New Jersey Banker Winter 2013 by The Warren Group

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WIN T ER 2 0 1 3

B A N K E R

Re-Imagining a Bank’sBrand 2012 New Leaders Honored At Bank Horizons | It’s All About Communities ENDORSED BY THE NEW JERSEY BANKERS ASSOCIATION

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Marla Feldman Vice President 914-273-0351

Adnan Mneimne Vice President 800-590-7305

Scott Strebe Vice President 213-236-6999

Robert Wettergren Vice President 214-468-7851

Philip Toscano Vice President 917-639-4438

Robert Markey Vice President 816-229-7884

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

James A. Hughes * President/Chief Executive Officer Unity Bank

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

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

Paul E. Fitzgerald President/Chief Executive Officer First Bank

Thomas J. Kemly President/Chief Executive Officer Columbia Bank

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

Robert Rey President/Chief Executive Officer NVE Bank

Thomas X. Geisel President/Chief Executive Officer Sun National Bank

Peter Kenny President/Chief Executive Officer Heritage Community Bank

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

Michael Schutzer President/Chief Executive Officer Harmony Bank

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

Frank A. Kissel * Chairman Peapack-Gladstone Bank

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

Thomas J. Holt * Senior Vice President Bank of America

Anthony Labozzetta President/Chief Executive Officer SussexBank

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

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. 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

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

Kevin Cummings * Chairman President/Chief Executive Officer Investors Bank

Gerald L. Reeves * Second Vice Chairman President/Chief Executive Officer Sturdy Savings Bank

Stewart E. McClure, Jr. * First Vice Chairman President/Chief Executive Officer Somerset Hills 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

*Executive Committee

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

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

Claire Anello Office Manager, Database and Website Manager ext. 631 canello@njbankers.com

Contributing Editor

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

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.

Winter 2013 New Jersey Banker

Table of Contents

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Departments

6 Chairman’s Platform Wrapping Up and Moving On 8 From the President's Office Time to Move Forward 10 Politics & Policy A Very Busy Fall 38 Bank Notes 41 Upcoming Events 42 Bank Shots 44 New Associate Members

20 Cover Story: Re-Imagining a Bank’s Brand

44 Bank Holidays

Features

12 Directors' Corner What’s the Big Deal about Big Data?

Feature Media Relations are Key to Repairing Banking’s Image

14 Feature Game-Changing Technologies

Feature 30 NEW LEADERS Long-Time Employees Retire from New Jersey Bankers Association

Feature ‘It’s All About Community’

New Jersey Banker

Feature Evolution of the Bank Marketing Strategy

38 Behind the Teller Line City National Bank

Winter 2013

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Chairman’s Platform

Wrapping Up and Moving On By Kevin Cummings

elcome to this issue of New Jersey Banker magazine. Winter has arrived and 2012 has ended, both following quite a tumultuous fall. While Super Storm Sandy and Nor’easter Athena tried our patience and tested our resilience, they did not diminish our resolve. As you well know, almost every town across New Jersey was affected by the storms, which left devastation from Hoboken to Cape May and heavily damaged our barrier islands. Despite the massive disruption, govKevin Cummings ernment leaders, first Chairman responders, busiNJBankers President/Chief Executive Officer nesses, and residents Investors Bank quickly jumped into action. President Barack Obama and Gov. Chris Christie were immediately on the scene pledging federal and state resources, along with assurances of a quick response from FEMA. Volunteers helped with clean up efforts. Companies made monetary donations, discounted services, and dispatched additional resources in the field. Local electric companies enlisted the aid of trained personnel from as far away as California, Texas and Wisconsin. The region’s banks played an integral role in the relief efforts, waiving or rebating overdraft, ATM and other fees. Many bank employees worked around the clock to maintain operations and re-open branches. In addition to providing financial support to local charities, branches became collection sites for donations. While the destruction was unprecedented – demonstrating our resilience – we are now moving forward with rebuilding, and that undertaking will rely heavily on our industry. We will provide the loans that fuel the restoration of businesses and personal property and help restart the engine that drives our economy. The importance of this task underscores the significance of our organization’s mission, “With New Jersey banks, New Jersey prospers.”

New Jersey Banker

OUR WORK CONTINUES IN WASHINGTON According to the ABA, the 2012 elections were one of the most important for our industry in modern times. Bankers must continue to make their voices heard in Congress, particularly as we face critical issues stemming from the full implementation of the Dodd-Frank Act and the impact of Basel III. The immediate and continuing concern, however, is the looming fiscal cliff, and beyond that are important budget deficit and tax policy issues that must be resolved. Given the narrowness of Obama’s reelection and the continuing lack of a true majority in the Senate, the gridlock on important issues could continue. It is our duty to demand that the administration and Congress demonstrate strong leadership and take steps to minimize partisanship.

counts from several banks, including my own, that have undertaken recent re-branding initiatives. There is also an overview of social media strategies designed to build, retain and deepen customer relationships and a look at the adoption of next generation technologies, such as mobile banking and cross channel technologies that are available to unify a customer’s experiences.

SALUTING A JOB WELL DONE – TWICE! I would be remiss not to acknowledge the retirement of two individuals who have served our association collectively for 47 years. Paula Cassidy and Candy Johnson, who have both worn many hats over the years, will be missed by all. Please join me in thanking them for their hard work and service and in wishing them all the best going forward.

UPDATES FROM TRENTON

THE YEAR AHEAD

In October, NJBankers hosted Bankers Legislative Day. Kicking off the event was Acting Banking Commissioner, Kenneth Kobylowski, who spoke about overregulation, Basel III, and welcomed any forthcoming charter changes from federally regulated institutions. State Treasurer Andrew Sidamon-Eristoff discussed New Jersey’s current revenue picture and the benefits of changing tax policies to resemble those of neighboring states. Senate President Stephen Sweeney emphasized the need to focus on future investment and on making state government more efficient. In his remarks, Assembly Republican Leader Jon Bramnick credited the governor with changing legislative attitudes, citing how a much needed bi-partisan approach has been developing. The program wrapped up with Assemblyman Gary Schaer, chairman of the Assembly Financial Institutions and Insurance Committee, and Assemblyman Jack Ciatarelli, ranking Republican, who discussed foreclosures and the need for a solution.

As we look ahead, there is clearly much to do: Rebuilding communities devastated by the storms; repairing our industry’s reputation among the general public and Congress; working together to minimize the burdens of overregulation; and creating a more businessfriendly environment to stimulate economic growth and get all of New Jersey back to work. While the obstacles are daunting, we need only look to our past to see the potential for a brighter future. When facing challenges threatening our country’s very existence, President Abraham Lincoln wrote about an American future marked by prosperity and strength – a vision that became reality. “We shall nobly save,” he wrote, “or meanly lose the last, best hope on earth.” Like the Americans he inspired before us, let’s embrace his vision in working towards a better tomorrow. Hope you all had a happy and safe holiday season and I wish everyone a New Year filled with much success! ■

RE-BRANDING, TECHNOLOGY AND SOCIAL MEDIA Included in this issue is an informative article on re-branding a bank, with first-hand ac-

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

Winter 2013

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From the President’s Office

Time to Move Forward By John E. McWeeney, Jr.

ith the holidays over and 2013 upon us, we can look back on a 2012 that was filled with lots of challenges but also with some successes along the way. Most of the year was dominated by economic challenges, regulatory issues and the elections – that is, until Super Storm Sandy hit New Jersey on Oct. 29, 2012. After that, John E. McWeeney, Jr. President/Chief Executive Officer life changed for NJBankers many New Jerseyans, and at least for a while, those other issues didn’t seem to matter as much. As New Jersey recovers – and we will – the banking industry will play a vital role in helping New Jersey’s citizens, businesses and communities rebuild. Whatever your political preferences, one thing is clear: the elections are over, and we have some certainty for the next four

and legislators succeeded in delaying any action on Basel III into 2013. We can’t declare victory yet, and we need to continue our efforts, but thanks to all of our New Jersey bankers and directors who sent letters. You were the difference! At the state level, our efforts to work with the administration, legislature and judiciary resulted in a major victory: the expedited processing of foreclosures on abandoned properties which would be a first, but major, step forward in addressing New Jersey’s foreclosure problems. While some of our economic and regulatory challenges will persist as we head into 2013, New Jersey’s banks are well-positioned with high capital levels and strong liquidity. New Jersey’s banks have proven to be resilient and will be updating business models and strategic plans to do what’s best for stakeholders. NJBankers will do all that it can to assist our members through this process. This year started off with our second annual Economic Leadership Forum

A former boss of mine once told me that “hope is not a strategy,” but on these issues, unfortunately, it may be all we have. years. Hopefully, Washington can work in a bipartisan manner to avoid the “fiscal cliff.” Similarly, we have to hope that Europe acts responsibly and deals with their fiscal issues. A former boss of mine once told me that “hope is not a strategy,” but on these issues, unfortunately, it may be all we have. Regardless of the outcome of these issues, New Jersey’s banks need to move forward, and there are some positives to build on. On the regulatory front, the industry’s aggressive outreach to regulators

New Jersey Banker

on Jan. 11 featuring speakers Charles I. Plosser, president of the Philadelphia Fed; Ralph LaRossa, president and COO, PSE&G; and David Walker, founder and CEO of the Comeback America Initiative. We also offered breakout sessions on health care, real estate, higher education and economic development. The forum was the first of many initiatives and events in 2013 that will deliver value to our members in the areas of advocacy, education/ professional development, product/service

solutions and networking. I encourage you to take advantage of all that NJBankers has to offer. As we begin a new year, there are many people to thank who make NJBankers the member-driven organization that it is. First, our bank members, for without you we have no purpose to exist. Next, our endorsed service providers, associate members, sponsors and exhibitors, because you help us fulfill our mission of serving New Jersey’s banks. Finally, the best staff that any CEO could ever hope to have. Your passionate and dedicated service to our members and our industry are a great source of pride to me. Special recognition goes out to Paula Cassidy and Candy Johnson, who have retired, and to Gordon Ur, Lou Bringuier and Denise Robinson, who have moved on to other opportunities with the winding down of TICIC’s operations. Each of you contributed greatly to our organization and our industry. We’ll miss you as colleagues, but wish you all the best in the future. Thank you for your distinguished service. I’d also like to recognize Bob King for his service. Bob stepped down as NJBankers’ first vice chairman, and his efforts on our behalf are much appreciated. Bob’s resignation caused a series of changes, and we welcome Stewart McClure, Jr., as first vice chairman, Gerald Reeves as second vice chairman, James Hughes as a member of our Executive Committee and Thomas Geisel as a new director. Finally, on behalf of the officers, directors and staff of NJBankers, I hope you enjoyed your holidays and I wish everyone a joyous New Year. Sandy reminded us of what’s important in life, so enjoy your family and friends in the new year. ■ John E. McWeeney, Jr., is president and CEO of the New Jersey Bankers Association, and can be reached at jmcweeney@njbankers.com.

Winter 2013

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Politics & Policy

A Very Busy Fall By Michael P. Affuso, Esq.

JBankers advocacy efforts were full speed ahead this fall. Highlights included the most successful Bankers Legislative Day ever, a legislative victory and an election. President Barack Obama was reelected by a slim margin in the popular vote and a large margin in the Electoral College. Michael P. Affuso Obamaâ&#x20AC;&#x2122;s margin in Senior Vice President/ Director of Government Relations the popular vote will NJBankers mark the fifth time in six elections that Republicans have not won the popular vote. This is due largely to demographic shifts and failure of the GOP to revive the inroads made by President George Bush in the Hispanic community. In the Senate, GOP hopes of wresting control from the Democrats were initially high; however, due to some serious blunders in candidate selection, Democrats maintained control with 55 members. The dominance of the Republican fringe clearly cost them seats in Indiana and Missouri; Romney carried both states by significant margins. In the marquis race for bankers, Elizabeth Warren defeated Scott Brown in Massachusetts. In other states of interest, Maine replaced a retiring Republican with a Democraticleaning Independent; Connecticut replaced a retiring Democratic-leaning Independent with a Democrat; and only in Nebraska was a retiring Democrat replaced by a Republican. In the House, there was no change. Republicans will hold the body by a large majority and Democratic dreams of winning turned out to be just that. New Jersey re-elected the president by a wide margin and re-elected Sen. Robert Menendez by even a wider margin. There were no surprises in the House races, with the delegation tied six to six. Voters also voted in special elections in the 4th (Camden/Gloucester), 16th (Hunterdon/Mercer/Middlesex/Somerset)

10 New Jersey Banker

and 26th (Morris/Essex/Passaic) state legislative districts in the General Assembly. Democratic Assemblywoman Gabrielle Masquera (D-4) handily defeated (by a margin of 60 percent to 40 percent) Republican challenger Shelley Lovett. Republican incumbent Assemblywoman Donna Simon (R-16) defeated Democrat Marie Corfield for the Assembly seat by a vote of 51 percent to 49 percent. Republican Assemblywoman BettyLou DeCroce (R26) defeated Democratic challenger Joseph Raich by a 61 percent to 39 percent margin. DeCroce was sworn in to take the Assembly seat previously held by Assembly Minority Leader Alex DeCroce, who passed away in January. Voters solidly approved the two ballot questions. Question 1 (Building Our Future Bond Act) authorizes the state to issue $750 million in bonds for matching grants to New Jersey colleges and universities to build, equip and expand higher education facilities to increase academic capacity, by a 62 percent to 38 percent margin. NJBankers supported the measure. Question 2, to amend the state constitution to allow contributions from the salaries of state judges for their employee benefits, passed by an 83 percent to 17 percent margin. On the county level, Democrats regained control of the Bergen and Cumberland County Freeholder Boards. Democrats maintained control of the Gloucester, Mercer, Middlesex, Passaic and Union County Freeholder Boards. Republicans retained control of the Monmouth, Morris, Ocean, Salem, Somerset, Sussex, Warren and Hunterdon County Freeholder Boards, but lost two seats on the Burlington County Freeholder Board where they will hold a five to two majority in January.

BANKERS LEGISLATIVE DAY On Oct. 22, NJBankers hosted Bankers Legislative Day at the Masonic Temple in Trenton. Speakers included all of the major decision makers or their advisors. The event was covered widely in the press.

The program was kicked off by two representatives of the administration. Acting Banking Commissioner Kenneth Kobylowski discussed the regulatory environment, the negative effect that Basel III posed for banks and welcomed any charter changes from Federal regulators. Bankers concluded that his tenure as acting commissioner has been fair and even-handed. Following Kobylowski was State Treasurer Andrew Sidamon-Eristoff. He noted a recent uptick in state revenue and believed that the revenue numbers for the current fiscal year might surprise critics. He also discussed the need for tax policy in New Jersey that ensures competitiveness with surrounding states. He noted that there was indeed competition for taxpayers and that New Jersey was generally on the losing side. Next followed representatives from the legislative leadership. Representing the Senate and the Democrats was Senate President Stephen Sweeney. At the podium, Sweeney discussed the need for the state to continue to focus on future investment, while at the same time to focus on inefficient government. To that end, he strongly supported the bipartisan Higher Education Bond Question on the ballot this election. He noted that the bond had bipartisan support as demonstrated by support from the legislative leadership and the governor, and is absolutely necessary. Currently, New Jersey ranks at the bottom of states in financial commitment to higher education. Sweeney was followed by Assembly Republican Leader Jon Bramnick, who highlighted the changes in the legislative attitude created by Gov. Chris Christie. He noted that in New Jersey, divided government has lead to necessary bipartisanship. He also noted the influence of the news media and their vested interest in acrimony. The program concluded with a discussion between Assemblyman Gary Schaer, chairman of the Assembly Financial Institutions and Insurance Committee, and Assemblyman Jack Ciatarelli, ranking Republican of that committee. They discussed the issue of foreclosure and the need to find a

Winter 2013

long-term solution. They also noted that the committee was known for its collaborative approach to the legislative process.

A NEW FORECLOSURE BILL The legislature passed a bill that created a summary foreclosure process for abandoned properties by a vote of 79-0 in the Assembly and 35-2 in the Senate. This bipartisan bill creates a summary action to foreclose when a residential property is deemed vacant and abandoned. Under the bill, the lien holder may make an application to the court, at any time in the process, for a declaration that the property is vacant and abandoned. The bill lists 15 criteria for the court to make such a determination and requires that at least two of the 15 elements are present. Properties under construction or renovation cannot be deemed vacant under this bill. Upon proper service of process, the court may rule by clear

and convincing evidence that a property is abandoned. The property will proceed to sheriff sale in 60 days. While this bill will only affect a very prescribed group of properties, it is very important to create a process to allow these properties, which are economically dormant and pose an economic and potential safety hazard to their community, to return more promptly to the marketplace and become economically viable. Currently, it takes over 900 days to foreclose on a residential property in New Jersey. This unreasonably long time frame is poised to grow longer, as there has been a moratorium on filing foreclosures on the part of the largest mortgage servicers. While this moratorium has been lifted, a substantial number of new foreclosure filings are beginning to be submitted to the courts again. Some believe that the time frame to resolve a residential foreclosure will extend to

somewhere between four and five years. New Jersey now has the unenviable position of having the second largest number of foreclosures in the nation. This is not because the aggregate number of foreclosures is the highest, but merely the fact that once a property enters foreclosure, it does not move through the system. Thus, in a state like Nevada, with more foreclosures in the aggregate, there is less in the pipeline at any given time due to the more efficient system of justice. This extended process prevents real estate from finding a footing from which to begin recovery. Economists note that a recovery in the real estate market will bring increased consumer spending and growth in hiring for ancillary occupations. â&#x2013; Michael Affuso, Esq., is senior vice president and director of government relations for NJBankers. He can be reached at maffuso@njbankers.com.

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Directors’ Corner

What’s the Big Deal about Big Data? By Glenn Davis

“B

ig Data” is a buzzword heard often these days, but what exactly is it? Big Data is ill-defined, but in general it refers to the staggering amounts of data being generated on a daily basis, the aggregate of this data over time, and the ability to harness and analyze it to provide deeper business insight and enhance competitive advantage. Glenn Davis In the last few years, the volume at which data is generated has exploded. According to IBM, collectively we generate 2.5 quintillion bytes of data daily, a number that is almost impossible for the average person to wrap his or her head around. Essentially, the world’s data volume is doubling every two years. This avalanche of information is challenging the traditional ways in which data is processed, organized, secured and used. While most organizations find themselves struggling to keep pace with new technology demands, companies such as Amazon, Fed Ex, Google and Target have figured out how to leverage data to their advantage. These companies have taken the vast quantity of information generated and are using it to do everything from personalize the customer experience to track shipments on a real-time basis. However, the ways in which this data is being leveraged can also pose a significant risk to organizations, particularly in the areas of privacy and security. For these reasons, boards should include regular technology and particularly data management and data governance discussions on their agendas. I caution you not to let the hype around Big Data and the technical jargon associated with it overwhelm your board conversations

12 New Jersey Banker

about data and technology. Frankly, your bank may never have the need to leverage Big Data in the same “exotic” ways as Amazon or Google. Instead, I suggest a measured approach to understanding your organization’s data “profile.” Key questions to consider include: • What kind of data are we generating? • What is the integrity of the data? • What data exists in the marketplace about us and our Company that we need to know about? • Is our infrastructure sufficient to support our data? • What can our data tell us? • How do we best leverage what the data is telling us? • How do we secure it? • Can we access third party data that does not sit on our systems? • What data do we provide to our customers and how do they use it? • Are we managing our data efficiently? • How can we optimize our access to our data? • What are the risks?

Once you start to address such questions, you begin to get a sense of your bank’s current technology state, its immediate information needs (and the needs of your customers, shareholders, and regulators), the risks that need to be addressed, and what needs to be done to take your organization into the future. A technology discussion – however brief – should take place each time your board meets to ensure that your organization’s IT strategy remains in alignment with your organization’s goals and objectives. It probably goes without saying, but in this day and age, having a director with a technology background ought to be requisite.

BIG DATA IN YOUR IT DEPARTMENT Across many industries, and banking in particular, there is a keen interest in developing strategies to improve the timeliness of regulatory reporting and the quality of the data being reported. The ability to offer customer access to realtime data is also critical: not only does an organization have to provide 24/7 access

Winter 2013

to online data, it has to ensure the integrity and “freshness” of that data, its security, and its compliance with privacy requirements. An IT infrastructure assessment can help identify weaknesses in your technology architecture, opportunities to either optimize existing tools (i.e., hardware, software) or replace them with tools better suited to handle the growing data processing demands, as well as ways to offload or automate routine IT maintenance tasks so that the IT department can evolve from a cost center to a profit center. And what about the information boards themselves need to carry out their duties? Board books were initially seen as a robust solution to address the boards’ data needs, but many directors now express disappointment that they provide “the same old backward-facing data.” What I am hearing is that directors and senior management want the ability to analyze all of the disparate data that their organization generates in a way that provides them with a broader picture of their organization and yields deeper insight into business drivers. There are some powerful business intelligence tools available that pull data from disparate sources and present information via easy-to-use dashboard interfaces, allowing users to drill-down through layers of information in ways that make sense to them. I know of several organizations that are effectively using business intelligence applications to gain deeper insight into their business and help them make more informed business decisions. Since we now live in a world governed and driven by data, you have to make technology a priority in your board conversations. By taking a pragmatic approach to your technology discussions and thinking through where you are now, where you want to be in the future, and what you can potentially do with your information, Big Data need not be such a big deal. ■ Glenn Davis is a partner with CohnReznick Advisory Group, a division of CohnReznick LLP, and serves as the governance, risk and compliance national director. He also serves on the leadership team of the National Association of Corporate Directors, NJ Chapter. He can be reached at 973-871-4039 or by email at glenn. davis@CohnReznick.com.

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Feature

Game-Changing Technologies By Joe Trafton

ave we all heard too much about the nuts and bolts of today’s banking technology, and too little about its effect on customers? I think so. It’s time to expand our view of technology and acknowledge that customers are less interested in any one banking channel – including the almighty moJoe Trafton bile – than they are in having all their banking channels work together. In fact, the more channels banks introduce to the market, the more customers want those channels to access and update a common pool of information in real time. In technical terms, we call this “integration.” In terms of the customer, we know it as “convenience.” From the bank’s point of view, it’s called “cross-channel.” Yet access to the same information and functionality across channels is a challenge for most banks today. Why? Because the banks’ technology wasn’t originally designed to support cross channel banking. For many years, the branch, ATM, debit, call center and Internet channels were powered by separate systems. These systems communicate by passing batch updates – many of them at the end of the day – which creates discrepancies between the balances and other information available via different channels. Is it any wonder that bank customers are confused and that bank call centers are busy beyond belief? The good news is that technologies are now available to unify the customer’s experience across these channels – from Internet to mobile to debit to Ye Olde

14 New Jersey Banker

Branch. The technologies new age of customers. We call it and why:

better news is that these are poised to usher in a banking for cross-channel game-changing. Here’s how

ALL INFORMATION IN REAL TIME The time-honored approach of using a separate system for each banking channel and batch updates to connect them is becoming obsolete. In its place, we have real-time updates with uniform information across all channels. That means information changed in one banking channel is automatically changed in all the others. Just imagine the improvement in the customer’s experience. The balance on his ATM receipt matches the balance he receives on his mobile phone or PC screen – really wherever the customer touches the bank. This level of information also opens new service opportunities, such as real time alerts. A bank customer on a shopping trip can receive an alert message telling him whenever his purchase will take his balance negative and/or generate a fee. A business customer can review her pending ACH items as they enter her ACH warehouse. A business’ wire request can be reviewed by the bank as soon as the request is made, reducing the opportunity for fraud and moving legitimate wire requests faster. If you were a customer about to choose between a bank with real time updates and a bank that updates in batch, you would almost certainly choose real time. The reduced opportunities for fraud, fees, illinformed decisions and frustration will win every time. Real time costs less to support, too, because of the reduced call volume. Beyond the cost and efficiency factors,

the change from batch to real time reflects today’s new speed of life. Our mobile customers expect to run their own shows, and they expect their bank to provide the information to help them make and manage their financial decisions through all of its channels. As these customers purchase products and pay bills in real time, they expect their bank to respond and reflect their decisions in real time as well.

THE NEW VIEW If bank customers conduct 80 percent or more of their business outside of the branch, why should banks maintain their most comprehensive customer experience inside the branch? Answers to that question are creating a revolution in banking experiences across all channels. They are also leveling the playing field between functions available on the Internet, in the branch, through the call center and on mobile devices. Internet and mobile banking are rapidly evolving into the customer’s front end to all banking needs. Their personal finance pages – updated in real time – no longer need to pull information from the bank’s core system. Instead, the information is displayed in the order and categories that the customer has specified, automatically. This is information “my way,” and it’s changing the way customers interact with their bank. Not only can the customer rearrange her screen displays to show the information that’s most important to her, she will also begin to see screens that were previously restricted to bankers, such as service charge fees. The ultimate vision for banking channels is that each should reflect the rest, enabling customers to perform the same functions on any channel they choose. Business accounts, consumer accounts, even external accounts are

Winter 2013

becoming visible on the bank’s modular page, displayed in dashboard form the way the customer wants. All the passwords that the customer had to remember – they’re being consolidated into one. That’s where next generation banks are heading. Now we have a tool that can redirect call center activity away from troubleshooting and toward new products and services.

continue to expect their banks to provide information that will help them do that at the speed of now. The question is – are you ready to serve the new cross channel marketplace? If not, how long are you willing to wait? ■

Do your statements look like this?

DIFFERENTIATION The third component in today’s game-changing technologies is custom functionality. Instead of the one-size-fitsall approach to banking capabilities that has held our industry so tightly, banks now have the ability to select functions for their customers and have them running overnight. Today’s technology enables bankers to customize their customers’ experiences by shopping for plug-in enhancements – called core processing “apps” – in an online store. Core processing apps are a far cry from the bank’s annual wait for its technology version update. Core processing apps are a gamechanger for two reasons: They enable bankers to de-commoditize, or differentiate their capabilities from the competition. Better yet, apps enable banks to respond to customer demands at market speed.

THE SECRET TO CHANGING THE GAME Training and best practices are behind every successful technology advance. Integration, customized displays, and rapid implementation of in-demand functionality – all of these improvements represent major changes to bank operations. Having experienced people who know what works and how to encourage employees to try the new instead of clinging to the old absolutely makes the difference in delivering true productivity gains. We see it in our business every day. As our increasingly mobile customers expect to run their financial lives through every channel at their disposal, they will

Joe Trafton is senior vice president and chief strategy officer of Avon, CT-based COCC, Inc. (www.cocc.com), a 45-year-old firm that is completely focused on outsourced technology service and support. Joe can be reached at 888678-0444 or joe.trafton@cocc.com.

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Winter 2013 New Jersey Banker

Feature

‘It’s All About Community’ NJ BANKS STEP UP AND STEP IN AFTER HURRICANE SANDY’S DEVASTATION Photo courtesy of the Associated Press. (AP Photo/Wayne Parry)

By Laura Alix

ore than 12 years ago, businesses and civilians alike panicked over the possible collapse of the system as we know it. It was called “Y2K,” and it was a big deal. Except, of course, that it wasn’t. Y2K came and went without so much as a hiccup. Metuchen-based Metuchen Savings Bank had a plan of action for Y2K, but when nothing happened when the clock struck midnight, the plan was all but forgotten – until Hurricane Sandy battered the state in late October. After a quick meeting with local emergency officials, the bank’s management opened their sole branch manually. A small group of local employees – those who could safely get to the branch – hunkered down in the administration building, still without power, set up two tellers at the former walk-up window, and opened for business. “There was one outlet in one office in our mortgage building that had electricity,” said Lorraine Mulligan, vice president of business development. “We ran a giant orange extension cord out from it so we could have lamps and space heaters for the tellers.” Armed with battery-powered calculators and paper ledgers, the bank’s employees conducted a range of transactions for their customers, from mortgage payments to deposits to withdrawals. Even bank president Katherine Liseno got back to her roots, working behind the teller line.

LIMITED HOURS, LIMITED RESOURCES Metuchen Savings Bank was hardly alone, though. In the aftermath of Hurricane Sandy, probably the worst natural disaster most New Jersey residents had ever experienced in their lives, New Jersey banks were uniquely poised to pitch in on local relief efforts. Some raised money and collected food or clothing for local charities, others waived late fees incurred during the storm and its immediate aftermath, and still others did banking the old-fashioned way.

16 New Jersey Banker

A mini-golf course on the boardwalk in Point Pleasant Beach, NJ, shown here on Nov. 1, 2012, was destroyed by Hurricane Sandy. The storm wrecked boardwalks and amusements up and down the 127-mile Jersey shore.

“Once people could pick themselves up off the floor, we opened a third of our branches manually, without power, in order to allow customers access to banking services,” said William Moss, president and CEO of Tinton Falls-based Two River Community Bank. “We allowed one customer at a time into our bank branch, and without computers or power, we manually conducted banking business cashing checks, processing loan payments, and deposits, and then we’d move onto the next customer.” Wallington-based Wawel Bank had a similar plan of action, according to Chairman and CEO Robert Ranzinger Sr. The bank opened for a half day the Monday the storm hit. He “chased” his staffers out at noon and closed the bank entirely on Tuesday as the community weathered the storm. On Wednesday, the bank opened for business, despite its lack of electricity. “We took everything. We took deposit transactions, we took loan payments … everyone had access to their accounts, albeit on a somewhat reduced schedule,” Ranzinger said. Wawel Bank employees boxed up their work at the day’s end and took it to the bank’s data processing center out of town to get the day’s transactions online. Ranzinger proudly noted that the bank’s balance sheets were exactly correct.

In addition, the Manahawkin branch of Fulton Bank of NJ, which is located off severely impacted Long Beach Island, invited customers to the branch to use their computers to get on the FEMA website to begin the claims process.

WAIVING FEES, MAKING LOANS Recognizing that many customers would be unable to get to the bank at all, Franklin Borough-based Sussex Bank was one of many to waive late fees and insufficient funds fees. Public Relations Vice President Sarah Roskowsky said the bank gave customers until the end of the day Nov. 1 to bring all their accounts current, with a little wiggle room, of course. She said, “If somebody came in after that time frame, we went on a customer-bycustomer basis. We would never turn anybody away.” The branches with power opened Wednesday for business – and more. All local residents were invited into those branches to charge their phones, use the restrooms, and simply warm up. “I think being a community bank, we have a responsibility to alleviate whatever pains and pressures we can,” Roskowsky said. And Valley National Bank’s branch sales managers brought their business to the customers, when necessary.

Winter 2013

“They went house to house, car to car, facilitating wire transfer transactions, processing checks, making deposits and completing transfers,” said Vice President of Marketing Marc Piro. Anticipating that some homeowners might need an immediate credit source to pay for damages not covered by their insurance, many banks began offering low-interest, no-fee loans in smaller amounts intended to replace a ruined refrigerator or a destroyed dishwasher. Sturdy Savings Bank rolled out the Sturdy Care Storm Relief Loan, available up to $7,500 at 3.25 percent interest with no fees or appraisal required, President and CEO Gerald Reeves said. “If you look at the average homeowner, $7,500 could buy you the major appliances that may have been wiped out by flooding,” Reeves said. “Or some folks have flood insurance, but won’t have the claim submitted or processed in time, so they may use our loan to tide them over.” Sun National Bank, with more than 60 locations throughout the state, offered a

similar product – a loan in amounts up to $10,000 at 1.99 percent interest, President and CEO Thomas X. Geisel said. “It’s an immediate loan that can be turned around in 24 hours. If you had storm damage to your car or appliances or a key piece of business equipment, we can get you this money in 24 hours and you can get back to life as well as you can,” Geisel said. According to Geisel, the bank also implemented significant efforts to help its employees, for instance supplying five-gallon cans of gas to those employees who needed it. “You can make money available to people, but sometimes it’s the actual goods that they need,” he explained. Additionally, the bank set up an employee exchange program on its intranet, to match up staffers looking to help with staffers in need of said help.

NATIONAL BANKS PITCH IN TOO This is just a snapshot of the banking industry’s response to Sandy. National banks

They have the banking industry experience that help us find better ways to manage risk effectively and economically.

have pitched in, too. JPMorgan Chase pledged up to $5 million, including $2 million to the American Red Cross and up to $2 million in donations to local agencies. Wells Fargo, Bank of America Charitable Foundation and Capital One Bank, have all given at least $1 million each to relief efforts, including the American Red Cross and regional charities. TD Bank also pledged $500,000 to help. PNC Bank provided large donations to the American Red Cross and Salvation Army and matched employee contributions up to $150,000. Customers can donate to the Red Cross through Wells Fargo ATMs or through TD Bank’s Penny Arcade coin counting machines. While cash and gas cans are important, the banks that stepped up in Hurricane Sandy’s wake offered something less tangible, but no less valuable: conversation, a friendly smile, a familiar face, and the sense that normalcy, or something like it, was on the rebound. ■ Laura Alix is a staff writer for The Warren Group, publisher of New Jersey Banker.

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Winter 2013 New Jersey Banker

Feature

Media Relations are Key to Repairing Banking’s Image YOU MAY NOT HAVE BEEN THE PROBLEM, BUT YOU CAN BE THE SOLUTION By Marty Daks

n the wake of the Great Recession, bankers in New Jersey and elsewhere have had an image problem, and correcting it won’t be easy. Financial institutions were not responsible for the domino effect that sent the economy into a tailspin in 2008, and though they continue to work hard to approve qualified Marty Daks borrowers for sensible loans, they’re in a battle for public opinion.

In fact, Americans’ confidence in U.S. banks is now at a record low rate of 21 percent, down slightly from 23 percent in the past two years, according to a Gallup poll released in June 2012. And the percentage of Americans who have a “great deal” or “quite a lot” of confidence in U.S. banks is now about half the pre-recession level of 41 percent, recorded in June 2007, according to Gallup. There are many reasons behind the public’s misconception of the roots of the recession, but one compelling cause is the treatment that banks get in the media, which fulfills a role of “gatekeeper,” determining the message that reaches the masses. All

too often, the media portrays regulators, bankrupt borrowers and others as a David who valiantly battles the Goliath bank. It’s an easy sell, particularly in the aftermath of the Occupy Wall Street movement that delighted in making punching bags out of financial professionals. So right now bankers are on the ropes in the fight for the public’s mind, but I’d like to suggest a strategy that could help to even the odds. I call it the “Identify, Communicate, Reinforce” initiative, and it was developed after countless hours of speaking with bankers while I reported on the industry. A quick primer on the main points follows:

Recognizing an Honor Well Deserved. Fulton Bank of New Jersey congratulates Jessica Smith on being named one of the 2012 “New Leaders in Banking” by the New Jersey Bankers Association. As the Regional Commercial Credit Manager, Jessica’s dedication to her team and internal customers is demonstrated everyday through her ongoing communication style and hands on approach to problem solving, team building and setting priorities so all teams succeed. Jessica is always a positive role model and takes great pride in serving her local community as an active member of the Women’s Leadership Council.

1.855.900.FBNJ

fultonbanknj.com

Member FDIC. Member of the Fulton Financial Family.

18 New Jersey Banker

Winter 2013

IDENTIFY This refers to the process of identifying the root causes of the image problems suffered by bankers. Perhaps the first step in the process is to understand that many people don’t have the foggiest idea of what’s involved in banking. They’re familiar with concepts like deposits, withdrawals, interest and penalties, but you’ll get a blank look when you mention terms like time value of money, risk management, capital base, or revolvers versus term loans. On a number of occasions, I’ve spoken to frustrated bankers who’ve moaned that they had to “explain the entire basics of banking” to a reporter before they could answer his or her questions. With this in mind, bankers might want to try to be very clear when they talk to the press. Try to avoid “banking shorthand” or at least follow it up with a clear, but simple explanation to ensure that the writer understands what you’re saying. Also, be sure to mention your own talking points. A reporter who’s writing about the collapse of real estate prices, for example, may not be aware of the federal government’s past push to ensure that “anyone who wants a mortgage should be able to get one,” so it’s up to you to mention that issue.

care if your bank’s been in business for 50, 100, or 150 years? Or that you’ve just made your 10,000th loan? They might be more interested to read about a new lending program you’ve launched; or a business client that you’ve helped in a significant expansion. Know the media outlet’s audience. Are you pitching a story to a consumer-oriented outlet; or a business-oriented one? Tailor

your pitch accordingly. And make sure of your geography before you send the pitch. When I worked at a New Jersey business newspaper, I was inundated by calls and emails from PR firms trying to interest me in a story about businesses in California and other states that had no ties at all to the Garden State. continued on page 46

COMMUNICATE If you agree that there’s a need to get your side of the story out to the media, then the next logical step is to communicate with print, online and other reporters. It sounds simple, but as the number of newspapers and journalists shrinks, you’ll find yourself in a dogfight with many other interest groups vying for space to tell their own stories. You may be able to increase your chances at getting a news slot by taking the following steps: Be proactive. Don’t just wait around to be interviewed. Develop a compelling story, preferably tied to a current event, and “pitch it” to a reporter or editor. But first do some research and see who covers banking and finance at the newspaper or other media outlet. If possible, send a personalized message to the individual writer; or to his or her editor. Make your story meaningful. Put yourself in the public’s shoes. Do they really

Winter 2013 New Jersey Banker

Re-Imagining a Bank’s Brand When It’s Worth It, When It’s Not, and How to Know It’s Time

By Laura Schreier ometimes, a bank’s brand just needs a makeover. Maybe the bank wants a fresh start. Perhaps it made a big acquisition, and wants a new look to reflect that. Possibly it wants to distance itself from a rough patch in its history. Or maybe that old, dated logo – the brown-and-orange one that screams “bell-bottoms and macramé” – just needs to go. Whether or not to rebrand is a weighty decision. Bankers in New Jersey, as everywhere, need to project an image of leadership, and they often have long, respectable histories they want to honor. Reinventing one’s image can threaten those things, advertisers say, if it’s done improperly. Some marketers urge banks to go full-tilt toward revolutionary branding changes, with a complete brand transformation – otherwise, they say, a rebranding will go to waste. Others counter that small changes can actually go a long way, and banks shouldn’t give up on tweaking their brands, even if they can’t spend a ton of money and make a huge splash.

‘CONFIDENCE, KNOWLEDGE AND TRUST’ Regardless, banks walk a fine line. They must maintain that image of reliability, while creating an inviting look and feel that communicates a new message, whatever that message may be. Banks need to project confidence, knowledge and trust, said Chris Parker, president of marketing firm Parker & Partners. But many venerable old banks can fall into a rut of keeping a very dated look and feel, where “dignified” decays into “stodgy.” Banks really need to avoid that, especially if they hope to win over new generations of customers who demand convenience and accessibility from their banks.

Ideally, a bank brand will be appealing to those customers, but that gets to another point – a brand is the visible embodiment of the bank’s values. So a new or altered brand might get some wanted attention, but the bank must really embody whatever message they want to project, or the window-dressing won’t make much difference. For Short Hills-based, $11.5 billion Investors Bank, a major rebrand followed on the heels of big changes within. The institution has been transformed in the last decade. Formerly Investors Savings Bank, it was a traditional mono-line community thrift until 2003, when senior management decided to take the bank in a new direction, including a focus on commercial business in addition to traditional residential loans and deposits, said Domenick Cama, COO. Investors went public in 2005. At that time, the bank considered doing a rebrand, but the board squashed the idea, Cama said. Key leaders had been around for many years, and were leery of changing the bank’s old image. So the organization carried on its new business direction, but under the same brand. Then the financial crisis hit, added Cama, and Investors went into high gear. The bank doubled in size in the past four years, he said. The institution was flooded with new customers fleeing the struggling megabanks after the crash in 2008, and Investors also purchased five banks, some of which were weakened by the financial crisis. The bank is about to close on a sixth acquisition. With such seismic changes happening, the time was ripe to revisit a brand change, Cama continued. Investors Savings Bank became Investors Bank, adopted as its symbol a patch of green woven strands, and added the tagline “Banking in your Best Interest.” That “weave,” adopted in 2011, captures Investors’ emphasis on being part of the many

Top: Investors Savings Bank’s old logo, before the financial crisis hit and the bank went into high gear on its rebranding campaign. Bottom: The new logo captures Investors’ emphasis on being part of the community.

Winter 2013 New Jersey Banker

Cover Feature continued from page 21 ible changes didn’t mean the bank had been acquired by some overlord, he said, instead it was growing on its own terms. So when it came to the name-change, Investors kept things simple, merely dropping “Savings” from “Investors Savings Bank.” “The same bank, only better,” Cama said.

SO MUCH MORE THAN ‘SAVINGS’

“...it is a comfort to work with a bank that employs our same familystyle approach with their customers. They truly understand the value of the human touch.” Peter and Carmine Coviello

Owners, Coviello Brothers Madison, New Jersey

HEART SMART BANKING

Member FDIC

Top: Union Center National Bank’s postcard testimonial, prior to its rebranding. Bottom: The bank’s new logo, unveiled slowly over several years.

22 New Jersey Banker

communities the bank serves in positive ways, he explained. The bank’s charitable foundation, endowed with $20 million back when the bank went public, contributes to local causes, but Investors employees also volunteer at those not-for-profit organizations. For Investors, leadership is not about writing a check, Cama said – being a leader is about getting involved. That’s what Investors does, and that’s what the bank wanted to communicate with those woven strands. The bank is part and parcel of the community. But the institution wanted to make sure customers understood that the striking vis-

Dropping the moniker “Savings,” from a bank’s name is pretty common these days, said Don Christensen, partner with Christensen Tamburri Communications. As community banks grow and adopt a wider variety of services, they don’t want to sound like plain-vanilla savings-and-loans anymore, because it doesn’t reflect the level of sophistication they can bring to their customers. Investors Bank has made big changes to reflect a dynamic period in its history, Christensen said, but a bank doesn’t have to wait for such major shift, or even have to redo its entire brand, if it feels it needs to reinvigorate a look that no longer accurately reflects the bank. The logo, tagline and name constitute a bank’s core identity – tweaking parts of that identity, even just the tagline, can have a big effect. For $265 million-asset Metuchen Savings Bank, Christensen’s firm suggested the new tagline “Metuchen Savings Bank: In Touch.” A little tagline that rolls off the tongue can go a long way, he said, and his firm went a step further to emphasize the change. The bank had a “We’re all Ears!” campaign to tell customers that this bank would listen to their needs. Their mascot? Elephants, of course – cuddly stuffed elephants, elephant-ear jar openers, elephant-shaped stress relievers, all clever little reminders of the bank’s promise to customers.

BIG OR GO HOME Marketers like Christensen believe smaller-scale brand changes can be helpful, but other marketers prefer an “all-or-nothing” approach. “We’ve always recommended that a rebrand be all-encompassing and top-tobottom,” said Michael Gavin, chairman of Turchette Advertising Agency. Turchette has built brand identities for de novo banks – a process that requires start-from-scratch cre-

Winter 2013

ation of a bank’s logo, website and other public-facing corporate perception points. Everything from signage and logos to letterhead and business cards needs to be uniform, he said. This holds especially true with banks, whose images depend partly on a perceived orderliness and discipline. That perception suffers if a rebrand is cherrypicked, he said. Ken Greenberg, president and CEO of Austin & Williams, which does marketing for banks and other institutions, agreed with the idea of a top-down approach. And, he added, if a business is going to rebrand, it had better make sure it puts in the time and effort to do it right. A total rebrand is a huge investment: Changed signage, coloring, business cards, stationery, everything, it all costs a great deal of money, Greenberg said. Depending on the size of the bank, costs can shoot up into the millions. So if a bank does this, it has to mean something – it can’t just be cosmetics, Greenberg said. And don’t underestimate customers’ emotional ties to a brand or product: Witness, for instance, the hordes waiting in line for hours upon hours at the debut of each new Apple iPhone. People make decisions based on emotion, not logic, so it’s important to carefully consider what the brand communicates on an emotional level, and how to make changes wisely.

MARKETING MATERIALS SHOULD REFLECT BANKS’ REALITY Customers’ emotions were a huge part of decision-making for Union Center National Bank (UCNB), a $1.6 billion-asset bank that recently completed a rebrand. Banks might want to make a big, rapid change if they themselves are undergoing fast changes – as Investors Bank did – but for Union Center, it was more a matter of bringing an outdated logo into line with the world-class organization the bank had become. UCNB, which is a wholly owned subsidiary of Center Bancorp, Inc., was founded in 1923 as “The Bank with a Heart,” as a traditional community bank. Its logo was red and blue, centered around a heart with a ribbon through it.

That logo had resonance with longtime customers. It was, however, a little bit “old fashioned,” said President and CEO Anthony C. Weagley, and simply didn’t reflect the kind of bank UCNB is today. These days, the institution is a sophisticated bank catering to business and high-net worth individuals, Weagley said. We have the capabilities and service offerings to do anything a major money center bank like JP Morgan/Chase can do. And while it prides itself on a common-sense approach and personal contact with its customers, a heart with a ribbon through it communicates a bygone era of unit banks and local retail “mom-and-pop,” rather than what UCNB has become over its 90 years in service; a leading edge commercial bank. “We were probably the best-kept secret

and then finishing with changed signs and visuals around the bank. The bank created these changes with a lot of respect for the old brand and its longtime customers, even including stalwart customers in the advertising campaign it launched surrounding the change.

REBRANDING A TEAM EFFORT Announcing these changes can also be a major undertaking, as the bank tries to explain itself to old and new customers. Investors Bank, for example, held six press conferences, Cama said, as well as a big rally for employees, and a formal event in the New Jersey Performing Arts Center to introduce its new image to customers, among other things. Marketers had a variety of suggestions

The logo had resonance with longtime customers. It was, however, a little bit “old fashioned,” and simply didn’t reflect the kind of bank UCNB is today. in the state of New Jersey, until we focused on brand recognition and enhancing our visibility and look ” he said. “People didn’t realize the level of sophistication that we provide and what a gem we were.” But, mindful of its long history, its roots in the community it still serves, and the many longtime customers who had a strong connection with that symbol, the bank didn’t want to disrespect its history by dumping its old brand completely. So it kept the heart, but adopted a redesign of the symbol with a more classic black-and-gold coloring to reflect a more mature image, Weagley said, and changed the tagline to “Heart Smart Banking.” UCNB also made these changes slowly, over a few years. An institution might want to change its brand abruptly if it is making some sort of dramatic change, Weagley said, but that wasn’t the case at all for his bank – in its case, the bank simply wanted to bring its logo in line with the bank as it had evolved. So the actual alterations happened slowly, starting with a few advertisements

for retooling a brand, but all agreed that everyone in the bank, from the management on down, needed to be on the same page. The new brand has a deeper meaning than just coloring and a symbol – it’s about the values of the institution. If management doesn’t communicate this image, and what it’s supposed to mean, employees won’t be terribly impressed – and that indifferent attitude will rub off on customers. Greenberg’s firm makes sure to talk to employees, ask for their thoughts on the brand, and makes sure to bring everybody – tellers, back-office people, top leadership, everybody – together to talk about the brand, what it means, and what kind of legacy it’s meant to create for the institution. And very importantly, those employees have to embody that message when they’re interacting with customers. A new branding campaign, when done right, can have a hugely reinvigorating impact on the entire institution. But remember, “there’s got to be some meat behind that change,” he said. ■

Winter 2013 New Jersey Banker

Feature

Long-Time Employees Retire from New Jersey Bankers Association PAULA CASSIDY AND CANDY JOHNSON HAVE A COMBINED 47 YEARS OF SERVICE By James Meredith

t was with mixed feelings we learned that two long-time employees had decided to retire from NJBankers at the end of 2012. While Paula Cassidy and James Meredith Candy Johnson have certainly earned the right to slow down after many years of working and raising their families, I speak for the entire staff when I say that their daily presence in the office will be missed, not only for their many contributions ERM Half but Page-7.25x4.75-OR.pdf 2 to the association, for the friendship that

24 New Jersey Banker

they have shared with all of us. Paula Cassidy began her career at the New Jersey Savings League in 1987 as a secretary with N.J.S.L. Services, the predecessor to Bankers Cooperative Group, and held a number of other positions throughout her tenure, most recently as assistant to the director of communications.

She is a familiar face to the membership, having staffed numerous event registration desks and working behind the scenes to ensure everything went smoothly. When commenting in a post-convention letter, a presenter said, â&#x20AC;&#x153;Please thank everyone for his or her hard work and hospitality, especially Paula.â&#x20AC;? Looking forward, Paula will have

While they have certainly earned the right to slow down after many years of working and raising their families, I speak for the entire staff when I say that their daily presence in the office2:59will be missed. 11/27/12 PM

Winter 2013

more time to spend with her husband Joe, children Joe and Kevin and their wives, and grandchildren Elvis, Kye and a third grandchild expected in the spring. Candy Johnson joined the Savings Bank Association of New Jersey in 1990 as an administrative assistant working on legislative matters and conferences. With the combination of the association with

From left: Candy Johnson and Paula Cassidy.

the New Jersey Savings League in 1996, she became a part of the new organization, where she continued to work on administrative matters pertaining to legislation and, in 1999, was promoted to assistant vice president, when she assumed responsibility for event planning. Candy also left positive impressions on those outside the association, including a representative of the Marriott

Corporation, who described her efforts as “dynamite!” In retirement, Candy has new adventures in store, with plans to relocate to Connecticut with her son Jonathan and his wife Jennifer. I have been fortunate during my time at the association that both Paula and Candy have been my assistant. Their knowledge of association matters and, more importantly, their integrity for always doing the right thing for the members is what I will remember most about them. Perhaps Vic Richel, former CEO of Statewide Savings Bank and now chairman of the Richel Foundation, said it best about Paula and Candy: “You have always been such great supporters of the member institutions and have always done everything to provide excellence in everything you have done!!” Well said. ■ James M. Meredith is executive vice president and chief operating officer of the New Jersey Bankers Association and can be reached at jmeredith@ njbankers.com.

Winter 2013 New Jersey Banker

Feature

Evolution of the Bank Marketing Strategy By John Siracusa

s the banking industry has changed, so has the importance of social media in banking. In the 1990s and early 2000s, banks’ marketing strategies were primarily focused on traditional forms of advertising and marketing, such as billboards, community events, mailers and branch grand openings. But whether we were aware or not, around that time social media was John Siracusa alive and kicking in its very infant stages in the form of blogs and community sites. Today, with the advent of mobile devices, tablet PCs and abundant technology platforms like Facebook, social media has become a vital form of communication in most people’s lives; yet banks struggle to understand how to integrate it into their own marketing strategy. No one could have ever predicted that one day people’s primary form of communication and research on a bank brand would be socially, through the cloud; nonetheless, here we are. And since the way humankind’s communications have drastically evolved, a bank should evolve its marketing strategy with it. Consumers access social media for a myriad of reasons, but today I would like to address how they utilize social media and the web to choose banks, banking products and services.

CROWD-SOURCING YOUR BANKING NEEDS So where do consumers go to eventually find their banking relationship today? They may start by going to Facebook or Twitter to ask their “friends” – “Anyone know a good bank to get a mortgage with these days?” Or they may go to Google and do a search on “banking reviews,” or they go to a rating and review site like www.yelp.com and find a bank near their location with the highest consumer generated ratings and reviews. These queries happen every day; the

26 New Jersey Banker

If you knew nothing about your bank, and researched the web for a new banking relationship, does that research cause you to choose your bank? amazing thing is that consumers these days can do all of the above – and more – within seconds. Yes, they see a billboard advertisement or mailer from a bank, but then simply pick up their smartphones or tablets and research the keywords of that advertisement through the web. Even though your bank’s advertisement may have been the trigger event that caused the consumer to start the research on a banking product or service, in most cases, your bank might not necessarily be the final destination. Like it or not, that is how shopping habits have evolved. With that said, how should a bank’s marketing strategy evolve? First, consumers rigorously research and scrutinize banks based on what other people are saying about that bank. Whether a bank is in the starting point of the research process or close to the final steps, consumers will ensure that the bank, on many levels, is the

right choice for them. This research, most of which they will do online at home, does not necessarily happen during your normal branch hours. Second, a bank’s advertisements and promotions can be ineffective when a consumer performs their online research and there is non-existent, very light or negative bank branding and consumer-generated information about that bank via social media and search engines. Third, a customer experience with your bank becomes another person’s pre-shopping experience. It used to be that if someone had a positive or negative experience with your bank, they would tell their family and friends. Today, they praise and/or complain on Facebook or Twitter, or on social media platforms that are searchable and can be indexed into search results by Google, like Google+, www.mybanktracker.com, or many

Winter 2013

of the dozens of other platforms. This makes consumers’ experiences with your bank available to everyone, and it is used as an integral piece of new shoppers pre-shopping research. Finally, a study performed by Shopper Sciences states that, on average, consumers research and use 8.9 sources of information before making a decision to open a bank account with a particular bank. Yet, most banks focus on showing up and influencing just one to two sources. This means that a bank’s lack of researchable sources gives the consumer no choice but to put that bank in the “not even considered” category. One important note regarding the four points above is that the younger potential bank customers are, the more influential and important these four points become when it comes to choosing a new banking relationship. So if you are targeting younger customers, your traditional marketing strategies must evolve, or your bank will have limited or no access to the new banking generation.

GETTING STARTED Here’s how to get started today, regardless of the size of your bank: Make your bank the obvious choice: If you knew nothing about your bank, and researched the web for a new banking relationship, does that research cause you to choose your bank? Or would you choose another? Try a Google search on keywords around banking products and services. Where do your website results show up within that search? In that same search, what types of consumer or third party results show up and what do those results say about your bank? Type in “[your bank name] reviews;” what types of reviews come up about your bank? All of those searches should point directly to your bank as the obvious choice. In order to be the obvious choice, you need strategy, planning and care, but great results can follow by adding marketing strategy tactics to influence and increase positive user and thirdparty content about your bank. The first step in improving your bank’s

strategy is to understand the foundations of this approach. Web stores like Amazon.com and Google.com/shopping have changed forever the way that people shop for products; essentially they train consumers how to shop for products today. Customers look at product reviews, ratings, comparable products, even seller reviews. Mobile devices have further simplified this process. Ingrained deeply in every young shopper is the need to find and digest this information. The lack of this information in banking searches causes consumers to search other options. A new strategy for a new era in banking: Your bank should build a strategy around utilizing sources that are easier for consumers to access and greatly influence their decisions, rather than a shotgun approach to strategy. A quick example of this is to optimize your Yelp.com location pages and try to find creative ways to get real, happy customers to rate and review you, rather than trying to create and manage a Facebook page that has continued on page 28

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Evolution of the Bank Marketing Strategy continued from page 27

only 51 to 1,000 likes. The truth is, when your potential customers search for a bank in Google, your Facebook page will most likely show up very late in the search engine results, and do very little to influence a banking decision. But real ratings or reviews on Yelp and websites specific to banking, like mybanktracker.com and depositaccounts.com, will show up on the first page, or even as the first result, of a Google search, and will heavily weigh on a consumer’s decision on choosing a banking product or service. Do you have a content-based strategy, like a blog, Facebook and/or Twitter? Then at least make it do something. Most banks aren’t in the business of creating exhilarating content, and it shows. Time and time again, I see banks on a content-based platform like Facebook, Twitter or a blog, yet their content is not something that their targeted customers are interested in. It’s labor-intensive, timeintensive, and, if you hire an outside resource to post on your behalf, may also be very expensive. And the truth is that most banks

see very little results from these efforts. It’s vital to first understand what your goal is, what your intended market shares with you in regards to interests, and then building strategies and content that will effectively connect the two, driving real business results for your bank. It takes time to build an effective strategy, but it’s worth it in the long run. Measuring for success, not for more “good friends.” How do you measure success with your social media efforts? Here is a vitally important point: if your initial goals are murky or non-existent, measuring your campaign’s effectiveness will mirror your goals, and be murky and non-existent. Goals should be tied to very specific and real-life business goals. For example, if you have a strong following with certain niche sectors of a market – let’s say families with children who need to open a bank account – and you see the biggest growth opportunity in providing financial educational seminars to them, build your social media efforts on hammering that point and connecting with them on a new

level. You can then measure your efforts based upon the amount of families that attend your seminars. Let’s say for every 20 families educated, five accounts are opened with your bank. Then that is your measurement. So any social media effort that doesn’t add to this goal should be ignored and the resources should properly be allocated to social media that adds to your goals. Many of the social media reports that are provided to banks as tools for measurements are so complicated and foggy that you need a team of scientists and statisticians just to decipher them. Keep your goals simple and your measurements even more simple; it will save you a lot of headaches and help avoid much of the selfcreated confusion around social media marketing.

A TEAM EFFORT No longer is marketing and branding a silo in the marketing department. Social media has forced everyone at all levels to be a part of the bank’s marketing efforts.

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28 New Jersey Banker

Winter 2013

Social media should be viewed as a resource for growing in your potential market, and not as a technology. At the end of the day, social media is about people and how they interact with each other and make decisions about many aspects of their lives, including banking. If you haven’t considered implementing social media at your bank, you will eventually have no choice, if you are to survive. Why not take the strong approach by starting today and strategizing to thrive? Today, there are so many opportunities to grow once you really put your mind to it. Whether or not you have a plan in the works to integrate social media and the web into your marketing strategies, just understand that properly utilized social media and web strategies offer a deep blue sea of opportunity; you need only decide where to cast your nets. And, if you’re currently using social media at your bank, put your efforts to the test. Before sharing any content through your social media channels, put yourself in your consumers’ shoes and ask yourself, “Would I read this post if I found it, and would it influence my decision to choose my bank?” If you would read it and you believe that a consumer would too, what will they do with this information once they’ve been influenced? Will they turn into a customer or just really like the bank? Just because some social media platforms are readily available and free, doesn’t mean your bank has to use them. In fact, you don’t need to use them if they add nothing to gaining new market share. There are dozens of social media and search engines that can be utilized to effectively influence consumers to choose your bank. Without question, having an effective and strategically laid out website, social media campaign and search engine existence is vital to the future of your bank, and the banking industry as a whole, since it’s how consumers today and tomorrow will find and communicate within their new banking relationships. A fully effective and integrated social/search/website campaign doesn’t grow overnight. So take your time, and properly care for your efforts. It’ll be worth it. ■ John Siracusa is president and CEO of mOSa e-bank marketing services. He can be reached at 201-941-1458 ext. 708, or js@mosa.co.

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Winter 2013 New Jersey Banker

2012 New Leaders in Banking Honored at BankHorizons James M. Cryan

Age: 40 Title: Senior Mortgage Representative Bank: The Provident Bank Bank location: Jersey City Town of residence: Hoboken How did you come to community banking, and why do you stay? There are few industries or job titles that allow a person to make a greater impact on their local community than community banking. I chose The Provident Bank because I was seeking stability during a very unstable time in our national economy, and few institutions offered the backbone of a 173-yearold pedigree. I stay because there are few institutions that allow an employee to make a greater impact on their local community than The Provident Bank.

What do you consider your biggest success?

From a banking perspective, I have been number-one in cross sales ratio for three years in a row. It’s the ultimate team player stat, and it says that I am doing my best for my bank and that my bank has very competitive products.

David DiStefano

Age: 29 Title: Vice President Bank: First Bank Bank location: Hamilton Town of residence: Chesterfield How did you come to community banking, and why do you stay? My career started with a community bank, which was later purchased by a much larger national bank. I was fortunate enough to come back into community banking with the start of First Bank and I haven’t looked back since. The strength of my relationships with my colleagues and clients has kept me in community banking. It has been rewarding to see their businesses grow and prosper while I’ve been their banker.

From a community perspective, through my work at The Provident Bank, I was chosen as a board member of Habitat for Humanity of Hudson County. It has been a great privilege to assist some very deserving families and help them achieve the dream of homeownership. How do you see technology changing the banking industry over the next 10 years? The best part about community banking is the ability to help our neighbors and customers on an everyday level, and really get to know the community. Technology over the next 10 years will grant us a greater opportunity to connect with our customers and new prospects on a much deeper level and allow us to grow our neighborhoods. We are in the service business, and “banker hours” are a thing of the past. If you weren’t a community banker, what would you be doing? I love my job, and besides being centerfielder for the New York Yankees, I can’t picture myself doing anything else. Any job that allows me to be a part of a 173-year heritage, and encourages me to serve our community, is a place I want to be.

How do you see technology changing the banking industry over the next 10 years? Technology should continue to have a positive impact making it easier for customers to conduct their business and for banks to better serve those customers. I believe we’ll see smaller bank branches and various alternatives to traditional branch banking in years to come. I also believe banking products and services will become more transparent to the consumer as technology expands in the industry. If you weren’t a community banker, what would you be doing? I would be pursuing a career in music. One can only dream.

What do you consider your biggest success? Professionally, I considered it a big success to be offered the opportunity to be one of the original employees of First Bank. It has been as equally gratifying to see the bank progress and mature through the hard work of its employees and supporters.

30 New Jersey Banker

Winter 2013

Stacy A. Fauerbach

Age: 34 Title: DE Underwriter/AVP Bank: First Hope Bank Bank location: Hope Town of residence: Saylorsburg How did you come to community banking, and why do you stay? I was a customer of First Hope Bank and always thought that working at the bank would be something that I would enjoy as a career. I stayed at First Hope Bank because I enjoyed working with the customers and loved the opportunities to be part of a community driven establishment. Fauerbach was unable to attend the New Leaders in Banking event.

How do you see technology changing the banking industry over the next 10 years? I see the banking industry becoming more electronic and paperless. Smartphones and tablet computers have already played such a big role in banking and other industries. If you werenâ&#x20AC;&#x2122;t a community banker, what would you be doing? I think that I would be teaching. I have always enjoyed educating people. I have always been told that I am a great teacher.

What do you consider your biggest success? My biggest success has been my continual growth within the company. I started as a teller and was shortly promoted to the Assistant Branch Manager, followed by Branch Manager to eventually working my way to a DE Mortgage Underwriter.

Elizabeth K. Hulitt

Age: 35 Title: Vice President/Commercial Lender Bank: Cape Bank Bank location: Cape May Court House Town of residence: Millville How did you come to community banking, and why do you stay? As a senior in high school I entered the workforce as a part-time clerk in the bookkeeping department of a hometown bank in Bridgeton. My father was a manager there and he encouraged me to apply. My goal then was to contribute to our household income as I saved for college. Looking back at my decisions to accept positions with my employers past and present (all banks), a consistent factor was the chance to work for and alongside people I admire. That was evident when I took my first job at a bank that employed my first mentor, my father, and is evident now, as I foster relationships with dedicated and encouraging professionals at Cape Bank.

What do you consider your biggest success? My biggest success is attaining the position of commercial lender after starting in an entry level position over 17 years ago. I consider myself fortunate that people in management throughout my career have recognized a relentless work ethic that is motivated by a desire to delight customers while practicing sound banking principals. How do you see technology changing the banking industry over the next 10 years? Over the next decade I believe that technology will facilitate the banking industry to reduce its carbon footprint significantly. The savings realized from eliminating costs associated with traditional office buildings may be passed on to our customers. If you werenâ&#x20AC;&#x2122;t a community banker, what would you be doing? I am a volunteer organist for my church, and when schedules permit, I substitute for other churches in need. If I were not a community banker I would want to be a music teacher.

Winter 2013 New Jersey Banker

John S. Kaufman

Age: 30 Title: Treasurer Bank: GCF Bank Bank location: Sewell Town of residence: Washington Township How did you come to community banking, and why do you stay? I began my career at GCF as a teller while attending college full-time. GCF has given me the opportunity to do what I do best every day.

Kaufman was unable to attend the New Leaders in Banking event.

If you weren’t a community banker, what would you be doing? I probably would have ended up working for one of the big audit firms.

What do you consider your biggest success? My biggest success was taking on a full-time college/ MBA workload while working a full-time schedule and pursuing my long-term goals.

Michelle Kennedy

Age: 40 Title: Vice President/Marketing Product Manager Bank: Sun National Bank Bank location: Vineland/Mt. Laurel Town of residence: Fairfield Township How did you come to community banking, and why do you stay? I came to community banking after graduating from college with my undergraduate degree and being unsuccessful in finding a job in the field I went to college for. I had always worked in retail through high school and college, and I saw an ad for supermarket banking – the position seemed exciting and rewarding so I applied, was hired, and have been in banking since 1996. I stay because I enjoy helping people make decisions that would benefit them and their family financially. I also became a resource of information to so many people and that became very rewarding to me.

32 New Jersey Banker

How do you see technology changing the banking industry over the next 10 years? Technology has had a major impact on the banking industry and will continue to in the future. I’ve seen technology change over the past 10 years and the banking industry will need to adapt to any future changes in order to stay competitive.

What do you consider your biggest success? I’ve had many successes throughout my career. The one that stands out the most would be bringing innovative products and services to Sun National Bank which have allowed us to differentiate ourselves and be competitive in what we offer to the consumer. Also, another big success for me is being the president of The Fairfield Township School Board, where I have the ability to make a powerful impact on education of children in that district. How do you see technology changing the banking industry over the next 10 years? With technology evolving so rapidly, I see the days of going inside of a bank becoming almost obsolete. I see virtual banking being brought into the home via camera-based web programs, such as Skype. I see more flexibility of consumers conducting more transactions via phone and web access. If you weren’t a community banker, what would you be doing? If I wasn’t a community banker I would have pursued a career with the Federal Bureau of Investigation or the Drug Enforcement Administration.

Winter 2013

Brian R. Kohles

Age: 38 Title: Vice President/Residential Loan Manager Bank: Bogota Savings Bank Bank location: Teaneck Town of residence: Saddle Brook How did you come to community banking, and why do you stay? To be honest, I just needed a job out of college and so I applied to be a teller. Once I got the job, I tried my hand at different aspects of the bank and it just progressed from there. I stay because Bogota Savings Bank is a great community bank and I enjoy my work and my co-workers.

How do you see technology changing the banking industry over the next 10 years? I know that technology has changed our company tremendously over the time that I have been here. We are able to reach a broader base of customers and offer them a much wider variety of services and conveniences. Going forward, I think technology will be instrumental in streamlining the processes of obtaining a loan, opening accounts and especially in customer service. If you werenâ&#x20AC;&#x2122;t a community banker, what would you be doing? You mean besides playing for the Yankees? Iâ&#x20AC;&#x2122;m not sure, but I am a voracious reader so probably something in the book industry like an editor or something.

What do you consider your biggest success? My biggest success, I think, is staying with the same company for my whole career so far.

Jessalyn Mahan

Age: 35 Title: Vice President of Operations Bank: Somerset Hills Bank Bank location: Bernardsville Town of residence: Montville How did you come to community banking, and why do you stay? I came to community banking by chance. I started in banking at Bank of America on Sanibel Island in Florida and relocated back to my roots in New Jersey. I took an available position at a local community bank. Once I saw the difference between working at a large bank and a community one, I knew I would never go back. The detail to customer service and community is something I would not want to move away from. What do you consider your biggest success? My biggest success is my home- and work-life integration. My husband and I are both hardworking parents with four children who are ages 7 and under. I think it takes a specific kind of person to handle

the day-to-day life of being a mother, wife and a successful career woman. I have always made it a goal to be a career woman in the office and a mom at home. I feel it is important to be able to separate the two as much as possible. How do you see technology changing the banking industry over the next 10 years? I see technology ultimately taking over. With devices such as smartphones, and tablets I feel advancements in apps such as remote deposit will be the wave of the future. I also think within the next 10 years there will be no need for debit cards. Most purchases will be done by the swipe of your smartphone. The downside to modern technology is fraud. I feel fraud will be a continuing epidemic in the coming years and the banking industry will continue to strive to be one step ahead of the game. If you werenâ&#x20AC;&#x2122;t a community banker, what would you be doing? I would be in the field of psychology. I initially went to school to be a counselor. I have always liked listening to people and giving advice.

Winter 2013 New Jersey Banker

Samantha Sill

Age: 38 Title: Security and AML Specialist Bank: Sturdy Savings Bank Bank location: Cape May Court House Town of residence: Cape May Court House How did you come to community banking, and why do you stay? When I graduated from high school I knew I wanted to begin a career. Our local community bank was advertising job openings for teller positions. I have always loved working with numbers and thought this would be a great start to my career. I have worked for the same community bank for the past 19 years. I love working for a community bank and enjoy coming to work every day.

How do you see technology changing the banking industry over the next 10 years? Technology in the banking industry is ever changing. I have seen in my career how technology has made the movement of money go from generally cash transactions to an increase in electronic transactions. I believe this process will continue to advance and increase the ability to manage our finances completely through electronic resources. If you weren’t a community banker, what would you be doing? If I were not a community banker I would consider a career in law enforcement. As I have proceeded through my career and spent the last several years involved in security and anti- money laundering responsibilities, I have found these areas fascinating and enjoy the investigative aspects of my job.

What do you consider your biggest success? My biggest success thus far is that I have attained certifications in both bank security and anti-money laundering. I believe these successes are just the beginning of what I plan to achieve in my career.

The Bogota Savings Bank Family congratulates Brian Kohles Vice President, Bogota Savings Bank

on being recognized as a New Leader in Banking by the NJ Bankers Association

Small enough to know you, strong enough to serve you well!

Open 7 days a week! Bogota • Teaneck • 201-862-0660 BogotaSavingsBank.com

4167CV Brian Kohles Community Ad.indd 1

34 New Jersey Banker

11/30/12 4:22 PM

Winter 2013

Varuni Singh

Age: 32 Title: AVP/IT Manager/Senior Operations Specialist Bank: GCF Bank Bank location: Sewell (Administrative Offices) Town of residence: Williamstown How did you come to community banking, and why do you stay? My banking career started in 2001 with GCF Bank. It was my first job and I stay as I enjoy working with the people I work for and with. I am grateful for the opportunities they provide for me to grow professionally. I am fortunate to be working with some of the nicest people who have helped me grow professionally and personally. What do you consider your biggest success? I’m proud of what I’ve accomplished so far. In August 2011, I completed 10 years with GCF Bank. I completed my master’s degree while working full-time. I have received many accolades and awards for my professional and academic achievements. Receiving the NJBankers New Leaders in Banking Award is a great honor and one of the high points so far in my career, but I like to think the best is yet to come.

How do you see technology changing the banking industry over the next 10 years? With technological advances, the world is becoming smaller and smaller and more interconnected. Technology has drastically changed the way banking is conducted. A physical branch is no longer necessary to gain market share. Over the next 10 years, we’ll see more and more banking conducted electronically. As consumers become more and more comfortable with technology, mobile banking, virtual “wallets” and social media technologies will continue to evolve. It will become an absolute necessity for banks to adapt to these technologies to stay in the competition. If you weren’t a community banker, what would you be doing? I have a passion for learning and sharing knowledge. I would probably be pursuing a career in the academic world. Also, having gone through many IT exams and audits, I would like to be an IT auditor myself some day and enjoy the experience of being on the other side of the table!

congratulations!

We salute JAMES CRYAN on his dedication and accomplishments and congratulate him on being recognized as a rising star in the New Jersey banking industry.

Member FDIC

800.448.PROV

ProvidentNJ.com

Winter 2013 New Jersey Banker

Jessica Smith

Age: 29 Title: Regional Commercial Credit Manager Bank: Fulton Bank of New Jersey Bank location: Mt. Laurel Town of residence: Sewell How did you come to community banking, and why do you stay? I began my career in community banking as a credit analyst in 2006. Every day is a new and exciting challenge. I enjoy the analytical aspect of the job as well as the interactions with my staff and other coworkers.

How do you see technology changing the banking industry over the next 10 years? Technology in the banking industry will continue to change. Improved technology will enable banks to offer more products, minimize risk and operate more efficiently. If you weren’t a community banker, what would you be doing? I would probably be working in the IT field and pursuing my MBA.

What do you consider your biggest success? My biggest success would be working my way up to my current position of credit department manager. I began as an analyst, with not much experience, six years ago. I was quickly able to master commercial credit underwriting and advance my career to my current position.

“A leader is one who

knows the way, goes the way, and shows the way.” — John Maxwell

Our entire Cape Bank team is proud to congratulate ELIZABETH HULITT on being named a “New Leader in Banking” by The New Jersey Bankers Association.

36 New Jersey Banker

what more can we do for you? www.capebanknj.com | 800.858.BANK

Winter 2013

What do you consider your biggest success? Overcoming many obstacles and hurdles during my life that I could never imagine I would, but those obstacles made me who I am today; wiser, and ambitious.

Mziya Weber

Age: 27 Title: Branch Service Manager Bank: Liberty Bell Bank Bank location: Marlton Town of residence: Marlton How did you come to community banking, and why do you stay? During my senior year [of high school] I worked two jobs, and I wanted to eliminate that so I could focus my time on school. I spoke to a friend who was in banking at the time about how stressed I was and how I needed a stable job. The friend referred me to a charter community bank – Liberty Bell Bank. I was hired as a teller, and it changed my whole perception about banking, which is one of the main reasons I continued to stay. I stay with the bank because it is a new, growing bank, and I have had the opportunity to grow with the bank and the advantages to learn new skills and become successful here.

How do you see technology changing the banking industry over the next 10 years? I see mobile technology impacting banking. Mobile technology has become very influential to business industries, allowing us to communicate with – and through – consumers. I also believe social media will be a huge impact, especially for our global market. If you weren’t a community banker, what would you be doing? If I wasn’t a community banker, I would be working for a nonprofit company that helps children and families, or participate with mission groups to travel to help those in need in third-world countries.

Congratulations Mziya, from your Liberty Bell Bank family on your selection as a rising star by New Jersey Bank Magazine.

Mziya Weber

Cherry Hill

2099 Route 70 East

Moorestown

227 West Camden Ave.

Evesham

145 North Maple Ave.

Mt. Laurel

860 Union Mill Road

LibertyBellBank.com Winter 2013 New Jersey Banker

Behind the Teller Line

City National Bank A HISTORY OF PARTNERSHIPS SERVING THE COMMUNITY

ity National Bank of New Jersey, like many other community banks, was formed by non-bankers. Thirtynine years ago, Charles L. Whigham and a group of concerned citizens saw that the African American community in Newark had limited access to credit services and financial products sensitive to their needs. This committed group raised capital by engaging churches, residents and small business owners, asking them to invest in a solution that would serve the community. Members of faith-based institutions like Metropolitan Baptist Church, which are now some of the bank’s largest customers, were among the earliest investors. The need was great and the community understood that a long-term commitment was essential to

38 New Jersey Banker

provide the resources for financial stability. Whigham led City National Bank for 16 years, finding success offering credit to small businesses and providing banking services to the unbanked Newark community. When the bank ran into trouble in the late 1980s, Louis E. Prezeau was recruited from Freedom Bank in Harlem to stabilize and expand the bank. New Jersey-based financial institutions such as Midlantic Bank (now part of PNC) and First Fidelity (now part of Wells Fargo) invested in City National Bank. This infusion of capital allowed the bank to eventually expand into Bergen and Passaic counties – additional markets with large underserved minority populations. After 22 years at the helm, Prezeau retired from his position as president, CEO

and director. In 2011, the board asked Preston Pinkett, who previously worked at Prudential, PNC and Chemical Bank of New Jersey, to take on the role of president and CEO. Pinkett, along with current board members Eugene Giscombe, H. O’Neil Williams, Alfonso Carney and Lemar Whigham, has been focused on returning the bank to profitability while maintaining its founding mission. To meet these challenges, which have been intensified by the economic climate, a new management team needed to be built and now includes seasoned professional bank executives: Paul A. Maisch, previously with Provident New York Bancorp; David M. Scheck, previously with Midlantic and PNC; Shawn R. White, Esq., previously with Prudential; Carlton West, previously with Florida Community Bank; Joanne Gallo, previously with Brooklyn Federal; Patricia Nelson, previously with PNC; and Walter Bond, previously with Carver Federal Savings Bank. This leadership team has instituted a new business model focused on community development financing and products to improve City National Bank’s ability to meet customers’ financial services needs. The evolution of this platform will allow the bank to be more responsive to the needs of the community and nonprofits it serves. City National Bank is an institution created and supported by partnerships committed to addressing the needs of the unbanked and under-banked consumer. It is these partnerships between the bank, New Jersey’s financial institutions, and community based organizations that will address the financial social impact needed to improve New Jersey’s urban communities. Today, almost 40 years later, City National Bank is still the only African American-owned and -operated bank in New Jersey, and the only regulated bank that qualifies as a community development financial institution in the state. ■

Winter 2013

Bank Notes

Jack Tarditi

Richard L. Quad

Terry H. Thompson

Naqi “Nick” Naqvi

Edward A. Gramigna

LIBERTY BELL BANK

NEW JERSEY COMMUNITY BANK

Jack Tarditi, a managing director of Conner Strong and Buckelew, has been appointed to the Liberty Bell Bank’s board of directors. Tarditi was president of Associated Insurance Management, Inc. (AIM) where he was a principal shareholder for over 20 years. He served as mayor and director of public safety for the borough of Haddonfield for 16 years, and as borough commissioner for 23 years. He is former president of the Camden County Mayor’s Association and the New Jersey Conference of Mayors, and chaired the New Jersey State League of Municipalities School Funding Task Force, as well as the legislative committee. He served for 20 years as chairman and commissioner of the Camden County Municipal Joint Insurance Fund, representing 33 Camden County municipalities, and is past chairman and commissioner of the NJ Municipal Excess Liability Fund, which provides excess coverage to over 400 New Jersey public entities.

Terry H. Thompson has been named president and COO, and Naqi “Nick” Naqvi has been named executive vice president and CFO. Thompson, who previously served as the executive vice president and chief operating officer, will continue his leadership of the bank’s loan operations, facilities and retail administration. Prior to joining the bank in July 2011, he was the president and COO of Sussex Bank and a senior officer at Summit Bank/Ocean (County) National Bank. Thompson has served on many NJBankers committees, as well as the NJBankers board of directors, and served as the New Jersey director of the Independent Community Bankers of America. He served two tours in Vietnam with the U.S. Army. Naqvi, who previously served as senior vice president and chief financial officer, will continue to oversee all of the bank’s accounting, finance and investment functions, along with shareholder relations and benefits administration. Prior to joining the bank in early 2010, he held a number of key management roles at financial institutions, including Greater Community Bancorp, Carver Bancorp and Village Bank of South Orange. He is a graduate of Virginia Commonwealth University.

GRIFFIN FINANCIAL GROUP Richard L. Quad, former head of U.S. financial institution mergers and acquisitions at RBC Capital Markets, has joined Griffin Financial as senior managing director. Along with Mark R. McCollom, Quad will serve as co-head of Griffin’s Financial Institutions Group, and will be located in Griffin’s New York City office. Quad provides investment banking services to financial institution clients. He has 19 years of experience in both investment banking and commercial banking in the Northeast. He has successfully completed over 50 assignments for more than 25 community bank clients, including common, convertible and preferred stock offerings, buy-side, sell-side and FDIC receivership transactions, as well as strategic and general advisory assignments.

PEAPACK-GLADSTONE BANK Edward A. Gramigna, Jr., and Beth Welsh have been appointed to the board of directors of the company and of Peapack-Gladstone Bank, its wholly-owned community bank. Gramigna is a managing partner of Drinker Biddle & Reath LLP in Florham Park. He is a member of the Private Client Group and practices in all areas of taxation with a particular emphasis on estate planning, estate administration and probate

Thomas R. Brugger

John Ursin

litigation. He received his bachelor’s degree in economics from the University of Pennsylvania, Wharton School of Business and Finance, his J.D. from Rutgers UniversityCamden and his LL.M. (in taxation) from New York University School of Law. Gramigna is a CPA and lectures to a variety of audiences in the fields of taxation, estate planning and estate administration. He is a member of the Real Property Probate and Trust Law Section of the American Bar Association and is a member of the Taxation Section of the New Jersey Bar Association. Welsh is the general manager of Bassett Associates and is responsible for the leasing, maintenance and redevelopment of commercial office space, retail shops and apartments located primarily in Summit. She previously held positions at Chemical Bank, Bank of New York and Chase Manhattan Bank, specializing in lending, client development and risk management. Welsh received her bachelor’s degree in economics from Smith College. She serves on the board of directors for the Suburban Chamber of Commerce and Summit Downtown, Inc. and is a member of the International Council of Shopping Centers.

RUMSON-FAIR HAVEN BANK & TRUST Stephen Tyler, a director, founder and former president and CEO of RumsonFair Haven Bank & Trust has been elected interim chairman of the board. Tyler has been associated with the bank since its founding and has an extensive background in the industry from a career in financial management at J.P. Morgan & Co. in New York, from which he retired in 1998. F. James Hutchinson, current chairman, has been appointed president and CEO. Hutchinson continued on page 40

Winter 2013 New Jersey Banker

Bank Notes was named a director in 2011 and assumed the chairman role in May of this year. He was formerly president of an investment management firm, and prior to that, had a 30-year career with The Bank of New York in various lending capacities, including serving as president of The Bank of New York (Delaware) and chairman of The Bank of New York, New Jersey.

SUN NATIONAL BANK Thomas R. Brugger has been appointed executive vice president and CFO of the bank and is expected to be appointed as executive vice president and CFO of Sun Bancorp, Inc., following regulatory approval. Before joining Sun, Brugger was executive vice president and CFO of Customers Bancorp, Inc., a bank holding company based in Wyomissing, PA, and its subsidiary,

Customers Bank, which had assets of about $2.7 billion. Brugger joined Customers Bank when it was approximately $260 million in assets. While there, he managed the capital structure and the execution of both organic and external growth strategies as the bank grew to its current size. His responsibilities also included financial reporting and planning, accounting, treasury, investor relations, capital and regulatory compliance. Prior to that, Brugger was corporate treasurer, CIO and portfolio manager for Sovereign Bank, where he oversaw investment portfolio management, capital planning, business unit profitability, budgeting and related financial and accounting functions. Brugger is a graduate of Penn State University and sits on the advisory board for Penn State Outreach, a community service organization.

SUSSEX BANK John Ursin has joined the board of directors of Sussex Bancorp and Sussex Bank. Ursin, who has been a resident of Sussex County his entire life, represents public entities and businesses of all sizes in his law practice with the firm Courter, Kobert & Cohen, A Professional Corporation. Additionally, he concentrates his practice in the areas of municipal law, school law, construction, insurance and banking. He was honored in 2007 by New Jersey Law Journal as of one of the “Top 40 Attorneys Under 40.” Ursin attended the University of Scranton, where he earned his bachelor’s degree in biology and chemistry, and Rutgers University School of Law at Camden, where he earned his J.D. In 1993, he served as Superior Court Judge Ronald B. Graves’s clerk. ■

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Winter 2013

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Bank Shots

BOGOTA SAVINGS BANK received a Community Service Award in the category of banks with deposits between $300 million and $500 million. NJBankers President and CEO John E. McWeeney, Jr., visited the bank to present the award. Pictured, from left: Joseph Coccaro, president and CEO, Bogota Savings Bank; Sandra Sievewright, senior vice president, Bogota Savings Bank; and McWeeney.

VALLEY NATIONAL BANK held its fourth annual breast cancer walk, “Valley Goes Pink!” This year more than 1,000 employees, family members and friends walked to raise money for the Cure Breast Cancer Foundation (CBCF). More than $80,000 was raised for breast cancer research. Valley has raised nearly $400,000 since 2009 for research at Memorial Sloan-Kettering.

ROMA BANK held a groundbreaking ceremony for the Roma Bank Town Center Building II. The threestory building will be adjacent to the Roma Bank headquarters with 10,000 square feet of space on each floor. Pictured, from left: Robbinsville Councilman Dennis Shennard, Robbinsville Council President Ron Witt, Roma Bank CEO Peter A. Inverso, Robbinsville Business Administrator Joy Tozzi, Roma Bank Board of Directors Chair Michele Siekerka, Roma Bank Executive Vice President Keith Pericoloso, and Robbinsville Director of Community Development and Economic Development Tim McGough.

42 New Jersey Banker

During the month of November, all 23 offices of AMBOY BANK collected food and household items for food banks in their branch areas. In the aftermath of Hurricane Sandy, the need was even greater. Amboy Bank had the added support of one of their vendors, PrintMail Systems of Newton Pennsylvania, which conducted a food drive of their own to support Amboy’s efforts. As a result, donations were made in time for Thanksgiving, and continued into December. Pictured, from left: Gary Walsh, vice president of sales and client care, PrintMail Systems; Patrick Hutton, computer operations manager, Amboy Bank; and Sylvia Rapoport, assistant vice president and marketing manager, Amboy Bank, get ready to bring a truckload of food to the Old Bridge Food Bank.

HILLTOP COMMUNITY BANK CEO Mort O’Shea, left, and Vice President Ludy Agrillo, center, present a check to Laura Ekstrand, artistic director of the Dreamcatcher Repertory Theater. The theater is moving to a new location in Summit and Hilltop is one of the corporate sponsors.

To culminate their October Breast Cancer Awareness Month activities, employees of MILLINGTON SAVINGS BANK held a bake sale at their headquarters, with the proceeds earmarked for “Making Strides.” Every event is an inspiring opportunity to unite as a community to honor breast cancer survivors, raise awareness about steps that can be taken to reduce the risk of getting breast cancer, and raise money to help the American Cancer Society fight the disease. Pictured manning the baked goods table are bank employees Alyssa Edelmann, Karen Task, Shawn Greder, Sandy Memoli, Ryan Dempsey, Sakinah Garland and Deborah Downes.

Winter 2013

Little Friends, a local day care center, receives an annual Halloween tour/parade of the Kearny branch of KEARNY FEDERAL SAVINGS BANK. This year’s visit was disrupted by Hurricane Sandy and its aftermath of flooding, demolished houses and power outages. While struggling with their own recovery, personnel of the branch decided to go ahead and bring some happiness to their “Little Friends” with a Halloween celebration. Pictured is Georgeanna McDonough, Kearny branch manager, and her “Little Friends.”

LAKELAND BANK celebrated the opening of a new operations and training center in Jefferson with members of the community. After the Lakeland Bank teal ribbon was cut, President and CEO Tom Shara invited guests to tour the renovated space. Pictured, from left: Lakeland Bank board members Bruce Bohuny and Rob Nicholson, Chief Operations Officer Lou Luddecke, Chairman of the Board Mary Ann Deacon, Mayor Russell Felter, Landlord John Azarian, Shara, and Jefferson Police Chief William Craig and Captain Eric Wilsusen.

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

Tuesday

January 1

New Year’s Day

Monday

January 21

Martin Luther King, Jr. Day

Tuesday

February 12

Lincoln’s Birthday**

Monday

February 18

President’s Day

Friday

March 29

Good Friday**

Monday

May 27

Memorial Day

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*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 Jan. 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 Jan. 1, 1987, the Fed required paying banks which voluntarily close on nonstandard 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).

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DON’T MISS NEW JERSEY’S ECONOMIC LEADERSHIP FORUM Friday, January 11, 2013; The Palace at Somerset Park, Somerset, NJ

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Media Relations are Key to Repairing Banking’s Image continued from page 19

Keep it short; keep it timely. Fresh news is good news. Don’t bother telling a reporter about something your company did last year, or even six months ago. Most of the time they won’t care. Keep it simple. Journalists face deadlines, and if your press release or other pitch reads like “War and Peace,” they won’t slog through it. Try to get to your main point within two or three sentences, at the most, and keep the entire pitch to a page or less. Think of the process this way: you’re trying to get a date with the journalist, not marry them.

REINFORCE If you want to be the “go-to” source for news outlets, you’ve got to keep your name in front of them without clogging up their in-box. So send a press release or other pitch at least once a month, or even every two weeks. If the Fed or other regulatory agency makes a move, send them an email offering your thoughts on the matter. But remember that journalists are often on tight deadlines, so be sure you’ve got an expert who can quickly respond when the reporter calls you back. Most journalists will give you the first crack at airing a comment if you turned them on to the topic, but if you’re not available to speak, then they’re justified in moving on to another source. After all, old news is stale news. The tips in an article like this can provide a starting point for a public relations campaign, but mounting a truly effective effort involves working closely with an experienced public relations professional who can help you to get your message out and reposition your institution in the public’s eye. Right now there’s a lot of “noise” about banks, and unfortunately it’s not all positive. But an information campaign that’s properly developed and executed may help to change those misperceptions. ■ C

CMY

A former accountant, Marty Daks is a freelance business journalist who has written for state and local, national and international businesses and publications. He also manages Daks Communications, a public relations firm. He can be reached at dakscom@aol.com or 732-343-2459.

46 New Jersey Banker

Winter 2013

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