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2 » PA Bankers Association pabankers.comAs examiner scruny expands and you focus on your day-to-day, let Review Alliance pick up the slack for your CMS. We’re here to help.Call our teams at (833) 683-0701 or info@bankersalliance.orgData colleconMonthly reporngSpecialized scrubsIndependent tesngEmerging issuesVirtual Compliance OfficersOutsourcing tasks based on your needsis a proven plan for growth and profitability for 2022.CMYCMMYCYCMYK20222023
PA Bankers Association » Summer 2022 3BRINGING TIMELY NEWS AND INFORMATION TO THE MEMBERSHIP OF THE PA BANKERSthisISSUEIN EVERY ISSUEFEATURES6 Chairman’s Insights10 Ten on Page Ten16 From the CEO to the CEO18 Community Corner32 From Your Peers36 Government Relations44 A Look Ahead48 Vendor Articles24 PA Bankers 2022 Convention Wrap-up26 Congratulations to our 2022 50-Year Club Inductees!28 Diversity, Equity and Inclusion Roadmap Update42 In Memoriam 16Convention PA Bankers 2022 Wrap upWrap upon the cover22
4 » PA Bankers Association pabankers.com• Regulatory Compliance Monitoring + Training• Risk Assessment + Gap Analysis A Great Team Serving Extraordinary BanksFinancial Outsouring Solu�ons:Herbein l Mosteller HR Solu�ons:Laurel ClineInternal Audit, Compliance, IT, Risk ManagementHR Solu�ons• Training• HR Outsourcing
PA Bankers Association » Summer 2022 5PA Bankers STAFF DIRECTORYGeneral Number (717) 255-6900President & Chief Executive Ocer dcampbell@pabankers.com | (717) 255-6916External RelationsAdministrative Assistant, Communications and Government Aairs adoyle@pabankers.com | (717) 255-6937Vice President, Advocacy and Government Aairs ekanter@pabankers.com | (717) 255-6910Vice President, Government Relations dreisteter@pabankers.com | (717) 255-6933Federal Government Relations & General Counsel Legal Assistant lbrandt@pabankers.com | (717) 255-6936General Counsel lrynd@pabankers.com | (717) 255-6935Finance & Operations Registrar and Records Coordinator jillametrano@pabankers.com | (717) 255-6927 Receptionist and Administrative Assistant mhenry@pabankers.com | (717) 255-6900 Director, Information Technology cferraro@pabankers.com | (717) 255-6921Director of Marketing & Communications shocker@pabankers.com | (717) 255-6912 Director, Finance amoshgat@pabankers.com | (717) 255-6938 Senior Vice President, Finance & Operations mstaton@pabankers.com | (717) 255-6923 Communications & Marketing Coordinator cyoung@pabankers.com | (717) 255-6915Member Relations, Professional Development & PA Bankers Services Corporation Vice President, Professional Development jcatalano@pabankers.com | (717) 255-6939 Director, PA Bankers Services Corporation tchambers@pabankers.com | (717) 255-6928 Director, Member Relations kmcdermott@pabankers.com | (717) 255-6914 Member Relations Administrative Assistant lscott@pabankers.com | (717) 255-6903 Senior Vice President, Member Relations and Professional Development, and Managing Director, PA Bankers Services Corporation cwallett@pabankers.com | (717) 255-6913 Vice President, Business Development wwhipple@pabankers.com | (717) 255-6925 Professional Development Assistant mwisniewski@pabankers.com | (717) 255-6934magazineSTAFF Sara E. Hocker J. Duncan Campbell III Jacqueline A. Catalano Tiani A. Chambers Daniel J. Reisteter Louise A. Rynd Michelle L. Staton Cynthia L. Wallett Wayne R. Whipple Courtney M. YoungPA Bankers Services Corporation Board of Directors and Ocers Jennifer A. Poulsen, SPHR, CSP, SHRM M. Theresa Fosko, SPHR J. Duncan Campbell III Gerard A. Champi Trudy K. Everhart Philip L. Freeman, Jr. Scott E. Fritz Thomas C. Graver, Jr., CPA Richard L. Greslick Karl F. Krebs Ginger G. Kunkel Joseph R. Toth Tracy E. Watkins, SPHR Dale A. Westwood 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 diversied membership through volunteer participation, a knowledgeable sta, state of the art technology and a commitment to excellence.paBanker Magazine is the ocial publication of PA Bankers.EditorialThe opinions expressed in articles by authors other than Association sta and ocers 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.Printed by: HAAS Printing CoSponsored by:
6 » PA Bankers Association pabankers.comhairing such a great organization was not only on my bucket list, but it was at the top. Accomplishing this has been a goal for almost 30 years, and I extend my sincerest thanks and appreciation for the support that I received prior to and during my tenure as an officer of the PA Bankers Association. This is truly the pinnacle of my banking career. When I was young, I didn’t know what I wanted to do with my life. I had no career path to follow, so I tried several occupations to see where I would fit. I had blue collar and sales jobs. Eventually though, I found my way into the banking industry as a teller. My wife and I were busy raising children, while I was attending night school, coaching little league, and trying to make ends meet. Not once did I sit down and think about why I entered and stayed in the banking industry. But one day, it hit me. The banking industry shared many traits, characteristics, and a history that reminded me of my dad, John Robert Weymers.My father was a junior high history teacher in the Tyrone School District, where he was known as John. In Standing Strong in the Face of AdversityAdapted from His Remarks at the PA Bankers 2022 ConventionWESLEY M. WEYMERS Executive ChairmanThe Gratz BankCoalport, where we lived, and by his family, he was known as Jack. Either way, he was exceptional for what he accomplished, and as Bill Hayes described many years ago about his father, resiliency was a big factor in his life, just as it has been in the banking industry. John R. Weymers was born on Feb. 14, 1931, in South Fork, Pa., during the Great Depression. His mother, Ruth, was a wonderful and loving person. His father, not so much. My grandfather did not want another mouth to feed when money was tight. I will not elaborate on his antics other than to say that when my father was less than a year old, his father left him and my grandmother and never came back. I cannot imagine the position my grandma was in. Technically, she was still married, had a young child, and had no money in the middle of a depression. She was forced to return to the home of her parents, an environment that left much to be desired. Jack’s life started with few advantages for him to enjoy.The Bank of the United States was founded (born if you will) in 1782, and the charter was renewed in 1791. But the early years of banking were not easy ones. Like my father’s youth, there were obstacles, with President Andrew Jackson ultimately closing the Bank of the United States in 1832. The banking system teetered for decades. The eventual outcome of banking, like my dad’s future, would have been difficult to predict. My father told me many times that all the houses in which he lived when he was young had no running water, electricity, or central heating system. He spent many lonely hours reading by candlelight and prior to going to bed, he laid bricks on the cook stove and then placed these bricks into a burlap sack which he took to bed in order to stay warm. He spoke of awakening in the middle of the night chairman’sINSIGHTS
PA Bankers Association » Summer 2022 7freezing because the coal fire had gone out. My father endured a rough upbringing and a difficult life until he graduated from high school at just 16 years old. He was too young to enlist in the service, so he got a job at a sewing factory in Coalport, Pa., where he met my mother. His life now had a semblance of direction, and he had a plan; enlist in the armed forces when he turned 18. My dad’s life had stabilized and so had the banking system. But this stability was rocked in October 1929 when the stock market crashed, a time of grief that included my father’s youngest years. A positive outcome appeared to be grim for banking, the industry which bore the brunt of the criticism. People no longer trusted banks, and the future, which seemed so bright just years, and even months, before, was dire. How could the industry bounce back and regain the trust of depositors, many of whom had lost their life savings? Bankers had overcome early opposition and had worked for more than a century to build trust and confidence. The Federal Reserve System provided a strong foundation for banking clientele, which would lead to a decade known as the Roaring Twenties and prosperity for many Americans. But I have learned that nothing is “fair,” and I have come to dislike that word because of its vague meaning and negative connotation when describing certain situations. The banking industry could not catch a break. Would the industry show the same resilience as my father had?For Jack Weymers, things were looking up. He joined the Air Force and was soon stationed in Korea during the Korean Conflict. He suffered a serious health setback that required him to be completely immobile for six months. He seldom spoke of this part of his life, but he once said that there was absolutely nothing to do, and that days and nights had little meaning. There was no television in Korea in the early 1950’s, only limited radio, which was controlled by the military, and there was nothing else to keep him occupied. So, he began smoking, reaching three packs of unfiltered cigarettes every day. Eventually, he recovered, returned home, married my mother in 1955, and looked forward to the birth of their first child in June of 1956. He also enrolled through the GI Bill at Penn State University. At last, things for him were brighter and heading in a better direction.The banking industry slowly began to recover as the Depression eased. Yes, there were people who lived through the depression who would never use banks again, but as the country defended democracy during World War II, U.S. banking once again took the lead in the financial world. Banks’ reputations were improving, and trust was returning. The industry flourished throughout most of the decade of the 1950’s and into the 60’s. Consumers and businesses were met with another challenge, that of industry consolidation in the 1970’s, where one-location small-town banks began merging with other equal sized banks or selling to larger banks. Some critics predicted the downfall of community banking and worried that local businesses would not have access to capital. Overall, though, the banking industry was strong, and its future appeared to be bright.Following his tour of duty in Korea and subsequent marriage to my mother, my father made two life decisions. He wanted to be a parent, and he wanted to teach. My mother experienced a normal pregnancy and gave birth to a daughter on June 28, 1956, and named her Katherine Ruth, after both of my grandmothers. But this was a life that was not to be, as the baby, who would have been my older sister, died shortly after birth. Once again, fate had been cruel to my father. I sometimes wondered if the thought ever crossed his mind to duplicate the actions of his father and simply leave home and his problems behind. I will always be grateful that he chose to stay and face his trials and tribulations in life. I am also thankful that bankers exhibit this same attitude, that of never quitting or abandoning their principles or their customers. The financial industry survived the perceived threat that mergers would bring harm to our industry, and banks
8 » PA Bankers Association pabankers.comchairman’sINSIGHTScontinued to flourish until the late 1970’s and early 80’s, which was the decade when I first worked in a bank. Interest rates began to increase, as the government had no answer for inflation. I remember interest rates of 20 percent or more, and borrowers pleading with bankers to provide relief from payments that were beyond their reach. This included the Savings and Loan industry. The S&L institutions were in trouble for several reasons, and approximately 30 percent of the existing Savings and Loan institutions at that time failed and bankers were once more under the direct assault of public scrutiny and criticism. Could the financial world overcome adversity yet again? Could my father?I was born in 1957. My sister, Elaine, came along in 1959, and my brother, John, in 1962. My father graduated from Penn State in 1959 and was happily employed as a Jr. High history teacher in Tyrone. We were settled in Coalport and were the definition of a middle-class family. That is, until 1964, when everything changed. John R. Weymers had come from humble beginnings, living his life without a father to guide him, serving his country at great expense to his health, and losing his firstborn child. He deserved a break. What he and our family got was far from it.My father was diagnosed with throat cancer caused by cigarettes. Keep in mind this was the 1960’s, and medical advancements were far from what they are today. Just as a piano player needs their hands to play or a tight end needs his legs to run, John R. needed his voice to teach. The diagnosis was quick and brutal; he had to have his voice box removed. He would no longer be able to talk. But my dad had no concept of quitting in difficult situations, and as I have learned, neither do bankers.Bankers are known for helping others. Bankers are selfless; others always come first. The most recent example is the reaction to the COVID pandemic through the PPP initiative. Bankers stayed up throughout many nights doing what was best for their customers. Nobody said, “why us?” Bankers did not complain and say let somebody else do it. Bankers said, “we will get this done.” We understood that the rules were being made as we proceeded and that there were no firm guidelines because this situation had not previously occurred. We absolutely got it done. Bankers are the true unsung heroes of the COVID pandemic. Why? Because we care and there is no quit in us. If there is a problem, bring it on; bankers will solve it. That is what we do.John Weymers had a problem. He was a teacher without a voice, literally. His employment tenure was short, and he had nowhere near enough paid time off to support three children and a wife, who was not working outside of our home. Like COVID for bankers, my dad was facing a unique situation with no definitive answers, but he did possess a great deal of fortitude, determination, and a strong will to succeed. The way my father, with the full support and assistance of my mother and his peers, addressed this life changing event, affected me for the rest of my life. The school curriculum at Tyrone consisted of eight teaching periods per day for each teacher. One of those periods was free to use as the teacher desired. Seven of my dad’s fellow teachers contacted the district superintendent and the principals of Tyrone High School. They had a plan.Understanding the circumstances, these seven men, who had known my dad for only five years or so, volunteered to give up their free period every day to teach one of his classes. Thus, all my father’s classes were covered, although none of the seven would enjoy a free period during the day. Their only request of the administration was to continue paying my father so we could live as we had. I did not understand the full scope of their actions at the time, but as I matured, I realized how extraordinary their decision was. To this day, I find their actions remarkable. But don’t their actions remind us of bankers?Bankers seldom receive the credit and praise that they earn, but none
PA Bankers Association » Summer 2022 9My father was a reluctant advocate for those who experienced cancer. During my tenure as an officer, I have learned what advocacy truly means. There was a time when I, too was reluctant, and hid behind excuses such as, “I do not like politics, so let other bankers go to Washington to represent our industry.” I have heard bankers and directors of banks say that they do not give to bank PACs because of us care. Bankers leave the glory to others, content to simply help our customers improve their lives. There is a strong and defined correlation between bankers and the teachers who saved my family’s financial life.My father learned to speak again through relentless practice and determination. He learned how to swallow air and spoke as is done through a belch. There was no equipment or machinery to make his task easier. With my mother’s patience and understanding, he progressed to the point where he miraculously returned to his classroom. Just as my father overcame severe obstacles, the banking industry navigated through the S&L situation as well as successfully enduring the financial crisis that took place in 2008. The COVID pandemic became the latest challenge that bankers faced and as is the case in every prior adverse financial event, bankers persevered, and our industry was stronger in the end. We must learn from history because we cannot change history. For as intelligent as my dad was and for all he went through, he could not resist the temptation of tobacco. After overcoming a life-threatening disease and stubbornly refusing to yield to an unpleasant outcome, he continued to smoke cigars. In 1981, the cancer returned to his throat.He was successfully treated at Hershey Medical Center for his disease. By this time, my wife and I had given him grandchildren, as did my sister. His grandchildren became the light of his life. He had yet another reason to live, to enjoy his grandchildren and to continue his chosen career teaching young people. Once again, he refused to yield to a bad break. I wish I could tell you there was a happy ending and that I could ask my father to stand up and be acknowledged. But life is not “fair” (there is that word again), as his cancer returned in 1988, far worse than it had been. Despite excellent care and exhaustive operations, John R. Weymers passed away on Oct. 23, 1989, knowing he was loved by his family and secure that he had positively touched many lives. He was 58.
10 » PA Bankers Association pabankers.comchairman’sINSIGHTSthey do not support contributing to politicians. We must advocate for our industry because nobody else is going to do this for us. We must be our own strongest advocate. If you cannot give your time, contribute money, and if you cannot contribute financially, give your time. Give whatever you can to support our industry. Believe me, our competitors‘ advocacy efforts are increasing, and we must not only protect our turf, we must also be aggressive, proactive and unwavering to support the great industry to which we owe our livelihood. We have all been positively influenced by the banking industry, so it is up to each and every one of us to give back to it. Increasing my personal advocacy for our great industry was a primary goal as chair, and I hope my words and actions persuade each of you to increase your personal advocacy efforts.All bankers have ever requested is to be placed on a level playing field with our competitors; we have never asked for advantages. Please, do not be reluctant to advocate.Four of my predecessors were Patti Husic, Joe Major, Mike Price and Brad Scovill, and from them, I learned the importance of diversity, equity and inclusion (DEI). Substantial improvements have been made in this area, but this work is far from complete. Joe Bower asked us to improve civility, not only in banking, but throughout the country in general. In today’s world, I can think of few topics that are more relevant. I embrace Joe’s vision that employees, current and future, in the banking industry will play a key role in uniting people through the concept of civility. Another of my goals as chair was to continue to promote civility so people respect each other and so that our country realizes how important banking is to our domestic success and to that of the world. Bankers lead by example. DEI is not a passing fad; it is a necessary and a permanent part of today’s workplace and will require leaders’ attention. When I think of DEI, I personally like to use the acronym “ABIDE,” adding an “A” for Awareness and the “B” for Belonging. We would then have Awareness, Belonging, Inclusion, Diversity and Equity to “abide by” as a daily part of our workday. DEI transformation has become an important strategic goal for banks. We, as industry leaders, must set the example. I am fully confident that our association will continue to emphasize the critical importance of DEI and provide adequate resources for member banks as we move forward. I am proud to chair the largest and most diverse board of directors in the history of the PA Bankers Association. I encourage each of you to continue to support our association’s efforts to promote and support DEI. This includes your attendance, and that of officers and staff of your respective banks, at Women in Banking and DEI Conferences. The Bank On program is important to serve the needs of underserved people and minorities and to underscore the fact that commercial banks have always supported potentially unbanked sectors of our communities, and always will. And do not forget our future bank executives by supporting our Young Professionals Network. Many of the men and women who will lead future generations of bankers are in the audience today.Under the leadership of Past Chair Joe Major, the PA Bankers Association partnered with other organizations to graduate the initial BankWork$ class in Philadelphia, which is now offered in Pittsburgh and coming soon to central Pennsylvania. If you are unaware of this, I urge you to become familiar with it. With a severe shortage of qualified workers, bankers once again took the lead to train individuals in low-income areas. Please follow the example of the seven teachers who helped my father when he needed it most; hire those who need assistance.I have a deeply rooted passion for education. I am privileged to have attended and taught at the prestigious banking schools sponsored by the PA Bankers Association. These were some of the most rewarding experiences of my life and I encourage you to continue to send members of your staff to these schools and conferences. The benefits that your organization will receive from these individuals will far outweigh the costs involved, both in terms of time and money. We must remember the opportunities that we were given as young bankers and provide the same to our up-and-coming leaders. Aren’t we fortunate and proud to be bankers?My wife and I were blessed with four children. All of my children have followed in my footsteps, yet none are in the financial services industry. How can I say that? Because each one of them chose a career about which they are passionate, just as I am about banking. All of them and their partners endeavor to be the best they can in the various industries in which they work. I could not be prouder of them, and I am more grateful for my grandchildren than I could possibly convey.Last to be thanked, but first in my heart, is my wife, Barb. We were married young. She is my life partner and my best friend. I cannot imagine what my life would have been without her. Continued
PA Bankers Association » Summer 2022 11A final thanks to Mark, Angie and Brad. These officers, along with our president and CEO, Duncan Campbell, and the other directors, have made my time as chairman a rewarding, memorable, and gratifying experience. My sincerest thanks to each of them, as well as my best, to them as a team, as they prepare to lead our association with the addition of Randy Black as second vice chair.After my dad passed, a short two-sentence poem, that he wrote in his final days as a teacher, was found in his desk and given to me.
12 » PA Bankers Association pabankers.comIn the poem, he referenced a general, who was one of his heroes, I will now share this with you.“I may not stand as this general stood. But standing in that classroom was just as good.” When things get so overwhelming that we begin to wonder whether we can possibly go on, do as I have done throughout much of my life: think of Jack Weymers and the rich enduring history of Pennsylvania Bankers. All of us will once again stand strong in our respective banks, which is not only “just as good” as other jobs in the workforce, but far better. I conclude by paraphrasing the great Lou Gehrig. “Today, I am the luckiest man on the face of the earth.” Thank you and may God bless.chairman’sINSIGHTSContinued
PA Bankers Association » Summer 2022 131. USE THE CORRECT TITLE! In the address block, address them as “The Honorable First and Last Name.” In the greeting, address them as “Senator/Congressman, Representative Last Name”.2. GET PERSONAL. Why are you advocating for this issue? Is it work-related or personal? 3. IN THE FIRST PARAGRAPH, YOU SHOULD REFERENCE THE ISSUE/BILL NUMBER AND YOUR POSITION ON IT. “I am writing to you today in support of HB1234, which allows [explain what the bill does]…”4. IF THERE IS A BILL NUMBER, INCLUDE IT. 5. EXPLAIN YOUR CONNECTION TO THEM. Are you a constituent? Do you work in their district? Do you go to the same church?6. ADD STATS. If you have numerical data, add it to solidify your point. 7. MAKE IT STANDOUT. If your letter is lengthy, offset important content in the middle by using bold or italics or even use bullets.8. OFFER YOUR CONTACT How will you prepare for your next exam? Visit the Bank Exam Prep Center and get the insight you need about how regulatory exams are being administered.Bank Exam Prep Center is your regulatory exam central. Prep before your exam and be sure to return after to take a survey and share your experience.Can you predict what regulators will ask?Visit the Bank Exam Prep Center• What questions are examiners digging in on?• What are the hot topics as field examiners meet with your peers?• How are regulators addressing COVID-19 lending practices?• What discussions are taking place over pandemic operational challenges?
14 » PA Bankers Association pabankers.comWe’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.Register for events at your fingertips.2Update your personal/business information on the go.3Have all event details in one place (i.e., handouts, evaluations, speaker bios, etc.).4Access the updated PA Bankers calendar at all times.5Connect directly to the association’s social channels and stay up-to-date on association news.6Browse for products and services for your institution.Read paBanker magazine on the go.78 Access resources designed for PA Bankers' members. Receive "Instant Alerts" to stay informed.9Advocate for the industry from any location.10
PA Bankers Association » Summer 2022 15“Now, with the combined buying power of dozens of banks, we can keep costs relatively stable, even when we have experienced a year with higher claims.”Executive Vice President, Chief Human Resources OcerUnivest Corporation of PAA unique health care alternative for nancial institutions and aliate members of the PA Bankers Association.Benets of Self-Funding with Bank Health Care Consortium of PAThe Bank Health Care Consortium of PA (BHCCPA) oers employee benets that provide you with strategic tools your organization can utilize to develop, retain and reward those who serve your institution and customers.Bank Health Care ConsortiumStand Alone Self-FundingFully-Insured Funding43 Groups | 6,000+ Enrolled | $93m Total FundingPA Bankers Services Corporation Wayne Whipple, VP, Business Development 717.255.6925 | wwhipple@pabankers.comGuaranteed annual premium for the plan yearLower carrier administration costOnly pay your actual claims plus xed expensesGreater exibility in plan design & claim eligibilityEliminate PPACA premium taxes and federal benet mandatesStop-loss renewals based on actual projections not loss ratioNo lasering at renewal or late discovery of submission claimsMember manages all claim fund surplusesEnables mid-market employers (30+ employees) the safest method to self-fund their benet planM. Theresa FoskoWebber AdvisorsBrad Webber, Marketing/Sales Manager814.695.8066 x4186 | bwebber@webberadvisors.comThe Benecon GroupClaudia Burchstead, Regional Vice President of Sales888.400.4647 | cburchstead@benecon.com20222023
16 » PA Bankers Association pabankers.comt is hard to believe that this is my 10th year as president and CEO of the Pennsylvania Bankers Association. In 2012, my boys, James and Brooks, were five years old and one year old, respectively. I’m so very proud of them, along with my wonderful wife, Kristen. I’m grateful for their support each and every day.As an industry, we’ve been through a lot in the past 10 years, especially the past two, and yet the banking industry stands resilient, always weathering the storms it's confronted with, and always serving its customer base with passion, compassion and overall care. It cannot be overstated: bankers make peoples’ dreams come true. It simply does not get any better than that.During the PA Bankers 2022 Convention, 40 bankers and association staff gave of their time to support the local Phoenix community by organizing packages of food for families in need at the St. Mary’s Food Pantry. Watching this group in action was so very special—and efficient --what would you expect from a group of bankers? We churned out 1,008 packages in 90 minutes, which is basically half of the time it normally takes a group our size to complete this task. I want to thank everyone who joined us for this project as well as thank PWCampbell and Cornerstone Advisors for sponsoring our t-shirts. It truly was a special day.This year, I have the privilege of chairing the Alliance of State Bankers Associations.The Alliance is a national coalition of 51 state bankers associations and the American Bankers Association that advocates for our members in a coordinated way. One of the things I value most about the Alliance is learning from my peers. One of my most trusted friends from the Alliance, Paul Hickman, president and CEO of the Arizona Bankers Association, joined us at our annual convention. I thank Paul for his leadership and friendship.A lot has happened since the PA Bankers 2021 Convention. Since that time, and while not fully behind us, we have certainly turned the corner on COVID. At the same time, we have seen a significant increase in inflation, as an already volatile economic environment has become even more volatile. And we watch with sadness and anger as war wages on in Ukraine.You will recall that In November, we were actively advocating against an IRS tax policy proposal that would have required banks to track inflows and outflows of customer accounts—first at $600 and then at $10,000—annually. The amount really made no difference, but I’m proud to say that we did not sit back and let this reckless concept become law. No, just the contrary, we mobilized the grassroots and generated thousands of letters to our members of congress. Nationally, over one million comments were filed from bankers and their customers—a truly remarkable effort, and I commend everyone who played a part.We need to stay vigilant and advocate for good policies and against bad ones, especially in the current regulatory environment. Cannabis banking; Environmental, Social and Governance (ESG); Central Bank Digital Currency; small dollar lending; leveling the playing field with credit unions and Farm Credit; and ensuring a level playing field with fintech, crypto and other non-bank competitors are all issues in front of us.We have a strong industry. We need to demonstrate that strength through our sustained advocacy efforts. Right now, we have a cannabis banking call to action in support of the SAFE Banking Act. Please take the time (and when I say the time, I mean two minutes of your time) to go on record in support of this legislation. Please have the employees of your bank add their voices. Through coordinated efforts, we can demonstrate effective advocacy for our industry. Every one of The Banking Industry Stands ResilientAdapted from His Remarks at the PA Bankers 2022 Conventionfrom the CEO to the CEODUNCAN CAMPBELLPresident & CEO PA Bankers Association
PA Bankers Association » Summer 2022 17our 70,000+ Pennsylvania bankers can play a role and needs to play a role. We are stronger together, and as we saw with the IRS reporting example, together we can make a difference.In making a difference, our reach expands beyond policy and into the operations of our institutions and support of our local communities. This pandemic has taken a toll on the nation’s workforce. I truly believe that COVID accelerated operational changes to the workforce by five to 10 years. Workers have choices now to work with greater flexibility. From the conversations we have had with member HR directors, we recognize the major workforce challenge that exists for all of you. To this end, we have launched a pilot internship program in central PA in coordination with Shippensburg University, Millersville University and several of our member institutions—we anticipate expanding that program statewide next year in hopes of attracting more individuals into the banking industry.Operationally, banks demonstrated throughout this health crisis that they can be flexible. And now we have the opportunity to learn from it. While banks may not be in position to go fully virtual, we learned that we can still function at the highest level in a hybrid work environment—an advantage that we didn’t see coming before March of 2020.Where am I going with this? Well in April, we hosted our inaugural Diversity, Equity and Inclusion (DEI) Conference. One of the thoughts that was surfaced during a roundtable discussion was around recruiting talent from outside of a bank’s regional footprint in an effort to identify a more diverse set of employee candidates. As we learned during COVID, no longer do we need to be limited by our geographical location to employ the best available workers. That might require some thinking and acting outside of the box, and it simply may not work in some cases with some positions, but I would venture to say that COVID indeed forced us to think and act differently. We have sustained this operational thinking as leaders of the banking industry for the past two+ years, and as a result, we have an opportunity to recruit out-of-market talent and employ these individuals to work for us anywhere. Doing so can lead to the expansion of DEI within our institutions, and it will allow us to do good and do well at the same time.The energy and enthusiasm throughout this first-ever DEI conference was palpable, reminiscent of our first Women in Banking Conference. We launched the Bank On Keystone coalition with partners such as PA Treasury, the United Way of PA and other statewide and regional organizations to promote Bank On accounts across the commonwealth. Bank On Accounts are low-fee or no-fee, safe accounts now offered by more than 30 financial institutions in Pennsylvania, with the goal of broadening banking services to the unbanked and underbanked.The DEI conference welcomed new faces to the association, and we hope to further engage with these bankers beyond this conference. We need your help. If you have employees in your bank that want to get involved with the association, please let us know. If you have employees in your bank that may not know about the association, but you feel could offer value to their peers, please get them involved.I referenced Women in Banking, and I would be remiss if I did not take a moment to acknowledge the fact that eight years after the kickoff conference in 2014, this event brings together more bankers than any of our other events, outside of convention. Nearly 300 women (and men) gathered in Hershey earlier in May to learn, network and lead together. It was a great success and a great model, as I anticipate our DEI conference to follow with similar success in reaching new bankers from across the commonwealth.I would like to say a word about our professional staff at the association. Each member of this team works extremely hard for the membership—I know that because I see it every day—and they all work hard for you because of what you all do in your communities, for your customers and for all of Pennsylvania. We saw this extraordinary effort, firsthand, over the past two years, and it drives us to want to do even more for you—through advocacy, professional development, member engagement and resources, and products and services. I thank our staff members for their extraordinary efforts on behalf of the full association membership.And finally, I would be remiss if I did not offer a word or two about our chair, Wes Weymers, and the association officers—Mark Ritter, Angie Sargent and Brad Scovill. Led by Wes, who I’ve had the pleasure of traveling the commonwealth with the past months, these four individuals have given greatly of their time to advocate with our public officials; lead key association committees, such as Personnel, Audit & Budget, and Advocacy; and to provide thoughtful deliberation on what is important to the sustainability of the Pennsylvania banking industry and the Pennsylvania Bankers Association. I thank them all for their commitment to the full association community.As the next fiscal year approaches, I look forward to working with our 2022-23 officer team: Mark, Angie, Wes and Randy Black. We have a busy year ahead of us, and I know these individuals will provide the leadership we need to continue on our strategic mission to support the Pennsylvania banking industry.
18 » PA Bankers Association pabankers.comcommunityCORNERF&M TrustIt’s Time to Move Up to a Higher Level of Productivity and Trust withFieldSmart PROPERTY and ENVIRONMENTAL INSPECTIONS■ Property Inspections ■ Environmental Inspections■ Commercial Evaluations■ Restricted AppraisalsGET STARTED: BoxwoodMeans.com/ContactLEARN MORE:BoxwoodMeans.com/ServicesFree Up Your Loan Ocers from Performing Site Visits and Leave the Fieldwork to the Pros ®F&M Trust made donations to several local organizations, including Safe Harbour, Huntingdon County Career and Technology Center and Hagerstown Community College. is a not-for-profit organization that provides a continuum of housing services for those experiencing homelessness in Cumberland County. The bank contributed $3,000 to the organization. With a donation of $5,009 to 18 HCCTC students received grants to purchase equipment and supplies required for their secondary programs. Purchases included cosmetology kits, medical scrubs, welding jackets and gloves, work boots, and certification exam fees for students in the Public Health and Safety program. received $50,000 to support its expanded scholarship program and its efforts to inspire entrepreneurship. The bank will contribute $25,000 to the college’s A Gem for Generations campaign and $25,000 to the David W. Fletcher Incubator + Labs over the next five years.
PA Bankers Association » Summer 2022 19The Honesdale National Bank PeoplesBank$1,000 to support the mentally challenged and drug addicted in Wayne County.$5,000 to The Cooperage Project to support an ‘innovative educational program,’ Romping Radishes: A Healthy Living Class for Kids, and Pop-Up Club, a STEAM program for middle school students.$3,000 to the Abington Community Library to support K-12 educational opportunities.$4,446 to Wayne County Food Pantry$2,000 to the Lacawac Sanctuary Field Station and Environmental Education Center to support the Center’s K-12 innovative educational programs. $2,500 to WVIA Public Media to support educational programming.Brighter Financial Futures and PeoplesBank recently announced the winners of the Dream-Learn-Pitch competition that took place at William Penn High School. PeoplesBank sponsored the competition.The Honesdale National Bank has contributed to numerous local organizations through the EITC program as well as an employee contributed fundraiser, including:
20 » PA Bankers Association pabankers.comcommunityCORNERThe Dime Bank donated $31,000 through the EITC Program to various educational institutions for scholarship opportunities: • $18,000 to Penngift Foundationo $9,500 was allocated for St. Dominic’s Academy for their pre-k through 8th grade programs, o $6,000 allocated to Canaan Christian Academy for their elementary and secondary Christian education program scholarshipso $2,500 was allocated to Grace Ridge School to be used for their programs’ tuition assistance• $7,500 to the United Way of Lackawanna and Wayne Counties to be used for pre-program scholarships• $2,000 to Yeshiva Beth Moshe for Scranton Hebrew Day school scholarships for Jewish and secular education• $2,000 to the Diocese of Scranton for its Catholic schools tuition assistance program• $1,500 to the Greater Pike Community Foundation to be used for pre-k scholarship opportunities at Center for Developmental Disabilities (CDD) or Green Trees Early Learning Center in Milford, Pa. The Dime Bank sponsored the Stock Market Challenge. This year’s first place winner in the competition was a Wayne Highlands School District, student who won a Chromebook along with a $100 gift certificate.The Dime BankIt’s Time to Move Up to a Higher Level of Responsiveness and Trust withFieldSmart RESTRICTED APPRAISALS■ Restricted Appraisals ■ Commercial Evaluations ■ Property Inspections ■ Environmental InspectionsGET STARTED: BoxwoodMeans.com/ContactLEARN MORE:BoxwoodMeans.com/ServicesBecause Fast Delivery of USPAP-Compliant Property Valuations are Essential to Closing Small-Balance CRE Loans Today®
PA Bankers Association » Summer 2022 21LINKBANKEphrata National Bank Univest Financial As a community driven bank, The mission of The Gratz Bank and its division LINKBANK is to positively impact lives through community banking. The LINK Foundation, a separate entity from the bank, was created as an avenue to develop future leaders, promote financial literacy, and fortify personal growth through its funding initiatives.One of the many ways the company gives back is through its Double Your Impact program. When a client opens a retail checking account, $50 is given to the LINK Foundation and another $50 is given to a local nonprofit of the client’s choice.Ephrata National Bank donated $50,000 to REAL Life Community Services for the Royer House Project which will add five affordable housing units in Denver Pa.Members of Univest Financial recently volunteered at Haven House. In 2021, Univest employees volunteered a total of 10,897 hours at various locations.
22 » PA Bankers Association pabankers.comcommunityCORNERNew Tripoli BankNew Tripoli Bank donated $50,000 to the Weisenberg Volunteer Fire Department to purchase a new tanker engine apparatus. Do you have hometown happenings that you'd like to share?Send your bank's community news to Courtney Young, PA Bankers' communications & marketing coordinator (cyoung@pabankers.com), for a chance to be featured in paBanker Magazine or on PA Bankers' social media channels and website.
PA Bankers Association » Summer 2022 23PNC’S FINANCIAL INSTITUTIONS GROUP CAPITAL MARKETS, ADVISORY AND BANKING SOLUTIONS FOR U.S. FINANCIAL INSTITUTIONS Gain access to our extensive distribution network of fi nancial institution relationships through our FIG Advisory platform. 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 position. Provide analytics modeling and consultative approach for investments, capital raising and M&A strategies.Collaborate with an experienced team of fi nancial professionals who can help:PNC is a registered service 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 subsidiaryof 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, Solebury Capital LLC, and Sixpoint Partners LLC. Services such as public fi nance 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, Solebury Capital LLC, and Sixpoint Partners 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 DepositNot Insured By Any Federal Government Agency • May Lose ValueLending, leasing and equity products and services, as well as certain other banking products and services, require credit approval.©2022 The PNC Financial Services Group, Inc. All rights reserved.CIB CM PDF 0322-057-2012701Welcome• CCG Catalyst• Newgen Software, Inc.• Q2• StrategyCorps• Trinity Growth AdvisorsAFFILIATE MEMBERS:• First BankFINANCIAL INSTITUTION MEMBERS:NEW TO PA Bankers
24 » PA Bankers Association pabankers.comfeatureARTICLEWrap upWrap upore than 300 bankers, Affiliate Members, sponsors and guests traveled to The Phoenician, A Luxury Collection Resort in Scottsdale, Az. for the PA Bankers 2022 Convention on May 12-15. Throughout the event, attendees had the opportunity to network and gain industry insights from professionals specializing in cybersecurity, diversity, equity and inclusion, the Great Resignation and digital banking, among many other topics. On Friday, May 13, we celebrated Immediate Past Chair Wes Weymers as he gave his last remarks, and on Saturday, May 14, we officially welcomed Chair Mark Ritter with a pinning ceremony and his first speech as incoming chair.General session speakers included Dr. Sahar Yousef, UC Berkeley Haas School of Business, who gave us an update on how to effectively manage stress, sustain mental health, and overcome disruption; Michelle Staton, PA Bankers, and Dr. Linda Eagle, Global Bankers Institute, who discussed the association’s diversity, equity and inclusion initiatives, including the new DEI TRACC roadmap; and Jim Abbott, the famed one-handed major league baseball pitcher, who provided an inspiring presentation on overcoming adversity.PA Bankers would like to thank all of its convention guests and sponsors for making the journey with us, especially our Ruby sponsor, PA Bankers Services Corporation; Diamond sponsor, PNC; and our Platinum sponsors, FHLBank Pittsburgh, The Baker Group, Benecon, Webber Advisors, Stevens & Lee, Griffin Financial Group, LinkBancorp, The Northumberland National Bank, Fulton Bank and C&N.M
PA Bankers Association » Quarter 1, 2022 25
26 » PA Bankers Association pabankers.comfeatureARTICLECgrulisCgrulisFOR YOUR DEDICATED SERVICE TO THE INDUSTRY.Thank yThank yWILLIAM (BILL) AICHELEChairman of the BoardROBERT (BOB) FORSEChairmanTO OUR2022 CLUB INDUCTEES!
PA Bankers Association » Summer 2022 27THANK YOU TO OUR SPONSORSAs of 4/20/2022BRONZE SPONSORSAmerican Bankers AssociationBaker DonelsonD.A. Davidson & Co.First Commonwealth BankICI ConsultingInvestors TitleJMFAKeefe, Bruyette & WoodsNcontractsNew Era TechnologyPCBBRCGILTNER Services, Inc.Stradley Ronan Stevens & Young, LLPSILVER SPONSORSArnold & Porter LLP - Cookie Break - Saturday, May 14ACBB - Golf Tournament Prizes - Saturday, May 14APPI Energy - Jeep Tour - Thursday, May 12Aunalytics - Craft Brewery Tour - Friday, May 13Bankers Healthcare Group - Co-Sponsor: Continental Breakfast - Friday, May 13Barley Snyder - Opening Ceremonies - Friday, May 13Boenning & Scattergood, Inc. - Co-Sponsor: ContinentalBreakfast - Friday, May 13Burns White LLC - Printing of Convention Pocket GuideBybel Rutledge LLP - Afternoon Welcome Reception EntertainmentCOCC - Attendees Pads & PensCrowe LLP - Badge Lanyards/HoldersDeluxe - General Session SnacksFirst National Bank of PA - Co-Sponsor: Continental Breakfast - Saturday, May 14Herbein - FOS - Herbein|Mosteller HR Solutions - Co-Sponsor: Afternoon Welcome ReceptionPaylocity - Wine Tasting in Old Town Scottsdale - Friday, May 13Pillar+Aught - Digital Conrmation KitsPiper Sandler & Co. - Co-Sponsor: Afternoon Welcome ReceptionS.R. Snodgrass, P.C. - Convention Room KeysShield Compliance - Hotel ShuttleThe Kafaan Group, Inc. - Sta ShirtsWolf & Company, P.C. - Golf Tournament SnacksYHB | CPAs & Consultants - Co-Sponsor: Continental Breakfast - Saturday, May 14PLATINUM SPONSORSClosing Session Keynote Speaker (Co-Sponsor)Jim AbbottClosing Session Keynote Speaker (Co-Sponsor)Jim AbbottBoard, Past Chair & Sta Dinner “Ocer Giveaway”(Co-Sponsor)“Ocer Giveaway”(Co-Sponsor)“Ocer Giveaway”(Co-Sponsor)“Ocer Giveaway”(Co-Sponsor)“Wild Wild Wes” Party - Entertainment(Co-Sponsor)“Wild Wild Wes” Party - Entertainment(Co-Sponsor)General Session Keynote SpeakerDr. Sahar YousefFriday, May 13DIAMOND SPONSORRUBY SPONSORChair’s Reception“Wild Wild Wes” Party - Food & BeverageConvention WiFi Snack Box DeliveryThursday, May 12Board, Past Chair & Sta ReceptionGOLD SPONSORS
28 » PA Bankers Association pabankers.comfeatureARTICLEhe PA Bankers Association is continuing the development of a roadmap to guide member banks throughout their Diversity, Equity and Inclusion (DEI) journey, regardless of where they are in the process. The roadmap, DEI TRACC – Taking Responsibility and Creating Culture, outlines the various phases involved in establishing long-term sustainable change, to include assessing the current approach to DEI and what strategic steps should be taken to create a diverse, equitable and inclusive organization.The goal of DEI TRACC is to provide our member banks with tools to use at the board and executive level to determine where they are, assess themselves and work throughout an ongoing, lasting effort. It is scalable based on the bank size and resources available to support DEI efforts throughout the bank.Each phase will include guidance, support, best practices, fillable forms and shared resources. DEI TRACC is being developed by PA Bankers and Dr. Linda Eagle, president and co-founder of Global Bankers Institute. Dr. Eagle is a longtime supporter and speaker for the association, as well as a member of the PA Bankers’ DEI Advisory Group.THE PILOT PHASE IS UNDERWAY! DEI TRACC was introduced to our member banks at our annual convention in November 2021 and shifted into the pilot phase in late March. The pilot includes three member banks of different sizes and from different regions of the commonwealth that are at the beginning of their DEI efforts to work through the "Envision" phase of DEI TRACC to allow the tools to be further refined as they are in-practice. The banks have created their project teams, drafted DEI statements, completed focus groups, and will create their DEI councils, do further polling and research, and establish priorities. All of the efforts of the first phase will guide the banks as they shift into the second phase of TRACC – “Plan” - where the pilot banks will work on establishing projects that will impact all levels at the bank (DEI impact, approval, rollout, communication, engagement, quality assurance, assessment). Future work will include implementing efforts outlined in earlier phases as well as establishing ongoing management efforts to maintain energy and commitment organization-wide.Our goal is to have DEI TRACC ready to share with our member banks in early 2023. Please stay tuned for updates on our progress as we work to develop this valuable tool for all of you!TDiversity, Equity and Inclusion Roadmap UpdateDiversity, Equity and Inclusion Success Stories and Best PracticesWould you like to share what your bank is doing in the diversity, equity and inclusion space with PA Bankers? Please reach out to Michelle Staton, senior vice president, finance & operations, mstaton@pabankers.com.
PA Bankers Association » Summer 2022 29featureARTICLEPA Bankers Association 50 Volume 21.1 | Quarter 1SOMEONE 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.
30 » PA Bankers Association pabankers.comfeatureARTICLEhe PA Bankers Association has partnered with Shippensburg University to develop a bank-centered intern program for our member banks. The program is intended to provide real-world experiences with project-based assignments by gaining exposure, opportunity and support to develop and grow both personally and professionally. Students will learn about career paths that explore a variety of skills and interests within the banking industry, at the same time providing access to qualified interns who can support critical job functions within the banks.Shippensburg University will assist banks with job description development, as well as recruiting, selecting, managing and evaluating interns. This effort will support banks that have existing intern programs and create intern programs for banks that may not have a formalized effort.Learning outcomes will include an inside look at desired banking career fields, while working next to some of the best in the industry. An added bonus of this customized program includes specialized professional and leadership development training delivered virtually by Shippensburg University to all interns that will build upon their technical and essential/employability skills, as well as build their network as they learn about the culture within the banking industry. Other key elements include job shadowing, skills surveys and bank-focused employer intern guidebook.The 12-week program launched in May 2022 through a pilot effort in South Central PA to include three banks of varying sizes, 15 interns, Shippensburg University and Millersville University. The interns are focused in key areas of need – credit analysts, compliance and human resources. Early conversations revealed the need to develop a few paths for the statewide program launch:• Area-specific internships (junior/senior) – credit analyst, IT, HR, marketing, etc.;• Early talent internships (freshman/sophomore)– rotating through key areas of the bank to include operations and customer-facing functions; and• Condensed internship (freshman) – three-week intern program hosted by Shippensburg that is focused on the banking industry to increase awareness of banking careers, identify education pathways, and provide job shadow opportunities.During the pilot phase, the program will be developed and refined before launching statewide in 2023 to all member banks and state system schools across the commonwealth. Shippensburg will work with career centers across the state system to market and recruit early talent interns and area-specific interns for member banks when the program expands statewide in May 2023.We are excited to see this pilot develop and be able to support our members statewide with their talent recruitment efforts. Stay tuned for updates!TPA Bankers Intern Program Pilot Launched in South Central PAQuestions? Contact Michelle Staton, senior vice president, finance & operations, mstaton@pabankers.com.
PA Bankers Association » Summer 2022 31667.330.1152PChaconas@appienergy.com appienergy.comAs a large regional bank with locations spanning three states, we were quite pleased to have APPIEnergy step in to manage our energy needs. In addition to significant cost savings, they provided ourteam with a utility bill management system that continues to make our energy management seamless.APPI Energy’s history and data-driven insights are what initially impressed us, but we continue to beimpressed by their commitment to on-going customer service. We are looking forward to what theypresent us next.JEFFREY BLAKELEYASSISTANT VICE PRESIDENT, NORTHWEST BANKPENNSYLVANIA BANKERS ASSOCIATION MEMBER CONTACT YOUR DEDICATED ENERGY CONSULTANT, PETER CHACONAS, FOR MORE INFORMATION:20222023
32 » PA Bankers Association pabankers.comAwardsCONGRATULATIONS TO THE WINNERS OF THE 2022 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 financial institutions and their communities.from yourPEERSThis year’s winners are:THE PATRICIA A. HUSIC WOMAN OF INFLUENCE AWARD: CAROL MYERS EVP, Chief Financial Officer, 1ST SUMMIT BANK Carol 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.
PA Bankers Association » Summer 2022 33The 2022 Women in Banking Recognition of Excellence Program was sponsored by Pillar+Aught, LLC and Schneider Downs & Co., and the winners were honored at the association’s Women in Banking Conference in May.TOMORROW’S PROMISE AWARD: BETHANY BACHMAN Financial Solutions Area Manager, First Commonwealth Bank Bethany was recognized as a woman, aged 35 or younger, who continues to make a significant impact in the banking field and her community, making her “one to watch” in Pennsylvania’s banking industry. Beckie and Jennifer were recognized as seasoned professionals who, through personal commitment, application and dedication, are invested in the success of others and foster growth to ensure women maximize their potential.The Women in Banking Recognition of Excellence Program is spearheaded by the association’s Women in Banking Network, which provides hundreds of women with opportunities for professional development, networking, mentorship, recognition, advocacy, financial literacy and volunteerism within their institution, the association and the industry. CHAMPION FOR WOMEN AWARD (AFFILIATE MEMBER): BECKIE BECK EVP, Chief Client Relations Officer, Webber Advisors CHAMPION FOR WOMEN AWARD (FINANCIAL INSTITUTION MEMBER): JENNIFER POULSEN SVP, Chief Operating Officer, The Farmers National Bank of Emlenton
34 » PA Bankers Association pabankers.comAwards2022 WOMEN IN BANKING RECOGNITION OF EXCELLENCE PROGRAM NOMINEESBETHANY BACHMAN Financial Solutions Area Manager, First CommonwealthBECKIE BECK EVP, Chief Client Relations Officer, Webber AdvisorsTAMMY BEY VP, Senior Project Manager/Data, BNY MellonKATE BRYANT VP, CFO, The Honesdale National BankERIN CAMPBELL Principal, PW CampbellJESSICA GEHMAN Relationship Manager, LINKBANKALETA HEARD VP, Asset Servicing & Digital, BNY MellonKRISTIN HOROFF VP, Dual Financial Center Manager, Univest TIFFANIE HORTON Chief Credit Officer, LINKBANKCAROL MYERS EVP, CFO, 1ST SUMMIT BANKJENNIFER POULSEN SVP, Chief Operating Officer, The Farmers National Bank of EmlentonSUSAN NICHOLSON EVP, Chief Human Resources Officer, S&T BankMADISON SABO AVP, Community Banking Manager, S&T BankJULIA VITALE Senior SBA Development Business Officer, First Commonwealth BankJENNIFER WAGNER Global Head of Client Support, BNY Mellonfrom yourPEERSFUTURE 40To fill out a nomination form, please visitwww.pabankers.com.A high-resolution photo and biography are requiredfor submission.The nomination deadline is Aug. 15, 2022.The nominee will be made aware of the nominationand will be required to attend the 2022 PA BankersYoung Professionals Conference on Sept. 27, 2022.Eligibility CriteriaWho may nominate a qualified candidate?Nominations will be accepted from any member source;however, submissions may not be anonymous. You maynot nominate yourself. Who is eligible for nomination?Future Under 40: Nominees must be a current banker orAffiliate Member of PA Bankers and 40 years of age andyounger.Young Professionals Champion: Nominees must be aPA Bankers financial institution member. Nomination Details Do you know someone under the age of 40 who demonstrates business success, communityinvolvement, leadership ability and influence? Nominate your peers for the NEW Future Under 40 Awards. The Future Under 40 Awards honor youngindustry leaders who have made a tremendous impact in their institution, the community and the industry.FUTURE UNDER 40Questions? Contact: Karen McDermott | kmcdermott@pabankers.com | (717) 255-6914Honoring Future Leaders of Our IndustryYOUNG PROFESSIONALS CHAMPIONHonoring an Influential Senior Leader in Our IndustryDo you know an influential senior leader who inspires and promotes the growth of young professionals inthe industry? Nominate them for the Young Professionals Champion Award. Thank you to our sponsor:
PA Bankers Association » Summer 2022 35FUTURE 40To fill out a nomination form, please visitwww.pabankers.com.A high-resolution photo and biography are requiredfor submission.The nomination deadline is Aug. 15, 2022.The nominee will be made aware of the nominationand will be required to attend the 2022 PA BankersYoung Professionals Conference on Sept. 27, 2022.Eligibility CriteriaWho may nominate a qualified candidate?Nominations will be accepted from any member source;however, submissions may not be anonymous. You maynot nominate yourself. Who is eligible for nomination?Future Under 40: Nominees must be a current banker orAffiliate Member of PA Bankers and 40 years of age andyounger.Young Professionals Champion: Nominees must be aPA Bankers financial institution member. Nomination Details Do you know someone under the age of 40 who demonstrates business success, communityinvolvement, leadership ability and influence? Nominate your peers for the NEW Future Under 40 Awards. The Future Under 40 Awards honor youngindustry leaders who have made a tremendous impact in their institution, the community and the industry.FUTURE UNDER 40Questions? Contact: Karen McDermott | kmcdermott@pabankers.com | (717) 255-6914Honoring Future Leaders of Our IndustryYOUNG PROFESSIONALS CHAMPIONHonoring an Influential Senior Leader in Our IndustryDo you know an influential senior leader who inspires and promotes the growth of young professionals inthe industry? Nominate them for the Young Professionals Champion Award. Thank you to our sponsor: July 1
36 » PA Bankers Association pabankers.comgovernmentRELATIONSPA GENERAL ASSEMBLY COMPLETES WORK ON THE FY The Fiscal Year 2022-23 budget passed the general assembly on Friday, July 8, and the Governor signed it later that evening. The FY 2022-23 budget is a $45.2 billion spending plan, which includes adding $2 billion to the Rainy Day Fund. This is a 2.9-percent increase over the FY 2021-22 spending plan. This spending plan includes a $525 million increase in basic education funding, for a total of $7.6 billion. While there was a CNI rate decrease, no changes were made to the Bank Shares (BST) or Mutual Institutions tax rates. The goodwill exclusion from BST, as we will talk about below, was also not included. Please see the 7/11/22 edition of A&I for more information on the state budget.PA BANKERS PURSUES LEGISLATION TO CLARIFY DEDUCTIBILITY OF GOODWILL FROM BANK SHARES TAX PA Bankers is pursing legislation introduced by House Finance Committee Chairman Mike Peifer (R-Pike) as HB 2645, which would clarify the intent of the deduction available for all goodwill arising from acquisitions and business combinations occurring after June 30, 2001. PA Bankers led a major, successful legislative effort to enact Act 55 of 2007 providing for the deduction of goodwill from the PA Bank Shares Tax. PA Bankers sought this legislation because accounting standards changes in 2001 and 2007 artificially inflated banks’ annual shares tax payments due to the amount of goodwill generated by mergers or combinations.Goodwill is an intangible asset added to a balance sheet when a company combines with or acquires another business in a transaction at a price higher than the net fair value of the assets acquired and liabilities assumed. Goodwill accounts for such factors as the existing business' name, customer base, brand identity, employee relations and proprietary technology. Generally accepted accounting principles require the company that survives a combination or acquires another business assign any goodwill generated by the transaction to whichever of its subsidiaries or reporting units benefits from the synergies of the combination. For more than 10 years, there has been a low-level dispute between banks and the PA Deptartment of Revenue about the scope of the goodwill deduction. The department has taken the position that the deduction is limited to circumstances in which one bank, subject to the Bank Shares Tax, obtains control over another bank that is also subject to the tax. The department has refused to recognize the deduction for other types of business combinations, such as combinations with thrift institutions not subject to the Bank Shares Tax; combinations with out-of-state banks not previously paying the Bank Shares Tax; or the acquisition of other businesses useful in conducting the business of banking. State Government Relations Update
PA Bankers Association » Summer 2022 37Until recently, these disputes did not affect most banks and were able to be resolved in the tax appeal process, typically through compromise settlements that resolved issues about the scope of the goodwill deduction together with other contested issues. Recently, the department has taken a new position in examinations and appeals that threatens to strip most banks of the benefits of the goodwill deduction. Although it was never previously the position of the department, the department is now alleging that the goodwill deduction is not available when a combination of two bank holding companies occurs followed by or simultaneous with the merger of their bank subsidiaries. Because most bank combinations occur through holding company mergers, this change in policy could deny most banks the benefits of goodwill deductions that have been claimed for many years, and not previously denied by the department.The Revenue Department’s new policy eviscerates the legislature’s enactment of the deduction because combinations of banks not occurring together with holding company mergers are rare. As a result, the failure to clarify the original intent of Act 55 will further disadvantage Pennsylvania financial institutions and curb the expansion of employment and the investment of additional capital in the commonwealth. This issue was the sole focus of PA Bankers Day at the State Capitol on June 13, which was attended by over 50 bankers who collectively participated in over 90 meetings with legislators/their staffs. LEGISLATURE PASSES PA BANKERSSUPPORTED CANNABIS BANKING LEGISLATIONSenate Bill 1167, introduced by Senate Banking and Insurance Committee Chairman John DiSanto (R-Dauphin), passed the state Senate on April 13, by a vote of 46-3. The Senate then amended HB 331, a bill originally introduced to authorize a prize-linked savings program, to include cannabis banking and insurance provisions. HB 331 received a concurrence vote in the House of Representatives on July 1. The Governor has 10 days to sign the bill. PA Bankers, the PA Association of Community Bankers and Cross State Credit Union Association support the legislation.The legislation provides that under the laws of Pennsylvania it is permissible for financial institutions and insurance companies to provide services to legitimate cannabis-related businesses and their business associates subject to (1) the laws and regulations applicable to provision of services to other customers of financial institutions and insurance companies; (2) Pennsylvania consumer protection laws; and (3) any additional requirements established by banking or insurance regulators. The legislation does not, however, require financial institutions or insurance companies to provide services to cannabis-related businesses or their associates. Many of its provisions are closely based on H.R. 1996, the proposed Secure and Fair Enforcement Banking Act of 2021.The legislation also protects financial institutions and insurance companies from adverse regulatory actions, criminal prosecutions, civil and criminal forfeitures and civil claims based solely on their provision of financial or insurance services to legitimate cannabis-related businesses or their business associates to the extent permitted by the legislation. AMENDMENTS TO PA TRUST CODE ADVANCE Uniform Directed Trust Act Individuals creating trusts sometimes wish to designate a person other than the trustee to review and approve, or disapprove, of certain actions of the trustee. They also may desire to grant the responsibility for making certain decisions regarding the administration of a trust to a person other than the trustee. Trust instruments identify these persons by a variety of different terms, such as trust protectors, trust advisors, or trust directors. Current PA law has been criticized as providing insufficient protection to trustees accused of a breach of trust for acting, or failing to act, on the direction of a trust director. In addition, current law fails to adequately consider a variety of other issues in this regard, such as (i) the scope of powers that may be assigned to trust directors; (ii) the respective responsibilities and liabilities of directed trustees and trust directors; (iii) remedies for and defenses applicable to breach trust claims against trust directors; and (iv) procedures for the appointment, bonding, compensation, removal and replacement of trust directors. To address these issues, SB 1035 adds the Uniform Directed Trust Act to the PA Trust Code. Since its promulgation in 2017, this Uniform Act has been adopted by Arkansas, Colorado, Connecticut, Florida, Georgia, Indiana, Maine, Michigan, Montana, Nebraska, New Mexico, Utah, Virginia, Washington State and West Virginia. The Act is also under consideration in Kansas and New York. SB 1035 has been endorsed by, and includes modifications to the Uniform Act recommended by, the Decedents Estates Advisory Committee to the PA Joint State Government Commission. Enactment of this legislation is necessary to protect both directed trustees who rely on the actions or inactions of trust directors as well as the trust directors who rely on the actions or inactions of trustees. The legislation also provides greater certainty regarding the consequences of naming trust directors in trust instruments. The failure of Pennsylvania to have an up-to-date directed trust law has caused Pennsylvania to be a less attractive location in which to establish and administer trusts and has increased the costs of utilizing trust directors under current Pennsylvania law. Continued on page 38
38 » PA Bankers Association pabankers.comgovernmentRELATIONSe are excited to announce that Erin Loudenslager Kanter, PA Bankers’ previous director of advocacy and government relations, has been promoted to serve as vice president of advocacy and government affairs, effective July 1, 2022.Erin has been a key member of the association’s government relations team for the past 11 years, providing effective leadership in lobbying, advocacy and the PA Bankers Public Affairs Committee administration. As vice president, she will continue to advance the industry’s policy agenda through important legislative, issue and political advocacy.Erin L. Kanter Promoted to VP of Advocacy and Government Affairs SB 1035 also adds a new, streamlined, non-judicial method for settling trust accounts. The legislation permits a trustee to settle the administration of the trust account to date by providing 30 months of trust account statements to the interested parties with notice that, absent an objection, the accounting is deemed approved and future claims will be barred. This method of settling a trustee’s administration will apply when a trust terminates, a trustee is replaced or resigns, or a trustee desires to settle an interim accounting. It is designed to ease the trust account settlement process in situations where no objections are anticipated and all parties are believed to be in agreement. It avoids the often costly and time-consuming process of retaining trust counsel to prepare either a non-judicial settlement agreement, which requires approval by all parties in interest, or the pleadings and formal accounting required for audit and adjudication by the court. In the event any party objects, the amendments require either a non-judicial settlement agreement or approval by the Orphans Court.Similar legislation has been enacted in Delaware, Maryland, Kentucky, Indiana and Alabama. In addition, it currently is under consideration by the legislatures of Ohio and Tennessee.SB 1035, introduced by Senate Appropriations Committee Chairman Pat Browne (R-Lehigh), was reported by the Senate Judiciary Committee and is currently in the Senate Appropriations Committee, waiting to be considered.*This information was published on 7/12/22.State Government Relations UpdateContinued from page 37ERIN!CgrulisErin can be reached at ekanter@pabankers.com or (717) 255-6910.
PA Bankers Association » Summer 2022 39PAB-LAYOUT-1221.indd 1PAB-LAYOUT-1221.indd 1 12/28/21 10:31 AM12/28/21 10:31 AM
40 » PA Bankers Association pabankers.comgovernmentRELATIONSThank you for serving Pennsylvania’s banks for 38 years. Your friendship, camaraderie and humor will be missed. It’s been a pleasure working with you. -The PA Bankers staffON YOUR RETIREMENT,DAN!Cgrulis
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42 » PA Bankers Association pabankers.cominmemoriamPA Bankers mourns the loss of one of our association’s leaders, Ronald J. (Ron) Seiffert, chairman, president and chief executive officer of Northwest Bancshares Inc. and Northwest Bank. Ron served as a PA Bankers board member since 2019. In this capacity, he also served as a member of the association’s Audit, Budget & Finance Committee. Prior to his board service, Ron was a member of the PA Bankers Government Relations Policy Committee. He was an active advocate for the industry with federal and state policymakers.“Ron was a great banker but an even better person,” said Duncan Campbell, PA Bankers’ president and CEO. “He conveyed sound advice in the boardroom but did so with grace and without pretense. We are a stronger industry and a stronger association thanks to his leadership.”The PA Bankers board of directors, membership and association staff send our deepest condolences to Ron’s entire family – especially his wife, Sherry, and his daughters – as well as his colleagues at Northwest Bank.
PA Bankers Association » Quarter 4, 2021 43Whatever your next move, we’re here to help.At RKL, we’re focused on helping banks like yours achieve what’s next. Whether it’s enhancing your protability, minimizing your tax obligations, driving efciency in your operations or adopting new technologies, we’re advisors for growth. However you dene “next level,” count on our team of advisors to help you navigate the everyday while focusing on the bigger picture to drive you and your bank forward.Learn more at rklcpa.comTAX | ASSURANCE | ADVISORY | TECHNOLOGY | WEALTH MANAGEMENTADVISORS forGROWTHBarry Pelagatti, Next Level Advisor
44 » PA Bankers Association pabankers.comLending & CreditADVANCED SCHOOL OF COMMERCIAL LENDING PA BANKERS TRAINING ROOM, HARRISBURG, PA 8/23-24ANALYZING CORPORATE AND PERSONAL STATEMENTS AND TAX RETURNS SEMINAR PA BANKERS TRAINING ROOM, HARRISBURG, PA 10/6TRAINING THE CREDIT ANALYST SEMINAR PA BANKERS TRAINING ROOM, HARRISBURG, PA 10/4-5a aheadlook Please note: all dates and locations are subject to change.General Association PA BANKERS CLASSIC - EAST SAUCON VALLEY COUNTRY CLUB, BETHLEHEM, PA 10/19ADVANCED SCHOOL OF BANKING PENN STATER CONFERENCE CENTER, STATE COLLEGE, PA7/24-29
PA Bankers Association » Summer 2022 45a aheadlookLending & Credit continuedESSENTIALS OF COMMERCIAL LENDING SEMINAR PA BANKERS TRAINING ROOM, HARRISBURG, PA 11/2-3LENDING CONFERENCE THE HOTEL HERSHEY, HERSHEY, PA 11/17-184/26-27AGRICULTURAL BANKERS CONFERENCE PENN STATER CONFERENCE CENTER, STATE COLLEGE, PAYOUNG PROFESSIONALS CONFERENCE HERSHEY LODGE & CONVENTION CENTER HERSHEY, PA9/26-27NetworksWOMEN IN BANKING CONFERENCE HERSHEY LODGE & CONVENTION CENTER HERSHEY, PA3/12-13
46 » PA Bankers Association pabankers.coma aheadlookWealth Management, Trust & Investment ServicesWEALTH MANAGEMENT & TRUST CONFERENCE & EXHIBITION HERSHEY LODGE & CONVENTION CENTER, HERSHEY, PA10/26-28TechnologyDIGITAL BANKING CONFERENCEBEST WESTERN PREMIERE, HARRISBURG, PA 11/13-14Compliance, Regulatory and Risk ManagementSCHOOL OF COMPLIANCE PA BANKERS TRAINING ROOM, HARRISBURG, PA 9/7-8BSA COMPLIANCE SEMINAR PA BANKERS TRAINING ROOM, HARRISBURG, PA 10/20
PA Bankers Association » Summer 2022 47Interest Rate Risk andInvestment Strategies SeminarOctober 19-21, 2022 | Oklahoma City, OKThe Skirvin HotelThe Skirvin Hotel One Park Avenue Oklahoma City, OK 73102 405.272.3040WHO SHOULD ATTENDFinancial institutions’ CEOs, CFOs, investment ocers, board members, and those who are directly or indirectly responsible for financial management functions will benefit from this seminar. There is no cost for this seminar.ACCOMMODATIONSA block of rooms is available at The Skirvin Hotel. Identify yourself as a Baker Seminar attendee (or group code TBG3) when calling +1 (800) HILTONS. The special room rate will be available until the room block is sold out.AGENDAWednesday, 19th Twin HillsGolf 1:00 pmThursday, 20thBreakfast 7:30 am Seminar 8:30 am Lunch 12:00 pm Adjourn 4:00 pm Dinner 7:00 pmFriday, 21st Breakfast 7:30 am Seminar 8:30 am Conclusion 12:00 pmFor your convenience, register for the seminar online at GoBaker.com/oklahoma. Call Skoshi Heron at 888.990.0010 for more information.11 hours of Economics and Finance CPE credits will be earned for your attendance.Two years after the pandemic left financial institutions drowning in excess liquidity at historically low interest rates, the industry faces a new challenge… rising interest rates. The Fed has quickly pivoted from supporting the economy to fighting inflation and institutions are now facing the first rising rate environment in years. Regulators have watched with concern as loan and investment durations extended to record highs in a search for yield and will have a renewed focus on the Investment Portfolio and Interest Rate Risk Management. Portfolio managers can no longer be reactive, but must be proactive in managing their investment portfolio and balance sheet in the face of rising rates and a flattening yield curve. This seminar will examine all of these concerns and present actionable strategies to better prepare your institution for the uncertainty ahead. Join us for an in-depth discussion of the following topics:• Economic and Market Update — Review of current economic conditions and the outlook for growth, inflation, and interest rates• The Powell Pivot — Update on rate hikes, tapering, and the outlook for Federal Reserve monetary policy• Interest Rate Risk — How to ensure you are prepared for the heightened regulatory focus coming in the years ahead• Liquidity Risk Management — Best practices for managing liquidity risk as rates rise• Investment Portfolio Strategies — Adapting your strategy and finding the best relative value for rising rates and a flattening yield curve• MBS/CMO Market — Balancing prepayment and extension risk in an uncertain mortgage rate environment• Municipal Market Update — The latest on managing municipal credit risk and finding the best relative valueOCTMember: FINRA and SIPC www.GoBaker.com | 800.937.2257 Oklahoma City, OK | Austin, TX | Dallas, TX | Houston, TXIndianapolis, IN | Long Island, NY | Salt Lake City, UT | Springfield, IL20222023
48 » PA Bankers Association pabankers.comvendorARTICLEShe mortgage market is already off to a volatile start in 2022 with Treasury yields soaring, spreads widening, and mortgage rates breaching 4%. The Federal Reserve has made clear that it will focus on a robust monetary tightening campaign to combat high inflation by ending mortgage-backed securities (MBS) purchases and likely shifting the reinvestment of mortgage paydowns from MBS to Treasuries. This comes on the heels of record home price appreciation (HPA) and expectations for prices to continue rising at a modest pace, increasing loan sizes. These factors create headwinds for MBS performance in 2022, especially for pools comprised of generic or “to-be-announced” (TBA) collateral. Pools containing “specified collateral” (described below), on the other hand, stand to outperform TBA as the Fed taper and rising loan sizes impact TBAs more directly. HIGHER SUPPLYA record net supply of agency MBS was set in 2021 and the Fed purchased about two-thirds of it. Although net supply is not forecasted to be as high in 2022, without the biggest buyer in the market, available supply would increase even if net issuance remained level. However, 2022 supply could be boosted by continued HPA. Supply is strongly correlated with HPA and home values are projected to moderately increase in 2022. Additionally, the Fed is expected to finish adding MBS to its portfolio in March and to cease reinvesting mortgage principal paydowns this summer. All of this means the private market (ex-Fed) will have to digest significantly more supply in 2022. It is also important to remember that the supply the Fed has been taking out of the market is TBA collateral. This is the “cheapest-to-deliver” (CTD) or “worst-to-deliver” (WTD) collateral that has been stripped of loans that offer added value to investors. Loans with certain characteristics that exhibit more predictable prepayment behavior are pulled out of TBA and pooled separately into “specified” pools. Because loans with these desirable attributes are carved out of the TBA float, what is left in TBA is the least desirable loans. Without the Fed sopping up that CTD/WTD float, supply pressure stands to impact TBAs more directly than specifieds. HIGHER LOAN SIZES Higher loan sizes will also likely hit TBAs more directly. The Federal Housing Finance Agency raised the conforming loan limit by a record 18% for 2022, up to $647,000. This means some loans previously considered “jumbo-conforming” are now eligible to be securitized into TBA. That could push the average loan balance of what becomes part of the TBA float higher and hurt valuations as pricing adjusts to account for the larger loan balances.Larger loan balances are generally less desirable to investors because prepayment behavior is highly interest-rate sensitive. The larger the loan size, the more economic benefit a borrower realizes by refinancing when rates are low and the more economic burden a borrower endures to refinance or move when rates are high. That means these loans have a tendency to perform the exact opposite way an investor hopes by prepaying fast when rates are low and extending when rates are high. By increasing the average loan size in the TBA market, the collateral skews a bit less desirable and pricing adjusts to reflect that.Home price appreciation also organically pushes up the average loan size of new MBS. Analysts estimate home prices to appreciate around 5%–7% in 2022 after increasing nearly 20% in 2021. Additionally, with higher rates, supply will increasingly be comprised of purchase loans and fewer refi loans. Purchase loans tend to have larger loan sizes, especially when home prices are on the rise. Further, the refi loans made in this environment will also shift from primarily “rate and term” refinances, which characterize low-rate environments, towards cash-out refinances. Cash-out refis tend to have larger loan sizes because borrowers take cash out of the equity in their homes by increasing the size of their mortgage. PREPAYMENTSWhat these dynamics mean for prepayments may seem straightforward on the surface in that higher rates and higher loan sizes slow speeds as borrowers 2022 Key MBS Themes and the Case for Specified PoolsT
PA Bankers Association » Summer 2022 49ABOUT THE AUTHOR: is a andatShe began her career in Washington, DC, where she also earned her MBA from George Washington University. Andrea worked on the Capital Markets Sales and Trading Desk at Fannie Mae for five years before returning to Oklahoma to work in corporate finance. Andrea joined The Baker Group in 2020, and her work focuses on mortgage products. Contact: 800-937-2257; apringle@GoBaker.com.are less incentivized to refinance...but by how much? With rate and term refis down, turnover and cash-out refis become an increasingly important part of the picture, and both are buoyed by strong HPA. However, record low housing inventory creates a challenge for turnover activity. Excess mortgage industry capacity following the hiring surge in 2020–2021 may also incentivize mortgage lenders to target previously untapped borrowers for refis in effort to keep business elevated. All these dynamics create some uncertainty for the mortgage market. One certainty is that these factors will not impact the entire market the same way. Some sectors will feel certain headwinds more directly than others but that should not deter investment in MBS. Investors should simply be strategic about where to direct investment dollars and consider specified pools over TBA.
50 » PA Bankers Association pabankers.comvendorARTICLESederal regulators have been encouraging financial institutions to share information about known cyber incidents for years. Now banks and their third-party service providers have until May 1, 2022, to comply with the new rule requiring prompt regulator notification in the event of a cyber incident.HOW TO RESPOND WHEN A VENDOR GETS HACKEDBank cyber incident notification ruleIssued by the FDIC, Federal Reserve, and OCC, the new rule requires a banking organization to notify its primary federal regulator of any significant computer-security incident as soon as possible and no later than 36 hours after the banking organization determines that a cyber incident has occurred.This includes incidents that materially affect—or are reasonably likely to materially affect—the viability of:• a banking organization’s operations• its ability to deliver banking products and services or• the stability of the financial sector.Third-party vendors cyber incident notification ruleThe federal regulators’ rule also requires bank service providers (narrower definition of third-party providers) to notify a primary contact at an affected financial institution if it experiences a computer-security incident that materially affects or is reasonably likely to materially affect banking organization customers for four or more hours.In the past, third-party incident notification has been defined and enforced with well-drafted vendor agreements and attentive due diligence. It’s been up to financial institutions to draft contracts that adequately address incident reporting—and many have struggled to do this effectively.Why did the rule change?Research by the FDIC’s Office of the Inspector General (OIG) has found that while most third-party vendor contracts require the vendor to inform the financial institution of a breach, contracts tend to be vague and hard to enforce. For example, they don’t include details of how a vendor assesses or responds to potential incidents or whether it reports them to authorities.Defining “timely notification”About 20 percent of banks in the OIG study included the term “timely notification of financial institution” in contracts but didn’t define a specific time period, leaving it up to interpretation. Other terms that are equally undefined often include “unauthorized access,” “security incident,” and “substantial harm or inconvenience.”The new rule should make it easier for financial institutions to know when a third-party vendor is experiencing a cyber event. Good contracts are drafted to require vendors to comply How will the New Cyber Incident Notification Rule Affect your FI? 4 Steps to Update Your Institution’s Incident Response Plan
PA Bankers Association » Summer 2022 51ABOUT THE AUTHOR: is the and of , 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. Mr. Berman is a subject matter expert on Regtech with such notable presentations as: featured speaker at American Bankers Association, Independent Community Bankers of America, as well as numerous state association conferences; well-regarded host of monthly webinar series with up to 800 registrants; and published author of national and regional banking publications, including a regular contributor to the ABA Bank Compliance magazine. He is the author of a book about strategic risk management, The Upside of Risk: Transforming Complex Burdens into Strategic Advantages for Financial Institutions, which is available on Amazon. Michael received his undergraduate degree from Cornell University and holds a J.D. degree from the University of Tennessee.with all federal, state, and local laws and regulations. That means many bank-vendor agreement will now have a specific definition of a computer-security incident, but financial institutions will need to ensure contracts for third parties not subject to the security notification rule continue to have strong language and defined expectations.What if sensitive customer data is exposed?This isn’t the first rule to require a notification of a breach. There are already numerous state and federal laws (including Gramm-Leach-Bliley) covering privacy breaches. Whether it’s a vendor or financial institution breach, if a cybersecurity incident results in the breach of non-public personal information (NPPI), financial institutions will still need to follow existing state and federal laws when dealing with the breach.Updating your institution’s incident response planThis new rule will bring heightened attention to incident response programs, an essential component of any financial institution’s information security program. Now is the time to review your institution’s incident response plan to: Make sure your policies and procedures require federal regulator notification of any significant computer-security incident within 36 hours. If current policies and procedures permit a longer threshold or don’t define one, they need to be edited to meet this new requirement.While it’s always been important to be aware of vendors’ incident response plans, it’s possible that examiners will more proactively review this area. Make sure your third-party vendors are updating their incident response plans to ensure they inform you of any computer-security incident that will materially impact customers for four or more hours. Make sure your vendor agreements specify the contact at the institution (by role, not name) and contact information for any incident notifications. You don’t want the vendor to send the message to the wrong person or someone who is unlikely to understand the implications.The sooner a breach is discovered and addressed, the less it ends up costing a company, research has found. Breaches that take less than 200 days between occurrence and remediation cost 37 percent less than when it takes more than 200 days, according to IBM and Ponemon.The cost of an outdated, untested incident response planCompanies that use tabletop exercises or other simulations to test their incident response plans often catch breaches sooner. The study found that breaches cost $1.23M more when a company lacks an incident response team or tested plan.HOW TO REDUCE THE COST OF A DATA SECURITY BREACH AT A BANK OR CREDIT UNIONThe rule goes into effect April 1, 2022, but don’t wait until the last minute to address necessary changes to your institution’s incident response plan.
52 » PA Bankers Association pabankers.comvendorARTICLESinimizing budgetary risk is consistently top of mind for organizations, particularly as commodity prices across the board continue to uptick, from gas to food to electricity and natural gas. While no one can predict where energy prices will go, or when market volatility as it relates to electricity and natural gas prices will subside, what businesses can do is take smart steps to minimize budgetary risk through trusted procurement strategies, as well as implement technologies and solutions to reduce energy usage. APPLES COMPARISON An integral component of an energy management strategy is to seek consultation regarding market timing, the procurement process, and suppliers and their contracts. Businesses that are proactive have a competitive advantage when addressing their energy supply needs. They are positioned to make more fully informed decisions that decrease costs and provide improved budget planning and forecasting.A core component of risk management is mitigating exposure to volatile energy prices that can cause budget uncertainty and operating cost increases. Effectively managing energy supply contracts yields substantial cost reductions and improved business performance. For organizations in deregulated energy states, energy choice allows you to shop around for the most favorable rates. Getting a true green-apples-to-green-apples comparison of pricing across a pool of carefully vetted suppliers leaves you well-positioned to secure not only the best pricing, but also the most favorable contract terms. Pro Tip: Beware of false promises. If it seems too good to be true, it just may be. The unfortunate downside to energy choice is the slew of bad actors that are too eager to take advantage of organizations that don’t have the time or knowledge to fully understand the complexities of energy procurement and supply contracts. ACT SOONER RATHER THAN LATER A common misconception is on the timing of when energy supply agreements can be executed. Many believe they must wait until just before their current contract expires to decide what to do next. They are not aware they can begin the process much earlier, in fact, at any time during their current contract term without negotiating or harming their current contract.Favorable electricity price trends also greatly determine when executives evaluate prices and suppliers, as well as when to go the route of a consultant. The question is, do you have adequate time and knowledge to track energy price trends and compare suppliers? For a business that consumes one million kilowatt hours of electricity annually, the cost difference between supplier price quotes could be several thousand dollars annually.Pro Tip: Many utilities and suppliers require as much as 60-days’ notice of your intent to drop or add service, so do not wait until the last minute or you may be subject to additional fees. Further, energy prices become more volatile as the delivery date gets closer due to the impact of weather so starting early is generally the best approach.LIGHTEN UP, BRIGHTEN UP Lighting is one of the largest electricity expenses in your buildings, Minimizing Budgetary Risk: Effective Energy Management M
PA Bankers Association » Summer 2022 53ABOUT THE AUTHOR: pchaconas@appienergy.com or 667-330-1152which is why upgrading to LED lighting is one of the smartest decisions you can make. With on-bill funding, tax rebates and incentives, significant savings on your energy bill, and little to no operational disruption to install the new lighting, it’s often referred to as the ‘low hanging fruit’ for reducing energy costs and usage, and for good reason.An LED retrofit is ideal for organizations with lights running 10-12+ hours a day and can drastically reduce current energy costs. What many often don’t realize is the amount of money and time being wasted on the maintenance of old, inefficient lighting. With LEDs guaranteed to last at least 5 years, that’s added savings to your already reduced energy bill. What’s more, LEDs have the ability to improve the visibility and aesthetic with brighter and cleaner looking lights, yielding an improved product, increased worker productivity, and improved safety. Pro tip: Explore funding opportunities for LED retrofits. In addition to working with a partner that can effectively identify incentives and rebates, the right team can also bring funding opportunities to the table. Qualified clients can get an entire lighting project installed and funded without any upfront capital. CURTAIL YOUR WAY TO SAVINGS The least expensive kilowatt hour is the one you don’t use. One way to curb costs is to curb usage. Demand response is a financially rewarding energy solution that reduces your organization’s energy usage during periods of high stress to the electric grid.For large electricity consumers, particularly where electricity usage is consistent, it could be as simple as not running or curtailing energy usage during certain times of the day during peak events. In addition to realizing the savings associated with your energy curtailment, you’ll also receive payment for doing so, allowing you to maximize earnings while minimizing operational disruption.Pro tip: As summer heat waves roll through, organizations can expect to receive peak alerts from their local utility or supplier. While no one can know which days or hours will end up being called for the year, reducing your demand can help lower energy costs by lowering your peak load contribution (PLC) tags. Peak demand typically arises in afternoon hours, during summer months. Usage can be reduced by dimming lighting, adjusting thermostat settings, shutting down equipment, or using onsite power generators.EXPLORE YOUR OPTIONS Renewables are certainly on the rise. A quick scan of the news cycle reflects the increasing push for renewable energy sources, not to mention pressure many businesses are facing from stakeholders to reduce greenhouse gas emissions. The good news is there are a wide variety of options, from installing solar PV on your rooftops, adjacent land, or parking lots, to procuring green energy by way of renewable energy certificates (RECs). For organizations where solar is a good fit, the benefits include increased energy savings, reduced energy usage, improved resiliency and independence from the grid, and more. Pro tip: Not all solutions are the right fit for every business, so taking a comprehensive look at your energy goals and balancing those with budgetary constraints and mounting pressure from your stakeholders, supply chain, or pending legislation, is key.THINK BIG PICTURE Whether you’re securing a new energy supply contract or exploring on-site generation, an effective energy management strategy is all-encompassing. Taking a comprehensive, holistic look at your current energy usage, as well as your operations, budget, and goals – both long and short term – positions your organization for continued success while minimizing budget uncertainty. There are many moving pieces to an effective energy strategy; by considering how all of those pieces fit together, you’ll be saving yourself valuable time and money. NEXT STEPSGet the conversation started with an expert from APPI Energy. Our complimentary assessment comes at no upfront cost or obligation to you. Contact your dedicated energy consultant, Peter Chaconas, at pchaconas@appienergy.com or 667.330.1152.
54 » PA Bankers Association pabankers.comvendorARTICLESn a world with lots of CRM providers, is it ever better to go with a smaller, industry-focused provider rather than a large international company? There’s no doubt, it can be compelling to affiliate yourself with a large, heavily equipped Goliath-of-a-company. The reasons behind this urge are understandable. Goliath is a giant, has a lot of people around him, and if nothing else, wields power by virtue of deep pockets and resources.The industry-focused provider, to continue the metaphor, is often more like Goliath’s nemesis, David. Smaller and not carrying a big sword or a giant hammer, his entourage is not large and likely not as tech-flashy, but he’s attentive, loyal, and knows how to attend personally to those in his care. Better yet, he knows how to best a giant at his own game, usually by knowing your target well and exercising patience and precise aim. Peter Marsh in a recent article says, “For some companies in mature or highly-specialized industries, there is a growing realization that horizontal CRM solutions – such as Salesforce, Microsoft Dynamics, SugarCRM, Oracle and others – aren’t always great at supporting the specific business requirements of these vertical industries.” There’s no doubt that Goliath is doing business. He is likely draping his list of conquests in front of you, like notches on his belt. Maybe this is what you need? But, maybe it’s not. Sometimes, Goliath is just a pushy guy with big biceps and a big mouth.In those moments, David, the one who is resourceful, who aims with laser-like precision, and has real heart, particularly when in the battle for family and friends, is the best choice. When is that time, and how do you recognize it? Here are four situations when David beats Goliath for your business.SOLUTIONAre you looking for a CRM solution that offers tools across your enterprise? When you want to connect all your departments (think customer service, retail, commercial, wealth management, etc.) and offer your customers a unified front, industry-specific CRM’s are working hard to unite your organization and streamline the customer experience. In addition, since with an enterprise-wide solution every department is engaged with the CRM, some providers offer a component to motivate employees with both an incentive and measurable goals tool.YOU NEED PERSONAL ATTENTIONAre you a bank with unique aspects to your operation? Sometimes your system and practice choices require special care or customization in order for a CRM to fit your service. Or more simply, customers deserve the attention necessary to achieve real success with their CRM. Laserfiche says it like this: “Even if you’re not the vendor’s only customer (and you hope you’re not, frankly), you want to feel like you are. Do you only get their attention when they’re not busy with some other client? Do they blow you off in favor of a client they like better or consider more important? Then they’re not the vendor for you.” Sometimes Goliath is so tall, he can’t hear you way down there. And yelling louder is no fun.YOU NEED A BANKING PRODUCT DELIVERED BY BANKERSForbes says, “Agency fit is about more than bells and whistles. Ask When David Beats Goliath
PA Bankers Association » Summer 2022 55CINNAIRE.COMTransforming Communities. Transforming Lives.It takes more than good intentions to transform communities. It takes capital, development capacity and trusted partnerships. In 25 years, we’ve delivered more than $7.3 billion in community impact. Overcoming challenges. Solving problems. Backed by a commitment to creating healthy communities that has never wavered.The Return on Investment: Safe, Aordable Homes. Healthy Communities. Better Lives.yourself this: What is the makeup of the team you will actually be working with?. . . Do they have the experience required . . .?” Certainly in the financial services industry, this means you want bankers working for you: not only because they have the right experience, but other qualities like they speak your language, they recognize your business cycle, and they feel your anxieties. If you want to skip the time drain and the translation pain with a big company who doesn’t speak your language, consider the David-sized provider here.IMPLEMENTATION (NO OUTSIDE CONSULTANTS)It is not uncommon with large CRM providers for them to hire an outside consulting team to oversee the implementation, integration, and training for the product. Outside consultants often don’t understand the unique nature of your business. For instance, do they understand how you want to manage your loan pipelines, or how you want to handle service resolutions, or how referrals move across business lines? Let’s face it; it has real drawbacks. Smaller providers should provide an implementation team that remains part of your ongoing account team. Also, if you go with a smaller provider, ask about training for the product to ensure that industry experts can guide you with best practices.If you find one or more of these situations matches your own, consider exploring the smaller, industry-focused CRM providers, like 360 View. While Goliath has his head stuck in the clouds, David has got a sunny-clear view, which might make his aim on your behalf killer-good.ABOUT THE AUTHOR:
56 » PA Bankers Association pabankers.comBANK HEALTH CARECONSORTIUM OF PA*43 Banks Received Credits inSurplus of Over $16.7 Million in2020 With an AverageNet Funding Increase in Single Digits.Wayne Whipple, (717) 255-6925wwhipple@pabankers.com PA Bankers Members *Vendors provide products and services to both financial institution members and Affiliate Members.ABA INSURANCE SERVICES*Bond, D&O, Cyber Insurance, andEmployment Practices LiabilityPatricia Williams, (216) 220-1280pwilliams@abais.comACCUME PARTNERS*Outsourced Internal Auditingand Risk Management ServicesNicole Lloyd, (717) 903-3142nlloyd@accumepartners.comANDERSON GROUP*Integrated Marketing andCommunications andBusiness IntelligenceLinda Anderson, (610) 678-1506LAnderson@ThinkAnderson.comAPPI ENERGY*Electricity and NaturalGas Procurement Services, UtilitiesManagement PlatformMargo Madden, (667) 330-1239mmadden@appienergy.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.orgTHE BAKER GROUPAsset/Liability ManagementSoftware and ServicesCharles Amis, (405) 415-7231Charlie@gobaker.comBANKTALENTHQ*Diversity is Essential -Find Talent in all the Right PlacesWayne 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.comCRA PARTNERSReceive High-Yielding CRA CreditTerry B. Rooker, (901) 529-4781terry.rooker@SHCPFoundation.org
PA Bankers Association » Summer 2022 57GLOBALVISION SYSTEMS, INC.Anti-Money LaunderingCatherine Lew(818) 998-7851 x128clew@gv-systems.comEVOLV*Merchant Processing, Search EngineOptimization, Website Design and SocialMedia ManagementJoy West, (540) 235-7111Jwest@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.comTHE FULCRUM GROUPINTERNATIONAL, INC.*Reviewing, Re-Negotiating andBidding Check Printing RelationshipTed Amon, (770) 736-5787ted@thefulcrumgroupintl.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.DELUXE CORPORATION*Check ProgramTodd Wroblewski, (724) 625-5599todd.wroblewski@deluxe.comPWCAMPBELL*Planning, Design Coordinationand Construction ManagementErin Campbell, (800) 253-7430erin.campbell@pwcampbell.comINVESTORS TITLEINSURANCE COMPANYMulti-Bank Owned TitleInsurance ProgramKaren Barnett, (419) 577-5900kbarnett@invtitle.comKEYSTATE CAPTIVE MANAGEMENTCaptive Management andInvestment Portfolio ServicesBrian Amend, (302) 425-5158bamend@key-state.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.comTHE KAFAFIAN GROUPPerformance MeasurementRobert E. Kafafian(973) 299-0300 x106rkafafian@kafafiangroup.comGRADIENT CYBER*Automated CAT Tool & DigitalForensic Investigation, NetworkConsensus CybersecurityChris Warman, (412) 600-7860cwarmanjr@gradientcyber.comNCONTRACTS*Integrated Compliance,Vendor and Risk ManagementNick Radocckia, Vice President Sales (781) 424-4650nick.radocckia@ncontracts.comNFP EXECUTIVE BENEFITS*BOLI, Executive Compensationand Long-Term CareDavid Shoemaker, CPA/PFS, CFP®(901) 754-4924david.shoemaker@nfp.comNEW ERA TECHNOLOGY*Managed Service Provider for Voiceand Data CommunicationChristian Ericson, (973) 474-1828christian.ericson@bitsnetwork.com
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