Maryland Banker 4Q 2015

FOURTH QUARTER 2015

Maryland Banking School Marks

of Developing Banking Leaders

THE OFFICIAL PUBLICATION OF THE MARYLAND BANKERS ASSOCIATION

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© 2015 Cetera Financial Institutions 08/15

CHAIRMAN Daniel J. Schrider President and CEO Sandy Spring Bank

FOURTH QUARTER 2015

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

Maryland Banking School Marks

VICE CHAIRMAN Michael G. Livingston President and CEO The Bank of Glen Burnie

Contents

of Developing Banking Leaders

THE OFFICIAL PUBLICATION OF THE MARYLAND BANKERS ASSOCIATION

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

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Maryland Bankers Association

Board of Directors James M. Anthony Chief Operating Officer, Severn Savings Bank

Maryland Banking School Marks 40 Years of Developing Banking Leaders

Judy Balloff Director, Enterprise Client Coverage, Bank of America Andrew M. Bertamini Regional President, Maryland Market, Wells Fargo Bank, N.A. James R. Bosley, Jr. President and CEO, Farmers & Merchants Bank

message from the chairman Planning for the Next Generation of Banking Leaders

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message from the president All Risks Are Not Created Equal

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The Importance of Having a Breach Response Plan In Place

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Kenneth C. Cook President and Vice Chairman of the Board, Revere Bank Sam DiPaola President, Maryland, SunTrust 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 William J. Pasenelli President & CEO, Community Bank of the Chesapeake Carissa L. Rodeheaver President and CFO, First United Bank & Trust Raymond M. Thompson President and CEO, Calvin B. Taylor Banking Company Thomas S. Wintz President & CEO, Rosedale Federal Savings & Loan Association

Now Is the Time for Your Bank to Move to a Self-Funded Health Insurance Plan!

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Compliance Alliance Members Offered Access to Numerous Benefits, Resources 15

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news and notes 17 professional development calendar 22

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Fourth Quarter 2015 | 3

4 | The Maryland Banker

Message from the Chairman

DANIEL J. SCHRIDER | MBA CHAIRMAN PRESIDENT AND CEO SANDY SPRING BANK

Planning for the Next Generation of Banking Leaders

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n my experience as a leader at Sandy Spring Bank, a board member of the Stonier Graduate School of Banking and working with the next generation within my local church, I’ve learned how important it is for this generation to engage in things that matter.

We are all looking to grow our banks, our market share, our fee income and our client base. This is “what” we are working to achieve. There are multiple ways to accomplish these objectives and represent the “how” behind our work. The next generation teaches us to consider “why” we do what we do.

The answer to “why” is different for everyone and has reminded me of the beauty of both community banking and a diverse banking industry.

At Sandy Spring Bank, we surveyed our employees and posed the question, “What are 25 reasons why it’s important for you to be here?” Generally speaking, we found that the first 10 answers were personal responses like, “because I get a paycheck.” The next 10 responses were more focused toward themselves and something else, like “because it helps me earn money to send my child to college.” The last five or so responses were about something beyond them; for example, because their work at Sandy Spring Bank provided an opportunity to help out their local community in a way that mattered to them. And what we learned is that the next generation, more than others, really feel a need

to be a part of something bigger than themselves.

Now, how does that translate to banking from an employer standpoint?

Embrace the next generation! Take the time to connect with them, engage them and determine how they can help your business be relevant in the future. I have 57 apps on my iPhone and I am willing to bet that most were developed by the next generation. We need to bring that type of innovation, creativity and problem solving into our industry.

Be prepared for a change in velocity.

The next generation wants to grow and develop much faster than our industry is accustomed. I think many of us misunderstand the frequency of job changes within this generation – particularly in banking. The next generation desires to be challenged, developed and provided opportunities to grow. All the more reason to evaluate our ability to develop employees more quickly, provide shorter intervals of growth opportunity and connect with them with things that matter.

Last year, I attended the American Bankers Association’s (ABA) Annual Convention in Dallas, Texas, and participated in a panel discussion around what trends I, and other banking executives, see in attracting clients. It was built as a “millennial” conversation and we discussed thoughts around both recruiting new customers and recruiting new talent and we concluded that it is

all about understanding the differences and unique attributes and experiences of the next generation.

As the Maryland Bankers Association (MBA) approaches its 120th year anniversary in 2016, understanding that a changing element of the industry is the composition of the workforce, the MBA is seeking to engage the next generation of banking leaders. To achieve this, the MBA has organized a steering committee charged with identifying approaches to engage bank professionals between the ages of 21 and 45 as active members of the banking industry and the MBA. The first meeting of the Next Generation Steering Committee will convene this fall, and meetings will continue for several months, with a report on the steering committee to be published in spring 2016. MBA’s goal is to seek their advice on how the Association can be a greater resource to them for connecting with one another, for helping them achieve their professional goals and for providing ongoing input to MBA’s strategic priorities and direction.

Business in banks is forever changing.

Understanding the next generation and developing plans and services is key to success in the future in preparing the Next Generation of Banking Leaders! ■ Dan Schrider is the chairman of the Maryland Bankers Association. Reach him at dschrider@sandyspringbank.com.

Fourth Quarter 2015 | 5

ABA Insurance Services We know community banks.™

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

All Risks Are Not Created Equal

MBA and Mid-Atlantic States Spearhead Innovative Conference for Bank Executives and Directors During Cybersecurity Awareness Month

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here is a lot of talk these days about enterprise risk management in the financial services industry.

Yet, it seems as if all risks are not created equal. The importance of securing and protecting customer information and staying steps ahead of cyber criminals has risen to the top among concerns of our members, other businesses, the government sector, our bank customers and, quite frankly, any entity that utilizes technology.

Last year, Deputy Treasury Secretary and former Maryland Commissioner of Financial Regulation Sarah Bloom Raskin released 10 points that every bank CEO and director should know and consider when it comes to cybersecurity. This summer, at the American Bankers Association’s Leadership Meeting in Baltimore, she released version 2.0 of the 10 points for CEOs and directors as a way to emphasize that cyber risk and what she calls “cyber hygiene” can no longer be relegated only to the IT professionals and the chief information security officers in banks.

Maintaining confidence in the banking system requires bank CEOs and executive management as well as

bank directors to focus, on an ongoing basis, on how they are protecting their customer assets, where the specific risks are, what the plan is in the event of a breach, how the regulatory agencies will be assessing bank preparedness, and more.

We are fortunate to be here in Maryland, a state that is viewed as central in the world of cybersecurity and cyber intelligence. The government’s cyber command is here, many of the so-called “three letter” agencies are here, and even the United States Naval Academy is building a new $120 million Center for Cyber Security Studies in Annapolis.

The National Institute of Standards and Technology (NIST) is in Gaithersburg. Our members know that the NIST Cybersecurity Framework is an excellent guide for cybersecurity planning and execution.

The regulators look to see how banks are using this framework internally as well as when assessing third-party vendor readiness. This summer, the banking regulators teamed up to release the new FFIEC Cybersecurity Assessment Tool to help those they

regulate and to keep the issue top of mind for bank leadership.

The MBA is joining with our counterpart Associations in Delaware, Pennsylvania and Virginia on a firstof-its-kind Mid-Atlantic Executive Cybersecurity Conference for bank CEOs and directors at NIST on October 29, 2015. The conference will address the NIST and FFIEC tools as well as board governance issues, crisis communication strategies in the event of a breach and table top exercises led by bank regulators to help bank leadership teams and directors assess their preparedness.

Maryland’s Commissioner of Financial Regulation Gordon Cooley will also be keynoting the conference.

This is a wonderful opportunity right in our backyard. I ask you to consider how your bank is addressing the cybersecurity landscape today. Is it in the C-Suite? Join us on October 29 in Gaithersburg to assess your cyber readiness.

■ 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.

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The Importance of Having a Breach Response Plan In Place

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he possibility of a bank’s systems being hacked is increasing, regardless of the size of the bank. In addition to the well-publicized breaches of mega and regional financial institutions, we are witnessing more reports of attacks on smaller community banks. Your bank should have a workable breach response plan in place on which your staff can quickly rely and follow immediately upon the discovery of a breach.

As banks continue to refine their methods in securing systems, hackers are fine-tuning their skills as well, finding more ingenious ways to crack into systems and ATMs.

Attack through Third-Party Vendors In the case of the J.P. Morgan attack in 2014, hackers used sophisticated methods to obtain customer data through infiltrating both the bank’s systems through a corporate event website they sponsor, the J.P. Morgan Corporate Challenge. According to reports, the Russian hacking gang obtained the website certificate for the site’s third-party vendor which allowed them to access communications between visitors and the site, including passwords and email addresses.

appearances, the email from a spoofed government site looked legitimate so the teller opened the attachment.

The attachment masked a virus which snaked through the bank’s network, installing malware which allowed the hackers access to various systems and files (including a Microsoft Office language pack translator which was manipulated and activated by the malware, most likely to translate English key strokes into a foreign language).

The hackers were able to access and make changes to a number of customer accounts. Luckily for the bank, a customer noticed a simple discrepancy on their statement and notified the bank, which was able to act quickly to the attack before loss of any customer funds. This bank’s staff was able to respond efficiently because a breach response program was in place.

How the Banks Responded to the Breach •

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Direct Infiltration of ATMs Another creative and emerging form of attack is on ATMs where criminals gain physical access to the machine, typically by posing as repair techs – complete with uniforms and fake credentials – and install malware by plugging a USB directly into the machine. The thief is able to walk up to a machine, open the enclosure with a universal key or passcode (similar to hacking fuel pumps at gas stations to skim credit card information) and install malware that compromises the software. This form of attack is being used increasingly more because it is more profitable than attaching skimming hardware.

The malware can sit undetected in the system for a longer period of time, thereby allowing the thieves to thoroughly and quickly drain an ATM before it is noticed or serviced by official bank personnel.

Malware Installed by Email Attachment Recently, a community bank’s system was accessed due to malware delivered by email to a teller. From all 8 | The Maryland Banker

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Bank staff assessed the situation, notified senior management and began an initial analysis to determine the potential issue as soon as they were notified by the customer.

Once it was determined that there was a potential breach, management formed a response team and consulted their formal breach response program for next steps.

More in-depth analysis and forensic reviews of all bank and vendor systems were conducted by the bank’s IT in coordination with external vendors to determine the breadth and scope of the breach. Affected computers and systems were taken offline to prevent further spread.

In addition to the spoofed government agency, other parties were immediately notified, including potentially affected vendors as well as the bank’s accounting and legal advisors.

Law enforcement divisions were contacted, including the Secret Service and state/local police departments.

Once it was determined to what extent external communications were needed, it was decided that only the affected customers needed to be contacted. These customers were promptly contacted by a specially trained team of customer service reps (CSR), formed specifically to handle this situation. Each CSR was paired with a bank officer or manager and provided with a phone

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script, including an explanation to the customer of what occurred and next steps. Additionally, notifications were mailed to these customers.

To establish new accounts for the affected customers, meetings were held at times and branches convenient for the customer.

Accordingly, branch office hours were extended to accommodate these customers, who were also provided an identity protection package.

Afterwards, the bank made what they felt were necessary changes to certain systems, software and protocols in order to decrease the potential occurrence of future breaches.

Overall, the bank was able to determine, isolate and shut down the breach and send out initial customer communication within five days after the initial customer alert. Because they had the foresight to develop and institute a breach response plan, the bank’s staff was able to effectively handle this crisis.

About ABA Insurance Services ABA Insurance Services is a Maryland Bank Services preferred provider for D&O liability and bond coverage including employment practices liability, Internet banking liability (cyber) and trust services liability. Supporting the banking industry for nearly 30 years, this bank-owned, banker-directed program is known as a long-term, reliable and stable source of insurance for financial institutions. The program’s reinsurer, American Bankers Mutual Insurance, Ltd., has declared a distribution to participating banks for 25 consecutive years, totaling $80.1 million. They also offer P&C, excess liability and surety bonds. For more information, contact or have your agent contact Patricia Williams at 410-9606878 or visit abais.com.

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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

Fourth Quarter 2015 | 9

10 | The Maryland Banker

Now Is the Time for Your Bank to Move to a Self-Funded Health Insurance Plan!

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f your bank is considering moving to a self-funded health insurance plan, now is the time!

Some carriers have said that employers, who are not self-funded, will see an increase of 30 percent or more in their health insurance renewal in 2016. Moving to a selffunded plan can allow your bank to gain more control long-term over the rising costs in health care.

MBA member banks have seen firsthand how MBA Benefits Alliance is helping them to better manage and control their health care spending through a selffunded health insurance program.

They have also seen MBA Benefits Alliance provide flexibility, support and exceptional service, while enabling them to provide an attractive benefit for their employees.

“During our first year with MBA Benefits Alliance, not only did Old Line Bank save in excess of $200,000 as compared to our fullyinsured quote, we also experienced exemplary service from the team

at L.R. Webber Associates, said Cathy Coughlin, senior vice president and director of human resources at Old Line Bank. “Their support was invaluable in making ours a very smooth open enrollment and transition to the self-insured platform. And, more than half way through our second year, they remain very responsive and attentive to our needs.”

Prepare Now As your bank gets ready to receive your upcoming plan renewal, contact MBA Benefits Alliance today, so that L.R. Webber Associates can work with your bank’s team to get the required information to them so that they can run a plan comparison now before you receive your plan renewal from your current carrier.

This will enable them to show you how the long-term savings affect the MBA Benefits Alliance will have to your bank in moving to a selffunded health insurance plan, and how your employees will improve their health and well-being over time by your bank joining MBA Benefits Alliance.

If you are interested in exploring the MBA Benefits Alliance program, please contact MBA’s Cindy Gentilcore (443-837-1602, cgentilcore@mdbankers.com) or Booker Moore at L.R. Webber Associates, Inc. (bmoore@lrwebber. com, | 814-695-8066).

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MBA Benefits Alliance has its own bylaws and is governed by a board of directors, which oversees the funding and coverage-related issues for MBA Benefits Alliance. Board members are: Chairman of the Board and President Beverly Wood Vice President and Director of Human Resources Community Bank of the Chesapeake Vice Chairman of the Board and Vice President Emily Radaker Assistant Vice President and Controller Middletown Valley Bank Kathleen Murphy President and CEO Maryland Bankers Association

Cathy Coughlin Senior Vice President and Director of Human Resources Old Line Bank

Chuck Olsson Chief Human Resources Officer First United Bank & Trust

Tom Paholsky Senior Vice President and CFO New Windsor State Bank

Fourth Quarter 2015 | 11

Maryland Banking School Marks

of Developing Banking Leaders

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his year marked the 40th anniversary of Maryland Banking School! Many of today’s banking executive management across the state credit graduating from the Maryland Banking School as part of their career development. The Maryland Banking School focuses on developing leadership, managerial and technical skills, and creating a resource network to enhance students’ individual and corporate performance. These skills and resource networks help them thrive in the evolving financial services marketplace. The school’s curriculum is centered on courses in five knowledge bases: • Technology and bank operations • Leadership and management • Economics and bank financial management • Credit • Sales and marketing On August 7, 2015, 22 bankers joined the ranks of the Maryland Banking School alumni.

State Commissioner of Financial Regulation Gordon Cooley, a class of 1988 graduate, served as commencement speaker for the graduation ceremonies. Commissioner Cooley offered his perspective on how banking has changed since his graduation and what lies ahead in a complex, ever-changing banking industry.

12 | The Maryland Banker

Congratulations to the following graduates of the class of 2015: Kathlyne Anderson – Queenstown Bank of Maryland Benjamin Colvard – Sandy Spring Bank Rosemarie Copper – Chesapeake Bank of Maryland Kelly Cravens – Capital One, N.A. Latonya Duncan – Federal Reserve Bank of Richmond Diane Emory – First United Bank & Trust Staci Filomena – Old Line Bank Alison Flagg – The Columbia Bank Angela Hayes – Arundel Federal Savings Bank Matthew Hess – The Columbia Bank Dawn King – First United Bank & Trust Ryan King – Susquehanna Wealth Strategies Linda Kinslow – Middletown Valley Bank Robert LeCompte – The Talbot Bank of Easton, Maryland Cristina Palmer – Harford Bank Jason Parker – Bank of Ocean City Heather Patrick – Harford Bank Erica Pitkow – Hamilton Bank Justin Silvers – EagleBank Jonathan Turgel – Sandy Spring Bank Amanda Walsh – Sandy Spring Bank Beverly Wood – Community Bank of the Chesapeake

Amanda Walsh (right) from Sandy Spring Bank presented a check to the Johns Hopkins Kidney Transplant Unit on behalf of the Class of 2015. This donation was given in memory of classmate Ken Bowen who passed away in February 2015.

Students break into small group discussions for special Alumni Session which includes current students and alumni.

Part of the Class of 2015 work on customer and employee engagement skills in the special Alumni session.

Dawn King (center) from First United Bank & Trust accepts the School’s top honor, the Lilian T. Moffat Award, from MBA Chairman Dan Schrider and MBA President and CEO Kathleen Murphy.

Diane Emory (center) from First United Bank & Trust accepts an award from Dan Schrider, MBA Chairman, and Kathleen Murphy, MBA President & CEO. Diane Emory won two consumer education awards for Most Consumer Reached and Most Consumer Education Presentation.

Commissioner of Financial Regulation Gordon Cooley served as commencement speaker for the Maryland Banking School graduation.

Commissioner Cooley addresses the changes in banking since his graduation from Maryland Banking School in 1988.

The Class of 2015 listens to the advice given by Commissioner Cooley.

The following special school honors were also recognized: • Dawn King, First United Bank & Trust, won the top award, the Lilian T. Moffat Award, given for the top academic performance and leadership skills.

• Diane Emory, First United Bank & Trust, won the award for Most Consumers Reached and Most Consumer Education Presentations.

• Rosemarie Copper, Chesapeake Bank of Maryland, won the Maryland Banking School Board of Trustees Award for the top Capstone Paper and presentation.

• Finally, the class of 2015 presented a check to the Johns Hopkins Kidney Transplant Unit in memory of their classmate, Ken Bowen, from West Town Bank & Trust.

President of the Class of 2015, Ryan King, from Susquehanna Wealth Strategies addresses his classmates and guests on lessons learned during Maryland Banking School.

Mark your Calendar

Dan Schrider, MBA Chairman, presented the Maryland Banking School Board of Trustees Award to Rosemarie Copper from Chesapeake Bank of Maryland. This award goes to the student with the top Capstone paper and presentation.

The 2016 Maryland Banking School will be held on August 1-5, 2016. Current students and alumni members are invited to join a special LinkedIn group for Maryland Banking School for continuing discussions on industry issues.

Fourth Quarter 2015 | 13

14 | The Maryland Banker

Compliance Alliance Members Offered Access to Numerous Benefits, Resources Our All-Access Hotline

Summaries of New Regulations

Any employee of a member bank can contact Compliance Alliance to address their regulatory and consumer compliance questions or concerns. The hotline is available from 7 a.m. to 6 p.m. Central time by phone, email or live chat. In most cases, our turnaround time is immediate for phone calls or live chats. In the event a question is more complex and additional research must be done, you’ll have an answer from our hotline specialists within two hours.

1,500 page regulations have become the norm. Our attorneys summarize each new regulation using layman’s terms to explain exactly how your bank will be impacted by the changes. Our summaries also include action plans for implementation.

Document Reviews Find comfort in knowing that your documents are fully compliant by submitting them for review by our in-house experts. Our team will conduct a full analysis and return documents with recommendations within three business days (depending on the complexity). Reviews are unlimited, so you can edit your documents after addressing our recommendations and resubmit them for additional rounds to ensure full compliance with the regulations.

Our Library of Compliance Tools Compliance Alliance provides the most comprehensive list of tools for download and services including, but not limited to the following. If you can’t find what you need on our website, contact us. We create tools for our members at no additional charge. Some tools and services include calculators, cheat sheets, check lists, compliance calendar, flowcharts, forms, handouts, huddles, matrices, policies, procedures, risk assessments, signage, summaries, training tools, webinars and worksheets.

Easy Access to Regulations The Compliance Alliance website contains quick access to both federal and state regulatory information and allows members to easily search regulations on our website. Our hotline is also available to do the federal research for you!

Regular Updates on Regulations Staying up-to-date can be one of the greatest challenges of banking compliance. Compliance Alliance members receive daily, weekly and monthly emails noting important news items, overviews of recently added tools and comprehensive information about regulatory requirements and changes.

Through consistent communication, we keep our members informed and ahead of the curve when it comes to the latest changes in banking regulations.

More about Membership Participating in one of our free live demos is the best way to experience our program’s benefits. Check out our upcoming live demo dates, and we’ll provide you with a guided tour of the Compliance Alliance website and introduce you to all the benefits of membership.

Your Banking Regulation Experts The Compliance Alliance team consists of former regulators, attorneys and compliance specialists. Each expert on our hotline and product development teams also began their careers in banks. We share a passion for, and expertise in, banking and compliance. As a result, Compliance Alliance understands your needs and can offer detailed expertise to help you tackle your most difficult compliance issues and questions.

Interested in becoming a member or to sign up for a free 48-hour trial of Compliance Alliance products and services, please contact Compliance Alliance at 888-353-3933 | www.compliancealliance.com.

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16 | The Maryland Banker

News & Notes

Members on the Move

A. William Gunnell

William Gisriel, Jr.

Donna Frederick

Priscilla Ray

Kelly Dickerson

Cassandra A. Guy

Laura Histon

M. Brandt Rider

Joyce D. Malik

Misty Newman

John Collisson

J. Patrick Gill

A. William Gunnell joined Arundel Federal Savings Bank as assistant vice president and compliance officer.

Gunnell, who has many years of compliance experience, will head the bank’s federal regulatory compliance team.

Carroll Community Bank promoted William Gisriel, Jr., to senior vice president, portfolio management and credit administration. He has been with the bank since 2014 and has over 40 years of lending experience in the banking industry.

With over 20 years of lending and branch banking experience, Donna Frederick was appointed to executive vice president, chief operating officer. At Carroll Community Bank she will oversee the residential lending department as well as all operations of the bank.

Carroll Community Bank promoted Priscilla Ray to assistant vice president, loan documentation specialist. She will provide document and title support to the residential lending team.

Sandra Hansford was promoted to assistant vice president, loan accounting manager. She has over 30 years of experience in the financial industry at both the lending and loan accounting

level. She is responsible for the daily operations of the loan accounting department.

CNB promoted Kelly Dickerson to assistant vice president, bank operations officer. Kelly will be responsible for supervising and coordinating the activities of the operations functions of the bank to assure efficient workflows and appropriate controls in support of the bank’s employee base and customer service areas. She also manages the oversight and coordination of various vendors providing information technology services, communications systems and core processing services.

CNB’s Cassandra “Cassie” A. Guy was promoted to vice president, compliance officer. Cassie will be responsible for managing, administering and coordinating the compliance program for all areas of the bank. She also supervises and manages the credit administration department.

Monument Bank’s commercial lending assistant vice president, Shanton Kittler, was promoted to vice president.

In addition to bringing a wealth of knowledge in commercial credit and underwriting, SBA lending, commercial real estate lending and small business lending, Kittler will expand her focus

Tracey Diggs

to include developing business with property management companies and condo associations throughout Monument Bank’s markets.

Chi Perrus joined Monument Bank’s real estate lending team as a vice president. Perrus will focus on growing the bank’s commercial loan portfolio and dedicating his expertise on commercial real estate loans for investment properties and origination of commercial construction loans.

Tracey Diggs joined New Windsor State Bank (NWSB) as vice president, business center manager at the College Square branch in Westminster. She has been in banking for 27 years.

NWSB named Laura Histon as assistant vice president, business center manager. With 12 years of banking and management experience, she will be responsible for overseeing the daily operations at the North Carroll branch in Hampstead.

The Columbia Bank promoted M. Brandt Rider to vice president, group manager of the Baltimore market and manager at the Fairground Plaza office. In his new position, Brandt will coordinate retail activities in the Continued on page 18

Fourth Quarter 2015 | 17

News & Notes

Members on the Move CONTINUED F ROM PAGE 16

Baltimore market, which will include a major focus on community involvement.

Todd Mueller has been promoted to branch manager at The Columbia Bank’s Ellicott City office.

Todd has been with the bank since 2004. In his new position, he will be responsible for developing new business opportunities and the day-to-day banking operations of the Ellicott City office.

The Talbot Bank promoted Joyce D. Malik to vice president, compliance officer. She is responsible for managing, administering and coordinating the compliance program for all areas of the bank.

Misty Newnam was promoted to vice president, operations and security officer at The Talbot Bank. She is responsible for managing the operations and security functions of the bank.

John Collisson joined Computer Services Inc. as its new business development director for the Eastern region. John will work closely with financial institutions in the Northeast on strategic approaches to core bank processing and other technology initiatives.

Mark Wilson joined Thomas Compliance Associates Inc. (TCA) as vice president, technology risk services. Wilson has more than 30 years of both operational and strategic development experience in a variety of business sectors. His background includes dependency modeling and enterprise architecture assessments, business continuity/disaster recovery, IT strategic development, risk tolerance assessments and security and operational controls.

J. Patrick Gill has joined Shapiro Sher Guinot & Sandler as an associate in the firm’s banking and financial services group. Gill represents local, community and regional banks and other financial institutions in connection with commercial finance transactions and loan workouts.

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.

18 | The Maryland Banker

Members in the Community The Daily Record’s 2015 Most Admired CEOs The Daily Record’s Most Admired CEOs honors talented CEOs throughout our state for their leadership and professionalism.

Congratulations to Mary Ann Scully, former chairman of the MBA and president/CEO of Howard Bank and Austin J. Slater, president/ CEO of SMECO and director, Community Bank of the Chesapeake, for being named among the winners of The Daily Record’s 2015 Most Admired CEOs.

Queenstown Bank’s Red Noses The Queenstown Bank of Maryland branches in Queen Anne’s, Talbot and Caroline counties participated in Red Nose Day. Red Nose Day is a campaign dedicated to raising money for children and young people living in poverty by simply having fun and making people laugh. The inaugural Red Nose Day was held in the U.S. on May 21, 2015, when people across the country came together to have fun and raise funds and awareness. The day’s event culminated in a three-hour entertainment TV special on NBC featuring the country’s favorite comedians, musicians and Hollywood stars.

The Maryland Banking Industry Recognized by State Treasurer The Maryland banking industry was recognized by the Office of the Maryland State Treasurer in a letter dated July 2, 2015, for its efforts in protecting against fraudulent activity across Maryland. The letter was addressed to MBA’s President & CEO Kathleen Murphy, and stated: “The State has had the good fortune to have many banks functioning in Maryland looking out for the State’s best interest. In two major transactions, intermediary banks have assisted our primary banks in averting fraud.”

The letter praised all of the state’s banking partners for their vigilance of the Maryland banking industry, and commended the industry on the efforts of banks across Maryland working to protect against fraud. The banking industry continues to lead Maryland in the detection of and protection against fraudulent activity. The Maryland Bankers Association is proud of and applauds its members’ efforts in the area of fraud protection.

New Preferred Providers Maryland Bank Services, Inc. (MBSI), the wholly-owned for-profit subsidiary of the Maryland Bankers Association (MBA) welcomes the following New Preferred Providers: ABA Insurance Services, Inc. ABA Insurance Services, Inc. offers Directors & Officers Liability and Financial Institution Bond insurance program. Nearly 1,500 banks nationwide are insured in the program endorsed by the American Bankers Association (ABA) through its subsidiary, Corporation for American Banking and reinsured by American Bankers Mutual Insurance (ABMI) a bank-owned mutual insurance company based in Bermuda. ABMI has provided

Jane JacksonKolstrom and Kathleen Murphy Honored with YWCA TWIN Award Arundel Federal Savings Bank’s Jane Jackson-Kolstrom and MBA’s Kathleen Murphy (pictured) were presented the YWCA’s Tribute to Women and Industry (TWIN) award.

The presentation of TWIN awards began in 1985 and honors women who have made significant contributions to industry in management and executive positions, and also recognizes corporations whose policies and practices encourage and enable high achievement by women.

The Talbot Bank celebrates 130 Years of Service The Talbot Bank, a member of the Shore Bancshares community of companies, recently celebrated its 130th anniversary. The Talbot Bank anniversary was celebrated from June 4-13 with special drawings and promotions along with free giveaways at each of its six branches.

a stable, secure and reliable source of insurance for the banking industry and has declared 25 consecutive distributions since 1991 totaling $80.1 million to insured banks that are members of the ABA. ABMI and ABA Insurance Services offer A.M. Best A+ rated professional liability, bond, internet banking liability, employment practices liability and other coverages for financial institutions.

ICBA Bancard Credit Card Program ICBA Bancard, a for-profit subsidiary of the Independent Community Bankers of America (ICBA), provides marketing, reporting and consultative support to help community banks offer their own branded credit cards to consumers and small businesses. The ICBA Bancard Credit Card Program aggregates the buying power of community banks – strengthening their customer relationships and their bottom line – offering competitive credit card options such as build a card portfolio of their own to increase revenue and broaden customer relationships (direct issuer).

ICBA Securities Inc. ICBA Securities Inc., the broker-dealer subsidiary of the Independent Community Bankers of America (ICBA), provides fixed-income investment products and services to community banks. Since 1989, ICBA Securities has offered broker-dealer services with an inventory of portfolio investment products to community banks through its exclusively endorsed broker Vining Sparks. ICBA Securities specializes in providing high-quality investment products, services and education for community banks that help them create and maintain a highperforming investment portfolio.

Fourth Quarter 2015 | 19

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20 | The Maryland Banker

News & Notes Maryland Bankers Participate in National Leadership Meeting MBA’s President & CEO Kathleen Murphy joined her counterparts from state bankers associations across the U.S. at American Bankers Association’s (ABA) Annual Summer Leadership Meeting that was held in Baltimore in July. The purpose was to bring together the industry’s state and national leadership to discuss legislative and regulatory priorities as well as to address issues of strategic importance to the industry. During the meeting, the MBA presented a check to ABA BankPac, with which Maryland BankPAC is affiliated.

Welcome New Members Charter Member: • United Bank Associate Members: • Baker Tilly • Duncan-Williams, Inc. • Far West Capital • Piper Jaffray • Secure Banking Solutions, LLC

Pictured, from left: Rob Nichols, incoming president & CEO, ABA; W. Wes Hoskins, ABA BankPac chairman, and president & CEO, First Community Bank, Corpus Christi, TX; Mike Middleton, former chairman, MBA, and executive chairman, Community Bank of the Chesapeake; MBA’s President & CEO Kathleen Murphy; and John A. Ikard, chairman, ABA, and president, FirstBank Holding Co., Lakewood, CO.

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

SPECIAL EVENTS October 8

BankNext

November 18 FDIC Directors College (Ellicott City)

October 21

FDIC Directors College (Cambridge)

December 9-10 CFO & Financial Management Forum

October 29

Mid-Atlantic Executive Cybersecurity Conference

January 8, 2016 Ninth Annual “First Friday” Economic Outlook Forum

November 2-3

Washington Visit

SEMINARS, WEBINARS, SCHOOLS, AND ONLINE TRAINING Compliance

October 26

Intro to Mortgage Lending (ABA)

October14

2015 IRS Reporting and Compliance Webinar Part 5 (PBS)

October 27

Loan Underwriting Mistakes (GSB)

October 15

2015 IRS Reporting and Compliance Webinar Part 6 (PBS)

Advanced Tax Return Analysis (GSB)

Landscape of Agriculture Today and Tomorrow (GSB)

October 28

Liquidity Risk Basics (GSB)

SBA Guaranteed Small Business Lending Overview (GSB)

November 2

Analyzing Financial Statements (ABA)

Executive Management & Directors October 2

Challenges for Directors in a Digital Age (GSB)

October 19

Certified Community Banking Board of Directors (SBS)

October 21

Risk Management for Community Banks (GSB)

Finance October 6

Managing a Dynamic ALCO (GSB)

October 15

Stress Testing the Loan Portfolio (GSB)

November 9

Managing Interest Rate Risk (ABA

General Banking

Sales & Marketing October 5

Marketing Financial Services (ABA)

October 19

Getting in the Door with Prospects (GSB)

October 22

Is it Time Your Bank Considers a Social Selling Strategy? (GSB)

October 29

Building and Sustaining a Business Banking Performance Culture (GSB)

October 5

Principles of Banking (ABA)

Security & Technology

October 13

The Business of Banking (GSB)

October 5

General Accounting (ABA)

October 7 Stopping the Hacker (GSB)

October 13

Law & Banking: Applications (ABA)

October 8 Cybersecurity and Regulatory Expectations (GSB)

October 19

Principles of Banking (ABA)

November 2

Principles of Banking (ABA)

Developing Your Incident Response Plan to Exceed Regulatory Expectations (GSB)

November 9

Money & Banking (ABA)

November 16 General Accounting (ABA)

Law & Banking: Principles (ABA)

HR Management October 13

Implementing a Continuous Improvement Process (GSB)

October 28

Becoming a Resource Manager (GSB)

Lending October 5

Analyzing Financial Statements (ABA)

Intro to Agricultural Lending (ABA)

October 8

Successful Workout Strategies for Problem Loans (GSB)

October 19

Consumer Lending (ABA)

October 22

Collateral Evaluation in C&I Lending (GSB)

October 26

Commercial Lending (ABA)

Certified Community Banking Technology Professional (SBS)

October 11-16 Bank Technology Security School (GSB) October 15 Four Components of a Social Tech Strategy (GSB) October 21 Mobile Device Security Best Practices (GSB) October 28 Enterprise Risk Management: The Risk Assessment of Risk Assessments (GSB) November 9 Certified Community Banking Security Professional (SBS)

Trust October 7 IRA Transfers and Rollovers (GSB) October 14 IRA Reporting (GSB) October 21 IRA Basics (GSB) October 28 IRA Excess Contributions and Recharacterizations (GSB) November 2 CTFA Online Review Course (ABA) November 16 Basic Administrative Duties of a Trustee (ABA)

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

2 0 1 5 MAR KETI NG OPP ORTUNITIES

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PROSPECTS Start building stronger business relationships today.

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The Maryland Banker, the official magazine of the Maryland Bankers Association,

> PRINT

is the only magazine exclusively dedicated to the banking community throughout Maryland. The quarterly publication reaches all 134 Maryland banks – providing

Quarterly Magazine The Maryland Banker

complete coverage to a variety of decision-makers.

> ONLINE

With a distribution of approximately 5,000, and powerful content from experts, analysts and a variety of banking specialists, this is an outstanding advertising

Website and Digital Magazine Advertising Direct Email Marketing

outlet for those doing business with the banking community. Featuring in-depth

> EVENTS

articles and coverage of the constantly changing market, The Maryland Banker is part of the glue that binds members, the association and the industry as a whole. It is turned to first, for industry news and vital market information.

With The Maryland Banker, you’re reaching decision-makers – including CEOs, executives, managers and specialists and those who are most involved with their association and the industry. This is your direct route to get your message in front of successful C-level financial executives.

To learn more about The Maryland Banker or to customize a marketing program unique to your business needs, call 800-356-8805 ext. 344 or email advertising@thewarrengroup.com.

The Official Publication of the Maryland Bankers Association

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