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Millennials and Mobile Banking | Strategic Approach to CECL | Community Contribution in Banking
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NJBankers Board of Directors Gerard Banmiller President/CEO 1st Colonial Community Bank
Stanley J. Koreyva Jr. President/COO Amboy Bank
Peter Michelotti President/CEO Community Bank of Bergen County
Thomas J. Shara * President/CEO Lakeland Bank
Louis Anthony Costantino Jr. Managing Director, Industry Manager JPMorgan Chase Bank, N.A.
Anthony Labozzetta President/CEO Sussex Bank
Craig L. Montanaro President/CEO Kearny Bank
Nicholas J. Tedesco Jr. * President/CEO GSL Savings Bank
Detlef H. Felschow President/CEO Roselle Savings Bank
Thomas Lupo President/CEO Regal Bank
Michael P. O’Brien Senior Vice President/Market Manager Bank of America, Merrill Lynch
Greg White* Northern New Jersey Region Bank President Wells Fargo & Co.
John S. Fitzgerald President/CEO Magyar Bank
Christopher D. Maher Chairman/President/CEO OceanFirst Bank
Kevin B. Peterson President/CEO Haddon Savings Bank
Dianne M. Grenz Senior Executive Vice President/Chief Consumer Banking Officer Valley National Bank
Christopher Martin Chairman/President/CEO Provident Bank
Robert Rey President/CEO NVE Bank
Angela Snyder* Immediate Former Chairwoman Chairwoman/CEO Fulton Bank of New Jersey
NJBankers Officers
NJBankers Staff John E. McWeeney Jr. President and CEO ext. 627 jmcweeney@njbankers.com Michael P. Affuso, Esq. Executive Vice President and Director of Government Relations ext. 628 maffuso@njbankers.com Jenn Zorn Senior Vice President and Director of Education & Business Development ext. 611 jzorn@njbankers.com Emily T. DeMasi Vice President and Director of Communications ext. 610 edemasi@njbankers.com Wendy C. Mandelbaum Controller ext. 603 wmandelbaum@njbankers.com Claire Anello Office Manager, Database and Website Manager ext. 631 canello@njbankers.com
Contributing Editor Emily T. DeMasi
Gerald L. Reeves Former Chairman President/CEO Sturdy Savings Bank
Cris Goncalves Manager of Education ext. 630 cgoncalves@njbankers.com Lauren Barraza Executive Assistant ext. 618 lbarraza@njbankers.com Cynthia M. Zaccaro Administrative Assistant II/ Senior Administrative Assistant ext. 632 czaccaro@njbankers.com Erin Suckiel Assistant to the Director of Communications ext. 629 esuckiel@njbankers.com Diane Starr Administrative Assistant to Education Department ext. 600 dstarr@njbankers.com
James S. Vaccaro * Chairman Chairman/President/CEO Manasquan Bank
Thomas J. Kemly * Second Vice Chairman President/CEO Columbia Bank
William D. Moss * First Vice Chairman President/CEO Two River Community Bank
John E. McWeeney Jr. President and CEO New Jersey Bankers Association *Executive Committee
Counsel Michael M. Horn, Esq. McCarter & English, LLP Mary Kay Roberts, Esq. Riker, Danzig, Scherer, Hyland, Perretti LLP
Contact New Jersey Bankers Association www.njbankers.com 411 North Avenue East Cranford, NJ 07016-2436 Phone: 908-272-8500 Fax: 908-272-6626
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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.
Winter 2018 New Jersey Banker
3
Table of Contents
Cover Story
26
2017 New Leaders in Banking/BankHorizons
Departments 5
From the President’s Office 8 Politics and Policy The Power of Partnerships A Clean Sweep
5
Upcoming Events
6
Chairman’s Platform 46 Bank Shots Giving Back to Our Communities 47 Bank Notes
10
New Associate Members
Features
10
Directors’ Corner A Trusted Partner, An Unwavering Commitment
20 Feature What Do Millennials Want in a Mobile Banking App?
12
Behind the Teller Line Capital Bank Prides Itself on People
21 Feature Is Self-Insurance Right for You?
14 Feature Is Recording a Conversation Legal? 15
Meet Our Endorsed Service Provider BITS: Managed Provider for Voice and Data Infrastructure
16 Feature Nuts and Bolts of Data Breaches and Identity Fraud 18 Feature Don’t Get Left on the Sidelines: Aligning Marketing and Execution 4
New Jersey Banker
22 Feature If Your Bank is a Strong Contributor to the Community, Do You Get Recognition For It? 23 Feature Why Taking a Strategic Approach to CECL Will Help Maximize Shareholder Value 24 Feature It Is Time for a Community Bank Rate Cap
Winter 2018
From the President’s Office
The Power of Partnerships By John E. McWeeney Jr.
I
n today’s complex and competitive world, no individual or business entity can make it on their own. We all need, in both our personal and business lives, a lot of help and support along the way. Teamwork is the name of the game if you’re going to succeed and prosper, regardless of your pursuits. NJBankers is no different. In order for us to achieve our mission of serving New Jersey’s banks we need strong and powerful partners to help us deliver results for our members. Fortunately, we have more than 200 such partnerships and those are our John E. McWeeney Jr. associate members. President/Chief Executive Officer NJBankers Our associate members help us serve New Jersey’s banks in a variety of important and meaningful ways. First and foremost, they connect our banks with the very best in solutions to help them serve their customers better and operate more efficiently. A quick review of the associate member page on our website reveals close to 100 different types of products and services offered by our associate members. It’s hard to imagine any need that one of our banks could have that can’t be met by a solution from one of our associate members. Secondly and very importantly, our associate members provide direct financial support to NJBankers. They provide this support through the payment of their annual dues, by exhibiting at our key events and through their sponsorship support. In fact, these three areas of associate member financial support represent a significant portion of NJBankers total revenues and allow us to serve our members without having to raise bank dues or increase the cost of hosting our events. Finally, our associate members lend their expertise and knowledge by serving on our committees and when needed, assisting with some input and guidance on key legislative and regulatory issues. Our committees are most effective when we have engaged
bankers complimented by the expertise of our associate members. In addition to our associate members, NJBankers thrives because of other strong partnerships that we have built over time. Among those are our active memberships with the national trade associations, the ABA and the ICBA. The levels of support and communication coming from ABA and ICBA are outstanding and keep us well-informed on key issues and trends. We also benefit from the personal relationships that we’ve built with our peers at the other state banker associations. NJBankers has been particularly pro-active in ensuring that our staff attend and participate in peer group meetings for advocacy, for profit operations and communications. It’s proven to be immensely helpful to us as we always learn new ideas and best practices from our peers in the other states. We’ve also been active in building partnerships with other New Jersey trade organizations like the New Jersey State Chamber of Commerce, the NJBIA and the Commerce and Industry Association to name just a few. NJBankers is an active participant in many of these organizations as we partner to serve our respective members and the greater business community at large. I would also point to certain key banking specific partnerships that NJBankers has developed. Certainly, the Federal Home Loan Bank of New York is a key supporter of NJBankers and our member banks. Also, our active and constructive relationships with the CFPB, the Conference of State Banking Supervisors, the FDIC, the Federal Reserve Banks of both New York and Philadelphia, the New Jersey Department of Banking and Insurance and the OCC are critical to our ability to maintain an open dialogue on key regulatory issues. The regulators are frequent and welcome speakers at NJBankers events. Finally, NJBankers, through our charitable foundation with its expanded mission, is able to partner, support and connect with community based organizations. Contributions totaling $20,000 were made to aid in hurricane relief efforts this past year. Given the theme of “partnerships” for this article, it seems only appropriate that we
extend our best wishes to all of our members, partners and friends for this holiday season. On behalf of our officers, directors and staff of both NJBankers and Bankers Cooperative Group (BCG), thank you for all of your support throughout the year, without which, we could not achieve our mission of serving New Jersey banks. NJBankers and BCG are fortunate to be a part of something much bigger than just ourselves, a family if you will, of the greater banking and business communities. Enjoy the holidays with your family and friends. We look forward to a healthy and prosperous New Year for all. ■ John E. McWeeney, Jr., is president and CEO of the New Jersey Bankers Association, and can be reached at jmcweeney@njbankers.com.
Upcoming Events Jan. 19, 2018
Economic Leadership Forum
The Palace at Somerset Park, Somerset Jan. 31, 2018
What Marijuana Legalization Could Mean for Banking Forsgate Country Club, Monroe Township March 1, 2018
Risk-Response-Reputation Workshop with Shazam Brookdale Community College, Lincroft March 9, 2018
Board & Management Summit
Renaissance Woodbridge Hotel, Iselin April 19, 2018
Liquidity Workshop With KPN
Brookdale Community College, Lincroft May 16-20, 2018 114th Annual Conference JW Marriott Marco Island, Marco Island, Florida
Winter 2018 New Jersey Banker
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Chairman’s Platform
Giving Back to Our Communities By James S. Vaccaro
G
iving back to the communities we serve is what we do as bankers. Yes, we have meaningful interactions with our neighbors every day when we are able to provide them mortgage financing for the purchase of a home; extend a line of credit which enables a small business to grow and thrive or to provide a safe place for their hardearned dollars. We make a significant effort to provide those services in James S. Vaccaro an efficient and Chairman cost-effective Chairman/President/CEO Manasquan Bank manner and after successful execution, our customers are generally pleased and we are gratified that we were able to satisfy their financial needs. We recognize that the provision of financial products and services is our “core” business. Bankers, however, throughout all areas of an institution, derive significant gratification when they support community initiatives where their dedication and active efforts make things happen. Bankers provide funding to community based organizations that promotes human welfare and social reform. Support is often given through grants from foundations that have been set-up to facilitate giving back. The spectrum of support runs from financial literacy initiatives, health and welfare assistance, youth and family programs, to contributions toward veterans’ college tuitions, to name just a few. Those contributions provide societal opportunities to make a positive difference. Philanthropy is so much more than monetary assistance. I and my fellow bankers recognize that giving back to the communities we serve also includes rolling up our sleeves and standing side by side with our neighbors to affect positive change, support a common good and truly
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New Jersey Banker
advance social progress. This collaboration and public spiritedness is often on a local level. Perhaps a senior citizen’s home needs sprucing up which helps the homeowner retain their dignity. Perhaps a local community garden needs tending so that the crops can be sent to a food bank.
How many teams in your bank have built homes through Habitat for Humanity? How many have served food at the local “soup kitchen?” You know that these activities go on nearly every day yet we are not concerned with finding volunteers at our banks who will step up and make a difference. We believe in caring for others.
Winter 2018
It’s what we all do and who we all are. Community support can also be on a national level by finding sponsors for a walk to stop birth defects or to find a cure. It could be giving blood for the victims of a natural disaster in another state. Bankers will wear red – or pink – or violet to raise money and awareness for the quality of life for others. Whatever the need, bankers respond by getting involved. You’ll often find a banker sitting on the board of trustees of hospitals, hometown boys and girls clubs, affordable housing organizations, chambers of commerce and charities. We lend our expertise for handling budgets. We manage fundraisers. We share our suggestions so the less fortunate are not forgotten. This hands-on approach is seen throughout the Garden State. From the shore to the Highlands, bankers make a huge difference. Just take a look at a small sampling of programs we support and encourage at Manasquan Bank. From grants to the arts and sciences to providing a crew for a build to bringing students to the bank for Career Day, we get involved! You do too! I look around and see your banners at street fairs. I see your bank name on t-shirts when you visit nursing homes. I see the labels on toys that you helped collect for the holidays. Our banks even collaborate on projects. The NJBankers Bankers Build is just one example of how the industry came together to help those affected by Superstorm Sandy. I am grateful to have you as caring professional colleagues; proud to be a banker sharing resources; and excited to be a volunteer. You should be proud too. Indeed, giving back to the communities we serve is just who we are as bankers, neighbors and friends. The next time you see a community come together to enhance and sustain the quality of life and create the environment for all individuals to reach their full potential, you’ll see us there! They say “it takes a village;” I say “it takes a banker!” ■ James S. Vaccaro is chairman of the New Jersey Bankers Association and chairman, president and CEO of Manasquan Bank. He can be reached at jvaccaro@manasquanbank.com.
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Politics and Policy
A Clean Sweep By Michael P. Affuso, Esq. On Tuesday, Nov. 7, 2017, New Jersey voters elected, by a resounding 55 to 42 percent margin, Democrat Ambassador and former Goldman Sachs executive Phil Murphy over Republican Lt. Gov. Kim Guadagno to replace Gov. Chris Christie who is two-term limited. Since 1985, a Republican gubernatorial candidate has won a majority of the vote only once. MurMichael P. Affuso phy ran successExecutive Vice President/ fully with former Director of Government Relations NJBankers Assembly Speaker Sheila Oliver as his lieutenant governor. The new gubernatorial term begins on Jan. 16, 2018. In addition to the governor, all 120 seats in the legislature were up for election. The Democrats retained control of both houses. Currently, the Democrats hold significant majorities 24-16 in the Senate and 52-28 in the assembly. In the wake of the election, Democrats picked up one seat in the Senate (in District 11) and two seats in the assembly (one in District 2 and one in District 16) so the Democratic majorities in both houses will increase to 25-15 in the Senate and 54-26 in the assembly. Republicans have consistently shed seats in both houses since 1995. Following were the most hotly contested races: • Second District (part of Atlantic County), which is currently split, Republican Assemblyman Chris Brown defeated Democrat Colin Bell for the Senate seat held by Sen. Jim Whelan who passed away in September. Brown narrowly beat Bell by a 54 to 46 margin. Democratic Assemblyman Vincent Mazzeo held onto his seat and will be joined in the assembly by Buena Vista Committeeman John Armato. Mazzeo and Armato defeated Republicans Vince Sera, a Brigantine councilman, and Brenda Taube, a former
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New Jersey Banker
Margate commissioner. • Third District (parts of Cumberland, Gloucester and all of Salem Counties) In the most expensive legislative race in the state, Senate President Steve Sweeney defeated, by a 59 to 41 margin, Republican Fran Grenier who was heavily backed by the state’s teachers union, the New Jersey Education Association (NJEA). Sweeney’s running-mates, Assemblyman John Burzichelli and Adam Taliaferro also defeated their Republican challengers. • Eleventh District (part of Monmouth County) Republican Sen. Jennifer Beck was defeated by Democrat businessman Vin Gopal by a 53 to 47 margin. Democratic incumbent Assembly-members Joann Downey and Eric Houghtaling held onto their seats in a challenge by Republicans Rob Acerra and Mike Whelan. • Sixteenth District (parts of Mercer, Hunterdon, Middlesex and Somerset Counties) Republican Sen. Kip Bateman defeated his Democratic challenger Laurie Poppe by a 52 to 48 margin. Incumbent Democratic Assemblyman Andrew Zwicker and his running-mate Roy Freiman defeated their Republican challengers former Assemblywoman Donna Simon and Mark Caliguire. Although not competitive races, the following changes will also take place in the New Jersey Legislature: Seventh District (part of Burlington County) Democratic Assemblyman Troy Singleton will ascend to the Senate to take the seat now held by Republican Sen. Diane Allen who is retiring after 20 years in the legislature. Democratic Assemblyman Herb Conaway and his running-mate Carol Murphy, a staffer for Assemblywoman Gabriela Mosquera (D-Camden), defeated Republicans Octavia Scott and Mike Piper. Eighth District (parts of Atlantic, Burlington and Camden Counties) Republican
Burlington County Freeholder Ryan Peters defeated his Democratic challenger and will serve alongside incumbent Republicans Dawn Marie Addiego and Assemblyman Joe Howarth. Peters will take over for Republican Assemblywoman Maria Rodriguez-Gregg. Thirteenth District (part of Monmouth County) Republican Assemblyman Declan O’Scanlon will move up to the Senate, a position now held by Joe Kyrillos who is leaving after almost 30 years in the Legislature. O’Scanlon will serve with Assemblywoman Amy Handlin and Republican Freeholder Serena DiMaso who will be sworn into the Assembly. Nineteenth District (part of Middlesex County) Democratic candidate Yvonne Lopez will join incumbents Sen. Joe Vitale and Assemblyman Craig Coughlin in representing this district in January. Lopez will take over for Assemblyman John Wisniewski, who ran for the Democratic nomination for governor and served 11 terms in the assembly. Twentieth District (part of Union County) Union County Sheriff and former Assemblyman Joe Cryan was elected to the Senate to replace long-time Sen. Ray Lesniak who will retire in January after serving 40 years in the Legislature. Cryan will serve with fellow Democrats Assemblyman Jamel Holley and Assemblywoman Annette Quijano. Twenty-fourth District (part of Morris and Warren and all of Sussex Counties) former Labor Commissioner Hal Wirths will join his running-mates Sen. Steve Oroho and Assemblyman Parker Space in January. Wirths served in the Christie Administration and will replace Assemblywoman Gail Phoebus in the Assembly. Twenty-Ninth District (part of Essex County) Democrat Shanique Speight will become an assemblywoman in this district and joins Democratic incumbents Sen. Teresa Ruiz and Assemblywoman Eliana Pintor-Marin. Speight replaces Assemblywoman Blonnie Watson.
Winter 2018
Fortieth District (part of Bergen, Essex, Morris and Passaic Counties) Republican Chris DePhillips will join new incumbents Sen. Kristin Corrado and Assemblyman Kevin Rooney. DePhillips will replace Assemblyman David Russo who served 27 years in the Assembly. In the Senate, the leadership remained the same with Sen. Steve Sweeney as Senate president, Sen. Loretta Weinberg as majority leader for the Democrats and Sen. Tom Kean Jr. as minority leader for the Republicans. In the assembly, Assemblyman Craig Coughlin, formerly the Financial Institutions Committee chair will replace Assemblyman Vincent Prieto as speaker, with Assemblyman Lou Greenwald as majority leader for the Democrats. Assemblyman Jon Bramnick will continue as minority leader for the Republicans. What it all means. Tax policy changes: It is highly likely that the legislature would enact and Gov.-elect Murphy would sign a millionaire’s tax that would create a higher tax for couples making over $1 million, a corporate tax hike on certain multistate corporations called “combined reporting,” and legalizing and then taxing marijuana. Employment law changes: It is also likely that the legislature would pass and governor sign a bill raising the minimum wage with a glide path to $15, an equal pay enforcement law, and a law
to prohibit employers from asking potential employees about former wages. State bank: While the aforementioned policy changes seemingly are taking precedence, the question of a state bank remains. We are actively involved in this discussion. Republicans: Are in disarray. The party continues the trend of shedding seats which started over 20 years ago and can claim only one governor election since 1985 where they have won more than 50 percent of the vote. While some may blame a map or money it appears that the problem is much deeper. Races in traditional Republican areas were much closer than “normal.” They will need to develop a cohesive inclusive message in order to muster support in the next election two years away and not rely on the hope that a mid-term will inure to their benefit as they did in 2003 and lost seats. Democrats: Are riding high; but must deliver to both their yearning base and New Jerseyans as a whole. These interests may not be overlapping. As we see in Washington, one party rule with large margins does not guarantee an agenda or much of anything will necessarily get enacted. ■ Michael Affuso, Esq., is executive vice president and director of government relations for NJBankers. He can be reached at maffuso@ njbankers.com.
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Directors’ Corner
A Trusted Partner, An Unwavering Commitment By Michael M. Horn, Chairman, Federal Home Loan Bank of New York
T
he September 2017 meeting of the board of directors of the Federal Home Loan Bank of New York (FHLBNY) began like any other, with reports from management covering the bank’s strong performance over the past month, its risk profile and investment portfolio, and member
not been included in the materials sent the previous week: hurricane relief efforts. In the report, management proposed a combination of bank programs and charitable donations to assist in relief, recovery and rebuilding efforts. The board discussed these proposals and quickly acted: approving $775,000 (which
The damage done by hurricanes Irma and Maria may have been unprecedented, but the FHLBNY’s response was not. borrowing activity. But, for me, that meeting would soon come to epitomize the innate value of the FHLBNY and the board that guides it. It is because on that day in September, the situation in the FHLBNY’s District – which covers New Jersey, New York, Puerto Rico and the U.S. Virgin Islands – was anything but normal: the day before, Hurricane Maria had made landfall on Puerto Rico, bringing unprecedented destruction to the commonwealth just weeks after Hurricane Irma had done the same to the U.S. Virgin Islands. And so management presented the board with a new agenda item – one that had
grew to $1 million with contributions from other Federal Home Loan Banks) in donations to relief organizations, and voting to make $1 billion in Disaster Relief Funding available to the FHLBNY’s 325 members. The damage done by hurricanes Irma and Maria may have been unprecedented, but the FHLBNY’s response was not. In 2012, when Superstorm Sandy ravaged New Jersey, the Home Loan Bank had also made $1 billion in disaster relief funding available to its members. And those members responded: over the course of several years, members accessed more than $950 million of this funding to make the loans that
help homeowners rebuild, small business owners reopen, and communities revitalize themselves following the storm. So, at that September 2017 meeting, when our board approved the charitable donations and the funding program, these actions allowed the FHLBNY to make contributions that were both immediate and lasting. That is the role of the Federal Home Loan Bank of New York: a partner for its members and the communities they serve for both today and tomorrow. A cooperative that provides daily access to liquidity, but also positions its members for sustained growth over the longer term. And an institution that is engaged and nimble enough to recognize a need and respond to it. I have served on the board of directors of the FHLBNY for nearly 30 years – the last nine of which have been in the role of chairman – and this unwavering commitment to its members has been a constant. That is not to say that the FHLBNY has not changed over the past three decades. When I first joined, in 1988, the Federal Home Loan Banks acted as the regulator for their members. That would soon change, thanks to the Financial Institutions Reform, Recovery and Enforcement Act of 1989, and today, each Federal Home Loan Bank operates
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Winter 2018
as a full partner with each of its members. And as these partnerships have grown, so too has the FHLBNY. In my first year on the board, the FHLBNY had 274 members, $18.7 billion in assets, $16.6 billion in advances and earned $180 million in net income for the year. Today, the FHLBNY is a $148.3 billion institution with 325 members and $113.1 billion in advances, and it earned $133.7 million in the third quarter of 2017 alone. This strong performance is driven by the FHLBNY’s talented management team and committed staff, with guidance from the board. Ours is an active and engaged board, consisting of member directors – the leaders of member institutions for whom the cooperative exists – and independent directors like myself – experts in key fields such as housing, community development and legal and regulatory areas. This combined expertise allows us to provide input to the FHLBNY’s management team to ensure that the cooperative is both meeting the needs of its members and acting on its mission to advance housing opportunity and local community development. On Nov. 16, the FHLBNY board elected John Buran, president and CEO of Flushing Bank, as its next chairman. He is extraordinarily qualified for the position, and I know that under his leadership, the board will continue to be one of the FHLBNY’s greatest strengths. I also know that he will quickly discover, as I did, the true honor of serving as the chairman of our institution. The FHLBNY exists to support our members in any and all operating environments. It is a vital role with which we are tasked. And it is a role that we must play every day, whether under blue skies or amid a raging storm. It is this stability, this consistency, that makes the FHLBNY something invaluable to its members: a trusted partner. ■ Michael M. Horn has been a partner in the law firm of McCarter & English LLP since 1990. He is the chairman of the Council of the Federal Home Loan Banks. He has served as the commissioner of banking for the state of New Jersey and as the New Jersey state treasurer. He was also a member of the New Jersey State Assembly and served as a member of the Assembly Banking Committee. He was recently re-elected by the members of the Federal Home Loan Bank of New York to serve as an Independent Director for a four-year term commencing Jan. 1, 2018.
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11
Behind the Teller Line
Capital Bank Prides Itself on People
L
ike most quality organizations, Capital Bank of New Jersey’s success has been all about the people associated with it. In 2005 a group of 27 South Jersey businesspeople and professionals felt the time was ripe for a new, local bank that would be focused on the community’s banking needs, with an emphasis on commercial lending. That group’s two principal Organizers were Dominic J. Romano, CPA and William J. Hallissey. Their organizing efforts were led by Romano, a lifelong Cumberland County resident whose accounting practice had served the needs of area businesses and residents for decades. Romano, who has also served as the chairman of the board of Capital Bank since its inception, commented, “Our organizer group was like a ‘Who’s-Who’ of Cumberland County.” By the time the bank opened for business in 2007, Capital Bank’s stockholders grew from those 27 organizers to more than 400 individuals, almost all of whom had local ties to South Jersey and connections to the bank’s organizers and executive management team. The bank’s initial capital raise of $20 million, completed without the use of an investment banker, stands as the largest initial community bank capital raise in South Jersey. In 2006 the bank’s organizers hired Dave Hanrahan as its President and CEO. A Gloucester County boy and an alumnus of The Bank of Gloucester County/Fulton Bank of New Jersey, Hanrahan grew up in the banking industry as a commercial lender with a community banking bias. He says, “Early in my career I had the privilege of working for local bankers – guys like Scott Kintzing, Warner
12 New Jersey Banker
Knobe and Steve Miller – who gave me my start and from whom I learned a ton.” At Capital Bank, Hanrahan quickly surrounded himself with quality South Jersey bankers to establish his team, including Tom Lobosco as the bank’s COO/CFO and Tony Altadonna as chief lending officer. Hanrahan notes, “Capital Bank wouldn’t be where it is today without Tom’s and Tony’s big, positive impact on our young organization.” Altadonna retired from Capital Bank in 2014, at which time Joe Rehm was promoted to chief lending officer. Rehm has also been with Capital Bank since its inception. Hanrahan had worked extensively with each of those three individuals prior to their time together at Capital Bank. Since opening for business in 2007, Capital Bank’s (all-organic) growth has taken it to total assets of $490 million as of Sept. 30. The bank has posted a return on equity of more than 10 percent in each of the last three years. In 2017 it was, for the third consecutive year, named among American Banker’s Top 200 Community Banks in the United States. Hanrahan says that Capital Bank is focused on its core competencies of providing friendly, hometown service to its depositors, and delivering fast, flexible, professional financing solutions to South Jersey businesses. He quips, “We’re really only good at those two things… but we are really good at them, and we do them over and over again!” The bank’s financial results have permitted it to reward its stockholders. In 2012, at just five years old, the bank commenced payment
Winter 2018
of an annual cash dividend. That dividend has grown every year since then. Capital Bank has also conducted three stock repurchase offers in as many years. In the latest one, announced by the bank on Sept. 29, the bank offered to repurchase up to 3.9 percent of its outstanding shares at a price of $20 per share, double the $10 price the bank’s initial investors paid. Not only have the bank’s financial results been outstanding, but so has its local impact. Over its 10-year history, Capital Bank has been involved in numerous community development efforts, including a $1.8 million Vineland Low-Income Housing Tax Credit investment and leading a $25 million community development financing arrangement to improve Cumberland County essential infrastructure. Romano commented, “When the 27 organizers envisioned what Capital Bank would become, we wanted it to be a bank that would truly have a meaningful local impact. We’re proud of what we’ve accomplished so far.” The bank’s efforts doing so have earned it three consecutive ‘Outstanding’ CRA Examination ratings. Hanrahan is optimistic about the future, saying “The future is bright for well-run community banks who stick to their niche. I think our best days lie ahead. And we’ve got the right people – from our board to our 72 employees – to make it happen.” In addition to Romano and Hanrahan, Capital Bank’s board of directors includes John DiDonato; Harry Hearing, CPA; Dan Kuhar; Tricia Pilone; Sam Pipitone; Hon. George (Skip) Stanger; and (newly-
appointed) Jim Haefele, CPA. Each of those individuals has deep roots in South Jersey and significant community ties. The bank operates from five locations – two in Vineland (Cumberland County), a branch in Woodbury Heights (Gloucester), a branch in Hammonton (Atlantic) and a Loan Production Office in Marlton (Burlington). The bank primarily lends money to businesses located in the seven southern counties of New Jersey. ■
KNOWLEDGE IS THE BASIS OF SOUND ADVICE. TWENTY NINE YEARS OF EXPERIENCE TELLS US SO. As an advisor to financial companies nationwide for more than 29 years, Sandler O’Neill’s knowledge and insight have served clients well in bull and bear markets alike. The depth of experience gives our firm a unique perspective on how financial companies can best positionthemselves in the current environment. Sound, straight-from-the-shoulder advice – it’s what we do best. To learn more, please contact John Beckelman, Principal, at 212.466.7832, or visit www.sandleroneill.com.
Sandler O’Neill + Partners, L.P.
Winter 2018 New Jersey Banker
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Feature
Is Recording a Conversation Legal? THE LAWS EVERYONE SHOULD KNOW By Catherine Pastrikos Kelly, Esq., Meyner & Landis LLP
T
echnology makes it easy – sometimes too easy – to record conversations. Between free voice recording apps or phones that record conversations with the touch of a button, recording conversations has never been easier. In fact, several of my recent cases involved clients that recorded conversations with individuals that later became their adversaries in a subsequent litigation. Those recordings were required to be produced to the adversaries to the extent they were responsive to the adversary’s discovery requests and/or relevant to the litigation. If you intend to record a conversation, however, you should consider whether doing so is legal. This is important because eleven states prohibit recording a conversation unless all parties to the conversation consent and violators can face civil damages and/or Catherine Pastrikos Kelly criminal penalties. This article will explain the differences between “one” and “two party consent” states and various states’ laws regarding recording conversations.
ONE PARTY CONSENT VS. TWO PARTY CONSENT IN GENERAL In the context of recording conversations, the states in our country are divided as either “one-party consent” states or “twoparty consent” states. A “one-party consent” state makes it a crime to record or eavesdrop on an in-person or telephone conversation unless one party to the conversation consents. A “two-party consent” state makes it a crime to record or eavesdrop on a conversation, including a private in-person communication or telephone call, without the consent of all parties to the conversation. Most states, like New Jersey, New York and Texas are “one party consent” states. Eleven states, including California, Massachusetts, Florida and Pennsylvania are “two-party consent” states. Certain states also have state-specific nuances in their laws that are important to understand before recording conversations. This article discusses the relevant laws of New Jersey, New York, Florida and Pennsylvania in more detail.
NEW JERSEY AND NEW YORK New Jersey and New York are “one-party consent” jurisdictions. In particular, New Jersey and New York law make it a crime to record an in-person or telephone conversation unless at least one party to the conversation consents. Thus, in these jurisdictions, you may record a conversation or phone call if you are a party to the conversation or you get permission from one party to the conversation in advance. Violating these laws could subject you to criminal prosecution and civil claims and damages for violating the law relating to recording conversations.
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FLORIDA AND PENNSYLVANIA Florida and Pennsylvania are “two-party consent” states and, therefore, it a crime in these states to record a “wire, oral or electronic communication,” unless all parties to the communication consent. There is an exception in Florida and Pennsylvania for inperson communications when the parties do not have a reasonable expectation of privacy in the conversation, such as when they are in a public place. Therefore, these conversations may be able to be recorded without violating these states’ laws.
CHOICE OF LAW Because each state has different laws on this issue, the next logical question is how to determine which law applies to your case. Unfortunately, it is not always clear which law will apply to a communication, especially if the communication is over the phone. For example, if you are recording a conversation with someone in a different state, it is difficult to say in advance which state’s law applies. If all participants to a conversation are in the same state, however, then it is more likely that the law of that state will govern.
CONCLUSION Many times, people record conversations in situations in which they are in a disagreement with another person. The relevant laws across the country, however, are not uniform. Therefore, it is important that you understand the laws of your state before using the freely available technology to record conversations. Otherwise, you may subject yourself to criminal prosecution and a civil suit by an injured party. Indeed, no one wants to have a discovery issue in a litigation that leads to an admission of a possible criminal act. If you have any questions about the laws in the states in which you live or work, you should speak to your trusted counsel. ■ Catherine Pastrikos Kelly is an attorney at Meyner and Landis LLP specializing in assisting clients with matters that involve substantial financial or business exposure and cutting-edge legal issues. Website: www.meyner.com. She can be reached at: ckelly@meyner.com
Winter 2018
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Winter 2018 New Jersey Banker
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Feature
Nuts and Bolts of Data Breaches and Identity Fraud By Marcus A. Asner
D
ata breaches are very much in the headlines these days. It seems that hardly a week goes by without a story about a major new breach, often involving the personal information of hundreds of thousands or even millions of victims. The financial services industry gets hit especially hard, suffering more breaches than any other industry, and often falling victim to identity thieves who exploit the stolen data to steal money. So, how do we stop the bad guys? We probably can’t – at least not entirely. But banks certainly can take steps to protect themselves. An important starting point, I believe, is to learn how identity thieves actually work: How do they go about stealing data? And how do they exploit the data they’ve stolen? By gaining insight into how thieves actually operate, we’ll have a better chance both to stop the thief Marcus A. Asner before he strikes, and to limit the damage when he does.
IDENTITY FRAUD 101 So how does a fraudster go about committing identity fraud? I served as a federal prosecutor in Manhattan from 2000 to 2009, where I handled a number of big identity fraud cases, and spearheaded the U.S. attorney’s office effort to combat identity fraud. My position led me to spend countless hours debriefing identity thieves and getting to know how they worked.
GETTING IDENTITY DATA Identity fraud ultimately relies on stolen or fictitious identity information. While some fraudsters personally will steal data, many others will trade for it. The Philip Cummings identity theft case, which I handled as a prosecutor, provides a good example. Cummings didn’t personally exploit the approximately 30,000 credit reports he stole; instead, he sold reports to others, who used them for fraud. The scheme’s impact was dramatic (leading to losses of as much as $100 million), but the market Cummings created for credit reports was tiny when compared to some of the “carding” forums on the Internet. On websites such as Shadowcrew and Mazafaka, criminals openly traded large quantities of identity data, such as lists of card numbers or Social Security numbers. Where does all this data come from? Sources of identity data can run the gamut from a complex hacking scheme to simply rooting through a victim’s garbage (commonly called “dumpster diving”). Low-tech approaches may be the most common. By stealing mail or a purse, a thief may reap a victim’s name, date of birth, and address, and perhaps even her account information and Social Security number. A disadvantage of a low-tech approach, of course, is that it’s easy to detect, which means the
16 New Jersey Banker
victim could cancel her cards and the thief will risk getting caught. Data breaches provide a major source of identity data. Breaches come in different varieties. While hacking catches a lot of news, less sophisticated breaches – which might occur when a laptop is lost or stolen – may well be more prevalent and lead to more damage. Company insiders often cause the most significant breaches. The BetOnSports case I handled provides a good example. Working with an employee in the credit department of a gambling website, the ring stole customers’ private identity information, including names, dates of birth, addresses and credit card information. Hospitals are another favorite target. New York Presbyterian Hospital, for example, suffered a large data breach when a patient admissions representative accessed the records of over 40,000 patients. Data breaches sometimes rely on plain old trickery. A famous example is the ChoicePoint case, where fraudsters opened at least 50 bogus company accounts with a credit reporting agency in the names of phony debt collectors, insurance agencies or other companies, and then used those accounts to steal identities of 145,000 people. Other approaches involve “phishing,” “malware” attacks and “pretexting” schemes. The common thread in these “social engineering” schemes is that a thief seeks to trick a person – perhaps a bank employee – into providing identity information. “Skimming” involves stealing card information by using a card reading device. Thieves may mount a well-disguised skimming device over an ATM, which records the data of cards inserted into the ATM. To capture PINs, thieves might mount a small camera near the key pad, or may use a “PIN overlay pad,” which looks like the original pad, but is equipped to record PINs as victims enter them.
EXPLOITING IDENTITY DATA What does a fraudster do with stolen data? It depends on the scheme. A skimming scheme, for example, may simply involve loading stolen data onto a blank card and withdrawing cash from an ATM. In other cases, however, fraudsters will go to great lengths to build a façade that they are, in fact, the person they are impersonating.1 By studying carefully government-issued IDs, fraudsters (or their colleagues) often will create authentic looking documents. The thief also may obtain authentic government-issued IDs, for example, by bribing a DMV employee, or by obtaining her victim’s birth certificate, and using it to get additional IDs, such as a driver’s license or even a passport. Establishing a fraud address allows fraudsters to receive mail (including utility bills, which can help in getting a government-issued ID) or packages without alerting their victims. A thief can use a friend’s address, a neighbor’s apartment or a vacant house. Corrupt real estate agents, and mail receiving agencies also are useful sources for fraud addresses.
Winter 2018
A thief ’s next steps depend on the data she has. A stolen credit report can show where the victim already has accounts. To attack an account, the thief often will send a change-ofaddress letter to the bank or card company. After a few days, the thief might order new checks, or report a lost card and request a replacement. A fraudster also might apply for a new card or credit line with a new bank. Once a fraudster gets a new card, she can start reaping the rewards. She might start with a test purchase, buying gas, for example, to see if the card is active, while at the same time allowing for a quick escape. If the card works, the fraudster can attempt cash advances or buy expensive merchandise (such as computers or stereo equipment), which she can resell through a fence. A thief also can obtain convenience checks in one victim’s name, deposit them into an account established in another victim’s name and withdraw funds. Fraudsters often gain considerable insight about their victims. The Cummings ring, for example, gathered intelligence about security measures, and focused on banks with weaker security (which they believed were smaller banks and banks in rural areas). Ring members also shared intelligence about which retailers ask for identification for credit card purchases, and would buy from stores with weaker security. The fraudulent purchases or withdrawals often are surprisingly small. This makes sense. A large withdrawal or purchase is more likely to draw scrutiny than a smaller one. By attacking many victims, each on a relatively small scale, a thief still can make a lot of money, while reducing both the risk of getting caught and the likely penalty. Not everyone is an easy target. Some may have a lower credit rating or their bank may have strong security. A thief nevertheless can exploit almost anyone’s identity. One approach, which I call the “bank account daisy chain” method, involves opening multiple accounts in the names of different victims. Then, a thief may instruct the bank of a wealthy victim to transfer funds to a newlycreated account. Once the money lands in the second account, he can withdraw some, and transfer funds to multiple other accounts on the daisy chain, withdrawing money along the way, and making the scheme harder to investigate and stop.
RESPONDING TO THE THREAT Individuals are the first line of defense. Most of us know not to carry around our Social Security cards or birth certificates, to shred sensitive documents, to carry only the ID and credit cards we actually need, and to take care how we handle sensitive documents. It also helps to monitor account statements. At bottom, the rules are simple: (1) know what identity data you have, (2) make sure it’s secured so that (a) the bad guys likely won’t be able to get it, and (b) if they do get it, your exposure is limited and your most sensitive material remains safe and (3) stay alert for signs that someone is using your identity. And if you do end up a victim, you should take aggressive steps to correct your credit history, and prevent further attacks. Many of the ways individuals can protect their data also are useful for businesses, although the difference is that corporations typically possess much more data, including data on their employees and customers. The FTC’s free guide, “Protecting Personal Information, A Guide For Business,” provides useful advice. In a nutshell, businesses need to guard against both low-tech sorts of attacks and more sophisticated hacking schemes – by locking filing cabinets, disposing of personal data appropriately and establishing robust, upto-date IT security systems. Strong password protocol and computer firewalls are crucial. To guard against a corrupt insider – such as the next Philip Cummings – companies should limit and track which employees have access to sensitive data, and routinely monitor the data that employees access. It also helps to divide sensitive data into separate components, limiting any single employee’s access. To limit the impact of any breach, businesses need to understand fully what data they have, and keep only the material they actually need. Financial institutions also should routinely reevaluate their data security, looking for vulnerabilities and fixing them as they arise. And banks can fight social engineering schemes with employee training, clear and enforced rules articulating the information employees may provide over the telephone or the Internet and monitoring interactions with customers. How do banks protect the money and other valuables they hold? Knowing how identity thieves actually operate will help. Remember, one of the first things an identity
thief often does is change the victim’s address. So change-of-address letters can be red flags. Banks can help thwart identity theft by contacting the old email address or phone number, and notifying the victim of the change. Banks also can develop programs to look for unusual moves or purchasing activity. Here’s an example from my own life: I’m a lawyer in New York, but a few years ago I found myself in Oklahoma and decided to buy some cowboy boots. My credit card company recognized this as unusual (it was), and immediately called my cell to determine if the transaction was real. Banks also can protect their online customers by recognizing commonly used computers, establishing better password protocols and asking customers nonobvious security questions. Banks also limit the damage from attacks by imposing limits on the withdrawals permitted through vulnerable access points such as ATMs. Finally, financial institutions need to plan for the worst. Companies hit with a data breach often face a dizzying array of practical and legal issues, ranging from investigating and stopping the breach, to interfacing with law enforcement, complying with victim notification requirements, dealing with the press, and defending civil litigation. Having a plan to address a security breach – such as a plan to change customer passwords, disconnect the IT system from the Internet, and timely notify victims – and taking the time to go through table top “fire drill” type exercises, can go a long way toward helping banks execute an effective response and minimize the impact of any breach. ■ Marcus Asner is a partner at the New York office of Arnold & Porter. Asner is a trial lawyer in the firm’s white collar practice group and co-chairs the privacy and data security practice. Asner has extensive experience with data breaches, cybercrime, corporate espionage, money laundering and bank fraud matters. He can be reached at Marcus.Asner@apks. com or (212) 836-7222.
FOOTNOTES 1. The District Court’s opinion in the Cummings matter provides a useful description of how one identity theft ring went about exploiting stolen identity data. United States v. Abiodun, 442 F. Supp. 2d 88, 90-94 (S.D.N.Y. 2006), aff ’d in pertinent part, 536 F.3d 162 (2d Cir. 2008).
Winter 2018 New Jersey Banker
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Feature
Don’t Get Left on the Sidelines: Aligning Marketing and Execution By Sean C. Payant
T
he marketing process is a little like the dreaded team selection in gym class. Two captains are appointed and they take turns picking their team from the kids on the sideline. “Pick me! Pick me,” some plead; others stand quietly, just hoping to be noticed. No one wants to be picked last. As an industry, we spend vast amounts of money, not to mention time and internal resources, for the purpose of marketing our banks—to get them to choose us. We brand. We market. We craft creative campaigns and blanket with direct advertising. We create television and radio spots. We orchestrate social media initiatives. The role of the marketing professional is to get consumers – Sean C. Payant the team captains – to pick our bank first. We are the kids standing in line saying, “Pick me! Pick me!”
WHAT HAPPENS WHEN YOU GET PICKED? Perhaps you’ve had this experience: you walk into the restaurant and read the specials board while you wait to be seated. Later, when your server approaches the table, you ask him or her about the daily specials. Their response: “I just got here,” or, “Let me check.” The specials board, aka marketing, did its job. It got you to ask questions and initiate a conversation, but the server didn’t have answers. This is a major fail. Our banks are no different. Experience has taught us that targeted, narrowly cast marketing gets people in a bank’s doors. But, your team must be equipped to respond appropriately. Far too often, frontline employees are the last to know about your marketing initiatives, let alone equipped to respond effectively when asked about our products and services. When marketing gets you picked, it unfortunately doesn’t always mean you make the team. Making the team requires an organizationwide effort to capitalize on every opportunity. Marketing’s job is to create opportunities. The bank employee’s job is to capture the sale. If these two purposes aren’t aligned, your efforts don’t just fall short, they can cause lasting damage. With consumers holding more and more control over your brand message as they post and tweet, the customer experience is paramount. Simply put, unless there is alignment between marketing and execution, much of the marketing department’s effort is in vain.
HOW DO WE BUILD ALIGNMENT? For marketing initiatives to truly succeed an organization must
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commit to ongoing education. Every employee must be prepared to respond appropriately to opportunities. In any situation, employees must have one of two types of expertise: (1) knowledge regarding the specific product or service being discussed, or (2) the knowledge and skill to make a professional referral to the expert. Building true alignment between marketing and execution depends on three factors: product knowledge, customer service and accountability.
PRODUCT KNOWLEDGE With any marketing initiative, the bank’s employees must understand the offer and the fulfillment process. This goes beyond just providing a marketing piece or a digital file of a television or radio clip. It should include product training: • What is the product? • How does it work? • Who is the target audience? • Why would a customer want this product, or specifically, how does it make the customer’s life better? • How do we clearly ask for the sale? It is important to understand that product knowledge training is not a “one-and-done” event. If you don’t have an ongoing training plan, your team members will quickly lose essential knowledge. In fact, with inadequate product knowledge, employees will miss buying clues, or even ignore them, not wanting to look uninformed.
CUSTOMER SERVICE Ask bank executives why consumers should pick their bank and the response is always something like, “Our service is wonderful.” In reality, it’s not. As bankers, we put ordinary on a pedestal every day and try and convince ourselves and our customers that it’s actually extraordinary. For the most part, our customer service standards are unclear. It is crucial that consumers who pick your bank have an experience that complements your marketing efforts. Most organizations do very little to craft the customer experience. Employees are simply told, “Provide great customer service.” But, they are never shown what is actually expected of them beyond a few basic behaviors. Beyond basic behaviors, there is another level of customer service, “excellence.” Every employee should ask themselves, “What can I do so that, when this customer leaves, they feel special?” This extra effort is what takes service beyond simply going through the motions and creates a truly extraordinary customer experience— the kind they’ll want to tell others about.
Winter 2018
Unless you have clear service expectations that are regularly trained, coached and modeled, it is unlikely your team is consistently providing the level of service necessary to complement your bank’s marketing efforts. Then again, even if you do have clear service expectations, how do you really know that they are being reliably executed? It starts with accountability.
ACCOUNTABILITY Accountability is really about measuring and reporting. The most successful organizations establish clear service standards and back them with specific customer acquisition goals. As the accompanying chart illustrates, training and mystery shopping can drive improvement to your marketing results. Client data shows financial institutions that mystery shop AND retrain employees at least annually experience a 19 percent lift in openings when compared to clients that neither shop nor train. When employees know we are measuring something, they will work to achieve it. When employees are properly equipped, know what they need to achieve, and are accountable, results follow.
WHERE DO WE GO FROM HERE? As captains pick their teams, we all want to be picked first. But regardless of the draft order, it is essential that your marketing AND execution are aligned so you always make the team. Without a clear plan that includes product-knowledge training,
customer service standards and training, and accountability, your organization may well be left on the sidelines. ■ Sean C. Payant, Ph.D., is chief consulting officer at Haberfeld Holdings, a data-driven consulting firm specializing in core relationships, customer, and profitability growth for community-based financial institutions. Payant can be reached at (402) 323-3614 or Sean@haberfeld.com.
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Winter 2018 New Jersey Banker
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Feature
What Do Millennials Want in a Mobile Banking App? By Shane Ferrell
S
martphones and tablets have ushered in a new era of mobile usability for financial institutions, with the Millennial generation at the forefront. In order to gain insight into Millennials’ mobile banking habits and learn their reasons for any lingering reservations – CSI, in partnership with The Center for Generational Kinetics, conducted a national study of more than 1,000 banking customers from across generations. From our survey findings, we discovered some answers to this important question: what are Millennials looking for in a banking mobile app? Our research took a deep dive into the various habits of Millennial banking customers and also unearthed a few common misconceptions about them. One such misconception is that Millennials, as a whole, are a tech-savvy generation. Millennials are not necessarily tech savvy, but rather tech dependent. Most Millennials couldn’t tell you the first thing about how their mobile devices actually work; yet this generation, more than any other, depends on technology to fulfill their everyday needs. This is an important distinction, because it highlights a key point: Millennials need a banking mobile app that offers wide functionality in combination with a user-friendly interface. This mixture of functionality, simplicity and convenience creates an ideal mobile banking app for Millennials. But what exactly does that look like? Through our study, we identified some of the musthave functions and characteristics that Millennials want from your institution’s mobile app, as well as some of their biggest turn-offs.
stated a rewards program would absolutely cause them to use a mobile banking service more often. One way to implement a rewards program is through incentives like discounted fees, prizes or contests for using mobile banking services. Programs to increase customer savings, like prize-linked accounts or gamification to help customers meet their financial goals, are already gaining traction. Strategies like these foster a connection with Millennial customers and engage them beyond the traditional bank-to-customer relationship.
THEIR NEED FOR CONSTANT ACCESS
THEIR BIGGEST TURN-OFFS
Mobile apps, by nature, are constant; a customer is always a few taps away from accessing any app on their mobile device. A mobile banking app’s functions must also be constant, because Millennials demand it. Case in point: 31 percent of Millennial respondents to CSI’s study check their balances daily. If your mobile app doesn’t offer a quick and seamless way to view account balances, you will absolutely lose out on Millennial interest. The need for constant access is further displayed by Millennials’ preference regarding interacting with their banks. For example, Millennials tend to avoid physical visits to the bank as compared to older generations. When asked their reasons for skipping an in-branch visit, 54 percent stated that they could perform the needed action online or on a mobile device. This insight proves that Millennials expect more utility from non-physical banking channels. Your app must provide this utility to Millennial customers at any given time.
Limited services and service delays are major turn-offs for Millennial users. This should come as no surprise, as this generation is used to instant gratification. If your mobile banking app suffers from significant delays or does not offer basic functions like remote deposit check capture or an easy way to view account balances, you can kiss your Millennial customer base goodbye. Faulty security also is a major negative: 29 percent of Millennials say improved security measures and fraud protection would cause them to use their bank’s mobile app more frequently. This indicates that financial institutions need to communicate their security protocols clearly, and often, through messaging that articulates their security practices. To understand Millennials’ mobile banking app behaviors is to understand the future of banking in the mobile arena. Financial institutions must position their mobile apps to offer the convenience that Millennial customers expect, coupled with the functions they need to engage with their banks. ■
THEIR BIGGEST INCENTIVE Constant access can pave the way for a satisfied Millennial mobile user, but it’s not the only thing that makes Millennials come back for more. According to CSI’s research, the quickest way to a Millennial’s heart is through rewards. An incredible 46 percent of Millennials
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THEIR TOP ‘MUST-HAVE’ FUNCTION It’s difficult to pinpoint any one function of a mobile banking app that is sure to please the majority of Millennials. Based on our research, however, the ability to engage in a “social transfer” of money ranks highly among them. In fact, 84 percent of Millennial study respondents say they would absolutely use a money transfer app or service if it were available from their financial institution. Apps such as Venmo and PayPal dominate the minds of Millennial consumers who want to easily transfer funds to their friends and family for everyday expenses. This “cashless” mentality is engrained in today’s culture, and is only set to advance further. So, mobile banking apps must offer a means of transferring funds in this way if they are to compete with other payment apps and appease their Millennial – and future Gen Z – customers.
Shane Ferrell works as CSI’s vice president of digital strategy. In his role, he leads the strategic direction of CSI’s digital banking suite of products. He can be reached at shane.ferrell@csiweb.com.
Winter 2018
Feature
Is Self-Insurance Right for You? By James DiOrio
W
ith the passage of the Affordable Care Act (ACA) and rising insurance costs, many mid-market sized plan sponsors are exploring the switch from insured to selfinsured medical plans. During this process, plan sponsors will need to evaluate their appetite for risk and to navigate, for the first time, the maze of terms and conditions within a medical stop-loss contract. Selfinsurance is usually best suited for plan sponsors with the financial wherewithal to absorb variable claim payment streams. Under a traditional insured medical plan, there is a true risk transfer. The plan sponsor pays a premium and in return, the insurance company assumes 100 percent of the risk. Under a self-insured plan, the plan sponsor assumes 100 percent of the risk. However, to mitigate this claims risk, plan sponsors usually purchase Stop-loss Insurance. This insurance can protect the plan sponsor James DiOrio from a catastrophic claim on an individual participant (Individual or Specific StopLoss) or total claims in excess of the expected or budgeted amount (Aggregate Stop-Loss). While stop-loss insurance mitigates the plan sponsor’s risk, it is not first dollar coverage (i.e., the insurance company only pays claims after the plan sponsor has absorbed a portion of the claim, i.e., the deductible). One leading Stop-Loss underwriter suggests setting the Individual Stop-Loss (ISL) deductible at 5 to 15 percent of the group’s total expected claims. Using this rule of thumb and assuming a $12,000 claim cost per employee, the chart below shows recommended ISL levels for groups in the middle market.
NO. OF COVERED EMPLOYEES
MINIMUM ISL DEDUCTIBLE
MAXIMUM ISL DEDUCTIBLE
100-149
$75,000
$150,000
150-199
$100,000
$200,000
200-249
$125,000
$250,000
250-499
$150,000
$300,000
Depending on one’s appetite for risk, a plan sponsor can choose from the minimum ISL deductible shown (higher premium cost and greater risk transfer), maximum ISL deductible (lower premium cost and lesser risk transfer), or a level in between. With regard to Aggregate Stop-Loss (ASL), the most common deductible amount is 125 percent of expected claims. Thus, if expected claims were $2 million and actual claims came in at $3 million, the plan sponsor would pay the first $2.5 million (125 percent of $2 million) and the
BANKERS COOPERATIVE GROUP , INC.
A N N J B A N K E R S A F F I L I AT E D C O M PA N Y
insurance company would pay the remaining $500,000. Some of the advantages of self-insurance • Potential for increased cash flow if actual claims are less than expected claims. • The ability to hold the money associated with Incurred But Not Reported (IBNR) claims. These reserves are held by the insurance company under an insured plan and can represent 15-20 percent of paid claims. For a group with $2 million in expected claims, switching to self-insurance can result in a cash flow advantage of $300,000 to $400,000 in the first year. • Avoidance of state insured mandated benefits. In New Jersey, some experts have pegged the additional costs associated with mandated benefits at 4-8 percent of premium. Of course, plan sponsors can continue with these benefits if they so desire. • Lower expense levels since state premium taxes and ACA insurance company taxes are eliminated. This could result in a 5 percent cost reduction. • Increased access to claims data since you will receive claims data every time you need to fund your claim account. Some of the disadvantages of self-insurance • The plan sponsor is taking on additional risk if claims exceed budgeted levels. • A separate bank account is established to pay claims, usually on a weekly basis. Thus, there is additional administration. • Under a self-insured plan, the plan sponsor now becomes the claims fiduciary under ERISA. There may be ways to mitigate this risk through paying an additional fee to your administrator. • Stop-loss coverage which needs to be purchased is complex and could create gaps in coverage. For plan sponsors who would like to “dip their toe” in the pool of self-insurance, there are various insurance companies in the marketplace that offer “level funding” products which offer some of the best aspects of traditional insurance with those of self-insurance. ■ For additional information contact Jim DiOrio at (908) 272-8500, ext. 606 or jdiorio@bankerscoopgroup.com. Established in 1982, Bankers Cooperative Group Inc. (BCG) is the self-contained brokerage facility for members and associate members of the New Jersey Bankers Association (NJBankers).
Winter 2018 New Jersey Banker
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Feature
If Your Bank is a Strong Contributor to the Community, Do You Get Recognition For It? By Bruce Paul
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any community banks pride themselves on the contributions they make to their communities. This includes supporting local charities, funding scholarships, planting trees or otherwise helping their neighbors. While these great acts can certainly be their own reward, community banks also deserve public recognition for their great works. Other than the obvious benefits to the community, the contributions a bank makes to its community have two strong benefits for the bank itself. The first is the influence on prospects, or non-customers. Many prospects learn about potential banks from advertising or from community involvement. Our studies show that advertisement is generally more effective at raising awareness among prospective customers than community works alone. Indeed, this is why many banks set aside large budgets for traditional marketing campaigns. Bruce Paul However, our studies of bank customer behavior show that while ads are better at driving awareness, community contribution can be more effective at driving consideration. The latest results of the Q2 New Jersey Bank Prospect Benchmark (that collects the perceptions of non-customers) show that community contribution increases prospects’ consideration of your bank by an average of 141 percent. Not a bad side-effect! And for smaller banks with lower awareness, the increase is even higher. Any New Jersey bank that would like to see their own results on community contribution, reputation or customer service can contact Customer Experience Solutions. All of the data cited in this article is based on that study that gathered 56,458 reviews across the state in June 2017. Community contribution increases consideration by prospective customers by 141 percent. The second impact that community contribution has on a bank’s business in on its current customers. When current customers see their bank’s involvement in the community, it can improve the esteem they already have for their bank. Our research has shown that the positive impact can increase their loyalty to the bank, meaning they are less likely to leave and more likely to increase long-term spending with their bank. The latest New Jersey Bank Customer Benchmark report (that gathers the input of each bank’s own customers) showed that recognition of community contribution increases customers’ share of wallet significantly with their bank and their long-term loyalty goes up by 79 percent. Community contribution increases current customer loyalty by 79 percent. While it is probably not a big surprise to some that contribution to the community has an impact on the top and bottom lines, many
22 New Jersey Banker
banks are not actually getting the benefit they should be. Many community banks spend a lot of money and effort contributing to the community, but their current and potential customers simply don’t know about it. This is very frustrating to marketing and community giving leaders in some banks, and a wasted opportunity for many. It is very important to know just how much recognition you are getting for your good work, and how you can improve that ROI. The challenge for banks is breaking through the clutter to ensure your customers and prospects appreciate your contribution. In our research, we saw that in one specific market, two community banks had equivalent amounts of community involvement in terms of gifts to charity, hours volunteered by their staff, sponsorships, etc. However, one of the two banks was rated 275 percent higher in terms of community contribution by their respective customers and 388 percent higher by non-customers. While each bank did similar levels of community outreach effort, one was using much more efficient channels and coopting local nonprofit partners to get the word out. Not coincidentally, the bank with the better outreach is currently achieving stronger growth in new customers, especially commercial customers. The first step to getting the maximum credit (and business impact) from your community contribution, is to understand how you currently stand with customers and prospects, in your specific market and in relation to your competition. Do your current customers see and appreciate your good work? Do your prospects? The New Jersey Bank Benchmarks can show each bank the answer. The second step would be to make reasoned adjustments and tweaks to the programs to see what the impact is. A bank may need to improve its community outreach to gain greater recognition, or it may need to emphasize different types of community involvement to broaden its exposure. The third step is to measure how much a bank’s internal changes are changing external recognition. And just as importantly is to track the impact that the recognition is having on awareness of the bank and consideration to use the bank in the future. Tracking your ratings over time will show you exactly how your community contribution, and all other marketing efforts, are truly impacting how your prospects and customers view you. This will allow you to fine tune your programs so you get the maximum benefit for the bank while doing the maximum good for the community. So as you look forward to 2018, consider – what are you currently doing? Are you sure you are getting the credit you deserve? What can you do differently? And most importantly, what can you do to make sure your current and prospective customers are rewarding you for your good work? continued on page 25
Winter 2018
Feature
Why Taking a Strategic Approach to CECL Will Help Maximize Shareholder Value By Adam Mustafa, Invictus Group
I
t’s time to get ready for the new accounting standard that will be used to calculate loan loss reserves. Even though the current expected credit loss (CECL) model won’t go into effect until 2020 for public banks, banks should be preparing already. And that means all board of directors and members of the C-Suite should become familiar with the standard and how it will affect their banks going forward. But they shouldn’t view CECL simply from a compliance perspective. The primary goal should be to maximize shareholder value, with compliance serving more as a pre-requisite. In other words, the Adam Mustafa main objective should be making sure the reserve for credit losses is just right – not too large and not too thin. Every extra dollar in the loan loss reserve on day one is one less dollar of capital and as much as two fewer dollars of shareholder value (using a 2x tangible book value multiple). It gets worse; every excess dollar of loan loss provisions following implementation of CECL is one less dollar of profitability and ten or more fewer dollars of shareholder value (using a 15 to 18x price/earnings multiple and a 35 percent tax rate). The reality is that community banks are creatures of their own unique footprint, business model, mix of loans and underwriting philosophy. As a result, CECL should affect each community bank’s reserve differently; some banks should see no material impact, and perhaps even a decline, while other banks might experience a spike. To illustrate this, Invictus used BankGenome™, its proprietary bank intelligence, to analyze the potential impact of CECL on the reserves of all the banks attending a recent conference. The results, shown in the following chart, demonstrate the impact of CECL on bank loan loss reserves as a percent of gross loans for the quarter ending June 30, 2017:
Notice how bank 21 and bank 22 have similar loan loss reserves using today’s incurred loss methodology standard. However, under CECL, bank 21 should see its reserves significantly increase while bank 22 should see a decrease. It would be tantamount to a crime for bank 21 to
see its reserve increase at the same rate as bank 22 under CECL. Back in 2012, the OCC projected that CECL would increase loan loss reserves by between 30 and 50 percent. Unfortunately, auditors and regulators have embraced that misleading expectation. The OCC analysis was primitive, calculated at a point when the economy was in the early stages of its recovery and the bulk of the loans in banks’ portfolios consisted of riskier pre-crisis vintages. Still, the banks that should benefit from CECL implementation are going to be under increased scrutiny to support and defend their calculations, primarily because of those early predictions. There is a solution. Banks must be aggressive, willing to become an industry leader before there is a consensus on best practices. In our view, banks should view CECL holistically, taking into account the intersection between strategic planning and capital planning. Community banks have used capital stress testing results to persuade regulators to lower their capital ratios and justify their concentration limits. They will need to be able to muster similar evidence to optimize their reserves under CECL. This may fly in the face of conventional wisdom. Many auditors are urging banks to take a conservative approach to CECL and wait for additional guidance before implementation. Other vendors are advising banks to purchase expensive spreadsheets masquerading as software with little data backing it up. There is a trade-off between simplicity and the strength of a bank’s case to defend its reserve levels. Banks that understand the critical implications of CECL on strategic planning will rise to the top, as long as they use a proper, forward-looking methodology that leverages loan data and industry data in the smartest way possible. In CECL modeling, not all methodologies are created equally. We believe a bank’s underwriting standards should be combined with a vintage approach to optimize the CECL calculation. The data must be forward-looking and take into account the unique aspects of each bank’s loan portfolio. As bank directors and the C-Suite know, there are many challenges facing community banks today besides CECL. They include an inevitable industry consolidation, slowing loan growth, rising interest rates and regulatory pressure on commercial real estate concentrations. All these issues are driven by the same foundation: loans and deposits. And they need to be solved in tandem. The combination of these unique challenges warrants an analytical approach that is not only capable of recognizing, but also capitalizing on a rapidly changing banking environment. In other words, how banks get ready for CECL can have a significant impact on other challenges they face. CECL goes hand-in-hand with strategic and capital planning, as well as stress testing. That’s because any CECL solution must include a forward-looking view. If it doesn’t, continued on page 25
Winter 2018 New Jersey Banker
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Feature
It Is Time for a Community Bank Rate Cap By Scott M. Polakoff
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egulators are ratcheting up their focus on liquidity risk. This observation was validated through numerous conversations with bankers across the country. Moreover, the topic of liquidity risk was the bellwether article in the FDIC’s summer 2017 Supervisory Insights publication. Given the current economic cycle, active interest rate environment, escalating loanto-deposit ratios, unwinding of quantitative easing, increasing Scott M. Polakoff concentration in municipal, money market accounts and competitiveness for core deposits, one would expect renewed regulatory attention on liquidity. However, the devil is in the details! It appears from the 2017 Supervisory Insights article that high-rate deposits are under the microscope and may be considered volatile deposits. Every banker needs to understand the calculation of highrate deposits and the possible impact at your next examination. The history on this issue goes back to 2009, when the FDIC last revised the definition of the national rate and the rate cap. At that time, the FDIC determined that national rates would be calculated based on a simple average of rates paid by all insured depository institutions and branches for which data are available. The rate cap is determined by adding 75 basis points to the national rate. High-rate deposits appear to be any deposits that exceed the rate cap. Let’s dissect, from a November 2017 perspective, what is wrong with this approach: • It is heavily weighted to large, money center banks. • It excludes credit unions. The FDIC’s national rates published on
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Nov. 1, 2017, note that the data come from no fewer than 46,000 locations and as many as 82,000 locations. There is little doubt that the average is heavily weighted to the largest banks in the country: Wells Fargo has over 6,000 branches, Chase has over 5,500 branches and Bank of America has 4,800 branches. In fact, the top 20 banks have over 33,000 branches. These entities, and other similarly sized institutions, do not compete with community banks and their deposit rates should not influence community banks. For further support, the recently published national rate for a 12-month (non-jumbo) certificate of deposit was 0.27 percent (rate cap of 1.02 percent). To demonstrate how the national rate is distorted by large banks, and using New Jersey as an example, Wells Fargo, JP Morgan Chase and Bank of America are offering one-year certificate of deposit rates in the 0.01 to 0.15 percent range while community banks in the same geographic space are offering rates in the 0.50 to 1.40 percent range. The influence of the large banks artificially deflates the true community bank rate cap. Exacerbating the problem was the FDIC’s decision to exclude credit unions from the national rate calculation. Because the credit union “field of membership” has been significantly expanded over the past few years, many community banks across the country directly compete with credit unions for deposits. There is little rationale, in today’s financial environment, to exclude credit unions from the national rate calculation. One check of the reasonableness of the national rate, in its current structure, is to compare market rates for similar duration funding sources. Two examples of noncore deposit funding sources are FHLB borrowings and listing service deposits. Comparing the national rate to either of these two sources reveals that the rate cap may be 100 to 125 basis points lower. One has to question whether the funding discount associated with the utilization of
core deposits even comes close to explaining this gap. A more likely explanation is a flawed calculation of the national rate. Before we offer possible solutions to this problem, it is critical to understand the potential risk at your next examination. Examiners seem to be focusing significant attention on the volume of high-rate deposits (e.g. deposits that exceed the published rate cap) with an assertion that such deposits may be volatile. Unfortunately, for many banks that operate in highly competitive areas, the flaws previously discussed can result in a meaningful amount of high-rate deposits that, in reality, are not significantly distorted from the community bank norm. Examiners are questioning or criticizing the volume of high-rate deposits, often resulting in matters requiring attention in the report of examination. This focus on liquidity risk is also permeating the regulatory approval process for mergers and acquisitions. We are now starting to see delayed processing of applications when there is an examiner perception that a bank has an increased volume of high-rate deposits. Remember, there are no regulatory statutes or regulations in this area for well capitalized banks, instead it falls into the dubious category of examiner discretion. In order to be prepared for this examination approach, now is the time for banks to document the rates paid on deposits in the institution’s normal market area. Ironically, this sort of analysis is often relevant for adequately capitalized banks that seek a brokered deposit waiver. Well capitalized banks should generate this data, document the process, and discuss with the board in order to more accurately portray the volatility of the deposit base. Such data could assess deposit rates for all entities within one mile of all branches, with appropriate adjustments to exclude large banks and include credit unions. The result is a national rate that more appropriately aligns with the community bank market area.
Winter 2018
Strong Contributor to the Community continued from page 22 Similarly, we urge the FDIC to leverage all of its quality work generated in its December 2012 Community Bank Study and revise Part 337 to develop a more reasonable rate cap process by bifurcating the analysis for community banks versus large banks. As the rule currently stands, deposit rates offered by large banks are artificially depressing the “true” national rate for community banks. Inversely, and equally troubling, large banks could encounter financial distress AND increase their deposit rates to lure additional funds without triggering any Part 337 restrictions since they are currently at the bottom of the deposit rate market and the current definition favors their structure. ■ Scott M. Polakoff is an executive vice president at FinPro Inc. He joined FinPro Inc. in 2011, after more than 25 years of bank regulatory service. He can be reached at (908) 234-9398, ext. 102 or spolakoff@finpro.us.
Auditing and Assurance Consulting
The New Jersey Bank Benchmarks are based on over 100,000 unbiased consumer and business reviews in New Jersey gathered twice per year and provided to subscribers in January and July each year. Tell us your story! Enter the NJBankers Community Service Award Program, visit njbankers.com for details. ■ Bruce Paul is the CEO of Customer Experience Solutions, the creators of the New Jersey Bank Benchmarks. Customer and Prospect Benchmark results are available every January and July. For more information, including specific scores for specific banks, please contact info@cescx.com or (203) 906-8923.
CECL continued from page 23 regulators will send a bank back to the drawing board. One of the biggest tasks that banks will face is making sure their loan data is sufficient to meet both the CECL standard and the methodology they choose to estimate their allowances for credit losses. Many banks may have to collect more data than they have in the past and retain it for longer periods. In a recent webinar, Federal Reserve regulators suggested that banks begin looking at their data gaps now so they can put together a plan to address them before implementation. Done right, CECL will not require most community banks to increase their loan loss reserves. We believe that the proper approach to CECL is to integrate it with strategic and capital planning, so that banks understand the implications of the standard on everything they do. Compliance isn’t good enough. Banks that take an aggressive approach to CECL, and come up with data to support their case, will maximize their shareholder value and gain a competitive advantage. ■ Adam Mustafa is the president of the Invictus Group, a data-driven strategic intelligence firm that specializes in CECL readiness, M&A advisory services, stress testing and capital planning. He can be reached at amustafa@invictusgrp.com.
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Winter 2018 New Jersey Banker
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The exhibit hall bustled with activity including a craft beer tasting with Beer Haus, a local brewery.
Congratulations to Alberto Alemany, VP/CFO, Schuyler Savings Bank, for winning the grand prize of $500 to Hotel.com!
Attendees visiting the booth of Gold Sponsor Wolf & Co.
O
n Dec. 7-8, Long Branch’s Ocean Place Resort & Spa was host to the elite of the Mid-Atlantic region’s banking industry. Through a continuing partnership between the New Jersey Bankers Association and The Warren Group, publisher of New Jersey Banker, BankHorizons shined yet again with solutions providers, banking information and expertise. This year the conference focused on a wide range of topics, from information technology and regulatory changes to risk management and product pricing. As if the wealth of industry knowledge and camaraderie was not enough, participants could enter into a raffle to win any of over a dozen prizes. With all of the fun, collaboration and learning only growing each year, 2018’s event seems just over the horizon. NJBankers and The Warren Group look forward to seeing you next year.
NJBankers Chairman James Vaccaro, chairman/president/ CEO, Manasquan Bank, joins Holly Hoffman in her “Survivor” hut at BankHorizons.
26 New Jersey Banker
Attendees of Bank Horizons enjoyed a day learning about emerging opportunities and innovative solutions for the banking industry. This year, Holly Hoffman, the last woman standing on “Survivor: Nicaragua,” was the emcee for the day.
Holly Hoffman shows the bandana that she wore for 38 days on “Survivor: Nicaragua” to John McWeeney Jr., president/ CEO, NJBankers, in her hut at BankHorizons.
Winter 2018
CONGRATULATIONS TO THE RECIPIENTS! Sonia Amorim, First Vice President, Valley National Bank All Photos by Donald Christensen, Rizco
Frank DiDolci, Relationship Manager, AVP, Unity Bank Desirae Dodd, CDD-EDD-QC Supervisor, Sun National Bank J. Michael Fischer, Vice President – Relationship Manager, First Bank Edward Galan, SVP/Team LeaderBusiness Banking, The Provident Bank Nicole Linardos, AVP/Marketing Supervisor, Boiling Springs Savings Bank Jeffrey Martinez, Senior Vice President, Central New Jersey Market Manager, PNC Bank, N.A. Alexa Monte, Marketing Manager and Assistant Treasurer, Mariner’s Bank
B
The 2017 New Leaders
ankHorizons enjoyed another successful year with a lineup of speakers, all experts in their fields, who shared key information to the future of community banking. In addition, service providers exhibited their solutions at the tradeshow. The event kicked off the night before with the New Leaders in Banking Awards. The awards were bestowed upon up-and-coming leaders, who were nominated by their respective banks. An independent panel of judges reviewed the nominations and this year, there were 15 recipients. We congratulate the class of 2017!
Daniel Pimentel, AVP, Commercial Credit Analyst, First Hope Bank Jacqueline Reyes, BSA/AML/OFAC Officer and Vice President, PeapackGladstone Bank Sara A. Santos, Real Estate Facilities Coordinator, Investors Bank Heather Schick, AVP – Product Support Specialist, Manasquan Bank Kayde Shabrack, Supervisor of Electronic Customer Service Support/Assistant Secretary, Atlantic Stewardship Bank Shelaugh Smith, AVP/Operations Officer, Crest Savings Bank
Holly Hoffman, the last woman standing on “Survivor: Nicaragua,” shared her message about her experience on the reality show and how it applies to leadership at the reception for New Leaders and Graduates of the NJBankers Leadership Academy Emerging Leaders Program.
Keith Suchodolski, Senior Vice President/Controller, Kearny Bank Jerry Gagne, director of Wolf & Co.’s financial institutions group, reads the nominations that were submitted for the New Leaders at the Awards Gala.
Winter 2018 New Jersey Banker
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Sonia Amorim understand them and their lives so that I can better serve them. You become family with the clients at a community bank. You cry with them for their losses and you rejoice with them when they experience milestones, weddings, births, etc. I stay for the people. I have met many great people throughout my career and some have become friends.
What do you consider your biggest success?
Age: 37 Title: First Vice President/ District Manager Bank: Valley National Bank Bank location: Wayne, New Jersey Town of residence: Westfield, New Jersey
My biggest success I would have to say when I started my career at Valley. I was 24, young, full of energy and not much experience at this point in my career. I was offered a very challenging position to open and manage a DeNovo branch in Bound Brook, New Jersey. I had never been to Somerset County and knew very little about Bound Brook. I was worried, scared, and excited all at the same time. I accepted the job. That DeNovo Branch was and still is one of the bank’s more successful branches.
How did you come to community banking, and why do you stay?
If you weren’t a community banker, what would you be doing?
I started in a small town local bank in Newark during high school. After college I worked for one of the bigger banks but missed the family feel, that is when I applied to Valley National Bank. I started with them in 2004 and never looked back. Community banking is like small town banking, where you really get to focus on your clients. As branch sales manager, I was able to really uncover and help my clients with their needs. I get to really
If I was not a banker I would be doing nonprofit work. I would work with individuals to enhance their understanding of the financial world. I recently had the opportunity to start a financial literacy class for woman of domestic violence. It was eye opening and amazing what little these woman knew. Teaching, encouraging, and empowering them to take control of a simple thing as a credit report was very rewarding. There is so much need in this area.
Frank Di Dolci with so many great leaders, coaches and mentors who recognized my potential and helped guide me on a path to advancement. The reason I stay is simple, I love what I do. I enjoy being actively involved in the local communities I serve while assisting customers and prospects achieve their business and financial objectives. I have worked for many banks in the past and I can say, Unity Bank is a true “community” bank. Unity Bank is a strong community partner who encourages and fully supports all of my community involvement.
What do you consider your biggest success? Age: 35 Title: AVP/Relationship Manager Bank: Unity Bank Bank location: Emerson, New Jersey Town of residence: Hillsdale, New Jersey
My biggest success would be onboarding the third largest business relationship with Unity Bank. This is by far the largest relationship I have ever been responsible for managing and I learned many things throughout this process. It is important to note that executive management, the Emerson team, and many back-office employees were involved and assisted me with the entire process.
How did you come to community banking, and why do you stay?
If you weren’t a community banker, what would you be doing?
My community banking career began in 1999 at the age of 17 with Commerce Bank. I started as a part-time teller and quickly realized that this could be a potential life-long career opportunity for me. I was very fortunate at a young age to have worked closely
Honestly, I have never thought of changing industries or my career. I look forward for future growth opportunities in community banking as my career goal is to ultimately be in a corporate level position.
28 New Jersey Banker
Winter 2018
Congratulations Sonia Amorim and the 2017 New Leaders in Banking for their well-deserved recognition. We wish you many years of continued success.
Dianne Grenz, John Siberio and all of your friends at Valley National Bank
® 800-522-4100 • valleynationalbank.com © 2017 Valley National Bank®. Member FDIC. Equal Opportunity Lender. Equal Opportunity Employer. All Rights Reserved.
Winter 2018 New Jersey Banker
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Desirae Dodd coming from a background of medical insurance and call center management, it was a complete change. I sparked an interest in the BSA department and started developing my personal career path in anti-money laundering and fraud. I love the challenge of always thinking ahead of the criminal.
What do you consider your biggest success?
Age: 36 Title: CDD/EDD/QC Supervisor Bank: Sun National Bank Bank location: Vineland, New Jersey Town of residence: Elmer, New Jersey
Personally, my biggest success is being a devoted mother and wife. Professionally, the implementation of an enhanced due diligence program (EDD) where none had existed. The program earned compliments from both internal audit and the regulatory examiners. My development and management of the EDD process showed my capabilities to my manager who recognized my potential with future projects of expanding our customer (KYC) including customer due diligence/beneficial ownership project and managing quality control of BSA. However, the most important is my leadership abilities in developing leaders and challenging their skills, while continuing to coach and mentor.
How did you come to community banking, and why do you stay?
If you weren’t a community banker, what would you be doing?
In 2007, I married my husband and wanted to start a new beginning in my career path. I found an opportunity as a personal banker in the branch network learning about the banking industry,
As a child I always wanted to be a mortician (just the dress-up and make-up), that changed as I got older. As I matured, I desired to be a lawyer or working as a private investigator
Congratulations to Desirae Dodd and all of the 2017 New Leaders in Banking! Thank you for your leadership, expertise, and commitment to providing the highest quality of banking for our customers and community. Desirae Dodd, CAFP CDD/EDD/QC Supervisor
Š 2017 Sun National Bank. All rights reserved.
30 New Jersey Banker
800.SUN.9066 sunnationalbank.com
Winter 2018
Congratulations
to First Bank’s J. MICHAEL FISCHER, JR. Vice President and Relationship Manager – and to all the 2017 New Leaders in Banking honorees. First Bank is proud to have one of its valued employees receive this prestigious honor!
TRUE COMMUNITY. First Bank is one of the fastest growing community banks in the nation. Our old-fashioned recipe of ethics, integrity, and customer service still works – for individuals, for families, and for businesses.
Get a taste of hometown banking. 14 locations throughout New Jersey and Eastern Pennsylvania
877.821.BANK • firstbanknj.com Winter 2018 New Jersey Banker
31
J. Michael Fischer Jr. management trainee, commercial credit analyst, junior lender and finally a lender. My parents always encouraged me from a young age to be an outgoing and helpful person. As a community banker, I can truly help people grow their respective businesses. It is a very rewarding career that never gets boring because you see and learn something new every day.
What do you consider your biggest success? Age: 35 Title: Vice President/Relationship Manager Bank: First Bank Bank location: Denville, New Jersey Town of residence: Somerset, New Jersey How did you come to community banking, and why do you stay? After graduating high school in 2000 I attended Saint Joseph’s University in Philadelphia to study food marketing. After a year in school I decided to leave to pursue a career in music with the rock band that I had been a part of since 1997. I worked hard at this for the next few years and after recording what would have been our debut record we decided to disband. At that time, I went back to school and started working as a teller at a local bank. In about six months I quickly moved up to a customer service representative. I continued to work my way up at the bank as a
I think my biggest success has culminated in the past few years in meeting my fiancé Melissa. I started working for a community bank a few months before my father passed away very suddenly in 2009. After losing my Dad I wanted to work to be the best person that I could be for my family. I worked six days a week while going to school full-time at night and online. Not only did I quickly move up in my organization but I also graduated college with honors. All of the hard work and dedication has given me a great career. In the past few years I have found a great home in First Bank and now I am marrying my best friend. Having an accomplished career and a great family life is the epitome of success to me.
If you weren’t a community banker, what would you be doing? If I wasn’t a community banker I would probably be working as a personal development coach. Hiring a life coach personally changed my life. Helping people to become the best version of themselves would be a very rewarding career.
Nicole Linardos
Age: 33 Title: Assistant Vice President/Marketing
Supervisor Bank: Boiling Springs Savings Bank Bank location: Rutherford, New Jersey Town of residence: Rutherford, New Jersey
How did you come to community banking, and why do you stay? I began my career in community banking shortly after graduating from Seton Hall University’s Stillman School of Business with a Bachelor of Science in business
32 New Jersey Banker
administration, with a concentration in marketing and a minor in psychology. I had just moved to the Northern New Jersey area and Boiling Springs Savings Bank held a reputation for being a community-builder, especially known for its community alliance program. The program – which helps local nonprofits earn donation dollars based on the number of supporters that bank at Boiling Springs – was fairly new at the time and was already impacting so many local organizations. I wanted to work for an organization that not only cares deeply for its employees, but the communities that it encompasses as I planned to and ultimately did establish my roots in the Bergen County area. I stay in community banking for the very same reason – being able to not only work for a well-founded company, but being able to work for a company that sees the true value in actively supporting organizations that enhance the quality of life in the areas
that Boiling Springs serves.
What do you consider your biggest success? As the saying goes, “If you love what you are doing, you will be successful.” My greatest success in my professional life was to begin my career in banking as a teller, bypass the platform, become an assistant branch manager of a new location and work my way into a position that I am passionate about. In the marketing department, each day brings a new journey and experience. Whether it’s taking a product concept and following it through to a full advertising campaign or adding an innovative service for our customers to indulge in, I know that this is what I was meant to do. In my personal life, it’s being married to my wonderful husband, Steve, for almost 12 years and raising our two amazing children, Lucas and Lia, together. continued on page 39
Winter 2018
Congratulations
Nicole Linardos, our New Leader in Banking
“We mean what we say about being community bankers, and see true value in actively supporting organizations that enhance the quality of life in communities we serve.”
…
17 Offices in Bergen, Essex, Passaic and Morris Counties.
201-939-5000 • www.bssbank.com
Winter 2018 New Jersey Banker 33 FDIC MEMBER
Jeffrey Martinez
Age: 34 Title: Senior Vice President, Market Manager Bank: PNC Bank Bank location: Two Tower Center, East
Brunswick, New Jersey Town of residence: West New York, New Jersey
How did you come to community banking, and why do you stay? I started my career as a part-time teller while attending Rutgers University and quickly grew into bigger roles. I had the opportunity to be a relationship banker, assistant branch manager, branch manager in multiple locations, and district manager in Northern New Jersey and New York City before transitioning over
to PNC Bank in March 2014 after 11 years at JPMorgan Chase. I began my PNC career as a regional manager in Northern New Jersey, managing an average of 19 branches. Earlier this year, I had the opportunity to assume responsibility for managing PNC’s Central New Jersey Market, which is comprised of roughly 150 branches and almost 1,000 employees. My reason for staying aligns with my passion to help people. In banking you have the opportunity to help individual clients, impact the communities you serve and improve the lives of the employees that work with you. Specific to our clients and communities, as bankers we are involved in some of the biggest life decisions they will make. Helping them achieve these goals is at the heart of everything I do. Being part of the journey to home ownership, retirement, saving for a wedding or even opening your first bank account is truly amazing and inspiring. Equally as important is the impact we make in the lives of our employees. It’s an amazing feeling to coach and develop talented individuals, preparing them to take on additional responsibilities or even new
roles. I am in a people business and I take that honor and privilege very seriously and treat it with the utmost respect. If you ask anyone who knows me, they will say Jeff is “changing lives” and that’s what keeps me in this business.
person as well. Through my evolving role at Mariner’s Bank, I’ve had the opportunity to work with a supportive team and a vast assortment of vendors, but have most importantly become involved with our surrounding communities by supporting events, organizations and local nonprofits.
ease-of- navigation and the implementation of SEO and reporting structures. This created a threshold of corporate standards which led to the modification and improvement of all corporate collaterals and signage emphasizing our brand. Putting forth these efforts catapulted my role at Mariner’s Bank, leading me to earn officership by the age of 25, which I consider my biggest success.
What do you consider your biggest success? I believe my biggest success has been my military service in the United States Army National Guard. I had the opportunity to be deployed to Iraq for two year-long tours in 2004-05 and 2008-09. What made this my biggest success was it taught me how to manage stress, live and coach through motivation and inspiration, juggle priorities, appreciate what I have and value life. My experiences in the Army arrived between my education and my career in banking. I was able to take everything I’ve learned and apply it to each respectively which, in turn, I believe has made me a better leader. During my two tours, I received three Army Commendation medals as well as the New Jersey Distinguished Service medal which I continued on page 39
Alexa Monte
Age: 25 Title: Assistant Treasurer, Marketing Manager Bank: Mariner’s Bank Bank location: Edgewater, New Jersey Town of residence: Edgewater, New Jersey How did you come to community banking, and why do you stay? I began my career in digital advertising and did not like the lack of personal interface. When applying for a marketing coordinator’s position in community banking, I felt I’d have the opportunity to interface with customers not only online through the web and social channels, but in
34 New Jersey Banker
What do you consider your biggest success? There were two accomplishments which I believe led to my biggest success. First, I was able to create greater efficiencies in capturing market data and tracking promotional programs. This helped the bank gain a better perspective on their ROI, and enabled us as an institution to market plan with more transparency and the ability to predict, set and fulfill practical expectations. Secondly, I spearheaded our rebranding efforts through a major website redevelopment, where I worked closely with developers to rebuild our site to meet aesthetic and functional demands such as
If you weren’t a community banker, what would you be doing? If I weren’t a community banker, I’d enjoy working in the community development sector of a nonprofit organization, engaging with both users and donors. During my time at Mariner’s Bank, I’ve been exposed to numerous organizations backing a variety of causes, but all of which have one common denominator: acting as a support system to the local community. Whether it continued on page 39
Winter 2018
you’ve inspired us all. PNC salutes all the New Leaders in Banking honored tonight, most especially our own Jeff Martinez. pnc.com
Š2017 The PNC Financial Services Group, Inc. All rights reserved. PNC Bank, National Association. Member FDIC
Daniel Pimentel Bank has allowed me, and continues to allow me to grow and seek new professional opportunities. Their willingness to train and grow their employees from within the company is something that I admire and look forward to the next opportunity.
What do you consider your biggest success? I would say my biggest success was working a full-time job while completing my college education. Then, continuing to work two jobs for over 10 years in order to buy my own house. My other biggest success is the one that is nearest and dearest to my heart – helping my younger sister graduate high school was a truly special moment.
If you weren’t a community banker, what would you be doing? Age: 29 Title: Assistant Vice President, Commercial Credit Analyst Bank: First Hope Bank Bank location: Hope, New Jersey Town of residence: Jefferson, New Jersey
I would like to think I would be the starting shortstop for the New York Yankees, but I think that position is taken. I would have probably opened a bar/restaurant with my brother.
How did you come to community banking, and why do you stay? I began my career in community banking as a part-time teller after college. The bank’s commitment to the community and its employees was immediately evident after being hired. First Hope
Congratulations
Daniel Pimentel and to all of the 2017 New Jersey New Leaders in Banking honorees!
Daniel Pimentel
Assistant Vice President Commercial Credit Analyst
908.459.4121 • www.FirstHope.com • 973.729.8333 Hope • Blairstown • Great Meadows • Hackettstown • Sparta • Andover 36 New Jersey Banker
Winter 2018
Jacqueline Reyes
Age: 38 Title: Vice President and BSA/AML/OFAC Officer Bank: Peapack-Gladstone Bank Bank location: Bedminster, New Jersey
How did you come to community banking, and why do you stay? I started as a part-time teller for Summit Bank. I enjoyed constantly learning new skills and facing different challenges that working for a financial institution gradually became my career. I have held positions throughout
New Jersey financial institutions over the past 13 years, rising from a customer service representative, operations manager and compliance specialist, to an assistant Bank Secrecy Act (BSA) and anti-money laundering (AML) officer, and on to my current role as vice president and the bank’s BSA/AML and Office of Foreign Asset Control (OFAC) officer. I have built a strong connection with my team, and I am in a role that enhances my strengths and allows me to have a positive impact on the organization. I appreciate the people I work with, and I enjoy my job.
What do you consider your biggest success? Although I have contributed to accomplishing numerous enhancements to financial institutions in different roles over the years, the most successful and meaningful project was the overhaul and roll-out of an entirely new Know Your Customer (KYC) program in April 2016 at my current institution. The new KYC program
included revamping requirements for all business lines, and included the new FinCEN Customer Due Diligence Certification of Beneficial Ownership, which does not become mandatory until May 2018. Additionally, I formed a Branch Compliance Coordinator (BCC) team which consists of members from each branch. The compliance department trains the BCC team on any regulatory changes, updates or hot topics. The BCC team is responsible for conveying everything discussed to their branches, training them and forwarding training logs to the compliance department.
If you weren’t a community banker, what would you be doing? If I were not a community banker, I would have chosen a career in a federal law enforcement division. I find white collar crimes interesting and would have spent my career pursuing research and investigating crimes.
Peapack-Gladstone Bank congratulates its very own
Jacqueline Reyes
and all 2017 New Leaders in Banking on their outstanding achievement. Jacqueline Reyes, CAMS, Vice President, and BSA/AML/OFAC Officer
Winter 2018 New Jersey Banker
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Sara A. Santos
Age: 28 Title: Real Estate Facilities Coordinator Bank: Investors Bank Bank location: Short Hills, New Jersey Town of residence: Short Hills, New Jersey How did you come to community banking, and why do you stay? I was a freshman in college at Kean University and realized quickly that I needed a job. My sister was working for the bank and
heard there was an opening for a part time position as a clerk/receptionist and I had an interview that same day. I learned so much in such a short time about how the back office of a bank worked and it intrigued me. I have always liked learning new things and enjoyed that part of this job the most. Completing a post-graduate degree in psychology, I was offered the role of real estate facilities coordinator at Investors Bank and immediately began executing on the bank’s organic growth initiatives. The rush of finding the best locations, negotiating and then seeing the building and the employees happy to be in their new facility is rewarding. I also love the people that I get to work with every day. I love the sense of community. They make coming to work every day easy!
my manager decided to give me the opportunity to learn and to make it my own. With his guidance and encouragement, I have developed an insight that I am very thankful for and a skillset that is developing more and more each year. Being directly involved in the negotiations and openings of 32 new branch locations since taking on the role, including the relevant market studies / due diligence involved with each, has been an exciting challenge. Knowing that I am a part of and a significant contributor to Investors Bank’s industry-leading growth since 2013 is a great feeling. I hope to continue to contribute to this growth story as the largest bank headquartered in NJ gets even larger.
What do you consider your biggest success?
If I weren’t a community banker, I would likely be an elementary school teacher. I love being around kids and enjoy seeing them get excited about learning.
My biggest success in my career is taking on the role of real estate facilities coordinator. I had no experience in this area but thankfully,
If you weren’t a community banker, what would you be doing?
Congratulations to our very own for being honored as a New Leader in Banking.
Sara Almeida Santos Real Estate Facilities Coordinator
Banking in your best interest. 855-iBank4U • myinvestorsbank.com
38 New Jersey Banker
Winter 2018
Nicole Linardos continued from page 32 If you weren’t a community banker, what would you be doing? Definitely a creative director at an ad agency. I have developed advertising experience over the years and it would be interesting
Jeffrey Martinez
continued from page 34
to apply what I’ve learned in a position where I would be able to formulate ideas and create visions for a variety of industries. Fortunately, I’m already in my dream job, where I not only get to partake in the role as a creative director, but as a volunteer, a web developer and an event planner to name a few.
I would be an Anthony Bourdain kind of reporter/adventurer. I am an extreme foodie with a passion for travel. My wife and I have traveled to over 40 countries and a big part of the decision of where to visit is the
food. From local street food to some of the world’s top Michelin rated restaurants. There are very few things I wouldn’t try and I appreciate the connection to the culture and country. I feel through food you can get a deep appreciation of a country’s heritage and story. It connects me to that story. Today, as I connect to people day to day, either at work or socially, I feel once you have visited their homeland and eaten their food it is an immediate sign of respect and appreciation. This allows me to make intentional connections and fosters great conversations. So, ship me out to wherever and I will make an adventure out of it.
Alexa Monte
Edward Galan
am extremely proud of. So why is this my biggest success? Because in the toughest time in my life I found ways to overcome and thrive and I use that same drive and passion to help those around me today.
If you weren’t a community banker, what would you be doing?
continued from page 34
be supporting children by giving them a safe place to go after school, providing empowerment and professional assistance to women who have endured unfortunate circumstances, or access to the appropriate means and resources needed to obtain proper medical care, these many wonderful organizations work to provide the foundation and assistance that is desperately needed, often much more than even recognized, in our own backyards.
Title: SVP/Team Leader – Business Banking Bank: The Provident Bank Galan was unable to attend the Gala and ceremony.
The Warren Group would like to congratulate all of the New Leaders in Banking
Winter 2018 New Jersey Banker
39
Heather Schick What do you consider your biggest success? To date, I would saying passing the Accredited ACH Professional (AAP) exam last September has been my biggest professional success.
If you weren’t a community banker, what would you be doing? Prior to banking I had considered becoming an English teacher but I honestly can’t imagine doing anything else.
Age: 38 Title: Vice President Product Support Specialist, AAP Bank: Manasquan Bank Bank location: Wall Township Town of residence: Brick, New Jersey How did you come to community banking, and why do you stay? I began my career in banking right out of high school for a community bank. I was there for almost 10 years and decided to move on. A former colleague let me know that Manasquan Bank was hiring and I’ve been here for over a decade. I stay because I love what I do, where I do it and who I do it with!
Kayde Shabrack our customers service beyond what they expect. Additionally, I am a firm believer in Atlantic Stewardship Bank’s tithing mission. The Biblical principal of tithing, meaning to give back 10 percent of its profits annually, is incorporated into its by-laws. ASB helps the community in many ways and I am privileged to be a part of it.
What do you consider your biggest success? Age: 31 Title: Supervisor of Customer Service/Assistant Secretary Bank: Atlantic Stewardship Bank Bank location: Midland Park, New Jersey Town of residence: Waldwick, New Jersey How did you come to community banking, and why do you stay? I came to ASB to work as a teller throughout college and then when I graduated, I planned to find a position as an elementary school teacher. Although I’ve been at ASB for more than 12 years, I believe things happen for a reason and my position has evolved into something I enjoy. There is always something new to challenge me. Also, I love the people I work with. We make a great team and offer
40 New Jersey Banker
In my role at ASB, I assist in launching electronic solutions by working with vendors, associates and supporting our customers. I participated in the release of things like mobile deposit, Popmoney and the Apple Watch App. Currently, we are working on introducing new technology like cash recyclers and ITM’s to our branch locations, which is even more exciting.
If you weren’t a community banker, what would you be doing? I always thought of myself as an educator so if I never ended up in community banking, I would have pursued a career as an elementary school teacher as I have a passion for mentoring and teaching people.
Winter 2018
Winter 2018 New Jersey Banker
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Shelaugh Smith the area but decided to take the position at Crest. I liked the idea of working for and with the community that I lived in rather than a big corporate bank. Eleven years later I have no regrets; I definitely made the right choice. Crest has given me so many opportunities and I am lucky to work with such a passionate team.
What do you consider your biggest success? Professionally I would have to say my promotion to assistant vice president of operations in July 2016. This promotion came after a successful core conversion. I worked with the conversion team for months prior to make sure it was a smooth transition for our employees and most importantly our customers. Through all my professional successes I have managed to keep the balance of work and family. There is no bigger success than having an amazing family!
Age: 34 Title: AVP Operations, Officer Bank: Crest Savings Bank Bank location: Wildwood, New Jersey Town of residence: Seaville, New Jersey How did you come to community banking, and why do you stay? After graduating college I knew that I wanted to live at the shore. I worked my summer job and when fall came I started to look for a “real job.” I had a finance degree so I applied to many banks and investment firms. I was offered a few positions at institutions in
If you weren’t a community banker, what would you be doing? Interior design.
Crest Savings Bank’s Directors, Officers and Staff would like to extend Congratulations to our very own
Shelaugh Smith and all the 2017 New Jersey Leaders in Banking Honorees!
Shelaugh Smith Assistant Vice President, Operations Officer
42 New Jersey Banker
Big Bank Products • Community Bank Service 609.522.5115 • crestsavings.com
Winter 2018
Congratulations to Kayde Shabrack The Bank that Tithes!
Assistant Secretary/Supervisor Electronic Customer Service Support
ASBnow.com 201.444.7100 Locations in Bergen, Morris and Passaic Counties.
on being named one of the
2017 BankHorizons New Leaders
Keith Suchodolski
Age: 38 Title: Senior Vice President and Controller Bank: Kearny Bank Bank location: Fairfield, New Jersey Town of residence: West Orange, New Jersey How did you come to community banking, and why do you stay? Community banking, as well as accounting, was something that I fell into. I graduated college with a degree in business administration and information technology shortly after the dot com bubble had burst and the resulting recession led to significant layoffs in the IT space. To bridge the gap while I was searching for an entry level IT position I took a temp job as the receptionist at the headquarters of a local community bank. Soon after they approached me and asked if I had an interest in staying on as a full-time CSR. I
accepted, and was scheduled to start the following Monday, when I received a call from human resources telling me that there was an opening in the accounting department that might be more relevant to my background. While I didn’t have any experience in accounting I figured it was worth a shot, and the rest is history. I’ve stayed in community banking because I find the focus that we, as an organization and as an industry, have on our customers, our communities and our employees to be both personally and professionally rewarding in a way that my peers in other industries don’t seem to experience.
What do you consider your biggest success? I consider my biggest success to be the job that I’ve done leading and mentoring the people that I work with. I have been fortunate to work with some outstanding people, a number of whom have gone on to become corporate leaders in their own right. I take a lot of pride in the role that I played in helping them achieve success.
If you weren’t a community banker, what would you be doing? If I weren’t a community banker I would probably be working in law enforcement. I have a tremendous amount of respect for what our law enforcement agencies and personnel do and I think I would have enjoyed the opportunity to help others that career affords.
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44 New Jersey Banker
Winter 2018
Making Us Proud!
Keith Suchodolski
Senior Vice President/Controller
Congratulations, Keith, on being named “A New Leader in Banking” from everyone at Kearny Bank. Your contributions are vital to our success, for today and for tomorrow.
1-800-273-3406 • 42 Banking Offices
Winter 2018 New Jersey Banker kearnybank.com
45
Shots
BOILING SPRINGS SAVINGS BANK achieved a major charitable milestone with its Community Alliance Program. Offering customers cost-free ways to support their favorite local nonprofits, the program surpassed the $3-million mark in terms of overall donations. Boiling Springs Savings Bank’s Community Alliance Program currently involves more than 425 nonprofit organizations including schools, libraries, animal shelters and other civic-minded recreational and entertainment organizations. To help nonprofits accrue supporting accounts, the bank supplies marketing materials such as flyers, website copy, social media shares and e-newsletter generation. Boiling Springs also hosts on-site sign-ups on a regular basis.
A team of MAGYAR BANK employees volunteered to help build a home for the Raritan Valley Habitat for Humanity. The build was part of Magic 98.3’s “House Built with Magic,” a program put together to help build a home for a family in Franklin Township, New Jersey. Magyar Bank employees spent the day building the frame for a shed which will be included on the property. In addition to employees volunteering their time, Magyar Bank made a $1500 donation to Raritan Valley Habitat for Humanity to help them purchase supplies and materials for the project. From left to right: Rajesh Bhuta, senior loan closing representative; Corrine Pisano, senior loan administration specialist; John Reissner, vice president, marketing director and investor relations officer and Peter Brown, vice president of commercial lending. This volunteer crew of COLUMBIA BANK employees recently teamed up with the Boys & Girls Club of Paterson/Passaic to help out with its summer programs. Shown at the club’s Paterson facilities are Team Columbia participants who provided more than 120 hours of community service to the organization, assisting club counselors in the library, game room, technology room and teen center. The club serves about 1,000 kids per day from both towns.
NVE BANK served as a sponsor of the 2017 Bergen Passaic Heart Walk at the Express-Scripts Campus in Franklin Lakes, New Jersey. Over 35 employees of the Englewood based community Mutual bank participated in the walk, which serves as a signature fundraising event of the American Heart Association. In addition, NVE Bank donated $5,000 to the American Heart Association, supporting its efforts to reduce death and disability from cardiovascular diseases and stroke.
46 New Jersey Banker
PROVIDENT BANK received the Corporate Excellence Award from the Puerto Rican Association for Human Development (PRAHD) at the organization’s 31st Annual Roberto Clemente Gala. Accepting the award on behalf of Provident Bank was Tom Lyons, executive vice president and CFO. Provident Bank and The Provident Bank Foundation have been long-time supporters of PRAHD and have provided grants and financial support to several of PRAHD’s programs. Provident Bank employees have volunteered their time to serve on PRAHD’s board of directors, Roberto Clemente Gala Committee and at PRAHD facilities. Pictured (left to right) are: Tom Lyons, EVP/CFO, Provident Bank; Yvonne Lopez, executive director/CEO, PRAHD; Jane Kurek, executive director, The Provident Bank Foundation; Jason Conway, vice president and market manager, Provident Bank.
Winter 2018
Notes Rahbar Ameri
Tony Rose
Greg White
Rich Johnston
ATLANTIC STEWARDSHIP BANK
NJBANKERS
Paul Van Ostenbridge, president and CEO of Atlantic Stewardship Bank, announced the appointment of Rahbar Ameri to senior vice president and Small Business Administration (SBA) director. Ameri will manage ASB’s new SBA Department, a value-added lending solution for small businesses that do not meet traditional lending requirements.
NJBankers announced that Greg White, Wells Fargo’s Northern New Jersey community banking region bank president, has joined the NJBankers board of directors. He replaces Fred Bertoldo, who now services the New York market for the bank. White is a 21-year industry veteran with extensive banking experience across multiple complex and diverse geographies. He previously served as Wells Fargo’s regional president responsible for retail banking in Greater Pennsylvania.
COLUMBIA BANK Thomas J. Kemly, president and CEO of Columbia Bank, announced that Tony Rose has been appointed first senior vice president and marketing director. In his new position, he continues to manage the bank’s marketing department including all branding and advertising solutions, research, public relations, special events and digital/ social media. He also oversees the bank’s Community Reinvestment Act (CRA) department.
PEAPACK-GLADSTONE BANK Peapack-Gladstone Bank announced a new member of the team of private bankers of Peapack Capital, a subsidiary of the bank, which focuses on equipment finance and leasing. Rich Johnston, senior vice president of capital markets at Peapack Capital, is now responsible for indirect originations of leasing and asset finance transactions from
ROSELLE SAVINGS BANK participated in Point Pleasant Beach’s Making Strides Against Breast Cancer walk sponsored by the American Cancer Society. Together, the Roselle Savings Bank team raised $4,522, which ranks fifth out of the 37 companies that participated. Team Roselle Savings Bank participants in the Making Strides Against Breast Cancer event in Point Pleasant Beach from front to back: Sheri Stover, Debra Post, Heather Howell, Ginger Howell, Janice Ritz, Bill Stover, Donald Howell. Photo by Ken Ritz.
David Meyer
Yvonne M. Surowiec
bank lessors, independent lessors, finance companies and intermediaries, in addition to all out-bound syndications.
PROVIDENT BANK David Meyer has joined Provident Bank as vice president and relationship manager with the bank’s middle market lending team. He will be based in the bank’s Paramus office and will be responsible for originating commercial loans and managing relationship with middle market companies in the Northern New Jersey/New York Metro market.
VALLEY NATIONAL BANK Valley National Bank announced the appointment of Yvonne M. Surowiec to executive vice president and chief human resources officer. Surowiec, who has more than 30 years of experience, will lead all human resources functions at the bank.
VALLEY NATIONAL BANK hosted its ninth annual breast cancer walk, titled “Valley Goes Pink!” The event is designed as an inspirational and impactful opportunity to raise money and awareness to support the Cure Breast Cancer Foundation (CBCF) and its mission to find a cure. Over 1,000 Valley associates, family members, friends and neighbors gathered for this year’s event. All proceeds raised are used for research and conferences at Memorial Sloan-Kettering Cancer Center and other national and international research facilities under the direction of Dr. Larry Norton, M.D, who serves as the foundation’s scientific advisor.
Winter 2018 New Jersey Banker
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