QUARTER 3 | VOLUME 22.22021-2022 BOARD MEMBERSWelcomingWelcomingMEET YOUR NEW 2ND VICE CHAIRIn Memoriam: RICH GRAVER
BRINGING TIMELY NEWS AND INFORMATION TO THE MEMBERSHIP OF THE PA BANKERSthisISSUEIN EVERY ISSUEFEATURES4 Chairman’s Insights8 From the CEO to the CEO10 Ten on Page Ten12 Community Corner27 From Your Peers42 Government Relations48 A Look Ahead52 Vendor Articles18 Welcome 2021-22 Board Members20 Meet Your New 2nd Vice Chair22 PA Bankers 2021 Convention24 CSBS25 Congratulations to our 2020 and 2021 Schools Honors Students!26 Micro-Internship Program: First-Hand Account from Brittany Kerchersky, The Farmers National Bank of Emlenton28 2021 Future Under 4o Award Winners37 The Women in Banking Recognition of Excellence Program Award Winners12QUARTER 3 | VOLUME 22.22021-2022 BOARD MEMBERSWelcomingWelcomingPA BANKERS 2021 CONVENTIONMEET YOUR NEW 2ND VICE CHAIRIn Memoriam: RICH GRAVERon the cover
PA Bankers Association » Quarter 3, 2021 3PA Bankers STAFF DIRECTORYGeneral Phone/Switchboard (717) 255-6900 J. Duncan Campbell III firstname.lastname@example.org | (717) 255-6916Amy L. Doyle, External Relations Administrative Assistant email@example.com | (717) 255-6937Erin L. Kanter, Director, Advocacy & Government Relations firstname.lastname@example.org | (717) 255-6910Daniel J. Reisteter, Vice President, Government Relations email@example.com | (717) 255-6933Lisa R. Brandt, Legal Assistant firstname.lastname@example.org | (717) 255-6936Louise A. Rynd, Esq., General Counsel email@example.com | (717) 255-6935Jill A. Ametrano, Registrar and Records Coordinator firstname.lastname@example.org | (717) 255-6927Michelle L. Bosch, Receptionist and Administrative Assistant email@example.com | (717) 255-6900Connie A. Ferraro, Director, Information Technology firstname.lastname@example.org | (717) 255-6921Sara E. Hocker, Director of Marketing & Communications email@example.com | (717) 255-6912Annette M. Moshgat, Director, Finance firstname.lastname@example.org | (717) 255-6938Michelle L. Staton, Senior Vice President, Finance & Operations email@example.com | (717) 255-6923Courtney M. Young, Communications & Marketing Coordinator firstname.lastname@example.org | (717) 255-6915Jacqueline A. Catalano, Vice President, Professional Development email@example.com | (717) 255-6939Tiani A. Chambers, Director, PA Bankers Services Corporation firstname.lastname@example.org | (717) 255-6928Karen J. McDermott, Director, Member Relations email@example.com | (717) 255-6914Linda A. Scott, Member Relations Administrative Assistant firstname.lastname@example.org | (717) 255-6903Cynthia L. Wallett, Senior Vice President, Member Relations and Professional Development, and Managing Director, PA Bankers Services Corporation email@example.com | (717) 255-6913Wayne R. Whipple, Vice President, Business Development firstname.lastname@example.org | (717) 255-6925Marilyn M. Wisniewski, Director, Residential Schools & Meeting Operations email@example.com | (717) 255-6934STAFF Managing Sara E. Hocker Editor Editorial J. Duncan Campbell III Advisors Jacqueline A. Catalano TianiA.Chambers Daniel J. Reisteter Louise A. Rynd Michelle L. Staton Cynthia L. Wallett Wayne R. Whipple Courtney M. Young Chair Jennifer A. Poulsen Secretary M. Theresa Fosko Treasurer J. Duncan Campbell III Ocers Gerard A. Champi Trudy K. Everhart Scott E. Fritz Philip Freeman Thomas Graver Richard L. Greslick Karl F. Krebs Joseph Toth David E. Raven Tracy E. Watkins Dale A. Westwood paBanker Magazine c/o Pennsylvania Bankers Association 3897 N. Front St., Harrisburg, PA 17110 Tel. (717) 255-6912 Email: firstname.lastname@example.orgBanker 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 nancialinstitutionswitheducationalprograms,member services and represents members on the state and federal level. Since 1895, PA Bankers continuouslyworkedtobethepremiernancialservicesorganizationsupportingadiversiedmembership through volunteer participation, a knowledgeablesta,stateofthearttechnologyand a commitment to excellence.paBanker Magazine istheocialpublicationof PA Bankers.The opinions expressed in articles by authors otherthanAssociationstaandocersarethe 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 Magazinesta.Questionsandcommentsshouldbe 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. HAAS Printing Co
4 » PA Bankers Association pabankers.comam incredibly humbled to be your 2021-22 PA Bankers Chair. For a long time, being the PA Bankers chair was at the top of my personal bucket list. As I got older, I resigned myself to thinking that this would be an unfulfilled goal, but here I am making my dream come true.This association means so much to me – something that is clear if you look at my history over the years. I have had the honor of being a Group officer, the chair of the Professional Development Policy Committee, a PA Bankers Schools instructor, an advocate for the industry on the state and federal levels, and a member of the PA Bankers board, to name a few. To coin a phrase by the association, I am a true “PA Bankers superuser,” and I could not be prouder to hold that title. Not only has my time with the association provided networking opportunities with fellow bankers and skills to add to my resume, but it has also helped to shape my career in ways that I never dreamed were possible. Over the last nearly 40 years, I have held various positions at different community banks, including chief executive officer and president of Curwensville State Bank, as well as IWESLEY M. WEYMERS President and Chief Executive OfficerThe Gratz Bankin senior management roles with the First National Bank of Mifflintown, The Juniata Valley Bank, Northwest Savings Bank and United States National Bank. I truly enjoy being in a leadership position and conveying my knowledge learned from past experiences on to others. And, after all of this time, I still find myself excited to go to work and serve my local community and fellow employees.This is something that I do not take lightly, and I wish to share the value of volunteerism and industry involvement with all of you throughout my remaining term as chair of the association.Over the next year, I intend to focus on three primary objectives for the association.First, I wish to continue in my predecessors’ (Brad Scovill’s and Mike Price’s) footsteps and assist Pennsylvania’s banks through the COVID-19 recovery. Bankers came to the financial rescue of this country when the coronavirus wreaked havoc on the national economy, and as the country continues to recover, we will be there doing what we do best: serving our communities. Second, I hope to bolster our industry’s advocacy efforts in an effort to advance pro-banking policy issues. Advocacy is a crucial factor in how we are able to effectively and fairly conduct business and protect our customers, and it is my hope that I can encourage all of you to participate in the association’s advocacy initiatives moving forward.Finally, it is my goal to deliver meaningful diversity, equity and inclusion resources to the membership for use in your respective DEI initiatives. The association has already made headway over the last year with the creation of the DEI Advisory Group, Bank On Keystone and DEI Conference, and I hope to continue to momentum into the new year.These are not new strategic goals for the association. But, while PA Bankers has been working on them for some time, their importance has not dwindled. We must keep up the momentum to forge a strong pathway to the future.The association’s success and continued growth is a true testament to the work of our past chairs, specifically our immediate past chair, Brad Scovill. Brad is a INSIGHTSContinued on page 9
PA Bankers Association » Quarter 3, 2021 5Can you predictwhat regulatorswill ask?You don't need a crystal ball. Visit the Bank Exam Prep Center and learn how fellow bankers are reporting on how this year's regulatory exams are being administered.Bank Exam Prep Center is your regulatory exam central. Prep before your exam and be sure to return after to take a survey and share your experience.Visit the Bank Exam Prep Center• What questions are examiners digging in on?• What are the hot topics as ﬁeld examiners meet with your peers?• How are regulators addressing COVID-19 lending practices?• What discussions are taking place over pandemic operational challenges?
6 » PA Bankers Association pabankers.comaba.com/LookCloserPAEverything Pennsylvania bankers need to navigate what’s next in banking ■ 100+ free compliance courses for the entire bank■ News, analysis and data you can use—in real time■ 300+ staff experts in every area of banking■ Virtual working groups, schools, webinars and moreThese beneﬁts and more—all with your ABA membership. See for yourself.*The Baker Group LP is the sole authorized distributor for the products and services developed and provided by The Baker Group Software Solutions, Inc.Oklahoma City, OK | Atlanta, GAAustin, TX | Indianapolis, IN | Long Island, NYSalt Lake City, UT | Springﬁeld, ILRyan@GoBaker.comwww.GoBaker.com800.937.2257Member: FINRA and SIPCThe Baker GroupIs Here to HelpAs American ﬁnancial institutions—along with the rest of the world—face unprecedented times, The Baker Group is ready with tools and services to help maximize the performance of your institution.That’s why we’re oering new clients our Software Solutions* service package for a six-month free trial. Not only will you have access to our latest market research and insight from our Financial Strategies Group, you’ll be included in all of our webinars. There you’ll hear the latest on how COVID-19 could impact your institution and its investment portfolio.Baker’s Software Solutions Service Package Includes:Asset/Liability Analysis – Interest Rate Risk Monitor (IRRM®)Your management team will ﬁnd that The Baker Group’s quarterly review of the loan and deposit information outlined in the Interest Rate Risk Monitor and Asset Liability Analysis is an eective tool in managing your risk and performance.Baker Bond Accounting® (BBA)The Baker Group will provide you with accurate, easy-to-read reports delivered electronically to you each month.Investment Analysis – Advanced Portfolio Monitor (APM®)The Advanced Portfolio Monitor is a key monthly report that we utilize to help you measure, monitor, and manage the overall risk and performance of your investments.To obtain the resources you need to maximize the performance of your bank, contact Ryan Hayhurst with our Financial Strategies Group at 800.937.2257, or via email at Ryan@GoBaker.com.
PA Bankers Association » Quarter 3, 2021 7aba.com/LookCloserPAEverything Pennsylvania bankers need to navigate what’s next in banking ■ 100+ free compliance courses for the entire bank■ News, analysis and data you can use—in real time■ 300+ staff experts in every area of banking■ Virtual working groups, schools, webinars and moreThese beneﬁts and more—all with your ABA membership. See for yourself.
8 » PA Bankers Association pabankers.comach August, the PA Bankers Board of Directors and Past Chairs gather for several days to review the industry landscape, as well as the association’s strategic challenges and correlating goals/tactics to address those objectives. This retreat comes at the beginning of the fiscal year and thus serves as an opportunity to set the association’s course for the next 12 months. And while every retreat is special, this year’s meeting was even more memorable because we were together in-person. Who would have thought that a meaningful metric for the success of a meeting would be convening in the same place? Well, in this COVID era, it clearly is. I watched with great pride as our bankers reunited (in-person) as a board for the first time since the pandemic began in March of 2020. At that time, only 10 of our current 27 board members were members of the board. You can do the math, but that means 17 board members participated in their first non-virtual board meeting as part of this retreat. Led by our ’21-’22 Chair, Wes Weymers of the Gratz Bank, this year’s retreat was a truly productive three days of industry dialogue and board camaraderie. The merging of veteran and new thinking - from institutions of all sizes and, from every corner of the commonwealth, and from diverse functionalities and backgrounds - resulted in discussions that were fulsome, engaging and informative.We walked through the association’s strategic plan and focused on the various challenges, goals and tactics that comprise the plan. The challenges included:• What will the post-COVID recovery look like for the banking industry?• What will the impact of further industry consolidation be?• How will the economic environment affect Pennsylvania’s competitiveness?• What is the regulatory/legislative outlook for the banking industry?• How can we recruit the most diverse and effective workforce?• What does the emergence of crypto and fintech, coupled with the tax exemption for credit unions, mean for our industry’s competitive position?The strategic plan includes a set of goals/objectives that drive the association’s budgeting, resource allotment and staff focus. These goals include industry and association sustainability, enhanced communication/outreach and partnerships, programs meeting our member needs and operational excellence. And to support these objectives, the plan outlines an array of tactics, which are deployed against each goal.As you look at the challenges facing our industry today, there is no shortage of issues needing attention. As a guest speaker at our retreat, Rob Nichols, president and CEO of the American Bankers Association, joined our board to share his perspectives on a full litany of industry issues. From his take on the current legislative/regulatory/political environment in DC, to the emergence of crypto and fintech firms, and the CEO CEOPresident & CEO, PA Bankers AssociationE
PA Bankers Association » Quarter 3, 2021 9ongoing trend of bank acquisitions by credit unions, Rob touched on most, if not all, of the issues we had discussed during the strategic plan review session.We were also joined by PA Department of Banking and Securities Secretary Richard Vague, who offered his appreciation to the PA banking industry for its committed service throughout the pandemic. Secretary Vague acknowledged the joint effort of the industry and the department on recent banking fund legislation to convert the banking fund from a special fund to a trust fund. And in general, he articulated a soft-spoken, yet loudly appreciated, message of partnership and openness. We appreciate the support that Secretary Vague and his colleagues at the department have offered the Pennsylvania banking industry during this challenging time, and we look forward to building on this positive relationship, further, as we work our way out of this COVID health emergency.Beyond the industry and association focus, we were also able to take some time to enjoy each other’s company. The value of being together after so many months apart, was just that—being together. There was laughter and reminiscing of good times in the past. All in all, there was just a spirit of friendship and togetherness that we have missed for the past 17 months.This retreat does not happen without the support of our sponsors. Each of these companies has been integral to the success of our industry and staunchly supportive of PA Bankers for many years, and we thank them for their support:• FHLBank Pittsburgh;• Griffin Financial;• LR Webber;• PA Bankers Services Corporation;• PWCampbell; • Stevens & Lee;• The Baker Group; and• The Benecon Group.And I would be remiss if I did not mention the recognition of Past Chair Brad Scovill. Chair Weymers honored Brad the first evening of the retreat with some kind words, playful banter and a gift in appreciation for Brad’s leadership as chair. It was great to be back together in-person. And it will be even greater to see all of our members in- person this fall as we look to resume some level of normalcy for our programming. The association thanks you for all that you have done and all that you continue to do throughout this unique period of time. As we have demonstrated throughout our 125+ history, especially during the COVID-19 pandemic, together we are making a difference. INSIGHTStrue leader, whose compassion for the communities he serves and desire to advocate for institutions of all sizes is unparalleled. From the bottom of my heart, I wish to thank Brad for his mentorship and friendship over the years. It is my hope that I can uphold the outstanding leadership that he and other past chairs have provided to our industry and emulate their success. I would also like to acknowledge my other fellow officers, 1st Vice Chair Mark Ritter (The Northumberland National Bank) and 2nd Vice Chair Angie Sargent (Fulton Financial Corporation), for their commitment to bettering the association and the industry, as well as the full PA Bankers board. I look forward to working with all of them this year.It is an understatement to say that the past 18+ months have been hard. We, as bankers, have worked tirelessly to ensure that our customers and communities continue to have access to their finances and the support of their local community bank. And we have done it all with little guidance – a feat in and of itself. I am beyond grateful to all of you for what you have done and continue to do for the industry. To all PA Bankers members, please know that my door is always open. Over the next year, I promise to convey my passion for being a banker and pledge to uphold the integrity of our industry. I want every one of you to understand how important you are to the local communities that you serve. I am proud to stand alongside you as we build a better future. Thank you.Continued from page 4
10 » PA Bankers Association pabankers.comCheck out a preview of Crystal’s session at this year’s Convention. tenONTENYour session is called the future of work. Is the future not simply getting back to where we were pre-COVID? The future of work is most certainly not returning to where we were pre-COVID. We can't go back. We're seeing changing customer needs and preferences, staffing issues, and the mandate to be able to switch to online-only banking at the drop of a hat due to disease/natural disaster.One of your objectives is talking about how technology is reprogramming us. What do you mean by that? Our reliance on social media and smartphones is changing how we process information, behaviors, and lifestyle preferences. However, innovative bankers have to understand that it just isn't enough to service clients as we did even two years ago.How might this new programming impact how we do business as bankers? Bankers who want to get ahead of the trends need to understand how clients want to manage their money. Additionally, they must consider what kind of services are required for the future. These items may impact hours, staffing, technology offerings, and how bankers present products to clients.Let's talk about human touch. With many financial institutions shifting to AI and virtual customer service options, how does that impact bankers? Some of our more techy high net worth clients will want the option of doing more from their mobile devices. At the same time, they will still want access to a human, not a chatbot, for high-level questions. Bankers should prepare for more informed clients.What is the future for bankers who do not embrace agile thinking? First, agile is simply the ability to shift one's thinking as needed constantly. Technology is not rolled out as "finished" any longer. It's constantly changing and being updated. 2020 required agile thinking. Since we live in a world of constant change now, agile thinking is necessary for business survival.Can you give us a peek at just one of the trends you're going to cover during the session? While we're going to look at several, we will take a closer look at how bankers can leverage augmented reality for additional sales and better customer experiences.How might our bankers start preparing now? Bankers can start preparing by listening to customers. What challenges are they seeing customers repeat? What problems are customers needing to be solved that are currently being ignored? Those are precious breadcrumbs that the future is leaving us.You're sharing tips for embracing change moving forward. Give us one. Listen to podcasts about the future of work, technology, or humanity. Get used to considering a future unlike the one you've been imagining.What's your favorite technology when it comes to customer service? CRMs (customer relationship management systems) are my favorite technology for customer service. They allow us to track customers' buying behaviors and needs and customize service/offers to what matters to them.Do you have one parting piece of advice? Yes! The future isn't scary. While we are in a time of significant change, these are the times when it's easiest to make a mark and make a difference. Just listen to what's going on around you and be open to the possibilities.“Now, with the combined buying power of dozens of banks, we can keep costs relatively stable, even when we have experienced a year with higher claims.”M. Theresa SchwartzerExecutive Vice President, Chief Human Resources OcerUnivest Corporation of PAA unique health care alternative for nancial institutions and aliate members of the PA Bankers Association.Benets of Self-Funding with Bank Health Care Consortium of PAThe Bank Health Care Consortium of PA (BHCCPA) oers employee benets that provide you with strategic tools your organization can utilize to develop, retain and reward those who serve your institution and customers.Bank Health Care ConsortiumStand Alone Self-FundingFully-Insured Funding43 Groups | 6,000+ Enrolled | $93m Total FundingL.R. Webber Brad Webber, Marketing Manager814.317.4186 | email@example.comThe Benecon Group Claudia Burchstead, Senior Sales Director717.723.4624 | firstname.lastname@example.orgPA Bankers Services Corporation Wayne Whipple, VP, Business Development 717.255.6925 | email@example.comGuaranteed annual premium for the plan yearLower carrier administration costOnly pay your actual claims plus xed expensesGreater exibility in plan design & claim eligibilityEliminate PPACA premium taxes and federal benet mandatesStop-loss renewals based on actual projections not loss ratioNo lasering at renewal or late discovery of submission claimsMember manages all claim fund surplusesEnables mid-market employers (30+ employees) the safest method to self-fund their benet plan
PA Bankers Association » Quarter 3, 2021 11“Now, with the combined buying power of dozens of banks, we can keep costs relatively stable, even when we have experienced a year with higher claims.”M. Theresa SchwartzerExecutive Vice President, Chief Human Resources OcerUnivest Corporation of PAA unique health care alternative for nancial institutions and aliate members of the PA Bankers Association.Benets of Self-Funding with Bank Health Care Consortium of PAThe Bank Health Care Consortium of PA (BHCCPA) oers employee benets that provide you with strategic tools your organization can utilize to develop, retain and reward those who serve your institution and customers.Bank Health Care ConsortiumStand Alone Self-FundingFully-Insured Funding43 Groups | 6,000+ Enrolled | $93m Total FundingL.R. Webber Brad Webber, Marketing Manager814.317.4186 | firstname.lastname@example.orgThe Benecon Group Claudia Burchstead, Senior Sales Director717.723.4624 | email@example.comPA Bankers Services Corporation Wayne Whipple, VP, Business Development 717.255.6925 | firstname.lastname@example.orgGuaranteed annual premium for the plan yearLower carrier administration costOnly pay your actual claims plus xed expensesGreater exibility in plan design & claim eligibilityEliminate PPACA premium taxes and federal benet mandatesStop-loss renewals based on actual projections not loss ratioNo lasering at renewal or late discovery of submission claimsMember manages all claim fund surplusesEnables mid-market employers (30+ employees) the safest method to self-fund their benet plan
12 » PA Bankers Association pabankers.comver the last two academic years, PS Bank has donated over $140,000 to the Northern Tier Career Center (NTCC) through the EITC Program (administered by Select Vendor Commonwealth Charitable Management). The donations have provided NTCC students with supplies associated with successful participation in their program of study and the transition into their chosen career fields by providing tools, equipment, uniforms, safety gear and industry certifications. Items vary by program, and examples include steel toe boots, mechanic tool sets, cosmetology kits, stethoscopes and scrubs, chef’s hats and jackets, and program-specific tools.NTCC programs of study include:• Auto Body/Collision Repair Technology; • Automotive Mechanics Technology;• Diesel Mechanics Technology; • Building Construction Trades; • Mechanical Trades: Heating, Ventilation & Air Conditioning (HVAC); • Cosmetology; • Pre-Nursing; • Food Production and Management; • Information Technology; • Machine Tool Technology; • Welding Technology; and • Cooperative Education.CORNERPS Bank Supports the Northern Tier Career CenterO“The PS Bank Scholarship has allowed us to start the past two school years on an exceptionally positive note, which was particularly impactful during the pandemic. The light provided by PS Bank’s recognition and dedication to the students of was a year fraught with losses, the scholarship provided opportunities for students to regain some sense of normalcy and, most importantly, hope for the possibilities ahead.” - Administration of Northern Tier Career Centerto local students. Our partnership with the Northern Tier Career Center is an exciting opportunity to provide students enrolled in vocational-technical programs with the tools necessary for their success.” - Anthony J. Gabello, PS Bank President & CEO
PA Bankers Association » Quarter 3, 2021 13YHB has a team of dedicated professionals who specialize in providing expert services to community banks. They have committed their entire career to helping banks thrive and no one has more experience than your YHB team. We are relentless in our pursuit of providing you the resources and personalized service you deserve. At YHB, we know what it takes to help you succeed because we know community banks.Internal Audit | External Audit | IT Controls & Governance | Tax ServicesAPPI ENERGY ...............................................................................................................................................................................................................45AMERICAN BANKERS ASSOCIATION ........................................................................................................................................................... 7BANK HEALTH CARE CONSORTIUM OF PA .......................................................................................................................................... 11BANKTALENTHQ ...................................................................................................................................................................................................IBC BANKERS ALLIANCE ............................................................................................................................................................................................. 63BOXWOOD MEANS, LLC .....................................................................................................................................................................................15CINNAIRE .......................................................................................................................................................................................................................43FINANCIAL OUTSOURCING SOLUTIONS, LLC .................................................................................................................................. 62SCHNEIDER DOWNS ............................................................................................................................................................................................ 46PNC BANK .................................................................................................................................................................................................................... 49PWCAMPBELL ............................................................................................................................................................................................................57S.R. SNODGRASS, P.C. ......................................................................................................................................................................................... BCTHE BAKER GROUP .................................................................................................................................................................................................. 6THE COALITION OF BANKERS ASSOCIATION .......................................................................................................................................5INVESTORS TITLE INSURANCE COMPANY...........................................................................................................................................47YHB | CPAS & CONSULTANTS ........................................................................................................................................................................13adINDEX
14 » PA Bankers Association pabankers.comCORNERF&M Trust Donates $75K to the Greencastle-Antrim Education FoundationF&M Trust donated of $75,000 to the Greencastle-Antrim Education Foundation’s (GAEF) Kaley Field Project.Quemahoning Family Recreation Area Expansion ProjectThe Farmers National Bank 2nd Avenue Park Project1ST SUMMIT BANK donated $2,500 to the Cambria and Somerset Counties Conversancy (CSCC) to help with the expansion of recreational amenities at the QuemahoningFamilyRecreationArea.The Farmers National Bank of Emlenton contributed $100,000 through the Neighborhood Assistance Program, to the 2nd Avenue Park Project. The park will be owned and operated by the Clarion Blueprint Community. Villaume Foundation GrantsWayne County Community Foundation Receives Grant from Villaume FoundationThe Wayne County Community Foundation received one of the Board of The John and Helen Villaume Foundation’s 2021 community grant awards for $40,000. The money will be used for a feasibility study for the development of an Agriculture Innovation Center. Wayne Pike Trails & Waterways Alliance Receives Grant from Villaume FoundationThe Board of The John and Helen Villaume Foundation announced that the Wayne Pike Trails & Waterways Alliance was selected to receive one of the Foundation’s 2021 community grant awards for $40,000. The grant will help fund the installation of boat ramps at two different access points in Wayne County.
PA Bankers Association » Quarter 3, 2021 15NEW TO PA BankersWelcomeAFFILIATE MEMBERS:ADT CommercialAunalytics Baker HillBank Compensation Consulting (BCC-USA)Bankers Healthcare GroupBlanchard Consulting Group CRA PartnersCSIInnerViewKlariVisLaBella AssociatesMcDonnell & AssociatesRivel, Inc.Shield ComplianceSofttek Integration SystemsStephens, Inc.The Element GroupUnitas Financial ServicesAs Small-Balance CRE Lending Recovers, Trust Boxwood Means to Deliver Skilled Property Valuation and Inspection Services®Place Your Next Order with Boxwood MeansON-TIMEFIXED FEESLESS COSTLYACCURATENATIONWIDEAUTOMATEDCOMPLIANT FASTRETAILPRUDENT ANALYSISTHOROUGHVETERAN APPRAISERSDATA RICHPROACTIVESTANDALONE INSPECTIONSEFFICIENTOFFICETRACKABLEINDUSTRIALTRUSTWORTHYCLIENT FOCUSEDHANDS-ONCOLLABORATIVERESPONSIVEFLEXIBLETECH-INTENSIVECONVENIENTMIXED USERUSH OPTIONSMULTIDASHBOARD ACCESSFAMILYContact Sales: Telephone 203.653.4100Email: info@BoxwoodMeans.comVALUEFIELDSMART EVALUATIONS ■ FIELDSMART RESTRICTED APPRAISALS PROPERTY INSPECTIONS ■ ENVIRONMENTAL SURVEYSENVIRONMENTAL QUESTIONNAIRES
16 » PA Bankers Association pabankers.comCORNER to Organizations Through the EITC ProgramAbington Community Library HNB designated $3,000 to the Abington Community Library to support K-12 educational opportunities.Lacawac Sanctuary Field Station and Environmental Education Center HNB designated $2,000 to the Lacawac Sanctuary Field Station and Environmental Education Center. The funds will support the Center’s K-12 innovative educational programs.Wayne County Public LibraryHNB designated $20,000 to the missions of the Wayne County Public Library. The funds will support students with e-resources and virtual programming within the seven-library system, including the following local libraries: Bethany, Hamlin, Hawley, Newfoundland, Northern Wayne, Pleasant Mount and the WCPL (Honesdale).Devereux FoundationHNB donated $2,500 to the Devereux Foundation to support individuals in all areas of life - from activities like Special Olympics to sensory-friendly spaces and advanced therapy.Leadership LackawannaThe bank designated $2,000 to Leadership Lackawanna. The funds will support curriculum enhancement for the betterment of local young professionals.Western Wayne Education FoundationHNB donated $1,600 to the missions of the Western Wayne Education Foundation. The money will support the enhancement of educational experiences for students within the Western Wayne School District.The Ernest and Margaret Lemnitzer Memorial Fund DonationThe Ernest and Margaret Lemnitzer Memorial Fund, administered by the Trust Department at HNB and local Honesdale businessman, Paul Meagher, continued its support of those pursuing higher education with the awarding of scholarships to 2021 graduates of Wayne Highlands High School with a total distribution of $35,558.32.
PA Bankers Association » Quarter 3, 2021 17Kish and Giv Local Community Gifting Partnership Benefits Juniata Valley YMCAThe Juniata Valley YMCA recently received funds as a result of Lewistown Paper Company’s participation in Kish and Giv Local’s community gifting program. Representatives from Kish Bank, Giv Local and Lewistown Paper Company presented the YMCA branch with a check to celebrate the inaugural donation from the program.Kish and Giv Local’s community gifting partnership, which launched in 2020, gives Kish Bank business customers the opportunity to “gift back” to local nonprofits of their choosing at no extra cost. 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 (email@example.com), for a chance to be featured in paBanker Magazine or on PA Bankers' social media channels and website.
18 » PA Bankers Association pabankers.comWESLEY M. WEYMERS President and Chief Executive Officer The Gratz Bank Gratz, Pa.MARK A. RITTERExecutive Vice President &Chief Administrative Officer The Northumberland National BankNorthumberland, Pa. ANGELA M. SARGENTSenior Executive Vice President, Chief Information OfficerFulton BankLancaster, Pa.J. BRADLEY SCOVILLPresident and Chief Executive Officer C&N Wellsboro, Pa.SCOTT B. DAUM President and Chief Executive OfficerFirst United National BankFryburg, Pa. GLENN B. MARSHALLChief Executive OfficerFirst Resource BankExton, Pa. RANDALL E. BLACK President and Chief Executive OfficerFirst Citizens Community BankMansfield, Pa.RONALD J. SEIFFERT President and Chief Executive Officer Northwest Bank Warren, Pa.Policy Committee Chairs:CARRIE L. RIGGLE Executive Vice President, Human ResourcesFirst Commonwealth Bank, Indiana, Pa.DAVID R. HUNSICKER Chairman, President and Chief Executive OfficerNew Tripoli Bank New Tripoli, Pa.2021-22 BOARD MEMBERSWelcomeDeposit Category Representatives:
PA Bankers Association » Quarter 3, 2021 19At-Large Representatives: MARY GRIFFIN CUMMINGS, ESQUIRE Executive Vice President and General CounselFNCB BankDunmore, Pa.SUSIE B. SHIPLEY President, Western Pennsylvania and OhioThe Huntington National BankPittsburgh, Pa.PHILIP H. JOHNSONRegional PresidentM&T BankWilliamsport, Pa.FRANCIS J. LETO President and Chief Executive OfficerThe Bryn Mawr Trust CompanyBryn Mawr, Pa.SHARIFA A. ANDERSONChief Diversity & Inclusion Officer FHLBank PittsburghPittsburgh, Pa.LAURA B. HAFFNER Region Bank President, Senior Vice President, Greater Pennsylvania Region, Branch BankingWells FargoPhiladelphia, Pa.EVELYN F. SMALLSPresident and Chief Executive OfficerUnited Bank of PhiladelphiaPhiladelphia, Pa.K. BERNARD TYNESSenior Vice President, Director of Marketing and Data AnalyticsPenn Community BankPerkasie, Pa.2021-22 BOARD MEMBERSWelcomePA Bankers Group Representatives: JOHN C. GILL President and Chief Executive OfficercfsbankCharleroi, Pa. DANIEL J. SCHAFFER President and Chief Executive OfficerThe First National Bank and Trust CompanyNewtown, Pa. ANTHONY J. GABELLOPresident and Chief Executive OfficerPS BankWyalusing, Pa. JEFFREY J. KAPSAR President and Chief Executive OfficerMifflinburg Bank and Trust CompanyMifflinburg, Pa. EUGENE J. DRAGANOSKY President and Chief Executive Officer Traditions Bank York, Pa. JEFFREY A. STOPKO President and Chief Executive OfficerAmeriServ Financial BankJohnstown, Pa. Non-Voting Members: JENNIFER A. POULSENSenior Vice President, Chief Operating OfficerFarmers National Bank of EmlentonEmlenton, Pa J. DUNCAN CAMPBELL IIIPresident, Chief Executive Officer and TreasurerPennsylvania Bankers AssociationHarrisburg, Pa.
20 » PA Bankers Association pabankers.comYOUR NEW MtWe would like to welcome our second vice chair, Angela M. (Angie) Sargent, senior executive vice president, chief information officer, Fulton Bank. We asked Angie to answer a few of our burning questions. Get to know Angie below!Growing up through Fulton Bank, I witnessed many leaders before me who were actively engaged with PA Bankers. I learned to respect the association, their mission and their team members from afar until 2012 when I become personally engaged as a board member of the PA Bankers Services Corporation. As a banker and technology leader, I had experience with various vendors and their offerings. I was able to provide insight into vetting various vendors through the Select Vendor Program, but I also learned a lot from the association during that time.Working with peer bankers and the talented, dedicated PA Bankers team made me want to continue and expand my involvement, so I then moved on as an inaugural member of the Women in Banking Committee, eventually serving as chair. I have had the opportunity and privilege to remain very active with the association by serving on many other committees over the years as well. I believe sometimes one considering or starting a banking career may look at our industry as one solely filled with those “traditional banker” roles. I encourage them to think more broadly and consider jobs ranging from human resources to marketing to IT and everything in between. As banks, we each have a mission to serve our customers and positively impact their lives; however, that takes a village! I also encourage the next generation to “lean in;” ask to be involved in projects or initiatives outside their comfort zone, remain curious and simply just get involved whenever and however they can. It is critical for each of us to remain a continuous learner. No one can be truly successful as a banker with a complacent, fixed mindset. The world in which we live today is moving and changing at warp speed, and banking is no different. Today, so many important goals can be tied to PA Bankers and our overall industry’s success; however, the one thing that needs to be on the forefront is stronger engagement with our association. I believe this is a foundational element from which positive movement can come. If we have the engagement of our members, good things will naturally follow. And we would experience stronger participation in our association’s events and schools. We would be able to better share ideas and concerns among ourselves with stronger, cohesive outcomes. And we would be able to increase advocacy for our industry. My ask to each of you is to thoughtfully consider how you and your bank can become more engaged.
PA Bankers Association » Quarter 1, 2021 21inmemoriamPA Bankers mourns the loss of one of our association’s leaders, Rich Graver, chief lending officer of The Victory Bank. Rich served aschair of the PA Bankers Government Relations Policy Committee, as well as vice chair of the PA Bankers Advocacy Committee and chair of the Group 2 membership region, among other volunteer roles.Rich was a true leader of our association and an exceptional advocate for the Pennsylvania banking industry, always working to sustain the Boyertown community he loved. Those that were acquainted with Rich know that he had a heart of gold, constantly devoting his time to his bank, community, the Philadelphia Eagles and, most importantly, his friends and family.The PA Bankers board of directors and association staff were fortunateto have worked alongside Rich all of these years, and we send our deepest condolences to his entire family – especiallyhis wife, Holly, and sons, Phil and Ryan – as well as his colleagues at The Victory Bank. We will be forever blessed by the example he set as a banker but even more so as a loving, caring individual.
22 » PA Bankers Association pabankers.comARTICLEClick here for hotel, transportation and activity information. Not registered? Visit www.pabankers.com to register today.*Due to COVID-19, PA Bankers reserves the right to convert in-person events to virtual delivery with as much advance notice of the change(s) as is practical under the circumstances.Cannabis Banking UnlockedCredit Risk Management During Uncertain TimesCryptocurrencyEmerging Trends in Corporate Governance: The Duties of a Bank Director and Governance Best PracticesFintech and Bank Alliances: The Future is HereGrowing an Inclusive Mindset and LeadersManaging Engagement in a Remote and Hybrid WorkplaceManaging Excess Liquidity to Maximize Performance & Manage RiskPayments Convergence and the Impact to Your Bottom LineRegulatory Update and the RFI InitiativeTech and Touch - Creating an Omnichannel Experience for Today's ConsumerYour Diversity, Equity & Inclusion ROADMAPWe look forward to seeing you in Marco Island, Fla.!Experience four days packed with dynamic speakers, lively discussions about the banking industry, inspirational programs, ne dining, entertainment, community service and more at the PA Bankers 2021 Convention*, Oct. 29-Nov. 1, 2021 at the JW Marriott Marco Island Beach Resort in Marco Island, Fla."The Future of Work is Here," Crystal Washington, Sponsored by: FHLBank Pittsburgh "Limitless Possibilities," Gerard Senehi, Co-sponsored by: L.R. Webber & The Benecon Group
PA Bankers Association » Quarter 3, 2021 23ACBB - PA Bankers Convention Open PrizesAPPI Energy - Co-Sponsor: Continental Breakfast - Oct. 31Arnold & Porter LLP - General Session Snacks - Nov. 1Aunalytics - Everglades Airboat Excursion TourBarley Snyder - Opening CeremoniesBoenning & Scattergood, Inc. - Co-Sponsor: Continental Breakfast: - Oct. 31Burns White LLC - Printing of Convention Pocket GuideBybel Rutledge LLP - Welcome Reception EntertainmentCOCC - Attendees Pads & PensCrowe LLP - Badge Lanyards/HoldersDeluxe - General Session Snacks - Oct. 31Dixon Hughes Goodman LLP - PA Bankers ConventionOpen SnacksKlariVis - Room DropPaylocity - Happy Hour Bourbon Tasting TourPillar+Aught - Digital Confirmation KitsPiper Sandler & Co. - Co-Sponsor: Welcome ReceptionS.R. Snodgrass, P.C. - Convention Room KeysShield Compliance - Hilton ShuttleThe Kafafian Group - Staff ShirtsWolf & Company - Co-Sponsor: Welcome ReceptionJMFA KBWNcontractsPCBBPursuit CDCStradley Ronan Stevens & Young LLPWorldpay from FISTHANK YOU TO OUR SPONSORS*DIAMONDPLATINUMGOLDSILVERBRONZEBaker DonelsonBaker TillyBerkley Financial SpecialistsFinancial Outsourcing SolutionsHerbein | Mosteller HR SolutionsIntraFi Network Jack Henry BankingFood Bank & Sponsor in Part: Board, Past Chair & Staff Reception & DinnerConvention WiFiChair's ReceptionCo-Sponsors: Closing Session Keynote SpeakerGeneral Session Keynote SpeakerCo-Sponsors: Officer GiveawayCo-Sponsors: Beach Party EntertainmentBoard, Past Chair & Staff Reception & Dinner*Contracts received by Sept. 20, 2021.Beach Party Food & BeverageContinental Breakfast - Nov. 1Sponsor in Part: Board, Past Chair& Staff Reception & Dinner
Congratulations to the 2021 CSBS Community Bank Case Study Competition top three PA teams! 1. Mansﬁeld University and C&N2. Rosemont College and Asian Bank3. Messiah University and LINKBANK Out of a total of 35 teams that competed in the national competition, 15 teams were from PA. Interested in participating next year or learning more about the competition? Click here.Announcing the Top 3 PA Teams in the CSBS Community Bank Case Study Competition
PA Bankers Association » Quarter 3, 2021 25ARTICLE AND SCHOOLS Cogauain SCHOOL OF BANKINGTop Honors LeeAnn Baucom .......................................Farmers National Bank of Emlenton Amylynn Delgado....................................Northwest Bank Kathleen Laughlin ...................................Northwest Bank SCHOOL OF COMMERCIAL LENDINGTop Honors Jordan Hurrell .............................................Community State Bank of Orbisonia Honors Shaun Eng.....................................................First National Bank of PA Jodi Gibson ..................................................Middletown Valley Bank Leanne Kassab ..........................................CNB Bank Dr. Philip O. Benham, Jr. Achievement Award Colleen Molinero ......................................Dollar Bank, Pittsburgh Honors Allana Hartung ...........................................Kish Bank, Lewistown Stephen Tomko .......................................... Dollar Bank Michelle Huey .............................................MiinburgBank&TrustCo. Kimberly Lamar .........................................Fulton Financial Corp. Dr. Philip O. Benham, Jr. Achievement Award Justin Aiello ..................................................Mauch Chunk Trust Company Honors Terra Decker .................................................Kish Bank Angela Meyer .............................................. S&T Bank Lauren Duane .............................................First Keystone Community Bank
26 » PA Bankers Association pabankers.comARTICLEe all have those tasks on our plate that get pushed to the back burner. While they’re important, they’re not the best use of time for you or your colleagues. Think presentation creation, social media content, or lead research. That’s why PA Bankers has partnered with Parker Dewey to host Micro-Internships—short-term, professional projects in financial service roles. We chatted with Brittany Kerchersky, assistant vice president and director of human resources at The Farmers National Bank of Emlenton, about her experience hosting a Micro-Intern. Read on for Brittany’s insights!opportunity for new talent to gain exposure to the “The bank is always supportive of and seeking the younger generation to fall in love with banking. We are passionate about what we do and serving our communities—we believe in what a career in banking can offer and this platform gives us the additional opportunity to make those connections.”ultimately ran a project that didn’t require sharing any “When you gave it some thought, there are certainly projects that require zero information to be shared. We utilized a project for Market Research. We requested [that our Micro-Intern] research our markets and report on the various market share, where our organization ranks within those markets and within different radiuses, etc.We’re soon going to utilize a Micro-Intern for a project within Human Resources to enhance our hiring process. They will be researching various recruiting assessments to allow us to evaluate our candidates to ensure we are hiring the best candidate for the role.” “The process was very smooth and easy to navigate—from the posting and reviewing of candidates, to kickoff and completion. We explained the project and Sebastian ran with it. We were very pleased when we got the results: very organized information that included spreadsheets, graphs, and was extremely detailed with valuable information regarding our bank footprint. Sebastian was quick to reply to my original messages, presented himself well, took notes during our conversation and delivered exactly what was asked of him and more.” identified various ways that Micro-Internships support Reducing internal researching cost: “When you calculate the cost of this platform versus the salary you are paying, there is a savings there.” Saving time: “You get to be in two places at once. You are ultimately working on your other tasks while this Micro-Intern is working alongside of you, and you are “working on two projects at once”.Gaining a competitive advantage: “Research, at times, is the item that gets pushed to the bottom. However, understanding what the competitors are doing and how you rank within a market is necessary to the success of your organization.” Welcoming new perspective: “We all will choose to do things the same way we have always done them, right? Allowing a new set of fresh eyes, fresh perspective, is invaluable!”Seeing candidates in action: “You get a test drive of these interns that could potentially be employees if the time and location is right. It’s a win-win.” First-Hand Account from Brittany Kerchersky, The Farmers National Bank of EmlentonWThanks, Brittany, for sharing your perspectives with us! To learn more about the PA Bankers Micro-Internship Program,
PA Bankers Association » Quarter 3, 2021 27ver the past few years, banks have been preparing their organizations to provide more digital services as a convenience for their customers. The growth in non-bank competition has increased the need for banks to provide financial services, not only as a convenience, but also as a necessity to attract a new generation of banking customer. The need to provide financial services throughout the pandemic has moved banking digital banking initiatives fast forward and now, in the late phases of the pandemic waves, digital banking services have become more essential than ever.As we continue to evolve our banks to effectively and securely provide financial services to the changing behavior of our customers and adapt to new generations, it is clear that digital banking is much more than just technology and security. Successful digital banking needs to be a part of the organization’s overall strategy and the whole organization needs to be able to adapt to ongoing changes in our communities.Recognizing the breadth of impact that the digital banking evolution has on our organizations, the IT Committee has been assisting the association in lining up topics for the 2021 Digital Banking Conference that will address these organizational challenges. This year’s speakers will address digital banking challenges to benefit several areas of the bank with information on how to develop meaningful content, leverage the power of data to drive financial value, develop a data-centric culture, use data for strategic decision-making, and execute strategies that can deepen portfolios and drive new growth. Of course, speakers will also address technology and security! A special pre-conference session on Sunday, Nov. 14 at 4 p.m. will address the trends in ransomware, detection and prevention strategies, effective response procedures and containment strategies to mitigate damage. This is a great opportunity for members throughout the organization to learn how to address digital banking challenges and, especially, for networking and discussion with your peers in the industry. Please visit pabankers.com to see the agenda, review the brochure, and sign up now!PEERS Digital Banking OpportunityOIn Memoriam: Jeff Wozniak, Senior Vice President, First Keystone Community Bank.We are saddened to have learned about the passing of Jeff Wozniak. Jeff has always been a loyal and dedicated member of the IT Committee. His contributions will be missed by the committee but, greater than that, we will all miss his friendship.: MICHAEL MCGRAWSENIOR VICE PRESIDENT, INFORMATION TECHNOLOGY, MARS BANK CHAIR, PA BANKERS IT COMMITTEE
28 » PA Bankers Association pabankers.comThank you to our sponsor, Crowe LLP, for their support of this program. AVP, COMMUNITY BANKING MANAGER, S&T BANKNOMINATOR COMMENTS:Tae has been at S&T for 14 years and has completed the S&T Leadership Training. Recognized in PA Business Central for Foremost Under 40 in 2016, Tae is actively involved in nonprofit, philanthropic and community work, including leadership roles on Indiana County Chamber’s Young Professional Organization, Citizen’s Ambulance, Indiana Rotary Club, Indiana Salvation Army, Homer City Business Association, Indiana County Chamber’s Young Professionals Organization, Indiana County Head Start Inc., Miracle League of Indiana County and Indiana County’s Junior Achievement.AwardsThe Future Under 40 awards recognizes young industry leaders who have made a tremendous impact in their institution, the community and the industry. 2021HONOREE
PA Bankers Association » Quarter 3, 2021 29Thank you to our sponsor, Crowe LLP, for their support of this program. Awards AVP, FINANCIAL SOLUTIONS CENTER MANAGER, FIRST COMMONWEALTH BANKNOMINATOR COMMENTS:Patti was selected as one of only two people to represent the retail end-user when First Commonwealth upgraded our core systems in 2014 and through 2015. Patti worked alongside a small team of leaders to determine processes to create and deliver a training program to the retail network.Patti served for four years as chairperson of the Miss Ligonier Scholarship Pageant, a nonprofit event which has been a staple of the Ligonier Valley for more than 60 years. This competition provides higher education scholarships for junior and senior girls based primarily on their community involvement and charitable hours served. In this, Patti’s primary responsibility was to host lunch and learn sessions with junior and senior high school girls to coach them on interview etiquette and help prepare them for post-high school work environments.The Future Under 40 awards recognizes young industry leaders who have made a tremendous impact in their institution, the community and the industry. 2021HONOREE
30 » PA Bankers Association pabankers.comThank you to our sponsor, Crowe LLP, for their support of this program. Awards SVP, DIRECTOR OF RETAIL BANKING, PENN COMMUNITY BANKNOMINATOR COMMENTS:Throughout his time at Penn Community Bank, Jake’s hard work has contributed to the development of best-in-class retail branch teams across more than 20 locations and the continued growth of consumer market share. One of his key accomplishments has been his leadership of the bank’s coordinated customer-facing response to the coronavirus pandemic, including championing the health and safety of the frontline while simultaneously delivering the essential services needed to customers.Outside the office, Jake dedicates time and talents as a board member of the Bucks County Opportunity Council, a nonprofit organization dedicated to reducing poverty and partnering with the community to promote economic self-sufficiency. As a father of three, he is never far away from the baseball diamond, where he serves as a regular youth baseball coach.The Future Under 40 awards recognizes young industry leaders who have made a tremendous impact in their institution, the community and the industry. 2021HONOREE
PA Bankers Association » Quarter 3, 2021 31Thank you to our sponsor, Crowe LLP, for their support of this program. Awards ASSISTANT COMPLIANCE OFFICER, AVP, FIRST KEYSTONE COMMUNITY BANKNOMINATOR COMMENTS:Amanda has trained and mentored a number of new credit analysts, thereby contributing to the overall success of the department. She communicates effectively, works well in a collaborative setting, and is intrepid in taking on new challenges. Moreover, Amanda has a strong moral compass and has repeatedly demonstrated her commitment to ethical decision-making. During the pandemic, she spearheaded the Paycheck Protection Program (PPP) loan origination process and has continued to assist lenders in the tracking of forgiveness of these loans. She has continued to assist the Credit Department and work through the PPP initiative, all while taking on her new role of assistant compliance officer, which she was promoted to in 2021.Amanda serves as the collegiate chapter director of the Mansfield Chapter of the Delta Zeta sorority (a National Panhellenic Sorority). Amanda has served as one of First Keystone’s primary ambassadors for our bank-wide “CONNECT” initiatives, orchestrating inter-departmental challenges such as canned-food drives to benefit local food pantries. The Future Under 40 awards recognizes young industry leaders who have made a tremendous impact in their institution, the community and the industry. 2021HONOREE
32 » PA Bankers Association pabankers.comThank you to our sponsor, Crowe LLP, for their support of this program. Awards PRESIDENT, LINKBANKNOMINATOR COMMENTS:As an influential key member in the in the establishment of LINKBANK in 2018, Brent continues to serve as president. LINKBANK was formed with a mission to positively impact lives through community banking. Brent’s vision for community banking began in being instrumental in the founding of LINKBANK, a new community driven, locally focused community bank in South Central PA. With a vision to foster personal relationships, inspire trust and empower digital innovation, Brent’s desire is to positively impact lives through authentic relationships built on integrity and enabling financial growth. Brent has delivered on his promise to positively impact his community through the establishment of the LINK Foundation. The LINK Foundation mission is to strengthen the communities they serve and positively impact lives by funding initiatives focused on developing future leaders, promoting financial literacy and personal growth.The Future Under 40 awards recognizes young industry leaders who have made a tremendous impact in their institution, the community and the industry. 2021HONOREE
PA Bankers Association » Quarter 3, 2021 33Thank you to our sponsor, Crowe LLP, for their support of this program. Awards VP, ACCOUNTING MANAGER, FIRST KEYSTONE COMMUNITY BANKNOMINATOR COMMENTS:It is very apparent that others throughout the bank look to her for solutions and guidance, and she is always willing to share her knowledge of the industry sources and interpretations (i.e., UBPR reports, etc.). Natalie is proactive, detail oriented, analytical, a team player and always willing to assist toward accomplishing any organizational goal, take on new challenges and dream of new ways to improve the accounting department. She works closely with the accounting team to brainstorm new ideas and ways to modernize operations. She has successfully trained several new accountants and interns during her time as accounting manager.She is highly effective in utilizing her vast experiences in managing her team’s efficiencies to complete the high volume of Accounting Department work goals to achieve the least amount of human resources expenses and everyone’s work/life balance. She brings her cheerful and youthful personality to work every day to encourage her team to achieve the demanding details and deadlines, no matter what may be going on her life in or outside the bank. Her constant appetite for knowledge is her crown jewel. She is always willing to expand her horizons with webinars, banking school, research, etc. Then she willingly shares the knowledge with her team and others to ensure the group is enriched as well.The Future Under 40 awards recognizes young industry leaders who have made a tremendous impact in their institution, the community and the industry. 2021HONOREE
34 » PA Bankers Association pabankers.comThank you to our sponsor, Crowe LLP, for their support of this program. Awards VP, MORTGAGE SERVICES MANAGER, FIRST KEYSTONE COMMUNITY BANKNOMINATOR COMMENTS:Leighton carefully analyzes new loan requests and quickly recommends the best structure for the loans, while keeping both the Bank’s interests and the customer’s needs in mind. She is instrumental in managing our Residential Mortgage portfolio and her team. She works daily to find ways to improve our processes and procedures, all while maintaining strict regulatory guidelines. She is always willing to help other areas of the Bank, including sales, operations and marketing.She is involved in various committees at the Bank and community groups. She volunteers with the Berwick Women’s Civic Club, Berwick Salvation Army and Locker Room Committee, which supports the Berwick Girls Basketball program. She also gives her time as a volunteer tennis coach for Berwick High School. She is a model employee and citizen. She is a mentor to many of our staff.The Future Under 40 awards recognizes young industry leaders who have made a tremendous impact in their institution, the community and the industry. 2021HONOREE
PA Bankers Association » Quarter 3, 2021 35Thank you to our sponsor, Crowe LLP, for their support of this program. Awards VP, INTERIM IT MANAGER, INFORMATION SECURITY OFFICER, FIRST KEYSTONE COMMUNITY BANKNOMINATOR COMMENTS:David is an innovator and leader in the IT Department. When IT staff needs assistance with any issue, David is the first resource they turn to for help. His ability to troubleshoot and diagnose issues ensures that all of the Bank’s information technology systems are consistently up and running with minimal downtime. He continuously suggests and implements process improvements allowing for greater automation of workflows in various areas of the bank, thereby increasing efficiency and saving employees time. David approaches all requests with a “can do” attitude, which is much appreciated by coworkers, bank employees and management.Although David has extensive education and a multitude of certifications, one of the primary keys to his success is that he is humble and never makes anyone feel that he is above them. He has instilled in his team the importance of qualities such as patience and treating everyone (employees, management, Board of Directors and customers) with dignity and respect. He has an excellent look-forward attitude and is truly a pleasure to work with.The Future Under 40 awards recognizes young industry leaders who have made a tremendous impact in their institution, the community and the industry. 2021HONOREE
36 » PA Bankers Association pabankers.comThank you to our sponsor, Crowe LLP, for their support of this program. Awards FINANCIAL SOLUTIONS AREA MANAGER, FIRST COMMONWEALTH BANKNOMINATOR COMMENTS:In Britney’s two years in banking, she was promoted to the area manager of Westmoreland County, where she is responsible for driving results, increasing balance sheet, and coaching employees for 12 branches. Britney has been involved with many open forums and case studies to help improve the bank. She has also assisted with the Financial Solution Specialist Roundtable curriculum and integration of multiple areas for our Financial Solution Specialist teammates to learn best practices from other coworkers and empower them to share their thoughts and concerns.The past year or so has been a prime example of how much our industry truly can impact our local communities and how change needs to be welcomed. Due to the pandemic, Britney found ways to give back to her community in different ways than ever before. She is involved with a group called The Greensburg Breakfast Club, where she donates time to cleaning up local parks and volunteering in food banks. She also is a volunteer for Feeding the Spirit, a nonprofit specializing in addressing human crises and providing long-term solutions by reducing barriers to housing, employment and food security.The Future Under 40 awards recognizes young industry leaders who have made a tremendous impact in their institution, the community and the industry. 2021HONOREE
PA Bankers Association » Quarter 3, 2021 37AwardsHONORING INFLUENTIAL IN THE PA BANKING INDUSTRYThe Women in Banking Recognition of Excellence Program honors rising stars and leaders throughout our industry that continually “go the extra mile” to promote and inspire women to reach their full potential within the banking industry, her financial institution and the community.Four individuals are honored in the following three categories:• THE PATRICIA A. HUSIC WOMAN OF INFLUENCE AWARD;• TOMORROW’S PROMISE AWARD; AND• CHAMPION FOR WOMEN AWARD (2 AWARDS - ONE AFFILIATE MEMBER AND ONE FINANCIAL INSTITUTION MEMBER).Thank you to our co-sponsors, Schneider Downs and Pillar+Aught, for their support of this program.
38 » PA Bankers Association pabankers.comAwardsThank you to our co-sponsors, Schneider Downs and Pillar+Aught, for their support of this program.TOMORROW’S PROMISE VP, HR PARTNER, PENN COMMUNITY BANKNOMINATOR COMMENTS: Kirsten is an integral part of the Penn Community Bank Human Resources Department and the organization as a whole. She is a driven individual, supportive team member and consistent advocate for meaningful change…Both in and beyond her official position, Kirsten is a strong advocate for Penn Community Bank’s diversity, equity and inclusion efforts – including as part of the Inclusion, Diversity and Equality for All Council. Serving as an example for others, she is a frequent volunteer at DE&I events and works closely with business lines to identify
PA Bankers Association » Quarter 3, 2021 39CHAMPION FOR WOMEN AFFILIATE MEMBER DARA MANAGING DIRECTORKAPLAN PARTNERSNOMINATOR COMMENTS: Dara is a passionate advocate for women in leadership roles, as well as a strong role model for aspiring women leaders. As a managing director of Kaplan Partners, Dara is perhaps the most seasoned female executive search and board advisory consultant in our region serving the banking industry. She is dedicated to advancing women into C-Suite and Board positions wherever possible and educating our clients about the true reasons why diversity and inclusion are strategically important and bring value to the bottom line.AwardsThank you to our co-sponsors, Schneider Downs and Pillar+Aught, for their support of this program.DARAJ.KLEINPhiladelphia,PA610firstname.lastname@example.org/in/dara-j-klein-4b16726Dara Kleinis an insightful C-level, Board, and Human Capital advisor, in the financial servicesindustryandgrowthcompanysectors.Sheleveragesherexpertiseinexecutivesearch,Boardand CEO succession advisory, talent and cultural assessment, and business developmentsuccess, to ensure optimal diversified leadership in driving growth, financial strategy andbusinesstransformation.As Managing Director of Kaplan Partners, a boutique retained executive search and advisoryfirm,DaraisknownasaconfidanttoCEOsandforheruniqueandtrustedrelationshipswithBoards of Directors and key executives. Dara is consistently recognized for her on-pointunderstanding of multi-faceted cultures and complex leadership and Board dynamics. Shecombines exceptional listening skills and due diligence, with a thorough understanding ofbusiness strategy, growth expectations and technical requirements, to deliver honest,actionablefeedbackthatconsistentlyresultsinhighlyeffective,culturallyin-syncorganizationalsuccess.Dara serves on the Advisory Council for the Women’s Business Collaborative (WBC). She is anationalspeakeronBoardandCEOsuccessionandHumanCapitalManagement.Herspeakingengagements include, the Pennsylvania Bankers Association, Penn State University, RowanUniversityandSterlingNationalBank.SheisanactivevolunteerwithGettingOutandStayingOut(GOSO)–anonprofit,reentryorganization,helpingformerlyincarceratedyoungmen.Shehas also been recognized by Jewish Relief Agency (JRA) for her long time commitment tosupporting food insecure families in the Greater Philadelphia area. Dara is also a mentor tomenandwomenandthenextgenerationofleadersDarabeganhercareerwithXeroxCorporationwheresheprogressedthroughtheranks,over10years,asregionalsalesexpertforFortune500clientsinfinancialservicesandgovernment.Shethendirectedmarketingcommunicationsandbrandingstrategies,inpartnershipwithtopfinancialinstitutionsforIntegrionFinancialNetwork.Additionally,sheworkedwithastartupbeforejoiningKaplanPartnersin2004.DaraearnedaB.S.inMarketingfromPennsylvaniaStateUniversity.SheisproficientinSpanishandpassionateaboutworkingingrowthorientedanddiverseculturesthatwhopromotetheadvancementofwomenandpeopleofcolor.
40 » PA Bankers Association pabankers.comAwardsThank you to our co-sponsors, Schneider Downs and Pillar+Aught, for their support of this program.CHAMPION FOR WOMEN FINANCIAL INSTITUTION MEMBER FOX SVP, DIVERSITY & INCLUSION OFFICERFIRST COMMONWEALTH BANKNOMINATOR COMMENTS: Vicki’s 40+ year banking career tells a humble yet powerful story of leading countless teams to success… Vicki truly invests in women in the workplace. She is a wise counselor to any who seek or can benefit from her advice. Whether it is a manager or an employee, she listens and provides strong opinions of support and even of ‘tough love.’ Simply put, Vicki makes people better.
PA Bankers Association » Quarter 3, 2021 41AwardsThank you to our co-sponsors, Schneider Downs and Pillar+Aught, for their support of this program.PATRICIA A. HUSIC WOMAN OF INFLUENCEJANE PRESIDENTFIRST COMMONWEALTH BANKNOMINATOR COMMENTS: Jane is directly responsible for all revenue producing lines of business at FCB but is best known and respected by her peer executives, her staff and employees throughout the bank as being a people-first leader, who -- while rarely wrong - is humble, kind and courageous in her leadership style. Jane leads with high integrity, street smarts and the just-right balance of emotional and strategic intelligence across any scope and scale.
42 » PA Bankers Association pabankers.comRELATIONSThe Pennsylvania Bankers Association (PA Bankers), CrossState Credit Union Association (CrossState) and the Pennsylvania Association of Community Bankers (PACB) applauded Governor Tom Wolf for signing HB 859, introduced by Rep. Sheryl Delozier (R-Cumberland) into law as Act 39 of 2021 on June 30. This law - a joint effort between PA Bankers, CrossState, PACB and the PA Department of Banking and Securities (DoBS) – strengthens the state charter and provides for consistent safety and soundness of the banking industry. In the United States, banks and credit unions have a choice in their primary regulator – federal or state – and this choice allows for healthy competition and growth. Financial institutions that are state-chartered have regionally based examiners, through the DoBS, that know the Pennsylvania market and any local issues banks and credit unions may be facing. Each year, state-chartered banks and credit unions pay semi-annual assessments to DoBS, which are then deposited into the Banking Fund to pay for the operations of the department and examination and regulation of state-chartered institutions. If needed, the fund can also be used to liquidate a financially distressed, non-federally insured institution using the fund’s Institution Resolution Restricted Account (IRRA). Over the last two years, two transfers were made from the Banking Fund to the General Fund to supplement the budgets of other governmental agencies. As a result of Act 39 of 2021, future transfers out of the fund are prohibited if the intent of the transfer is unrelated to the regulation of financial institutions and the protection of their customers.PA Bankers, CrossState and PACB thank Representative Sheryl Delozier (R-Cumberland) for her sponsorship of this legislation and Senator Dan Laughlin (R-Erie) for his sponsorship of companion legislation in the Senate. Their tireless advocacy is greatly appreciated. GOVERNOR SIGNS INTO LAW CHANGES TO THE BANK SHARES TAXOn June 30, Governor Wolf signed Act 25 of 2021 into law, which contained changes to the Bank Shares Tax that PA Bankers supported.Because of the way Call Reports combine the bank equity capital and receipts of institutions in the event of a merger, current law imposes the bank shares tax on the combined bank equity capital of both institutions but calculates the apportionment factor on the full year receipts of the surviving institution, plus the receipts of the institution merged into the surviving institution only from the effective date of the merger to the end of the calendar year. As a result, the receipts of the non-surviving institution prior to the date of the merger are disregarded in determining the apportionment. This may result in an apportionment factor for the year of the merger that deviates materially from the apportionment factor based on the combined receipts of both institutions notwithstanding the fact that the law is intended to calculate tax “as if a single institution had been in existence prior to as well as after” the merger. The new act addresses this problem by amending the bank shares tax to provide that “[i[f there is a combination of two or more institutions into one, the total of all items of income that would be reported on the Reports of Condition for the constituent institutions shall be combined as if a single institution had been in existence for the year.”
PA Bankers Association » Quarter 3, 2021 43 TO TITLE 20 There is PA statutory authority to appoint a trust director or protector, but it is antiquated. We are close to a joint recommendation with the PA Joint State Government Commission’s (JSGC) Decedents’ Estates Advisory Committee (DEAC) representatives on directed trusteeship. We next hope to work with the DEAC on the trust decanting issue.PA Bankers continues to monitor the status of a Philadelphia City Council ordinance, introduced by Councilman Derek Green, authorizing the formation of a public bank. In addition, Representative Chris Rabb (D-Philadelphia) has circulated a co-sponsorship memo indicating his intention to introduce state legislation to authorize the formation of a state-run public bank. STATEThe prior PA Treasurer convened a task force that recommended legislation to enact a state-run auto IRA program for employees of private employers who do not offer a retirement program. The current Treasurer has requested to know our views on last session’s bill, so we reconvened our Working Group to make initial recommendations.CRYPTPA Bankers is forming a working group of bankers to engage on this issue and assist in the formation of policy positions.CANNABIS BANKINGThere is interest by some in the Legislature to pursue state legislation to attempt to ease barriers that financial institutions face in offering cannabis banking services. PA Bankers has just begun to review a proposal.C-PACE EXPANSIONPA Bankers has been engaged with proponents of expanding PA’s commercial property assessed clean energy financing programs (C-PACE) through passage of state legislation amending the 2018 statute. PA Bankers has had some concerns with the proposal and recommended changes to it.CINNAIRE.COMTransforming Communities. Transforming Lives.It takes more than good intentions to transform communities. It takes capital, development capacity and trusted partnerships. In 25 years, we’ve delivered more than $7.3 billion in community impact. Overcoming challenges. Solving problems. Backed by a commitment to creating healthy communities that has never wavered.The Return on Investment: Safe, Aordable Homes. Healthy Communities. Better Lives.
44 » PA Bankers Association pabankers.comRELATIONSfter tapering off during the pandemic, the trend of credit unions buying taxpaying community banks is back—and credit unions are becoming more aggressive than ever in their pursuit of acquisition targets. The first half of 2021 has already seen two precedent-shattering deals: Jacksonville, Florida-based VyStar Credit Union’s acquisition of a $1.6 billion Georgia bank—the largest purchase of a bank by a credit union to date—and more recently, Iowa-based Green State Credit Union’s announcement that it would simultaneously acquire not one but two community banks in the Midwest. Acquisitions like these are a bad deal for taxpayers, a bad deal for communities and a bad deal for consumers.At a fundamental level, they erode state and federal tax bases, diverting funds away from important infrastructure projects and other government initiatives. Perhaps even more egregiously, in the case of VyStar—which paid an 80% premium on its acquisition transaction—the firm’s tax-exempt status means that American taxpayers effectively subsidized the purchase. Analysis by the Government Accountability Office shows that credit unions are now serving more middle- and upper-income customers, rather than customers of “small means”—the congressional mandate behind the credit union tax exemption. Rather than focusing on low-to-moderate-income communities that share a common bond, credit unions are increasingly targeting a wealthier client base, marketing wealth management services, luxury goods financing and commercial banking services. This is simply not what credit unions were created to do. Consumers also lose out when credit unions gobble up community banks, given that credit unions are not held to the same rigorous regulatory standards as banks when it comes to consumer protection or community reinvestment. These deals are also bad for the credit union industry itself, as small credit unions are increasingly forced to compete with an expanding cadre of large, growth-oriented firms. Despite all this, credit unions continue to persist in their pursuit of community bank acquisitions, aided and abetted by the National Credit Union Administration, which went so far as to attempt to formally codify this process with a proposed rulemaking last year—a step ABA vigorously opposed. These efforts represent yet another assault on the statutory definition of “credit unions” enshrined in the Federal Credit Union Act that has been going on for years. It’s even been acknowledged at the highest levels of NCUA’s own leadership—one need look no further than former NCUA Chairman Mark McWatters’ warning that the agency he once led has become “inappropriately emboldened” and has allowed the institutions it is charged with supervising creep far beyond their statutory boundaries. It’s time for Congress to step in. Lawmakers must determine whether these types of acquisitions and the negative consequences that follow meet align with the public policy goals Congress intended when it created the credit union tax exemption in the first place. Until they do, the banking industry must continue to push back—as it has in states like Iowa and Colorado, where state regulators have determined that local statutes do not allow credit unions to acquire state-chartered banks. ABA will continue its advocacy against these types of mergers—as we did in a recent letter to the OCC, highlighting the particular threat they pose to the mutual bank business model. We’ll continue to make these arguments loudly and often, because we know that when taxpaying banks are overtaken by tax-exempt credit unions, everyone loses. A Congress Must Stop Credit Union Purchases of Taxpaying Banks ROB NICHOLS, PRESIDENT AND CEO, AMERICAN BANKERS ASSOCIATION
PA Bankers Association » Quarter 3, 2021 45Decrease EnergyCostsReduce EnergyDemandIncreaseSustainability & EfficiencyWhy APPI Energy?APPIEnergy.com112 E. Market Street,Salisbury MD 21801800-520-6685 email@example.comFor 25 years, APPI Energy has been providing clients with a comprehensive way toreduce energy expenses and minimize budgetary risks. Through our data-drivenprocurement services, we negotiate with suppliers to ensure you are provided withideal pricing and contract terms to fit your needs. Our holistic energy services providefinancially and functionally vetted solutions to decrease energy costs, reduce demand, and improve resiliency and sustainability. We are here as a true extension of your team!
46 » PA Bankers Association pabankers.comPA Bankers Association 50 Volume 21.1 | Quarter 1SOMEONE IS MAKING MONEY ON TITLE INSURANCE. IT SHOULD BE YOU.It’s like owning your own title insurance company, only better. PA Bankers Services Corporation – along with Investors Title Insurance Company – will help you become part of a multi-bank owned title insurance agency and share in the proﬁts every time title insurance is written. To learn more, simply give us a call at (717) 255-6925 and we’ll show you how your bank can earn non-interest income from title insurance.RELATIONSife is slowly starting to return to a new normal. We are continuing to help our customers not just survive but also, succeed. We continue to donate money, time and good to local shelters, food banks and nonprofits. As our federal, state and local governments continue to advance economic recovery programs and legislation, we are there - ensuring our customers have the tools they need to recover from the pandemic. We will continue to be at the center of our country’s economic recovery, and we are honored to play a leadership role, with recovery being a high priority for all of us.As legislators make decisions on legislation that directly impacts our banks and our customers, we need to be sure we are supporting candidates who support us. Last year, we participated in 123 races, and 118 of them were successful. That is a 96-percent success rate. PaBPAC will always be thoughtful, deliberate and prudent in its political investments. As a banking PAC, we will continue to follow the mission on which we were founded—supporting candidates who support the banking industry. But we will do so with careful reflection, and we will continue to do so in bipartisan fashion. In 2020, together we raised $406,054.96, which is a remarkable display of industry support and political advocacy. Knowing that 2021 has its own unique challenges, our goal in 2021 is $425,000. This is a roughly 5-percent increase over what we raised in 2020. Contributing to PaBPAC is one way you can be involved in advancing the values of the banking industry. It only takes 3 minutes to write a personal check or to contribute online (go to pabankers.com; click on “Advocacy”; click on “Contribute to PaBPAC”).Please address any contributions and correspondence to: PaBPAC, 3897 N. Front St., Harrisburg, PA 17110. Thank you for your support of PaBPAC. Sincerely, 2021-22 PaBPAC Chairman Regional President M&T Bank Wilkes-Barre, Pa. LIn today’s rapidly changing environment, Schneider Downs’ Risk Advisory practice is well-equipped to shed new light on the risks that ﬁnancial institutions face. To learn more about the services we oer to the ﬁnancial services industry, visit www.schneiderdowns.com.Big thinking about risk management.
PA Bankers Association » Quarter 3, 2021 47PA Bankers Association 50 Volume 21.1 | Quarter 1SOMEONE IS MAKING MONEY ON TITLE INSURANCE. IT SHOULD BE YOU.It’s like owning your own title insurance company, only better. PA Bankers Services Corporation – along with Investors Title Insurance Company – will help you become part of a multi-bank owned title insurance agency and share in the proﬁts every time title insurance is written. To learn more, simply give us a call at (717) 255-6925 and we’ll show you how your bank can earn non-interest income from title insurance.
48 » PA Bankers Association pabankers.comLending & Credit THE HOTEL HERSHEY | HERSHEY, PA 11/18-19 THE PENN STATE CONFERENCE CENTER, STATE COLLEGE, PA.6/12-16a aheadlookAs you plan your training and development for 2021-2022, we hope you'll consider learning with us. Here's a sneak peek at some of the opportunities to learn with PA Bankers this coming year. Visit www.pabankers.com for more information and pricing details about each event.Please note: all dates and locations are subject to change.General Association PA BANKERS 10/29-11/1 2/28 THE PENN STATE CONFERENCE CENTER, STATE COLLEGE, PA.6/12-16 THE PENN STATE CONFERENCE CENTER, STATE COLLEGE, PA.7/24-29
PA Bankers Association » Quarter 3, 2021 49a aheadlookManagement 11/102/2-3 4/6-7 6/8-9/2022 | 9/14-15/2022 | 12/7-8/2022 | 2/1-2/2023
50 » PA Bankers Association pabankers.comNetworks HERSHEY, PA3/13-14/2022 HERSHEY, PA9/26-27/2022a aheadlookWealth Management, Trust & Investment Services HERSHEY, PA10/27-29Technology 11/14-15
PA Bankers Association » Quarter 3, 2021 51 The PA Bankers App keeps you connected with PA Bankers like never before. SEE HOW YOU CAN UTILIZE THE APP BELOW:1DOWNLOAD THE FREE APP IN THE GOOGLE PLAY AND APPLE APP STORES TODAY.Register for events at your fingertips.2Update your personal/business information on the go.3Have all event details in one place (i.e., handouts, evaluations, speaker bios, etc.).4Access the updated PA Bankers calendar at all times.5Connect directly to the association’s social channels and stay up-to-date on association news.6Browse for products and services for your institution.Read paBanker magazine on the go.78 Access resources designed for PA Bankers' members. Receive "Instant Alerts" to stay informed.9Advocate for the industry from any location.103/13-14/2022
52 » PA Bankers Association pabankers.comARTICLEShere are so many ways to violate TRID. Mastering the content requirements (knowing what to put where) is a difficult task for even the most seasoned compliance professional and is the source of numerous violations. Conquering the timing requirements (knowing when to give what) seems to be a much easier assignment but is one that also causes numerous violations. When it comes to what information to include in disclosures, and in which section, there is a lot of gray area, too much, in fact. However, when it comes to when to give the disclosures, the regulations are a lot more black and white.Let’s face it, TRID is difficult. First, even the name is challenging: TRID is an acronym made up of other acronyms. TRID is short for TILA-RESPA Integrated Disclosures. TILA is an acronym for the Truth in Lending Act, and RESPA is an acronym for the Real Estate Settlement Procedures Act. Second, many things related to TRID are conditional: the definition of “application” is very different than most other regulations, there are multiple definitions of “business day,” and the regulations do not even address every common scenario, let alone every conceivable scenario. Third, the requirements are spread out: be sure to check the regulation, the commentary, the published guidance,anyFAQs,andtheoccasional final rule preamble if you want to understand a requirement the best you can.If you’ve read this far, then you should know that the TRID requirements are largely about giving an applicant two “named” disclosures: the Loan Estimate and the Closing Disclosure. The Loan Estimate is a reliable estimate of costs given early in the process to loan applicants in order to allow them to shop around for the best loan. The Closing Disclosure is a precise listing of costs given just before closing to let the applicant know what the confirmed cost of credit is.In order for an extension of credit to be subject to the TRID requirements it must be all of the following: 1) closed-end, 2) made to a consumer, 3) for a consumer purpose, and 4) secured by real property. Once you’ve determined that your extension of credit is subject to the TRID requirements, the clock may have already started.THE LOAN ESTIMATE (CONTENTS: The clock on the TRID timing requirements begin as soon as the bank receives an “application,” which is defined specifically as the submission of the applicant’s name, income, Social Security Number, collateral property address, estimated value of the collateral property and the loan amount requested. Once a bank has received all six pieces of information the clock has started, and the bank is required to send the applicant a copy of the Loan Estimate within three business days. For this purpose, a business day is any day that the bank is open for carrying on substantially all of its business functions. This means some banks will count Saturdays for this window to send the Loan Estimate, and others will not. This is sometimes referred to as the “general definition of business day.” The regulations do not require that the initial Loan Estimate be received by any particular number of business days, so any questions of the receipt of the Loan Estimate are almost always in relation to loan closing.T
PA Bankers Association » Quarter 3, 2021 53The bank is only required to honor the estimates given on the Loan Estimate for ten business days, after which the Loan Estimate expires and if the applicant decides to proceed after expiration it is up to the bank whether to honor the existing estimates or provide an applicant with a new Loan Estimate with new estimated costs. Expiration is determined using the definition of business day that will include Saturday for some banks and will not for others.Occasionally a fee will need to be increased due to the information relied on by the bank when issuing the Loan Estimate being inaccurate. This is referred to as a changed circumstance, change in circumstance or change of circumstance. Regardless of what you call it, when this happens, in order for the bank to pass this increase off to the applicant, the bank must send a revised Loan Estimate within three business days of learning of the increase in the fee, using the definition that will include Saturdays for some banks and will not for other banks.For the purposes of loan closing, any revised Loan Estimate must be received no later than four business days prior to loan closing. This definition of business day includes all calendar days other than Sundays and legal public holidays. This is sometimes called the “specific definition of business day.” However, since this is a receipt requirement and not a sending requirement, it is important to point out that a TRID disclosure is considered to be received three business days after it is sent, using the definition that includes all calendar days other than Sundays and legal public holidays.Before closing a loan, the bank must send the Closing Disclosure to the applicant. The closing disclosure must be received at least three business days prior to loan closing, using the definition that includes all calendar days other than Sundays and legal public holidays.If there is a change to the loan such that the APR becomes inaccurate, there is a prepayment penalty added or there is a change in loan product, the bank is required to provide a revised Closing Disclosure to the applicant, which must be received at least three business days prior to closing, using the definition that includes all calendar days other than Sundays and legal public holidays.After closing a loan, if during the thirty-calendar day period following the loan closing, an event in connection with the loan closing causes the Closing Disclosure to be inaccurate and the inaccuracy results to a change in the amount paid by the consumer, the bank is required to send a copy of the revised Closing Disclosure no later than thirty-calendar days after discovering such inaccuracy.If the bank discovers a non-numeric clerical error within the sixty-calendar day period following the loan closing, the bank is required to send a copy of the revised Closing Disclosure no later than sixty calendar days after loan closing.If the amount paid by the consumer exceeds the amount indicated on the Closing Disclosure, the bank is to provide a refund and a revised Closing Disclosure no later than sixty calendar days after the loan closing.John S. Berteau serves as Associate General Counsel for Compliance Alliance. He has nearly fifteen years of combined experience in the financial services industry. At Hancock Whitney Bank, he worked in the field of environmental risk management and compliance (CERCLA/RCRA/Wetlands). At Alorica, the nation’s fastest-growing BPO, John worked in tandem with some of the largest banks in the U.S., helping to evaluate financial risks. He holds Bachelor’s and Master’s Degrees in History from the University of New Orleans, a Juris Doctorate from Loyola University New Orleans and is a licensed attorney in the State of Louisiana. In addition to being one of our featured authors, John has recently taken over the editor role for C/A’s Access magazine. As a hotline advisor, John helps C/A members with a wide range of regulatory and compliance.
54 » PA Bankers Association pabankers.comby James G. CaliendoPresident & CEO, PWCampbellLet’s face it, we live in a world where appearance matters. There is nothing more iconic than a look – be it a fashion statement or product packaging, designers spend months, sometimes years rening or creating design schemes with one purpose in mind: to sell you. In this cutthroat environment, every consumer matters. So much so that some big companies are willing to throw hundreds of thousands of dollars into design teams and branding rms to give them the competitive edge. From coee shops to brand-name retail, CEOs are investing mega-bucks into gaining your business, and every sale counts.Except for the banking industry. For whatever reason, nancial institutions have a habit of being late to adopt the latest and greatest trends. Whether it be jumping on the technology explosion of the 90’s or the branding booms of the 2000’s, nancial institutions have continued to remain more status quo, despite an ever-changing environment surrounding them. BUT WHY?The reasoning behind the delay to modernize really falls under two dierent verticals. In one regard, modernization bears risk – something none of us want to take on, especially in these times. Updating your branding, modernizing your branches, and reformatting your THE ART OF GROWING YOUR CONSUMER BASEBUILD A BETTERBRANCHJames G. Caliendo is a former bank executive and now President and CEO at the 111 year old design-build and retail services rm. In the past 20 years alone, under Jim’s direction, PWCampbell has worked with over 500 nancial institutions inuencing millions of square feet of retail and operational space to create engaging, impactful and scalable solutions for every sized facility project. Jim is viewed as an industry leader with bankers on the reimagination of their retail delivery services network.ARTICLES
PA Bankers Association » Quarter 3, 2021 55services bear a risk that most put o. The conundrum is that this inability to shift with the times may inevitably lead to downfall. Risk aside, the second vertical focuses on the lack of need to modernize. Since the dawn of time, currency has existed in one form or another. The concept of nancial institutions themselves dates at least as far back as the 10th century with the Knights Templar. There has always been a need for institutions to exist, and much like the concept of supply and demand, when demand is high, the scales tip in favor of the suppliers to set the standard. No one cared if branches were outdated, they just cared that they served their purpose. There was a time where the bigger the structure, the more respect it commanded. Gigantic vaults with marble oors, teller lines that spanned for miles; federal architecture was a right-of-passage, and the more columns that were found in front, the more stable and ocial your institution appeared to be - a true status symbol. Financial institutions had a stronghold on their consumers, and no one, nowhere was going to change that.Cue millennials. With the inux of millennials spanning over a decade, new business practices began to take shape that further dened how we live and work. The “question everything” generation seemed to ip the world upside-down, leaving their mark on everything that they came across. From standard business practices to work attire, suddenly everything was under a microscope, and nothing seemed sacred. Fast-forward to the growth of Gen-Z, and we nd ourselves progressing forward even more so. We are forced to either adapt or be cast aside, made to live out the rest of our days on the Island of Mist Toys. AN OBVIOUS SOLUTIONCurrency is still king, be it digital, physical, or even crypto. We have heard “branches are going to be dead in 5 years” for the past 20 years, but the reality of the situation is that they are not. Where routine transactions have indenitely shifted to online, statistics show consumers still overwhelmingly prefer to conduct complex transactions in-branch and in-person. The branch is not disappearing, it is shifting to cater to a new type of consumer. The problem is that the current footprint of branches is still representative of the transaction-heavy approach of the past. You cannot expect to draw in new clients if you are unable to cater to their wants and needs as a consumer – and with the overall shift to online banking, nding unique ways to maintain (or dare I say increase) your consumer reach is proving to be vital to the success and longevity of your brand. It is true that branches are currently closing at a record pace, and need to be reimagined to stay relevant. The failure to deliver a modern approach to the outdated branch will inevitably cause the demise of nancial institutions around the globe. So how do we extend the lifeline of our brand and branch? We take a page from the playbook of other industries and apply it like a science to our nancial institutions as soon as possible. We stop being stubborn, and we modernize our branches to deliver an experience that the modern consumer craves. But to do that, we need to start thinking outside the box. WHAT CONSUMERS WANTGenerationally speaking, the modern consumer thrives in unique environments that drive experience. They crave the personal and shy away from cookie cutter. They want to be challenged creatively and mentally and seek out opportunities to expand their minds. As I said, these generations question everything – so why do we not challenge them to question the concept of a branch? Start thinking outside the box to deliver a space that draws your consumers in. David Carson, one of the most iconic graphic designers of our time stated “You need someone to pick up your book, to click on your site, to walk across the street and read the ne print. If you’ve done your job as a designer, people will do that.” And
56 » PA Bankers Association pabankers.comthe same holds true for our branches. The point is not only to capture the new family that moved into the area and needs a new branch, it’s also to make people want and need to walk through your doors, whether they intended to bank or not. A SUBCONSCIOUS NEEDHumans are inquisitive by nature, and we need to use that to our advantage. Architectural elements, art, color, textures; are all things that individually may not seem all that attractive – but put them together and they can be an incredibly powerful tool. When we push the boundaries of design, we entice consumers to be inquisitive. To be honest, a typical nancial institution is not all that exciting, and for most consumers, the only time that they would go and visit a branch is if they absolutely need to. That is the perception that needs to change if we want to continue to draw in new consumers to extend the vitality of our brands. We need to do better. Build and design experiences that draw consumers in. Look to upscale night clubs, museums, and modern highend restaurants for inspiration. Luxury hotel lobbies also oer inspirational design for spaces specically focused to draw people in. There is no rule that states that a nancial institution cannot follow high design. WHERE TO STARTIf you agree with this approach, then you are on the right track to providing a solid future for your brand and consumers. However you may not know where to start, and that is understandable. Financial people tend to be left-brained, where creativity stems from your right brain. High design may not be your strong suit, and that is okay – it isn’t supposed to be. The simple answer? Outsource. Look for a full-service design-build rm where branding and construction services fall under one roof, allowing you to mitigate costs and streamline the execution. This allows you to play into their strength of producing a branch that will drive engagement and growth, while oering a state-of-the-art consumer experience - all while you handle the operations of the branch. Bottom line: If you want to build a better branch, stop building a branch; think outside the box and build something spectacular.
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58 » PA Bankers Association pabankers.comARTICLESt the onset of the COVID-19 pandemic in the United States, strict shutdowns and stay-at-home orders created concern for the economy and municipal finances. Forecasts for tax revenue were bleak with anticipated double-digit declines, and many state and local governments braced for a serious financial blow by adjusting budgets, cutting expenses, and delaying non-essential projects. More than a year has passed since the beginning of the pandemic, many governments have published financial statements that include at least a portion of the pandemic, and we now have much more data about how the pandemic has affected municipal credit quality.Interestingly, tax revenues did not fall near as much as expected. Total state tax revenue was down by almost 1% in 2020 versus 2019 according to US Census data, which was much less than originally feared, and half of states actually had an increase in their total tax revenue. Property tax revenue grew by about 4.1% on average, but general sales taxes and special sales taxes declined by 1.6% and 3.5%, respectively. Zillow reports that average home values across the US increased by 13.2% over the past year. So, although property tax trend changes tend to lag economic changes, property tax revenue - the main revenue source for most local governments - may not be negatively affected by the pandemic. The CARES Act in 2020 supported consumer spending, and thereby sales tax revenues, with $290 billion of payments to consumers and $270 billion in expanded unemployment benefits. According to the Bureau of Economic Analysis, transfer payments to individuals were the main reason personal income increased by 6.1% in 2020 despite very high unemployment. The CARES Act further boosted municipal revenues in 2020 by providing $150 billion directly to state and local governments, and the American Rescue Plan (ARP) Act, passed in March 2021, provided another $350 billion to state and local governments, which will help to strengthen municipal credit quality in the 2021 fiscal year as well. Of the $350 billion designated for state and local governments, $195 billion was allocated for states, which is over 30 times the aggregate decline in tax revenue from 2019 to 2020. However, some states may experience greater declines in tax revenue in 2021, given that most of the pandemic occurred during the 2021 fiscal year rather than the 2020 fiscal year. Exhibit 1 breaks down the comparison of 2020 tax revenue changes and ARP Act funding by state for the largest 20 recipients of the ARP funds. 2020 Financial Performance Better Than Expected A
PA Bankers Association » Quarter 3, 2021 59DANA SPARKMAN, CFA, IS SENIOR VICE PRESIDENT/MUNICIPAL ANALYST IN THE BAKER GROUP’S FINANCIAL STRATEGIES GROUP. She manages a municipal credit database that covers more than 150,000 municipal bonds, providing clients with specific credit metrics essential in assessing municipal credit. Dana earned a bachelor’s degree in finance from the University of Central Oklahoma as well as the Chartered Financial Analyst designation. Contact: 405-415-7223, dana@GoBaker.com.Over 90% of transportation bonds, 40% of higher education, and 20% of states had a negative outlook or experienced a downgrade by S&P during 2020, but that trend seems to have reversed so far in 2021. S&P revised the outlooks of general Public Finance sectors such as states, local governments, and school districts from negative to stable in early 2021. Also, during the first five months of 2021, Connecticut was upgraded by S&P; Alaska, New Mexico, Oklahoma, and Illinois all had outlooks revised from negative to stable by S&P; and The Baker Group’s clients experienced 1.6 upgrades for every downgrade in the first five months of 2021 compared to 0.77 upgrades per downgrade in 2020. Despite all this good news about the credit quality of the muni market broadly, some specific issuers did struggle. According to Bloomberg data, there were $2.1 billion of defaults during 2020 (0.05% of the $3.9 trillion municipal market) and an additional $4.5 billion that was considered distressed compared to only $1.4 billion of defaults in 2019 and an additional $1.7 billion that was distressed. Of the 2020 defaults, 53% were issuers in the healthcare industry and 29% were deals related to special development purposes. So far in 2021, over half the defaults are once again in the health care industry. Notably, none of the defaults in 2020 or 2021 were general obligation or essential purpose revenue bonds. The positive news generally seems to outweigh the negative, but investors should not let their guard down yet. General obligation bonds and essential purpose revenue bonds continue to prove resilient, but other types of revenue bonds remain vulnerable.Exhibit 1: American Rescue Plan Funds for States compared to Actual Change in State Revenue from 2019 to 2020
60 » PA Bankers Association pabankers.comBANKERS ALLIANCE*A Family of Bank Compliance ServicesThat Includes Compliance Alliance,Review Alliance andVirtual Compliance OfficerWayne Whipple, (717) firstname.lastname@example.orgPA Bankers Services Corporation Select Vendors Provide Savings, Service and Quality*Vendors provide products and services to both financial institution members and Affiliate Members.ABA INSURANCE SERVICES*Bond, D&O, Cyber Insurance, andEmployment Practices LiabilityPatricia Williams, (216) email@example.comACCUME PARTNERS*Outsourced Internal Auditingand Risk Management ServicesNicole Lloyd, (717) firstname.lastname@example.orgANDERSON GROUP*Integrated Marketing andCommunications andBusiness IntelligenceRay Melcher, (610) email@example.comAPPI ENERGY*Electricity and NaturalGas Procurement Services, UtilitiesManagement PlatformMargo Madden, (667) firstname.lastname@example.org*Merchant Processing, Search EngineOptimization, Website Design and SocialMedia ManagementDanielle Lausch, (717) email@example.comBANZAI!*Interactive, Award-Winning CourseTeaching Students Real-WorldFinance, No Upfront CostJake Finlinson, (214) firstname.lastname@example.orgBITS*Managed Service Provider for Voiceand Data CommunicationChristian Ericson, (973) email@example.comCOMMONWEALTH CHARITABLEMANAGEMENT*Application and Administrationof EITC ProgramsCristine Clayton, (570) firstname.lastname@example.orgTHE BAKER GROUPAsset/Liability ManagementSoftware and ServicesCharles Amis, (405) 415-7231Charlie@gobaker.comBANK HEALTH CARECONSORTIUM OF PA*43 Banks Received Credits inSurplus of Over $16.7 Million in2020 With an AverageNet Funding Increase in Single Digits.Wayne Whipple, (717) email@example.comBANKTALENTHQ*Diversity is Essential -Find Talent in all the Right PlacesWayne Whipple (717) firstname.lastname@example.org
PA Bankers Association » Quarter 3, 2021 61PAYLOCITY*HCM Solutions andEngagement SoftwareLisa DeJoy, (717) email@example.comTHE FULCRUM GROUPINTERNATIONAL, INC.*Reviewing, Re-Negotiating andBidding Check Printing RelationshipTed Amon, (770) firstname.lastname@example.orgNFP EXECUTIVE BENEFITS*BOLI, Executive Compensationand Long-Term CareDavid Shoemaker, CPA/PFS, CFP®(901) email@example.comDEALERTRACK COLLATERALMANAGEMENT SERVICES, INC.Electronic Lien and Title ProgramWayne Whipple, (717) firstname.lastname@example.orgVendor 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.CORNERSTONE ADVISORS*Core, Debit EFT, Card Program, LoanOrigination, Bill Pay, Mobile Banking &ATM Contract NegotiationJennifer Wagner, (480) email@example.comGRADIENT CYBER*Automated CAT Tool & DigitalForensic Investigation, NetworkConsensus CybersecurityChris Warman, (412) firstname.lastname@example.orgNCONTRACTS*Integrated Compliance,Vendor and Risk ManagementMichael Harrison (888) 370-5552Michael.Harrison@ncontracts.comDELUXE CORPORATION*Check ProgramTodd Wroblewski, (724) email@example.comGLOBALVISION SYSTEMS, INC.Anti-Money LaunderingCatherine Lew(818) 998-7851 firstname.lastname@example.orgINVESTORS TITLEINSURANCE COMPANYMulti-Bank Owned TitleInsurance ProgramKaren Barnett, (419) email@example.comTHE KAFAFIAN GROUPPerformance MeasurementRobert E. Kafafian(973) 299-0300 firstname.lastname@example.orgKEYSTATE CAPTIVE MANAGEMENTCaptive Management andInvestment Portfolio ServicesBrian Amend, (302) email@example.comL.R. WEBBER*Multiple Medical, Drug, Dental &Vision Options and EB SolutionsBrad Webber, (814) firstname.lastname@example.orgONE POINT*Outsourced Internal Purchasing, OfficeSupplies, Inventory Control and IPAddress Marketing/SalesPat McMahon, (570) email@example.comPWCAMPBELL*Planning, Design Coordinationand Construction ManagementErin Campbell, (800) firstname.lastname@example.orgCRA PARTNERSReceive High-Yielding CRA CreditTerry B. Rooker, (901) 529-4781terry.rooker@SHCPFoundation.org
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