audits, to compliance, to customer service, to marketing and more, perfect for social distancing.
7» PEER EXCHANGE CALLS: We will continue to host peer exchange calls to provide a space for our members to
communicate new information, issues and positive achievements.
8» EMERGING LEADERS NETWORK: The Emerging Leaders Committee will be launching an initiative to allow
complimentary individual membership for the Emerging Leaders Network. This membership will allow the
association to identify bankers who wish to engage with the initiative and permit the committee to grow the
network and encourage regional networking, mentorship, training and development.
9» PA BANKERS CHAMPIONS: Learn about how the association can assist your bank and your colleagues by
becoming a PA Bankers Champion for your bank. The PA Bankers Champions program provides your institution
a source for information about educational opportunities, advocacy, communications, access to resources,
profitability enhancements and more.
10» COMMITTEE VOLUNTEER OPPORTUNITIES: Interested in participating in or shaping the future of PA Bankers as
we continue to navigate through the pandemic? Members can self-submit a volunteer recruitment form and/or
be nominated by another PA Bankers member to serve on our board or one of our many banking-related policy,
advisory or standing committees.
We are committed to providing all these resources and more to our members during these unprecedented times.
Stay engaged with PA Bankers while you navigate through the new normal.
PA Bankers Association » Quarter 3, 2020 11
*The Baker Group LP is the sole authorized distributor for the products and
services developed and provided by The Baker Group Software Solutions, Inc.
Oklahoma City, OK | Atlanta, GA
Austin, TX | Indianapolis, IN | Long Island, NY
Salt Lake City, UT | Springfield, IL
Ryan@GoBaker.com
www.GoBaker.com
800.937.2257
Member: FINRA and SIPC
The Baker Group
Is Here to Help
As American financial institutions—along with
the rest of the world—face unprecedented times,
The Baker Group is ready with tools and services
to help
maximize the performance of
your institution.
That’s why we’re oering new clients our
Software Solutions*
service package for a
six-month free trial
. Not only will you have
access to our latest market research and insight
from our Financial Strategies Group, you’ll be
included in all of our webinars. There you’ll hear
the latest on how COVID-19 could impact your
institution and its investment portfolio.
Baker’s Software Solutions Service
Package Includes:
Asset/Liability Analysis – Interest Rate Risk Monitor (IRRM®)
Your management team will find that The Baker Group’s
quarterly review of the loan and deposit information
outlined in the Interest Rate Risk Monitor and Asset
Liability Analysis is an eective tool in managing your
risk and performance.
Baker Bond Accounting
®
(BBA)
The Baker Group will provide you with accurate, easy-to-
read reports delivered electronically to you each month.
Investment Analysis – Advanced Portfolio Monitor (APM®)
The Advanced Portfolio Monitor is a key monthly report
that we utilize to help you measure, monitor, and manage
the overall risk and performance of your investments.
To obtain the resources you need to maximize the performance of your
bank, contact Ryan Hayhurst with our Financial Strategies Group
at 800.937.2257, or via email at Ryan@GoBaker.com.
12 » PA Bankers Association
communityCORNER
1ST SUMMIT BANK Gets Creative
with Community Involvement and
Social Distancing
pril is Child Abuse
Awareness Month and
1ST SUMMIT BANK joined
the community-wide effort to raise
awareness. While also supporting
social distancing, 1ST SUMMIT
BANK is doing what it can through
donations like this to Circle of
Support Child Advocacy Center.
The Cambria County nonprofit's
program Pinwheels for Prevention
brings attention to the bright future
all kids deserve and how we can
help reduce the trauma suffered by
victims of child abuse.
1ST SUMMIT BANK is sharing their support with customers doing their banking at
their drive-thru in Richland. The display of pinwheels serves as a symbol of the
positive effect we can have when we all work together.
A
Derek Partsch, Public Relations Specialist for 1ST
SUMMIT BANK, plants pinwheels at the Richland
Office in Johnstown, Pa.
1ST SUMMIT BANK Helps 22 Food Banks
Feed Their Communities
ST SUMMIT BANK
donated $6500 to
22 food banks in five
counties and answered the
call for help when these
organizations needed it the
most. With unemployment
soaring and kids not able to
eat at school, more people
than ever are turning to
their local food banks for
basic sustenance. These
food distribution centers are
seeing at least a 50-percent increase in the number of visitors, many for the
very first time.
Food banks are struggling to meet this increased need at a time when food
supplies are at their lowest. With the current run on groceries, stores have less
provisions to donate while, at the same time, less people are donating. These
local nonprofits are calling for our help.
Thanks to 1ST SUMMIT, food banks in Cambria, Somerset, Indiana, Westmoreland
and Blair Counties can feed an additional 65,000 meals to their communities.
F&M Trust
Donates $100K
to Support
COVID-19
Relief Efforts
n response to the current
health crisis, F&M Trust
recently announced
a donation of $100,000 to
support COVID-19 relief efforts
in Central Pennsylvania.
The contribution will provide
those on the front lines of the
coronavirus crisis, including
first responders and nonprofit
organizations, with the
resources they need to act
quickly and protect the most
vulnerable.
Among the organizations
receiving funds from F&M
Trust are the United Way
chapters in Franklin County,
Carlisle/Cumberland County,
Shippensburg and the Greater
Harrisburg/Capital Region.
Relief funds will also be
distributed to first responders,
including fire companies and
EMS units that support F&M
Trust’s 22 Community Offices
across Central Pennsylvania.
Additionally, funds from the
donation will be disbursed
to the Fulton County Family
Partnership.
1
I
Contact:
Shelby White
Corporate Communications Officer
(717) 262-7565
shelby.white@f-mtrust.com
For Immediate Release
April 23, 2020
F&M Trust Donates $100K to Support COVID-19 Relief Efforts
CHAMBERSBURG, Pa In response to the current health crisis, F&M Trust today announced a
donation of $100,000 to support COVID-19 relief efforts in Central Pennsylvania.
The contribution will provide those on the front lines of the coronavirus crisis, including first
responders and nonprofit organizations, with the resources they need to act quickly and protect
the most vulnerable.
Among the organizations receiving funds from F&M Trust are the United Way chapters in
Franklin County, Carlisle/Cumberland County, Shippensburg and the Greater Harrisburg/Capital
Region. Relief funds will also be distributed to first responders, including fire companies and
EMS units that support F&M Trusts 22 Community Offices across Central Pennsylvania.
Additionally, funds from the donation will be disbursed to the Fulton County Family Partnership.
“For over a century, F&M Trust has been supporting our communities in times of need, and now
is no different. As a community bank, we view it as our responsibility to help the people in our
communities who are struggling to keep their families housed and fed during this outbreak,” said
Tim Henry, President and CEO of F&M Trust. “Now, more than ever, F&M Trust is stepping up
to be a force for good for our neighbors in Central Pennsylvania. We believe together, we will
get through this unprecedented challenge.”
Of the bank’s donation, $10,000 was contributed by the employees of F&M Trust.
Henry added: “This $10,000 contribution is a testament to F&M Trust employees, who selflessly
give of their time and money year after year to support local organizations. This outpouring of
charity and goodwill does not surprise me, but it nevertheless makes me proud.”
F&M Trust continues to serve its customers through drive-up services, ATMs, online banking,
mobile banking and telephone banking. The bank also provides banking services that require an
in-person meeting by appointment only.
To find the most up-to-date information about F&M Trust’s response to the coronavirus
pandemic, please visit fmtrust.bank/covid-19.
PA Bankers Association » Quarter 3, 2020 13
id Penn Bank recently presented more than 100
first responder organizations in Pennsylvania
with a total of $22,000 through the bank’s First
Responders Donation Program. The donations were made
through Mid Penn Bank and Scottdale Bank & Trust, a
division of Mid Penn Bank, located in Western PA.
The First Responders Donation Program was instituted by the
bank to thank the fire companies, ambulance associations
and other organizations that protect and serve the local
community. The program rewards first responders with a
donation calculated from their average account balance.
Mid Penn Bank is strongly committed to supporting
charitable organizations through various means, including
corporate donations, employee volunteerism and
fundraising. The First Responders Donation Program
demonstrates just a fraction of the charitable giving Mid
Penn Bank distributes to its communities each year. Mid
Penn regularly contributes to causes including health and
human services, community improvement and education.
Do you have hometown happenings that
you'd like to share?
Send your bank's community news to Courtney Young, PA Bankers'
communications & marketing coordinator (cyoung@pabankers.com),
for a chance to be featured in paBanker Magazine or on
PA Bankers' social media channels and website.
Mid Penn Bank contributes $22,000 through First
Responders Donation Program
M
14 » PA Bankers Association
communityCORNER
NEW TO PA Bankers
Affiliate Members:
Cost Control Associates
Fintel Connect
Financial Institutions:
Centre 1st Bank
Welcome
&N recognizes the importance of investing in
local education with $500,000 in donations to
area educational improvement and scholarship
organizations.
Education is key to a strong and prosperous community.
However, there are many roadblocks preventing children from
receiving the level of education they deserve. C&N is committed
to closing this gap by supporting local organizations that have
made it their mission to make sure every child has access to
the educational opportunities. By investing in youth, the bank
is putting the local economies on the path to sustained growth
and giving the children more opportunities to thrive.
The following organizations in Tioga County were presented
with checks to support their mission for providing strong
educational programs:
Wellsboro Area School District (Through the
Tioga County Foundation) — $17,000
Southern Tioga Area School District (Through the
Tioga County Foundation) — $13,000
Northern Tioga Area School District (Through the
Tioga County Foundation) — $15,000
General Council of Assemblies of God —
Covenant Scholarship Organization — $8,000
Trinity Lutheran Church and School — $11,000
In addition to these organizations, C&N supported other
educational program throughout their footprint including:
Bradford County Athens Area School District, $18,000;
Epiphany Academy Scholarship, $8,000; Saint Agnes
Academy Scholarship, $8,000; Sayre Area School District,
$7,000; Sullivan County Area School District, $10,000;
Towanda Area School District Foundation, $18,000; and
Troy Area School District, $18,000.
Bucks County Big Brothers Big Sisters of Bucks County,
$5,000; Bucks County Community College Foundation,
$2,000; Bucks County Free Library, $2,000; Bucks County
Historical Society, $17,000; CB Cares Educational Foundation,
$12,000; Centennial Education Foundation, $7,000; Council
Rock Education Foundation, $18,000; Foundation for Learning
in Tredyffrin/Easttown, $2,000; Lakeside Youth Services,
$2,000; The Pathway School, $2,000; Central Bucks Area
School District, $18,000; West Chester Area Education
Foundation, $2,000; YMCA of Bucks County, $17,000; Center
School, $35,000; Henkels Foundation — Plumstead Christian
Academy, $35,000; and Malvern Preparatory School, $5,000.
Lycoming CountyPennsylvania College of Technology
Community Arts Center, $40,000; Pennsylvania College
of Technology Foundation, $4,000; St. John Neumann
Regional Academy Scholarship, $15,000; and First
Community Foundation Partnership of Pennsylvania,
$180,000 allocated towards 18 school districts, including
ones in Lycoming County.
Potter/McKean/Cameron County Austin Area School
District, $4,000; Coudersport Area School District, $14,000;
Galeton Area School District, $7,000; Port Allegany Area
School District, $7,000; and Cameron County Area School
District, $12,000.
Mark Hughes (left), EVP, director of financial division, and Thomas
Rudy, EVP, director of branch delivery, present $500,000 check to
area educational improvement and scholarship organizations.
C&N Donates $500,000 to Support Education
C
PA Bankers Association » Quarter 3, 2020 15
CNB Bank launched a special
initiative earlier this year, ACNB
Helping Hands, that serves to
reinforce the bank’s ongoing commitment
to community during the challenging times
when the COVID-19 pandemic dramatically
impacted local businesses and residents.
This program, funded by both ACNB Bank
and its affiliated employees, provided nearly
6,000 meals prepared by 16 restaurants
and catering businesses (which are bank
customers) that were then distributed during
recent months to people in need through
16 local community organizations across
the bank’s southcentral Pennsylvania and
northern Maryland footprint.
In ACNB Bank’s southcentral Pennsylvania
markets, the business partners included:
CJ’s BBQ Smokehouse in Chambersburg;
Ernie’s Texas Lunch in Gettysburg;
Firehouse Grill in Littlestown;
La Bella Italia in Gettysburg;
Little Everett’s BBQ in Hanover;
Mamma’s Pizzeria and Ristorante in Biglerville;
Maria & Sal’s Pizzeria in Fayetteville;
Olivia’s Mediterranean Cuisine in Gettysburg; and
The Altland House in Abbottstown.
Collectively, these bank restaurant
and catering customers provided
3,033 meals through eight
community organizations---Adams
County Housing Authority, Adams
Rescue Mission, Clearview Terrace
Apartments, Gettysburg Community
Soup Kitchen, Hanover Area Council
of Churches, Our Daily Bread,
Franklin County Housing Authority
and Salvation Army Chambersburg.
Helping Hands efforts in Frederick
County, Maryland, where FCB Bank,
a division of ACNB Bank, is located,
resulted in partnerships with
three Frederick restaurant customers,
including Black Hog BBQ, Dutch’s
Daughter and Ilforno Pizzeria, to furnish
1,291 meals to local residents through
the three community organizations of
Frederick Community Action Agency,
Frederick Rescue Mission and Student
Homelessness Initiative Partnership.
In Carroll County, Maryland, NWSB Bank,
a division of ACNB Bank, worked with four
restaurant and catering customers---Bess
and Ben’s Country Kitchen Restaurant
in Taneytown, Maggie’s Restaurant in
Westminster, The Buttersburg Inn in
Union Bridge and The Food Chick in
Westminster---to collectively provide
1,271 meals to five organizations serving
residents throughout Carroll County
including the Boys and Girls Club of Westminster, Caring
Carroll, Inc., Human Services Programs of Carroll County,
Inc., Salvation Army of Carroll County and Together We
Own It. Staff members of Russell Insurance Group, Inc., a
full-service insurance agency and affiliate of ACNB Bank
headquartered in Westminster, Md., contributed to the
outreach efforts in this region of the bank’s footprint.
Additionally, through ACNB Helping Hands, ACNB Bank
staff members reached out to local nursing home residents
by making nearly 1,000 greeting cards and offering
words of encouragement during this time of isolation
when residents are without visitors. A greeting card was
also enclosed in each of the meal packages distributed
to homebound and elderly residents served through
the Meals on Wheels program that is affiliated with the
Hanover Area Council of Churches in Hanover, Pa.
ACNB Bank Shares Results of Helping Hands Initiative
A
16 » PA Bankers Association
communityCORNER
he Dime Bank donated $3,500 to the Wayne
County Emergency Relief Fund through the Wayne
County Community Foundation (WCCF).
This donation was made up of two amounts: $2,500 from
The Dime Bank and $1,000 passed on by the bank from
employees who chose to donate to the Emergency Food
Relief Fund rather than have a celebratory anniversary
dinner. The food program was pleased to hear that
the employees chose to have the dollars donated to
those who really need to put food on their tables. The
Emergency Relief Fund coordinators want to emphasize
the importance of not only corporate giving, but individual
giving, and how every amount, no matter how small, can
make a difference.
The goal of the Wayne County Emergency Relief Fund is
to ensure the community does not go hungry during these
difficult times. To date, the Wayne County Emergency
Relief Fund has raised over $160,000, made up of over 500
donations from individuals, foundations and businesses.
As of April 24, 2020, the distribution in collaboration with
the Wayne County Pantry Program, assisted 777 families.
Families received grocery bags, which served about 3,000
people. This program is helping the overall communities
because although the distribution sites are in Wayne
County, the recipients do not need to be Wayne County
residents.
The Dime Bank Donates to the WCCF Wayne County
Emergency Relief Fund
T
URBAN IMPACT FOUNDATION
The Urban Impact is a community development
organization located on the North Side of Pittsburgh. They
annually serve over 2,300 at-risk children and youth by
providing 60+ programs in athletics, education, performing
arts and options.
NexTier Bank and #TravelingCheck – EITC Presentations
Earlier this year, NexTier Bank’s #TravelingCheck made EITC presentations to the following organizations:
THE PITTSBURGH PROMISE
The Pittsburgh Promise has awarded almost 10,000 post-
secondary scholarships to Pittsburgh Public Schools
graduates over the last 12 years. These young people are
bringing fresh talent, energy and diversity to our region’s
workforce.
Pictured: Peter Ward, Director of Development; Kathryn Balyesele,
Executive Assistant; Lisa Owens, Director of Options; Lara Wozniak, NexTier
Bank PCS; and Dan Penberthy, NexTier Bank Commercial Lending.
Pictured: Sue Kushnereit, NexTier Bank Marketing; Saleem Ghubril,
Executive Director of the Promise; Marsha Dugan Kolbe, Director of
Development The Pittsburgh Promise; Lara Wozniak, NexTier Bank PCS;
and Dan Penberthy, NexTier Bank Commercial Lending.
PA Bankers Association » Quarter 3, 2020 17
eoplesBank recently presented 62 organizations
throughout South Central Pennsylvania with
checks totaling $830,000. These funds represent
contributions made by PeoplesBank through Pennsylvania’s
EITC program.
The 62 organizations who received funding are:
Big Brothers, Big Sisters of York County
Boy Scouts of America - New Birth of Freedom
Boys & Girls Club of Lancaster
Byrnes Health Education Center
Childrens Home of York
Christian School of York
Cleve J. Fredricksen Library Association
Creative York
Crispus Attucks Association, Inc.
Cultural Alliance of York County
Donegal School District Education Foundation
DreamWrights Youth & Family Theatre
Eagle Foundation
Greater York Center for Dance Education
Hanover Foundation for Excellence in Education, Inc.
Harrisburg Academy
Hempfield Foundation
House of Hope - York, PA
Joseph T. Simpson Public Library
Junior Achievement of South Central PA Keystone Christian
Academy
Lancaster Country Day
Lancaster Education Foundation
Lancaster Science Factory
Leg Up Farm, Inc.
Logos Academy
Manheim Central Foundation for Educational Enrichment
Manheim Township Educational Foundation
Penn Manor School District Education Foundation
Polar Bear Foundation
Schreiber Pediatric Rehab Center
South Eastern Community Education Foundation
South Western Education Foundation
Southern York County School District Foundation
Spanish American Civic Association
St. John the Baptist School
Saint Joseph School—Mechanicsburg
St. Patrick Catholic School
Susquehanna Waldorff School
The Appell Center for the Performing Arts
The Arc of York County
The Belmont Theatre
The Columbia Education Foundation
The Foundation for the West York Area School District, Inc.
The Janus School
The Lion Foundation Camp Hill School District
The Salvation Army, York PA
Water Street Ministries
West Shore Foundation
WITF
World Council on Financial Literacy
YMCA of York and York County
York Academy Foundation
York Catholic High School York Country Day School
York County History Center
York County Library System
York Suburban Education Foundation
York Symphony Orchestra
YWCA of Hanover
YWCA of Lancaster
YWCA York
PeoplesBank Contributes $830,000 to Support Education
Within the Community
P
Since the start of this program, PeoplesBank has dedicated over $8 million dollars to help fund these exceptional programs.
18 » PA Bankers Association pabankers.com
CHAIR:
J. BRADLEY SCOVILL
President and Chief
Executive Officer,
C&N,
Wellsboro, Pa.
FIRST VICE CHAIR:
WESLEY M. WEYMERS
President and Chief
Executive Officer,
The Gratz Bank,
Gratz, Pa.
SECOND VICE CHAIR:
MARK A. RITTER
Executive Vice President &
Chief Administrative Officer,
The Northumberland
National Bank,
Northumberland, Pa.
IMMEDIATE PAST CHAIR:
T. MICHAEL PRICE
President and Chief
Executive Officer,
First Commonwealth
Financial Corporation,
Indiana, Pa.
CATEGORY A
JAMES WANG
President and Chief Executive Officer,
Asian Bank,
Philadelphia, Pa.
CATEGORY B
ELAINE A. WOODLAND
President and Chief Executive Officer,
First Keystone Community Bank,
Berwick, Pa.
CATEGORY C
RANDALL E. BLACK
President and Chief Executive Officer,
First Citizens Community Bank,
Mansfield, Pa.
CATEGORY D
RONALD J. SEIFFERT
President and Chief Executive Officer,
Northwest Bank,
Warren, Pa.
Policy Committee Chairs:
PROFESSIONAL
DEVELOPMENT:
GREGORY T. HAYES
President and Chief
Operating Officer,
Kish Bank,
State College, Pa.
GOVERNMENT
RELATIONS:
BLAIR T. RUSH
President and Chief
Operating Officer,
Covenant Bank,
Doylestown, Pa.
MEMBER RELATIONS:
DAVID R. HUNSICKER
Chairman, President and
Chief Executive Officer,
New Tripoli Bank,
New Tripoli, Pa.
2020-21
BOARD MEMBERS
Welcome
Deposit Category Representatives:
PA Bankers Association » Quarter 3, 2020 19
At-Large Representatives:
MARY GRIFFIN CUMMINGS,
ESQUIRE
Executive Vice President
and General Counsel,
FNCB Bank,
Dunmore, Pa.
SUSIE B. SHIPLEY
President, Western Pennsylvania
and Ohio,
The Huntington National Bank,
Pittsburgh, Pa.
PHILIP H. JOHNSON
Regional President,
M&T Bank,
Williamsport, Pa.
FRANCIS J. LETO
President and Chief Executive Officer,
The Bryn Mawr Trust Company,
Bryn Mawr, Pa.
Non-Voting Members:
JENNIFER A. POULSEN
Senior Vice President, Chief
Operating Officer,
Farmers National Bank of Emlenton,
Emlenton, Pa
J. DUNCAN CAMPBELL III
President, Chief Executive
Officer & Treasurer,
Pennsylvania Bankers Association,
Harrisburg, Pa.
2020-21 BOARD MEMBERS
Welcome
PA Bankers Group Representatives:
GROUP 1:
JOHN C. GILL
President and Chief Executive Officer,
cfsbank,
Charleroi, Pa.
GROUP 2:
DUANE J. BROBST
Senior Executive Vice President
and Chief Credit Officer,
Univest Bank and Trust Company,
Souderton, Pa.
GROUP 3:
ANTHONY J. GABELLO
President and Chief Executive Officer,
PS Bank,
Wyalusing, Pa.
GROUP 4:
JEFFREY J. KAPSAR
President and Chief Executive Officer,
Mifflinburg Bank and Trust Company,
Mifflinburg, Pa.
GROUP 5:
EUGENE J. DRAGANOSKY
President and Chief Executive Officer,
York Traditions Bank,
York, Pa.
GROUP 6:
JEFFREY A. STOPKO
President and Chief Executive Officer,
AmeriServ Financial Bank,
Johnstown, Pa.
20 » PA Bankers Association pabankers.com
YOUR
NEW VICE CHAIR
Mt
We would like to welcome our second vice chair,
Mark Ritter, Executive Vice President & Chief
Administrative Officer, The Northumberland
National Bank. We asked Mark to answer a few of
our burning questions.
WHAT WAS YOUR FIRST
EXPERIENCE AND/OR EVENT
WITH PA BANKERS?
My first interaction with PA Bankers
was back in the 1980s when I took
advantage of our tremendous
training opportunities. I broke into
the business as a commercial lender
and had the advantage of being
trained through one of the premier
bank management training programs
at CoreStates. The PA Bankers
training I experienced was key to
understanding the global banking
business and gaining a deeper
understanding of other areas of the
bank, including retail banking and
compliance. Over the past 33 years,
I have had the privilege of serving
on numerous committees and task
forces, most recently as a member of
the board of directors.
WHAT IS ONE PIECE OF
ADVICE THAT YOU HAVE FOR
THE NEXT GENERATION OF
BANKERS?
I would advise our next generation
of bankers, just as I have advised
my own daughters, to take
advantage of every opportunity
you are presented to learn about
various areas of banking. Diversity
of experiences and knowledge
is key to moving into leadership
and effectively generating value
for customers, shareholders,
communities and colleagues.
Banking is a noble profession
because of what we can do to help
our constituencies, and the more
one learns about our business the
more value we can provide.
WHAT’S ONE GOAL THAT
YOU’D LIKE TO ACCOMPLISH
DURING YOUR TIME ON PA
BANKERS’ BOARD?
I believe it is essential that as an
industry we work diligently to educate
and inform our fellow citizens about
the noble mission of banking and the
benefits we work to generate for our
economy. This education must be
across all segments of our country,
with the goal of helping our community
members understand what we can
do and what they can and should ask
of us. It is also vital that we generate
excitement about banking as a career
across our nation. We need skilled
bankers for the future, and it is essential
we do a better job recruiting and
training bankers from communities that
traditionally have not looked to banking
as a career option. This must include
more females and members of minority
communities joining our teams and
moving into leadership roles.
G to kn
Mark bel!
TRANSPARENCY.
ACCOUNTABILITY.
PREDICTABILITY.
How can you improve bank exams?
*RFI = Regulatory Feedback Initiative
Take the RFI
*
survey at www.allbankers.org
Tired of exam surprises?
By taking our survey you are providing anonymous feedback
that will be used to hold regulators to consistent standards.
More than 2000 bankers have already participated.
Take a stand. Take the survey.
PA BANKERS ASSOCIATION
1913
The Federal Reserve
Act passes Congress.
1927
The McFadden Act and
Pennsylvania Act define the banking
structure for national and state
chartered banks in PA.
1982
Legislation authorizing a
phased-in approach to
statewide branch
banking is enacted in PA.
Alliance of State Bankers
Associations is formed.
1895
PA Bankers hosts its first-annual
convention on Dec. 18, in
Philadelphia, Pa. There were
321 members.
1929
Stock Market collapses, and
the Great Depression begins.
1932
Federal Home Loan
Bank Act creates the
Federal Home Loan
bank structure.
1975
Home Mortgage
Disclosure Act
encourages banks to lend
mortgage money to low
income areas and
document their process.
1933
PA Banking Code
establishes
restrictions
on the
establishment
of new branches
by state banks.
1949
PA Bankers establishes headquarters in
Harrisburg and names Carl Dellmuth as
Secretary to lead association staff.
1974
PA Bankers
establishes PaBPAC
to support advoccy
efforts on behalf of
the industry and its
members.
1977
Community
Reinvestment Act
directs banks to
meet credit needs of
communities to
include low-income
areas.
1978
International Banking
Act regulates the
establishment,
operation and control of
foreign banks in the U.S.
1987
Regional recipricol
interstate banking
legislation is signed
into law in PA.
1989
Helen Strunk becomes
the first female chair of
PA Bankers.
In the wake of the S&L
crisis, Congress passes
the Financial Institutions
Reform, Recovery and
Enforcement Act.
PA Bankers establishes its first
professional school - Trust School
was hosted at Bucknell University.
1952
1935
The Banking Act establishes the FDIC as a
permanent agency of the government and
authorizes the agency to set standards for
member banks and the examination of
those banks to ensure compliance.
1950
Federal Deposit Insurance Act revises
and consolidates earlier FDIC legislation
into one act, and gives FDIC examination
authority and lending authority to
any insured bank in danger of closing.
22 » PA Bankers Association
PA Bankers Association » Quarter 3, 2020 23
125 Years
REFLECTING ON OUR PAST WITH 20/20 VISION FOR OUR FUTURE
1994
PA Bankers Services Corporation
is created as a wholly-owned
subsidiary to offer products and
services to members.
2007
PA Bankers supports
legislation excluding
regulatory goodwill from the
PA Bank Shares Tax
calculation enacted.
PA Bankers moves to
current office on Front Street
in Harrisburg.
1995
1997
PA Bankers leads
advocacy efforts
resulting in state
legislation that
authorizes state-
chartered
institutions
to sell and broker
insurance to their
customers.
2001
International Money
Laundering Abatement
and Financial Terrorism
Act is passed.
2008
The housing bubble bursts
causing a financial crisis and
rocking the global economy.
2010
Dodd-Frank Wall Street
Reform and Consumer
Protection Act is signed by
President Obama.
2012
Amendments are made to
modernize PA Bank Code.
2013
PA Bankers forms Women in
Banking Network and hosts the first
Women in Banking Conference the
following year.
2016
PA Bankers forms Emerging
Leaders Network and hosts
the first Emerging Leaders
Conference.
2017-18
PA Bankers participates in
three workforce development
and next-generation banker
programs to recruit top talent
for the banking industry.
*With the association's help,
the BankWork$ program came
to Philadelphia in 2017. The
program then expanded to
Pittsburgh in 2019
2018
The Economic Growth, Regulatory
Relief and Consumer Protection Act
enacted offering regulatory reform
for community financial institutions.
*
24 » PA Bankers Association
WHAT ADVICE WOULD YOU OFFER
TO SOMEONE CONSIDERING A
CAREER IN BANKING?
Have ambition to
move up the ladder;
it will be noticed.
However, be prepared
for a marathon, not a
sprint. In any career, at
the end of the day, ask
yourself if you had been the CEO looking
at you, would you have approved of your
performance this day? Above all, enjoy
helping people. If you don’t like serving
people, find another career. Remember,
bankers do not make physical items to
sell; we sell solutions and dreams.
Robert Snyder, 2010-11 Chair,
Luzerne National Bank
The financial services
industry has changed
dramatically over
the last 40 years and
needs people with
a very wide range of
talents. With that said,
what hasn't changed
is its need for people with strong
communication, interpersonal and
leadership skills. If you like dealing with
people and being a part of helping
your customers and communities
grow, banking is a great industry.
Robert Rupel, 2007-08 Chair,
The Provident Bank
WHAT WAS THE MOST SIGNIFICANT ISSUE AFFECTING THE PA BANKERS
ASSOCIATION DURING YOUR TERM AS BOARD CHAIR?
During my term as chair, we were
beginning to feel the full impact of Dodd-
Frank and other regulations that were
enacted on the heels of the Financial
Crisis of 2008/09. While some additional
regulatory oversight may have been
appropriate, it became the lead story
in our industry…and in some instances
the only story. Lost in all of it was the
mission; the good work that the banking
industry performed every day in the
communities that we served across the
commonwealth. During that period, when
government officials and many others
reflected on our Industry, they thought
about risk and risk alone, often times at
the exclusion of the positive influence we
have had for decades on the lives we touched every day.
So, the PA Bankers board and staff felt it was time to “Tell Our Story,” and that
story was one of helping people. We helped put people into their first homes;
we helped families send their first child to college; and we helped small and
large businesses manage the financial affairs of their operations so they could
focus on growing their businesses and provide more jobs in their communities.
Additionally, the support we provide to the nonprofit community was very rarely
talked about. We have provided countless dollars in financial support and
chaired many fundraising campaigns over the years.
Telling our story continues. In fact, in PA, led by Duncan, his team and future
chairs, it will never end. The association over the past few years has done a great
job of telling federal and state government officials and others that report on
our business what our communities have known for a long time…that we get up
every day with one focus in mind…and that’s to help people in our communities
across the state.
Gerry Nau, 2015-16 Chair, Lafayette Ambassador Bank
Reflections from Past Chairs
In celebration of the association’s 125th anniversary, we asked several
of our past chairs to share their experiences with us, as well as their
favorite memories and advice to future leaders in the industry.
Take a step back in time…
PA Bankers Association » Quarter 3, 2020 25
WHAT IS YOUR FAVORITE MEMORY OF YOUR TIME AS CHAIR
OF THE PA BANKERS ASSOCIATION?
Enjoy each day that you can help your customers achieve all of their
dreams (a new car or house, funding a child’s college tuition, building
a new business, etc.). Whatever their dreams are, our properly tailored
solutions provide the much-needed boost.
Joseph Bower, 2016-17 Chair, CNB Bank
THE BANKING INDUSTRY HAS UNDERGONE MANY CHANGES OVER THE LAST
20, 30, 40 YEARS. WHAT ARE SOME OF THE THINGS THAT HAVE REMAINED
CONSTANT THROUGHOUT YOUR CAREER IN BANKING?
People, businesses and communities
need a safe depository for their funds
and outside investment to realize their
financial goals. This is fundamental
community banks have a longstanding
business model, whereby we fund loans
with deposits and hope to provide value.
William Marsh, 2014-15 Chair, The
Farmers National Bank of Emlenton
Things have changed because of the financial crisis
in 07-09. Dramatic change in industry. Technology
is a large part of banking; in the processes and how
customers can access banks through technology.
Dramatic difference. All good for the consumer.
Two fundamentals are still important:
• Credit quality – making loans the right way;
Remember that “cycles always return.
Importance of people and relationship. There
is a transactional component – technology has
advanced that, but relationships are still very important. People are what make
the business successful.
David Zuern, 2005-06 Chair, Waypoint Bank
WHAT ROLE HAVE YOU SEEN THE PA BANKERS
ASSOCIATION PLAY IN BANKING DURING YOUR
INVOLVEMENT WITH THE ASSOCIATION?
I have always been proud of my association with PA
Bankers because of the way they promoted the banker’s
positive role in our society in general and our customers
lives specifically. PA Bankers also made sure that we were
represented politically.
Ralph Papa, 2008-09 Chair, Citizens Bank of Pennsylvania
WHAT DO YOU SEE AS THE TOP TWO
OR THREE CHALLENGES FACING
THE BANKING INDUSTRY NOW AND
MOVING FORWARD?
Challenges I see ahead include:
(1) continued burdensome and
unnecessary over-regulation and/
or lack of legislative action where
it’s needed; (2) time and resources
needed to meet the ever-changing
digital landscape; and (3) talent
retention and acquisition.
James Dionise, 2018-19 Chair,
Mars Bank
Maintaining
personal
contact with
customers
as young
people
become more
technology
focused.
• Providing
adequate security for customers
electronic interactions with us.
Keeping banking relevant as
alternative delivery methods
proliferate.
Carl Campbell, 2000-01 Chair,
M&T Bank (Keystone Financial)
26 » PA Bankers Association
#BanksNeverAskThat Anti-Phishing Campaign
Fight phishing fraud by turning your customers
into expert scam spotters
feature
very day, thousands
of people fall victim to
fraudulent emails, texts
and calls from scammers
pretending to be from
their bank. In fact, the Federal Trade
Commission’s 2019 report on fraud
estimates that American consumers
lost a staggering $1.48 billion to
phishing scams in 2018. The problem
has only grown worse during the
COVID-19 pandemic, with more
people online.
Banks of all sizes are suffering
significant monetary and reputational
losses from these increasingly
sophisticated scams targeting their
customers. The American Bankers
Association wants to change that.
ABA is calling on all banks across the
country—members and nonmembers
alike—to register to participate in
ABA’s new #BanksNeverAskThat anti-
phishing campaign—a fresh, bold
plug-and-play campaign created to
educate consumers about phishing
scams and how to thwart them. The
industry-wide initiative is one of
ABA's biggest consumer protection
campaigns in its history.
Registered participating banks will
receive a toolkit full of ready-to-use
assets. Designed to be humorous, eye-
catching and engaging, the kit includes
videos, GIFs, social posts, printables
and more to help educate and protect
bank customers. The campaign is
entirely free (including for non-ABA
members) and can be co-branded,
bank-branded or ABA-branded.
At the heart of the
#BanksNeverAskThat campaign
is a consumer website—
BanksNeverAskThat.com—where
you’ll find tips for how to spot
phishing scams, deep dives on
reporting or recovering from fraud,
as well as an interactive quiz where
visitors can put their skills to the
test. As the #BanksNeverAskThat
materials make clear with
improvisational humor, banks would
never call to ask for relationship
advice or whether you believe in
aliens—just as they will never call
to ask for your account password or
social security number.
Participating banks are encouraged
to join the rest of the industry in
launching the #BanksNeverAskThat
campaign in October to coincide with
National Cybersecurity Awareness
Month. The combined effort from a
simultaneous, industry-wide launch
will deliver the most impact—and
have the best chance to change
consumer behavior.
National Cybersecurity Awareness
Month is a collaborative effort
between government and industry
that raises nationwide awareness of
cyber crimes and prevention every
October. Because it coincides with the
launch of #BanksNeverAskThat, ABA
is celebrating with a cybersecurity-
month sweepstakes. Every week
during the month of October, site
visitors can test their scam savviness
by taking the #BanksNeverAskThat
quiz, then sharing it on Twitter for
the chance to win one of 15 prepaid
gift cards. All entrants in ABA’s
sweepstakes will also be eligible to
win the $1,000 grand prize at the end
of the month.
The success of this campaign
depends in large part on participation
by banks across the country. The
more banks that join this industrywide
effort, the greater the likelihood this
positive, pro-consumer message will
sink in. We’re counting on banks of all
sizes to take part, and we’re making
it almost impossible to say no by
providing you all the ready-to-use
resources you need for free.
It’s time to put scammers in their
place, protect our customers and
reduce the financial damage to
banks from phishing. Sign up to
participate for the campaign at aba.
com/BanksNeverAskThat.
E
ABOUT THE AUTHOR:
AMERICAN BANKERS ASSOCIATION
PA Bankers Association 50 Volume 21.1 | Quarter 1
SOMEONE IS MAKING MONEY
ON TITLE INSURANCE.
IT SHOULD BE YOU.
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and share in the profits 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.
28 » PA Bankers Association
governmentRELATIONS
NEW REPUBLICAN LEADERSHIP TEAM ELECTED
IN THE HOUSE
With the resignation of former Speaker of the House Mike
Turzai (R-Allegheny), House members on June 22 elected
Rep. Bryan Cutler (R-Lancaster) as the new Speaker
of the House. This resulted in three other changes in
leadership positions in the House Republican Caucus.
Rep. Kerry Benninghoff (R-Centre) was elected by his
Republican colleagues as House Majority Leader; Rep.
Donna Oberlander (R-Clarion) was elected House Majority
Whip; and Rep. Martin Causer (R-McKean) was elected
House Majority Policy Committee Chair. PA Bankers has
strong relationships with these new members of the House
Republican leadership team.
THE BANKING FUND
The PA Department of Banking and Securities’ Banking Fund
is a special revenue fund composed of monies received
from fees, assessments, charges and penalties collected or
recovered from persons, firms, corporations or associations
under the supervision of the Department. It provides for
the administration of the Department and regulation of
the financial services industry. The Institution Resolution
Restricted Account is to be used at the discretion of the
Secretary in the event of a seizure or liquidation of a financial
institution, association or credit union.
Not until after the 19-20 Governor’s budget report/request
was published (see H9 pg. 791 of 898) did PA Bankers learn
that a transfer of $21 million from the Banking Fund had been
made to the General Fund in June 2018, citing the authority
granted by Act 44 of 2017 to make up to $300 million in
transfers from special fund accounts. Use of existing state
accounts was initially proposed by a group of PA House
Republican members as a means to avoid tax increases.
Further discussions among PA Bankers, PA Association of
Community Bankers (PACB), CrossState Credit Union and
the PA Department of Banking and Securities have resulted
in a move towards a consensus approach on the legislation
being developed that will establish the Banking Fund and
the Institution Restricted Resolution Account as a separate
trust funds, which should discourage future transfers to be
made from these funds into the General Fund. New House
Commerce Committee chair, Rep. Sheryl Delozier introduced
the compromise language and we expect it to be considered
by the full House when they reconvene on Oct. 19.
STATE BUDGET
The partial, five-month, 2020-21 fiscal year state budget
enacted by the General Assembly in late spring will expire
on Nov. 30. The legislature will begin deliberating in earnest
in the fall a state budget for the remaining seven months
of the current fiscal year. Various estimates place the state
State Legislative Updates
PA Bankers Association » Quarter 3, 2020 29
budget deficit in the $4-5 billion range. PA Bankers has
been making the case through targeted grassroots virtual
advocacy meetings with key legislative leaders in the
House and Senate over the past couple months that an
increase in the bank shares tax rate or additional transfers
from the banking fund should not be in the mix of revenue
sources the legislature might be considering to address the
commonwealth’s challenging fiscal environment.
PERMANENT REMOTE NOTARIZATION AUTHORIZATION
PA Bankers also continues to advocate for the enactment of
permanent remote notarization, as contained in House Bill
2370 or Senate Bill 1097. The current authorization enacted
as Act 15 of 2020 will expire 60 days after the expiration
of the Governor’s Emergency Disaster Declaration Order,
which has been extended to Dec 6.
ELDER FINANCIAL ABUSE PREVENTION LEGISLATION
The House version of legislation amending the Older Adult
Protective Services Act that contains a number of provisions
PA Bankers supports that would assist in preventing elder
financial abuse, House Bill 1930, was voted out of the
House Aging Committee on June 23. The legislation is in a
position to be voted on by the House when it reconvenes in
September.
RESUMPTION OF EFFORTS TO IMPLEMENT FIDM FOR
COLLECTION OF PAST DUE TAXES
The PA Department of Revenue recently requested that
discussions resume among the Department and PA
Bankers, PACB and CrossState Credit Union Association
to work towards implementing a Financial Institution Data
Match (FIDM) Program for the collection of delinquent
taxes. Discussions had been put on hold earlier in the
pandemic. A further meeting will be scheduled in August
among the stakeholder groups to finalize the financial
institution agreement. PA Bankers has provided comment
and suggestions regarding the draft agreement.
COVID-19 ECONOMIC ASSISTANCE PROPOSALS
On July 6, the PA Housing Finance Agency (PHFA) began
accepting applications for the $25 million Pandemic
Mortgage Assistance Grant Program that was enacted by
the legislature as a result of federal CARES Act funds that
came to Pennsylvania. The grants must be made to eligible
borrowers that qualify, by Nov. 30. PA Bankers provided
some suggestions regarding the administration of the
program that, to date, have not been accepted by PHFA.
The $225 million small business assistance program
being administered by the PA Department of Community
and Economic Development and the 17 community
development financial institutions began accepting
applications on June 30.
As of this writing, it is not known how many grants have
been made through either of these programs.
FIDUCIARY ACCESS TO DIGITAL ASSETS
LEGISLATION ENACTED
On July 23, Governor Wolf signed into law Senate Bill
320, sponsored by Senator Tom Killion (R-Delaware),
that would provide for fiduciary access to digital assets
in Pennsylvania. This is a uniform law that has been
approved in all but three states. It is important because
individuals are dealing electronically and storing their
financial information on the web. This legislation will
allow a personal representative, trustee or guardian of
the deceased access to the information. PA Bankers
supported the enactment of this legislation.
In today’s rapidly changing environment, Schneider
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30 » PA Bankers Association
s of this writing, prospects
for further federal legislation
in response to the COVID-
19 pandemic have dimmed
following the failure of Senate
Republicans’ “skinny” relief bill offered
as an amendment to other legislation
by a largely party-line vote of 52-47.
Issues of particular interest to financial
institutions include:
UNEMPLOYMENT COMPENSATION
The CARES Act’s $600 per week
federal unemployment compensation
supplement ended July 31. The
latest Senate Republican proposal
included an extension of enhanced
unemployment compensation at $300
per week until December 27.
SMALL BUSINESS ADMINISTRATION
PAYCHECK PROTECTION PROGRAM
(PPP)
The PPP closed at midnight on August
8. The latest Senate Republican
amendments would have enacted a
“Second Draw Loan, included “hold
harmless” language and called for a
simplified PPP forgiveness application
for loans under $150,000.
The American Bankers Association
and the state associations sent a letter
in July to US House leaders in support
of H.R. 7777, the Paycheck Protection
Small Business Forgiveness Act, a bill
sponsored by Reps. Chrissy Houlahan
(D-PA) and Fred Upton (R-MI) that
would allow PPP loans to be forgiven
once the borrower completes a
one-page attestation form. PA Reps.
Dwight Evans and Brian Fitzpatrick
also co-sponsored H.R. 7777. A similar
Senate bill (S. 4117) was previously
introduced and supported by
association letters. These bills are
expected to significantly reduce the
paperwork burden for the vast majority
of PPP borrowers. Given the lack of
additional, comprehensive COVID-19
relief legislation to date, ABA and the
SBAs sent another letter of support
for stand-alone PPP forgiveness
legislation on Sept. 11.
Bankers are requested to take a
moment to use this link to email their
congressman and this link to email
their senators to urge their support for
simplified PPP forgiveness legislation
and urge their colleagues to join them
in supporting this important initiative.
COVID-19 LIABILITY LIMITATION
The failed Senate Republican
amendments also included
provisions intended to protect
healthcare workers, providers and
facilities, businesses, nonprofits and
educational institutions from crippling
litigation resulting from the COVID-
19 pandemic. The American Bankers
Association joined more than 480
national trade groups representing a
broad range of industries in a letter to
Congress urging support for liability
relief provisions PA Bankers joined
a similar letter sent by statewide
associations in this Commonwealth.
E-SIGN MODERNIZATION
The 51 state bankers associations
urged support for inclusion of
S. 4159, the E-SIGN Modernization
Act, in the enacted Phase IV relief
package. Originally authored by Sen.
John Thune, the bill would streamline
how consumers consent to receiving
electronic documents, such as bank
statements, account information and
contracts. The bill would update the
20-year-old E-SIGN Act to reflect
advancements in technology and
shifting consumer preferences.
Specifically, it would remove the
current requirement for consumers
to reasonably demonstrate that they
can access documents electronically
before they can receive an electronic
version—which the groups noted
created obstacles for companies
of all sizes during the coronavirus
pandemic.
FEDERAL REGULATION
Banks’ use of The Coalition of
Bankers Associations’ Regulatory
Feedback Initiative will become
increasingly important in the
uncertain times we currently face.
We ask that banks complete a
confidential, electronic exam
feedback questionnaire after
each safety and soundness
and compliance examination to
provide ABA and the state bankers
associations the empirical data we
need to advocate for regulatory
fairness and certainty.
The American Bankers Association
is reinventing its Washington Visit
Program in response to the pandemic.
Meetings with the federal regulatory
agencies will take place virtually.
An advantage of the virtual format
will be our ability to register more
participants. Dates/times and
registration details will be posted to
PA Bankerswebsite when they are
available.
A
Federal Legislation Updates
governmentRELATIONS
PA Bankers Association » Quarter 3, 2020 31
32 » PA Bankers Association
governmentRELATIONS
s racism baked into our
nation’s systems of justice,
health and education, or
are there disproportionate
correlations between race,
poverty and crime? Are people too
quick to accuse others of racism,
or are those in positions of power
too slow to recognize their role in
perpetuating racial inequities? Is it
fair that I posed these as either/or
questions, or is all of the above true?
While issues surrounding racial
justice and inequities are demanding
the nation’s attention, honest
conversations seem too perilous to
hold because of the way some frame
the debate as binary. But that ignores
the vast common and principled
ground on which we all stand and
distracts from a focus on meaningful
solutions.
Bankers are community leaders,
which means you run toward a
challenge, not away from it. So as
fraught as the situation may feel,
the American Bankers Association
is engaging in an open dialogue
of how the banking industry, both
as employers and as facilitators
of wealth creation, can further the
principles everyone agrees on: that
all Americans should have a truly
equal opportunity to prosper, and that
economic inclusion is essential to
creating such opportunity.
Implicit in this discussion is the belief
that we each have a role to play in
addressing longstanding inequities.
Some may feel the problem lies
elsewhere — in another community,
city or state — and therefore so must
the solution. Others may think they’ve
done all they can, to either great or
limited effect. But we are an industry
that in recent years has developed
entirely new ways of banking and
in recent months demonstrated
remarkable fortitude and commitment
to serving our customers through the
pandemic. There is more we can —
and must — do to address disparities
and promote prosperity for all.
Many banks recognized this long
before the pandemic hit and
disproportionately harmed Black
Americans, and long before the
nationwide protests over the killing
of George Floyd and others. Some
in recent years have built rigorous
diversity, equity and inclusion
programs that are both inward facing
(focused on employees) and external
facing (focused on customers,
communities and vendors). Some
have pioneered new ways to qualify
borrowers and bring those who have
been marginalized into the banking
system. We celebrate them every year
with the ABA Foundation’s Community
Commitment Awards. Still others have
partnered with Minority Depository
Institutions and Community
Development Financial Institutions to
share compliance resources, expertise
and more to better enable those
institutions to meet the needs of their
often underbanked customers.
ABA is tapping the experiences of
these banks and leveraging the
expertise of our own staff experts
on diversity, equity and inclusion
to provide others with tools and
resources to make a difference at their
own institutions. A new peer group for
institutions with robust DE&I programs
met for the first time in February
and is helping us identify leading
I
Running Toward the Challenge
continued on page 36
continued on page 36
A UNIQUE HEALTH CARE ALTERNATIVE
for Pennsylvania-Based Financial Institutions and
Aliate Members of the PA Bankers Association
WHAT IS THE BANK HEALTH CARE CONSORTIUM OF PA (BHCCPA)?
The BHCCPA is a unique health care alternative for Pennsylvania-based nancial institutions and Aliate Members
of the PA Bankers Association. Since its launch in July 2007, the PA Bankers Services Corporation, L.R. Webber
and The Benecon Group. have collaborated to provide every consortium member with leverage and benets of
economies of scale, plan design exibility and signicant cost control strategies to their group health plan.
PA BANKERS SERVICES CORPORATION
Wayne Whipple
Vice President, Business Development
(717) 255-6925
wwhipple@pabankers.com
LEARN MORE ABOUT THE PROGRAM
L.R. WEBBER
Brad Webber
Marketing Manager
(814) 317-4186
bwebber@lrwebber.com
THE BENECON GROUP
Claudia Burchstead
Senior Sales Director
(717) 723-4624
cburchstead@benecon.com
34 » PA Bankers Association
ABOUT THE AUTHOR:
ROB NICHOLS, PRESIDENT AND CEO, AMERICAN BANKERS ASSOCIATION
governmentRELATIONS
industry practices in this space that
we can share with members. In April,
we convened our Diversity, Equity &
Inclusion Advisory Group, which is
composed of individuals from banks
of all sizes and whose mission is to
help us nurture bank DE&I efforts.
I was also pleased to announce a
strategic partnership this year with
the National Bankers Association, the
leading trade association for MDIs, to
promote the health and well-being
of underrepresented communities.
And we are collaborating with and
promoting MinBanc, which reimburses
educational and professional
development expenses of MDI
bankers.
This is all to say that both ABA and
the industry have a strong foundation
upon which to build. And build we
must. Unacceptable racial disparities
in health, wealth, income, education
and other measures of opportunity
continue to grow—and the pandemic
has laid bare these disparities.
Proportionately, two and half times
more Black Americans have lost
their lives to COVID-19 than white
Americans.
We cannot shrug our shoulders and
declare these inequities someone
else’s problem. We cannot fail to
engage. We are bankers, we are civic
leaders and we must be part of the
solution.
Looking for CRA investment opportunities? Investment Connection can help!
What is Investment Connection?
During this time, when finding investment opportunities and reaching your institution’s CRA goals can be even more
challenging, we’re confident our online tool—designed to connect CRA officers, community development bankers, and
foundation program officers to projects that need financial support—can help. Presented by the Federal Reserve Bank
of Cleveland, Investment Connection connects funders to nonprofits with pre-screened, likely CRA-eligible* projects. Log
in to its portal, and you’ll have 24-7 access to investment opportunities. It’s easy to register and indicate preferences.
Whatever your funding footprint is or priorities are, the Investment Connection funders’ portal catalogues opportunities
across the United States.
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for more information. Have questions? Send them
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*Subject to CRA performance evaluation
Check out funding opportunities here;
search by location or issue.
continued from page 34
PA Bankers Association » Quarter 3, 2020 35
36 » PA Bankers Association
020 has been quite a
year--different than what
anyone was expecting.
COVID-19 and racial tensions
have us looking at things from
new perspectives. We are having
conversations that we may not have
had last year, and we are working
in an environment we may not have
worked in before. Through it all,
Pennsylvania’s bankers have been
at the front lines, working with your
customers to ensure they do not
default on loan payments; providing
PPP loans to businesses in your
footprint who do so much for your
community; granting thousands of
dollars to local food banks, shelters
and businesses who were directly
impacted by this health pandemic;
and, simply, ensuring your customers
could access their money at any time.
Your focus has been ensuring that
your customers and your communities
survive.
But, believe it or not, it’s an election
year. Elected officials at the state and
federal levels have been focused, too,
on seeing their constituents survive.
From federal legislation to make
PPP loan forgiveness easier to state
legislation allowing remote notaries
to operate temporarily in PA, elected
officials in Congress and the state
General Assembly are finding ways to
help you help your customers.
More and more money is spent every
cycle to elect candidates to state
House and Senate and U.S. Congress.
And while the focus has been
elsewhere, this year is no different.
PaBPAC (Pennsylvania Bankers Public
Affairs Committee) has always been
committed to supporting candidates
who advocate for the banking
industry. Pro-banking candidates are
dedicated to supporting the same
principles we are. These candidates
want their constituents and
businesses within their districts to not
just survive, but to thrive.
As we continue through the rest of
this 2020 year, we hope that you will
help us meet our campaign goal of
$467,500. Thank you for contributing
to PaBPAC today by sending a check
to 3897 N. Front St., Harrisburg, PA
17110, or by credit card on our website.
We thank you in advance for your
continued efforts in support of our
industry and our association.
2
PaBPAC:
Help Us Elect Pro-Banking Candidates
in November
governmentRELATIONS
PA Bankers Association » Quarter 3, 2020 37
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38 » PA Bankers Association
ADVANCED SCHOOL OF COMMERCIAL LENDING
Days 1&2 [Virtual]
Members: $675 | Aliate Members: $775 | Non-Members: $1,013
TRAINING THE CREDIT ANALYST SEMINAR [Virtual]
Members: $675 | Aliate Members: $775 | Non-Members: $1,013
ADVANCED SCHOOL OF COMMERCIAL LENDING
Day 3 [Virtual]
GROWING THE BANK DURING A PANDEMIC SEMINAR [Virtual]
Members: $200 | Aliate Members: $250 | Non-Members: $300
COACHING FOR OPTIMAL PERFORMANCE SEMINAR [Virtual]
Members: $200 | Aliate Members: $250 | Non-Members: $300
october
19-20
21-22
26
28
29
a ahead
look
As you plan your training and development for 2020-2021, 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.
Visit www.pabankers.com for more information and pricing details about each event.
Please note: all dates and locations are subject to change.
2020
TRAINING/EVENTS CALENDAR
PA Bankers Association » Quarter 3, 2020 39
a ahead
40 » PA Bankers Association
a aheadlook
As of May 5, PA Bankers has cancelled/postponed all in-person banker events through June 30, 2020. We will continue to
review the calendar, going forward, and communicate any calendar changes to the membership.
november
ESSENTIALS OF COMMERCIAL LENDING SEMINAR [Virtual]
Members: $675 | Aliate Members: $775 | Non-Members: $1,013
WEALTH MANAGEMENT & TRUST CONFERENCE & EXHIBITION
[Virtual]
Members: $325 | Aliate Members: $385 | Non-Members: $488
FDIC DIRECTORS COLLEGE
1-5 registrants $265; 6+ registrants $235
DIGITAL BANKING CONFERENCE [Virtual]
Members: $200 | Aliate Members: $250 | Non-Members: $300
LENDING CONFERENCE [Virtual]
Members: $325 | Aliate Members: $385 | Non-Members: $488
2-3
5-6
10
17
19-20
PA Bankers Association » Quarter 3, 2020 41
a ahead
look
index of ADVERTISERS
AMERICAN BANKERS ASSOCIATION .................................................................................................................................. 57
APPI ENERGY ........................................................................................................................................................................................ 35
BAKERTILLY...........................................................................................................................................................................................49
BANK HEALTH CARE CONSORTIUM OF PA ................................................................................................................... 33
BARLEY SNYDER ............................................................................................................................................................................... 43
BKD CPAs & ADVISORS ................................................................................................................................................................. 37
BOXWOOD MEANS ............................................................................................................................................................................. 7
CINNAIRE ...................................................................................................................................................................................................9
CORNERSTONE ADVISORS ........................................................................................................................................................ 58
COMPLIANCE ALLIANCE ................................................................................................................................................................4
DELUXE ...................................................................................................................................................................................................IBC
HERBEIN .................................................................................................................................................................................................. 45
INVESTMENT CONNECTION .....................................................................................................................................................36
MERCADIEN ........................................................................................................................................................................................... 53
PILLAR + AUGHT ............................................................................................................................................................................... IFC
RKL CPA ..................................................................................................................................................................................................... 31
S.R. SNODGRASS ..............................................................................................................................................................................BC
SCHNEIDER DOWNS ......................................................................................................................................................................29
THE BAKER GROUP ..........................................................................................................................................................................11
THE COALITION OF BANKERS ASSOCIATIONS ...........................................................................................................21
TITLE INSURANCE ............................................................................................................................................................................27
YHB ..............................................................................................................................................................................................................39
december
DRIVING DEPOSITS TO THE BRANCH IN THE NEW ECONOMY SEMINAR
[Virtual]
Members: $200 | Aliate Members: $250 | Non-Members: $300
INCREASING BRANCH LENDING IN THE NEW ECONOMY SEMINAR
[Virtual]
Members: $200 | Aliate Members: $250 | Non-Members: $300
8
9
42 » PA Bankers Association
JOHN STAUFFER
SVP Retail Banking Strategy Officer,
Ephrata National Bank
HOW HAS YOUR EXPERIENCE BEEN
AS A PA BANKERS CHAMPION?
My experience as a PA Bankers
Champion has been great! I have
been able to gain new relationships
and deepen existing relationships
with my colleagues at other
Pennsylvania banks. I often reach
out to these colleagues to discuss
issues related to our industry. During
COVID-19, this has been useful as
we face unprecedented situations,
such as lobby closures. I am also
active with Advanced School of
Banking. I am a 2015 graduate,
served on the Advisory Committee
for 3 years, and now serve as a
director for the Class of 2021.
HOW DO YOU SPREAD THE WORD
ABOUT PA BANKERS TO YOUR
INSTITUTION?
As a PA Bankers Champion, I am set-up
to receive all PA Bankers alerts. When I
receive information that is specific to a
certain function, I relay that information
to the appropriate individuals at Ephrata
National Bank. They may be receiving
it for the second time; however, I would
rather them receive it twice versus not
at all. Additionally, I think they may
be more inclined to open and read a
personalized email from a co-worker
versus an email that comes from PA
Bankers directly.
ANN BAVARIA
SVP, Human Resources,
Marketing & Regulatory Compliance,
New Tripoli Bank
HOW HAS YOUR EXPERIENCE BEEN
AS A PA BANKERS CHAMPION?
I’ve participated on different PA
Bankers Committees for many
years and have witnessed how
the association has grown and
thrived. The PA Bankers Champions
designation has been an essential
support in my role as a SVP in
charge of Human Resources/
Training and Regulatory Compliance.
The PA Bankers Champions program
gives me insider information, so
to speak, about upcoming training
programs, new approved third-party
bank vendors which the PA Bankers
Services Corporation screens and
recommends and enables us to
share information with peer bankers.
As a PA Bankers Champion, we are
asked for input on upcoming events.
I always try to give thought to what
is currently on bankers’ minds and
how PA Bankers can support us
by highlighting a training need or
recommending topics for events.
The quarterly updates I receive
as a PA Bankers Champion have
given me resources for ongoing
professional development of our
bank employees. PA Bankers
Champions are also asked for
feedback on any PA Bankers
programs they attend, and I can
assure you that they listen to ensure
high quality events and training
continue. It’s been an honor and a
pleasure to serve as a PA Bankers
Champion.
from yourPEERS
What's It Like To Be a PA Bankers Champion?
Looking to maximize the
value of your membership?
Contact Karen McDermott,
kmcdermott@pabankers.com or (717) 255-6914,
to learn more about the program and select a
PA Bankers Champion today!
HOW DO YOU SPREAD THE WORD
ABOUT PA BANKERS TO YOUR
INSTITUTION?
At New Tripoli Bank as the HR director,
I know everyone pretty well. I am able
to look at upcoming training programs
and banking schools and work with
the senior team and our managers to
directly recommend which employees
should participate. A bank is only as
good as its ongoing training efforts,
so I focus a lot on the PA Banker’s
educational offerings. This information
is disseminated through email, phone
calls and discussed at our senior staff
meetings when appropriate.
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to develop an understanding of each clients business to achieve their strategic and risk management goals.
LISA HASSINGER
CRCM, Senior Vice President &
Chief Risk Officer,
The Northumberland National Bank
HOW HAS YOUR EXPERIENCE BEEN
AS A CHAMPION?
I am happy to be a member of the PA
Bankers Champion program. As a PA
Bankers Champion, I have become
more aware of the value PA Bankers
provides to our community banks. I am
proud to encourage the employees
of our bank to take advantage of the
opportunities available to them.
HOW DO YOU SPREAD THE WORD
ABOUT PA BANKERS TO YOUR
INSTITUTION?
Typically, I forward email notifications
from PA Bankers to the members of
management with recommendations
for them or their staff. I include an
introduction to PA Bankers during
new hire training. If a new hire is not
familiar with PA Bankers, I provide
them with an overview of the value PA
Bankers provides to community banks
with their advocacy efforts, and I
introduce them to the educational and
networking opportunities available to
help further their careers.
44 » PA Bankers Association
vendorARTICLES
WHERE WE ARE TODAY
In an emergency Sunday meeting on
March 15, 2020, the Federal Reserve
announced it was dropping its
benchmark interest rate to zero and
launched a new round of open-ended
quantitative easing. The move was
a direct response to the coronavirus
outbreak, which had disrupted
economic activity around the world,
including the United States. During this
time, the 10-year and 30-year treasury
bond yields reached new all-time low
as dollars flowed into the treasury
markets seeking the “full faith and
credit” of the United States government.
The moves by the Fed and the markets
left financial institutions with a U.S.
Treasury Curve at historic lows. As a
result, institutions with asset sensitive
balance sheets are facing the likelihood
of margin compression.
So, here we are with low interest rates
following a severe economic downturn.
Hey, I’ve seen that movie before! In 2008,
the Fed sharply cut its target funds rate
down to zero in an effort to spur lending
and jumpstart overall economic activity.
In the crisis environment of 2008-2009,
many banks were tempted to purchase
investments outside their typical
investment purchases in order to find
yield. Private label MBS and CMOs, trust
preferred securities, preferred stock,
and subordinated debt were a handful
of the types of investments that were
purchased. In the wake of that crisis,
many of those securities experienced
major losses or became worthless. More
than a decade later, and we’re seeing
a resurgence of some of these same
types of investments.
DODGING BULLETS
If you are shown an investment offering
a yield that “seems a little too good to
be true,” ask questions! Educate yourself
and understand the risks. There is almost
always a reason for the increased yield,
as bond markets are very efficient at
pricing in risk. As the saying goes “there
is no free lunch in the bond market,
meaning in order to increase the yield
or reward received on a bond, you must
take on more risk. That increased risk
usually comes from a combination of the
following categories: credit risk, interest
rate risk, and liquidity risk.
A recent example of potential trouble is
that of bank subordinated debt. Many
banks are actively taking advantage of
today’s low interest rate environment
to issue relatively cheap subordinated
debt to bolster their capital levels
(Tier 2 Capital). Furthermore, with
many economic uncertainties on the
horizon, it makes sense for some banks
to issue subordinated debt to boost
their overall capital position and total
risk-based capital ratios ahead of the
economic uncertainty. The issuers are
acting rationally, but what about the
risk to those who buy these bonds?
It’s true that subordinated debt offers
enhanced yields; however, it comes
at the cost of increased credit and
liquidity risk. When a bank fails, there
are numerous claims to a failed bank’s
assets and the holders of subordinated
debt are usually left with little to
nothing. Data from the last financial
crisis shows a very high “loss given
default” percentage on failed banks’
subordinated debt. Investment in
subordinated debt should be looked
at as an unsecured loan to another
financial institution. As a result,
regulators tend to take a harsher view
on the investment portfolios that hold
bank-subordinated debt.
STICKING TO THE PLAN
We have always been big proponents
of having a written strategy. A written
strategy lets you proactively manage
the investment portfolio instead of
being sold “the bond of the day.
Your investment strategy should be
intertwined with your balance sheet
needs and overall risk appetite. If an
investment doesn’t fit your investment
strategy, then pass on it. Having a written
investment strategy helps strengthen
your corporate governance and there’s
an added bonus of having some
tangible to show to the regulators.
The banking industry is likely to have
some challenging days ahead due
the recession caused by the COVID-
19 pandemic. Now is the time to
work towards mitigating your credit
risk and not reaching for more. Know
what you are buying, understand the
risks, and ask questions!
Sticking to Your Strategy:
Avoiding Pitfalls in a Low Rate Environment
ABOUT THE AUTHOR:
DALE SHELLER IS SENIOR VICE PRESIDENT IN THE FINANCIAL STRATEGIES GROUP AT THE
BAKER GROUP. He joined the firm in 2015 after spending six years as a bank examiner with the
Federal Deposit Insurance Corporation. Sheller holds a bachelor ’s degree in finance 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 » Quarter 3, 2020 45
46 » PA Bankers Association
ven before COVID-19, the
role of the community
bank CFO was beginning
to shift. No longer looked
upon as simply an accountant, new
technology like mobile banking
and performance management
solutions was entering the market that
broadened the role of the CFO.
Now, as we move forward toward
whatever our “new normalwill be,
the CFO’s role is expanding into roles
beyond finance and accounting.
Today’s community bank CFO
will need to help navigate a new
generation of customers and its staff.
Here are some of the ways:
Strategic advisor. The modern CFO
is well-positioned to understand the
market opportunity, strategy and
business model of the organization.
They also provide a unique
perspective across all the institution’s
business functional groups. Besides
the CEO, the CFO is the only person
with a clear view of the big picture
and limited bias toward any one
aspect of the bank’s performance.
Disciplined operator. Today’s CFO
provides data, information and
insights, and puts them into action.
The CFO is responsible for building
scalable systems and processes. To
excel, the CFO must move beyond
the financial report card and embrace
broader business insights. To ensure
success, the CFO must speak the
language of business and understand
that the key drivers of business are
often significantly more than what
shows up on the balance sheet.
Innovative technologist. In today’s
banking world, the CFO drives proactive
technology solutions in support of the
business. An educated consumer of
technology, the modern CFO pushes the
envelope, demanding creative solutions
that empower employees. They know
what to ask for and are educated
enough to know what is possible.
According to McKinsey, CFOs are
being asked to lead new initiatives
and functions as their role evolves,
including:
Risk management
• Procurement
Regulatory compliance
• Integration
• M&A
Board engagement
• IT
CFOs also have a role to play in
driving a performance culture
throughout the organization — both
by encouraging performance-
driven behaviors and supporting
the acquisition and retention of top-
performing talent. CFOs increasingly
work alongside CHROs to provide
transparent and relevant performance
reporting and manage to FI goals.
THE LESSONS LEARNED FROM
THE GREAT RECESSION CAN HELP
CFOS NOW
There's no doubt that the COVID-19
pandemic has changed life as we
know it in this country and around the
world. As we emerge from lockdown
and begin re-opening our economy,
the full impact on banks’ financial
performance remains to be seen.
There are many current similarities to
the Great Recession of 2008:
Drastic rate cuts by the Federal
Reserve Board
Lower asset yields
Lagging reductions in cost of funds
Thinner margins resulting in lower
earnings
6 CRITICAL ACTIONS FOR EVOLVING
CFOS
Today’s economic uncertainty is
driving financial hardship for your
customers and is likely putting
downward pressure on the NIM
and earnings at your institution. By
combining the lessons learned from
2008 with the new responsibilities of
your expanded role, you can help lead
the transformation of your financially
stressed institution to succeed in the
world we’ll find beyond the pandemic.
Here are some critical actions for
CFOs to take right now:
1. Focus on the numbers
In times of economic crisis, focusing on
liquidity, loans, deposits and your loan-
to-deposit ratios are critical activities
for the CFO. A lack of liquidity, the
ability of a bank to meet the demands
of its depositors, is a disaster.
You need to be the rock-solid institution
in shaky economic times to give your
customers the confidence they need
to get through tough financial periods.
One important way to do that is a daily
focus on liquidity. Work with your board to
develop a target liquidity range that you’re
comfortable with. Shoot for a number
that's a bit higher than the minimums of
vendorARTICLES
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The CFO’s Role in Helping Your
Community Bank Navigate COVID-19
PA Bankers Association » Quarter 3, 2020 47
10%, to give you a cushion. You'll calculate
this at the end of the month, but you
should be looking at your cash and cash
equivalents, total loans, deposits and
loans-to-deposits ratios daily.
Once you know your numbers, monitor
them as closely as possible every day.
Don't worry if ups and downs occur.
They will, inevitably. Concentrate on
the trends and respond appropriately
based on those indicators.
A performance management tool
can be your ally in this effort. You
can set an alert to notify you if your
numbers fall below your target. You'll
be informed and poised to take quick
action. You need to forecast your
sources and uses of cash at least on a
monthly basis. If liquidity starts to get
tight and funds are more difficult to
acquire, you might want to consider
going to a weekly forecast. Regulations
may require that, based on how long
the situation persists. The key here is to
avoid any unwelcome surprises.
2. Update your contingency funding
plan (CFP)
Your CFP is your liquidity crisis
management guide, created for a
future funding emergency. It gives a
bank a deep view into the strengths
and, perhaps, weaknesses of its
liquidity. But nobody’s crystal ball is
accurate enough to have predicted
the events of early 2020. Review and
revise your CFP as necessary. Work
with your board and update those
plans. Update your cashflow stress
test scenarios to reflect this current
environment. Test those contingency
funding sources and make sure
they’re still there and available.
Also, review your collateral. Identify
collateral accessible for pledging
before it becomes necessary to do so.
3. Review your loan portfolio and CD
maturity schedule
The maturity schedule of your loan
and CD portfolios can help give you an
understanding of where you're headed
in the future. Start thinking about how
you can reprice your loans as they
come up for maturity and renewal to
increase your net interest margin. If
they don’t have rate floors, look for
ways to insert those rate floors now.
Also, examine your CD maturity
schedule. Do you have good maturity
later with relatively equal amounts
maturing each month? Or do you
have some large buckets all maturing
at the same time? Rates are at rock
bottom right now but are guaranteed
to start rising. The impact to your NIM
will depend on the pricing structure of
your loan and CD portfolios, the extent
to which loan yields are protected by
rate floors when you made the loans
and how you manage maturing CDs.
5. Prepare for staff changes
As CFO, you've been dealing with
numbers, liquidity, CFPs and every other
fire you need to put out daily. You may
have furloughed some of your staff, or
your people may have been working at
home because most branches aren't
open beyond drive-through transactions.
Your bank's business has still been going
on because of their efforts.
However, your staff has been dealing
with this pandemic on a personal level
as well. Families have been impacted,
members of your staff may have
contracted the virus, personal finances
may be in flux. Your staff may not be
ready to return to the bank for some
time. Or, they may have been looking
for new jobs while they were furloughed
and wondering if they'd have jobs to
return to. CFOs should prepare for this
and make sure the chain of command
for critical functions is intact.
6. Strategize and drive necessary
change
All this focus on your bank's
operations can have a silver lining.
With your broader perspective
as an evolving CFO, you may find
improvements and opportunities that
you hadn't noticed before. This might
mean bolstering your CD maturity
ladder, increasing your non-interest-
bearing deposits and even creating
improved communication and
transparency with your staff.
8. Create a plan for the future
According to a timely report by
McKinsey, "strong, steady leadership
from the finance organization is critical"
during the COVID-19 crisis and beyond.
For the CFO, creating a plan that
anticipates multiple future scenarios
is the key to putting his or her bank
in a position to thrive post-COVID-19.
It will be vital to bolster your team's
productivity, focus on rolling forecasts
and look at ways technology can help.
Empowering a performance banking
mindset will also go a long way
toward positioning your bank and
your staff for a positive future. Your
role as CFO is not just about helping
your institution get through uncertain
times, it's also about positioning the
organization to thrive in the future.
ABOUT THE AUTHOR:
BARRY ADCOCK draws upon a deep understanding of financial institutions’ operations gained through
almost 25 years’ experience in controller and CFO roles at THE BANKER’S BANK, GEORGIAN BANK
and NORTHSIDE BANK. He holds a bachelor’s degree in business administration and accounting from
Kennesaw State University and earned his CPA license from the State of Georgia in 1998.
48 » PA Bankers Association
s we all have had to navigate the personal and
professional impacts of COVID-19, we wanted to
take a deeper dive into pandemic planning for the
financial services industry.
WHAT WE’VE LEARNED
While the outbreak continues to present challenges,
institutions are now finding themselves either executing or
developing procedures to return to the workplace. Their
pandemic, crisis communications and business continuity
plans have been invoked and many have learned how
effective (or ineffective) their workforce can be from home.
However, certain functions within financial institutions
may not have the flexibility to have their entire workforce
mobilize in a work-from-home environment. In certain
situations, such as branch locations with drive-through and
lobby hours, staggered staff and shift work are common
solutions to ensure that institutions can continue to serve
their communities while attempting to safeguard their
employees. Likewise, many institutions have had to cross-
train personnel to ensure that critical business processes
remain available and effective. For many institutions, this
crisis has been a true test to determine how prepared
the institution is to safeguard their employees and
sustain operations amid the outbreak, considering social
distancing, travel restrictions and increased illness.
What we have learned has highlighted the importance of
having effective:
Risk assessment
Business impact analyses
Continuity strategies
Recovery strategies
Effective plans
Effective testing of those plans
Effective communications
The aforementioned foundational elements should have
dedicated task force oversight with cross-functional
leadership buy-in and clear objectives, to ensure that
pandemic-specific actions can be effectively invoked and
carried out.
All institutions must consider how best to contribute to
the decrease in the spread of COVID-19, while providing
a safe haven for employees, customers and communities,
while still focusing on the bottom line. Employers should
identify and communicate their objectives, which include
the following:
Reducing transmission among staff,
Protecting people who are at higher risk for adverse
health complications,
Maintaining business operations, and
Minimizing adverse effects on other entities in their
supply chains.
Ongoing communication between the employee and
employer is critical to ensure that awareness, expectations
and risk exposure are continuously evaluated. This will
help to define trigger points and drive the decisions to
ensure that appropriate business decisions are made,
while providing a level of assurance to your employees and
customers.
BEST PRACTICES AMID THE CRISIS
As we continue to navigate the pandemic and re-enter the
workplace, it is critical to continue to consider the following
recommendations for the safety of employees and the
continued heath of your business.
Require sick employees to stay home; isolate sick employees
Emphasize respiratory etiquette and hand hygiene to
all employees
Perform routine environmental cleaning
Maintain awareness of international, domestic,
regional and local travel restrictions
Maintain awareness of severity of the pandemic
within your region and local communities
Mitigate the impact and exposure to high-risk employees
Prepare/monitor for employee absences due to:
o illness of employees and family members
o closures or restrictions of early childhood programs
and K-12 schools
o restrictions of public transportation
vendorARTICLES
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Our Thoughts On:
COVID-19 and Pandemic Planning for
Financial Services
PA Bankers Association » Quarter 3, 2020 49
Implement plans to continue essential business
functions, with anticipation of high absenteeism in
critical roles
o Cross-train personnel to perform essential functions
Assess your essential functions and the reliance that
others and the community have on your services or
products
Collaborate with customers on ways to continue to meet
expectations, while mitigating the risk of exposure to
each other
Coordinate with state and local health officials so that timely
and accurate information can guide appropriate responses
Establish policies and procedures, such as travel
restrictions, flexible worksites (e.g., telecommuting) and
flexible work hours (e.g., staggered shifts), to increase
the physical distance among employees and between
employees
Ensure that policies and procedures are easily accessible
to employees and provide clear instructions on how to
conduct remote meetings, remotely connect to systems
and where to check for updated information
Identify essential business functions and critical elements
within your supply chains required to maintain business
operations
Ensure business technologies can support the ability and
capacity to efficiently and effectively work remotely
o Secure and stress testing your remote capabilities and
communication tools for performance issues
Identify and modify triggers and procedures for activating
and terminating the company’s continuity and recovery plan
Establish a process for visitors that includes helping them
to understand the threat and risk they could impose on
your organization
o Where have they traveled recently?
o Have they been in contact with anyone who has
traveled recently?
o Ascertain their contact with anyone that has traveled
to restricted or known infectious areas recently.
Throughout this process and as the pandemic spreads or
even dissipates, institutions must effectively communicate
their current and future plans with employees and customers.
WHERE DO WE GO FROM HERE?
Combining what we have learned thus far, with best
practices, and collectively incorporating those items into
our existing continuity and recovery strategies will help
to ensure that institutions are prepared to navigate the
potential “second wave” of the pandemic.
If you have questions on pandemic planning for your
organization, we would welcome a discussion on this
increasing concern.
How does your banking
institution compare to
others in the industry?
Download our complimentary
banking KPI benchmarks report:
go.bakertilly.com/PABankers
Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of
Baker Tilly International Ltd., the members of which are separate and independent
legal entities. © 2020 Baker Tilly US, LLP
ABOUT THE AUTHOR:
ERIC M. FAIR, CISA, CBCLA. Eric is a manager in the RISK ADVISORY SERVICES
practice at SCHNEIDER DOWNS. He joined Schneider Downs in 2011 and
has nearly nine years of experience providing IT internal audit and risk
advisory co-sourcing and outsourcing consulting services across various
industries, including nearly four years of experience leading, managing, and mentoring a team of IT audit, security and risk
professionals to successfully serve our clients. Eric is responsible for leading the engagement team to coordinate, conduct
and review engagement deliverables, as well as ensuring effective communications to provide continued value to clients.
50 » PA Bankers Association
vendorARTICLES
oronavirus pandemic”
and “COVID-19” are
terms that have become
common in our everyday
conversations and continue to
dominate the headlines of local and
national news. From reading the
news online to turning on the TV,
we find ourselves as recipients in
a constant stream of Covid-related
statistics: recovery rates, total tests
administered, tallies of positive vs.
negative results and even death tolls.
What does all of this mean in terms
of personal impact to our employees
and businesses? While much has
been written about PPE, social
distancing and CDC-guidelines for
safe reopening of businesses, what is
happening behind these stories? What
are the real impacts? How are we able
to continue serving and supporting
our communities and the employees
of the banks of Pennsylvania?
Through the Bank Health Care
Consortium of Pennsylvania
(BHCCPA), under the leadership of
the Pennsylvania Bankers Association
Services Corporation, a recent
meeting of more than 30 members
enabled the banks to not only
understand the cost of the health
insurance claim impact on their
bank, but other banks throughout
the Commonwealth. In addition, the
consulting teams of L.R. Webber and
The Benecon Group, Inc. were able to
share health claims and experience
related to COVID-19 that over 500
other employers in Pennsylvania have
experienced. This type of community
and peer-to-peer engagement
offered through membership in the
BHCCPA manifests the phrase we’re
all so familiar with; we are all in this
together.
HEALTH INSURANCE COSTS: WHAT
HAS HAPPENED; WHAT CAN WE
EXPECT?
As of early August, the claims data
for the 43 member banks in the
BHCCPA reveals minimal claim
activity for COVID-19. This data base
represents over 10,000 employees
and dependents. This result is
in line with broader results other
employers have seen throughout the
Commonwealth. Benecon actuaries
shared results with the BHCCPA
from their recently modeled cohort
of 100,000 employees, based on
average employer demographics,
to CDC data on hospitalizations on
demographics. The result is that on
average 1 in every 1,200 employees
may need hospitalization for COVID-
19. The health care actuaries of
Benecon are anticipating an increase
of claims directly related to COVID-19
of less 0.5%, this would include testing
and the actual cost of care for COVID-
19 for members of a bank’s health
plan. This increase is more than offset
by the reduction of utilization that has
been seen throughout the months of
April through July which has resulted
in employer health care claims
dropping over 30%. This is producing
a period of record profits for insurance
carriers. Members of BHCCPA are
on a self-funded platform and as a
result instead of producing a profit
for the insurance carrier, they are
seeing the reduction of health care
expenditures fall to their bottom line.
Further, the LR Webber team was
able to share their observed data on
COVID experience throughout their
broader client base as well as offer
solutions for the BHCCPA members
to navigate through this period. Not
familiar with self-funding? There may
never be a better time to consider
self-funding of your bank’s health
insurance. With strained margins and
the need to control expenditures
self-funding of your health insurance
through BHCCPA should be a serious
consideration.
EMPLOYEE WELLBEING &
RESOURCES FOR BHCCPA MEMBERS
As this pandemic continues to have
a direct impact on our nation and the
Commonwealth, there are mental
health implications that extend
beyond epidemiology and the virus
itself. Many of our employees are
often caretakers for relatives that may
be in a demographic that is at a higher
risk for adverse impacts from COVID-
19. This can easily create stress and
anxiety for those employees as they
juggle caretaking concerns with their
own work responsibilities.
The vast majority of employers
recognize that their employees are
the most valuable asset in their
organization. Employee wellbeing
and safety are top organizational
priorities. One area of employee
wellbeing that may be less obvious
is the mental health component.
Have you noticed co-workers, family
Bank Health Care Consortium of PA:
Health Insurance Costs & Employee
Wellbeing in the Era of COVID-19
C
PA Bankers Association » Quarter 3, 2020 51
members or friends being more
anxious or irritated than normal? How
about yourself; have you stopped
to think about how stress might
be impacting your relationships?
According to the National Institute
of Mental Health (NIMH), “Coping
with the impact of chronic stress
can be challenging. Because the
source of long-term stress is more
constant than acute stress, the body
never receives a clear signal to
return to normal functioning. With
chronic stress, those same lifesaving
reactions in the body can disturb the
immune, digestive, cardiovascular,
sleep, and reproductive systems.
Some people may experience mainly
digestive symptoms, while others
may have headaches, sleeplessness,
sadness, anger, or irritability. Over
time, continued strain on your
body from stress may contribute to
serious health problems, such as
heart disease, high blood pressure,
diabetes, and other illnesses,
including mental disorders such as
depression or anxiety.
Just as we need family and friends
to help us discuss our emotional
needs there are times when we
need professionals that are trained
and experienced to help us achieve
mental and emotional wellbeing.
These professionals (therapists,
psychologists and mental health
clinicians) are objective outsiders
and offer expert-solutions for dealing
with stress. Not sure where to turn?
Most health insurance carriers have
Employee Assistance Program (EAP)
resources. Please check with your
carrier for a list of referral resources.
You may also find that there are
several community resources that
are complimentary or have a nominal
cost. Here are a few we recently
shared with our own clients:
Mental Health Resources
www.mindfulness-solution.com
www.Mindful.org
University of Pennsylvania,
www.authentichappiness.com
Apps available to download: Calm,
Headspace, Smiling Mind
Nutrition & Sleep Resources
Nutrition: USDA Choose MyPlate
Sleep: MedlinePlus Healthy Sleep
Spiritual Resources
“Spiritual Evolution: How We are
Wired for Faith, Hope and Love”
by George Vaillant
Interpersonal Relationships &
Connections Resources
National Institute of Health:
Social Wellness Toolkit
Relationship Management,
Emotional Intelligence 2.0 by
Travis Bradberry and Jean Greaves.
Wellbeing: The Five Essential
Elements by Tom Rath and
Jim Harter
From a business perspective, now is
the most opportune time to address
the issues of health care cost and
employee wellbeing. The BHCCPA
has the expertise, resources and
programs that can positively impact
your bottom line and strengthen your
employees’ ability to deal with stress
and anxiety during this challenging
time. For more information please
contact Cindy Wallett at cwallett@
pabankers.com.
vendorARTICLES
ABOUT THE AUTHORS:
BRAD KOPCHA, FSA, FCA, MAAA, EXECUTIVE VP ACTUARIAL SERVICES & BUSINESS DEVELOPMENT, THE BENECON GROUP, INC.
CLAUDIA BURCHSTEAD, CSFS, SENIOR DIRECTOR, THE BENECON GROUP, INC.
MARK KUNKLE, RETIRED CREDENTIALED MUNICIPAL MANAGER, LIFE MEMBER ICMA, MPA, CSFS, DIRECTOR PROGRAM
MANAGEMENT, THE BENECON GROUP, INC.
52 » PA Bankers Association
vendorARTICLES
any banks across the country are at risk of
CAMELS downgrades, increased deposit
insurance assessment premiums, and
regulatory enforcement actions due to
inadequate risk management practices for their COVID-19
Loan Modification Program.
Loan modifications have been part of most banks’ lending
operations for many years. Before the coronavirus, such
modifications were often prompted by a borrower’s
“financial distress.” Banks would attempt to work with the
financially distressed borrower by granting a “concession”
that the bank otherwise would not consider for other
borrowers with a similar risk profile. An example of such
a loan modification might be an interest rate reduction
from 5% to 3% for 12 months to help a financially
distressed borrower. Generally speaking, this type of loan
modification would be categorized as a Troubled Debt
Restructure (“TDR”) under accounting literature (ASC
310-40) and captured as such in Call Reports. TDRs are
considered impaired loans.
MANY BANKS HAVE COVID-19 LOAN MODIFICATIONS
APPROXIMATING 25% OF THEIR COMMERCIAL
PORTFOLIO.
When the country became engulfed with the coronavirus,
both Congress (Section 4013 of the CARES Act) and the
Regulators (April 2020 Interagency Guidance) issued
material to guide banks on TDR designation for COVID-
19 related loan modifications. It is critical for bankers to
understand that while Section 4013 and the April 2020
Interagency Guidance both discuss the applicability
of TDRs, they have materially different requirements
(modification duration, date of record for current/
delinquency status, etc.) for determining when the
TDR designation is necessary. FinPro urges all banks
to specifically designate whether the COVID-19 Loan
Modification was approved under Section 4013 of the
CARES ACT or under the April 2020 Interagency Guidance.
This document should be in each loan modification file and
address the following items:
Was the borrower impacted by COVID-19?
Y e s ________ N o ________
Was the modification pursuant to Section 4013?
Y e s ________ N o ________
o If yes, was the loan was current as of Dec. 31, 2019?
Y e s ________ N o ________
o If yes, was the loan modification was between
March 1, 2020 and Dec. 31, 2020?
Ye s ________ N o ________
Was the modification pursuant to the Interagency
Guidance? Ye s ________ N o ________
o If yes, was the loan current at time of modification?
Y e s ________ N o ________
o If yes, was the loan modification short term
(i.e. 6 months)? Ye s ________ N o ________
Remember that banks must maintain records on the number
and dollar amount of loan modifications approved under
Section 4013 and under the Interagency Guidance and report
this data to the Board of Directors on a regular basis.
THE TDR DETERMINATION IS ONLY THE FIRST STEP IN
THE COVID-19 LOAN MODIFICATION PROCESS.
Unfortunately, too many banks neglect to implement the
second step in the COVID-19 Loan Modification process,
which is vital to accurately identify, measure, monitor, and
control the bank’s risk profile.
Banks must properly “Risk Rate” COVID-19 Loan Modifications
and incorporate such risk ratings into their ALLL/ACL
calculations. Loans modified under Section 4013 or the
Interagency Guidance pertain ONLY to borrowers who have
been impacted by the coronavirus. By definition, these
borrowers have financial performance less robust than before
COVID-19. In some cases, these borrowers may have serious
cash flow problems driven by the coronavirus that impact
their ability to service their debt. It is incumbent on banks to
accurately “Risk Rate” these borrowers at the time of loan
modification and on a regular basis going forward. FinPro has
COVID-19 Loan Modifications
It is more than just a TDR issue
M
PA Bankers Association » Quarter 3, 2020 53
HELPING BANKS STAY COMPLIANT & AHEAD OF THE CURVE BY
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
Princeton, NJ - 609.689.9700 | Philadelphia, PA - 215.854.4059
Mercadien.com
Salvatore Zerilli, CPA, CAMS
Managing Director & Chair,
Financial Institutions Services
szerilli@mercadien.com
FINANCIAL INSTITUTIONS SERVICES GROUP
observed that many banks have internally “risk rated” their
COVID-19 loan modifications to a “watch” category.
Moreover, these new risk ratings must be incorporated into
the ALLL/ACL calculation. One “best practice” observed
for community banks across the country is to establish a
“homogenous pool sub-tier” within the ALLL/ACL methodology
to break out all such loan modifications within each
homogenous pool. Noteworthy, this approach is often used in
conjunction with a new “COVID-19 Q-Factor” that many banks
now incorporate their ALLL/ACL methodology. Some banks
have actually appended a one- or two-digit code to COVID-19
loan modifications to ensure easy identification over time.
Lastly, effective Corporate Governance is critical to avoid
CAMELS downgrades and enforcement actions. Corporate
Governance starts with a comprehensive documentation
process. As noted earlier, banks must maintain records of all
COVID-19 loan modifications, specifically noting whether such
modifications were executed under Section 4013 of the CARES
Act or the Interagency Guidance. Remember, modifications
cannot fall under both categories since they have different
(and competing) requirements. This information should be
reported to the Board of Directors on a regular basis. Similarly,
the management must inform the Board of Risk Rating trends
for COVID-19 loan modifications and how such ratings have
impacted the Bank’s ALLL/ACL. These actions, together with
updated policies and procedures to incorporate coronavirus
actions, robust MIS and Risk Management practices, and
comprehensive Internal Controls will properly prepare banks to
address any regulatory concerns.
ABOUT THE AUTHOR:
SCOTT POLAKOFF, CAMS, is executive vice president with FINPRO, a full-service
management consulting firm specializing in providing advisory services to the financial
institutions industry. He can be reached at spolakoff@finpro.us / www.finpro.us
54 » PA Bankers Association
48 » PA Bankers Association pabankers.com
PA Bankers Services Corporation
Select Vendors Provide PA Bankers
Members Savings, Service and Quality
*As of 4/12/19
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
APPI ENERGY
Electricity and Natural
Gas Procurement Services, Utilities
Management Platform
Margo Madden
(667) 330-1239
mmadden@appienergy.com
ANDERSON GROUP
Integrated Marketing and
Communications and
Business Intelligence
Ray Melcher, (610) 678-1506
rmelcher@thinkanderson.com
APPROVAL PAYMENT
SOLUTIONS, INC.
Merchant Processing, Search Engine
Optimization, Website Design and Social
Media Management
Danielle Lausch, (717) 892-8988
dlausch@apsolutions.net
THE BAKER GROUP
Asset/Liability Management
Software and Services
Charles Amis, (405) 415-7231
Charlie@gobaker.com
34 banks received credits in surplus of
over $8.9 million in 2018 with an average
net funding increase in single digits.
Wayne Whipple, (717) 255-6925
wwhipple@pabankers.com
BANK HEALTH CARE
CONSORTIUM OF PA
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@pabankers.com
CORNERSTONE ADVISORS
Core, Debit EFT, Card Program, Loan
Origination, Bill Pay, Mobile Banking &
ATM Contract Negotiation
Jennifer Wagner, (480) 425-5204
jwagner@crnrstone.com
CRA PARTNERS
Receive High-Yielding CRA Credit
Terry B. Rooker, (901) 529-4781
terry.rooker@SHCPFoundation.org
PA Bankers Services Corporation
Select Vendors Provide PA Bankers Members
Savings, Service and Quality
PA Bankers Services Corporation
Select Vendors Provide PA Bankers Members
Savings, Service and Quality
PA Bankers Association » Quarter 3, 2020 55
PA Bankers Association » Quarters 1 & 2, 2020 49
* 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.
ONE POINT
Outsourced Internal Purchasing, Office
Supplies, Inventory Control and IP
Address Marketing/Sales
Pat McMahon, (570) 207-5107
pmcmahon@opoffice.com
PWC:
FONT: Handwriting-draft_free version
Campbell:
FONT: Century Gothic _ Regular
Icon-Marble
BUILDING CONFIDENCE...:
FONT: Handwriting-draft_free version
PMS485
Black 80%
CMYK CMYK CMYK CMYK
CMYK CMYK CMYK CMYK
Icon-Bridge
B-90% B-Screen
Black 80%
PWCAMPBELL
Planning, Design Coordination,
and Construction Management
Erin Campbell, (800) 253-7430
erin.campbell@pwcampbell.com
INVESTORS TITLE
INSURANCE COMPANY
Multi-Bank Owned Title
Insurance Program
Karen Barnett, (419) 577-5900
kbarnett@invtitle.com
THE KAFAFIAN GROUP
Performance Measurement
Robert E. Kafafian
(973) 299-0300 x106
rkafafian@kafafiangroup.com
L.R. WEBBER
Multiple Medical, Drug, Dental &
Vision Options and EB Solutions
Brad Webber, (814) 695-8066
bwebber@lrwebber.com
NCONTRACTS
Integrated Compliance,
Vendor and Risk Management
Michael Harrison (888) 370-5552
Michael.Harrison@ncontracts.com
KEYSTATE CAPTIVE MANAGEMENT
Brian Amend
Managing Director & VP Sales,
Eastern Region
(302) 425-5158
bamend@key-state.com
GRADIENT CYBER
Automated CAT Tool & Digital
Forensic Investigation, Network
Consensus Cybersecurity
Chris Warman, (412) 600-7860
cwarmanjr@gradientcyber.com
DEALERTRACK COLLATERAL
MANAGEMENT SERVICES, INC.
Electronic Lien and Title Program
Wayne Whipple, (717) 255-6925
wwhipple@pabanker.com
DELUXE CORPORATION
Check Program
Todd Wroblewski, (724) 625-5599
todd.wroblewski@deluxe.com
NFP EXECUTIVE BENEFITS
BOLI, Executive Compensation
and Long-Term Care
David Shoemaker, CPA/PFS, CFP
®
(901) 754-4924
david.shoemaker@nfp.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
Cornerstone Advisors
Solutions
Pennsylvania Bankers Association members can uncover cost savings,
line up enhanced revenue and drive improved eciency and performance
working with Cornerstone Advisors.
crnrstone.com
Contract Negotiations
When you partner with Cornerstone Advisors,
decades of experience negotiating hundreds of
contracts work in your favor. Cornerstone’s skilled
team negotiates aggressively on your behalf to
produce a contract that delivers:
Competitive, market-based pricing
Best in class legal terms
An improved vendor relationship
With Cornerstone on your side, you are always in
control and can expect the very best results from
your vendor contract negotiations.
Technology Diagnostic
Cornerstone’s IT Expense Diagnostic is designed
to identify areas where you can reduce, redirect or
eliminate spend for IT stang, professional services
and/or contractors based on a revised project load for
2020. The diagnostic helps you rationalize and prioritize
future projects based on the application of business
case ROIs in the COVID/post-COVID environment.
Cornerstone’s diagnostic helps you:
Identify and eliminate redundancy
Improve pricing
Increase savings opportunities
Achieve greater transparency in the
decision-making process
Delivery Channel Optimization
Cornerstone Advisors stands ready to help you do the work
to improve earnings potential in 2020. Contact us today.
Payments Optimization
No area of financial services has seen more changes
and new entrants than the payments arena. With
payments revenue accounting for as much as 40%
of an institution’s non-interest income, banks must
take a proactive approach to protect and grow this
revenue engine to its fullest potential.
Cornerstone Advisors helps you take control of your
payments business and benefit with:
Increased revenue
Reduced expenses
Minimized risk exposure
COVID-19 has accelerated the number of consumers
embracing digital banking oerings. Now more than
ever, banks need to transform the digital channels
that customers require for their payments and
banking activities.
Cornerstone can help you set a strategy, select and
implement the right systems, and drive a return on
your channel investments to oset compressed
earnings in 2020. When you partner with
Cornerstone, you gain:
A delivery channel transformation
An enhanced customer experience
Increased customer loyalty
Jennifer Wagner
jwagner@crnrstone.com
602.770.4220
PA Bankers Association » Quarter 3, 2020 57
aba.com/UnConPA
UNCONVENTIONAL
A VIRTUAL EXPERIENCE FROM ABA
OCTOBER 19 20 2020
Un
con
ven
tion
al, adj.
uncommon, different, interesting and out of the ordinary
It’s a dening moment for the banking industry. And we’re
planning something big. Join us on-screen as we come together to
think differently, collaborate and strategize, and focus on the future.
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The insights you want.
The access you need.
deluxe.com/BankersDashboard
© 2020 Deluxe Corporation
Get anytime, anywhere access to your financial performance with
Banker’s Dashboard from Deluxe
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3897 North Front Street
Harrisburg, PA 17110
As a strategic partner to more than 140 banks,
we never stop working to adapt to change,
quickly and eiciently.
As the world experiences unprecedented changes, history shows that change is more
oen the rule than the exception. The same can be said for the world of banking. And when
it comes to changes in banking, you should rely on the experts. As The Banking Experts,
we have only worked in banking, every hour of every day, every week of every month, for
more than 70 years. In fact, no other accounting and consulting firm possesses greater
knowledge of community banks’ needs, challenges, and opportunities than S.R.
Snodgrass — which is why, in a world, that never stops changing, we’ll never be stay
the same. If you think our unrivaled banking expertise and personalized service could
benefit your bank, please allow us to introduce ourselves. We’d be delighted to meet you.
www.srsnodgrass.com/banking
(833) 404-0344
WE’LL NEVER
BE THE SAME.
As a strategic partner to more than 140 banks,
we never stop working to adapt to change,
quickly and eiciently.
As the world experiences unprecedented changes, history shows that change is more
oen the rule than the exception. The same can be said for the world of banking. And when
it comes to changes in banking, you should rely on the experts. As The Banking Experts,
we have only worked in banking, every hour of every day, every week of every month, for
more than 70 years. In fact, no other accounting and consulting firm possesses greater
knowledge of community banks’ needs, challenges, and opportunities than S.R.
Snodgrass — which is why, in a world, that never stops changing, we’ll never be stay
the same. If you think our unrivaled banking expertise and personalized service could
benefit your bank, please allow us to introduce ourselves. We’d be delighted to meet you.
www.srsnodgrass.com/banking
(833) 404-0344
WE’LL NEVER
BE THE SAME.