Maryland Banker 2Q 2013

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SECOND QUARTER 2013

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REGULATIONS: PROACTIVITY IS THE NAME OF THE GAME

Also Inside: FIRST FRIDAY ECONOMIC OUTLOOK FORUM SETS TONE FOR 2013

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

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

REGULATIONS: PROACTIVITY IS THE NAME OF THE GAME

Also Inside: FIRST FRIDAY ECONOMIC OUTLOOK FORUM SETS TONE FOR 2013

THE OFFICIAL PUBLICATION OF THE MARYLAND BANKERS ASSOCIATION

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

Contents

SECOND 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 President & CEO, 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

8 cover Regulations:

Proactivity is the Name of the Game

Hurricane Sandy Disaster Relief with the American Red Cross

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message from the chairman Creating Pathways to Success 5 HMDA Changes Will Require Time and Effort

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message from the president On the Horizon

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‘First Friday’ Economic Outlook Forum Sets Tone for 2013 10 2012 Maryland BankPAC Contributors

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DEPARTMENTS: news and notes 12

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professional development calendar 15

10 Second Quarter 2013 | 3

MBA and Member Banks Raise $37,000 for Hurricane Disaster Relief

T From left: Kristen Duncan, regional events coordinator, American Red Cross of the Chesapeake Region; Kathleen Murphy, president & CEO, Maryland Bankers Association; George Behr, president & CEO, Arundel Federal Savings Bank; H.L. Ward, president & CEO, Monument Bank; Darla Rosenberger, assistant vice president, marketing coordinator, OBA Bank; Russ Grimes, president & CEO, Carroll Community Bank; Sherrice Davis, vice president, CRA , M&T Bank; Mandy Walsh, public relations specialist, Sandy Spring Bank; Gary Barnoff, vice president, Slavie Federal Savings Bank; Carolyn Mroz, president & CEO, Bay-Vanguard Federal Savings Bank; Chuck Jacobs, president & CEO, Harford Bank; Frank Miller, outgoing CEO, American Red Cross of the Chesapeake Region; Chuck Weller, president & CEO, OBA Bank; and Allison Fields, government affairs manager, Maryland Bankers Association.

4 | The Maryland Banker

he Maryland Bankers Association (MBA) and 17 member banks partnered with the American Red Cross over a six-week period to assist in the response and recovery efforts of those affected by the devastation of Hurricane Sandy.

On Jan. 17, 2013, the culminating event was held at the American Red Cross of the Chesapeake Region headquartered in Baltimore with outgoing CEO Frank Miller and Kristen Duncan, regional events and recognition coordinator for the American Red Cross. The event was concluded by presenting the American Red Cross with a check reflective of the total amount contributed by all 17 banks and their clients, employees, directors and communities, which was an incredible amount of $37,132.71. According to the MBA’s Kathleen Murphy, “support of the relief effort is just another way that the Maryland banking industry demonstrates its commitment to giving back.”

Participating member banks include: Arundel Federal Savings Bank; Baltimore County Savings Bank; Bay-Vanguard FSB; Carroll Community Bank; Fraternity Federal Savings & Loan; Harford Bank; M&T Bank; Monument Bank; OBA Bank; Prince George’s Federal Savings Bank; Sandy Spring Bank; Slavie Federal Savings Bank; St. Casimir’s Savings Bank; SunTrust Bank; The Bank of Glen Burnie; The Columbia Bank; and The National Bank of Cambridge.

■

Message from the Chairman MICHAEL L. MIDDLETON

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

Creating Pathways to Success

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he presidential election is over, but our work has just begun. The pervasive effect of the Dodd-Frank Act as well as the ensuing Consumer Financial Protection Bureau’s (CFPB) avalanche of regulations is front and center for the entire banking community. There is no time like the present to make our voices heard in Annapolis and Washington, letting decision makers know about the profound impact on their constituents and our banks. Whether one believes in more government or less government, it is our duty to have a well-informed government.

With the help of the MBA, our members can shape their messages and convey their unique experiences to our state and federal lawmakers. It is important to remember that we have many newcomers who don’t know how we serve their districts.

Our member CEOs strive to address the financial impact of what the American Bankers Association has called a tsunami of regulation as well as the ever-changing priorities of banking regulators. Yet all the while, our fiduciary obligation is to run safe and sound financial institutions amid a swift and ever-changing torrent of rules. This is the message we must communicate to our lawmakers.

As you read in our cover story, banks of all sizes find their compliance workload skyrocketing. Many have had to add more employees to provide input to the compliance manager thereby exponentially increasing the cost with no offsetting revenue. In our bank, I created a compliance council of management and staff that works in tandem with our third party compliance experts, a preferred provider of MBA’s for-profit subsidary, Maryland Bank Services, Inc. (MBSI) to manage our compliance risk mitigation system. The combined effort produces a compliance environment that is manageable, cost effective and meets regulators’ requirements.

This is but one example of how the MBA brings together the

components for real synergy in our operations.

One of my goals as MBA Chairman is to leverage the collective strength of our members to show our stakeholders the value we bring to the communities we serve. The goal of communication and outreach builds from the momentum of the MBA’s 2012 Member Engagement Task Force about access, education and networking.

To address this ambitious goal, we need to create unique pathways to better educate our employees. But who are those folks? Approximately 80 percent of them are women; they are today’s banking leaders and our future leaders. To help them, we created a council advisory board to create MBA’s strategy. This amazing group created the Council for Professional Women in Banking and Finance. Its mission is to encourage, empower, and inspire women to reach their goals in their banking and finance careers through ongoing education, and personal and professional development. Innovative programs and activities enable them to reach for GOLD – Growth, Opportunity, Leadership and Development.

Women who participate in this council will discover new opportunities to connect, learn, and empower one another as they reach for GOLD. The council will offer mentoring and networking opportunities throughout the year, with an annual conference in May. The council’s Inaugural Annual Conference on May 2, 2013, will include a full line-up of nationally recognized speakers and topics to fit each professional woman’s needs. We encourage you to attend and to identify individuals in your bank and organization to attend as well. Together we are going for the GOLD! ■ Mike Middleton is the chairman of the Maryland Bankers Association. Reach him by email at mikemid@cbtc.com.

Second Quarter 2013 | 5

HMDA Changes Will Require Time and Effort

BY AMBER GOODRICH | CONSUMER COMPLIANCE CONSULTANT, ATTUS TECHNOLOGIES

W

hile the March 1 deadline for submitting your 2012 Home Mortgage Disclosure Act (HMDA) data has come and gone, it’s not yet time to come up for air.

Among several regulatory activities in the works for 2013 are major changes to HMDA. Brought on by Section 1094 of the DoddFrank Wall Street Reform and Consumer Protection Act (DFA), financial institutions subject to HMDA must collect and report new information on mortgage loans, including but not limited to: • Age • Application channel (e.g., broker) • Credit score • Loan originator identifier • Loan term • Negative amortization • Prepayment penalty term

• Property’s parcel number • Property value • Rate spread for all loans • Term of introductory rate period • Total origination points and fees • Universal loan identifier

These changes, which will be implemented by the Consumer Financial Protection Bureau (CFPB), can have significant consequences for community financial institutions (CFIs). For starters, most will require additional staff to collect and report the extensive

6 | The Maryland Banker

new data. In addition, updates to both HMDA compliance software and to the institutions’ related policies and procedures are practically inevitable.

And while the CFPB expects to begin developing the proposed regulations concerning additional data collection in the second quarter of 2013, CFIs should start preparing now to meet these new reporting requirements. They first must confirm that they are – and will continue to be – in compliance with existing data requirements by ensuring their software and processes are up-to-date. The best practice for CFIs to gauge where they stand with the current requirements is performing compliance self-assessments of their existing policies and practices, which will identify where updates are necessary.

Remember, the HMDA was created to monitor how well financial institutions are serving the housing needs of their communities, and to identify possible discriminatory lending patterns. So accurate lending activity data is essential to providing a true picture of today’s mortgage market.

■ Amber Goodrich, consumer compliance consultant for ATTUS Technologies, has more than 10 years of financial industry experience, most recently specializing in compliance. She is a Certified Community Bank Compliance Officer and Certified Bank Secrecy Act Professional.

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

MARYLAND BANKERS ASSOCIATION

On the Horizon

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he Federal Reserve Bank of Richmond invited me and my counterparts from the states in the Fifth District to participate in a panel discussion on industry issues for their examiners. Annually, the Federal Reserve convenes nearly 300 examiners from every state in the Fifth District for an intensive and extensive training conference.

Our panel followed a panel of the state banking commissioners from the same states. Interestingly, and as you would expect, the banking commissioners’ perspectives about the key issues facing the industry mirrored ours.

The goal of both discussions was for the examiners to gain a broader understanding of what we see as “horizon” issues, as well as resources that are available to the examiners in their respective states through their state bank regulatory counterparts, as well as the state trade associations.

We were asked not to focus on the here and now, but rather on the issues that we believe the industry will be facing in the future.

Following is a summary of the perspective I shared, which was in line with the comments from others.

Profitability – It will continue to be a challenge to cover increasing compliance and overhead expenses with pressure on net interest margins and fee income generation. With regulations changing some banks’ core offerings, such as mortgage products, banks are anticipating where their earnings will come from in the future.

Enterprise risk management – The planning committee for the MBA’s 2013 Convention noted this as one of the industry’s top priorities. On the cyber crimes, fraud and corporate account takeover front, one member said the “ground is literally moving under our feet.” With technology accelerating the flow of money, banks will continue to focus on how to stay a step ahead of the “bad guys.” Finding the right balance between protecting the customers’ and bank’s assets and providing banking channels our customers want will be a priority.

Public policy changes – The chief economist of Moody’s Analytics testified recently before a committee in the Maryland General Assembly commenting that, although the Dodd-Frank Act has been in place for more than two years, the pieces are still moving, as half of the regulations are yet unwritten. He said on the policy front, it is a “sea of uncertainty.” That, coupled with policy changes that seek to favor tax exempt credit unions and the Farm Credit System, it is very difficult for banks to compete on

an unlevel playing field. Credit union market share in Maryland has doubled in the last 10 years from 10 percent of deposits to 20 percent.

Access to capital – We are waiting for the final Basel III capital rules. While some members are telling me that capital is flowing back into the banking industry, finding sources of capital will continue to be a challenge particularly as all banks are bracing for new and higher capital requirements.

Control of the payment system – How do banks, with our regulatory structure, compete with those who are not hamstrung by the same regulatory requirements? Last year, Walmart launched its prepaid Bluebird card to allow direct deposit of wages, without all of the regulations that apply to traditional banks. Today, 37 percent of Americans are considered non-banked or under-banked, using check cashers, peer-to-peer lending and other sources. Looking out on the horizon, what will be the niche that traditional banks have in the financial services industry?

Succession planning – A large percentage of community bank CEOs nationally are over the age of 55. And in many cases, the banks’ board members are over that age. With the post Dodd-Frank “burnout” in executive management and at the board level, some banks are strategically choosing to sell rather than to search for new leadership. One member said there are very few “CEOs-in-waiting.” We need to reinvigorate banking as a career path because traditional banks are too important to communities across our region.

The near and long-term challenges are many. However, I also shared that the Maryland banking industry is getting better. With an improving economy, bank balance sheets are improving. Two members on the lower Eastern Shore told me last week that “things are getting better down here.” I continue to see an amazing resilience at the executive management level and in my interactions with other bank officers and employees.

I can’t help but be thankful that I represent an industry that lends to and employs people in the Federal Reserve’s Fifth District. In general, banks here are in a much better place than banks in other parts of our country. Yet, the long-range issues are something we all have in common.

■ 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.

Second Quarter 2013 | 7

REGULATIONS: PROACTIVITY IS THE NAME OF THE GAME Maryland Banks Report from the Front Lines

By Christina P. O’Neill

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arolyn Mroz wears many hats at Bay-Vanguard FSB. She is president and CEO, and also head of compliance. Though the Baltimore-based bank has only four branches and 34 employees, many specific regulations under the Dodd-Frank Act, developed to target larger institutions, will likely affect her bank.

“Every week there’s something new,” she says of the regulatory front.

“You have to read it even if it doesn’t end up being applicable to an institution like ours.”

Mike Livingston, president and CEO of the Bank of Glen Burnie, notes the impact on lenders of Basel III capital requirements. The bank has eight branches and just over 100 employees. Its parent company, Glen Burnie Bancorp, reports $387 million in assets. Basel III’s complex initial formula could force banks to choose what to lend based on their risk rating, he says. Banks across the country pushed back, citing the negative impact on lending and the economy.

“We sent in our letters, and became active through the Maryland Bankers Association, letting our views be known,” he says. Maryland became part of a larger national advocacy initiative that caught the regulatory rule-writers by surprise: it resulted in a delay in the rule.

Raymond M. Thompson, president and CEO of Calvin B. Taylor Banking Company in Berlin, says his compliance officer’s workload has already doubled. The bank, with 10 branches, $443 million in assets and 96 employees, has formed a Dodd-Frank Compliance Committee consisting of key personnel. “My advice to any community bank leadership team is to not ignore what is happening in Washington and Annapolis, and not to think that your institution won’t be impacted,” Thompson said.

Tom Rasmussen, president and CEO of New Windsor State Bank, a $270-million commercial bank with six branches in Carroll County, in a residential area almost exactly equidistant from Baltimore and Washington D.C., said the state- and FDIC-regulated full-service bank outsources its compliance to a third-party firm. Its internal committee of department heads meets quarterly, and it’s hiring an additional administrative staffer for its mortgage lending department, where the impact of new regulations is felt the most.

Regulation has already impacted the hiring, registration and compensation of mortgage staffers, an experience Rasmussen describes as “a massive intrusion into our lives.” However, he adds, “Some of the regulations are good. They helped weed out the bad players. Most 8 | The Maryland Banker

of the [requirements are] pretty commonsense, such as the need to underwrite correctly. That’s never been an issue here.”

Helping the Mortgage Market Recover – or Not Calvin B. Taylor Bank’s Ray Thompson says that while his bank is beneath the threshold for direct oversight of the newly-minted Consumer Financial Protection Board because of the bank’s size, mortgage rules proposed by the CFPB, including qualified mortgage, impact operations and may curtail the offering of long-established lending products. An example: Balloon mortgages on one-family to four-family residences, offered by many community banks in Maryland, as an interest rate risk management tool. Banks in under-served counties, issuing less than 500 mortgages in a year and with $2 billion or less in their loan portfolios, were supposed to be able to continue to offer balloon mortgages. But under the current definition of service areas, only two counties in the state meet the definition of rural and the balloon mortgages they may offer have a minimum five-year term.

“You can drive a mile in any direction from our bank and pass a cornfield, but our [market service] proximity to a metropolitan statistical area and a micropolitan statistical area disqualifies us as a rural lender,” he says. “The devil’s in the details.”

MBA Chairman Mike Middleton, chairman and CEO of Waldorf-based Community Bank of Tri-County, says the borrower qualification rules adopted by the CFPB do not take into account the needs and capabilities of the small-business borrower. Community Bank, which has 11 branches and 170 employees. He says community banks provide more than 40 percent of all small-business loans in the United States, and also make the bulk of residential loans to smallbusiness owners who do not fit the CFPB’s current loan requirements.

An example: Community Bank of Tri-County has a long-standing small-business customer for which the bank has taken care of two generations’ worth of residential loans – the business owner’s and the owner’s children’s housing loans. The CFPB should keep its focus on large-scale issuers of consumer finance first, he opines: “The entire community bank sector wouldn’t move the needle in consumer financing relative to larger institutions.”

Two Maryland bank leaders say the CFPB staff who visited their bank took interest in their concerns and were willing to listen.

“We provided the CFPB with logistics on how regulations work on the frontline, and how this particular regulation made its way to the consumer. They were curious as to the costs, and a feel for what it costs us to comply,” Rasmussen says.

New Windsor State Bank retains about a third of the mortgages it writes because the mortgages don’t fit secondary-market parameters, such as with self-employed borrowers. The bank relies on its knowledge of the market and property values.

His take: the CFPB staff was learning the ropes as well as the bank staff. “I was very appreciative of the fact that they reached out and tried to understand this stuff,” he said.

Mroz recalls that when the CFPB visited she brought in her Compliance/Management Committee to discuss the impact of the new mortgage servicing rules. “They were here all day. It was a very positive experience. They did listen and take notes,” she says. As the author and reviewer of all the bank’s compliance policies, she thinks of the consequences of a regulation from the time it’s imposed, rather

The exam manual used by examiners; it is nearly 5 inches thick.

Photo courtesy of the Bank of Glen Burnie.

than waiting until it is implemented. Her hands-on experience allows her to give regulators real-life examples of what it takes to implement a regulation, and to share with them whether the time spent is will get the desired result, “or if it’s overkill. For a small institution like [ours],” she says, “the brush was too broad.”

Looking Ahead with the MBA Thompson credits the MBA in being instrumental in engaging the Maryland congressional delegation to cosign a letter outlining the burdens of Basel III on Maryland banks, and commends MBA President Kathleen Murphy for her work to inform Maryland’s congressional delegation of the impact of such rules. He predicts a possible contraction in lending, elimination of certain loan products, and banks becoming more risk-averse than they already are.

“At a time when the economy needs banks to be free and comfortable extending loans, we may not be comfortable making even good loans, if, in the event of default, a borrower can legally challenge the bank’s underwriting standard down the road,” he warns. “Banks are the engines of the local economy, and if we’re having to spend more time on compliance or set aside more capital for certainasset classes, it will ultimately affect earnings and balance sheet diversification.”

Mroz draws on the comment templates from the MBA and the American Bankers Association, and encourages staff to produce individualized comments for letters to members of Congress. Despite her bank’s small size, she has chaired a committee of the ABA, and knows all her delegates, congressmen and their staff.

Rasmussen says the MBA has been “outstanding and have been very productive in molding, shaping and limiting far-reaching [regulatory] powers.” His biggest concern is Basel III liquidity requirements as they relate to mortgage loans, which constitute 35 percent of his bank’s loan portfolio. “The parameters need to be rethought,” he says, cautioning that requirements that do not address local marekt realities will likely lead to mergers or departures from banks’ original mission statements unless the industry continues to press for a departure from a too-broad regulatory approach.

Market-driven solutions to the country’s lending issues are most effective coming from the banks that serve our markets. The Maryland Bankers Association is effective by staying close to its members.

■ Second Quarter 2013 | 9

‘First Friday’ Economic Outlook Forum Sets Tone for 2013

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early 700 banking and business leaders gathered on Jan. 4, 2013, for the sixth annual “First Friday” Economic Outlook Forum. The Maryland Bankers Association event was held in conjunction with partnering associations, including the Maryland Chamber of Commerce, The Maryland Retailers Association, The Maryland Realtors Association and the Maryland Association of CPAs. Anirban Basu, chairman and CEO of Sage Policy Group, opened the event with a local and regional economic update. Basu then moderated a panel of top bank economists which included: Anika R. Khan, director and senior economist, Wells Fargo Securities, LLC; Andrew Richman, CTFA, director of fixed income, Investment Advisory Group, SunTrust Bank; and Jeffrey J. Schappe, CFA, managing director and chief market strategist, Sterling Capital Management, an independently operated subsidiary of BB&T Corporation.

Frank Keating, president and CEO of the American Bankers Association and former governor of Oklahoma, addressed the group on the importance of the partnership between banks and businesses.

Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, was the keynote speaker. Highlights of his speech included: • Inflation has performed very close to what the Fed views as consistent with its statutory mandate. Inflation has averaged 2.03 percent per year since 1992, and 1.90 percent since June 2009, compared to the Fed’s long-run goal of 2 percent average inflation. Temporary swings above and below that threshold have tended to even out over time, a substantial improvement over previous decades • Maintaining price stability is the Fed’s primary mission as the central bank. In contrast, real economic growth and labor market conditions are affected by many factors beyond the central bank’s control. The effects of monetary stimulus on real output and employment often are smaller than is widely thought.

• Several factors seem to be impeding a more rapid recovery from the Great Recession: the residential inventory overhang; the need to reallocate labor and other resources across sectors; heightened consumer caution in the wake of the Great Recession; and uncertainty, including over fiscal policy, that has caused businesses to delay investment and hiring decisions.

• It is reasonable to expect that gross domestic product will grow at an annual pace of 2 percent in 2013. This forecast is based on a number of factors: progress on federal budget issues; improvement in economic conditions in Europe; and gradual gains in consumer confidence.

Next year’s event is Friday, Jan. 3, 2014 – mark your calendars now!

10 | The Maryland Banker

■

Thank you to our Sponsors Platinum Sponsor BB&T Gold Sponsors Capital One, N.A. Old Line Bank Sandy Spring Bank SunTrust Bank Silver Sponsors Bank of America Community Bank of Tri-County Howard Bank Patron Sponsors Arundel Federal Savings Bank Baltimore County Savings Bank The Bank of Glen Burnie Calvin B. Taylor Banking Company Carroll Community Bank Fairmount Bank Farmers & Merchants Bank

Federal Home Loan Bank of Atlanta First United Bank & Trust Hamilton Bank M&T Bank New Windsor State Bank OBA Bank PeoplesBank, A Codorus Valley

Company Revere Bank Stegman & Company Susquehanna Bank The Columbia Bank UHY Advisors Wells Fargo Bank Woodsboro Bank Shared Patron Sponsors Bay Bank, FSB Frederick County Bank Harford Bank Overton & Associates, LLC Shore Bank

We’ve walked in your shoes…

We are veteran bankers with innovative solutions to community bankers’ real world challenges.

• • • • •

M&A DUE DILIGENCE AND INTEGRATION SUPPORT STRATEGIC AND CAPITAL PLANNING ENTERPRISE RISK MANAGEMENT LOAN REVIEW AND INTERNAL AUDIT LOAN AND CAPITAL STRESS TESTING

“ The SRA team came in and understood our issues immediately. There was no learning curve whatsover. As a result, they were able to complete our project efficiently and ahead of schedule.”

James E. Plack President & CEO American Bank, Bethesda, MD

ROBERT L. MORRISON, JR. MANAGING DIRECTOR BMORRISON@SRABANK.COM 240-674-3866

Second Quarter 2013 | 11

News &

Notes

Members on the Move

Allen Cephas

Brian Compton

PNC Bank, N.A. promoted Allen Cephas and Brian Compton. Cephas was promoted to branch manager at the Mt. Washington Mill branch. He oversees the day-to-day operations of the branch and provides complete financial services, including a wide range of checking accounts; loans and mortgages; investment services; insurance; and small business banking solutions. Cephas has six years of consumer/business banking experience and was formerly an assistant branch manager at the PNC Bank branch in Locust Point.

Compton was promoted to senior vice president at PNC Bank in Southern Maryland. He will lead both consumer and business banking for PNC in Charles, Calvert and St. Mary’s counties as the regional manager. Compton has been with PNC Bank for 10 years and has held various positions including branch manager, commercial lender and business banking sales manager.

Jean H. Sewell was appointed to senior vice president and director of marketing for Shore Bank. Sewell brings 30 years of diverse business and banking experience in marketing, strategic planning, service and sales management, operations, finance and accounting. She will be based in the South Salisbury office. Prior to joining Shore Bank, Sewell was the executive vice president and chief financial officer of The National Bank of Cambridge. From 2007 to 2010, following the acquisition of Mercantile Peninsula

12 | The Maryland Banker

Desirae Thorpe

Carissa Rodeheaver

Bank, Sewell served at PNC Bank as senior vice president and regional manager with overall responsibility for 17 branches in Wicomico and Worcester counties.

Desirae Thorpe was promoted to branch manager for The Columbia Bank’s Oakland Mills office. She previously was the assistant branch manager of the bank’s Ellicott City Office. In her new position she will oversee the day-to-day banking operations, develop new business opportunities, and integrate the bank into programs and initiatives that benefit the local community.

First United Bank & Trust has promoted Carissa Rodeheaver to president and chief financial officer of both First United Bank & Trust, and its holding company, First United Corporation. She was also elected to the board of directors of both entities. Rodeheaver began her career with First United in 1992 as a trust officer.

She was subsequently promoted to vice president and trust sales manager. In 2004, she moved to the finance department where she was named as assistant chief financial officer. She was promoted to senior vice president and chief financial officer in 2006.

More recently, she was named executive vice president in 2008. She is currently serving in her second term on the Maryland Bankers Association board of directors. She also serves on the board of the Garrett College Foundation.

Robert (B.J.) E. Goetz, Jr.

J. Michael Hill

Bill Grant, chairman & CEO, First United Bank & Trust, was named to the American Bankers Association’s (ABA) board of directors. Grant has been very active and involved with both the MBA and ABA, most recently serving as chairman of the ABA’s Community Bankers Council from 2011 – 2012, which is one of ABA’s most significant committees, made up of community bank CEOs from every state. He also served on the ABA’s Government Relations Council and has testified several times before Congress on important issues, including small business lending and the regulatory environment. He served as chairman of the MBA in 2005 and has been actively involved in leading association initiatives since then, including the MBA’s 2006 Membership Investment Task Force.

Middletown Valley Bank named Robert (B.J.) E. Goetz, Jr., president and J. Michael Hill chief operating officer. Goetz has more than 15 years’ experience in the industry, including the past five as senior vice president/commercial executive for Susquehanna Bank in Hagerstown. Goetz is a graduate of Frostburg State University and an honors graduate of the Maryland Bankers Association’s Maryland Banking School and Maryland Banking School for Advanced Management. He was also one of MBA’s 2011 Next Leader in Banking Award recipient.

Hill has been leading the transition team that is guiding reorganization efforts and implementing the strategic plan goals

recently adopted by the bank’s board. He joined Middletown Valley Bank as assistant vice president and CFO in 1994 and has served as vice president and CFO since 1996. He entered the industry in 1988.

James H. Clapp, chairman of the board, stated, “With the leadership and vision B.J. and Michael bring to Middletown Valley Bank, I see a strong sense of recommitment to our original mission. The bank was founded more than 100 years ago by local businessmen dedicated to the improvement of the Valley. We are recommitting ourselves to that mission by expanding our ability to meet the needs of all the communities we serve.”

Community Bankers’ Bank (CBB) promoted Howard F. Pisons to executive vice president. Pisons joined CBB in April 2002 as the senior credit officer. Before joining CBB, Howard earned a bachelor’s degree from California State University and was employed by Fortune 500 companies, where he performed finance/ audit assignments at company subsidiaries worldwide. He began his banking career in Chicago with major national financial institutions in progressive lending and management positions providing cash flow and asset-based lending solutions for leveraged acquisitions and working capital.

The Federal Reserve Board of Governors and the Federal Reserve Bank of Richmond board of directors reappointed Anita G. Newcomb, president and managing director, A.G. Newcomb & Company to their Baltimore office to a three-year term, effective Jan. 1, 2013.

Sally Green, vice president and chief operating officer for the Federal Reserve Bank of Richmond, will retire in May 2013.

Green, who has been the chief operating officer since 2006, has had a distinguished career with the Federal Reserve System for over 35 years. Federal Reserve Bank of Richmond President Jeff Lacker states, “With Sally’s departure, our district and the Federal Reserve System will say goodbye to a dedicated central banker and a woman of exceptional character who has served our mission, our people and our community with distinction.”

Welcome New Member Associate Financial Member

AmeriServ Financial Bank is a community banking subsidiary of AmeriServ Financial that was formed in 1910 and headquartered in Johnstown, Penn. AmeriServ Financial Bank has approximately $1 billion in assets, with 18 branches in Western Pennsylvania and Loan Production Offices in Pittsburgh, Altoona, Harrisburg, Penn., and Hagerstown.

Members in the Community Bank of America Charitable Foundation Awards $381,000 to Baltimore-area Nonprofit Organizations The Bank of America Charitable Foundation is awarding $381,000 in grants to 23 Baltimore area nonprofits offering job training, education programs and support services that help connect the unemployed, underemployed, veterans, youth and those with disabilities with employment opportunities.

“Our support is enabling individuals in the Baltimore area to achieve the education and skills needed to compete in today’s and tomorrow’s workplace,” said David Millman, Maryland and Baltimore market president, Bank of America. “The bank’s investment in the Baltimore area is just one of the ways we are supporting education and workforce development organizations in our community and improving local economies across the country.”

Grants are being awarded to: Anne Arundel Community College Foundation; Big Brothers Big Sisters of the Greater Chesapeake; BioTechnical Institute of Maryland; Blind Industries and Services of Maryland; Boys & Girls Clubs of Metropolitan Baltimore; Caroline Friess Center; Carson Scholars Fund; Center for Urban Families; Community College of Baltimore County; Council for Economic Education in Maryland; Dyslexia Tutoring Program; Junior Achievement of Central Maryland; Levindale Hebrew Geriatric Center and Hospital; Maryland Food Bank; Maryland Zoological Society; Mosaic Community Services; National Aquarium; Penn Mar Organization; Second Chance; South Baltimore Learning Corporation; Stocks in the Future Foundation; Teach for America and the University of Maryland Baltimore Foundation.

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Overton & Associates, LLC, hosted Rep. Chris Van Hollen in their Westminster office in January with local business leaders for an outreach event for Representative Van Hollen to get to know businesses in his newly configured district. From left: Rep. Chris Van Hollen; Tim Dean, manager of Overton & Associates’ mill shop, Edgewise Cabinetry; and John Overton, president, Overton & Associates, LLC.

Second Quarter 2013 | 13

2012 Maryland BankPAC Contributors

Maryland BankPAC has raised $131,785 towards our 2011-2014 cycle goal of $250,000. For more details on how your bank can become involved in Maryland BankPAC, please contact Maryland BankPAC Treasurer Lynn Mitchell (443-837-1603 or lmitchell@mdbankers.com).

Contributors – Includes banks whose employees made individual contributions in 2012: Baltimore County Savings Bank Bank of Ocean City Bay Bank, FSB Calvin B. Taylor Banking Company Chesapeake Bank of Maryland CNB Community Bank of Tri-County

GF_Banker'sNewsletter 1/11/12 1:07 PM Page 1

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

14 | The Maryland Banker

County First Bank Damascus Community Bank EagleBank Farmers & Merchants Bank First United Bank & Trust Frederick County Bank Hamilton Bank Harford Bank Hebron Savings Bank Homewood Federal Savings Bank Howard Bank M&T Bank Maryland Financial Bank Maryland Title Center Monument Bank New Windsor State Bank OBA Bank Old Line Bank Prince George’s Federal Savings Bank Provident State Bank Queenstown Bank of Maryland Revere Bank Rosedale Federal Savings & Loan Association Sandy Spring Bank Shore Bank Slavie Federal Savings Bank SunTrust Bank (Good Gov’t Mid-Atlantic PAC) Susquehanna Bank Susquehanna Bancshares PAC The Bank of Glen Burnie The Columbia Bank (Fulton PAC) The National Bank of Cambridge The Peoples Bank Woodsboro Bank ■

Mar yland Bankers Association Professional Development Calendar SPECIAL EVENTS

SCHOOLS, AND ONLINE TRAINING

April 1 April 15

April 29

May 6 May 13

June 10

Executive Management & Directors

Lending

Council of Professional Women

May 2

in Banking and Finance (Inaugural June 2-5 July 29August 2

Annual Conference) MBA Annual Convention Maryland Banking School

SEMINARS, WEBINARS,

March 21 April 2

Capital Planning: Basics (GSB) Fraud Schemes and Internal Controls (GSB)

Finance Overlooked Profit Opportunities in Longer Term Core Deposits (GSB) April 1 Analyzing Financial Statements (AIB) April 3 & 10 Liquidity Risk: Implementing an Effective Program (GSB) March 20

General Banking March 18

Law & Banking: Principles (AIB) Principles of Banking (AIB) Economics for Bankers (AIB)

April 1 April 15

May 6 June 17

Principles of Banking (AIB) Principles of Banking (AIB) General Accounting (AIB) Supervisor Certificate (AIB) Money & Banking (AIB) Law & Banking: Applications (AIB) Principles of Banking (AIB) General Accounting (AIB) Law & Banking: Principles (AIB) Principles of Banking (AIB) Economics for Bankers (AIB) Principles of Banking (AIB) General Accounting (AIB)

Analyzing Financial Statements (AIB) Introduction to Agricultural Lending (AIB) Consumer Lending (AIB) Analyzing Financial Statements (AIB) Introduction to Agricultural Lending (AIB)

Human Resources/Management March 20

April 10

April 21-26

Human Resource Management School (GSB)

Marketing March 21

Managing the Customer Experience It’s a Bottom Line Necessity (GSB)

Security & Technology March 27 April 10 April 7-12

Five Steps to a Successful IT Risk Assessment (GSB) IT Audit For Community Banks (GSB) Bank Technology Management School (GSB)

Trust April 3 April 10 April 17 April 22 April 24 May 1 May 8

Advanced HSAs (GSB) Traditional IRA Distributions (GSB) IRA Contributions (GSB) Basic Administrative Duties of a Trustee (AIB) IRA Required Minimum Distributions (GSB) Establishing and Amending IRAs (GSB) IRA Reporting (GSB)

Eight Habits of Effective Bank Managers (GSB) Coaching for Better Performance (GSB) Interviewing Skills for Better Hires (GSB)

A Local ABA Training Provider

For detailed and updated information on all professional development programs, visit the Calendar section of the MBA’s website at www.mdbankers.com.

Second Quarter 2013 | 15

With changes in technology, regulations, demographics and consumer demand, we can help your branch do something dramatic. Change.

Changes in the market and consumer behavior are forcing financial institutions to make equally significant changes. Diebold is uniquely equipped to help with your branch transformation in a way that enhances the customer experience, improves efficiencies, mitigates risk and increases sales. With Diebold, change is very good.

It’s why Diebold has remained an innovative leader for more than 150 years.

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

1.800.806.6827 branchtransformation@diebold.com