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PA Banker Magazine 2020 Q4

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thisISSUE IN EVERY ISSUE 6 Chairman s Insights 8 From the CEO to the CEO 10 Ten on Page Ten 12 Community Corner 16 From Your Peers 26 Government Relations 38 Vendor Articles 12 FEATURES 18 125th Anniversary Thank you 20 PA Bankers 1895 Convention A Snapshot 20 on the cover wrappingup OUR 125TH ANNIVERSARY QUARTER 4 VOLUME 22 3 22 PA Bankers Diversity Equity Inclusion Advisory Group 24 Richard Allen Pollard Tribute THANK YOU FOR YOUR SUPPORT OVER THE LAST 125 YEARS WRAPPING UP OUR 125TH ANNIVERSARY PA Bankers Association Quarter 4 2020 3

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Is your motto safety first Risk is on the table in every profession the goal is to minimize risk by incorporating safety procedures and changing the culture Bankers Alliance s family of services was created to bring bank compliance best practices to every aspect of your business Find out how to partner with trusted compliance services and resources that truly make a difference by calling the B A Membership Team at 833 683 0701 or by emailing info bankersalliance org

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PA Bankers STAFF DIRECTORY magazineSTAFF General Phone Switchboard 717 255 6900 Managing Sara E Hocker Editor President Chief Executive Officer J Duncan Campbell III dcampbell pabankers com 717 255 6916 External Relations Amy L Doyle External Relations Administrative Assistant adoyle pabankers com 717 255 6937 Erin L Kanter Director Advocacy Government Relations ekanter pabankers com 717 255 6910 Daniel J Reisteter Vice President Government Relations dreisteter pabankers com 717 255 6933 Federal Government Relations General Counsel Lisa R Brandt Legal Assistant lbrandt pabankers com 717 255 6936 Louise A Rynd Esq General Counsel lrynd pabankers com 717 255 6935 Finance Operations Jill A Ametrano Registrar and Records Coordinator jillametrano pabankers com 717 255 6927 Michelle L Bosch Receptionist and Administrative Assistant mbosch pabankers com 717 255 6900 Connie A Ferraro Director Information Technology cferraro pabankers com 717 255 6921 Sara E Hocker Director of Marketing Communications shocker pabankers com 717 255 6912 Annette M Moshgat Director Finance amoshgat pabankers com 717 255 6938 Michelle L Staton Senior Vice President Finance Operations mstaton pabankers com 717 255 6923 Courtney M Young Communications Marketing Coordinator cyoung pabankers com 717 255 6915 Member Relations Professional Development PA Bankers Services Corporation Jacqueline A Catalano Vice President Professional Development jcatalano pabankers com 717 255 6939 Tiffani A Chambers Director PA Bankers Services Corporation tchambers pabankers com 717 255 6928 Karen J McDermott Director Member Relations kmcdermott pabankers com 717 255 6914 Linda A Scott Member Relations Administrative Assistant lscott pabankers com 717 255 6903 Cynthia L Wallett Senior Vice President Member Relations and Professional Development and Managing Director PA Bankers Services Corporation cwallett pabankers com 717 255 6913 Wayne R Whipple Vice President Business Development wwhipple pabankers com 717 255 6925 Editorial J Duncan Campbell III Advisors Jacqueline A Catalano Tiffani A Chambers Daniel J Reisteter Louise A Rynd Michelle L Staton Cynthia L Wallett Wayne R Whipple Courtney M Young PA Bankers Services Corporation Board of Directors and Officers President Jennifer A Poulsen Secretary M Theresa Fosko Treasurer J Duncan Campbell III Officers Gerard A Champi Trudy K Everhart Scott E Fritz Philip Freeman Thomas Graver Richard L Greslick Timothy G Henry Karl F Krebs David E Raven Tracy E Watkins Dale A Westwood Address Correspondence to paBanker Magazine c o Pennsylvania Bankers Association 3897 N Front St Harrisburg PA 17110 Tel 717 255 6912 Email shocker pabankers com paBanker Magazine is published four times a year by the PA Bankers Services Corporation Services Corporation a subsidiary of the Pennsylvania Bankers Association PA Bankers The Association serves Pennsylvania banks and financial 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 financial services organization supporting a diversified membership through volunteer participation a knowledgeable staff state of the art technology and a commitment to excellence paBanker Magazine is the official publication of PA Bankers Editorial The opinions expressed in articles by authors other than Association staff and officers are the responsibility of the authors only and not necessarily those of the PA Bankers the Services Corporation or its members All articles unless otherwise notied have been written by paBanker Magazine staff Questions and comments should be addressed to the Managing Editor PA Bankers members may reproduce any non commercial part of this publication with verbal permission from the editor All others must receive written permission from the editor prior to reproduction of any part of this publication Copyright 2003 PA Bankers Services Corporation All Rights Reserved Postmaster send all address changes to paBanker Magazine 3897 N Front St Harrisburg PA 17110 Printed by HAAS Printing Co Sponsored by Marilyn M Wisniewski Director Residential Schools Meeting Operations mwisniewski pabankers com 717 255 6934 PA Bankers Association Quarter 4 2020 5

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chairman sINSIGHTS J BRADLEY SCOVILL President CEO C N The Importance of Advocating for Our Industry s Future W e have all watched and continue to watch the 2020 election cycle with great interest both at the federal and state levels These election results will materially impact our banking industry What will a Biden Administration banking agenda include Who will lead the federal regulatory agencies What legislation will pass out of Congress And all these questions get even more difficult to answer without knowing what party will lead the U S Senate The pending run off elections in Georgia raise one other major question who will chair the Senate Banking Housing and Urban Affairs Committee Pat Toomey or Sherrod Brown There is no question that the outcomes of these elections matter for the future of our industry Specifically the regulations that are implemented will affect our ability to support our constituents making continued advocacy on behalf of our institutions customers and communities a critical effort moving 6 PA Bankers Association forward To be successful we must work with these newly elected legislators and officials to continue our mission of serving our customers and communities in the most effective way Advocacy is a key part of PA Bankers strategic efforts as the association offers several opportunities to connect with our state and federal legislators support pro banking candidates and advocate for positive banking legislation all year long Just this year at the state level we made great progress on advancing legislation aimed at protecting the Banking Fund from further transfer And we were successful in advocating for the need for permanent remote notarization with Act 97 of 2020 signed into law at the end of October While the association offers plenty of opportunities for our members to connect with legislators and advocate for the industry we must also do our part individually I encourage you to pabankers com

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join me and write to your members of Congress and urge them to support simplified PPP forgiveness attend one of our advocacy events even done virtually we have engaged in meaningful and effective discussions with policymakers or contribute to our state PaBPAC campaign small businesses suffered and the government put the responsibility to support the economy on us It was our job to help address these problems and we took the challenge head on We did what we do best we came together to serve our customers communities commonwealth and nation Although COVID 19 has prevented us from doing many things this year contributing to PaBPAC is one way that we can participate in political advocacy from home By contributing to PaBPAC we are doing our part to assist future campaigns of selected candidates for Pennsylvania Legislature and U S Congress that support the interests of our members and the banking industry There s still time to contribute to this year s campaign To read more about how you can contribute to the 2020 state campaign today please go to page 28 Just how much did we do to support and sustain our local communities and small business customers The Pennsylvania banking industry PA Bankers is one of the nation s leading state associations investing in the future growth and success of the financial services industry Known for providing advocacy and professional educational seminars conferences schools and other resources the association continually works to keep Pennsylvania s bankers competitive and support the current needs of the banking industry While these goals have always been at our core they are important now more than ever as our nation and commonwealth face the ongoing response to the COVID 19 pandemic with a transitioning government now in the foreground Nine months ago life changed as we knew it Our lobbies closed our customers lost their jobs Approved more than 173 000 Paycheck Protection Program PPP applications Granted more than 20 7 billion in PPP loans to small businesses and Saved hundreds of thousands of jobs Although it is our mission to continually serve our customers support our communities and aid in the stability of the commonwealth s economy these numbers are astounding And we know that we have not stopped there In a recent survey to our members it was clear that our industry has provided countless deferrals waivers and loan modifications worked around the clock to help our customers our neighbors our friends work through their economic hardship and given to the local food banks shelters hospital drives the United Way etc And we did all of this remotely or with skeleton crews without complaining This is the story that our policymakers need to hear and they need to hear it from us This is what banking is and why our industry is so critical to the nation s economic well being and our local communities sustainability As we continue to advocate for a bright future for our industry the possibility of being together again in person soon seems unlikely However as I have mentioned we still have important work to do and we can rely on the association s resources to make sure that we are supported accordingly PA Bankers continues to offer education and professional development seminars conferences and schools virtually Specifically our Advanced School of Banking was moved from July 2020 to January 2021 due to the pandemic I would encourage all of you to consider attending or sending several of your colleagues to this event and other PA Bankers events These programs are exceptional resources to develop next generation leaders and the future of our industry which is crucial in our current environment If you are interested in learning more about the program or PA Bankers current educational offerings please visit www pabankers com In closing I would like to thank you once again for all that you have done to support your communities and the industry during the COVID 19 pandemic I am honored to serve you as the 2020 21 PA Bankers chair privileged to work alongside you as we push the industry forward and truly proud of all that we have accomplished during this unique and unprecedented year Thank you and I hope you and your families have a wonderful holiday season PA Bankers Association Quarter 4 2020 7

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from the CEO to the CEO DUNCAN CAMPBELL President CEO PA Bankers Association What Have We Accomplished This Year 2 020 what a year This is a phrase that most of us have been repeating throughout the last nine months in some form as our nation has faced everything from the COVID19 pandemic to murder hornets and more We have been through a lot this year as an industry but we have accomplished even more As you will read in Brad s article Pennsylvania bankers approved more than 173 000 Paycheck Protection Program applications for greater than 20 7 billion This incredible effort was matched by your commitment to your local small businesses and communities some of whom are continuing to struggle to survive this pandemic And that positive momentum did not stop there Here at the association we also accomplished quite a few things while working remotely for three quarters of the year all of which was possible due to your ongoing support DIVERSITY EQUITY INCLUSION In May 2020 we delivered Diversity Equity Inclusion DEI resources to our members through our new website These resources include research training recruiting supplier 8 PA Bankers Association resources self assessments and more To further expand on these DEI efforts across the organization and the membership the association created a DEI Advisory Group to the board in August The group has now met multiple times and begun recommending new ideas for operational and strategic consideration To read more about PA Bankers new DEI Advisory Group and its recommendations please go to page 24 STATE GOVERNMENT RELATIONS On the government relations frontlines PA Bankers working with CrossState Credit Union Association and the Pennsylvania Association of Community Bankers spent a significant portion of the year advocating for amendments to be made to the PA Department of Banking and Securities Code In late October the state House unanimously passed HB 2862 introduced by Rep Sheryl Delozier R Cumberland which would bolster the Banking Fund by making it a trust fund with the goal of discouraging future General Fund transfers as happened in 2018 and 2019 The Senate version of this bill SB 1331 was introduced by Sen Dan Laughlin R Erie and is currently awaiting full Senate consideration PA Bankers continues to work with the other state associations to advocate for this issue on behalf of our members in both the House and the Senate Additionally our GR staff spent significant time advocating for permanent remote notarization In late October Gov Wolf signed HB 2370 introduced by Rep Mark Keller R Perry and an extension of SB 841 into law as Act 97 of 2020 This act now allows the Pennsylvania banking industry to continue to effectively provide notarization services and serve their customers and communities and we thank Representative Mark Keller Leader Jake Corman and Leader Kerry Benninghoff for their leadership and constant effort to get this bill passed TECHNOLOGICAL ADVANCEMENTS 2020 brought quite a few technological advancements to the association In March 2020 we made the decision to go paperless and successfully launched the PA Bankers App which allows users to stay connected with the association pabankers com

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and its members like never before In the app you are able to Register for events Update your personal business information Receive Instant Alerts notifications to stay informed and Advocate for the industry from any Have access to all event details i e speaker bios sponsor descriptions handouts logistical information and evaluations Access our updated training and events calendar Connect directly to the association s social media channels and stay up to date on the latest association news Browse for products and services for their institution Read paBanker on the go Access members only PA Bankers resources i e DEI digital banking and advocacy resources when logged in as a member location I would encourage you all to download the free app today by visiting the Google Play or Apple App Stores Following the launch of the PA Bankers App the association launched a new website after months of planning and development The new website features a fresh look members only content and innovative technology all on ONE website New features include Vendor Search Looking for a specific product or service Browse through 12 categories to find vendors that will help you to enhance your institution s bottom line Vendor Company Pages Easily access description and contact information for PA Bankers Affiliate Members and Select Vendors Digital Banking Resources PA Bankers has gathered several members only resources to help build support your digital approach including a digital banking statement worksheet digital banking framework worksheet and other resources DEI Resources This members only content features helpful tools to assist you in developing or maintaining your current DEI strategy including a DEI scorecard studies and other resources Flippable Publications Flip through the latest edition of paBanker on our new publications page New Navigation Advanced Technological Capabilities Alongside these two launches and our paperless initiative we made the decision to solely publish paBanker digitally Our readership continues to increase as we are able to produce comprehensive and time sensitive content for you each quarter To view the latest edition of paBanker at any time please visit pabankers com and select the Publications page under the Member Resources tab In closing we have accomplished so much in what has been nothing short of a once in a lifetime hopefully year On behalf of the entire PA Bankers staff I would like to thank you and your teams for your continued commitment and support of the association Without you none of these accomplishments would have been possible As our nation continues to navigate its way through the COVID 19 pandemic please know that we see you we support you and we thank you for all that you have done We will continue to move our institutions customers and communities forward and we will do this together because together we can make a difference Thank you PA Bankers Association Quarter 4 2020 9

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tenONpageTEN 10 Ways You Can Still Learn With PA Bankers Now that we have all gotten a little more comfortable with our new normal let s talk about how you can still enhance your banking knowledge from your computer Do not let the pandemic stop you from continuing your education with these 10 ways to learn with PA Bankers 1 VIRTUAL CONFERENCES With all the new technology and virtual platforms we are still able to host our larger conferences with multiple speakers and credit opportunities 2 VIRTUAL SEMINARS These are perfect if you do not have a lot of time Our virtual seminars are quick webinars that hit on hot ticket items that are relevant in the current industry environment 3 ABA TRAINING The ABA now offers facilitated online training self paced online training and the ABA certificate program Be sure to sign up through our portal to the trainings to get a member discount 4 ONCOURSE LEARNING WEBINARS Formally TTS OnCourse Learning provides live or on demand webinars to your financial institution on banking specific topics From the convenience of your desktop you can get additional training on everything from audits to compliance to customer service to marketing and more 5 FINPRO WEBINAR PACKAGE The FinPro webinar package provides timely and efficient training on key concepts that may differentiate between success and regulatory problems The package is a series of 24 webinars offered throughout the year 6 SELECT VENDOR WEBINARS Our Select Vendors provide webinars on topics outside of the banking industry that are still relevant to our industry 7 VIRTUAL SCHOOLS Our schools have also gone virtual The Advanced School of Banking will be our first virtual school with the same great experience but in a safe COVID friendly way Check back in the coming weeks for more information 8 PROBANK AUSTIN WEBINARS ProBank Austin provides bank compliance seminars and webinars throughout the United States that cover the relevant yet complex financial topics that are essential for doing business today Led by industry experts the seminars address current bank regulations operational procedures marketplace trends and the latest technologies Be sure to sign up through our portal to the trainings to get a member discount 9 DIVERSITY EQUITY AND INCLUSION RESOURCES Be sure to check out the new resources on the PA Bankers website While you re expanding your industry knowledge you can also expand your knowledge on important worldwide issues to better your bank and career 10 DIGITAL BANKING RESOURCES Despite the pandemic the banking world and the rest of the world has gone digital Need assistance with your digital strategy Our resources will help you get started today This is the perfect time to enhance your industry knowledge and even get some certifications while you are at it The industry is going to be changing frequently Now more than ever do not get stuck with outdated information Stay up to date with learning opportunities through PA Bankers 10 PA Bankers Association pabankers com

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The Baker Group Is Here to Help As American financial institutions along with the rest of the world face unprecedented times The Baker Group is ready with tools and services to help maximize the performance of Asset Liability Analysis Interest Rate Risk Monitor IRRM Your management team will find that The Baker Group s your institution quarterly review of the loan and deposit information That s why we re offering new clients our Software Solutions service Baker s Software Solutions Service Package Includes package for a outlined in the Interest Rate Risk Monitor and Asset Liability Analysis is an effective tool in managing your risk and performance six month free trial Not only will you have Baker Bond Accounting BBA access to our latest market research and insight The Baker Group will provide you with accurate easy to from our Financial Strategies Group you ll be included in all of our webinars There you ll hear the latest on how COVID 19 could impact your institution and its investment portfolio read reports delivered electronically to you each month Investment Analysis Advanced Portfolio Monitor APM The Advanced Portfolio Monitor is a key monthly report that we utilize to help you measure monitor and manage the overall risk and performance of your investments To obtain the resources you need to maximize the performance of your bank contact Ryan Hayhurst with our Financial Strategies Group at 800 937 2257 or via email at Ryan GoBaker com Member FINRA and SIPC Oklahoma City OK Atlanta GA Austin TX Indianapolis IN Long Island NY Salt Lake City UT Springfield IL Ryan GoBaker com www GoBaker com The Baker Group LP is the sole authorized distributor for the products and services developed and provided by The Baker Group Software Solutions Inc 800 937 2257 PA Bankers Association Quarter 4 2020 11

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communityCORNER IN HONOR OF OUR 125TH ANNIVERSARY we are celebrating our members commitment to the community With your unmatched dedication and support of the communities you live and work in you all make us PABankersProud every day Thank you 12 PA Bankers Association for supporting your communities and sharing your stories with us pabankers com

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PA Bankers Association Quarter 4 2020 13

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communityCORNER NEW TO PA Bankers Affiliate Members Banc Card of America 14 PA Bankers Association Welcome My Development Fund MYDF pabankers com

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FINANCIAL INSTITUTIONS SERVICES GROUP HELPING BANKS STAY COMPLIANT AHEAD OF THE CURVE BY PROVIDING RESPONSIVE FORWARD THINKING INNOVATIVE SOLUTIONS Internal Audit Model Validation Staff Augmentation BSA AML Consulting Regulatory Compliance SOX FDICIA Consulting Enterprise Risk Management Information Technology Audits Salvatore Zerilli CPA CAMS Managing Director Chair Financial Institutions Services szerilli mercadien com Princeton NJ 609 689 9700 Philadelphia PA 215 854 4059 Mercadien com 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 Quarter 4 2020 15

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from yourPEERS Emerging Leaders Network Congratulations to the 2020 PA Bankers H Y P E Award Winners I n September PA Bankers virtually awarded seven individuals with the PA Bankers Highlighting Young Professionals Excellence H Y P E Awards at the annual Emerging Leaders Conference The PA Bankers H Y P E Awards program sponsored this year by FHLBank Pittsburgh highlights the accomplishments of seven young industry professionals aged 40 years or younger for excellence within their financial institutions organizations the banking industry and their communities Many individuals from banks organizations across the commonwealth were nominated for the six different award categories in the program and winners included ACHIEVER This award was presented to a financial institution member and Affiliate Member or industry related service provider Melissa Wilkins The Dime Bank and Lindsey Snavely Pillar Aught This award celebrates a professional who produces work more effectively than their peers is considered a subject matter expert and knows how to attain results by their own accord and through others CHANGE AGENT Levi Diltz First Keystone Community Bank This award recognizes a professional who is likely to initiate new ways of doing things and is a proponent of taking risks to further the organization COMMUNITY AMBASSADOR Jessica Thorne First Keystone Community Bank This award is given to a professional who is interwoven and involved in their community through nonprofit and philanthropic initiatives DEVELOPER Valerie O Hare The Dime Bank This award recognizes a professional who has a natural knack for building talent and wants to see others succeed and grow to their fullest potential STRATEGIC THINKER Jesse Brocious First Commonwealth Bank This award celebrates a professional who is a forward thinker shows business acumen and has a good understanding of the market and industry in which their organization operates TEAM PLAYER Laurel Fidrick First Keystone Community Bank This award recognizes a professional who is collaborative and a good communicator The winner consistently seeks others input and opinions and uses it to shape their ideas and generate consensus Congratulations to all seven winners and thank you for your commitment to your communities and the industry 16 PA Bankers Association pabankers com

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from yourPEERS Women in Banking Network Women in Banking Recognition of Excellence Program T hrough the Women in Banking Recognition of Excellence Program we wish to acknowledge rising stars and leaders throughout our industry going the extra mile to promote and inspire women in the workplace to reach their full potential We are excited to announce that Schneider Downs and Pillar Aught will once again serve as the co sponsors of this program Each year the program honors four individual leaders during the annual Women in Banking Conference in the three categories Anyone member or non member can nominate a candidate and prior nominees may be re nominated NOMINATING CATEGORIES PATRICIA A HUSIC WOMAN OF INFLUENCE AWARD Celebrating a woman who has achieved success within a leadership role and displays courage values and ethics as well as undeniable enthusiasm for the industry her institution and the community TOMORROW S PROMISE AWARD Celebrating a woman aged 35 years or younger who is making a significant impact in her industry and community making her one to watch CHAMPION FOR WOMEN AWARD 2 AWARDS Celebrating a seasoned male or female professional at a PA Bankers financial Institution and or Affiliate Member who continuously promotes and inspires women in the workplace to reach their full potential INTERESTED IN NOMINATING YOUR PEERS 1 Visit www pabankers com 2 Click on the Member Resources tab 3 Select Awards Programs 4 Scroll to the Women in Banking Recognition of Excellence section 5 Fill out the nomination form 6 Return the form to Karen McDermott kmcdermott pabankers com PA Bankers Association Quarter 4 2020 17

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ANK OU s r a e Y 5 12 PA Bankers Association Quarter 3 2020 19

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napshot S a on i t n ve on C 5 9 18 s er k n a PA B o Date Dec 18 19 1895 elphia Pa ad hil P in l ote H al nt ne i t on C e o Location Th 321 o Number of Members in 1895 Meeting Notes Meeting was called to order at 10 a m by William H Rhawn president of the National Bank of the Republic of Philadelphia and chairman of the Committee on Organization of the PA Bankers Association The Pennsylvania Group Plan was adopted which divided the association into eight geographical Groups Each Group was made autonomous in terms of its operations and responsibility of its own officers and Executive Committee The chairmen of the Groups and the officers of the association made up the Council of Administration which led the strategic efforts of the association The following officers were selected President Richard H Rushton cashier Fourth Street National Bank Philadelphia Vice President Thomas P Day cashier People s National Bank Pittsburgh Treasurer William L Gorgas cashier Harrisburg National Bank Secretary Frank M Horn president National Bank of Catasauqua Catasauqua Attendees 175 attendees comprised of PA Bankers members Representatives of local state and national government Representatives of various civic endeavors commerce industry education and Philadelphia press Representatives from the American Bankers Association and New York State Bankers Association Challenges The convention coincided with a streetcar strike in Philadelphia which led to civil disorder and riot This strike led to reduced expected attendance Gov Daniel H Hastings was due to speak at the convention but he was forced to cancel after coming down with a disagreeable case of chills and fever Comptroller of the Currency James H Eckels and Commissioner B F Gilkeson Department of Banking of the Commonwealth also were forced to cancel due to the circumstances Information was pulled from Pennsylvania Birthplace of Banking in America by Belden L Daniels 1976 20 PA Bankers Association pabankers com

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INVESTMENT BANKING PA Bankers Association Quarter 4 2020 21

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feature Introducing PA Bankers Diversity Equity Inclusion Advisory Group Bolstering the industry s diversity equity inclusion DEI efforts has been a key portion of PA Bankers strategic plan over the last few years This year we made great headway in this initiative by creating a DEI statement and resources for our members which corresponded with the launch of our new website in May and include a sample DEI scorecard research training recruiting supplier diversity resources self assessments etc PA Bankers DEI Statement We promote and encourage a diverse equitable and inclusive culture that values and supports all voices across our organization We are committed to expanding access and opportunity and to eliminating barriers We will promote DEI proficiency to our member banks We will do this by providing resources to support our members so they may develop and meet sustainable DEI goals To expand on this and the DEI efforts across the association and membership we created a DEI Advisory Group in August 2020 which will support and advise the board and senior staff on the following items Establishing a sustainable DEI initiative for PA Bankers Ensuring a diverse and inclusive association board and organization Developing facilitating DEI training for our members Developing expanding and evaluating potential resources and partnerships that support our members recruitment retention and advancement efforts Developing supplier diversity partnerships or resources to assist members with their supplier diversity efforts Evaluate metrics used to measure DEI efforts across the entire organization and Other efforts and initiatives as needed This group includes the current chairs or their designee of the Women in Banking and Emerging Leaders Committees select banker representatives with diverse backgrounds as well as others from outside of the organization with direct involvement in DEI efforts within their organizations The initial advisory group includes the following individuals Sharifa Anderson FHLBank Pittsburgh William Gonzalez Quaint Oak Bank Joe Bower CNB Bank Marsha Jones PNC Bank Brandy Burnham AHEDD DisabilityIN Nicole Burrell Wells Fargo T Michael Price First Commonwealth Financial Corporation Dr Karen Carmack F M Trust Michelle Rios Dominguez C N Dr Linda Eagle Global Insights Bernard Tynes Penn Community Bank Latoya Edmunds Philadelphia OIC James Wang Asian Bank The group has met several times already to review the association s DEI efforts to date and make recommendations to continue building a strong foundation as we work collectively to shape the future of the association and our industry Some of the initial recommendations were to revise the PA Bankers DEI statement and survey PA Bankers members on their current DEI efforts to see where they are what successes they have had thus far and what PA Bankers can provide to them Have questions or suggestions for our DEI Advisory Group Contact Michelle Staton mstaton pabankers com today 22 PA Bankers Association pabankers com

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SOMEONE IS MAKING MONEY ON TITLE INSURANCE IT SHOULD BE YOU It s like owning your own title insurance company only better PA Bankers Services Corporation along with Investors Title Insurance Company will help you become part of a multi bank owned title insurance agency and share in the pro ts every time title insurance is written To learn more simply give us a call at 717 255 6925 and we ll show you how your bank can earn non interest income from title insurance PA Bankers Association Quarter 4 2020 23 PA Bankers Association 50 Volume 21 1 Quarter 1

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feature RICHARD ALLEN POLLARD Oct 17 1946 Sept 18 2020 By his loving friend and roommate Robert E Kafafian R ichard Allen Pollard age 73 of Upper St Clair Pennsylvania passed away unexpectedly on Friday Sept 18 2020 Management Association RMA in Philadelphia at the time where Dick was a regular speaker They fell in love and were united in marriage on Nov 5 1988 Dick then coerced Susan originally a northern New Jersey girl to move to Pittsburgh where she remains today Dick as he was affectionately known and in his later years Father Dick was the beloved husband of 32 years to Susan Compton Pollard loving father of Christopher Desiree Pollard Laura Brian Okerberg Jean Pollard and Mary Pollard and grandfather of Reed Cole Emmett Gwen Rimma Emma and Anastasia A proud Penn State Alumnus Dick had a wide ranging career beginning at Pittsburgh National Bank now PNC in commercial credit while completing law school at night at Duquesne University Dick s law practice concentrated on commercial banking and bankruptcy law with several Pittsburgh firms including Pietragallo Bosick and Gordon and his own firm Pollard Walker and Vollmer He became know by many as one of the finest loan workout and bankruptcy attorneys in the financial services industry A much sought after speaker Dick gave hundreds of speeches lectures sermons and presentations before business legal and religious audiences and served on the faculty of numerous banking schools including teaching for over 30 years for the PA Bankers In addition he lectured on many diverse subjects from Scottish and American history to Christianity and Islam Dick authored a book titled Reflections on Things That Matter a chronological compilation of history beginning with Creation The Big 24 PA Bankers Association I had the good fortune of meeting Dick in August 1985 at the PA Bankers Advanced School of Banking where we were both faculty members I subsequently met Susan the following March at the school s spring faculty meeting at Bookbinders Restaurant in Philadelphia We all immediately became dear friends and Dick and I were roommates at the school for over 30 years Bang through the events of today He was ordained an Episcopal priest in 2004 and served at several churches including St Paul s Mt Lebanon Christ Church North Hills and All Saints a successful church he planted in 2009 Dick was a dedicated Scot with a love of all things Scottish and a member of the St Andrew s Society of Philadelphia as well as founding president and member of the St Andrew s Society of Pittsburgh He dearly loved his wife his children and grandchildren his friends his dogs his cars his cigars and his beer I frequently remember bartenders asking him what kind of beer he d like to drink and he d often reply give me something interesting He was a friend to all loving loyal patient caring and kind Dick met the love of his life Susan in 1985 Susan worked for the Risk We lived through many late nights lots of alcohol numerous rounds of golf and more laughs than any human being could possibly handle or deserve For those of you that know about joke night Dick and I somehow became the founders of this auspicious annual event I really can t explain it you just had to be there Upon ending these late evenings we d often find ourselves back in our dorm room finishing the day in prayer together We d pray for our spouses children relatives friends our profession our health and our blessed lives One night around the time that Dick and Susan were contemplating adopting a child from Russia Dick and I were up almost the entire night discussing the possibility of proceeding with such a process After all Dick was older and had two children from his first marriage and the potential challenges were unknown We prayed together and pabankers com

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talked for hours until Dick felt that he was ready to proceed with the adoption I ll never forget what he then said to me What convinced me is that whatever life Susan and I can give this child in the United States will be materially better than any life they might have in Russia Little did he know at that time that there would be two children and the blessing that Jean and Mary are today Dick believed in the word of God and the power of prayer What many might not realize is that he was a biblical scholar and a flat out genius He loved our father God in heaven and his son Jesus with all his heart and soul He had a perfect score on his SATs and may have ended up at Harvard if family circumstances didn t keep him close to home in Ridgeway Pa I ve always admired his intellect and how he knew more about my Armenian culture and history than I ll ever know He always remembered to call me or send a note on Armenian Christmas and Armenian Remembrance Day Father Dick met my dear wife Pauline the same night that I did and he and Susan became our closest dearest friends Pauline and I were blessed to have Dick officiate our wedding and on June 22 2019 we had the honor of Father Dick presiding over our daughter Nicole and her husband Marc s wedding What a blessing Anyone who knew Dick knows that he had a dry never ending and enormous sense of humor At my daughter s wedding he told a story of Satan bursting into a church full of parishioners As the congregation saw who had entered they all quickly exited the church except for one man Satan approached the man and said Don t you know who I am The man said I know who you are Satan then said Aren t you afraid of me to which the man replied No I m not afraid of you Satan then said Well why is everyone else afraid of me but you re not The man replied Let me tell you buster I ve been married to your sister for 35 years and there ain t nothing I m afraid of that the COO of the Bank is a lawyer and originally from Pittsburgh He happened to notice that an employee on our website was previously a boss of his when he was a lawyer in Pittsburgh It was obviously Dick who in recent years had been an adjunct to our firm Here is what he wrote to me upon learning about Dick s passing And then before Father Dick prayed for our meal the band had just finished playing a country song which prompted him to say That song reminded me of that old country song I feel so bad now that you re gone it s almost like having you here Bob I am so sad to hear of Dick s passing He was truly an original and the world is a lesser place without him It was through him that I first realized the benefits of a multidisciplinary approach to problem solving He was one of the few bankruptcy attorneys I have ever met that not only understood the analytical aspects of banking but the real world challenges of being a creditor and running a bank I ll never forget that he once told me that the name Dick is not given but must be earned Although I have not spoken to him in over 20 years he still influences my work and my life Mike Dick and I talked often Our final conversation with him was the Saturday before his passing Pauline and I had just left Cabela s when Dick called We discussed what we were shopping for and naturally Dick gave us his opinion about everything As we always did we discussed each one of our individual family members We then ended our conversation as we also always did with Dick saying love ya boss and me saying love ya Father Little did we know that it was the last time we would speak I ll never stop loving him and pray that someday we ll be reunited in heaven He s a blessing to everyone whose life he touched This became so apparent to me when recently our firm was hired by a bank in Alaska It turns out Dick we miss you terribly already but we know that you re in a good place and holding court Be well and keep the beer taps flowing and the cigars lit We ll be there soon enough where we can all be together at the ultimate joke night and enjoy the eternal life that Jesus has promised us Until then God s richest blessings my dear friend ABOUT THE AUTHOR BOB KAFAFIAN IS PRESIDENT CEO OF THE KAFAFIAN GROUP a consulting firm serving the banking industry He has been a frequent speaker and faculty member for PA Bankers as well as a dear friend of Dick Pollard since 1985

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governmentRELATIONS State Legislative Updates THE BANKING FUND The PA Department of Banking and Securities Banking Fund is a special revenue fund composed of monies received from fees assessments charges and penalties collected or recovered from persons firms corporations or associations under the supervision of the Department It provides for the administration of the Department and regulation of the financial services industry The Institution Resolution Restricted Account is to be used at the discretion of the Secretary in the event of a seizure or liquidation of a financial institution association or credit union Not until after the 19 20 Governor s budget report request was published did PA Bankers learn that a transfer of 21M from the Banking Fund had been made to the General Fund in June of 2018 citing the authority granted by Act 44 of 2017 to make up to 300M in transfers from special fund accounts Use of existing state accounts was initially proposed by a 26 PA Bankers Association group of PA House Republican members as a means to avoid tax increases On Oct 19 the state House unanimously passed House Bill 2862 the legislation that is the second iteration introduced in the House of the proposal to establish the Banking Fund as a separate trust fund within state government The purpose of the bill is to discourage future transfers out of the fund into the General fund as happened in 2018 and 2019 The bill introduced by new House Commerce Committee Chair Sheryl Delozier R Cumberland passed with no debate On Oct 21 the Senate Banking and Insurance Committee considered amended and unanimously reported Senate Bill 1331 the Senate version of the Banking Fund legislation introduced by Committee Vice Chairman Dan Laughlin R Erie PA Bankers learned that since the introduction of these two bills the Department of Banking and Securities had pabankers com

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concerns with establishing both the Banking Fund and the Institution Resolution Account within the Fund as separate trust funds so the Department developed the amendment that was offered and adopted to Senate Bill 131 the Banking and Insurance Committee s consideration PA Bankers the Pennsylvania Association of Community Bankers PACB and CrossState Credit Union Association did not object to the amendment Majority and Minority Chairs Mario Scavello R Monroe and Shariff Street D Phila were very supportive of the legislation When the Legislature returned in a lame duck session in November they considered legislation that dealt with the remainder of the fiscal year 2019 2020 budget thus neither HB 2862 and SB 1331 saw further action PERMANENT REMOTE NOTARIZATION AUTHORIZATION On Oct 20 the state Senate considered and unanimously passed House Bill 2370 Rep Mark Keller s R Perry legislation strongly supported by PA Bankers that would permanently authorize remote notarization in the commonwealth Since the bill had previously been amended in the Senate with technical changes requested by the PA Department of State the legislation had to return to the House for a vote on concurrence in those amendments by the House The Governor signed the bill on Oct 29 as Act 97 of 2020 The current authority for remote notarization is tied to the Governor s March 6 emergency disaster declaration order now extended for a third time to Feb 6 and ends 60 days after the expiration of that order Thus it was important to have legislation enacted providing for permanent authorization PA Bankers is very appreciative of the targeted grassroots advocacy efforts various member bankers participated in with key legislators such as Senate Majority Leader Jake Corman R Centre Senate Minority Leader Jay Costa D Allegheny House Majority Leader Kerry Benninghoff R Centre House Minority Leader Frank Dermody D Allegheny and others over these past several months and for these legislators support of this bill The association is especially appreciative of the efforts by Representative Keller who is retiring at the end of this session for sponsoring continuously advocating for and championing his bill through the legislative process ELDER FINANCIAL ABUSE PREVENTION LEGISLATION The House version of legislation amending the Older Adult Protective Services Act that contains a number of provisions PA Bankers supports that would assist in preventing elder financial abuse House Bill 1930 was voted out of the House Aging Committee on June 23 There was no further legislative action on either House Bill 1930 or the Senate version of the legislation Senate Bill 819 in during the fall session and no further action is anticipated if the Legislature reconvenes for a postelection session RESUMPTION OF EFFORTS TO IMPLEMENT FIDM FOR COLLECTION OF PAST DUE TAXES The PA Department of Revenue resumed discussions among the Department PA Bankers PACB and CrossState Credit Union Association to work towards implementing a Financial Institution Data Match FIDM Program for the collection of delinquent taxes Discussions had been put on hold earlier in the pandemic PA Bankers is awaiting a revised financial institution agreement for review after providing further comment and suggestions earlier to the Department earlier this fall The Department intends to begin implementing the FIDM program in the first quarter of 2021 COVID 19 ECONOMIC ASSISTANCE PROPOSALS On July 6 the PA Housing Finance Agency PHFA began accepting applications for the 25 million Pandemic Mortgage Assistance Grant Program that was enacted by the Legislature as a result of federal CARES Act funds that came to Pennsylvania The grants must be made to eligible borrowers that qualify by Nov 30 PA Bankers provided some suggestions regarding the administration of the program to PHFA Through administrative action PHFA made some changes to the program to increase its effectiveness and extended the deadlines period for applying to Nov 4 The 225 million small business assistance program being administered by the Department of Community and Economic Development and the 17 Community Development Financial Institutions began accepting applications on June 30 PA Bankers Association Quarter 4 2020 27

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governmentRELATIONS A Conversation With The 2020 William S Latoff Advocacy Award Winner B lair Rush southeast regional president of C N chair of the Government Relations Policy Committee and vice chair of the Advocacy Standing Committee recently won the William S Latoff Advocacy Award at the Fall Group 2 Meeting The William S Latoff Advocacy Award is awarded annually typically at PA Bankers Day at the State Capitol to a banker whot displays excellence in advocacy His nominator explained that Blair has been a strong advocate for the banking industry for years he has worked tirelessly on behalf of the people that comprise our industry and our customers Blair has been the face of the association with numerous state and federal leaders PA Bankers recently sat down with Blair to discuss his view on advocacy and its importance HOW DID YOU GET INVOLVED IN ADVOCACY My first full time job was at Bucks County Bank and Trust Company I started my career in banking and I have never worked in any other industry I was educated early in my career that support of the industry is important to allow bankers the opportunity to help our customers and communities When I say support of the industry I mean in a variety of ways including time and monetary I quickly saw the benefits of giving back and sharing information about 28 PA Bankers Association the Grassroots Advocacy Committee When the association recommitted to advocacy I was one of original members of the newly formed Advocacy Standing Committee where I served as the vice chair I have been involved with the PA Bankers Association for more than 35 years representing the banks where I worked WHAT DOES ADVOCACY MEAN TO YOU the good things as well as the challenges our industry faces with political and community leaders I always felt that advocacy was part of my role at each bank I was with To me no one can be a better advocate of the banking industry than a banker whether you are a teller IT accounting or president CEO A banker can paint a real life picture for any political or community leader Advocacy is the opportunity to work with bankers from across the state and the country It allows us to educate individuals about our industry including the positive impact bankers have within our communities as well as the challenges we face that will negatively impact the good we do everyday Advocacy is the support of an issue s that benefits the industry organization or community As I mentioned before advocacy can be demonstrated in a variety of ways which include time talents and monetary WHY SHOULD BANKERS GET WHAT ARE SOME OF THE ADVOCACY POSITIONS YOU HAVE HELD BOTH AT THE ASSOCIATION AND IN YOUR BANK With the association I have been a member and chair of the Government Relations Policy Committee I have also served as a member and chair of INVOLVED IN ADVOCACY I strongly believe that as bankers we need to speak for our industry If we don t who will Advocacy gives us the opportunity to speak about issues that directly impact our customers communities and our financial institution Our political and pabankers com

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community leaders need to hear directly from us how legislative action or certain decisions will positively or negatively impact the way we can do business This impact will ultimately affect our customers communities employees and shareholders WHAT IS A MEMORY THAT STANDS OUT FOR YOU There are several positive memories that stand out for me while working as an advocate for our industry Recently I spoke with a Federal Congressman about an issue that is important to us This issue allows banks the opportunity to better serve a particular business trade In discussions with the Congressman he was very open that he was not sure which direction he was going to vote on the subject We had a great conversation addressing all of his thoughts concerning the subject He ended up voting in support of our position I know multiple bankers spoke with him and together we educated him to allow him to be comfortable to vote in support of our position This is a great example of us working together for the benefit of our industry and communities Having worked with Bill Latoff for 13 years and having known him for more than 30 I can attest to his unparalleled advocacy on behalf of the banking industry Bill lived this commitment every day to the fullest and he encouraged others to follow his lead by the example he set That is why it is so fitting that his advocacy legacy lives on through the PA Bankers annual William S Latoff Advocacy Award Blair Rush this year s award winner epitomizes the true spirit of the volunteer banker advocate Through his time and effort as Government Relations Policy Chair and Advocacy Committee Vice Chair among so many other roles Blair has dedicated countless hours of service to our industry and our association Bill would be proud to know that Blair and the previous award winners along with so many others within our industry have taken up the advocacy mantle in such a passionate and meaningful way Now more than ever these efforts are needed William J Hieb former President and CEO DNB Financial Corporation IS ADVOCACY REWARDING HOW I find advocacy to be very rewarding It gives us the opportunity to work together for our industry We are a highly competitive and regulated industry In our daily work we will compete against each other for a customer business opportunity But advocacy allows us to work together for the good of our industry With advocacy and through our PA Bankers Association we are on the same team One team is stronger together than as individuals through individual banks WHAT IS ONE MISCONCEPTION ABOUT ADVOCACY THAT YOU D LIKE TO CLEAR UP I think the biggest misconception is that advocacy is only about giving money While the monetary contributions are important to support candidates who support our industry from both sides of the aisle the time part of advocacy is as equally important It is critical that we spend time getting to know our Senators and Representatives so they develop a trust with us This trust creates relationships that allow us to be a voice for positive outcomes that benefit our industry and everyone associated with the industry Congratulations Blair PA Bankers Association Quarter 4 2020 29

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governmentRELATIONS Have you contributed to PaBPAC State It s not too late All you need is a personal credit card ABOUT PaBPAC The Pennsylvania Bankers Public Affairs Committee PaBPAC founded in 1974 was created to assist individual bankers in organizing for more effective political action and making contributions to political candidates who support banking ideals PaBPAC State and Federal are governed by the PaBPAC Board of Directors and comply with applicable state and federal laws and regulations governing political action committees Campaign expense reports are filed with the PA Department of State s Bureau of Elections and the Federal Election Commission Go to pabankers com Advocacy Contribute to PaBPAC 30 PA Bankers Association pabankers com

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A UNIQUE HEALTH CARE ALTERNATIVE for Pennsylvania Based Financial Institutions and Affiliate Members of the PA Bankers Association WHAT IS THE BANK HEALTH CARE CONSORTIUM OF PA BHCCPA The BHCCPA is a unique health care alternative for Pennsylvania based financial institutions and Affiliate Members of the PA Bankers Association Since its launch in July 2007 the PA Bankers Services Corporation L R Webber and The Benecon Group have collaborated to provide every consortium member with leverage and benefits of economies of scale plan design flexibility and significant cost control strategies to their group health plan LEARN MORE ABOUT THE PROGRAM PA BANKERS SERVICES CORPORATION Wayne Whipple Vice President Business Development 717 255 6925 wwhipple pabankers com L R WEBBER Brad Webber Marketing Manager 814 317 4186 bwebber lrwebber com THE BENECON GROUP Claudia Burchstead Senior Sales Director 717 723 4624 cburchstead benecon com

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governmentRELATIONS Playing the Long Game A fter months of planning and preparation and if we re being honest a little angst Americans went to the polls in record numbers in early November to cast their votes in presidential state and local races The contest topping the ticket was one of the most high profile and most contentious presidential races in recent memory and at the time of this writing it isn t quite in the rearview mirror several states have yet to certify their results some legal challenges are pending and of course the Electoral College has yet to meet But with major media outlets calling the race for former Vice President Joe Biden and Senator Kamala Harris ABA is preparing for a Biden administration to take over in early 2021 It s also looking likely that Congress will remain divided with Republicans in control of the Senate and Democrats maintaining control of the House though with two critical Senate races in Georgia going to runoff elections it will still be several weeks until we know for certain Regardless of how the balance of power may shift ABA will continue to draw on its nearly 150 year history of working alongside both parties to find commonsense policy solutions that will support economic growth It s a longstanding tradition that we re proud of and we have made tremendous progress in recent years in advancing a pro growth commonsense and data driven approach to banking policy In fact many of the significant pieces of banking policy have been bipartisan in nature Take for example S 2155 the regulatory reform law that Congress passed in 2018 That effort was a testament to how lawmakers on both sides of the aisle were able to come together to help clear some of the roadblocks that stood in the way of banks ability to serve their customers clients and communities That same cooperative spirit is desperately needed today when so many families and businesses are still feeling the extreme economic effects of the COVID 19 pandemic As we look ahead to 2021 the economic recovery will be top of mind for policymakers in Washington and the financial industry will have an important role to play in the ongoing response Banks played a monumental role as economic first responders in the early days of the pandemic to address the economic dislocation that stemmed from the healthcare crisis and we ll continue our work in the weeks and months ahead keeping an eye on economic indicators responding to problems early and helping to restore our nation s economy ABA stands at the ready to work with the next administration and lawmakers from both parties to bolster the economy increase opportunity and create a brighter future for all Americans At the same time we won t lose sight of our other policy priorities We ll continue to put our policy and advocacy expertise to work to address the important issues facing our industry from AML BSA reform to CECL to cannabis banking As one might expect from a trade association that s been around for nearly a century and a half our eyes are on the long game And while some of the tactics we employ may change with the times our agenda will remain the same and will continue to be driven first and foremost by the banks we serve Email Rob Nichols at nichols aba com ABOUT THE AUTHOR ROB NICHOLS PRESIDENT AND CEO AMERICAN BANKERS ASSOCIATION 32 PA Bankers Association pabankers com

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Choose What You Want to Receive From PA Bankers Did you know that you can choose exactly what you want to receive from us Through the PA Bankers Subscription Center we are excited to offer our members the opportunity to customize their opt in preferences for promotional emails The center offers 15 specific opt in preferences making it easy to select what you would like to receive We encourage you to log in to the subscription center browse through the opt in preferences and select the preferences that interest you today Instructions 1 2 3 4 5 Go to pabankers com Select Sign in in the top righthand corner and enter your credentials Click on the Opt In tab on the My Account page 4 Check the boxes next to the categories of interest to you Click on the green Save button at the bottom of the page to save your selections PA Bankers Association Quarter 4 2020 33

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governmentRELATIONS ELECTION U P D AT E A s you know Joe Biden is the presumptive nominee for president with electoral collage votes from PA putting him over the top But while the Democrat was the state s choice for president Republicans were victorious overall in PA A few of the races are still too close to call and the election has not been certified at publication However here are some highlights CONGRESS There are no new members of the PA Congressional Delegation and it remains an even split nine republicans and nine democrats STATEWIDE OFFICES Neither U S Senators representing PA were up for election this year There are three statewide row offices Attorney General Auditor General and Treasurer Two of the three flipped to Republican Attorney General Josh Shapiro a democrat incumbent won his second term STATE SENATE There were four priority races for the Senate Republican Campaign Committee Senators John DiSanto R Dauphin Tom Killion R Chester Dan Laughlin R Erie and Scott Martin R Lancaster were in highly contested races Senators DiSanto Laughlin and Martin won additional four year terms While the Senate Republicans lost the Senator Killion seat they picked up a seat held by Senator Pam Iovino D Allegheny At the time of publication there is one race that is too close to call currently held by democratic Senator Jim Brewster D Allegheny He is currently ahead by 30 votes If Senator Brewster wins his seat the Senate Republicans will maintain their majority in the state Senate 28 1 21 with an independent caucusing with the Republicans The race between Senator Brewster and Nicole Ziccarelli is being challenged in court Numerous lawsuits have been filed STATE HOUSE Republican challenger Carrie DelGrosso beat House Minority Leader Frank Dermody D Allegheny At the time of publication there is one race too close to call currently held by Rep Joe Petrarca D Allegheny His challenger is currently ahead by 1 500 votes If Rep Petrarca loses his seat the House Republicans picked up 3 seats increasing their majority 113 90 PaBPAC Federal and PaBPAC State played in 123 races during this general election cycle and were 96 percent successful 34 PA Bankers Association pabankers com

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You re preapproved for trusted advice Your bank works hard to make customer dreams become reality Don t let complex regulations delay your next transaction Our talented tireless pros can help you stay compliant manage risk and grow strategically so you can focus on building equity in your community Everyone needs a trusted advisor Who s yours PA Bankers Association Quarter 4 2020 35 bkd com fs BKDFS

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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 Affordable Homes Healthy Communities Better Lives CINNAIRE COM Transforming Communities Transforming Lives index of ADVERTISERS AMERICAN BANKERS ASSOCIATION 57 APPI ENERGY IFC BKD CPAS ADVISORS 35 BAKERTILLY 47 BANK HEALTH CARE CONSORTIUM OF PA 31 BANK TALENT HQ 53 BOENNING SCATTERGOOD INVESTMENT BANKING 21 CSBS 45 CINNAIRE 36 CORNERSTONE ADVISORS 52 COMPLIANCE ALLIANCE 4 HERBEIN 41 INVESTMENT CONNECTION 36 MERCADIEN 15 PABPAC 30 PILLAR AUGHT BC S R SNODGRASS IBC THE BAKER GROUP 11 TITLE INSURANCE 23 YHB 37 36 PA Bankers Association pabankers com

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PA Bankers Association Quarter 4 2020 37

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vendorARTICLES T BSA AML Compliance Strategies in a COVID 19 Environment he formal study of risk management has been around since World War II and involves learning how to identify assess and manage financial risks for an organization It has long been associated with market insurance protections from accidents and use of derivatives It evolved into contingency planning analyzing various risk prevention activities and portfolio management Operational and liquidity risks emerged as a formalized concept in the 1990s as financial institutions intensified their market risk and credit risk management activities Risk management has become a corporate affair it is a major player in the decisions of an institution s management and monitoring policy The concept of risk began to cover pure risk management technological risk management models and operational risk And as the identification of new risks emerged so did an expanded concept of operational risk Fraud risk is a form of operational risk It is the risk to current or projected financial conditions and resiliency arising from inadequate or failed internal processes or systems human error or misconduct or adverse external events Fraud historically has been known to increase during disaster related events The unprecedented COVID 19 pandemic is no exception to this increase Fraud can be characterized as an international act a misstatement or omission to deceive others with the sole purpose of a victim suffering a loss or a perpetrator achieving a gain It can be internal or external but the key takeaway with fraud is that financial institutions subject to the Bank Secrecy Act are mandated to upkeep an anti money laundering compliance program and process Meeting BSA and AML obligations during a pandemic has proven challenging It has forced financial institutions to adopt a new business as usual process that magnified challenges for financial crime management programs within institutions of all asset sizes Financial institutions despite any differences in scale are all facing work from home shifts evolving customer behaviors and expectations along with a rise in pandemic related fraud patterns The combination of financial and health risks opens vulnerabilities and creates more opportunities for fraudsters The Agencies recognize that the current environment is 1 unprecedented and 2 requires flexibilities Back on March 16 2020 FinCEN released a state to financial institutions regarding the impact of the COVID 19 pandemic It encouraged financial institutions to communicate their concerns related to the pandemic and to above all things remain alert to illicit financial activity It encouraged financial institutions that had concerns over potential delays in filing any required BSA reports CTRs and SARs to contact FinCEN and their functional regulator as soon as practicable Second FinCEN outlined the emerging trends connected with COVID 19 imposter scams investment scams product scams and insider trading Financial institutions are reminded to review FinCEN s 2017 advisory FIN 2017 A007 for descriptions of other relevant typologies which included benefits fraud charities fraud and cyberrelated fraud Entering COVID19 in Field 2 of the SAR template when reporting suspicious transactions linked to COVID 19 was highly encouraged But key pressure points continued to emerge in the new environment for financial institutions Not only were financial institutions required to identify fraudulent and potentially suspicious activity outside of normal trends they had to detect disaster related fraud increase their protection of elderly customers and report on COVDI 19 trends and losses This is not to say financial institutions have not risen to the challenges FinCEN s April 3 2020 notice encouraged financial institutions to consider evaluate and where appropriate responsibly implement innovative approaches to meet their BSA anti money laundering compliance obligations Institutions have considered the health and safety of their employees and customers and have maintained the stability of the financial system managing and mitigating the risks of money laundering and fraud losses But what considerations should financial institutions continue to focus on as they navigate BSA AML compliance 1 Contingency Plans Financial institutions need to be anticipating best and worse case scenarios How will the financial institution re establish its BSA AML program and obligations once pivoting from remote work and a more return to normal If the pandemic continues what longer term necessities and measures need to be taken to maintain or increase its BSA AML practices 2 Customer Due Diligence COVID19 has transitioned much more rapidly than an organic migration continued on page 40 38 PA Bankers Association pabankers com

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We re Mobile The PA Bankers App keeps you connected with PA Bankers like never before SEE HOW YOU CAN UTILIZE THE APP BELOW 1 6 Browse for products and services for your institution Register for events at your fingertips 2 Update your personal business information on the go 3 Have all event details in one place i e handouts evaluations speaker bios etc Access the updated PA Bankers calendar at all times 5 4 Connect directly to the association s social channels and stay up to date on association news 7 Read paBanker magazine on the go 8 Access resources designed for PA Bankers members 9 Receive Instant Alerts to stay informed 10 Advocate for the industry from any location DOWNLOAD THE FREE APP IN THE GOOGLE PLAY AND APPLE APP STORES TODAY

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vendorARTICLES continued from page 38 to online presences Customers are expecting banks go even more digital via their online channels This has not been without changed expected activity for both individuals and businesses Has an institution increased its daily transaction limits to meet increased demands for additional cash Has cash hoarding strained a bank s CTR filings Did the organization experience an increase in false positives for fraud due to changing customer behaviors Financial institutions need to continually evaluate their programs to grab control of the challenges and added workload to its BSA AML staff 3 Risk Assessments No longer something for larger or more complex financial organizational structures the need for risk assessments has increased Customers have changed the scale of their operations Programs like the Paycheck Protection Program under the CARES Act have flooded lending and operations divisions within the bank which inhibits adequate oversight Risk assessments need to continue to be reassessed on both a customer base and organizational level to re consider the nature and purpose of customer relationships continue that development of customer risk profiles and reassess bank operational systems and controls This was re emphasized in the update to the FFIEC BSA AML Examination Manual released April 15th 4 Coordination and Communication Identifying logistical challenges is one aspect effectively communicating them to bank staff is another Internal communication is essential Impactful and cohesive running of compliance teams will aid financial institutions in minimizing the challenges of administering an effective BSA AML compliance program during a pandemic A risk based approach with diligent adherence to a bank s BSA obligations are going to define compliance problem areas and assist financial institutions in mitigate their risks 5 Technology FinCEN s April guidance encouraged financial institutions to be innovative through the deployment of novel technologies While this encouragement has many possibilities it does create challenges for financial institutions Banks still must maintain prudent evaluations whenever implementing innovative approaches to current BSA AML processes Financial institutions need to maintain robust oversight of their vendor management relationships with third party providers especially as it relates to BSA AML program implementation Safety and soundness and consumer protection are heavily impacted by technology increasing a bank and regulator s focus on monitoring The COVID 19 pandemic has introduced or an increased emphasis on a risk based approach to BSA compliance It has supported flexibilities as promulgated by FinCEN and other agencies While regulators have highlighted the difficulties realized or otherwise by financial institutions little reassurance or solutions have been offered For this reason financial institutions need to consider evaluate and determine what a risk based approach means for its own institution Criminals are luring targeted vulnerable individuals and companies with an even stronger virtual presence these attempts are aimed at undermining the bank s due diligence and know your customer processes within a remote environment It is imperative that financial institutions review FinCEN and other Agencies releases on advisories highlighting common typologies used in fraud theft and money laundering activities related to the pandemic The significant increase in online and digital transactions coupled with cyberattacks and related fraud is only going to continue to impact remote platforms and processes Understanding the new and expanding definition of fraud risk will forces financial institutions to remain diligent with BSA AML controls and procedures related to the pandemic ABOUT THE AUTHOR ELIZABETH K MADLEM VICE PRESIDENT OF COMPLIANCE OPERATIONS Elizabeth is the vice president of compliance operations and deputy general counsel at compliance alliance In the past she served as both the operations compliance manager and enterprise risk manager for Washington Federal Bank a 16 billion dollar organization headquartered in Seattle Wash She has industry expertise and real world solutions surrounding bank enterprise initiatives and knowledge of contract law and bank regulatory compliance An attorney since 2010 Elizabeth was a Summa Cum Laude Phi Beta Kappa Delta Epsilon Sigma graduate of Saint Michael s College in Burlington Vt and a Juris Doctor from Valparaiso University School of Law in Indiana As the vice president of compliance operations Elizabeth will be overseeing C A s day to day operations of the Hotline as well as leading our Education initiatives Elizabeth plays an important part in all operational areas of C A 40 PA Bankers Association pabankers com

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WHERE WE ARE TODAY In an emergency Sunday meeting on March 15 2020 the Federal Reserve announced it was dropping its benchmark interest rate to zero and launched a new round of open ended quantitative easing The move was a direct response to the coronavirus outbreak which had disrupted economic activity around the world including the United States During this time the 10 year and 30 year treasury bond yields reached new all time low as dollars flowed into the treasury markets seeking the full faith and credit of the United States government The moves by the Fed and the markets left financial institutions with a U S Treasury Curve at historic lows As a result institutions with asset sensitive balance sheets are facing the likelihood of margin compression So here we are with low interest rates following a severe economic downturn Hey I ve seen that movie before In 2008 the Fed sharply cut its target funds rate down to zero in an effort to spur lending and jumpstart overall economic activity In the crisis environment of 2008 2009 many banks were tempted to purchase investments outside their typical investment purchases in order to find yield Private label MBS and CMOs trust preferred securities preferred stock and subordinated debt were a handful of the types of investments that were purchased In the wake of that crisis many of those securities experienced major losses or became worthless More than a decade later and we re seeing a resurgence of some of these same types of investments DODGING BULLETS If you are shown an investment offering a yield that seems a little too good to director for the Class of 2021 HOW DO YOU SPREAD THE WORD ABOUT PA BANKERS TO YOUR INSTITUTION As a PA Bankers Champion I am set up to receive all PA Bankers alerts When I receive information that is specific to a certain function I relay that information to the appropriate individuals at Ephrata PA Bankers Association Quarter 4 2020 41

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vendorARTICLES COVID 19 Insurance Community Banks More Commonly Find Relief in their Captive Insurance When Commercial Insurance Excludes so many things like Pandemics C OVID 19 presents significant challenges for US businesses across every industry and community banks have had to respond to some unique circumstances As we focus on moving towards recovery nearly everyone agrees that some changes to operating environments will be permanent and this is the new normal When community banks adjust to these changes it will be critical for each bank to evaluate their insurance and risk management programs to ensure they can respond in the future Community banks have incurred significant expenses in responding to COVID 19 and nearly every major commercial insurer is asserting that losses related to the pandemic are excluded under their policy language Public health experts indicate that the vaccine for COVID19 may not be widely available until mid 2021 and that future significant and severe pandemics are inevitable All companies must have a plan to address the future challenges and considering a more holistic and comprehensive insurance program that identifies and addresses risks that commercial insurers will not have limits and exclusions The captive does not replace a bank s commercial insurance program It wraps around the commercial insurance covering commercial deductible layers providing some excess coverage and filling in gaps and exclusions The current crisis demonstrated the significant financial benefit a captive can provide to a bank This is where a captive comes in A captive is a legally licensed limited purpose property and casualty insurance company owned by the bank holding company which can provide customized policies for the bank and any affiliated subsidiaries where the bank s commercial policies Costs associated with installing plexiglass barriers for tellers in bank branches 42 PA Bankers Association HOW CAN A CAPTIVE BENEFIT A BANK IN THE CURRENT ENVIRONMENT Pandemic Insurance Coverage Nearly all commercial property policies exclude coverage for a pandemic The captive has comprehensive business interruption coverage that is providing its banks with needed relief covering expenses such as A portion of expenses related to the purchase or lease of computers and equipment for employees to work from home Expenses related to deep clean branches or facilities that have had exposure to COVID 19 Expenses associated with the purchase of personal protective equipment PPE to keep their employees and customers safe through the pandemic Increasing Commercial Insurance Rates At a time when community banks are worried about the potential impact of a serious recession on their institutions they are hearing from their commercial insurance brokers that they can expect up to 30 increases in D O coverage and an average of 12 increase for their FI Bond A captive insurance company has always been an excellent tool for companies to help manage the hardening commercial insurance market Banks can evaluate higher commercial deductibles to offset these increased commercial premiums They can then self insure these larger deductibles through their captives Increased Potential for Cyber and Crime Losses The remote work from home environment has presented significant challenges for community banks and their commercial customer base Banks are concerned about the increased risk related to cybercrimes The purchase of additional cyber coverage on the commercial market has sky rocketed but most do not fully understand what these coverages exclude A captive can provide a solid backstop for a community bank stepping in to provide coverage when a commercial coverage is denied because of an exclusion pabankers com

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Banks Facing Margin Compression Banks are facing uncertain times and continue to see their earnings come under pressure Depending on the structure captive coverages and claims experience community banks with captives can experience a 1 2 annual average increase to earnings per share The captives have begun to reimburse its owner affiliated entities for reasonable expenses that are not covered by its commercial policy Therefore the extra expenses spent on laptops software extra IT work cleaning due to infected employees and or customers entering a branch temporary barricades in teller lines etc are covered by a captive managed by KeyState under Extra Expense and Difference in Conditions policies Recently KeyState hosted a virtual educational seminar with 60 community banks with captives from across the country joining to understand how their captive policies would respond as the pandemic developed After the session KeyState surveyed the banks average asset size between 1B 10B and found that on average banks estimated 50 000 100 000 in extra expenses associated with COVID 19 with some of the larger institutions estimating expenses over 250 000 Although the banks remain disappointed that their commercial insurance does not respond to these losses they have been thankful to have the captive structure in place to respond to these extra expenses related to the pandemic Of course this solution of forming and operating a captive insurance company is not a fit for every bank This solution should only be implemented by banks with sufficient capital and earnings Holding companies that want to form a captive must be well managed and well capitalized We expect to see continued growth in community banks forming captive insurance companies As banks become more aware of their unfunded risks through ongoing enterprise risk management a captive offers a unique and customized approach to help identify and fund for those risks on an annual basis Joshua Miller CEO of KeyState Captive Management LLC launched KeyState s Bank Captive Program in 2012 He has worked with over 100 financial institutions across the country that have formed captive insurance companies 27 state banking associations have endorsed KeyState s Bank Captive Program for their members Brian Amend SVP Managing Director heads the Wilmington DE office for the east coast He is also a Colonel in the Marine reserves and holds a B S in Business Administration Finance from UNLV and an MBA from American University Washington D C Since launching the Bank Captive Program in 2012 KeyState has had 85 banks join the program Banks interested in exploring whether a captive insurance company is a good fit for their institution should contact Brian Amend at 302 425 5158 or BAmend key state com ABOUT THE AUTHOR JOSHUA MILLER CEO OF KEYSTATE CAPTIVE MANAGEMENT LLC launched KeyState s Bank Captive Program in 2012 He has worked with over 100 financial institutions across the country that have formed captive insurance companies 27 state banking associations have endorsed KeyState s Bank Captive Program for their members ABOUT THE AUTHOR BRIAN AMEND SVP MANAGING DIRECTOR heads the Wilmington Del office for the east coast He is also a Colonel in the Marine reserves and holds a B S in Business Administration Finance from UNLV and an MBA from American University in Washington D C Since launching the Bank Captive Program in 2012 KeyState has had 85 banks join the program Banks interested in exploring whether a captive insurance company is a good fit for their institution should contact Brian Amend at 302 4255158 or BAmend key state com PA Bankers Association Quarter 4 2020 43

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vendorARTICLES H Home Equity Line of Credit HELOC Scams ome Equity Line of Credit HELOC scams continue to be a costly and challenging issue for financial institutions Wire transfer fraud can easily reach millions of dollars and with advancements in technology such as online databases for county clerk records online banking and online title searching data commonly used by financial institutions to verify customer identity for wire transactions is routinely and easily comprised Several financial institutions have fallen victim to losses arising out of wire transfer and check forgery schemes targeting HELOC accounts and have taken action to mitigate the risk of future loss experience Institutions that place a high value on their customer service and customer confidence in the institution s security against wire transfer fraud have implemented risk mitigation upgrades to their operations to help solidify customer confidence According to Travelers the following steps are initiatives that can help to eliminate or at least significantly reduce losses arising out of HELOC fraud scams Place greater emphasis on getting full account numbers from callers Phrase verification questions so that the caller is providing the information rather than simply confirming what the financial institution has on file Remove items from the list of authentication options such as mother s maiden name and date of birth that have become public information through social media websites and venues Train employees who field calls to verify authentication items in a specific order and not skip to other items if the caller cannot verify the requested information Train personnel with an updated full fraud awareness module to help employees identify warning signs of fraud Encourage customers to set up PIN numbers if the automated phone system allows it Update customer account files with driver s license numbers if not copies of the entire driver s license or other government issued ID if there is no driver s license Utilize a mandatory callback procedure for all customernot present wire transfer requests Use a password to authenticate customers rather than commonly compromised information and only allow in person modification of passwords and key account information Consider requiring full balance transfers or transfers up to a certain percentage of the available funds to be made in person while placing a reasonable monetary limit or percentage limit on customer not present wire transfer requests Establish a reporting procedure which refers all suspicious wire transfer requests to a higher level of authority for confirmation processing Require a dual telephone confirmation procedure where the financial institution calls the home phone of the customer as well as an alternate number such as a mobile phone or work phone Establish an automatic two day holding pattern anytime a request is made to initiate a wire transfer from a HELOC account to a foreign bank account within which time the financial institution ensures accurate verification and deters fraudsters seeking immediate processing Verify change of address or phone number requests with a call to the customer s phone number on file Customize specific and unique verification questions and procedures with an account holder customer that can only be modified in person Technology has made it easier than ever for bad actors to obtain data that is commonly used by financial institutions to verify the identity of their customers That s why financial institutions must utilize robust authentication procedures to protect their customers and themselves from wire transfer fraud This includes greater awareness updated and vigilant policies procedures and training and implementing imaginative and unique verification procedures to help reduce the risk of sustaining losses arising out of wire transfer fraud targeting HELOC accounts TRAVELERS is committed to managing and mitigating risks and exposures and does so backed by financial stability and a dedicated team from underwriters to claim professionals whose mission is to insure and protect a company s assets For more information visit www travelers com 44 PA Bankers Association pabankers com

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The 2021 CSBS Community Bank Case Study Competition is Underway The CSBS Community Bank Case Study Competition is a nationwide academic competition for undergraduate students Through this competition undergraduate student teams partner with local community banks to conduct original case studies on relevant topics In addition to providing undergraduate students with an excellent opportunity to engage and gain valuable knowledge of the banking industry the case study competition serves as a platform for community banks to tell their individual stories It is an opportunity to build an understanding of the community bank business model and the role community banks play in local communities and it is a mechanism for connecting academics and millennials with the community banking industry 2021 Competition Details Topic Teams will examine how community banks have responded to major forces that impacted the nation this year the COVID 19 pandemic and a renewed commitment to diversity and inclusion Deadline for Statements of Interest by Faculty Advisors Jan 11 2021 Deadline for Student Team Members and Community Partners to Register Feb 22 2021 Looking to become involved Contact Karen McDermott kmcdermott pabankers com today Visit csbs org bankcasestudy for more information

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vendorARTICLES Consumer Financial Protection Bureau Revisits Marketing Services Agreements Under RESPA I n a series of new FAQs the Consumer Financial Protection Bureau CFPB has revisited the status of marketing services agreements MSAs under the Section 8 anti kickback provisions of the Real Estate Settlement Procedures Act RESPA However before examining the new FAQs guidance it is necessary to review the underlying provisions of RESPA and the CFPB s 2015 compliance bulletin in which the agency describe d the substantial risks posed by entering into MSAs SECTION 8 PROHIBITIONS In brief Section 8 a of RESPA prohibits kickbacks defined as any things of value for business referrals of residential mortgage loan settlement services e g title insurance real estate brokerage flood insurance mortgage lending or brokerage Section 8 b adds that sharing or splitting fees for other than actual services performed is impermissible Section 8 c goes on to list examples of permissible payments and these examples emphasize that such payments must be reasonable and for actual services rendered MSAs are typically arrangements whereby a settlement service provider or another party for compensation provides goods or renders services promoting a nother settlement service provider For example a real estate agent promoting a mortgage lender or broker or a lender or broker promoting a title insurance agency The 2015 bulletin and the new FAQs address concerns over whether MSAs are abused and whether they can be vehicles for disguising otherwise impermissible referral fees 2015 GUIDANCE Pointing out that the primary purpose of RESPA is to eliminate kickbacks or referral fees that tend to increase unnecessarily the cost of residual mortgage loan settlement services the CFPB stated in 2015 that based on its own investigations and reports from industry whistleblowers MSAs appear to be used to disguise kickbacks and referral fees The agency cited examples of MSA misuse among lenders appraisal management and title insurance companies The CFPB found that MSA participants often failed to provide the services called for under those agreements and that those parties paying for the services acquiesced in such behavior The CFPB had 46 PA Bankers Association already brought enforcement actions for CFPB perceived MSA RESPA abuses See e g In the matter of Lighthouse Title Inc CFPB Admin Proceeding 2014 CFPB 0015 The CFPB concluded that when services promised under an MSA are not performed but payments are being made a reasonable inference can be drawn that the MSA is part of an agreement to refer settlement service business in exchange for kickbacks Building on that inference the agency went on to advise that MSAs pose risks that are greater and less capable of being controlled by parties to such agreements and that monitoring vendor compliance with MSA mandated services is inherently difficult even when the MSA contract had been carefully drafted to be technically compliant with RESPA Concluding that the agency had grave concerns with MSA arrangements the CFPB committed to continue actively scrutinizing such arrangements While the 2015 bulletin did not state that MSAs are per se violations of RESPA the agency s strong condemnation combined with its enforcement actions had a not surprisingly chilling effect on MSA adoption Many industry participants concluded that the CFPB did in effect consider MSAs per se RESPA violations and that their continued use were invitations to government enforcement agency scrutiny and penalties RESCISSION OF 2015 GUIDANCE In tandem with issuing the October 2020 FAQs the CFPB rescinded the 2015 bulletin stating that the earlier guidance had failed to provide the regulatory clarity needed on how to comply with RESPA and its implementing Regulation X Going forward the agency now advises whether a particular MSA violates RESPA Section 8 will depend on specific facts and circumstances including the details of how the MSA is structured and implemented MSAs remain subject to scrutiny and the CFPB remain s committed to vigorous enforcement of RESPA Section 8 HOW TO COMPLY GOING FORWARD The new FAQs reveal something akin to guiding principles or a roadmap of how to implement a RESPA Section 8 compliant MSA pabankers com

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First MSAs ought not be directed to a specific individual but rather need to be targeted to a wider audience of potential customers An MSA designed to promote a service provider to a specific person would not qualify Second the services called for under the MSA must be actually performed Mere enumeration of intended services is insufficient Third the compensation must be reasonably related to the market value of the provided services only While the CFPB declines to further define reasonable compensation presumably that calculation must exclude the value of a mere referral and may be based only on factors such as time expended difficulty of contracted tasks size of target audiences expertise experience and other non mere referral factors Fourth the payments under the MSA may not be for duplicative services e g paying for services already performed or to be performed by the paying party or others on its behalf Fifth the services to be rendered under the MSA must be more than nominal Token or de minimus services ought not be the basis of an MSA Further guidance on what would constitute nominal services would have been helpful but the general intent seems clear failure to provide substantive services would negate an MSA s legality This writer adds that monitoring and auditing the party providing services under the MSA to ensure that party is in fact rendering the mandated services as well as careful crafting of MSA agreements to reflect the parties clear understandings of their respective obligations and limitations should also be implemented FUTURE ENFORCEMENT Have the new FAQs changed the practical status of MSAs The CFPB FAQs reiterate that disguising kickbacks as MSA payments is illegal under RESPA and the agency remains committed to vigorous enforcement of RESPA Section 8 However by vacating the inference or presumption of MSA illegality combined with a general perception that CFPB has not prioritized RESPA Section 8 enforcement many will likely construe these October 2020 developments as a weakening of Section 8 CFPB enforcement resolve Nevertheless MSA adoption is not without risk Disingenuous or cynical utilization of MSA formats can trigger state enforcement agency investigations as well as private litigation The CFPB itself may also seek out an enforcement opportunity to demonstrate that it is in fact still committed to Section 8 compliance A charge of administration in Washington may also lead to more aggressive enforcement MSAs should be pursued only after careful review including an economic fair market pricing analysis documentation preparation and adoption of quality control and compliance procedures ABOUT THE AUTHOR PAUL H SCHIEBER STEVENS LEE A shareholder with Stevens Lee Paul H Schieber concentrates his practice in the area of consumer financial services and retail banking He represents banks thrift institutions credit unions mortgage companies loan servicers finance companies secondary market investors real estate and title insurance companies and other financial services providers and investors Paul presents regularly to national financial services and related service provider organizations and he is widely published on finance issues PA Bankers Association Quarter 4 2020 47

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vendorARTICLES CLICKS without BRICKS We Don t Think So As the COVID 19 pandemic continues to spread throughout the country people communities and industries are being forced to adopt new habits Our by James G Caliendo normal routines have been President CEO PWCampbell flipped upside down as we scramble to develop new business methods refine best practices and adapt to a new way of life Even through the turmoil we find ourselves in a time of great opportunity New trends are emerging quickly while a few existing ones surged as a direct result of the new normal One of the most impactful trends that continues to gain momentum is the use of technology in banking Several months ago the nation shut down People were confined to their homes and financial institutions were left scrambling to service customers without the use of a lobby Although many banks started down the road of online and mobile banking and online account opening no one could have realized the extremes to which customers would be pushed to adapt While it is not clear what the lasting effects of the pandemic will be we do know that technology will continue to rise and the need to seamlessly blend technology with human touch within brick and mortar is stronger than ever Technology will never 48 PA Bankers Association replace people and brick and mortar it will instead transform and reimagine the way that we use it Banking involves the full overall experience not just routine transactions As bank lobbies continue to reopen customers are going to be looking for advice education and the confidence and trust that only human interaction can provide Throughout these interactions technology will be the vital tool used to enhance the overall customer experience Are your branches ready Do they address the expectations that are transforming the way people are interacting with you If your branches are still designed with a focus on face to face teller transactions now is the time to evaluate your branch network and make some changes Here are several technologies you can implement today to optimize your retail branch network and better align with your customer s expectations INTERACTIVE KIOSKS AND IPAD INTEGRATION In an age where touchscreens and tablets have become a staple of everyday life the opportunity to integrate them into your branch is vital to serve the needs of the next gen banker Interactive kiosks and iPads not only reduce costs while improving efficiency but they also enhance customer service augment education and boost sales We ve seen pabankers com

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Strategically placed digital marketing signage has been proven to capture your audience and leave a lasting impression on both your brand and your product offerings Take advantage of downtime at teller lines and drive thrus and drive your messaging quickly and effectively while creating a memorable experience a proven uptake in online and mobile banking enrollment when staff personally walk customers through individualized demonstrations via the kiosk and iPad Adding the capability of printing paper brochures or information from the kiosk multiplies its effectiveness while increasing educational opportunities DIGITAL MARKETING SCREENS Today s consumer is always on the go You need a digital solution that can stand out and grab their attention quickly while making a serious impact VIDEO CONFERENCING COVID 19 has made video conferencing a household name It became crucial for its ability to bring people together from around the globe who could not be together face to face During the pandemic video conferencing became a way of communicating and interacting with colleagues staff members and consumers It continues to play a vital role not only as the pandemic lingers on but as many companies work to improve communications reduce travel costs and develop stronger relationships with individuals they many never actually meet in person Don t be stuck in the past This is the perfect opportunity to future proof your branch for the nextgen banking customer and embrace the new normal Seamlessly blending the convenience of technology with the branding power of brick and mortar that s what clicks and bricks is all about James G Caliendo is a former bank executive and now President and CEO at the 110 year old design build and retail services firm In the past 18 years alone under Jim s direction PWCampbell has worked with over 500 financial institutions influencing millions of square feet of retail and operational space to create engaging impactful and scalable solutions for every sized facility project PA Bankers Association Quarter 4 2020 49

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PA Bankers Services Corporation Select Vendors Provide PA Bankers Members Savings Service and Quality ABA INSURANCE SERVICES Bond D O Cyber Insurance and Employment Practices Liability Patricia Williams 216 220 1280 pwilliams abais com ACCUME PARTNERS Outsourced Internal Auditing and Risk Management Services Nicole Lloyd 717 903 3142 nlloyd accumepartners com ANDERSON GROUP Integrated Marketing and Communications and Business Intelligence Ray Melcher 610 678 1506 rmelcher thinkanderson com APPI ENERGY Electricity and Natural Gas Procurement Services Utilities Management Platform Margo Madden 667 330 1239 mmadden appienergy com 50 PA PABankers BankersAssociation Association 48 APPROVAL PAYMENT SOLUTIONS INC Merchant Processing Search Engine Optimization Website Design and Social Media Management Danielle Lausch 717 892 8988 dlausch apsolutions net BITS Managed Service Provider for Voice and Data Communication Christian Ericson 973 474 1828 christian ericson bitsnetwork com THE BAKER GROUP Asset Liability Management Software and Services Charles Amis 405 415 7231 Charlie gobaker com COMMONWEALTH CHARITABLE MANAGEMENT Application and Administration of EITC programs Cristine Clayton 570 278 3800 cclayton commonwealthcharitable org BANK HEALTH CARE CONSORTIUM OF PA 34 banks received credits in surplus of over 8 9 million in 2018 with an average net funding increase in single digits Wayne Whipple 717 255 6925 wwhipple pabankers com A Family of Bank Compliance Services That Includes Compliance Alliance Review Alliance and Virtual Compliance Officer Wayne Whipple 717 255 6925 wwhipple pabankers com BANK TALENT HQ Diversity is Essential Find Talent in all the Right Places Wayne Whipple 717 255 6925 wwhipple pabankers com BANKERS ALLIANCE CORNERSTONE ADVISORS Core Debit EFT Card Program Loan Origination Bill Pay Mobile Banking ATM Contract Negotiation Jennifer Wagner 480 425 5204 jwagner crnrstone com pabankers com pabankers com

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CRA PARTNERS Receive High Yielding CRA Credit Terry B Rooker 901 529 4781 terry rooker SHCPFoundation org DEALERTRACK COLLATERAL MANAGEMENT SERVICES INC Electronic Lien and Title Program Wayne Whipple 717 255 6925 wwhipple pabankers com L R WEBBER Multiple Medical Drug Dental Vision Options and EB Solutions Brad Webber 814 695 8066 bwebber lrwebber com GRADIENT CYBER Automated CAT Tool Digital Forensic Investigation Network Consensus Cybersecurity Chris Warman 412 600 7860 cwarmanjr gradientcyber com NCONTRACTS Integrated Compliance Vendor and Risk Management Michael Harrison 888 370 5552 Michael Harrison ncontracts com INVESTORS TITLE INSURANCE COMPANY Multi Bank Owned Title Insurance Program Karen Barnett 419 577 5900 kbarnett invtitle com NFP EXECUTIVE BENEFITS BOLI Executive Compensation and Long Term Care DELUXE CORPORATION Check Program Todd Wroblewski 724 625 5599 todd wroblewski deluxe com David Shoemaker CPA PFS CFP 901 754 4924 david shoemaker nfp com THE KAFAFIAN GROUP THE FULCRUM GROUP INTERNATIONAL INC Reviewing Re negotiating and Bidding Check Printing Relationship Ted Amon 770 736 5787 ted thefulcrumgroupintl com Performance Measurement Robert E Kafafian 973 299 0300 x106 rkafafian kafafiangroup com ONE POINT Outsourced Internal Purchasing Office Supplies Inventory Control and IP Address Marketing Sales Pat McMahon 570 207 5107 pmcmahon opoffice com FONT Century Gothic _ Regular CMYK CMYK CMYK CMYK Icon Bridge Icon Marble PWC FONT PMS485Handwriting draft_free version Campbell BUILDING CONFIDENCE CMYK CMYK CMYK CMYK B 90 B Screen Black 80 FONT Handwriting draft_free version Black 80 GLOBALVISION SYSTEMS INC Anti Money Laundering Catherine Lew 818 998 7851 x128 clew gv systems com KEYSTATE CAPTIVE MANAGEMENT Captive Management and Investment Portfolio Services Brian Amend 302 425 5158 bamend key state com PWCAMPBELL Planning Design Coordination and Construction Management Erin Campbell 800 253 7430 erin campbell pwcampbell com Vendor selections and recommendations are made in accordance with PA Bankers Services Corporation s stated mission It is believed that the promoted products and services merit strong consideration by PA Bankers member banks PA Bankers Services Corporation due diligence and selection criteria should not be construed as a guarantee as the ultimate appropriateness may vary from bank to bank In addition member banks are encouraged to conduct their own due diligence reviews of recommended vendors Remuneration received by PA Bankers Services Corporation is utilized in part to support the PA Bankers Association through contracted agreements corporate sponsorships and overhead coverage This financial support expands resources and strengthens the services and programs of the PA Bankers Association PA Bankers Association Quarter 4 2020 51 PA Bankers Association Quarters 1 2 2020 49

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Cornerstone Advisors Solutions Are you making plans to reduce expenses boost revenue and improve earnings in 2021 In these uncertain economic times the best defense against diminished earnings is a clear proactive course of action Cornerstone Advisors can assist you in swiftly developing a plan for success When you partner with Cornerstone Advisors your institution quickly sees optimized earnings across heavily impacted areas Payments No area of financial services has seen more changes and new entrants than the payments arena With payments revenue accounting for as much as 40 of an institution s non interest income banks must take a proactive approach to protect and grow this revenue engine to its fullest potential Cornerstone Advisors helps you take control of your payments business and benefit with Increased revenue Reduced expenses Minimized risk exposure Contract Negotiations Delivery Channels Cornerstone Advisors puts decades of experience negotiating hundreds of contracts to work in your favor Cornerstone s skilled team negotiates aggressively on your behalf to produce a contract that delivers COVID 19 has accelerated the number of consumers embracing digital banking offerings Now more than ever banks need to transform the digital channels that customers require for their payments and banking activities Competitive marketbased pricing Best in class legal terms An improved vendor relationship With Cornerstone on your side you are always in control and can expect the very best results from your vendor contract negotiations Cornerstone can help you set a strategy select and implement the right systems and drive a return on your channel investments to offset compressed earnings When you partner with Cornerstone you gain A delivery channel transformation An enhanced customer experience Increased customer loyalty Cornerstone Advisors stands ready to help you do the work to improve earnings potential in 2021 Contact us today Jennifer Wagner crnrstone com jwagner crnrstone com 602 770 4220

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DIVERSITY IS ESSENTIAL FIND TALENT IN ALL THE RIGHT PLACES THROUGH OUR NEWEST PARTNERSHIP WITH AMERICA S JOB EXCHANGE EVERY JOB YOU POST WILL BE DISTRIBUTED TO One Stop Career Centers 2 500 state employment offices working directly with veterans and local job seekers for job placement Community Based Organizations Over 4 500 public and private nonprofit organizations many focused on specific diversity hiring JOFDAV Disabled Persons Leading websites focused on assisting veterans and other job seekers with disabilities America s Job Exchange Main Niche Sites This includes americasjobexchange com and their network of sites that cater to veterans and individuals with disabilities DON T WASTE ANOTHER MINUTE HEAD TO WWW BANKTALENTHQ COM AND USE CODE AJESPECIAL AT CHECKOUT TO RECEIVE 20 OFF THE JOB POSTING PACKAGE OF YOUR CHOICE SPECIAL ENDS FEBRUARY 26 2021 PA Bankers Association Quarter 4 2020 53

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WE LL NEVER BE THE SAME As a strategic partner to more than 140 banks we never stop working to adapt to change quickly and efficiently www srsnodgrass com banking 833 404 0344 As the world experiences unprecedented changes history shows that change is more often the rule than the exception The same can be said for the world of banking And when it comes to changes in banking you should rely on the experts As The Banking Experts we have only worked in banking every hour of every day every week of every month for more than 70 years In fact no other accounting and consulting firm possesses greater knowledge of community banks needs challenges and opportunities than S R Snodgrass which is why in a world that never stops changing we ll never be stay the same If you think our unrivaled banking expertise and personalized service could benefit your bank please allow us to introduce ourselves We d be delighted to meet you

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A break from the traditional Unfettered access to a team of attorneys with deep expertise and extreme responsiveness Learn how we protect what you ve built and how we ve revolutionized the legal services experience pillaraught com 717 308 9910 4201 E Park Circle Harrisburg PA 17111