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th Annual Conference MEET THE 2013-2014 OFFICERS AND BOARD OF DIRECTORS
Digital Power / Community Service Awards / Meet NJCC ENDORSED BY THE NEW JERSEY BANKERS ASSOCIATION
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NJBankers Board of Directors John W. Alexander Chairman/President/Chief Executive Officer Northfield Bank
James P. Genoy, Jr. President/Chief Executive Officer/Treasurer Monroe Savings Bank, SLA
Frank A. Kissel Chairman Peapack-Gladstone Bank
Mortimer J. O’Shea President/Chief Executive Officer Hilltop Community Bank
Norman E. Beatty Chairman/President/Chief Executive Officer First Hope Bank
Thomas J. Holt Senior Vice President Bank of America
Christopher Martin Chairman/President/Chief Executive Officer The Provident Bank
Robert Rey President/Chief Executive Officer NVE Bank
Kevin Cummings* President/Chief Executive Officer Investors Bank Immediate Former Chairman
James A. Hughes * President/Chief Executive Officer Unity Bank
D. Nicholas Miceli * Market President TD Bank, N.A.
Michael Schutzer President/Chief Executive Officer Harmony Bank
Thomas J. Kemly * President/Chief Executive Officer Columbia Bank
Craig L. Montanaro President/Chief Executive Officer Kearny Federal Savings Bank
Robert E. Stillwell President/Chief Executive Officer Boiling Springs Savings Bank
Peter Kenny President/Chief Executive Officer Heritage Community Bank
Michael Nardo Executive Vice President/NE U.S. Market Executive – Corporate Banking PNC Bank, N.A.
Paul E. Fitzgerald President/Chief Executive Officer First Bank Thomas X. Geisel President/Chief Executive Officer Sun National Bank
NJBankers Officers
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. Executive 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 and Director of Education and Business Development ext. 611 jzorn@njbankers.com
Cris Goncalves Manager of Education ext. 630 cgoncalves@njbankers.com Lauren Barraza Executive Assistant ext. 618 lbarraza@njbankers.com Allison Montellione Assistant to the Director of Communications ext. 629 amontellione@njbankers.com Cynthia M. Zaccaro Assistant to the Director of Education and Business Development ext. 632 czaccaro@njbankers.com Erin Suckiel Administrative Assistant/ Receptionist ext. 600 esuckiel@njbankers.com
Stewart E. McClure, Jr. * Chairman Regional President Lakeland Bank
Angela Snyder* Second Vice Chairman Chief Executive Officer/Vice Chairman Fulton Bank of New Jersey
Gerald L. Reeves * First Vice Chairman President/Chief Executive Officer Sturdy Savings Bank
John E. McWeeney, Jr. President and CEO New Jersey Bankers Association
Counsel Michael M. Horn, Esq. McCarter & English, LLP Mary Kay Roberts, Esq. Riker, Danzig, Scherer, Hyland, Perretti LLP
Emily T. DeMasi
Contact New Jersey Bankers Association www.njbankers.com 411 North Avenue East Cranford, NJ 07016-2436 Phone: 908-272-8500 Fax: 908-272-6626
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Claire Anello Office Manager, Database and Website Manager ext. 631 canello@njbankers.com
Contributing Editor
*Executive Committee
www.thewarrengroup.com 280 Summer Street • Boston, MA 02210 617-428-5100
Published continually as a quarterly publication by the New Jersey Bankers Association from 1929 to Winter 1986. Revived as a quarterly publication by NJBankers and The Warren Group in 1998 under the name New Jersey Bank & Thrift and continued as New Jersey Banker in 2002. Combined with The League Leader, published by the New Jersey League of Community Bankers, in December 2008 and continued as New Jersey Banker.
Summer 2013 New Jersey Banker
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Table of Contents
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Departments
6 Chairman’s Platform A New Year, A New Chairman And A New Vision 10 From the President's Office Highlights from a Successful Year 12 Politics & Policy Bankers as Builders 15 New Associate Members 21 Upcoming Events 28 Bank Notes 30 Bank Shots
16 Cover Story: 109th Annual Conference Celebrating the Start of a New Leadership Year
Features
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Directors' Corner Responsibility for Today’s Technologies Starts in the Board Room
18
NJBankers Community Service Awards
19
Forrey-Gallman Award Presentation
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20 Behind the Teller Line Fulton Bank of New Jersey 26
Feature Introducing New Jersey Community Capital
22
Meet Our Select Service Providers Expert Solutions to Complete Your Internal Audit Program
23 The Science of Regulatory Compliance 24
Make Wolf & Company’s 100 Years of Experience Work for You
Summer 2013
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Chairman’s Platform
A New Year, A New Chairman And A New Vision By Stewart E. McClure, Jr.
I
t is with pleasure that I welcome you to the summer issue of New Jersey Banker. Let me begin by saying what a great honor and privilege it is to serve as your chairman for the upcoming year. I’d like to give Kevin Cummings special thanks for his commitment and generosity this past year as NJBankers chairman and I will do my best to follow in his footsteps as we continue to move the Association forward. In my two tours of duty on the NJBankers board, I was lucky enough to participate on the Stewart E. McClure Jr. Conference and Chairman Executive CommitNJBankers Regional President tees and the Service Lakeland Bank Corp. and TICIC boards, and I had the chance to see John McWeeney in action both as a banker and as the leader of our Association, which represents 114 banks. We are lucky to have him, as he is viewed as one of the best in the business, and one of the leading state executives in the nation. I thank John for his and his entire staff ’s good work, and I look forward to working together more closely this coming year. Looking to the future, what the Association needs, and what I need as your new chairman, is your support and participation in NJBankers at a renewed and stepped up level. The theme of this year’s Annual Conference was “The Future of Community Banking.” That theme leaves it wide open for any number of answers as to what that future holds. Personally, I think that future has yet to be determined and that means we each have the chance to influence and determine the future for our own banks and therein lies the opportunity. Notwithstanding that opportunity, we do still face an uphill battle,
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and the wind is not yet at our backs. Probably most frustrating is the economic backdrop which leaves us with high unemployment, weak loan demand, and relentless net interest margin pressure exacerbated by extra low rates for a prolonged period of time, courtesy of government intervention. A close second are the challenges and associated costs on the regulatory front; including, but not limited to Dodd-Frank, Basel III and the CFPB. Add to that the ongoing dysfunction in Washington with the fiscal cliff, sequester, record deficits and a dearth of leadership and determining the future of community banking is not an easy task. Yet being both the realist and the optimist that I am, I believe that despite these challenges, the future of community banking can still be bright. But it’s going to involve some change on our part, and we’re going to need a little help; the kind of help that NJBankers can provide! We’ll certainly need to figure out how to do more with less, and to take advantage of technology more than ever – not just to save money, but to ensure that we as bankers are part of today’s wireless world, where most people make decisions using their phone or tablet. In recent years, they’ve certainly chosen to do their banking that way, in record numbers! We’ll also have to supplement our spread business with more fee businesses – mortgage, wealth management, trust and others. We’ll need to continue to rethink our traditional branches, at least as to their design, how we staff them, and what we sell through them. And like it or not, we need to figure out how to live with more regulation and the attendant expense; I doubt it’s going away. While we’re doing all this, some of us may also need to raise more capital and many of
us may need, or choose, to be involved in some aspect of the M&A world. But all of these challenges and realities aren’t a reason to give up. Instead, they’re a reason to redouble our efforts to figure out which plan is best for each bank, and that’s where the Association comes in. NJBankers offers the opportunity for you and your staff to reengage with other bankers, industry leaders and experts. With 25 committees, 33 events, and multiple trips to Trenton and Washington, there are endless opportunities to expand involvement and knowledge for you and your team. Not every idea is right for each and every bank, but I know from experience, it’s almost impossible to attend the Economic Forum, the Senior Management and Directors Conferences or the Annual Conference and not come away with a few ideas, a few questions, and a to-do list. We also have opportunities through the 238 service providers who we partner with through the Association. Most of us can’t afford to develop our own products and expertise in-house but can benefit tremendously and inexpensively through a consultative third-party arrangement with these partners. I’ve taken the time to talk with many of these service providers over the years and it’s paid real cash dividends from lower cost supplies to an ERM model we could never have created on our own. I’ve always believed you start with the macro picture, and work your way backwards, so as to allow yourself the ability to determine which way the tide is running. Armed with that knowledge you can swim with the tide, not against it. To help develop that macro picture, NJBankers provides some of the best and brightest economists at conferences. And if you want to see some really excited employees, send a team to the annual Women in Banking Conference. continued on page 8
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Chairman’s Platform
I’ve got some of the most fired up and engaged women coming up with new ideas and improving processes, on how we do just about everything, all because of our involvement in the Association. And if you don’t like, or are frustrated by, the regulatory environment, rather than
finally beginning to turn in Washington as to their views of community banks' importance to the banking system, and, what seems to be the beginnings of a greater and more favorable understanding of the credit union issue. I will continue this effort, working with John and Mike Affuso, to improve our image
We need to realize and act on the fact that there are large parts of our destiny as bankers that are within our control and our grasp. all of us simply complaining to each other, let’s join together in Washington with a bigger group than ever, visiting with all the regulators and legislators. We can see the results and effectiveness of these efforts when we look at recent improvements in certain segments of foreclosures and how the tide is
and continue to solicit your help telling that story in your local markets to local media as well. It’s imperative that we add to these external efforts our own inward looking efforts. We need to realize and act on the fact that there are large parts of our destiny
as bankers that are within our control and our grasp. This year, we will reach out to more banks individually, listen to your needs specifically, and make sure that we provide, as best as possible, the tools and information necessary to enable each bank to maximize its results in today and tomorrow’s challenging environment. So renew your commitment and help us grow the Association and its service to the banking industry in 2013 and 2014. I am confident that the help and solutions we all need are available and you’ll find them at NJBankers! I look forward to working with you for the benefit of all of our banks individually, our industry as a whole, and the NJ economy that we all play such an important role in supporting and growing. ■ Stewart E. McClure Jr. is chairman of the New Jersey Bankers Association and regional president of Lakeland Bank. He can be reached at smcclure@lakelandbank.com.
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From the President’s Office
Highlights from a Successful Year By John E. McWeeney, Jr.
T
he NJBankers 109th Annual Conference signals the end of another fiscal year and it’s time to reflect on the Association’s performance during the past twelve months. While there’s no shortage of challenges facing the banking industry or trade associations, fortunately NJBankers has been able to sustain a strong performance and position itself well, to serve John E. McWeeney, Jr. President/Chief Executive Officer its members. I’d like NJBankers to share some of the highlights:
AN ENGAGED MEMBERSHIP BASE NJBankers is a member driven organization and our greatest asset is our members themselves. We have 25 committees and four boards, each of them chaired and constituted by bankers. There are currently over 950 bankers, representing 94 percent of our member banks, who serve on these committees and boards and help set the advocacy, public relations and education agenda for NJBankers. From a staff perspective, we also are proactive about reaching out to our members and we have conducted over 80 in-person visits to our banks during the current fiscal year.
STRONG FINANCIAL RESULTS Although not final at the writing of this column, NJBankers is on track for another strong financial performance. FY2012-2013 revenues are projected to be approximately $2.7 million, which are approximately $100,000 above our plan. Of particular note, our education meetings and the annual conference have exceeded expectations, thanks to the efforts of Jenn Zorn and Cris Goncalves, our education director and manager, respectively. On the expense side, we’re forecasting that we’ll be under budget by over $100,000. Our COO Jim
10 New Jersey Banker
Meredith has led an efficiency initiative that has resulted in annual expense savings of $150,000 in the areas of staffing, insurance and audit fees. We’re targeting additional expense reductions for FY2013-2014 in the administration of our employee and retiree benefits and pension plans.
POSITIVE PUBLIC RELATIONS As we’re all aware, fairly or not, the banking industry has taken its share of bad press in recent years. Our board has directed management to promote the banking industry's image as one of our top priorities. Emily DeMasi, our communications director, has been proactively promoting banking through a number of tactics such as press releases, editorial board meetings, responses to media inquiries and highlighting the industry’s community service and philanthropic activities. This strategy has yielded a myriad of positive stories about the banking industry and our member banks. We’re making progress, but more needs to be done so we’ll be staying the course. The New Jersey Bankers Education Foundation, under the leadership of its chairman Bob Stillwell, was recently recognized by the Rutgers Office of Veterans Services for providing financial assistance to veteran students facing difficult times that allowed them to continue with their education. And in May, the spouse of a service member who was killed in Iraq graduated Monmouth University thanks to scholarships from the foundation and the generous support of our members.
LEGISLATIVE & GOVERNMENT RELATIONS PROGRESS Perhaps the most important service NJBankers performs for our members is our advocacy effort in Trenton and Washington. There’s no question that our profile in Trenton has been raised considerably over the past few years led by Mike Affuso, our director of government relations. This past year we’ve seen tangible evidence, with two important developments, one legislatively and the other
in the area of public relations. In April, Gov. Chris Christie signed new legislation to expedite the handling of foreclosures on abandoned properties. This legislation was hailed by a variety of constituencies, including courts and community groups, as an important step forward in foreclosure reform. There’s more to be done to improve New Jersey’s foreclosure process, but the conversation has changed, and that bodes well for the future. The other positive development was a recent press release issued by Ken Kobylowski, NJ commissioner of banking and insurance, which complimented our banks for their response to Superstorm Sandy and, in particular, their handling of homeowners and flood insurance checks. This was in stark contrast to New York Gov. Andrew Cuomo’s criticism of New York banks on the same issue, and a direct result of Mike Affuso’s efforts to work with the administration, the legislature and our member banks in resolving homeowner disputes.
SUCCESSFUL WIND DOWN OF TICIC Last year our board made the decision to wind down the operations of TICIC by Dec. 31, 2012. I’m pleased to report that with the exception of a handful of workout loans, that goal was met when we transferred the servicing of the TICIC portfolio to New Jersey Community Capital Corporation effective this past December. The transition has been a smooth one, with no servicing issues reported by either our bank members or borrowers. We appreciate the professionalism of Gordon Ur and the cooperation of our participating bank members during this process.
GROWTH OF NEW PROGRAMS In an effort to meet the needs of our members and move the Association forward, NJBankers has launched some exciting new programs over the past few years that have seen instant success. The most visible of these are the Women in Banking Conference and the NJ Economic Leadership Forum. Now three years old, the Women in Banking Conference recently
Summer 2013
drew over 425 attendees and has quickly become one of our most popular events. Similarly, the Economic Forum is two years old and drew over 550 attendees and a big media presence this past January. These are just a few examples, as are the annual ERM and CFO conferences, respectively. Going forward, we’ll keep looking for new and better ways to serve our members.
OUTSTANDING BCG PERFORMANCE If there’s one area that is even more highly regulated than banking, and experiencing more rapid change, it would be health care. Fortunately, our affiliate, Bankers Cooperative Group (BCG), under the leadership of President and CEO Rich Siderko, has managed to stay ahead of the changes and continue to perform at a very high level. BCG is on track to set new records for revenue and net income this fiscal year. In fact, this past Half Page-7.25x4.75-OR.pdf 2 March wasERMthe biggest revenue month in
BCG’s 31-year history. More importantly, BCG currently provides medical coverage to 72 of our members and approximately 2,000 of their employees. It has also proven to be an invaluable source of information as our members prepare for the January 2014 effective date of the Affordable Care Act.
LEADERSHIP No organization can be successful without great leadership, and at NJBankers we’ve been fortunate to have a great slate of leaders work their way through our chairs and serve on the board. At our Annual Conference, it’s a tradition to pass the mantle of leadership to the newly elected bankers who will govern NJBankers in the year ahead. It’s been a great personal privilege for me to serve under Kevin Cummings, our Outgoing Chairman. Kevin brought his great sense of personal passion to NJBankers over the past year, and we’re a 11/27/12 2:59 PM better organization for his leadership. I thank
Kevin for all of his support over the past year. The staff and I look forward to working with our Incoming Chairman Stew McClure and his fellow officers, First Vice Chairman Gerry Reeves and Second Vice Chairman Angela Snyder. It promises to be another year full of challenges and opportunities. I also want to extend our thanks to Gerry Lipkin and Tony Labozzetta, our board members whose terms have expired, for their distinguished service. On the flip side of that, we’re happy to welcome back Norm Beatty to our board of directors, and have Craig Montanaro join us on the board as well. In closing, I thank our dedicated and hardworking staff for making this another successful year. All of us feel truly privileged to serve our industry and our members. ■ John E. McWeeney, Jr., is president and CEO of the New Jersey Bankers Association, and can be reached at jmcweeney@njbankers.com.
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Politics & Policy
Bankers as Builders By Michael P. Affuso, Esq.
S
ummertime and the livin’ is easy. Well, maybe for some, but not for NJBankers members who are volunteering for Coastal Habitat for Humanity. The effort, which began on June 11, will run through the summer. NJBankers and our members will proudly partner with Coastal Habitat for Humanity for Michael P. Affuso a 25-day summer Executive Vice President/ Director of Government Relations build program. NJBankers There were over 10,000 homes damaged by Superstorm Sandy in Southern Monmouth County and the rebuilding process will take several years.
Coastal Habitat for Humanity is poised for the long term recovery and plans to assist over 100 families annually. NJBankers and our members are pleased to provide manpower and financial resources. Every Tuesday and Thursday this summer, a team of eight to 10 bankers are at work on a Habitat project. In addition, each institution is pledging $100 to Coastal Habitat for each banker working on each day. In total, bankers will work 30 days providing nearly 2,000 volunteer hours and thousands of dollars in donations. The program was kicked off by a press event attended by bankers and local civic and political leaders. Attendees noted the level of mobilization of the industry, as well as the level of commitment from bankers who were not directly affected by the storm
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or had to travel distances to volunteer. Coastal Habitat for Humanity works with low- and moderate-income families of their area to give them an opportunity to help themselves, to own a decent, affordable home of their own, which they pay for and maintain. Partner families invest hundreds of “sweat equity” hours building their homes and the homes of others. These homes are sold at no profit and with no interest charged. Mortgage payments are then used to finance additional houses. Habitat volunteers provide the labor and individual sponsors provide the financial resources and materials to build the Habitat houses. The support from NJBankers members was extraordinary. Within hours after an email from NJBankers President and CEO John E. McWeeney Jr., half of the calendar was committed to institutions. With a little more cajoling, our commitment was attained. In addition to providing community service, many bankers were excited about using the opportunity for team building. The projects also fulfill more than volunteering and team building. They also allow employees of smaller institutions which could not provide a full team to be paired with other similarly situated people to form amalgamated teams. These teams allowed bankers not only to work with coworkers, but also meet other bankers from smaller institutions. Please follow us on Twitter and look forward to other updates in our weekly bulletin. There will also be a capstone press conference in late September to demonstrate publicly what we have accomplished during the summer. If you have an interest in participating, we may be able to accommodate your needs, so please feel free to contact us. We hope, with your involvement, to continue to support this worthy endeavor. ■ Michael Affuso, Esq., is executive vice president and director of government relations for NJBankers. He can be reached at maffuso@ njbankers.com.
Summer 2013
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Directors’ Corner
Responsibility for Today’s Technologies Starts in the Board Room MITIGATING RISKS AND GENERATING REWARDS By Barry Libert
D
igital technologies, including social media, smartphones, the cloud and big data, have transformed our personal lives. They have enabled all of us to connect and communicate with our friends and family, manage our savings, invest and share advice no matter where we are and what device we are using. The bottom line: It’s time to turn those technologies Barry Libert into business benefits, particularly when it comes to corporate governance, organizational strategy and capital allocation. And the responsibility for driving that digital adoption starts (and ends) with the board of directors. Let’s start with the facts. Every corporation, including commercial and investment banks, is today a digital corporation. Digital isn’t just about connecting employees and customers to improve collaboration regardless of location or device, nor is it about making investor transactions more efficient and effective. At its core, becoming a digital corporation is about delivering real value to all stakeholders – value that adds up to some $1.3 trillion annually, according to the McKinsey Global Institute. This massive opportunity exists because of four key digital technologies. • Social: 1.5 billion people are using social media to communicate and collaborate. • Mobile: 5 billion people use phones and smart devices to transact and interact. • Cloud: Hundreds of millions of people store personal and financial data there. • Big Data: 2.5 quintillion bytes of new data are created every day. The result: It’s time for board members and leaders of all organizations, and especially those that handle the finance of individuals, business and government, to reconsider and reinvent their business models as digital enterprises.
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Commercial boards and leaders that try to avoid a digital transformation risk having their organizations fall prey to the speed and might of companies that make the most of today’s social and mobile networks and the big data they create. The graveyard is growing: Just ask the boards and leaders of Best Buy, Blockbuster, Kodak and the presidents of the countries revolutionized in the Arab Spring. So what are the four rules for becoming a digital corporation in the banking sector (which applies to all businesses)?
BECOME AWARE OF TODAY’S DIGITAL POWER AND POTENTIAL The facts speak for themselves. Corporations that actively deploy social and mobile technologies produce 9 percent more revenues, 26 percent more profits, and a 12 percent higher market valuation than their peers, according to research by the Massachusetts Institute of Technology and Cap Gemini. Despite these facts, fewer than 30 percent of CEOs use social media, according to CEO.com. In addition, The Conference Board and the Rock Center for Corporate Governance at Stanford University report that only 7 percent of corporate directors use big data from social or mobile interactions in the course of making decisions. Finally, research from both the University of California at Berkeley and MIT reveals that social media is a leading indicator of stock-price movement, as exemplified by the recent ruling by the U.S. Securities and Exchange Commission legitimizing the use of social media for investor communications and the recent false tweet by The Associated Press, which cost the financial markets $200 billion in less than six seconds. On Jan. 10, 2013, Kenneth I. Chenault, the CEO of American Express, announced that the company would change its travelservice business strategy and investment in technologies, cutting 5,400 people as it reallocated its capital to emphasize online initiatives. Chenault said that the travel industry
had been “fundamentally reinvented” by technology. In support of this change, he noted that more than half of its corporate customers were booking flights online or via their mobile phones rather than calling an American Express representative. “Because customers are using tools directly online, we need less customerfacing people, such as travel counselors who take reservations and bookings,” said Kim Goodman, president of AmEx’s global business travel unit. Ask yourself: How aware are you and your board members and leaders of these fast-moving technologies and how are you using them?
UNDERSTAND WHAT CREATES VALUE NOW Boards and leaders have always known that their objective is to create value for their stakeholders. But those sources of value are changing. In the agricultural age, the amount of land owned and tilled was what mattered. In the industrial age, value was based on an organization’s physical assets and manufacturing capabilities. In the services age, it was based on how many people an organization employed and their billable hours. In the information age, it was quantity and quality of the software code written. In the digital age, value is a function of the size and vitality of an organization’s social and mobile networks and their ability to cocreate new products and services. Boards and leaders hold a number of historical and framing biases that make it a challenge for them to see and invest in today’s intangible and often unmeasured sources of value. This is especially critical, given that less than 25 years ago, physical and financial assets constituted some 80 percent of corporate market value. Today, that amount is less than 20 percent, according to research by Ocean Tomo. As such, leaders need to rethink their capital allocation strategies. Recent research from McKinsey shows that most companies invest in the same assets year after year. Question: What is your organization’s strategy to capture the value from its financial, physical, intellectual, customer, human, brand,
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and network assets? Do you know how much, and what the return is, for each category?
REVISE YOUR ATTITUDE ABOUT THE WISDOM OF CROWDS AND THEIR POWER IN THE CLOUD All leaders must fully understand and appreciate that an organization’s next big idea may come from anywhere or anyone – whether insider or not. To ensure that an organization’s attitude about this new way of thinking is aligned with today’s realities, corporate directors need to ask their management teams how they are leveraging the collective wisdom of not just their own employees, but also the organization’s crowds, which include customers, prospects, investors, suppliers, and partners. Programs in place at Starbucks and Dell look beyond their own people for innovative ideas. In addition, Red Hat has shaken up the software industry by partnering “with the world” (and not just its internal R&D department) to create new offerings. It even crowd-sourced its own strategy. Apple is another great example. It inspired 345,000 people to develop apps that deliver billions of dollars of revenues and market value. Question: How do your corporate directors and leaders feel when it comes to open- and crowd-sourcing?
IMPLEMENT DIGITAL BUSINESS BEST PRACTICES Yesterday, companies focused on internal processes to improve efficiency. That inside-out focus worked in a world in which customers had few choices. But today, consumers can buy from anyone and everyone, both online and off. And employees can work for anyone anywhere – storing their knowledge and relationships in the cloud. As such, boards need to ask management how they are shifting their focus from insideout to outside-in and implementing digital best practices, regardless of where they originated – be it in their industry or not. Based on the increasing size and power of social networks, Nike reoriented its marketing processes to outside-in in order to capture the capabilities and insights of its fans and followers. To do this, Nike built Nike Digital Sport to develop products that allow the company to be with and where its customers are 24/7/365. This became the focal point of transforming Nike into a social company that has dramatically increased its revenues, while significantly cutting advertising costs. Fortune magazine reports that the strategy has generated a large increase in earnings before interest, taxes, depreciation, and
amortization. Question: Where are you applying digital best practices to ensure that you will reap the benefits enjoyed by companies in other industries? Here are the three places that every corporation seeking to become a digital enterprise needs to adopt: Strategy: Corporate strategy in the banking sector is no longer about products and services. Digital is a strategic imperative for all industries and all job functions. Boards need to play an active role in ensuring that their leadership teams consider these issues and opportunities and present plans about how they are investing in social, mobile, cloud, and big-data technologies. Research from Cap Gemini shows that social enterprises shift market and operating risk to other less-digitally savvy companies. Leadership: The concept of management as we all know it is quickly losing its power in a world in which everyone has a voice – including customers, employees, partners, and investors. Social technologies allow people to say and publicly share whatever they want about an organization, its leaders, and culture. In the context of increasing demand for accountability, transparency and open approaches involving all stakeholders, corporate directors need to think anew about their board composition and competencies. Although many have done a good job embracing diversity, most still lack members with today’s technology and strategy skills – this according to research by Spencer Stuart. Governance: The future for boards is less about traditional governance and regulatory compliance, and more about network alignment, capital reallocation to new sources of value and technology, and new strategies. Looking in the rear-view mirror of financial reporting will only go so far. Today, boards and CFOs must understand and rely on social intelligence about the future desires and needs of their stakeholders. The bottom line: Boards and leaders of all banks (regardless of size and client base) need to join the ranks of Amazon, American Express, Google, and Nike and become winners in their industry by becoming digital corporations. ■ Barry Libert, CEO of OpenMatters, is a technology investor, corporate director, and strategic advisor to boards and their leaders seeking to make the most of social, mobile, and big-data technologies.
New Associate Members as of March 2013 American Land Title Agency, Inc.
One Penn Plaza, Suite 3406 New York, NY 10023 Contact: Marc Lawrence, Principal Phone: (212) 239-1000 Email: mlawrence@americanlandservices.com
Bollinger Inc.
101 JFK Parkway, 5th Floor Short Hills, NJ 07078 Contact: Eileen Yuen, Vice President, Financial Institutions Practice Leader Phone: (973) 921-8283 Email: eileen.yuen@bollinger.com
DCI (Data Center Inc.)
20 W. 2nd Avenue Hutchinson, KS 67501 Contact: Mark Harris, Vice President, Marketing Phone: (620) 694-6800 Email: mharris@datacenterinc.com
Edwards Wildman Palmer LLP
One Giralda Farms Madison, NJ 07940 Contact: Charles R. Berman, Senior Partner Phone: 973-520-2322 Email: cberman@edwardswildman.com
Frenkel & Company
350 Hudson Street, 4th Floor New York, New York 10014 Contact: Stephen Lauria, Senior Vice President Phone: 212-488-0200 Email: slauria@frenkel.com
IDS Research & Development, Inc. 405 Cedar Lane Teaneck, NJ 07666 Contact: Jeffrey D. Zwirn, President 201-287-0900 jeffzwirn@alarmexpert.com
Summer 2013 New Jersey Banker
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More than 550 members, associate members and guests assembled for the First General Session at the NJBankers 109th Annual Conference.
109th
Photos Courtesy of Don Christensen and David Groul
Annual Conference
More than 550 members, associate members and guests attended the NJBankers’ 109th Annual Conference at The Breakers, Palm Beach, Florida. By all accounts, it was another successful event, with an impressive attendance and a lineup of dynamic speakers.
MEET THE NEWLY ELECTED AND RE-ELECTED NJBANKERS DIRECTORS AND OFFICERS NJBankers welcomes the following individuals who will serve on the board of directors: District 1: Christopher Martin, chairman, president and CEO, Provident Bank; and Robert Stillwell, president and CEO, Boiling Springs Savings Bank, were reelected to serve two-year terms. District 2: Mortimer O’Shea, president and CEO, Hilltop Community Bank; and Michael Schutzer, president and CEO, Harmony Bank, were reelected to serve two-year terms; District 3: Thomas Geisel, president and CEO, Sun National Bank was elected to a two-year term. Class B: Norman Beatty, chairman, president and CEO, First Hope
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Bank, was elected to serve a two-year term; Craig Montanaro, president and CEO, Kearny Federal Savings Bank, was appointed to fill the Class A vacancy created by the appointment of Angela Snyder, CEO and vice chairman, Fulton Bank of New Jersey, to second vice chairman, NJBankers. NJBankers extends its thanks to Gerald Lipkin, chairman, president and CEO, Valley National Bank, and Anthony Labozzetta, president and CEO, Sussex Bank, whose terms have expired from the board of directors. At the Annual Conference, Stewart E. McClure, Jr., regional president of Lakeland Bank, was sworn in as the 2013-2014 chairman of NJBankers board of directors. In addition, Gerald L. Reeves, president and CEO, Sturdy Savings Bank, assumed office as first vice chairman, and Angela Snyder, CEO and vice chairman of Fulton Bank of New Jersey, assumed office as second vice chairman of the Association. Congratulations to these 2013 – 2014 New Jersey Bankers Association officers, whose terms began on May 18, 2013. Many thanks to Kevin Cummings, president and CEO, Investors Bank, for his service as NJBankers 2012 – 2013 chairman. ■
Summer 2013
Incoming Chairman Stewart E. McClure, Jr., regional president, Lakeland Bank, is congratulated by Outgoing Chairman Kevin Cummings, president and CEO, Investors Bank.
Board members sworn in at the 109th Annual Conference were, from left: Robert Stillwell, president and CEO, Boiling Springs Savings Bank; Christopher Martin, chairman, president and CEO, The Provident Bank; and Craig Montanaro, president and CEO, Kearny Federal Savings Bank. Not present for photo: Mortimer O’Shea, president and CEO, Hilltop Community Bank; Michael Schutzer, president and CEO, Harmony Bank; Thomas Geisel, president and CEO, Sun National Bank; and Norman Beatty, chairman, president and CEO, First Hope Bank.
The 2013 – 2014 officers of the New Jersey Bankers Association. From left: Stewart E. McClure, Jr., regional president, Lakeland Bank; Gerald L. Reeves, president and CEO, Sturdy Savings Bank; Angela Snyder, CEO and vice chairman, Fulton Bank of New Jersey; and Kevin Cummings, immediate former chairman, NJBankers, and president and CEO, Investors Bank.
Incoming Chairman Stewart E. McClure, Jr., regional president, Lakeland Bank, addresses conference attendees with his vision for the coming year.
Immediate Former Chairman Kevin Cummings (left) presents a contribution made by members to John and Jean Gianacaci for the Christine’s Hope For Kids Foundation.
Keynote Speaker Kyle Maynard challenged attendees to think about “why we are here” and discussed how sometimes, “actions require bold courage.”
MARK YOUR CALENDAR Attendees of the conference visited with service providers in a bustling Exhibit Hall to learn about products and services which benefit member banks.
The NJBankers’ 110th Annual Conference will be held April 30 – May 4, 2014, at the Marco Island Marriott Beach Resort, Golf Club & Spa in Marco Island, Florida.
Summer 2013 New Jersey Banker
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Congratulations to the following members, who received special recognition in the NJBankers Community Service Award program at the Annual Conference: Representing their financial institutions are Frank Kissel, chairman, Peapack-Gladstone Bank; David Hemple, president and CEO, Century Savings Bank; Kevin Cummings, president and CEO, Investors Bank; Claire Giancola, vice president of training, Clifton Savings Bank; Scott Callahan, correspondent banking business development representative, Wells Fargo Bank, N.A.; William Ledgerwood, executive vice president and COO, Kearny Federal Savings Bank; and John McWeeney, Jr., president and CEO, NJBankers. Not pictured, Freehold Savings Bank.
NJBankers Community Service Awards Participation in the Community Service Award program highlights the significant role that banks play in the social and economic well-being of our great Garden State. NJBankers members are a vital part of the communities they serve. The Community Service Awards afford members an opportunity to highlight their institution’s community service initiatives. Forty-seven NJBankers members participated in the 2012 Community Service Award program. A panel of independent judges who are members of the Public Relations Society of America, New Jersey Chapter, reviewed the entries and six banks received special recognition at the NJBankers 109th Annual Conference in Palm Beach, Florida. Congratulations to the following members, who received special recognition at the Annual Conference: CATEGORY
MEMBER
Less than $300 million in deposits
Freehold Savings Bank
Between $300 million and $500 million in deposits
Century Savings Bank
Between $500 million and $999 million in deposits
Clifton Savings Bank
Between $1 billion and $2 billion in deposits
Peapack-Gladstone Bank
Between $2 billion and $5 billion in deposits
Kearny Federal Savings Bank
Over $5 billion in deposits
Investors Bank
National banks
Wells Fargo Bank, N.A.
The judges were also asked to choose “silver” participants, since it was difficult to choose just one entry per category. Those receiving silver recognition include: CATEGORY
MEMBER
Less than $300 million in deposits
Metuchen Savings Bank
Between $300 million and $500 million in deposits
Roselle Savings Bank
Between $500 million and $999 million in deposits
Ocean City Home Bank
Between $1 billion and $2 billion in deposits
Oritani Bank
Between $2 billion and $5 billion in deposits
Lakeland Bank
Over $5 billion in deposits
The Provident Bank
National banks
Bank of America
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COMMUNITY PARTICIPATION INCLUDES A WIDE RANGE OF ACTIVITIES, SUCH AS VOLUNTEERING FOR, HOSTING OR SPONSORING: • Relief programs for those affected by Hurricane Sandy, including food and clothing donations, setup of charging stations, help with cleanup of properties, financial support and so much more, • Financial literacy programs for children, young adults and senior citizens, • Scholarships and grants for students, • Food banks and food kitchens, • Donations to countless community groups for their fundraising efforts, • Programs for veterans and their dependents, • Fundraising for first responders including police, fire and EMS squads, • Walks supporting the March of Dimes, American Heart Association, and for research for breast cancer, multiple sclerosis, leukemia, diabetes and many more, • Food drives, toy drives, coat drives and drives for school supplies, • Programs for senior citizens for avoiding identity theft, • And countless other activities to benefit community-based organizations. NJBankers compiles submissions into a book that is distributed to key federal and state legislators as well as New Jersey media outlets. NJBankers encourages members to participate in the program and make your service to your communities known. Calls for entries begin in October and will be announced in the NJBankers Bulletin. NJBankers also developed a slide presentation from the many contributions banks made throughout the year and that were submitted as a part of the program. The presentation preceded the Second General Session and provided a taste of the many community-spirited activities in which members participate. The slide presentation will also be shown before the start of NJBankers seminars and conferences. ■
Summer 2013
Forrey-Gallman Award
John E. McWeeney, Jr., president and CEO of NJBankers, presents the Forrey-Gallman Award to Norman E. Beatty, chairman, president and CEO, First Hope Bank, at the 109th Annual Conference.
On behalf of the NJBankers board of directors, President/CEO John E. McWeeney, Jr., presented the 2013 Forrey-Gallman Award to Norman E. Beatty, chairman, president and CEO of First Hope Bank. The award is bestowed upon members who have demonstrated long-term outstanding service to the New Jersey banking industry. The award is named for Robert C. Forrey and Emil A. Gallman, long-time CEOs of the New Jersey Bankers Association and the New Jersey Savings League, respectively, who inspired Association members with their leadership in assuring that members were well represented in the areas of government relations, public relations and educational opportunities. Beatty has served as chairman of the board, CEO, and president of First Hope Bank, a National Banking Association, located in Hope, since 1984. Graduating Blair Academy, Blairstown (1958), the United States Military
They have the banking industry experience that help us find better ways to manage risk effectively and economically.
Academy (1963), and the University of Alabama Graduate School of Business (1971), he served 20 years in the Army from 1963-1983. Retiring as a lieutenant colonel in 1983, he joined First Hope Bank and worked with his father, Lewis C. Beatty, until the latter’s death in 1984. Active in civic and professional associations, Beatty has served the New Jersey Bankers Association as chairman of the Agricultural Committee (19861987); Executive Committee (1989-1992 and 1999-2002); treasurer and secretary (2005-2007); vice chairman (2007-2008); and chairman (March 2008-December 2008). During his tenure, New Jersey’s two banking organizations, the New Jersey League of Community Bankers and New Jersey Bankers Association, combined effective Jan. 1, 2009, and Beatty became the co-chairman of the newly aligned New Jersey Bankers Association. Within the American Bankers Association, he has represented New Jersey on the Community Bankers Council (1991-1996). He served on the Communications Council (2000-2003), the Advisory Board of the Stonier Graduate School of Banking (1998-2000 and 2009-present), and has been a Stonier Capstone Advisor since 2005. Beatty currently serves on the ABA board, serving a two-year term. Residing in Hope Township, he is married to the former Agnes Richards of Columbus, MS, who is the vice chairman of First Hope’s board of directors. Their sons are the fourth generation of Beattys to work with First Hope Bank. Lewis R. Beatty joined the bank in 1999 and serves as its chief financial officer. Daniel G. Beatty joined the bank in 2007 and is the bank’s chief operations officer. Congratulations, Norm! Well deserved! ■
That’s confidence through clarity. ParenteBeard provides independent, objective services tailored to the complex needs of today’s financial institutions. Our team of internal audit, information technology and compliance professionals help senior management and audit committees to focus on creative and effective ways to manage risk.
See what we can do for you.
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Summer 2013 New Jersey Banker
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Behind the Teller Line
Fulton Bank of New Jersey A RICH HISTORY NOW REACHES STATEWIDE
Fulton Bank of New Jersey CEO and Vice Chairman Angela Snyder is pictured with signage reflecting the bank’s branding. Fulton Bank of New Jersey services customers state wide with access to over 600 bank employees. Snyder was installed as NJBankers' second vice chairman at the 109th Annual Conference.
F
ulton Bank of New Jersey is a fullservice commercial bank based in Mount Laurel, New Jersey, with 72 banking offices and 13 loan production offices located throughout northern, central and southern New Jersey.
OUR RICH HISTORY On Oct. 22, 2011, Fulton Bank of New Jersey became a new state chartered bank. This was the result of a merger between two affiliate banks, The Bank and Skylands Community Bank. To understand our current presence, it’s best to look back at how a collection of community banks became Fulton Bank of New Jersey. The Bank of Gloucester County was founded in 1989 as a commercial bank, which primarily operated in one county, Gloucester. In 1997, The Bank of Gloucester County became part of Fulton Financial Corporation, remaining under a community banking business model. This model is how Fulton Financial and its affiliate banks operate together – where senior management’s leadership is combined with local decision making – all held at the affiliate bank level. In 2003, The Bank of Gloucester County purchased The Bank of Woodstown, which was established in 1920 and operated in the Salem County area. The decision was made to call the newly merged banks “The Bank.” Shortly after, a last merger took place when The Bank purchased First Washington State
20 New Jersey Banker
Bank in 2004, which primarily operated in the central region of the state. Finally, in 2011 The Bank merged with its sister affiliate bank, Skylands Community Bank, which primarily operated in the state's northern counties to form Fulton Bank of New Jersey. The combined bank now gives customers statewide coverage and access to over 600 Fulton Bank of New Jersey employees.
OUR MISSION STATEMENT Our company enriches the communities we serve by creating financial success together with our customers and employees. We are a company that takes the time to care, listen and understand – all with the goal to deliver an exceptional customer experience. We are known for our integrity, trustworthy business practices and daily actions that demonstrate our commitment to our customers, employees and communities.
THE SPIRIT OF COMMUNITY BANKING Fulton Bank of New Jersey stays true to the spirit of community banking, where relationships count and local values are shared. It’s our commitment to provide our customers with the one-on-one service they deserve and offer financial products designed to fit every lifestyle. As part of Fulton Financial Corporation, Fulton Bank of New Jersey offers a broad array of financial services typically provided by larger banks, while maintaining local, dependable service and ongoing community support. Our employees are proud of our tradition
of outstanding customer service and community support that has been a long hallmark of our bank. We have employee volunteer committees that organize events and fundraise for organizations such as the United Way and American Heart Association. Throughout the year, our employees volunteer their time and resources to ensure our communities continue to thrive. In 2012, Fulton Bank of New Jersey supported over 800 community events across the state. To help members of our communities affected by Hurricane Sandy, employees organized food drives and collected more than 1,000 pounds of food for the Community Food Bank of New Jersey in Egg Harbor Township and The Food Bank of Monmouth & Ocean Counties. Employees also participated in a “Jeans Day,” where employees paid to wear jeans to work every Friday during the month of February. This event raised over $5,000, which was also donated to the food banks. Volunteering our time and resources is just one way the employees of Fulton Bank of New Jersey support our communities. Each year we participate in the National Financial Literacy Month by teaching children and community groups about the importance of saving, budgeting, managing money and the importance of credit. In 2012, employees taught lessons to over 850 children throughout Atlantic, Burlington, Camden, Cumberland, Gloucester, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Salem, Somerset, Sussex and Warren counties. Fulton Bank of New Jersey is proud to be part of this vibrant and unique state. At the heart of it, our focus on people, community and integrity remains a tradition – upheld by employees who are passionate about their customers and the communities where we all work and live. ■
Summer 2013
Upcoming Events August 12, 2013
2013 Annual Golf Outing
Fiddler’s Elbow Country Club, Bedminster September 25-27, 2013
Senior Management Conference
Revel, Atlantic City October 3, 2013
Atlantic Technology Systems Comprehensive IT Solutions for your Bank’s Business Needs Robust IT Infrastructure Unmatched Security Services Unique Network Management Services New! Mobile Device Management
Operations & Technology Roundtable
New! IT Policy Management
Crowne Plaza Monroe, Monroe Township
Detailed Network Management
October 7, 2013
Enterprise Risk Management Conference Crowne Plaza Monroe, Monroe Township October 9-10, 2013
Federal Legislative and Regulatory Visit to Washington, DC Mayflower Renaissance, Washington, DC October 17-18, 2013
Annual Human Resources Conference
Caesar’s Resort, Atlantic City October 28, 2013
6th Annual Golf Outing to Benefit Financial Literacy Mercer Oaks Golf Course, West Windsor November 1, 2013
Directors College with FDIC
Crowne Plaza Monroe, Monroe Township
Timely Data Backup and Disaster Recovery Rich Collaboration Solutions
Atlantic Technology Systems is your full service IT partner, delivering exceptional quality, price and performance coupled with an unmatched level of expertise and support.
Visit our website and submit a request — we will call you back! We specialize in providing customized IT solutions to the financial services industry, and our superior customer service ensures that clients have expert support through the entire information technology lifecycle. You benefit from our:
November 15, 2013
CFO Conference with FMS
Project management driven approach
Renaissance Woodbridge Hotel, Iselin
Deep multi-faceted expertise
November 19, 2013
Customer service and support model
Resorts Hotel & Casino, Atlantic City
Professionalism and accountability
November 20, 2013
Tailored solutions which scale and adjust as your needs demand and your business grows
2013 New Leaders
BankHorizons 2013
Resorts Hotel & Casino, Atlantic City January 10, 2014
Economic Leadership Forum
SAFETiNET™ is your solution delivering expertise in regulatory compliance.
Call us at 888-921-2934 to find out more about our Virtual CIO services!
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The Palace at Somerset Park, Somerset
Summer 2013 New Jersey Banker
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Meet Our Select Service Providers for Internal Audit Outsourcing
Expert Solutions to Complete Your Internal Audit Program
P
&G Associates is a leading service provider of outsourced internal audit services exclusively dedicated to the community banking industry for over 20 years. Our outsourced internal audit services cover a full range of activities, including: • Bank Secrecy Act/AML • Lending operations and compliance • Deposit operations • Regulatory compliance • Information technology • IT risk: internal and external vulnerability assessments (IVA and EVA) and social engineering • Financial reporting • Branch operations • Trust activities • Software solutions: PRISM®: The ALLL Calculator
As a firm, we are flexible to meet the exact needs of our clients: • Experienced firm dedicated to the banking industry • Impeccable reputation with regulators • Unmatched quality control across all of our product lines • Professional, experienced subject matter experts • Outstanding client service • Cutting-edge proprietary technological audit tools and innovations • Sensitive to your cost containment needs For a confidential review and consultation, or to learn more about P&G Associates’ outsourced and co-sourced audit service and software solutions, please feel free to contact us today! ■
For more information, visit www.pandgassociates.com, call (732) 651-1700 or email whatsyourrisk@pgcpa.com.
Be First with COCC
Our customers are our shareholders - it’s no secret who comes first!
We invest in our customers • More integration • More customization • More support
We deliver on every promise we make.
Customer satisfaction matters
COCC’s reference list = COCC’s customer list www.cocc.com 888.678.0444
22 New Jersey Banker
Summer 2013
Meet Our Select Service Providers for Internal Audit Outsourcing
The Science of Regulatory Compliance BANK ON THE EXPERTS IN OUTSOURCED INTERNAL AUDITS
T
he Mercadien Group’s Financial Institutions practice is led by Salvatore Zerilli, CPA, managing director and principal of Mercadien, P.C., CPAs. The Mercadien Group specializes in outsourced internal audit services for community and commercial banks, and U.S. branches of foreign banking institutions. His extensive background in banking, accounting and consulting makes him a highly sought-after expert in the banking industry. He is also a certified anti-money laundering specialist (CAMS), working with financial institutions to ensure they have properly implemented Bank Secrecy Act compliance programs that meet or exceed federal and state regulations.
EMPIRICAL. MEASURABLE. RELIABLE. Mercadien’s comprehensive internal audit program is customized to meet the needs of each financial institution and includes an onsite assessment of all areas having the greatest potential for risk utilizing a topdown approach. From branch and lending operations to IT and accounting practices, The Mercadien Group’s team of experienced auditors tests for key internal controls, then identifies operational risks posed by noncompliance with institutional policies and procedures, and government regulations. We
report our findings to management and board audit committees, including recommendations that may add value or reduce cost to your institution. Measurable savings are a strategic advantage of Mercadien’s methodology. As costs continue to rise, the expense of maintaining an effective in-house internal audit department can be significant, and ongoing training and time commitments to remain up to date on the latest regulatory requirements can add significant expense to these costs. Mercadien provides an efficient, turnkey approach. The Mercadien Group's staff has an average of more than 20 years’ experience in bank audits. The firm’s uniquely qualified professionals can either manage or supplement your internal functions, making Mercadien the one source solution for banks of all sizes.
For more information, visit www.mercadien.com, or contact Salvatore Zerilli, CPA at (609) 689-9700 or szerilli@mercadien.com.
NJBA members receive an additional 5% discount on car insurance through Plymouth Rock Assurance. Call 888-391-4910 or visit NJBAQuote.com today for your free quote and special 5% discount.
A member of
Plymouth Rock Assurance is a marketing name used by a group of separate companies that write and manage property and casualty insurance in multiple states. Insurance in New Jersey is offered by Plymouth Rock Management Company of New Jersey on behalf of High Point Property and Casualty Insurance Company and its affiliates. Each company is financially responsible only for its own insurance products. Actual coverage is subject to the language of the policies as issued by each company. Certain restrictions, requirements and limitations apply to our free programs, policy features and discount offerings. For a full description of our customer benefits, please visit PlymouthRockNJ.com. Group discounts apply to policies written in High Point Property and Casualty Insurance Company. If the discount is not currently applied, it may be added upon request. May not be combined with any other group discounts. Offer available to New Jersey residents only. ©2013 Plymouth Rock Management Company of New Jersey. All rights reserved. 6954/052013
Summer 2013 New Jersey Banker
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Meet Our Select Service Providers for Internal Audit Outsourcing
Make Wolf & Company’s 100 Years of Experience Work for You
W
olf & Company, P.C. is a leading regional certified public accounting and business consulting firm founded in 1911, with offices in Boston and Springfield, Mass., and Albany, New York. Building on our tradition of unparalleled guidance, we provide our clients with assurance, tax, and risk management services, business consulting, and WolfPAC Integrated Risk Management® – with insight for tomorrow’s challenges. Nearly 200 employees serve family and closely held businesses, financial institutions, investment advisors and broker-dealers, employee benefit plans, public companies, professional services firms, technology companies, educational institutions and other nonprofits and high net worth individuals. The firm’s services to global clients are enhanced through our affiliation with PKF North America and PKF International, associations of legally independent accounting and consulting firms that share our same standard of excellence. As a PCAOB registered and inspected firm, we are qualified to practice before the SEC, and we adhere to the strictest industry
quality standards. Clients benefit from the firm’s specialized industry expertise, extensive resources and responsive service. We work collaboratively with our clients and serve as an objective sounding board, providing advice and guiding decisions with insight to help you achieve your goals. Active involvement of our owners and senior management drives service delivery by our multi-disciplinary teams. Today Wolf remains dedicated to our core values of Vision, Integrity, Respect, Trust, Understanding, and Excellence. We work to earn your trust and respect through attentive guidance and insight. Whether you have local, national, or international requirements our expertise and alliances provide the resources to tackle the complexities of your business situation. ■
For more information, visit wolfandco.com, or contact Martin Caine, member of the firm, at (413) 726-6852 or mcaine@wolfandco.com.
We assist banks, attorneys and title agencies with Corporate and UCC searches in NJ and PA. We are Signature Information Solutions® - provider of Charles Jones® and Data Trace® products and services. We offer a full suite of corporate and UCC products for your due diligence needs. 9 Experience you can trust - 55 years of combined experience in corporate and UCC searching. 9 Online order entry and retrieval - you can access your searches right when you want them. 9 Expert customer service staff available to assist via Live Chat, email or telephone.
We can help you with Corporate and UCC Searches. 24 New Jersey Banker
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UCC PLUS Search (NJ) Corporate Status Report Good Standing Certificate Franchise Tax Report Corporate Copies Nationwide Corporate Services also available
Call Lyman Hopper or visit our 609-218-4037 www.signatureinfo.com web site Charles Jones and Signature Information Solutions are registered trademarks of Signature Information Solutions LLC. Data Trace is a registered trademark of Data Trace Information Services LLC. ©2013 Signature Information Solutions LLC. All rights reserved.
Summer 2013
The associates of First Hope Bank salute BankHorizons is the premier exposition focused on emerging opportunities and innovative solutions for the New Jersey banking industry. Attendees of this one-day show enjoy an exciting and thought-provoking program and prime opportunities to reach out to leaders in the community banking industry. Network with high level banking executives at BankHorizons!
Norman E. Beatty for his outstanding service to the New Jersey banking industry and congratulate him on receiving the 2013 Forrey-Gallman award!
Attendees include bank executives, management & key
Norman E. Beatty, Member, NJ Bankers Board of Directors
staff involved in: Operations, Technology, Lending, Retail Banking, Marketing, Human Resources, Security, Compliance and Risk Management.
SAVE THE DATE NOV. 20, 2013 RESORTS CASINO HOTEL ATLANTIC CITY, NJ
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Summer 2013 New Jersey Banker
25
Feature
Introducing Associate Member New Jersey Community Capital
M
any NJBankers members already know about New Jersey Community Capital (NJCC), a statewide nonprofit organization with a mission to transform at-risk communities through financing and technical assistance. Late last year, we assumed the servicing of much of the former TICIC portfolio of affordable housing and community development projects, happy to help continue the great work that NJBankers and its community bank members have undertaken on behalf of the residents of our state. For those of you, however, who may not yet know us, we would like to introduce ourselves. We hope this information will give you a better sense of who may be partnering with you in your participation in the former-TICIC loans, and we look forward to discussing opportunities to partner with you in future loans. Moreover, as a community development financial institution (CDFI) certified by the U.S. Treasury, we can help you meet your CRA goals: investing in NJCC provides you a chance to work with a strong institution with an exceptional record, while at the same time meeting your social objectives and augmenting the benefits you already provide to distressed communities here in New Jersey. To date, we have not once failed to repay an investment we have received. Community transformation is at the heart of our mission, and financial stewardship is foremost in our success in meeting it. Over the last 25 years, NJCC has worked to help New Jersey’s at-risk residents work, learn, and attain stable and productive lives in the face of economic challenges. As the largest statewide CDFI in New Jersey, we have grown to over $225 million in capital under management, and every year we provide tens of millions of dollars in loans to help transform New Jersey’s lowincome communities through quality housing, community facilities, small businesses, and economic development projects. Our loans have fostered the creation or preservation of thousands of affordable housing units, early care and charter school seats, and high-quality jobs. We buttress our investments
26 New Jersey Banker
by providing technical assistance to our community-based borrowers, helping them improve their own financial stewardship and to successfully manage and leverage the capital we provide them to complete these projects. Here are a few examples of successful projects we have helped to finance, with the support of our socially-motivated investors, to improve the well-being of New Jersey communities:
DEKBON COMMUNITY DEVELOPMENT CORPORATION, ATLANTIC CITY Dekbon CDC is a volunteer-driven organization that converts blighted homes and vacant lots into homeownership opportunities for low- and moderate-income residents of Atlantic City. In 1999, we provided Dekbon with a loan to construct three properties. The organization quickly completed and sold the homes, and so we recycled this loan into new projects. By 2007, we had provided Dekbon with an affordable $500,000 revolving line of credit so it could efficiently move from one project to the next. To date, Dekbon has used NJCC funding to complete 30 homes and serve 175 people in and around Atlantic City, helping to reshape entire neighborhoods. Dekbon’s homeownership counseling services have ensured that not one of its buyers has experienced foreclosure.
PINE TREE MOBILE VILLAGE, EATONTOWN In 2006, Pine Tree Mobile Village – a tightknit 130-home community a few miles from the Jersey Shore – faced the threat of displacement when an adjacent mall sought to buy its land for a parking lot. The Affordable Housing Alliance (AHA), a community developer in Monmouth County, stepped in to buy the land, and they came to us for long-term acquisition financing. Then, when one of AHA’s sources of repayment unexpectedly disappeared, we continued to extend the loan term at its original rate to ensure the project succeeded. Eventually, we helped AHA secure the permanent financing it needed to maintain its commitment to the Pine Tree residents. This year, the financially stable
community brought in 17 new homes to provide emergency shelter to families displaced by Hurricane Sandy. NJCC again supported AHA in funding this expansion.
MARION P. THOMAS CHARTER SCHOOL, NEWARK Marion P. Thomas Charter School is a high-performing charter school that provides over 600 students from grades K-8 with a strong educational foundation, a diversity of learning experiences, and after-school programming to keep them engaged in learning after the school day is over. Since 2006, we have provided Marion P. Thomas with four loans totaling $6 million to help them acquire and then expand a new facility, and then to cover the predevelopment costs for a second building. These loans have allowed the school to consolidate in one location, enhancing the school’s capacity, management efficiency, and community presence.
LANGOSTA LOUNGE, ASBURY PARK When Hurricane Sandy devastated the Jersey coastline, we responded immediately, meeting with investors and stakeholders and quickly accumulating $3 million in private capital to launch REBUILD New Jersey, our disaster loan fund for Sandy-impacted small businesses. One of the first businesses we helped was the Langosta Lounge, a restaurant on the Asbury Park Boardwalk. The restaurant was battered by Sandy, but our loan helped it pay for needed repairs; replace damaged inventory; and retain many of the 75 employees who otherwise may have been laid off. Langosta Lounge reopened its doors in May 2013, another step in the rebirth of the Jersey Shore. The above loans account for just a few of the dozens of projects in which we invest every year, from single homes and businesses to large New Markets Tax Credit Projects that serve hundreds of people. We are more than just a lender, however. Over the last several years, our organization has emerged as a leading driver of the long recovery from the devastation wrought by the foreclosure crisis on New Jersey communities.
Summer 2013
The crisis hit our state especially hard – with 7.3 percent of mortgaged homes in foreclosure, New Jersey has the second highest rate in the nation – and recovery has been slower than in most places. Our financial capacity and culture of innovation positioned us to develop new responses to the adversity we saw resulting from this crisis. First, we incorporated Community Asset Preservation Corporation (CAPC) in 2009 in order to complete difficult acquisitions of abandoned homes at a large scale and then work with local community developers to return them to productive use. CAPC has thus far acquired over 250 housing units, providing quality homes to new families and reducing the damaging effects of abandoned homes on their surrounding blocks. Last year, we launched our next groundbreaking recovery program, ReStart. Partnering with several private investors, we purchased 261 deeply discounted nonperforming mortgages through a federal auction, including 125 in the Newark region. By providing these homeowners with a
combination of affordable principal reduction and intensive one-on-one counseling, we will help many of them avoid foreclosure and displacement, and will prevent their neighbors from suffering the consequences of additional abandoned homes. Meanwhile, CAPC will redevelop the already vacated homes in order to strengthen the neighborhood and offer more affordable housing opportunities. We believe ReStart can serve as a model for hard-hit communities across the country, and that it can be expanded here in New Jersey as well. Our next major step is to expand our response to New Jersey’s other major crisis, Hurricane Sandy. While we already have been able to help many small businesses recover from the impacts of the storm, we know that others are still struggling to reopen their doors. Moreover, we realize that thousands of shore-area residents remain displaced and are struggling to find stability. We have seen the dedicated response that many New Jersey banks have made to the housing recovery effort, and in the coming months, we will join these efforts by launching a Shore Investment Fund to channel
capital into recovering communities. NJCC is the only nonprofit CDFI in New Jersey with the financial and human capacity to fund community development projects and innovations across the state at a large scale, and to quickly and effectively respond to crises ranging from the economic to the natural. From another perspective, we are the only financial institution in the state with an expansive capital base that also has the underlying mission and staff expertise to exclusively extend its capital to underserved communities, and we do so while maintaining our financial strength. We believe that stabilizing communities, especially in the wake of the recent crises facing New Jersey, benefits the entire state. We are uniquely positioned to lead and expand these community reinvestment efforts, but we cannot do it alone, and welcome the chance to partner with you. If you would like to learn more about how we can partner to achieve these goals, and how we can help your community bank meet its CRA obligations, we invite you to contact Peter Grof, NJCC’s deputy to the president, at (732) 640-2061 x406 or pgrof@njclf.com. ■
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Summer 2013 New Jersey Banker
27
Bank Notes
Jane A. Kurek
James D. Nesci
Richard Conte
Marc Piro
Martin J. Brady
Randy Williams
Marc Magliaro
William Jacobs
Angela Ho
Terrance McCarty
William P. Taylor
David Wigg
THE PROVIDENT BANK FOUNDATION/ THE PROVIDENT BANK Jane A. Kurek has been named executive director of The Provident Bank Foundation. In this role, she will manage the foundation’s giving program, which supports and serves communities within Provident Bank’s 11-county footprint. James D. Nesci has been promoted to executive vice president. He serves as chief wealth management officer at Provident and also is president of Beacon Trust Company, a subsidiary of Provident. Nesci has more than 20 years of financial industry experience and is working to enhance and expand wealth management services in response to the growing demand for sophisticated and reliable financial advice. He is a member of Beacon Trust’s board of directors and Provident Bank’s Executive Leadership Team, which drives the direction of the bank.
VALLEY NATIONAL BANK Richard Conte has been promoted to first senior vice president and northern division manager of retail banking. He is responsible for managing the business to business and consumer sales activities for 75 branches throughout Bergen, Sussex, Warren and Morris counties in New Jersey, while striving to continuously improve the customer experience. Marc Piro has been promoted to first vice president and public relations/marketing products manager. Piro joined Valley in 1999 and brings over 13 years of marketing experience to his position. He manages the marketing initiatives for several lines of business including consumer loans and
28 New Jersey Banker
wealth management. He also assists in developing marketing copy for advertisements, point of sale displays, brochures and other marketing channels. Piro coordinates public relations efforts for the bank as well.
CENTER BANCORP INC. (UNION CENTER NATIONAL BANK) Rona E. Korman has been appointed as senior vice president and general counsel of the bank. Korman will be responsible for Center’s legal department, and also will join the bank’s senior management committee.
BCB BANCORP, INC., BCB COMMUNITY BANK Thomas Coughlin has been appointed to president of BCB Bancorp, Inc., and BCB Community Bank. Coughlin will continue to serve as COO of BCB Bancorp Inc., and BCB Community Bank. Coughlin has more than 28 years of financial industry experience and received his CPA designation in 1982. Donald Mindiak, with more than 30 years of banking experience, will remain as CEO of both BCB Bancorp, Inc., and BCB Community Bank.
PEAPACK-GLADSTONE BANK Martin J. Brady has been appointed to senior vice president and managing director, multifamily lending. Brady is now part of the bank’s multi-family lending team serving both the New York City and New Jersey marketplace. Brady joined the bank in February 2013 after a 30-year career in the banking industry. Randy Williams has been promoted to senior
vice president and is responsible for growing the commercial real estate loan portfolio. Based at the bank’s headquarters, Williams is part of an experienced team that provides clients with full banking solutions ranging from commercial lending products to wealth management. Williams has 26 years experience in the banking industry. With 20 years’ experience in banking and commercial real estate, Marc Magliaro has been promoted to senior vice president. Since joining the bank in 2006, Magliaro has closed in excess of $250 million in new business and is part of an experienced team specializing in commercial real estate and multi-family lending. His responsibilities include growth of the commercial loan portfolio throughout the state.
NORTHFIELD BANK William Jacobs has been appointed to CFO. He joined Northfield in 2006 as vice president/ controller and was promoted to senior vice president in 2010. Jacobs, a CPA, assumed the role of CFO with Steven M. Klein’s promotion to president. Angela Ho, who joined Northfield Bank in September 2012 as vice president, will assume responsibilities as controller of the company and the bank. Ho most recently held the position of accounting policy manager/assistant controller at Signature Bank.
TD BANK Terrance McCarty has been promoted to senior vice president and director of credit management for its health care banking group. In
Summer 2013
The Stability You Want
this newly created leadership role, McCarty will be responsible for managing the credit underwriting and credit administration functions for the bank’s growing health care banking group, which delivers customized solutions to health care organizations from Maine to Florida. McCarty has 25 years of experience in the health care lending industry and is regarded as a leading expert in health care finance.
should come with the service you deserve FOS is now part of Herbein + Company, Inc. Together, we offer the STABILITY of working with familiar faces, DEDICATED service teams making decisions locally, and the FOCUS of working with community banks. SERVICES Internal Audit Compliance Consulting Risk Managment Collateral Field Exams Tax and audit
SOMERSET SAVINGS BANK William P. Taylor has been named president and CEO of the bank. Taylor, previously president and chief operating officer, assumed the additional title of CEO following the planned resignation of David Prugh on Dec. 31. Taylor, a CPA, is also a member of the bank’s board of directors, having first been elected to the board in 2007. He joined Somerset Savings Bank in 1983 and has over 30 years of experience in the financial services industry. David Wigg has been promoted to senior vice president and loan division manager, and also serves as CRA officer. Most recently he was vice president and loan division manager, starting with the bank in 1983. ■
CONTACTS James A. Michalak, CPA, CITP Thomas R. Strause, CIA, CFE, CBA, CFSA, CISA Debbi S. Fetter, CFIRS, CISA, CFSA, CRMA
www.herbein.com
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Summer 2013 New Jersey Banker
29
Bank Shots
NVE Bank branch managers from the bank’s 12 Bergen County branches gave a savings lesson to first, second and third grade students as part of the ABA Education Foundation’s 17th Annual Teach Children to Save Program. Over 700 students attended classroom sessions conducted by the bank, which included activities about saving, earning interest and determining needs versus wants. Adults pictured are Nicole Alpern, Smith School teacher; Susan DeMaria, NVE Bank Closter branch manager; and Robert Rey, NVE Bank president/CEO.
Columbia Bank, through its Columbia Bank Foundation, has presented a $12,600 grant to the People to People Foundation of Gloucester County, Inc. The community grant was used to underwrite their computer and technology upgrade program. People to People’s mission is to provide financial and advocacy assistance to Gloucester County residents who have experienced a financial hardship due to loss of employment, sickness, accident, fire or other unforeseen emergency. Pictured, from left: Kimberly Nolan, Deptford branch manager, Columbia Bank; Bernadette Blackstone, executive director, People to People; and Mark Schott, regional vice president, Columbia Bank.
Sussex Bancorp, the holding company for Sussex Bank, visited the NASDAQ MarketSite in Times Square to celebrate its 15th anniversary as a public company with NASDAQ, and in honor of the occasion rang the closing bell. All the Sussex Bancorp board members attended the event together with Sussex Bank’s leadership team.
30 New Jersey Banker
Dominic J. Romano, chairman of the board of Capital Bank of New Jersey, was chosen by the Philadelphia Business Journal as one of the greater Philadelphia area’s outstanding directors. PBJ received nearly 100 nominations from area organizations and Romano was one of 10 honorees chosen for the award. From left to right: Christopher Bruner, office managing partner, Ernst & Young, LLP; Romano; and David Hanrahan, president/CEO, Capital Bank of New Jersey.
Pascack Community Bank announced the bank’s grand opening celebration and ribbon-cutting ceremony for its eighth branch, Bank of Lodi, Division of Pascack Community Bank. The reception included honorary guests Lt. Gov. Kim Guadagno and Lodi Mayor Marc Shrieks, who jointly officiated the ribbon cutting ceremony with Jon F. Hanson, chairman of the board; Bruce M. Meisel, president and CEO; and Mike Elayan, vice president of retail banking and operations.
NJBankers was recognized at the Rutgers Veteran and Military Appreciation Dinner for its support through the New Jersey Bankers Education Foundation. Pictured, from right: Colonel Stephen G. Abel, U.S. Army (retired), and director, Veteran and Military Programs and Services, Rutgers; Robert E. Stillwell, president and CEO, Boiling Springs Savings Bank, and chairman of the New Jersey Bankers Education Foundation; and James M. Meredith, executive vice president, New Jersey Bankers Association, and treasurer and secretary, New Jersey Bankers Education Foundation.
The MagyarBank Charitable Foundation recently granted $5,000 to the Central Jersey Housing Resource Center. The grant was awarded for individual and group housing services and supports their mission in providing low and moderate income families with the educational skills, resource connections, and financial literacy they need for home ownership and maintenance. Pictured, from left: Jay E. Castillo, president, MagyarBank Charitable Foundation; Sharon Clark, executive director, Central Jersey Housing Resource Center; and Ken Bland, community relations specialist, Magyar Bank.
The OritaniBank Charitable Foundation recently awarded a $20,000 grant to Adopt-a-Soldier Platoon, Inc. for its Operation NJ program which was created to support over 1,000 soldiers, sailors, marines and airmen from the 508th Military Police Company in Teaneck and the 117th Combat Sustainment Support Battalion in Lawrenceville, NJ – all stationed now in Afghanistan – plus other units, to lift troop morale and welfare. Pictured, Alan Krutchkoff, president, Adopt-a-Soldier Platoon, Inc. (left), and Kevin Lynch, president of OritaniBank Charitable Foundation.
The NJBankers Women in Banking Committee planned the annual Women in Banking Conference, which drew 429 bankers from across the state. The conference, in its third year, offered panels on “Mergers and Acquisitions: Managing Change for Career & Success,” “Work/Life Integration 2.0: Getting to Specifics,” and “Paths to Success: The Journey Continues,” as well as general sessions that included Keynote Speaker Linda Bowdin. The planning effort was spearheaded by Geri Kelly, executive vice president/human resources officer of Columbia Bank and chairman of the committee.
Summer 2013
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