Maryland Banker 2Q 2015 by The Warren Group

SECOND QUARTER 2015

MARYLAND

HOMETOWN BANKERS NATIONAL AD CAMPAIGN CELEBRATING BANKERS’ WORK IN THEIR COMMUNITIES RESONATES WITH MARYLAND BANKERS

THE OFFICIAL PUBLICATION OF THE MARYLAND BANKERS ASSOCIATION

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CHAIRMAN John A. Scaldara, Jr. Chairman and CEO The Columbia Bank

SECOND QUARTER 2015

CHAIRMAN-ELECT Daniel J. Schrider President and CEO Sandy Spring Bank

Contents

MARYLAND

HOMETOWN BANKERS NATIONAL AD CAMPAIGN CELEBRATING BANKERS’ WORK IN THEIR COMMUNITIES RESONATES WITH MARYLAND BANKERS

VICE CHAIRMAN George D. Swygert, Jr. Regional Executive Capital One, N.A.

THE OFFICIAL PUBLICATION OF THE MARYLAND BANKERS ASSOCIATION

PAST CHAIRMAN Robert A. DeAlmeida President and CEO Hamilton Bank

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

President & CEO Kathleen M. Murphy

Maryland Bankers Association

Publication Editor Cynthia L. Gentilcore Maryland Bankers Association

Board of Directors Judy Balloff Director, Enterprise Client Coverage, Bank of America Calvin E. Barker, Jr. Regional President-Baltimore Metro Region, BB&T George J. Behr, Jr. President and CEO, Arundel Federal Savings Bank Andrew M. Bertamini Regional President, Maryland Market, Wells Fargo Bank, N.A. James R. Bosley, Jr. President and CEO, Farmers & Merchants Bank Kenneth C. Cook President and Vice Chairman of the Board, Revere Bank Ralph W. Emerson, Jr. Senior Vice President, M&T Bank Raymond W. Hamm, Jr. Market Executive Greater Maryland, Executive Vice President, PNC Bank, N.A. Michael E. Hough CEO of Maryland Division, Susquehanna Bank Kim Liddell Chairman, President & CEO, 1880 Bank Michael G. Livingston President and CEO, The Bank of Glen Burnie Carissa L. Rodeheaver President and CFO, First United Bank & Trust Raymond M. Thompson President and CEO, Calvin B. Taylor Banking Company J. Scott Wilfong Chairman, President and CEO, SunTrust, Greater Washington/ Maryland, SunTrust Bank

12 message from the Chairman The Power of Coming Together – Once Again

message from the president Dynamic.Proactive.Resourceful

2015 ‘First Friday’ Economic Outlook Forum

Recent Internal Audit Trends in Banking

Maryland Hometown Bankers

Building Loyalty with Millennials Through Financial Education 17

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professional development calendar 22

20 Second Quarter 2015 | 3

Message from the Chairman JOHN A. SCALDARA, JR. | MBA CHAIRMAN CHAIRMAN & CEO THE COLUMBIA BANK

The Power of Coming Together – Once Again

ou will recall that last fall we asked our members to come together to provide feedback through an assessment of the MBA so that we could incorporate your perspectives into the strategic planning process the MBA board of directors had undertaken. We wanted to know how important and how valued the Association’s mission activities are to you in the areas of advocacy, communications and public relations, professional development, member services and financial education as well as seek your perspective about emerging issues, challenges and new activities. Just as we do within our own banks, the preparation that goes into a successful strategic planning retreat is key. Through the summer and fall, we assembled information and feedback. So when the MBA board of directors came together with recent Association chairmen and staff leadership for a planning retreat in November, we had a very impactful and productive day. I am very excited about the MBA’s new strategic plan, a plan that will set our course for 2015 – 2018. See the President’s Column to learn about our new Vision, Mission and Power Statement. Here, I want to share with you the key outcomes of the planning process and the strategic priorities guiding us. These priorities are intrinsically linked. Our overarching priority will be to strengthen member engagement in the coming years. As a trade association our members are the banks themselves, yet our member banks are successful through the dedication and commitment of their directors, officers and employees. Engaging more deeply with bankers across Maryland is a priority. We will do this through enhanced member outreach; segmented communication activities including the use of social media; by engaging the next generation of banking leaders, especially millennials; and building on an already engaged board of directors.

MBA advocacy on behalf of the industry continues to be of greatest importance to our members and most highly valued. So maintaining “rock star” advocacy is the lens through which we will be guided. We will do this by building and strengthening relationships with new and returning Maryland public policymakers at all levels; by improving how we communicate about our policy successes as well as trumpet industry successes to legislators; by strengthening Maryland BankPAC and through a more robust process for ensuring that we have leadership resources to be the best advocates we can be. Just as our members are keenly focused on growth, profitability and achieving greater efficiencies, the third priority is for the long-term sustainability of the MBA. Our trends are moving in the right direction and we want to continue that momentum through expansion of programs and services to address industry challenges and member needs; expanding membership ranks and exploring new categories of membership and by building on a growing array of focused partnerships and alliances. The power of an association comes from the collective strength of its members. Just as two bank leaders came together 119 years ago to create the Maryland Bankers Association, bankers and banks of all sizes and all charter types are today’s Maryland Bankers Association, working together to promote the strength and success of Maryland banks and bankers. You will continue to hear about the progress we make in achieving our strategic priorities. I’m excited about what the future holds. Let me know how we are doing. ■ John Scaldara is the chairman of the Maryland Bankers Association. Reach him at jscaldara@thecolumbiabank.com. Second Quarter 2015 | 5

November 5, 2014

Save the Date!

BWI Marriott Hotel Linthicum, MD

119th Annual Convention of the

Maryland Bankers Association

May 31 - June 3, 2015 at

The Greenbrier White Sulphur Springs, WV

Mark your calendar now. Details to follow.

6 | The Maryland Banker

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

Dynamic.Proactive.Resourceful

n his column in this issue of The Maryland Banker, MBA Chairman John Scaldara shares with you the valuable input we received from our members as we prepared for our board’s planning retreat last November. He also outlines the three strategic priorities that will guide the MBA’s work into 2018. In my last column I wrote about the board’s planning retreat and about 2020 Vision. The old adage is that hindsight is 20-20. Yes, we’ve learn a lot from the past; our 119-year history lets us measure our accomplishments and test our resolve. And our future is very promising. The Vision for the MBA as we approach the year 2020 is in clear focus. It’s forward looking and inspirational. The Maryland Bankers Association is the dynamic, proactive and resourceful leading advocate for Maryland banks and the banking industry, equipping members for continued relevance and success in a rapidly changing world. As I drafted this vision statement, I kept coming back to three words – Dynamic, Proactive and Resourceful. These three words capture what the MBA has been and strives to be.

We know that the banking industry continues to evolve and, with the evolution, the MBA evolves. We are dynamic and ever-changing, and we will continue to be. Being proactive has been a mainstay of our advocacy success. The minute we hear about an issue that concerns us, we are meeting with policymakers, making our industry’s views known. Likewise, we don’t wait for a crisis to occur – we work to get ahead of it. This proactivity will continue to be important in developing professional development programs and member services which will equip our members for continued success in this rapidly changing world. Our resourcefulness has enabled us to partner with other organizations, state associations, service providers, national associations, government officials and members to develop new solutions for our members, as well as address emerging issues and existing challenges. Our “old” mission statement was, “Making Maryland banks stronger and more successful.” It was a good mission statement and one that has guided us for seven years. Yet, as we sat back and thought about the words, it occurred

to us that the MBA can’t “make” banks stronger and more successful. We can create an environment and be a resource for our members to succeed. Additionally, as John Scaldara has said in his column, member engagement is our top priority. And it’s not about engagement of the institution, but of the directors, officers and employees who make our members strong and successful. I am excited about our new Mission statement: Promoting the strength and success of Maryland banks and bankers. Our new mission statement captures what we do; and the strategic shift is that we do it for banks and bankers. So, it likely won’t be a surprise to you that our new Power Statement is: Dynamic.Proactive.Resourceful That’s the MBA: our vision, our mission and our power. The year 2020 will be here before we know it. We won’t know everything the future holds, but our path together is clear. ■ It’s my honor to serve this great industry. Please contact me at any time to discuss issues of importance to you at kmurphy@mdbankers.com or 443-837-1601. Second Quarter 2015 | 7

Anirban Basu, chairman and CEO, Sage Policy Group.

Anika Kahn, director and senior economist, Wells Fargo Securities, LLC, and Gregory Miller, chief economist, SunTrust Bank.

Dr. Andrew Bauer, senior regional economist, Federal Reserve Bank of Richmond– Baltimore Branch.

2015 ‘FIRST FRIDAY’ ECONOMIC OUTLOOK FORUM

Dr. Quincy Krosby, chief market strategist, Prudential Annuities.

The 8th Annual “First Friday” Economic Outlook Forum was held on January 9, 2015, at the Renaissance Harborplace Hotel in Baltimore, Maryland. Business leaders and bankers from across the state joined together to gain insight into the factors that will affect the market and economy. Anirban Basu, chairman and CEO of Sage Policy Group, kicked off the event with a regional and local economic update. Then, he moderated an expert panel of bank economists as they identified trends in various market segments. Panelists included Anika Khan, director and senior economist with Wells Fargo Securities, LLC, and Gregory Miller, chief economist with SunTrust Bank. Remarks where then followed by Andrew Bauer, senior regional economist of the Federal Reserve Bank of Richmond – Baltimore Branch, giving his reasons to be optimistic about the economy this year. Finally, keynote speaker, Dr. Quincy Krosby, chief market strategist for Prudential Securities, addressed the group with a look ahead for the economy and the impact on business. ■

SAVE THE DATE – Next year’s event will take place on Friday, Jan. 8, 2016. 8 | The Maryland Banker

Thank you To Our Generous Sponsors! Gold Sponsors Old Line Bank Sandy Spring Bank SunTrust Bank Wells Fargo Bank, N.A.

Silver Sponsors Capital One, N.A. PeoplesBank, A Codorus Valley Company

Patron Sponsors Arundel Federal Savings Bank Bay-Vanguard Federals Savings Bank BB&T Business Finance Group, Inc. Carroll Community Bank Community Bank of the Chesapeake Dixon Hughes Goodman LLP Farmers & Merchants Bank Federal Home Loan Bank of Atlanta Hamilton Bank Howard Bank M&T Bank New Windsor State Bank Revere Bank Shapiro Sher Guinot & Sandler Shore Bank Stegman & Company Susquehanna Bank The Bank of Glen Burnie The Columbia Bank UHY Advisors Woodsboro Bank

Shared Patron Sponsors Harford Bank Rosedale Federal Savings & Loan Association

Participating Associations Maryland Association of CPAs Maryland Chamber of Commerce Maryland Realtors Association Maryland Retailers Association

More than 500 bankers gathered for the 8th Annual “First Friday” Economic Outlook Forum.

GF_Banker'sNewsletter 1/10/14 8:30 AM Page 1

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

D. Robert Enten Carla Stone Witzel David S. Musgrave Marjorie A. Corwin Peter B. Rosenwald, II Christopher R. Rahl Brian L. Moffet Andrew D. Bulgin John C. Morton Victor A. Kwansa Travis W. Dalton Attorneys at Law 233 E. Redwood Street n Baltimore, MD 21202 410-576-4000 n www.gfrlaw.com

Second Quarter 2015 | 9

Recent Internal Audit Trends in Banking By Wesley Allen and Lori Charlebois

bank’s internal audit function faces a myriad of evolving trends and regulatory scrutiny. Staying ahead of the curve is a challenge. Here are a few key trends to keep top of mind, as state and federal regulators display a renewed focus on rigorously evaluating the internal audit function. Competency or experience – As an institution continues to grow, products and services become increasingly complex, requiring experienced personnel to complete the audits. Internal auditors need to ensure audit work-programs for highly technical audits (e.g., Bank Secrecy Act, information technology and trust operations) are robust and commensurate with the size and risk profile of the institution. Ensuring that internal audit personnel are credentialed or appropriately experienced in the audit areas is key to avoiding regulatory scrutiny over competency. Risk assessment process – The risk assessment narrative should be business-line specific with an audit universe at a sufficiently granular level to ensure all legal entities and potential audit areas are identified, assessed and audited in a timely manner. The risk assessment should

10 | The Maryland Banker

be tailored to an appropriately disaggregated level to allow risk identification at the appropriate level. The conclusion reached must be documented both quantitatively and qualitatively. Finally, the audit plan should align with audit area rotations and the hours allocated to each area. Sampling – There is no right answer to the question: “what is an appropriate sample size?” Each audit is unique. However, regulator consternation tends to occur when the sample size does not appear to be representative of the population. With the Sarbanes-Oxley Act, internal audit’s focus has turned to auditing internal control over financial reporting (ICFR). Certain industry-accepted sample sizes have emerged for auditing ICFR that may not be appropriate when applied to a non-financial reporting audit. Pick a sampling methodology, properly document it and stick with it throughout the audit cycle. If a deviation from the mandated sample size is required, robust documentation should be included in the audit work papers to support that conclusion. Tracking and remediation of audit exceptions – Exception tracking and reporting exceptions to the

audit committee should include all findings, including findings identified by: regulators, management, thirdparty vendors, internal audit, external audit, systematic deficiencies identified through the loan review function, 401(k) auditors, compliance auditors or others. Also, bank regulatory agencies are focusing on the timeline for correcting audit issues and whether appropriate follow up actions occurred to validate closure of the issue. The process for validating management’s remediation efforts of deficiencies should occur in a timely manner. In many instances, validation of remediation of a significant finding will need to occur before the next regularly scheduled audit, which may not be for another 36 months. Outsourcing – The administration and oversight of the internal audit function is a significant area of focus and review by the regulatory agencies, including banks that outsource certain internal audit tasks. Regulators have continually emphasized that audit committees cannot delegate responsibility of the internal audit to a vendor. Therefore, regulators will be evaluating how the bank oversees the outsourcing relationships. In closing, one of the key trends in internal audit at financial institutions is the renewed regulatory focus on the internal audit function. Careful attention should

be paid to ensure that the right amount of resources are invested in the internal audit function to make it as effective as possible. Addressing staffing competency, the risk assessment process, exception tracking, outsourcing and sample sizes may require additional investments in training or resources. The audit committee, management and the internal audit function must come together and collaboratively strike the right balance between addressing regulatory concerns and the ever present constraint of limited resources. ■

Allen Wesley

Wesley Allen is a director in DHG Financial Services. He has more than 12 years of public accounting experience, working with financial institutions in the areas of process and control evaluation, internal audit and compliance. Wesley can be reached at wesley.allen@dhgllp.com.Lori Charlebois, partner, DHG Financial Services, is based in Rockville, Maryland, and has more than 24 years of experience, working with financial institutions and mortgage companies with an emphasis in internal controls.

Lori Charlebois

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Second Quarter 2015 | 11

MARYLAND

HOMETOWN BANKERS NATIONAL AD CAMPAIGN CELEBRATING BANKERS’ WORK IN THEIR COMMUNITIES RESONATES WITH MARYLAND BANKERS

12 | The Maryland Banker

Jessica Moliere

Stephanie O’Keefe

Jeffrey Weidley

Carissa Rodeheaver

Buddy Emerson

By Anna Sims

ate last year, the American Bankers Association (ABA) unveiled the Hometown Bankers campaign, its first paid media campaign since the 1990s. The national ad campaign, which includes TV and radio spots as well as print advertisements, aims to highlight the many ways that bankers across the country influence and improve their communities. The ABA began working on the campaign in the fall of 2014 when a new Gallup poll revealed that Americans had a positive view of the banking industry for the first time since 2007. “It was the collective thought of the ABA that we should take advantage of the momentum and say something positive about the industry overall,” said Stephanie O’Keefe, executive vice president of communications at the ABA. Thanks to public opinion research that the ABA had been collecting for a few years prior, the organization knew what customers valued most about their banks: They valued safety, convenience and, overwhelming, they valued their personal bankers. “It’s kind of like Congress. You like your congressman, even if you don’t like Congress. And you liked your banker, even if you weren’t entirely happy with the industry. So there’s a very personal piece of this,” O’Keefe said. The ABA knew it needed to bring that personal piece to the campaign if it was going to be successful. Still, it was no small task to create a single campaign concept that would resonate with all of the banking industry. “Banks have a hard time with image. I think that’s because as an industry, we’re so diverse. Some are extremely big, some are much smaller, and we do things in different ways,” said Jeffrey Weidley, vice president and business banking division leader at Sandy Spring Bank.

The ABA worked with a firm to help create a campaign concept that would resonate with “policymakers and influencers” and show that banks “were not faceless corporate entities. We wanted to communicate the way that bankers feel about what they do,” O’Keefe said. “Eventually, we came to the phrase ‘hometown bankers.’ It was fresh. You see the idea of ‘community’ talked about a lot, but this was something new. It really conveyed the idea that it doesn’t matter if you’re a branch manager for the largest bank in the country or the CEO of a smaller bank, you’re still working with the folks in your community.” The concept has resonated well with many MBA members, each of whom has connected with the idea in their own way on what it means to be a Hometown Banker. “A hometown banker is one who is easily recognizable and is not only embodied by many different types of people, but thrives in all settings,” said Buddy Emerson, executive vice president of M&T Bank. “A hometown banker provides the leadership that is furnished by an independent bank, owned and operated by members of the community for the betterment of all local citizens. Simply put, community is our strength,” said Charles H. Jacobs Jr., president and CEO at Harford Bank. “To me, being a hometown banker is knowing your customer totally. Greeting them anytime, anywhere, and showing that you are truly interested in their financial well-being,” said E. Duane Arch, branch manager at The Columbia Bank and a student at MBA’s Maryland Banking School. Rather than hiring actors, the campaign ads feature real bankers, giving the Continued on page 14

Second Quarter 2015 | 13

campaign a special layer of authenticity. “People can see through empty words,” O’Keefe said. “The image of the campaign needed to align with the reality of the institution.” The featured bankers work in all parts of the country at organizations of different sizes and business models, illustrating that hometown bankers truly are everywhere. This same diversity and passion for their work can be found in the bankers of Maryland. Like Weidley, who serves as president of the Northern Anne Arundel County Chamber of Commerce and as a Next

Generation board member at the Baltimore Washington Medical Center Foundation, and always makes time to get to know his customers on a personal basis so that he can provide them with the best service. “It’s one thing to manage the risk of banking while working from some far-off place and looking at spreadsheets. It’s another thing to know people, to work with them and get a sense of who they are,” Weidley said. Or Carissa L. Rodeheaver, president and chief financial officer of First United Bank & Trust, who serves on the board of directors at Garrett College, works in

America’s hometown bankers

look forward to working with the

114th Congress.

Paid for by Financial Education and Advocacy Initiative (FEAI)

American Banker Association The Hometown Bankers Print advertisement.

14 | The Maryland Banker

the concession stand at her son’s sports games and is always available to offer financial advice to friends and community members whether she’s in her office attending local sporting events or plays. “As a banker, you’re always on,” she said. Or Jessica Moliere, vice president and market relationship manager at Sandy Spring Bank, who sits on the finance committee at her church and participates in the American Cancer Society’s Relay for Life with her kids and said she “adores” her bank and its customers. “I love what I do because I get to change people’s lives … I get to help people start their families, help them retire, and I’m so proud of what I do.” Though the campaign has only been running for a couple of months, O’Keefe said the initial feedback is “very good.” The campaign is reaching the policymakers and influencers that the association wanted to reach, while presenting the bankers for “what they actually are” rather than the “distorted” image of bankers that emerged during and in the years following the financial crisis. Moliere agreed that in the years following the financial crisis, “it was really hard for business owners to trust bankers, and it took time for them to trust us again. We had to show them that we’re not just bankers who are going to come and take their house away, take their business away. We’re here to help them get through it, and show them that we don’t want them to fail.” To Emerson, this is the spirit that hometown banking is all about. “The culture of the overwhelming majority of banks is one of being involved and truly caring about your community,” Emerson said. “The compassion resonates in the work individuals do to encourage capital formation, job creation and a better way of life for all members of the community. The commitment is an ongoing one – never completed, always improved upon from year to year and enriching to all it touches. The hometown banker is one who is never done supporting the dreams of others.” ■ Anna Sims is associate editor with The Warren Group, publisher of The Maryland Banker.

DID YOU KNOW? Reach of Maryland Banking Industry

116 69 1,700 40,000 $123.6 billion

FDIC-insured banks serve customers in every city, town and community across Maryland

banks operating in Maryland are State-headquartered branches across Maryland in nearly every city, town and community

Banks Power Maryland Businesses

$3.5 billion 65% $1.1 billion

in small business loans financed in 2013 totaling 83,400 loans

increase in Small Business Administration (SBA) Loans made by Maryland banks since 2009 In loans under $100,000 financed totaling almost 88,000 loans issued by the Community Reinvestment Act Lending institutions in Maryland

banking professionals employed by the Maryland banking industry the amount that Maryland banks hold in deposits

Banks Help Maryland’s Communities and Nonprofits Succeed

$16.5 million 92,000 790+

amount contributed to 3,800+ Maryland community and charitable organizations

hours of volunteer time contributed to Maryland community and charitable organizations

number of bank employees that serve in leadership positions with community and nonprofit organizations in Maryland – about 19 per bank

Maryland Banks Fuel Homeownership

103,470+ 71,000+ 32,000+ 44,300

Maryland residential mortgage loans made in

2013 totaling

$27.7 billion

$9.7 billion

Amount of Commercial & Industrial Loans financed by Maryland headquartered banks totaling

$100 million+

Amount of Community Development Loans financed in Maryland

Maryland Banks Have Stood the Test of Time

1868 Three in Five 73% 47%

Year the oldest Maryland bank was established - 174 years ago Maryland banks (59%) were founded before the Great Depression

Banks in business for more than 50 years Banks in business for more than 100 years

Maryland mortgage loans refinanced in 2013 totaling

$18 billion

Maryland mortgage loans putting people into new homes in 2013 ($9.7 Billion) Number of Maryland home loan modifications provided by one institution since 2008

Banks Support Local Community Priorities – Like Environmental Commitment Amount financed by one bank for renewable energy and energy efficiency projects and support of nonprofits focused on climate change

$97 Million

This is one example of how Maryland banks help local communities fund many key priorities, reflective of the communities they serve.

Questions? Contact MBA’s Public Policy Team: Kathleen Murphy MBA’s President & CEO kmurphy@mdbankers.com

Mindy Lehman MBA’s Vice President of Government Affairs mlehman@mdbankers.com

Alex Choi Government Affairs Specialist achoi@mdbankers.com

Bob Enten MBA General Counsel denten@gfrlaw.com

186 DUKE OF GLOUCESTER STREET • ANNAPOLIS, MARYLAND 21401 (410) 269-5977 • (800) 327-5977 • FAX (410) 269-1874 • Web Site: www.mdbankers.com

Second Quarter 2015 | 15

“Leadership and learning are indispensable to each other.” -John F. Kennedy

16 | The Maryland Banker

Building Loyalty with Millennials Through Financial Education

ith a new year upon us, most banks are evaluating their marketing plans and asking, “What are we going to do differently in 2015?” A key priority for many banks is to find new ways to strengthen their relationship with Millennial consumers. But effectively engaging this savvy, independent and often skeptical generation can feel like a daunting task, especially when the media often paints a negative picture of Millennials’ mistrust of banks. At EverFi, we’ve helped millions of young people build their financial know-how, and we believe there is a tremendous opportunity for banks to use digital education to connect with the “mobile-first” generation of consumers. Our research shows that offering financial education is a highly effective way to engage Millennials, earn their trust and increase their wallet-share. But in order to effectively connect with this demographic, banks must first understand and adapt to Millennials’ style and embrace their preferred methods of communication. In November 2014, we surveyed hundreds of Millennials on their relationship with their primary bank, and the majority of respondents used words like “transactional” and “boring” to describe this relationship. When asked to rate the relationship on a 1 to 5 scale, the majority of respondents felt completely “neutral.” In a world in which many banks are competing on the same features and brand is a critical differentiator, “neutral” is simply not enough. So what can banks do to strengthen their brand with Millennials and become a trusted source of financial guidance? Our survey revealed that Millennials want help when it comes to managing their finances, specifically, training on how to avoid fees, better mobile tools and education on relevant products that will help them stay on a budget and manage student debt. In fact, two-thirds of respondents said that they would actually like more communication from their bank if the information provided is relevant, beneficial and not overly commercial. In order to effectively reach Millennials and provide this financial guidance, mobile engagement is key. According to the Federal Reserve, more than 70 percent of Millennials have used mobile banking services within the last 12 months, compared to only 40 percent for the remaining adult population. At EverFi, we see this data play out every day. The vast majority of traffic to our adult education platform comes from a smartphone or tablet.

Secondly, Millennials have short attention spans and want on-demand access to information when it fits their schedule, which may be outside of normal banking hours. Peak traffic to EverFi’s financial education platform is between 4 p.m. and 8 p.m., and 20 percent of traffic between 10 p.m. and 1 a.m. Banks must focus on providing short, fun and engaging content that can be accessed anytime, anywhere. Lastly, incentives are a highly effective means to get young people to engage with your educational offerings. Our partners have seen huge spikes in user activity by offering scholarships, contests, one-time fee forgiveness, a $25 savings account credit, or other incentives. A key takeaway here is that young people want help when it comes to managing their finances, but it has to be convenient relevant, and mobile-friendly. This presents an incredible opportunity for financial institutions to become that source of trustworthy guidance for the next generation of customers. In fact, consumers that engage with a company’s educational offerings are five times more likely to make a purchase than consumers reached by more traditional advertising campaigns. Millennials expect innovation in banking to come from outside the industry, either from high-tech startups or well-established names like Google, Amazon or Apple. But at EverFi, we’re helping community banks be the source of that innovation. Hundreds of leading banks are using our technology to build private-labeled financial education campaigns that empower consumers and build their trust and loyalty. ■ EverFi is a preferred provider of Maryland Bank Services Inc. (MBSI), the wholly owned for-profit subsidiary of the Maryland Bankers Association, to bring its interactive financial education platform to schools throughout Maryland. To learn more about EverFi, please contact Ryan Swift, EverFi’s vice president, business development, at (202) 251-2400 or ryan@everfi.com. Second Quarter 2015 | 17

News & Notes

Members on the Move

John A. Beck Jr.

Michael G. Himmel

Christy Lombardi

Arundel Federal Savings Bank elected two new directors to the board: Todd M. Bailey and David L. Costello III. Bailey is the principal and broker at Professional Properties, LLC, located in Gambrills, Maryland. He is the past president of the Anne Arundel County Commercial & Industrial Association. He is also a member of the National, Maryland and Anne Arundel County associations of Realtors and the West Anne Arundel County Chamber of Commerce. Costello is currently the chief operating officer for Arundel Federal Savings Bank. Prior to joining the bank, he served in executive level positions in other Baltimore area community banking institutions and was a senior manager at Ernst & Young. John A. Beck Jr. joined Carroll Community Bank’s (CCB) commercial lending division as senior vice president and regional team leader, Montgomery County/Metro Washington. Prior to joining CCB, he was most recently a senior vice president and commercial banking manager at OBA Bank. CCB named Michael G. Himmel as senior vice president and Howard County team leader, in the bank’s commercial lending division. His prior experience includes progressively more responsible commercial lending 18 | The Maryland Banker

Dawn M. King

Julie W. Peterson

positions at other community banks in the region. Carroll Bancorp Inc., the parent company of CCB, appointed Barry J. Renbaum to its board of directors. He was the co-founder and co-manager of Custom Savings Bank, a $350-million federal savings bank that consistently outranked its peer institutions in terms of profitability and asset quality. Chesapeake Bank & Trust Company announced Glenn L. Wilson as its new president and CEO of both the bank and the bank holding company, Chesapeake Bancorp. Wilson has experience with Maryland banking and has run 10 banks that are the same size as Chesapeake Bank & Trust. Community Bank of the Chesapeake promoted Christy Lombardi to chief administrative officer. She will be responsible for administrative and corporate governance matters for the bank, while continuing to oversee human resources. Lombardi joined the bank in 1998, and has served in a variety of capacities. She is also a graduate of MBA’s Maryland Banking School. First United Bank & Trust promoted Dawn M. King to vice president and director of credit risk. King has been with First United since 1991. Before becoming the director

Jared Balsbaugh

Carol Coughlin

of credit risk, she held a variety of positions including staff accountant, special projects manager, credit analyst and small business underwriting manager. Julie Warnick Peterson was promoted to vice president and director of special assets at First United Bank & Trust. Early in her First United career she served as a commercial services assistant. In 1993, she became a commercial lending officer and in 2005, she was promoted to vice president and commercial lending officer until 2011. After a brief break in service, she returned to First United in 2014 where she put her skills to use as the director of special assets. Jared Balsbaugh was named credit analyst in Fulton Financial Corporation’s commercial credit department. In this position, he will be responsible for reviewing and analyzing credit information for commercial loans. Balsbaugh comes to Fulton Financial Corporation from Wells Fargo Bank, where he held the position of securities analyst. Hamilton Bancorp Inc., the holding company for Hamilton Bank, elected Carol Coughlin as chairwoman of the boards of directors of Hamilton Bancorp Inc. and Hamilton Bank. Coughlin has served on the board of directors of Hamilton Bancorp, Inc.

Karen Stiltner, center with bouquet of flowers, surrounded by M&T’s client support team, at her 40th anniversary lunch celebration.

since 2012, when the company went public, and has served as director of Hamilton Bank since 2010. Coughlin is the founder of BottomLine Growth Strategies Inc., a growth advisory firm. Hamilton Bancorp Inc. also elected of Joseph Bouffard to its board of directors. With more than 25 years of experience working for Baltimore-based community financial institutions and more than 15 years serving as president for area community banks, Bouffard has extensive ties to the Baltimore banking industry. Most recently, he served as president and CEO of Baltimore County Savings Bank for eight years. Karen Stiltner, vice president and relationship manager, M&T Bank, celebrated her 40th anniversary on Jan. 27. Stiltner began her career in 1975 as a work-study for 1st National Bank of Maryland during her senior year of high school. She worked in the correspondent banking division (as it was called then) for 11 years, moving her way up through the ranks – from secretary to administrative assistant to operations officer. From 1986 to 2001, Stiltner worked in the investment division, where she managed the bond accounting and safekeeping services for the financial institutions clients. In 2002, she became a relationship manager. Over the past 12 years as a vice president and relationship manager, she has excelled based on her hard work, industry knowledge and outgoing

Scott C. Nicholson

Dan O’Neill

personality. She earned recognition in the elite President’s Council of M&T in 2009 for her sales efforts and earned Regional Sales Champion status in 2011 and 2012. She knows the business, loves her clients and enjoys helping others as shown through her many community service contributions over the years. She is currently the advisory board chairman of MBA’s Council of Professional Women in Banking & Finance. With nearly 30 years of banking experience, Kathy Stevens joins Middletown Valley Bank as vice president and client relationship officer. Prior, she worked for Susquehanna Bank, where she held the title of vice president and market manager. Monument Bank appointed Sharon C. Cantrell as senior vice president and senior commercial lender. She will lead the bank’s commercial lending team, focusing on building relationships with small and mediumsized businesses. Monument Bank’s Scott C. Nicholson was promoted to senior lending officer. Nicholson was hired in July 2014 as a senior vice president and senior commercial leader. As the senior lending officer, he will oversee the entire loan division, as well as continuing to develop commercial real estate opportunities.

Ian Riddle

Jennifer Taylor

Dan O’Neill has been named president of SunTrust Bank’s Greater Washington and Maryland Division. O’Neill has 23 years of experience at SunTrust, most recently as SunTrust’s wholesale risk executive. He began his banking career in the management associate program with Citibank in New York in 1986. Ian Riddle was named vice president and relationship manager, commercial banking, for The Columbia Bank. He has over 15 years of banking experience before joining bank. In his new position, Riddle will be responsible for building, developing and managing new commercial banking relationships, and enhancing service for existing commercial banking customers. Jennifer Taylor joined The Columbia Bank as vice president of commercial real estate. In her role as a middle market commercial real estate lender, she will be responsible for providing customized financing solutions for real estate developers and investors throughout Maryland. Jordan Wycoff joined Bank Financial Services Group’s (BFS Group) Northeast team as a regional director. Prior to joining BFS Group, he was a vice president with Sterne Agee in the fixed income department based out of the New York office. ■ Second Quarter 2015 | 19

News & Notes Members in the Community

House Speaker Mike Busch (left) and Delegate Herb McMillan (right) are pictured with team representatives (left to right) founder Mike Ashford, MBA’s Pat Holle and team captain Joni Adrian Morgan.

Honored in the Maryland General Assembly On February 2, 2015, MBA’s Pat Holle was among those honored by the Maryland General Assembly. Holle is president of the Annapolis Dragon Boat Club, which was recognized for being the only Maryland dragon boat team competing in an international event last fall with over 3,000 other breast cancer survivors from around the world.

New Commercial Loan Office in Annapolis Community Bank of the Chesapeake’s newest commercial loan office opened in February in Annapolis. Donald Parsons Jr., senior vice president, senior lender, will lead the bank’s lending effort in Anne Arundel County, providing custom solutions and comprehensive services to business customers.

Share Your News What’s happening in our business? Have news to share? Celebrating a milestone? Share your bank’s achievement. Send your news and photos to MBA’s Cindy Gentilcore at cgentilcore@mdbankers.com. 20 | The Maryland Banker

Pictured, from left: Bill Grant, chairman, Leadership Maryland, and chairman and CEO of First United Bank and Trust; MBA’s Mindy Lehman; Renee Winsky, president and CEO, Leadership Maryland; and Buddy Emerson, immediate past chairman, Leadership Maryland, and senior vice president, M&T Bank.

Leadership Maryland Class of 2014 In December, Mindy Lehman, MBA’s vice president of government affairs, celebrated her graduation with the Leadership Maryland Class of 2014. Leadership Maryland was created in 1992 to cultivate the interest, the statewide knowledge and the leadership capacities of Maryland’s leaders. Fifty accomplished and diverse leaders are selected for the program annually by their peers. Other banking leaders also graduating in 2014 were Dave Esworthy, Frederick County market area president of First United Bank and Trust, and Brian Walter, group vice president, commercial banking of M&T Bank.

New Lending Office in Annapolis In January, CFG Community Bank opened a new loan production office to further serve the Annapolis and Anne Arundel County markets. This new office will be led by J.D. Zachry who has over 15 years of banking and lending experience. He will focus on serving small to mid-size commercial loan needs for businesses in Anne Arundel and surrounding areas. The loan production office will be in addition to the full service branch in Annapolis.

40th Annual Mayor’s Business Recognition Awards Luncheon

Holding the award is Augie Chiasera, regional vice president, M&T Bank; to his right, MBA’s Council of Professional Women in Banking and Finance Advisory Board Chair Karen Stiltner, M&T Bank, and Advisory Board Vice Chair Irvina Mallory,The Harbor Bank of Maryland. Far right, MBA’s President and CEO Kathleen Murphy, along with representatives from M&T Bank, The Family Tree, Baltimore Ravens and Westport Academy.

At the 40th Annual Mayor’s Business Recognition Awards Luncheon, held on Dec. 2, 2014, at the Hyatt Regency in Baltimore, which honors businesses that have demonstrated significant corporate leadership and service for a better Baltimore and have committed resources to improving the quality of life in Baltimore City, the MBA’s Council of Professional Women in Banking and Finance was recognized for its partnership with M&T Bank, The Family Tree and the Baltimore Ravens, for “15 for Families” and the distribution of new shoes at Westport Academy in Baltimore this past summer. Other MBA member banks that were honored at the awards luncheon for their work in Baltimore City were PNC Bank, N.A. and Wells Fargo Bank, N.A.

Second Quarter 2015 | 21

Mar yland Bankers Association Professional Development Calendar A Local ABA Training Provider

SPECIAL EVENTS May 7

Council of Professional Women in Banking and Finance Annual Conference

May 31-June 3

MBA Annual Convention

August 3-7

Maryland Banking School

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

www.mdbankers.com.

SEMINARS, WEBINARS, SCHOOLS, AND ONLINE TRAINING Compliance

Lending

April 7 Regulation E Made Easy (GSB) August 4-5 Bank Secrecy Act Two-Day School (PBS)

April 21 May 4 May 11 May 14 May 20

Finance April 6 April 7 April 28

Managing Interest Rate Risk (ABA) Managing a Dynamic ALCO (GSB) Bank Capital Planning (GSB)

General Banking April 9 April 13 April 27 May 4 May 11

Eight Habits of Effective Bank Managers (GSB) General Accounting Principles of Banking (ABA) Law & Banking: Applications (ABA) Money & Banking (ABA) Principles of Banking (ABA) Supervisor Certificate (ABA) General Accounting (ABA) Principles of Banking (ABA) Economics for Bankers (ABA) Law & Banking: Principles (ABA) Principles of Banking (ABA)

HR Management April 16 Leverage the Middle of Your Organization (GSB) April 17 Coaching for Better Performance (GSB) April 19-24 HR Management School (GSB) April 21-24 Advanced HR Leadership Seminar (GSB) April 23 LinkedIn Value Strategies (GSB) May 5,12,19 Employment Law Update (GSB) May 8 Handling Conflict in the Workplace (GSB)

Lending April 6 Analyzing Financial Statements (ABA) Commercial Lending (ABA) April 7 Problem Loan Identification and Prevention (GSB) Key Ratio Analysis (GSB) April 13 Consumer Lending (ABA) April 14,16 Landscape of Agriculture Today and Tomorrow (GSB) April 14,21 Financial Statement Projections (GSB) April 14,21,28 Business Cash Flow Basics (GSB)

22 | The Maryland Banker

Implementing a Continuous Improvement Process (GSB) Analyzing Financial Statements (ABA) Using Credit Risk Ratings to Determine Asset Quality (GSB) Consumer Lending (ABA) Collateral Evaluation in C&I Lending (GSB) Loan Administration: A to Z (GSB)

Sales & Marketing April 9 April 16 April 20 May 4 May 6 May 19

Build an Effective Referral Program in 60 Days (GSB) Essentials to Improve Your Business Development Program (GSB) Marketing Financial Services (ABA) The First Three Calls on a Prospect (GSB) Recipe for an Effective Sales Environment (GSB) Is It Time Your Bank Considers a Social Selling Strategy? (GSB) Becoming a Resource Manager (GSB)

Security & Technology April 3 April 9 April 12-15 April 12-17 April 22 April 29 May 6 May 13 May 14

Top Trends for Community Banks (Webinar) Corporate Account Takeover (GSB) Advanced IT Forum (GSB) Bank Technology Management School (GSB) Easy to Use Audit Tools that Won’t Break the Bank (GSB) Hacking Headlines (GSB) Group Policies for Securing Your Microsoft Network (GSB) Catching the Evil Insider (GSB) Beginners Guide to Information Security (GSB) Is Your Cybersecurity Risk Assessment Complete? (GSB) Four Components of a Social Tech Strategy (GSB)

Trust April 8 April 15 April 20 April 22 April 29 May 6

IRA Beneficiary Distributions (GSB) IRA Distributions (GSB) Basic Administrative Duties of a Trustee (ABA) Establishing and Amending IRAs (GSB) IRA Contributions (GSB) Rollovers Between Retirement Plans and IRAs (GSB)

...is the best Self‐Funded Solu�on for MBA member banks Advantages to Employer ■ Controls cost compared to trend: usually lower by 2‐3% ■ Provides likely cash ow benets vs. fully‐insured plans ■ Enables control of plan design ■ Eliminates carrier prot margin and risk charges ■ Becomes an eﬀec�ve risk management tool ■ Lowers cost of opera�on ■ Eliminates claims hurdles through contract control

Advantages to Employee ■ Taking pride in being part of the solu�on ■ Impac�ng their own payroll deduc�ons ■ Be�er overall personal health ■ Access to a health advocate to help with decisions and problems

MBA Benets Alliance will provide MBA member banks the ability to more closely control their health insurance costs, while providing exibility, support and service. If you are interested in exploring this program, please contact MBA's Cindy Gen�lcore (cgen�lcore@mdbankers.com|443‐837‐1602).

Second Quarter 2015 | 23

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