paBanker Magazine Spring 2024 : simplebooklet.com

4 » PA Bankers Association PA Bankers Association » Spring 2024 5pabankers.comPA Bankers STAFF DIRECTORYGeneral Number (717) 255-6900PA Bankers AssociationJill A. Ametrano, Registrar and Records Coordinator jillametrano@pabankers.com | (717) 255-6927Lisa R. Brandt, Legal and Policy Coordinator lbrandt@pabankers.com | (717) 255-6936J. Duncan Campbell III, President & Chief Executive Ocer dcampbell@pabankers.com | (717) 255-6916Jacqueline A. Catalano, Vice President, Professional Development jcatalano@pabankers.com | (717) 255-6939Amy L. Doyle, Communications and Government Aairs Coordinator adoyle@pabankers.com | (717) 255-6937Connie A. Ferraro, Director, Information Technology cferraro@pabankers.com | (717) 255-6921Michelle L. Henry, Administrative Assistant, Member Engagement & Development mhenry@pabankers.com | (717) 255-6900Sara E. Hocker, Director of Marketing and Communications shocker@pabankers.com | (717) 255-6912Jonathan D. Humma, Vice President, Government Relations jhumma@pabankers.com, (717) 255-6933Annette M. Moshgat, Director, Finance amoshgat@pabankers.com | (717) 255-6938Louise A. Rynd, Esq., General Counsel lrynd@pabankers.com | (717) 255-6935Michelle L. Staton, Chief Operating Ocer mstaton@pabankers.com | (717) 255-6923Marilyn M. Wisniewski, Professional Development Assistant mwisniewski@pabankers.com | (717) 255-6934 PA Bankers Services Corporation Director, PA Bankers Services Corporation tchambers@pabankers.com | (717) 255-6928Cynthia L. Wallett, President, PA Bankers Services Corporation cwallett@pabankers.com | (717) 255-6913Wayne R. Whipple, Vice President, Business Development wwhipple@pabankers.com | (717) 255-6925magazineSTAFF Managing Sara E. Hocker Editor Editorial J. Duncan Campbell III Advisors Jacqueline A. Catalano Tiani A. Chambers Jonathan D. Humma Louise A. Rynd Michelle L. Staton Cynthia L. Wallett PA Bankers Services Corporation Board of Directors and Ocers Chair M. Theresa Fosko, SPHR Secretary Tracy E. Watkins, SPHR Treasurer J. Duncan Campbell III Directors Mary G. Cummings, Esq. Eugene J. Draganosky Philip L. Freeman, Jr. Scott E. Fritz John C. Gill Ginger G. Kunkel Andrew Linn Brendan J. McGill John H. Montgomery Michael D. Peduzzi Joseph R. Toth Address Correspondence to: paBanker Magazine c/o Pennsylvania Bankers Association 3897 N. Front St., Harrisburg, PA 17110 Tel. (717) 255-6912 Email: shocker@pabankers.compaBanker Magazine is published four times a year by the PA Bankers Services Corporation (Services Corporation), a subsidiary of the Pennsylvania Bankers Association (PA Bankers). The Association serves Pennsylvania banks and nancial institutions with educational programs, member services and represents members on the state and federal level. Since 1895, PA Bankers continuously worked to be the premier nancial services organization supporting a diversied membership through volunteer participation, a knowledgeable sta, state of the art technology and a commitment to excellence.paBanker Magazine is the ocial publication of PA Bankers.EditorialThe opinions expressed in articles by authors other than Association sta and ocers are the responsibility of the authors only and not necessarily those of the PA Bankers, the Services Corporation or its members. All articles, unless otherwise notied, have been written by paBanker Magazine sta. Questions and comments should be addressed to the Managing Editor. PA Bankers members may reproduce any non-commercial part of this publication with verbal permission from the editor. All others must receive written permission from the editor prior to reproduction of any part of this publication. Copyright ©2003 PA Bankers Services Corporation. All Rights Reserved.Designed by: Hot Frog Print & MediaSponsored by: www.GoBaker.com | 800.937.2257 Oklahoma City, OK | Austin, TX | Long Island, NY | Salt Lake City, UT | Springfield, IL | Member: FINRA and SIPC AGENDAWednesday, November 6Welcome Cocktail ReceptionThursday, November 7Breakfast, Economist–David Rosenberg, Seminar, Lunch, Seminar, Adjourn, 45th Anniversary Celebration Cocktails and DinnerFriday, November 8Breakfast, Seminar, Conclusion, Golf Included at the Padre Golf CourseWHO SHOULD ATTENDFinancial institutions’ CEOs, CFOs, investment ocers, board members, and those who are directly or indirectly responsible for ﬁnancial management functions will beneﬁt from this seminar.10 hours of Economics and Finance CPE credits will be earned for your attendance.For 45 years, The Baker Group has been customer focused and industry responsive, providing honest and insightful guidance to our partners through strategic balance sheet and investment solutions.FEATURED SPEAKERDavid Rosenberg – President/Chief Economist & StrategistRosenberg Research & Associates Inc.CELEBRATION SEMINARAnnivsyIn honor of The Baker Group’s 45th anniversary, we invite you to our celebration seminar in Scottsdale, AZ. We are looking forward to celebrating this tremendous accomplishment with our clients and friends.Interest Rate Risk andInvestment Strategies SeminarScottsdale, AZJW Marriott Camelback Inn ScottsdaleNovember 7-8, 2024ACCOMMODATIONSA block of rooms is available at JW Marriott Camelback Inn Scottsdale. The special room rate will be available until October 14, 2024 or until the room block is sold out. Hotel price: $329 + $20 resort fee. There is no cost for this seminar.For more information and to register, visit GoBaker.com/arizona/. Call Skoshi Heron at 888.990.0010 for questions.5402 East Lincoln Drive, Scottsdale, AZ 85253

Page 5

Page 6

6 » PA Bankers Association PA Bankers Association » Spring 2024 7pabankers.comstart to formalize your DEI initiatives, these tools and groups are for you. The roadmap PA Bankers has put together is a simple, clear way to embark on the journey. VOLUNTEERISMThe association is comprised of hundreds of banker volunteers who work tirelessly on behalf of the association to shape the future of the industry. How Can You Become Involved?• That’s easy. Become a volunteer! Member bankers can self-submit a volunteer recruitment form and/or be nominated by another PA Bankers member to serve on a PA Bankers committee or board. Board members and association officers are voted in by the membership each year at the Annual Meeting held during the PA Bankers Annual Convention. Simply fill out the Volunteer Recruitment Form.Sometimes bankers outside the executive level don’t think they can be a volunteer; my advice is to ask for the opportunity! And sometimes those at the executive level don’t think to ask others; I would encourage you to ask. Every time I have asked someone in my bank if they would like to volunteer, the answer has always been a resounding yes! It takes volunteers of all ages, job levels, experience levels, and positions to make our industry successful. In conclusion, please join me as we explore and take advantage of the wealth of opportunities awaiting to engage with our PA Bankers Association. Let’s all discover how such engagement can drive personal and professional growth and have a positive impact on our industry. Our association is ready to support you every step of the way.hroughout the rapidly changing and challenging landscape, PA Bankers aims to help its members grow and achieve ongoing success in their communities by providing professional development, advocacy and workforce development opportunities, as well as diversity, equity and inclusion (DEI) resources. I am a firm believer in the power of engagement and what it can mean for your career, institution and community. Over the last 12 years, I have immersed myself into the association, participating in various events, utilizing the resources available for myself, my team and my bank, and, most recently, volunteering my time to serve on the board of directors. Although the industry has changed, PA Bankers has remained constant, and with your engagement, our industry can be stronger together.I invite you to enjoy the benefits of actively participating in the PA Bankers’ multitude of engagement opportunities. These range from networking with industry leaders to accessing valuable resources and staying abreast of industry challenges. Whether you are a seasoned banking professional or an individual just starting your banking career, there are numerous avenues for engagement and enrichment offered.BANKER EDUCATION The association offers a plethora of in-person seminars, conferences and/or professional development events TANGIE SARGENTSenior Executive Vice President, Chief Information OfficerFulton Bankper year, as well as multiple online training opportunities, including:• Conferences and seminars – These events provide comprehensive overviews of hot topics, including Women in Banking, Young Professionals, Agricultural Banking, DEI, Bank Technology, Executive Management, Lending and Wealth Management.• Schools - Similar to 100–400 college-level courses in the areas of banking, consumer lending, commercial lending, compliance and more, the PA Bankers schools offer a fully immersive, multi-day experience for bankers looking to hone their skills.• Webinars - Through two unique partnerships with Oncourse Learning and FinPro, PA Bankers offers live or on-demand webinars for your financial institution on timely, banking-specific topics. • ABA Training - ABA Training is a comprehensive source for training and education available through the American Bankers Association (ABA). All ABA Training courses, certificates, briefings and more are brought to you through Pennsylvania Bankers Association, your local ABA Training Provider.• Leadership Institute - Participants go “behind the curtain” to examine the success that comes from a strong organizational culture and assess how it relates to performance, leadership, engagement, and communication to enhance the bank’s bottom line.I regularly attend the association’s events and encourage my team to attend as well. I have personally participated in the Women in Banking, DEI and Young Professionals conferences. The networking and learning opportunities are stellar, and the energy in those rooms is so invigorating!ADVOCACYWorking on behalf of the Pennsylvania banking industry, PA Bankers has played a key role shaping legislation and regulation impacting the banking industry. PA Bankers represents the financial industry before the Pennsylvania Legislature, Governor's Office and various state departments and agencies, as well as before Congress and the federal regulatory agencies.One of the most effective tools in a government relations strategy is an active grassroots network. Your involvement is a key component of ensuring that the financial industry’s collective voice is heard in the PA State legislature.chair’sINSIGHTSHow Can You Take Action?• Send an email to your elected official on a special issue.• Call your representative and senator to tell him/her your position on upcoming pieces of legislation. Click here to see the current calls to action.• Host a bank visit.• Host a community banking event.• Become a contact banker.Whether you have a lot of time to attend or host an event or only two minutes to complete a call-to-action email, it is critical to do so. These advocacy-related engagements and activities are critical to our industry’s success. WORKFORCE DEVELOPMENT PA Bankers actively participates in three programs to recruit the next generation of bankers and support the industry: BankWork$, PA Bankers Intern Program and CSBS Community Bank Case Study Competition.How Can You Become Involved?• Consider using the PA Bankers Intern Program to help you recruit your interns for various areas across your bank and increase awareness of the career opportunities that exist within the banking industry.• Join other banks in the Philadelphia and Pittsburgh regions to participate in BankWork$, an industry training and recruitment program for those in underserved communities. • Partner with a team of local college/university students on the CSBS Community Bank Case Study Competition, a national program offering experiential learning opportunities with banks.My bank participates in several of these programs, and it is so encouraging to see students actively engaged and interested in our financial industry. These crucial programs allow students to understand the wide range of banking jobs available to them and allow financial institutions to gain direct access to a new generation of bankers.DIVERSITY, EQUITY & INCLUSION (DEI)PA Bankers is committed to supporting its members as they achieve their DEI goals. To accomplish this, the association continually provides resources and networking opportunities for members to continue building their own DEI program, regardless of where they are in their DEI journey.How Can You Take Advantage of These Resources?• Download and use DEI TRACC, the roadmap PA Bankers created to help guide its member banks through their DEI journey. There are various tools and guides throughout the roadmap to assist member banks with their workforce, supplier diversity, and support of their personal and business customers and the communities they serve.• Attend the next DEI Roundtable Session. These sessions allow members to receive updates on the association’s DEI initiatives and conduct open discussions on current DEI topics.• Participate in the upcoming Employee Resource Groups (ERGs) networking sessions, which will focus on supporting the association’s member banks with their ERGs, as well as finding ways to connect those efforts across our banks. More information about these new sessions will be available later this year.If you are a bank executive who is thinking you just don’t know where to chair’sINSIGHTSThe Importance of Engagement withPA Bankers

Page 7

Page 8

8 » PA Bankers Association PA Bankers Association » Spring 2024 9pabankers.comresources, professional development opportunities, products and services, and advocacy in Harrisburg and Washington, D.C., and with that comes a lot of planning and hard work behind the scenes. The PA Bankers staff members have been working over the last year to bring you some new opportunities for 2024, and I am excited to share more about them.As we teased out a few months ago, we will host our first Executive Management Conference this September. This event is the first conference intended exclusively for our C-Suite executive members, aiming to provide them with timely topics and an opportunity to network with fellow bankers. Our staff is currently planning out topics and speakers, and more information will be available on our website soon. I hope to see some of you there.Additionally, we will offer Employee Resource Group (ERG) Networking Sessions for our members, which will focus on supporting their ERGs and finding ways to connect those efforts across our banks. ERGs have been a hot topic among our DEI peer discussions, and we are excited to bring this unique opportunity to our banks later this year. More information about these new sessions will be available soon.In conclusion, 2023 was another successful year for the association, and we have each and every one of you to thank for that. Without your constant support and dedication to the association and the industry, we would not be able to make such a difference in the Pennsylvania banking industry. I look forward to another successful year with you, and I cannot wait to see what we accomplish.A Bankers exists to serve our members and assist them in their mission to support their customers, communities and the industry. In doing so, we are able to provide top-notch professional development events, DEI resources, products and services, and government relations support to nearly 120 banks in the commonwealth. As we dive further into the year, I would like to take some time to reflect on 2023 and what we were able to accomplish together. Thanks to the efforts of our bankers and Government Relations staff members, we achieved some key success on the legislative front. On the state level, we secured an exemption from state-level data privacy legislation that would unduly burden banks already subjected to federal privacy laws and halted a retailer proposal to avoid paying issuing banks for credit card transaction costs. On the federal level, we thwarted credit card routing mandate legislation “Durbin 2.0” and joined the ABA and other states in opposing agency regulatory overreach. These accomplishments would not have been possible without the support of our members on our various calls to action and through participation in our various government relations committees. We thank our members for their efforts and look forward to what we can accomplish this year.We recognized a record 22 members throughout the association’s various recognition programs, including the Women in Banking Recognition of Excellence Program, Future Under 40 Awards Program, William S. Latoff Advocacy Award and new, as of last year, DEI Leadership Award. These programs showcase the good work that our bankers do each and every day for their customers, communities and the industry. We are honored to have them as members and look forward to following along their journey in banking – whether they are veterans within the industry or have just begun their careers.Another huge success for the association was the launch of DEI TRACC in April. DEI TRACC is the roadmap we created to help guide our member banks through their DEI journey, no matter where they are in the process. PA Bankers and its DEI Advisory Group spent months researching effective methods to create a one-stop shop for banks to achieve their DEI goals. We have received good feedback on the roadmap, and we look forward to working with more banks as they navigate their DEI journeys. If you are interested in learning more about DEI TRACC or our other DEI resources, please visit our website.Finally, working with Shippensburg University, we also vastly expanded the PA Bankers Intern Program. What began as a pilot program has turned into a larger effort supporting many banks and universities/colleges across the commonwealth. In 2023, we added a custom website with resources and tools to support our banks’ intern efforts, held a Career and Leadership Skills Academy in June-August, worked with Shippensburg University to host a Banking Discovery Externship Program, and held a Careers in Banking Informational Virtual Session for college students to hear from bankers on what it is like to work in the industry. By adding these resources, we hope to assist our members as they recruit the next generation – something that is not always easy. If you have not taken advantage of our intern resources, I would encourage you to visit our website to learn more.Coming off the heels of a successful year, we remain committed to providing our members with the best 2023 Year in ReviewThank You and A Look at What's to Comefrom the CEO to the CEODUNCAN CAMPBELLPresident & CEO PA Bankers AssociationCONTACT US: wwhipple@pabankers.comor 24/7 at plateaugroup.comNEW CREDIT PROTECTION SOLUTIONS NOW AVAILABLESIMPLE. INTEGRATED. PROFITABLE.Close more deals and give borrowers peace of mind The Plateau Group and the PA Bankers Services Corporation now oer credit enhancement and debt protection solutions just for you. Selected for PA Bankers members, these are the simplest, most proﬁtable and time-tested enhancement products that immediately add to your bottom-lines. AMA- ExcellentBEST40SARYEUSABASEDP20232024

Page 9

Page 10

10 » PA Bankers Association PA Bankers Association » Spring 2024 11pabankers.comtenONpageTEN10 Events You1. SCHOOL OF TREASURY MANAGEMENTApril 16, PA Bankers Training Room, Harrisburg, Pa.Learn sales techniques and strategies to better understand current trends and disruptions in the market and receive an overview of products and services with an emphasis on electronic, card-based and fraud prevention products.3. AGRICULTURAL BANKERS CONFERENCEApril 25, Penn Stater Conference Center, State College, Pa.Learn the latest trends in agricultural banking and gain insights on the current economy.9. YOUNG PROFESSIONALS CONFERENCESept. 23-24, Hershey Lodge & Convention Center, Hershey, Pa.Learn the keys to leadership in today's banking industry.5. PA BANKERS 2024 CONVENTIONMay 15-19, Omni Nashville Hotel, Nashville, Tenn.Experience four days packed with dynamic speakers, lively discussions about the banking industry, inspirational programs, ne dining, entertainment, community service and more.7. EXECUTIVE MANAGEMENT CONFERENCESept. 9-10, The Hotel Hershey, Hershey, Pa.Learn about industry specic topics and participate in peer exchange opportunities. This training is intended for CEOs and C-Suite bankers.2. DEI CONFERENCEApril 17-18, Hershey Lodge & Convention Center, Hershey, Pa.Hear from industry professionals as they share best practices and lessons learned in the DEI space.8. WEALTH MANAGEMENT & TRUST CONFERENCE & EXHIBITIONSept. 15-17, The Hotel Hershey, Hershey, Pa.Hear updates on trends and issues, learn from seasoned professionals and industry experts, and explore exhibitor resources.4. PA BANKERS DAY AT THE STATE CAPITOLApril 29, PA State Capitol Building, Harrisburg, Pa.Connect with key legislators to share examples of how we enhance our communities and advocate for industry priorities that serve their needs.10. LENDING CONFERENCENov. 21-22, The Hotel Hershey, Hershey, Pa.Network and learn about a variety of current lending topics.6. SCHOOLSSchool of Commercial LendingJune 9-13, Penn Stater Conference Center, State College, Pa.Dive into business development, credit structuring, the practical application of commercial lending knowledge, and client and internal communication. School of BankingJune 9-13, Penn Stater Conference Center, State College, Pa.Examine the four primary areas of banking: leadership, sales and marketing, bank environment and nance.Advanced School of BankingJuly 21-26, Penn Stater Conference Center, State College, Pa.Enhance your skills and prepare for leadership within all levels of your institution.Can'tMisswith PA Bankers This Year

Page 11

Page 12

12 » PA Bankers Association PA Bankers Association » Spring 2024 13pabankers.comcommunityCORNER1ST SUMMIT BANKEphrata National BankThese 1ST SUMMIT BANK animal lovers recently had a great time volunteering at the Humane Society of Cambria County's Cash Bash, one of the shelter’s most popular fundraising events.Ephrata National Bank announced a $3,000 Educational Improvement Tax Credit contribution to Schreiber Center for Pediatric Development's S.T.A.R.S. Preschool and Circle of Friends Academy.WelcomeSELECT VENDORS: AFFILIATE MEMBERS: • The Plateau Group, Inc. • Echelon Risk + Cyber• Empyrean Solutions• Grudi Associates• Hartman Executive Advisors• Involve Technology• Link Computer Corporation• Meriplex• Upgrade Inc.NEW TO PA BANKERScommunityCORNERFirst Citizens Community BankKish BankFirst Citizens Community Bank made a $25,000 Educational Improvement Tax Credit Program donation to Pennsylvania College of Technology to benefit the Penn College Dual Enrollment program, which enables academically qualified high school and career and technology center students to take free courses for college credit.Kish Bank raised a record-breaking grand total of over $74,800 for its 2023 Kish for the Cure campaign, an annual employee-led fundraising effort supporting local cancer-related nonprofits. ACNB Bank FNCB BankACNB Bank helped to raise funds through the Salvation Army's Red Kettle Campaign, which directly benefits those in need in Adams County. FNCB Bank employees purchased toys, warm clothes and pajamas for four families from Frances Willard Elementary School #32.Luzerne BankLuzerne Bank employees volunteered their time & participated in Hunger 101, a poverty simulation session hosted by Commission on Economic Opportunity (CEO)/Weinberg Northeast Region Food Bank. Hunger 101 is a unique, enlightening experience that helps individuals begin to understand what life is like with a shortage of money, a shortage of food and an abundance of stress. Mars Bank Mauch Chunk Trust CompanyMars Bank's staff and customers donated to Thanksgiving on Every Table and Inspired Hearts and Hands.Mauch Chunk Trust Company is a proud sponsor of the 2024 North Schuylkill Spartan Games, an event designed to promote athletics and competition to students with disabilities.

Page 13

Page 14

Page 15

Page 16

16 » PA Bankers Association PA Bankers Association » Spring 2024 17pabankers.comfeatureARTICLEHighlightsHighlightsof 2023Celebrating Our MembersLast year, we celebrated 22 individuals for their commitment to advocacy, their communities and the industry.James V. Dionise, Mars BankChampion for Women Award (Financial Institution Member)Paula Barron, Tompkins Community BankChampion for Women Award (Affiliate Member)Paul Mattaini, Barley SnyderThe Patricia A. Husic Woman of Influence AwardMary Cummings, Esq., FNCB BankShawn Walker, Northwest BankCarl Buchholz, WSFS Bank Eva Jovanovic, First Commonwealth BankSteven Daniels, Wayne BankJames Li, Penn Community BankJeffrey Drobins, Peoples Security Bank & Trust Co.Jordan Risser, Fulton BankRehema Emanuel, Dollar BankHeather Sargent, FCCBJessica Gombar, Fulton BankKaitlyn Tomlinson, First Commonwealth BankMichael Griffe, WSFS Financial Corporation Terence Young, WSFS BankEsteban Calle,First Commonwealth BankCourtney Kunkle, PeoplesBankYoung Professionals ChampionFuture Under 40Jim Dionise, Mars BankDan Schaffer, The First National Bank & Trust Co. of NewtownTomorrow’s Promise AwardAleta Heard, Bank of New York MellonWilliam S. Latoff Advocacy AwardWomen in Banking Recognition of Excellence ProgramDEI Leadership AwardFuture Under 40 Awards Program฀TOTAL SOCIAL MEDIA FOLLOWERS DEI8,112 Professional Development1,209256 312542Attendees at conferences, seminars and annual conventionAttendees at PA Bankers’ schools ABA trainings takenWebinars taken through OnCourse LearningPA Bankers Intern Program• Custom website created for PA Bankers member banks with resources and tools to support their intern efforts. • Continued support for member banks with creating an intern program if they do not already have one, as well as support recruiting interns from colleges and universities across PA. • Career and Leadership Skills Academy held June-August 2023 - 69 students from  different colleges/universities interning at PA Bankers' member banks. • Banking Discovery Externship Program held at Shippensburg University - 15 students from different institutions and majors participated. • Careers in Banking Informational Session for College Students - Virtual session held in November for college students across the commonwealth to hear from bankers on what it is like to work in banking. Government Relations• Raised  for PaBPAC with  of member banks contributing.• Reached  of 2023’s  goal, an ambitious target supported by more than  individual contributors.• Number of state issues tracked: .•  advocacy letters from bankers in Pennsylvania to federal policymakersFederal Policy• Thwarted credit card routing mandate legislation “Durbin 2.0” and joined the ABA and other states in opposing agency regulatory overreach.State Policy• Secured an exemption from state-level data privacy legislation that would unduly burden banks already subject to federal privacy laws.• Halted a retailer proposal to avoid paying issuing banks for credit card transaction costs.

Page 17

Page 18

18 » PA Bankers Association PA Bankers Association » Spring 2024 19pabankers.comOPTIONAL TOURS: Pre-registration is requiredORIGINS OF THE OPRY - *This tour will be oered twice.Thursday, May 16 » 8:45 a.m. - 12 p.m. | Saturday, May 18 » 1:15 - 4:30 p.m. | $195/person » Limited to rst 40 paid registrants."Live from Nashville Tennessee, it's the Grand Ole Opry." For nearly one hundred years, those words have opened The Opry. The Opry has launched some of the biggest country music careers and has played host to many unforgettable moments.At the Ryman Auditorium, you will discover the fascinating history behind the Opry's st permanent home. This iconic building was constructed in 1892 and became home to the Grand Ole Opry from 1943 through 1974. Next, you will travel to the Grand Ole Opry House, a purpose-built facility that has been the Opry's home for almost 50 years. At both locations, you'll get captivating behind-the-scenes stories of the longest running show in history and access to backstage locations frequented by your favorite Opry performers. For fans of country music, this is the ultimate experience.LEGENDS OF COUNTRY MUSICFriday, May 17 » 2 – 4 p.m. | $70/person » Limited to rst 50 paid registrants.Throughout its history, country music has given rise to many iconic performers. The Country Music Legends Tour provides an in-depth look at two of the most impactful players in the story of the genre: Johnny Cash and Patsy Cline. The Johnny Cash Museum, which is ranked as the number one music museum by both Forbes and Conde' Naste, features the most comprehensive collection of Johnny Cash artifacts and memorabilia in the world and tells the amazing life story of the Man in Black.Prior to her tragic death at the young age of 30, Patsy made an indelible mark on country music. The Patsy Cline Museum features hundreds of artifacts, personal belongings, videos and much more.NELSON'S GREEN BRIER DISTILLERY TOUR*Friday, May 17 » 1:30 – 4 p.m. | $150/person » Limited to rst 50 paid registrants. Must be 21 years of age to participate. A quick stop from downtown Nashville to Marathon Village takes visitors back in time as they step foot inside Nelson’s Green Brier Distillery. Digging into the past didn’t turn up skeletons and scandals for brothers Andy and Charlie Nelson; more like sour mash and stills. After discovering their triple great-grandfather was one of the most successful whiskey distillers in pre-prohibition America, the brothers vowed to revive the since-forgotten family business. If you’re into stories about sunken ships and lost gold, a woman running a distillery before women could vote and the rebirth of a business after 100 years, you’ll be sucked into the guided tour and tasting experiences oered at Nelson’s Green Brier Distillery. Sample the spirit based on the recipe for Tennessee’s oldest whiskey and two modern-day, high-rye bourbons and nish your tasting with a decadent caramel pecan liqueur.*Tennessee law requires that we perform universal I.D. checks across the board. In order to drink on the tasting, you must have a valid, unexpired driver’s license, passport or alternative, government issued, valid photo ID.featureARTICLEMay 15-19, 2024 | Omni Nashville Hotel | Nashville, Tenn.Experience four days of informative, inspirational and timely educational content, dynamic speakers, community service, networking, ne dining and entertainment during the PA Bankers 2024 Convention. • Preparing Your Balance Sheet for the Great Fed Pivot 2024 - Ryan Hayhurst, The Baker Group• Investment Banking Panel• CRA Modernization -- What Banks Need to Know and Strategic Implications - Michael Mancusi & Kara Ramsey, Arnold & Porter• Managing Your Risk Against a Ransomware Attack – Russell Sommers, Baker Tilly• Strategic Leadership for CEOs: Navigating the Future of Work and Maximizing Team Potential - Shari Simpson, Paylocity• ABA Update - Rob Nichols, American Bankers Association• Federal Reserve Update - The Honorable Michelle Bowman, Board of Governors of the Federal Reserve System• The War on Talent in Banking: 2024 Edition - Alan Kaplan, Kaplan Partners• How to Head O Regulatory Enforcement Before You Know It Is Coming - Reg Evans, Esquire, Bybel Rutledge• The AI Edge: Unlocking Articial Intelligence’s Strategic Potential for Banks - Michael Berman, NContracts• Inclusive Leadership in Turbulent Times - Michelle Staton, PA Bankers, and Dr. Paul Spradley, Dollar Bank• What Is a Fraud Risk Assessment & Why Does My Institution Need One? - Jessica Miller, Schneider Downs• Cracking the Code: Transforming Bank Data Into Actionable Insights - Amber Robinson & Kim Snyder, KlariVis• Nightmare of ALM Street: How Pennsylvania Banks Faired and What to Think About Next - Mark Fischer, PNC• Fintech Transformers: Rise of Primacy - Dave DeFazio, StrategyCorpsTOPICSKEYNOTE SPEAKERCHAMPION MINDSETOvercoming Adversity and Tenacity During Challenging TimesChaunté Lowe, Have you wondered just how much adversity you or your team can manage? As a young girl, Chaunté Lowe had a dream of becoming an Olympian. After years of hard work and determination, her dream nally came true, but she was met with challenge after challenge in her quest for a medal. In 2019, Chaunté received the devastating diagnosis of triple-negative breast cancer —which is among the most aggressive forms. She decided to bring awareness to the importance of early detection and empower others by training for the 2020 Tokyo Olympic Games — while undergoing treatment. In her powerful and inspirational story of determination, perseverance, and strength, Chaunté openly shares the valuable lessons she learned as she beat impossible odds.Visit www.pabankers.com to register today.Questions? Contact: Jackie Catalano | jcatalano@pabankers.com | (717) 255-6939.2024CONVENTIONPA Bankers Preview

Page 19

Page 20

20 » PA Bankers Association PA Bankers Association » Spring 2024 21pabankers.comgovernmentRELATIONSn 2010, the Durbin Amendment was dropped into Dodd-Frank in the dead of night, and without so much as a hearing, the government imposed restrictions and price controls on debit cards and connected checking accounts. Bankers warned that mega retailers would not pass on any savings at the checkout, and that bank customers would ultimately foot the bill in lost rewards. Both predictions have proven true, but for reasons clear only to the Federal Reserve, the government is poised to double down on this misguided policy with another 30% cut in debit interchange followed by an automatic biannual adjustment. This “one-way ratchet” will continue to hack away at debit programs every two years based on data and a formula of the Fed’s choosing, without public comment. The Fed is proposing to slash the interchange rate cap from 21 cents to around 14.4 cents—and recent research estimates that this move could reduce interchange revenue for banks by $3 billion annually. That’s essentially the equivalent of the government reaching into banks’ pockets, taking money allocated to ensuring affordable, seamless, secure banking products and services, and handing it over to the very largest retailers. Retailers will claim that they intend to pass those savings on to consumers. But as we’ve seen in the thirteen years since the original Durbin price caps took effect, those promises ring hollow. That means that the real losers in this fight will be American consumers. Not only will consumers not gain the advantage of lower prices in stores, but the Fed’s proposed changes to Regulation II will fundamentally affect the economics of what banks do—and that, in turn, affects the products and services they are able to offer their customers and communities. Banks use interchange revenue to fund free or low-cost checking accounts and other services that consumers value. Prior to the enactment of the Durbin amendment, for example, many banks offered debit card rewards programs—but those programs were eliminated when the revenue streams funding them dried up due to government price controls. These new proposed cuts to interchange revenue will have an even more dire consequence: they will undermine banks’ efforts to foster financial inclusion by providing access to the free and low-cost transaction accounts that help unbanked Americans get their foot in the door – a first but necessary step to true inclusion. Our colleagues at the CFE Fund, which oversees the Bank On initiative that ABA has proudly championed, recently wrote to the Fed to emphasize what makes the national account standards work: They were designed to address the needs of low- and moderate-income consumers (bill pay, debit card access, ATM access). They were designed to knock down the barriers that keep so many consumers outside the banking system (minimum balance, credit checks, overdraft fees). And, importantly, they were designed to be economically sustainable for banks offering the accounts. Interchange fees play an important role in that sustainability equation. If banks do not have the revenue streams to support these and other low-cost accounts, they have two options: pass the costs on to consumers or stop offering and/or marketing the product altogether. Bank On accounts are currently offered by a growing list of banks across the country. And to ensure we can continue that momentum, ABA has been working hard on behalf of its members to elevate these concerns to policymakers. But we can’t do it alone—we need your help. With the Fed recently extending the comment deadline to May 12, ABA is calling on all bankers to share how this change in regulation will affect their bank and their customers. You can send a letter easily through ABA’s grassroots platform, SecureAmericanOpportunity.com. Banks put interchange to work funding low-cost banking services that help consumers find their way into the regulated banking system—enabling them to take advantage of deposit insurance protections, build credit, and do so many other things that can only happen with a banking relationship. If the Fed’s Reg II proposal moves ahead, the very largest retailers will pocket that surplus to pad their bottom line—and consumers won’t see a penny of it. That’s a tradeoff that leaves our country poorer. ABOUT THE AUTHOR: ROB NICHOLS, PRESIDENT AND CEO, AMERICAN BANKERS ASSOCIATIONEmail Rob at nichols@aba.com. The Real Losers in the Reg II FightIWe’re Mobile! The PA Bankers App keeps you connected with PA Bankers like never before. SEE HOW YOU CAN UTILIZE THE APP BELOW:1DOWNLOAD THE FREE APP IN THE GOOGLE PLAY AND APPLE APP STORES TODAY.2345  6 78  910

Page 21

Page 22

22 » PA Bankers Association PA Bankers Association » Spring 2024 23pabankers.comNew Law Teaches Students Financial LiteracyPA Bankers congratulates Senator Chris Gebhard (R-Lebanon) on the enactment of his legislation to require high schoolers to complete a course in personal financial literacy. Beginning with the 2026-27 school year, students will gain essential knowledge on credit scores, home and auto loans, savings and investments, and planning for postsecondary education and retirement. Establishing a robust foundation in financial literacy is critical for students as they transition into adult life. One’s financial choices have lasting consequences, impacting a person’s ability to secure small business loans, buy a home, get married or start a family. House Commerce Committee Considers Data Privacy and Receives New ChairmanThe House Commerce Committee unanimously advanced HB 1201 to establish new state-level standards for consumer data privacy. PA Bankers submitted testimony and effectively advocated for a committee amendment, securing a full exemption for financial institutions, their affiliates and data subject to the federal Gramm-Leach-Bliley Act. This federal act is widely recognized as the gold standard for consumer data privacy, and it would be an undue burden on the banking industry to comply with duplicative or conflicting government rules and regulations. HB 1201 awaits further House consideration. Representative Scott Conklin (D-Centre) was named the new Chairman of the House Commerce Committee, overseeing areas such as banking, housing finance and economic development. Chairman Conklin has served in the house since 2006 and previously was an elected county commissioner. He also owns a small business. PA Bankers looks forward to working with the new chairman to ensure Pennsylvania is open for business. PA Bankers Resist Retailer Proposal to Evade Credit Card Transaction Fees, Shifting Burden onto Banks and ConsumersIn December, the House Finance Committee held a public hearing regarding a forthcoming proposal seeking to prohibit the collection of interchange, also known as swipe fees, on the sales tax portion of credit and debit card transactions. Interchange is the revenue card issuing banks receive to pay for card servicing expenses like billing statements, card issuance, customer service, fraud prevention, credit monitoring and consumer credit card rewards.The recent hearing marks the latest effort by big box retailers, spanning state legislatures nationwide, to shift their operational expenses onto financial institutions and consumers. These efforts persist despite retailers experiencing heightened sales, decreased fraud and guaranteed payments facilitated by the highly efficient and interoperable electronic payment system. It’s noteworthy that retailers already enjoy federal tax deductions for interchange expenses, which constitute approximately two percent of a transaction, and electronic payments are more cost-effective than handling cash or checks. Moreover, the Federal Reserve states that credit card transaction costs incurred by banks already surpass interchange revenues, debunking retailer claims of exorbitant card processing fees. PA Bankers ensured testimony from the Electronic Payments Coalition and partnered with other financial trade associations to actively oppose this proposal and educate lawmakers on the immense value electronic payments contribute to our economy. Although no bill was introduced by the end of the year, PA Bankers remains vigilant, striving to prevent Pennsylvania from becoming the first state in the country to approve this misguided and disruptive change. State GovernmentRelations UpdatePA BANKERS SERVICES CORPORATIONWayne WhippleVice President, Business Development(717) 255-6925wwhipple@pabankers.comCONTACT INFORMATIONWEBBER ADVISORSBrad WebberMarketing/Sales Manager(814) 695-8066 x4186bwebber@webberadvisors.comTHE BENECON GROUPClaudia Burchstead, CSFSRegional VP of Sales(888) 400-4647cburchstead@benecon.com20232024governmentRELATIONS

Page 23

Page 24

24 » PA Bankers Association PA Bankers Association » Spring 2024 25pabankers.comrecognitionROUND-UPThe 2024 Women in Banking Recognition of Excellence Program was sponsored by Schneider Downs & Co., Inc., and the winners were honored at the association’s Women in Banking Conference in March.The Patricia A. Husic Woman of Influence AwardSusan was celebrated as a change agent who has achieved success within a leadership role and displays qualities of courage, values and ethics. She demonstrates undeniable enthusiasm for the industry, her institution and the community in which she lives and works. Tomorrow’s Promise AwardAnna was recognized as a woman, aged 35 or younger, who continues to make a signicant impact in the banking eld and her community, making her “one to watch” in Pennsylvania’s banking industry. Champion for Woman Award(Aliate Member)Ariel was recognized as a seasoned professional who, through personal commitment, application and dedication, is invested in the success of others and foster growth to ensure women maximize their potential.Champion for Woman Award(Financial Institution Member)Alfreda was recognized as a seasoned professional who, through personal commitment, application and dedication, is invested in the success of others and foster growth to ensure women maximize their potential.Cgrulis2024 Women in Banking Recognition of Excellence Awards!The Women in Banking Recognition of Excellence Program acknowledges rising stars and leaders who continually "go the extra mile" to promote and inspire women to reach their full potential within the banking industry, their nancial institutions and their communities.

Page 25

Page 26

Page 27

Page 28

Page 29

Page 30

30 » PA Bankers Association PA Bankers Association » Spring 2024 31pabankers.comn the evolving landscape of the modern workplace, recognizing mental health as a cornerstone of employee well-being has become increasingly important. A company culture that prioritizes mental health contributes to the overall happiness and satisfaction of employees, enhances productivity, and fosters a resilient, high-performing workforce.In this article, we’ll highlight the importance of a workplace culture that supports mental health and explore strategies you can implement to cultivate such an environment.The Impact of Mental Health in the WorkplaceThe workplace is more than just a venue for professional tasks; it is a space where individuals spend a significant portion of their lives. Acknowledging the impact of work on mental health is essential for creating an environment where employees can thrive. A positive workplace culture that prioritizes mental health offers several benefits:Enhanced productivityEmployees who feel supported in their mental health are more likely to be engaged and productive. A positive workplace culture promotes a sense of purpose and fulfillment, translating into improved performance.Reduced absenteeismMental health challenges can contribute to absenteeism. A supportive workplace culture helps mitigate stressors, reducing the likelihood of prolonged absences and enhancing overall attendance.Increased employee retentionOrganizations that prioritize mental health are more attractive to top talent. Employees increasingly seek workplaces that value their well-being. A positive culture can contribute to talent acquisition and retention efforts.Boosted innovation and creativityA mentally healthy workplace encourages open communication and collaboration. This, in turn, fosters an environment where innovative ideas can flourish, as employees feel comfortable expressing their thoughts without fear of judgment.Fostering a Supportive Workplace CultureConsider the following from the American Psychological Association’s 2023 Work in America survey:• 92% of workers said it’s very or somewhat important to work for an organization that values their emotional and psychological well-being.• The same percentage of workers also said it’s very or somewhat important to work for an organization that provides support for employee mental health.In the dynamic landscape of contemporary workplaces, fostering a culture that prioritizes mental health is no longer just an option but a strategic priority. The understanding that employee well-being directly influences productivity, retention, and overall organizational success has led to a paradigm shift in how companies approach their internal culture.Consider the following strategies for building and sustaining a company culture that supports the mental health of your employees:Establish education and awareness programsMental health education programs can help raise awareness and destigmatize mental health challenges. These programs may include workshops, seminars, and resources that provide employees with information on recognizing and addressing mental health issues.IvendorARTICLESEmbrace flexible work arrangementsEmployers can recognize the diverse needs of employees by offering flexible work arrangements, such as remote work, flexible schedules, or compressed workweeks. Providing autonomy empowers employees to manage their work in a way that suits their individual needs and promotes a healthier work-life balance.Offer employee assistance programs (EAPs)EAPs provide confidential counseling and support services, which can be instrumental in helping employees navigate personal and professional challenges that impact their mental well-being.Promote work-life balanceA culture that values work-life balance often discourages excessive overtime, sets clear expectations regarding after-hours communication, and promotes the importance of taking breaks to recharge. A healthy balance contributes to reduced stress and burnout.Train leadership on mental healthManagers and supervisors can be trained to recognize the signs of mental illness, excessive workplace stress, workplace bullying, and fatigue. Moreover, they should be trained to handle potentially difficult conversations with employees surrounding their mental health. The goal is for leadership to be prepared to speak openly about mental well-being rather than avoiding the topic.Reduce the stigmaEmployers can build trust with employees by showing them they won’t be fired or punished for mental health issues. They can do this by openly discussing mental health in the workplace, encouraging self-care, and allowing flexible scheduling for employees to get mental health treatment. Additionally, employers can educate employees on improving their mental health with training on self-care, stress management, and mental health issues.Create a positive physical environmentEmployers can design a physical workplace with employee well-being in mind by incorporating elements that contribute to a positive atmosphere, such as natural light, comfortable seating, and relaxation areas.Support caregiver responsibilitiesAn increasing number of employees are balancing their work and care responsibilities. Caregiving varies as the receiver of care may be a child, parent, or other family member. While caregivers often focus on others, they should also care for their mental health. Employers can help verbalize the value of caregiving to foster a workplace culture that supports and welcomes caregivers or encourage support groups as an outlet to connect with others.Mental health challenges are prevalent in the workplace. Fortunately, as an employer, you have an opportunity to support and foster mentally healthy workplaces.SummaryEmployers have the potential to create a working environment where employees feel supported, valued, and empowered to prioritize their mental well-being. Ultimately, this can lead to a more resilient, engaged, and high-performing workforce.Contact your Leavitt Group insurance advisor for more guidance on supporting the mental health of your employees.www.poweredbyevolv.com888.311.7248 ext. 3009nschlachter@poweredbyevolv.comRCKTMobile POSAdvanced, Secure,Convenient Mobile PaymentsAcceptance RCKT is the perfect companion device, puttingthe power of advanced, secure, and convenientEMV mobile payments into the palm of yourhand.EvolvPayMicro PromoNo Cost ProcessingSolutionEvolv, Inc, doing business as Evolv is a registered Independent Sales Organization of Wells Fargo Bank N.A., Concord, CA and Fifth Third Bank, N.A., Cincinnati, OHTWO FREEBLUETOOTH READERSSPECIAL OFFERPrioritizingMental Healthin the WorkplaceABOUT THE AUTHOR: WEBBER ADVISORS20232024

Page 31

Page 32

32 » PA Bankers Association PA Bankers Association » Spring 2024 33pabankers.comEmbracing technological advancements: shaping the future of banking The percentage of small banks looking to grow their deposits soared to 72% in 2023 from 41% the previous year. Banks that want to get ahead need to maximize spend on technology, but small banks run on restricted budgets, posing a serious threat to their ability to compete. A more feasible option is to consider partnering with FinTech companies to employ their technology and drive deposits. Based on a survey conducted in 2021, nearly two-thirds of all banks and credit unions entered into at least one FinTech partnership since 2019 and attested that the partnership was crucial to their success. Technology will remain front and center of the banking industry in the years to come. Banks that use technology well can enhance their business models, but it needs to start with a clear customer-focused strategy. Hartman Executive Advisors can help you align your IT strategy to your business strategy, create a business case, perform proper diligence and implement a plan to help you grow deposits. Contact the banking experts at Hartman Executive Advisors to schedule a free consultation.ABOUT THE AUTHOR: WADE BARNES, FINANCIAL SERVICES INDUSTRY LEAD, HARTMAN EXECUTIVE ADVISORSvendorARTICLESccording to an S&P Global Report, 90% of surveyed banks that partnered with FinTech companies said they expected to reach a double-digit increase in total deposits, far outpacing U.S. commercial banks of similar size. In the banking industry, technology has a major influence on who surfaces as the winners and losers. One of the simplest ways a bank can grow their deposits is through partnerships with FinTech Companies. Here’s why. Tech-powered growth: enhancing banking deposits Digital banking platforms: empowering customers Without sufficient deposits by bank members, banks face a bleak future. Online and mobile checking deposits offer convenience, reduced transportation costs, better availability, the ability to consolidate banking relationships, and more. Consumers can efficiently manage their accounts, make payments, and even apply for loans through these platforms on their own schedules. Customers conveniently access their accounts through advanced, user-friendly websites, supported by apps that assist them in locating what they’re looking for. The inclusion of smart and money-saving functions empowers them to manage their finances. With constant access to their bank’s information, users can monitor their accounts as often as they like. Unleashing the power of data analytics and AI Artificial intelligence (AI) in its broadest sense helps banks attract deposits in various ways – through robotic process automation, machine learning, predictive analytics and deep learning. The utilization of AI-powered chatbots and virtual assistants enhances customer service by providing prompt and helpful responses. Moreover, machine learning helps banks leverage analytics to convert best-fit prospects into loyal customers. Bank managers deploy machine learning to identify growth opportunities, create targeted marketing campaigns, and personalize their offerings. In pilot testing conducted with multiple banks, McKinsey noticed that relationship managers who piloted client acquisition programs using machine learning had 9% portfolio growth over a 12-month period, in contrast to control groups who saw only 5% growth. Banks that adopted machine learning usually also retained and expanded their customer bases through value-added activities, innovation, and informed business decisions.Strengthening security measures Banks that run on digital platforms need robust security to protect customer assets. According to a report by LexisNexis, digital lenders are seeing a 143% year-over-year increase in monthly fraud. FinTech companies help you secure funds through innovations such as advanced encryption techniques, multi-factor authentication, and biometric identification systems. Voice biometrics, for example, analyzes more than 1,000 voice characteristics to authenticate users. Bank managers also use machine learning algorithms to detect and respond to security threats in real-time. Their primary objective is to leverage technology to implement robust security measures, safeguard customer information, and mitigate the risks associated with cyber threats and fraudulent activities. Fostering FinTech partnerships Banks have distinct advantages over FinTech companies. These include a broad customer base; a more stable and tested funding model; multiple touch points with their customers; and regulation. FinTech companies, on the other hand, outpace them with their speed to extend loans, their ability to attract top technology talent, and their significantly lower operational expenses. By forming partnerships with FinTech startups, banks can harness their innovations to retain and expand their customer base, thus capitalizing on the best of both worlds. ADigital Disruption:Boosting Banking DepositsThrough TechnologyBoth events will be in Oklahoma City, OK Cost: $595 eachBaker ALM SchoolAugust 20-21, 2024Baker Bond SchoolApril 9-10, 2024The Baker Group continues to use our expertise to share the latest information to help empower our clients and the communities they serve.The Baker Group’s Educational SchoolsFor more information, scan the QR code or go to GoBaker.com/alm-school.For more information, scan the QR code or go to GoBaker.com/bond-school.www.GoBaker.com | 800.937.2257 Oklahoma City, OK | Austin, TX | Long Island, NYSalt Lake City, UT | Springfield, IL | Member: FINRA and SIPC The Baker Group is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have ﬁnal authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org.

Page 33

Page 34

34 » PA Bankers Association PA Bankers Association » Spring 2024 35pabankers.com6. Fresh Perspective – A co-sourced or outsourced provider has a fresh view of the institution and can help to introduce value-add changes. The internal audit partner can help to explore and implement those changes and educate stakeholders on the possibilities and impacts of the changes. An outside provider doesn’t have to fear stakeholder pushback and can help to bring new thoughts and suggested changes to the table. If your institution is considering outsourcing or co-sourcing your internal audit function, we welcome you to contact us to discuss how we can help you with your internal audit and risk management needs. ABOUT THE AUTHOR: JESSICA MILLER, DIRECTOR RISK ADVISORY SERVICES, SCHNEIDER DOWNS & CO., INC.vendorARTICLEShe banking industry is facing increasing financial pressures, regulatory scrutiny and stakeholder expectations; therefore, financial institutions are relying on their internal audit departments for help assessing and mitigating risks within the institution. Some financial institutions have discovered that their internal audit departments do not have sufficient staffing or expertise to meet or keep up with increasing regulatory demands. Finding an internal audit partner to help provide co-sourcing or outsourcing support can be crucial to help with gaps in staffing, expertise and completion of the internal audit plan.1. Expertise – A co-sourced or outsourced provider brings a wide range of skillsets, as along with deep industry knowledge. A provider with significant expertise in the industry will help to identify and mitigate emerging risks within the organization, as well as within the highly regulated industry. Also, a co-sourced or outsourced provider often works with a wide range of clientele and can provide more far-reaching information on leading industry best practices. 2. Staffing Shortages – The internal audit profession was not except from the Great Resignation and many institutions are still facing the aftermath of staffing shortages. Outsourcing an internal audit function is one way to fill the staffing gaps, as many firms have a deep pool of industry experts that are ready to help your institution. Co-sourcing is another great option that allows you to still have knowledgeable experts in-house but gives them the additional support needed to keep up with industry demands. The right partner will be able to aid your institution with professionals ranging from newly graduated college staff to professionals with extensive experience, therefore allowing any type of staffing gap to be filled with the right resource. 3. Cost-Savings – Outsourcing and co-sourcing internal audit services can provide cost savings for an institution. In maintaining a full in-house internal audit department staffing model, your institution has to fund salaries, benefits, and training, as well as technology and infrastructure costs. The benefit of having an outsource or co-sourced provider is that costs are budgeted on a yearly, hourly or project-by-project basis, thereby reducing costs to only those services you truly need from the provider. Plus, with the shift to more work being done virtually, many audit engagements can be completed in a remote manner, which helps save on travel-related expenses. This also gives you the option to select an outsourced or co-sourced provider outside of your geographical location, if needed, without regard for travel issues. 4. Additional Value-Add Services – Many institutions look to larger audit and accounting firms when selecting a co-sourced or outsourced partner. These firms offer a variety of other services that can benefit the institution. For example, you may decide to co-source or outsource FDICIA or Sarbanes-Oxley testing to a partner firm, and, in later years, add supplemental IT audits or tax services with that same partner firm. Institutions can rest easy knowing that skilled resources are available with a multitude of offerings for their current and future needs. 5. Independence – One of the toughest issues with a full in-house audit function is independence. Internal auditors are still employees of the institution, therefore management could have an influence over the work that internal audit performs. An outsourced or co-sourced partner adds an extra layer of independence that employees of the institution might not fully receive. What are the Benefits of an Outsourced or Co-sourced Audit Provider?T

Page 35

Page 36

36 » PA Bankers Association PA Bankers Association » Spring 2024 37pabankers.comvendorARTICLES20232024ABOUT THE AUTHOR: ROBERT J. JOYCE, VICE PRESIDENT, THE PLATEAU GROUP, INC.Robert J. Joyce earned his Bachelor of Science Degree from The Pennsylvania State University’s Smeal College of Business, University Park, PA. Additionally, he completed graduate studies in Finance at the University of Scranton and earned his Diploma of Graduation from The Stonier Graduate School of Banking. Prior to his current position with The Plateau Group, Inc. he served as Insurance Officer at National Westminster Bank and as Vice President of First Eastern Bank, N. A. and President of First Eastern Agency Services.Strengthening Financial Security:The Indispensability of Credit Insurance in Bankingn my four decades of navigating the intricate landscape of banking and insurance, one unmistakable truth stands out – the instrumental role insurance plays in mitigating losses for financial institutions. This symbiotic relationship between the banking and insurance sectors yields substantial benefits for both institutions and their clientele.Banks consistently leverage insurance as a pivotal tool to mitigate losses, deriving significant advantages from insurance claims proceeds. Simultaneously, customers routinely transfer risks associated with personal and small business perils to insurers. It is within this strategic framework that banks systematically manage risks, offloading them from their balance sheets through various insurance mechanisms.A shared objective for both banks and clients is the avoidance of repossessions and foreclosures, particularly in instances of payment delinquency due to unforeseen events such as injury, sickness, or death. Enter Credit Insurance, a strategic solution that provides banks with protection against charge-offs. This comprehensive coverage not only shields loans for customers but adeptly shifts the risk from both the borrower and the lender to the insurer.The reduction of credit risk becomes palpable when borrowers opt for credit life or credit disability insurance from the lender. This choice incurs minimal costs for the bank and often results in fee income earned from enrolling borrowers into thoughtfully designed group plans.In Pennsylvania, shifts in credit-related insurance have been influenced by regulatory measures, including the decrement of life insurance rates by the Pennsylvania Insurance Department. Legislative acts, such as Pennsylvania Act 55 and HOEPA, have shaped product designs away from single premium plans. Instead, an emphasis on monthly pay options has yielded positive outcomes, including lower monthly loan payments.Local licensed lenders actively embrace credit insurance service fees, recognizing credit insurance as a lucrative income-producing opportunity. Diverse insurance products cater to different types of loans, ranging from single premium group credit life and credit disability insurance for non-real estate secured loans to closed-end monthly outstanding balance products for home equity loans.In tandem, Debt Protection stands as an alternative to credit insurance, with banks typically transferring risks associated with this payment protection option via insurance. Notably, consumer satisfaction, as indicated by a Federal Reserve survey, reflects a favorable opinion of credit life and credit disability insurance.Historically, over half of group premiums earned by insurers in Pennsylvania were paid out to lenders in the form of claim payments on loans. This translates to millions of dollars in charge-offs that were successfully avoided.In essence, credit insurance emerges not only as a means to diminish credit risk but as a valuable service to underinsured borrowers. Simultaneously, it generates fee income for banks, fostering satisfaction among both consumers and bankers alike. The strategic adoption of credit insurance thus stands as a prudent approach for financial institutions aiming to safeguard their interests and enhance customer security in the face of unforeseen events.IRegulatory Compliance Monitoring + TrainingVulnerability Testing (Internal + external)BSA/AML Model ValidationsBSA/AML ExaminationsRisk Assessment + Gap AnalysisInternal Audit Plans + TestingTrust Department ExamsFraud ExamsInformation Technology ExamsSocial Engineering TestingSOX Documentation/TestingFDICIA Documentation/TestingDebbi S. Fetter, CFIRS, CISA, CFSA, CRCM, CCSA, CERPJeffrey J. Johns, CISA, CRISC, CDPSEThomas R. Strause, CIA, CFE, CBA, CFSA, CISA, CICAHR Consultingwww.herbein.com I 1.855.HC.TodayRisk ManagementRecruitment/Retention HR AuditsHR OutsourcingInterim HRSuccession PlanningExecutive SearchExecutive CompensationAffirmative Action Plan PreparationLeadership Coaching and DevelopmentCompensation StudiesA GREAT TEAM SERVINGEXTRAORDINARY BANKSLaurel E. Cline Karen H. DiGioiaLori L. GlivaScott G. Smith

Page 37

Page 38

38 » PA Bankers Association PA Bankers Association » Spring 2024 39pabankers.comvendorARTICLEShe banking industry is constantly evolving, with institutions adapting to consumer needs, market dynamics, and technological advancements. As part of this ongoing transformation, financial institutions may need to make strategic decisions about closing a branch in a particular market.When branch closures happen, there is usually a receiver branch. A receiver branch refers to a situation in which a bank or credit union closes one of its branches in a particular market and redirects all consumers and operations to another existing bank location. This consolidation of services aims to streamline operations, optimize resources, and ensure continued access to banking services for consumers in the affected market. The receiver branch serves as the primary point of contact for consumers who previously utilized the closed branch, providing them with the same range of services and support during the transition and beyond.Closures are often met with concern from consumers and the community. This is why it’s essential for financial institutions to recognize the significance of refreshing the receiver branch and show that the closure is not a sign of weakness, but rather a strategic move to offer more. While increasing sales and cutting costs have always been the main competitive strategies for growing the bottom line, improving gross margins by increasing differentiation, is now becoming more important than ever and plays a key role in receiver branches.These are the top motives for refreshing the receiver branch and establishing uniqueness when closing a branch office in a market:Maintaining Consumer TrustClosing a branch office can create uncertainty and anxiety among consumers who have come to rely on the convenience and accessibility of that branch. To maintain trust and confidence, it is vital for the bank to refresh the receiver branch by enhancing its appearance, services, and staff. A modernized, consumer-centric branch can help reassure existing consumers and attract new ones, showing that the financial institution is committed to the long-term success of that location. A well-kept and modern branch conveys an image of professionalism and credibility. Consumers are more likely to trust a financial institution that invests in maintaining a clean, modern, and aesthetically pleasing environment, as it reflects a commitment to quality, service, and the community.TEnhancing Consumer ServiceClosing a branch can create an influx of consumers at the receiver branch. To manage this surge effectively, financial institutions should enhance the branch environment to provide improved consumer service processes and flow. While this might involve expanding operating hours, optimizing queue management, and training staff to handle increased traffic efficiently, it should also include creating an inviting, secure, and relaxed environment. Comfortable seating areas, well-lit spaces, updated flooring, casework, and wall coverings all go a long way in creating a welcoming environment for an enhanced consumer experience. Consumers are no longer only looking for a certain product or service, they also are looking for an in-store experience.Meeting Evolving Consumer NeedsConsumer preferences are in constant flux, with change commonly driven by rapid technological advancements and shifting demographics. Refreshing the receiver branch allows the financial institution to align with these evolving needs. This includes implementing or upgrading digital marketing, providing self-service options, and creating a welcoming, tech-savvy environment. By adapting to the changing landscape, financial institutions can better serve their consumer base and remain relevant in the market.Retaining Skilled EmployeesWhen a branch office is closed, some employees may face relocation or job reassignment to the receiver branch. To retain valuable, experienced staff, it is important to create an attractive work environment. This not only includes providing opportunities for professional development, a positive work culture and incentives, but also providing a physically pleasing work atmosphere that promotes health and well-being. When employees feel comfortable and inspired by their surroundings, they are more likely to perform at their best, enjoy coming to work, and feel more content in their roles. A motivated and skilled workforce is vital for maintaining the financial institution’s service quality and reputation.Revitalizing the BrandRefreshing branding ensures cohesiveness and consistency in messaging, visuals, and the consumer experience. This consistency can lead to greater consumer trust because they know what to expect when they interact with any branch within the rebranded network.When consumers see that a branch has been revitalized and rebranded, they will have more confidence in its stability and commitment to the market. It sends a message to the community that the branch is part of a stronger and more established entity. Appropriate and consistent branding also helps to gain a competitive edge within the market. It positions the branch to compete more effectively with other financial institutions and stay relevant in a rapidly evolving industry. A consumer is more loyal when there is a strong brand, making them more likely to purchase your products and services as the market continues to grow and become more competitive.ConclusionYour branch is the most visible and non-intrusive marketing tool you have. If you decide to close a branch in a market, it is imperative to recognize the importance of refreshing the receiver branch. This strategic move helps maintain consumer trust, enhance the consumer experience, adapt to changing needs, retain skilled employees, and revitalize the corporate brand. By taking these steps, financial institutions can minimize the negative impact of branch closures and ensure that their presence in the market remains strong and relevant. Your branches should tell the story of your brand, if you don’t tell the story, the consumer will!Branch Optimization:The Art of Refreshing Receiver Branches for Success2023202 4ABOUT THE AUTHOR: KEVIN POIROT, EXECUTIVE VICE PRESIDENT, PWCAMPBELL BRANDED ENVIRONMENTSKevin Poirot joined PWCampbell in 1998. In his role as Executive Vice President of the Branded Environments division, Kevin oversees all business operations and strategies for branding, environmental graphics, merchandising and digital marketing products and services for the financial industry.

Page 39

Page 40

40 » PA Bankers Association PA Bankers Association » Spring 2024 41pabankers.comvendorARTICLESou’re a pro at managing third-party risk, but how do you deal with fourth-party risk? Your vendors are likely farming out critical activities to other vendors.It’s all a part of ordinary business operations. Just as you want to maximize efficiencies, so do your vendors. However, your vendors’ contracts with fourth parties introduce additional operational, financial, cybersecurity, and compliance risks for your financial institution.Financial institutions often wonder how closely they need to monitor fourth-party risk. What are the regulatory expectations? How far down the ladder does it go? Do you need to evaluate fifth-party and sixth-party vendors?Thankfully, the recent Interagency Guidance on Third-Party Relationships: Risk Management answers the above questions.What the regulators expect from fourth-party risk managementFinancial institutions are responsible for having a strong vendor management program – and a large part of having a robust vendor management program is ensuring that your vendors have one as well. Regulators don’t expect you to follow up with all your vendors’ vendors. They expect you to ensure your vendors are properly managing vendor risk.The role of contract management in managing fourth-party riskContract provisions play a vital role in managing fourth-party risk. As a financial institution, you need access to information about your vendor’s third-party risk management (TPRM) program.Regulators expect two essential items to be included in contracts with third-party vendors to ensure their vendor oversight is sufficient.First, as part of planning and vendor due diligence, you must stipulate in your contracts that vendors must inform your financial institution if they outsource a critical function to a thirdparty. Second, you need a contract that requires vendors to inform you if they change critical vendors. The essence of quality vendor management begins with quality contract management.You should also evaluate the strength of critical vendors’ TPRM programs. How do they perform due diligence on third parties? How is their vendor monitoring program? Do they have foreign-based third-party vendors that pose additional compliance risks? How do they manage these relationships?Regulators have recognized that for financial institutions, it would be nearly impossible to manage fourth parties themselves. They don’t have a direct contractual relationship with these parties and lack leverage over them.At the same time, financial institutions have the power to demand that their vendors control this risk in the contract process. You should focus on evaluating your vendors’ third-party risk management policies and processes and not on managing fourth-party risk directly.SOC 2 reports and fourth-party riskOne of the best tools in your arsenal for evaluating your vendors’ TPRM program is their SOC 2 report.SSAE 18 audits offer the following on your vendors’ vendors:Scope: SSAE 18 mandates that a vendor clearly outlines the roles and duties of every third-party vendor it engages. This includes detailing the significance of each vendor, pinpointing critical vendors and assessing their dependability through service-level agreements (SLAs), contractual terms, warranties, and guarantees.Performance Review: Vendors need to evaluate the performance of their third parties. This can be achieved by verifying the accuracy of output reports, conducting on-site inspections, and using questionnaires. It is crucial to keep a record of each measure – if it’s not documented, it didn’t happen.Do You Need to Manage Fourth-Party Risk?YAudit Evaluation: Vendors must establish a procedure for examining their third-party vendors' audits and SSAE reports and communicate these findings to management. It is particularly vital to assess how the vendor addresses issues identified in these reports, as this provides insight into the reliability and effectiveness of their vendors.Monitoring: It is essential for a vendor to scrutinize customer complaints, reports from regulatory agencies, and information concerning financial status, legal disputes, shifts in key personnel, and other relevant data. Vigilant monitoring is necessary to identify any significant issues.Final thoughtsWithout regular vendor oversight, particularly in cyber monitoring, banks leave themselves vulnerable to unforeseen third- and fourth-party risks. Financial institutions that allocate resources to top-tier vendor management programs actively mitigate risk and position themselves to capitalize on growth opportunities from third-party collaborations.Both your institution and vendors must have robust TPRM programs in place.ABOUT THE AUTHOR: MICHAEL BERMAN, FOUNDER & CEO, NCONTRACTSMichael Berman is the founder and CEO of Ncontracts, a leading provider of risk management and compliance solutions. His extensive background in working at Regtech and Fintech firms on legal and regulatory matters has afforded him unique insights into solving operational risk management challenges and drives Ncontracts’ mission to efficiently and effectively manage operational risk. 20232024In today’s rapidly changing environment, Schneider Downs’ Risk Advisory practice is well-equipped to shed new light on the risks that ﬁnancial institutions face. To learn more about the services we oer to the ﬁnancial services industry, visit www.schneiderdowns.com.Big thinking about risk management.ACCESS COLLABORATIVE LENDING SOLUTIONS: Expand Your Loan and Lease Oerings for Ag & Forestry ClientsAgri-Access specializes in secondary market ﬁnancing for agriculture, aquaculture, forest products and rural land, providing capital for community banks across the nation.Visit our website at agri-access.comMatthew SenterVice President – Lender RelationsPhone: 507-810-0837matthew.senter@agri-access.com

Page 41

Page 42

Learn how budgeng for top-er support andguidance can save your program money.That’s Bankers Alliance.info@bankersalliance.org or (833) 683-0701.Holding Company of Compliance Allianceand Review AllianceWhat if outsourcing for guidance, research, tools, annual training, special projects, staﬃng, even complete CMS oversight is really the answer for your compliance budget issues?20232024Have you felt ignored?Trusts and wealth management is oen outside normal oversight with operaonal needs and regulatory issues all their own. When quesons arise on your instuonal accounts, turn to Compliance Alliance.Is trust an area of weakness?C/A is your trust and wealth management consultant team. Our manual, policies, and worksheets will bolster your conﬁdence, creang a more resilient program for your customers and staﬀ.What makes us diﬀerent?Our ability to understand and be conversant on both the banking side as well as the federal regulatory side of the trust/ wealth management arena makes us disnctly qualiﬁed to oﬀer this service.Standalone Trust ToolsCompliance Alliance introduces Trust Tools—an unprecedentedpackage of regulatory compliance tools with a singular focus: to be the compliance support you need.Talk with yourtrust clientsand be sureyour policies and proceduresare solid.•TRUST PROGRAMC/A brings trust banking & compliance together.PNC’S FINANCIAL INSTITUTIONS GROUP IMPROVE YOUR COMPETITIVE POSITION Leverage our expertise in capital issuance and M&A through our broad distribution network of ﬁnancial institution relationships Lower cost of interest rate risk management Enhance product offerings and create opportunities for fee income Gain access to capital markets–based solutions and technology Optimize investment portfolio performance Strengthen and diversify your liquidity positionCollaborate with an experienced team of ﬁnancial professionals who can help:If you have questions or inquiries, please contact sheryl.jordan@pnc.comPNC is a registered mark of The PNC Financial Services Group, Inc. (“PNC”). Bank deposit, treasury management and lending products and services are provided by PNC Bank, National Association (“PNC Bank”), a wholly owned subsidiary of PNC and Member FDIC. Investment banking and capital markets activities are conducted by PNC through its subsidiaries PNC Bank, PNC Capital Markets LLC (including through its trade name, PNC FIG Advisory), Harris Williams LLC, and Solebury Capital LLC. Services such as public ﬁnance investment banking services, securities underwriting, and securities sales and trading are provided by PNC Capital Markets LLC and PNC FIG Advisory. Mergers & acquisitions advisory and related services are provided by PNC Capital Markets LLC, PNC FIG Advisory, Fortis Advisors LLC and Harris Williams LLC. PNC Capital Markets LLC, Harris Williams LLC, and Solebury Capital LLC are registered broker-dealers and members of FINRA and SIPC. Important Investor Information – Securities, insurance, foreign exchange, and derivative products are: Not FDIC Insured • Not Bank Guaranteed • Not A Deposit Not Insured By Any Federal Government Agency • May Lose Value Lending, leasing and equity products and services, as well as certain other banking products and services, require credit approval. ©2024 The PNC Financial Services Group, Inc. All rights reserved. CIB CM PDF 0224-007-241000320232024

Page 43

Page 44

44 » PA Bankers Association PA Bankers Association » Spring 2024 45pabankers.comGLOBALVISION SYSTEMS, INC.Anti-Money LaunderingCatherine Lew, (818) 998-7851 x128clew@gv-systems.comINNOVATIVE FINANCING SOLUTIONS, LLC.Your Trusted SBA/USDA ExpertsMichael D. Ryan, (610) 733-9955mryan@innovfs.netEVOLV*Merchant Processing, Search EngineOptimization, Website Design and SocialMedia ManagementNellie Schlachter, (888) 311-7248x3009nschlachter@poweredbyevolv.comPAYLOCITY*HCM Solutions andEngagement SoftwareLisa DeJoy, (717) 303-7663ldejoy@paylocity.comDEALERTRACK COLLATERALMANAGEMENT SERVICES, INC.Electronic Lien and Title ProgramWayne Whipple, (717) 255-6925wwhipple@pabankers.comMARKETSCANImmediate Financial Impact Through NegotiationsWayne Whipple, (717) 255-6925wwhipple@pabankers.comDELUXE CORPORATION*Check ProgramTodd Wroblewski, (724) 625-5599todd.wroblewski@deluxe.comINVESTORS TITLEINSURANCE COMPANYMulti-Bank Owned TitleInsurance ProgramKaren Barnett, (419) 577-5900kbarnett@invtitle.comKLARIVIS*Data Analytics Solution Designed by Bankers for BankersAmber Robinson, (603) 860-3162amberrobinson@klarivis.comWEBBER ADVISORS*Multiple Medical, Drug, Dental &Vision Options and EB SolutionsBrad Webber, (814) 695-8066bwebber@lrwebber.comNCONTRACTS*Integrated Compliance, Vendor and Risk Management, Board Encouragement PlatformKara D'Argenzio, (412) 370-4391kara.dargenzio@ncontracts.comNFP EXECUTIVE BENEFITS*BOLI, Executive Compensationand Long-Term CareDavid Shoemaker, CPA/PFS, CFP®(901) 754-4924david.shoemaker@nfp.comPNC FIRSTPreferred Derivatives ProgramAmber L. Evanco, (724) 689-2178amber.evanco@pnc.comASSET EXCHANGEOnline Marketplace Jack Payne, 610-295-5555jack.payne@pnc.comPWCAMPBELL*Design-build, Branch Experience and Consulting ServicesErin Campbell, (800) 253-7430erin.campbell@pwcampbell.comVIKAR TECHNOLOGIES, INC.Digital Account Opening and Lending Solutions: One View, One Vendor, One VikarNancy Schneier, (973) 495-4835nancy@vikartech.comNEW ERA TECHNOLOGY*Managed Service Provider for Voiceand Data CommunicationMichael Foglia, (973) 503-5809michael.foglia@neweratech.comVendor 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.BANK HEALTH CARECONSORTIUM OF PA*A Unique Health Care Alternative for PA-Based Financial Institutions and Affiliate Members of the PA Bankers AssociationWayne Whipple, (717) 255-6925wwhipple@pabankers.comPA Bankers Services Corporation Select Vendors Provide PA Bankers Members Savings, Service and Quality*Vendors provide products and services to both financial institution members and Affiliate Members. As of 3/8/2024ABA INSURANCE SERVICES*Bond, D&O, Cyber Insurance, andEmployment Practices LiabilityPatricia Williams, (216) 220-1280pwilliams@abais.comBANKERS ALLIANCE*A Family of Bank Compliance ServicesThat Includes Compliance Alliance,Review Alliance andVirtual Compliance OfficerWayne Whipple, (717) 255-6925wwhipple@pabankers.comBANZAI!*Interactive, Award-Winning CourseTeaching Students Real-WorldFinance, No Upfront CostKatie Rigby, (801) 821-9055katie@banzai.orgCOMMONWEALTH CHARITABLEMANAGEMENT*Application and Administrationof EITC ProgramsCristine Clayton, (570) 278-3800cclayton@commonwealthcharitable.orgBANKTALENTHQ*Diversity is Essential -Find Talent in all the Right PlacesWayne Whipple, (717) 255-6925wwhipple@pabankers.comBANK PERFORMANCE REPORT*A Proven Tool for Improving SuccessQuarterly performance reports subscription available for all states; custom/historical reports upon requestWayne Whipple, (717) 255-6925wwhipple@pabankers.comCORNERSTONE ADVISORS*Core, Debit EFT, Card Program, LoanOrigination, Bill Pay, Mobile Banking &ATM Contract NegotiationJennifer Wagner, (480) 425-5204jwagner@crnrstone.comCHERRY BEKAERT*Outsourced Internal Auditingand Risk Management ServicesNicole Lloyd, (717) 903-3142nicole.lloyd@cbh.comAPPI ENERGY*Electricity and Natural Gas Procurement Services, Utilities Management PlatformKathryn S. Allen, (667) 330-1161KAllen@APPIEnergy.comTHE BAKER GROUPAsset/Liability ManagementSoftware and ServicesCharles Amis, (405) 415-7231Charlie@gobaker.comTHE PLATEAU GROUP, INC.Tailored Credit Enhancement and Debt Protection SolutionsWayne Whipple, (717) 255-6925wwhipple@pabankers.com

Page 45

Page 46

Page 47

Page 48

                                         240209_Snodgrass_Full-Page-Ads_Why-To-Why-Not_Revised_2024_v5.pdf 51 2/9/24 2:21 PM