New Jersey Banker Summer 2012

NEW

JERSEY

S U MMER 2 0 1 2

B A N K E R

Annual Conference Coverage

Meet the 2012 – 2013 New Jersey Bankers Association Officers and Board of Directors

How Secure is Secure Enough? | Bank Advisory Board/DOBI | Community Service Awards ENDORSED BY THE NEW JERSEY BANKERS ASSOCIATION

NEW

JERSEY B A N K E R

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

Peter Kenny President/Chief Executive Officer Heritage Community Bank

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

Robert Rey President/Chief Executive Officer NVE Bank

Paul E. Fitzgerald President/Chief Executive Officer First Bank

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

Michael Schutzer President/Chief Executive Officer Harmony Bank

Thomas J. Holt Senior Vice President Bank of America

Anthony Labozzetta President/Chief Executive Officer SussexBank

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

James A. Hughes President/Chief Executive Officer Unity Bank

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

Thomas J. Kemly President/Chief Executive Officer Columbia Bank

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

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 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

Mortimer J. O’Shea President/Chief Executive Officer Hilltop Community Bank

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

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

NJBankers Officers

NJBankers Staff

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

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

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

Kevin Cummings Chairman President/Chief Executive Officer Investors Bank

Stewart E. McClure, Jr. Second Vice Chairman President/Chief Executive Officer Somerset Hills Bank

Robert H. King First Vice Chairman Senior Vice President Roma 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.

Summer 2012 New Jersey Banker

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Table of Contents

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JERSEY B A N K E R

Departments

6 Chairman’s Platform Working Together for an Economic Renaissance 8 From the President's Office Tradition and Change 10 Politics & Policy

Bankers in the Capitol

40 Bank Notes 42 Bank Shots 46 New Members and Associate Members

22 Cover Story: Annual Conference Meet the 2012 – 2013 New Jersey Bankers Association Officers and Board of Directors

46 Upcoming Events

Features

12 Directors' Corner Keeping One Eye on the 800 Pound Gorillas of Corporate Governance 14 Behind the Teller Line Northfield Bank Celebrates 125 Years 16

4

Feature Directors and Managing Officers Conference – Updates on Technology, Social Media and the Economy

New Jersey Banker

18 Feature

Second Annual Women in Banking

Conference Draws more than 415 Participants 26

Community Service Awards Highlighting and Reinforcing the Role of Banks in Local Communities

28

Feature Getting Enterprise Risk Management Out of the Way of Doing Business

30

Feature How Secure is Secure Enough?

34 Feature Banking Advisory Board Provides Valuable Input to DOBI 35

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Chairman’s Platform

Working Together for an Economic Renaissance

By Kevin Cummings

I

t is with pleasure that I welcome you to the summer issue of New Jersey Banker.

I had the honor of participating at our 108th Annual Conference in Charleston, where I was installed as your new chairman. It is with great pride that I accept the privilege to serve this association over the upcoming year.

I am ever Kevin Cummings mindful of the Chairman importance of this President/Chief Executive Officer Investors Bank office and mission of this organization. We are New Jersey bankers, and we believe in the future of our state, as evidenced by our annual conference title, “Economic Renaissance – 2012.” The theme points to the important role that our banks will play in reviving New Jersey’s economy.

Big and small banks, national and local community banks, we are all united in our commitment to serve our communities and to provide the capital so our state economy can grow. While New Jersey’s economy has proved to be resilient in comparison to other parts of the country, our current recovery can use more help from businesses and banks.

Our industry provides a service that is vital to the lifeline of the economy. As my esteemed predecessor Frank Kissel so rightly stated, “We are not the problem, we are an important part of the solution.” Individually and as an industry, we need to become proactive in getting the message out about all of the good things we are doing. There is no credit crunch here. We need to better communicate that New Jersey bankers are committed to our state’s economic growth, and that we have been and continue to be, “open for business.”

Perhaps the best way to show our commitment is through the ongoing support

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New Jersey Banker

of our local neighborhoods. I am proud of what we, as an industry, are doing by sharing our time, talent and resources with communities throughout the state. I wish to congratulate Bogota Savings Bank, Capital One Bank, Century Savings Bank, Columbia Bank, Ocean City Home Bank and Oritani Bank for receiving special recognition at the annual conference in Charleston for their efforts. I hope Investors Bank is on this list next year!

Beyond getting the word out to the residents, businesses and the state Legislature of New Jersey, we need to become more aggressively involved in what is happening in Washington. We need to become engaged in the political process on Capitol Hill. I am asking all of you for your commitment to this task as there is strength in numbers.

This year is especially important, given the presidential election in November. If it were ever important to participate in JEBPAC, 2012 would be the year.

Success with the political process will come with its own set of challenges. As we enter this battle, I recall a statement

by Napoleon Hill, one of the great writers on success, “Great achievement is usually born of great sacrifice, and is never the result of selfishness.” By working together, we can increase our communications with Washington and help them better understand all of the facts. Both sides of the aisle have a tendency to paint ALL banks with a broad brush – one that I as chairman of the New Jersey Bankers Association will work to separate us from and thus restore our good reputation.

Our number-one goal this year is to enhance the image and profile of New Jersey’s banking industry. All of our good work must be spread to each household, community and company in this great state. Our message needs to be loud and clear – we are here to help.

Going forward, we must assume a leadership role and seize the day. Our role with elected officials and government agencies is to encourage more publicprivate partnerships that can foster business development. As the primary source of capital, we can help create more private sector jobs. We can be the engine that drives the improvement in our state economy – an appropriate tribute to our organization’s motto, “With New Jersey Banks, New Jersey Prospers.”

Additional goals for this year include: expanding the membership base at the bank and associate levels; increasing internal communications to better read the pulse of our membership; continuing the enhancements and improvements of our committees and seminars; and accomplishing the most effective resolution of the TICIC wind down.

The tasks that we as New Jersey bankers face ahead are many. None of them will be easy, but all of them are absolutely vital to build a better future. I can only say that my timing could not be better in regards to following in the footsteps of our immediate former chairman. I was blessed to be able to observe Frank’s sound leadership from the sidelines during this past year. I wish to extend my thanks for his service and for all that he accomplished.

While 2012 presents us with an ambitious set of goals, they will only be reached through a commitment from all of you. Let us work together to bring the results that will make a difference to our industry and our economy.

It is time to help our Garden State grow. I look forward to serving all of you during this upcoming year.

■ Kevin Cummings is chairman of the New Jersey Bankers Association and president and chief executive officer of Investors Bank. He can be reached at kcummings@myinvestorsbank.com.

Summer 2012

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From the President’s Office

Tradition and Change

By John E. McWeeney, Jr.

A

s I write this column for the summer edition of New Jersey Banker, I’m struck by the timeless traditions our great industry has upheld while at the same time constantly evolving to meet the needs of a changing world.

NJBankers hosted its 108th annual conference in beautiful Charleston, South Carolina in June. While some of the names of the John E. McWeeney, Jr. banks have changed President/CEO NJBankers over the years (although not all) the tradition of bankers, directors and industry service providers getting together for a few days of education and networking has held strong. In fact, reflecting on the strength and vitality of New Jersey’s banking industry, this year’s annual conference had more than 500 attendees and over 40 exhibitors, as well as a program filled with a powerpacked line up of speakers and hot industry topics.

This year’s conference was a microcosm of the banking industry itself, as it was filled with longstanding traditions, but also new challenges and opportunities that didn’t even exist a decade or two ago.

Among the traditions at the conference are the Former Chairmen’s Dinner, where we pay tribute to past chairmen of NJBankers; the presentation of the Forrey-Gallman Award, which honors an individual who has made outstanding contributions to the banking industry; and the Community Service Awards, which recognize banks in various size categories that have gone above and beyond in serving their communities. It was my great honor

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New Jersey Banker

to present the Forrey-Gallman Award at this year’s conference to Katherine J. Liseno, president and CEO of Metuchen Savings Bank. Kathy has been a dedicated member of the banking industry for over four decades and is very deserving of this honor. We also congratulate Bogota Savings Bank, Capital One Bank, Century Savings Bank, Columbia Bank, Ocean City Home Bank and Oritani Bank on winning the community service awards in their respective categories. All of our members are upholding the longstanding tradition of banks serving their communities.

On the change side of the equation one need look no further than our schedule of breakout sessions to know that some things are not the same. The sessions covered hot new issues such as enterprise risk management, “The Cloud,” guidance for the changing roles of boards and charter choice in the post-Dodd-Frank era. That’s just a small sample of the avalanche of change that bankers are facing today in areas such as legislation, regulation, technology and changing customer demographics and preferences. Our banks in New Jersey are embracing these changes in an effort to serve their customers and provide a return to their stakeholders.

We were also pleased to recognize institutions and bankers that are celebrating milestone anniversaries this year. Congratulations to Northfield Bank, NVE Bank, Ocean City Home Bank and Somerset Savings Bank, each of whom is celebrating their 125th anniversary in 2012. Congratulations also to Cenlar FSB and First Hope Bank on their 100th anniversaries. On the individual side, we have 38 bankers who are celebrating anniversaries of 40 years or more in service to the banking industry in New Jersey.

All of these institutions and individuals represent what banking is all about – dedicated banks and bankers committed to serving their communities, stakeholders and employees. That’s a far cry from the picture some in the media and public arena have painted.

Like our members, NJBankers is also trying to balance tradition with change.

Since 1903 our commitment to serving New Jersey’s banking industry in the areas of advocacy and education has been rock solid. So too is our commitment to be a member-driven organization and no where is that more evident than in the 32 committees that drive our advocacy and education agendas, including our actively engaged 23 member board of directors.

Recent examples of NJBankers’ changing to meet our members’ needs include: new committees for enterprise risk management and CFOs; new programs, like the Economic Leadership Forum and Women in Banking Conference; and even a new format for the weekly Bulletin.

One of the more difficult changes we’re making is the recent decision to discontinue the operations of TICIC. TICIC, under the leadership of Gordon Ur, has been a terrific success story over the past 20 years. Since inception in 1992, the 81 bank participants have closed more than half a billion dollars in loans and created over 6,300 units of housing, primarily affordable to low and moderate income individuals and families. In recent years, though, the market has changed and TICIC has been challenged to generate a sufficient level of business to support the business model. Also, many of our member banks have found alternative tools to help them achieve their CRA goals.

As a result, the TICIC board of directors

Summer 2012

made the difficult but correct decision to discontinue operations. We anticipate closing the operation by the end of 2012 and finding another party to service the loan portfolio. We’ll also work to assist NJBankers members with alternative CRA strategies. We certainly want to thank Gordon Ur for his leadership and effort that made TICIC such a valued service to our members over these years.

Gordon, Lou Bringuier and Denise Robinson have been and continue to be dedicated professionals committed to serving NJBankers members.

In closing, I need to note one other tradition at NJBankers and that’s the changing of the guard of our officers and board of directors. It’s been a great privilege to work with Frank Kissel as our chairman during this past year. Frank is a great banker and a real gentleman.

We thank him for his time and service to NJBankers and also want to extend our appreciation to all of our directors whose term has expired. As we head into our new fiscal year, we welcome our Incoming Chairman Kevin Cummings.

I know Kevin will bring a lot of energy and expertise into this role and the staff and I are excited to work with him. Congratulations also to our other elected officers, First Vice Chairman Bob King and Second Vice Chairman Stew McClure, as well as our newly elected board of directors. We’re fortunate to have so many dedicated bankers who are willing to serve NJBankers and the banking industry.

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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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9

Politics & Policy

Bankers in the Capitol

By Michael P. Affuso, Esq.

O

n March 19, NJBankers Chairman Frank A. Kissel led more than 25 bankers from New Jersey to Washington, DC for the annual American Bankers Association Government Relations Summit.

Highlights of the program included two speeches by future presidential hopefuls, Gov. Mitch Daniels of Indiana, Michael P. Affuso and Sen. Mark WarSenior Vice President/ Director of Government Relations ner of Virginia. Both NJBankers stressed the issue of the ballooning federal budget deficit as the most important issue facing Congress and the nation. Both stressed the need to com-

promise, neither ruling out comprehensive entitlement reform nor tax increases. Both focused on the need to do this in the context of promoting future economic growth.

Rep. Shelley Moore Capito of West Virginia discussed her Exam Relief Bill, cosponsored by Rep. Carolyn Maloney of New York. The bill creates a more evenhanded process concerning exams as well as an ombudsperson to handle complaints.

With ABA support, the bill was part of NJBankers lobbying efforts on the Hill.

NJBankers members visited the entire New Jersey delegation solidifying support for the Exam Relief Bill, as well as the 500 shareholder and municipal advisor bills.

Furthermore, we gave thanks and assured continued vigilance on the credit union business lending bill.

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After a long day on the Hill, our bankers attended a dinner sponsored by Wells Fargo and Riker Danzig. A much deserved thankyou is in order for both.

The summit was capped by a political overview of the 2012 election by Chris Matthews, host of MSNBC’s “Hardball.”

Matthews highlighted the relative calm of the Democrats versus the chaos of the Republicans, clearly a historical anomaly.

He believes that Gov. Mitt Romney will win the Republican nomination and name Ohio Gov. Rob Portman as the vice presidential nominee. He believes that unemployment will be the key factor in the presidential race.

For your information, NJBankers will be going back to Washington on June 26 and 27 for visits with regulators.

With the warm weather, tensions also heat up in Trenton over budget issues.

Gov. Chris Christie proposed a 10 percent across-the-board income tax cut to be phased in over three years. Democrats countered with their own property tax relief proposal. While polling data demonstrates that more people have property tax concerns, the simplicity of the governor’s program makes for an easier sell to the public. Furthermore, the debate has shifted from who should have their taxes raised to who should have their taxes cut. Clearly a sea change is in progress.

The income tax debate was only one portion of the overarching annual intramural on state taxes and spending.

Under the Christie budget, assumed revenue projections are up 7 percent, which Democrats decried as overly optimistic.

The plan calls for spending in excess of $32 billion. Christie has held spending at nearly $30 billion for his first two budgets.

The Christie budget offers tax relief for individuals and businesses and fully funding the state pension obligations for the first time since the mid-1990s.

In addition to the budget, there has been a major improvement in the administration of commercial foreclosures. In 2010, there was approximately a 900-day lag between

Summer 2012

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However, the situation is improving.

NJBankers was pleased to be involved with the Administrative Office of the Courts in the rollout of an electronic filing system. The system was touted to be the key to helping the commercial foreclosure process be completed within a reasonable time. The courts promised an improvement for electronic filers. They delivered.

Currently, the timeframe for a commercial foreclosure which was filed using the electronic filing system will be completed in less than 180 days.

While this improvement is narrowly tailored to only electronically filed commercial foreclosures, we urge our members to avail themselves of the change. We also respectfully suggest that you request that your law firms use the electronic system. We know that the initial rollout is cumbersome and may take additional upfront time, but we can assure you that the investment of time upfront will yield dividends in the amount of days saved on the back end.

NJBankers will also work with the courts and the Legislature to craft a solution to a glacial foreclosure process for abandoned properties. These properties pose an acute public safety risk and create a drag on neighborhood values and esthetics.

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

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Directors’ Corner

Keeping One Eye on the 800 Pound Gorillas of Corporate Governance

By John J. Gorman Public companies are almost through the 2012 proxy season, the annual exercise whereby directors present themselves to shareholders for election and provide detailed proxy statement disclosure of their governance structures and executive compensation. As a result of the Dodd-Frank Act, directors are also required to seek shareholder John J. Gorman approval, on an advisory basis, of the executive compensation programs they have implemented and described in the proxy statement (the “Say on Pay” vote). A board may also need shareholder approval for a particular stock benefit plan they have adopted (for example, a restricted stock and/or stock option plan), or for a particular corporate transaction being recommended, such as a merger transaction.

There is a very influential shadow cast over the shareholder voting process by the proxy advisory firms, most notably ISS (other firms: Glass Lewis & Co.; Eagan-Jones Proxy Services), which in effect rate director performance, critique governance structures, analyze company performance versus “peers” and relative to executive compensation, and issue voting recommendations to their clients, who are voting shareholders in public companies (primarily the institutional and professional investors). The ISS has had a dramatic impact in shaping the governance practices of the largest public companies in the U.S., which are ultimately held out as “best practices” for all companies.

It is important for boards to be informed about the policy positions of ISS as to governance matters and structures in general, and as to Say on Pay, executive

12 New Jersey Banker

compensation and other proposals being presented by the board to the shareholders.

Depending on the composition of a company’s shareholder base, the voting recommendation of ISS can be outcome determinative. At a minimum, an ISS recommendation that is unexpectedly adverse to that of the board can be an embarrassment, can result in unwanted publicity and can even attract the attention of dissident shareholders.

EXECUTIVE COMPENSATION AND SAY ON PAY Say on Pay (SOP) has pushed executive compensation once again to the front and center in terms of governance and shareholder relations, and pay for performance is the governance objective.

Under its updated 2012 proxy voting guidelines, ISS conducts an analysis for SOP to determine the degree of alignment between total shareholder return and the CEO’s total pay rank, both on an absolute basis over the prior five-year period, and relative to a peer group of companies (selected by ISS based on market cap, assets and the GICS industry group) over a one and three-year period. The multiple of the CEO’s pay to the peer group median is also reviewed.

If this analysis demonstrates a significant unsatisfactory pay-forperformance alignment, a further qualitative review is conducted, and the ISS will consider “problematic pay practices,” such as excessive perks or tax gross-ups, new contracts with excessive severance or tax gross-ups, and option repricing. The proxy advisory firms expect “clear and comprehensive” compensation disclosure and a robust and independent compensation committee.

A negative recommendation will result in a lower level of shareholder support and can lead to a failed vote. If SOP receives

less than 70 percent shareholder support, ISS expects changes to pay practices.

A failure to adequately respond could ultimately lead to a recommendation against voting for compensation committee nominees and/or all board nominees proposed by the board.

STOCK BENEFIT PLAN APPROVAL When a board is requesting shareholder approval of a stock benefit plan, the ISS considers the pay-forperformance analysis described above. In addition, the ISS evaluates a company’s three year “burn rate” (the speed with which a company uses – or burns – shares available for grant in their equity plans) and the cost of the proposed plan (together with shares under existing plans), expressed in terms of shareholder value transfer (SVT). These quantitative measures are based on the number and types of shares included in the plan (options versus restricted shares, with a multiplier for restricted shares) and the company’s prior history of share grants.

ISS also conducts a dilution analysis, which compares the company’s total dilution for equity plan shares, which is new shares proposed together with shares available under existing plans and shares subject to awards outstanding, to industry norms (based on GICS groupings). ISS will recommend a vote against a plan if the burn rate or the SVT exceeds company/ industry specific caps. If burn rate alone is a problem, ISS will accept a burn rate commitment that is consistent with the applicable cap.

In determining the number and types of shares to be included in an equity plan, these standards should be taken into account by the compensation committee and board, especially if the recommendation of ISS is likely to have a significant outcome on the voting results.

Summer 2012

ISS also conducts a “qualitative” review of the terms of the equity plan, and will recommend a vote against if the plan: does not expressly prohibit option re-pricing; includes a “liberal” change in control definition; or has other “objectionable” terms reflective of problematic pay practices. A plan can and should be drafted to avoid these objectionable provisions, and doing so does not harm either the board’s goal of providing adequate incentive compensation, or the economic interests of the recipients of the grants.

(For a fee, there is an ISS affiliate that will review a proposed equity plan in advance of its submission to shareholders, and will advise as to whether the plan should pass ISS’ voting standards.)

DIRECTORS INDEPENDENCE AND GOVERNANCE PRACTICES When reviewing the election of directors, the ISS applies a standard of director independence that can be significantly different from the independence standards of the NASDAQ and the NYSE. In this regard, there is an ISS category of a director who is an “affiliated outsider,” which can encompass a director who is considered independent under NASDAQ/NYSE standards. For example, the following are considered an “affiliate outsider” and therefore not independent by ISS: the former CEO; a former CEO of an acquired company within the past five years; a former executive officer of the company within the past five years; a director who has provided professional services, or who is a partner, controlling shareholder or employee of an organization that has provided professional services to the company in excess of $10,000. ISS will recommend a vote against a nominee who is an affiliated outsider if the board does not have a majority of ISS independent directors, or if the affiliate outsider serves on any of the three “key” board committees (audit, compensation, and nominating).

Finally, ISS reviews a company’s governance practices (as disclosed) and assigns governance risk indicators (GRID) scores (low, medium or high continued on page 38

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Behind the Teller Line

Northfield Bank Celebrates 125 Years of Success Now known as Northfield Bank, Northfield has $2.4 billion in assets with 25 branches covering Union and Middlesex counties in New Jersey, Staten Island and Brooklyn.

BRIDGING TO NEW JERSEY

Members of the Northfield Bank team ring the NASDAQ closing bell in November 2011 to kick off the bank’s 125th anniversary celebration.

O

ver 125 years ago, on March 1, 1887, the Northfield Building Loan and Savings Association was approved for operations. The bank was formed in the town of Northfield in the Mariners Harbor section of Staten Island by a group of local business owners to provide

the community with a safe and secure way to save and to promote home ownership.

Northfield has grown steadily over the years and has never lost sight of the rich tradition, history and commitment to the community that was the foundation of the company.

Northfield entered the New Jersey marketplace in 2002 through a merger with Liberty Bank, previously known as Axia Federal Savings Bank. The bank moved its headquarters to 581 Main St. in Woodbridge Township, New Jersey in 2008, and has New Jersey branch offices in Linden, Rahway, Westfield, Avenel, Woodbridge Township, Milltown, East Brunswick and Monroe Township. In addition, a full-service commercial lending team is based in the Avenel location.

The bank continues to expand its footprint, bringing their brand of community banking to new communities. A branch in Union Township, New Jersey, two branches in Brooklyn and one branch in Staten Island are scheduled to open in 2012.

Northfield also expanded via recent acquisitions. In late 2011, Northfield acquired the assets and assumed the deposits of New Jersey-based First State Bank from the FDIC as receiver and, in March 2012, signed a definitive merger agreement to acquire Brooklyn-based Flatbush Federal Savings and Loan Association.

UNITED WITH THE COMMUNITY Northfield understands that a strong community is vital to the financial health of a community bank. The company tag line, “United with the Community,” expresses the bank’s strong belief, supported by commitment throughout the organization, that together with the community they can make their neighborhoods a better place to live and work.

Northfield Bank hosted a medieval-themed family appreciation fair for over 300 families at the Woodbridge YMCA in July 2011.

14 New Jersey Banker

continued on page 21

Summer 2012

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Feature

Directors and Managing Officers Conference UPDATES ON TECHNOLOGY, SOCIAL MEDIA AND THE ECONOMY

W

ith a changing regulatory environment where a bank’s leadership and directors have an ever increasing responsibility for mitigating risk, the Directors and Managing Officers Conference presented updates on technology, the economy and a panel discussing social media.

John McWeeney, Jr., president/CEO, NJBankers, and Frank Kissel, NJBankers chairman, and chairman/CEO, Peapack-Gladstone Bank, presented the NJBankers Service Awards, which recognize years of service to the New Jersey banking industry, to (from left to right): Brian Markey, Glen Rock Savings Bank; Martin Jessen, Metuchen Savings Bank; Agnes Beatty, First Hope Bank; Anthony Schoberl, Community First Bank; McWeeney; Gary Jolliffe, Millington Savings Bank; James Fisher, Sturdy Savings Bank; and Kissel.

also included a panel moderated by Frank Sorrentino, chairman and CEO of North Jersey Community Bank, who led a discussion on the complexities and risks of using social media.

More than 250 members and associate members attended the Directors and Managing Officers Conference at the The panel included Kenneth Greenberg, Renaissance Woodbridge Hotel. president and CEO of Austin & Williams; The conference drew more than 250 Steven Lubetkin, managing partner of Lubetkin attendees to the Renaissance Woodbridge Communications LLC/Professional Podcasts, Hotel in Iselin. Speakers included Thomas LLC; and John Siracusa, president and CEO of Knapp and Ray Oswald of Fiserv, whose mOSa eBank Marketing Services. The social presentation discussed the impact of future media panel generated many questions from bank technologies on the ways that banks will the audience and the panelists touched on conduct business in the future. The program the pros and cons; “do’s and don’ts” and “how to’s” of launching a social media presence. The panel was followed

by Sze Lee, CEO of Social Capital Management, who discussed digital strategies for banks and Gen Y banking behavior.

The conference concluded with an economic update from Robert Albertson, who leads Sandler O’Neill + Partners’ Investment Strategy Group.

This conference is a forum where bank leadership and directors can join together to get Frank Kissel, chairman, NJBankers, and chairman/CEO, Peapack-Gladstone Bank, information on trends affecting addresses the attendees of the 2012 Directors and Managing Officers Conference. their financial institutions. We

16 New Jersey Banker

thank our sponsors: Aetna, Inc.; Community Bankers Association of NJ; Crowe Horwath; Federal Home Loan Bank of NY; The Mercadien Group; and Sandler O’Neill + Partners.

In addition, we thank our endorsed service provider, Constellation Energy, for partnering with NJBankers to offset the expected energy use of the conference, thus “greening” our conference and showing our willingness to help reduce pollution and its demand for building new, clean wind power as a true commitment to environmental responsibility.

■

Martin Jessen, chairman of the board, Metuchen Savings Bank, addresses the attendees with his characteristic and humorous style. Jessen received recognition for serving the New Jersey banking industry for 55 years.

Summer 2012

Thomas Knapp, senior vice president, Fiserv, along with Ray Oswald, vice president, Bank Solutions, FiServ, discussed the future and impact of bank technology at the conference.

Robert Albertson, who leads Sandler O’Neill + Partners’ Investment Strategy Group, presented a timely economic update to help bank leadership and directors guide their banks through trying times.

Sze Lee, CEO of Social Capital Management, presented the “Now and the Future of Technology – Digital Strategies for Banks and Gen Y Banking Behavior.”

Frank Sorrentino, chairman/CEO, North Jersey Community Bank (left) moderated the panel discussion on the complexities and risks of using social media. The panel included, from left to right: Kenneth Greenberg, president/CEO, Austin & Williams; John Siracusa, president/CEO, mOSa eBank Marketing Services; and Steven Lubetkin, managing partner of Lubetkin Communications LLC/Professional Podcasts, LLC.

John McWeeney, Jr., NJBankers president/CEO (left) presents a service award to Anthony Schoberl, member of the board of Community First Bank, to celebrate 50 years of his service to the New Jersey banking industry.

Summer 2012 New Jersey Banker

17

Feature

Second Annual Women in Banking Conference Draws more than 415 Participants

The “Work/Life Integration” panel, moderated by Lucia Gibbons, Wells Fargo Bank, included Cheryl L. Griffith, TD Bank; Margaret Scopelianos, Bank of America; Marian Sorrentino, First Bank; and Dr. Maria Jinks, First Bank and MileStone Bank. The panel discussed the importance of harmonizing one’s work and personal life.

T

he Second Annual Women in Banking Conference, held at The Palace at Somerset Park, attracted more than 415 women who heard from successful women leaders in New Jersey’s financial institutions and affiliated professional groups. This year’s attendance surpassed all goals for the conference which last year drew nearly 230 women from across New Jersey.

Women in Banking Committee Chair and NJBankers Board Member Margaret Lanning, senior vice president and senior regional credit officer, Wells Fargo Bank, explained to media representatives that the “program that we’ve developed this year has been a direct result of the feedback that was received from the previous year’s participants so it is designed by women for women.” Lanning noted that the goal was to create a forum where women in the banking industry could explore the various roles of leadership and mentorship and provide an opportunity to network.

With a continuing theme of “knowledge, leadership and mentorship,” the program featured speakers who are considered in the “top tier” of women in the banking industry.

Celia Moncholi, senior vice president and head of U.S. phone channels for TD Bank was on hand to introduce the keynote speaker, Linda Verba. Presentations were made by keynote speaker Linda Verba, executive vice

18 New Jersey Banker

president and one of the highest-ranking women at TD Bank, and Brigid Moynahan, founder and president of The Next Level, Inc., who provided a hands-on workshop entitled “Unleashing the Power of Women’s Leadership: Building Alliances to Accelerate Success.”

A panel of highly accomplished women discussed the topic of “Successful Leadership in a Changing Environment.” It included Kathleen Waldron, president, William Paterson University; Alison R. Bernstein,

director, Institute for Women’s Leadership, Rutgers University; Janice Ellig, co-CEO, Chadick Ellig, Executive Search Advisors; and Michelle Y. Lee, northeast regional president, Wells Fargo Bank.

After a luncheon, attendees were able to choose one of three concurrent panel sessions: • The “Human Capital: Recruiting, Hiring, Retaining” panel featured Geri Kelly, executive vice president, Columbia Bank, continued on page 20

Linda Verba, TD Bank, shared her challenging journey through her banking career and told attendees that “you can lead from any chair – and, by the way, influence is more important than power.”

Summer 2012

Women in Banking Committee Chairwoman Margaret Lanning, Wells Fargo Bank, applauds the speakers and attendees for making the Second Annual Women in Banking Conference such a success.

Brigid Moynahan gets attendees out of their seats to encourage networking and for building alliances to accelerate success.

Over 415 women from 57 financial institutions attended the second annual Women in Banking Conference. This was nearly twice the amount of attendees at the inaugural conference last year.

From left: Moderated by Kathleen Waldron, William Paterson University, the “Successful Leadership in a Changing Environment” panel included Alison R. Bernstein, Rutgers University; Janice Ellig, Chadick Ellig, Executive Search Advisors; and Michelle Y. Lee, Wells Fargo Bank.

The “Human Capital” panel was moderated by (from left) Geri Kelly, Columbia Bank, with panelists Kimberly M. Vavrence, Wells Fargo Bank; Alethea M. Batts, Bank of America; and Carol B. Diesner, Valley National Bank, who discussed recruiting, hiring and retaining talent.

Summer 2012 New Jersey Banker

19

WOMEN IN BANKING continued from page 19 as moderator; Kimberly M. Vavrence, senior vice president and recruiting manager, Wells Fargo Bank; Alethea M. Batts, senior vice president and consumer market manager, Bank of America; and Carol B. Diesner, first senior vice president and director of human resources, Valley National Bank.

• A second panel, “Work/Life Integration,” was moderated by Lucia Gibbons, regional president, northern New Jersey, Wells Fargo Bank, and included Cheryl L. Griffith, senior vice president and head of government banking, TD Bank; Margaret Scopelianos, senior vice president and treasury solutions executive, Bank of America; Marian Sorrentino, senior vice president and BSA officer, First Bank; and Dr. Maria Jinks, director, First Bank and MileStone Bank (PA).

• The third panel, “Success Characteristics,” was moderated by Katherine Kremins, senior vice president and senior operations officer, Peapack-Gladstone Bank; Dr. Susan Mach, partner, Mach Creative Services; Jane Brody, managing partner, Marcus, Brody, Ford & Kessler, L.L.C.; and Roberta Janel, director, J.H. Cohn LLP. Importantly, the conference also met its goal of enabling attendees to network with other women leaders in the banking industry.

According to Lanning, “the theme of this year’s conference was how to successfully manage and lead during periods of change.

Success can be interpreted in many ways, but it’s really about having options. Not every woman wants to be CEO of her bank, but we’re hoping to create an environment in which every woman has the opportunity and choice.” Plans are already underway for next year’s conference.

NJBankers thanks our Platinum Sponsors, TD Bank and Wells Fargo Bank; Gold Sponsor, Bank of America; Silver Sponsor, Valley National Bank; Bronze Sponsors, JPMorgan Chase Bank, Marcus Brody, Northfield Bank, Peapack-Gladstone Bank; and Patron Sponsors, Buchanan Ingersoll & Rooney, CFT Atlantic & Central States, First Bank, Garden State Community Bank, Somerset Hills Bank, Perimeter E-Security and TimeLine Promotions. We appreciate your support for this major event.

■

20 New Jersey Banker

WOMEN IN BANKING CONFERENCE COMMITTEE MEMBERS The second annual Women in Banking Conference Committee dedicated their time and used their knowledge of women’s challenges in the banking industry to enlist speakers who could address these challenges. The committee’s efforts helped to make this conference even more successful than the inaugural conference. Committee members include:

The second annual Women in Banking Conference Committee members.

Margaret Lanning, Chair Senior Vice President and Senior Credit Officer Wells Fargo Bank, N.A.

Christina Hungrige Senior Vice President and CLO RomAsia Bank

Catherine Brody Senior Vice President JPMorgan Chase, N.A.

Katherine Kremins Senior Vice President and Operations Officer Peapack-Gladstone Bank

Dianne Grenz First Senior Vice President and Director of Marketing and Public Relations Valley National Bank Cheryl Griffith Senior Vice President and Head of Government Banking TD Bank, N.A. Fay Hamid Senior Vice President Garden State Community Bank Lisa Hetfield Interim Director Institute for Women’s Leadership, Rutgers University

Laura McAulay Senior Vice President and Senior Credit Products Officer Bank of America Karen McMullen Senior Vice President and Regional Director CFT Atlantic and Central States Nicole Nielsen Vice President and HR Manager Two River Community Bank Cheryl Patnick President Capella Consultants

Marianne Pugliese Vice President Investors Bank Mary Riccardi CFO Amboy Bank Holly Ryan Vice President of Treasury Management TriState Capital Bank Diane Scriveri Executive Vice President and CLO Bogota Savings Bank Jennifer Simone Senior Vice President and Director of Portfolio Management and Underwriting Somerset Hills Bank Marian Sorrentino Senior Vice President and BSA Officer First Bank

Summer 2012

BEHIND THE TELLER LINE continued from page 14 Northfield Bank and the Northfield Bank Foundation financially support many local organizations, such as the Rahway Hospital Foundation, the Union County Performing Arts Center, CentraState Healthcare Foundation and the Linden Cultural Committee.

Northfield employees often can be found volunteering their time at various charitable events, such as the American Cancer Society Relay for Life and Making Strides for Breast Cancer Walk, the March of Dimes Walk America and the Juvenile Diabetes Walk.

In 2011, Northfield launched their “Banking for a Cause” charitable fundraising program. Each quarter, every branch implements fundraising activities for a designated charitable organization in their market area. By bringing their fundraising activities under the “Banking for a Cause” umbrella, they are able to generate greater awareness and support for local charities.

INNOVATION AND SERVICE Northfield is a full-service commercial bank, offering a complete line of retail and business products and services that include really free checking, free online banking and bill payment, business money market, non-profit checking, and a complete line of personal and commercial lending products. The bank also will be launching an iPhone and Android mobile banking app this summer.

Northfield believes that it is their people and personalized service which sets them apart from the competition.

According to John Alexander, chairman and CEO of Northfield Bank, “Our people are our brand and we believe that when our customers have a problem, and they need our help, it is critical that our employees at the local branch provide that help quickly and in a friendly manner. To us, ‘people helping people’ at a local level is the foundation of superior customer service.”

In addition to traditional banking products, through their partnership with INVEST Financial Corporation, Northfield offers investment and wealth management services for personal and commercial customers. Licensed financial representatives are available in each branch to meet with customers and develop financial plans to meet their individual needs.

Alexander added, “We believe strongly that you should be able to turn to a name you can trust when you need financial information and helpful hints. That is why we offer informational articles and videos provided by Kiplinger Washington Editors on our website, www.eNorthfield.com/learning. Topics include money management, budgeting, buying a home, raising money smart kids, retirement planning and business planning.”

As the celebration of the bank’s 125th anniversary continues, Northfield remains dedicated to bringing its rare mix of exceptional service, innovative products, experienced employees, and community involvement to its customers and the community.

To commemorate its 125th anniversary, the bank launched a special website containing historical information about the bank, a photo archive and collection of logos from the past 125 years. The website can be found at www.eNorthfield.com/125.

■

Summer 2012 New Jersey Banker

21

Cover Feature

Immediate Former Chairman Frank A. Kissel, chairman/CEO, Peapack-Gladstone Bank, joins board members sworn in at the NJBankers 108th Annual Conference. Pictured from left to right: Kissel; Thomas J. Kemly, president/CEO, Columbia Bank; Angela Snyder, CEO/vice chairman, Fulton Bank of New Jersey; Robert Rey, president/CEO, NVE Bank; Peter Kenny, president/CEO, Heritage Community Bank; James P. Genoy, Jr., president/CEO/treasurer, Monroe Savings Bank; Paul Fitzgerald, president/CEO, First Bank; and John W. Alexander, chairman/president/CEO, Northfield Bank.

Meet the 2012 – 2013

New Jersey Bankers Association Officers and Board of Directors 22 New Jersey Banker

More than 525 members, associate members, exhibitors and guests attended the NJBankers Annual Conference in Charleston, South Carolina in May. By all accounts, it was another successful event with noteworthy attendance and distinguished speakers.

Summer 2012

Congratulations to the 2012 – 2013 New Jersey Bankers Association Officers whose terms began on June 2, 2012: Chairman Kevin Cummings President/CEO Investors Bank

Second Vice Chairman Stewart E. McClure, Jr. President/CEO Somerset Hills Bank

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

Many thanks to Frank A. Kissel, chairman/CEO, Peapack-Gladstone Bank, for his service as NJBankers’ 2011 – 2012 chairman.

NJBankers extends its thanks to the following individuals, whose terms have expired, for their service on the Board of Directors: Robert C. Ahrens Peter A. Dontas Former Chairman Bank of America Peter Brown David J. Hemple Former Board Member Century Savings Bank Walter Celuch Stanley A. Koreyva, Jr. Clifton Savings Bank Amboy Bank Joseph Coccaro Margaret Lanning Bogota Savings Bank Wells Fargo Bank Joseph F. Dempsey, Jr. William Moss JPMorgan Chase Bank Two River Community Bank

The 2012 – 2013 NJBankers officers are sworn in. Frank Kissel, 2011 – 2012 chairman (far right) introduces the NJBankers officers to Annual Conference attendees. From left to right: Chairman Kevin Cummings, president/CEO, Investors Bank; First Vice Chairman Robert King, SVP, Roma Bank; and Second Vice Chairman Stewart McClure, Jr., president/CEO, Somerset Hills Bank.

NJBankers welcomes the following individuals who have joined the Board of Directors: John W. Alexander Chairman/President/CEO Northfield Bank (District 2) Paul E. Fitzgerald President/CEO First Bank (Class C) James P. Genoy, Jr. President/CEO/Treasurer Monroe Savings Bank (District 3) Thomas J. Holt Senior Vice President Bank of America (Class E) James A. Hughes President/CEO Unity Bank (District 2) Thomas J. Kemly President/CEO Columbia Bank (District 1)

Peter Kenny President/CEO Heritage Community Bank (Class D) D. Nicholas Miceli Market President TD Bank, N.A. (Class E) Michael Nardo Executive Vice President/NE U.S. Market Executive

Corporate Banking PNC Bank, N.A. (Class E) Robert Rey President/CEO NVE Bank (District 1) Angela Snyder CEO/Vice Chairman

Fulton Bank of New Jersey (Class A)

Outgoing Chairman Frank Kissel, chairman/CEO, Peapack-Gladstone Bank (left) receives a plaque thanking him for his service from Incoming Chairman Kevin Cummings, president/CEO, Investors Bank

The marquee of the Riviera Theater welcomes NJBankers to the Annual Conference.

continued on page 24

Summer 2012 New Jersey Banker

23

Cover Feature CONFERENCE COVERAGE continued from page 23

John McWeeney, Jr., president/CEO of NJBankers, and Frank Kissel, chairman/CEO, Peapack-Gladstone Bank, present the Forrey-Gallman Award to Katherine Liseno, president/CEO of Metuchen Savings Bank, at the 2012 NJBankers Annual Conference.

They will serve along with current board members: Anthony Labozzetta President/CEO, SussexBank (Class B) Gerald H. Lipkin Chairman/President/CEO, Valley National Bank Christopher Martin Chairman/President/CEO, The Provident Bank (District 1) John E. McWeeney, Jr. President/CEO, NJBankers Mortimer J. O’Shea President/CEO, Hilltop Community Bank (District 2) Gerald L. Reeves President/CEO, Sturdy Savings Bank (District 3) Michael Schutzer President/CEO, Harmony Bank (District 2) Robert E. Stillwell President/CEO, Boiling Springs Savings Bank (District 1)

FORREY-GALLMAN AWARD

At the conference, the 2012 ForreyGallman Award was presented to Katherine J. Liseno, president and CEO of Metuchen Savings Bank. The ForreyGallman Award is bestowed upon members that have demonstrated longterm outstanding service to the New Jersey banking industry. It is named for Robert C. Forrey and Emil A. Gallman, longtime chief executive officers of the New Jersey Bankers Association and the New Jersey Savings League, respectively, who inspired association members with their leadership in assuring that members were well represented in the areas of government relations, public relations and educational opportunities.

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Summer 2012

More than 525 members, associate members and guests attended the Annual Conference.

Frank Kissel, immediate former chairman, chairman/CEO Peapack-Gladstone Bank (right) passes the ceremonial gavel to NJBankers Chairman for 2012 – 2013, Kevin Cummings, president/CEO, Investors Bank.

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Feature

NJBankers Community Service Awards

Community Service Awards presentation at the 108th Annual Conference: From left to right: John E. McWeeney, Jr., president/CEO, NJBankers; Bruce H. Dexter, Esq., director, Bogota Savings Bank; Frank A. Kissel, chairman, NJBankers and chairman/CEO, Peapack-Gladstone Bank; Thomas J. Kemly, president/CEO, Columbia Bank; Anthony Rizzotte, executive vice president/CLO, Ocean City Home Bank; Kevin J. Lynch, chairman/ president/CEO, Oritani Bank; and David J. Hemple, president/CEO, Century Savings Bank. Missing from photo – Capital One Bank.

P

articipation in the Community Service Awards program highlights and reinforces the significant role that banks play in the social and economic well-being of our great Garden State.

NJBankers members are a vital part of the communities they serve. The Community Service Awards afford members an opportunity to highlight their institution’s community service initiatives.

Forty-seven NJBankers members participated in the 2011 Community Service Awards. A panel of independent judges who are members of the Public Relations Society of America, New Jersey Chapter, reviewed the entries and six banks received special recognition at the NJBankers 108th Annual Conference in

26 New Jersey Banker

Charleston, South Carolina.

There are six award categories based on deposit size, and members that received special recognition included:

CATEGORY

MEMBER

Large, national banks

Capital One Bank

Deposits over $2 billion

Columbia Bank

Between $1 billion and $2 billion

Oritani Bank

Between $500 million and $999 million

Ocean City Home Bank

Between $300 million and $500 million

Bogota Savings Bank

Under $300 million

Century Savings Bank

Summer 2012

This year, the judges also chose “silver” participants since it was difficult to select just one entry per category. Those receiving silver recognition included:

CATEGORY

MEMBER

Large, national banks

Wells Fargo Bank

Deposits over $2 billion

Investors Bank

Between $1 billion and $2 billion

Peapack-Gladstone Bank

Between $500 million and $999 million

Northfield Bank

Between $300 million and $500 million

Roselle Savings Bank

Under $300 million

Regal Bank

Community participation includes a wide range of activities such as volunteering for, hosting or sponsoring: • Financial literacy programs • Builds for Habitat for Humanity • Local boys and girls clubs, Scouts, Little League, the “Y”s, and so many more • Scholarships and grants for local students • Prevention of identity theft programs and shred days

• Food banks and food kitchens • Donations to countless community groups for their fundraising efforts • Programs for veterans and their dependents • Fundraising for local police, fire and EMS squads • Walks supporting the March of Dimes, American Heart Association; finding a cure for breast cancer, MS, leukemia, diabetes and so many more • Food drives, toy drives, coat drives, drives for school supplies • Programs for senior citizens • And countless other activities to benefit community-based organizations.

NJBankers compiles member submissions into a book that is distributed to key federal and state legislators as well as Garden State media outlets.

NJBankers encourages members to participate in the program and make your service to your communities known. Calls for entries begin in October and will be announced in the NJBankers Bulletin.

Congratulations to all who received special recognition at the conference and to all the silver entries!

■

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Feature

Getting Enterprise Risk Management Out of the Way of Doing Business

By Jack Warnock

W

hen talking to the CEO of any bank about enterprise risk management (ERM), inevitably the mood of the conversation changes, and it is not to one of joy and exuberance.

And regardless of whether the bank has a fully functioning risk team or is just beginning to Jack Warnock form one, the single consistent desire of each CEO is

to have ERM done well and done right, but definitely out of the way of doing the bank’s business. Because, quite frankly, if ERM is done well and done right, it will not be in the way of the bank’s business; it will naturally fit in to it.

So how can that possibly be, you ask? Well, it definitely requires some investment of time, energy and diligence at the start, because while efficient and effective ERM is very doable, it is not easy (nothing this important ever is). So start by getting deep into the fundamentals of ERM practices at your bank. This requires you to ask:

• Who are the people whose job it is to perform ERM assessments, reporting and remediation, if needed?

• Are they the right people (i.e. trusted, trained, savvy and experienced)?

• How do they perform these tasks now, including what tools, techniques and resources are they using?

• Do we get quality business intelligence with our ERM program so that we make clear, quick and correct decisions?

• What do we do and say to make ERM be as second nature for us as lending and deposit taking?

Effective ERM is...

Easy To Get

Economical

28 New Jersey Banker

Reliable

Easy To Understand

Summer 2012

As CEO, the ERM practices that should concern you are the following: • Are the tools that your ERM team depends upon now heavily rooted in Word, Excel or other self-developed formats?

• Are your risk management processes performed by (too) many people in diverse parts of the bank?

• Are your ERM practices driven by lots of outside consulting services?

• Are you using technology that is limited in scope and depth (e.g. vendor management software here, disaster recovery solution there, BSA files someplace else and so forth), all of which is not integrated into a wholly serviceable view of ERM at your bank without lots of laborious effort?

• Is your ERM team just using some simplified measurement and reporting tools that they got via the Internet that are labeled as “ERM?” If this is what you see all around you, how will you ever get ERM out of the way of doing the bank’s business? Can you comfortably say: “We know what and how much all of our significant risk exposures are.” “We assessed them thoroughly, are ready for them, and can remediate them completely should they occur.”

And as you so well know, the pressure (or need) for good and sufficient, safe and sound risk assessments, governance practices and compliance reporting comes from many others like your board of directors, regulators and examiners, senior management and auditors.

So if you could wipe the slate clean and have the best possible ERM solution that is also out of the way of doing the bank’s business, what key characteristics should you want?

Easy to get – It should be really easy to install, learn, use and maintain. It uses what you have already invested in ERM; you just import everything in regardless of its form or source.

Economical – Perhaps right now there are a few key “hot spot” areas in ERM that need to be addressed, or you can only afford so much at the moment. Can you get what you need for now, while the rest of the solution gets added later? Even in fully implemented mode the solution cost should not be much more than the cost of one FTE person (two if your bank is larger). Getting on board should be very flexible from an investment perspective.

Significant improvement – It should be a distinctly deep, complete and integrated solution that ensures that your ERM decisions will be more intelligent, easier, faster and better, and give you and those entities listed in the bullet points above a sharper and truer view into how safe and sound your bank really is.

Easy to understand – That the team can be trained and up and running in 60 to 90 days. That you can get professional risk management experts to help do the initial assessments, most of which will not have to change much, if at all, later on.

“Makes me better” – The access to information gathered into the databases and the ability to dynamically manipulate it gets you many more clear and better assessments, reports and so forth. Be sure that each user can get the right capabilities, as well as knowledge to do their job, service the organization and achieve both personal and organizational objectives – better.

Reliable – Ensure that the stability and reliability of the solution is proven.

Who else is using the solution? Has it met their ERM needs and expectations?

Also, knowing that there is a commitment to continual development and regular upgrading assures that your bank will enjoy a long-lived means of performing ERM. So at this point, what else is in the way today preventing or slowing you from having an ERM solution that will not be in the way of the bank’s business? Maybe the answers can be found in these few questions: • Is there the willingness of senior management and staff to adapt?

• Is there a concern of not doing ERM right or delivering on promises?

• Is there a concern with the compatibility of the old with the new?

• Is this just too much, too soon?

• Is there something else in the way? If yes, then what is it?

Then, like you do with any key decision, you will dig into the details to learn more, have the conversations needed, get the help that is required, and then make decisions that spur positive action and results.

If you approach ERM in this way, you will set up yourself and your bank for success in an area that, when done well and done right, will be definitely out of the way of doing the bank’s business. If ERM is done well and done right, it will naturally fit in.

■ Jack Warnock is business development manager of P&G Associates (www.pgcpa.com), whose services and software solutions enables bank CEOs and their teams to make ERM decisions that are more intelligent, easier, faster and better, and gives them a sharper and truer view into how safe and sound the bank really is. Jack can be contacted at jwarnock@pgcpa.com or 610-564-8456.

Summer 2012 New Jersey Banker

29

Feature

How Secure is Secure Enough?

By Rashaad Bajwa

T

he information security threat landscape changes on a daily basis. How can today’s community and regional banks be proactive in protecting their IT infrastructures and their customers’ sensitive financial information?

Similar to evolution in nature, banks that don’t evolve Rashaad Bajwa fast enough face increasing risks. If they can’t keep up with the changing security threats around them, they may not survive a critical security event. The problem is most banks don’t have a comprehensive view of their IT security

30 New Jersey Banker

practice and an understanding of where they are most vulnerable. Due to regulatory mandates, most have basic safeguards in place and can read off the last IT exam results, but they don’t have a tool to evaluate their true effectiveness or areas where they are still at risk.

To help banks become more self-aware, data security industry experts, RSA and ESG, developed an information security management model, which is split into four phases. The model is designed to help banks find out where they are and to figure out where they want to go in the future to protect themselves. As a bank matures over time in its IT security practice, it will find itself moving through these four phases.

Determining which phase is secure enough for your bank will most likely be a

function of budget and risk sensitivity. It is very important to note that the most secure banks are not necessarily the ones with the most security products. Security is not about a tech soup of software installed in your environment. It is about developing a mature security practice that mitigates risks and provides a reliable and secure IT environment that enables the bank’s business to safely flourish. Following are some observations and insights for applying the model to your bank’s IT security posture based on the experiences of Domain’s engineers in the field.

PHASE 1: THREAT DEFENSE Starting in the 1990s with the Internet and our increasingly connected online world, those of us who are responsible for

Summer 2012

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Defend yourself against advanced threats. domain computer services

Feature securing IT environments have been trying to determine which security solutions provide the best protection. We all started with the basics: antivirus and firewalls.

Most of these are reactive to known threats as we hear about them, or if we are too slow, impacted by them. Over the years the technologies changed and matured and we added more, as budgets allowed or vulnerabilities required. The antivirus category grew to become “endpoint protection” and the firewall category grew to include intrusion protection and content filtering. Every week, a new “must-have” security tool surfaces that is purchased for the toolbelt. Adding security tools, we hope that they work as advertised, keep the bad guys out and make us “secure enough.”

PHASE 2: COMPLIANCE AND DEFENSE-IN-DEPTH Most organizations are in phase 2.

Banks in this phase are generally compliance- and security audit-driven.

In this phase, the primary goal of IT

security is to remain compliant and pass IT exams, where meeting a regulator or auditor’s requirements is the primary focus, not actual security. Think of it as a “check-box mentality.” This is not to say that all organizations in phase 2 are unsophisticated. It’s just that in today’s regulatory environment with limited budgets, resource priorities need to be made. Sometimes all the security that can be afforded is the minimum to keep the regulators at bay and avoid a negative write-up. Some consider staying in phase 2 as being short-sighted. Others consider it survival. If “secure enough” for you is just making sure you pass your IT examination, then your bank is definitely in phase 2.

Phase 2 normally introduces layered security and defense in depth. This builds on the defenses already acquired in phase one and starts introducing layers and controls, such as multifactor authentication, encryption, etc. This creates a more compliant and secure environment.

However, how secure is secure enough?

Reason says: go with the well-known.

Instinct says: go with the know-how.

Are your security measures just for the sake of compliance or is your organization actually secure? When you start to believe that the bank’s security is your organization’s responsibility and not just what the regulators require, you start to move into phase 3.

PHASE 3: RISK BASED SECURITY When the IT security discussion goes beyond which IT checklist requirements have been met, and starts talking about IT risks on an asset-by-asset basis, then you have reached phase 3. In this phase, each IT asset needs to be assigned a value (what data does it hold? Or, what business process is it critical to?) and evaluated independently for all threats and vulnerabilities. The risks for each asset are then accepted, assigned, transferred (perhaps to a third party) or mitigated. This is basic IT risk management.

The hallmark of phase 3 is a more detailed analysis of the entire IT infrastructure. What are the possible risks that may confront each asset and how can

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32 New Jersey Banker

Summer 2012

they be handled effectively and quickly?

This is not a set-it-and-forget-it software application or firewall. This is a real-time evaluation of the threat landscape for a dynamic production environment. On a smaller scale some organizations may use spreadsheets to track risks across IT assets.

However, proper risk management software can obtain data feeds directly from the environment to reflect a real-time view.

PHASE 4: THE BUSINESS ORIENTED PHASE When we started with phase one, we were just desperately trying to add to our defenses and hoping they were keeping the bad guys out. In phase 2, we needed to pass security and regulatory audits, so we started layering our defenses and setting up secure processes and controls. In phase 3, we realized what the regulators were asking for may not sufficiently address the actual risks our organization is facing. Some of what they were asking for may be too much, and some may not be enough. So we evaluated all our assets individually against best

practices, not just if they came up in an IT exam.

In phase 4, we complete the evolution to realize that what we are protecting is not against a specific virus, not just to pass an IT exam and not just to make sure a particular server or router is functional. What we are actually trying to protect is the integrity of our business operations. The “IT risk management model” from phase 3 matures into a “business process risk management model” in phase 4. At the end of the day, after all, our IT infrastructure is not the end, it is just a means. This opens up a much more thorough and detailed level of risk management because the business processes are tracked and evaluated in their entirety, not just the IT assets that support them.

A common problem that is successfully tackled in phase 4, but is sometimes overlooked in phase 3, is asset dependencies. Almost every asset has dependencies because almost every business transaction crosses multiple interconnected databases, application

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servers, service providers or networks. Since the transactions don’t happen on islands, we can’t manage the risk as islands. Server A will likely only work if we have Server B provide authentication services and Server C give the users a front-end to connect into. All of these assets need to be alive, interconnected, and talking to each other properly for the business process to survive.

When evaluating whether the risk has been mitigated, it requires end-to-end testing across the entire business process.

We don’t just want to see that the server is on and the data is there, we want to make sure it is secure, that we can log in successfully and actually get work done. For many banks, this holistic view across the entire business process found in phase 4 is the final answer to what it is to be “secure enough.”

■ Rashaad Bajwa, CISSP, is the president and CEO of Domain Computer Services, Inc. He can be reached at rashaad@computerhelpnj.com or 609-395-6900.

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33

Feature

Banking Advisory Board Provides Valuable Input to DOBI

T

he Banking Advisory Board was founded in 1948 and advises the Department of Banking and Insurance (DOBI) on banking matters, legislation and procedures. The board provides valuable input and advice on banking issues and overall economic issues facing the state.

Advisory board members bring a wealth of experience from the banking and business community and are an important resource for DOBI. They serve an important function, informing the department of trends and what is happening in the “real world.”

The Banking Advisory Board assists DOBI in many areas, such as advising on legislation – whether under consideration or as participants in rulemaking and stakeholder meetings. It also provides feedback on current economic trends. Board members also receive

timely reports on the “state of banking,” including DOBI staffing trends, initiatives and regulatory changes.

The board consists of nine members appointed by the governor with the advice and consent of the Senate. The chairman is the Commissioner of the Department of Banking and Insurance, but leadership is delegated by the commissioner to Nancy E. Graves, assistant division director, NJ Department of Banking and Insurance, Division of Banking – Depositories, who develops the agenda for meetings. Of the nine appointed members, at least six have, at minimum, five years of experience as an active executive officer in a banking institution or savings and loan association. Three members of the board are public members who are not salaried officers, directors or employees of any financial

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institution. Members of the board serve four year terms and serve without compensation.

The board includes representation for financial institutions located throughout the state. Of the six financial institution members, at least one represents savings banks, another represents a bank located in the Second Federal Reserve District, at least one represents banks located in the Third Federal Reserve District and yet another represents savings and loan associations.

Presently, Gov. Chris Christie’s appointments to the board include: James Hyman, president and CEO of Hopewell Valley Community Bank; Peter A. Inverso, president and CEO of Roma Bank and a former New Jersey State Senator; William D. Moss, president and CEO of Two River Community Bank; Gerald Bedrin of the Bedrin Organization; and the reappointment of long-time board member Mortimer O’Shea, president and CEO of Hilltop Community Bank. Other long-term board members include Frank A. Bolden, retired vice president of Johnson & Johnson, and Victor Richel, president and CEO of the Richel Family Foundation. The governor has nominated Raymond G. Hallock, who recently retired as president and CEO of Columbia Bank. Hallock’s nomination is subject to a consent vote in the Senate Judiciary Committee and a vote by the full Senate.

John E. McWeeney, Jr., NJBankers president and CEO, and Michael Affuso, NJBankers senior vice president and director of government relations, attend Advisory Board meetings on behalf of the industry.

The administration’s pro-business message is championed by the Banking Division, which aims to increase outreach to the banking community. For more information or to provide input on banking matters, contact Nancy Graves, assistant division director, NJ Department of Banking and Insurance, Division of Banking – Depositories at nancy.graves@dobi.state.nj.us, or 609-341-2521.

■

Summer 2012

Meet Our Endorsed Service Provider

Financial Literacy 2.0: NEW MODEL FOR EDUCATING CHILDREN AND YOUNG ADULTS IN PERSONAL FINANCE

T

he need for technology-based financial education that truly engages a generation of digital natives – who have a high bar for how they receive information – is one of the most important educational and social issues of our day. Year after year, hundreds of thousands of young adults across the country are graduating from high schools and colleges without the skills, training or tools necessary to manage and navigate the myriad of financial decisions in front of them.

Credit card bills, debt, saving and investing are not top of mind for most high school students, yet the financial decisions they make today will have long-term effects on their lives. Poor financial awareness jeopardizes teens’ ability to succeed in today’s complex and competitive environment.

In this economy, students nationwide are experiencing greater financial stress and a real need for preventive financial education.

Financial illiteracy isn’t new, but the consequences are more severe than ever with bankruptcies, student loan defaults and credit card debt at an all-time high. High school seniors scored just 48 percent on a recent national financial literacy test conducted by the Jump$tart Coalition. The survey also found that: • 32 percent of high school seniors use credit cards, but more than half of these students did not know that paying off a credit card more slowly will result in higher finance charges.

• 83 percent of high school seniors did not know that stocks are likely to yield higher returns than savings bonds, savings accounts and checking accounts over the next 18 years.

• 64 percent of high school seniors did not know that a house financed with a fixedrate mortgage is a good hedge against a sudden increase in inflation.

When we founded EverFi, our goal was to reach these students through sound pedagogy while engaging the private sector and putting

them on the forefront of technology and education. EverFi is an education technology company that provides valuable content in areas such as financial literacy, student loan management, digital literacy and other key life skills for the 21st-century learner. Its award-winning, proprietary software-asa-service platform is designed to provide a highly interactive experience for students and features the latest in technology and instructional design including rich media, 3D simulations, social networking and adaptive pathing. The EverFi curriculum teaches, assesses and ultimately certifies students in over 600 core financial topics.

Through our funding model, these platforms are underwritten by corporations and foundations, allowing them to be free to schools and budget neutral to states.

Our products are free to K-12 schools and underwritten by bank partners who buy licenses for the use of our software and are able to white-label and customize the portal.

This unique public-private partnership gives banks the opportunity to meet their social responsibility, marketing, regulatory or customer acquisition objectives in a way that serves the needs of students, families, schools and communities.

Financial illiteracy is on the verge of reaching epidemic proportions, yet ironically, the American public tends to segment this and other social problems away from the issues that entrepreneurs typically go after.

Whether it’s poverty, financial illiteracy, obesity or disease eradication, there is often a belief that non-profits or non-governmental organizations will be the ones to step in.

EverFi has a different point of view.

We believe there is a unique place for innovation and entrepreneurship in these social dilemmas. The private sector is ready and willing to help. More and more financial services companies are looking to incorporate financial education into their products to teach consumers about mortgages, credit cards, and other accounts. And since most public schools do not have the fiscal resources

to fund financial literacy education, EverFi is partnering with these companies and organizations like the New Jersey Bankers Association to create an entirely new system to drive innovation in public schools.

The company will be operating in over 3,000 schools and colleges in all 50 states this year. The program has been received with enthusiasm throughout the country by schools, legislators, families and students.

Our partners have felt the same enthusiasm in leading their community in an important initiative to help produce a more informed, financially-equipped generation of students and community members.

By leveraging technology in innovative ways in the classroom, EverFi platforms are educating children and teens on critical concepts that they will carry throughout their lives.

Interested in sponsoring the EverFi Financial Literacy platform for the schools in your community? Contact Ryan Swift at 202251-2400 or via email at ryan@everfi.com. ■

ABOUT EVERFI, INC. EverFi is the leading education technology platform to teach, assess and certify students in critical skills that states are mandating and employers are demanding, including financial literacy, student loan management, digital literacy and responsibility, substance abuse prevention, and additional platform areas to be announced in 2012. The company is powering a national movement in 50 states and over 3,000 schools and colleges.

EverFi teams with major corporations and foundations to provide the programs at no cost to schools. In September 2010, EverFi raised $11 million from New Enterprise Associates, Allen and Company, Tomorrow Ventures, the investment vehicle for Google Chairman Eric Schmidt, and leading CEOs such as Michael Chasen of Blackboard. Learn more at www.everfi.com.

Summer 2012 New Jersey Banker

35

Feature

Gonzalez Provides Lessons for Borrowers, Lenders

By Michael R. O’Donnell, Ronald Z. Ahrens and Anthony Valenziano

I

n Gonzalez v. Wilshire Credit Corporation, 207 N.J. 557 (2011), the New Jersey Supreme Court extended the reach of the New Jersey Consumer Fraud Act, N.J.S.A. 56:8-2 (CFA) to cover deceptive practices in connection with a post-foreclosure settlement agreement.

In Gonzalez, the plaintiff, a nonEnglish speaker with an elementary school education, brought suit Michael R. O’Donnell against Wilshire Credit Corporation as loan servicer and U.S. Bank as lender under the CFA, alleging that Wilshire, in recasting her loan as part of a settlement agreement on two separate occasions, violated Ronald Z. Ahrens the CFA when it included additional hidden charges and miscalculated the amounts due on her loan in the settlement agreement.

Beginning with the proposition that the CFA was intended Anthony Valenziano to be interpreted broadly, the court stated that the CFA covers deceptive practices in connection with the “subsequent performance of the extension of credit.” (Id. at 577.) Thus, “collecting or enforcing a loan, whether by the lender or its assignee, constitutes the ‘subsequent performance’ of a loan, an activity falling within the coverage of the CFA.” (Id. at 577-78.)

The court characterized the first and second agreements between the plaintiff and Wilshire as “nothing more than a

36 New Jersey Banker

recasting of the original loan.” (Id. at 580.) In analyzing the nature of the subsequent postforeclosure agreement, the court rejected the defendant’s argument that the loan merged into the final foreclosure judgment, stating that the “presumption of merger” yields to equitable considerations and the conduct alleged precluded the defendant from arguing that the post-judgment agreements were not attempts to recast the loan. (Id. at 580-81.) The court held that regardless of whether the loan “merged” upon foreclosure, “the post judgment agreements, standing alone, constitute the extension of credit, or a new loan.” (Id. at 581.) Integral to the court’s finding was that the lender treated the agreement as an extension of the loan versus a pay-off of the foreclosure judgment. For example, the lender sought the note’s rate of interest (11.25 percent) rather than the judgment rate. (See Id.) The court also noted that the defendant’s practices should not be immune to the protections of the CFA in light of the “unprecedented foreclosure crisis” and the fact that it is often the poor and uneducated who are the victims of predatory lending schemes. (Id. at 582.) As such, the CFA provides attorneys incentive to take on these cases where the client may not be able to afford an attorney. (Id. at 584-85.)

The court also rejected the argument that permitting a party to pursue a CFA claim in connection with a post-foreclosure settlement would curtail commerce as other business activities subject to the CFA have not suffered due to its protections. (Id. at 586.)

When considering the plaintiff ’s allegations, the court seemed particularly troubled by the fact that the plaintiff was unable to speak English and possessed only an elementary school education, something that Wilshire was aware of when it entered into the settlement agreement with the plaintiff. (Id. at 583.) “The victims of these unsavory practices are most often the poor

and uneducated, in many circumstances those with little understanding of English, and therefore the ‘need’ for the protections of the CFA is ‘most acute’ in such cases,” according to the court. Also troublesome to the court was Wilshire’s decision to directly contact the plaintiff when it had been aware for over a year that the plaintiff was represented by a legal services attorney in connection with the foreclosure proceedings.

(See Id.) Based on these facts, the court held that the “post-foreclosure judgment agreements in this case were both in form and substance an extension of credit to plaintiff originating from the initial loan” and subject to the protections of the Consumer Fraud Act. (Id. at 563.) The court was careful to limit its holding to “postforeclosure-judgment agreements involving a stand-alone extension of credit,” i.e., a forbearance agreement. It expressly stated that the CFA does not apply to all settlement agreements in general. (Id. at 586.) Further, the decision in Gonzalez appears limited to the situation where a settlement agreement in a foreclosure proceeding results in a forbearance or loan modification agreement.

When rendering its opinion, the court also completely side-stepped the New Jersey Bankers Association’s argument that expanding the CFA to include postforeclosure judgment settlement agreements would cause confusion in the New Jersey judicial system because foreclosure actions are required to be filed before the Chancery Division, while CFA actions would be able to be brought in the Law Division.

As a result, absent contractual provisions to the contrary, lenders and servicers will now be subject to Law Division jury trials regarding CFA claims related to foreclosure modifications and settlements.

Given the holding in Gonzalez, lenders should, nonetheless, be particularly continued on page 38

Summer 2012

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Feature GONZALEZ

DIRECTORS' CORNER

continued from page 36

continued from page 13

concerned about potential exposure to consumer fraud claims in connection with loan work-outs and post-foreclosure settlements, which carry significant statutory damages (i.e., treble damages and attorneys’ fees). Gonzalez makes clear that the New Jersey judiciary will view any inequitable or deceptive behavior with great skepticism. In order to avoid the taint of a CFA violation, lenders would be well-advised to review their foreclosure settlement practices.

Among other things, lenders should consider the following: Have a clear, explainable rationale for the terms of the pre- and post-settlement or loan modification. The court in Gonzalez was disturbed by the fact that Wilshire was unable to explain to the plaintiff how it arrived at the amounts owed in the settlement agreement. Indeed, the court expressly noted the fact that Wilshire was unable to explain how it had arrived at the arrearages figures in the agreement, and could not explain how the plaintiff ’s loan was not current given the excess payments the plaintiff had made. Thus, a lender should take care to ensure that the terms (including the payment amounts) of a settlement are understandable.

Do not charge fees that cannot be justified: The court described the plaintiff ’s experience with Wilshire as a “credit merrygo-round, a never-ending ride driven by hidden and unnecessary fees that would keep her in a constant state of arrearages.”

(Id. at 583.) There, the court also highlighted payments for homeowners’ insurance that the plaintiff was required to make even though the plaintiff carried proper insurance, and the fact that the arrearages previously due in the foreclosure action, were nearly 40 percent less than what Wilshire calculated was due under the settlement agreement. (Id. at 581.) Thus, a lender must avoid charging unnecessary and/or duplicative additional fees that substantially increase the amount previously due on the loan prior to the foreclosure proceedings or risk a similar CFA claim against it.

Highlight any new or additional charges for the borrower in the settlement agreement from his or her original loan: Again, the

38 New Jersey Banker

court in Gonzalez was greatly concerned with hidden or unnecessary fees. (Id. at 583.)

A lender should make sure the borrower is aware of how the settlement agreement may change the way his or her loan is calculated, including any new additional fees to which the borrower was previously not subject.

Work through borrower’s counsel whenever possible. Given the plaintiff ’s lack of education and inability to read or speak English, the court highlighted the fact that Wilshire did not work through her counsel, who represented the plaintiff in the foreclosure action, to discuss the purported arrearages. When a lender is aware that the borrower has counsel, especially in a postforeclosure settlement situation, it should take pains to speak with the borrower’s counsel first regarding arrearages or other issues that arise in connection with the settlement agreement.

Carefully consider whether a settlement is the best solution. While the preferred course is to settle foreclosure matters rather than enforce a foreclosure judgment, carefully consider whether a settlement with a particular borrower makes sense or leaves open the possibility of legal claims later. With the court’s recent decision in Gonzalez, borrowers or certain counsel may automatically resort to filing claims under the CFA after settling a foreclosure action as a way to avoid further foreclosure due to their failure to adhere to the terms of the settlement.

Know your servicer. Lenders will likely be held liable for the violations of the CFA by their loan servicers. Thus, lenders should be aware of – and be comfortable with – their servicer’s practices.

■ Michael R. O’Donnell, a partner in the Commercial Litigation Group of Riker Danzig Scherer Hyland & Perretti LLP, has extensive experience in commercial litigation for title companies, financial institutions and insurance companies. Ronald Z. Ahrens is counsel in Riker Danzig’s Commercial Litigation Group, handling a wide variety of complex litigation matters.

Anthony Valenziano is an associate at Riker Danzig, where he practices in the Commercial Litigation Group.

concern).

Although these ratings are not determinative of any voting recommendation, they are taken into account on a case by case basis and can be influential if there are other indicators of problems as to any proposal. There are numerous policies that a board should consider for adoption that reflect common sense good governance, and that can also positively affect the governance ratings.

Among these are the following: clawback policy (requiring repayment of incentive compensation if based on incorrect and restated financial results); anti-hedging policy (prohibiting a director or executive officer from effecting any transaction designed to hedge or offset the economic risk of owning the company’s common stock); adopting board governance principles (its governance framework); and a stock ownership guideline for directors.

Sometimes the ISS has their facts wrong, or have selected an inappropriate peer group, and sometimes companies have effectively rebutted the conclusions of the ISS as to SOP, pay for performance and/ or other proposals presented. Whether the proxy advisory firms should have the influence that they do, whether they abide by the standards of accountability and transparency that they preach, and whether their influence is for the better in the long run, are legitimate topics for debate. But their influence is a fact, and as with other issues, the well-advised board can and should be prepared and pro-active rather than defensive and reactive.

■ John J. Gorman is a partner in the Washington, DC-based law firm of Luse Gorman Pomerenk & Schick P.C., and regularly advises management and boards of directors in connection with public and private offerings of securities, merger and acquisition transactions, proxy and annual meeting regulation, corporate governance matters, and executive compensation. He is a faculty member of the National Association of Corporate Directors and served as a commissioner on the NACD Blue Ribbon Commission on Board Leadership. He can be reached at jgorman@luselaw.com or 202-274-2001.

Summer 2012

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Bank Notes

Karen A. Casey

Timothy Matteson

James E. Kirkpatrick

AMBOY BANK Karen A. Casey was named senior vice president and chief credit officer by Amboy Bank. Casey joined Amboy Bank in 2009 as vice president and chief risk officer. Casey, a Certified Financial Planner and Certified Public Accountant, holds a bachelor’s degree from The Bernard M. Baruch College of the City University of New York. She is the chairperson of the New Jersey Bankers Association ERM Committee.

BENEFICIAL BANK Beneficial Bank has promoted four senior management team members and has added another senior position. The bank has promoted Martin Gallagher to executive vice president and chief credit officer; Robert Maines to executive vice president and director of operations; Joanne Ryder to executive vice president of brand, strategy and human resources; and Joseph Robinson to president of Beneficial Advisors. In addition, the bank has hired James Tyrrell as senior vice president of commercial lending.

Gallagher holds a master of business administration in finance and a bachelor’s degree from St. Joseph’s University.

Maines holds a bachelor’s degree from the University of Delaware. Ryder holds a bachelor’s degree in communications from Penn State University.

Robinson currently serves as president of Beneficial Insurance Services and will also oversee Beneficial Advisors, a wealth management subsidiary of Beneficial Bank.

He holds a master’s degree from Widener University and a bachelor’s degree from Penn State University. Tyrrell holds a bachelor’s degree from St. Joseph’s University.

BOILING SPRINGS SAVINGS BANK Boiling Springs Savings Bank has been named as one of the Best Places to Work

40 New Jersey Banker

Anthony W. LaMarca

Joseph C. Tkac

Deborah J. Martino

by NJBIZ. The Best Places to Work in New Jersey awards program identifies, recognizes and honors the top places of employment in New Jersey that benefit the state’s economy, its workforce and businesses. The program is made up of 100 companies, of which Boiling Springs was the only bank listed for this prestigious award.

Companies from across the state entered the two-part process to determine the 100 Best Places to Work in New Jersey.

The first part consisted of evaluating each nominated company’s workplace policies, practices, philosophy, systems and demographics. The second part consisted of an employee survey to measure the employee experience. The combined scores determined the top companies and the final ranking.

We congratulate Boiling Springs Savings Bank for their success.

NEW JERSEY CHAMBER OF COMMERCE The New Jersey Chamber of Commerce has named NJBankers President and CEO John E. McWeeney, Jr., JPMorgan Chase Bank President and NJ Middle Market Executive Joseph F. Dempsey, Jr. and Capital One Bank Market Executive William Johnston to the Chamber board of directors.

According to Tom Bracken, president and CEO of the New Jersey Chamber of Commerce, “These talented business leaders strengthen our already formidable board of directors that is helping guide the Chamber in its effort to build and maintain a prosperous New Jersey. We welcome them and we are fortunate to have them.”

The NJ Chamber board has 75 members and has more than 1,200 member companies and associations representing 500,000 employees and billions of dollars in annual revenue.

Sam Mathew

James Christy

COLUMBIA BANK Alex Grinewicz has been appointed senior executive vice president and chief operating officer of Columbia Bank.

Grinewicz joined Columbia Bank in 1986 as a commercial lender and was promoted to senior commercial lending officer a year later. He was later promoted to vice president of loan review, to director of internal loan review and to vice president and commercial lending officer. Grinewicz became vice president of special assets in 1991 and was appointed executive vice president and chief lending officer in 2001.

LAKELAND BANK Timothy Matteson has been promoted to executive vice president and general counsel. Matteson joined Lakeland Bank in September 2008 as senior vice president and general counsel. In May 2011, he was appointed corporate secretary for the board of directors and is chairman of the bank’s Enterprise Risk Management Committee.

Prior to joining the bank, he served as counsel at Summit Bank, senior attorney at TD Banknorth, assistant general counsel at Israel Discount Bank, and as general counsel at Hudson United Bancorp.

PENTEGRA RETIREMENT SERVICES Fabrizio D’Uva will serve as a consultant for the firm’s supplemental benefits and bank owned life insurance (BOLI) business.

D’Uva brings more than 11 years of industry expertise to the firm. D’Uva is a graduate of the University of Connecticut in Storrs, Connecticut, where he earned a bachelor’s degree in 2000.

ROMA BANK James E. Kirkpatrick has been appointed senior vice president and chief lending officer.

Summer 2012

A graduate of Albright College, Kirkpatrick brings over 28 years of commercial lending experience to the Bank.

He will assume full responsibility for leading and directing Roma Bank’s commercial loan department and its commercial lending activities.

SUN NATIONAL BANK Anthony W. LaMarca has been named senior vice president and wholesale regional manager for the South Jersey and Philadelphia markets. LaMarca has been in commercial banking for more than 25 years, including over 20 years of serving middle market businesses in the Delaware Valley.

LaMarca holds a bachelor’s degree from Northeastern University in Boston.

LaMarca will operate out of Sun’s executive offices in Mount Laurel, NJ. Joseph C. Tkac has been named senior vice president and manager of commercial real estate. Tkac has been in commercial real estate lending for more than 25 years

and has a track record of success building and managing large loan portfolios for commercial and residential real estate clients.

Tkac will be located in Sun’s Edison office. He earned a bachelor’s degree in economics from Tulane University in New Orleans.

TD BANK Deborah J. Martino has been promoted to vice president and retail market manager for southern Gloucester, Cumberland and Salem counties. Martino will direct business development, sales management and employee development at 17 TD Bank stores throughout the region.

She has held increasingly more senior roles since joining TD Bank in 1999, focusing on contact center operation and customer experience management.

Sam Mathew has been promoted to vice president, portfolio manager in commercial lending in Ramsey. He will provide analysis,

credit underwriting and all relevant due diligence to help grow a portfolio of commercial loans serving clients throughout the Palisades/North Passaic Region in northern New Jersey. Mathew has 15 years of banking experience, primarily in commercial lending. He is a graduate of the University of Kerala, Trivandrum in Kerala, India.

THE PROVIDENT BANK James Christy has been named chief risk officer. In this role, he coordinates the bank’s enterprise risk management efforts and oversees the bank’s internal audit department.

Christy joined Provident in 2001 as vice president and general auditor. He is a certified public accountant, a certified financial services auditor and a certified bank auditor. Christy holds a bachelor’s degree in economics from Georgetown University and a master’s degree in public accounting from Fordham University. ■

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Summer 2012 New Jersey Banker

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Bank Shots

THE PROVIDENT BANK – Chris Martin, chairman, president and CEO of The Provident Bank, was recently honored with a Distinguished Service Award from Habitat for Humanity of Hudson County at the seventh annual Builder of the Year awards dinner at Casino-In-The-Park in Jersey City. Pictured at the awards dinner, from left to right, are: David Donnelly, president of Habitat for Humanity of Hudson County and senior project manager at United Way of Hudson County; Benjamin Dineen, director of resource development and marketing, United Way of Hudson County; Paul Silverman, principal, Silverman; Martin; and James Meredith, executive vice president and COO, NJBankers.

FIRST HOPE BANK celebrated its 100-year anniversary at a reception at the Hope office, which featured an anniversary cake from Carlo’s Bakery, featured on TLC’s “Cake Boss,” and a historical look back at the last 100 years.

THE OCEANFIRST FOUNDATION of Toms River has awarded $25,000 to Catholic Charities, Diocese of Trenton, for its Caring Cupboard food pantry. This grant will provide food to families in need residing in Ocean County. Pictured, from left: Sr. Joanne Dress, D.C., executive director, Catholic Social Services, Diocese of Trenton; Katherine Durante, executive director, OceanFirst Foundation; Marlene Laó-Collins, executive director, Catholic Charities, Diocese of Trenton; Vito Nardelli, president and chief operating officer, OceanFirst Bank; Rev. David M. O’Connell, bishop of Trenton; and Jackie Edwards, director, Catholic Charities’ Emergency & Community Services.

KNOWLEDGE IS THE BASIS OF SOUND ADVICE. TWENTY YEARS OF EXPERIENCE TELLS US SO. As an advisor to financial companies nationwide for more than two decades, Sandler O’Neill’s knowledge and insight have served clients well in bull and bear markets alike. The depth of experience gives our firm a unique perspective on how financial companies can best position themselves in the current environment.

Sound, straight-from-the-shoulder advice – it’s what we do best.

To learn more, please contact Fred D. Price, Managing Principal, at 800.635.6855, or visit www.sandleroneill.com.

Sandler O’Neill + Partners, L.P.

42 New Jersey Banker

Summer 2012

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Bank Shots

Lakeland Bank employees donated a total of $2,758 to Meals on Wheels through the company’s monthly “Jeans Day” fundraiser, where employees are permitted to wear jeans on Fridays in exchange for a charitable donation of $10 or more per week. Meals on Wheels provides nutritious meals and other supportive services to both the homebound and senior nutrition center participants. Pictured, Lakeland Bank Branch Manager Mike Ruiz (center) stands with team members, from left, Shawnta Jones, Winifred Reinhardt, Myrle-Ann Cherry and Kelly Lallave.

INVESTORS BANK – The Point Pleasant community enjoyed fun activities during the recent grand opening of the newest Investors Bank branch. There were games, giveaways and a drawing for one of three iPads. In addition, an artist sketched caricatures, there was a photo booth, and children made sand art items. Pictured, from left: Brian Alvarez, member, Point Pleasant Chamber of Commerce board of directors; Eileen McCabe, executive director, Point Pleasant Chamber of Commerce; Cliff Van Nest, leading knight, Elks Lodge #1698; Darlene Garris, EMT, First Aid Squad; Robert Sabosik, Point Boro council member; Corporal Jeannette Schlapfer, First Aid Squad; Antonio DePaola, Point Boro council member; Assemblyman David R. Rible; William G. Schroeder, mayor, Point Boro; Laura Mashnik, assistant branch manager, Investors Bank; Dominick Cama, senior executive vice president/COO, Investors Bank; John Nietzel, senior vice president, Investors Bank; Charlene Archer, branch manager; Victoria Magliacane, regional manager; and Kathleen Mead, market manager.

That’s confidence through clarity.

They had the right mix of solid experience and knowledge of banking operations that kept my institution ahead of the industry.

We make it a priority to monitor legislative and regulatory changes as well as economic trends that influence your day to day business. Our 200 financial institution clients include de novo banks to multi-billion dollar asset bank holding companies.

See what we can do for you.

Audit | Accounting | Tax | Business Advisory ParenteBeard.com © ParenteBeard LLC

44 New Jersey Banker

Summer 2012

KEARNY FEDERAL SAVINGS BANK – The Old Tappan office of Kearny Federal Savings hosted The Northern Valley Rotary Club Business Networking Event. Speakers answered questions from the audience regarding short and long term financing. Kearny Federal holds the distinction of SBA Preferred Lender for small businesses considering a commercial loan to expand their activities. Pictured, from left: Linda Hanlon, vice president and director of retail banking, Kearny Federal; Emil Geering, Rotary district governor; Donald Humpreys, president, Northern Valley Rotary; Santos Murillo, executive director, Habitat for Humanity, Hudson County; Guy Carnazza, Old Tappan councilman; Vince Micco, vice president and director of sales, Kearny Federal; and Dawn Marcano, assistant vice president and Old Tappan branch manager, Kearny Federal.

PASCACK COMMUNITY BANK celebrated the grand opening celebration and ribbon-cutting of their new corporate offices and seventh branch, located in Waldwick. Pictured, from left: George E. Niemczyk, executive vice president, chief operating officer and chief financial officer; Erica Tilstra, assistant branch manager; Michele Calise, branch manager; Bruce M. Meisel, president and CEO; Lt. Gov. Kim Guadagno; Thomas Giordano, mayor of Waldwick; Jon F. Hanson, chairman of the board; Diana L. Hoppin, regional manager; and Michael Kurzawski, executive vice president and chief lending officer.

New Jersey Bankers Association members receive an additional 5% discount* on New Jersey car insurance through Plymouth Rock Assurance.

NJBA members understand the value of savings and service excellence. Plymouth Rock works with you to customize an auto insurance policy specifically to fit your needs. Peace of mind and money in your pocket — that’s more than just insurance.

Call 1-800-625-8903 or visit www.NJBAQuote.com today for your free quote and special 5% discount for NJBA members.

A member of

* Discount only applies to new and renewal policies originally written on or after 06/04/07 in High Point Property and Casualty Insurance Company. If the discount is not currently applied, it may be added upon request.

May not be combined with any other group discounts. Other restrictions may apply. Offer available to New Jersey residents only. Insurance offered by Plymouth Rock Management Company of New Jersey under the brand name of Plymouth Rock Assurance. Policies underwritten by High Point Property and Casualty Insurance Company. PR/13/KG/2011

Summer 2012 New Jersey Banker

45

Bank Shots Upcoming Events August 13 Annual Summer Golf Outing & Networking Reception Fiddler’s Elbow Country Club, Bedminster September 12 – 14 Annual Senior Management Conference Borgata Hotel & Casino, Atlantic City October (date TBA) Annual Bankers’ Legislative Day in Trenton Trenton October 18 - 19 Annual Human Resources Conference Caesars Resort, Atlantic City SPENCER SAVINGS BANK raised a total of $8,770 to benefit Special Olympics New Jersey by participating in the organization’s 2012 Snow Bowl. Coined the “Blue Diamonds,” a team of 17 Spencer employees participated in three, 30-minute flag football games held at MetLife Stadium. Surpassing their goal to raise $5,000, the team raised $8,770, contributing to an event total of more than $300,000.

New Members as of June 2012 Abacus Federal Savings Bank 8 Bowery, 5th Floor New York, NY 10013 Contact: Jill Sung, CEO Website: www.abacusbank.com Phone: 212-285-4770

City National Bank 900 Broad Street Newark, NJ 07102 Contact: Preston D. Pinkett, III, CEO Website: www.citynatbank.com Phone: 973-624-0865, ext. 640

BNB Bank, N.A. 250 Fifth Avenue New York City, NY 10001 Contact: Sam Chung, President and CEO Website: www.bnbbank.com Phone: 646-361-3891

Union Bank 2121 South Price Road Chandler, AZ 85286 Contact: Kimberly Siebler, Vice President, Financial Services Division Website: www.unionbank.com Phone: 480-840-6339

November 1 Future Leaders in Banking Gala In conjunction with BankHorizons Tropicana Casino & Resort, Atlantic City November 2 Bank Horizons Tropicana Casino & Resort, Atlantic City November 30 CFO Conference with FMS Renaissance Woodbridge Hotel, Iselin December 6 Directors College with FDIC Crowne Plaza Monroe, Monroe Township December 11 Joint Mortgage Lending Conference Crowne Plaza Monroe, Monroe Township

New Associate Members as of June 2012 Ardmore Banking Advisors, Inc. 44 E. Lancaster Avenue Ardmore, PA 19003-0533 Contact: Peter W. Leibundgut, Senior Vice President Phone: 856-912-8470 Email: pleibundgut@ardmoreadvisors.com

Bankers’ Bank Northeast 43 Western Boulevard Glastonbury, CT 06033 Contact: Susan W. Salecky, Senior Vice President Phone: 860-657-2265 Email: sws@bankersbanknortheast.com

Commerce and Industry Association of New Jersey 61 South Paramus Road Paramus, NJ 07652 Contact: Stu Bodow, Vice President of Marketing Phone: 201-368-2100 Email: sbodow@cianj.org

FSC Securities 21 Powderhorn Drive

46 New Jersey Banker

Rockaway, NJ 07866 Contact: David Selden, Registered Representative Phone: 973-620-9713 Email: dselden@fscadvisor.com

Image One Industries 677 Dunksferry Road Bensalem, PA 19020 Contact: Mike Maddalo, Director of National Sales Phone: 215-826-0880, ext. 137 Email: mmaddalo@imageoneind.com

Phone: 973-855-3446 Email: lbrown@njeda.com

PropertyPilot 79 Hudson Street, Suite 503 Hoboken, NJ 07030 Contact: Michael Bonner, CEO Phone: 201-222-1155 Email: mbonner@propertypilot.com

Pryor Cashman LLP

7 Times Square New York, NY 10036 Contact: Pinchus D. Raice, Partner 287 Childs Road Phone: 212-326-0104 Basking Ridge, NJ 07920 Contact: Bruce K. Smith, Vice President of Human Resources Email: praice@pryorcashman.com Phone: 908-630-9600 Scott H. Marcus & Associates Email: bsmith@ieponline.com 121 Johnson Road Turnersville, NJ 08012 New Jersey Economic Development Authority (EDA) Contact: Scott H. Marcus, President One Gateway Center, Suite 900 Phone: 856-227-0800 Newark, NJ 07102 Email: smarcus@marcuslaw.net Contact: Lorie Brown, Events Specialist

Innovative Educational Programs, LLC

Summer 2012

SAVE THE DATE | NOVEMBER 2, 2012

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On Friday November 2, join hundreds of attendees from across the region at the Tropicana Resort in Atlantic City for the must-attend event of the fall.

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We understand you’re cautious about what may be around the bend. But you can be confident that our singular focus on debit for more than 30 years can help you optimize a secure debit program. We deliver the insight, resources and guidance to retain customers and attract new ones.

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©2012 PULSE

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