New JerseyJ Banker Spring 2012

NEW

JERSEY

S P RIN G 2 0 1 2

B A N K E R

PARTNERSHIP FOR ACTION BRINGING AND RETAINING BUSINESS IN THE GARDEN STATE

108th Annual Conference | Hidden Resources for Members | Economic Forum ENDORSED BY THE NEW JERSEY BANKERS ASSOCIATION

NEW

JERSEY B A N K E R

NJBankers Board of Directors Robert C. Ahrens President/Chief Executive Officer GCF Bank

Peter A. Dontas Market Executive Bank of America

Peter M. Brown President/Chief Executive Officer Manasquan Savings Bank

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

Walter Celuch President/Chief Executive Officer Clifton Savings Bank

David J. Hemple President/Chief Executive Officer Century Savings Bank

Joseph Coccaro President/Chief Executive Officer Bogota Savings Bank

Stanley J. Koreyva, Jr. Chief Operating Officer/ Executive Vice President Amboy Bank

Joseph F. Dempsey, Jr. President – NJ Middle Market Banking JPMorgan Chase Bank, N.A.

Emily T. DeMasi Vice President and Director of Communications ext. 610 edemasi@njbankers.com Wendy C. Mandelbaum Controller ext. 603 wmandelbaum@njbankers.com Jenn Zorn Vice President, Director of Education and Business Development ext. 611 jzorn@njbankers.com Claire Anello Office Manager, Database and Website Manager ext. 631 canello@njbankers.com

Contributing Editor Emily T. DeMasi

Christopher Martin Chairman/President/Chief Executive Officer The Provident Bank Stewart E. McClure, Jr. President/Chief Executive Officer Somerset Hills Bank

Mortimer J. O’Shea President/Chief Executive Officer Hilltop Community Bank Gerald L. Reeves President/Chief Executive Officer Sturdy Savings Bank Michael Schutzer President/Chief Executive Officer Harmony Bank Robert E. Stillwell President/Chief Executive Officer Boiling Springs Savings Bank

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

NJBankers Officers

John E. McWeeney, Jr. President and Chief Executive Officer ext. 627 jmcweeney@njbankers.com

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

Gerald H. Lipkin Chairman/President/Chief Executive Officer Valley National Bank

Anthony Labozzetta President/Chief Executive Officer SussexBank

NJBankers Staff

James M. Meredith Executive Vice President and Chief Operating Officer ext. 614 jmeredith@njbankers.com

Margaret Lanning Senior Vice President, Senior Regional Credit Officer-Northeast Region Wells Fargo Bank, NA

Cris Goncalves Manager of Education ext. 630 cgoncalves@njbankers.com Candida Johnson Assistant Vice President/ Assistant to the COO ext. 615 cjohnson@njbankers.com Lauren Barraza Executive Assistant ext. 618 lbarraza@njbankers.com Paula H. Cassidy Assistant to the Director of Communications ext. 604 pcassidy@njbankers.com Cynthia M. Zaccaro Assistant to the Director of Education and Business Development ext. 632 czaccaro@njbankers.com

Frank A. Kissel Chairman Chairman/Chief Executive Officer Peapack-Gladstone Bank

Robert H. King Second Vice Chairman Senior Vice President Roma Bank

Kevin Cummings First Vice Chairman President/Chief Executive Officer Investors Bank

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

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

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

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

Erin Suckiel Administrative Assistant/ Receptionist ext. 600 esuckiel@njbankers.com

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

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

Spring 2012 New Jersey Banker

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Table of Contents

NEW

JERSEY B A N K E R

Departments

28-31 Cover Story: Partnership For Action

6 Chairman’s Platform NJBankers Provides Resources for Member Success 8

Bringing and Retaining Business in the Garden State

From the President's Office With New Jersey Banks, New Jersey Really Does Prosper

28

10 Politics & Policy

Free Speech: It’s Not for Everyone

32 Bank Notes

Letter from the Lieutenant Governor

29 Choose New Jersey Lets the World Know New Jersey Means Business 30

35 Bank Shots 38 New Members and Associate Members

New Jersey’s ‘Bank for Business’ Enhances Partnerships to Support Business Growth

31 New Jersey’s One-Stop Shop for Business

38 Upcoming Events

Features

12 Directors' Corner How Am I Doing?

14 Behind the Teller Line Ocean City Home Bank 16

4

Feature Some ‘Hidden’ NJBankers Resources

New Jersey Banker

18

Feature The Hospital that New Jersey Banks Built

24

Feature Bank of America: Supporting New Jersey Communities

20

Feature Garden State Bankers Bloom With (Cautious) Optimism

26 Feature Annual Conference Sets Sights on Charleston

23

Meet Our Endorsed Service Provider Senior Housing Crime Prevention Foundation

34 Feature Bank Chairman’s ‘Musings’ Released in Book

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Chairman’s Platform

NJBankers Provides Resources for Member Success

By Frank A. Kissel

W

elcome to the spring issue of New Jersey Banker. I think that you will find this issue somewhat different from previous issues.

Rather than articles that address specific banking topics like compliance, risk or marketing, this issue shares resources that can help you, your business and your customers succeed.

The New Frank A. Kissel Jersey Partnership Chairman for Action is NJBankers Chairman/CEO made up of three Peapack-Gladstone Bank interconnected, and highly focused, organizations: Choose New Jersey, The Business Action Center and the NJ Economic Development Authority.

NJBankers approached the partnership for articles about their dedication to attracting new business and helping existing businesses thrive by focusing on relationship-building and person-toperson outreach, promoting the state’s incentives and resources, developing pro-

Guadagno for taking the time to share her enthusiasm for the partnership. I hope you find the information in the article interesting and you begin to use these valuable resources.

NJBankers is also providing information on member resources available at the association. As Jim Meredith explains in “Some Hidden NJBankers Resources” (page 16), one resource that members may not be familiar with is the Career Center on the NJBankers website. The Career Center is a valuable resource for members and associate members who are seeking to fill positions for qualified, professional candidates.

Employers will find that the site employs a user-friendly system to facilitate job postings.

Another hidden resource is the NJBankers’ Statistical Report Analysis publication, which provides a detailed analysis of members’ fundamental performance relative to similar-sized New Jersey institutions. It also includes detailed state economic data including unemployment trends, household income and other valuable metrics. Please contact Jim for additional information.

The theme of the NJBankers 108th Annual Conference, “Economic Renaissance 2012,” could not be more appropriate, since a renaissance is a time of great renewal and revival. growth policies, and assisting businesses in navigating state government and programs. The current administration is dedicated to making New Jersey a home for growth. I thank Lt. Gov. Kim

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New Jersey Banker

In his article, Jim also reminds members about the Regulatory Feedback Initiative, which includes an online, anonymous survey with questions designed to assess satisfaction levels with

exams and the examiner. The anonymous process and survey will help all of us to prepare for future exams.

We are fortunate to have Marty Coyne, president and CEO of the National Association of Corporate Directors New Jersey Chapter, write our Directors’ Corner column for this issue (page 12). In his article, he discusses evaluating a board’s performance. Marty has been kind enough to offer yet another resource – a prototype board and director evaluation based on best practices that he has observed. We thank Marty for providing this valuable resource at no cost to members.

Spring is a time for renewal and revival, and this year, a trip to Charleston, South Carolina for the NJBankers 108th Annual Conference. This year’s theme, “Economic Renaissance 2012,” could not be more appropriate, since a renaissance is a time of great renewal and revival. The conference will provide exceptional speakers who will present their understanding of where we are, where we want to be and address innovative opportunities for reaching our goals. I always find the Annual Conference a thought-provoking resource with tangible suggestions for assessing and advancing my bank. I believe that you will too. I look forward to seeing you there.

Finally, let me mention the NJBankers leadership and staff, who are always attentive resources for members. The association is committed to its mission of service to the New Jersey banking industry, because “with New Jersey banks, New Jersey prospers.” n Frank Kissel is chairman of the New Jersey Bankers Association and chairman and CEO of Peapack-Gladstone Bank, located in Bedminster. He can be reached at kissel@ pgbank.com.

Spring 2012

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From the President’s Office

With New Jersey Banks, New Jersey Really Does Prosper

By John E. McWeeney, Jr.

A

t NJBankers we like to say that “with New Jersey banks, New Jersey prospers.” You’ll see it printed underneath our logo in all of our publications.

As you read through this edition of New Jersey Banker, you’ll realize that these words are more than just a catchy phrase.

Throughout the magazine you’ll read about the real and tangible ways that New Jersey banks John E. McWeeney, Jr. are helping New President/CEO NJBankers Jersey consumers, businesses and communities work their way out of the economic challenges that we’ve faced over the past three years. Whether it’s by funding new health care facilities, supporting essential nonprofit organizations with charitable donations or volunteering countless hours of community service, New Jersey banks and their employees are making a difference in the lives of New Jersey citizens every day. We’re also partnering with the Christie administration to help promote their economic development initiatives and with the state legislature to draft and implement new legislation to address critical issues like foreclosure reform. While there’s still much more to be done, New Jersey banks can be proud of their contributions to New Jersey and its economic revival.

Speaking of the economy, the theme for the 108th Annual Conference of the New Jersey Bankers Association is “Economic Renaissance in 2012.” In the last edition of New Jersey Banker, I talked about being more optimistic and having the courage to invest in our future. We continue to see signs that give us hope that things are

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New Jersey Banker

getting better. The stock market enjoyed historically high increases in January, the unemployment rate inched down below 9 percent in February, things in Europe seem be settling down and the Giants even won the Super Bowl! Hopefully, the recent settlement of the five largest mortgage servicers with the Department of Justice and state attorneys general will help address some foreclosure issues and restore order to the mortgage markets. Likewise, recent legislation introduced in New Jersey to convert foreclosed properties into affordable housing units and also expedite the handling of abandoned properties may help stabilize New Jersey’s real estate market. None of these events on their own will solve our problems, but on an incremental basis, they will all help move us toward economic recovery.

2012 started off with a bang for NJBankers, as we hosted our first-ever New Jersey Economic Leadership Forum. Over 400 people attended this new program and had

the opportunity to hear keynote addresses from NY Fed President Bill Dudley, Dean Jim Hughes of the Bloustein School at Rutgers University, and popular Fox TV political analyst and author Juan Williams. In addition, breakout sessions were held on some of New Jersey’s key economic segments such as health care, real estate, energy and of course, financial services. In general, the mood was upbeat as Hughes commented that the outlook for New Jersey was better than it has been in recent years. We’re already making plans for next year’s forum, so keep an eye out for a save-the-date announcement soon.

In February we hosted our semi-annual meeting with regulators, known as our Committee on Examination and Supervision (COES). We had representatives from all of the regulators including, for the first time, the new Consumer Financial Protection Bureau. In addition to the members of our Executive Committee, who attended in person, we had over 90 bankers participate

Spring 2012

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via conference call. This meeting was also generally positive as the regulators noted continued improvement in the performance and financial condition of New Jersey banks.

Please plan on joining our next COES meeting, scheduled for June 13.

As we wrap up the first quarter and head into the second quarter, things really begin to heat up at NJBankers. A series of major events will take place, beginning with the Directors and Managing Officers Conference in March, our second Annual Women in Banking Conference and 24th Annual Lending Conference in April and our 108th Annual Conference in late May/early June in Charleston. Also, very importantly, NJBankers will be electing a new board of directors and slate of officers this spring to take office at the Annual Conference.

I would like to thank Lt. Gov. Kim Guadagno for her support of our cover story on the Partnership for Action and Tracye McDaniel, Caren Franzini and Linda Kellner for providing information for the article.

In closing, I’d like to publicly thank outgoing Commissioner of Banking and Insurance Tom Considine for his service to New Jersey and to the banking industry over these past two years. Considine was a dedicated public servant who struck an important balance between consumer protection and economic growth during his term. We wish him well in his return to the private sector and we congratulate Ken Kobylowski on being named by Gov. Christie as his successor. We look forward to working with the new commissioner as “New Jersey banks help New Jersey prosper.” n John E. McWeeney, Jr., is president and CEO of the New Jersey Bankers Association, and can be reached at jmcweeney@njbankers.com.

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Politics & Policy

Free Speech: It’s Not for Everyone

By Michael P. Affuso, Esq.

W

ith one election behind us and another on the near horizon, the campaign fundraising season begins. Organized labor solicits their legions of members, and the business community is divided by a myriad of complex regulations determining who may give, who may not, and even who can Michael P. Affuso solicit contribuSenior Vice President/ Director of Government Relations tions.

NJBankers The United States Supreme Court clearly equates the ability to give campaign contributions with sacrosanct political speech; the speech that

is equated the highest level of protection in our democracy.

In New Jersey, corporations may give directly to state candidates. They may not give to federal candidates. In New Jersey, banks and other “regulated entities” may not give to state candidates.

In fact, regulated entities may not solicit contributions. We may not commingle bank resources with any effort to raise state campaign money. We may not host a lunch paid by bank money for the purposes of discussing campaign contributions.

So what can we do?

We can educate – we must educate. We can discuss our previous successes and give a context to our efforts vis-à-vis our competitors. We can speak with a passion

that will justify a fervent hope that bankers will realize that political contributions to our political action committee are necessary, productive and imperative.

In 2010, according to the New Jersey Election Law Enforcement Commission, Jersey Bankers Pac (JEBPAC) was the top spender of all PACs that represent regulated entities in New Jersey, and that’s something to be proud of. But other nonregulated business groups spent five times as much; labor groups spent many times as much. So while we may be best in class, we are a long way from best in show.

ELEC noted that total business PAC spending increased from $1.47 million in 2009 to $1.95 million in 2010, while trade association PAC spending increased from $1.88 million in 2009 to $1.93 million in

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2010. Union spending dropped from $24.2 million to $17.1 million.

Four of the 25 largest-spending groups were affiliated with trade associations. The New Jersey Apartment Association spent $193,640, the ninth-highest amount in 2010; Constructors for Good Government spent $115,825; CAR PAC, $77,887; and Builders PAC, $72,235.

The Realtors PAC was the highestspending professional PAC, at $362,476 in 2010; followed by the NJ Dental PAC, at $162,397; and the NJ Funeral Directors PAC, at $136,443.

The NJ State Carpenters Non-Partisan Political Education Committee spent the most of any PAC in 2010, $476,385.

Unfortunately, what this translates to is the ability for other groups to get their message and their people in front of candidates significantly easier than us.

In context of our previous efforts, 2011 was a phenomenal year for JEBPAC. Our total receipts exceeded $183,000. This represented a 33 percent increase from our efforts in 2010, which was our best year to that point. Furthermore, since we began our efforts in 2009, receipts are up 50 percent.

We hope to exceed $200,000 in 2012.

The challenge today is the same challenge that we faced when we began together. We must educate our people and we must make them understand the political process. We must make them feel compelled to give, not out of guilt, not because we requested (because regulated industries cannot ask), but because the benefit and the need is so self-evident.

With a robust PAC, NJBankers can excel and attempt to level the playing field against those who have traditionally had the loudest political voices. We must embrace the challenge to educate our members. n Michael Affuso, Esq., is senior vice president and director of government relations for NJBankers. He can be reached via email at maffuso@njbankers.com.

Spring 2012 New Jersey Banker

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Directors’ Corner

How Am I Doing?

By Martin M. Coyne

E

d Koch, the former mayor of New York City, routinely asked people, “How am I doing?” He got direct and honest feedback that he acted upon to continuously improve. A robust process for gathering performance feedback then acting on the feedback is a characteristic of every successful Martin M. Coyne President and CEO of NACD-NJ person and organization.

When was the last time your board took the time to evaluate its performance, as a board, and individually, as directors? How effective was the process, and did you apply the learnings and improve?

It’s easy to recognize really bad board performance. Yahoo and HP are examples where bad decisions, poor process and board infighting created dysfunctional governance.

Their board governance processes were clearly broken and some individual directors did a very poor job. The results were poor business performance, strategic uncertainty and the loss of billions of dollars in value for investors.

grow to become big ones. They quickly identify and address issues before they become systemic and, potentially, fatally toxic. They use an annual evaluation process to continually improve and to prevent the small issues from growing.

My experience as a director and working with boards confirms that an annual board and individual director evaluation process is critical for sustained board performance. Fortunately, every board can easily implement a simple annual evaluation process.

I’ve been on boards where the evaluation process uncovered the need to spend more time on strategy discussion and increased director education about the business.

Feedback from another board identified that the board was going into too much detail on minor issues diverting valuable board time for other important topics.

I’ve seen two cases where directors received feedback that they were providing little value to board discussions. One improved remarkably and added significant insights on some very complex financial issues. The other chose not to stand for reelection. In both cases, board discussions and interaction improved as a result of the feedback.

The real value is in the questions and the process, rather than the format.

Most boards I know have reasonably good governance. On these boards, there may be some opportunities for improvement, but there are no major issues. However, I have seen a few boards with real issues that have gotten out of control over time. The governance at these boards is dismal, support for the CEO is virtually non-existent and meetings are dysfunctional.

Good board governance can only be sustained where there is a good balance of governance and support for the CEO. Outstanding boards do not let little issues

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I recently worked on one board evaluation that put some very controversial interpersonal dynamics on the table that would never have been discussed publicly.

Now they can act on these and make significant improvements.

The most effective and actionable board evaluations are composed of two parts: a board performance survey and individual director feedback. The board performance survey results are shared with the entire board. The nominating and governance committee reviews the feedback, summarizes

and prioritizes the most important topics and then recommends changes in board process to improve performance.

Individual director feedback should be collected anonymously and returned only to that director. Either the board chairman or lead director should meet with each director to discuss their feedback and opportunities for improvement.

There are many survey instruments to assess board performance. Every board is a bit different and can customize their surveys to fit their individual needs. The real value is in the questions and the process, rather than the format.

In the case of really contentious boards or boards that have trouble with being candid, an outside facilitator of the process can help surface issues and work with the board to implement performance improvement plans.

Observe these critical success factors: • All feedback should be anonymous and, ideally, collected by a third party.

• Maintain as much continuity as possible in subsequent surveys to help identify trends.

• Prioritize feedback and take action on the results.

• Design surveys to identify the positives as well as opportunities for improvement.

• Encourage candor, openness and honesty.

• Make sure that the CEO participates and provides feedback into how the board functions and how it can help the company.

From my experience, boards that do this evaluation process will perform much better and help their CEO much more effectively. Use an outside facilitator if you’re not sure that all of the critical success factors will be met.

I’m happy to provide a free prototype board and director evaluation based on best practices I have observed and answer any questions. Just call or drop me an email. ■ Martin M. Coyne serves on several boards and is president and CEO of NACD-NJ. He is the author of How To Manage Your Board While Your Board Manages You. He can be reached at 201-767-6955 or via email at mmcoyne2@gmail.com.

Spring 2012

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Behind the Teller Line

Ocean City Home Bank A BANK FOR BEACHGOERS

Ocean City Home Bank donated $1,000 to the Wounded Warrior Golf Outing. Proceeds from the golf tournament benefit wounded soldiers returning from overseas. Pictured from left to right are Mayor Sonny McCullough of Egg Harbor Township; Don Morgenweck, Ocean City Home Bank’s senior vice president and CFO; and Ed Afanador, a wounded soldier who was accompanied by his therapy dog.

I

n 1887, Ocean City Home Bank was founded to serve the financial needs of families, business owners and visitors in the new seaside resort known as Ocean City. The community bank’s philosophy of offering superior banking products and exemplary personal service has allowed it to thrive for 125 years, withstanding two world wars, the Great Depression,

Ocean City Home Bank kicked off their yearlong 125th anniversary celebration at the main branch office in Ocean City.

The Ocean City branch office celebrated the late 1880s, the decade when OCHB was founded. Pictured are staff members dressed in actual clothes worn in the late 1800s. The clothes were on loan to the bank from the Ocean City Historical Museum.

EXPANDING FOR CUSTOMER CONVENIENCE In 1982, Ocean City Home Bank relocated to its current location at 1001 Asbury Ave. Four years later, the bank opened a second branch to serve residents and businesses in Marmora and the surrounding communities. Bolstered by the success of its flagship location and the new Marmora branch, the bank brought its

The bank’s 125th anniversary offers an opportunity to reflect on its rich history, financial stability, and significant contributions to the community. and a range of economic highs and lows.

The bank has witnessed moments of great financial and historical significance, including the enactment of the Federal Reserve Act, as well as the establishment of the Securities and Exchange Commission and the Federal Deposit Insurance Corporation.

14 New Jersey Banker

community-oriented banking approach to Atlantic County, opening branches in both Linwood and Ventnor in 1994.

Ocean City Home Bank’s commitment to excellence and dedication to the community resulted in consistently strong financial performance and steady growth. The bank continued to expand throughout Atlantic County, opening new branches in Egg

Harbor Township and Absecon in 1999 and 2001, respectively.

In 2004, the community had an opportunity to invest in the success of Ocean City Home Bank, as the bank completed an initial public offering during which 8.77 million shares of the company’s common stock were issued. The strong and stable community bank continued to expand, opening branches in Northfield, Margate, Mays Landing and Galloway between 2005 and 2009.

Last year saw another expansion as Ocean City Home Bank purchased Hammonton-based Select Bank, adding a new group of customers to its already strong customer base and expanding its reach into the western region of Atlantic County. As a result of the purchase, the bank added new locations in Egg Harbor City and Hammonton.

Customers benefit from Ocean City Home Bank’s 12 convenient locations, simple, straightforward products, and financial stability. The bank consistently earns five-star ratings from authorities such as Bauer Financial and bankrate.com.

Spring 2012

SUPPORTING THE COMMUNITY Since its founding, Ocean City Home Bank has been dedicated not only to providing exceptional banking products and exemplary personal service, but also to supporting customers, business associates and the community with financial support and volunteer efforts. From serving as the title sponsor of a concert enjoyed by hundreds of families to awarding a scholarship that will help one deserving student continue his or her education, Ocean City Home Bank actively seeks opportunities to offer improvement, enrichment and assistance where it is needed most.

For Ocean City Home Bank, the IPO was more than a chance to grow and expand.

It was a chance to make a difference by allowing the formation of the Ocean City Home Charitable Foundation to support charitable causes within the bank’s market areas and neighboring communities. A combination of cash and Ocean Shore Holding Company stock totaling $2 million was contributed to the foundation, and since its inception, the organization has issued grants to deserving organizations every year, donating a total of more than $690,000 to Atlantic and Cape May County area charities over the past seven years.

Ocean City Home Bank understands that employees play a vital role in the bank’s ability to help the community, and as a result, the bank encourages staff members to contribute to the causes that are important to them. Dress-down days, held each Friday, allow employees to make nominal donations in exchange for wearing casual office attire, while the bank’s “It Pays to Give” volunteer program compensates staff members for their volunteer time and offers recognition and rewards for their charitable efforts.

In 2009, Ocean City Home Bank President and CEO Steve Brady was made aware of the plight of American soldiers returning from the battlefield with injuries, emotional scars, and financial hardships.

After an introduction to the volunteers at Operation First Response, a nonprofit organization dedicated to helping these

soldiers, Brady was inspired to start Ocean City’s Walk for the Wounded, a three-mile walk along the boardwalk to raise funds for injured soldiers and their families. Since the first Walk in 2009, the event has raised more than $120,000 for Operation First Response and brought attention to this worthy cause.

TRUSTED FOR 125 YEARS When planning Ocean City Home Bank’s 125th anniversary celebration, management and staff intended to highlight the fact that customers have trusted Ocean City Home Bank since 1887, through good economic times and challenges, through wars and social revolutions, through passing trends and new realities. To accomplish their goal, they have planned 12 monthly anniversary celebrations designed to transport customers through time to various eras in the bank’s history.

It was only fitting for the bank’s first location, the Ocean City branch, to host the first monthly event in January. The bank’s daylong 1890s-themed celebration featured costumes, refreshments and cash prizes.

Throughout the remainder of 2012, each of the remaining 11 bank branches will host an anniversary party focusing on a particular decade in Ocean City Home Bank’s history, from the Roaring ’20s to the disco era to the new millennium.

From its beginning as the bank by the sea, Ocean City Home Bank has grown to a publicly-owned financial institution with 12 locations and 200 employees. Despite the changes of the past 12 decades, the economic upheaval of recent years, and the tremendous growth of this community bank, one fact is just as true today as it was in 1887: Ocean City Home Bank is the bank people trust.

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Feature

Some ‘Hidden’ NJBankers Resources

By James M. Meredith

W

hile all NJBankers members are likely to be aware of the services provided to the membership in the areas of advocacy, education, media relations and major publications, there are several other services that some members and associate members may not be fully James M. Meredith aware of. Here is a synopsis of some NJBankers’ resources that you may want to take a closer look at:

STATISTICAL REPORT ANALYSIS NJBankers publishes a quarterly Statistical Report Analysis that includes

16 New Jersey Banker

customized data for members’ institutions.

The report includes a detailed analysis of members’ fundamental performance relative to similar sized institutions located in New Jersey.

The report is authored by Jason O’Donnell, a senior research analyst who has specific expertise in MidAtlantic banks and thrifts. It provides a comprehensive analysis of the state’s banking industry, including funding mix, earning assets, credit quality and profitability trends. It also includes a review of recent M&A activity in the region and related deal multiples. O’Donnell will be presenting “Performance Trends in New Jersey Banks” at the NJBankers Annual Conference in Charleston in June.

Additionally, the report includes detailed economic data on the state of New Jersey, including unemployment trends, household income and other useful metrics.

The report is priced competitively at $600 per year for four quarterly issues and is delivered electronically. We are also committed to constantly seek subscriber feedback on ways to make the report more valuable to the managing and financial officers and the board of directors. We would be happy to provide a complimentary back issue for review.

For more information, please contact Jim Meredith, 908-272-8500, ext. 614, or jmeredith@njbankers.com.

CAREER CENTER NJBankers is the best place for members and associate members seeking to fill positions to find qualified candidates.

Whether a member is new to conducting online recruiting or has done it for many years, NJBankers Career Center, managed

by JOBTARGET, can be an important resource. The Career Center link can be found under the Additional Resources column on www.njbankers.com.

Employers will find that they can access highly-qualified and professional candidates; generate a high return on recruitment spending; and have access to the highly coveted passive job seeker.

The site employs a user-friendly template system to facilitate reuse of job postings, pre-screen filters and automatic letters and notifications. There is also an internal messaging system that automatically stores messages sent from the job seeker in the candidates file. NJBankers members receive special pricing as low as $150 for a 45-day job posting and a $25 fee to view a resume.

A full pricing schedule is available on the site.

For job seekers, the site provides convenient access to high quality, relevant job postings. Job seekers have complete control over both passive and active job searches, the ability to upload multiple

Spring 2012

resumes and cover letters, add notes on employers and communicate anonymously with employers. An anonymous resume bank protects users’ confidential information; resumes will be displayed for employers to view without identifying the user’s identity and contact information until the job seeker is ready to reveal it.

The site also contains added-value benefits to job seekers including career coaching, resume services, education/ training, articles and advice, resume critique, resume writing and career assessment test services.

For more information, please contact Claire Anello at 908-272-8500, ext. 631, or canello@njbankers.com.

REGULATORY FEEDBACK INITIATIVE NJBankers, other state banking associations and the American Bankers Association are participating in the Regulatory Feedback Initiative, an online, anonymous survey that bankers are asked to complete after each exam. The survey asks multiple-choice questions designed to assess satisfaction levels with the exam and the examiner.

The survey results will help bankers prepare for exams; aggregate data can be broken down to show what’s happening at banks of a certain size, those overseen by a particular regulator or in a certain part of the country. In a recent article in the American Banker, Jennifer C. Kelly, OCC’s senior deputy comptroller for midsize and community banks, was asked if she thinks the survey results could affect exams, and her response was “Absolutely.”

Additional information on the Regulatory Feedback Initiative, including a request to take the survey or for participants to request a customized report can be found at: http://allbankers.org. There is no cost for members to participate in this initiative.

For more information, please contact Jim Meredith at 908-272-8500, ext. 614, or jmeredith@njbankers.com.

XEROX PURCHASE/LEASE PROGRAM Under a national contract with Xerox, NJBankers’ members are eligible to receive special pricing when purchasing or leasing Xerox products. Over the past eight years, financial institutions have saved over $3 million under this ABA/Xerox Office Equipment Program, which is co-sponsored

by NJBankers. Xerox offers the widest array of document-related business solutions, including digital copiers that can copy, scan, fax, or serve as a network printer that will enable users to produce high-quality, professional documents.

Members can take advantage of national contract prices for the purchase or lease of Xerox copiers, duplicators, multi-functional devices, facsimile machines and other office equipment available through the local Xerox sales office. This program does not include

Xerox products sold through retail chains, such as Staples or Office Depot.

Contact your local Xerox sales representative or authorized sales agent, and mention you are a member of the New Jersey Bankers Association. To locate a Xerox representative near you, call the Bankers Hotline at 1-800-275-9376, ext. 2265. Please ensure you reference the contract number 0706438 when you purchase or lease your Xerox machine.

For more information, please contact Jenn Zorn at 908-272-8500, ext. 611, or jzorn@ njbankers.com.

■ James M. Meredith is executive vice president and chief operating officer of NJBankers. He can be reached at 908-272-8500, ext. 614, or jmeredith@ njbankers.com.

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Spring 2012 New Jersey Banker

17

Feature

The Hospital that New Jersey Banks Built UNIVERSITY MEDICAL CENTER OF PRINCETON

By Barry S. Rabner and Bruce Traub

I

n 2003, Princeton HealthCare System (PHCS) completed a strategic plan that called for the replacement of its 220-bed acute care hospital, University Medical Center at Princeton. In the intervening nine years between the completion of the strategic plan and the opening of the new University Medical Center of Princeton at Plainsboro (UMCPP) on May 22, 2012, the banking community in New Jersey has been a key partner in the success of the project.

The decision to build a new hospital was driven by the need to serve a growing and aging population and the demand for new programs, services, technology and clinical strategies. Previous planning indicated that the current facility, parts of which were nearly 90 years old, could never be renovated and expanded in a cost-effective manner to meet projected needs of the patients within its service area. In addition, the local community opposed a hospital expansion that would involve acquiring land adjacent to the existing facility in a predominantly residential and historic neighborhood.

A decision was made to purchase a 171-acre parcel of land to build a 231-bed replacement hospital and to develop a comprehensive health campus less than three miles from the existing facility. The health campus, a unique concept in New Jersey, would include the acute-care replacement hospital, medical office building, fitness and wellness center, education center, pediatric outpatient pavilion, child day care center, adult day care center, skilled nursing and sub-acute care facility, assisted living facility, active independent living community, a health-related office/research building, and a cogeneration power plant. The total cost of the hospital including financing is $560 million, and the projected cost of all campus construction is $1.2 billion. The hospital is projected to be completed on May 22, 2012, and the total campus completion by 2015.

FINANCING PLAN Prior to receiving approval from the board of trustees for the replacement hospital in July 2005, PHCS completed a comprehensive project plan including 10-year financial projections. These financial projections were predicated on PHCS maintaining a balance sheet that would earn a minimum triple-B rating. It was essential that the project’s financing plans not undermine the organization’s financial stability and allow PHCS to responsibly issue long-term debt.

The development and implementation of the financing plan were overseen by the PHCS Finance Committee of the Board of Trustees.

Kaufman Hall, a national independent strategic financial and capital consulting firm working exclusively with health care clients, was engaged as PHCS’s advisor in developing and executing the financing plan.

18 New Jersey Banker

Bank of America Wells Fargo JP Morgan Chase TD Bank

$125 million 100 million 75 million 55 million

The comprehensive financing plan includes proceeds from the following five funding sources: • Long term debt • Capital campaign • Sale of existing properties • Investments • Cash flow from ongoing operations To offset timing issues between the sources and uses of cash under the financing plan, in August 2007 PHCS obtained $400 million in bridge financing from Merrill Lynch and Wachovia. The bridge financing essentially worked as a line of credit, which was drawn as needed and provided a safety net that allowed the project to be completed regardless of any economic downturn. By the fourth quarter of 2008, this planning became essential to the project’s success. In spite of the worst economic downturn in recent history, construction moved forward, and through April 2010 PHCS borrowed approximately $207 million under the bridge financing. Facing an August 2012 maturity on the bridge loan commitment and an unfavorable long-term, fixedrate bond market, PHCS issued $355 million in tax-exempt, variablerate bonds through the New Jersey Health Care Facilities Financing Authority in May 2010. The bonds were issued to repay the bridge loan and complete the project. Issuing the bonds was possible due to the

Spring 2012

commitments received from Bank of America, Wells Fargo, JP Morgan Chase and TD Bank. Through a combination of letters of credit and direct purchases, each of the four banks participated in the variable rate bond sale (see chart, facing page).

The letters of credit and direct purchase agreements matured August 2013. Prior to that time, PHCS intended to establish its credit rating and refinance the project with long-term, fixed-rate bonds.

However, with little improvement in the long-term, fixed-rate bond market, PHCS began to restructure its existing financing terms with the four banks in July 2011. By December 2011, PHCS successfully restructured the debt to extend the banks’ commitments until December 1, 2016, converted Bank of America bonds to a taxable, direct loan and converted TD Bank bonds to a direct purchase structure. While Bank of America and TD Bank remained at variable interest rates, we fixed the interest rate on Wells Fargo and JP Morgan Chase loans, culminating in a combined interest rate below 2.5 percent.

Decisions pertaining to the financing plan of the hospital project reflect a combination of executing sound advice from the board of

trustees, taking advantage of what opportunities existed in a difficult market and a strong partnership with the banking community. The end result has served to lower interest expense from the original 2005 financial projections by more than $25 million to date.

Based on current market conditions, PHCS does not anticipate entering the long-term, fixed-rate market prior to 2014. At that time it expects to lower total borrowing from $355 million to $280 million based on the final proceeds from the capital campaign and related real estate transaction. After accounting for $56 million in preexisting debt, $224 million or less than half the cost of the replacement hospital will have been debt financed – an accomplishment made possible by the active participation of the New Jersey banking community.

■ Barry S. Rabner is president and CEO of Princeton HealthCare System. Bruce Traub is chief financial officer of Princeton HealthCare System. For more information on the new University Medical Center of Princeton at Plainsboro, visit www.newhospitalproject.org.

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ABOVE: Striking a pose at the first annual Economic Leadership Forum are, from left to right: John McWeeney, Jr., president/CEO NJBankers; Keynote Speaker Juan Williams, journalist, political thinker and political analyst for Fox News; Robert Doherty, New Jersey president for Bank of America; and Frank Kissel, NJBankers chairman and chairman/CEO of PeapackGladstone Bank.

Garden State Bankers Bloom With (Cautious) Optimism

By Steve Viuker

P

erhaps it was fitting that the first New Jersey Bankers Association Economic Leadership Forum was held the day of the announcement that the economy had added 200,000 jobs the previous month.

The event, held at the Renaissance Woodbridge Hotel in Iselin on Jan. 6, drew nearly 500 attendees composed of bankers and their customers as well as business and community leaders.

Federal Reserve Bank of New York President William C. Dudley was a featured speaker at the event, where he discussed the Fed aiding the economy and focused on the role the weak housing market plays in impeding the recovery. “Monetary policy and housing policy are much more complements than substitutes,” he noted.

In addition to the jobs increase, the unemployment rate dropped to 8.5 percent, from 8.6 percent.

Dr. James Hughes, dean of the Rutgers University Edward J. Bloustein School of Planning and Public Policy, told the overflow gathering that “the great recession technically ended in June of 2009. That is when America’s GEP stopped contracting and started to expand.” Hughes said that January marked the 31st month from the start of the recovery.

“I believe more people in New Jersey believe in flying

20 New Jersey Banker

saucers than in the recovery being 31 months old,” he said to laughter. “In New Jersey, from February 2010 through November 2011, private sector employment grew by 60,000 jobs. But we have 185,000 less private sector jobs than we had in December of 2007. But 700,000 private sector jobs have been added [nationally] since 2010.”

The event featured industry outlook panels addressing the key industry segments of financial services, health care, energy and real estate. The financial services panel discussion, moderated by Kevin Galvin, partner at McElroy, Deutsch, Mulvaney & Carpenter LLP, took an upbeat tack. “Three years ago, the economic downturn hit New Jersey firms hard,” said Robert H. Doherty, Bank of America New Jersey market president. “The reaction to the downturn was swift. Costs were trimmed aggressively and businesses postponed capital expenditure spending. The losses by our customers were stemmed very quickly and profits stabilized. Corporate liquidity grew significantly but at the same time demand for borrowing was soft. Our small business has lagged somewhat, but we’re beginning to see significant improvement.”

“As revenues have gone up, profits have returned,” he continued. “We’ve seen a cautious return to spending.

Spring 2012

PHOTOS BY DON CHRISTENSEN, CHRISTENSEN TAMBURRI COMMUNICATIONS

NJBANKERS ECONOMIC SURVEY SHOWS MORE POSITIVE OUTLOOK VERSUS LAST YEAR

TOP LEFT: Dr. James Hughes, dean of the Rutgers University Edward J. Bloustein School of Planning and Public Policy, addresses attendees on progress in the economic outlook.

TOP RIGHT: William Dudley, president of the Federal Reserve Bank of NY, addresses attendees of the NJBankers Economic Leadership Forum.

At [Bank of America], we have seen two years of significant loan portfolio growth in our middle market and corporate segments. However, growth of employment has continued to lag as our clients still have a reluctance to hire due in part to increased productivity. Our recent polls show the majority of corporate entities are now predicting increases in their employment and less than 10 percent are predicting a decline in employment.”

Agreeing was Angela Snyder, CEO and vice chairman of Fulton Bank of New Jersey. “As a community bank, we focus on the business banking market. Last year, as since the downturn in 2008, our customers were very proactive in cutting costs,” she said. “We do hear from temporary staffing firms that temp staffing continues to grow. That tends to be an indicator that firms are expanding their workforce; although they are not ready to commit to fulltime employment. Security, IT and compliance are areas we are seeing growth in temporary employment.”

Said Doherty, “The consensus seems to be that things are better. For the first time in many years, our clients in New Jersey have a view of state government that is positive.

Employers increasingly believe that the state is focused on restoring fiscal stability and creating conditions favorable for economic expansion. New Jersey has a strong talent

In November and December 2011, the New Jersey Bankers Association surveyed bank members on their outlook for the state’s economy and for loan demand in 2012.

The results of the Annual Economic Survey were released in conjunction with the NJBankers first Annual Economic Leadership Forum.

Survey respondents included CEOs and senior managers of 63 New Jersey banks.

The responses to this year’s survey were more positive than a survey of bankers taken one year ago.

In rating the New Jersey economy, 75 percent of respondents gave a rating of fair, good/fair or excellent; they also believe that the New Jersey economy is performing better than the national economy. New Jersey bankers do not see a downturn in the future for either the national economy or the state, though many believe that slow growth will continue. As a result, respondents believe that both long- and short-term interest rates will remain unchanged at a low level for at least the first half of 2012.

The survey also hints that the cycle of layoffs has abated. Four of five respondents believe that they will maintain current staffing levels; for every respondent planning to reduce staff, there was one that planned on increasing staff.

The research also examined lending and loan demand.

Three of four respondents noted that demand for business loans was fair or worse than in the previous year. Two-thirds believe that this lack of demand for both commercial loans and commercial real estate loans will remain unchanged for the foreseeable future. Fifty percent see the biggest obstacle to increased business lending as lack of demand, while the other half point to lack of qualified borrowers.

Bankers believe there are similar challenges on the residential side. Three of four respondents believe that demand for residential loans is fair or worse; they also believe that demand will remain unchanged for 2012.

A bright spot of the survey showed an increase in demand for refinancing. With interest rates at or near historic lows, 75 percent of respondents note a robust refinance market. They believe that this will continue as long as rates remain stable at current levels. This strength in the refi market will lead to increased ability to spend on consumer goods or accelerate debt payments due to increased savings on mortgage payments. Bankers believe that this will have a stimulative effect going forward.

Finally, the bankers addressed issues of foreclosure and bankruptcy.

One in three bankers believes that there has been an increase of both consumer foreclosure filings and consumer bankruptcy filings. Over half have seen an increase in the number of consumers past due on mortgages. While these are both trailing indicators, they will continue to be a drag on the recovery.

Spring 2012 New Jersey Banker

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Economic Leadership Forum Transcends Banking Issues The Economic Leadership Forum also focused on non-financial sectors of health care, energy and real estate. Panelists discussing the outlook for health care were David L. Knowlton, president and CEO of the New Jersey Health Care Quality Institute; John Lawrence, president of Aetna’s New Jersey Market; Wardell Sanders, Esq., president of the New Jersey Association of Health Plans; and Jeffrey L. Weinstein, executive director and CEO of Hunterdon HealthCare Partners.

The panel reviewing the energy outlook featured Ralph A. LaRossa, president and COO of Public Service Electric and Gas Company, and several representatives from Constellation Energy, including Brad North, vice president, mid-Atlantic for Demand Response; Greg Fox, director of business development for energy efficiency and renewable energy; and Stephen King, director of sales, Metro North.

Discussing the outlook for real estate were panelists Michael J. Fasano, vice president and regional manager of the New Jersey office of Marcus & Millichap; Ronald S. Ladell, senior vice president of development for AvalonBay Communities Inc.; Constantino T. Milano, finance and leasingcommercial real estate for Hartz Mountain Industries Inc.; and Richard Vanderbeck, New Jersey regional manager of First Industrial’s Realty Trust New Jersey portfolio.

The program’s keynote speaker was Juan Williams, one of America’s leading political thinkers and writers. Williams, in an engaging and often humorous speech, provided his prognostications on this year’s presidential election. The Fox News political analyst predicted that the Republicans would hold the House, take the Senate, due to the number of open Democrat seats, and that Obama would be reelected on the strength of being the incumbent.

pool, good infrastructure and access to the Northeast wealth corridor. But New Jersey is still a high-tax state with a highly regulated environment.”

Representing the New Jersey Economic Development Authority on the panel was Caren Franzini, CEO. “We have two-party support led by Governor Christie, for tax policy changes,” explained Franzini. “From a regulatory standpoint, New Jersey is working hard to have a more predictable climate for business. We now have a red tape review commission. We also have the Partnership for Action, which includes Choose New Jersey, which promotes the state both globally and domestically, as well as the Business Action Center, which serves as a ‘one-stop shop’ for business. The partnership serves as the starting point for all initiatives, policies and efforts related to growing New Jersey’s economy and creating quality, sustainable jobs.”

Said Franzini, “We have also partnered with banks to help small and mid-sized businesses in the state and have in place the Premier Lenders program. It involves 44 banks in the state. We also received $33 million from the federal government to lend to small businesses.”

In his concluding remarks, Hughes spoke of the pluses since 2010. “In the 70 years since national employment figures have been kept, 2009 was the worst year. Six million private sector jobs were lost. In 2009, New Jersey lost 118,000 private sector jobs. In 2010, 5,200 jobs were added. 2011 saw a gain of 41,800 jobs. New Jersey now ranks 9th among all states in terms of total private sector employment after dropping to 11th place at one time. That is progress.”

■

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Spring 2012

Endorsed Service Provider

Senior Housing Crime Prevention Foundation

T

he Senior Housing Crime Prevention Foundation is a low-risk way for banks to gain CRA credit. All of the federal banking regulatory agencies support the SHCPF and grant CRA credit in a consistent manner for participating banks. Our mission is to provide safe, secure living environments to low- and moderateincome individuals by providing crime prevention programs that promote a higher quality of life for those who are the most vulnerable through sponsorship of the nationally-acclaimed Senior Crimestoppers program.

Involvement in the foundation is easy! A bank sponsors a nursing home in its community by making a loan or an investment in the foundation. The bank has the flexibility to choose whether to structure its commitment as a loan or investment, depending on the bank’s need or preference for CRA credit. The loan or investment is fully-collateralized by an investment grade bond of the bank’s choosing. The yield on the loan or investment is tied to the collateral bond coupon rate, and repayment is guaranteed.

Once the bank’s financial commitment is in place, we collaborate with the bank to identify nursing homes or veterans’ homes for the bank to sponsor. From there, we do all of the work in terms of implementing the Senior Crimestoppers program in the facilities, training the staff and coordinating a public event where we announce to the community what the bank has done for its sponsored facility.

Some wonder if crime in nursing homes is really a problem. The foundation deals with these incidents firsthand every day, and it is more common than most people realize. Residents of senior care facilities are vulnerable and are susceptible to a variety of forms of abuse, theft, neglect and fraud. A troubling fact is that most elder abuse goes unnoticed because it is not reported. According to the National

Center on Elder Abuse, for every case of elder abuse that is reported, four are not. Also, according to a report by the National Research Council, “the frequency of occurrence of elder mistreatment will undoubtedly increase over the next several decades as the population ages.”

The foundation wants to thank the following New Jersey banks: Amboy Bank, Kearny Federal Savings Bank, Lakeland Bank, Manasquan Savings Bank, NJM Bank, Sturdy Savings Bank and Unity Bank for participating in our nationwide program. These financial institutions have loaned or invested over $11.6 million to help provide safe, crime-free living environments to over 1,180 New Jersey seniors that reside in nursing homes, HUD senior housing communities and veterans’

homes. Because these banks are protecting the seniors in their community, the nursing homes have experienced a 95.37 percent reduction in crime incidents.

Why should a bank get involved in the foundation? Two reasons – it’s the right thing to do and it is good business. The elderly citizens in our society are frail and vulnerable. In the final stages of their lives, they deserve the very best that we can give them – at minimum they should live in safety and security, without the fear of theft, abuse and other personal violations.

It’s also good business. The elderly seniors, veterans and their families appreciate businesses and organizations that provide protection for their loved ones and are a lucrative affinity group for a bank to pursue.

■

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Feature

Bank of America: Supporting New Jersey Communities

By Bob Doherty

A

ccording to the U.S. Department of Agriculture, approximately 380,000 New Jersey residents are considered to be “food insecure,” or lacking access to nutritionally adequate foods. In response to this growing epidemic, Elijah’s Promise – a New Brunswick based nonprofit – is dedicated to reducing the Bob Doherty number of New Jersey families who face food insecurity.

Through its soup kitchen, culinary arts school, catering business and café, Elijah’s Promise not only serves more than 100,000 meals per year, but it also trains previously unskilled workers for careers in the food services industry.

Elijah’s Promise is one example of a community-based organization that Bank of America supports through its signature philanthropic program, the Neighborhood Excellence Initiative (NEI). Since 2004, NEI has recognized, nurtured and rewarded organizations, individuals and Bank of America employees across 44 U.S. cities and London working to improve their local communities.

Bob Doherty, New Jersey State president, Bank of America, presents a $200,000 grant to the Saint Joseph’s Carpenter Society Executive Director Pilar Hogan Closkey and Msgr. Robert McDermott, chairman of the board, as part of Bank of America’s Neighborhood Excellence Initiative. Saint Joseph’s Carpenter Society was named a Neighborhood Builder in recognition of its contributions to the community.

SUPPORTING ORGANIZATIONS THAT BUILD THRIVING NEIGHBORHOODS During challenging times and beyond, nonprofits play a critical role in delivering local services and programs to individuals and families in need. Bank of America’s Neighborhood Builders program, a part of NEI, was designed to bolster these organizations’ effectiveness in improving the quality of life, and access to opportunity, for the people they serve.

Since its inception in 2004, the

24 New Jersey Banker

Bob Doherty, New Jersey State president, Bank of America, presents a $200,000 grant to Lisanne Finston, executive director, Elijah’s Promise, as part of Bank of America’s Neighborhood Excellence Initiative. Elijah’s Promise was named a Neighborhood Builder in recognition of its contributions to the community.

Spring 2012

Neighborhood Builders program has recognized nearly 600 outstanding organizations across the country with $200,000 general operating support grants and rigorous leadership training.

The leadership training includes gathering the nonprofit’s senior executives for two, four-day workshops that cover a variety of management topics, including strategic thinking, business planning and leadership development.

Additionally, emerging leaders from each organization gather for three, four-day workshops where they discuss developing organizational management skills, managing strategic opportunities, forging alliances and building communities.

To select the most deserving candidates for the Neighborhood Builders program, the bank convenes a panel of previous winners and people within the community who are familiar with local economic and social priorities, and choose the visionaries working to strengthen and grow the community.

Elijah’s Promise was one of two New Jersey nonprofits recognized as a Neighborhood Builder in 2011. The organization was founded over 20 years ago in response to the reality that many people in New Brunswick are poor, hungry and vulnerable. Through its soup kitchen, Promise Culinary School, Shiloh Garden, Promise Catering and Better World Café, Elijah’s Promise has helped empower lives and alleviate hunger. The organization will put its award to good use by expanding its social enterprise programs, including the development of Promise Snacks, and maintaining a leadership role in the New Brunswick Community Food Alliance.

St. Joseph’s Carpenter Society (SJCS), the other New Jersey-based 2011 Neighborhood Builder, strives to improve the quality

of life of the people of Camden through homeownership and neighborhood development. Since its founding 25 years ago, SJCS has created more than 875 homes.

The organization’s efforts have resulted in the value of SJCS’s homes tripling and the value of real estate in their neighborhoods doubling. To continue its successful neighborhood revitalization efforts, the organization will use their grant to expand community engagement as well as explore opportunities to provide transitional and permanent housing for the homeless.

needs. More than 76,000 of those hours were logged in New Jersey.

Mark Cremonni from the Merrill Lynch Short Hills office was the 2011 recipient of the New Jersey Volunteer Service Award through the NEI program. For over 20 years, Cremonni has volunteered at St. John’s Soup Kitchen in Newark, cooking and serving lunch to the homeless as well as serving on the organization’s finance committee. He serves as an inspiration to fellow bankers and sets an example for others.

Bank of America’s Neighborhood Builders program was designed to bolster these organizations’ effectiveness in improving the quality of life, and access to opportunity, for the people they serve.

As nonprofits continue to confront greater local challenges with fewer resources, leadership in communities is more important than ever. The Neighborhood Builders Program underscores the bank’s long-term commitment to our communities, and our appreciation for organizations, like Elijah’s Promise and St. Joseph’s Carpenter Society, that improve the lives of others.

BANK OF AMERICA EMPLOYEES: SERVING OUR COMMUNITIES Recognizing that Bank of America employees are valuable members of the local community, the bank established a unique award to honor teammates who give their time and service to causes important to them. The selection process is no easy task – in 2011, Bank of America community volunteers donated more than 1.5 million hours to a variety of critical community

HEALTHY COMMUNITIES ARE A BUSINESS IMPERATIVE At Bank of America, we have long held the philosophy that a healthy community provides a strong place to do business. As such, the bank is committed to creating real impact in those neighborhoods where our employees and customers live, work and do business. We know that the economic and social health of the communities we serve is integral to the long-term success of our business.

Through the NEI program, we seek to recognize the groups and individuals making a real difference in their communities, and we appreciate the opportunity to support our local leaders of today so that we can build a better tomorrow – together.

■ Bob Doherty is New Jersey president for Bank of America.

Spring 2012 New Jersey Banker

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Feature

Annual Conference Sets Sights on Charleston

T

he NJBankers 108th Annual Conference will be held May 30 – June 3 at Charleston Place Hotel, Charleston, South Carolina.

The conference theme of “economic renaissance” could not be more appropriate this year. By definition, a renaissance is activity, spirit and a time of great revival. This revival will come through persistence and innovation, with the result a stronger banking industry, a stronger economy and a stronger New Jersey.

The Annual Conference will present an understanding of where we are and where we want to be, and address innovative opportunities for reaching our goals. The NJBankers Conference Committee and staff have brought together the thinkers, the movers and the shakers of our times to be true to our renaissance theme.

This year’s conference offers benefits for everyone. A full trade show will be open and will host our welcome and networking reception on Wednesday evening. The opening reception is a perfect opportunity to visit with your existing service providers, as well as research and speak with new contacts who can provide the kind of thinking and innovation that will help your institution be part of the economic renaissance we are moving toward.

On the education side, the conference will again offer full general sessions on Thursday and Saturday and an educational session on Friday, which will include concurrent breakout sessions. Attendees will also be able to enjoy our beautiful host hotel and surrounding areas, including many tours, recreational activities and the popular Spoleto Festival USA. Spoleto Festival USA runs from May 25 to June 10, and is scheduled to have more than 140 performances in 13 venues, featuring 60 artistic ensembles and individual performers from the United Kingdom, Germany, France, Spain, China, Brazil, Japan, Canada and the United States.

The thinkers, movers and shakers presenting at the 2012 Annual Conference include:

26 New Jersey Banker

• Washington Update, Albert C. “Kell” Kelly, American Bankers Association • FHLBNY Update, Alfred A. DelliBovi • Economic Update, Dr. Donald Ratajzcak, Morgan Keegan & Co. • Housing Market Update, Jeffrey Otteau, Otteau Valuation Group • National Security Finance, Special Agent Kevin Rietema, Federal Bureau of Investigation • Keynote speaker Dr. Larry J. Sabato, director at the University of Virginia, Center for Politics and Robert Kent Gooch Professor of Politics at the University of Virginia The managers and directors concurrent sessions include: • Updates on Mergers & Acquisitions Panel with Ben Plotkin, Stifel, Nicolaus, Weisel; Pat McJoynt, Keefe Bruyette & Woods, Inc.; and Eric Luse, Esq., and John Gorman, Esq., Luse Gorman Pomerenk & Schick, P.C. • Enterprise Risk Management Session (including: Company Audit Committee Member Survey; Real World Business Continuity – Lessons from Irene; Investment Portfolio Management and ERM – The Other Side of Strategy) with Thomas S. Lally, KPMG LLP; Rashaad Bajwa; Domain Computer Services, Inc.; Kevin Schultze, Oppenheimer & Co. Inc.; and Jack R. Salvetti, S.R. Snodgrass, A.C. • Executive Compensation Session (including: Non-Qualified Benefit Plans and BOLI; and Insights into Compensation Practices) with John Gianacaci and Zachary Low, Bank Financial Services Group, and Timothy Reimink, Crowe Horwath LLP. • Performance Trends in New Jersey Banks Session (including: Community Bank Capital Raising in a Post-TARP/SBLF World and Performance Trends in NJ Banks) with Anthony A. Latini, Joseph Morrissey, Boenning & Scattergood, Inc., and Jason O’Donnell, senior research analyst.

• Succession Planning Session (including Future of Bank Leadership; Board Evolution: Guidance for a Changing Role; and a Regulators Perspective to Succession Planning Panel) with Alan J. Kaplan, Kaplan & Associates, Inc.; Jean Joy, Wolf & Company; Gregory P. Wyka, Federal Deposit Insurance Corporation; and Toney Bland, Office of the Comptroller of the Currency.

• Surviving the New Banking Environment with Donald J. Musso, FinPro, Inc. • Charter Choice with Douglas P. Faucette, Esq., Locke Lord LLP. • The Cloud 101 – What CEOs and the Executive Management Team Need to Know about “The Cloud” and its Impact on Your Future Bottom Line, with Chuck Daniels and Christian Ericson, BITS. Conference/Hotel Registration – Full conference planning packets can be found on the NJBankers website at www.njbankers.com.

Remember, due to the Spoleto Festival, this will be peak travel time in Charleston. Attendees should make their reservations with the hotel and airlines as soon as possible. NJBankers has negotiated guest room rates at the hotel as follows: Charleston Place Hotel – $295 per day, single or double occupancy, for a regular room.

A limited number of executive king rooms are available at $325 per day, as well as club rooms for $405 per day, junior suites for $355 per day, junior executive suites for $485 per day and senior suites on club floor for $685 per day.

Attendees traveling to Charleston International Airport on United Airlines may receive additional discounts by calling your travel professional or United MeetingWorks at 1-800468-7022 for reservations ($25 fee applies – to avoid any service fees, book online at www. united.com and get an additional 3 percent discount). Refer to offer code ZKYB829198.

Valid travel dates are May 29 to June 6, 2012.

Sponsorships and Exhibit Booths – Showcase your company and services at the NJBankers Annual Conference full trade show, which includes 40 service providers. In today’s economy, an investment in sponsorships,

Spring 2012

as well as exhibiting, offers your firm the opportunity to be in front of more than 60 financial institutions. Changing technology and changing rules mean more than ever, financial institutions need your support and products to help ensure their viability.

Sponsorships give your company maximum exposure and recognition to conference attendees and provide another

exceptional opportunity to forge new relationships. Enhance your image by being one of the sponsors at NJBankers’ Annual Conference.

NJBankers wants to thank our Platinum Sponsors, Aetna and Bank Financial Services Group, and our Diamond Sponsors, the Federal Home Loan Bank of New York and Investors Bank, as well as our Gold Sponsor,

Full details on sponsorship and exhibit opportunities can be found online at www. njbankers.com or by contacting Jenn Zorn at 908272-8500, ext. 611 or jzorn@njbankers.com. For additional conference information, contact Cris Goncalves, 908-272-8500, ext. 630 or cgoncalves@ njbankers.com.

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27

Letter from Lieutenant Governor Kim Guadagno

Dear New Jersey Bankers,

M

aking New Jersey a home for growth is a top priority of the Christie Administration. With Gov. Chris Christie at the helm, we have been working tirelessly to position New Jersey as a pro-investment state, responsive to the needs of our robust banking community and the clients you serve. We have done this by establishing a favorable tax climate with competitive business incentives, and a common-sense, predictable regulatory process. By partnering with commercial banks and other financial institutions, we are leveraging our resources and working together to grow businesses in the state and create new jobs.

The Christie Administration’s aggressive efforts to promote economic growth and foster job creation and investment have already delivered tangible results. Since Gov. Christie took office, nearly 60,000 private sector jobs have been added to New Jersey’s economy. In addition, the administration has worked to provide $185 million in targeted tax cuts to

create jobs and help businesses grow. From Fortune 500 firms to small and medium-sized businesses, including Asurion, Bayer, Citibank, Church and Dwight, Torus US Services, Watson Pharmaceuticals and Standard Chartered Bank, businesses once again have optimism and faith that New Jersey is a place where businesses thrive.

The centerpiece of our administration’s coordinated and streamlined economic development strategy is the Partnership for Action. Under my leadership, this public/ private partnership is committed to delivering business services through advocacy, access to financial resources and domestic and global marketing to retain and attract businesses.

The three elements of the partnership include the Business Action Center, which provides the business community with a single point of contact, applying a proactive and customerservice approach to businesses’ interactions with state government for advocacy and connections to state programs and resources;

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the New Jersey Economic Development Authority, serving as the state’s “bank for business;” and Choose New Jersey, an independently funded and operated not-forprofit corporation created to encourage and nurture economic growth throughout New Jersey.

By stimulating the kind of business growth and commercial confidence that our communities need, we’re helping companies create new jobs and strengthening local commercial zones. The Partnership for Action is eager to continue to work closely with our banking partners to build on the success of the last two years and attract even greater interest from the business community.

■ Best regards,

Kim Guadagno Lieutenant Governor New Jersey

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Spring 2012

Partnership For Action

Choose New Jersey Lets the World Know New Jersey Means Business

By Tracye McDaniel

N

ew Jersey is serious about generating jobs, and so are the state’s business leaders.

Created by the Christie Administration as part of the three-pronged Partnership for Action (along with the NJ Business Action Center and the NJ Economic Development Authority), Choose New Jersey works with the state’s business and community leaders to aggressively promote New Jersey as a place in which to invest and do business.

Choose NJ is an independently funded and operated 501(c)(3) nonprofit corporation created to position New Jersey as a world-class leader in the competitive global market, creating a prosperous and vibrant economy for the state and its citizens.

In 2011, Choose NJ’s foundational year, the organization began to strategically market the state, generating leads to turn into jobs and capital investment for New Jersey. Beginning with the kickoff event at the NCAA March Madness Sweet 16 tournament in Newark, Choose NJ held numerous business attraction and retention events and 53 site consultant meetings, among other marketing and lead-generation efforts, generating more than 650 leads and prospects, and directly assisting five Partnership for Action business wins with Allergan, BioTrial, Ferring Pharmaceuticals, Watson Pharmaceuticals and Pearson Inc. These five wins alone resulted in nearly 1,400 new and retained jobs and $199.1 million in capital investment for New Jersey.

Also in 2011, Choose NJ laid the groundwork that is allowing the organization to take its marketing and lead-generation efforts to a new level of success in 2012. The research-driven marketing and lead-generation program is laser-focused on spreading the message of New Jersey’s core strengths, including strategic location near suppliers, markets

and ports; a highly skilled workforce; efficient transportation and technology infrastructure; and an economy built on innovation.

Our goal is to create a unified economic development brand and message for New Jersey based on these assets; execute a proactive, integrated marketing strategy; and rally the full power of the state’s business community to promote the state nationally and internationally.

Seventeen of the state’s top organizations, Fortune 500 companies and privately-held enterprises have signed on as Choose NJ’s board to oversee and participate in the program to promote the Garden State as an excellent place to do business. The companies and organizations currently participating in the initiative at the Board level include Atlantic City Electric, Bank of America Merrill Lynch, Bethany Baptist Church, Celgene Corporation, Horizon Blue Cross Blue Shield of NJ, Laborers International Union of North America, New Jersey Resources, NJ American Water, NJM Insurance Group, Novartis Pharmaceutical Corp., PNC Bank, Prudential Financial Inc., PSEG, South Jersey Gas, United Water, Verizon New Jersey and Wakefern Food Co. In total, these companies employ more than 100,000 people in New Jersey.

Through the power of the partnership, New Jersey is once again attracting and retaining business and jobs in the state and showing the world that New Jersey “means business.”

If you know of a business leader considering relocation or expansion, please contact Michael Chrobak at 609-297-2200 or econdev@choosenj.com. For more information about Choose New Jersey, visit us online at www.choosenj.com.

■

Tracye McDaniel addresses the attendees of the NJBankers Senior Management Conference and discusses the mission of Choose NJ.

A panel, which explained the programs available to businesses in New Jersey, included (from left to right): Caren Franzini, CEO of the NJEDA; Lt. Gov. Kim Guadagno; and Linda Kellner, acting executive director of the BAC.

Tracye McDaniel is president and CEO of Choose New Jersey.

Spring 2012 New Jersey Banker

29

Partnership For Action

New Jersey’s ‘Bank for Business’ Enhances Partnerships to Support Business Growth

By Caren Franzini

U

nder the umbrella of the Christie Administration’s Partnership for Action, the New Jersey Economic Development Authority (EDA) serves as the “bank for business” by financing small and mid-sized businesses, administering tax incentives to retain and grow jobs, revitalizing communities through redevelopment initiatives, and supporting entrepreneurial development by providing access to training and mentoring programs.

One of EDA’s central areas of focus continues to be partnering with commercial banks and other financial institutions to provide businesses with access to the capital they need to remain and grow in New Jersey. We have been actively working with our banking partners to advance enhanced opportunities that strengthen our capacity to lend and increase our ability to offer critical support to small and mid-sized businesses across the state.

days, the result of which speeds the flow of capital to growing businesses in the state.

Quick turnaround time from approval to closing provides a strong incentive for borrowers, while the EDA’s exposure by participating in or guaranteeing a portion of a loan reduces the lender’s risk.

We also doubled EDA’s line of credit guarantee assistance from $250,000 to $500,000 through the Main Street Business Assistance Program.

The program provides financial support to commercial banks in New Jersey to assist in offering loans, guarantees and line of credit guarantees to small businesses and not-for-profit organizations. Additionally, the EDA’s board of directors voted to reduce the interest rate for the program from 5-percent fixed to the Five-Year U.S. Treasury plus 300 basis points with a 3-percent floor, fixed at closing.

These changes came on the heels of an announcement made by the Christie

The Christie Administration’s message has been clear from the start – we must provide small businesses with the tools they need to create jobs and help drive New Jersey’s economy forward.

As part of this effort, EDA increased the number of banks from 15 to 44 that can participate in a new Premier Lenders banking program to be more responsive to the needs of businesses and bank partners. The new program will help to expedite approvals for small business loans and increase activity with all of the EDA’s banking partners. The streamlined loan approval process involves the EDA reviewing finance applications within five

30 New Jersey Banker

Administration in mid-October that New Jersey was allocated $33.8 million in funding through the Federal Jobs Act to strengthen our existing lending programs.

This injection of funding is allowing us to further amplify our efforts and create new opportunities to help small businesses reach their job-creating potential.

Through the Partnership for Action’s proactive outreach to the business community, we discovered a real need

for competitively priced financing to help New Jersey companies expand globally.

As a result, EDA has formed a partnership with Citi Commercial Bank to help small and mid-size companies currently engaged or looking to engage in international trade. Through the new program, Citi Commercial Bank will provide $50 million in term loans and lines of credit over the next three years. EDA will offer guarantees on individual transactions of up to 50 percent of the Citi Commercial Bank financing, not to exceed $1.5 million for term loans and $500,000 for lines of credit.

EDA also has made a concerted effort to enhance our marketing efforts in order to spur lending activity and further cultivate our relationship with New Jersey’s banking community. This included the introduction of three new “microsites” and a monthly newsletter tailored to bankers, small business/manufacturers and not-forprofits. Through the bankers landing page and newsletter, EDA provides updates on its programs and features success stories of businesses that have used a combination of bank and EDA financing to grow their operations. If you haven’t done so already, I encourage you to subscribe to the newsletter by visiting http://bankers.njeda. com and providing your email address on the “Take Action Now” page.

The Christie Administration’s message has been clear from the start – we must provide small businesses with the tools they need to create jobs and help drive New Jersey’s economy forward. Through our continued partnership with the state’s banking community, we are helping to do just that.

■ Caren Franzini is CEO of the New Jersey Economic Development Authority.

Spring 2012

New Jersey’s One-Stop Shop for Business

By Linda Kellner

E

arly in his administration, Gov. Chris Christie recognized that economic development in New Jersey required a new course to spur business growth and job creation in the state. He recognized the need for change and consolidated all state economic development activities under the leadership of Lt. Gov. Kim Guadagno, creating the Partnership for Action Strategy and a new division in the Department of State – The Business Action Center.

The New Jersey Business Action Center (BAC) is at the heart of the state’s new economic development efforts. It serves as a one-stop resource for companies of all sizes, advances the global competitiveness of New Jersey companies and promotes the state as a business investment location and vacation destination nationally and internationally.

The Business Action Center serves as a primary point of contact, walking companies through everything from state regulatory and permitting processes to financing and incentive programs to global business and trade services, engaging state agencies and departments as necessary. In addition, the BAC offers a full range of site selection and location data, and is the focal point for coordinating and advancing the state’s planning strategies.

Through the power of the partnership and the administration’s commitment to attract and grow business and create more jobs and investment, the state has once again become a home for business. Case in point: In early 2011, Bayer HealthCare announced that it would consolidate its entire East Coast business in New Jersey, keeping more than 1,000 jobs in the state, moving 300 to the state and adding another 700. And in October 2011, household product maker Church & Dwight announced the company’s decision to build their new global headquarters in Ewing Township, further expanding their manufacturing and research and development footprint in the state. This decision to stay and expand in New Jersey means nearly 1,000 jobs will be kept in state,

and 130 new permanent jobs will be created.

The project will also create hundreds of construction jobs.

From Fortune 500 firms to small and mid-sized businesses, 149 companies have committed to generating and retaining over 43,000 jobs, bringing more than $5.8 billion in public-private investment to New Jersey since January 2010.

The Christie Administration has also shown a new, unprecedented commitment to growing exports and foreign direct investment to create jobs. The Business Action Center and its Global Advocacy team are focused on bringing new global investment into the state. As part of its aggressive strategy, the BAC has hosted more than 33 foreign delegations and meetings with trading partners. Twenty

foreign-owned companies have committed to establishing a presence in the Garden State, including companies such as Ferring International Pharmascience, Schar USA and Fluitec International.

As the BAC continues to make the great Garden State a home for growth, the message is loud and clear – New Jersey means business. By forging stronger relationships with the business community, New Jersey will continue to produce real results.

To learn more about the BAC’s services and how it can help commercial customers, contact the team directly at 866-534-7789 or www.newjerseybusiness.gov.

■ Linda Kellner is acting executive director of the New Jersey Business Action Center.

Spring 2012 New Jersey Banker

31

Bank Notes

Catherine M. Bringuier

Geri M. Kelly

Tony Rose

Wendy L. Cama

Alfred DelliBovi

Patrick W. Smith

BOILING SPRINGS SAVINGS BANK Catherine M. Bringuier was promoted to senior vice president of Boiling Springs Savings Bank. Bringuier joined Boiling Springs in 2011 as vice president and internal loan review manager. Prior to joining BSSB, she was a consultant for CL Business Services.

Previously, she was senior vice president and CLO at American Bank. She graduated cum laude from Kean College and holds a bachelor’s degree in business management.

director. In his role, Rose is responsible for the oversight of the marketing department, including all branding and advertising solutions, research, public relations, special events and social media marketing. He also oversees the bank’s CRA department. Prior to joining Columbia Bank, he was the marketing director for Lakeland Bank in Oak Ridge. He holds a bachelor’s degree from Plattsburgh State University and an MBA in Business Administration from Long Island University.

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COCC’s new app approach enables financial institutions to adapt more rapidly to changing market conditions and to customize their technology solutions to their unique operational needs.

CROWE HORWATH Wendy L. Cama, CPA, a partner at Crowe Horwath LLP, has been recognized

by Cambridge Who’s Who for showing dedication, leadership and excellence in accounting. Cama has established herself within the accounting world for 20 years. In addition to handling financial projects, she is responsible for executing human resource activities and establishing public relations.

She has worked in this capacity for the past eight years since relocating to New Jersey from Chicago. She holds a bachelor’s degree in accounting from Illinois State University.

COLUMBIA BANK Geri M. Kelly has been appointed executive vice president and human resources officer of Columbia Bank. In her new role, Kelly will continue to manage the bank’s human resources, training and benefits departments.

She joined Columbia Bank as a personnel clerk, was promoted to human resources assistant, then appointed human resources officer and senior human resources officer in 1995. Kelly was promoted to vice president, human resources officer in 1998 and to senior vice president and human resources officer in 2000. Kelly holds a bachelor’s degree in Italian and French from Douglass College and an MBA in business administration from Rutgers University. She also graduated with honors from the National School of Banking in Fairfield, Conn.

Tony Rose has joined Columbia Bank as senior vice president and marketing

32 New Jersey Banker

DEPARTMENT OF BANKING AND INSURANCE Thomas Considine announced his resignation as commissioner of the New Jersey Department of Banking and Insurance to become chief operating officer of MagnaCare. Considine joined DOBI in 2010. Kenneth E. Kobylowski, chief of staff to Considine, will replace him. He has served as acting director of banking since October 2011. Kobylowski indicated he will focus on implementing Dodd-Frank regulations and fair treatment of both small and large banks.

A lawyer, Kobylowski previously worked at Herrick, Feinstein, LLP and Connell, Foley and Geiser. He began his career at The Federal Reserve Bank of New York as a bank analyst, later attending New York Law School. He graduated magna cum laude with a bachelor’s degree in finance from Seton Hall University.

Maureen Martin

George F. Beppel

FEDERAL HOME LOAN BANK OF NEW YORK Alfred DelliBovi, president and CEO of the FHLBNY has been named to the Bipartisan Policy Center’s (BPC) Housing Commission, created in an effort to improve U.S. housing policy. Its membership includes national business and civic leaders, key housing experts, academics and senior political figures. DelliBovi has served as president and CEO of the FHLBNY since November 1992. In his current role, he leads a team of professionals at the $100 billion wholesale bank, which provides funding for housing and economic development to 330 neighborhoodbased lenders in New Jersey, New York, Puerto Rico and the U.S. Virgin Islands.

Previously, he served as Deputy Secretary of the U.S. Department of Housing and Urban Development, a senior official at the U.S. Department of Transportation, and was appointed administrator of the Urban Mass Transportation Administration. DelliBovi has been elected to four terms in the NY State Assembly.

FULTON BANK OF NEW JERSEY Timothy J. Losch has been appointed regional president of the central New Jersey market. Losch has been in the financial industry for nearly 40 years and was previously an executive vice president and regional president at the bank. He will be responsible for growing the retail and commercial markets in central New Jersey.

George Robostello has been promoted to regional president of the southern New Jersey market. Robostello has more than 20 years experience in the financial industry and was previously executive vice president and senior lender at the bank. In his new role he will be responsible for growing the retail and commercial markets in southern New Jersey.

Angela Miraglia has been promoted to retail leader and senior vice president of the southern New Jersey region. Miraglia has been serving the financial industry for

Spring 2012

more than 15 years. In her new role she will oversee business development, consumer and small business lending and have oversight responsibility of branches.

Art Dorn, CPA has been promoted to senior lender and executive vice president of the southern New Jersey market. Dorn has been in the financial industry for nearly 10 years and was previously executive vice president and senior commercial lender at the bank. He will be responsible for all commercial lending in the southern New Jersey market.

Patricia Wiener has been promoted to retail leader senior vice president of the central New Jersey region. Wiener has more than 22 years experience in the financial industry and has been with Fulton Bank of New Jersey for the past four years. In her new role she will oversee business development, consumer and small business lending and have responsibility of retail branches in central New Jersey.

Thomas Harrity has been promoted to senior lender and executive vice president for

New Jersey. Harrity has been in the financial industry for more than 30 years and served as executive vice president and senior lender at Skylands Community Bank. In his role he will oversee all commercial lending activity for New Jersey.

HIGHLANDS STATE BANK Patrick W. Smith has been promoted to executive vice president. Smith is currently the bank’s senior lending officer, and he will retain that position. Smith has been with Highlands State Bank for three years.

LAKELAND BANK Maureen Martin has joined Lakeland Bank as senior vice president of marketing. Martin has over 25 years of banking experience, most recently with SussexBank in Franklin, where she was senior vice president of marketing and customer experience. She holds a bachelor’s degree in mathematics from Seton Hall University.

LIBERTY BELL BANK George F. Beppel, shareholder in the firm of Ragone, Lacatena, Fairchild & Beppel, PC, Certified Public Accountants, has been named to the board of directors. He will also serve as a member of the bank’s audit committee.

Beppel is a member of the New Jersey Society of Certified Public Accountants, the American Institute of Certified Public Accountants, a member of the New Jersey and Pennsylvania Bar Associations and a member of the board of trustees of the Center for Family Services.

PULSE To meet the ongoing needs of payments industry professionals, PULSE has launched a new Debit Regulations Resource Center.

The web-based resource center provides information on debit-related legislation, regulations and compliance matters. Through the Debit Regulations Resource Center, PULSE will continue to follow debit issues closely and analyze the impact of the changing regulatory environment on the payments industry.

■

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Feature

Bank Chairman’s ‘Musings’ Released in Book

By Emily T. DeMasi

W

hen we think of the chairman of the board at a financial institution, we may not always think of a person who is an author and great storyteller. Enter Martin D. Jessen, chairman of Metuchen Savings Bank and author of Marty’s Musings: Tales of the Great Depression, World War II, the Korean War, and New Jersey. The book is a collection of 168 short stories written by the 85-year-old Jessen.

Jessen is truly an example of a “Renaissance Man.” His resume certainly reads as such. He graduated from Rutgers University with a B.S. in civil engineering; served his country in the Naval Reserve as an enlisted quartermaster during World War II and as a diving, salvage, gunnery and morale officer and navigator during the Korean War; owned and ran an excavating contractor business; owns a business that restores older buildings for commercial use; and is author of “Marty’s Musings,” a column which appears in the Criterion, a local newspaper in the town of Metuchen, where he has lived for most of his life. Add to that his service to professional associations and the community.

Whew!

Jessen handwrote the stories on yellowlined paper. His daughter Nancy was instrumental in taking his memories, stories and columns and combining them into the book. Whether it was interviewing her dad directly, remembering the many stories he shared with her, finding letters in the attic that he had sent home during both wars or combing through his columns, Nancy was on a mission to share his observations and history with others.

She took those life lessons and anecdotes and had them published in the book. It is a compilation of short stories with titles such as “Winter Fresh Tomatoes,” “Tattoos,” “The Beer Mystery” and “Trade Associations.”

(The latter was of much interest to this writer, since Jessen indicates that everyone should join their trade association!) The

34 New Jersey Banker

story titled “Pennies” will make any banker chuckle.

The foreword to the book was written by his neighbor and fellow Navy veteran, Gov. James J. Florio, who called the book a “delightful read” – and that it is.

Jessen’s sense of humor and great memory has endeared him to all who know him. He was recently named Citizen of the Century by the YMCA of Metuchen, Edison, Woodbridge and South Amboy. This honor certainly befits Jessen, who has been a part of many community-based organizations, including Boy Scouts, the Rotary Club, the Metuchen Historical Commission and so many others.

Marty’s Musings: Tales of the Great Depression, World War II, the Korean War, and New Jersey is available at Amazon.com, BarnesandNoble.com, on NOOK, Kindle or at martysmusings.us.

■ Emily T. DeMasi is vice president and director of communications for NJBankers. She can be reached at edemasi@njbankers.com.

Marty, with his slide projector, reviewing his Korean War slides.

Diver Lt. Martin Jessen, U.S. Naval Reserve, in diving suit standing on the stage with diver’s tender holding the stage, and the air, telephone and life lines, aboard the barge Mary Ann, Kwajalein Atoll, Marshall Islands, 1951.

Navigator Lt. Martin Jessen, U.S. Naval Reserve, using a sextant to take noon sun site, standing in 20-millimeter gun tub aboard the rescue salvage ship USS Conserver (ARS-30), Western Pacific, 1951.

Spring 2012

Bank Shots

THE ASSOCIATION FOR CORPORATE GROWTH, NJ Chapter, hosted a meeting with a distinguished panel which explored the crucial and delicate interplay of banks with a lending business model and borrowers’ with a need for growth capital. Seated, from left: Kevin Cummings, president and CEO, Investors Bank; Joseph F. Dempsey, Jr., president, New Jersey Middle Market Banking, JPMorgan Chase Bank, N.A.; and Thomas J. Kemly, at the time, senior executive vice president and COO, Columbia Bank. Standing, from left: John E. McWeeney, Jr., president and CEO, NJBankers, panel moderator; Mark Hahn, membership committee, ACG NJ and managing director, Brownstein Corporation; Heidi Shore, membership chair, ACG NJ and director of marketing, Geller & Company; Mark S. Kuehn, president, ACG NJ and corporate counsel, Gibbons P.C.

ATLANTIC STEWARDSHIP BANK announced that it would distribute $298,000 in charitable contributions to 288 recipients through its unique tithing program, which provides for the bank to share 10 percent of its pre-tax earnings annually with Christian and local civic non-profit organizations. Pictured is one of the many recipients of the tithing program. From left: Paul Van Ostenbridge, Atlantic Stewardship Bank president and CEO; Nancy Dykstra-Powers, director, Bethany Christian Services of NJ; and Diane Ingrassia, Atlantic Stewardship Bank vice president and regional branch manager.

CENTRAL JERSEY BANK (a division of Kearny FSB) officially opened its 14th full service retail branch in Allenhurst, further expanding its footprint throughout New Jersey. Pictured at the ribbon cutting ceremony are, from left to right: Craig Montanaro, president and CEO, Kearny Federal Savings; William Ledgerwood, executive vice president and COO, Kearny Federal; April Huchko, branch manager, Allenhurst; Rob Vuono, president, CJB Division; and David McLaughlin, mayor of Allenhurst.

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Spring 2012 New Jersey Banker

35

Bank Shots

CROSS RIVER BANK made a donation to the Township of Teaneck and the Helping Hands Food Pantry. Cross River Bank Chairman and Acting CEO Gilles Gade presented the donation. Pictured, from left are: Teaneck Councilman Yitz Stern; Rosalind McLean, Township of Teaneck; Helping Hands Food Pantry Director Janice Preschel; Gade; and Township Manager William Broughton.

FREEDOM BANK recently retained Christensen Tamburri Communications to serve as its advertising/marketing firm. Pictured on location at Freedom Bank are, from left: Don Christensen, CTC; Harvey Barry, CTC/VisionWorks Unlimited; Frank Peluso, photographer; Matthew Carcich, Freedom Bank senior vice president and senior loan officer; C. Mark Campbell, Freedom Bank president and CEO; Barbara E. Komor, Freedom Bank senior vice president and manager of business development and branch operations; and Joel C. Sweren, Freedom Bank executive vice president and CFO.

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Offices: Florida, Maine, New York

36 New Jersey Banker

Spring 2012

NORTHFIELD BANK’s John W. Alexander, chairman and CEO, was joined by more than 30 bank employees to ring the closing bell at the NASDAQ stock exchange. The event began a year-long celebration of Northfield Bank’s 125th anniversary.

The Metro New Jersey Region of the American Jewish Committee honored Ben A. Plotkin with its prestigious National Human Relations Award at the Hilton/Short Hills, with 150 friends and family in attendance. Pictured, from left to right: co-chair Michael Kollender, managing director, Stifel, Nicolaus & Company; co-chair Gerald H. Lipkin, chairman, president and CEO, Valley National Bank; Ben Plotkin, executive vice president, Stifel, Nicolaus & Company, and vice chairman, Stifel Financial Corporation; Ken Peskin, immediate past president, AJC Metro NJ Region; and co-chair Kevin Cummings, president/CEO, Investors Bank.

Spring 2012 New Jersey Banker

37

Bank Shots

New Members as of February 2012 Brunswick Bank & Trust Company 439 Livingston Avenue New Brunswick, NJ 08901 Contact: Frank Puleio Email: puleiof@brunswickbank.com Phone: 732-247-5800

Upcoming Events April 13 Accounting Seminar with FMS-NY/NJ Stony Hill Inn, Hackensack April 19 Bank Security Workshop Crowne Plaza Monroe, Monroe Twp. SUN NATIONAL BANK employees present United Way with a donation check for $121,210. Pictured, from left: Rob Crowl, CFO, Sun National Bank, and co-chair, 2011 Sun National Bank United Way campaign; Heather Hardwick, vice president and director of public relations and communications, Sun National Bank, and co-chair, 2011 Sun National Bank United Way campaign; Tom Geisel, president and CEO, Sun National Bank; and John Emge, executive director for United Way of Atlantic County.

TEAM CAPITAL BANK leadership and local dignitaries joined in a ribbon-cutting ceremony for the bank’s newest branch, now open in West Orange. The bank also has offices in Far Hills, Somerville, Flemington, Clinton and Phillipsburg, as well as in the Lehigh Valley and Bucks County, Pennsylvania.

April 26 Annamae Baerenbach Memorial 24th Annual Lending Conference Renaissance Woodbridge Hotel, Iselin May 1 Records Retention & Data Security Seminar Crowne Plaza Monroe, Monroe Twp.

New Associate Members as of February 2012

May 10 Decedents Accounts Seminar Unclaimed Property Seminar Crowne Plaza Monroe, Monroe Twp.

Balance Point Payroll 65 Harristown Road, Suite 208 Glen Rock, NJ 07452 Contact: David Magen Phone: 201-712-1157, ext. 5903 Email: dave@blanacepointpayroll.com

LEW Corporation 1090 Bristol Road Mountainside, NJ 07092 Contact: Joe McGinley Phone: 908-654-8068 Email: jmcginley@lewcorp.com

Diebold 5 Catherine Court Long Valley, NJ 07853 Contact: Scott Stanilious Phone: 908-979-9257 Email: stanils@diebold.com

Loan Value Group, LLC 47 West River Road, Suite B Rumson, NJ 07704 Contact: Bill Garavente Phone: 732-741-7300 Email: bgaravente@loanvaluegroup.com

Helios Capital Advisors 900 Route 9 North, Suite 301 Woodbridge, NJ 07095 Contact: Steven Schultz Phone: 732-362-8282 Email: sschultz@heliosca.com

Newark Alliance 744 Broad Street, Suite 1705 Newark, NJ 07102 Contact: Robert Crawford Phone: 973-960-8240 Email: rcrawford@newark-alliance.org

IOP Communications, Inc. 450 Shrewsbury Plaza, Suite 372 Shrewsbury, NJ 07702 Contact: Mike DeNofa Phone: 732-758-6280 Email: mdenofa@iopcomm.com

Perimeter E-Security 440 Wheelers Farms Road, Suite 202 Milford, CT 06460-9133 Contact: Kelly McDermott Phone: 800-234-2175 Email: kmcdermott@perimeterusa.com

June 26 - 27 Federal Legislative and Regulatory Visit Mayflower Hotel, Washington, DC

The Jordan Real Estate Group 2 Industrial Way West Meridian Center I Eatontown, NJ 07724 Contact: Karen Thoms Phone: 732-440-1763 Email: Karen@thejordangroup.net

Summit International Flooring 19 Alpine Way Livingston, NJ 07039 Contact: David Numark Phone: 973-740-2010 Email: dnumark@summit-flooring.com

September 12 - 14 Annual Senior Management Conference Borgata Hotel & Casino, Atlantic City

38 New Jersey Banker

May 30 - June 3 108th Annual Conference & Trade Show Charleston Place, Charleston, SC June 7 Annual Marketing Conference Crowne Plaza Monroe, Monroe Twp. June 11 Fifth Annual Golf Outing to Benefit Financial Literacy Mercer Oaks Golf Course, West Windsor June 19 Tools for a Compliance Officer Seminar Crowne Plaza Monroe, Monroe Twp. June 20 - 22 Compliance University Crowne Plaza Monroe, Monroe Twp.

August 13 Annual Summer Golf Outing & Networking Reception Fiddler’s Elbow Country Club, Bedminster

October 18 - 19 Annual Human Resources Conference Caesars Resort, Atlantic City

Spring 2012

Managing security systems at the new World Trade Center is more than a challenge. It’s an honor.

Diebold’s security integration connects an array of systems, giving operators unified control and citizens peace of mind. It’s another example of Diebold doing more to build relationships. Relationships that have inspired us to become leaders and innovators in the banking industry for more than 150 years.

For the entire story, visit diebold.com/boldsecurity.

1.800.806.6827 diebold.com requests@diebold.com

THE POWER OF AN ADVANCE

One advance can help fund hundreds of neighborhood needs.

FHLBNY advances are a reliable liquidity source for our member lenders to finance home mortgage, small business, and economic development activities.

Magyar Bank and Metuchen Savings Bank used FHLBNY advances to partake in a loan consortium project from TICIC, Inc., a wholly owned subsidiary of the New Jersey Bankers Association. Funds were used to convert a brownfield site into Berry Street Commons, a multifamily rental apartment complex in Franklin Township, New Jersey. The four-story, 94-unit housing project revitalized the neighborhood and increased the availability of high-quality affordable housing in Somerset County.

Contact us to see how the power of an advance can improve your community.

101 Park Avenue, New York, NY 10178 | (212) 441- 6700 | www.fhlbny.com Note: The Federal Home Loan Bank of New York uses the word “advances� to refer to the loans it provides to our member lenders.