New Jersey Banker Fall 2011

NEW

JERSEY

FALL 2 0 1 1

B A N K E R

HUMAN RESOURCES GUIDE A SPECIAL SECTION From recruitment to succession, a guide to the care of a bank’s greatest asset

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

JERSEY B A N K E R

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

Peter A. Dontas Market Executive Bank of America

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

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

Walter Celuch President/Chief Executive Officer Clifton Savings Bank

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

Joseph Coccaro President/Chief Executive Officer Bogota Savings Bank

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

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

Timothy M. Warren Chairman

Timothy M. Warren Jr. CEO & Publisher

David B. Lovins President

Vincent Michael Valvo Group Publisher & Editor in Chief

Jeffrey E. Lewis Controller & Director of Operations

George Chateauneuf Publishing Division Sales Manager

Sarah Warren Director of Events

Cara Inocencio Advertising Account Manager

Richard Ofsthun Advertising Account Manager

Emily Torres Advertising, Marketing & Events Coordinator

Christina P. O’Neill Custom Publications Editor

Gerald H. Lipkin Chairman/President/Chief Executive Officer Valley National Bank Christopher Martin Chairman/President/Chief Executive Officer The Provident Bank Stewart E. McClure, Jr. President/Chief Executive Officer Somerset Hills Bank

Anthony Labozzetta President/Chief Executive Officer SussexBank

The Warren Group Staff

John Bottini Creative Director

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

Scott Ellison Senior Graphic Designer Ellie Aliabadi Graphic Designer

Cassidy Norton Murphy Associate Editor

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.

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

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

NJBankers Officers Frank A. Kissel Chairman Chairman/Chief Executive Officer Peapack-Gladstone Bank Kevin Cummings First Vice Chairman President/Chief Executive Officer Investors Savings Bank Robert H. King Second Vice Chairman Senior Vice President Roma Bank John E. McWeeney, Jr. President and CEO New Jersey Bankers Association

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

Lauren Barraza Executive Assistant ext. 618 lbarraza@njbankers.com Candida Johnson Assistant Vice President/ Assistant to the COO ext. 615 cjohnson@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 ext. 632 czaccaro@njbankers.com Erin Suckiel Administrative Assistant/ Receptionist ext. 600 esuckiel@njbankers.com Counsel Michael M. Horn, Esq., McCarter & English, LLP Mary Kay Roberts, Esq., Riker, Danzig, Scherer, Hyland, Perretti LLP

Contributing Editor Emily T. DeMasi

Fall 2011 New Jersey Banker

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Table of Contents

NEW

JERSEY B A N K E R

Departments

6 Chairman’s Platform Successful Staff, Successful Banks, Successful Communities 7 Upcoming Events

20 Cover Story: People Make the Bank

A GUIDE TO TODAY’S HUMAN RESOURCE ISSUES

8 From the President's Office No Summer Slowdown at NJBankers 10 Politics & Policy

A Look Back at a Busy Season 32 Bank Notes 36 Bank Shots

Features

7

2012-2013 Bank Holidays

12 Directors' Corner Put Your Risk Appetite to Work – Safely and Soundly!

14 Behind the Teller Line North Jersey Community Bank 16

4

Feature Is Foreclosure the Best Option for Non-Performing Loans?

New Jersey Banker

18

Feature Data Protection for Branch Banking

30

Meet Our Endorsed Service Providers The Corporation for American Banking

PMC

Clarification In the Summer 2011 cover feature, “Mobile Banking’s Time Has Come,” we quoted Matt L’Heureux of COCC as predicting that mobile banking will hit critical mass three years from now in college towns and five years from now everywhere else. L’Heureux made that prediction about mobile payments, not mobile banking, which has already gained customer acceptance.

Fall 2011

If Zach lives on his mobile phone and your bank doesn’t offer mobile banking, how long will it take Zach to switch banks?

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Chairman’s Platform

Successful Staff, Successful Banks, Successful Communities

By Frank A. Kissel

T

he mornings grow chilly and soon, leaves will rustle and crunch underfoot. With the change in season, I welcome you to the fall issue of New Jersey Banker.

This issue’s cover story focuses on human resources practices. Certainly one of our banks’ greatest assets is our staffs. Our banks run on the people who serve our customers Frank A. Kissel Chairman with a smile, make NJBankers us compliant, run Chairman/CEO Peapack-Gladstone Bank our businesses efficiently, facilitate the American dream through loans and are our representatives when serving the needs of the communities where we are located.

I encourage you to communicate with all your employees so that they can help spread the word about the value of our industry, the success of which is tied to the success of our communities. They are the first line of contact and represent our banks to their friends, family and neighbors.

Communication will help make them proud of their bank and the New Jersey banking industry. Let them know why you chose to make a career in banking. There’s nothing like hearing from your CEO about why you too should be proud of your chosen profession and the bank you work in.

In addition, our cover article touches on mentoring. Most of our employees could benefit from mentoring. There is no better way to instill your bank’s culture than by having a seasoned executive as a wise and trusted counselor or teacher. Mentors

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provide expertise to less experienced individuals to help them advance their careers, build networks, enhance their education, preserve traditions and culture.

Fortunately, NJBankers is here to help with educational resources for developing personnel and bringing them up-to-date regarding changes in legislation and regulations. I know that many on my staff have taken advantage of these educational opportunities and it simply makes for a better workforce that benefits our customers, our communities and our shareholders. Education is necessary in these fast-changing times. With the passing of the Dodd-Frank Wall Street Reform and Consumer Protection Act, regulation that affects banks of all sizes, it is even more important to ensure that you have an educated workforce. I encourage you to look into the programs available through NJBankers. Your bank, and your staff, will surely benefit.

The cover story also touches on recruitment, retention, compensation and succession planning. I hope you enjoy it as much as I did. And I’d like to remind you that in October, NJBankers will hold the annual Human Resources Conference at Caesars in Atlantic City. These two days of networking and educational sessions will help your HR staff to navigate the ever-changing waters of human resources management. As they say, you won’t be afraid of storms if you’ve learned how to sail your ship!

At this writing, NJBankers is planning the annual Senior Management Conference with an outstanding line-up of speakers and topics. I am looking forward to a new venue for the Conference, the Borgata Hotel and Casino, which was suggested by you,

our members. NJBankers is responsive to our membership and is implementing our new three-year strategic plan because as the banking industry continues to change, so too must NJBankers in order to serve our members and add value. It is certainly my pleasure to serve during the first stage of this important process.

We are also planning our “Visit with the Regulators” to Washington, DC on October 5 and 6 and I encourage all bankers to attend. This is our opportunity to talk with regulators and provide feedback regarding the regulatory environment and its effects on our banks. I hope you will join us.

NJBankers is also joining 28 state associations in a new regulatory feedback initiative – the Alliance of Bankers Associations. The initiative consists of a brief, anonymous online survey that every bank member is asked to complete immediately following each regulatory examination. Using this data will allow the alliance to compare and contrast regulatory practices from state to state and from regulator to regulator. An email was sent to all managing officers in June with a link to an online survey. We encourage you to participate in the program and if you have any questions, please contact John McWeeney or Jim Meredith at NJBankers.

So as we see the first leaves fall, I look forward to seeing you at upcoming NJBankers events and working with you as we spread the word about the importance of the New Jersey banking industry to the health of our great Garden State. n Frank Kissel is chairman of the New Jersey Bankers Association and chairman and CEO of Peapack-Gladstone Bank, located in Bedminster.

He can be reached at kissel@pgbank.com.

Fall 2011

2012-2013 Bank Holidays Under the provisions of R.S. 36:1-1, the following New Jersey legal holidays may be observed by both state and national banks: 2012 Sunday, January 1

New Year’s Day*

Monday, January 2

Federal Reserve Closed Monday, January 16

Martin Luther King, Jr. Day Sunday, February 12

Lincoln’s Birthday**

Monday, February 20

Presidents Day Friday, April 6

Good Friday** Monday, May 28

Memorial Day

Wednesday, July 4

Independence Day

Monday, September 3

Labor Day

Monday, October 8

Columbus Day

Upcoming Events October 5-6

NJBankers Regulatory Visit (New for 2011)

Washington, DC October 14

Operations & Technology Seminar

Renaissance Woodbridge Hotel, Iselin October 18

Security Seminar with Profit Protection

Crowne Plaza Monroe, Monroe Twp. October 20-21

Annual Human Resources Conference

Caesar’s Resort, Atlantic City November 9-10

New Leaders Gala/BankHorizons 2011

Tropicana Resort, Atlantic City November 29

BSA Seminar

Renaissance Woodbridge Hotel, Iselin December 8

Directors College with FDIC

Crowne Plaza Monroe, Monroe Twp. January 6, 2012

Economic Forum (New for 2012)

Renaissance Woodbridge Hotel, Iselin

Tuesday, November 6

Monday, September 2

Sunday, November 11

Monday, October 7

Monday, November 12

Tuesday, November 5

Thursday, November 22

Monday, November 11

Tuesday, December 25

Thursday, November 28

Election Day**

Veterans Day**

Federal Reserve Closed Thanksgiving Day Christmas Day* 2013 Tuesday, January 1

New Year’s Day

Monday, January 21

Martin Luther King, Jr. Day Tuesday, February 12

Lincoln’s Birthday**

Monday, February 18

Presidents Day

Friday, March 29

Good Friday**

Monday, May 27

Memorial Day

Thursday, July 4

Independence Day

Labor Day

Columbus Day

Election Day** Veterans Day

Thanksgiving Day

Wednesday, December 25

Christmas Day *Holiday Policy: When holidays fall on Saturday, Federal Reserve Banks and branches will be open the preceding Friday; however, the Board of Governors will be closed. For holidays falling on Sunday, all Federal Reserve offices will be closed the following Monday. **Effective January 1, 1987, the Board of Governors of the Federal Reserve System amended Regulation J to establish 10 standard Reserve Bank holidays. (See Federal Reserve Docket No. R-0558). The 10 standard holidays do not include Lincoln’s Birthday, Good Friday, and General Election Day. Effective January 1, 1987, the Fed required paying banks which voluntarily close on non-standard holidays to pay for checks made available to them on those days (or the banks may elect to pay the Fed for the value of the float that occurs).

From the President’s Office

No Summer Slowdown at NJBankers

By John E. McWeeney, Jr.

A

s I write this column, the remaining days of summer are slipping away ever so quickly.

Where did the summer go? Whatever happened to the days of things slowing down in the summer? Well, as we all know, those days are gone. We live in an ever-changing, fastpaced world now, where information John E. McWeeney, Jr. President/CEO flows at lightning NJBankers speed and world markets can change dramatically in a matter of minutes. The global economy continues to be volatile and political battles are heating up at all levels of government as needed austerity measures are debated and implemented. It seems that we’re entering an age of austerity. Hopefully, it will be followed by an age of prosperity.

Such is the backdrop for the banking industry as we head into fall. Not only do bankers have to deal with all of this economic uncertainty, they also have their hands full with the implementation of Dodd-Frank, a new and tougher regulatory environment and rapidly changing customer segments and preferences. So what’s a banker to do? Do as we’ve always done. Work hard, serve our customers and embrace change. Our industry is resilient and up to the challenge. NJBankers will do all that it can to help.

June is usually one of the busiest months of the year at NJBankers and this past June was certainly no exception. In addition to a host of board and committee meetings, over 80 bankers attended the highly successful 2011 Marketing Conference at Forsgate Country Club and a similar sized group attended our Fourth Annual Banker’s Legislative Day in Trenton.

Between those events we managed to squeeze in our annual charity golf outing

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at Mercer Oaks Country Club to benefit Junior Achievement’s financial literacy programs. I’m proud to report that along with our co-sponsors, the New Jersey Society of CPAs, we raised over $7,500 for this worthy cause. Also during the month, NJBankers launched its new Enterprise Risk Management Committee and partnered with Don Musso of associate member FinPro and Tim Koch from the Graduate School of Banking at Colorado to hold a seminar, “Stress Testing for Community Banks.” We had over 70 bankers in attendance to learn about this important management discipline. Finally, NJBankers also launched the Regulatory Feedback Initiative, conducted in cooperation with the Alliance of State Bankers Associations.

We’re hopeful that this initiative will become an important tool for the industry at large to advocate for a fair and consistent regulatory environment and for individual institutions to prepare for their upcoming examinations. I encourage all of our member banks to participate in this complimentary and anonymous program.

July was also a busy month, as our management team kicked up our efforts to visit member banks. I find our visits to bank members to be one of the most important things that we can do, as our bankers tell us what we’re doing well and what areas we need to work on to better serve them. I was able to visit with 16 member banks during the month, and I kept up that pace for August and into the fall. We also joined with bankers and other state associations from across the country to attend the ABA’s Summer Leadership meeting and strategize about our future advocacy efforts. July ended on a high note as a contingent of NJBankers staff, bankers and bank counsel had a very successful meeting with the leadership and management team of the Administrative Office of the Courts on the subject of commercial foreclosures. We’re encouraged by the progress that’s being made on the

commercial foreclosure issue and the positive dialogue we’ve developed with the courts.

If there is one quiet month on the calendar, it would be August, but even then NJBankers was hard at work. Our annual golf outing was held on August 8 at Forsgate, and we had close to 200 golfers participate. Our bank visits continued, and we also implemented some important staff changes during August, with Jenn Zorn taking on additional responsibilities for our business development efforts, and Cris Goncalves moving from TICIC to NJBankers to become our manager of education. We also welcomed Lauren Barazza to our team as our new executive assistant. Congratulations to Jenn, Cris and Lauren. We’re fortunate to have such dedicated and talented professionals and with these changes our team is back at full force and ready to tackle the challenges that lie ahead.

As we head into fall and approach the fourth quarter, NJBankers activities will really ratchet up with our Senior Management Conference at the Borgata in September; our Regulatory Visit to Washington and Human Resources Conference at Ceasars in October; and BankHorizons at the Tropicana in November. Our advocacy efforts in both Trenton and Washington will be in full swing as well and of course all of our committees will resume their normal meeting schedule.

Despite the busy schedules and all of the challenges we face, I hope you had the opportunity to enjoy some well-deserved rest and relaxation this past summer. We at NJBankers appreciate the opportunity to serve you and are energized for the task ahead to move our great industry forward together. n John E. McWeeney, Jr., is president and CEO of the New Jersey Bankers Association, and can be reached at jmcweeney@njbankers.com.

Fall 2011

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Politics & Policy

A Look Back at a Busy Season

By Michael P. Affuso, Esq.

N

at King Cole didn’t write “Those Lazy, Hazy, Crazy Days of Summer” about NJBankers. This summer, NJBankers faced a legislative threat from the credit unions, held Bankers Legislative Day, attended the ABA Summer Leadership Meeting in Washington, set a PAC record and made some great philanthropic strides.

Michael P. Affuso Senior Vice President/ Director of Government Relations

NJBankers

A LEGISLATIVE SETBACK

In early 2010, the New Jersey Senate passed a bill sponsored by Senate President Stephen Sweeney to allow credit unions access to government deposits. After a long standoff, the Assembly Financial Institutions Committee reluctantly agreed to hear the bill in June in a final special meeting.

John McWeeney, Jr., president and CEO of NJBankers, Finn Casperson, executive vice president and general counsel of Peapack-Gladstone Bank and Kevin Cummings, president and CEO of Investors Savings Bank, ably presented our case that credit unions should be treated equally on both the tax and community reinvestment areas before gaining access to the municipal deposit market.

McWeeney noted that banks do not fear competition and in fact welcome fair competition.

Caspersen highlighted that banks will pay nearly half a billion dollars in state corporate tax in the next five years, while credit unions will pay nothing. He also noted that a business shift from a tax-paying entity to a non-tax paying entity would affect the state budget. Nearly $2 million dollars in revenue would be lost by the state if just 5 percent of the market changes.

Cummings described the cost of compliance with CRA and raised significant doubts that credit unions actually lend in underserved areas.

Under intense questioning, the credit unions sheepishly defended their position, but prevailed due to the strength of the sponsor.

The Assembly Financial Institutions Committee released a bill by a vote of 6-2.

The full Assembly followed suit and passed the bill on the last day before the summer recess. The politics surrounding the bill become part of the larger issue of state health benefits and pension reform. NJBankers continued to work with the administration over the summer, citing concerns of risk to the pool that credit unions pose.

BANKERS LEGISLATIVE DAY That wasn’t the only reason bankers were in Trenton in June – NJBankers also held its fourth annual Bankers Legislative Day. Speakers included New Jersey Chief Economist Charles Steindel, Senate Commerce Committee Ranking Minority Member Gerald Cardinale and Assembly Financial Institutions and Insurance Committee Chairman Gary Schaer.

Each speaker focused on the future for business growth in New Jersey. Cardinale and Steindel focused on the governor’s budget and entitlement reform plan, while Schaer focused on the need to successfully

impact health care costs. While tempers may have been raging in other parts of Trenton, this year’s program featured no partisan fireworks.

These presentations were followed by a panel moderated by Tom X. Geisel, president and CEO, Sun Bancorp, Inc., titled “Current Issues in Residential and Commercial Real Estate Lending.” It featured the following panelists: Steven A. Patron, president and CEO, Paradigm Realty Alliance, LLC; Allan Dechert, president, New Jersey Association of Realtors®; and Michael J. Fasano, vice president and regional manager, Marcus & Millichap.

The discussion focused on how to balance tighter industry regulations designed to prevent future meltdowns with the need to lend capital to fuel the economy; finding financing for commercial real estate projects; and the housing market in a year, or five years, and its affect on sales, construction and mortgage lending.

This was followed by a luncheon keynote address on “The State of Banking in New Jersey” by Thomas Considine, commissioner of the New Jersey Department of Banking and Insurance. Considine noted the challenges to lending, the department’s outreach program and his personal opposition to allowing credit unions access to government deposits. The day concluded with a visit to the State House. continued on page 38

10 New Jersey Banker

Fall 2011

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Directors’ Corner

Put Your Risk Appetite to Work – Safely and Soundly!

By Laurie Brooks

I

f you had asked me a year ago whether my “appetite” for seeing beautiful reef fish was big enough to overcome my lack of “tolerance” for swimming with sharks, I probably would have said, “No way!” Now, however, I have both done it and lived – not only to tell about it, Laurie Brooks and to find that I rather enjoyed the experience. This is a result of several things: • My appetite for snorkeling with beautiful fish had increased after spending several days in warm water with 50 feet of visibility and lots of beautiful fish.

• My comfort level with snorkeling and

12 New Jersey Banker

diving had increased with experience and the purchase of a mask and fins of good quality and fit.

• Finally, when actually confronted with an eight-foot bull shark, I discovered that I did not panic (new self-knowledge) and that through reading and planning, I knew exactly how to behave to enjoy watching this fascinating and yes, beautiful fish, without attracting his attention as a potential meal.

So, risk appetite and tolerance can and do change with experience, planning and knowledge.

Fall finds us somewhere in the review or revision phases of the strategic planning cycle, where boards of directors have an opportunity to realize significant value from

enterprise risk management (ERM.) Your ERM process should keep you informed not only of the regulatory and compliance risks that are common to financial services today, but especially of the risks that could impact your bank’s strategy. This should not only be the risks that could derail the strategy, but should include risks that are purposely managed to implement the strategy and generate shareholder return.

These purposely assumed risks (swimming in shark-infested waters) are defined by your risk appetite and are managed by setting and adjusting limits, practices and policies that are defined by your risk tolerance (no sharks, no way).

As part of the strategic planning process, the board should discuss and understand

Fall 2011

the management or mitigation of these three types of risks – compliance, strategy derailers and purposely assumed risks.

Here are some examples using questions to be asked of the IT strategy that fit each of these categories: Compliance – Is your bank staffed with the right skill sets and does it have the right software and systems to meet the increasing compliance requirements that will result from full implementation of the Dodd-Frank Act? Is your bank equipped to defend against increased risks to security of customer information as it pursues increased electronic access by and for those same customers?

Strategy derailers – Are the short and long term plans and budget for IT infrastructure sufficient to accommodate planned growth? Are these plans keeping your bank current with customer desires or putting the bank on the cutting (sometimes bleeding) edge of available technology and usage of social media?

Purposely assumed – Is the IT infrastructure sufficient to model and monitor the strategy for managing interest rate risk in both liability and asset sensitive future environments? Is it robust enough to handle new products or loans to new business segments contemplated by the strategic plan?

Note these examples include questions about IT infrastructure strategies (people, systems, hardware) that are either defensive (to comply with regulations or mitigate known risks that have already happened to someone, somewhere) or offensive (to contemplate future scenarios – things that could derail strategy if not implemented or enhance success if implemented.) Defensive strategies, in our highly regulated world, often consume much of the board’s time and energy at the expense of careful examination of the offense.

The board’s review and input to the strategic plan should be informed by: • a robust ERM process that identifies

risks of all three types and monitors and evaluates management’s response to these risks through key risk indicators; • a discussion of the appetite for the risks that are being managed to generate return and the tolerance for risks that need to be avoided or mitigated; and • awareness of events occurring in the external environment that could derail the plan as proposed or present opportunities that are not being captured.

Careful examination and questioning of the strategic plan with knowledge provided by your ERM process and your own personal experience will allow you to put your risk appetite to work and develop appropriate tolerances for swimming in today’s competitive, shark-infested waters. ■ Laurie Brooks is a director of Provident Financial Services and The Provident Bank of New Jersey. She can be contacted at laurie.brooks52@gmail.com.

OUR eneRgy fUtURe IS COMIng tOgetheR. We all want the same thing: affordable, reliable, clean, and secure sources of energy. The good news is that we know how to get there, and we’re already on the way. Energy markets are increasingly competitive. New Smart Grid technologies are making energy use more efficient. Investments in nuclear, solar, wind, and natural gas will more cleanly provide electricity for homes and businesses today, and for the cars and trucks of tomorrow. At Constellation Energy, NJBankers Endorsed Electricity Supplier, we understand the challenges and we’re delivering the innovative energy solutions that are helping our customers succeed and our communities prosper. newenergy.com/NJBA

© 2011. Constellation Energy Group, Inc. The materials provided and any offerings described herein are those of Constellation NewEnergy, Inc., a subsidiary of Constellation Energy Group, Inc. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. Errors and omissions excepted. Environmental information about Constellation Energy’s competitive energy supply services along with other information about our business is available at: www.newenergy.com and our toll-free number: 866.237.POWER.

Fall 2011 New Jersey Banker

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Behind the Teller Line

North Jersey Community Bank NATIONALLY RANKED COMMUNITY BANK CONTINUES TO ADVANCE

N

orth Jersey Community Bank (NJCB) was founded in 2005 in Englewood Cliffs by local community and business leaders who identified a need to have a relationship with their bank. NJCB offers a complete range of financial services for both personal and business customers, backed by advanced technology. Services include mortgages, home equity loans and lines of credit, as well as a wide selection of commercial services and advanced cash management services.

NJCB’s story is marked by tremendous growth and an unwavering commitment to the future of the industry, the satisfaction of its customers and shareholders, and the retention of its employees. Formerly a luxury home builder, Chairman and CEO Frank Sorrentino, III, entered the banking scene in 2005, a time of intense merger and acquisition activity which removed many of the relationship-based banks from the marketplace. North Jersey Community Bank answered the call for a real community bank. Sorrentino successfully directed the bank’s rapid growth during the financial crisis, which continues to outpace struggling rivals throughout the stalled economic trajectory. In 2010, NJCB recorded its best year since inception. Now, the bank has over $656 million in assets and more than 75 employees.

In the past year alone, NJCB has achieved unprecedented growth: • Increased total assets by $108 million to $656 million • Increased total loans by $119 million to $525 million • Earned recognition as the fifth best performing community bank in the country by SNL Financial, a leading provider of financial information • Named as the 64th fastest-growing financial institution in the country by Inc. magazine’s Inc. 500|5000 list • Introduced free mobile banking for BlackBerrys, iPhones, Androids

14 New Jersey Banker

North Jersey Community Bank’s headquarters in Englewood Cliffs. Since opening its first branch six years ago, NJCB has grown to $656 million in assets and is now a top five best performing community bank in the nation, according to SNL Financial. In these tough economic times, NJCB continues to grow at a record pace in assets, deposits, loans and capital.

NJCB offers a complete range of financial services for both personal and business customers, along with a full line of banking products and services, including mortgages, home equity loans and lines of credit. NJCB aims to be “a better place to be” for its customers, shareholders and employees.

and iPads, which provides all NJCB products to personal banking customers, including those who may never enter a branch • Opened a branch in Holmdel, representing NJCB’s third county

Behind NJCB’s performance is the disciplined pursuit of expansion, premier relationship banking, and an unyielding focus on providing customers with the finest products in the industry. The bank added new cash management services in

Fall 2011

2010. This included pay and automated clearing house (ACH) origination. The bank also enhanced its technology by providing image deposit capabilities at ATMs and remote capture. These developments were rolled out at the same time that the bank continued to expand and raise capital.

“Even as many banks tread water, or even work to shrink their balance sheets, we record strong growth in assets, deposits, loans and capital,” says Sorrentino. “Our impressive results are driven by solid topline growth, relentless cost control and an ongoing mission to generate the most efficient balance sheet possible. Today, NJCB maintains one of the lowest nonperforming asset ratios among U.S. banks.”

The first half of 2011 has furthered NJCB’s track record. NJCB credits consistency to its focus on nurturing key relationships. Sorrentino notes, “The key to our growth and success starts with an incredibly talented and dedicated staff which embodies true relationship banking with every customer, every day. At NJCB, we are all committed to providing the highest standards in personalized service and best in banking to our friends, neighbors and the communities we serve.”

NJCB’s ultimate goal is to create life-long relationships with its customers, ensuring that each day, NJCB focuses on a singular objective: to be “a better place to be” for its customers, communities, employees and shareholders. NJCB understands that little things matter in how it runs its retail centers, the service it provides, and how it helps customers to fulfill their most important goals.

NJCB’s philosophy of being “a better place to be” is reflected in its approach to customers, shareholders, and especially employees. Sorrentino notes, “We are clear in our direction and purpose – stable, smart and consistent growth achieved as a team.

That’s why we work hard to invest in our team members, showcase employees, win

awards, and create a dynamic environment where each employee is committed to constantly outpacing our rivals.”

As NJCB continues to grow, it intends to remain “the better place to be.”

■

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Fall 2011 New Jersey Banker

15

Feature

Is Foreclosure the Best Option for Non-Performing Loans?

By Nicholas W. Minoia

A

ccording to RealtyTrac, the average timeframe from initial default notice to real estate owned (REO) in New York and New Jersey was over 900 days in the first quarter of 2011, more than three times the average timeframe in the first quarter of 2007, for both states. That’s more than two times the national average of 400 days from default notice to REO (up from 340 days in

initial default notice, down 7 percent from June and 39 percent from the prior year.

With a sluggish demand for housing nearly four years after the housing collapse and a foreclosure process that takes two to three years, it’s no wonder that banks are looking at alternate means of resolution.

Real estate research firm CoreLogic, which gathers data for the mortgage industry and investors, found that the number of short sales has tripled in the past two years and that short sale volume is projected to increase by 25 percent in 2011, as lenders try to improve volume by sidetracking the legal system of foreclosing.

Lenders often consider short sales as the lesser of two evils when compared to foreclosures, according to a CoreLogic report on short sales. While it is likely that the lender will incur losses under either scenario, the short sale has less overall negative impact when in the alternative REO expenses such as property management, maintenance repairs and possible vandalism are considered.

With the foreclosure pipeline clogged, lukewarm demand for housing and a saturation of distressed properties already

With foreclosures at record highs, lenders are moving fewer loans into the foreclosure pipeline.

the first quarter 2010).

Although the RealtyTrac April 2011 foreclosure market report finds the number of foreclosure filings for the month dropped 9 percent compared to the previous month and 34 percent from the prior year, there are still 2.87 million homes in foreclosure.

With foreclosures at record highs, lenders are moving fewer loans into the foreclosure pipeline. In July, according to RealtyTrac, fewer than 60,000 homeowners received an

16 New Jersey Banker

on the market, it’s no wonder lenders are aggressively pursuing loan modifications as a viable exit strategy to a sub or nonperforming loan. Rick Sharga, senior vice president of RealtyTrac, estimates that “we could be looking at another two or three years until you work through the pipeline of loans already in default and seriously delinquent that would normally be in foreclosure by now.”

According to the Treasury Department, nearly 5 million modifications were started

since April 2009 through April 2011, more than double the number of foreclosures during the same period. In May alone, about 32,000 homeowners received permanent loan modifications through the Home Affordable Modification Program (HAMP).

While the White House suggests there are fewer homeowners falling into foreclosure as a result of HAMP, an Equifax study on shadow inventory shows the opposite, and that foreclosures have only slowed due to temporary measures from legal issues over forged foreclosure documents in the robosigning scandal. Nevertheless, seriously delinquent mortgages (90 days past due) dropped by 22 percent from last year and nearly 6 percent in the second quarter, the biggest gain since 2009.

Another option available to the lender is the “deed in lieu of foreclosure.” A strong offensive move by the lender, the “deed in lieu” can be an extremely effective tool in the lender’s arsenal. With foreclosure taking upwards of two to three years, every lender should consider the viability of a “deed in lieu.”

For those loans where a modification is not a workable solution, such as in the case of a non cash flowing property or the borrower’s inability to service even a modified version of the loan, the “deed in lieu” can be the optimal solution. If there is very little hope in terms of performance under borrower’s guarantee, then a deed without a deficiency may be an appropriate strategy. If the borrower has the assets or the wherewithal to fund future obligations, some sort of cash payment or note for continuing obligations may be requested as part of the comprehensive workout. The significant benefit to the “deed in lieu” strategy is that it bypasses a lengthy legal foreclosure process by conveying the property to the lender much faster than via foreclosure.

For some lenders, acceptance of a deed where there are subordinate liens such as second mortgages, mechanic’s liens, etc. can be problematic. Legal counsel can and should

Fall 2011

advise on the benefit or detriment to such a strategy. While generally speaking, lenders are not particularly keen on owning the collateral, if the decision has been made that foreclosure is the best option, then a “deed in lieu” will accelerate the process by a wide margin.

Another consideration, frowned upon by some, but used by many, is the discounted payoff, or DPO. There are instances where the shortest distance between a delinquent loan and a viable exit strategy may be a DPO. If the loan is underwater or severely stressed due to market consideration, i.e. vacancy, incomplete structure, etc. and it’s more of a “bad property” than a “bad borrower” and the borrower has the ability to simply payoff the loan if offered a discount, the lender may be inclined to offer such terms to the borrower as a means to quickly get the loan off the books.

Lastly, the lenders ultimate solution may be to simply sell the note. In economic downturns such as currently exists, there is strong demand by investors of every size and financial strength to acquire nonperforming loans (i.e. distressed debt). There are many seasoned professional organizations operating in the space including brokers that provide opinions of value (BOV), brokers that package and sell notes and investors that buy one-off deals as well as a broad range of nonperforming loan pools. The obvious advantage to considering a loan sale is the timeframe within which a non performing loan is turned into cash. From start to finish including an investors due diligence, a loan sale can be conducted within a few weeks from offering, and generally carries very little post closing risk to the lender.

The downside to the note sale may be the pricing that is achievable. Loan sales are generally conducted with registered bidders offering an “indicative” bid after a preliminary review of the loan documents. From there, two or three qualified bidders will be asked to provide a firm proposal with price and closing terms. Most note sales are for cash however

there is a trend toward providing some financing by the selling institution.

There is a very, very broad range of pricing accepted by sellers of non performing loans and can range from 20-30 cents on the dollar to par or even par plus depending on the loan-to-current-value (LCV), asset class and overall desirability. For well capitalized banks that have closely marked their loans to market and are adequately reserved, the loan sale is the ultimate in terms of timely resolution.

The strategies for loan workouts are as broad as the asset classes themselves and can be tailored by the goals of the bank in terms of desired resolution, timeframe and pricing to be achieved. Bank staff and experience will be determining factors as to

whether the institution has a long or shortterm prospective on loan resolution. Those with capital that have appropriate experience may be more than willing to take a long term view and have no problem owning REO and liquidating it in an orderly fashion. Those without experienced staff with or without capital may be much less comfortable owning the REO. And finally, loan workouts are like ice cream; they come in all sizes and flavors.

No one solution fits all circumstances as no one shoe fits all.

■ Nick Minoia is managing partner at Diversified Realty Advisors (DRA), a full service loan workout firm based in Summit, and can be reached at 908-273-2400 or nminoia@DiversifiedRA.com.

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Feature

Data Protection for Branch Banking THE WHY AND HOW OF DATA RISK MANAGEMENT IN THE BRANCH ENVIRONMENT

By Brian McGinley

W

hen hackers target multinational corporations like Sony, it may seem like a distant threat to bank branches in the United States. In reality, our financial data is under attack in a number of ways that directly impact bank branches and their customers.

Data breaches are happening at an unprecedented Brian McGinley pace as a result of sophisticated malware attacks, low-tech crimes of opportunity such as Dumpsterdiving and inadequate risk management practices. The target – sensitive consumer information – is a hot commodity for criminals who exploit it for their own gain.

And the exposure can cause significant costs, disruption and risk exposure to bank branches.

Indeed, this year alone, government websites, Citigroup and Bank of America reported data breaches. The average organizational cost of a breach has risen to $7.2 million, according to Ponemon Institute. The cost per compromised record is $214.

Fortunately, it’s possible to reduce the risks and minimize the threats with lowcost countermeasures. The first step is to raise awareness among management and employees. Next, get their commitment to do the right thing when managing the access, handling, transmission, storage and disposal of data.

UNCHALLENGING QUESTIONS Criminals have the tools and technology to defeat our traditional bank customer verification procedures.

A typical crook’s toolkit includes an inexpensive document scanner, checkprinting packages with magnetic ink character recognition (MICR), card skimmers, duplicators, embossing devices and malicious software.

18 New Jersey Banker

With these in hand, thieves can impersonate customers to access financial accounts in bank branches, online, and by telephone and ATMs. They can also perform cross-channel fraud, that is, use multiple bank channels to obtain and exploit purloined customer data for financial enrichment. For example, they may use stolen telephone banking access credentials to enroll in online banking and then use online banking functionality to transfer funds to another account under their control.

Consider how we authenticate customers, both in person and on remote channels. We typically use some form of challenge questions to ask for customers’ date of birth, the last four digits of their Social Security number, their mother’s maiden name or the name of the first school they attended. It’s an exchange of information.

The fundamental problem with this method is that it’s all too easy for the bad guys to get hold of this information. They can find it by stealing a person’s trash, searching on the Internet, trolling social networking sites and even researching public records. The more tech-savvy criminals can simply use malware to capture it or hack their way into it.

FACING CONSEQUENCES Institutions face significant consequences when they fail to protect customer data. These include the hard operational costs of response, recovery and remediation, along with the attendant financial losses related to fraud, civil liability, regulatory sanctions, fines and penalties. When credit and debit card information is compromised, the institution is subject to Visa® and MasterCard®’s operating rules, including Payment Card Industry Data Security Standards (PCIDSS), administrative actions and financial obligations.

There are also softer but very real economic costs related to the reputation

damage and customer attrition after a breach.

THE DATA LIFE CYCLE The discipline of data risk management (DRM) identifies the critical data, its location and handling, and then assesses the company’s protection posture and vulnerabilities in order to implement practices to mitigate risk. The key is to take a holistic, end-to-end view of the data life cycle: how data is collected, used, transmitted, stored and destroyed.

These concepts all translate to the branch environment – as do the risks.

Categories of risk include external threats from outsiders and internal threats from staff. The threats may be intentional acts such as fraud or negligent behavior that can expose data. Finally, there are acts of nature, such as tornadoes, hurricanes, floods and earthquakes.

Branch bankers can follow four fundamental rules for managing sensitive data: 1. If you don’t need it, don’t collect it.

2. If you collect it, collect only what you need.

3. If you do need it, control it and encrypt it.

4. When you no longer need it, get rid of it securely.

Data exists in three forms: paper, electronic and in human memory. Paper and electronic data management can be achieved through system policies, security and audits.

The human component is tougher to control.

So it’s important to keep data access confined to those who “need to know,” to grant access only to necessary data and to be deliberate about how it’s used and shared.

TAKE A SECURITY STROLL Bank management can take a security stroll to identify vulnerable areas in their branch.

Start outside, on the perimeter of the branch:

Fall 2011

Protect bank waste. Take a Dumpsterdive. You’ll be surprised to see what the branch has actually thrown out. Are documents containing customer information properly shredded?

Secure the ATM. Examine it for signs of tampering, such as the installation of a skimming device or unauthorized camera.

Make sure routing, transit and account numbers aren’t visible on printed receipts.

Look through the windows. Make sure customer data isn’t visible at workstations, computers or desktops.

Continue inside: Identify sensitive data that can be exploited by insiders. That may include customer applications, account holder’s agreements and signature cards, transaction documents, and branch-held customer statements and checks, to name a few.

Keep a lookout for customer information that is left unattended or unsecured. Develop a procedure to check for unsecure data at the close of business. Provide secure storage areas such as locking desks and file cabinets for this data.

Separate sensitive trash from regular waste. Place it in a secure disposal bin. Set up a reliable crosscut shredder that’s easily accessed.

Secure in-branch computers available for online banking demonstrations. Make sure they can’t be easily stolen. Wipe confidential data from their memory. Lock down USB ports so unauthorized software can’t be loaded onto the devices. And update firewalls, antivirus software and patches on a regular basis.

Establish a sign-in process for visitors.

Nonemployees shouldn’t have access to nonpublic areas in the branch, and they should be required to produce adequate identification upon entry.

Check video surveillance daily to ensure that it’s operating properly. Consider using video surveillance systems with motion detection to document after-hours branch activity by maintenance and security personnel.

Wipe clean the memory on hard drives of copiers, computers and fax machines before disposing of them.

These are simple steps that can be taken to avoid data leakage from your branch environment. When it is incorporated into daily practice, it is not a difficult or timeconsuming practice but can pay big dividends in averting a compromise.

■

Brian McGinley is senior vice president of data risk management at Identity Theft 911. With more than 30 years of experience in risk management, security, loss management and compliance within financial institutions, he has held senior positions at Wachovia Corp. and Citigroup. He served 9813 TKB NJB Half Page 1.2-2P_TKB NJB Half Page 1.2-2P 3/2/10 7:45 PM Page 1 as board chairman of the Financial Services

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Special HR Section

People Make the Bank A GUIDE TO TODAY’S HUMAN RESOURCE ISSUES

By Christina P. O’Neill

E

mployees are a bank’s biggest asset – and biggest liability. Banks must hire the right people, pay them competitively, develop and then make the best use of their skills, and build succession plans to prepare for when they leave or retire. Over the past generation, human resources has evolved from the department that keeps employment records and administers benefits to a strategic partner in business development, becoming the very lifeblood of the organization. We’ve brought together observations and comments from HR experts and bankers in human resources (see box, this page) about all HR-related topics.

SALARY SURVEY The international consulting firm Crowe Horwath conducts salary surveys for the banking industry. In addition to its annual national survey, the firm has conducted an annual salary survey for the New Jersey Bankers Association for the past four years. Responses have been consistent, says senior manager Timothy Reimink. New Jersey banks pay higher than the national average, due partly to higher living costs, and also to a concentration of larger banks that are able to pay more than their smaller counterparts.

Reimink shares some comparisons between the current U.S. survey and the results of surveys from the two prior years.

The number of banks that paid above market rate to attract talent, as well as the amount of annual raises, went down in 2009 and 2010, but are edging back up in the 2011 survey. Average annual raises precrisis were in the 4 percent range; in mid2009 they dropped to 2 percent and are now edging up to 2.4 percent on average.

Salary bonuses are also trending upward.

And there’s a return to offering restricted stock rather than cash, which had been declining over the past three to four years.

Above-market compensation also shrank. Nationally, only 12 percent of banks said they’d pay above-market, down from 17 percent and 20 percent in prior years.

Containment of personnel costs has

20 New Jersey Banker

also risen in importance, with employee benefit costs taking front and center (see “Benefits Cost Containment and the Bottom Line,” page 28). Cost containment rose to number three on the priorities list in 2009 and 2010; now it has dropped to six. Nationally, 70 percent of banks want to pass on more premium costs to employees and to increase employee co-pays to lower the cost of health insurance.

Higher turnover is a sign of a reviving market. Employee turnover dropped substantially in 2009 and 2010; now it’s trending back up. While not as high as in the boom years of 2006 and 2007, it’s rising enough to indicate that people are more comfortable switching jobs – and that employers are getting more aggressive in hiring, as of the date of the survey.

Additionally, lending officers with good customers who were working for a bank that wasn’t in a position to increase its portfolio because of loan constraints, started looking, Reimink says.

One of the ways banks grow is to hire relationship managers who can bring their relationships with them. The 2008 crisis made banks pull back from such hiring due to hesitancy about making new loans.

“In 2008 and 2009, banks were trying to figure out how big the hole was. In 2010, they knew how big their problem was and attention started to turn back to generating revenue, [seeking] growth in good loans,” Reimink says.

Respondents Roseann Casiere, senior recruiter, P.S. White Associates Dana Hirschkowitz, president, The Dana Company Alan Kaplan, president and CEO, Kaplan & Associates Geri M. Kelly, senior vice president and human resources officer, Columbia Bank Stuart M. Pace, Sr., president, Human Capital Recruiters Cheryl Patnick, president, Capella Consultants Susan Porter, senior vice president and chief administrative officer, First Hope Bank Tim Reimink, senior manager, Crowe Horwath Janice L. Ritz, vice president, human resources and corporate secretary, Roselle Savings Bank Acela Roselle, senior vice president and director of human resources, Boiling Springs Savings Bank Richard Siderko, president and CEO, Bankers Cooperative Group

Fall 2011

THE EXPERIENCE GAP When today’s upper-level bank managers retire, who will replace them? In recent years, “there’s been a lot of recycling of veteran lenders, but not as large a group of up-and-comers,” observes Alan Kaplan, president and CEO of Kaplan & Associates, a retained executive search firm based outside Philadelphia. The shortfall has occurred in part because many of the bank training programs that existed 20 to 25 years ago have largely disappeared.

Development is no longer the linear path it once was, says Roseann Casiere, senior recruiter at P.S. White Associates, a recruitment firm for regional and international commercial banks in the metro New York area.

New college grads hired right out of school, who received training for 18 to 24 months in a credit training or management program, became prized candidates for competing banks. “Return on the investment in these candidates was lost when they received lucrative offers to leave the bank that provided the training,” Casiere says.

A few of the larger community banks do on-the-job training, but it lacks the scale and depth of predecessor programs. “I think banks are starting to realize this and compensate for it in terms of trying to develop the next generation of leaders, but it takes time,” says Kaplan, who recommends that banks institute their own mentoring programs, along with developmental “stretch” assignments, special projects and board exposure to make highpotential employees feel valued – and also to put them to the test.

Cheryl Patnick, president of Capella Consultants, an HR and

There’s been a lot of recycling of veteran lenders, but not as large a group of up-andcomers. – Alan Kaplan management consulting group that addresses employee performance and potential, advises bank clients to make sure they know what traits they want to assess, and to come up with an individual plan to determine when a highpotential candidate might actually be ready to move up. “Are we setting them up to be successful? How long will that take?” she says. “If you move them too quickly, you’re taking an outstanding performer and setting them up to fail because they weren’t quite developed.”

Stuart Pace, president of Human Capital Recruiters LLC, recalls starting in banking in 1978 as a part-time teller and going through an evening course at AIB on the principles of banking. Today, he says, “they’re hiring people who have no idea how a bank works.” As an example, he cites customer service representatives who have to dial an 800 number to open a new account for an existing customer whose information the bank already has.

Training Offerings from NJBankers NJBankers provides a training platform for banking industry personnel from tellers to CEOs. Seminars and conferences on hot topics such as the Dodd-Frank Wall Street Reform and Consumer Protection Act; emerging trends such as mobile banking and social media; current and pending legislation, including GUDPA; new products and services, like smartphone applications; and innovative ways to enhance profitability and reduce risk are just a small sampling of learning opportunities.

NJBankers has also increased the size and scope of BankHorizons (see page 29) to include more than operations and technology topics. Break-out sessions included presentations on: The Bottom Line on Small Business Lending; Troubled Loans – Navigating the Maze of Accounting and Regulatory Reporting Rules; Controlling the Conversation: How to Incorporate Social Media into Your Bank’s Marketing Strategy; and Navigating the Current Compliance Challenge.

In addition, NJBankers offers many accreditations. with four ways certification helps members: ➢ Demonstrates that financial institutions are up-todate on industry laws and regulations, as well as on important job knowledge and skills, ➢ Creates a benchmark for the bank’s staff development, ➢ Provides an objective measure of competence for many job functions, and ➢ Shows customers the bank's dedication to superior service.

NJBankers accreditations include: CPE Credits – Licensed provider of CPE credits for CPAs by the New Jersey State Board of Accountancy.

HRCI Credits – An approved provider offering HRCI recertification credits for human resources professionals by the HR Certification Institute.

ACAMS Accreditation – CE credits are offered through the Association of Certified Anti-Money Laundering Specialists.

ICB Accreditation – Provides CE credits through the Institute of Certified Bankers, a subsidiary of the American Bankers Association, for certain designations such as CRCM and CFSSP. CLE Credits – Licensed provider offering CLE credits for attorneys as governed by the New Jersey Board of Continuing Legal Education. continued on page 22

Fall 2011 New Jersey Banker

21

Special HR Section HOME-GROWN TALENT

RETENTION

Getting the most out of the people you already have involves not only training, but testing their skills and attributes. First Hope Bank, with $403 million in assets, six branches with five to seven tellers apiece, and a mortgage-originating office, uses consultants and industry-tested measurement tools to assess employee strengths, and has had good experience moving staffers into positions where they are able to thrive. A teller with a methodical, diligent and analytical work

“Very often, development and retention are in opposition,” says P. S. White’s Casiere. While many candidates move between organizations to develop their careers, retention is based on loyalty – staying with an organization that values its people in a tangible way, she says. “People stay when they believe their efforts are appreciated, [and] they are given the opportunity to develop their skills and ultimately get paid.”

If you match an applicant with a position in line with their natural behaviors, they will love what they do and will be successful in the job.– Susan Porter, First Hope Bank style and an attention to detail will do better in a finance job than in a sales position, for example. Susan Porter, senior vice president and chief administrative officer at First Hope, notes, “If you match an applicant with a position in line with their natural behaviors, they will love what they do, and will be successful in the job.”

Columbia Bank, with 44 branches, 625 employees, and assets of $4.5 billion, offers a comprehensive training system for employees based on the job. The management development core has six to 10 inhouse classes that are required for a certificate, reports Geri M. Kelly, senior vice president and human resources officer. Technology training covers Microsoft Windows and the bank’s data management package; a professional core emphasizes teamwork. Core training must be completed within a three-year period.

At the entry level, some banks combine mentoring with readyto-use training programs. Boiling Springs Savings Bank pairs new tellers with more experienced counterparts, says Acela Roselle, senior vice president and director of human resources. It complements the in-house effort with life and online classes and self-study programs from the Center for Financial Training (CFT). The bank also utilizes government grants offered through the Department of Labor for basic computer training.

“I’m a big believer in mentoring,” says Alan Kaplan of Kaplan & Associates. An up-and-comer who is running a group of branches could become the head of retail in five years, for example. That person could be teamed with the bank’s CFO or CLO, in a cross functional program to provide a mentor with whom they could discuss the organization and their career. Mentoring can be a professional boost for the mentor as well as the individual being coached, he says.

22 New Jersey Banker

Know what is important to your key individuals and provide them with it.

– Janice Ritz, Roselle Savings Bank Customized development plans that don’t vie for training dollars with mandatory compliance training can use cross-functional projects.

Patnick recommends developing a cross-functional team for a project that requires the efforts of two different departments, such as finance and human resources jointly addressing ways to control health insurance costs (see “Benefits Cost Containment and the Bottom Line,” page 28).

The two most critical things to keep high-potential employees motivated are: their boss' personal involvement and developmental stretch assignments, says Alan Kaplan: “Up-andcomers want to work for someone who they feel is interested in their career.” That can be tricky. “If someone’s going to be threatened by a rising star, help that manager, or put the upand-comer under someone else,” he says. Stretch assignments could include allowing someone to ride along on a review of the bank’s loan portfolio, or having the tech-enabled person analyze health-benefits spending. “Whether they’re two years out of school or 20, they want to be recognized for what they can do,” he says.

The key to retaining talent is hiring right in the first place, says Janice L. Ritz, SPHR, vice president of human resources and corporate secretary at Roselle Savings Bank (see “Hiring and Screening, page 27). “Know what is important to your key individuals and provide them with it,” she advises. Motivating factors vary widely and include stability, quality of life, flexibility, special training/educational opportunities, a rewarding career path, above-market compensation programs (see “Salary Survey,” page 20), stock programs, telecommuting, casual dress, flex-time and so on.

Fall 2011

MERGER NAVIGATION Who’s the real value, and who do you want to keep happy? – Geri Kelly, Columbia Bank Acquiring banks often enter a merger situation with the intention to keep their own team intact; this may be a mistake, warns Capella Consultants’ Patnick. “If someone in the acquired institution stands out, the acquirer should try to fit them in to the existing team/talent base. You owe it to yourself to take a look at the talent and the positive impact on the succession plan. …

The end result would be a higher performing bank, [though it could] create some anxiety along the way.” She recommends that banks be just as diligent on setting talent retention goals as they are about setting goals based on customer deposit retention, which can be an issue after a merger.

Being there in person is a critical part of post-integration planning. It establishes a leadership position at the company being acquired, an opportunity to stop the rumor mills with open and honest communication.

About nine years ago, Columbia Bank acquired a title company with 15 to 20 employees. Says Geri Kelly, senior vice president and human resources officer, “What we found in the integration [was], you can’t push your own culture on somebody when they have developed and grown with their own culture. The reason they’re successful is because of who they are and you can’t force yourself on them.” Her team interviewed many key employees on the title search side, asking them what they wanted to see change and what they didn’t. While the process took a lot of time in communications and meetings, the effort was deemed successful.

Boiling Springs Savings Bank acquired another bank more than 10 years ago. Acela Roselle and the then-president met each employee individually, spoke with them about their work experiences and skill sets, career goals, and concerns, and honored their years of service with the acquired bank.

Beyond the overlap in executive positions, all employees were retained, Roselle says.

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Special HR Section RECRUITMENT TRENDS The tidal wave of downsizing that has swept banking in the last few years has changed the recruitment picture dramatically.

P. S. White’s Casiere notes, “The weeding out process has far exceeded valuable pruning in most cases, as broad downsizing efforts affect whole departments and job grades instead of individual performance.”

Alan Kaplan describes a sharply divided market for talent. For senior executive and commercial lending talent, it’s a seller’s market. Banks are looking for personnel who can drive revenue. “You can’t take any more costs out, so you’re trying to get growth,” he says.

Conversely, “[some bankers] who looked really good five years ago have been exposed as average, and clients don’t want to pay top dollar for average talent.” He adds, “A lot of bankers used to trade on their reputation, but maybe in reality they weren’t the big producers of quality loans as was reported or was thought.”

Dana Hirschkowitz, president of The

Dana Company, a financial recruitment firm, agrees on the split view of the recruitment world. Displaced salespeople post for another position somewhere else. On the operations side, credit-processing specialists are in demand. Bank candidates who are also attorneys are in particular demand for compliance jobs – one such candidate actually got hired for general counsel, she recalls.

The people who are getting “managed out” are the long-timers, says recruiter Stuart Pace. “Suddenly their job descriptions change and their skills [don’t match up]. It’s conform or be gone. It’s a shame. Because of the crisis, I understand why, but the more experienced talent is being managed out to control payroll.” Banks are reluctant to hire these candidates at salaries lower than they’d previously received, due to the perception that they’ll leave for a better offer.

He adds, “There are a lot of good jobs open. The problem is, candidates have not realized that the dollar amount in the salary world has changed. You see a glut of people

right now who want 2006 money in a 2011 economy. The playing field has changed, and the banks hold the card on that.”

“The smarter people are happy to have a job with benefits," says Dana Hirschkowitz. She observes that in today’s market, the younger candidates prefer working for the larger banks, for the compensation, recognition and name brand, while older candidates, looking for stability, are seeking the smaller banks.

Mergers and acquisitions have also created sharp shifts in recruitment patterns, says Casiere. Buying and selling even pieces of a bank equates to enormous numbers of layoffs, due to the overlap in talent. Many candidates “are preemptively choosing smaller banks, giving up a large base salary in exchange for a smaller salary, some performance-based options and peace of mind,” she says.

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24 New Jersey Banker

Fall 2011

ALIGN EMPLOYEE GOALS WITH BANK GOALS While screening tests can match the right person to the right position, incentive programs can align employee goals with company goals. First Hope Bank uses an outside consultant to administer its Stakeholders Program. Yearly, the bank assesses goals such as income and expense control, and assigns goals by department and branch office. Monthly, it reviews how each branch achieves income goals.

On a spreadsheet, management conducts a calculation to see where it falls within the budgeted plan and calculates the percentage of salary the employee would receive at year-end if the current performance patterns continue. The process helps employees understand where and how the bank makes money. “It’s a wonderful program. It pulls everyone together as a team – not just individually or by department, but the entire bank,” says First Hope’s Susan Porter. Bonuses are based 50 percent on the performance of a specific branch or department, and 50 percent on the performance of the bank as a whole.

Janice Ritz of Roselle Savings Bank notes that a company’s values must match the values that are important to a prospective candidate.

A talent management program or system that makes talent want

to join an organization that aligns employees with the mission and vision of the company, fosters an environment where employee ideas are listened to and valued, and where training and development is provided to create opportunities for advancement.

“Inspect what you expect, so you’re designing incentive plans and paying for performance that is most profitable for the bank,” advises HR specialist Cheryl Patnick. Volume-based incentives don’t always create an increase in profits, for example.

She advises bank management to inform each employee, from entry level on up, how their particular job and goals contribute to their department and how their department’s jobs and goals contribute to the bank. Goal-setting should include professional goals and should be linked to an individual’s development plan.

Performance reviews developed in conjunction with ongoing coaching will stop being an administrative headache and become a codification of a from-the-ground-up mission and value statement.

“The goal is to have clear expectations, to hold individuals accountable but coach them for success, so that nothing comes as a surprise,” Patnick says.

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Special HR Section SUCCESSION MANAGEMENT Long-term developmental training to support a succession plan is a calculated risk (see “The Experience Gap,” page 21). But it’s vitally important to succession. Cheryl Patnick once asked some bank managers attending a conference in Atlantic City, if they won $50 million in the casinos – would they continue to work? The reaction: silence. Her take: some people had an answer, but didn’t want to voice it, and others might have been thinking, “‘If that really is me, I don’t have someone to take my place.’” “It’s not threatening,” she says.

“The question was designed to get people thinking about succession planning in a different light.”

HR specialist Cheryl Patnick once asked bank staff at a convention in Atlantic City who would be prepared to take over their jobs if 10 of them won $50 million.

Susan Porter says the board of directors annually approves a succession plan, which includes a replacement plan for the president when he retires. Senior management is currently working on expanding their succession plan to other management levels within the bank.

Columbia Bank is planning ahead for when its executive management group, comprised of baby boomers born in the late 1940s, retire. Management is currently working with the COO to review the talents and education of younger workers. Geri Kelly is analyzing the implementation of a management training program that will expose employees to experience in all areas of the bank, so they will be ready when the time for transition arrives. “We can’t make any promises” as to who will rise through the ranks, she says, but the bank’s system of merit increases and performance evaluations provides a documentable history of individual achievement to help make those decisions.

That brings up a nagging question: What if a bank develops a group of managers who then have no place within the organization to move up? Yes, they could go to the competition. However, says Patnick, “It’s a better risk to take than not training them at all. If we can’t train them to be the best there is for us, then as a bank, we’re not going to get any better.” She recommends cross-disciplinary projects (see “Retention,” page 22) as a way to expand employees’ professional horizons without denting the bottom line.

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Fall 2011

HIRING AND SCREENING: WHAT WORKS From background and credit checks to fingerprinting, to integrity and predictive behavioral tests, banks have a lot of tools they can use to make the hiring process work better.

Janice Ritz of Roselle Savings Bank advises banks looking for an outside vendor for these tools to make sure the company has subject expertise and a strong legal/compliance area, a state-of-the-art web system and security privacy protection. Customer service is critical, as well as turnaround time, she says.

Make sure pricing is competitive and speak to some of the firm’s clients.

Roselle uses an outside screening company to provide criminal background checks, credit checks and social security verification. The bank also verifies past employment and college degrees. It has not begun to use social networking sites in its pre-employment screening – regulations and case law are still in the formative stages and employers need to be careful, Ritz cautions.

“Employers can’t undo what they learn from social media sites,” she says. “Information listed on social networking sites is often the same information employers try to avoid asking on applications.”

Susan Porter of First Hope Bank says the bank first profiles the position open, as to the required level of detail, personality traits and work styles it requires, and then looks at the pattern of applicants to try to match the job with the applicant. A series of tests that assess personality, predicted behavior and cognitive abilities help define the characteristics of the applicant pool. “With tellers, they’re very hard to come by,” she says. “We’ll process 15 applications before we find a candidate with the qualifications we are seeking.”

When the bank started using the predictive index survey, results have on occasion shown that employees already in place would be better suited elsewhere in the organization. Those employees were offered the opportunity to move to another position as openings in other departments became available.

“There are some neat technology tools that can help you identify a skill set,” says Cheryl Patnick. For example, skill sets can be viewed from the bottom up to see where

the strengths and weaknesses are. The CEO can look across the entire enterprise and see the skill sets of all employees and use this information to assess how well the bank is positioned to meet a three- and five-year goal. One may find that the IT department, while functionally excelling in their current role, also has other talents that can be used to support existing or future bank initiatives.

Technology can help bypass the hierarchical mode of promotions, by enabling bank leaders to understand the skill sets across the entire enterprise and then create a development plan that’s customized and objective rather than traditional.

Two technology products help measure a bank’s talent base. One such tool, ZaPoint Skillsmapper (www.zapoint.com) develops a database of skill sets, and enables managers to determine how much training may or may not be needed on a case by case basis for all employment levels – not just management’s direct reports, but all levels down. By

knowing the skill set of your entire employee population, your bank can provide targeted training and thus optimize the spending of limited training dollars. Lastly, this knowledge also provides additional insight in helping to determine whether an outside hire is needed. A second tool, Constellation SAS, (www.constellationSAS.com) measures interpersonal connectivity in departments: who are the “go-to” people? “If I know who to go to for knowledge, I want them as part of my integration team,” says Patnick. Instead of the traditional organization chart, a map for this group shows which people had the most connective dots with other members of their team. “It’s data that allows you to ask intelligent questions,” she says. “If people seek this individual out … we need to know why and what they’re saying.”

Fall 2011 New Jersey Banker

27

Special HR Section BENEFITS COST CONTAINMENT AND THE BOTTOM LINE Employee benefits, sometimes called the “hidden paycheck,” now cost employers $0.41 cents in addition to every payroll dollar. Outside of the federally-mandated withholdings, the biggest single benefit costs to employers is employee health insurance.

The New Jersey Bankers Association offers members and associate members health insurance coverage through the Bankers Cooperative Group, the licensed insurance brokerage facility of NJBankers. BCG provides the New Jersey banking industry, plus qualifying associate members, the convenience of one-source shopping for employee benefit plans for employees, directors and retirees, or specialty lines property and casualty programs.

BCG’s medical insurance policies cover 5,000 members in 70 banks, as well as associate members. The size of this insurance bloc provides BCG leverage with insurers, allowing them savings on health insurance that goes a long way towards paying association dues. BCG’s dental plan didn’t have a rate increase this year, and the increase over the last four years is less than two percent, according to Richard Siderko, president and CEO of BCG. Years ago, when bank salaries were relatively low, banks used benefits to attract and retain employees. To a great degree, many institutions still feel that way, he says – one bank in the program pays the full cost of employee health insurance. BCG offers a variety of plans, so member employers can pick several to offer; maybe a base plan and three buy-up options. The savings as compared to a traditional managed care

program can amount to between 15 and 20 percent.

Employers can save on premium costs by introducing higher deductible plans coupled with health savings accounts (HSAs), health reimbursement accounts (HRAs), or flexible savings accounts (FSAs), or a combination of those. A third of BCG’s enrollment now participates in plans that offer a health reimbursement account, which pays out only when there are claims. Of the banks that offer HRAs, about 80 percent of them partially reimburse a high deductible. Insurance companies limit such reimbursement to 50 percent of the total deductible to encourage judicious use of the plan’s providers.

A key to the high deductible plans’ acceptance by employees is educating the employees how much insurance they individually need. BCG representatives offer group presentations, but also offer confidential, one-on-one advisement to employees who have questions about special situations.

“We always encourage people to buy the lower options,” Siderko says – and to save the difference in voluntary payroll savings contributions. A newly-implemented electronic system offers employees comparative information that they can access at their own pace.

■ Christina P. O’Neill is editor of custom publications for The Warren Group, publisher of New Jersey Banker.

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Fall 2011

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Meet Our Endorsed Service Providers

Corporation for American Banking OFFERING SOLUTIONS TO IMPROVE BANK PERFORMANCE AND PROFITABILITY

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ue diligence is key for products and services endorsed by the American Bankers Association.

ABA’s subsidiary, the Corporation for American Banking (CAB), has made its thorough review process a cornerstone of its business.

That’s why ABA-endorsed solutions (which span the areas of compliance, risk management, insurance, technology, funding and asset management) may be relied upon to effectively assist financial institutions with their income-producing, performance and competitive needs.

CAB’s due diligence process includes independent analysis by industry experts and testing and validation by bankers in the field. Moreover, solutions must meet stringent quality and customer service standards in such essential areas as: • financial soundness • technology • management strength • customer service support • scope of service • training • sales/marketing • economic benefits Only after successfully completing this comprehensive analysis does CAB award the solution with its seal of approval. The result is a robust portfolio of premier solutions from industry leaders that offers diversity and inspires confidence.

ABA Insurance Services, a CAB standout, is recognized industry-wide as a secure, stable and affordable source of bond, D&O insurance, and related coverage to 20 percent of the community banks across the country. ABA Insurance Services is owned

by American Bankers Mutual Insurance Ltd. (ABMI), a mutual reinsurer owned and directed by ABA member banks. Through a unique profit-sharing program, ABMI distributes profits to ABA member insureds.

30 New Jersey Banker

To date, $75.5 million has been declared in profits to ABA member policyholders.

To heighten awareness of its solutions industry-wide, CAB works closely with the state bankers associations (SBAs), enabling the SBAs to co-endorse many CAB products and services. Presently, 43 state bankers associations have at least one product coendorsement with CAB. In addition to ABA Insurance Services, New Jersey banks are realizing positive performance and profitability outcomes through several other ABA-endorsed solutions: • Vendor Risk Management (Fortrex Technologies, Inc.): Enables your bank to easily and efficiently identify, measure, monitor and manage thirdparty service providers with the industry’s leading turnkey vendor risk management solution, VendorPoint®.

• Employment Screening (LexisNexis® Screening Solutions): Enables banks to make trusted hiring decisions through worldwide background checks (including identity, education, and employment verifications); and record searches (including criminal and credit history, as well as government sanction lists). Fingerprint and drug screen services are also included.

• Online Audit Confirmations and Credit Inquiries (Confirmation.com): Confirmation.com helps banks simplify audit confirmation and credit inquiry processes. These solutions help improve efficiency and reduce the opportunity for fraud.

• CashSweepSM Program (SEI): An effective customer-retention program that sweeps commercial customers’ excess DDA balances into select money market mutual funds overnight. The solution provides an alternative shortterm liquid investment while generating fee-based income for the bank.

• Foreign Currency Exchange (Travelex): Enables banks to service their customers’ need for foreign currency services. Travelex offers competitive rates and supplies over 100 different currencies including exotic currencies, where applicable.

• Member Discount Programs (UPS and Xerox): NJBankers members receive special pricing on: • Select UPS overnight and international shipping services – to enroll, call 1-800-325-7000 and refer to the American Bankers Association program; • The purchase or lease of Xerox equipment, including copiers, facsimiles, scanners and multifunction systems – call 1-800275-9376, ext. 2265, to locate a Xerox representative near you, and refer to ABA contract number 0706438.

See the Seal. Trust the Solution. To find out more about these and other ABA-endorsed solutions, call CAB at 1-800-BANKERS, ext. 7587; visit www.aba. com/cab; or e-mail cabreports@aba.com. ■

Fall 2011

Meet Our Endorsed Service Providers

PMC SERVING THE NEW JERSEY BANKING COMMUNITY SINCE 1975 PMC has been around as long as IRAs themselves. So it’s hardly surprising that so many New Jersey bankers think of PMC as their “inside source” for IRA expertise.

Now in its fourth decade, PMC continues to provide innovative products and services that are both affordably priced and designed to meet the ever-changing needs of a challenging marketplace. A case in point is the monthly publication, the IRA Insider.

This meticulously researched monthly newsletter has been created in response to what bankers have asked for: reporting on breaking developments and trends in IRAs written in an easy-to-understand way that informs, educates, and even makes it interesting to read.

You get direct and immediate access to America’s leading authorities on IRAs, health savings accounts (HSAs), and education savings accounts (ESAs) through PMC’s Telephone Consulting Hotline Service. So, give the hotline a call. Your customers will be glad you did!

Other facets of PMC’s business designed to make marketing and administration of IRAs, HSAs, and ESAs worry-free, costeffective, and compliant with IRS rules and regulations include: • Staff training via national and regional seminars, custom on-site seminars and IRA express video training (New) • IRA reference manual and IRA desk reference guide – the source guides for industry experts • Customer brochures – clear, concise and written to attract and inform • Forms and documents – available in print or electronic format – always upto-date and in compliance As a proud associate member of the New Jersey Bankers Association since 1991, PMC continues to offer steep discounts and 100 percent satisfaction guarantees on all of our products and services to NJBankers members.

For more information on PMC, call us at 1-800-233-3207 or visit www.pmc-corp.com. ■

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31

Bank Notes

Ben Spoelstra, Jr.

Brian McCourt

Mary Ann Deacon

ATLANTIC STEWARDSHIP BANK Ben Spoelstra, Jr. of North Haledon has been appointed loan workout officer at Atlantic Stewardship Bank. Spoelstra will serve at the bank’s Wayne office. He has 20 years of progressive experience within the financial services industry, including mortgage servicing, management and loss mitigation, expertise in foreclosure proceedings and real estate sales as well as experience in both residential and commercial real estate liquidation.

BOENNING & SCATTERGOOD Boenning & Scattergood, Inc., an independent securities, asset management and

Edward Rolfe

Chris A. McFadden

Bridget J. Walsh

investment banking firm headquartered in the mid-Atlantic region, announced Anthony A. Latini, Jr., CFA, has joined the investment banking team as a managing director. Latini will focus on initiating and executing investment banking transactions as well as expanding and strengthening relationships within the financial services sector.

BOGOTA SAVINGS BANK Brian McCourt has been named senior vice president and chief financial officer of Bogota Savings Bank. McCourt is a member of the Financial Managers Society and has been employed in the banking industry since 1982.

INVESTORS SAVINGS BANK Kevin Cummings, president and CEO of Investors Savings Bank and first vice chairman of NJBankers, was among 25 New Jersey regional award winners of Ernst & Young’s Entrepreneur of the Year Awards. The program honors entrepreneurs through regional, national and global awards in more than 135 cities and 50 countries. Awards are bestowed on entrepreneurs who have demonstrated excellence and extraordinary success in areas such as innovation, financial performance and personal commitment to their businesses and communities. Cummings was selected as a winner in the Transformational category and recognized for success in transforming his bank’s culture from risk-averse to riskmanaging.

LAKELAND BANK Mary Ann Deacon has been elected chairman of the board of directors of both the holding company and the bank. Deacon has

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32 New Jersey Banker

Fall 2011

kers -

more than 30 years of in-depth experience in real estate development, building contracting, property management and sales. She is secretary and treasurer of Deacon Homes, Inc., and other privately-owned operating companies. She is responsible for the planning and administration of these companies, three condominium associations and other business entities. Her past participation in the state and local real estate associations includes leadership positions and committee experience in ethics, professional standards, strategic planning and governance. During her 16 years on Lakeland’s board, she has served on every committee.

NORTH JERSEY COMMUNITY BANK Frank W. Baier, CPA, has been appointed chief financial officer. Baier is responsible for the bank’s business and financial strategy.

He will oversee the bank’s accounting and investment operations, along with working on the bank’s capital formation plans. Baier has held a number of senior leadership roles at Summer, 2010 financial institutions including Independence Community Bank; Capital Access Network; and ContiFinancial Corporation. He also served as a consultant to Meridian Capital Group. He holds a bachelor’s degree in business administration from Seton Hall University and an MBA from New York University.

Laura Criscione, who joined NJCB at its inception in 2005 as executive vice president and chief financial officer, has helped drive the growth of the bank from one to seven branches.

In her new role as chief operating officer, Criscione will continue to be responsible for the bank’s day-to-day operations, internal controls, and compliance with all regulatory, federal and state laws. In 2010, Criscione was named “CFO of the Year” by NJBIZ magazine.

Prior to joining NJCB, she served as investment and senior staff accountant at Lakeview Savings Bank; controller at Ridgewood Savings Bank of New Jersey and senior vice president and chief financial officer at NorCrown Bank. Criscione holds a bachelor’s degree in accounting from Seton Hall University.

NVE BANK Edward Rolfe has been promoted to first senior vice president of the retail banking division.

Rolfe has over 42 years of banking experience throughout central and northern New Jersey, including management positions, sales and small business lending. Rolfe joined the bank in 2006 and attended the Graduate School of Banking in Madison, Wisconsin. Rolfe is a member of the Financial Managers Society and the New Jersey Bankers Association, and is

a board member of the professional division of the Englewood Chamber of Commerce.

Chris A. McFadden has been appointed first senior vice president and chief financial officer of NVE Bank. McFadden has been involved in the banking industry for over 25 years and most recently held the position of chief financial officer with Carver Bancorp. A graduate of St. Joseph’s University with an MBA, McFadden is a certified lean and six sigma practitioner.

McFadden previously served on the board of directors for the Banco Popular Foundation, the New York Advisory Board for Youth About Business and the New York Chapter of Operation Hope.

PEAPACK-GLADSTONE BANK Bridget J. Walsh, senior vice president and human resources director, recently earned certification as a Senior Professional in Human Resources (SPHR). The certification, awarded by the HR Certification Institute, signifies that Walsh has the theoretical knowledge and practical experience in human resource management necessary to pass a rigorous examination demonstrating a mastery of the field. Walsh has over 33 years of experience in the banking field. continued on page 34

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Fall 2011 New Jersey Banker

33

Bank Notes

Thomas M. Lyons

Michele N. Siekerka

Dennis M. Bone

PROVIDENT BANK Thomas M. Lyons has been named executive vice president. He continues to serve as chief financial officer, where he is responsible for overseeing treasury, accounting and financial reporting activities, annual business planning, capital and balance sheet management, and merger and acquisition analysis.

Lyons has more than 20 years of banking experience. He joined Provident in 2004 as first vice president and chief accounting officer after the bank’s acquisition of First Sentinel Bancorp, where he served as executive vice president and chief financial officer. He was promoted to senior vice president and chief financial officer in 2009.

Lyons received a bachelor’s degree in

Carmine Abbate

Joseph W. Valerio

John P. Cole

accounting from Fairleigh Dickinson University.

ROMA BANK Michele N. Siekerka, Esq., has been elected chairman of the board of Roma Bank and Roma Financial Corporation MHC. Siekerka replaces Maurice T. Perilli, who retired on June 30. A graduate of Rutgers University and Temple University School of Law, Siekerka is a licensed attorney and assistant commissioner for economic growth and green energy with the New Jersey Department of Environmental Protection. From 2004 to 2010, she served as the president and chief executive officer of the Mercer Regional Chamber of Commerce.

Previously, she was employed by AAA MidAtlantic, first as vice president of human

resources and then as senior counsel. Prior to that, she was in private practice in Mercer County.

Dennis M. Bone, president of Verizon New Jersey, was Nicole Burrell-Birt elected to the board of directors of Roma Financial Corporation, parent company of Roma Bank. With an undergraduate degree from West Virginia University Institute of Technology, Bone also holds an MBA from Rutgers University and a master’s degree from Johns Hopkins University.

Bone has over 32 years experience with Verizon and is responsible for all of Verizon’s corporate interests in New Jersey. He is an active member of the community, and serves on the boards of several local communityoriented organizations. Bone is chairman of the New Jersey State Employment and Training Commission, chairman of the New Jersey State Chamber of Commerce and chairman of Choose New Jersey.

Carmine Abbate has been appointed as Roma Bank’s chief credit officer. A graduate

Unparalleled experience

serving New Jersey financial institutions Stifel, Nicolaus & Company, Incorporated has been serving banks and thrifts for over 40 years.

Since 2000: • Managed or Co-Managed 489 Public and Private Offerings, raising $59.2 billion in capital • Managed 49 Mutual-to-Stock Conversion Offerings, raising $13.7 billion in capital • Advised in 221 Financial Advisory Transactions, totaling $14.8 billion • Of these transactions, approximately 30% were for Mid-Atlantic-based companies Over 220 Financial Service Companies under research coverage, 67 of which reside in the Mid-Atlantic Region Large retail and institutional sales distribution channel

We have defined the Mid-Atlantic region to include: Delaware, Maryland, New Jersey, New York, and Pennsylvania.

The information presented includes transactions effected and matters conducted by Stifel Nicolaus Investment Banking, the Capital Markets Division of Legg Mason Wood Walker, Inc. (acquired on December 1, 2005), Ryan Beck & Co., Inc. (acquired on February 28, 2007), Thomas Weisel Partners LLC (acquired on July 1, 2010), and their respective affiliates. Stifel, Nicolaus & Company, Incorporated and Thomas Weisel Partners LLC are affiliated broker-dealer subsidiaries of Stifel Financial Corp. which are collectively referred to herein under the marketing name Stifel Nicolaus Weisel.

34 New Jersey Banker

Senior Executive Involvement For more information, contact: Rick E. Maples, Head of Investment Banking (314) 342-2038 • maplesr@stifel.com

Ben A. Plotkin, Executive Vice President, Vice Chairman (973) 549-4025 • ben.plotkin@stifel.com

Michael F. Barry, Managing Director (212) 847-6458 • barrym@stifel.com

Mark B. Cohen, Managing Director (212) 847-6438 • mark.cohen@stifel.com

David P. Lazar, Managing Director (215) 861-7179 • david.lazar@stifel.com

Robin P. Suskind, Managing Director (973) 549-4036 • robin.suskind@stifel.com

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Fall 2011

of Baruch College, Zicklin School of Business, Abbate brings 17 years of commercial credit and risk management experience to his new position. As chief credit officer, his primary role is to oversee commercial loan underwriting and credit analysis, evaluate the creditworthiness of new loan originations, as well as loan renewals, and monitor the ongoing credit quality of the bank’s loan portfolio. Under his leadership, the credit department is responsible for performing credit risk assessments to ensure that potential risks are identified and mitigated. He is also a member of the bank’s Asset Classification Committee, which determines the risk ratings of the bank’s borrowers.

SUSSEXBANK Kurt Breitenstein has joined SussexBank’s Commercial Lending Group. Prior to joining the bank as executive vice president, Breitenstein served as senior vice president and commercial loan officer at Valley National Bank. He is a graduate of Skidmore College and holds a master’s degree in finance from Long Island University.

Rene Miranda has also joined the Commercial Lending Group as a senior vice president. Miranda was previously vice president/commercial loan officer at Atlantic

Stewardship Bank. His career in commercial lending spans more than 20 years, having served in senior management positions with various New York and New Jersey banks. He received his bachelor’s degree in business administration from Montclair State University.

TD INSURANCE Joseph W. Valerio has joined TD Insurance, Inc., a subsidiary of TD Bank, as senior vice president and regional sales manager for the mid-Atlantic region. Based in Mt. Laurel, he is responsible for market growth and sales leadership through a network of multiple bank channels from New York City to Washington, D.C. Valerio has 14 years of insurance experience. Prior to joining TD Insurance, he served as a managing director for Wells Fargo Insurance Services in Philadelphia, and before that, as regional operations officer at Willis North America, Inc., in New York City.

Prior to joining the insurance industry, Valerio spent six years as an offensive lineman with the NFL’s Kansas City Chiefs. He also spent time as a television sports anchor and radio sports talk show host in Kansas City. Valerio is a graduate of the University of Pennsylvania in Philadelphia.

WELLS FARGO John P. Cole, Northeast business banking division manager serving New Jersey, New York and Connecticut, has been promoted to executive vice president. Cole is based in Summit and manages 114 business bankers.

Cole joined Wells Fargo predecessor Wachovia in 2000 and has held a number of leadership positions, including business banking risk director for Atlanta, GA; business banking sales executive, Northeast; business banking sales director, New York; and commercial bank senior relationship manager, northern New Jersey. He earned a bachelor’s degree in marketing from the Ross School of Business, University of Michigan and a MBA in finance from the Stern School of Business, New York University.

Nicole Burrell-Birt has joined the southern New Jersey Wells Fargo team as the community banking president for the Jersey Shore. Burrell-Birt was a Wells Fargo district manager in San Diego managing 12 stores in a $1.3 billion diverse market. She is based in Toms River and covers portions of Monmouth, Ocean and Atlantic counties. She has served Wells Fargo for 20 years in a variety of roles in community banking. She attended San Diego State University and majored in criminal justice.

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Bank Shots

CENTRAL JERSEY BANK, a division of Kearny Federal Savings, was one of many business participants in the Sizzlin’Summer Business Expo 2011 organized by Southern Monmouth Chamber of Commerce. Many local business owners, from restaurants to travel agencies, were interested in the short- and longterm financing options available from the Small Business Administration to expand their operations. Central Jersey Bank, Kearny Federal Savings’ recent acquisition, is a preferred SBA lender and an active participant in the Small Business Jobs Act recently signed into law. Pictured are: Linda Talbot, assistant vice president and branch manager of Spring Lake Heights office; Sameh Awad, teller; and Jerry Zaleski, assistant vice president and branch manager of the Sea Girt office.

COLONIAL BANK’s assistant BSA and AML officer Maria Ciprich (second from left) took her husband, Joe (left); friend Anna McKloskey (second from right); and McKloskey’s husband, John (right) to a Camden Riversharks game. Ciprich won the four tickets to the game as a result of renewing her subscription to The Advisor, a security, BSA and risk management service and newsletter published by the National Association for Bank Security and Profit Protection, LLC. NABS/PP ran the promotion to encourage expiring subscribers to renew their subscriptions in exchange for a chance to win a night out for four at a Minor League ballpark.

HILLTOP COMMUNITY BANK officers Judy Agrillo, vice president; Mort O’Shea, president and CEO; and Ivana Lotoshynski, financial consultant, attended a Senior Symposium in Summit, sponsored by the local Chamber of Commerce and Overlook Hospital.

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Fall 2011

NVE BANK received special recognition from NJBankers for their participation in the 2010 Community Service Awards. NVE Bank was awarded the honor in the $400 to $850 million in deposits category at the 2011 NJBankers Annual Conference for their community efforts. The award submissions are reviewed by independent judges. Here, Robert Rey, president of NVE Bank, holds the Award with members of the NVE Team that volunteered in 2010.

The

RIKER DANZIG SCHERER HYLAND & PERRETTI LLP hosted its annual Women in Leadership reception with guest speaker Donna Orender, former president of the WNBA, who spoke on “Creating the Change We Want to See.” Orender (center) is joined by Riker Danzig partners (left to right) Jennifer Lazor, Jan Bernstein, Anne Patterson, Mary Ellen Scalera, Sigrid Franzblau, Marilynn Greenberg, Cathleen Giuliana and Sandra Brown Sherman. Orender served as president of the Women’s National Basketball Association from 2005-2010.

Kenleena Munroe of Hackensack was presented with a $500 scholarship by BANK OF ROCHELLE PARK, a division of Pascack Community Bank. Pictured are Munroe and Erica Tilstra, branch manager.

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Politics & Policy continued from page 10

ABA LEADERSHIP SUMMIT NJBankers also took to the nation’s capital for the annual ABA Summer Leadership Meeting.

Over 200 representatives from the state associations and ABA members discussed ways for the ABA to improve its advocacy after the recent legislative defeats. In attendance from New Jersey were Kevin Cummings, president and CEO of Investors Savings Bank and first vice chairman of NJBankers, and Norm Beatty, chairman, president and CEO of First Hope Bank and an ABA director, as well as John McWeeney. Look for the ABA to roll out new advocacy tactics, as well as a push from several of the state associations to improve BankPac’s effectiveness. NJBankers was proud to contribute our assessed amount of $55,000 to BankPac, fulfilling, for the fifth year in a row, our annual BankPac goal.

JEBPAC CONTINUES TO GROW One very positive note is that JEBPAC

will have its best year ever. As of Aug. 1, we have raised $160,000, which is $22,000 more than last year, and we still have nearly $15,000 in outstanding commitments. It is reasonable to forecast that JEBPAC will raise 25 percent more than the previous all time high. I personally want to thank everyone for their generous support. However, also as of August 1, there are over 40 banks that have not yet contributed this year. We urge your support in making JEBPAC one of the strongest business PACs in the state.

PHILANTHROPY ABOUNDS Once again, NJBankers, in conjunction with the Jersey Shore Runners Club, is sponsoring the Boardwalk Relay Against Hunger. The race will be held on Saturday, Sept. 24, in Asbury Park. Proceeds from the race will benefit The Food Bank of Monmouth and Ocean Counties. Last year we raised over $12,000 – this year let’s make it $20,000. The Food Bank of Monmouth and Ocean Counties has played an important role in providing much needed food to many during the current economic downturn.

NJBankers also proudly sponsors the 2011 Essex County Bankers Have Heart 5K Walk. Heart Walk is the American Heart Association’s flagship fund-raising event, and is held in more than 400 communities nationwide. The 2011 Essex County Heart Walk unites the banking industry with the American Heart Association fight to build healthier lives, free of cardiovascular diseases and stroke, the number one and number three killers of both men and women in the United States.

The event, chaired by Kevin Cummings, president and CEO of Investors Savings Bank, will be held on Sunday, Oct. 16, with registration beginning at 8:30 a.m. and the walk at 10:00 a.m. at the ADP Corporate Campus, One ADP Boulevard, Roseland.

The goal is to raise $475,000, while also raising awareness about the importance of physical activity. n Michael Affuso, Esq., is senior vice president and director of government relations for NJBankers.

He can be reached via email at maffuso@ njbankers.com.

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