Banking Northeast Issue 4, 2023

ISSUE 4 / 2023-24

2024 AGENDA

Banking For All

New ABA Chair Julieann Thurlow Seeks Ambitious Outreach Plan

FORGET ALGEBRA

Students hunger for financial literacy

FED VP DEFENDS BASEL

Increased capital reduces risk of catastrophic events CFPB Pushes For

Julieann Thurlow President and CEO Reading Cooperative Bank Photo by Donis Perkins

A PUBLICATION OF AMERICAN BUSINESS MEDIA

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CFPB Proposes Rule To Accelerate Shift To Open Banking

T

he Consumer Financial Data Rights rule, people would have from multiple providers.

Protection Bureau (CFPB) the power to share data about their • Can walk away from bad service: Not proposed a rule that would use of checking and prepaid accounts, only would the proposed rule increase accelerate a shift toward open credit cards, and digital wallets. This competitive forces among financial banking, where consumers would have would allow them to access competing institutions, but it would also enable control over data about their financial products and services without worrying people to walk away from bad services lives and would gain new protections that their data might be collected, and products. People can become against companies misusing their data. used, or retained to serve commercial trapped by providers that hold their The proposed Personal Financial Data interests over their own. Importantly, data, but this proposal would allow Rights rule activates a dormant provision people could be certain that their them to more easily shift their data to of law enacted by Congress more than a data would be used only for their own decade ago. preferred purpose—and not for financial a competitor offering better or lower institutions or tech companies to surveil priced products and services.

It would jumpstart competition by and manipulate.

The proposed Personal Financial Data forbidding financial institutions from Rights rule would protect the interests hoarding a person’s data and by The proposed Personal Financial of both consumers and financial firms requiring companies to share data Data Rights rule would ensure that through: at the person’s direction with other consumers: companies offering better products. The • Get their data free of junk fees: Banks • Robust protections to prevent proposed rule would allow people to unchecked surveillance and misuse and other providers subject to the break up with banks that provide bad of data: Companies that people rule would have to make personal service and would forbid companies that authorize to access data on their financial data available, at no charge receive data from misusing or wrongfully behalf would have to agree to certain to consumers or their agents, through monetizing sensitive personal financial important conditions. Third parties dedicated digital interfaces that are data. could not collect, use, or retain data safe, secure, and reliable. to advance their own commercial Currently, people’s access to their • Have a legal right to share their interests through actions like targeted financial data is inconsistent from data: People would have a legal or behavioral advertising. Instead, one financial institution to another. right to grant third parties access to third parties would be obligated to Even among companies that do share information associated with their credit limit themselves to what is reasonably data at a customer’s request, the card, checking, prepaid, and digital necessary to provide the individual’s terms of the sharing vary greatly. This wallet accounts. This type of data can requested product. lack of norms in the market allows help firms provide a wide range of incumbents to play games to their own • Meaningful consumer control: The products and services, including cash customers’ detriment – including hiding proposal would also give people the flow-based underwriting that stands or obscuring important data points like right to revoke access to their data. to improve pricing and access across prices. This undercuts the ability of When a person revokes access, the credit markets. When these firms offer small or upstart institutions to compete proposal would require that data a desired product or service, people with incumbents, even when people access end immediately, and deletion would be able to switch providers want their data shared. would be the default practice. Access more easily. They would also be able Under the proposed Personal Financial to more conveniently manage accounts can be maintained for no more

than one year, absent the individual consumer’s reauthorization.

• A move away from risky data collection practices: Many companies currently access consumer data through screen scraping, which often requires people to share their usernames and passwords with third parties. This proposal seeks to move the market away from these risky data collection practices.

• Fair industry standard-setting: Instead of providing detailed technical standards, the rule contains several requirements to ensure industry standards are fair, open, and inclusive.

The CFPB intends to assess future standards developed by the private sector under the terms described in the rule.

Under the proposal, the requirements would be implemented in phases, with larger providers being subject to them much sooner than smaller ones. In addition, the many community banks and credit unions that have no digital interface at all with their customers would be exempt from the rule’s requirements.

The proposed rule is the first proposal to implement Section 1033 of the Consumer Financial Protection Act, which charged the CFPB with implementing personal financial data sharing standards and protections.

The CFPB intends to cover additional products and services in future rulemaking.

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REGULATORY

New Bank Capital Rules Will Protect Against Bad Investments Fed Reserve vice chair claims ‘endgame’ proposal won’t affect most banks MICHAEL S. BARR, SPECIAL TO BANKING NORTHEAST MAGAZINE

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Federal Reserve Vice Chair for Supervision Michael Barr made the following remarks at the American Bankers Association Annual Convention, in Nashville, Tenn., in October. They have been edited for space.

have spent considerable time throughout my career thinking about the potential of the financial system to make a difference in the lives of individuals and their communities. Access to credit and other financial services is key to families navigating the many challenges they face and building a better future.

The pursuit of this goal inspires many of you in your jobs as well. But in order for the financial system to play this role, it must be able to weather unexpected stress and continue to serve its customers and communities. And this requires that banks have sufficient capital, the subject of a proposal that the agencies recently put out for comment.

The vast majority of banks in the country — would not be subject to the Board's recent "endgame" proposal on bank capital. The proposal affects only the very largest banks. Even so, I suspect that you have heard a lot about it! The bulk of the proposed changes have been a decade in the making, and, as the name implies, the proposal is the last major plank to address gaps in regulation dating from the Global Financial Crisis.

Since the Federal Reserve Board has just begun to receive comments on the proposed rules, I cannot say how those rules will evolve, but I can try to provide more background on why I believe the benefits of the proposal would outweigh the costs. I will also discuss the impor-

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tance we place on public engagement in the rulemaking process to ensure we strike the right balance between the costs and benefits of our rules.

The proposal is projected to raise capital for large banks. This may result in higher funding costs. But this is only half the story. Capital also enables banks to absorb more losses without risking their ability to repay their creditors.

The effective rise in capital requirements related to lending activities in the current proposal is a small portion of the estimated overall capital increase.

MICHAEL BARR Vice Chair for Supervision Federal Reserve

The bulk of the rise in required capital anticipated in the proposed rule is attributed to trading and other activities besides lending — activities that have generated outsized losses at large banks and areas where our current rules have shortcomings. The estimated increase in capital required for lending activities on average — inclusive of both credit risk and operational risk requirements — is limited. Such a rise might be expected to increase the cost to banks for funding the average lending portfolio by up to 3 basis points—0.03 percentage points. We recognize that the cost of funding for a specific loan would depend on the specific risk weight for that activity, and that there may be other channels by which higher capital requirements could matter. This is an area where commenters can shed light on additional considerations for the cost and benefits of the rule.

The private costs of capital must be weighed against the social benefits of higher capital in creating a healthier, more resilient financial system, and reducing the likelihood of financial crises. As we indicated in the preamble to the endgame proposal, historical experience — particularly our experience during the Global Financial Crisis — demonstrates the severe impact that distress or failure at individual banking organizations can have on the stability of the U.S. banking system.

The macroeconomic benefit of increased capital comes from reducing the

REGULATORY

Vice Chair for Supervision Michael Barr unveiled his recommendations for enhancing banking system strength at the Bipartisan Policy Center in July.

likelihood of such a costly event. Better capitalized banks are better able to absorb losses and continue to lend to households and businesses through times of stress, which, in turn, helps to ensure that we have a healthy and strong economy.

THE STRENGTH OF THE INITIAL REFORMS Following enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) in 2010, the board adopted an initial set of reforms to increase the quantity and quality of capital, run an annual supervisory stress test, and set a capital surcharge on global systemically important banks (G-SIBs) to reflect the greater risk these firms pose to U.S. financial stability. These initial reforms have greatly strengthened our banking system and the common equity capital ratio of the largest banking organizations more than doubled, from 5.5% in 2009 to 12.4% at the end of last year.

As these initial reforms were being put in place, many in the banking sector

The effective rise in capital requirements related to lending activities in the current proposal is a small portion of the estimated overall capital increase. claimed that the changes would harm lending and the broader economy. Since then, the U.S. economy has grown substantially, and the U.S. banking system has

grown from $12 trillion in assets to $23 trillion.

Bank profitability measures — which dropped dramatically in the Global Financial Crisis — have mostly recovered and are close to historical averages. So, as banks increased their capital cushions, their profitability grew, as did their market valuation. The increased strength has enabled banks to support the economy.

U.S. banks have maintained their position at the top of the league tables of global capital markets activity.

This is not to dismiss arguments that higher capital could harm the economy — just to note that similar warnings were not borne out in recent experience.

THE CASE FOR BUILDING ON THE INITIAL REFORMS First, the proposal would remove the use of banks' internal models to set credit risk capital requirements. In the agencies' experience, the subjective choices made for internal models have produced unwarranted variability across banking organiza-

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tions in requirements for exposures with similar risks. This can weaken confidence, reduce transparency, and challenge comparisons of capital adequacy across banking organizations.

For these reasons, the proposal would replace the internal models approach for credit risk with a non-modeled approach.

This so-called "expanded risk-based approach" would be sensitive to important drivers of credit risk but would be standardized, transparent, and consistent across banks.

The proposal contains adjustments relative to the international Basel Capital Accord to ensure that, on average, small and large banks are required to hold similar levels of capital for key credit portfolios. The large banks subject to the proposal would continue to also be subject to the same U.S. standardized approach as applicable to all firms in order to maintain competitive equity across the full range of providers of credit. The agencies have sought comment on this approach to competitive equity in light of the U.S. standardized approach requirement and the generally higher overall calibration of the proposed requirements.

Second, turning to operational risk, large banks have experienced significant losses due to operational weaknesses over the past two decades. Experience shows that operational risk is inherent in all banking products, activities, processes, and systems and that losses at the largest banking organizations can be substantial.

Under the current capital rule, the very

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Better capital requirements would take the stress out of sudden banking emergencies. largest, most complex banking organizations calculate risk-weighted assets for operational risk using internal models.

These models can present substantial uncertainty and volatility.

In the agencies' proposal, the operational risk capital requirements would be standardized rather than modeled and would be a function of a banking organization's business volume and historical operational losses. Research suggests that banking organizations with higher overall business volume are likely to have exposure to higher operational risk.

Further, higher operational losses are associated with higher future operational risk exposure.

Third, the Global Financial Crisis taught regulators and banks many difficult lessons about the importance of robust capital requirements for trading and mar-

ket making activities. Banks at the time were undercapitalized, in particular, for the large losses that occurred in securitizations and other illiquid assets. Although the current capital rule was updated to better reflect this risk following the crisis, the current approach has some material shortcomings.

Most notably, the current framework could result in capital requirements increasing during stress, rather than requiring firms to hold sufficient capital in advance of the stress to be manage through a stress period. The framework also did not account for the large range of liquidity profiles across trading exposures.

The aim of the revised market risk framework is to comprehensively address the lessons of the Global Financial Crisis.

The revised framework would permit banks to use their own models to compute elements of the market risk capital requirements only when such risk can be modeled well. Models under the new framework would need to better account for the possibility of large outlier events — tail risk — and for the illiquid nature of some trading exposures.

The framework would also recognize that diversification that is beneficial in quiet times may not materialize under stress. The framework would backstop internal modeling with a new standardized approach to market risk to be applied to trading portfolios where banks are unable to demonstrate that their models adequately capture risk.

“TALKING TALKING ABOUT MONEY IS IN POOR TASTE.” Learn how to save for your retirement at WeSaySaveIt.org.

National Institute on Retirement Security, 2016.

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COMMUNITY

In the fall, Webster Bank released the findings from its inaugural Financial Empowerment Study, an in-depth, independent report that examines financial challenges and literacy of consumers. Banking Northeast Magazine spoke with Marissa Weidner, chief corporate responsibility officer at Webster Bank, about the study.

Community Banks Must Teach Financial Literacy Research finds it’s best to start young: either in middle or high school

K E I TH G R I FFI N, S E N I O R ED I TOR, BANKI NG NORT HEAST M AGAZI NE

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Q&A

Q. Webster Bank has released its inaugural financial empowerment study. Why is it necessary to conduct an independent report that examines financial challenges and literacy of consumers?

Don’t most bankers already have a grasp on this information?

Today, consumers are facing continued pressures from inflation, rising interest rates and wage stagnation.

Given these challenges, it’s important that we have recent data to understand the most pressing financial issues for consumers and be better prepared to help them. We specifically commissioned this study to identify the financial challenges facing consumers and the need to build financial literacy from an early age. It’s also important for us to understand how different communities across our own footprint in the Northeast are impacted by economic pressures.

Our research uncovered opportunities for community partners to empower consumers to gain the knowledge needed to make smarter decisions as it relates to saving, managing debt, and feeling confident in their financial decision making. In fact, two-thirds of Americans are interested in tools and resources to improve their financial knowledge. It’s clear we have work ahead of us and we’re eager to partner within our community to help consumers achieve greater financial wellness.

This research uncovered a surprising finding:

nearly half of consumers rely on friends and family for financial advice.

Compare this to 34% that rely on a financial website and just 32% who rely on a financial advisor.

Q. In a news release you explained that the survey found that over half of Americans are concerned about their financial situation, and they don’t feel confident in their knowledge to address it. Why is that? In the digital age it seems as if finding the knowledge would be easier.

This research uncovered a surprising finding: nearly half of consumers rely on friends and family for financial advice. Compare this to 34% that rely on a financial website and just 32% who rely on a financial advisor. Despite living in the digital age, consumers still rely on their personal networks for financial advice. While many will go straight to implementing tactics they read online or learned from an advisor, if they don’t have the knowledge to make informed decisions, they may find themselves falling back into a cycle of struggling to save and invest.

We believe it’s important to expand programs that teach consumers the basic principles of saving, investing and managing everyday expenses so they have the knowledge to make thoughtful decisions about their finances and take control of their financial futures.

Marissa Weidner Chief Corporate Responsibility Officer Webster Bank

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Q. Twenty-three states mandate the completion of a personal finance curriculum to graduate from high school. While this is great progress, states like New York still don’t have this mandate. Why is it important for students to have access to personal finance curriculum and resources?

The progress that has been made in mandating personal finance curriculum as a high school graduation requirement shows that we’re definitely moving in the right direction. We know that these programs have a positive impact. Our study found that those who received financial education in middle and high school years are more likely to feel fully in control of their finances (49%), compared to those who did not receive any financial literacy courses (25%).

Over the past 18 months, Webster has partnered with community nonprofit organizations across our footprint to launch six finance labs. From New York to Massachusetts, each partner is taking a slightly different approach, but they share the same goal: To provide youth with the tools and resources to create a solid

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We know that creating opportunities for youth to access tools and resources early on can aid them in becoming more financially responsible adults and directly benefit them and their families.

financial future for themselves, and by extension their communities.

During this time, we also launched a Community Liaison Officer (CLO) Program. Our CLO bankers are embedded in our banking center network, working to help low- to moderate-income individuals and families gain access to credit and putting them on the path to becoming first-time homebuyers. These programs enhance the existing advisory services our banking center personnel offer to clients.

We also work closely with the American Bankers Association, which provides numerous tools and the underlying lesson plans for putting young students on the right path to financial literacy.

Q: Your study showed the many Americans are living paycheck to paycheck. Along with one in four Americans having debt in collection, is financial education really going to help?

It’s important for both bankers and educators to understand the unique needs of our communities and take a holistic approach to financial empowerment. Our finance lab partnerships approach the

opportunity to provide financial education in different ways that meet the needs of their individual communities.

For example, our first Finance Lab partner, Yonkers Partners in Education (YPIE), provides services to Yonkers High School students in an immersive, afterschool setting. The students can choose from STEM, liberal arts and other offerings including the Finance Lab. Now in its second year, Finance Lab students learn the basics, and quickly progress to analyzing stock offerings, creating investment plans and working toward a year-end capstone project.

Our second Finance Lab partner is the Eagle Academy Foundation. At the six Eagle Academy schools, located throughout New York City and in New Jersey, the Finance Lab is part of the regular curriculum. Students are taught about goal setting to help them on the path to saving and investing.

Part of Webster’s larger $6.5 billion Community Investment Strategy, the Finance Labs are designed to help our nonprofit partners in low- and moderate-income communities create opportunities for youth to gain the skills needed for economic empowerment and financial success.

Sign up to stay in touch.

Q. With inflation top of mind, can financial literacy programs still have an impact on the younger generation if introduced now?

Expanding financial literacy and education programs can certainly impact the younger generation. Our study showed that of those who received some financial education in middle or high school, 85% felt it successfully prepared them to manage their finances. Further, our study revealed that 84% of consumers feeling strongly that there should be more investment in middle and high school to provide financial education. We know that creating opportunities for youth to access tools and resources early on can aid them in becoming more financially responsible adults and directly benefit them and their families.

Q. What can banks and credit unions do to rectify this problem? Don’t most already offer financial education and personal bankers?

Yes, many financial institutions already offer financial education programs or have teams of bankers available for their clients. Unfortunately, that is not enough. To be a strong community partner and drive impactful change, we think it’s important to reach out to consumers rather than waiting for them to ask for help.

At Webster, we believe in creating lasting partnerships with nonprofits throughout our footprint to create programs to educate the community on a range of financial topics. Many of our partners already offer programs that empower children, women, and other lowincome earners to achieve career success and instilling financial education within these programs are a natural fit. These programs reinforce Webster’s commitment to creating economic vitality in the communities we serve.

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WOMEN TAKE THE LEAD

At New England Women In Banking Women Take The Lead was the theme of the 2023 New England Women In Banking Conference held in Newport, R.I., on Oct. 27.

A capacity audience heard from an insightful lineup of women speakers. In the 13 years this conference has been held, only women have taken the main stage.

Roxanne Emmerich, author of the New York Times bestseller, “Thank God It’s Monday,” kicked off the conference with her lively take on how she and her team have transformed banks from transactional entities to transformation powerhouses. Roxanne proved the extraordinary is not just a possibility—it is the starting line.

Angelynne Elliott, director of organizational development at Celligence, provided a glimpse into the future of AI, or augmented intelligence as she called it. She gave a deep-dive into this cuttingedge issue for everyone in the industry.

Attendees then heard from three powerful women of banking with voices of experience: Lizette Nigro, SVP of Digital Engagement at Liberty Bank; Anne Tangen, CEO and President of BankFive; and Claude Rousseau, SMD Human Resources at Webster Bank. The trio was honored after lunch with the Northeast Women In Banking Awards, presented

by Banking Northeast.

Natalie Bartholomew, founder of the immensely popular blog, “The Girl Banker,” kept the energy level high after lunch.

She was then followed by keynote speaker Jazz Jennings, star of “Just Jazz” and a nationally known transgender activist who spoke about the challenges of knowing from a young age she was a girl living in a boy’s body. An added bonus was Jazz’ mom Jeanette being on hand to add her perspective!

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Claude Rousseau SMD Human Resources Webster Bank

Roxanne Emmerich

Angel Elliott

Natalie Bartholomew

CEO & Founder, The Emmerich Group

Managing Director of Organizational Development, Celligence

Founder, The Girl Banker

Event attendees in Newport, October 27, 2023

Event attendees in Newport, October 27, 2023

Melissa Pianin

Lizette Nigro

Anne Tangen

Events & Marketing Associate American Business Media

SVP of Digital Engagement Liberty Bank

CEO and President BankFive

Jazz Jennings, Harvard Student, TV Star and Event Keynote Speaker BANKING NORTHEAST MAGAZINE

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ON T H E M OV E

Kristy Berner

Webster Appoints Berner As EVP, General Counsel and Corporate Secretary Webster Financial Corporation, the holding company for Webster Bank N.A. and its HSA Bank division, announced that Kristy Berner has been appointed executive vice president, general counsel, and corporate secretary of Webster Financial Corporation and Webster Bank. She will lead all of Webster’s corporate legal services.

Berner has more than 20 years of experience in the financial services industry, most recently serving as executive vice president, deputy general counsel, and assistant corporate secretary at M&T Bank Corporation. Prior to joining M&T, she was the general counsel and corporate secretary at both People’s United Bank and First Niagara Bank, as well as the deputy general counsel at KeyBank.

Berner began her legal career at Hodgson Russ LLP, where her practice focused on mergers and acquisitions, securities, and corporate matters.

“Kristy is an experienced professional in financial services,” said John Ciulla, president and CEO of Webster Financial Corporation and CEO of Webster Bank.

“As a member of the executive management team, we look forward to her leadership and guidance as part of our growth strategy.”

Berner served as a member of the Quinnipiac University Center for Women in Business Advisory Board and as a prior chair and vice-chair of the American Bank-

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Dave Hanrahan

David Hollis

ers Association General Counsel Group. She is a long-standing member of the Society for Corporate Governance as well as a variety of other legal and bank trade group associations.

M&T Bank Appoints Hollis As CHRO M&T Bank announced its appointment of David W. Hollis as chief human resources officer (CHRO). In this role, Hollis will lead staffing, recruiting, leadership development, compensation, benefits, and employee relations for M&T Bank, which includes more than 22,000 employees across the northeastern U.S. Hollis will be based in Buffalo, and will report to Tracy Woodrow, who has served as M&T’s CHRO since 2020. Woodrow will continue to serve as chief administrative officer, overseeing M&T’s banking services, Buffalo Promise Neighborhood (BPN), corporate services, human resources, and environmental, social, and governance (ESG) teams. Woodrow also retains her position on M&T Bank’s executive leadership team.

“David Hollis’ considerable experience building an integrated, diverse, and customer-centric culture further strengthens M&T’s commitment to making a difference for our employees, customers, and communities,” said Woodrow. “We see human resources as a competitive advantage, and we are excited to have David here to lead this function.”

Hollis has over 37 years of experience, most recently serving as CHRO at Michigan-based commercial bank, Flagstar Bank.

He oversaw Flagstar’s human resources function and cultural integration following its acquisition by New York Community Bancorp (NYCB) which was completed in 2022, and Flagstar’s acquisition of Signature Bank earlier this year. Previous roles include CHRO and Director of the Office of Minority and Women Inclusion for the Federal Reserve Bank of Cleveland, Chief Talent Officer for Goodyear Tire & Rubber Company, and Senior Vice President of HR for PNC and National City Bank.

“M&T Bank’s rich history of supporting and strengthening its communities was one of the many reasons I’m excited to take on this position,” said Hollis.

“M&T’s unique culture is deeply embedded across the organization, and I look forward to partnering with my colleagues to take the human resources function to the next level.”

Janak Amin

Goodwin Joins Norway Savings As SVP, Chief Information Officer Norway Savings Bank in Norway, Maine, announced the recent hire of Andrew Goodwin as senior vice president and chief information officer.

Goodwin will work closely with Ann Brett, who currently serves as the SVP, chief technology & information security officer, as she prepares for retirement in 2024 after a 40-year career with the bank. In his new role, Goodwin will oversee the

Rob Nichols

overall management of the bank’s information technology and information security. Goodwin has more than 25 years of IT and executive leadership experience, having led many IT organizations in hospitals, clinics and consulting groups as both a CIO and a senior consultant.

Goodwin graduated with a Bachelor of Science Degree in Business Administration and Computer Science from the University of Maine at Farmington and has also received his master’s degree in Geographic Information Systems from the University of Maine at Orono.

He also holds memberships and professional certifications from various trade and technology organizations, including CIO Certification (CHCIO) with the College of Healthcare Information Management Executives (CHIME), an executive organization dedicated to serving CIOs.

Bank of New Hampshire Welcomes Back Dawn Cross Bank of New Hampshire announced that Dawn Cross had rejoined its team as assistant vice president – Gorham Banking Office Manager.

In her role, Cross will be responsible for management of the office’s deposit portfolio, customer relationship management, new business development and community engagement. She will also oversee all daily operations of the office while becoming a trusted resource for Gorham customers.

Andrew Goodwin

Her career includes her recent role as director of a non-profit HomeJ.Ownership Jeffrey Tengel Center, where she excelled in grant management, financial analysis, and customer relations. In her previous tenure with Bank of New Hampshire, Cross achieved success in managing deposit portfolios and fostering business relationships within the community. Her dedication to team development and customer service aligns perfectly with BNH’s commitment to excellence.

“It is a pleasure to welcome Dawn back to BNH,” said Tony Ilacqua, vice president - retail banking regional manager for Bank of New Hampshire. “Her dedication and commitment to excellence make her a valuable asset to our team.”

Philadelphia Fed Appoints New Members To Community Depository Institutions Advisory Council The Federal Reserve Bank of Philadelphia announced the appointment of Janak M. Amin, president and CEO of Presence Bank, and Dave Hanrahan, president and CEO of Century Savings Bank, to its Community Depository Institutions Advisory Council (CDIAC). Amin and Hanrahan begin their three-year terms in October 2023.

The 12-member council is composed of representatives from commercial banks, thrift institutions, and credit unions. The group convenes

twice a year with officials from the Federal Reserve Bank of Philadelphia to share insights about economic and business trends facing community depository institutions in their local markets. After each local meeting, a representative from the Philadelphia council joins counterparts from other Federal Reserve Banks at a meeting hosted by the Board of Governors of the Federal Reserve System in Washington, D.C. After starting his career in London, Amin has gained more than 30 years of banking experience, predominantly in the central Pennsylvania region. Before joining Presence Bank, he was CEO of LeTort Trust, copresident of Sunshine Bank in Florida, and cofounder of Graystone Bank, where he served as president and CEO. Hanrahan has been a community banker in South Jersey for more than 35 years. Before joining Century in 2020, Hanrahan was president and CEO of Capital Bank of New Jersey for 13 years, from its 2006 beginning to its sale to OceanFirst Bank in 2019. Prior to Capital, Hanrahan spent 16 years at the Bank of Gloucester County, which is now part of Fulton Financial Corporation.

Berkshire Bank Welcomes Nichols To Business Banking Team Berkshire Bank, a community bank with financial centers in New England and New York, welcomes Rob Nichols as senior vice president, business banking team leader. Nichols

Dawn Cross

joins Berkshire with over 33 years in commercial banking.

At Berkshire Bank, Nichols will lead the sales team for business banking within Central and Eastern New York, Berkshire County, MA, and Southern Vermont. His extensive background covers a wide range of corporate and commercial banking leadership and management positions, including overseeing Business Banking departments at Citizens and First Niagara banks.

Most recently, he served as the chief credit officer for a community bank.

“Berkshire Bank’s commercial lenders are there to support and build businesses with responsive, personal service.

Rob will be a great addition to the Berkshire Bank team as he brings a wealth of knowledge and experience within commercial banking, industrial lending, and commercial real estate to help service our customers,” stated Senior Managing Director – Business Banking, Scott J. Houghtaling.

Nichols resides in the Albany, New York, region and is active in the community. He is currently a member of the Executive Committee and treasurer for the Capital District YMCA. He also serves as a member of the board of the Albany Black Chamber of Commerce. His passion includes mentoring and supporting entrepreneurs – this includes teaching Entrepreneurship Finance at Siena College.

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COVER STORY

Julieann Thurlow Wants Everyone At The Table New ABA chair sees community and minority outreach critical for her tenure

I

BY ERICA DRZEWIECKI, STAFF WRITER, BANKING NORTHEAST MAGAZINE

ncreasing access to financial services in underserved communities and investing capital back into those same locales are priorities for the American Banker Association’s new chairwoman, who’s aiming to take these objectives industrywide.

Julieann Thurlow, president and CEO of Reading Cooperative Bank (RCB) in Reading, Mass., was elected chair of the ABA during its annual convention in Nashville, Tenn. in October. This also marks Thurlow’s 30th year at RCB, a mutual bank with more than a dozen branches north of Boston.

“Access to financial services for everyone is something that's a priority for our institution,” she told Banking Northeast this fall. “We think it should be for the industry.”

Reading Cooperative Bank is a depositor owned co-operative founded in 1886.

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ON THE HORIZON ABA President and CEO Rob Nichols told Banking Northeast that the association is “thrilled” to bring Thurlow on as ABA chair “at such an important time for both our industry and the broader economy.”

“She is deeply respected by her fellow bankers across the country, and she understands the challenges and the opportunities facing the banks of all sizes,” Nichols said. “Julie is a real thought leader when it comes to bank innovation and financial inclusion, and she will be a tremendous ambassador for our

Reading Cooperative Bank President and CEO Julieann Thurlow in the early years.

industry in this important role.”

As the advocacy arm of the nation’s $23.5 trillion banking industry, the ABA serves as the collective voice of small, regional and large banks. Together members represent more than 2.1 million bank employees, safeguard $18.6 trillion in deposits and extend $12.3 trillion in loans.

As chair, Thurlow plans to stay apprised of federal movement in the industry and work to make banking services more accessible to all people, regardless of their limitations.

“When regulations or changes come out from Washington, being able to respond to those in a collective voice, making sure that we are thinking about what the implications are for the broader industry,” she pointed out. “Whether you're a small mutual bank in Massachusetts or you're JP Morgan Chase, there are implications across the board.”

One of her top concerns moving forward is automation and its

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COVER STORY

The American Bankers Association's new Chairwoman Julieann Thurlow at the 2023 Annual Convention in Nashville, Tenn. the last weekend of October.

Contributed photo.

impact on the banking system.

“I think it's a lot better for consumers to know that they actually have a person in a place that they can communicate with when they have financial challenges,” Thurlow said. “I don't think crypto is going to become a currency of choice as far as the banking industry is concerned.

But I do think that blockchain has broader applications because we are exchanging value when we close on mortgages, when we transfer real estate, when we borrow from the Federal Home Loan Bank, when we transact and purchase securities. So I think there's a lot of growth and opportunity in that space.”

TEACHING BY EXAMPLE Thurlow’s vision for the U.S. banking system as a whole is reflected 18

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“It’s rewarding to be out there helping and giving back to the communities that support us.”

Julieann Thurlow

in RCB’s investment in local communities and commitment to better serve its customers.

The bank opened its newest branch over the summer in Lawrence, Mass., a city of 89,000-plus residents, most of which are of Hispanic or Latino descent.

“It’s predominantly an immigrant

city; a lot of folks don't speak English,” Thurlow said. “All of our staff members at the branch are Spanish-speaking and we've done a tremendous amount of redevelopment of the city. We're pretty excited about seeing capital be put to use.”

RCB has also made check-cashing and bill-pay services accessible to non-customers and recently introduced a credit-builder product, also modifying overdraft fees to be more equitable.

“We're moving some of the services that have migrated out of the banking system, back into the banking system,” Thurlow said. “In some communities, you see check cashers on every corner, and that tells you that we're not doing a good enough job of making sure that banking

Reading Cooperative Bank President and CEO Julieann Thurlow

helps to build bikes for kids >>

break ground on a new development project

>>

Reading Cooperative Bank leaders

at the Woburn, Mass.

Boys & Girls Club.

in Lawrence, Mass.

>> Julieann Thurlow with Rotarians during a

From left, SVP and Commercial Team Leader Jose Cruz; VP and Branch Administrator Teresa Cunha; AVP and Branch Service Officer Maria Laboy; President and CEO Julieann Thurlow; Saviel Ortiz, Credit Department

Reading Rotary Club event.

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COVER STORY

>>

“When the opportunities present themselves, just make sure that you walk through that door instead of thinking about all the reasons why you can't make it happen.”

Julieann Thurlow Chair of the American Bankers Association CEO of Reading Cooperative Bank

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COVER STORY

services are available to everybody and lucky enough to have mentors that that they're understood. So (a goal is) actually opened doors and created figuring out better ways of allowing opportunities for me,” she said. people to have access to financial “When the opportunities present services so they can better their lives.” themselves, just make sure that you RCB staff volunteer with the local walk through that door instead of Boys & Girls Club, Rotary Club and thinking about all the reasons why you in schools, guiding local youth in can't make it happen.” financial literacy.

Former chair of the ABA’s “We are successful in our membership and core platforms communities because people choose councils, Thurlow presides over the to bank with us,” Thurlow says. “It’s RCB Charitable Foundation and is rewarding to be out there helping and a founding member of Alloy Labs, a giving back to the communities that consortium of banks from around the support us.” country formed to innovate in the Her vision includes growing the banking space by leveraging network ranks of women leaders at the C-suite effects. level of banking, as just 7.5% of In accepting her newest title, she’s institutions are led by females.

“I think we bring a different approach to how we actually manage people and a level of empathy,” she pointed out. “We understand what other women are experiencing between balancing home and work, and I think we tend to be a little more compassionate as well.”

Dorothy Savarese Past ABA Chair and retired CEO of Cape Cod This doesn't mean Five Cents Savings Bank having a lower standard, Thurlow clarified.

“The expectations are still the same; so that it is more empathy, understanding, and being a little bit looking forward to working with and more flexible or thinking about how gaining insights from other industry to get things done differently. And professionals from across the country. maybe that's just a byproduct of being “There's always time to grow a mom and figuring out how you can even if it's not growing in volume. be the theater mom at the same time There's also personal growth and as running a bank and meeting all the development,” Thurlow says. “This other obligations that might be on is going to be a learning year for me. your plate.”

The more and more I learn, the more impressed I am with just how people A LEARNING YEAR and bankers adapt to serve their market and the different challenges.

Thurlow, who is married with three There's just so much to be learned children, is grateful to RCB’s former across this country. You've got your CEO Donald Hicks Jr. for being her rural banks, you've got your city banks, mentor as she followed her own you've got your farm credit banks. dreams of leadership.

“Through my professional life, I was How do we actually meet all of those

community needs and who are the most financially vulnerable in those communities?”

Thurlow comes to the ABA with the support of state officials, non-profit organizations, colleagues and others in the banking industry.

Past ABA Chair Dorothy Savarese praised Thurlow for her ability to inspire.

“She challenges people to think beyond what’s right in front of them,” said Savarese, the retired CEO of Cape Cod Five Cents Savings Bank.

The Lawrence Partnership, a cross-sector coalition for economic growth that RCB is a part of, also vetted Thurlow’s capacity for positive change. “She is not only smart and thoughtful but she is equally compassionate and caring and very generous with her time and her resources,” Executive Director George Ramirez said.

Thurlow earned a Masters in Business Administration from the Charles F. Dolan School of Business at Fairfield University before completing advanced studies at the Stonier Graduate School of Banking, the Mass. School for Financial Studies, Harvard Business School’s Division of Continuing Education, and the CEO Leadership Lab at Wharton’s Aresty Institute for Executive Education.

Thurlow was honored at the 2014 New England Women in Banking Conference with the Sandra Petie Award for career achievement, providing opportunities, support, and inspiration to women in banking. She has repeatedly been named one of the Top 25 Women to Watch in Banking

by American Banker Magazine, and RCB was named a Top 100 WomenLed Business by the Commonwealth Institute the past seven years.

“She challenges people to think beyond what’s right in front of them...”

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Yield on Assets and Cost of Funds Increased in Both the 2004 to 2006 and 2022 Rising Rate Cycles

Interest Rates Rose More Sharpley in 2022 Than In Previous Cycles

Contributors to the Year-Over-Year Change in Income

Change in Loan Balances and Unused Commitments

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DATABANK

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WELCOME

To The Northeast's Premier Banking Event!

T

he amazing BankWorld is back for its 29th year, and once again, this is your can’tmiss opportunity to learn about the future of banking at the Northeast’s largest and most exciting banking show.

This expansive conference provides you with essential educational sessions, interactive panels, cuttingedge exhibits, countless networking opportunities, raffles, and so much

more – all with an eye to giving you an edge against the competition.

and risk management, BankWorld is for you.

Take advantage of the opportunity to get your hands on the latest products and technology that are revolutionizing the future of banking. If you’re an executive, senior management, or staff member involved in operations, technology, lending, retail banking, marketing and sales, human resources, security, or compliance

Peruse the agenda of events taking place. Make sure not to miss the inspirational words of Don Mann.

End your day with the Financial Marketing & Community Champion Awards.

Thanks for being a part of the largest banking show in the Northeast!

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AGENDA

January 12, 2024

Keynote Speaker Jay Sidhu CEO of Customers Bank

7:00 am Registration Opens 7:30 am Innovation Breakfast Service Begins 8:00 am — 8:45 am

KEYNOTE SESSION There Are Only Two Kinds of Community Banks: The Innovative & the Doomed Innovation Breakfast Session Community bankers are often leaders — but somehow this quality is not so prevalent when it comes to critical areas like technology and innovation within their own institution. Industry veteran Jay Sidhu of Customers Bancorp laments that complacency is killing the community banking sector.

As a young man who grew up in India, Jay Sidhu backpacked across Afghanistan, Iran, and Western Europe with just $100 — managing to make it to London and back to India. He then moved to the United States in 1971 with no money, connections, or friends. Sidhu is now CEO of Customers Bancorp, Inc. and executive chairman of Customers Bank. When he joined Customers in 2009, previously known as New Century Bank, the company was a $250 million asset-troubled bank. Today, it is a high performing bank with over $21 billion in assets providing a range of banking and lending services to small and medium-sized businesses, professionals, individuals, and families.

From 1989 to 2006, Sidhu was the Chairman and CEO of Sovereign Bancorp, Inc and Sovereign Bank, a $90 billion financial institution. During his 20-year career at Sovereign, he grew the organization from an IPO value of $12 million to the 17th largest banking institution in the U.S., with a market cap approaching $12 billion at the end of 2006. Through 2006 Sovereign’s shareholders experienced an interest rate of return of 17% over the last 20 years, outperforming the S&P 500 and Dow Jones Industrial Average over 5-, 10and 20-year periods.

Presented By Jay Sidhu, CEO, Customers Bank 8:45 am — 10:15 am SBA Training Session Join representatives from Conn., RI and Mass. offices of the U.S. Small Business Administration for updates on lending programs, training on new initiatives and forecasts for opportunities in the offing.

8:45 am — 9:30 am

CONCURRENT SESSIONS Meeting Room 1 Monsters Under The Bed: What The CFO Sees A panel of community bank CFOs discuss the economic outlook, the challenges and opportunities ahead, and their plans for keeping control of any downturns.

Discussion participants include Rebecca Stokes, SVP/Treasurer & CFO at Thomaston Savings Bank; Paul Young, Senior Executive Vice President & Chief Financial Officer at Liberty Bank; and Jennifer Marchand, Senior Vice President, Treasurer & Chief Financial Officer, Torrington Savings Bank Meeting Room 2 Customer Service Is Critical for Banks Now: J.D. Power Survey J.D. Power's U.S. Retail Banking Satisfaction Study suggests that minor frustrations for customers spell big trouble for banks as rates rise.We'll hear from Dann Allen, Sr. Director for Banking & Payments Intelligence at J.D. Power what pitfalls lie ahead, and what bank leaders should be doing to make this a smooth ride.

Mr. Allen has more than 30 years of experience in international banking, customer experience, and communications.Prior to joining J.D. Power, Dann served in customer experience leadership roles in banking, most recently as Client Experience Executive at MUFG Union Bank and previously at Bank of the West. At Union, he led customer research, customer analytics, performance improvement, and regulatory complaints management.

Presented By Dann Allen, J.D. Power

BANKWORLD is brought to you by American Business Media and the Connecticut Bankers Association.

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Keynote Speaker Don Mann Former Member of SEAL Team Six, Renowned Athlete and Trainer

9:30 am — 10:00 am

CONCURRENT SESSIONS Meeting Room 1 How To Supercharge Branch Traffic In A Digital World As consumer expectations evolve, how do you know what elements will best engage them in your branch?

Moderated by Kerri Bastien, First Vice President - Retail Delivery Officer at Ion Bank Meeting Room 2 Personal & Small Biz Loans Are Growth Areas With Cross-Sell Opportunities Fintechs cultivate personal and small business loan borrowers as long-term banking prospects. Can banks and credit unions compete?

Moderated by Paul F. Larsen, Chief Lending Officer, Torrington Savings Bank.

10:00 am — 10:30 am What Does It Take to Attract Deposits with a Digital-Only Bank Brand?

Great customer service is key for direct banks and neobanks, but they often fall short. This creates an opening for traditional players that launch digital brands.

Moderated by Lizette Nigro, SVP, Digital Engagement, Liberty Bank

10:30 am — 1:30 pm Exhibit Hall Opens 11:00 am — 12:00 pm

KEYNOTE SESSION Run Your Bank Like You're SEAL Team Six Few people on earth have fit more into a life than Don Mann. A former Navy SEAL Team Leader who was twice captured by enemy forces and lived to tell his story, Mann has played a crucial role in some of America’s most daring military missions for more than two decades. Most recently, he trained the SEAL Team Six warriors who assassinated Osama bin Laden in May 2011.

Mann, who’s also a New York Times bestselling author, accomplished endurance athlete and mountaineer and star of the reality TV series Surviving Mann, recently has focused his attention on inspiring others to achieve goals they never imagined they could. As a sought-after motivational speaker around the U.S., Mann addresses a wide range of audiences — from major corporations to universities, to professional sports teams. He takes crowds inside a gripping underworld of risk and courage, while relating tales

FULL AGENDA

from the battlefield as well as from grueling suffer-fests like the Hawaii Ironman, which he has completed twice.

His message includes equal doses of inspiration and strategy. As he likes to say, “Anybody with the proper mindset can achieve anything imaginable.” The key, which he relates in his “Reaching Beyond Boundaries” presentation, is to “turn macro goals into micro goals.”

In this special appearance at BankWorld, Don Mann will share his amazing stories and help you see how you can apply his principles to building the best team possible to hit your targets at your bank or credit union.

Mann received a Masters in Management from Troy State University, in Troy, AL, a B.S. in International Relations & Criminal Justice, from Florida State University, in Tallahassee, Fla, and a B.S. in Liberal Science, from State University of New York. He lives in Williamsburg, Va. Presented By Don Mann, Former Member of SEAL Team Six, Renowned Athlete and Trainer 12:00 pm — 1:15 pm Reception Lunch & Open Bar With Exhibitors Lunch is served in the exhibit hall with open bar.

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Cambridge Trust To Merge Into Eastern Bank

BA N K N OTES

Financial Institution

NEWS AND TRENDS

from Delaware to Maine

Eastern Bankshares Inc., the stock holding company for Eastern Bank, and Cambridge Bancorp, the parent company of Cambridge Trust Company, announced they have entered into a definitive merger agreement pursuant to which Cambridge will merge with and into Eastern in an all-stock transaction valued at approximately $528 million.

Under the terms of the merger agreement, which has been unanimously approved by both boards of directors, each share of Cambridge common stock will be exchanged for 4.956 shares of Eastern common stock. Eastern anticipates issuing approximately 39.4 million shares of its common stock in the merger. Based upon Eastern’s $13.41 per share closing price on Sept. 18, 2023, the transaction is valued at approximately $528 million and the aggregate consideration represents 114% of Cambridge’s tangible book value and a 24% premium to Cambridge’s 30-day volume weighted average price.

Upon closing, Denis Sheahan, chairman, president and CEO of Cambridge, will become the CEO of Eastern and will join Eastern’s board.

Eastern’s President Quincy Miller will be promoted to vice chair, president, and chief operating officer. Both Sheahan and Miller will report directly to Bob Rivers, who will serve as executive chair and chair of the board of directors. In addition to Sheahan, three Cambridge directors are expected to be elected to Eastern’s Board of Directors in connection with the closing.

As of June 30, 2023, Cambridge had approximately $5.5 billion of total assets, $4.0 billion of total loans, $4.4 billion of deposits, and $4.4 billion of client assets under management and administration (“AUMA”). Upon completion of the merger, the combined company is expected to have approximately $27.1 billion in total assets, $18.0 billion of total loans, $22.6 billion of deposits, and $7.6 billion of AUMA.

Bank Of Delmarva Parent Gets LINK Merger OK LINKBANCORP Inc. and Partners Bancorp a financial services company with two wholly-owned operating subsidiaries, The Bank of Delmarva in Delaware and Virginia Partners Bank, 28

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have gained regulatory approvals from the Federal Deposit Insurance Corporation, the Pennsylvania Department of Banking and Securities, the Virginia State Corporation Commission, the Delaware Office of the State Bank Commissioner and the Maryland Office of the Commissioner of Financial Regulation for a pending merger.

Partners will merge with and into LINK in an all-stock transaction, with LINK as the surviving corporation. The Bank of Delmarva and Virginia Partners Bank will each merge with and into LINKBANK, with LINKBANK as the surviving subsidiary of LINK. The merger, which was previously approved by the shareholders of each company, remains subject to the approval of the Board of Governors of the Federal Reserve System and other customary closing conditions. LINK anticipates closing the merger in the fourth quarter of 2023.

The definitive agreement under which the companies will combine in an all-stock combination, is valued at approximately $167.8 million, based on LINK’s 10 day volume-weighted average price of $8.08 as of Feb. 21, 2023.

Fed Reserve, NY Regulator Fine Bank $30M Over Prepaid Card Accounts The Federal Reserve Board issued an enforcement action and fined Metropolitan Commercial Bank, of New York, N.Y., approximately $14.5 million for violations of customer identification rules and for deficient third-party risk management practices relating to the bank's issuance of prepaid card accounts.

In 2020, Metropolitan opened prepaid card accounts for illicit actors who subsequently used the accounts to collect illegally-obtained state unemployment insurance benefits.

By opening prepaid card accounts through a third-party program manager without having adequate procedures for verifying each applicant's true identity, Metropolitan violated customer identification rules of the Bank Secrecy Act. The Board is requiring Metropolitan to improve its customer identification, customer due diligence, and third-party risk management programs.

The board's action is being taken in conjunction with an action by the New

York Department of Financial Services, the state supervisor of Metropolitan. The penalties announced by the board and the Department of Financial Services total approximately $30 million.

Five Star Bank Suing Law Firm Over Alleged Mishandling Of Case Five Star Bank has filed a malpractice lawsuit against Harter Secrest & Emery LLP for the law firm’s alleged mishandling of a class-action case in a Pennsylvania court.

The 21-page complaint filed in State Supreme Court in Rochester accuses Harter Secrest & Emery (HSE) of “substandard legal representation” in a lawsuit filed in the Court of Common Pleas in Philadelphia.

Five Star is represented in the lawsuit by the Buffalo law firm of Rupp Pfalzgraf LLP. In May 2017, a class-action lawsuit was filed against Five Star in the Pennsylvania court involving about 5,000 plaintiffs who are New York state residents and 300 plaintiffs who are Pennsylvania residents.

The New York plaintiffs purchased and financed their cars in New York, while the Pennsylvania plaintiffs purchased their cars in Pennsylvania.

Parent Companies of Cape Cod 5 And Fidelity Bank Agree To Combine Cape Cod 5, headquartered in Hyannis, Mass., and Fidelity Bank, headquartered in Leominster, Mass., have reached an agreement to merge their respective mutual holding companies under one multi-bank holding company, Mutual Bancorp, subject to regulatory approval.

Both banks will continue to operate independently as two separate financial institutions, maintaining their respective names and brands while continuing their missions and service to their clients and communities.

This partnership of two institutions under a multi-bank holding company structure will enhance the capabilities of each organization. It will also allow for collaboration, shared services, and pooled resources between the banks to better meet the needs of their clients in an evolving industry landscape.

Cape Cod 5 holds over $5.5 billion in assets with 26 locations across the

Cape, Islands and in Southeastern Massachusetts, and Fidelity Bank holds $1.5 billion in assets with 13 Banking Centers throughout Eastern and Central Massachusetts. Under the agreement, Matt Burke will remain in his role as chairman and CEO of Mutual Bancorp and Cape Cod 5, and Edward F. Manzi Jr. will remain in his role as chairman and CEO of Fidelity Bank and serve as vice chairman, chief strategy officer of Mutual Bancorp.

Once finalized, Mutual Bancorp will have combined assets of more than $7.0 billion and will oversee and govern the strategic operations of both Cape Cod 5 and Fidelity Bank.

As part of the partnership agreement, Fidelity Bank will form a $5 million charitable foundation, providing increased and ongoing support to nonprofit organizations, causes, and events in their market areas. Cape Cod 5 has an established foundation through which it will continue to support its communities.

M&T Bank Increases Deposits Dominance M&T Bank remains the dominant force in local deposit market share. The Buffalo-based bank accounted for 68.4% of deposits in the Buffalo Niagara region, up from 63.3% a year ago, according to the Federal Deposit Insurance Corp.

The figures are based on a one-day snapshot the FDIC takes of banks' deposit picture each June 30.

M&T has now led the list of local lenders for 13 consecutive years. Its local deposits increased 22% from a year ago, to $49.8 billion.

Banks often hold deposits from large corporate or institutional customers at certain offices, which can bulk up their numbers. HSBC, for instance, ranked third in deposit market share, at 4.9%, despite having just one branch in the region.

WSFS Bank’s Annual Money Trends Study Finds Consumers Continue To Adapt Spending And Saving Habits Nearly four in 10 regional residents (38%) are spending more money now compared to last year, while only 21% in the region are saving more, according to a Money Trends study from WSFS Bank, the primary subsidiary of WSFS

Financial Corp. Half of respondents have heard of but never used savings tools like certificates of deposit (50%), while 51% said the same about high-yield money market accounts, signaling an opportunity for consumers to use higher interest rates more to their advantage.

Rising costs and inflation topped the list of why consumers are spending more (72%), followed by paying for emergency expenses such as repairs or medical bills (27%), paying off more debt (23%) and rising interest rates on credit cards and loans (23%).

The study, which surveyed 1,043 Greater Philadelphia and Delaware region consumers, measured spending and saving trends and the impact of economic conditions among adults ages 18-55.

Inflation and rising interest rates continue to have a major impact on regional consumers, with 72% spending more this year, attributing it in part to rising costs and inflation.

When looking at spending categories, rising costs for essentials have left consumers’ wallets stretched thinner, with consumers spending more on groceries (60%), transportation (53%), utilities (50%), and housing (43%) than last year.

“While continued economic headwinds have impacted many consumers, there are adjustments you can make to help your money stretch further,” said Shari Kruzinski, executive vice president, chief consumer banking officer at WSFS Bank. “Some consumers are already adjusting as they’ve reduced spending on restaurant visits (42%), entertainment (34%), and travel and vacations (34%) from last year. While prices for essentials like groceries may have increased, you can still search for savings by looking for discounts from big box or discount retailers and eating at home.”

Over 9,500 Bank of Canton Customers May Have Had Personal Information Exposed Thousands of Massachusetts customers who use the Bank of Canton may have had personal information, such as account numbers and social security numbers, exposed following a data breach, a bank spokesperson confirmed to Boston 25.

Approximately 9,540 people who use BANKING NORTHEAST MAGAZINE

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BA NK N OTES

Financial Institution NEWS AND TRENDS from Delaware to Maine

the Bank of Canton may have had their banking information exposed after Fiserv, one of the bank’s vendors, was impacted by a cyber security incident around or on May 27, 2023.

A bank spokesperson says clients were notified after the bank received the necessary information from Fiserv.

The client’s data was stored in an unstructured, technical format but could reveal customer’s names and other personal info “if successfully parsed and digested," a Bank of Canton spokesperson said.

First National Bank Of LI Partners With Rocket The First National Bank of Long Island announced that Rocket Mortgage, the nation’s largest retail mortgage lender, will be the preferred residential mortgage provider for the bank.

Through this relationship, the bank’s clients will receive special discounts and dedicated resources.

“This partnership with Rocket Mortgage will provide our clients with expanded lending solutions and the quick turn-around needed to finance a home in an ever-changing real estate market,” said Chris Becker, president and CEO of First National Bank LI. “We are committed to providing innovative ways to best serve our clients and are pleased to expand our product offerings through this partnership.

Rocket Mortgage will provide special closing cost discounts for our community while ensuring a customerfirst experience through its dedicated team of mortgage bankers.”

First National Bank LI is a community bank with an established history of meeting residential lending needs throughout Long Island and New York City. The bank’s clients can use Rocket Mortgage's user-friendly online home loan application experience by visiting fnbli.com/mortgage or can request the support of a dedicated Rocket Mortgage home loan expert by calling or visiting one of First National Bank LI‘s branch locations.

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Northeast States Among Top For Home Equity A report released by Lending Tree shows eight of the top 10 states for home equity loans are in the Northeast.

The only state in the Banking Northeast coverage area not included is Pennsylvania.

American homeowners are sitting on $28.7 trillion of home equity. That’s significant, even if the amount has fallen from a record $31.8 trillion in the second quarter of 2022. To put that latest figure into perspective, that’s more than $334,000 of equity for each owner-occupied housing unit in the U.S. Across the nation’s 50 states, the average home equity loan amount offered to homeowners is $104,102.

Though the 50-state average is six figures, not all homeowners are offered such large loans. In fact, loan amounts can vary by tens of thousands of dollars by state. For example, the average offered home equity loan amount in Massachusetts of $145,788 is nearly double the average amount offered to borrowers in Mississippi ($75,228).

Massachusetts, New York, and Vermont homeowners are offered the largest average home equity loans.

In Massachusetts, home equity loan borrowers are offered an average of $145,788. That’s followed by $141,951 in New York and $135,170 in Vermont.

Over Half Of Americans (58%) Aren’t Happy with Their Banks U.S. banks’ customers are the happiest in the world, according to a new report released. The Banking Disruption Index from global digital transformation company GFT finds that 42% of U.S. consumers claim to be very happy with their bank. While U.S. banks can take comfort in the fact that their customers are happier than those in other countries, the Banking Disruption Index also warns of the majority (58%) who claim their banks could be

doing more to ensure their complete satisfaction.

Traditional banks are still figuring out their roles in a new ecosystem that now includes fintechs and digital challengers who are vying for the same customers. With so many new financial experiences to choose from, even banks that have dominated the market for years are questioning where to put their focus in order to win—and hold onto—customers. These challenges have been exacerbated by recent events, such as the collapse of Silicon Valley Bank, that have called the entire financial industry’s stability into question.

The Banking Disruption Index reveals a distinct correlation between Americans’ relatively high level of satisfaction with their banks and their increased trust in banks over the past year. It also highlights opportunities for banks to strengthen their less satisfied customer base with trust-building features.

In the U.S., liking banks is an effect of trusting banks. When asked to rate their level of trust in banks compared to a year ago, half (50%) of Americans said that their trust in banks remains the same. Notably, more than a quarter (28%) trust banks even more now than last year.

High consumer trust is due in large part to secure, regulated experiences that digital challengers can’t offer. For instance, being insured by the Federal Deposit Insurance Corporation (FDIC) is one of the most important factors that U.S. consumers say establishes their trust in a bank (39%).

Especially during economic uncertainties, transparent, supportive banking experiences can build trust.

Forty percent (40%) of Americans say that low or no banking fees lead them to put trust in a bank, along with being able to reach customer service 24/7 (32%).

Sign up to stay in touch.

This is a pretty confusing time to be a community banker. Regulation is supposed to be easing up, but there’s little evidence that the rules—or the mountains of paperwork—are getting any less voluminous. Is the lending market healthy, or getting ready for an implosion? Do customers want personal service, or app-based applications? Will fintech competitors upend the traditional banking model?

And on, and on...

It’s why the leaders of community banks and credit unions need a great network.

They need knowledgeable advisors and industry partners.

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