Maryland Banker 1Q 2013

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FIRST QUARTER 2013

b a n k e r MBA’S TRIP TO

WASHINGTON YIELDS IMMEDIATE RESULTS

THE OFFICIAL PUBLICATION OF THE MARYLAND BANKERS ASSOCIATION

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Chairman Michael L. Middleton Chairman & CEO Community Bank of Tri-County

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b a n k e r MBA’S TRIP TO

WASHINGTON YIELDS IMMEDIATE RESULTS

Chairman-Elect Robert A. DeAlmeida President & CEO Hamilton Bank

Vice Chairman John A. Scaldara, Jr. Chairman, President & CEO The Columbia Bank

Contents

THE OFFICIAL PUBLICATION OF THE MARYLAND BANKERS ASSOCIATION

Past Chairman Mary Ann Scully Chairman, President & CEO Howard Bank President & CEO Kathleen M. Murphy

FIRST QUARTER 2013

186 Duke of Gloucester St. Annapolis, MD 21401 410-269-5977 / 800-327-5977 www.mdbankers.com

Maryland Bankers Association

Publication Editor Cynthia L. Gentilcore Maryland Bankers Association

Board of Directors George J. Behr, Jr. President, Arundel Federal Savings Bank Andrew M. Bertamini Regional President, Maryland Market, Wells Fargo Bank, N.A. James R. Bosley, Jr. President & CEO, Farmers & Merchants Bank Ralph W. Emerson, Jr. Senior Vice President, M&T Bank Raymond W. Hamm, Jr. Executive Vice President, PNC Bank, N.A. Michael E. Hough CEO of Maryland Division, Susquehanna Bank Kim Liddell Chairman, President & CEO, The National Bank of Cambridge Michael G. Livingston President & CEO, The Bank of Glen Burnie Philip E. Logan President, Chairman and CEO, Slavie Federal Savings Bank Carissa L. Rodeheaver, CPA, CFP Executive Vice President & CFO, First United Bank & Trust Daniel J. Schrider President & CEO, Sandy Spring Bank Raymond M. Thompson President & CEO, Calvin B. Taylor Banking Company Kelly Whitley Vice President, State Government Relations, Bank of America J. Scott Wilfong Chairman, President & CEO, SunTrust Bank, GW/MD

12 cover What an Outcome!

MBA’s Annual Washington Visit Results in Maryland Delegation Letter of Concern on Basel III

2012 Financial Education Awards

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message from the chairman Together We Are Stronger 5 message from the president Two Powerful Words

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washington update Making a Difference Every Day

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Next Leaders in Banking

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17 First Quarter 2013 | 3

2012 Financial Education Awards In the photos below, the following officials pose with the 2012 Financial Education Awards winners. On the left in every photo is Mark Kaufman, commissioner of financial regulation; second from left, Mike Middleton, MBA chairman and chairman and CEO of Community Bank of Tri-County; and on the right is Kathleen Murphy, president and CEO, Maryland Bankers Association. In each photo, the honoree is second from the right.

2012 Award winners and participants.

Second from right: Judann Culver, compliance officer, The National Bank of Cambridge. The National Bank of Cambridge was awarded first place in the adults and senior financial education award category.

Second from right: Sally Proto, district manager, Capital One Bank. Capital One Bank was awarded second place in the young adults financial education award category.

Second from right: Sandy Berna, assistant vice president and district manager, Baltimore County Savings Bank. Baltimore County Savings Bank was awarded second place in the schoolage children (bank assets less than $1 billion) financial education award category.

The ninth annual Financial Education Awards were held at BankNext on Friday, Nov. 9 at the BWI Marriott in Linthicum. These prestigious awards, bestowed by MBA’s Financial Education Council, were introduced by the Maryland Bankers Association (MBA) in 2004 to recognize the outstanding efforts of our member banks who are actively engaged in financial education outreach across Maryland.

It is because of the work of the MBA Financial Education Council over the past nine years that this program has been such a big success!

MBA Financial Education Council Members John Scaldara Financial Education Council Chairman Chairman, President & CEO The Columbia Bank Cathy Coughlin Vice President, Director of Human Resources Old Line Bank Sherrice Davis Vice President, CRA Officer M&T Bank Lisia Franze Vice President, Regional Branch Administrator Susquehanna Bank

Second from right: Hillary Theriault, vice president and director of marketing, Community Bank of Tri-County; Lisa Monthley, senior vice president and chief deposit officer, New Windsor State Bank. Community Bank of Tri-County and New Windsor State Bank tied for first place in the school-age children (bank assets less than $1 billion) financial education award category.

Lori Frazier Assistant Vice President Susquehanna Bank

Dana Hall Training & Recruiting Officer Industrial Bank Brenda Keefer Regional Credit Support Specialist Susquehanna Bancshares, Inc. Karen Kokernak Senior Economic Education Specialist Federal Reserve Bank Baltimore Branch Lisa Monthley Senior Vice President Chief Deposit Officer New Windsor State Bank Roger Powell Managing Director Janney Montgomery Scott LLC

Jennifer Rapacki Audit Manager CohnReznick Erin Shoop Accountant Smith Elliott Kearns & Company, LLC Gail Smith Executive Vice President & COO Chesapeake Bank of Maryland Barbara Sumney Community Reinvestment Officer The Columbia Bank Emmyrich Vicente Vice President, Branch Manager III PNC Bank, N.A.

continued on page 6

4 | The Maryland Banker

Message from the Chairman MICHAEL L. MIDDLETON

| MBA CHAIRMAN CHAIRMAN & CEO COMMUNITY BANK OF TRI-COUNTY

Together We Are Stronger

W

ith the presidential election finally past us, we know that wholesale roll-back of the Dodd-Frank Act and the resulting regulations is off the table, making room for fine-tuning the pending and not-yet-drafted regulations. The 2013 Maryland General Assembly session is due to start very soon and the MBA, with its members, will continue the educational process that must occur to result in legislation that does not unduly hamper our ability to serve our clients and communities.

This joint letter is not an insignificant action – we cannot recall such a joint letter in the past on any banking issue.

One of our MBA board members told me recently that bankers would rather be a part of the MBA in order to harness our collective strength against industry-adverse laws, than pay the cost of compliance for detrimental legislation that would result if not for the efforts of our Association. All of us have felt the impact of new laws from state and federal policy-makers.

Helping our elected officials see their goals through the eyes of their local banker can make all the difference.

Case in point: During the MBA’s 2012 Washington Visit, nearly 40 bankers appealed to Maryland’s Congressional representatives and senators to weigh in with the regulators on the far-reaching impact of the proposed Basel III and Standardized Approach notice of proposed rules. We specifically

asked Minority Whip Steny Hoyer, my member of Congress, to spearhead a joint letter from the entire Maryland delegation to the banking agencies urging them to consider the impact of the proposed capital rules on traditional banks. In doing so, we provided some real-life examples of what the proposals would mean to our ability to lend and to meet the credit needs in our communities.

We also shared our concern that some banks were not comfortable submitting comment letters for fear of spotlighting the effect of the proposals on their capital positions. We mentioned that the Trust Preferred Securities deal carefully negotiated by Congress in the Dodd-Frank Act was being jettisoned by the regulators in these capital proposals. Those became pretty compelling points to make. We were gratified when we learned that Hoyer agreed to take up the effort for a joint letter signed by Sen. Barbara Mikulski, Sen. Ben Cardin and the eight House members from Maryland. This joint letter is not an insignificant action – we cannot recall such a joint letter in the past on any banking issue.

Suffice to say, Maryland’s delegation came to the conclusion that they should weigh in, because our members were compelling in their appeal. Couple that with the relentless interaction our public policy team has with members of Congress and their banking staff all year long and it’s a productive outcome. When you see our senators or your representative, please thank them for taking a stand for us and for Maryland’s communities.

Effective advocacy is MBA’s top priority. The road ahead on the Basel III and Standardized Approach rules has yet to be determined. It is a very real reminder that what we do as an industry, on our own and collectively with our Association, does make a difference. I challenge you to get involved. Your bank will benefit; your industry will benefit; your Association will benefit.

Together we are stronger.

■ Mike Middleton is the chairman of the Maryland Bankers Association. Reach him by email at mikemid@cbtc.com.

First Quarter 2013 | 5

2012 FINANCIAL EDUCATION AWARDS continued from page 4

Second from right: Frank McNeil, assistant vice president and community consultant, Greater Maryland Community Development Banking, PNC Bank, N.A. PNC Bank received second place in the school-age children (bank assets greater than $1 billion) financial education award category, and tied for second place in the adults and seniors financial education award category.

The MBA’s Financial Education Awards are given in three categories for programs and activities that reinforce financial education concepts, like developing good savings, budgeting techniques, money management skills, establishing and managing credit, understanding mortgage and consumer lending products, and a variety of consumer protection practices.

The three award categories are: • school-aged children • young adults • adults and seniors

Second from right: Monica Mitchell, senior relationship manager, Wells Fargo Bank, N.A. Wells Fargo Bank received three awards in the following categories: first place, school-age children (bank assets greater than $1 billion); first place, young adults; and tied for second place in the adults and seniors financial education award categories.

This year 22 banks participated in the awards program, submitting a total of 36 entries.

The financial education award entries were reviewed by MBA’s Financial Education Council based on various criteria, including program, presentation materials, community impact, financial literacy concepts, and development.

The following are the 2012 MBA Financial Education Award winners: School-Age Children (Bank assets less than $1 billion) First Place (tie) Community Bank of Tri-County New Windsor State Bank Second Place Baltimore County Savings Bank School-Age Children (Bank assets greater than $1 billion) First Place Wells Fargo Bank, N.A. Second Place PNC Bank, N.A. Young Adults First Place Wells Fargo Bank, N.A. Second Place Capital One Bank Adults and Seniors First Place The National Bank of Cambridge Second Place (tie) PNC Bank, N.A. Wells Fargo Bank, N.A. A special recognition for the banks who submitted entries this year and who are improving financial education in Maryland’s communities:

Seeking Enforcement Litigation Deputy The Office of Enforcement at the Consumer Financial Protection Bureau (CFPB) seeks to hire a Litigation Deputy to serve on its senior leadership team.

As one of four Litigation Deputies reporting directly to the Enforcement Director, this Litigation Deputy will primarily: • Manage 20-30 litigation attorneys and paralegals who conduct investigations and litigate cases, as well as support compliance examinations, concerning depository and non-depository entities.

• Oversee issue teams analyzing potential matters for Enforcement action relating to consumer financial products and services such as credit cards, deposit accounts, payday lending, and money services.

• Serve as a member of the Office’s senior team in planning, directing, coordinating and evaluating CFPB’s Enforcement programs.

Successful candidates will have the following skills and experiences: • 5+ years experience in-house at a depository institution, handling legal or compliance functions relating to Federal Consumer Financial Laws.

• Demonstrated capacity to manage a complex assortment of simultaneously pending investigations and litigation.

Interested candidates should send a resume and cover letter to CFPBOfficeofEnforcement-Recruiting@cfpb.gov.

6 | The Maryland Banker

Calvin B. Taylor Banking Company Carroll Community Bank Carrollton Bank Fairmount Bank Fraternity Federal Savings and Loan Association Hamilton Bank M&T Bank Old Line Bank Prince George’s Federal Savings Bank Queenstown Bank of Maryland Sandy Spring Bank Severn Savings Bank SunTrust Bank The Columbia Bank The Talbot Bank of Easton, Maryland Congratulations to this year’s 2012 Financial Education award winners and participants. They should all be commended for the work they do year-round to improve the financial education skills in their communities.

Message from the President KATHLEEN M. MURPHY | PRESIDENT & CEO

MARYLAND BANKERS ASSOCIATION

Two Powerful Words

T

hank you. As we begin another year, I can’t think of a better focus for this column than to express my deepest appreciation to those who make the Maryland Bankers Association the strong organization it is today.

First and foremost, our members. Their unwavering support of their Association through their financial support, time and talents has never been more apparent, and for this, we are deeply grateful. The policy representation we provide for our members is funded by member dues. The issues have grown and the stakes continue to get higher. We are most grateful for our members embracing a new funding structure

As we begin another year, I can’t think of a better focus for this column than to express my deepest appreciation to those who make the Maryland Bankers Association the strong organization it is today. created by the Association’s Board of Directors last year. It will enable us to continue to be most effective in carrying out the advocacy work for Maryland’s banking industry. The Association’s professional development offerings and member services are seeing greater involvement these days. Our members are telling us the offerings are timely and relevant by encouraging their associates to participate. Engagement in these programs provides another key funding source for the Association’s work.

Our leadership. Guided by dedicated leaders who make up the Association’s Executive Committee and Board of Directors, the Association has been steady yet strategic as we assess where the industry is today and prepare for the future. There are associations for every profession and issue you can imagine. Our Association leaders remind me every day that there is no finer industry and there are no finer individuals than those who do the noble work of banking.

Our volunteers. The magic of an Association occurs when people with common goals and unique needs come together to build strategies and resources to serve a member need. This takes time and commitment on behalf of those who volunteer their time. It works because the solution – be it legislation to be introduced or amended, a conference or workshop to be created, a game plan to be developed for addressing the media, an award program to recognize the industry’s next leaders or financial education providers, or a convention to be planned – is collaborative and is more impactful when creative minds come together.

Volunteers who serve on our councils, committees and work groups are the lifeblood of the MBA – we would not be the organization we are without them.

Our team. When I think of the dedicated association management professionals who, together with our leadership and volunteers, carry out the goals and objectives of the MBA, I see positive, can-do, memberfocused, creative, capable, dedicated individuals who strive for excellence.

The MBA team – 6.5 strong today – collectively has nearly 60 years of combined tenure at the Association. I am proud of my colleagues who come to work every day excited to face the opportunities before them and that lie ahead.

Times are different today. Yet what hasn’t changed is the resilience our members demonstrate in their banks and their communities. This same resilience is seen in their outlook on the challenges that face them and that, in turn, have faced the Association. That resilience is seen in our members’ engagement in MBA and is reflected in the MBA team.

I realize they are just two small words, yet they are two of the most powerful words – thank you. As we launch a new year, I begin by saying thank you for your contributions and for seeing the power of “we” – because together we are all stronger.

■ It’s my honor to serve this great industry. Please contact me at any time to discuss industry issues of importance to you at kmurphy@mdbankers.com or 443-837-1601.

First Quarter 2013 | 7

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For more information on Maryland Bank Services Preferred Providers contact Cindy Gentilcore at 443-837-1602 or cgentilcore@mdbankers.com.

Washington Update FRANK KEATING

| PRESIDENT AND CEO AMERICAN BANKERS ASSOCIATION

Making a Difference Every Day

E

very year, the fourth Saturday of October is designated “Make a Difference Day.” This event, which was started in 1992 by USA Weekend magazine, encourages Americans to get involved by helping others through volunteer activities.

While one day of volunteerism is a wonderful thing, we know that banks make a difference in their communities every day of the year. We celebrated that fact at the ABA Annual Convention in San Diego with our Habitat for Humanity Build and our annual Community Commitment Awards.

The Habitat build, which is sponsored each year by the ABA Housing Partners Foundation, shines a national spotlight on what banks across the country do locally to support housing. As with so many charitable projects, it was made possible by donations of time, talent and treasures from banks and their employees.

More than 100 volunteers on-site wielded hammers, paint brushes and saws to help put a hard-working family in a home to call their own. Bankers building homes may not get the same media attention as foreclosures, but the build helped to demonstrate – to the family, neighbors, mayor and others in that corner of San Diego – how committed the men and women who make up the banking industry are to serving others.

That commitment also took center stage – literally – when we recognized five banks with ABA’s new Community Commitment Awards. The awards, a successor to our Community Bank Awards program, honored banks for their achievements in five categories: Affordable Housing; Economic Development; Small Business Lending; and Financial Volunteerism and Philanthropy. This year’s winners were: • Doral Bank, San Juan, Puerto Rico, for its d Hogares (of Homes) program, which has helped more than 25,000 families secure their home. The initiative includes a loss-mitigation program as well as a home donation program, which helps families have or keep a home during tough economic times.

• Citibank, New York, N.Y., for the Citi Community Development partnership with The WorkPlace to expand its Platform to Employment (P2E) program. Thanks to Citi, the P2E program, which offers counseling, skills assessment and job matching services to put the long-term unemployed back to work, now includes financial recovery training to address the personal finance challenges experienced due to long-term unemployment.

• U.S. Bank, Minneapolis, Minn., for its Community Restoration Funds established in Milwaukee, Chicago and Minneapolis. This $1 million revolving loan commitment makes capital available to pre-approved neighborhood developers who work as a part of the Neighborhood Stabilization Program.

• Montecito Bank & Trust, Santa Barbara, Calif., for its “Banking on our Youth” program in which they partnered with local non-profit organizations and schools to offer expanded financial education classes. Offerings included a six-week summer financial literacy program for at-risk students and bilingual-parent workshops.

• Bank of Feather River, Yuba City, Calif., for its Happy Landings program, a welcome and orientation program offered six times a year for spouses of military members who have recently moved to Beale Air Force Base. The program makes military families feel welcome and introduces local businesses to new customers.

Yet another event in October spotlighted banks’ efforts to help their customers and communities succeed: the ABA Education Foundation’s Get Smart About Credit Day, which was Oct. 18.

More than 2,300 bankers in 450 communities across the country reached more than 130,000 young adults with critical information about how building good credit habits today will influence their future. To view the list of participating banks, visit www.aba.com/ ABAEF. I often say that a key indicator of a community’s health and vitality is the presence of a community bank and – most important – community bankers. They’re the ones providing a beacon of hope through their work, their can-do spirit of giving back and their passion for making their communities better places to live.

Bankers are the people who make sure – often quietly with little fanfare – that a community’s critical needs are met. Whether it’s supporting affordable housing, educating youth, or partnering with local businesses to build communities, bankers get it done and make a difference. Every day.

■ Email Frank Keating at keating@aba.com. © 2012 American Bankers Association. All rights reserved. Reprinted with permission.

In this issue, see MBA’s Financial Education Awards (page 4) and Maryland’s Next Leaders in Banking (page 17), to see what MBA members are doing within their institutions, schools and communities, in making a difference!

First Quarter 2013 | 9

News &

Ellen Ambrose

Neil D. McHugh

Steve Wientge

Notes

Lisa Swan

Philmer Rohrbaugh

Jeffrey R. Hooton

Members on the Move Bank of America named David Millman as Maryland and Baltimore market president for the company. Millman replaces retired William Couper, who served as Bank of America mid-Atlantic president.

Millman joined Bank of America in 1981 and has held a number of leadership positions in consumer banking and the Global Commercial Bank. In his new role, Millman will serve as the company’s enterprise leader for Maryland and Baltimore. He will work with company leaders across the state to help the bank deliver a wide range of global financial services to more individuals and businesses locally as well as deepen relationships with existing customers. He will also oversee corporate social responsibility activities including philanthropic giving, community development lending and investing, environmental initiatives, diversity efforts, arts and culture projects, and employee volunteerism. In addition to his responsibilities as Maryland and Baltimore market president, Millman is the market executive for business banking for Greater Maryland.

TD Bank named Ellen Ambrose the store manager of the Arnold store. An assistant vice president, she is responsible for new business development, consumer and business lending, managing personnel and overseeing the day-to-day operations at the store serving customers throughout the area. Ambrose has more than 30 years of banking experience.

TD Bank promoted Neil D. McHugh to district sales manager for treasury management services in Vienna, Va. He will continue to be responsible for driving 10 | The Maryland Banker

the growth of the bank’s commercial card solution – the TD Commercial Plus Card – and also manage the treasury management services sales team in the mid-South region, including the District of Columbia, Maryland, Virginia and Delaware. He joined TD Bank in 2002 and served as a treasury management sales officer in metro D.C. before his most recent position as commercial card sales manager.

The Columbia Bank named Steve Wientge as the branch manager of the new Waugh Chapel office and Lisa Swan as their branch manager of the new Seven Oaks office. Wientge has been with the bank since 2009 and was most recently the branch manager at the Bowie branch. Swan has been with the bank since 2003 and was most recently the branch manager of the Oakland Mills branch.

Philmer H. Rohrbaugh joins Fulton Financial Corporation as senior executive vice president and chief risk officer.

Rohrbaugh will oversee all risk management activities of the corporation, including operational, market, financial and reputational risk. He will have direct oversight of the company’s compliance and loan review areas as well as information security and vendor management activities.

Fulton Financial Corporation also promoted Jeffrey R. Hooton to senior vice president of compensation, benefits and human resource systems. He will be responsible for overseeing these areas in the department. Hooton joined the corporation in 2007 and most recently held the position of manager of compensation.

Sandy Spring Bancorp, Inc., the parent company of Sandy Spring Bank, elected Ralph F. Boyd Jr., former president and CEO of the Freddie Mac Foundation, and Mei Xu, president and co-founder of Pacific Trade International, Inc., to its board of directors in August 2012.

Ralph Boyd is a Harvard Law School graduate and previously served as assistant attorney general for civil rights under President George W. Bush and as executive vice president and general counsel of Freddie Mac. In 2005, Boyd became the president and CEO of the Freddie Mac Foundation. He retired in the spring of 2012. He currently serves on the board of DirecTV and chairs its Audit Committee. Among other distinctions, Boyd also serves as a trustee for the National Housing Partnership Foundation, as a member of the board of the American Association for People with Disabilities, and as a director on the regional and national boards of Easter Seals.

Mei Xu co-founded Pacific Trade International, Inc., a fully integrated global home fragrance and décor company, with her husband in 1994. Headquartered in Rockville, PTI owns and operates Chesapeake Bay Candle, a leading home fragrance brand that draws inspiration from Maryland’s shoreline, and Blissliving Home, a premium interior lifestyle brand. She is also a board member of the World Affairs Council, a leading nonprofit, non-partisan forum for global education and international affairs. Earlier this year, she was honored by the World Trade Center Institute with the Maryland International Business Leadership Award and also inducted into the Enterprising Women Hall of Fame by Enterprising Women magazine.

Members in the Community PNC Bank Celebrates Five Years in Maryland

Pictured from left to right: Michael McClung, vice president and branch administrator, CFG Community Bank; Karen Deeley, MacKenzie Commercial Real Estate; board member O. James Talbott II; Curtis Pope, branch manager, CFG Community Bank; Gary Rever, CEO, CFG Community Bank; Tim Sanders, president, Capital Lending and Mortgage Group; and Joy Giordano, executive director, Fells Point Main Street Association.

CFG Community Bank Relocates In October CFG Community Bank held a ribbon-cutting ceremony to celebrate the relocation of its Baltimore branch in the Fells Point area. The new full-service branch will serve retail and commercial customers throughout Baltimore. The Fells Point branch will be headed by Curtis Pope, who will serve as manager.

Michael McClung, vice president and branch administrator, will also oversee the Fells Point location. “The new location is ideally situated in the center of Fells Point and provides the branch with an exciting opportunity to help meet the everyday banking needs of the individuals, families and small businesses of Fells Point.” said Gary Rever, president of CFG Community Bank.

In September 2012, PNC Bank celebrated five years of growth in Greater Maryland.

Since the 2007 conversion of Mercantile Bankshares, PNC has made a considerable impact to the region in terms of business growth and investing in local communities.

PNC commemorated its five-year anniversary and demonstrated its ongoing commitment to the region with a new regional headquarters, the PNC Legacy Project historical display and the unveiling of Maryland’s largest “living wall.”

COMMUNITY IMPACT Since 2007, PNC has invested more than $18 million in Greater Maryland through grants and support to nonprofit organizations. As part of “Grow Up Great,” PNC’s $350 million, multiyear initiative to help prepare children for success in school and life, local PNC employees have volunteered nearly 19,000 hours at preschool programs. Through its Community Development Banking efforts, PNC is helping to boost the quality of life in low-and-moderate income neighborhoods through affordable housing, economic revitalization and customized financial solutions. PNC employees have presented more than 200 financial education classes to teach budgeting, savings and other aspects of smart money management.

Revere Bank Celebrates Five Years Revere Bank was established in November 2007 by a group of prominent business leaders in the Baltimore-Washington corridor, and in 2012 Revere Bank proudly celebrated its fifth anniversary.

PNC LEGACY PROJECT HONORS BANKING PREDECESSORS Following the acquisition of Mercantile Bankshares, the PNC Legacy Project was created to honor, document and

preserve the history of predecessor banks, the employees who guided them and the communities they served. At PNC’s regional headquarters in Baltimore, the stories of these banks are told through museumquality exhibits featuring rare and historic documents and artifacts. The collection includes images from the Great Baltimore Fire of 1904, an adding machine dating to 1895 and historical documents from the Civil War, including a copy of the ransom note for the city of Frederick.

PNC “LIVING WALL” PLANTS ROOTS AT REGIONAL HEADQUARTERS Emblematic of its commitment to green building, PNC has installed the largest “living wall” in Maryland on its new regional headquarters building. The wall is 84 feet high by 24 feet wide and covers 2,016 square feet. It consists of 504 vertical planters made of recyclable aluminum, each filled with hardy ground cover plants. The wall adds a vibrant, visual element to the building façade while contributing to the energy efficiency of the building.

“Through hiring, lending, volunteerism and community investments, PNC is committed to Greater Maryland,” said Laura Gamble, regional president, PNC Bank, Greater Maryland. “Our ongoing hiring and business expansion combined with our new regional headquarters exemplify our dedication to growth in this region and helping to create vibrant, thriving communities.”

First Quarter 2013 | 11

Above left: MBA member bankers attend a briefing held by the American Bankers Association (ABA) and the Independent Community Bankers of America (ICBA).

Above right: MBA member bankers meet with Congressman Steny Hoyer (D-5), Minority Whip of the U.S. House of Representatives.

WHAT AN

OUTCOME! MBA’s Annual Washington Visit Results in Maryland Delegation Letter of Concern on Basel III

In early October 2012, the MBA’s Government Relations team hosted a record breaking number of bankers – over 40 – at our annual Washington Visit. This impressive turnout of bankers represented a variety of backgrounds and communities across Maryland.

MBA member attendance at this critical event has steadily grown each year. Our increasing numbers, consistent participation by industry leaders and strong messaging (advocacy efforts) have made a big difference to policymakers and their staff.

According to Ann Jacobs, legislative director for Congressman Dutch Ruppersberger (D-2), “I love when the MD Bankers Association brings their members to meet with me and Congressman Ruppersberger! In Congress we examine issues at the macro level and we can’t always see what impact our legislation will have when it is implemented. So I benefit tremendously when our local folks take the time to explain the impact of federal actions on their operations. And I also like getting to know our local bankers. Some of them have turned into great resources for me. I reach out to them regularly to get their opinions on pending bills and amendments.”

Noting that she has worked on Capitol Hill for a long time, Jacobs also emphasized the effectiveness of MBA’s lobbying work. She highlighted some of MBA’s key strengths as: always providing policy makers with the information they need to make decisions and using the right kind outreach – at the right time – and never wasting anyone’s time. In a follow-up conversation with Jacobs, we were extremely gratified when she referred to MBA as “the most effective Maryland lobby there is.”

MBA’s two-day Washington Visit event included meetings with Maryland’s Congressional members and their staff, federal regulatory agencies; Federal Reserve Board of Governors, Federal Deposit

Insurance Corporation (FDIC) and the Consumer Financial Protection Bureau (CFPB); and briefings from the American Bankers Association (ABA) and the Independent Community Bankers of America (ICBA).

MBA and member bankers addressed key legislative priorities and new regulatory proposals, such as Basel III. We also emphasized how difficult it is for Maryland banks to operate and effectively serve our communities with the current, overly burdensome regulatory environment.

The timing of MBA’S 2012 Washington visit could not have been better. With the Oct. 22 comment letter deadline looming on the Basel III and Standardized Approach proposals (the proposals), it was a critical time to put this issue front and center with delegation members and their staff. And MBA’s advocacy efforts had real results. The entire Maryalnd Congressional delegation co-signed a letter submitted to the regulators expressing concerns about the proposals. This letter was a direct result of our meeting with Minority Whip Steny Hoyer (D-5) and the other delegation offices during the Washington Visit. Read more about this impressive outcome in the Basel III and Standardized Approach Proposals section of this article.

Following is a snapshot of the public relations, legislative and regulatory priorities discussed during MBA’s 2012 Annual Washington Visit.

Promoting Positive Image for Maryland Banking Industry The banking industry continues, despite our best efforts, to be battered by negative media reports. All too often, the media paints players in the financial industry with a broad bush – using the word “bank” to describe Wall Street investment companies, mortgage continued on page 14

12 | The Maryland Banker

Maryland Banking Industry WHO WE ARE •• Maryland Bankers Association represents traditional, FDIC-insured banks and savings and loans with branches in Maryland.

•• There are 131 FDIC-insured banks, many of which are small businesses themselves, serving cities and towns across Maryland.

•• There are 1,800-plus bank branches in Maryland.

•• Maryland banks employ over 45,000 people.

•• The vast majority of Maryland banks (96 percent) are “well-capitalized,” the highest designation possible. This is up from the low point of 92 percent, as of the second quarter of 2009.

•• Maryland-headquartered banks now number 81, down 15 percent from year-end 2008. This decrease resulted from mergers, bank failures, and collapsing of bank charters by some bank holding companies.

•• Maryland banks are weathering the storm. For the nine months ending 9/30/2012, 16 banks, or 20 percent, reported a loss, representing a favorable trend since 2009, when 46 percent of Maryland-headquartered banks reported a loss.

MARYLAND LENDING TRENDS AND DEPOSIT GROWTH •• Maryland banks are lending to qualified borrowers: Maryland-headquartered banks loan growth for the 12 months ending September 30, 2012, increased 4.01 percent. ·· This compares favorably to loan growth of 3.87 percent for the 12 months ending June 30, 2012. ·· The largest increases were in commercial real estate, followed by residential. ·· MBA members also work closely with the Small Business Administration to offer loans to borrowers that would not qualify under a bank’s normal underwriting criteria.

•• Customers are demonstrating confidence that FDIC-insured banks continue to be a safe place to keep their money. Maryland banks hold over $116 billion in deposits.

•• Deposits in Maryland banks increased 4.7 percent year over year as of 12/31/2011.

Top: MBA member bankers meet Congressman Steny Hoyer (D-5) in the Minority Whip Conference Room located in the U.S. Capitol. Shaking hands with Congressman Hoyer is Bob DeAlmeida, president and CEO, Hamilton Bank.

MARYLAND BANKERS’ COMMITMENT TO COMMUNITY • Community Service: According to 2011 MBA’s Lending and Community Service Survey, Maryland banks and/or Maryland bank employees contributed: ·· Nearly $14.4 million to over 3,400 Maryland community and charitable organizations. ·· Over 97,574 hours of volunteer time to Maryland community and charitable organizations – about 8,131 hours per month.

• Financial Literacy: Within Maryland, banks conduct a variety of financial education sessions in public and private schools, religious organizations, and civic/social groups. Financial literacy is a top priority for our members. ·· Over the past three years, MBA member banks have completed in excess of 2,900 financial education presentations reaching over 46,000 students and/or residents across Maryland.

• Homeownership Preservation: Maryland banks are committed to helping customers preserve homeownership and avoid foreclosure.

Foreclosure is a last resort.

Center: MBA member Jim Brown, senior director, state government relations, Capital One, N.A. (center) engages in conversation prior to the ABA/ICBA Briefing with ABA’s Chief of Staff Jeffrey Owen (left) and ABA’s Executive Vice President, State Association Alliance/Bank PAC Gary Fields (right).

Bottom: Shaking hands with Congressman Hoyer is Rick Miller, president and CEO, Woodsboro Bank.

First Quarter 2013 | 13

2012 Washington Visit Participating Agencies and Associations

WHAT AN OUTCOME!

The MBA would like to thank the following representatives who met with the group during the 2012 Washington Visit:

brokers, and even the shadow lending industry. A primary goal of each Washington Visit, specifically this year, is to acquaint Maryland’s Congressional Members and regulatory agencies with individual bankers and banks, and how each bank serves Maryland’s communities and consumers. No one makes a better advocate for banking issues than a banker and we are very proud to provide our members with an opportunity to shine. The information MBA’s member bankers shared on their individual banks, impact to communities, businesses and customers was powerful and made an impression.

Independent Community Bankers of America Paul Merski, Executive Vice President & Chief Economist Karen Thomas, Senior Executive Vice President, Government Relations and Public Policy John McNair, Senior Vice President, Mid-Atlantic Region Joe Schneider, Vice President, State Relations American Bankers Association James Ballentine, Executive Vice President of Congressional Relations and Political Affairs Jeff Owen, Chief of Staff Gary Fields, Senior Vice President, State Associations Keith Leggett, Senior Economist Ginny O’Neill, Senior Counsel, Regulatory Compliance Joe Pigg, Vice President and Senior Counsel, Housing & Real Estate Policy Rod Alba, Vice President and Senior Regulatory Counsel, Mortgage Finance and Regulation Congressional Visits Senator Ben Cardin (D) Femeia Adamson, Bank Policy Advisor

Congressman John Sarbanes (D-3) Raymond O’Mara III, Bank Policy Advisor

Senator Barbara Mikulski (D) Aaron Edelman, Senior Legislative Aide

Congresswoman Donna Edwards (D-4) William Roberts, Bank Policy Advisor

Congressman Andy Harris (R-1) Kevin Reigrut, Chief of Staff Jane Williams, Bank Policy Advisor

Minority Whip Steny Hoyer (D-5) John Hughes, Senior Policy Advisor

Congressman Dutch Ruppersberger (D-2) Ann Jacobs, Legislative Director

Congressman Elijah E. Cummings (D-7) Davida Walsh, Bank Policy Advisor

Federal Deposit Insurance Corporation (FDIC) Martin Gruenberg, Acting Chairman Barbara Ryan, Chief of Staff Jonathan Miller, Deputy Director, SCP Rick Osterman, Acting General Counsel, Legal Matt Green, Associate Director, DIR Tom Bonnette, Special Assistant to the CFO Rickey McCullough, Associate Ombudsman Andy Jiminez, Legislative Attorney and Advisor, OLA Jim Watkins, Deputy Director, RMS Rich Brown, Associate Director, DIR Sharon Yore, Associate Director, DRR John Ganzi, Senior Risk Officer, OCRM Steve Ledbetter, Associate Director, OCFI Consumer Financial Protection Bureau (CFPB) Bart Shapiro, Senior Advisor, Office of Community Banks and Credit Unions Gary Stein, Deposits Markets Program Manager Patty Avery, Financial Empowerment Specialist Federal Reserve Sarah Bloom Raskin, Member of the Board of Governors

14 | The Maryland Banker

continued from page 12

Raising Concerns about Basel III and Standardized Approach Proposals On June 7, 2012, the Federal Reserve Board approved three proposals implementing the Basel III and Standardized Approach Proposals (the proposals), which could fundamentally change how banks calculate their regulatory capital requirements. The proposals would increase the minimum levels of required capital, narrow the definition of capital, and increase the risk weight assets for various asset classes. The proposals include several items of great concern.

The Maryland banking industry is particularly concerned with the negative impact the proposals would have on their bank’s ability to serve their customers and community.

The Federal Reserve, FDIC, and the Office of the Comptroller of the Currency (OCC) extended the comment period deadline to Oct. 22, 2012. The federal banking regulators received over 1,500 comment letters nationwide. Comment letters from MBA and many of our member banks are included in that number. Our letters effectively convey the impact the proposals would have on Maryland banks’ products and services. In addition, the Maryland delegation’s Basel III comment letter is being used as a model for other states on this matter, illustrating that Basel III is not a partisan issue, and urging other states’ Congressional members to unite together and to send similar letters to the federal regulators.

Feedback from Federal Reserve Governor Sarah Raskin and FDIC Chairman Martin Gruenberg Maryland bankers want to be sure that they are able to continue to meet the needs of their communities. This is the message the MBA conveyed when meeting with Governor Raskin and Chairman of the FDIC Martin Gruenberg. A strong economy is dependent on job growth and job growth is dependent on availability of capital.

We want to be sure that the new rules do not reduce the ability of Maryland’s banks to provide this capital.

MBA and our member bankers have an excellent relationship with Raskin, who served as Maryland’s Commissioner of Financial Regulation from 2007 to 2010. She has an in-depth understanding of Maryland’s banks and bankers. Raskin was refreshingly candid during our meeting – typically governors are hesitant to share their personal perspectives on issues that are open for comment.

Emphasizing that her perspectives were her own and not the position of the Federal Reserve, Raskin said that she believed that there was a need for enhanced capital levels, but not the complexity of capital that would be created by the proposals. She also questioned whether the proposed capital weighting system was the

most appropriate and best way to achieve the objective, or if specific risk concerns could be addressed through supervision.

Bankers expressed strong concerns that every one of the product lines offered by community banks would be impacted by the proposals, which would translate into higher costs and/or reduced product offerings for customers. Raskin understood and appreciated this concern. She also noted that the Trust Preferred Securities (TruPS) that were grandfathered under the Collins Amendment in the Dodd-Frank Act would be upended by the proposals. She questioned what this would do to capital levels and expressed concerns about forcing this through without opening other avenues of capital to replace TruPS. MBA also has a very good relationship with Chairman Gruenberg, who got to know many of our members during his role as Senior Counsel to Sen. Paul S. Sarbanes (D-MD) on the staff of the Senate Committee on Banking, Housing, and Urban Affairs from 1993 to 2005. During our meeting with Gruenberg, our members expressed very strong concerns about the impact of the proposals on their ability to continue lending – especially in the residential mortgage and commercial real estate lending areas. Concerns were raised on the TruPS issue as well as the ability of community banks to raise additional capital in the current, capital scarce environment. Like Raskin, Gruenberg emphasized the need for higher capital levels.

He also recognized the challenges the proposals present for residential mortgage lending. However, he said that based on the FDIC’s analysis – 96 percent of banks nationwide would not have a problem meeting the additional capital requirements included in the Proposals. This was a very concerning statement that demonstrates a real disconnect between the FDIC’s information and what MBA’s members are predicting based on their individual analysis of the proposals’ impact.

Entire Maryland Congressional Delegation Signs Letter Voicing Concerns about Basel III Along with expressing our concerns regarding Basel III to the federal banking agencies, MBA spoke with Maryland’s Congressional members about the proposals to raise awareness on this pressing issue.

During our meetings, MBA member bankers raised a series of pointed concerns about the proposals, in particular the arbitrary phase out of TruPS (that is in direct conflict with congressional intent, which grandfathered TruPS for institutions under $15 billion), the anticipated negative impact to lending, the complexity of the evaluation process, and the extreme difficulties of raising capital along the lines of what would be required in the proposals.

One of our big “asks” was to Congressman Steny Hoyer (D-5), Minority Whip of the U.S. House of Representatives, to spearhead a Maryland Congressional delegation letter to the federal agencies expressing their concerns with Basel III and the detrimental effect the proposals would have on Maryland constituents and communities. We were delighted when he agreed to champion the Maryland Delegation letter of concern. To have a member of House leadership initiate this effort was very compelling.

We could not have achieved this kind of an outcome without his support and the incredible work of his senior policy advisor, John Hughes. Similarly, we are incredibly appreciative of the support of our Maryland Delegation members and their staff. There was a very short time frame to develop and sign the delegation letter. Their concerns, dedication and involvement were critical in getting this letter completed. We greatly appreciate their efforts and support of this critical issue.

We also thank our members for helping to make the case on why the proposals are problematic and the anticipated direct impact to individuals and businesses, lending, and the Maryland economy. This outcome would not have been possible without the involvement of over 40 members in the meetings during MBA’s Washington Visit!

Key Issues Pushed by the MBA During the 2012 Washington Visit Opposing Expanded Credit Union Business Lending

Credit union business lending has been a critical issue on Capitol Hill for the past several years. The credit unions are pushing MBAopposed legislation (H.R.1418, S.509) in both the House and Senate that would raise the credit union member business lending (MBL) cap from the congressionally mandated 12.25 percent of assets to 27.5 percent of assets for eligible credit unions. In Maryland, the largest credit union only has 3.1 percent of its assets in business loans, well below the current commercial lending cap. Of the 106 credit unions operating in Maryland, 76 have 0 percent of their assets in business loans. Stated differently, 72 percent of all credit unions in Maryland have never made a business loan. The credit unions are attempting to convince Members of Congress that raising their lending cap will allow them to make $10 billion in additional loans and create more than 100,000 jobs.

The Senate sponsor, Sen. Mark Udall (D-CO), has been very aggressive in his attempts to attach the credit union bill to legislation moving through the senate and he has the support of Majority Leader Harry Reid (D-NV). MBA and member banks continue to advocate in opposition to this legislation, which was a topic of discussion during this year’s Washington Visit. MBA also opposes any attempt to combine this proposal with another bill in order to get it passed. To date, none of the Maryland Delegation members have signed onto the credit union business lending bill.

Supporting the Bank Examination Reform Bill Since the passage of Dodd-Frank, many banks have been under intense pressure from bank regulators during the examination process.

Bi-partisan legislation (H.R.3461, S.2160) has been introduced in the Senate and the House that would reform the examination process by ensuring that financial institutions receive timely examination reports, including full documentation of the information regulators used to make their determination, and providing new standards for examinations.

The new standards would include restricting the placement of commercial loans in nonaccrual status solely because collateral has deteriorated in value, and not requiring new appraisals on commercial loans unless new funds are involved. The bill would establish an Independent Office of Examination Ombudsman within the Federal Financial Institutions Examination Council (FFIEC), and would create a timely, independent, and fair process for financial institutions to appeal examination decisions free from retaliation from the prudential regulators. Not surprisingly, the legislation is opposed by the federal regulatory agencies.

At the time of MBA’s Washington Visit, not one of Maryland’s House Members had signed on in support or as a cosponsor of H.R. 3461 nor had Senator Cardin and Mikulski signed on to support S. 2160. We asked every one of the delegation offices to support this initiative. While we are hopeful that we made some inroads as to the need for this bill, Maryland delegation members have not yet committed to supporting the initiative. continued on page 16

First Quarter 2013 | 15

WHAT AN OUTCOME! continued from page 15

Advocating for an Extension the TAG Program The Transaction Account Guarantee (TAG) program currently provides unlimited FDIC insurance for non-interest bearing transaction accounts (including IOLTA accounts). According to the current law, the TAG program expires on Dec. 31, 2012, meaning coverage for the transaction accounts will revert to the limit for all deposit accounts, $250,000. Maryland banks have $4.6 billion in non-interest bearing deposit accounts, of which $2.3 billion (50.2 percent) are held in accounts greater than $250,000.

MBA and member bankers urged our Congressional members’ offices to quickly pass legislation to extend the TAG program for two more years. Failure to continue FDIC coverage of these accounts would create disruption and uncertainty in the banking system and for small businesses, municipalities, hospitals, and other entities that use these accounts to meet payroll and operational expenses.

We also advocated for an extension of the TAG program with the FDIC and asked the FDIC’s acting chairman Martin Gruenberg about his position on this issue. The FDIC enacted this program in 2008 and extended it twice in 2009 and then again in 2010. Explaining that the current TAG extension proposal lays in the hands of Congress, the acting chairman did not share his position on the issue.

Promoting Key Adjustments to Qualified Mortgage Ability to Repay Rule Title XIV of the Dodd-Frank Act requires that lenders meet an “ability to repay” test for all mortgage loans, effective in January 2013.

The intention is to improve underwriting to ensure that borrowers are getting only loans that they have a proven ability to repay. The qualified mortgage (QM) is a shorthand designation for a category of loans with underwriting characteristics and loan terms which are deemed to meet the ability to repay test. These are likely to be limited to loans with features like a 30-year term with a fixed rate and with documented underwriting. The CFPB has been charged with defining what features the QM must have. CFPB has not yet finalized the rulemaking, but is

expected to do so later this year. One of the major outstanding issues yet to be determined is how much legal certainty the QM will provide.

Considering the critical importance of the QM rule, MBA and our members strongly support a QM that meet three critical requirements, which we outlined and emphasized during our meeting with the CFPB in October: • The QM must be broadly defined to include the vast majority of very high quality loans being originated in today’s market.

• The product, documentation and underwriting requirements must be based on objective, bright line standards • Lenders and investors must be granted a clearly defined legal safe harbor from ability to repay litigation when they originate loans that meet the QM standards.

Maryland bankers state that a safe harbor is the only means of ensuring that as many borrowers as possible have ready access to the safest and most affordable credit options. The reality is that many banks will cease originating mortgage loans if provided with only a rebuttable presumption of compliance. Others will curtail their lending and make mortgages only to the highest qualified borrowers where risk of default is near zero. This will greatly limit consumer choice, particularly for lower income and rural consumers who have fewer financial resources and options available to them.

We raised these issues and concerns during our Washington Visit meetings – both with Congressional Delegation offices and with the CFPB. Interestingly, the CFPB specifically questioned how realistic bankers’ liability concerns were. CFPB representatives did not appear to appreciate the negative impact that the risk of being sued for one loan – or a small number of loans – has on banks and on lending.

Conclusion We would like to thank everyone who participated in MBA’s 2012 Washington Visit including member banks and bankers, ABA, ICBA, Maryland’s Congressional delegation and regulatory agencies. MBA’s members’ dedication and advocacy play a major role in keeping the banking industry in Maryland viable and thriving.

■

2012 Washington Visit Participants Anita G. Newcomb, A.G. Newcomb & Co. Mary Wasaff, BB&T Zachary S. Low, BFS Group Daniel Barbaree, BFS Group Todd M. Bear, BlueRidge Bank James A. Brown, Capital One, N.A. Cheri Heidel, Community Bankers Bank Michael L. Middleton, Community Bank of Tri-County Jason Clayton, FHLBank Atlanta Scott Brennan, FHLBank Atlanta Paul Cox, Jr., First United Bank & Trust William B. Grant, First United Bank & Trust Matthew T. Growden, First United Bank & Trust

Carissa L. Rodeheaver, CPA, CFP, First United

Bank & Trust Cathy Alexander, Frederick County Bank Robert A. DeAlmeida, Hamilton Bank Kristopher Kozlowski, Hamilton Bank Ralph W. Emerson, Jr., M&T Bank Richard E. Hook, IV, Maryland Financial Bank Daniel Kovac, OBA Bank Vickie J. Gray, Ober/Kaler, Attorneys at Law James W. Cornelsen, Old Line Bank Stephen C. Kensinger, Old Line Bank David Koch, Sandy Spring Bank Lynn Mason, Sandy Spring Bank Jessica L. Moliere, Sandy Spring Bank

Donald E. Schuster, Sandy Spring Bank Jeffrey F. Weidley, Sandy Spring Bank Andy Wells, Sandy Spring Bank Philip E. Logan, Slavie Federal Savings Bank Edward A. Rice, SunTrust Bank Michael E. Hough, Susquehanna Bank Karen M. Turner, The Bank of Delmarva Michael G. Livingston, The Bank of Glen Burnie Edward L. Maddox, The Bank of Glen Burnie John M. Bond, Jr., The Columbia Bank John A. Scaldara, Jr., The Columbia Bank Kim C. Liddell, The National Bank of Cambridge C. Richard Miller, Jr., Woodsboro Bank

THANK YOU TO OUR SPONSORS Dinner Sponsor Capital One, N.A. and FHLBank Atlanta 16 | The Maryland Banker

Reception Sponsor Ober/Kaler, Attorneys at Law

Name: Joseph Clarke Age: 36 Title: Senior Vice President & Branch Administration Manager Bank: EagleBank Bank location: Bethesda Town of residence: Washington, D.C. How did you come to community banking, and why do you stay?

As an active high school participant in Junior Achievement’s (JA) Student Company Program, I was selected to participate in JA’s Annual Career Job Shadow Day at a local community bank, Central Fidelity. A few months later, I found myself looking for a summer job before attending college and was offered a job as a part-time teller in a supermarket branch … the rest is history. Working for a community bank that has a relationships first customer culture and that also sincerely values and appreciates its employees makes my job exciting and rewarding What do you consider your biggest success?

My last four years have been the launching pad for what I consider my biggest success to-date – our bank’s growth, from number of branches, to overall deposit and loan increases.

Over the past four years, I have recruited and lead a team of EagleBankers who have an understanding of the market they serve and know that their success relies upon their involvement in the community, as much as how well they provide quality banking products and services to the individuals and businesses in that community where we all live, work and play together.

How do you see technology changing the banking industry over the next 10 years?

As customer expectations regarding technology change, so does our outlook on how we must prepare for the future, and I see this trend continuing as technology evolves.

Customers have come to expect that financial institutions should and will have first-class technology to compete; however, I believe that there will always be a personal side to our business. The next 10 years will be determined by the change in demographics and the adoption of technology in Gen Y, which will determine how banks will need to react.

If you weren’t a community banker, what would you be doing?

I have and always will have a love for the outdoors. Whether it’s the beach, the desert or my backyard – the landscape of these outdoor spaces defines my idea of relaxation. I always wanted to be a landscape architect. The desire to design, plan and organize most things in my life, coupled with my love for plants, trees and the outdoors, led me to this conclusion well before my working years.

Where’s your favorite place to get a crab cake?

Since I spend most of my weekends at the Delaware shore, both in-season and off-season, my favorite place for crab cakes would be Blue Moon in Rehoboth Beach, Delaware.

Name: Eric Nutter Age: 33 Title: Director of Marketing Bank: First United Bank & Trust (“My Bank”) Bank location: Oakland Town of residence: Bruceton Mills, West Virginia How did you come to community banking, and why do you stay?

In short, luck and loyalty. Fresh out of college with a degree in advertising, I was looking for anything which would allow me to use what I had learned. There was an opening at “My Bank” in the Marketing Department and they took a chance on me (considering that I had no financial background or experience whatsoever). I continue to stay in the industry, first and foremost out of loyalty to this incredible organization and its people.

Beyond that, the constant challenges presented within this ever-changing industry, while troublesome or stressful at times, can actually be an enjoyable challenge to me. Particularly when you add in the idea that I may have some small part in helping to shape things for the future; it makes staying an easy choice.

What do you consider your biggest success?

At this point in time, in terms of successes in the workplace here, I’d have to say that earning the opportunity to be the director of marketing ranks highest on the list. Though, while it is nice to be recognized for accomplishments, I’m not interested in making a name for myself for personal gain. My hope is that my efforts here reflect an entrepreneurial spirit that gives others a want for that same drive and level of passion to improve things and I have confidence that it will contribute in some way to the continued success of this organization. The opportunity that I’ve been given to not only have a hand in the marketing of the company, but also to impact some of the technological aspects of the company give me a great deal of pride and satisfaction.

How do you see technology changing the banking industry over the next 10 years?

I see non-bank competition continuing in this space, pushing banking forward overall while chipping away at the traditional definition of banking. We’re already seeing small and nimble companies that are not averse to risk in the same way that a 100-year-old bank might be, coming into a space like payment processing, and disrupting the norms.

These changes are happening at a pace that is difficult for many financial institutions to afford, offer and maintain while remaining profitable. We may see smaller banks finding ways to co-op services allowing themselves scalability.

Moreover, bankers will be able to step beyond their desk using mobile devices becoming a more common experience across the industry.

If you weren’t a community banker, what would you be doing?

My passion (much like “My Bank”) is and has always been to provide solutions, solve problems and fix things; if I weren’t in banking, I would likely be running my own business full-time, if at all possible, or attempting to replicate my role here in another industry.

Where’s your favorite place to get a crab cake?

A bacon cheeseburger is more my style, but the crab cakes at Cornish Manor in Oakland are pretty good.

First Quarter 2013 | 17

Name: Michele Judman Age: 39 Title: Area President, Senior Vice President Bank: Wells Fargo Bank N.A. Bank location: Southern Maryland Town of residence: Baltimore County How did you come to community banking, and why do you stay?

I have been in community banking for 14 years working for the same company, Wells Fargo Bank. I started with First Union Bank back in 1998 and have made it successfully through three mergers. I stay in community banking because of my passion in the vision and values of our company and my commitment to service with our customers and team members.

What do you consider your biggest success?

My biggest success has been the growth of the team I support in Maryland. You have to believe every day that you can make a difference as an emerging leader in a company. I started with a team of eight employees in 1998. I now have 400 team members that keep me busy every day.

I have a mentor who has been a huge support in my development over the past 10 years, and who has opened my eyes to the opportunities in the company, as well as community involvement.

How do you see technology changing the banking industry over the next 10 years?

I have seen technology change over the past 10 years and continue to change as we move forward. We are heading in the direction of paperless transactions and the ATM being our point of contact for deposits and withdrawals. Our customers are opening accounts on the computer and business customers are swiping a credit card from their smartphone. Identity theft is on the rise and it’s very important that we make sure each and every customer has an insurance in place to protect them from being a victim. It’s exciting to see what the future holds in banking and it’s important that our teams understand and stay current with updates and new technology in place.

If you weren’t a community banker, what would you be doing?

This is an easy answer for me! I would have a dog rescue at home and work to find a home for animals in high-kill shelters. I would also work with Baltimore City Schools to develop mentorship programs with business leaders in the community.

Name: Amanda Ebert Age: 30 Title: Assistant Vice President of Marketing and Communications Bank: Frederick County Bank Bank location: Frederick Town of residence: Frederick How did you come to community banking, and why do you stay?

After graduating from college, I worked in the public relations department of a local non-profit for a few years before accepting a marketing position at a regional bank. When an acquisition was announced shortly after I started, I spent the next few months searching for a company that would be a good long-term fit and ended up at Frederick County Bank just over five years ago. I feel very fortunate that not only am I able to utilize my education to pursue a rewarding career in my chosen field, but also that I am able to do so at a great company, with a great group of people, in the town that I love.

What do you consider your biggest success?

In 2011, I was selected as one of Frederick Magazine’s “People to Watch” due to my commitment to giving back to the Frederick County community.

How do you see technology changing the banking industry over the next 10 years?

As the use of online banking/bill pay, mobile banking, smartphones and other technologies increases, it is likely that the majority of banking transactions will no longer take place in a physical branch location during “normal” business hours. Banks will have to continuously adapt to meet clients’ changing needs and preferences in a highly competitive environment.

If you weren’t a community banker, what would you be doing?

Working in marketing, communications, public relations or event planning for a different industry.

Where’s your favorite place to get a crab cake?

Dutch’s Daughter in Frederick.

Where’s your favorite place to get a crab cake?

Olive Grove Restaurant in Linthicum Heights.

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18 | The Maryland Banker

Name: David Long Age: 24 Title: Network Administrator, Officer Bank: Howard Bank Bank location: Ellicott City Town of residence: Glen Burnie

Name: Alysson DuPont Age: 30 Title: Human Resource Manager Bank: Calvin B. Taylor Banking Company Bank location: Berlin Town of residence: Willards

How did you come to community banking, and why do you stay?

I started at Howard Bank as a teller in 2006. I’ve been impressed with the management and goals of Howard Bank since day one. We understand the importance of strong customer relationships and outstanding customer service.

How did you come to community banking, and why do you stay?

It was by chance. I replied to a blind employment ad and received a call from Mr. Thompson, CEO, had an interview and they offered me the job. I remember that I was so excited that I barely let him finish the offer! I stay because it is a fantastic work environment. I get to have a professional and challenging career while also enjoying family time. Not many career folks get both.

What do you consider your biggest success?

Just to have made it where I am at my age. I work hard to do my part in helping the bank succeed every day I am here, and I am lucky enough to have great managers who recognize my potential and desire to help Howard Bank be the best we can.

What do you consider your biggest success?

Getting my team to trust me and support my goals and decisions.

How do you see technology changing the banking industry over the next 10 years?

I think we are already starting to see a lot of change in things like mobile banking and consumer capture. I think these products will become more common and easier to use. I also think we will see new security techniques emerging to keep pace with the ever-changing threat landscape associate with these products. While these things provide a convenience to customers, I don’t think anything will be able to replace brick and mortar branches for banks like us. Even being a tech guy, I don’t think anything can beat the ability to walk into a branch and have a face-to-face conversation with a bank employee.

If you weren’t a community banker, what would you be doing?

Probably working information security in the government sector.

How do you see technology changing the banking industry over the next 10 years?

Unless there is a major cyber attack on mobile devices, banks that are not using a lot of technology now will be. Mobile devices are a part of our lives and our kids are playing with them before they [can] say a complete sentence. There is a lot of risk associated with these new products. Over the next 10 years banks will need to look at current staff skills and make sure they have an expert on banking technology and risk management.

If you weren’t a community banker, what would you be doing?

Either teaching or consulting.

Where’s your favorite place to get a crab cake?

My kitchen. My husband makes the best crab cake from fresh, local crabmeat.

Where’s your favorite place to get a crab cake?

Besides my kitchen after a day of crabbing on the bay? I’d have to say Hella’s in Millersville.

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First Quarter 2013 | 19

Name: Matthew Paugh Age: 32 Title: Assistant Vice President, Market Manager Bank: Susquehanna Bank Bank location: Oakland Town of residence: Kitzmiller

Name: Jennifer Rice Age: 25 Title: Branch Manager Bank: Woodsboro Bank Bank location: Frederick Town of residence: Thurmont How did you come to community banking, and why do you stay?

I began in community banking in my senior year of high school as a part-time teller. I moved up into various positions throughout the years until moving into my current position as branch manager of our Monocacy Village Office in Frederick. I stayed in community banking because of the customer interaction and personalized service that I am able to provide customers. I also enjoy being in the professional environment that the banking industry offers.

How did you come to community banking, and why do you stay?

I came to community banking when I chose to work for Susquehanna. Susquehanna does a great job of offering an extensive portfolio of financial products and services, but managing them locally to provide maximum value to our customers and communities. I stay because of Susquehanna’s commitment to give back to our communities. Community involvement, volunteerism, and service make community banks relevant in the communities we serve.

What do you consider your biggest success?

Completing both my MBA and Maryland Bankers Association Banking School at the same time and within a very short amount of time, and then using the knowledge I have gained from both in the position I am in. It has also been an honor and success being in a position as a branch manager at such a young age.

What do you consider your biggest success?

I have been fortunate to have the opportunity to develop other leaders to help them expand their leadership and career opportunities. It is exciting to see individuals thrive in their roles, knowing that I had some small part in it.

How do you see technology changing the banking industry over the next 10 years?

I see technology drastically changing the banking industry over the next 10 years because of the need to adapt to customer’s expectations. Customers want the most convenient way to bank, which means the need for banks to incorporate the latest and greatest technology. I feel improved technology will be a way for banks to remain relatively competitive in the market, too.

If you weren’t a community banker, what would you be doing?

I would be working in a marketing or advertising field because I studied marketing when completing my education and have always had an interest in it. I have also had experience in seeing how my bank advertises and the approach that they take.

How do you see technology changing the banking industry over the next 10 years?

Banking will become more mobile and tablet-friendly. Banks will probably focus on self-service products to generate revenue. Hopefully, it will prioritize becoming more and more paperless.

If you weren’t a community banker, what would you be doing?

I’d be teaching in some capacity.

Where’s your favorite place to get a crab cake?

I try to avoid crab cakes because I am allergic to crabs, but here in Western Maryland we are more into buckwheat cakes. People seem to like them at Dottie’s Fountain & Grill in downtown Oakland.

Where’s your favorite place to get a crab cake?

May’s Restaurant in Frederick has great crab cakes.

Congratulations to Joe Clarke, a senior vice president at eagleBank, on being named to the 2012 class of Next Leaders in Banking, which recognizes rising industry stars who have made significant contributions to their financial institutions as well as the greater community.

MarylanD • washington, DC • Virginia • www.eaglebankCorp.CoM • 301.986.1800

20 | The Maryland Banker

Name: John Camden Age: 36 Title: Vice President, Relationship Manager Bank: Sandy Spring Bank Bank location: Anne Arundel County Town of residence: Annapolis How did you come to community banking, and why do you stay?

I worked in restaurant management for a number of years, but when my family sold its business I was at a crossroads. I had management skills from running successful restaurant teams but really wanted to take the opportunity to do something different. I learned about an opportunity with Sandy Spring Bank in Annapolis, a market that I was excited to work in. I jumped at the opportunity and never looked back!

Our bank has a unique history that I enjoy sharing with prospective and existing clients. I continue to stay in banking because I enjoy developing lasting relationships with my clients. I am blessed to work in the community that I serve and that at Sandy Spring Bank they welcome our role as ambassadors and good stewards of the community.

What do you consider your biggest success?

In 2010 I accepted our Community Values Award. There are many wonderful volunteers at Sandy Spring Bank, so I was truly honored to be selected for this designation. I am a volunteer ice hockey coach for Navy Youth Hockey in Annapolis. I also volunteer with the Annapolis and Anne Arundel County Chamber of Commerce, The Chesapeake Regional Tech Council and The Check Foundation. Sandy Spring Bank has been very supportive of my community efforts and I attribute this to my success.

How do you see technology changing the banking industry over the next 10 years?

I am an active member of the Chesapeake Regional Tech Council and one thing I have learned by networking and volunteering for this great organization is that if you blink your eyes you will just possibly miss the next latest and greatest innovation. I believe the relationship banker role will become more critical than ever as technology evolves and mobile banking will come to be something we don’t yet recognize. I look to the next generation to drive technology further.

Name: Joseph Mitchell Age: 29 Title: Accounting Representative Bank: Slavie Federal Savings Bank Bank location: Bel Air How did you come to community banking, and why do you stay?

I have always been interested in numbers and business.

Banking represents the best of both. Interaction with the community is another benefit with working at a community bank. My job requires me to perform multiple duties. As a result, I continue to learn something new on a daily basis, which is why I continue to stay with banking.

What do you consider your biggest success?

My work ethic. Work ethic is paramount to becoming successful, so without that, I wouldn’t be able to achieve success.

How do you see technology changing the banking industry over the next 10 years?

Technology is important to banking as we are becoming less dependent on paper. As technology evolves, we as employees of the banking industry will become increasingly efficient in the processes we need to provide additional and expedient services to our customer base.

If you weren’t a community banker, what would you be doing?

Serving my community on a full-time basis in some capacity.

Where’s your favorite place to get a crab cake?

Box Hill Pizzeria in Abingdon.

If you weren’t a community banker, what would you be doing?

GF_Banker'sNewsletter 1/11/12 1:07 PM Page 1 I would probably be a restaurant owner and would also make a run for State Delegate, a dream of mine. I have always had a passion for government and one day I would love to represent my hometown and make an impact in my community.

Where’s your favorite place to get a crab cake?

Born and raised in Maryland and being a crab lover, I have never had a better crab cake than at Theo’s in St. Michaels, Maryland!

The leaders in providing legal advice to Maryland’s financial services industry

D. Robert Enten Carla Stone Witzel Marjorie A. Corwin Peter B. Rosenwald, II Andrew D. Bulgin Brian L. Moffet John C. Morton Timothy A. Perry Victor A. Kwansa Attorneys at Law 233 E. Redwood Street n Baltimore, MD 21202 410-576-4000 n www.gfrlaw.com

First Quarter 2013 | 21

Name: Stacy Orem Age: 33 Title: Branch Operations Manager Bank: The Washington Savings Bank Bank location: Bowie Town of residence: Catonsville

Name: Tia Kirschner Age: 30 Title: BSA/AML and Deposit Compliance Coordinator Bank: Baltimore County Savings Bank Bank location: Baltimore Town of residence: Baltimore

How did you come to community banking, and why do you stay?

I was looking for a career change and had always been interested in banking. I started in banking as a teller and have moved through the different branch positions over the past 12 years. I am going into my seventh year in my current position here at The Washington Savings Bank and have never been happier in banking. I stay here because I enjoy working with our customers on a daily basis. Being in a community bank enables me to get to know all of our customers. They appreciate that we know their name as soon as they walk into the door; it makes them feel at home. Having a good loyal team to work with every day is also very rewarding.

What do you consider your biggest success?

Knowing that I can be counted on and trusted by my colleagues and customers makes me feel successful.

I pride myself in being very thorough and detailed with my job. Being in this type of position, it is very important to have these traits, and there are many people who seek me out knowing that they will receive accurate information. When someone leaves my desk happy, knowing that I have assisted in the best way possible is a success to me.

How do you see technology changing the banking industry over the next 10 years?

Technology has definitely made a lot of positive changes to banking. Customers now have access to their accounts 24/7 through internet banking, smartphone apps and ATMs. With remote deposit scanners, business customers no longer need to leave their offices to make deposits. Although customers do not need to come into a branch as often as in years past, branches and branch staff will always be here for the customers when they do need us. Technology will always evolve, but will never compete with the personal touch of speaking with a customer face to face.

If you weren’t a community banker, what would you be doing?

I probably would be in a different field of work. I actually have a degree in baking and pastry, so I would be working as a pastry chef.

Where’s your favorite place to get a crab cake?

Jerry’s Seafood in Bowie, where they have the “Crab Bomb.”

How did you come to community banking, and why do you stay?

I began working at BCSB in 2005, fresh out of college. Working for BCSB has given me many opportunities for advancement and training that I may not have gotten at a larger institution. Being a community bank, BCSB has a strong employee support structure. Management is very committed to providing opportunities to employees to help them meet their career goals. That is why I have continued working for BCSB, because I have gained so much knowledge and have been given so much support in order to further my career in the financial industry.

What do you consider your biggest success?

I feel that my greatest success so far within my career is gaining the knowledge to be able to assist my financial institution, my community and myself to help promote the need to financial education in the future. Understanding the way technology can assist financial management from the individual level on up to internal financial institution processes is key and very important to a sound financial future.

How do you see technology changing the banking industry over the next 10 years?

I believe that in 10 years we may look back and see no resemblance to the way the financial industry works today. Over the next 10 years there will be advances in remote access devices and online tools that will change the face of community banking. The future will bring enhanced cash management services and more robust financial management tools for our customers.

If you weren’t a community banker, what would you be doing?

I would be working as a project manager or event coordinator for an organization that would offer me opportunities to assist my community. I currently volunteer for an animal rescue organization and I use my time, knowledge and creativity to assist with helping animals find a forever home. If I was not a banker I surely would be using these same skills to help the community in any way I could.

Where’s your favorite place to get a crab cake?

Box Hill Crab Cakes in Abingdon; it’s nowhere near the water but the crab cakes are huge and delicious, and the price isn’t bad, either.

You ProduceWe Protect VERIPAY

TM

Intelligent Funds Control

Construction Monitoring Property Condition Assessment Troubled Real Estate Consulting

Congratulations 2012 Class of www.DayhillGroup.com 484-324-4896

22 | The Maryland Banker

Save the Date!

117th Annual Convention of the

Maryland Bankers Association

June 2-5, 2013 at

The Breakers Palm Beach, FL

Mark your calendar now.

Details to follow.

ATMs changed banking transactions. The OptevaÂŽ Flex PerformanceSM Series transforms the entire branch operation.

The Diebold Opteva Flex Performance Series redefines what a branch can do, enabling tellers to provide higher-value services and branches to run more efficiently. By bringing together multiple functions—envelope-free cash and check acceptance, full recycling, cash sorting and note fitness-checking—this new technology dramatically reduces service and personnel costs. Another innovation.

And another reason why Diebold has remained a leader for more than 150 years.

For the entire story, visit diebold.com/boldinnovation.

1.800.806.6827 diebold.com requests@diebold.com