Return to flip book view
SPRING Featuring: 2025CONVENTIONPreviewPA Bankers
CMYCMMYCYCMYKSnodgrass_Print-Ads_2025_BLEED_Road_V2.pdf 1 2/3/25 11:23 AM
thisISSUEIN EVERY ISSUEFEATURES6 Chairman’s Insights8 From the CEO to the CEO10 Ten on Page Ten12 Community Corner20 Workforce Initiative22 Government Relations24 Recognition Roundup30 A Look Ahead32 Vendor Articles16 Highlights of 202418 2025 Convention Preview33 Chair's ChallengeON THE COVERBRINGING TIMELY NEWS AND INFORMATION TO THE MEMBERSHIP OF THE PA BANKERS1318SPRING Featuring: 2025CONVENTIONPreviewPA Bankers SPRING 2025 PA Bankers Association » 3
aker EventPlease visit The Baker Group website to find more information for each event and how to register.Oklahoma City, OK | Austin, TX | Long Island, NY | Salt Lake City, UT | Springfield, ILwww.GoBaker.com | 800.937.2257 Member: FINRA and SIPC 2025Dates forSeminars and Speaking EventsThe Baker Group continues to use our expertise to share the latest information in a way that’s timely and accessible. We provide numerous educational tools to help empower our clients and the communities they serve. Association Seminars:• Harrisburg, PA – Pennsylvania Bankers Association, April 29Baker Seminars:• Annual Destination Event – Austin, TX – Lost Pines Resort, May 8–9• Wichita, KS – Terradyne Country Club, May 22• West Des Moines, IA – Glen Oaks Country Club, June 17• Ashland, NE – Quarry Oaks Golf Club, June 18• Fargo, ND – Delta Hotels by Marriott, July 15• Stevens Point, WI – SentryWorld Golf Course, July 24• Springfield, IL – Illini Golf and Country Club, August 4Quarterly Conference Calls (Bank Strategies) WebinarsReview of economic conditions, Fed policy outlook, and current investment strategy recommendations. The focus is on building an investment strategy for the next quarter, highlighting the current risk/reward in various investment options, relative value comparisons, yield curve analysis, portfolio trends, and bond analysis.• 1st Quarter – January 8 at 10:30am CT• 2nd Quarter – April 9 at 10:30am CT• 3rd Quarter – July 9 at 10:30am CT• 4th Quarter – October 8 at 10:30am CTALM SchoolsThe Baker Asset/Liability Management School gives attendees the knowledge to better understand the fundamentals of asset/liability management, interest rate risk management, and the ALCO process.• Baker In-Person ALM School – April 24–25 in Oklahoma City, OKThe Baker Group representatives speak at banking schools, seminars, webinars, conventions, and workshops across the country in order to help financial institutions gain insights and education on key topics that are relevant to their respective institutions.Quarterly Interest Rate Risk Management WebinarsReview of the latest topics related to asset/liability management and interest rate risk. Focus is on IRR trends in the banking industry, updated regulatory guidance, modeling recommendations, and Interest Rate Risk Monitor® updates.• 1st Quarter – March 12 at 10:30am CT• 2nd Quarter – June 11 at 10:30am CT• 3rd Quarter – September 10 at 10:30am CT• 4th Quarter – December 10 at 10:30am CTQuarterly Bank Trends WebinarsReview of the most recent balance sheet and earnings trends in the banking industry. Focus is on changes in asset and liability mixes, loan demand, deposit growth, earnings metrics, delinquencies, and cost of funds among other data.• 4th Quarter – February 12 at 10:30am CT• 1st Quarter – May 14 at 10:30am CT• 2nd Quarter – August 13 at 10:30am CT• 3rd Quarter – November 12 at 10:30am CTBond SchoolsBaker Bond School gives new portfolio managers and beginners to fixed income investing the knowledge to better understand the various types of securities available, how to analyze them eectively, and how to use that knowledge to confidently build and manage a high-performance investment portfolio within the framework of the entire balance sheet.• Baker In-Person Bond School – September 18–19 in Oklahoma City, OK
PA Bankers STAFF DIRECTORYGeneral Number (717) 255-6900PA Bankers Association Registrar and Records Coordinator jillametrano@pabankers.com | (717) 255-6927 Legal and Policy Coordinator lbrandt@pabankers.com | (717) 255-6936President & Chief Executive Ocer dcampbell@pabankers.com | (717) 255-6916 Vice President, Professional Development jcatalano@pabankers.com | (717) 255-6939Communications and Government Aairs Coordinator adoyle@pabankers.com | (717) 255-6937 Director, Information Technology cferraro@pabankers.com | (717) 255-6921 Administrative Assistant, Member Engagement & Development mhenry@pabankers.com | (717) 255-6900 Director of Marketing and Communications shocker@pabankers.com | (717) 255-6912 Director, Finance amoshgat@pabankers.com | (717) 255-6938General Counsel lrynd@pabankers.com | (717) 255-6935 Chief Operating Ocer mstaton@pabankers.com | (717) 255-6923 Vice President, Government Relations tward@pabankers.com | (717) 255-6933 Professional Development Assistant mwisniewski@pabankers.com | (717) 255-6934 PA Bankers Services Corporation Director, PA Bankers Services Corporation tchambers@pabankers.com | (717) 255-6928 President, PA Bankers Services Corporation cwallett@pabankers.com | (717) 255-6913 Vice President, Business Development wwhipple@pabankers.com | (717) 255-6925magazineSTAFF Sara E. Hocker J. Duncan Campbell III Jacqueline A. Catalano Tiani A. Chambers Louise A. Rynd Michelle L. Staton Cynthia L. Wallett Timothy P. Ward PA Bankers Services Corporation Board of Directors and Ocers Tracy E. Watkins, SPHR Ginger G. Kunkel Treasurer J. Duncan Campbell III Janak M. Amin Mary G. Cummings, Esq Brett D. Fulk John C. Gill Andrew Linn Brendan J. McGill John H. Montgomery Michael D. Peduzzi Brian J. Richardson Jerey S. Stauer Joseph R. TothAddress Correspondence to: paBanker Magazine c/o Pennsylvania Bankers Association 3897 N. Front St., Harrisburg, PA 17110 Tel. (717) 255-6912 Email: shocker@pabankers.compaBanker Magazine is published four times a year by the PA Bankers Services Corporation (Services Corporation), a subsidiary of the Pennsylvania Bankers Association (PA Bankers). The Association serves Pennsylvania banks and nancial institutions with educational programs, member services and represents members on the state and federal level. Since 1895, PA Bankers continuously worked to be the premier nancial services organization supporting a diversied membership through volunteer participation, a knowledgeable sta, state of the art technology and a commitment to excellence.paBanker Magazine is the ocial publication of PA Bankers.EditorialThe opinions expressed in articles by authors other than Association sta and ocers are the responsibility of the authors only and not necessarily those of the PA Bankers, the Services Corporation or its members. All articles, unless otherwise notied, have been written by paBanker Magazine sta. Questions and comments should be addressed to the Managing Editor. PA Bankers members may reproduce any non-commercial part of this publication with verbal permission from the editor. All others must receive written permission from the editor prior to reproduction of any part of this publication. Copyright ©2003 PA Bankers Services Corporation. All Rights Reserved.Designed by: Hot Frog Print & MediaSponsored by: SPRING 2025 PA Bankers Association » 5
’ve heard from so many of our members that one of the greatest dierentiators of our association is our ability to convene the membership—to bring bankers together to talk through issues of importance to the banking industry and learn from one another. PA Bankers does this in many dierent ways—through professional development training sessions, such as the Lending, Women in Banking, Wealth Management & Trust, and Young Professionals Conferences; residential schools and Leadership Institute; annual convention, that is set this year for May 17-19 in Marco Island, Fla. (I hope to see you all there as we celebrate our great industry!); and advocacy visits, such as the ABA Washington Summit (April 7-9 in Washington, D.C.) and PA Bankers Day at the State Capitol (June 2 in Harrisburg). Coming together as an industry shows that we are bigger than our individual institutions. We are truly “stronger together”. Throughout my time as your chair, I have and will continue to promote the importance of this mindset that our previous chair, Angie Sargent, developed as her signature leadership theme. As I thought through my year as your voice for the association, I wanted to further Angie’s eort by encouraging increased engagement with the association. This would ultimately lead to more industry strength—more advocates from our association advancing pro-banking policy in Harrisburg and Washington, more bankers attending our conferences to get smarter together, and more members beneting from the value of numbers related to our products and services. The idea of the Chair’s Challenge is so that more of our members would become involved with the association. More engagement will lead to more relevance and respect for the industry and the association. And we’ve made it pretty simple for our banks to participate in this eort. It literally costs no money to take a meeting with the Services Corp. sta or the professional development sta to learn about the association’s oerings. And, in doing so, you earn bankers bucks that you can use to send one of your rising stars to the Advanced School of Banking or to the PA Bankers Leadership Institute—programs that your bank may not have utilized in the past due to budget limitations. Let the association give back to you so that you can invest in your people. It’s a win-win for the membership and the association. This is just one way that the member can earn credit for program registrations. We have denitely built-up momentum with this challenge and we want to nish the year strong! To learn more about the challenge, click here. Convening the membership was the purpose behind the C-Suite peer exchanges that PA Bankers hosted in Lancaster, Indiana and Williamsport in the rst quarter of 2025. For those of you who attended one of these meetings, I hope you found them to be of value. I know that I did, and I have heard from many of you that you thought it was a valuable use of your time. It was just great to be together with fellow bankers, celebrating our successes while also talking through our challenges. We had really good conversations, talking about topics ranging from the current economic conditions that we are facing in our markets to the regulatory environment (past, present and future); from workforce and human resources issues to essential training of our employees and directors; from fraud to cybersecurity; and all things in between. I was most pleased to see our bankers taking advantage of the time together to learn from each other, share ideas with one another and just visit with each other in a non-threatening, non-competitive, industry-focused setting. And the food and drink made for a relaxed, informal atmosphere for these discussions. If you were unable to attend one of these meetings, I hope you and your colleagues will join us in the future, as the professional sta plans to host a series of peer exchanges throughout the year. I think this is a great opportunity for us to do what we do best—come together as one team, one industry so that we can further chairman’sINSIGHTSThe Importance of ConveningRANDALL E. BLACKPresident & Chief Executive OfficerFirst Citizens Community BankI6 » PA Bankers Association pabankers.com
chairman’sINSIGHTSSPRING 2025 PA Bankers Association » 7demonstrate that we are stronger together. To this end, I would ask that you please mark your calendars for Sept. 8-9 for our 2nd annual Executive Management Conference, which will take place at The Hotel Hershey. This will be another great opportunity for the association’s members to convene as a statewide industry and benet from each other’s experience and knowledge.It is hard to believe that as of this writing, I’m nine months into my chair year. I have thoroughly enjoyed spending time with many of you through our various meetings and events, and it has been an honor to represent you with policymakers in Washington and Harrisburg. In every meeting, I leave feeling proud of what we do as an industry and how strong we are as a state association. We make a dierence in so many people’s lives, and we do it because it’s the right thing to do. I want to say thank you for all of your eorts in support of your customers and local communities. I rmly believe that great days lie ahead for our industry and our association.Wishing you all my best,
ember engagement is at the heart of all association success. That’s why PA Bankers Chair Randy Black has challenged the membership to become more engaged with the association this year through his Chair’s Challenge initiative. Send a few more people to Harrisburg to advocate for the industry on state legislation—or to Washington for federal policy education. Register more sta from the bank for PA Bankers’ schools and conferences. Take educational meetings with the PA Bankers Services Corporation (Services Corp.) and professional development sta to get smart about our oerings. This association works for you, the membership; however, the strength of our oering comes from the strength of our member engagement. And you’ll get something in return for participating in this challenge—bankers bucks to be credited to your bank’s program registrations, thus driving even more engagement with the association. Please join us in this eort!As a general recap of the 2023-24 PA Bankers year, I’m pleased to report that we experienced increases in our advocacy engagement in 2024. We were engaged in 55 state legislative issues, up from 29 the previous year, and our banker engagement with state legislators and regulators involved 612 bankers attending 73 meetings, which demonstrated a greater than 20-percent increase in banker engagement for this purpose. Similarly, we saw increases in banker engagement with our members of congress and federal regulators. These are positive steps at a time when we have fewer banks in the commonwealth and a need to expand our number of banker advocates.We have seen an increase in our engagement with the general public, as our communications team has done a tremendous job recruiting social media followers (up 561 from 2023) and driving public engagement (more than a 100-percent increase for 2024). This is the future of our communications eort, here today, and so we need to remain committed to the social platform for communicating with the public and our bankers. Follow us on Facebook and LinkedIn and encourage others in your bank to do the same.We had another strong year of school attendance with 253 bankers participating in the School of Banking, School of Commercial Lending and Advanced School of Banking. Already in 2025, we are seeing those numbers improve as the budget challenges of the past few years appear to be softening a bit. Similarly, while our general conference numbers may have stayed steady, we are anticipating growth in this year’s Women in Banking Conference, Executive Management Conference and PA Bankers Annual Convention, among others. Again, with constrained budgets, training has taken some of the brunt, but hopefully this year will see some positive return with stronger attendance at these events.To help our banks with their products/services needs, the Services Corp. is here to provide you with vetted and endorsed vendor items that will render savings for your bank as a result of your membership. Additionally, the Services Corp. has given back to the association through logo licensing, sponsorship, and personnel and facility costs—to the tune of nearly $900,000 in return to PA Bankers this past scal year. This nancial support helps to defray member dues, and so I would certainly encourage you to take a meeting to understand what opportunities are available to your bank—and grab $75 bankers bucks in doing so!I would like to share some exciting news on our workforce and career development eorts. Late in 2024, we joined the PA State System of Higher Education in applying for a state grant to enhance the Career Leadership and Skills Academy that PA Bankers hosts with Shippensburg University. In securing additional funding, we are able to expand the number of universities involved in delivering the academy, to include Commonwealth University, Indiana University of Pennsylvania and Kutztown University. Further, the grant allows us to develop a “careers in banking” website to promote all of the banking career opportunities available to students. More information to from the CEO to the CEODUNCAN CAMPBELLPresident & CEO PA Bankers AssociationMA Look Back At 20248 » PA Bankers Association pabankers.com
come, but I wanted to congratulate PA Bankers Chief Operating Ocer Michelle Staton for all of her hard work with the State System personnel in winning this grant. As our strategic plan outlines, workforce - specically career opportunities in banking - is central to our success as an industry. Please reach out to Michelle, directly, to get more information about the intern program, as we encourage all of our members to register your interns for the Career Leadership and Skills Academy. More information can be found clicking here. As we recap the 2024 year, I’m pleased to say that it has been a positive one. As an association, we are in strong scal health with a committed professional team and a solid membership. We are aware, however, that consolidation of the industry will continue to impact the association’s volunteer base, program numbers and political advocacy eorts. Engagement of the existing membership will be key to our sustainability as I don’t see a wave of de novo activity to account for the merger activity that we anticipate continuing. That’s why Randy’s challenge to the membership, Chair’s Challenge, is so important and timely. This is the members’ association, and we say thank you for understanding and appreciating the environment in which we are operating on your behalf. Wishing you all the best as we continue into 2025. Together, we are making a dierence!Sincerely,from the CEO to the CEOSPRING 2025 PA Bankers Association » 9
tenONpageTENA STATE CONTACT BANKER213The late Speaker of the U.S. House of Representatives Tip O’Neill authored a book by this title. This saying long preceded O’Neill’s career, but he used it to illustrate how elections are won by attention to local issues. Members of the state legislature want to know how financial services issues affect their district, and there is no one better to convey the message than a local banker.The association’s staff lobbyists have never made a loan, opened a deposit account or administered a trust or will. Bankers have and can explain how proposed legislation will impact customers in a legislator’s district as well as the bank itself.There are 253 seats in the Pennsylvania legislature. It is impossible for association staff to develop meaningful relationships with every member. We need bankers who either already know their legislator or are willing to get to know them and maintain personal contact.Legislative issues can arise and move quickly. Although technology has made mass communication easier, there is no replacement for one-to-one communication from a trusted source like a local banker.10 » PA Bankers Association pabankers.com4
SPRING 2025 PA Bankers Association » 111098765Staff lobbyists make every effort to learn as much as possible about issues facing the industry, but only local bankers can point out how a bill could impact voters in a member’s district by citing real life examples.Bankers are extremely generous with their time and resources – sponsoring local youth leagues, volunteering with charities, working with schools and in their houses of worship. Legislators need to know how important banks and bankers are in their districts in order to care about industry issues.Legislators appreciate opportunities to meet their constituents. Becoming a contact banker and inviting your legislator to your bank is a great way to inform them about banking and help your legislator meet constituents they would not otherwise encounter.You might never have met a state legislator, but it’s not too late to form a connection.We encourage every banker to use e-tools, such as the American Bankers Association’s Secure American Opportunity website, to convey industry messages on federal issues, but once bankers engage, they often find that they want to do more, such as attending our PA Bankers Day at the State Capitol, where they meet directly with their legislators. A next step is to sign up as a State Contact Banker.If you sign up to serve as a State Contact Banker, you won’t be alone. The association will host calls and send emails to keep you updated and informed about our legislative issues, so when action is needed, you will be ready.tenONpageTEN
communityCORNER1ST SUMMIT BANKNEW TRIPOLI BANK1ST SUMMIT BANK and its employees raised money for the United Way of the Southern Alleghenies, an organization dedicated to providing support for local programs focused on early childhood development, parental engagement and youth drug & alcohol prevention.John Hayes of New Tripoli Bank taught financial literacy to third grade students at Roberto Clemente Charter Elementary School in Allentown. Topics included how banks function, different types of bank accounts, how to save money, budgeting and scams. Additionally, Michelle Vineburg did a read-along with the class from the CFPB’s Money Monsters book series. The bank also provided the kids with a packet filled with information, activity books and promotional items. DOLLAR BANKDollar Bank’s BSA Compliance team spent their day giving back with Brother’s Brother Foundation, assembling 417 hygiene kits for those in need.12 » PA Bankers Association pabankers.com
ORRSTOWN BANKTHE DIME BANKOrrstown Bank supported the Lancaster Safety Coalition, helping to keep downtown Lancaster safe for businesses and visitors. By operating a vigilant camera system, the coalition assists local law enforcement in maintaining a secure environment and promoting tourism.The Dime Bank announced a $25,000 donation to the United Neighborhood Centers (UNC) of Northeastern Pennsylvania in support of its CEDAR Center project. The contribution underscores The Dime Bank’s dedication to community development and its belief in UNC’s mission to empower individuals and families.KISH BANKKish Bank’s 2024 Kish for the Cure campaign, an annual employee-led fundraising effort supporting local cancer-related nonprofits, raised another record-breaking grand total of over $90,000. The donations were distributed to the campaign’s three beneficiaries: the Bob Perks Cancer Assistance Fund, Pennsylvania Pink Zone and American Cancer Society events in Central PA. communityCORNERSPRING 2025 PA Bankers Association » 13
communityCORNERSELECT VENDORS:• Grudi• Key TaxWelcomeNEW TO PA BANKERSAFFILIATE MEMBERS:• CollabPoint LLC• Neach• PULSE a Discover Co.• WyshDo you have hometown happenings that you'd like to share?Send your bank's community news to Amy Doyle for a chance to be featured in paBanker Magazine or on PA Bankers' social media channels and website.14 » PA Bankers Association pabankers.com
HR Consulting & Human Capital Services Scan to learn more about ouradvisors and services Regulatory Compliance Monitoring + TrainingVulnerability Testing (Internal + External)BSA/AML Model ValidationsBSA/AML ExaminationsRisk Assessment + Gap AnalysisInternal Audit Plans + TestingTrust Department ExamsFraud ExamsInformation Technology ExamsSocial Engineering TestingSOX Documentation/TestingFDICIA Documentation/TestingRecruitment/Retention HR Audits & AssessmentsHR OutsourcingInterim HRSuccession PlanningExecutive SearchExecutive CompensationAffirmative Action Plan PreparationLeadership Coaching and DevelopmentCompensation Studieswww.herbein.com I 610-378-1175Risk Management Services Empower your executive team and confidently navigate the intricate world of bankingand finance with solutions from Herbein’s Risk Management and HR Consulting &Human Capital practices. As a leading CPA advisory firm, we are your trusted partner in fostering businessstability, achieving compliance excellence, and building a workplace that attracts andretains top talent. Let us guide your financial institution through the ever-changingregulatory landscape while helping you cultivate a motivated, high-performingworkforce.A GREAT TEAM SERVING EXTRAORDINARY BANKSQuestions? Contact us today and learn how we can help with your organizational needs. Debbi Fetter, CFIRS, CISA, CFSA, CRMA, CRCM, CCSA, CERP – Partner & Managing Director, Risk Management Laurel Cline – Managing Director, HR Consulting & Human Capital James Burke – Senior Consultant
featureARTICLETOTAL SOCIAL MEDIA FOLLOWERS 8,673 Professional Development2,569253 232502Total Attendees at PA Bankers' Schools, Conferences, Seminars, Webinars, Regional Events and Annual ConventionAttendees at PA Bankers’ schoolsABA trainings takenWebinars taken through OnCourse LearningPA Bankers Intern ProgramPA Bankers and PASSHE were awarded a grant from the PA Department of Labor & Industry to expand the Career and Leadership Skills Academy. This grant will increase the number of interns in the academy from 75 to , as well as add three universities to the schools involved (Commonwealth University, IUP and Kutztown). The grant also includes the creation of the careers in banking website.Government Relations Raised for PaBPAC with of member banks contributing. Reached of 2024’s goal, an ambitious target supported by more than individual contributors. Number of state issues tracked: . advocacy letters from bankers in Pennsylvania to federal policymakersJoined the American Bankers Association and other state bankers associations in preventing enactment of credit card routing mandate legislation “Durbin 2.0” and opposed agency regulatory overreach.Achieved a statutory clarification of the bank shares tax goodwill deductionWorked with PA Bar Association to update the Uniform Commercial Code to reflect digital assetsModernized PA’s Trust Code regarding directed trusts and non-judicial trust terminationHighlightsHighlightsof 202416 » PA Bankers Association pabankers.com
Celebrating Our MembersLast year, we celebrated 11 individuals for their commitment to advocacy, their communities and the industry.NexTier BankWilliam S. Latoff Advocacy AwardBNY MellonFirst Commonwealth BankS&T BankMember)Bridgeway CapitalFulton BankWayne BankBNY MellonAtlantic Community Bankers BankFirst Commonwealth BankFirst Commonwealth BankSPRING 2025 PA Bankers Association » 17
||Experience four days of informative, inspirational and timely educational content, dynamic speakers, community service, networking, ne dining and entertainment during the PA Bankers 2025 Convention. TOPICS2025CONVENTIONPA Bankers Preview – – – – – – – – – – – – featureARTICLE18 » PA Bankers Association pabankers.com
featureARTICLEVisit www.pabankers.com to register today.Questions? Contact: Jackie Catalano jcatalano@pabankers.com | (717) 255-6939.EVERGLADES TOURThursday, May 15 » 8:30 a.m. 4 hours (door to door)/person » 12 years of age and older/person » 11 years of age and younger To reserve your spot and pay, please visit https://nttep.starboardsuite.com/e/half-day-everglades-excursion-marco-island-18235.CALUSA SPIRIT CHARTERFriday, May 16 » 2 p.m. 2.5 hours/person To reserve your spot and pay, please email Chris Mendicino at chris.mendicino@marriott.com.If you plan on joining PA Bankers for one of the optional activities, you must register and submit payment directly through the host vendor's website.OPTIONAL TOURS: Pre-registration is requiredSPRING 2025 PA Bankers Association » 19
workforceDEVELOPMENTcollaboration among universities in Pennsylvania’s State System of Higher Education (PASSHE) and the Pennsylvania Bankers Association (PA Bankers) will double in size this year with additional professional and leadership development opportunities for interns and the creation of a new website designed for all ages to explore the various career opportunities within the banking industry.The PASSHE Foundation was awarded a $250,000 grant from the Pennsylvania Department of Labor & Industry to expand the Career and Leadership Skills Academy from 75 students to 150 students in the summer of 2025.The Career and Leadership Skills Academy is a collaboration between Shippensburg University and PA Bankers that provides 10-week, live online sessions for interns of member banks. Through the program, students build fundamental professional skills in leadership, teamwork, problem-solving, critical thinking, communication and networking.In addition to Shippensburg University, the academy is expanding to include instructors from Commonwealth, Indiana and Kutztown universities.The academy helps students expand their understanding of career opportunities in the banking industry, including roles in banking operations, auditing, human resources, information technology and more.The online sessions are led by experts in early talent career development and tailored to the skills and competencies required by member banks.Academy graduates receive a Credly badge, a digital certicate that can be shared on digital resumes, email signatures, social media and other platforms to verify completion of the training.PA Bankers’ member banks have the opportunity to enroll their summer college interns in this program. Participating students do not need to be enrolled in a PASSHE university.The grant will also fund the development of a careers in banking website outlining the various career opportunities in banking, anticipated salaries, career pathways and future growth opportunities, education and training opportunities PASSHE and PA Bankers Expand Banking Internship and Careers in Banking Exploration Collaborationand current job openings within the commonwealth. The career exploration tool will be designed for all ages – high school students, college students or adults looking to advance their careers or switch from a dierent industry altogether.The banking careers tool will be available to high schools, colleges, as well as local workforce investment boards across the commonwealth to provide assistance to students and adults looking for a career.Interested in learning more? Visit our website for more information.A20 » PA Bankers Association pabankers.com
PA BANKERS SERVICES CORPORATIONWayne WhippleVice President, Business Development(717) 255-6925wwhipple@pabankers.comCONTACT INFORMATIONWEBBER ADVISORSBrad WebberMarketing/Sales Manager(814) 695-8066 x4186bwebber@webberadvisors.comTHE BENECON GROUPClaudia Burchstead, CSFSRegional VP of Sales(888) 400-4647cburchstead@benecon.com
governmentRELATIONSver the last four years, the banking industry has battled an onslaught of new rules and regulatory changes that have threatened to fundamentally alter how nancial institutions in this country operate. Regulators have taken a de facto “one-size-ts-all” approach to rulemaking — ignoring the diversity of bank sizes, charters and business models within the banking sector, as well as the undeniable trickle-down eects of regulations that are, on paper, only targeted toward larger institutions. For whatever reason, they have also chosen to pursue rulemakings more tied to the past than the present. It’s time to stop ghting the last war and stay focused on the present and the future. ABA and the state associations have stepped up on behalf of our members, challenging misguided nal rules in court wherever warranted and pushing back with facts and data to stop faulty assumptions from underpinning major regulatory changes and bogus claims about our industry from spreading. We’ve had some notable successes over the last four years, but it hasn't been easy. As we welcome 2025, a new presidential administration and a new Congress, it’s time to reset the conversation around banking regulation. That eort began right after the election during the transition, as ABA worked to communicate our priorities to the incoming Trump administration. With leadership changeovers anticipated at the regulatory agencies following the inauguration — including at the FDIC, OCC and CFPB — we expect to have the opportunity to share our perspective with the new players and help refocus the conversation around rightsizing the supervision and regulation of the banking sector. But while we can expect some of the new regulators to pause some proposed rulemakings altogether, and Congress could use the Congressional Review Act to undo some of the most recent regulatory proposals, it’s important to remember that the new administration and new Congress will not wield a magic wand.Undoing policy changes in a durable way can take just as long as putting new regulations into place, since the Administrative Procedure Act and its notice and comment procedures apply. As we have noted in our many active lawsuits, regulators have frequently outed the APA in recent years, and partisan agendas have too often driven a rulemaking process that is supposed to be even-handed and fact-based. We have the opportunity now to get it right — by following a transparent process and by working constructively to engage policymakers of both parties in crafting commonsense regulations that ensure our banking sector remains safe, sound and well-capitalized. That’s how we bring about meaningful, long-lasting change.At ABA, we are ready to roll up our sleeves and get to work, together with our state alliance partners — and we need your help. We need every banker in this country to stay engaged on the issues that matter. Reach out to your members of Congress, particularly in states where freshmen lawmakers are taking oce. Get to know your representatives, invite them to your bank and introduce them to your customers and your employees. Help them to understand not just the important work banks do each day, but the ripple eect that the provision of credit can have in our cities, towns and neighborhoods. Finally, I invite every banker in this country to join us in Washington, D.C. April 7-9 for the 2025 ABA Washington Summit. This year’s annual gathering of bank leaders will be critically important in making sure we have a policy environment that will unleash economic growth and allow banks to serve their customers and communities. We need all of you there to make sure our industry’s voice is heard loud and clear. It’s Time for a Regulatory ResetOABOUT THE AUTHOR: Email Rob at nichols@aba.com. 22 » PA Bankers Association pabankers.com
State Legislative UpdategovernmentRELATIONSPennsylvania’s General Assembly was sworn into oce for the 2025-26 legislative session on Jan. 7. Committees have been appointed and reorganized. PA Bankers’ State Government Relations Policy Committee has reorganized for the 2025-26 session and has met twice so far this year to review recommendations from its Advisory Committees and determine the association’s policy positions and priorities on nancial services issues.Governor Shapiro gave his budget address to a joint session of the legislature on Feb. 4. The Administration’s budget includes numerous proposals such as increased funding for education and mass transit, taxing games of skill and legalizing recreational cannabis. In addition, he proposed eliminating the bank shares, mutual thrift institution and private bank taxes and taxing banks and thrifts under the corporate net income tax instead. He also proposed accelerating the previous reduction in the corporate net income tax rate to 4.99 percent by 2029 and incorporating combined reporting. PA Bankers’ Tax-Financial Institution Advisory and Policy Committees are deeply engaged in analyzing the impact of this proposed tax change. The legislature is in recess until mid-March.We are pleased to announce that Tim Ward joined the association as vice president, government relations in late January. Tim most recently served as the director of advocacy and government relations for the Pennsylvania Health Care Association and as chief of sta to former State Representative Todd Stephens. Tim brings with him strong policy experience and solid relationships with members and sta in both chambers and on both sides of the political aisle.Please feel free to contact Tim at tward@pabankers.com, (717) 255-6933 (oce) or (215) 350-9487 (mobile). Thank you for joining us in welcoming Tim to the association.Staff UpdatesSPRING 2025 PA Bankers Association » 23SIMPLE. INTEGRATED. PROFITABLE.AMA- ExcellentBEST40SARYEUSABASEDMODERN PROTECTION FOR TODAY'S BORROWER. SIMPLE FOR YOU.For PA Bankers members, Plateau's tailored Credit Enhancement and Debt Protection solutions are designed for today's lending landscape providing ecient, time-tested programs that seamlessly integrate into your portfolio, adding to your bottom line. Benefit from our decades of experience, financial strength, and unwavering commitment to your success.+
recognitionROUND-UPThe Patricia A. Husic Woman of Influence AwardSusie was celebrated as a change agent who has achieved success within a leadership role and displays qualities of courage, values and ethics. She demonstrates undeniable enthusiasm for the industry, her institution and the community in which she lives and works.Cgrulis2025 Women in Banking Recognition of Excellence Awards!The Women in Banking Recognition of Excellence Program acknowledges rising stars and leaders who continually "go the extra mile" to promote and inspire women to reach their full potential within the banking industry, their nancial institutions and their communities.24 » PA Bankers Association pabankers.com
Tomorrow’s Promise AwardAngeline was recognized as a woman, aged 35 or younger, who continues to make a signicant impact in the banking eld and her community, making her "one to watch" in Pennsylvani's banking industry.Jessica, Jim and Cindy were recognized as seasoned professionals who, through personal commitment, application and dedication, are invested in the success of others and foster growth to ensure women maximize their potential.recognitionROUND-UPThe Women in Banking Recognition of Excellence Program is spearheaded by the association’s Women in Banking Network, which provides hundreds of women with opportunities for professional development, networking, mentorship, recognition, advocacy, nancial literacy and volunteerism within their institution, the association and the industry. The 2025 Women in Banking Recognition of Excellence Program is sponsored by Schneider Downs & Co., Inc., and the winners will be honored at the association’s Women in Banking Conference in March.SPRING 2025 PA Bankers Association » 25Champion for Women Award(Aliate Member)Champion for Women Award(Financial Institution Member)
recognitionROUND-UPSenior VP - Commercial LendingSomerset Trust CompanyCgratulatisIs your bank celebrating a charter anniversary? Have your employees been in the banking industry for 30+ years?RECOGNITION ROUND-UP26 » PA Bankers Association pabankers.com50-YEAR CLUBINDUCTEESr. VP - Director of Marketing Serv.FNB40-YEAR CLUBINDUCTEE
recognitionROUND-UPSPRING 2025 PA Bankers Association » 27Newly published by Past Chair Tom Petro, “AI in the Boardroom” is a book for every corporate leader on their journey to mastering AI governance. The book provides an essential guide to the 12 foundational AI techniques, insight into why most companies are not AI-ready, a comprehensive AI governance framework and real-world use cases. This is a must-read for directors, C-suite executives and governance leaders committed to unlocking AI’s potential. AI in the BoardroomPurchase Book HereACCESS COLLABORATIVE LENDING SOLUTIONS: Expand Your Loan and Lease Oerings for Ag & Forestry ClientsAgri-Access specializes in secondary market financing for agriculture, aquaculture, forest products and rural land, providing capital for community banks across the nation.Visit our website at agri-access.comMatthew SenterVice President – Lender RelationsPhone: 507-810-0837matthew.senter@agri-access.com
recognitionROUND-UP28 » PA Bankers Association pabankers.com
PA 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.PA 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.PA 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.
DIRECTORS INSTITUTEHershey Country Club, Hershey, Pa.EXECUTIVE MANAGEMENT CONFERENCEThe Hotel Hershey, Hershey, Pa.june 17sept. 8-9AGRICULTURAL BANKERS CONFERENCEPenn Stater Conference Center, State College, Pa.SCHOOL OF CONSUMER LENDINGPA Bankers Training Room, Harrisburg, Pa.AMERICAN MORTGAGE CONFERENCEFrancis Marion Hotel, Charleston, S.C.SCHOOL OF COMMERCIAL LENDINGPenn Stater Conference Center, State College, Pa.LENDING CONFERENCEThe Hotel Hershey, Hershey, Pa.april 23-24may 6-7may 13-14june 8-12nov. 20-21LENDING & CREDITLEADERSHIPa aheadlook Please note: all dates and locations are subject to change. This includes changing in-person events to virtual oerings.30 » PA Bankers Association pabankers.com
YOUNG PROFESSIONALS CONFERENCEHershey Lodge & Convention Center, Hershey, Pa.april 9-10sept. 23-24SCHOOL OF COMPLIANCE PA Bankers Training Room, Harrisburg, Pa.april 1-3COMPLIANCE, REGULATORY & RISK MANAGEMENTDIVERSITY, EQUITY & INCLUSIONYOUNG PROFESSIONALSWEALTH MANAGEMENT & TRUST CONFERENCE & EXHIBITIONThe Hotel Hershey, Hershey, Pa.SCHOOL OF BANKINGPenn Stater Conference Center, State College, Pa.june 8-12oct. 5-7ADVANCED SCHOOL OF BANKINGPenn Stater Conference Center, State College, Pa.july 20-25GENERAL ASSOCIATIONWEALTH MANAGEMENT, TRUST & INVESTMENT SERVICESASSET/LIABILITY MANAGEMENT & INVESTMENT SEMINARPA Bankers Training Room, Harrisburg, Pa.april 29SPRING 2025 PA Bankers Association » 31INCLUSIVE BANKING CONFERENCEHershey Lodge & Convention Center, Hershey, Pa.BANK TECHNOLOGY CONFERENCEPA Bankers Training Room, Harrisburg, Pa.april 22TECHNOLOGY
vendorARTICLESHow to Accomodate Your Ag Borrower's Liquidity Needs in Anticipation of Tighter Marginshough not every commodity is under pressure this year, many producers, farmers, and other agricultural stakeholders are likely to experience tighter margins. As a result, they’ll lean on their nancial partners to understand their options for restoring working capital. When commodity prices decline, it’s natural for producers to feel uncertain about what lies ahead. They’ll ask their banks and nancial partners: What liquidity options do I have? What options are there regarding interest rates? Will they go down in six months, or does a long-term xed rate make sense? If a producer is considering putting working capital toward long-term assets but interest rates may go down, a long-term xed rate likely isn’t the best path forward—but what other options do they have? Banks are on the hook to not only guide their ag clients in the right direction, but also to provide more options to them so they can eectively navigate the year(s) ahead, ideally with less stress. Delivering more – and better – options to their clients puts pressure on banks themselves as well. They’re juggling various moving pieces and assessing their balance sheets. The deposit game, in particular, has changed since the pandemic and impacted the way banks approach liquidity: Deposits are very uid today, meaning they move in and out of banks more frequently, making it dicult for banks to manage their balance sheets. We saw this happen with the Silicon Valley Bank crash when its primary depositors in the tech startup market pulled their deposits due to rising ination rates. ABOUT THE AUTHOR: Matthew Senter is the Agri-Access Relationship Manager serving nancial institutions in the Northeastern and Mid-Atlantic regions of the U.S. He has been working in direct and secondary market agricultural lending for over 29 years, involved with natural resource sectors nationwide including agriculture, forest products, aquaculture and commercial shing. Matthew has served in leadership roles focused on credit underwriting, transaction documentation, relationship management and capital markets. He is based in Middlebury, Vermont and can be reached at matthew.senter@agri-access.com. Deposits are shrinking due to years of ination and because clients increasingly consider alternatives to banks; as a result, banks feel less secure and are starting to consider new ways for preserving liquidity. The pressure their ag clients feel, compounded by changes to deposit size and management, means banks are looking into other channels and partners that will allow them to be more agile in how they service clients and conservative in how they allocate capital. Agri-Access is a secondary market partner that checks all the boxes banks are looking for today: a wider variety of products that their clients are requesting (with long-term xed rates and additional interest rate options) and another source for capital. Ag clients are asking their nancial partners for ways to have more working capital going into 2025 as they anticipate tighter margins. Agri-Access oers participation loans with long-term rates to reduce the banks’ risk while catering to their client’s cash-ow needs. Using the secondary market provides more opportunities for banks to solve their own liquidity challenges, too. Essentially, banks can ooad loans to Agri-Access, which assumes the credit and liquidity risk of the loan while the bank continues to service the client and feels better equipped to accommodate changes within the ag market. When banks work with secondary market partners like Agri-Access, they can better serve their clients while expanding their lending power—it’s that simple.T32 » PA Bankers Association pabankers.com
CHAIR RANDY BLACK CHALLENGES YOU TO INCREASE YOUR ENGAGEMENT WITH THE ASSOCIATION ; ; ; ; ; ; ; Learn More
vendorARTICLEShile some believe that duciary trust services and wealth management services are often thought to overlap, they are based on distinct dierences and serve dierent purposes. To elaborate, wealth management services are designed to address a client’s all-encompassing nancial health, including aspects such as retirement planning, tax ecient strategies, asset allocation, risk management, and investment advice. It targets nancial growth and preservation of wealth over the long term while adapting to the client's changing nancial needs. On the other hand, duciary trust services are much narrower in focus, concentrating on asset management and placement within a legal trust. Fiduciary trust services are tailored to safeguard assets, maintain the integrity of the trust, and ensure that the intent of the grantor is fullled with a clear focus on long-term responsibility. Trust management ensures that the assets are adequately administered, the terms of the trust are adhered to, and the distribution to beneciaries occurs as intended. While wealth management addresses a wider more complex scope of nancial planning, duciary trust services are more of a specialized mechanism within that broader framework. A large Financial Institution (FI) may establish a wealth management group consisting of several interlocking divisions, branches, subsidiaries, and aliates that provide a broad range of tailored nancial products and services on a greater scale. A small FI, such as a community bank, may simply operate a separate “Trust” division or department that provides traditional duciary services and may also provide access to retail brokerage services through an aliated or unaliated third-party rm located within the bank’s branch network.Let’s take a closer look at the basic principles of each to clarify the dierences: A duciary is legally obligated to act in the best interests of their client. This means prioritizing the client’s needs over their own, avoiding conicts of interest, and ensuring all decisions are made with the utmost care and diligence. Fiduciary duty is a legal standard. For example, trustees, executors, and advisors in duciary roles are legally bound to act in a way that benets the trust or the individual they serve.Understanding dierences between Fiduciary Trust Services and Wealth Management Services Fiduciaries are often involved in managing assets that are held in trust, with a focus on preserving and growing the assets for the beneciaries over a lengthy period. Given the legal responsibilities and duty to protect the client’s interests, duciary trust services tend to take a more conservative approach to investing and asset management. Services are more holistic in nature, often encompassing not just investment management, but also tax planning, estate planning, retirement planning, and even lifestyle management. Wealth managers typically focus on understanding the client’s overall nancial situation and goals, tailoring solutions to help clients achieve those objectives. While wealth managers can be duciaries, they do not always operate under the same strict legal framework as duciaries. Services often emphasize investment management, with the goal of maximizing returns based on the client’s risk tolerance and nancial objectives. Wealth managers often provide a range of services beyond investment, such as business succession planning, philanthropic strategies, and asset protection strategies. Fiduciary trust services have a legal obligation to always act in the client’s best interest, while wealth management services may not always operate under the same legal obligation. Fiduciary services focus more narrowly on managing assets with a primary duty to preserve and grow the client’s assets, whereas wealth management involves broader, more personalized nancial planning. Fiduciaries are generally more conservative in their investment strategies because of the legal responsibility to protect and preserve trust assets. Wealth managers may adopt a more dynamic and exible approach depending on the client’s goals and risk tolerance.34 » PA Bankers Association pabankers.com
While both duciary trust services and wealth management services aim to grow and protect wealth, their focus and legal obligations dierentiate the two. Fiduciary trust services are more narrowly focused on a legal duty to act in the client’s best interests, whereas wealth management oers a broader set of nancial services, potentially without the same level of duciary obligation.Fiduciary trust services may include: Investment management for trusts and estates and for charitable trust services. Tax reporting, trust structuring and documentation, and record-keeping. Guardian and conservatorship services. Corporate trust services. Fiduciary advice and guidance, as well as asset protection strategies. Trustee services (acting as trustee for individuals or organizations). Distribution of assets in accordance with the trust document or estate plan. Handling complex estate planning.Wealth management services are designed to address the customers’ nancial needs that come with substantial wealth. These services are often strategically customized to help ensure that each aspect of the customer’s nancial situation is addressed in an integrated way. The key components may include: (tailored savings accounts, premium credit cards, and specialized loan products). (Estate Planning, Trust Administration, and Fiduciary Services). (investment advice, asset allocation, and alternative investments strategies). Fiduciary and wealth management activities are highly regulated. Therefore, it is essential to establish a comprehensive compliance framework that can help mitigate risks related to conicts of interest, self-dealing, and other unethical practices. When developing an eective compliance framework, several key elements and considerations must be incorporated to ensure adherence to regulatory standards and foster ethical practices. Here are some key components: Establish oversight committees to monitor duciary activities and ensure compliance with all regulatory and ethical guidelines. Designate compliance ocers who are responsible for enforcing compliance policies and procedures and ensuring ongoing sta training. Develop and communicate a code of ethics that outlines the duciary responsibilities, emphasizing the duty to act in clients' best interests. Identify potential conicts and establish processes for disclosure, management, and mitigation of conicts. Ensure that employees understand their duty to avoid self-dealing or transactions that benet themselves at the expense of clients. Policies should mandate full disclosure of any potential conicts of interest, so clients are aware of any situation where the bank or its employees may have competing interests. This transparency helps maintain trust and accountability. Clearly communicate all fees, costs, and compensation arrangements. Ensure clients are aware of how fees vendorARTICLESSPRING 2025 PA Bankers Association » 35Energy Management &Sustainability SolutionsAccelerate Your Sustainable EnergyTransformationOUR SERVICES INCLUDE:Energy Procurement: Electricity, NaturalGas and Green PowerESG ReportingCarbon AccountingGreen House Gas Inventories andReduction StrategiesEfficiency Upgrades and MoreLet’s Connect!PABankers@environenergy.com
are structured, including any performance-based fees, commissions, or compensation arrangements that could create conicts of interest. Disclose any business relationships or nancial interests that could inuence the advice provided to clients. Regular training for employees and advisers on duciary duties, ethical practices, regulatory updates, and how to handle conicts of interest. A FI’s employees should be well-trained on compliance policies, ethical standards, and legal obligations. Clear communication about ethical behavior and conicts of interest help prevent breaches of trust and unethical behavior. Eective internal controls are critical to mitigating risks. This includes ensuring compliance with regulations and conducting regular audits. Implement procedures for identifying and managing nancial and reputational risks related to unethical behavior, fraud, and non-compliance. Regularly review and assess internal controls and risk management procedures, adjusting them to reect new regulations or emerging risks. Establishing physical and operational rewalls between departments (e.g., trading, research, and compliance) can prevent the improper sharing of sensitive information that might inuence decision-making in favor of the bank rather than the client. Establish regular audit mechanisms to ensure adherence to policies and procedures. Regular audits and assessments by independent parties (like internal or external auditors) can help ensure compliance with the policies and reveal any instances where conicts of interest may arise. Implement automated systems for tracking transactions, conicts, and compliance breaches. Set up a whistleblower policy and condential reporting channels to allow employees to report unethical behavior without fear of retaliation. Implement a robust process for conducting due diligence on external partners, custodians, or other service providers to ensure they also comply with duciary standards and regulations. Establish written agreements with third parties that clearly outline their duciary responsibilities and compliance obligations. Having a team of knowledgeable professionals may be important in navigating the complex landscape of regulations governing investment management, such as securities laws, anti-money laundering (AML) regulations, and duciary responsibilities. Stay updated on local and international laws and regulations. Ensure that compliance eorts evolve as new regulatory changes or industry standards emerge. Maintain transparency and accuracy in reporting client portfolio performance, avoiding misleading statements or omissions that could mislead clients. Provide regular, detailed updates on portfolio performance, any changes in strategy, and associated risks. Cultivate an organizational culture that prioritizes integrity, client interests, and ethical conduct at all levels. Encourage ethical decision-making and accountability in all sta. The FI needs to ensure that compensation structures for nancial advisors (including bonuses or performance incentives) are aligned with client outcomes. Tying these together rather than simply the bank's nancial performance can reduce the temptation to prioritize bank interests.An eective compliance program must be dynamic and proactive in addressing potential risks and ensuring adherence to relevant laws and regulations. It should include a robust framework for monitoring activities, detecting potential violations, and addressing issues promptly. This involves internal audits, regular risk assessments, and a clear process for reporting and resolving compliance issues.Non-compliance with legal standards can have far-reaching consequences for the FIs, including regulatory sanctions, civil and criminal penalties, and damage to the FI's reputation. vendorARTICLESABOUT THE AUTHOR: 36 » PA Bankers Association pabankers.com
SPRING 2025 PA Bankers Association » 37We’re Mobile! The PA Bankers App keeps you connected with PA Bankers like never before. SEE HOW YOU CAN UTILIZE THE APP BELOW:1DOWNLOAD THE FREE APP IN THE GOOGLE PLAY AND APPLE APP STORES TODAY.2345678910
vendorARTICLESontinued adoption of open banking, enhanced cybersecurity and evolving regulatory concerns shape what nancial institutions must consider when developing their strategies. However, these areas also represent a tremendous opportunity for those who adapt.CSI’s Banking Priorities Survey—which asked a cross section community bankers nationwide about their strategies and priorities for 2025—explored both, taking the industry’s pulse and plans for the year.Although we’ve made advances in cybersecurity monitoring technology, cyberattacks continue making headlines and concern institutions of all sizes. The average cost of a data breach rose from $5.9 million in 2023 to $6.08 million in 2024. A successful cyberattack can also expose an institution to reputational and legal consequences. For all these reasons, paired with regulatory scrutiny, 28% listed cybersecurity/data privacy as the most pressing issue, surpassing all other concerns.To stay ahead of cyber threats, institutions need around-the-clock monitoring and response. A managed cybersecurity monitoring platform helps institutions identify anomalies and send alerts for investigation to ensure the threat doesn’t spread. Solutions like data loss prevention (DLP) help institutions protect their data and control how it’s shared. Implementing cyber hygiene is another eective strategy to improve security and keep employees and consumers safe.Interest rates surged in 2022 and 2023, due to the Federal Reserve’s eorts to curb ination, creating a challenging environment for community banks. Bankers’ concern for interest rates has lowered since 2023, potentially due to stabilizing rates and anticipated future rate changes from the Fed. Nevertheless, it ranked second highest on their list of concerns.This economic uncertainty is prompting a prioritization of digital account opening and related technologies, emphasizing gaining new accounts and low-interest deposits. Institutions should also evaluate opportunities within their existing market and portfolio. Diversifying portfolios through resources like lending marketplaces is another avenue institutions are exploring to weather the eect of high interest rates.2025’s Top Challenges and Opportunities for Community BanksFinancial institutions are doubling down on digital-rst technology investments to meet the evolving needs of a convenience-driven, tech-savvy clientele.At the forefront of technology investments lies eciency drivers like automation or AI, with 43% of bankers acknowledging its importance. Most banks are seeking eciencies in back-oce processes, with some beginning to utilize AI and automation to remove manual steps and add new functionality.The rise of generative AI tools, which we discuss further below, oers the potential for heightened eciency in the banking sector. Automation enables banks to streamline processes, improve customer interactions, and strengthen fraud detection.Garnering 42% of the vote, data analytics and reporting are transforming banking and customer experience. Data analytics and reporting provide banks with insight to understand customer behavior and identify areas to better serve them, including customizing oerings and promoting them via the digital experience. Using data analytics and reporting to personalize throughout the digital experience is the core of digital engagement. To improve digital engagement, banks should strive to provide unique solutions to best serve customers and increase the adoption of those services. The more personalization banks build into their products and experiences, the more they will drive engagement, adoption and loyalty. Bankers are strategically engaging with consumers and embracing transformative trends that promise to redene banking operations and customer service in the years to come.33% of bankers surveyed named AI 2025’s top technology trend. Generative AI applications, for example, promise hyper-personalized, around-the-clock service. If deployed well, this could enable community banks to level the playing 38 » PA Bankers Association pabankers.com
eld. From virtual assistants to content creation tools, the applications of generative AI are vast, oering banks newfound agility and eciency in meeting customer needs.By embracing these deep learning technologies, institutions can position themselves as leaders in innovation and customer-centricity, driving sustained growth and protability in an ever-evolving landscape. However, time will tell how regulations and successful use cases permeate the industry.As fraud continues to skyrocket, 17% of bankers selected real-time fraud detection as the top technology trend poised to aect the industry in 2025. FTC data showed consumers reported fraud losses totaling more than $10 billion in 2023, particularly in areas like check fraud.ABOUT THE AUTHOR: Allison Maddock serves as senior vice president and chief product ocer, a role in which she leads CSI’s product management team to deliver solutions aligned with CSI’s vision and strategy. As a member of the executive leadership team, she uses her product management, strategy, operations and technology expertise to advance CSI’s products and services.Real-time fraud detection presents a valuable opportunity for community banks in 2025.From synthetic identity fraud to check fraud, AI-powered solutions that analyze copious amounts of data stand to help institutions ght these evolving threats. Institutions should inform customers about these evolving fraud tactics. From digital banking to AI and open banking, bankers are strategically engaging consumers and capitalizing on emerging trends, demonstrating measured condence in navigating the ever-changing nancial landscape.This article only scratches the surface of their planned investments. See a more complete picture in the 2025 Banking Priorities Executive Report.SPRING 2025 PA Bankers Association » 39vendorARTICLES
vendorARTICLESach new year brings an opportunity to reset, refresh, and reengage. As industry leaders, it's a tting time to contemplate what lies ahead and how to navigate the inevitable uncertainties. Here are ve key elements of executive leadership to keep in mind and continue rening in the year ahead.Banks, by nature, are plan-oriented. Since the earliest days of modern economics, banks have endeavored to plan for the future to protect their business and safeguard their customers. However, the pace of change has never been more rapid, and eective bank leaders benet from the ability to peer around the corner and see what lies ahead. Crafting strategies for growth while safeguarding the institution can sometimes be a tricky balancing act. A failure to plan and construct alternatives based on ever-changing conditions is not a recipe for success. Successful bank leaders always keep one eye on the windshield and not just on the regulatory-driven rearview mirror.Much has been written recently about the need for bank leaders to be agile. This diers from being strategic and a planner. A strategic mindset provides a framework for how and where the bank is heading or which direction to move toward when circumstances change. Agility is the ability to implement changes in plans or strategic direction eectively. Developing a mindset that fosters adaptability among yourself and your executive team is a hallmark of successful modern-day leaders.You can almost always recognize an authentic leader when you meet one. These are the executives who mean what they say and do as they promise, rather than saying one thing and acting dierently. Highly authentic leaders typically possess a high level of emotional intelligence—the ability to be signicantly self-aware and moderate themselves situationally as needed. Authentic leaders can create a higher degree of followership, which directly relates to their ability to be agile in pursuing good plan execution.I’ve always believed that one cannot over-communicate, whether in personal dealings or business life. Too often, leaders fail to be open and transparent about what is happening within the institution or where the bank is heading. The lack of well-crafted internal and external communication plans makes it harder for employees to align with the strategy and changes ahead. It is challenging to create strong followership as a leader when people do not know where the company is going and how they t in.My favorite expression, of course. None of the above can truly be enhanced without a strong group of executive leaders, overseen by a highly capable CEO. The highest-performing banks we observe typically have a culture that employees can feel, led by individuals who embody the bank’s values and engender followership. A CEO who prioritizes attracting, retaining, and developing superior talent is best positioned to grapple with inevitable changes in strategy and evolving external and market factors. The need to pivot will arise yet again. The successful leader at the top of the organization must fully embrace the need for authentic and highly communicative leadership for the institution to thrive and grow. Anything less may put the future of the bank at risk.ABOUT THE AUTHOR: Alan J. Kaplan is the Founder and CEO of Kaplan Partners, a 31-year-old Philadelphia-based retained executive search and board advisory rm. You can reach Alan at 610-642-5644 or alan@KaplanPartners.com.E40 » PA Bankers Association pabankers.com
he FFIEC Cybersecurity Assessment Tool (CAT) has been a critical resource for nancial institutions to assess their cybersecurity preparedness. However, with the upcoming phase-out of the CAT on August 31, 2025, nancial institutions must prepare to adopt a new framework to maintain eective cybersecurity risk management. In this article, we’ll review the intentions of the CAT, key dates to be aware of, and explore viable alternatives for future assessments.The FFIEC CAT was rst introduced to help nancial institutions benchmark their cybersecurity posture, create a path for continuous cybersecurity improvement and provide evidence for audits and examinations. Despite these benets, the CAT presented several challenges, particularly for smaller institutions. With 494 declarative statements, scaling it for all sizes of nancial institutions proved dicult, leading to the decision to phase it out.The announcement from the FFIEC on August 29, 2024 provided examples of several frameworks and tools that are available to replace the CAT. Each option oers unique benets, depending on the size and complexity of the institution. It will be important for nancial institutions to select a cybersecurity risk management framework that aligns with its size and complexity and achieves the benets required from its cybersecurity goals. Here, we briey discuss the frameworks to give nancial institutions a starting point for selecting the appropriate one.The NIST Cybersecurity Framework 2.0 includes six core functions (Govern, Identify, Protect, Detect, Respond, and Recover) making it a comprehensive option for managing cybersecurity risks. It’s widely recognized as the gold standard in risk management, and adaptable to nancial institutions of various sizes. NIST CSF 2.0 can be used as a maturity model using a four-tiered system, providing a path to improving cyber maturity over time. The framework, however, is large and could prove laborious for a community bank to execute given the myriad responsibilities that tend to fall to IT and Operations teams in smaller settings.Designed specically for small and medium-sized businesses, the CISA Cyber Performance Goals are practical, threat-informed goals that align with NIST but exclude the Govern function. The goals themselves declare that they are not a framework, however they oer actionable steps for improving both IT and operational technology (OT) cybersecurity. The CISA Cyber Performance goals could be considered a minimum set of cybersecurity standards so if nancial institutions choose to adopt this model, they may need to migrate to another, more sophisticated model after achieving the stated goals.Focused on nancial institutions, the CRI Cyber Prole is a streamlined tool which helps nancial institutions assess cyber risk based on the signicance of its (the FI’s) impact to the nancial systems. The Cyber Risk Institute (CRI) is a non-prot coalition of nancial institutions and trade associations which lends industry knowledge to the CRI Cyber Prole. Most community banks will likely fall into the Tier 4 category, which contains 208 diagnostic statements, signicantly fewer than the FFIEC CAT’s 494 declarative statements. It’s self-contained within an Excel format and allows FIs to complete only the applicable tier, making it ideal for community nancial institutions. If this sounds similar to the CAT, it is. Of all the frameworks evaluated here, the CRI Cyber Prole will look and feel most like the FFIEC CAT.The CIS Top 18 Controls provide a set of best practices categorized into three implementation groups (IGs) based on a company’s size and cybersecurity resources. Butjust because the title is the Top 18 Controls, the CIS controls are really grouped into 18 dierent control families. Preparing for the FFIEC CAT Phase-Out: Exploring New Cybersecurity Assessment Options for Financial InstitutionsSPRING 2025 PA Bankers Association » 41vendorARTICLEST
vendorARTICLES42 » PA Bankers Association pabankers.comEach control family includes a series of safeguards with understandable denitions and control suggestions. The CIS controls are industry agnostic so don’t expect to nd nancial institution specic controls. The controls provided, however, are sound and will provide nancial institutions a valuable roadmap to improve their cybersecurity posture.You have probably seen SOC 1 and SOC 2 reports as part of your vendor management and due diligence process. A lesser known but equally valuable report is the SOC for Cybersecurity Examination which oers an attestation report and opinion from an independent CPA rm on the cybersecurity risk management program of any entity, not just third-party service providers. It evaluates management’s description of its cybersecurity risk management program and the operating eectiveness of controls supporting its cybersecurity objectives. Often, the cybersecurity ABOUT THE AUTHOR: Bryan Newlin began his career with YHB in 2005, and has been a key leader in YHB’s respected Risk Advisory Services practice since 2007. Focusing attention on two of the most well-known technology internal control frameworks –the AICPA’s Trust Services Categories and ISACA’s COBIT® framework —Bryan works across industries to help clients identify and mitigate information & technology risk.controls are dened using the AICPA’s Trust Services Criteria for security, availability and condentiality, similar to a SOC 2 report. A unique characteristic of the SOC for Cybersecurity report is its designation as a general use report, which means distribution of the report is not limited and can therefore be shared with shareholders, customers, prospective customers, vendors, and any other stakeholder. With the CAT’s removal on the horizon, nancial institutions should begin planning their transition to an alternative framework. For more detailed guidance on preparing for the CAT phase-out, watch a previously recorded webinar presented by YHB’s Risk Advisory Services expert, Bryan Newlin, CPA, CISA, on YHB’s Engagement Hub. adINDEX ............................................................................................................... ............................................................................................................. ....................................................................................................... ......................................................................... ............................................................................................. ....................................................................................ENVIRON.......................................................................................................................... EVOLV ...................................................................................................................................7 ........................................................................................................................... ...........................................................................................................................15............................................ ............................................................................................................. .................................................................................................................. ............................................................................. PLATEAU .......................................................................................................................... .......................................................................................... I .................................................................................................... 4
SPRING 2025 PA Bankers Association » 43
44 » PA Bankers Association pabankers.com PA Bankers Association » Winter 2024 44AI-Powered Fraud Prevention SolutionsChuck Diulus, (412) 697-9125cdiulus@threatadvice.comA Unique Health Care Alternative for PA-Based Financial Institutions and Aliate Members of the PA Bankers AssociationWayne Whipple, (717) 255-6925wwhipple@pabankers.com PA Bankers MembersSAVINGS, SERVICE AND QUALITYBond, D&O, P&C, Cyber Insurance and Employment Practices LiabilityPatricia Williams, (216) 220-1280pwilliams@abais.comA Family of Bank Compliance ServicesThat Includes Compliance Alliance, Review Alli-ance and Virtual Compliance OcerTiani Chambers, (717) 255-6928tchambers@pabankers.comInteractive, Award-Winning CourseTeaching Students Real-WorldFinance, No Upfront CostKatie Rigby, (801) 821-9055katie@banzai.orgMANAGEMENTApplication and Administrationof EITC ProgramsCristine Clayton, (570) 278-3800cclayton@commonwealthcharitable.orgDiversity is Essential -Find Talent in all the Right PlacesTiani Chambers, (717) 255-6928tchambers@pabankers.comA Proven Tool for Improving SuccessQuarterly performance reports subscription available for all states; custom/historical reports upon requestTiani Chambers, (717) 255-6928tchambers@pabankers.comCore, Debit EFT, Card Program, LoanOrigination, Bill Pay, Mobile Banking &ATM Contract NegotiationJennifer Wagner, (480) 425-5204jwagner@crnrstone.comVendor selections and recommendations are made in accordance with PA Bankers Services Corporation’s stated mission. It is believed that the promoted products and services merit strong consideration by PA Bankers member banks. PA Bankers Services Corporation due diligence and selection criteria should not be construed as a guarantee, as the ultimate appropriateness may vary from bank to bank. In addition, member banks are encouraged to conduct their own due diligence reviews of recommended vendors. Remuneration received by PA Bankers Services Corporation is utilized in-part to support the PA Bankers Association through contracted agreements, corporate sponsorships and overhead coverage. This nancial support expands resources and strengthens the services and programs of the PA Bankers Association.Check ProgramTodd Wroblewski, (724) 625-5599todd.wroblewski@deluxe.comENVIRONElectricity and Natural Gas Procurement Services, Utilities Management PlatformKathryn S. Allen, (667) 330-1161kallen@environenergy.comEVOLVMerchant Processing, Search EngineOptimization, Website Design and SocialMedia ManagementNellie Schlachter, (888) 311-7248x3009nschlachter@poweredbyevolv.com
Your Trusted SBA/USDA ExpertsMichael D. Ryan, (610) 733-9955mryan@innovfs.netImmediate Financial Impact Through NegotiationsWayne Whipple, (717) 255-6925wwhipple@pabankers.comINVESTORS TITLEMulti-Bank Owned TitleInsurance ProgramKaren Barnett, (419) 577-5900kbarnett@invtitle.comData Analytics Solution Designed by Bankers for BankersAmber Robinson, (603) 860-3162amberrobinson@klarivis.comMultiple Medical, Drug, Dental &Vision Options and EB SolutionsBrad Webber, (814) 695-8066bwebber@lrwebber.comIntegrated Compliance, Vendor and Risk Management, Board Encouragement PlatformMichael Harrison, VP, Account Executive(888) 370-5552michael.harrison@ncontracts.comBOLI, Executive Compensationand Long-Term CareDavid Shoemaker, CPA/PFS, CFP®(901) 754-4924david.shoemaker@nfp.comHCM Solutions andEngagement SoftwareLisa DeJoy, (717) 303-7663ldejoy@paylocity.comDesign-Build, Branded Environments, Technology Solutions, Consulting ServicesErin Campbell, (800) 253-7430erin.campbell@pwcampbell.comFractional IT and Cyber LeadershipShea Gabrielleschi, (410) 600-3329sgabrielleschi@hartmanadvisors.comDigital Account Opening and Lending Solutions: One View, One Vendor, One VikarDavid Wyllie, (201) 951-4011david.w@vikartech.comOce and banking supplies, furniture, print and copy services, promotional products and moreTiani Chambers, (717) 255-6928tchambers@pabankers.comTailored Credit Enhancement and Debt Protection SolutionsWayne Whipple, (717) 255-6925wwhipple@pabankers.comAsset/Liability ManagementSoftware and ServicesCharles Amis, (405) 415-7231Charlie@gobaker.comPreferred Derivatives ProgramAmber L. Evanco, (724) 689-2178amber.evanco@pnc.comOnline Marketplace Jack Payne, 610-295-5555jack.payne@pnc.comMichael Schuenemann, (717) 421-9279mikes@keytaxllc.comSales & Lease Tax Reverse AuthorFrank Potter, (717) 585-7344wgrudi@grudiassociates.comTechnology. Support. Results.Electronic Lien and Title ProgramTiani Chambers, (717) 255-6928tchambers@pabankers.com
At C/A’s Compliance Hub, we understand where to start and are available via live chat to answer your quesons. We also have tools developed in-house for you to begin using Day One. Once you have a starng point, circle back for any addional clarificaon needed. We answer an unlimited numbers of quesons from our members. This is where our Compliance Hub is vital, built to be next-level compliance support.CMYCMMYCYCMYK