simplebooklet thumbnail

The Official Magazine of the Pennsylvania Bankers Association

PA Bankers Association » Quarter 4, 2019 1
BANK
K
ORK$
QUARTER 4 | VOLUME 21.4
Comes to Pittsburgh
ŏljƉ¤ƉB)Ɖb)ƉzzƉ
FXXƉU))zƉ¤jƉ
jbb))%Ɖ
FBƉzƉbU)~
SECOND-ANNUAL
b)¢Ɖ
:)b)~FjbƉƉ
bU)~Ɖ%)`¤
)`)~:Fb:Ɖ
X)%)~ƉƉ
Congratulations to the
PA Bankers H.Y.P.E. Award Winners
CONGRATULATIONS, FALL GROUP MEETING & RECOGNITION RECEPTION HONOREES!
Cgrulis
PHOTO CREDIT: ELAN MIZRAHI
FALL GROUP MEETING
& RECOGNITION
RECEPTION HONOREES!
A UNIQUE HEALTH CARE ALTERNATIVE
for Pennsylvania-Based Financial Institutions and
&ǽPMEXI2IQFIVWSJXLI5&'EROIVW&WWSGMEXMSR
WHAT IS THE BANK HEALTH CARE CONSORTIUM OF PA (BHCCPA)?
8LI'-((5&MWEYRMUYILIEPXLGEVIEPXIVREXMZIJSV5IRRW]PZERMEFEWIHǻRERGMEPMRWXMXYXMSRWERH&ǽPMEXI2IQFIVW
of the PA Bankers Association. Since its launch in July 2007, the PA Bankers Services Corporation, L.R. Webber
ERH8LI'IRIGSR,VSYTLEZIGSPPEFSVEXIHXSTVSZMHIIZIV]GSRWSVXMYQQIQFIV[MXLPIZIVEKIERHFIRIǻXWSJ
IGSRSQMIWSJWGEPITPERHIWMKRǼI\MFMPMX]ERHWMKRMǻGERXGSWXGSRXVSPWXVEXIKMIWXSXLIMVKVSYTLIEPXLTPER
PA BANKERS SERVICES CORPORATION
;E]RI;LMTTPI
:MGI5VIWMHIRX'YWMRIWW)IZIPSTQIRX
(717) 255-6925
[[LMTTPI%TEFEROIVGSQ
LEARN MORE ABOUT THE PROGRAM
L.R. WEBBER
'VEH;IFFIV
2EVOIXMRK2EREKIV
(814) 317-4186
F[IFFIV%PV[IFFIVGSQ
THE BENECON GROUP
(PEYHME'YVGLWXIEH
Senior Sales Director
(717) 723-4624
GFYVGLWXIEH%FIRIGSRGSQ
PA BANKER
S
S
ERVICE
S
CORPORATIO
N
;E
]
RI;LMTTP
I
:MGI5VIWMHIRX'YWMRIWW)IZIPSTQIRX
(
717
)
255-6925
[[LMTTPI%TEFEROIVGS
LEARN M
O
RE AB
OU
T THE PR
OG
RA
M
L.R. WEBBE
R
'
V
EH
;
IFFIV
2
EVOIXMR
K
2ERE
K
IV
(
814
)
3
17-4186
F[IFFIV%PV[IFFIVGSQ
T
HE BENE
C
ON GROUP
(P
EYH
M
E
'
Y
V
G
L
W
X
IEH
S
e
ni
o
r S
a
l
es
Dir
ec
t
or
(
717
)
72
3
-4624
GFYVGLWXIEH%FIRIGSRGS
Q
PA Bankers Association » Quarter 4, 2019 3
20
BRINGING TIMELY NEWS AND INFORMATION
TO THE MEMBERSHIP OF THE PA BANKERS
thisISSUE
IN EVERY ISSUE
FEATURES
6 Chairman’s Insights
8 From the CEO to the CEO
10 Ten on Page 10
12 Community Corner
25 Government Relations
30 A Look Ahead
34 From Your Peers
38 Vendor Articles
18 BankWork$
Comes to Pittsburgh
19 Coming Soon:
PA Bankers' New Website
20 Next Generation
Bankers' Academy
22 Fall Group Meeting &
Recognition Reception
Honorees
12
PA Bankers Association » Quarter 4, 2019 1
BANK
K
ORK$
B
B
B
B
B
B
B
B
B
B
A
A
A
A
A
A
A
A
A
A
N
N
N
N
N
N
N
N
N
N
K
K
K
K
K
K
K
K
K
K
K
K
K
K
K
K
K
K
K
K
K
K
K
K
K
K
K
O
O
O
O
O
O
O
O
O
O
O
R
R
R
R
R
R
R
R
R
R
K
K
K
K
K
K
K
K
K
K
$
$
$
$
$
$
$
$
$
$
$
$
$
QUARTER 4 | VOLUME 21.4
Comes to Pittsburgh
ŏljƉ¤ƉB)Ɖb)ƉzzƉ
FXXƉU))zƉ¤jƉ
jbb))%Ɖ
FBƉzƉbU)~
SECOND-ANNUAL
b)¢Ɖ
:)b)~FjbƉƉ
bU)~Ɖ%)`¤
)`)~:Fb:Ɖ
X)%)~ƉƉ
Congratulations to the
PA Bankers H.Y.P.E. Award Winners
CONGRATULATIONS, FALL GROUP MEETING & RECOGNITION RECEPTION HONOREES!
Cgrulis
PHOTO CREDIT: ELAN MIZRAHI
FALL GROUP MEETING
& RECOGNITION
RECEPTION HONOREES!
BANKWORK$ COMES TO
PITTSBURGH
on the cover
22
4 » PA Bankers Association pabanker.com
C/A COMPLIANCE PRODUCTS BY TOOL TYPE
Calculators
Cheat Sheets
Checklists
Forms
Policy Tools
Procedures
Summaries
Risk Assessments
Training
Past Events
COMPLIANCE
AUDIT
BSA
RISK ASSESSMENT
ACCOUNTING
INFORMATION TECHNOLOGY
STAFF TRAINING
HUMAN RESOURCES
ADVERTISING / MARKETING
DEPOSIT OPERATIONS
LOAN OPERATIONS
COST CENTERSREVENUE CENTERSALL-INCLUSIVE PRODUCTS
PA Bankers Association » Quarter 4, 2019 5
zƉ°ĹĩåųŸƉSTAFF DIRECTORY
General Phone/Switchboard
(717) 255-6900
zųåŸĜÚåĹƋƉ»ƉĘĜåüƉ)ƻåÎƚƋĜƴåƉjþÎåų
J. Duncan Campbell III
dcampbell@pabanker.com | (717) 255-6916
)ƻƋåųĹ°ĬƉ~åĬ°ƋĜŅĹŸ
Amy L. Doyle, External Relations Administrative Assistant
adoyle@pabanker.com | (717) 255-6937
Erin L. Kanter, Director, Advocacy & Government Relations
ekanter@pabanker.com | (717) 255-6910
Daniel J. Reisteter, Vice President, Government Relations
dreisteter@pabanker.com | (717) 255-6933
8åÚåų°ĬƉ:ŅƴåųĹĵåĹƋƉ~åĬ°ƋĜŅĹŸƉ»Ɖ:åĹåų°ĬƉŅƚĹŸåĬ
Lisa R. Brandt, Legal Assistant
lbrandt@pabanker.com | (717) 255-6936
Louise A. Rynd, Esq., General Counsel
lrynd@pabanker.com | (717) 255-6935
8ĜĹ°ĹÎåƉ»ƉjŞåų°ƋĜŅĹŸ
Jill A. Ametrano, Registrar and Records Coordinator
jillametrano@pabanker.com | (717) 255-6927
Michelle L. Bosch, Receptionist and Administrative Assistant
mbosch@pabanker.com | (717) 255-6900
Connie A. Ferraro, Director, Information Technology
cferraro@pabanker.com | (717) 255-6921
Sara E. Hocker, Director of Marketing & Communications
shocker@pabanker.com | (717) 255-6912
Annette M. Moshgat, Director, Finance
amoshgat@pabanker.com | (717) 255-6938
Michelle L. Staton, Senior Vice President, Finance & Operations
mstaton@pabanker.com | (717) 255-6923
`åĵÅåųƉ~åĬ°ƋĜŅĹŸØƉzųŅü域ĜŅĹ°ĬƉ%åƴåĬŅŞĵåĹƋƉ»ƉzƉ°ĹĩåųŸƉåųƴĜÎåŸƉŅųŞŅų°ƋĜŅĹ
Jacqueline A. Catalano, Vice President, Professional Development
jcatalano@pabanker.com | (717) 255-6939
8MǺERM&(LEQFIVW Director, PA Bankers Services Corporation
tchambers@pabanker.com | (717) 255-6928
Karen J. McDermott, Director, Member Relations
kmcdermott@pabanker.com | (717) 255-6914
Linda A. Scott, Member Relations Administrative Assistant
lscott@pabanker.com | (717) 255-6903
Cynthia L. Wallett, Senior Vice President, Member Relations and Professional Development,
and Managing Director, PA Bankers Services Corporation
cwallett@pabanker.com | (717) 255-6913
Wayne R. Whipple, Vice President, Business Development
wwhipple@pabanker.com | (717) 255-6925
Marilyn M. Wisniewski, Director, Residential Schools & Meeting Operations
mwisniewski@pabanker.com | (717) 255-6934
ĵ°č°DŽĜĹåSTAFF
Managing Sara E. Hocker
Editor
Editorial J. Duncan Campbell III
Advisors Jacqueline A. Catalano
8MǺERM&(LEQFIVW
Daniel J. Reisteter
Louise A. Rynd
Michelle L. Staton
Cynthia L. Wallett
Wayne R. Whipple
zƉ°ĹĩåųŸƉåųƴĜÎåŸƉŅųŞŅų°ƋĜŅĹƉŅ°ųÚƉŅüƉ
%ĜųåÎƋŅųŸƉ°ĹÚƉjþÎåųŸ
President Steven G. Fisher
Secretary David P. Ruddock
Treasurer J. Duncan Campbell III
4ǽGIVW Maureen H. Bellman
John D. Blecher
Gerard A. Champi
Trudy K. Everhart
Richard L. Greslick
Karl F. Krebs
David E. Raven
Jennifer A. Poulsen
M. Theresa Schwartzer
/IǺVI]&XSTOS
ÚÚų域ƉŅųųåŸŞŅĹÚåĹÎåƉƋŅ×
paBanker Magazine
c/o Pennsylvania Bankers Association
3897 N. Front St., Harrisburg, PA 17110
Tel. (717) 255-6912
E-mail: shocker@pabanker.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
ǻRERGMEPMRWXMXYXMSRW[MXLIHYGEXMSREPTVSKVEQW
member services and represents members on
the state and federal level. Since 1895, PA Bankers
GSRXMRYSYWP][SVOIHXSFIXLITVIQMIVǻRERGMEP
WIVZMGIWSVKERM^EMSRWYTTSVXMRKEHMZIVWMǻIH
membership through volunteer participation, a
ORS[PIHKIEFPIWXEǺWXEXISJXLIEVXXIGLRSPSK]
and a commitment to excellence.
paBanker Magazine MWXLISǽGMEPTYFPMGEXMSRSJ
PA Bankers. Subscriptions are free to all member
institutions and PA Bankers volunteers. Additional
copies are available to members at a rate of $40
per year. Non-member subscriptions are available
for $60 per year.
)ÚĜƋŅųĜ°Ĭ
The opinions expressed in articles by authors
SXLIVXLER&WWSGMEXMSRWXEǺERHSǽGIVWEVI
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
2EKE^MRIWXEǺ6YIWXMSRWERHGSQQIRXWWLSYPH
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.
zŅŸƋĵ°ŸƋåųØƉŸåĹÚƉ°ĬĬƉ°ÚÚų域ƉÎĘ°ĹčåŸƉƋŅ×
paBanker Magazine
3897 N. Front St., Harrisburg, PA 17110
zųĜĹƋåÚƉÅƼ× HAAS Printing Co
ŞŅĹŸŅųåÚƉÅƼ×
6 » PA Bankers Association pabanker.com
he fourth quarter is business
planning season. Irrespective
of your process and the
elements in your plan, you
will have to “land the plane”
with a 2020 budget amid enumerable
external headwinds, tailwinds and
crosswinds. Good luck, and I know
you will navigate the path forward
beautifully. I thought I would share just
a few words of encouragement as we
all work through this mission-critical
annual process.
You give back to your
communities. I would encourage
you to make your investment of
dollars, leadership and time,
coupled with the number of
organizations you touch, “come
T
ƚŸĜĹ域Ɖ
zĬ°ĹĹĜĹčƉå°ŸŅĹ×Ɖ
Landing the 2020 Budget Plane
ţƉ`FB)XƉz~F)
President & CEO, First Commonwealth
Financial Corporation
alive” for your terrific employees,
directors of your bank and other
stakeholders within the context of
your business plan.
You care about “doing the right
thing” for your customers.
Highlight some examples for those
that are closest to your organization
within your plan.
You and your institutions matter
a great deal to your employees
as well as our neighbors and
businesses within our
communities. Day after day,
you and your institutions make
a tremendous difference with
entrepreneurs, small- and mid-size
businesses, first-time home buyers
and the everyday customer as you
listen and help them navigate their
financial future. This is important
stuff! Again, consider highlighting
the breadth of your impact (number
and dollar of loans, for example)
and specific customer success
stories within your plan.
It is vitally important that your
banks perform well. Community
banks offer an important alternative
to a range of capable competitors.
Without you, our communities
would look quite different.
Be transparent and honest about
what you do well and where you
need to improve. Such candor will
propel you and your leadership
teams meaningfully forward.
Oftentimes over a relatively short
period of time, your weaknesses
can become strengths, even your
digital banking evolution, as you
just get a little better every
single quarter.
Both myself and our terrific
association, PA Bankers, are pulling for
you. We would be particularly proud
to see PA banks objectively become
the best performing banks in the
country. Choicest blessings to you and
your families this holiday season.
ÎĘ°Ĝųĵ°ĹűŸINSIGHTS
PA Bankers Association » Quarter 4, 2019 7
Unlike other accounting or consulting firms that “work in banking,” S.R. Snodgrass works
only in banking, every day, every week of every month, for more than 70 years. In fact, no
other accounting and consulting firm has greater knowledge of the needs, challenges
and opportunities of today’s community banks than S.R. Snodgrass. If you think our
unique blend of unrivaled banking expertise and personalized service could benefit your
bank, please allow us to introduce ourselves. We’d be delighted to meet you.
www.srsnodgrass.com/banking
833-404-0344
No other accounting or consulting firm oers
more knowledge of community banks’ challenges
and opportunities than S.R. Snodgrass.
NO
OTHER
FIRM
8 » PA Bankers Association pabanker.com
s the calendar year closes,
I’d like to take some time
to reflect on some of the
successes of our members
and the association in 2019.
The association had another
wonderful year, full of many
accomplishments and “firsts. We
continued our effort to support our
strategic plan by strengthening our
workforce development, advocacy
and next-generation banker initiatives.
WORKFORCE DEVELOPMENT
We assisted in the expansion of the
BankWork$ program to another major
city in the commonwealth, Pittsburgh.
The first BankWork$ Pittsburgh class
graduated in late November, and you
can read more about the Pittsburgh
program on page 18. We look forward
to welcoming more classes in the
future.
NEXT-GENERATION BANKERS
We celebrated the immense
accomplishments of three of our
members in two different next-
generation banker competitions:
American Bankers Association’s
Lights, Camera, Save! Video
Competition: We acknowledged
ĘåƉåŸƋƉ
ĜŸƉ¤åƋƉƋŅƉŅĵåƉƉ
the Central Dauphin High School/
Centric Bank team, which won third
place in the national competition,
and the Line Mountain Jr./Sr. High
School/C&N team, which was a top
five finisher.
CSBS Community Bank Case
Study Competition: We celebrated
Kish Bank and Juniata College as
they brought home the national
championship for the CSBS
Community Bank Case Study
Competition for their case study on
the impact of regulatory reform on
community banks. Additionally, this
was a record year for Pennsylvania
as 15 teams, represented by 15
banks and 11 colleges/universities,
participated in the competition.
We are beyond proud of the
accomplishments of all three banks,
and we thank all participating financial
institutions for their support of these
competitions.
Additionally, this year we launched the
PA Bankers H.Y.P.E. Awards program,
which highlights young professionals
who are influential in their financial
institutions, the banking industry and
their communities. We acknowledged
seven winners for the inaugural year
of the program, and you can learn
more about those winners on pages
34-35. We look forward to honoring
individuals for this program each year.
The future of our industry is bright,
and we look forward to seeing the
impact that the next generation of
bankers has on our industry in years
to come.
ADVOCACY
As you may recall, at this time last
year, our board voted to elevate
advocacy within the association.
We have made tremendous strides
to encourage advocacy among our
members, giving you the tools you
need to strengthen your voice and
make an impact. This year alone,
we have created an Advocacy
Committee, which is populated
with representatives from other PA
Bankers committees; incorporated
advocacy into several of our
professional development events;
and worked to increase our advocacy
network through the annual
Washington Visit, ABA Washington
Summit, PA Bankers Day at the State
Capitol and policy engagement with
legislators. We thank you for your
continued support of this important
initiative.
üųŅĵƉƋĘåƉCEO to the CEO
%bbƉ`z)XX
President & CEO, PA Bankers Association
A
PA Bankers Association » Quarter 4, 2019 9
While 2019 was a successful year
for the association, we are already
hard at work to reach our goals and
continue our support of our strategic
plan in 2020.
HERE IS WHAT YOU CAN LOOK
FORWARD TO IN 2020:
New Website Launch: We are
excited to introduce our new
website in early 2020:
www.pabankers.com. The website
will have a new look and more tools
for our members to utilize.
Read more about the new website
on page 19.
New App Launch: The association
will also be launching a new
mobile app early next year.
This app will connect us with our
members like never before.
To learn more about the app,
visit our 10 on 10 on page 10.
PA Bankers’ 125th Anniversary:
We are looking forward to
celebrating the 125th anniversary
of our association and our first
annual convention, held on
Dec. 18, 1895. Get ready for a year
of celebration, service and
gratitude. We will update you in the
next edition with more information.
On behalf of the entire association,
thank you for your support and
dedication to our association and
industry over the last year.
Together, we are making a difference,
and I cannot wait to see what we do
in 2020!
y:
s
ary
t
year
u
in the
ma
tion.
at
ion,
d
and
Contact Dave Colonna
Phone 203.653.4100 x121
David.Colonna
@
BoxwoodMeans.com
®
EXPERIENCE SMALL-BALANCE CRE PROPERTY
VALUATION AS IT CAN BE
LESS COSTLY
FAST
ON-TIME
TRUSTWORTHY
FIXED FEES
COMPLIANT
VETERAN APPRAISERS
NATIONWIDE
CLIENT FOCUSED
trackable
thorough
ACCURATE
RESPONSIVE
TECH-INTENSIVE
AUTOMATED
FLEXIBLE
EFFICIENT
scalable
HANDS-ON
DATA-RICH
Be Convinced—Place Your Next Order with Boxwood Means
BOXWOODMEANS.COM/LENDERS
FieldSmart Evaluations
FieldSmart Restricted
Appraisals
COLLABORATIVE
10 » PA Bankers Association pabanker.com
10 Ways the New App Will Keep You
ŅĹĹåÎƋåÚƉƵĜƋĘƉzƉ°ĹĩåųŸ
ƋåĹONŞ°čåTEN
PA Bankers’ new app will keep you connected to PA Bankers
like never before. See how you can utilize the app below:
The app will be available for download in the app store for Android and Apple users.
We will send an update to all members when the app becomes available for download.
1
COMING
SOON!
o
w
y
o
u
c
a
n ut
i
l
iz
e
y
Register for events
at your fingertips.
2
Update your personal/
business information on the go.
3
Have all event details in
one place (i.e., handouts,
evaluations, speaker bios, etc.).
4
Access the updated
PA Bankers calendar
at all times.
5
Connect directly to the association’s
social channels and stay
up-to-date on association news.
6
Browse for products and
services for your institution.
Read paBanker magazine
on the go.
7
8
Access resources
designed for
PA Bankers' members.
Receive
"Instant Alerts"
to stay informed.
9
Advocate for
the industry
from any location.
1
0
SOMEONE IS MAKING MONEY
ON TITLE INSURANCE.
IT SHOULD BE YOU.
It’s like owning your own title insurance company, only better. PA Bankers Services Corporation – along with
Investors Title Insurance Company – will help you become part of a multi-bank owned title insurance agency
and share in the 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.
12 » PA Bankers Association pabanker.com
FNCB Bank Provides $7,000 Grant to Township Baseball
for the Purchase of a New Scoreboard
ÎŅĵĵƚĹĜƋƼCORNER
NCB Bank recently
supported its community
with a $7,000 grant used
to purchase a scoreboard
for Township Baseball Little
League in Jenkins Township. The new
scoreboard replaces one that stood
for many years at the field located at
2 May St. The scoreboard donation
represents part of FNCB's larger
Community Caring initiative. Through
outreach programs, donations and
an employee volunteer network,
FNCB is committed to helping the
communities they serve.
F
Susquehanna
Community Bank
Donates to
Loyalsock
Volunteer Fire
Department No. 1
Penn Community Bank Donates
$20,000 to Support Bucks County Economic
Self-Sufficiency Program
usquehanna Community
Bank donated $300 to
the Loyalsock Volunteer
Fire Company. Station
18, located at 715
Northway Road in Williamsport,
has been serving the community of
Loyalsock since 1925.
S
enn Community Bank
recently continued its
20-year effort to combat
generational poverty with a
donation of $20,000 to the
Bucks County Opportunity Council.
The funds supported the organization’s
Economic Self-Sufficiency Program,
which offers participants the education,
job training, life skills and coaching that
they need to break the cycle of poverty.
Launched in 1997, the Economic Self
Sufficiency Program has graduated
more than 300 people in Bucks
County, 9 out of 10 of whom are
women and 7 out of 10 of whom
have children. To complete the
program, which takes an average of
three years, graduates must meet
10 self-sufficiency benchmarks,
including having safe housing,
reliable transportation, health
insurance for every family member,
P
full employment and no reliance on
welfare subsidies.
Each year, Penn Community Bank
distributes up to 5 percent of its
net income through the Penn
Community Bank Foundation to local
organizations that focus on its four
priorities: supporting food security;
advocating for safe, affordable
housing; facilitating economic self-
sufficiency; and offering financial
literacy education that empowers
people of all ages to take charge of
their finances.
PA Bankers Association » Quarter 4, 2019 13
QNB Bank Raises Money for Local Library
NB Bank teamed up once
again this year with the
Lehigh Valley IronPigs
to help raise money for
local libraries through the
“Batting for Books” campaign. For
the past nine years, the Bank has
pledged to donate $25 for each
double hit by the IronPigs in their
home stadium at Coca-Cola Park
in Allentown. This season, the team
hit 130 doubles for a total Bank
contribution of $3,250. This year’s
proud recipient was the Allentown
Public Library. Since the program’s
MRGITXMSRMR63'LEWHSREXIH
$33,950 to local libraries.
Q
14 » PA Bankers Association pabanker.com
ÎŅĵĵƚĹĜƋƼCORNER
Do you have hometown happenings
that you'd like to share?
Send your bank's community news to Sara Hocker, PA Bankers'
director of marketing & communications (shocker@pabanker.com),
for a chance to be featured in paBanker magazine or on
PA Bankers' social media channels and website.
Mars Bank Step Forward Campaign
Raises Awareness Funds for Firefighter Scholarships
or the fourth year, Mars
Bank sponsored the Step
Forward Campaign, which
honors first responders,
active military and veterans.
Police, fire, emergency personnel and
military “Step Forward” when others
are backing away or turning to run.
Through this campaign, Mars Bank
honors their bravery and shares their
stories with the community.
FUND FOR FIREFIGHTERS
Each year the Step Forward Campaign
supports first responder and veteran
groups. For 2019, one fundraising
drive supported the Butler County
Community College (BC3) Education
Foundation’s Butler County Volunteer
F
Firefighter Fund. The Volunteer
Firefighter funds are available to assist
all Butler County Volunteer Firefighters
with the cost of the Fire Training
courses, the Firefighter Certification
and EMT classes. Firefighters who wish
to take the firefighter training courses
can apply to have their tuition paid by
the Foundation’s Firefighter Fund.
The bank promoted BC3’s training
program for firefighters and collected
donations for the scholarship fund
through Oct. 31, 2019.
PA Bankers Association » Quarter 4, 2019 15
New Tripoli Bank Dontates $100,000 to Northwestern
Lehigh Education Foundation
Orrstown Bank Teams up with Make-A-Wish
®
Philadelphia, Delaware
and Susquehanna Valley to Help Grant Wish to Local Child
ew Tripoli Bank donated
$100,000 to the
Northwestern Lehigh
Education Foundation as
a part of the Educational
Improvement Tax Credit program
of Pennsylvania. This donation will
be used to support educational
programs that might not otherwise
receive funding, giving students in the
Northwestern Lehigh School District
the tools and skills they need to thrive
in an increasingly digital-focused
world. The funds provided by this
donation will be utilized to modernize
the broadcasting equipment for
broadcasting education programs in
the high school and middle schools,
as well as continuing to add SMART
board technology to classrooms
throughout the district.
t a special event held in
October at the Harrisburg
Regional Offices of
Orrstown Bank, the bank,
in partnership with Make-
A-Wish® Philadelphia, Delaware
and Susquehanna Valley, granted
the wish of a local child living
with a neuromuscular disorder in
Central Pennsylvania. According
to the bank, “as part of our 100th
anniversary celebrations, we are
excited to make another wish come
true for an extraordinary young
man named Nikunj. Nikunj defines
what it means to persevere, be
strong and courageous, kind and
considerate, and to know how to
enjoy life no matter what obstacles
are placed in front of you. We are
N
A
honored and proud to partner with
Make-A-Wish
®
to grant Nikunj his
wish, which is sending him and his
family off to a fun-filled experience
at Walt Disney World in Florida.
Orrstown Bank contributed $7,500
to Make-A-Wish
®
in order to fund
the initiative.
16 » PA Bankers Association pabanker.com
ÎŅĵĵƚĹĜƋƼCORNER
Wayne Bank Joins Karen Corrigan’s Preschool and Child Care
Home to Support Wayne County Library
ayne Bank recently
joined with Karen
Corrigan’s Preschool
and Child Care
Home to support the
Wayne County Public Library.
Operated by Karen Corrigan and
Shannon Chakiris, the Preschool held its
annual Backyard Carnival fundraiser to
celebrate the end of its summer camp
program. School-age children worked
for days sorting out prizes and setting
up for the Carnival and were then joined
by former students of the program to
help with games, face painting and
other fun activities for the younger
children in the group. Carnival prizes
were donated by the families of current
and past students, as well as local
businesses and community supporters.
The children and their families also
collected coins as part of the fundraiser.
Combined with a contribution from
Wayne Bank, the Preschool was able
to present the Wayne County Public
Library with a $450 donation this year.
Karen Corrigan’s Preschool and Child
Care Home is a Star 2 site in the
Pennsylvania Keystone STARS Program
and has been in operation for 31 years.
W
Univest Financial Donates $25,000 to
Ronald McDonald House Charities
nivest Financial recently presented Ronald McDonald House Charities
(RMHC
®
) of the Philadelphia Region Inc. with a check for $25,000. The
donation represents the amount Univest has committed to RMHC
®
’s
“Room in Our Hearts” campaign over the next five years.
The fundraising campaign supports their current expansion at the Chestnut
Street House. Due to high demand and limited space, they have had to turn
away more than 5,000 families in need. The renovations, which began in 2017,
will more than double its lodging at this facility and provide a comfortable
space for families with seriously ill children.
U
PA Bankers Association » Quarter 4, 2019 17
NEW TO PA Bankers
Affiliate Members:
• ATM Solutions, Inc.
BKD CPAs & Advisors
Blue Orange Digital
Drinker Biddle & Reath LLP
Lesavoy Butz & Seitz LLC
YHB | CPAs & Consultants
Select Vendors:
The Benecon Group, Inc.
Financial Institution:
• Coatesville Savings Bank
Hatboro Federal Savings
Welcome
18 » PA Bankers Association pabanker.com
orking in communities of need and
with students who typically would not
be considered qualified candidates for
banking/financial services positions,
BankWork$ offers opportunities to succeed in well-paying
jobs that can lead to a lasting career in the banking industry.
Each eight-week class is designed to train entry-level bank
tellers, customer service representatives and personal
banker candidates and ultimately provide and connect those
candidates to local banks and financial institutions.
We have seen astounding success with the program in
Philadelphia, and we have made it our mission to bring the
program to other areas of the commonwealth, beginning
with Pittsburgh.
We are happy to announce that the first Pittsburgh
BankWork$ class began on Sept. 30, and 19 students
graduated from the program on Nov. 22.
Since Bankwork$ came to Pennsylvania in 2017, 154
students have graduated from the program, and 78% of
those graduates have been placed into a job within the
banking industry.
Thank you to all members who have supported and
continue to support the program in Pennsylvania. If
you are interested in learning more about how you can
become involved in the program, contact Michelle Staton,
mstaton@pabanker.com.
PA Bankers is proud to continue its support of the BankWork$ program.
bUj~Uâ
COMES TO PITTSBURGH
W
PHOTO CREDIT: ROBIN DENOMA
We are excited to announce that
we will be unveiling a brand-new
website in the new year.
Get ready for a fresh look and
a streamlined and cohesive
experience –
all on ONE website.
New features will include
searchable directories,
member-only content, new
navigation and advanced
technological capabilities.
We will share more
details as the launch
date approaches.
Coming
Sn:
PA BANKERS’
b)Ɖ)F)
Something’S been miSSing…
ȅIƶVISJJMGMEPP]EHHMRKERƸs to pabanker.com.
www.pabankers.com
FĹƌųŅÛƚÎĜĹčƉƶƶƶţޱűĹĩåųţÎŅĵ
20 » PA Bankers Association pabanker.com
n mid-August, PA Bankers joined
the Pennsylvania Association
of Community Bankers and the
Pennsylvania Department of
Banking and Securities in holding
the second-annual Next Generation
Bankers Academy. The academy
provides college students with an
up-close look at various careers within
XLIǻRERGMEPWIVZMGIWMRHYWXV]ERHER
opportunity to network with senior
FEROQEREKIQIRXSǽGMEPW
This year’s program took place in
Lancaster, where students received
in-person, hands-on training at
Ephrata National Bank, Bank of Bird-
in-Hand and Fulton Bank to learn
about topics such as marketing,
agricultural lending, the de novo
process, community and customer
engagement, mobile banking, retail
banking, trust and investments, human
resources and more.
Additionally, the students learned
about how to prepare for a role in the
banking industry and what happens
behind-the-scenes at a community
bank from the perspectives of next-
generation bankers, C-suite executives
and regulators. These additional topics
were covered by the following banks
and organizations: C&N, Orrstown Bank,
Mid Penn Bank, Riverview Bank, The
0EJEǻER,VSYT''8/'8+PIIX[SSH
Bank, Univest Financial Corporation,
The Victory Bank, Mosteller &
Associates, Federal Reserve Bank
of Philadelphia and Pennsylvania
Department of Banking and Securities.
We enjoyed getting to know the future
leaders of Pennsylvania’s economy,
and we thank all members who
participated and made this program so
successful.
ƉƉƉbåƻƋƉ
:åĹåų°ƋĜŅĹ
Bankers
Academy
I
PA Bankers Association » Quarter 3, 2019 21
22 » PA Bankers Association pabanker.com
8XXƉ:~jzƉ`))Fb:Ɖ»Ɖ
~)j:bFFjbƉ~))zFjbƉBjbj~))ú
At our annual Fall Group Meetings & Recognition Receptions,
PA Bankers honored multiple members and individuals in the banking industry
for their support of the association, the industry and their communities.
HONOREES INCLUDED:
:~jzƉŎ

% University of Pittsburgh at Johnstown/1ST SUMMIT BANK
% University of Pittsburgh at Johnstown/Somerset Trust Company
ÎĘŅŅĬŸƉBŅĹŅųŸƉƋƚÚåĹƋŸ
% Amber Hancharick – Northwest Bank (Honors –
Advanced School of Banking)
% Benjamin Danley – AmeriServ Financial Bank
(Top Honors – School of Commercial Lending)
% Brandon Foley – Dollar Bank, A Federal Savings Bank
(Honors – Advanced School of Banking)
% Christina Avenali – Northwest Bank (Dr. Philip O. Benham, Jr.
Leadership Award – Advanced School of Banking)
% Katie Card – Northwest Bank (Honors –
Advanced School of Banking)
% Kristin Koch – Northwest Bank (Honors – School of Banking)
% Laura Austin – Washington Financial Bank (Honors –
School of Commercial Lending)
ĉLjě¤å°ųƉĬƚÅ
% Barbara R. Calizzi, Apollo Trust Company – 43
% Carol Vigliotti-Dixon, First Commonwealth Bank - 41
% Carolyn Bash, Apollo Trust Company – 40
% Cindy Barber, First Commonwealth Bank – 40
% Kathleen Collins, First Commonwealth Bank – 41
% Mikey Boyer, First Commonwealth Bank – 46
% Sharon Twaddle, First Commonwealth Bank – 45
% Susan Kushnereit, NexTier Bank – 40
% Suzanne Johnson, First Commonwealth Bank – 42
% Terry Jones, Apollo Trust Company – 40
% Vicki Fox, First Commonwealth Bank – 41
ĂLjě¤å°ųƉĬƚÅ
% Suzanne Parks, First Commonwealth Bank – 50
:~jzƉƖ

% Cabrini University/Hyperion Bank
% Immaculata University/First Resource Bank
% Kutztown University/New Tripoli Bank (2nd Place in Pennsylvania)
% 2YLPIRFIVK(SPPIKI63''ERO
% Temple University/Penn Community Bank
% Ursinis College/The Victory Bank
Ę°ųƋåųƉĹĹĜƴåųŸ°ųĜåŸ
% Asian Bank – 20th
:~jzƉƐ
ĉLjě¤å°ųƉĬƚÅ
% Donna Keefer, First Keystone Community Bank – 41
% Gregory Gula, The Honesdale National Bank – 40
% Kevin Krieger, First Keystone Community Bank – 40
% Lori A. Roth, Community Bank – 40
% Mary Ann Siegel, First Keystone Community Bank – 40
% Marian Puzycki, Fidelity Bank - 40
% Richard Simmers, The Honesdale National Bank – 40
% Steve Stranburg, Community Bank – 40
% Vincent O’Bell, Wayne Bank – 40
ĂLjě¤å°ųƉĬƚÅ
% John P. Burlein, The Honesdale National Bank – 50
Cgrulis
Cgrulis
PA Bankers Association » Quarter 4, 2019 23 PA Bankers Association »
Q
uarter
4,
201
9
2
3
24 » PA Bankers Association pabanker.com
ĉLjě¤å°ųƉĬƚÅ
% Andree V. Dennis, ACNB Bank – 44
% Barbara L. Cookerly, ACNB Bank – 40
% Cindy Wetzel, Mid Penn Bank - 40
% Deborah A. Geib, Fulton Financial Corporation – 40
% E. Phillip Wenger, Fulton Financial Corporation – 40
% John E. Kashner, ACNB Bank - 46
% Linda A. Sanders, ACNB Bank – 40
% Lois Phillips, ACNB Bank – 40
% Michael Rittase, ACNB Bank – 41
% Michelle Paulnock, ACNB Bank – 42
% Susan M. Wisniewski, Fulton Financial Corporation – 40
% Tina McCurdy, Kish Bank – 40
% Trudie Centini, Fulton Financial Corporation - 40
:~jzƉƅ

% Juniata College/Kish Bank (1st Place in Pennsylvania and
National Champions)
ÎĘŅŅĬŸƉBŅĹŅųŸƉƋƚÚåĹƋŸ
% Jocelyn Sauter – 1ST SUMMIT BANK
(Top Honors – School of Banking)
ĉLjě¤å°ųƉĬƚÅ
% Barb Doutt, First Commonwealth Bank – 41
% Bob Peak, First Commonwealth Bank – 45
% Bruce A. Mabon, AmeriServ Financial Bank – 46
% Cathy Ellis, First Commonwealth Bank – 43
% Christine Fisher, First Commonwealth Bank – 43
% Christine Rohde, 1ST SUMMIT BANK – 40
% Deborah Madison, First Commonwealth Bank – 42
% Denny Jones, First Commonwealth Bank – 44
% Ellen Buterbaugh, First Commonwealth Bank – 40
% Gayle Volpe, First Commonwealth Bank – 40
% Jim Boyle, First Commonwealth Bank – 45
% Joanette Corle, Hometown Bank of PA – 40
% John Heise, First Commonwealth Bank – 45
% Kathleen Burkett, 1ST SUMMIT BANK – 40
% Kathleen Kriedler, First Commonwealth Bank – 42
% Lori Cable, First Commonwealth Bank – 42
% Mark Lopushansky, First Commonwealth Bank – 42
% Pamela Batzel, First Commonwealth Bank – 41
% Rick Steer, First Commonwealth Bank – 42
% Sara Felton, Hometown Bank of PA – 42
% Sherry Carney, First Commonwealth Bank – 40
% Shirley Musselman, First Commonwealth Bank – 45
% Susan Stiteler, First Commonwealth Bank – 49
% Terry Lingenfelter, First Commonwealth Bank – 41
% Wendy Reynolds, First Commonwealth Bank – 44
ĂLjě¤å°ųƉĬƚÅ
% Diane Kaspick, First Commonwealth Bank – 50
% Gary Platt, First Commonwealth Bank – 52
Ę°ųƋåųƉĹĹĜƴåųŸ°ųĜåŸ
% 1ST SUMMIT BANK – 95th
jb:~XFjbƉjƉXXƉBjbj~))ţ
Ę°ĹĩƉƼŅƚƉüŅųƉ°ĬĬƉƋĘ°ƋƉƼŅƚƉÚŅƉüŅųƉƼŅƚųƉĜĹŸƋĜƋƚƋĜŅĹØƉ
ÎŅĵĵƚĹĜƋƼƉ°ĹÚƉƋĘåƉÅ°ĹĩĜĹčƉĜĹÚƚŸƋųƼţ
:~jzƉĉ

% Bloomsburg University/Mid Penn Bank
% Mansfield University of Pennsylvania/C&N
ÎĘŅŅĬŸƉBŅĹŅųŸƉƋƚÚåĹƋŸ
% Kyle Mumper – Woodlands Bank
(Honors – School of Banking)
ĉLjě¤å°ųƉĬƚÅ
% Courtney Cole, C&N – 41
% Debra Martin, First Commonwealth Bank - 42
% Diane Egly, C&N – 41
% Diane L. Elliott, Fulton Bank – 40
% Halle Niklaus, C&N – 42
% Joan Grenell, C&N - 40
% Joan Russell, First Commonwealth Bank – 45
% Nola Gross, C&N – 44
% Pamela Young, First Commonwealth Bank – 42
% Sandra Hughes, First Commonwealth Bank – 41
:~jzƉĂ

% York College/Fulton Bank
% York College/York Traditions Bank (3rd Place in Pennsylvania)
ÎĘŅŅĬŸƉBŅĹŅųŸƉƋƚÚåĹƋŸ
% Garen Jenco – Kish Bank (Honors – School of Banking)
% Michael Jaeger – Orrstown Bank (Honors –
Advanced School of Banking)
PA Bankers Association » Quarter 4, 2019 25
čŅƴåųĹĵåĹƋRELATIONS
DELAWARE | NEW JERSEY | OHIO | PENNSYLVANIA | WEST VIRGINIA | BURNSWHITE.COM
Commercial, class action
and complex litigation
• Bankruptcy and
creditors’ rights claims
• Loan facilities
• Business transactions
and real estate deals
Legal Solutions for Pennsylvania Bankers
%åĹĜĵƉƼ
for PaBPAC
State
n Nov. 1, bankers
throughout Pennsylvania
participated in the
annual PaBPAC State
Denim Day. Together,
ǻZIFEROWEPSRK[MXL5&'EROIVW
WXEǺVEMWIHJSV5E'5&(
State. This year, the following banks
participated in the PaBPAC State
Denim Day: C&N, CNB Bank, Kish
Bank, PS Bank and The Dime Bank.
Thank you to all participating banks!
O
26 » PA Bankers Association pabanker.com
čŅƴåųĹĵåĹƋRELATIONS
he American Bankers Association (ABA) recently
introduced a new grassroots platform, Secure American
Opportunity (www.SecureAmericanOpportunity.com)
to facilitate individual engagement on the issues that
QEXXIVXSXLIǻRERGMEPWIVZMGIMRHYWXV]ERHXLIIGSRSQ]
as a whole. This new platform is part of ABA’s overall commitment
to increase its political footprint, complementing its mission of
serving as the united voice of America’s banks of all sizes and
their employees. ABA has a strong history of engaging bankers
in grassroots and grasstops advocacy, in partnership with state
bankers associations like PA Bankers, and this new grassroots
TPEXJSVQMWEVIRI[IHERHI\TERHIHIǺSVXF]&'&XSIRKEKI
everyone – from bankers and employees to customers and
GSRWYQIVWƳMRXLIMWWYIWXLEXEǺIGXSYVIGSRSQ]
Secure American Opportunity, a project of ABA, is based on
the premise that a strong financial industry helps to make
a strong economy, and everyone has an interest and plays
a role in keeping our economy strong. With the Secure
American Opportunity website, ABA seeks to amplify the
voices of America’s bankers and also engage customers
and consumers who have interest in the policies affecting
our economy. It’s an action-focused website geared toward
helping individuals to quickly understand the issues and
take action. The website is complementary to ABA.com,
providing a specific, tailored online presence for grassroots
and grasstops engagement.
AMONG THE FEATURES OF THE SITE INCLUDE:
Tools to help you make your voice heard – whether it
be writing letters to Congress, commenting on regulatory
proposals, or sharing stories of what banks are doing for
communities and customers across the nation;
Short, easy-to-understand summaries of the policy
issues affecting banks and our economy, designed to
quickly educate on the issues and motivate to take action;
Tools and resources to help bankers encourage their
peers and employees to participate in grassroots activity;
Stories and highlights of what ABA, banks and state
associations are doing;
And, during election years, election information to help
users find their polling location and know when
elections occur.
HOW CAN YOU GET INVOLVED?
• Check out www.SecureAmericanOpportunity.com to
learn about the issues affecting the banking industry and
our economy
Respond to calls-to-action that you receive from Secure
American Opportunity and PA Bankers Association
Share the website or an email with your peers and
employees
Ask your IT department to add
SecureAmericanOpportunity.com to your safe
senders list, so that you can easily access the
website and receive emails
As bankers, you know just how critical your voice can
be in having a say on the policies and procedures that
government creates. Secure American Opportunity is a
chance to do just that.
T
ĵåųĜΰĹƉ°ĹĩåųŸƉŸŸŅÎĜ°ƋĜŅĹ
Introduces New Grassroots Platform
jƉB)ƉBj~×Ɖ
AMERICAN BANKERS ASSOCIATION
PA Bankers Association » Quarter 4, 2019 27
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
OLUTIONS
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
WHICH CAME FIRST
IS ALL A MATTER OF PERSPECTIVE.
No matter which side of the argument, Pillar+Aught knows how to consider all perspectives
to best protect and advance your interests. Keen insight, extreme responsiveness, and deep
expertise explain how Pillar+Aught has raised the bar. Learn how we can impact your business
and how we've transformed the legal services experience.
pillaraught.com
28 » PA Bankers Association pabanker.com
čŅƴåųĹĵåĹƋRELATIONS
ŞÚ°ƋåŸƉŅĹƉzƉ°ĹĩåųŸűƉ
Ƌ°ƋåƉXåčĜŸĬ°ƋĜƴåƉzųĜŅųĜƋĜåŸ
» Sales Tax Treatment of Canned Software Utilized in Conducting Bank Transactions
On Nov. 27, 2019, the governor signed House Bill 17, Printer's No. 2900 into law as Act 90 of 2019. This act contains
compromise amendments to provide an exclusion from sales and use tax for the sale at retail or use by a financial
institution of canned computer software directly utilized in conducting the business of banking. Also included in
this legislation is a requirement that financial institutions match their records no more than quarterly against
machine-readable reports the Pa. Department of Revenue will provide containing delinquent state tax obligors'
identifying information.
» Elder Financial Abuse Prevention
PA Bankers will continue to advocate for enactment of amendments to the Older Adult Protective Services Act
that will provide financial institutions with additional means to address situations where elder financial abuse
appears to be occurring. This includes providing financial institutions with the authority to suspend a transaction
for a period of time in order to provide a local Area Agency on Aging the time needed to undertake an investigation
and increased information-sharing between an agency and a financial institution on the status of an investigation.
Senator Bob Mensch (R-Berks, Bucks, Montgomery) reintroduced the legislation in the Senate as Senate Bill 819
on Aug. 7, and the bill was voted out of the Senate Aging and Youth Committee on Sept. 23.
The House version of the legislation was reintroduced as House Bill 1930 by Representative Tim Hennessey
(R-Chester, Montgomery) on Oct. 15.
» Data Breach Legislation
PA Bankers opposes legislation to amend the Breach of Personal Information Act that would provide a private right
of action to individuals when a security breach has occurred. A number of data breach and privacy bills have been
introduced thus far in the current legislative session.
PA Bankers Association » Quarter 4, 2019 29
» Directed Trusteeship & Trust Termination Proposals
PA Bankers is working with representatives of the Joint State Government Commission’s (JSGC) Decedents’ Estates
Advisory Committee (DEAC), which developed directed trusteeship legislation that differs from the Uniform Laws
Commission’s version. Directed trusteeship allows certain activities to be assigned to a person other than the
trustee(s) and relieves the trustee(s) of liability for the actions of the trust director. Most states have bare-bones
authority, so specific legislation would provide better authority. PA Bankers is also seeking enactment of
non-judicial trust termination provisions.
» Unclaimed Property Administration
The association is seeking changes to PA’s Unclaimed Property Law to clarify treatment of tax deferred accounts
and modernize the statute. Our requested amendments would clarify that:
1 IRAs will not be presumed abandoned before their mandatory distribution date;
2) Securities and other securities entitlements are not abandoned unless mail to their owners is returned
undelivered;
3) The rule peculiar to PA and its financial institutions, which allows parties to claim escheated property from
the institution which then must seek reimbursement from Treasury, would be repealed; and
4) Securities distributions paid into an active account are not presumed abandoned.
The association is also seeking an exemption from the law for rewards programs.
PA Bankers met in June with staff of the PA Treasury Department. Before any further discussions are held, the
Treasurer’s staff has requested PA Bankers provide for its consideration a statutory holder due diligence
standard, such as a requirement that holders search the Social Security Administration’s Death Master File (DMF).
PA Bankers Unclaimed Property Working Group will be meeting to further discuss this issue.
» The Banking Fund
The Banking Fund is comprised of monies received from fees, assessments, charges and penalties collected
or recovered from persons, firms, corporations or associations under the supervision of the PA Department of
Banking and Securities. 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 of
Banking and Securities in the event of a seizure or liquidation of a financial institution, association or credit union.
Via the Governor's Budget Document published on Feb. 5, 2019, PA Bankers learned that a transfer of $21 million
from the Banking Fund had been made to the General Fund citing the authority granted by the legislature in
Act 44 of 2017. We learned from the DoBS on Nov. 13, 2019, that per language in Act 20 of 2019 another $21 million
is slated for transfer from the Banking Fund to augment the operations of the Pa. Department of Environmental
Protection or the Pa. Department of Conservation and Natural Resources.
Our Government Relations Policy Committee is directing our response on this issue.
» PA Bankers Files Comment Letter on PA Office of Attorney General Anti-Trust Proposal
On Sept. 30, 2019, PA Bankers submitted its comment letter on the PA Attorney General's proposed regulation that
interprets the PA Unfair Trade Protection and Consumer Protection Law's "catch-all" clause within the definition of
the term "unfair methods of competition and unfair or deceptive acts or practices" to include (1) unfair market trade
practices; (2) unfair conduct; and (3) deceptive conduct. Our letter explains why each of these terms is inconsistent
with the law and their insertion via regulation is not in the interest of good public policy. We also pointed out the
limitations on the PA Attorney General's authority over financial institutions.
30 » PA Bankers Association pabanker.com
° °Ęå°Úlook
MAY
13-16
PA BANKERS 2020 CONVENTION
Fairmont Southampton, Southampton, Bermuda
:åĹåų°ĬƉƉŸŸŅÎĜ°ƋĜŅĹ
ŅĵŞĬĜ°ĹÎåØƉ~åčƚĬ°ƋŅųƼƉ»Ɖ~ĜŸĩƉ`°Ĺ°čåĵåĹƋ
MARCH
24-26
As you plan your training and development for 2019-2020, 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.pabanker.com for more information and pricing details about each event.
Please note: all dates and locations are subject to change.
SCHOOL OF COMPLIANCE
PA Bankers Training Room
Harrisburg, Pa.
PA Bankers Association » Quarter 4, 2019 31
° °Ęå°Úlook
båƋƵŅųĩŸ
MARCH
11-12
WOMEN IN BANKING
CONFERENCE
Hershey Lodge & Convention Center • Hershey, Pa.
XåĹÚĜĹčƉ»ƉųåÚĜƋ
MAY 12-13 MAY 19-20
TRAINING THE CREDIT
ANALYST SEMINAR
PA Bankers Training Room,
Harrisburg, Pa.
SCHOOL OF
CONSUMER LENDING
PA Bankers Training Room,
Harrisburg, Pa.
APRIL
22
AGRICULTURAL
BANKERS
CONFERENCE
Nittany Lion Inn, State College, Pa.
JUNE
14-18
SCHOOL OF
COMMERCIAL LENDING
The Penn Stater Conference Center,
State College, Pa.
32 » PA Bankers Association pabanker.com
° °Ęå°Úlook
JUNE
25
APRIL
28-29
DIRECTORS INSTITUTE
Hershey Country Club
Hershey, Pa.
TREASURY MANAGEMENT
SEMINAR
PA Bankers Training Room
Harrisburg, Pa.
:åĹåų°ĬƉ°ĹĩĜĹčƉų°ĜĹĜĹč
FEB.
25
JULY
26-31
ADVANCED SCHOOL
OF BANKING
The Penn Stater
Conference Center,
State College, Pa.
ECONOMIC FORECAST AND BUSINESS
LEADERSHIP SUMMIT
Sheraton Harrisburg Hershey Hotel,
Harrisburg, Pa.
JUNE
14-18
SCHOOL OF BANKING
The Penn Stater
Conference Center,
State College, Pa.
FEB.
6
CALL REPORT
PREPARATION -
AN UPDATE SEMINAR
TBD
Harrisburg, Pa:
Jan. 22, March 17 and May 5
Cranberry Township, Pa.:
Jan. 23, March 19 and May 7
E
CO
N
Harrisburg, Pa.:
Session #1: Feb. 19-20 | Session #2: April 1-2
Cranberry Township, Pa.:
Session #1: Sept. 9-10 | Session #2: Oct. 28-29
BRANCH MANAGER BOOTCAMP SUPERVISORY TRAINING SERIES
Succeed With Condence • www.fosaudit.com • www.herbein.com
Addressing Your Bank’s Needs
FOS SERVICES
• Internal Audit/Co-sourcing
• Asset Liability and Liquidity Management Exams
• Bank Secrecy Act & Anti-Money Laundering Exams
• Information Technology & Risk Management Exams
• Fraud Exams
• Compliance Exams
• Sarbanes-Oxley Testing
Trust Department Exams
Transactional Asset Allocation Analysis
HERBEIN SERVICES
• Business Valuations
• Litigation Support Services
• Asset Based Field Exams
• Mergers and Acquisitions
• Audit of Financial Statements
Tax
CONTACTS
James A. Michalak, CPA, CITP
Thomas R. Strause, CIA, CFE, CBA, CFSA, CISA, CICA
Debbi S. Fetter, CFIRS, CISA, CFSA, CRMA, CRCM, CCSA
1-888-212-8799
A subsidiary of Herbein + Company, Inc.
The Stability You Want
should come with the service you deserve
34 » PA Bankers Association pabanker.com
n September, PA Bankers hosted
its fourth annual Emerging
Leaders Conference, unveiling
the new PA Bankers Highlighting
Young Professionals’ Excellence (H.Y.P.E.)
Awards program, sponsored by Crowe.
The PA Bankers H.Y.P.E. Awards program
highlights the accomplishments of six
young banking professionals (aged 40
years or younger) for excellence within
their financial institutions, the banking
industry and their communities.
Individuals from many banks across
the commonwealth were nominated
for six different award categories in
the inaugural program, and winners
included:
Achiever: This award celebrates a
professional who produces work
more effectively than their peers,
is considered a subject-matter
expert, and knows how to attain
results by their own accord and
through others.
Winner: There was a tie for this
award between John Lombardo,
Business Intelligence Analyst,
Northwest Bank; and Louis
Palumbo, CISA, CISM, CISSP,
Senior Vice President, Chief
Information Officer, NexTier Bank.
Change Agent: This award
recognizes a professional who is
likely to initiate new ways of doing
things and is a proponent of taking
risks to further the organization.
Winner: Heather Sargent,
Public Relations and
Communications Coordinator,
First Citizens Community Bank
Community Ambassador:
This award is given to a professional
who is interwoven and involved in
their community through nonprofit
and philanthropic initiatives.
Winner: Nicole M. Boytin,
Vice President, Commercial
Lending, Penn Community Bank
I
)ĵåųčĜĹčƉXå°ÚåųŸƉbåƋƵŅųĩƉUpdate
to the PA Bankers H.Y.P.E. Award Winners
HEATHER SARGENT NICOLE BOYTINJOHN LOMBARDO
LOU PALUMBO
üųŅĵƉƼŅƚųPEERS
Cgrulis
JONATHAN LITTLEWOOD TERESA STERNERSTEFANIE TODD
TO ALL
WINNERS!
C
grulis
PA Bankers Association » Quarter 4, 2019 35
Congratulations to K.
Bernard Tynes, director
of marketing strategy
& data analytics, Penn
Community Bank, and chair
of the PA Bankers Emerging Leaders
Committee, who has been named
among Philadelphia’s Most Influential
African Americans by The Philadelphia
Tribune, the oldest continuously
published African American newspaper
in the United States.
Bernard was recognized as one of 10
African Americans under the age of 40
to watch by the Tribune, and he was
honored at the Tribune’s annual awards
ceremony and event on Sept. 19 at the
Philadelphia Convention Center.
In his roles at Penn Community Bank,
Bernard has championed innovation
throughout various departments. He
spearheaded the development and
launch of Workplace Connections, a
free bank-at-work program serving
area employers and their employees,
and was integral in launching multiple
financial products built to meet the
needs of young people. Now, as
leader of the marketing team, Bernard
has undertaken a company-wide
data initiative and focused all lines
of business on developing strategies
based on data analytics.
Congratulations, Bernard, and thank
you for all that you do to support our
industry and our association!
K. BERNARD TYNES
Chair of the )ĵåųčĜĹčƉXå°ÚåųŸƉŅĵĵĜƋƋåå
Recognized Among 10 Young African American
Leaders to Watch in Philadelphia
C
Developer: This award recognizes a
professional who has a natural
knack for building talent and wants
to see others succeed and grow to
their fullest potential.
Winner: Stefanie Todd, Vice
President, Loan Operations
Manager, Mars Bank
Strategic Thinker: This award
celebrates a professional who is a
forward thinker, shows business
acumen, and has a good
understanding of the market and
industry in which their organization
operates.
Winner: Jonathan Littlewood,
Vice President, Commercial
Services Officer, First Keystone
Community Bank
Team Player: This award recognizes
a professional who is collaborative
and a good communicator.
The winner consistently seeks
others’ input and opinions and uses
it to shape their ideas and
generate consensus.
Winner: Teresa Sterner, Sales and
Marketing Coordinator, First
Keystone Community Bank
Along with the awards program,
the Emerging Leaders Conference
focused on several hot topics,
including advocacy, professionalism,
executive presence, power
connecting and marketing, and
featured presentations from Chris
Bender, vice president, Public Affairs
Council; Jonna Martin, president,
AdvanceMe Associates; and Dave
DeFazio, partner, StrategyCorps.
The conference was supported by
the generosity of two sponsors,
FHLBank Pittsburgh and The
Bonadio Group, while the PA
Bankers H.Y.P.E. Awards program was
sponsored by Crowe.
36 » PA Bankers Association pabanker.com
üųŅĵƉƼŅƚųPEERS
FåĵŸƉŅüƉFĹƋåųåŸƋ×
News from the PA Bankers IT Committee
his is truly an exciting
time to be in banking for
technology professionals
with expertise in any kind
of technology! People
expect a different banking and
financial experience than they have
in the past. Retail and social media
organizations, such as Amazon and
Facebook, and fintech companies are
delivering that experience.
The concept of digital banking has fast
become a reality and is an area that T.
Michael Price, president and CEO of First
Commonwealth Financial Corporation
and chair of the PA Bankers Association,
is bringing to the forefront for the
association. For anyone with expertise in
designing and developing user interfaces,
big data analytics, process automation,
artificial intelligence, technology
integration or cyber security, just to name
a few, the banking industry provides
many new and dynamic challenges.
Along with these digital banking
solutions, we must ensure we are
delivering a safe experience to the
public. Cybersecurity needs to be
an integral part of developing and
integrating every component of
these technologies. Processes must
be redefined, not only to support
the digital banking needs of the
public, but to improve detection of
fraudulent activity. It is not doubtful
that behavioral modeling and
predictive analytics will continue to
become mainstream tools to identify
anomalous activity and, ultimately,
prevent fraud related to cybercrime.
As we strategically market digital
banking capabilities to the public,
we must also provide education on
how they can protect themselves
from cybercrime, including social
engineering. A robust cybersecurity
employee training program is
essential to run parallel with the digital
banking training of our systems and
internal processes.
Many of these foundational elements
were discussed at the association’s
2019 Digital Banking Conference
(formerly the Technology Conference)
held in Harrisburg, Pa. in November.
Ben Cox, vice president for Fusion 92,
shared the candid expectations of
Gen Y & Z and how their definition of
financial wellness significantly differs
from the Baby Boomer generation.
Additionally, a panel of bankers
shared information about timely digital
banking topics, including John Gill,
chief operating officer of Somerset
Trust Company, who discussed
National Fintech Day; Brook McGinnis,
SVP and senior product group
manager – digital banking & payments
of First Commonwealth Bank, who
shared digital banking challenges that
small-to-midsized banks are having
and tools that First Commonwealth
developed to compete; and Zach
Lloyd, SVP and IT business services
director of Fulton Financial Corporation,
who provided insights to the changing
technology and services to customers.
One of our key challenges is the
seamless and secure integration of
fintech offerings with our traditional
core systems. Christopher McClinton,
chief marketing officer of Finxact, gave
an update on their new generation
core system development and
offering, and Ron Plesco, principal
at KPMG, provided a global view of
faster payments and evolving payment
trends. Ron also gave an update on
emerging threats in cybersecurity.
Contracting with these technology
companies can be an onerous task,
particularly with the core providers.
Niel Devasir, senior director of
Cornerstone, discussed how to build
contract negotiation roadmap.
Prior to the conference, on Nov. 12,
about two-thirds of the conference
attendees participated in a digital
banking forum to share their feedback
on the PA Bankers Digital Strategy
Statement template. Several breakout
sessions were created, and the group
addressed 12 critical components of
the digital banking ecosystem. Topics
ranged from customer experience, to
process automation, to cybersecurity.
Thank you to all the banks who
participated in this forum and for
providing a wealth of information for the
association to develop the template.
As exciting as it is to be in the early, and
rapidly accelerating, evolution of digital
banking, it is a challenging task for banks
of all sizes, particularly for small and
midsized community banks. We are
fortunate that the association recognizes
this and is working with banks and other
business and organizations to provide
the resources needed to ensure our
relevance well into the future.
jƉB)ƉBj~:
MICHAEL MCGRAW
SENIOR VICE PRESIDENT, INFORMATION TECHNOLOGY, MARS BANK
CHAIR, PA BANKERS IT COMMITTEE
T
PA Bankers Association » Quarter 4, 2019 37
he PA Bankers Champions Program’s goal is to connect resources and people so that each member institution
can maximize the value of its membership and the association can deepen member engagement to achieve
greater sustainability. Each member bank is encouraged to identify one or more individuals in their institution to
both disseminate information to all levels of the organization from the association and act as a spokesperson
for the institution to the association to ensure regular two-way communication between the two entities.
SUMMARY OF RECENT PA BANKERS CHAMPIONS MEETINGS
Prior to each Fall Group Meeting & Recognition Reception, PA Bankers Champions met to discuss how the association can
best support our member banks. The association shared its strategic initiatives to enhance industry image, identify the
next-generation banker and deepen member engagement through financial literacy resources, workforce development
programs and member activity tracking. Association staff also discussed new professional development opportunities
that were developed as a result of the spring PA Bankers Champions meetings. Lastly, there was discussion around how
the association can best communicate with the PA Bankers Champions moving forward.
T
update
p
ŅĵåĹƉĜĹƉ°ĹĩĜĹčƉbåƋƵŅųĩƉUpdate
rior to Group 1's Fall Group Meeting & Recognition Reception, women had the opportunity to have an
interactive lunch & learn session with Dr. Jocelyn Horner, co-president and Pittsburgh executive director for
Strong Women, Strong Girls. During the session, Dr. Horner explored how women throughout U.S. history have
navigated the unique challenges of female leadership to advance and achieve change in the social, political
and business worlds. In particular, she shared the life stories of a diverse group of American women leaders -
both well-known and unsung. Through the legacies of these real-life role models, she uncovered traits and mindsets that
have united female trailblazers in their efforts to change the world. She also discussed how these iconic female leaders
addressed and overcame obstacles and opposition to their leadership, looking deeper into the innate characteristics and
learned skills that led to their success. Thank you to all who attended!
P
38 » PA Bankers Association pabanker.com
s customer expectations, technology, and
competition continue to evolve, banks and
other financial services organizations are
searching for new ways to deliver products and
services more cost-effectively – and with the
same or higher levels of customer service.
MAJOR DRIVERS OF CHANGE IN BANKING TODAY
The pace of change in the financial services industry is
continuing to accelerate. The forces driving these changes
are many and diverse, but it can be helpful to think of them
in four major categories:
1. Changing customer expectations. As consumers
become accustomed to having 24/7 account access and
simplified retail and business interactions, customer
habits and behaviors are shifting away from traditional
methods of using their banks’ services and venues. This
shift has been accompanied by customers’ increasing
comfort levels with self-service online information
searches, financial transactions and problem resolution.
2. New technology. New technologies – such as mobile
payments, mobile check capture, mobile account
notifications, and electronic signatures and receipts
– are creating opportunities for enhanced customer
experiences. Beyond customer-facing solutions,
technology is making equally rapid advances in areas
such as workflow automation, document automation,
blockchain ledgers, solution integration and advanced
artificial intelligence.
3. Talent, training and staffing challenges. Changes
in bank employees’ career expectations and personal
preferences are affecting how banks attract and retain
talent. As baby boomers retire, the new generations
of employees entering the workforce have different
employment expectations, might lack an understanding
of traditional banking, are not interested in outdated
operating practices, and are looking for career mobility.
4. Competitive pressures. Innovation and economic pressures
are increasing – both from within the industry (with service
and reputation advances by large banks) and from nonbank
sources such as payment processors, financial technology
businesses and giant retail organizations.
Regulatory pressures are another obvious source of
concern, but of the four nonregulatory areas where banks
are feeling the biggest impact, many bankers seem to find
technology the most challenging. When participants in a
recent Crowe webinar were asked to rank the categories of
change they found most challenging, new technology was
the number one response (Exhibit 1).
Source: Online survey of Crowe webinar participants, Aug.
16, 2018. Note: Numbers might not equal 100 percent due to
rounding.
It should be noted, however, that talent-related challenges
are a close second. This suggests that many bank
executives recognize the importance of attracting and
retaining high-performing managers and employees.
In fact, it could be said that many of the most pressing
operational challenges in today’s financial services
organizations stem from an interaction of people and
technology.
FRONTLINE CHALLENGES: BRANCHES AND CALL
CENTERS
The effects of technology and changing customer
expectations are particularly apparent in customer-facing
functional areas such as branch operations and call centers.
Today’s customers expect 24/7 access and mobility and
are accustomed to and comfortable with many self-service
functions. As a result, the functions of bank branches
and call centers are changing or are being rendered
unnecessary.
A
ƴåĹÚŅųARTICLES
Achieving Operational Excellence:
ƵƉƚÎÎ域üƚĬƉ°ĹĩŸƉųåƉ
ÚÚų域ĜĹčƉŅÚ°ƼűŸƉĘ°ĬĬåĹčåŸ
PA Bankers Association » Quarter 4, 2019 39
These changes can be challenging, but they also represent
an opportunity to achieve cost savings and service
improvements if handled correctly. Today’s industry leaders
are experimenting with a variety of new approaches,
including new branch staffing models, increasing use
of paperless account opening and services, branch
consolidations and closures, and a reduction in branch size
and hours.
Among the various branch staffing models now being
considered and employed, the introduction of the universal
banker position is possibly one of the more significant recent
developments. Four out of 10 bank executives surveyed
during the Crowe webinar said their institutions had pursued
such an approach (Exhibit 2).
Source: Online survey of Crowe webinar participants, Aug. 16,
2018
Not coincidentally, about the same number of executives
said their banks were working to enhance the customer
relationship and selling skills of branch personnel, even
as they pursued reductions in branch staffing levels. This
shift marks the move toward the universal banker model, a
model that moves branch staff from transaction processing
(or order taking) to building relationships, providing help
and advisory services, and initiating and supporting the
introduction of new products and services.
As branches consolidate, the role of call centers becomes
increasingly important. In addition to extended call center
operating hours, one broad, general trend that can be
observed these days is a greater empowerment of call
center personnel to handle additional services requests.
These trends manifest themselves in a variety of tactics,
including extended call center hours and capabilities and a
shift in call center job roles and the skill sets associated with
those positions. Supporting technology also is advancing
with tools such as tiered customer service queues, text
messaging or chat capabilities, interactive teller machines,
and enhanced support for digital banking services.
BEHIND THE SCENES: DEPOSIT OPERATIONS AND
COMPLIANCE CHALLENGES
Technological advances are not confined to frontline
functions. Automation also is playing a major role in
changing the way back-office functions such as deposit
operations, loan processing and compliance are handled.
Many leading banks are taking advantage of new core
system technology to launch major redesigns of their
deposit operational processes, automating many workflow
and reporting functions. Other successful tactics include
increased use of automated reporting tools, greater reliance
on call center operations and an overall simplification of the
front-to-back office interaction.
Wider use of automation also is proving to be useful in
improving the efficiency of Bank Secrecy Act/Anti-Money
Laundering (BSA/AML) compliance functions, where cost is
always a major concern. In addition to automated workflow
queues, many leading banks are also applying advances in
artificial intelligence and machine learning to help reduce
the number of “false positives, which always are a major
cost driver in these functional areas.
CREDIT OPERATIONS: LENDING AND COLLECTIONS
Revising credit operations always is a sensitive issue in
banking, since any changes directly will affect the bank’s
main revenue drivers. Nevertheless, the combination of
competitive pressures and technological advances is
having an impact in the lending, portfolio management and
collections functional areas of today’s banks.
Industry leaders are applying a variety of tools to help make
these functions both cost-effective and customer-responsive.
Some of the most frequently applied lending tools include
advanced commercial loan origination systems, enhanced
integration with the core systems and automated loan
portfolio management, along with increased use of paperless
loan origination and electronic signatures.
The overall lending organization also is being restructured
in some organizations, with increased specialization toward
customer and channel segments and overall process
streamlining. These changes are supported by related
technology advances, such as a greater reliance on
automated decision-making, application taking, and loan
closing and funding.
Many banks also are re-evaluating and updating their
collections processes and systems, focusing on both
technology and talent to achieve greater effectiveness.
Among the tactics some leading institutions are
40 » PA Bankers Association pabanker.com
Property Achieving Operational Excellence: How Successful Banks Are Addressing
Today’s Challenges
continued from page 39
implementing are more-sophisticated account segment
tiering and triage strategies, increased use of predictive
decision models and a general acceleration of the
collection cycle so that follow-ups occur in a matter of a
few days, rather than several weeks.
SPECIALTY SERVICES: WEALTH MANAGEMENT AND CASH
MANAGEMENT
Wealth management and commercial treasury management
services represent a growing source of revenue and new
customer accounts in many banking organizations. Here
again, a combination of technology and talent is proving to
be of value in many institutions.
Some important advances in wealth management services
that successful banks are implementing include tiered
service levels, more-advanced decision models, increased
reliance on self-service portals and automated financial
management tools, which can dramatically lower customer
costs. Banks that still provide trust services can use
new trust accounting systems to streamline workflows.
Comparable technological advances are being seen on the
commercial cash management and treasury services arena.
In addition to technology improvements, some banks are
working to reorganize and clarify their cash and treasury
management services by increasing resources and better
aligning their commercial, retail and small business units to
focus on targeted business customer segments.
PUTTING TECHNOLOGY TO WORK
In addition to technology solutions that apply to specific
functional areas, successful banking organizations also
are re-evaluating their overall approaches to information
technology in general and their core banking systems,
considering outsourcing network infrastructure and
administration, and looking at enterprise risk and data
systems.
Technology enhancements are allowing organizations
to simplify processes, automate documents, enable
customer self-service, automate processes and
integrate systems.
Looking beyond specific tools and tactics, banks
also are engineering broader structural and cultural
changes in their organizations. Banks are better aligning
management oversight with streamlined processes that
are more clearly understood and designed by customer-
focused activity management (CFAM) and business
process re-engineering (BPR).
The long-term objective of such efforts is to transform
the organization from one that is based on departmental
hierarchy, specialized functions, and rigid processes and
controls, to one that adopts a more process-oriented,
team-driven model where the hierarchy is flattened
and processes are simplified and driven by employee
empowerment. Banks that are successful in these efforts
expect to achieve greater efficiency, better employee job
satisfaction, and improved customer service and retention
in today’s increasingly competitive banking environment.
jƉB)ƉBj~×Ɖ
THOMAS W. GROTTKE,
MANAGING DIRECTOR,
TIMOTHY J. REIMINK,
MANAGING DIRECTOR,
CROWE
ƴåĹÚŅųARTICLES
Visit www.crowe.com/disclosure for more information about Crowe LLP,
its subsidiaries, and Crowe Global. © 2019 Crowe LLP.
Smart
decisions.
Lasting
value.
crowe.com
DC-250600
PA Bankers Association » Quarter 4, 2019 41
ith unemployment at its
lowest point since 1969,
the competition for top
talent is as fierce as it
has been in years.
While many experienced banking
professionals know well that the
industry offers challenges, rewards
and opportunities, many millennials
and Gen Z’ers remain reluctant to
pursue a career in banking.
The high-performing banks of the future
will be those that can translate those
benefits to attract, develop, reward and
retain top talent. There are two places
your bank can start this process.
Banks already provide strong salaries,
bonus opportunities, healthcare
coverage and retirement plans. The
challenge the industry now faces is
how to make the banking industry
more attractive to today’s generation
of younger recruits.
What a bank should consider includes
flexible work hours, the ability to work
remotely and cross-training. If the
bank can demonstrate a track record
and policy of promoting from within,
the job opportunity will be even more
attractive to a potential hire.
Another recruiting tool we have
often used successfully, particularly
for younger recruits, is a deferred
compensation program aimed to help
pay down student loans, with vesting
provisions that encourage continued
employment at the bank.
But once you acquire top talent, how do
you develop them as future leaders?
First, an ongoing coaching and
mentoring program is critical.
Pat Summitt, the legendary University
of Tennessee women’s basketball
coach who won more games than any
other NCAA Division I women’s coach,
recruited talented players.
Once they joined the team, she
delivered an individualized plan to
improve each player’s weaker areas.
She also provided regular feedback and
monitoring. This method of coaching
and mentoring led to 1,098 career
victories and Hall of Fame success
as a coach and leader. So, how can
Summitt’s approach help your bank?
When developing the bank’s future
senior management, the board and
the CEO should ensure they agree
on both the long-term strategic plan
and the necessary skills to execute
that plan.
They should then identify the
internal candidates best suited to
develop the skills and provide them
with opportunities for growth. It is
important the bank develop a culture
of honest assessment of strengths
and weaknesses and provide ongoing
mentoring and feedback.
Even with top talent, it is unlikely that
Summitt would have achieved the
success she did had she provided her
players with feedback only once a year.
In addition to an ongoing
assessment and coaching program,
the bank should discuss a career
path for potential leaders, and
the company should provide the
necessary training and cross training,
when feasible, to allow promising
employees to learn each facet of the
bank’s operations. Thorough training
programs can be very attractive in
recruitment and are invaluable to
the development of a leader.
Once the bank has invested in
developing up-and-coming leaders,
rewarding them appropriately and
incenting them to remain with your
bank are critical. No doubt, your
competitors will recognize the strong
leaders you are developing and
actively recruit your talent, requiring
your bank to maintain not just
competitive salaries, but methods of
keeping your compensation programs
unique and desirable.
An example is a nonqualified deferred
compensation plan that pays in-service
distributions at the end of certain
periods, such as three- or five-year
time frames. This type of plan typically
would include performance-based
compensation tied to specified goals.
Additional amounts can be credited
to the deferred compensation
account and distributed at the end
of a longer period (such as 10 years),
providing even more incentive to stay
with the bank.
If the individual terminates
before the applicable distribution
period(s), undistributed funds could
be allocated to hire a talented
replacement or credited back to the
bank’s income.
We have found these flexible deferred
compensation arrangements, when
combined with the other tools, to be
helpful in recruiting, developing and
keeping top talent.
An active career development program
bolstered with proper financial
incentives can help ensure your bank
has the right leaders for the future.
W
Pat Summitt’s Model on
°ĬåĹƋƉƴåĬŅŞĵåĹƋ
ORIGINALLY PUBLISHED BY BANK DIRECTOR
jƉB)ƉBj~×Ɖ
DAVID SHOEMAKER, MANAGING CONSULTANT,
NFP EXECUTIVE BENEFITS
BETH TAYLOR, SENIOR PLAN DESIGN ANALYST,
EXECUTIVE BENEFIT SOLUTIONS, LLC
42 » PA Bankers Association pabanker.com
ƴåĹÚŅųARTICLES
veryone knows that third-
party relationships introduce
risk. But what about second
parties, fourth parties and
beyond?
Let’s take a quick look at first,
second, third, fourth and fifth parties
to understand who they are and the
potential risks they pose.
FIRST PARTY
This is your institution, and it’s where it
all begins. Risk comes in many forms:
operational, transaction, financial, credit,
strategic, compliance, reputation,
concentration and cyber, among others.
Every decision your institution makes
has the potential to introduce risk
from big picture moves like a change
in strategy or a new business line to
smaller details like new disclosures.
First-party risk is best handled
with enterprise risk management
(ERM). ERM is the unified systems,
processes, culture and approach
your institution uses to manage risk.
It ensures that risk management isn’t
a solo activity but one that links your
institution’s mission, vision and values
with strategy and decision making
to ensure that the amount and types
of risk your institution takes on is
commensurate with its risk appetite.
It makes sure risks are identified,
measured, monitored and mitigated.
SECOND PARTY
These are your customers or members.
While much of risk management is
dedicated to protecting customers and
their data, it’s important to remember
that customers can pose risks too.
For example, Bank Secrecy Act/Anti-
Money Laundering (BSA/AML) rules are
designed to weed out customers that
use the financial system for nefarious
purposes. FinCEN’s new customer
due diligence (CDD) rules requiring
the establishment of beneficial
ownership for business relationships
were developed for the same reasons.
While most customers are just going
about their business, those who use the
banking system for criminal activities
create extra work and compliance risk.
There’s the risk that customers won’t
pay back loans or might sue the
institution. Customers also introduce
security risks, particularly when it
comes to online and mobile banking.
Customers may not have the latest
security safeguards on devices,
making it easier for hackers to gain
access to the bank’s systems or
impersonate customers.
It’s important to recognize these
risks and put safeguards in place to
properly manage and mitigate them.
THIRD PARTY
When your institution outsources an
activity to some other provider, that
institution is a third-party provider. This
includes everyone from your landscaper
to your technology service provider.
Whether you handle an activity or you
outsource it to a third-party vendor,
your institution is responsible for the
outcome just the same. That means
it’s essential to identify critical vendors
or high-risk vendors. These are
vendors involved in critical activities
that could have a major impact on
operations such as payments or IT.
Regulators provide detailed guidance
on monitoring these relationships,
including understanding how the
vendor relationship fits into the
institution’s overall strategic plan,
vendor due diligence, contract
negotiation, ongoing monitoring and
termination. Financial institutions
are expected to know what vendors
are doing, how they are doing it and
what steps they are taking to remain
compliant with all laws, regulations,
policies and procedures. That makes
vendor management an essential
element of any ERM system.
FOURTH PARTY
Your institution outsources functions
and your vendors probably do too.
A fourth-party is someone your
vendor outsources to. Fourth-party
E
First, Second, Third, Fourth And Fifth Parties:
ƵƉŅƉ`å°ŸƚųåƉĘåƉĜåųŸƉƉ~ĜŸĩƉ
PA Bankers Association » Quarter 4, 2019 43
jƉB)ƉBj~×Ɖ
MICHAEL BERMAN, NCONTRACTS
vendors go by a lot of names. Some
companies call them providers. Others
call them strategic partners. They can
provide bill pay, mobile banking, core
processing, legal or other services.
Your institution isn’t just responsible
for what your vendor does. It’s also
responsible for the activities of its
third-party vendors (aka fourth-party
vendors). The more critical third-
party vendors your vendor has, the
greater the costs and risks of vendor
management.
There are ways to limit fourth-party
vendor risk. When considering vendors,
ask them about outsourcing and have
them disclose their vendors so you can
consider the potential cost of managing
these relationships when comparing
prices and risk. Due diligence on
these vendors is a must. That includes
everything from financials and test
results to cyber security and business
continuity planning.
Unless a contract specifically prohibits
it, a vendor can transfer its rights and
responsibilities to another vendor.
Your contracts should require an
assignment clause that provides
notice and consent before a vendor
outsources—giving you the ability to
control fourth-party risk.
The good news is that fourth party risk
got a little simpler with the Statement
on Standards for Attestation
Engagements 18 (SSAE 18) that came
out last year. The SSAE 18 contains
a vendor management element that
requires a vendor to define the scope
and responsibilities of each third-
party vendor it uses and addresses
performance reviews, audits and
monitoring. Third-party vendors that
can provide SSAE 18 make fourth
party risk management simpler.
FIFTH PARTY
This is where things can get extra
convoluted. When your vendor’s
vendor outsources, this is a fifth-
party. (It doesn’t necessarily even stop
here as that vendor can outsource to
yet another vendor creating a sixth,
seventh, eighth-party and beyond.)
Once again, your institution is
responsible for the actions these
vendors take on your behalf. It’s
important to know about any critical
third-party vendors your vendors’
vendors are using to understand
potential risks and to have strategies
for mitigating them. The SSAE 18
is your ally in understanding these
relationships. The alternative is
following the chain of critical vendors,
making vendor management onerous.
Now that you understand all the
parties involved, make sure you have
systems in place to manage the risks
they present. With so many parties to
track, don’t use a casual approach to
management. It’s too risky.
ĜĹÚåƻƉŅüƉADVERTISERS
APPROVAL PAYMENT SOLUTIONS ........................................................................................................................................17
APPI ENERGY .........................................................................................................................................................................................13
BOXWOOD MEANS .............................................................................................................................................................................9
BURNS WHITE ..................................................................................................................................................................................... 25
COMPLIANCE ALLIANCE ................................................................................................................................................................4
CORNERSTONE ...................................................................................................................................................................................50
CROWE......................................................................................................................................................................................................40
BANK HEALTH CARE CONSORTIUM OF PA ................................................................................................................. IFC
HERBEIN .................................................................................................................................................................................................. 33
MERCADIEN ...........................................................................................................................................................................................27
NFP..............................................................................................................................................................................................................BC
PILLAR + AUGHT ................................................................................................................................................................................. 27
S.R. SNODGRASS ..................................................................................................................................................................................7
THE BAKER GROUP .......................................................................................................................................................................IBC
TITLE INSURANCE .............................................................................................................................................................................11
44 » PA Bankers Association pabanker.com
POSSIBLE CECL DELAY
FOR SMALLER BANKS HAS
IMPACT ON M&A
Small Reporting Companies (public
companies with a market cap of
less than $250 million or less than
a $700 million market cap and less
than $100 million in annual revenue)
and Non-Reporting Companies have
been given a “gift” by the Financial
Accounting Standards Board (FASB).
If as expected, the FASB amends
the Current Expected Credit Losses
(CECL) implementation rules to delay
their effectiveness until 2023 or earlier
if you are no longer an SRC, it is time
to move as a buyer and/or seller in
the banking sector.
From a buyer’s perspective, there
is no question that the CECL rule
delay would and will have a profound
positive impact on the near-term
financial benefits of acquisitions.
Based on disclosures in Form 8-Ks
filed by First Defiance Financial Corp.
and Sandy Springs Bancorp, Inc.
in connection with their respective
acquisitions and the meaningful
discussions of the “double dip” in
recording loan allowances, it can
be deduced that the CECL rule
implications may have the effect
of roughly doubling (or more) the
merger’s expected “earn back” period.
The “earn back” period has become
the new litmus test for buyers and
investors when evaluating the
potential impact of an acquisition on
a buyer’s common stock. This test
provides perspective to potential
earnings accretion of a transaction
relative to the transaction price
paid. While accounting mechanics
are important, they are beyond the
scope of this article. What is very
relevant, however, is the “gift,” how
long it lasts and its implications for
bank M&A. From a SRC buyer’s M&A
perspective, the immediate impact of
CECL can be avoided until the earlier
of if a transaction is closed before the
Buyer is no longer a small reporting
company or until 2023.
If I am an SRC buyer, those M&A
seeds we have in our pocket need
to be planted, watered, fertilized,
cultivated and harvested before the
CECL window closes. From an SRC
buyer’s perspective we must execute
our M&A strategy now with relentless
focus.
If I am a company who may be
considering selling within the next
5 years (whether an SRC or non-
reporting company) for whatever
reason - aging board of directors,
retiring management, changing
business environment, or to take
advantage of maximized operating
performance or actual shareholder
value, we should consider what
impact the rule delay may have on
future versus current valuations,
transaction pricing and the M&A
environment. Translation: buyers will
be more likely to buy at fair valuations
without the short-term CECL impact
upon the merger’s effectiveness
(normal metrics or parameters of
ƴåĹÚŅųARTICLES
Beating the CECL
Clock in
°ĹĩƉ`åųčåųŸƉ
°ĹÚƉÎŧƚĜŸĜƋĜŅĹŸ
PA Bankers Association » Quarter 4, 2019 45
value applying) rather than later
when CECL’s “double dipping” impact
is effective. Let’s not forget that
valuation and its metrics still have
a meaningful role in mergers and
acquisitions (despite what pundits
might think).
OTHER CONSIDERATIONS
There are other considerations
that suggest buyers and sellers
should act now rather than wait for
CECL’s implementation, including
its damaging impact on book
values resulting from increased loan
loss reserves. While the efficient
market theory would argue that an
accounting change should not impact
valuations, there is nevertheless a risk
that sellers could realize lower buyout
offers post implementation due to
lower reported book values despite
earnings implications.
There are scenarios wherein CECL
would make acquisitions less
accretive to buyers. For example, let’s
assume the negative impact on book
values depresses valuations for the
sector. Let’s further assume economic
growth diminishes by the time CECL
is implemented for SRCs, which leads
to increased demand for M&A to spur
EPS growth. The uneven movements
in the currency for M&A relative to
M&A pricing in this very plausible
scenario suggests buyers should
implement their strategies now.
Furthermore, CECL will muddy the
water when it comes to valuations.
Periods with robust loan growth
will be less profitable due to the
immediate recognition of credit
losses, while times with stable to
declining loan growth will become
more profitable as income on loans
continues to be recognized while
credit losses have already been
realized. Accordingly, traditional
valuation models would penalize
bank stocks in good times and
reward them in bad. The considerable
noise and uncertainty that CECL
will undoubtedly create provides
additional support to our thesis that
buyers and sellers should act now.
CONCLUSION
Ultimately, the CECL rule will not
change the inevitable course of
industry consolidation. Those
fundamentals are in place and
trending as expected for the long-
term. However, it may change the
factors affecting business decision
making, i.e., the timing of sellers, how
and when to maximize value and to
whom and when you may offer the
most potential value different, than
it otherwise would without current
implementation of the CECL rule.
Eventually the pricing impact of
accounting rule changes will be
absorbed, as always – remember the
great anxiety over the loss of pooling
method accounting and the full
implementation of purchase method
accounting in mergers and acquisitions.
But for a short period of time, from now
until 2023, the CECL rule delay does not
treat all buyers equally, it favors SRCs.
But like the advertisements say, “for a
limited time only, in this case the rule
delay is a delay. It is not a repeal! That is
a discussion for another day.
When the CECL rule is effective, it
may have the impact of lowering
prices, because buyers by their
nature are conservative and will wait
until the market absorbs the rules
implementation impact on a buyer’s
stock price and generally in mergers
and acquisitions pricing.
Nevertheless, the certainty of the
financial impacts of the delay for both
SRC buyers and sellers is favored over
the uncertainty of the effect of the
CECL rules future impact on market
pricing and financial statements.
One more thought to ponder in the
boardroom.
jƉB)ƉBj~×Ɖ
NICHOLAS BYBEL, JR. is a PARTNER of BYBEL RUTLEDGE LLP in Lemoyne, Pa., where his
practice focuses on business and corporate law, mergers and acquisitions, financial institution
regulation, securities offerings and compliance and corporate governance. Mr. Bybel also regularly
consults on corporate structuring, strategic planning, capital formation and mergers and acquisitions
for financial institutions.
ANDREW W. STAPP is an INVESTMENT BANKER working with COMMONWEALTH ADVISORS, INC.
and is an experienced as a top banking analyst and advisor to financial institutions in mergers and
acquisitions. He has conducted equity research, performed in depth due diligence and prepared
comprehensive financial and valuation models for numerous companies and transactions over his
successful career.
The foregoing is provided solely for informational purposes. Neither this article nor the authors are rendering legal, professional
or financial advice or opinions on specific facts or matters. Distribution of this article to any person does not constitute the
establishment of an attorneyclient relationship.
46 » PA Bankers Association pabanker.com
ƴåĹÚŅųARTICLES
DEFINING “NORMAL
CYBERSECURITY SPEND PER FTE
Chief information security officers
(CISOs) have found themselves
at a disadvantage when directors
or executive peers challenge the
cost of their cybersecurity spend,
since little-to-no peer information is
available. Bankers have often utilized
regulatory call report information
for peer analysis, measuring their
institution’s financial performance
compared to competitors. While
call reports provide key financial
performance indicators, detailed
information related to cybersecurity
and information technology budgets
are not easily attained.
A recent report titled “Pursuing
Cybersecurity Maturity at Financial
Institutions, released by Deloitte
and the FS-ISAC, estimates that
responding financial institutions
spend between $1,300 and
$3,000 per full-time equivalent
(FTE) employee for cybersecurity
annually with an average of
$2,300 being the norm. The report
estimated responding financial
institutions spend 6 percent to
14 percent of the IT budget on
cybersecurity, with an average of
10 percent being the norm. While
beneficial, the more interesting item
in the report is that these figures
decipher to a range of 0.20 percent
(20 bps) to 0.90 percent (90 bps)
of responding financial institution’s
revenue with an average of .30
percent (30 bps) being the norm.
ARE COMMUNITY FINANCIAL
INSTITUTIONS LAGGING IN
CYBERSECURITY?
While 97 companies participated
in the report, with representation
spanning multiple revenue levels
and various financial sectors, we can
apply these results to the community
based financial institution segment.
Respondents were delineated by
revenue into the following categories:
ƽ 1EVKIQSVIXLERȶ'MRVIZIRYI
[MXLȴVIWTSRHIRXW
ƽ 2MHWM^IHQSVIXLERȍȉȉ2
Less than $2B in revenue) with 23
respondents; and
ƽ QEPPPIWWXLERȍȉȉ2MR
revenue) with 36 respondents.
Assuming that a community based
financial institution should spend
between 20 bps to 90 bps of
revenues on cybersecurity, we can
use available call report information
to estimate what the average
cybersecurity spend is in this segment
of the financial institution universe.
According to the June 30, 2019, Uniform
Bank Performance Report (UBPR) Peer
Group Average Distribution Report (by
Percentile Rank) of the 5,352 banks that
reported, the following peer averages
were available:
Interest Income (as a percentage of
average assets) - 4.34 percent
Non-Interest Income (as a
percentage of average assets) -
0.60 percent
Assets per Employee ($ million) -
5.25
Thus, a typical community based
financial institution will have revenues
What Does the Average Financial Institution
Spend on
ƉƼÅåųŸåÎƚųĜƋƼũ
Total Per FTE Total Per FTE Total Per FTE
$50 m
2,470$ 9.524 4,940$ 519$ 7,410$ 778$ 22,230$ 2,334$
$100M
4,940$ 19.048 9,880$ 519$ 14,820$ 778$ 44,460$ 2,334$
$500M
24,700$ 95.238 49,400$ 519$ 74,100$ 778$ 222,300$ 2,334$
$1 B
49,400$ 190.476 98,800$ 519$ 148,200$ 778$ 444,600$ 2,334$
Spend 30 bpsSpend 20 bps Spend 90 bps
Revenue
4.94%
(1,000)Average Assets
FTE
$50
M
$1
PA Bankers Association » Quarter 3, 2019 47
that are roughly 4.94 percent (4.34
percent + 0.64 percent) of average
assets and have one employee for
every $5.25 million in assets. Applying
the ratios across a various range
of asset size, the $2,300 per FTE
estimate from the Deloitte report
appears to be at the 90 bps range for
the average performing community
based financial institution.
The Deloitte report noted small
respondents budgeted a lesser
percentage of their revenue (20 bps)
on cyber than did midsize (50 bps) or
large companies (40 bps). While small
respondents’ average spend of $2,100
per FTE matched that of midsize
respondents, this cybersecurity spend
was much lower than the $2,700 cited
by their large respondents.
When it comes to building a
successful cybersecurity program,
however, the report noted that
advanced respondents did NOT
necessarily spend more on
cybersecurity than less advanced
respondents. The biggest
takeaway from the report is HOW a
cybersecurity program is planned,
implemented, and managed is more
effective than the percentage of
revenue allocated to cybersecurity.
KEY CHARACTERISTICS OF A
SUCCESSFUL CYBERSECURITY
PROGRAM
Deloitte’s study also identified the
three (3) key characteristics of financial
institutions that have built successful
and effective cybersecurity programs,
including:
Involvement - Effective
cybersecurity programs commonly
have secured strong executive
and board involvement. Involved
executive management monitors
cybersecurity risk in the same
perspective as financial risk,
lending risk, compliance risk and
other company risks. One of the
major report findings is that a
lack of management support and
inadequate funding was a leading
challenge among respondents.
Going beyond setting the overall
security strategy, the report found
engaged management reviewed
threats and cybersecurity risks,
monitored the cybersecurity
program, and assessed their
organization’s vulnerability to
a third party’s public breach.
Better awareness of threats
and cyber risk, along with the
implications of a cyber incident
to the institution, accelerates
management engagement and
focus the management team on the
institution’s current challenges while
maintaining appropriate funding.
Alignment - Cybersecurity is an
enterprise issue that goes beyond
information technology. Effective
cybersecurity programs recognize
that cyber threats are one of the
most critical risk exposures facing
the financial industry. Cybersecurity
is not merely a technology issue.
While the cybersecurity program
may have originated in the IT
function, effective programs raise
the profile of cybersecurity at
the institution, allowing decision-
making to be independent of other
traditional IT considerations. Effective
cybersecurity programs recognize
the need to completely segregate
the cybersecurity function from IT
function.
Strategy - Cybersecurity is aligned
more closely with the overall
business strategy in institutions with
an effective cybersecurity program.
With modern banking, all business
functions have multiple dependencies
on internal and external technology to
perform daily operations. Leveraging
technology is often how financial
institutions compete and differentiate
themselves from other institutions
across the street or across the nation;
however, new technologies may
expose the institution to new threats
and additional vulnerabilities. Business
growth and expansion was the
second-largest challenge identified
by respondents. Management of
effective cybersecurity programs
requires an awareness of the business
growth implications, expansion and
the alignment of cybersecurity with
the overall business strategy.
Stay Informed - CISOs will be
continually challenged to justify
increased funding for cybersecurity.
Using studies such as the reports
by Deloitte and FS-ISAC and current
industry peer information, CISOs
can be better prepared to answer
the question of not only, “How much
funding do others financial institutions
allocate on cybersecurity?” but also,
“How are other financial institutions
facing the challenge a developing and
maintain an effective cybersecurity
program with limited funding?”
jƉB)ƉBj~
:
SHANE DANIEL is a SENIOR INFORMATION SECURITY CONSULTANT for SBS CYBERSECURITY,
a premier cybersecurity consulting and audit firm dedicated to making a positive impact on the
banking and financial services industry. Shane maintains his CISA, CPA, CIA, CGEIT and CRISC
certifications. He has 27 years of experience in Network Security, IT Auditing, Consulting and ISP
development.
48 » PA Bankers Association pabanker.com
ABA INSURANCE SERVICES
Bond, D&O, Cyber Insurance, and
Employment Practices Liability
Patricia Williams, (216) 220-1280
pwilliams@abais.com
APPROVAL PAYMENT
SOLUTIONS, INC.
Merchant Processing, Search Engine
Optimization, Website Design and Social
Media Management
Megan Noe, (888) 311-7248 ext. 5011
mnoe@apsolutions.net
THE BAKER GROUP
Asset/Liability Management
Software and Services
Charles Amis, (405) 415-7231
Charlie@gobaker.com
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@pabanker.com
COMPLIANCE ALLIANCE
Quality Compliance Services
That Complement and Assist
Internal Compliance Personnel
Wayne Whipple, (717) 255-6925
wwhipple@pabanker.com
BITS
Managed Service Provider for Voice
and Data Communication
Christian Ericson, (973) 474-1828
Christian.ericson@bitsnetwork.com
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
Jane Seagraves Sidebottom
(800) 520-6685
jseagraves@appienergy.com
@RISK TECHNOLOGIES, INC.
Automated CAT Tool & Digital
Forensic Investigation, Network
Consensus Cybersecurity
Allen Mitchell, (215) 485-7315
armitchell@atrisktech.com
COMMONWEALTH CHARITABLE
MANAGEMENT
Cristine Clayton, (570) 278-3800
cclayton@commonwealthcharitable.org
*As of 4/12/19
ANDERSON GROUP
Integrated Marketing and
Communications and
Business Intelligence
Ray Melcher, (610) 678-1506
rmelcher@thinkanderson.com
BANK HEALTH CARE
CONSORTIUM OF PA
CORNERSTONE ADVISORS
Core, Debit EFT, Card Program, Loan
Origination, Bill Pay, Mobile Banking &
ATM Contract Negotiation
Jennifer Wagner, (480) 425-5204
JWagner@crnrstone.com
PA Bankers Services Corporation
Select Vendors Provide zƉ°ĹĩåųŸƉ`åĵÅåųŸ
Savings, Service and Quality
PA Bankers Association » Quarter 4, 2019 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
Black 80%
PWCAMPBELL
Planning, Design Coordination,
and Construction Management
Erin Campbell, (800) 253-7430
Erin.campbell@pwcampbell.com
GLOBALVISION SYSTEMS, INC.
Anti-Money Laundering
Catherine Lew
(818) 998-7851 x128
clew@gv-systems.com
INVESTORS TITLE
INSURANCE COMPANY
Multi-Bank Owned Title
Insurance Program
Karen Brittain Barnett, (419) 577-5900
kbarnett@invtitle.com
THE KAFAFIAN GROUP
Performance Measurement
Robert E. Kafafian
(973) 299-0300 x106
rkafafian@kafafiangroup.com
L.R. WEBBER
Multiple Medical, Drug, Dental &
Vision Options and EB Solutions
Brad Webber, (814) 695-8066
bwebber@lrwebber.com
EVERFI
Financial Education
Technology Platform
Matt McDonald, (415) 672-7586
mmcdonald@everfi.com
*As of 4/12/19
NFP
BOLI, Executive Compensation
and Long-Term Care
David Shoemaker, CPA/PFS, CFP
®
(901) 754-4924
david.shoemaker@nfp.com
DELUXE CORPORATION
Check Program
Todd Wroblewski, (724) 625-5599
todd.wroblewski@deluxe.com
DEALERTRACK COLLATERAL
MANAGEMENT SERVICES, INC.
Electronic Lien and Title Program
Wayne Whipple, (717) 255-6925
wwhipple@pabanker.com
NCONTRACTS
Mark Schwartz,
(615) 210-3775,
mark.schwartz@ncontracts.com
KEYSTATE CAPTIVE MANAGEMENT
Brian Amend
Managing Director & VP Sales,
Eastern Region
(302) 425-5158
bamend@key-state.com
THE FULCRUM GROUP
INTERNATIONAL, INC.
Reviewing, Re-negotiating and
Bidding Check Printing Relationship
Ted Amon, (770) 736-5787
ted@thefulcrumgroupintl.com
CRA PARTNERS
Receive High-Yielding CRA Credit
Sue Shaffer, (901) 529-4787
sue.shaffer@SHCPFoundation.org
Core Systems
Leverage more than 15,000 pricing data points acquired through
numerous system selection negotiations, contract renewals
and benchmarking engagements along with our proven
methodologies to get the most advantageous contract for an
institution—no matter the size. Services include Core Selections
and Renewals, and In-house vs. Service Bureau Evaluations.
Merger Contracts
We can deliver a merger negotiation strategy and lead our
clients through contract evaluations, product selections, and
negotiation of final contracts. We understand that speed is of
the essence in a merger situation and we ensure all decisions
are based on sound functionality, benefit analysis and financial
modeling based on the merged institutions' combined volumes.
Debit and Credit Card
Card processing is an opaque industry; we bring transparency
and clarity to the negotiations. Services include: Debit / ATM
Processing Renewals, PIN POS Networks, Debit and Credit
Selections, and Credit Processing.
Digital Banking | Bill Pay
An institution’s ebanking platform is the most used channel
and it has to fit their needs. We assist in evaluating options
and negotiating cost-eective contracts for developing
products to help banks remain competitive. We know the
vendors, the competitive landscape, and stay ahead of the
market trends—enabling our clients to deliver the services
and functionality that consumers are demanding.
VISA | Mastercard
Cornerstone negotiates with Visa and Mastercard for the
highest level of incentives and the lowest fees. Our card
branding negotiators assist our clients by soliciting bids and
negotiating with the vendor(s) for market ready agreements
that properly reward our clients for their relationships.
Ancillary Services—Loan | Deposit
Origination, Trust, Item Processing
We ensure pricing and terms are market competitive for all
ancillary solutions, whether our clients choose to partner
with their core vendor or a third-party.
Data and Voice Negotiations
Data and voice circuits are the most expensive line item in an
infrastructure budget. Our market knowledge of pricing and peer
benchmarking delivers savings to the bottom line and results
that outperform the market. We provide objective insight and
guidance with no vendor partnerships or reselling agreements.
ATM | ITM Negotiations
Our objective advice and methodology for evaluating ATM
contracts strategically positions our clients to achieve
improved results and reduced expenses. Services
include—renegotiating existing service contracts,
negotiating purchase price on a fleet of machines,
bid solicitation to explore the market oerings,
business case strategy and ROI analysis
evaluating new technology.
Negotiate BETTER Contracts
We Can Help Your Bank
Cornerstone Advisors has the data, experience and knowledge to help clients optimize
their vendor contracts. Our multidisciplinary team can assist with all or just select steps
including selecting the right vendor, negotiating the most favorable contract, developing
the best implementation strategy, and ensuring optimal performance.
©2019 Cornerstone Advisors.
CONTINUE THE CONVERSATION
www.crnrstone.com
Cornerstone Advisors
@CstoneAdvisors
Contact Jennifer Wagner
602.770.4220
jwagner@crnrstone.com
/in/jen-wagner
Member: FINRA and SIPC
Oklahoma City, OK | Atlanta, GA | Austin, TX | Indianapolis, IN | Long Island, NY | Salt Lake City, UT | Springfield, IL
The Baker Group LP is the sole authorized distributor for the products and services developed and provided by The Baker Group Software Solutions, Inc.
www.GoBaker.com | 800.937.2257
Successful financial institution managers know the
importance of achieving a high-performance plan. Establishing
such a plan requires not only sound data and accurate information,
but also an insightful partner; The Baker Group is that partner.
Leaders in innovation. The Baker Group remains the industry
leader when it comes to innovation. We are truly a one-stop
shop that never outsources our customizable reporting services.
To find out how The Baker Group can assist your institution in
defining and meeting its financial objectives, call your Baker
representative or Ryan Hayhurst at 800.937.2257.
Investment Portfolio Services
Balance Sheet Management
Education
Public Finance
Strategic Planning
Funding
Bond Accounting and Analytics
Our Forty Years of Experience Will Guide Your Institution to the Next Level
High-Performing Clients
Have High-Performing Partners
STRONGER TOGETHER
BOLI, Executive Benets, and a Whole Lot More
NFP is more than just risk assessment, BOLI, and
executive and director benets. With the power of
Equias Alliance and NFP combined, our oerings
are now more robust than ever — and you won’t
nd a better client experience anywhere else.
PRSRT STD
US POSTAGE
PAID
HARRISBURG, PA
PERMIT No. 1169
3897 North Front Street
Harrisburg, PA 17110
Let’s discuss the solutions you need to
retain and reward key employees.
David Shoemaker, CPA/PFS, CFP®
david.shoemaker@nfp.com
Insurance Products: 1) are not a deposit or other obligation of or guaranteed by, any bank or bank
aliate; 2) are not insured by the FDIC or any other federal government agency, or by any bank
or bank aliate; and 3) may be subject to investment risk, including possible loss of value. All
guarantees are subject to the claims-paying ability of the issuing insurance company. Insurance
services provided through NFP Executive Benets, LLC (NFP EB), a subsidiary of NFP Corp.
(NFP). Doing business in California as NFP Executive Benets & Insurance Agency, LLC. (License
#OH86767). Securities may be oered through Kestra Investment Services, LLC, member FINRA/
SIPC. Kestra Investment Services, LLC is not aliated with NFP or NFP EB. Neither Kestra IS nor
Kestra AS provide legal or tax advice and are not Certied Public Accounting rms.