New Jersey Banker Fall 2014

NEW

JERSEY

FALL 2 0 1 4

B A N K E R

Does Your Institution Shine Under

the Internal Audit Spotlight?

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NJBankers Board of Directors John W. Alexander Chairman/Chief Executive Officer Northfield Bank

James P. Genoy, Jr. President/Chief Executive Officer/Treasurer Monroe Savings Bank, SLA

Christopher Martin Chairman/President/Chief Executive Officer The Provident Bank

Norman E. Beatty Chairman/President/Chief Executive Officer First Hope Bank

Thomas J. Holt * Senior Vice President Bank of America

Kevin Cummings President/Chief Executive Officer Investors Bank

James A. Hughes President/Chief Executive Officer Unity Bank

Stewart E. McClure, Jr. * Regional President Lakeland Bank Immediate Former Chairman

John S. Fitzgerald President/Chief Executive Officer Magyar Bank

Henry P. Ingrassia President/Chief Executive Officer Glen Rock Savings Bank

Paul E. Fitzgerald * Vice Chairman First Bank

Thomas J. Kemly President/Chief Executive Officer Columbia Bank

John E. McWeeney, Jr. President and Chief Executive Officer ext. 627 jmcweeney@njbankers.com James M. Meredith Executive Vice President and Chief Operating Officer ext. 614 jmeredith@njbankers.com

Claire Anello Office Manager, Database and Website Manager ext. 631 canello@njbankers.com

Michael P. Affuso, Esq. Executive Vice President and Director of Government Relations ext. 628 maffuso@njbankers.com

Cris Goncalves Manager of Education ext. 630 cgoncalves@njbankers.com

Wendy C. Mandelbaum Controller ext. 603 wmandelbaum@njbankers.com Jenn Zorn Vice President and Director of Education and Business Development ext. 611 jzorn@njbankers.com

Contributing Editor Emily T. DeMasi

Robert Rey President/Chief Executive Officer NVE Bank

D. Nicholas Miceli Market President TD Bank, N.A.

Michael Schutzer President/Chief Executive Officer Harmony Bank

Craig L. Montanaro President/Chief Executive Officer Kearny Federal Savings Bank

Robert E. Stillwell * President/Chief Executive Officer Boiling Springs Savings Bank

William D. Moss President/Chief Executive Officer Two River Community Bank

Kathleen Stone Regional President/NJ Executive Susquehanna Bank

NJBankers Officers

NJBankers Staff

Emily T. DeMasi Vice President and Director of Communications ext. 610 edemasi@njbankers.com

Michael Nardo Executive Vice President/ NE U.S. Market Executive – Corporate Banking PNC Bank, N.A.

Lauren Barraza Executive Assistant ext. 618 lbarraza@njbankers.com Erin Suckiel Assistant to the Director of Communications ext. 629 esuckiel@njbankers.com Cynthia M. Zaccaro Assistant to the Director of Education and Business Development ext. 632 czaccaro@njbankers.com

Gerald L. Reeves * Chairman President/Chief Executive Officer Sturdy Savings Bank

James S. Vaccaro * Second Vice Chairman President/Chief Executive Officer Manasquan Savings Bank

Angela Snyder * First Vice Chairman Chief Executive Officer/Vice Chairman Fulton Bank of New Jersey

John E. McWeeney, Jr. President and CEO New Jersey Bankers Association

Counsel Michael M. Horn, Esq. McCarter & English, LLP Mary Kay Roberts, Esq. Riker, Danzig, Scherer, Hyland, Perretti LLP

*Executive Committee

Contact New Jersey Bankers Association www.njbankers.com 411 North Avenue East Cranford, NJ 07016-2436 Phone: 908-272-8500 Fax: 908-272-6626

The Warren Group Design / Production / Advertising custompubs@thewarrengroup.com

Katherine Davey Administrative Assistant/Receptionist ext. 600 kdavey@njbankers.com

www.thewarrengroup.com 280 Summer Street • Boston, MA 02210 617-428-5100

Published continually as a quarterly publication by the New Jersey Bankers Association from 1929 to Winter 1986. Revived as a quarterly publication by NJBankers and The Warren Group in 1998 under the name New Jersey Bank & Thrift and continued as New Jersey Banker in 2002. Combined with The League Leader, published by the New Jersey League of Community Bankers, in December 2008 and continued as New Jersey Banker.

Fall 2014 New Jersey Banker

3

Table of Contents

NEW

JERSEY B A N K E R

Departments

6 Chairman’s Platform Speaking with One Voice 8 From the President’s Office Feeling Proud of NJBankers 8 New Associate Members 9

10

26

28

Upcoming Events Politics & Policy The Real Cost of Foreclosure

Does Your Institution Shine Under

the Internal Audit Spotlight?

Bank Notes Bank Shots

Page 22

Features

12 Directors' Corner

Making Our Voices Heard

16

14 Meet Our Endorsed Service Provider

New Community Outreach Tool

Created to Protect the Elderly

18 Feature

What It Means to Be a Leader

in the New World of Banking

4

New Jersey Banker

Feature Employee or Independent Contractor?

20

Behind the Teller Line Bank of America

24 Feature

Health Savings Accounts Poised to

Expand under the Affordable Care Act

Fall 2014

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Chairman’s Platform

Speaking with One Voice

By Gerald L. Reeves

W

hen we speak with one voice, we can affect change.

As citizens of this great nation, we have the right and privilege to be involved in the legislative process. I encourage you to actively exercise that right by getting involved.

By sharing a dialogue with NJBankers leadership, our concerns will be addressed in our advocacy efforts Gerald L. Reeves so we are able to Chairman improve the opNJBankers President and CEO portunities for Sturdy Savings Bank

the communities we serve. In addition, I encourage you to support the efforts of the association’s Government Relations Committee when they reach out to you for comments.

One example of this outreach includes our efforts for mutual banks.

It is critical that as part of the dialogue with regulators and legislators, mutual savings institutions join together to voice their concerns. The necessity for relief of burdens peculiar to mutual savings institutions must be advocated.

Legislators, regulators and other stakeholders must be educated on the unique and positive attributes of the mutual form of ownership.

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Conference, the OCC and FDIC committed significant time and resources to addressing the concerns of mutual bankers, directors, officers and employees regarding the importance of the mutual charter. Comptroller of the Currency Thomas Curry noted that “Federally chartered mutual banks should have greater flexibility in matching their charter to their business model.”

FDIC Chairman Martin Gruenberg emphasized the viability and significance of mutuals within the community banking sphere.

I would like to express appreciation, on behalf of the mutual banks in New Jersey, to the regulators for their strong show of support. I would also like to acknowledge the engaged members of NJBankers who supported the objectives of the conference, including Jon Ansari, Jay Ford, Jose Guerrero, Tom Kemly, John Reissner, Rob Rey and Jim Vaccaro.

This advocacy effort is our association’s mission – and as members, I urge you to join us when we reach out to legislators and regulatory agencies.

Help us communicate with our elected officials by drafting comments and sending letters on key issues. NJBankers hosts meetings in both Trenton and Washington with lawmakers and regulators. Get involved and be more engaged! With one voice, the banking industry in New Jersey will be dynamic, strong and heard.

Together, we can promote the ideals and challenges of all members through NJBankers.

■ Gerald L. Reeves is chairman of the New Jersey Bankers Association and president and CEO of Sturdy Savings Bank. He can be reached at greeve@sturdyonline.com.

Fall 2014

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From the President’s Office

Feeling Proud of NJBankers

By John E. McWeeney, Jr.

I

’ve had the good fortune to be part of the banking industry for over 35 years, and I’ve always been proud of what I do, both as a banker and as part of NJBankers team. It may sound corny, but bankers really are in the business of helping make dreams come true.

There’s nothing more rewarding than helping a young couple purchase their first home or an entrepreneur start a new business. Similarly, being able to serve our great industry John E. McWeeney, Jr. through NJBankPresident/Chief Executive Officer NJBankers ers is equally as rewarding, and I was reminded of that by three very special events that took place recently.

In June, the 2014 Special Olympics USA Games were held in New Jersey and hosted by the New Jersey Special Olympics Team. Over 3,500 athletes, 10,000 volunteers and 70,000 spectators and family members descended on the Garden State for a week full of competition in a variety of sports. It was a monumental event – and a huge success – thanks to the collaborative efforts of individual volunteers, the business community and local and state government. Under the leadership of our Immediate Former Chairman Stew McClure, NJBankers conducted a fundraising campaign to help support New Jersey’s Special Olympics Team.

Thanks to the generosity of a number of our member banks and bankers, some individual donations and the proceeds from our charity golf outing, we raised more than $160,000 to help support Team New Jersey. My wife and I

New Associate Members

8

had the privilege of attending the opening ceremonies for the USA Games at the Prudential Center, and when Team New Jersey entered the arena with its 269 athletes and 73 coaches, it was one of the most moving experiences we’ve ever had. It was a great source of pride to be there, representing the New Jersey banking industry.

Also in June, NJBankers made its annual regulatory visit to Washington, DC, to meet with representatives of the various regulatory agencies. Our group of 28 received a joint regulatory briefing from the American Bankers Association and Independent Community Bankers Association, and then, over the course of two days, met with the Conference of State Banking Supervisors, the Consumer Financial Protection Bureau, the Federal Housing Finance Agency, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency. Our meetings were informative and offered our members an opportunity to voice their concerns to the regulators.

Hopefully, our voices were heard.

This year, for the first time, we also added a special event to our itinerary. At the suggestion of Former Chairman Norm Beatty, the evening before our meetings, a contingent of NJBankers participated in a wreath-laying ceremony at Arlington National Cemetery. It was an emotional moment, and one I’ll never forget, when Norm Beatty, Jim Hyman, Pat Ryan and Bob Stillwell laid a wreath from NJBankers at the Tomb of the Unknown Soldier. Here I was again, experiencing an unforgettable event – all because I have the privilege of serving New Jersey’s banking industry.

The third and most recent event that sparked my pride was the Habitat build that

the NJBankers team conducted in late July.

This year, like last year, thanks to the efforts of our Government Relations Director Mike Affuso, NJBankers is coordinating an industry-wide Bankers’ Build program for Coastal Habitat for Humanity and victims of Superstorm Sandy. Last year, approximately 27 banks and over 230 bankers conducted 30 build days and raised over $25,000 for Coastal Habitat. We told them we’d be back again this year, because the work isn’t done yet, and we are, with approximately 20 banks signed up to participate.

Our NJBankers team consisted of nine volunteers performing a variety of tasks, from removing a damaged paver patio to framing, including installing the framing on the second floor. It was hot and humid, but that didn’t quell the enthusiasm of the team. When we left, we all felt a sense of pride for what we had accomplished that day. Once again, I sure was proud to be an NJBanker.

Supporting Special Olympics, honoring our nation’s fallen heroes and helping Sandy victims through Habitat are three unbelievable experiences that I had representing New Jersey’s banking industry this past spring and summer. As memorable as they were for me, it’s standard business for our banks and bankers across the Garden State. Our bankers’ day job is helping people achieve their dreams.

Then, in their spare time, they reach into their hearts and wallets and help their neighbors in the communities where they live and work.

That’s something we can all be proud of.

■ John E. McWeeney, Jr., is president and CEO of the New Jersey Bankers Association, and can be reached at jmcweeney@njbankers.com.

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Fall 2014

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Annual Human Resources Conference

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Politics and Policy

The Real Cost of Foreclosure

By Michael P. Affuso, Esq.

A

family in economic distress can no longer afford to pay their mortgage. In New Jersey they have 1,000 days to live in the house before they are ejected. One thousand days to get back on their feet – or not.

Tragically, many families that are faced with foreclosure due to economic changes are unable to ever get back to where they were.

Some over-extended, others lost jobs that moved overseas, others may have been faced with medical issues, still others committed fraud in their applications and others were defrauded by lenders; some bad people did some bad things to good people. These people should get justice. They deserve their day in court.

In New Jersey, everyone gets their day in Michael P. Affuso court – it’s called due process. But what ocExecutive Vice President/ Director of Government Relations curs during this due process? Folks who beNJBankers lieve they have been duped by a lender have a course of action – they may contest the foreclosure. Less than 10 percent of foreclosures are contested; less than 10 percent of people even think they’ve been duped.

What about the other 90 percent? They get to stay for 1,000 days.

They admit that they owe the money, they admit that they haven’t paid the money, and they don’t think they were duped in any way to get the money and they get to stay – for 1,000 days. Certainly not justice for the lender. But let’s not concern ourselves with the lender.

What of the justice to the community?

Is a person living in a house, where they know they will be forced to leave, making any investment in the property; are they even maintaining the property? Is this justice to the community?

Are they paying property taxes? Is this justice to the community?

Are they paying condominium association dues? Is this justice to the community?

If they have committed fraud on the application, will they be able to secure a more stable type of employment that would be acceptable for work-out under the new mortgage guidelines? Is this justice to the hardworking people who have played by the rules?

Will a prospective buyer buy a property next to a property in foreclosure? Is this justice to the community? Will a prospective buyer buy a property in a neighborhood with a cluster of foreclosures? Is this justice to the community?

Will the purchasers of mortgages charge a premium to future New Jersey borrowers because it takes 1,000 days to foreclose on properties like these? Is this justice for the community?

Will a seller not list a property well under market value to get out, before the neighbor in foreclosure creates an even more economically disadvantageous situation? Is this justice for the community?

Will the borrower abandon the property in the dark of night without notification to municipal authorities? Is this justice for the community?

10 New Jersey Banker

Will the abandoned property become blighted before it is legally deemed abandoned? Is this justice for the community?

Will the abandoned property become a place where police and fire have to respond before it is deemed legally abandoned? Is this justice for the community?

The list can go further, but the point is made. Policymakers have framed the question as borrowers versus lenders, but the question is much more complex. The interests of the community must be balanced in the mix. Under current law, banks must maintain abandoned properties which are in foreclosure. Clearly the law favors the community in this case.

It would make sense that other policies favor the community also.

It would make sense to accelerate foreclosure for properties where no fraud is alleged. One thousand days is much too long, not just for bankers who have likely already accounted for the losses, but for the community that has to deal with the myriad issues arising from these properties every day.

■ Michael Affuso, Esq., is executive vice president and director of government relations for NJBankers. He can be reached at maffuso@njbankers.com.

Fall 2014

Fall 2014 New Jersey Banker

Directors’ Corner

Making Our Voices Heard

By Patrick L. Ryan

A

s our industry emerges from the most serious economic crisis of our generation, we continue to face constant challenges to all aspects of our business. In order to ward off these challenges and effectively address post-crisis business climate realities, community banks need to fully draw upon the talents, strengths and abilities that reside within our board members.

In the prior issue of this magazine, Mary Ann Deacon, Patrick Ryan chairman of Lakeland Bank, produced an excellent article which clearly described a number of important areas where directors can materially assist their institutions and bolster their bank’s management. This article will expand a bit upon Mary Ann’s recommendations and address what may well be the community bank’s greatest existential risk going forward – governmental action at both the state and federal levels.

In the 16 years I have been associated with the New Jersey banking industry, it has become increasingly apparent that bank directors need to put more time into supporting, defending and explaining our industry to legislators. Our bank officers and industry representatives do a fine job but more, much more, is needed to make our voice heard on matters that can adversely affect the viability and future of our institutions.

In short, the banking industry needs its directors to enthusiastically add their voice, energy, resources and influence in a determined campaign to speak up for the importance of not only community banking, but the free enterprise system as well.

Over the past couple of decades, the banking industry’s influence in both Trenton and Washington has waned as government in general has exploded in size, scope and intrusiveness, inexorably producing thousands of pages of legislation and tens of thousands of pages of regulation. It has produced a veritable avalanche of legalities, the volume of which is so

12 New Jersey Banker

great that common sense indicates that we cannot possibly comply with each rule and their various and varying interpretations.

For community banks to remain viable, directors’ efforts to “tell our story” must be substantially reenergized, or we may lose further ground on the legislative/regulatory front, with attendant liability a genuine threat.

Tom Bracken, a well-known and respected New Jersey career banker who currently serves as president and CEO of the New Jersey Chamber of Commerce, describes the present condition of affairs on the state level quite clearly: “Over the years, one of the issues involving New Jersey is that corporate leadership is fading. Business leaders no longer drive opinion, as they have become increasingly concerned with their internal issues. It has been a long time since bankers have had significant clout in New Jersey, as bank CEOs and directors are no longer active in taking the lead on state business challenges.”

Bracken also makes the keen observation that industry CEOs must have the active participation of their directors behind them so they do not get “sloughed off ” by state and federal legislators. On the New Jersey front, he identifies a millionaire’s tax and increased business taxes as ticking time bombs which may further harm an already weakened New Jersey economy, with community banking suffering collateral damage.

Stewart McClure, regional president of Lakeland Bank and immediate former chairman of NJBankers, laments that “we are not fielding as large or as strong or as active a team as we might. Directors need to be more involved and provide a broader and deeper voice to reinforce their bank’s management and our industry representatives.”

As directors represent shareholders, they have a unique ability to press legislators in a different and more creditable manner than even the best industry lobbyists. We need not look any further than credit unions to see examples of organizations which feature a more committed, active and effective cohort pressing their initiatives and requirements than bankers, despite the fact that none of their constituents have equity stakes or receive board fees. Beyond

the board room, banks must mobilize support and advocacy from our officers and employees, as they can have a demonstrable impact on legislators.

Frank Robinson, first vice president of NJ Business & Industry Association (NJBIA) and executive director of the New Jersey Employer Legislative Committees (ELC), observes that there are so many things that directly affect business in this state that constant support from bank officers and directors is vital. Businesses pay 40 percent of New Jersey property taxes, and they are constantly being further burdened with state mandates, permits and fees which drive up the cost of doing business. Add to this the fact that New Jersey has the highest energy costs in the nation due to state charges, and we have an economy that faces an uncertain future if the business segment does not actively press its case.

I would submit that each community bank board meeting should have a segment outlining current threats from the federal and state levels, along with recommendations on how directors can help, such as personal contact with legislators, letters, industry alert responses and the like. For non-legislative issues, we are best served by contacting our elected state legislators and congressional representatives and convincing them to carry our message to the appropriate recipients in the executive branch or regulatory agencies.

Director support of JEBPAC is of the highest importance. Unlike other industries, banking organizations are prohibited from corporate contributions on the state level, so JEBPAC is essential to ensuring that our voices are heard.

All of us have made substantial financial investments in our respective banks, but not all of us have provided a relatively small contribution to defend that investment from the very real risks we cannot avoid from governmental action.

Our business’ fate is in the balance, and if we are to succeed we need to play a larger and more vociferous role in the processes that will determine our industry’s future.

■ Patrick L. Ryan is chairman of the board of Hopewell Valley Community Bank. He can be reached at (609) 466-2900 or ptkryn@aol.com.

Fall 2014

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Meet Our Endorsed Service Provider

New Community Outreach Tool Created to Protect the Elderly

A

recent study published by MetLife Mature Market Institute estimates that the financial loss by victims of elder financial crimes and exploitation is more than $2.9 billion a year, and approximately two million seniors are exploited. Awareness of elder financial abuse is growing, and bankers are often relied upon as the front line of defense in the protection of bank customers, and as a provider of prevention education and information for their elderly customers and their adult children.

“The banking industry plays an important role in protecting our communities, and we need to help educate all people about elder financial abuse,” said NJBankers President and CEO John E. McWeeney, Jr. “It is sad that there are people who prey on our elders, but with the right education, we can put the scammers out of business and keep our communities safe.”

The world would like to think that seniors are immune to abuse, mistreatment and financial exploitation, that they’re protected; but they’re not.

In fact, they’re every bit as much at risk. The Senior Housing Crime Prevention Foundation believes that anything that threatens the safety, security and peace of mind of a senior, no matter how small or insignificant the incident may seem, should not be tolerated, and these issues are addressed through the administration of the nationally-acclaimed Senior Crimestoppers program to low- and moderate-income residents in nursing homes, HUD communities and veterans’ homes.

14 New Jersey Banker

Fall 2014

As the provider of the Senior Crimestoppers program, people rely on the foundation as a resource for information on a wide range of issues, both inside and outside of a traditional long-term care setting. The knowledge of the older American population and their challenges led to the production of the Preventing Elder Financial Abuse Video Toolkit.

“Elder financial abuse is a rapidly growing problem in our country, and we are dedicated to providing educational resources to help our nation’s seniors and their family members on ways to protect themselves against financial exploitation,” said Peter Gwaltney, chairman, president and CEO of the Senior Housing Crime Prevention Foundation. “It’s vital that everyone help spread the word on ways to prevent elder financial abuse to prevent exploitation of senior citizens and their families.”

The toolkit is designed to educate family, friends, those in social organizations and communities at large on how to look for signs of elder financial abuse and how to prevent it. The video information was extracted from the FDIC/CFPB Money Smart for Older Adults, so it is reliable, accurate and timely. All of the important take-away information is contained in handouts received during the presentation.

When reaching out to the community, as an additional resource, invite local law enforcement, a trusted attorney, a trusted financial advisor and the local office of Adult Protective Services to attend, to help answer specific questions during the question-and-answer part of any presentation. Now every banker can be a hero for providing valuable financial education information to seniors and their family members in the local community.

Because the foundation’s mission is to provide safety and security to low- and moderate-income elderly residents, it serves as a way for banks to earn Community Reinvestment Act (CRA) credit in the form of CRA-qualified loans, investments or grants. Funded exclusively by the banking industry, they are endorsed by the ABA, the ICBA and state bankers associations in 38 states.

Senior Crimestoppers is a coordinated set of components that work together to create a zero-tolerance to crime platform in senior housing facilities. Components include personal lockboxes for the residents, cash rewards up to $1,000 paid anonymously for information about wrongdoing of any kind, and effective, on-going education and training for staff members and residents. Senior Crimestoppers has reduced all aspects of crime in participating facilities by 94 percent.

“Senior Crimestoppers is a way for a long-term care administrator to further enhance the lives of the residents they serve. They all work very hard to provide safe, secure, comfortable living environments and their desire to implement the program is just one more example of this. Implementing this program does not mean that the facility currently has a crime problem, but that the administrator is proactively finding a way to keep problems from occurring in the future,” said Terry Rooker, president of Senior Crimestoppers.

■ For more information about the Senior Housing Crime Prevention Foundation or ordering the Preventing Elder Financial Abuse Toolkit, visit www.SHCPFoundation.org or call (877) 232-0859.

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Feature

Employee or Independent Contractor?

CLASSIFYING WORKERS CORRECTLY

By Ramon E. Rivera and Christina Michelson

I

n today’s fast-paced world, a successful business model makes decisions based on calculated risk. When reviewing your fiscal budget, you may try to save money by using independent contractors versus full-time employees.

Although there are many short-term benefits to hiring ICs, the legal ramifications of an improper classification can be costly.

The last thing any business wants is Christina Michelson an audit from the Internal Revenue Service (IRS) or the state regarding its workers. The correct determination of a worker’s status can save your company time and money. A Ramon E. Rivera common example is when companies hire ICs to serve as specialists for information technology for their technology and network needs.

The Internal Revenue Code (IRC) and the New Jersey Department of Labor (NJDOL) each have separate tests in determining a worker’s status. The IRS test analyzes three main categories; the NJDOL utilizes the “ABC test” provided in N.J.S.A. 43:21-19(i)(6) to determine a worker’s proper identification.

In New Jersey, the determination of a worker’s status impacts the payment of workers’ compensation benefits to the state. Employers are required by law to provide workers’ compensation benefits to workers that are classified as “employees” and not ICs. The NJDOL uses the “ABC test” to determine whether the services performed by an individual for remuneration are deemed to be that of a traditional “employee.” N.J.S.A. 43:21-

16 New Jersey Banker

19(i)(6). The ABC test consists of the following prongs: (A) is the “control test,” (B) is “course-of-business or location-ofwork test” and (C) is the “independentbusiness test.” This test is not only used to determine the employers that are obligated to pay unemployment-compensation taxes, but is as a standard to determine the eligibility of those workers eligible to receive unemployment benefits.

In addition to New Jersey’s ABC test, the IRS, under common law, reviews three main categories to determine an employee’s classification. These categories include: 1) behavioral control; 2) fi-

nancial control; and 3) relationship of the parties. The IRC imposes taxes on employers under the Federal Insurance Contributions Act (FICA) and the Federal Unemployment Tax Act (FUTA) for its employees. According to the IRC, the definition of employee includes “any individual, who, under the usual common law rules applicable in determining the employer-employee relationship, has the status of employee.” 26 U.S.C. 3121(d) (2), 3306(i). Moreover, Publication 15-A, “Employer’s Supplemental Tax Guide for Use in 2014,” provides that commonlaw employees are defined as “anyone who performs services for you is your

Fall 2014

employee if you have the right to control what will be done and how it will be done.” As such, each employer must examine the relationship between the business entity and its independent contractors to determine the proper status.

In order to determine the status of a worker, you must examine the worker’s relationship with the business entity.

Both the NJDOL and the IRS analyze the amount of “control” an entity has over the IC, i.e. who determines the worker’s schedule and who provides the worker with instruction or job assignments. Another factor to review is where the worker does work – is it on the premises or offsite? Also, integration is analyzed, i.e. is the IC integrated within the business

entity, does he/she sit next to other employees or is he/she separated physically?

Another factor reviewed is whether there is a continuing relationship; for example, are the ICs only hired for a specific project or is it ongoing?

The law is ever-changing regarding the classification. For instance, New York recently passed a law which provided a new standard for classification of commercial truck drivers and civil and criminal penalties for misclassifications. The IRS has a “Voluntary Classification Program,” which allows employers to seek partial relief from the federal employment taxes that agree to prospectively treat their workers as employees versus ICs.

As you can tell, the determination of whether an IC is a real employee is not a simple task and mistakes can easily be made.

Therefore, we always recommend that employers reach out to their counsel to review all ICs and make sure there are no misclassifications before the NJDOL or IRS comes knocking on your door.

■ Ramon E. Rivera is a partner at Scarinci Hollenbeck, where he serves as chair of the Labor and Employment Group and works directly with employers with all human resource and personnel issues. Christina Michelson is a senior associate at Scarinci Hollenbeck and has experience representing employers before the New Jersey Department of Labor and Workforce Development in all aspects.

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Fall 2014 New Jersey Banker

17

Feature

What It Means to Be a Leader in the New World of Banking

By Alan J. Kaplan

T

he banking industry today is operating in an environment that few could have anticipated, yet requires an increasingly complex mix of banking skills, leadership capabilities and interpersonal qualities in its leaders. Having spent time recently speaking with hundreds of bank CEOs, board members and senior executives, the requirements for success as a bank leader today have Alan J. Kaplan crystallized. Each letter below represents a vital element of successful bank leadership: B is for balance-sheet savvy. Today’s bank leaders must understand the risks inherent in the current interest rate environment, whether due to potential funding mismatches or the risks from declining securities values in a rising rate environment.

A stands for asset quality, and the ongoing need to remain vigilant regarding credit quality. There’s still no quicker way for a bank to falter than to suffer from a spate of bad loans. Regulators continue to focus on credit culture, policies and procedures as well.

N is for non-interest income. Everyone wants more, but how do we actually grow revenues? Increasing fees on customers always carries some potential fallout.

And, building lines of business such as wealth management, insurance or other products involves a significant upfront investment and a longer term return. There are few easy answers here.

K represents capital. As everyone knows, this is the most critical ingredient that banks need today to survive and drive growth, whether organic or transactional.

A lack of ample capital not only constrains

18 New Jersey Banker

strategic plans, but too often invites a call from your regulator.

The L in bank leader does, in fact, stand for leadership. While great leadership remains an obvious prerequisite for success, the demands on bank leaders today are more strenuous and complex than at any time since the Great Depression. Many bank boards struggle with the challenges of succession and developing that vital next generation. In addition, the mantle of leadership should extend much further into the organization than just the CEO’s office or C-Suite executives for an organization to truly succeed. While the CEO sets the tone, everyone should lead by example in their daily interactions with customers and colleagues.

E stands for emotional intelligence.

This is the critical aspect of leadership in which you see your bank’s leaders communicating effectively, leading from the front rather than the rear, and following a “servant leader” mindset. The emotionally intelligent leader knows that it truly is not about them, but rather the people on their team. When the team is successful, the leader succeeds as well.

A represents authenticity. One of our favorite leadership attributes, authenticity occurs in the leader who means what she says, and does what she says she will do. It’s the ability to create “follower-ship” through actions and a genuine approach to dealing with a bank’s varying constituents.

D is for digitally savvy. Today’s community banks need an approach to the digital world that is timely, relevant and real. Whether you like it or not, the technologies that are revolutionizing banking today are not just impacting the industry’s back office, but have become a vital channel for growth. Banks must play offense here, not defense.

Our second E represents the employee. Bank CEOs and directors regularly

praise their employees for good work and great service. While these are the foundation upon which our institutions are built, they are simply not enough anymore. If your bank is going to win against the competition, it must have the absolute strongest cadre of bankers possible – from the executive team to front line lenders and managers, to the employees behind the scenes. Next to capital, talent – and talent’s ability to execute your plan – is the only remaining differentiator in banking today.

R, of course, stands for regulatory.

In the current climate, the ability of bank leaders to forge a constructive working relationship with their regulators is vital.

Banks that take a combative tone with their examiners usually end up on the wrong side of their exam. While the regulatory climate may have overreached, it is what it is. High performing bank leaders figure out how to operate successfully under this dynamic, and forge positive regulatory partnerships.

As Billy Beale, CEO of Richmond, Virginia-based Union First Market Bank said at the Bank Director Acquire or be Acquired Conference: “banking is not complicated, but it has gotten awfully complex.” Today’s bank leader needs a plethora of banking skills, leadership competencies and personal attributes to be successful. Anything less than a full suite of these talents may not only impact your bank’s ability to win, but could ultimately put the institution itself at risk.

■ Alan J. Kaplan is founder and CEO of Kaplan & Associates Inc., a retained executive search and talent advisory firm focused on serving community banks. Based in Philadelphia, K&A is a the country’s only retained executive search firm member of both the ABA and the ICBA. He may be reached at alan@kasearch.com or (610) 642-5644.

Fall 2014

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IMPROVING LIVES THROUGH THE POWER OF CONNECTION

In January 2014, Bank of America presented the Jersey City-based nonprofit organization Rising Tide Capital with a 2013 Neighborhood Builders award. The Neighborhood Builders initiative is a strategic investment that couples leadership training with a $200,000 unrestricted grant for high-performing nonprofits that have made a significant impact in the community.

B In June 2014, Bank of America employees helped build a home for a family in need with Habitat for Humanity of Trenton. Through its charitable foundation, Bank of America has been a financial supporter of Habitat’s mission to create housing for low-income families in need of decent, affordable homes for over 25 years.

In June 2014, Bank of America employees volunteered at the FoodBank of Monmouth and Ocean counties in Neptune Township.

The Bank of America Charitable Foundation provides philanthropic support to address needs vital to the health of New Jersey communities, such as hunger relief.

20 New Jersey Banker

ank of America has a long-standing history of serving the financial needs of New Jersey’s residents and businesses. The company helps create jobs and drive the economy through lending and investing, while also maintaining a strong commitment to supporting the communities it serves. A top employer in New Jersey and one of the world’s largest financial institutions, Bank of America has a local touch and the scale to offer cutting-edge products and services.

“We’re committed to meeting the needs of our local customers and clients by bringing them everything the company has to offer,” said Bob Doherty, New Jersey president, Bank of America. “When we work together across our business units, every experience becomes simpler and more rewarding for everyone involved.”

Doherty stresses that each of the major lines of business with a local presence in New Jersey – Bank of America, Merrill Lynch and U.S. Trust – are deeply integrated, yet offer unique products and services so the company can serve a variety of customers and clients, meeting their specific challenges and needs.

Bank of America serves individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The

Fall 2014

company began serving New Jersey more than 70 years ago and today has more than 300 banking centers and 700 ATMs statewide.

Clients turn to Merrill Lynch for a hightouch wealth management experience.

Advisors address the financial needs of each of their clients as individuals, combining knowledge and experience with a deep understanding not just of a client’s goals, risk tolerance, liquidity needs and objectives, but of their lives, family, interests and passions. This personal approach has placed more New Jersey Merrill Lynch Wealth Management advisors on Barron’s 2013 “Top 1000 State-by-State Advisors” list than any other firm for a fifth consecutive year.

U.S. Trust, a private wealth management organization, provides vast resources and customized solutions to help meet the needs of high-net-worth individuals and families in New Jersey. The oldest trust company in the nation and advisor to generations of American families for more than 200 years, the organization has expanded its offerings over the years in accordance with the growing need for comprehensive, multigenerational wealth planning.

As one of the largest banks in New Jersey, Bank of America recognizes the drivers that contribute to the health of local economies across the state. That’s why, each year, the Bank of America Charitable Foundation supports a wide range of organizations that address the basic needs of individuals and families, like housing and hunger relief, foster education and employment opportunities, and provide access to the arts. In 2013, Bank of America provided nearly $5 million in grants and matching gifts to nonprofit organizations in New Jersey, and employees volunteered more than 66,000 hours of their time to local causes.

“Whether it’s supporting an organization committed to helping small businesses to launch and grow, or helping fund a local theater that makes arts and culture more accessible to residents, we’re consistently investing in programs that contribute to New Jersey’s economic growth and cultural vibrancy,” said Doherty.

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Fall 2014 New Jersey Banker

21

Feature

Does Your Institution Shine Under

the Internal Audit Spotlight?

By Salvatore Zerilli

I

nternal audit, when properly implemented, is an essential element to assist your financial institution in discovering control weaknesses, regulatory and policy violations, and operational inefficiencies. Such self-scrutiny provides an institution with the ability to take timely, corrective action when needed to maintain its safety, soundness, profitability and integrity.

RISK ASSESSMENT Proper implementation of an effective internal audit process begins with a comprehensive risk assessment. Financial institutions are not created equally; their mix of products and services and organizational structure vary. A risk assessment should take into account all operational areas specific to the institution, as well as recent regulatory Salvatore Zerilli changes, prior regulatory and internal audit issues, and risk appetite. An assessment should be documented to support the creation of the audit universe and plan. The utilization of a cookie-cutter audit plan and a general risk assessment may cause the institution to overlook key operational and regulatory deficiencies.

AUDIT PLAN EXECUTION Proper execution of the audit plan is the next critical component of an effective internal audit process. The internal audit department should perform its work in accordance with the International Standards for the Professional Practice of Internal Auditing, as promulgated by The Institute of Internal Auditors. The audit methodology should be based on the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and Control Objectives for Information and Related Technology (COBIT) from the Information

22 New Jersey Banker

Systems Audit and Control Association (ISACA). Note that in May 2013, COSO released an updated Internal Control Framework, revitalizing the guidance and increasing the relevance to the current business environment. Your internal audit department should adopt these changes.

REGULATORY KNOWLEDGE The chief audit executive and internal audit staff must possess indepth knowledge of internal auditing, as well as the banking industry.

Recognizing the changing regulatory landscape and the current focus and emphasis of federal and state regulators is essential to optimize the benefits of internal audit. Significant regulatory changes occurred in 2014, mainly resulting from implementation of the Dodd-Frank Act and impacting residential mortgage lending, and numerous others are in the pipeline.

Recent changes include the adoption of Ability to Repay (ATR) and Qualified Mortgage (QM) rules. In addition, complex loan servicing rules amended Regulation X, the Real Estate Settlement Protection Act (RESPA) and Regulation Z, the Truth in Lending Act (TILA).

The amendments included nine new key points to be adopted by banks: 1) Periodic billing statements.

2) ARM notice requirements.

3) Prompt payment crediting and payoff statements.

4) Error resolution procedures.

5) Forced placed insurance procedures.

6) Early intervention with delinquent borrowers.

7) Continuity of contact.

8) Loss mitigation procedures.

9) General servicing policies and procedure requirements.

It is important to note that while some of these points have pro-

Fall 2014

visions that exclude small service providers, several caveats embedded within the regulations are applicable to them.

Recent changes were also made to the following: the requirements for appraisals and higher-priced mortgage loans; home ownership counseling; the definitions of the Home Ownership and Equity Protection Act (HOEPA) coverage test and the term “loan originator;” compensation and mandatory arbitration clause restrictions; and single-premium credit insurance financing. Modifications were made to the Flood Disaster Protection Act (FDPA) regulations, stemming from the Biggert-Waters Flood Insurance Reform Act of 2012 and Homeowner Flood Insurance Affordability Act. The changes above have already been adopted by Congress.

Those expected to be implemented in 2015 and beyond include: expanded fields to the Home Mortgage Disclosure Act (HMDA) Loan Application Register (LAR); the combination of the TILA-RESPA disclosures; changes to overdraft fee and capital reporting; and the adoption of the Basel III capital framework.

Your institution’s internal audit department should ensure that the changes to the COSO framework and regulatory landscape are integrated into the internal audit process and work programs.

Training your audit staff on these changes is critical to the proper execution of the program and the identification of control weaknesses, regulatory and policy violations, and operational inefficiencies.

NJBANKERS PRESENTS TIMELY REVIEW OF COSO 2013 Professional development plays a vital role today, as well as into the future, for the banking industry. NJBankers is committed to providing opportunities for members to keep informed about the continuous changes in regulations and legislation. A COSO 2013 seminar was held recently to keep members up to date on what has changed with COSO and how COBIT can help.

BOARD OVERSIGHT The audit committee of the board of directors requires tools and periodic reports to assist in the oversight of the internal audit process. Internal audit needs to create reports that monitor the department’s adherence to timely performance of audit work, the issuance of audit reports upon completion of field work, and tracking of open audit issues across the entire institution.

Federal and state regulators review the comprehensiveness and effectiveness of an institution’s internal audit department. Demonstrating that a strong and robust internal audit process has been implemented at your institution assists regulators during their safety and soundness examinations. Regulators will rely on the audit work papers and resultant observations uncovered by internal audit when the overall process is deemed adequate. This reliance, in turn, may limit regulators’ need to conduct further review of targeted areas during their examination of your institution.

The internal audit process shines a spotlight on many operational issues at financial institutions. It is preferable, however, to uncover and address concerns through an internal self-reporting function than to be alerted to them via government regulators. The audit committee of the board of directors, as well as management, should leverage the internal audit process to ensure the continued safety, soundness, profitability and integrity of their institution. ■ Salvatore Zerilli, CPA, CAMS, is a principal at select service provider Mercadien, P.C., Certified Public Accountants, and practice leader of the company’s Financial Institutions Services Group. He may be reached at szerilli@mercadien.com.

Scott Baranowski, director of internal audit services for select service provider Wolf & Co., moderates a panel discussing COSO guidance, the relevance of the COBIT framework and best practices.

Attendees of the COSO 2013 seminar hear from a panel discussing best practices. Panel participants included Martin M. Caine, member of the firm, Wolf & Co.; Daniel F. Morrill, CPA, principal, Wolf & Co.; Mark Stephan, senior vice president and chief internal auditor, Columbia Bank; and William J. Nowik, CPA, principal, Wolf & Co. (not pictured).

Please note that P&G Associates is also a select service provider for Internal Audit Services.

Fall 2014 New Jersey Banker

23

Feature

Health Savings Accounts Poised to Expand under the Affordable Care Act

By Kevin Boyles

H

ealth savings accounts (HSAs) have been around for nearly a decade. HSAs have significantly changed over the years adapting to the marketplace, as well as fulfilling Americans’ health care needs. As a result, both the number of HSAs, and the dollars in them, has risen sharply over the last nine years. With most of the key provisions of the Affordable Care Act (ACA) effective on Jan. 1, Kevin Boyles 2014, HSAs stand

poised to be reinvented, reinvigorated, and rediscovered by a whole new segment of the population. With the potential for wider availability under the new law, HSAs likely will expand at an even greater rate than in the past. With expansion comes opportunity for financial organizations to bring in new accounts, new customers, and new noninterest revenue. Is your organization in the game or on the sidelines for this opportunity?

HOW HSAs WORK HSAs are a tax-deferred savings account designed to pay the qualified medical expenses of the HSA owner, the HSA owner’s spouse, and dependents. HSAs have eligibil-

ity requirements. An HSA-eligible individual is someone who: • is covered by a high deductible health plan; • is not covered by another health plan that is not an HDHP; • is not enrolled in Medicare; and • is not eligible to be claimed as a dependent on another person’s tax return.

For an HDHP to be HSA-eligible, it must meet the following requirements: • For 2014, the HDHP must have a minimum deductible of $1,250 for self-only coverage and $2,500 for family coverage.

• For 2014, the out-of-pocket expense maximum (which includes most everything but insurance premiums) cannot exceed $6,350 for self-only coverage and $12,700 for family coverage.

An HSA also has restrictions and requirements. For 2014, the contribution limits for HSAs are $3,300 for self-only coverage and $6,550 for family coverage, which includes contributions from individuals and employers. Only distributions for qualified medical expenses are tax-and penalty-free; nonqualified distributions are subject to tax and an additional 20 percent penalty tax. A benefit of an HSA is that balances carry over from year to year, unlike flexible spending accounts or cafeteria plans. All unused dollars still in the HSA at the end of the year remain in the account and may be used for future qualified medical expenses. Account owners have been able to accumulate substantial balances over the years.

HSAs IN 2014 AND BEYOND The direction of where HSAs are headed is unknown. Before the ACA, the HSA marketplace was limited for most financial organizations because the vast majority of people enrolled in HDHPs were receiving coverage through their employer who had a

24 New Jersey Banker

Fall 2014

directed custodian in place. This allowed the employer to send payroll contributions on behalf of the employee and employer to one custodian – employees generally had no control over where their HSA was set up. If your organization was not selected as an HSA custodian, odds are only a relative handful of your customers opened HSAs with you in the past.

HSAs and HDHPs originally were created to give small employers the opportunity to offer health care at a lower cost to their employees when they previously couldn’t afford it. What happened, ironically, is that only a handful of small employers began offering health care, but many large employers began converting their traditional HMOs and PPOs to the HDHPs to cut costs. This drove the explosion of HDHPs and HSAs from 2004 to today. To put HSA growth into perspective, industry sources report that in 2006, HSAs held approximately $1.7 billion.

At the end of 2012, that number had risen to $15.4 billion, nearly a 10-fold increase. Even more amazing is that the dollar growth more than doubled every two years – even at the height of the Great Recession. Since 2008, the number of individuals with HDHP/HSA coverage expanded from 6.1 million to 15.5 million.

All of this is ancient history – or is it?

The employer-provided health care marketplace still is driving towards HDHPs with HSAs. Even without the new health care law, this trend would have continued into the future. Under ACA, all Americans are required to be enrolled in a health insurance plan or face tax penalties. While these penalties are not severe in 2014, the penalties will increase in the years ahead. Many young Americans will need to enroll in health plans, particularly individuals turning 27 years old who are no longer covered on their parents’ plans. Quite likely, the number of HDHPs and HSAs will continue to accelerate, which makes it quite probable that the proliferation of HDHPs and HSAs will continue to accelerate.

Younger, healthier Americans may look to the new health care exchanges to purchase the most affordable health care insurance they can. The various state health care exchanges and the federal exchange are now “open for business” and allowing people to

shop and enroll for health care in 2014. This presents a whole new touch point for financial organizations that are looking to attract new customers, accounts, and revenue streams. With individuals buying their health plans directly from the exchanges, they have more freedom to choose where to place their HSAs – is your organization equipped and ready?

THE OPPORTUNITY HSA stands for health savings account, but when examining the direct and indirect revenue opportunities of these accounts, we should rename them to align with the HSA strategy for the post-ACA world.

HSA = having something available. It does not cost much to offer HSAs to your customers. Financial organizations need to offer forms, documents, and have the ability to do the required tax reporting. Offering HSAs opens the door to more than new HSA accounts; it shows new customers that your institution has all of the financial products and services that are important to them.

So where is the revenue? In a direct sense, HSAs can drive some noninterest revenue for your organization through a variety of fees. Most deposit HSAs are housed in DDA accounts and tied to a debit or check card. According to a recent study by Devenir, HSA accounts with check cards are swiped an average of eight times a year, with an average transaction amount of approximately $120. This is quantifiable exchange fee revenue, along with any low-balance, account closing or transfers fees that your organization could impose. Another real revenue opportunity, is in that 27-yearold, “just fell off of my parents’ insurance”

crowd. These individuals likely are a targeted demographic group by your financial organization today – albeit not for HSAs. As you expand your customer base and drive revenue, particularly through lending, this generation of Americans is the future of your lending and deposit programs. HSAs can, at best, give you a competitive edge in acquiring and retaining customers. At worst, the lack of offering HSAs could send a loyal customer down the street potentially taking other lending business and accounts with them.

HSAs are not going to drive massive revenue for your institution. What they can do is be a profitable niche product that enables you to round out your portfolio of financial products that you make available to prospective and existing customers. It’s a small game, but there are few, if any, downsides to not getting into it. The upsides always will be difficult to quantify, but the downsides of not offering HSAs are not. So, I ask again, with HSAs poised for even greater expansion and availability in 2014, is your financial organization in the game or on the sidelines?

■ Kevin Boyles is the vice president of business development for the Retirement Products and Services division of Ascensus. Boyles earned the designation of Certified IRA Services Professional (CISP) from the Institute of Certified Bankers and the Certified IRA Professional (CIP) designation from the National Association of Federal Credit Unions. He can be reached at Kevin.Boyles.@ascensus.com.

Fall 2014 New Jersey Banker

25

Bank Notes

John C. Scoccola

Joseph Javitz

Charles A. Musilli

Karen A. Rockoff

Kevin B. Runyon

Christopher L. Fittin

Patrick Farrell

Steven Forleiter

Brian Schoener

Kathleen A. Stone

Gordon Gorab

Mayra Rinaldi

Jane E. Allerman-Rey

Robert L. Peacock

Thomas Mathews

Charles P. Woehrle, Jr.

Hillel Judasin

Charles Little

Dina Templeton

ATLANTIC STEWARDSHIP BANK

John C. Scoccola has been appointed to Atlantic Stewardship Bank’s board of directors. Scoccola is solutions engineering manager-global accounts with Verizon Enterprise Solutions. He is responsible for growing a technical team that supports global engineering outsourcing services.

BCB COMMUNITY BANK

Joseph Javitz joined BCB Community Bank as senior vice president and chief lending officer. Javitz has over 31 years in the banking industry working with a variety of metropolitan and regional institutional lending companies. His most recent assignment before joining BCB Community Bank was as senior vice president and CLO of Abacus Federal Savings Bank. Javitz has also worked with Federal Savings Bank, Roosevelt Savings Bank and AIG Federal Savings.

SUSSEX BANK

Sussex Bancorp, the holding company for Sussex Bank announced that Charles A. Musilli, senior vice president and chief field operations officer of Selective Insurance Company of America, has been appointed to the boards of directors of the company and the bank.

26 New Jersey Banker

PEAPACK-GLADSTONE BANK

Karen A. Rockoff has been appointed to the position of executive vice president, chief risk officer, head of bank enterprise risk management. Joining the bank in April 2013 as senior vice president, Rockoff has played an integral role in building out compliance and risk management as part of the Bank’s overall strategic plan.

Kevin B. Runyon has been appointed to the position of executive vice president of information technology. Runyon is responsible for leveraging emerging technologies in support of the bank’s strategic direction ultimately solidifying Peapack-Gladstone Bank as a leader in products, services and innovation within the banking industry.

Christopher L. Fittin has been appointed senior managing director and portfolio manager at Peapack-Gladstone’s Princeton private banking office. He has held high-profile positions at several financial institutions over a 34-year career.

SUN NATIONAL BANK

Sun National Bank has grown its commercial lending team to expand its focus in Central New Jersey. The bank has appointed Patrick Farrell senior vice president and regional manager to lead the new territory. Steven Forleiter has been named senior vice president and senior relation-

ship manager, and Brian Schoener has been named vice president and relationship manager of this Central New Jersey commercial lending team. Experienced lenders who are well-known in the regional banking industry and business community, Farrell, Forleiter and Schoener will develop business and manage commercial client relationships in Mercer, Somerset and Hunterdon counties.

NJBANKERS

The NJBankers board of directors is pleased to announce the appointment of Kathleen A. Stone, regional president, Susquehanna Bank, to fill the open board seat in District 3.

COLUMBIA BANK

Gordon Gorab has been appointed senior vice president, commercial lending middle market manager and will manage the bank’s new Middle Market Department and will be responsible for developing and originating commercial and industrial, real estate and construction loans. Prior to joining Columbia Bank, Gorab served in a variety of commercial banking and relationship management positions with PNC Financial Services Corp., Inc. Gorab graduated from Washington College in Maryland, where he earned a bachelor’s degree in economics

Fall 2014

and from Fairleigh Dickinson University with a master’s degree in finance.

Mayra Rinaldi has been appointed corporate secretary. Rinaldi joined Columbia Bank in 2000 as a teller in the bank’s Linden office. She was promoted to head teller in 2006 and was later named assistant branch manager. In 2011, she was promoted to the newly-created position of BSA/AML supervisor. Rinaldi graduated from Kean University, where she earned a bachelor’s degree in finance with academic honors.

SPENCER SAVINGS BANK

Jane E. Allerman-Rey has been promoted to first executive vice president and COO. Allerman-Rey has been with Spencer Savings Bank for more than 21 years, most recently serving as executive vice president and COO. She will align all aspects of retail banking, lending and compliance with key business processes for performance.

RobertERM L. Half Peacock has been promoted Page-7.25x4.75-OR.pdf 2

to executive vice president/strategic planning officer. Peacock has been with the bank for 18 years and previously provided leadership as senior vice president and CFO. He will continue to work with the CEO and executive team on long-term planning initiatives advising on policies and growth initiatives to managing the balance sheet mix and mitigate risk.

Thomas Mathews, CFA, has been promoted to CFO. Mathews has served the bank for 10 years during which he served as senior vice president and treasurer.

Mathews will guide the overall direction of the finance division, with specific areas of responsibility including accounting, treasury, information technologies, investmentportfolio management and budget planning.

Charles P. Woehrle, Jr. has been named senior vice president and director of commercial real estate. With a career spanning three decades, Woehrle’s diversified commercial 2:59 real PM estate knowledge extends to 11/27/12

underwriting, portfolio management, relationship management, and more.

LAKELAND BANK

Hillel Judasin has been appointed vice president, IT audit manager, based at the Milton operations center in Oak Ridge.

Judasin has nearly 25 years of audit experience, including 13 years of industry experience. He earned a bachelor’s degree in accounting from Brooklyn College and an MBA from Baruch College. He is a member of the Information Systems Audit and Control Association.

Charles Little has been named IT operations manager, based at the Milton operations center in Oak Ridge. Little has 30 years of experience in information technology with 10 years in community banking. Little attended New York Institute of Technology.

Dina Templeton has been appointed to assistant treasurer, branch operations manager, Boonton. Templeton has 30 years of banking experience.

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Fall 2014 New Jersey Banker

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Bank Shots

Audubon Savings Bank was pleased to support the Children’s Fresh Air Home. Every year the Gloucester Township Rotary (now the Gloucester Township/Pine Hill Rotary) takes about 60 children to the Children’s Fresh Air Home in North Wildwood.

There are eight elementary schools in Gloucester Township and two elementary schools in Pine Hill that participated this year for the first time.

Century Savings Bank participated in a bank-sponsored Work Day in support of the fourth annual Women Build project, sponsored by Habitat for Humanity of Salem County. The all-female employee build team rolled up their sleeves as they assisted with the building of a new home. In addition to helping with the construction, Century Savings Bank contributed $2,000 in support of the Women Build project. Members of the Century Savings Bank senior and branch management team helped in the build.

Manasquan Savings Bank marked its 140th anniversary providing customerfocused residential and business banking services in Monmouth and Ocean Counties. The bank noted the occasion with a flagship celebration event held at the bank’s headquarters. Pictured: James S. Vaccaro, president and CEO, Manasquan Savings Bank, and David P. Rible, 30th District Assemblyman, celebrate the bank's 140th anniversary.

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Fall 2014

Northfield Bank back-office employees made a donation in order to dress down one day each month to support its “Banking for a Cause” program. Banking for a Cause is a bank-wide fundraising program that raises money for local charities for one month each quarter. In addition to the dress-down fundraisers, branches conduct various fundraising activities in order to raise money for specific charities. The Banking for a Cause New Jersey charity for this past quarter was Autism Speaks.

Jane A. Kurek, executive director of The Provident Bank Foundation, which supports organizations that are dedicated to improving the lives of New Jersey residents, was honored during the Executive Women of New Jersey’s Salute to the Policy Makers 2014 Awards Dinner.

Employees, family and friends from Newfield National Bank sponsored a water table and walk team to raise funds for March of Dimes. The event was held at Rowan University. The team raised a total of $1,500, helping the March of Dimes to fund research, education, vaccines and breakthroughs. Pictured, from left: Danielle Barsuglia, Joanne Barsuglia, Doug Johnson, Joanne Purdy, Natalie Szwed, Brenda Johnson, Ashley Andrews, Danielle Sinclair, Brian W. Jones, Gabi Szwed (in front), Kassandra Sanchez, Rae Eidam, Chuck Grova, Tracy Lopez, Kayla Coker, Joanne Ziemnicki, Lauren O’Rourke, Matt Vilimas (back), Regina Carione, Nick DiTomasso, Joe Migoley, Lauren Allonardo, and Vinny Allonardo (front).

Grand Bank N.A. celebrated graduates of the bank’s Financial Scholars Program, an ongoing initiative to bring financial literacy education to the Ewing and Trenton high schools. Pictured from left are: Brian Bittings, Ewing Township schools district supervisor; financial literacy program students, Bonnie Rendina, compliance analyst, Grand Bank; James Yensel, vice president, Grand Bank; and Alicia Hewlett, financial literacy teacher

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Fall 2014 New Jersey Banker

29

Bank Shots

Kearny Federal Savings and its Central Jersey Bank Division held a bank-wide Customer Appreciation Week celebration focused on a baseball/all-star theme.

Offices across the entire retail branch network were decorated accordingly, offering refreshments and small giveaways to thank customers for their loyalty and business.

Two River Community Bank announced the opening of its first branch location in New Brunswick. The bank held a ribbon-cutting ceremony for the official opening. The ceremony was attended by (pictured from left to right): Chris Tamayo, senior mortgage consultant; Craig Schlosser, vice president, Middlesex Chamber of Commerce; Donna Marra, regional manager, south region; Heather Leckart, head teller/CSR; Jodi Richardelli, regional manager, central region; William D. Moss, president and CEO; Anthony A. Mero, COO; Chris Indiveri-Gant, branch manager; Charles T. Parton, director emeritus; Councilman Glenn Fleming; Roxanne Culver, assistant branch manager; and Christina Youngblood, commercial loan officer.

Valley National Bank announced the five winners of the 2014 Samuel F. Riskin Memorial Award. This year’s winners received a $3,500 scholarship award to be used at the higher education institution of their choice. Pictured, from left: Courtney Crann, Zachary Michaels, Valley Chairman, President and CEO Gerald H. Lipkin, Sylvia Riskin, Kristen Holmes, Soumya Sudhakar and Alyssa Mancini.

Michael A. Shriner, Millington Savings Bank president and CEO, presented $500 scholarships to graduating seniors from local area high schools. Students were selected on a variety of criteria, including academic achievement, exemplary participation in extracurricular activities and work experience. Pictured at the scholarship luncheon: Brendan Cox (Ridge High School), Shriner, Hannah Alexander (Watchung Hills Regional High School) and Christopher Carle (Bridgewater-Raritan Regional High School).

Unity Bank donated $5,600 to Family Promise of Hunterdon County and Family Promise of Warren County. The proceeds are from the 8th Annual Cruisin’ Bob’s Classic Car Show. The funds were raised through sponsorships, food sales and registration fees to compete in the classic car competition. The car show was a community effort thanks to local business sponsorships, which helped make the show a success.

Members of the BCB Community Bank loan department took the time to wish one of their own, Jonathan Hall (center, wearing tie and glasses), good luck as he prepares to be deployed to the Middle East as a member of the United States Army.

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Fall 2014

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Sussex Bank, an FHLBNY member, used an advance to help provide financing assistance to Canterbury Village, a senior assisted living residence in West Orange, New Jersey.

Currently home to 40 senior citizens, the advance helped stabilize the not-for-profit housing facility’s economic future, while a portion of the funding was used to renovate its Victorian structure. This project enabled Canterbury Village to continue to offer quality care and housing services to seniors in Essex County and beyond, as it has since 1921.

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