New Jersey Banker Winter 2014

NEW

JERSEY

WIN T ER 2 0 1 4

B A N K E R

MEET THE

New Leaders in Banking More Bankers Rebuild the Shore | Let’s Make a Deal | Community Bank Cooperative ENDORSED BY THE NEW JERSEY BANKERS ASSOCIATION

AT THE END OF THE DAY, YOU WANT RESULTS. SO THAT’S HOW WE BEGIN EACH DAY. When our banking clients have questions, they need the right answer at the right time. So they need lawyers who combine deep legal experience with sound business sense. This is what motivates us to work harder, continually expanding our versatility and pushing the limits of our collective skills. At Riker Danzig, we understand that no matter how much success we have realized, what you're interested in are the results we get today.

MORRISTOWN, NJ 973.538.0800 TRENTON, NJ 609.396.2121 NEW YORK 212.302.6574 LONDON AFFILIATE +44 (0) 20.7877.3270 W W W.RIKER.COM

NEW

JERSEY B A N K E R

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

Thomas J. Holt Senior Vice President Bank of America

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

Robert Rey President/Chief Executive Officer NVE Bank

Norman E. Beatty Chairman/President/Chief Executive Officer First Hope Bank

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

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

Michael Schutzer President/Chief Executive Officer Harmony Bank

Kevin Cummings* President/Chief Executive Officer Investors Bank Immediate Former Chairman

Thomas J. Kemly * President/Chief Executive Officer Columbia Bank

Craig L. Montanaro President/Chief Executive Officer Kearny Federal Savings Bank

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

Peter Kenny President/Chief Executive Officer Heritage Community Bank

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

Frank A. Kissel Chairman Peapack-Gladstone Bank

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

Paul E. Fitzgerald Vice Chairman First Bank James P. Genoy, Jr. President/Chief Executive Officer/Treasurer Monroe Savings Bank, SLA

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

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

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

Cris Goncalves Manager of Education ext. 630 cgoncalves@njbankers.com

Emily T. DeMasi Vice President and Director of Communications ext. 610 edemasi@njbankers.com Wendy C. Mandelbaum Controller ext. 603 wmandelbaum@njbankers.com Jenn Zorn Vice President and Director of Education and Business Development ext. 611 jzorn@njbankers.com

Contributing Editor Emily T. DeMasi

Lauren Barraza Executive Assistant ext. 618 lbarraza@njbankers.com Cynthia M. Zaccaro Assistant to the Director of Education and Business Development ext. 632 czaccaro@njbankers.com Erin Suckiel Administrative Assistant/ Receptionist ext. 600 esuckiel@njbankers.com

Stewart E. McClure, Jr. * Chairman Regional President Lakeland Bank

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

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

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

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

*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

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 2014 New Jersey Banker

3

Table of Contents

NEW

JERSEY B A N K E R

Departments

6 Chairman’s Platform Making a Difference 8 From the President's Office Still Having Fun!

10 Politics & Policy

Races Won, Races Lost; a Preview of

What’s to Come in the Legislature 17 Upcoming Events 18 New Associate Members 34 Bank Notes

36 Bank Shots

26 Cover Story: New Leaders in Banking

Features

12 Directors' Corner

A Washington Fix That Doesn’t

Address the Problem 14

Behind the Teller Line Sun National Bank

16 BancAlliance

Community Bank Cooperative

Unlocks Corporate Lending Market 17

4

20 Feature

Bankers Rebuild the Shore

22 23

Meet Our Endorsed Service Providers Bank Financial Services Allstate

24

Service Provider Management Let’s Make a Deal

Warren Hill Award Casey Receives Award at Senior Management Conference

New Jersey Banker

Winter 2014

THE POWER OF AN ADVANCE

One advance can help fund hundreds of neighborhood needs.

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

The Provident Bank, an FHLBNY member, tapped an advance to help provide construction funding for Spruce Senior Housing in Dover, New Jersey. The three-story, 90-unit senior housing complex offers its residents a full suite of amenities, including health screenings, landscaped recreation areas and a community garden, as well as access to local retail and commercial districts. This project helped revitalize the neighborhood and increased the availability of affordable housing for seniors in Morris County.

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

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

Chairman’s Platform

Making a Difference

By Stewart E. McClure, Jr.

C

an we make a difference? Hard as it is to believe – YES! I’m sure most of us have had that feeling at some time; that somewhat hopeless feeling that the events around us are going to happen and there’s nothing we can do to change them. I think the present Stewart E. McClure Jr. situation in WashChairman ington has made NJBankers that feeling more Regional President Lakeland Bank prevalent than ever. Between the fiscal cliff, tapering, the potential default of the U.S. government (hard to believe!) and now the confusion over the Affordable Care Act, it’s no wonder people feel they can’t make a difference and can’t influence the outcome of legislation being discussed in Washington.

As I get a chance to visit with our membership, there is one very common theme – the challenge of never-ending, ever-increasing regulation. We’ve all been trying to keep up with and adjust to the roll out of Dodd-Frank, Basel III, and the Consumer Financial Protection Bureau (CFPB). Most recently, that has manifested itself in the impending start to the Qualified Mortgage (QM) rules on Jan. 10, 2014 – just around the corner. What’s most frustrating is that we seem to have no choice but to continue adding to our expenses by hiring consultants to advise us, and hiring additional staff to track the outcomes of all this new regulation.

Worse yet, we feel like we have no say in the process. Complicating matters further is that the one thing that many decades in the business has taught us, is that we must comply – to not comply is starting down an even more expensive road.

Having taken a moment to vent, it’s now about what can we do to change that

6

New Jersey Banker

Our annual trip to Washington provides the forum to speak directly with the regulators and voice our feelings on the myriad and voluminous existing and pending regulations. dynamic. First, as I’ve written before, we can get help from NJBankers. NJBankers is committed to professional development with seminars and conferences dedicated to providing information and training on the many regulations and resulting actions that need to be taken. Timely information is also available through NJBankers publications, including this issue of our magazine, which explores vendor risk management and CRA compliance. And while we may not like it, when we take the necessary steps toward compliance, we can access many experts in these fields through our 243 associate members. Recently, I attended NJBankers’ BankHorizons in Atlantic City, produced in partnership with The Warren Group, where an incredible amount of information was available on mobile banking and technology, compliance, and many other timely and relevant topics. And 49 exhibitors were there with solutions.

But what I really want to recommend to you was something that actually provides the forum to speak directly with the regulators and voice our feelings on the myriad and voluminous existing and pending regulations. That opportunity

is our annual trip to Washington to visit with the FDIC, OCC, CFPB and the Federal Reserve. This past October, 17 bankers from 11 institutions joined us.

We began with a first! Our briefing at the ABA headquarters was NJBankers’ first ever joint briefing with the ABA and the ICBA. Both industry groups were on the same page and did a great job updating us on where varied legislation stood and how we could best make our point to alter legislation in such a way that it does the least damage to our banks, shareholders, employees and customers alike.

While the basis of proposed and current legislation is generally sound, trying to correct past mistakes or abuse tends to make the pendulum swing too far in the other direction. Our job is to make sure that we try to influence this legislation such that it minimally impacts institutions that weren’t and aren’t part of the problem, and doesn’t create a bigger problem than the one being solved. It’s hard to measure the specific and exact outcome of our efforts, but I assure you we were not shy in making our points on behalf of all banks.

We probably discussed QM the most, and tried to caution the regulators about the

Winter 2014

potential for unintended consequences, specifically the possibility that many people will find it harder to access credit due to the significant additional liability put on lenders as a result of the law.

A highlight was our meeting with Gov. Daniel Tarullo of the Federal Reserve.

Tarullo remembered the specifics of our meeting from the prior year, and spoke at length about our interests this year, the economy, the state of business in Washington and many other topics. He was well versed in all areas of interest to us and showed genuine concern in seeking out our point of view on varying topics, and

how we found conditions in our market.

Very encouraging in a not particularly encouraging town!

As I write this article, let the truth be known: It’s still frustrating to face this regulation and deal with the dysfunction of government in Washington. However, it’s encouraging and rewarding to have visited everyone, made our points on many topics and “had our day in court.” What I would like to see, and we would all benefit from, is greater participation by our bankers, showing a larger committed voice, which is much harder to ignore. We will be returning in March to visit our legislators

on the Hill and will be planning a trip to visit the regulators in the new year as well.

We always have a fun group, and make sure we leave time for networking with dinner at Smith & Wollensky restaurant (thank you, M&T Bank!), complete with some great informal conversation. So give yourself a chance to be heard and join us – we can make a difference!

■ Stewart E. McClure Jr. is chairman of the New Jersey Bankers Association and regional president of Lakeland Bank. He can be reached at smcclure@lakelandbank.com.

OUTSOURCING

ENTERPRISE RISK MANAGEMENT

AUDITING

CONSULTING TECHNOLOGY SERVICES TAX SERVICES

CONSULTING

Large or small, conventional to cutting edge… every client has encountered different challenges and experiences that have shaped them into who they are today. With personalized attention and specialized knowledge, Snodgrass professionals deliver results for all of our clients.

SRSNODGRASS.COM | P: 800.580.7738

Serving the Mid-Atlantic Region Since 1946

CER TIFIED PU B LIC ACCO U NTA NT S A N D CONSU LTA NT S

Winter 2014 New Jersey Banker

7

From the President’s Office

Still Having Fun!

By John E. McWeeney, Jr.

W

ow! It’s hard to believe that 2014 is upon us. Where did the past year go? Life at NJBankers has been full of committee meetings, conferences and dealing with regulatory and legislative issues, both here in New Jersey and in our nation’s capital. I guess the old adage is true – time does fly John E. McWeeney, Jr. when you’re having President/Chief Executive Officer NJBankers fun. This year marks my 35th year in the banking industry – 28 years as a banker and seven years at NJBankers – and I’m happy to say that I am still having fun!

Since assuming his position as chairman of NJBankers at our annual conference in June, Stew McClure has had my management team and me on the run. Stew said he wanted to visit with members to see what’s on their minds, and he wasn’t kidding. He’s been out to visit over 20 of our member banks across the state with Jim Meredith, Mike Affuso and me, and if there’s one common takeaway, it’s that our bankers still love what they do.

It may not be the first words out of their mouths, but after we get through issues like soft loan demand, slim margins, increased regulatory pressures and, oh yes, our friends in Washington, CEOs start to talk about their banks and their people, and their passion is unbridled.

We saw that this past summer and fall when our members stepped up to support Coastal Habitat for Humanity’s Sandy rebuild efforts, the Food Bank of Monmouth/Ocean County’s food tasting event, and Junior Achievement’s financial literacy programs.

The enthusiastic support our bankers have for helping others in need is overwhelming, and that’s because the rewards go much deeper

8

New Jersey Banker

Bankers are in the business of making dreams come true, and there’s nothing more fulfilling. then financial returns; they lie in changing people’s lives and strengthening communities.

That’s what makes bankers so special.

I think the thing that makes the banking industry so much fun is the people. When I was still a banker, my favorite thing to do was to visit with clients or prospects, learn about their businesses and see how I could help them be successful. Whether it was providing credit, treasury management or some other solution, there was no better feeling than helping a business grow and prosper. The same holds true for consumer customers, nonprofits and government clients, too.

As it’s often been said, bankers are in the business of making dreams come true, and there’s nothing more fulfilling. Acting as intermediaries, bankers touch every segment of the economy, but they don’t do it alone.

Banking is a team sport, and our victories are even more meaningful when they are shared with our colleagues and partners.

Our bankers work in teams to serve their customers, and the same can be said for NJBankers. Our team extends well beyond our staff. It includes our associate members, our committees, our officers and directors, and all of our external partners who help us serve our members. It’s always gratifying to attend a social event at one of our conferences and look around the room. You see people from all different institutions and disciplines enjoying each other’s company and building relationships. While we always

strive to have the very best speakers and the timeliest topics, I’ve had many a banker comment about the value of just networking with their peers and industry partners.

As we head into the New Year, we continue to face some headwinds, but there’s also reason for optimism here in the Garden State. In fact, our Third Annual New Jersey Economic Leadership Forum highlighted some exciting developments, such as the hosting of Super Bowl XLVIII in February and the Special Olympics USA Games in June, as well as the continued emergence of Rutgers University as a national academic player. When you combine these with the second year of rebuilding from Sandy and the recent reelection of a business-friendly Christie administration, New Jersey’s economy has an opportunity to gain some serious momentum. Who knows, maybe the recent election and example of New Jersey bipartisanship will spur some much-needed teamwork in Washington!

In closing, I hope that you, your colleagues and your family had a joyous and peaceful holiday season. All of us at NJBankers are most grateful for your support.

We offer our best wishes for a prosperous 2014 and, most importantly, let’s have some fun!

■ John E. McWeeney, Jr., is president and CEO of the New Jersey Bankers Association, and can be reached at jmcweeney@njbankers.com.

Winter 2014

EVERYONE DESERVES A SOLID BANK. ESPECIALLY OTHER BANKS. Choosing a correspondent bank is about more than finding the services you need. You’re entering a missioncritical business partnership, so you want an institution you can trust.

Here’s what you can trust about Union Bank®: Our capital position is strong. Our credit ratings are investment grade. We have 60 years of correspondent banking under our belt. We know the ever-changing regulatory landscape inside out. And we can be counted on to expertly deliver the full range of banking services you need—both domestic and international.

This is the kind of correspondent partnership your bank deserves. To learn more, contact one of our specialists listed below at 800-590-7305. unionbank.com/FI

West Kimberly Siebler, SVP & Industry Manager Adnan Mneimne, VP Scott Strebe, VP Denise Wiest, VP

Central Kaushik Patel, VP Robert Wettergren, VP

East Michael Fallon, VP Philip Toscano, VP

©2013 Union Bank, N.A. All rights reserved.

Politics and Policy

Races Won, Races Lost; a Preview of What’s to Come in the Legislature

By Michael P. Affuso, Esq.

O

n Tuesday, Nov. 5, New Jersey voters selected, by a 60.5 to 38 percent margin, incumbent Gov. Chris Christie for re-election over Democratic State Sen. Barbara Buono.

The governor carried 19 of 21 counties, losing only the Democratic strongholds of Essex and Hudson. The voters also re-elected Michael P. Affuso Lt. Gov. Kim GuaExecutive Vice President/ Director of Government Relations dagno over Milly NJBankers Silva. The vote totals were:

Christie — 1,252,100 Buono — 790,245 The new gubernatorial term begins on Jan. 21, 2014.

The Democrats retained control of the Assembly 48-32, where they presently hold a 46-32 margin. While the Republicans picked up one seat in the 1st Legislative District, which went to Republican challenger Sam Fiocchi, incumbent Republican Assemblyman John Amodeo of the neighboring 2nd District was defeated by Democrat Vincent Mazzeo. In the 38th District, another very close race, all four candidates secured 25 percent of the vote. Democratic newcomer Joseph Lagana led the pack with Democratic Assemblyman Tim Eustace eking out a narrow victory over challengers.

Since no seats changed in the Senate, the Democrats retained control, where they presently have a 24-16 majority.

The New Jersey Assembly will have a new speaker in the next session; the other three legislative leaders will return to their offices.

10 New Jersey Banker

The Assembly Democratic caucus designated Assemblyman Vincent Prieto (D-32) as assembly speaker, and Assemblyman Lou Greenwald (D-6) will keep his present leadership post as assembly majority leader. Senate President Steve Sweeney (D-3) will maintain the top spot in the Senate, with Sen. Loretta Weinberg (D-37) to continue on as the senate majority leader. After a challenge, Sen. Tom Kean (R-21) will keep his position as minority leader. It is also anticipated that Assemblyman Jon Bramnick (R-21) will retain his position as assembly minority leader in the Republican caucus.

RACES OF NOTE

There were many contested races in the 40 legislative districts, but only a few races of particular note: District 1 (Atlantic/Cape May/Cumberland): Sen. Jeff VanDrew defeated Republican Susan Adelizzi-Schmidt by a 59 to 40 percent vote. Democratic incumbent Assemblyman Bob Andrzejczak was the lead vote getter and Republican challenger Cumberland County Freeholder Sam Fiocchi will now take the seat held by Assemblyman Nelson Albano by a vote of 27 to 25 to 24 percent. Albano created an ethics problem for himself with a complaint against a state trooper, who had ticketed him for speeding.

District 2 (Atlantic): Democratic State Sen. Jim Whelan defeated Republican Atlantic County Sheriff Frank Balles by a vote of 55 to 45 percent in this split district. Republican incumbent Assemblyman Chris Brown held onto his seat, while his running mate Assemblymen John Amodeo was defeated by Democrat Vincent Mazzeo.

District 3 (Cumberland/Gloucester/ Salem): Senate President Steve Sweeney defeated Republican challenger Niki

Trunk by a vote of 55 to 45 percent.

Democratic incumbents John Burzichelli and Celeste Riley will keep their seats in this race between Republican challengers Salem County Freeholder Bob Vanderslice and Gloucester County Freeholder Larry Wallace by a 28 to 27 to 23 percent margin.

District 7 (Burlington): Democratic incumbents Assemblymen Herb Conaway and Troy Singleton defeated Republican challengers Jeff Banasz and Anthony Ogozalek by a vote of 27 to 23 percent.

Republican State Sen. Diane Allen defeated challenger Democrat Gary Catrambone by a vote of 61 to 39 percent.

District 14 (Mercer/Middlesex): In a close race, Democratic incumbent Sen. Linda Greenstein defeated Republican and former State Sen. Pete Inverso by a vote of 50 to 48 percent. Greenstein’s Assembly counterparts, Dan Benson and Wayne DeAngelo, held onto their seats in this 27 to 26 to 24 percent challenge by Republicans Steve Cook and Ronald Haas.

District 16 (Hunterdon, Mercer, Middlesex and Somerset): Assembly Republican incumbents Jack Ciattarelli and Donna Simon defeated Democrats Marie Corfield and Ida Ochoteco by a vote of 28 to 22 percent. Sen. Kip Bateman likewise retained his seat by a comfortable margin of 60 to 40 percent against Democrat Christian Mastondrea.

District 18 (Middlesex): Democratic incumbent Assemblyman Peter Barnes defeated his Republican challenger East Brunswick Mayor David Stahl by a vote of 52 to 48 percent and will fill the Senate seat in January vacated by gubernatorial candidate Barbara Buono, who gave up her Senate seat to run for governor. Barnes’ running mates, Assemblyman Pat Diegnan and East Brunswick Councilwoman and lobbyist Nancy Pinkin, faced a strong challenge by Republicans Robert Bengivenga and Lisa Goldhamer. The Democrats will continue

Winter 2014

to hold the Assembly seats in the wake of this contentious race by a vote of 27 to 26 to 23 percent.

District 38 (Bergen and Passaic): Democrat incumbent Sen. Bob Gordon defeated Republican college professor Fernando Alonso by a vote of 52 to 48 percent. However, the Assembly races are very tight between all four candidates.

Democratic attorney and president of the Paramus Borough Council Joseph Lagana got the most votes, and sitting Assemblyman Tim Eustace won a narrow victory where each candidate garnered 25 percent of the vote.

In the Assembly, two Democratic members resigned their seats and did not seek re-election: Assemblyman Albert Coutinho and Assemblywoman Connie Wagner. Coutinho will be succeeded by Democrat Eliana Pinto Marin in Essex County’s 29th Legislative District and Wagner will be succeeded by Democrat Joseph Lagana in the 38th Legislative District.

Several Assembly incumbents did not seek re-election. In the 8th Legislative District, Republican Assemblyman Scott Rudder will be replaced by Republican Maria Rodriquez Gregg; in the 18th Legislative District, Barnes will be replaced by Democrat Nancy Pinkin; in the 33rd Legislative District, Democratic Assemblymen Sean Connors and Ruben Ramos will be replaced by Democrats Carmelo Garcia and Raj Mukherji; and in the 39th Legislative District, Republican Assemblyman Robert Schroeder will be replaced by Republican Robert Auth.

ON THE LOCAL LEVEL

On the local front, there were a number of contests at the county freeholder level, including Bergen, Burlington, Cumberland, Gloucester, Ocean and Salem counties. Republicans retained the majority in Burlington, Cape May, Salem and Ocean counties, but Democrats could gain additional seats in Bergen County to increase their lead to

5-2 on that freeholder board. Democrats also retained control in Cumberland and took exclusive control in Mercer, Passaic and Gloucester counties. In addition, there were several key mayoral races of note in Atlantic City (Republican Don Guardian), Camden (incumbent Democrat Dana Redd), Edison (Democrat Thomas Lankey), Hamilton (Republican Kelly Yaede), and Hoboken (Dawn Zimmer).

New Jersey voters also approved two public questions to amend the state constitution to permit money from existing games of chance to support veterans’ organizations by a 81 to 19 margin, and set a state minimum wage of $8.25 (up from $7.25), with annual cost of living increases, by a vote of 61 to 39. ■ Michael Affuso, Esq., is executive vice president and director of government relations for NJBankers. He can be reached at maffuso@njbankers.com.

StonieR

To be the best, learn from the best.

Send Your Rising Stars to Stonier In partnership with the renowned Wharton School, Stonier provides an unparalleled executive education experience.

Now accepting applications for Stonier 2014.

The ABA Stonier Graduate School of Banking June 5–12, 2014 University of Pennsylvania Philadelphia, PA Visit abastonier.com for details.

Winter 2014 New Jersey Banker

11

Directors’ Corner

A Washington Fix That Doesn’t Address the Problem

By William Dunkelberg

O

ver the past year or so, I have had the opportunity to speak to bankers from New Jersey to California. I hear the same story everywhere: “We have money to lend, but William Dunkelberg few qualified applicants.”

That’s been my experience at my bank as well. But this does not square with the drumbeat that I heard steadily coming from Washington D.C. – less so now, but it’s still whispered around – “The economic recovery is slow because

banks will not make loans to creditworthy borrowers.” We got this message because of the actions of Fed Chairman Ben Bernanke, Treasury Secretary Tim Geithner and a host of others in Congress and the administration.

This made no sense to me. I wondered if these critics had ever served on a loan committee, knew what constitutes “creditworthy,” and why they thought we preferred earning a quarter point on our excess reserves to a good 6 percent business loan (which they alleged we were refusing to make). Certainly credit standards were raised for mortgages (and there weren’t any in 2006 – the big banks bought anything that said “mortgage” at the top of the page), and some banks, especially the large ones, did reduce

lending to small businesses because they were short of capital. But on Main Street, I think loan committees continued to know a good loan when they saw one – but they weren’t seeing many.

Not only did we build too many houses in the boom years, but we also built too many strip malls and new businesses. Consumers shifted their savings rate from 1 percent of disposable income to 6 percent – neither a good number – but each point reduced spending by $100 billion dollars. This plunged the economy into serious recession.

Hundreds of thousands of businesses failed and many looked to their banks for loans to see them through, but most of those loans would have gone bad had they been made.

The National Federation of Independent Business (NFIB.org) has collected credit market information on its 350,000 member firms for 40 years. Reports and charts are available at www.smallbus.org. In October 2013, 28 percent said all their credit needs should come with the service you deserve were met, 6 percent reported they were not and a record 53 percent said they had no interest in a loan (66 percent if you include FOS is now part of Herbein + Company, Inc. those who did not answer the question, presumably not interested in a loan). This Together, we offer the STABILITY of working with familiar faces, DEDICATED service teams making is, on average, 10 percentage points higher decisions locally, and the FOCUS of working with than the pre-recession readings. Ten percent community banks. of 6 million employer firms is a lot of credit demand sitting on the sidelines. The firms SERVICES we want to lend to are not interested. Only Internal Audit 2 percent reported credit availability as their Compliance Consulting Risk Managment most important business problem (compared Collateral Field Exams to a high of 37 percent in 1982). Even during Tax and audit the so-called “credit crunch,” no more than 5 percent said this was their top problem. A 40CONTACTS year record low 28 percent report borrowing James A. Michalak, CPA, CITP on a regular basis.

Thomas R. Strause, CIA, CFE, CBA, CFSA, CISA Debbi S. Fetter, CFIRS, CISA, CFSA, CRMA Why is this the case? Because business owners have a dim view of the economic future. Loans must be repaid, so borrowed money must be deployed in productive ways that generate cash flows sufficient to repay the loan. But only 4 percent think the current www.herbein.com • www.fosinternalaudit.com • 1.855.HC.TODAY period is a good time to expand (compared to an average of 17 percent before the recession).

F I N A N C I A LWhile 10 percent expect better business OUTSOURCING S O L U T I O N Sconditions six month from now, 34 percent expect worse. Twenty-four percent expect INTERNAL AUDIT + COMPLIANCE CONSULTING

The Stability You Want

FOS

12 New Jersey Banker

Winter 2014

their own real sales volume to increase next quarter, 34 percent expect declines. More firms view inventories as too high rather than too low – 11 percent plan to expand inventory stocks, while 17 percent plan reductions. Eleven percent plan to expand employment at their firm, but 12 percent are planning a reduction in staff. Only 23 percent plan capital outlays, historically very low. The bottom line is, few owners have a reason to borrow money to finance these activities.

This explains why the Washington programs designed to encourage bank lending to small businesses were largely unsuccessful, often used just to repay Trouble Asset Relief Program funds. It was not a “supply of credit” problem, it was weak credit demand.

What can fix this? Well, of the 68 percent

who said it was a bad time to expand (28 percent were uncertain), 37 percent blamed the political climate and 50 percent blamed the weak economy. A “fix” in Washington would go a long way to reducing the uncertainty that plagues decision-makers.

In a study of business problems, the top business problems (out of 75 choices) were: • Rising health care costs • Uncertainty about the economy and about government policies • Energy costs • The cost of regulation and red tape • The tax code (complexity, frequent changes and impairment of profits used to finance expansion) There is little or no promise that we will see improvement on any of these fronts in the near future. Consumer sentiment is declining,

which is not good for sales prospects. Fewer than one in 10 consumers think government policy is “good.” When some of this gets turned around, consumer spending and loan demand will pick up and our good loan customers will return. In the meantime, don’t give away your future net interest margin.

This environment will end.

■ William Dunkelberg is a nationally known authority on small business, entrepreneurship, consumer credit and government policy. He is professor of economics (emeritus) in the College of Liberal Arts, Temple University. He currently serves as chief economist for the National Federation of Independent Business and as economic strategist, Boenning & Scattergood.

Dunkelberg is co-founder and chairman of the board of Liberty Bell Bank.

KNOWLEDGE IS THE BASIS OF SOUND ADVICE. TWENTY FIVE YEARS OF EXPERIENCE TELLS US SO. As an advisor to financial companies nationwide for more than 25 years, Sandler O’Neill’s knowledge and insight have served clients well in bull and bear markets alike. The depth of experience gives our firm a unique perspective on how financial companies can best position themselves in the current environment.

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

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

Sandler O’Neill + Partners, L.P.

Winter 2014 New Jersey Banker

13

Behind the Teller Line

Sun National Bank CUSTOMIZED APPROACH FOR A GROWING COMMUNITY

By Heather Hardwick

T

he team at Sun National Bank prides itself on being nimble, forwardthinking, tech-savvy and customerserviced focused. When Sun saw a great opportunity to deliver the bank’s unique competitive advantage to a downtown destination near a thriving university, they knew it would be an ideal fit.

In August, Sun National Bank opened its newest retail location in the heart of Glassboro, NJ, near Rowan University.

Sun is the only bank to open a branch in downtown Glassboro in 18 years, just as the borough revives the local retail and business community in tandem with the continuing expansion of Rowan University.

The new Sun branch is located on the first floor of The Whitney Center building on Rowan Boulevard, which is the centerpiece of Glassboro’s dynamic downtown redevelopment project and close to the Rowan campus.

DESIGNED WITH THE CUSTOMER IN MIND

Sun National Bank invested time in research and planning of the new branch not only to provide local customers with the latest technology and service options to do their banking, but also to create an engaging destination for the Glassboro community.

Sun customized a prototype branch design to accommodate a 1,500 square-foot space and create an inviting retail bank environment. The branch is WiFi enabled and equipped with tablet technology for customers to explore bank products and services; flat-screen monitors broadcast Twitter feeds, along with real-time social media updates and product offers.

Designed with Rowan students in mind, there is a “Campus Connections” wall, a dedicated space featuring posters and materials promoting university news and events, along with high-top tables and chairs that serve as workstations for people using laptops, tablets and other devices. The branch is staffed with a team of consumer banking “service specialists,” who handle a wide range of customer needs – from

14 New Jersey Banker

check cashing to account openings to loan applications – and deliver a one-stop service experience. To serve in this unique and flexible role, the Sun service specalists completed in-depth teller, banker, product and sales training.

To provide customers with a convenient, efficient experience at the new branch, Sun also offers: • Instant-issue ATM/debit cards to give customers immediate access to their accounts and the assurance of on-thespot replacement in the event of a lost or stolen card.

• Coin counting machine that is free for everyone (not just current Sun customers).

• ATM with 24-hour access.

• Commercial night-drop depository, to serve business customers and local merchants.

For Rowan University students, Sun created Owl Checking, a checking account with no monthly fees, no minimum balance requirement and free online banking, bill pay and mobile banking, plus cash-back rewards on purchases made with a Visa Check Card. Owl Checking recognizes the mascot of Rowan University athletics.

The branch is also equipped to meet the business needs of the community, offering Sun National Bank’s C4 business banking package, a comprehensive suite of banking tools designed to provide principals greater control over their business. The branch provides a convenient night depository drop in addition to a branch manager dedicated to serving business customers.

Whether it's creative financing, tailored cash management solutions or cost-saving operating accounts, the Glassboro branch is

open to the business community.

“Sun National Bank is delighted to bring a new, state-of-the art Sun branch to the Glassboro community, and we value our partnership with the borough of Glassboro and Rowan University,” said Douglas Smith, senior vice president, consumer banking at Sun National Bank. “Sun designed this new branch to serve the needs of the local community here, including Rowan students, faculty and staff, as well as local merchants and residents in Glassboro. We look forward to providing them with accessibility, convenience, personal service and the most desirable banking products and services available.”

RETURN OF A DOWNTOWN BRANCH

Prior to the opening of this Sun location, downtown Glassboro had been deprived of an easily-accessible, local bank since 1995, when the last retail branch in the downtown district closed. As Rowan University and Glassboro have grown – reaching a current population of approximately 14,000 undergraduate and graduate students and nearly 2,000 faculty and staff employees – so has the need for consumer and business services in the borough.

“The borough of Glassboro and the Rowan University community are thrilled to welcome Sun National Bank to downtown Glassboro, and in such a prime location,” said Glassboro Councilwoman Anna Miller.

“With well-established roots in South Jersey, desirable products, and personal service delivered by local bankers, Sun is the ideal bank to have a major presence in this growing community.”

Rowan Boulevard is a $300-million, public-private partnership spearheaded by the borough of Glassboro, along with private developers and Rowan University. New Jersey’s largest municipal redevelopment project, current construction includes a 129-room Marriott Courtyard Hotel, a multi-tier parking structure and a second mixed-use retail and academic building.

Winter 2014

In addition to the Glassboro branch, Sun has 50 full-service branch locations throughout the state of New Jersey.

Customers can also bank 24 hours a day, seven days a week through Sun’s online and mobile banking services and ATM locations. Founded in 1985 and headquartered in Vineland, NJ, Sun National Bank has more than 700 employees who share a collective vision to be New Jersey’s premier statewide bank, providing the core products and services that its customers need to achieve their financial goals. Sun’s competitive advantage is that it offers the best of both worlds: the experience, knowledge, products, and services of a big bank, combined with the local relationships, market knowledge, and accessibility of a community bank.

■ Heather Hardwick is director of PR and communications at Sun National Bank. She may be reached at hhardwick@sunnb.com or (856) 552-5019.

AIB TRAINING

Develop the Right Skills, Right Now AIB offers eight certificates to help build the necessary skills for specific positions, including new supervisors, tellers, and CSRs. Each certificate is available as a convenient, cost-effective online curriculum. The courses are self-paced, allowing staff to train on their schedule without having to leave the bank.

Training and Professional Development from the American Bankers Association

2014

Course AnD ProDuCT CATAlog elearning Instructor-led courses Frontline Compliance Training Classroom training materials

These certificates, along with our full slate of online courses, diplomas, and more, are featured in our new 2014 Course and Product Catalog. Two new ABA Certificates in Lending Compliance and Commercial Lending are also available.

ABA certificates AIB diplomas and certificates

Training and Professional Development from the American Bankers Association

To request a copy of our 2014 Course and Product Catalog, with course descriptions and credits: Visit aba.com/training or call 1-800-BANKERS.

American Institute of Banking

from the American Bankers Association

Winter 2014 New Jersey Banker

15

Community Bank Cooperative Unlocks Corporate Lending Market

By Lori Bettinger, Executive Vice President, Alliance Partners and President, BancAlliance

O

ver the past 20 years, market forces and increasing competition have pushed community banks out of many lending markets. This is particularly true for commercial and industrial lending, where banks with over $1 billion in assets provide more than 90 percent of loans. To address this problem, BancAlliance, a cooperative of over 125 community and regional banks, is putting a new twist on the traditional loan participation model to successfully compete for and share larger credits.

The cooperative was formed in 2011 by more than 20 founding bank members, and has been managed from day one

by Alliance Partners, a leading asset management firm. The cooperative has since grown to include more than 125

banks in 32 states, with a lending power that is equivalent to one of the country’s top-twenty largest banks.

BancAlliance’s cooperative structure sets it apart from traditional loan participation models. A board composed of member banks sets the credit policies and asset and underwriting guidelines, which informs how loans are selected.

Alliance Partners’ team of originators, underwriters, portfolio managers and regulatory experts identifies and assesses loan opportunities prior to referring loans

Why

do the tri - state leading banks

call

the Mercadien group?

As the banking industry thought leaders they know we can give them the answers they need. We specialize in working with community and commercial banks and United States branches of foreign banking institutions.  Outsourced Internal Audits  Bank Secrecy Act Reviews  Information Technology Audits  Enterprise Risk Management  Regulatory Compliance

Call Sal Zerilli at 609-689-9700 or email szerilli@mercadien.com

Mercadien.coM • 609-689-9700

Certified PubliC ACCountAnts • ConsultAnts Technology • WealTh ManageMenT 16 New Jersey Banker

to the network’s members for their own independent review.

The vast majority of loans screened by the lending team are rejected, reflecting the network’s rigorous standards. Multiple loans per month are presented to the members for their consideration. Once a bank selects a loan, they will perform their own due diligence and analysis prior to providing any binding commitments.

The cooperative focuses on middlemarket corporate finance loans and midand large-ticket equipment finance loans.

Middle-market corporate finance loans are typically floating-rate term loans and revolving loans to strong-performing American corporations with annual sales of $25 million to $300 million. Yields in this area range from 3 percent to 7 percent and loan to value ratios average 30 percent to 60 percent. Mid- and largeticket equipment loans are both fixed and floating rate with maturities between 3 and 10 years. Estimated yields for this asset class currently range from 3 percent to 6 percent.

BancAlliance recently entered the health care real estate market, with the completion of two loans totaling $40 million secured by long-term care facilities located in California and Ohio. The growing demand for health care services fueled by the aging baby boomers and increasing longevity made this market a logical next step in the cooperative’s expansion.

Banks that join BancAlliance have greater access to attractive middle-market loans that are not typically available in their local markets. This access, however, is balanced with members’ commitment to ongoing monitoring, understanding of analytics and credit risk, and comfort with lending outside of their immediate area. Community banks that are willing to join forces in this manner can regain some of the lending ground they’ve lost to larger competitors. This move may provide them with the diversity and volume currently lacking in far too many community bank loan portfolios.

■

Winter 2014

Warren Hill Award

Casey Receives Award at Senior Management Conference

K

aren A. Casey, senior vice president and chief credit officer at Amboy Bank, was presented the Warren Hill Award at the 91st Annual Senior Management Conference during the General Session on Thursday, Sept. 26.

The Warren Hill Award was established in 1998 in honor of Warren Hill, the New Jersey League’s president from 1966 through 1975.

The award is presented to the current or former committee member who has demonstrated an overall commitment to meeting the mission of the committee, including providing assistance to NJBankers legislative and regulatory efforts and in developing educational content (seminars, articles, etc.) for the membership. Other criteria considered are the member’s effectiveness in recruiting new members to the committee and his/ her role in assisting staff in new member or

associate member recruitment efforts. Committee members are encouraged to nominate colleagues for the award.

Casey is a senior vice president and chief credit officer at Amboy Bank and has been with the bank since December 2009. Casey is responsible for credit administration and policy; loan review; loan operations; collections; and construction loan servicing. She is also chair of the Senior Credit Committee.

Prior to joining Amboy Bank she was executive vice president of retail banking for Greater Community Bancorp and senior vice president of retail and business banking for Allied Irish Banks PLC, New York.

Casey is a Certified Financial Planner and Certified Public Accountant with a bachelor’s degree from The Bernard M. Baruch College of the City University of New York. She is the chairman of NJBankers’ ERM Committee,

NJBankers President/CEO John E. McWeeney, Jr. (left) and NJBankers Chairman Stewart E. McClure, Jr. , regional president, Lakeland Bank (right), present Karen A. Casey, senior vice president and chief credit officer, Amboy Bank, with the Warren Hill Award.

and a member of the American Institute of Certified Public Accountants and Institute of Certified Financial Planners.

■

Upcoming Events March 14, 2014

June 9, 2014

Renaissance Woodbridge Hotel, Iselin

Mercer Oaks Golf Course, West Windsor

March 24 – March 26, 2014

June 12, 2014

Omni Shoreham, Washington, DC

Crowne Plaza Monroe, Monroe Township

April 4, 2014

June 18 – June 20, 2014

Crowne Plaza Monroe, Edison

Crowne Plaza Monroe, Monroe Township

April 30 – May 4, 2014

August 11, 2014

Marco Island Marriot, Marco Island, FL

Fiddler’s Elbow Country Club, Bedminster

June 5, 2014

September 10 – 12, 2014

The Palace at Somerset Park, Somerset

Stockton Seaview Hotel & Golf Club, Galloway

Directors and Managing Officers Conference

ABA Government Relations Summit

G.R.O.W.T.H. Executive Conference

110th Annual Conference

Women In Banking Conference

Seventh Annual Golf Outing to Benefit Special Olymics NJ

Marketing Conference

Compliance University

Annual Golf & Networking Outing

Senior Management Conference

Winter 2014 New Jersey Banker

17

New Associate Members as of September 2013 BDO USA, LLP

Jonathan L. Bender, PC

90 Woodbridge Center Drive, 4th Floor Woodbridge, NJ 07095 Contact: Dennis Spinelli Senior Director Phone: (732) 750-0900 Email: dspinelli@bdo.com

385 Kings Highway North Cherry Hill, NJ 08034 Contact: Jonathan L. Bender, Esq. President Phone: (856) 667-1669 Email: jb@benderpc.com

Classic Equipment Services, Inc.

John L. Kraft, Esq., L.L.C.

100 Mill Plain Road, 3rd Floor Danbury, CT 06811 Contact: John G. Capilli President Phone: (203) 791-3888 Email: jcapilli@classicequipment.us

505 Thornall Street, Suite 206 Edison, NJ 08837 Contact: John L. Kraft Partner Phone: (732) 902-6808 Email: jkraft@kraftbonds.com

Invictus Consulting Group, LLC

Liquid Capital Express, LLC (Apollo Funding)

164 Horton Street Bronx, NY 10464 Contact: George Callas Partner/Managing Director Phone: (718) 219-0441 Email: gcallas@invictusgrp.com

1103 Aileen Road Brielle, NJ 08730 Contact: Eileen Banasiak Vice President of Marketing and Business Development Phone: (732) 757-8291 Email: eileen.banasiak@liquidcapitalexpress.com

Northstar Services, Inc. 522 Rahway Avenue Woodbridge, NJ 07095 Contact: Nicholas J. Franko President Phone: (732) 510-7469 Email: nfranko@northstarservicesnj.com

NW Sign Industries, Inc. 360 Crider Avenue Moorestown, NJ 08057-1239 Contact: Ronald Brodie Chairman Phone: (856) 802-1677 Email: rbrodie@nwsignindustries.com

Praxis Data Systems, Inc. 4 Foster Avenue, Suite C Gibbsboro, NJ 08026 Contact: Harry Srolovitz VP/CEO Phone: (856) 679-2256 Email: harrys@praxisnet.com

WHO’S ON FIRST? FIRST

...to upgrade all clients to the most advanced core platform

FIRST

...to add Apps to the most advanced core platform

FIRST

...to earn excellent client ratings for 10 consecutive years

Be First www.cocc.com 888.678.0444

18 New Jersey Banker

Winter 2014

New Associate Members as of September 2013 continued from previous page

Residential Home Funding Corporation 100 Lanidex Plaza Parsippany, NJ 07054 Contact: Thomas Marinaro President Phone: (973) 333-4318 Email: tmarinaro@rhfunding.com

Safe Deposit Box Insurance Corporation, LLC (SDBIC) 25 South Grove Avenue Elgin, IL 60120 Contact: Gerald C. Pluard President Phone: (224) 227-6181, ext. 305 Email: jerry.pluard@sdbic.com

TEAM Services Inc. 45 Sammis Road Sussex, NJ 07461 Contact: Derin Catli President of Sales & Consulting Phone: (973) 764-6240, ext. 235 Email: derin.catli@teamservicesinc.com

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

NJBankers would like to thank YOU! TOP 10 SPONSORS FOR 2012-2013 1. Federal Home Loan Bank of New York 2. Aetna, Inc. 3. Bankers Cooperative Group, Inc. 4. Investors Bank 5. Lakeland Bank 6. Valley National Bank 7. Sandler O’Neill + Partners, L.P. 8. Garden State Community Bank 9. PNC Bank N.A. 10. Keefe, Bruyette & Woods, A Stifel Company Peapack-Gladstone Bank

That’s confidence through clarity.

ParenteBeard provides independent, objective services tailored to the complex needs of today’s financial institutions. Our team of internal audit, information technology and compliance professionals help senior management and audit committees to focus on creative and effective ways to manage risk.

See what we can do for you.

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

Winter 2014 New Jersey Banker

19

Feature

More Bankers Rebuild the Shore

I

t’s been more than a year since Superstorm Sandy wreaked havoc on the Jersey Shore. While there is still much to be done, the great state of New Jersey continues to rebuild homes and hope.

NJBankers members did their part to help the relief effort this past summer by participating in the NJBankers “Bankers Build” Initiative. NJBankers and our members proudly partnered with Coastal Habitat for Humanity for a 25-day summer build program, which kicked off in June 2013.

The following banks submitted photos from their builds after the publication of our Fall 2013 New Jersey Banker, since their builds had not occurred until after publication. We’d like to take this time to acknowledge those members for their contribution: Atlantic Stewardship Bank Clifton Savings Bank Fulton Bank of New Jersey Lakeland Bank Mariner’s Bank Millington Savings Bank The Provident Bank

Twenty-seven NJBankers member banks participated in “Bankers Build” with several participants celebrating the completion of the build. From left to right: Michael P. Affuso, EVP/director of government relations, NJBankers; Steven Klein, president/COO Northfield Bank; Raul Oseguera, COO, Mariner’s Bank; John Fitzgerald, president/CEO, Magyar Bank; John E. McWeeney, Jr., president/ CEO, NJBankers; Maureen Mulligan, executive director, Coastal Habitat for Humanity; Donald Mindiak, CEO, BCB Community Bank; Christopher Martin, chairman/president/CEO, The Provident Bank; Timothy Losch, regional president/central division, Fulton Bank of New Jersey and Robert Hart, SVP/residential lending, Manasquan Savings Bank.

Once again, thank you to all our members who participated in the initiative. ■

Fulton Bank of New Jersey employees volunteered their time rebuilding a home destroyed by Superstorm Sandy as part of NJBankers “Bankers Build.”

Lakeland Bank employees prepare to “Restore the Shore” for the NJBankers “Bankers Build.”

Atlantic Stewardship Bank employees got out of the office and into the fresh air while working on a Coastal Habitat for Humanity house as part of NJBankers “Bankers Build."

Millington Savings Bank employees got their hands dirty while volunteering their time to Coastal Habitat for Humanity for NJBankers “Bankers Build” initiative.

The team from Provident Bank awaiting their rebuild assignment from Coastal Habitat for Humanity.

20 New Jersey Banker

Mariner’s Bank employees traded collared shirts for t-shirts when they donated their time to “Bankers Build” initiative this past summer.

Employees from Clifton Savings Bank joined NJBankers “Bankers Build” initiative to help “Restore the Shore.”

Winter 2014

ENTERPRISE A QUARTERLY FOCUS ON THE PEOPLE AND THE ISSUES THAT DRIVE NEW JERSEY BUSINESS

GOV. CHRISTIE TO

KEYNOTE 77TH ANNU AL

WALK TO WASH

INGTON AND CONG NEW JER SEY RESSIONAL DINN ER ON FEB. 13  CH AM BER OF PAGE 6 CO MM ERC E www.njchamb er.co

THE OFFICIAL PUBLICATION OF THE NEW JERSEY CHAMBER OF COMMERCE a quarterly focus on issues that drive the people and the New Jersey business 4Q 2013

Read by 13,000 business leaders in more than 1,800 different organizations throughout the state.

Now is the time to gain market share and impress the decision makers

THE SUPER BO WL IS HERE! HOW FOOTBALL’S BIG GEST EVENT CAN SU PERCHARGE N.J.’S ECONOM Y PAGE 10

of your clients and prospects across New Jersey. Advertising in the premier communication vehicle of the respected statewide Chamber of Commerce will achieve that goal for 2014.

FOR MORE INFORMATION CONTACT ADVERTISING AT 617.896.5344 OR EMAIL ADVERTISING@THEWARRENGROUP.COM

Also Inside:

 Is Christie ‘Too

New Jersey’ to Win

the White House? ber’s Legislators of the Year through Obamacare

 Meet the N.J. Cham  Winding Your Way

m

Meet Our Endorsed Service Providers

Bank Financial Services Brings Community Bank Approach to Insurance

B

ank Financial Services Group (BFS) has been in the bank-owned life insurance and supplemental benefits industry for over 15 years, focused exclusively on community and regional banks. BFS is dedicated to providing personalized service. A national firm with 10 regional offices serving banks across the country, BFS assists banks in the development of financing strategies to increase net income, and to mitigate the ever-rising cost of employee benefits and improve retention of key employees. BFS is the national leader in designing and implementing financial strategies to improve

key metrics of a bank’s success.

Bank Financial Services Group is committed to being your partner, not your vendor. The company’s financial solution designs are created to help banks with their regulatory agencies, education of board of directors and plans that are fair to both shareholders and executives.

BFS has continued to demonstrate their commitment to the banking industry through their formal corporate and regional succession plans. The recent appointment of Daniel Barbaree as president, and additions of David Payne as chief operations officer, Steve Goldberg

as New England/Northeast partner and Arnie Winick as New England/Northeast partner, ensures the long-term service for all BFS clients.

■ For more information, contact Brittney Oake at boake@bfsgroup.com or (609) 243-9395.

We assist banks, attorneys and title agencies with Corporate and UCC searches in NJ and PA. We are Signature Information Solutions® - provider of Charles Jones® and Data Trace® products and services. We offer a full suite of corporate and UCC products for your due diligence needs.

9 Experience you can trust - 55 years of combined experience in corporate and UCC searching.

9 Online order entry and retrieval - you can access your searches right when you want them.

9 Expert customer service staff available to assist via Live Chat, email or telephone.

We can help you with Corporate and UCC Searches.

22 New Jersey Banker

• • • • • •

UCC PLUS Search (NJ) Corporate Status Report Good Standing Certificate Franchise Tax Report Corporate Copies Nationwide Corporate Services also available

Call Lyman Hopper or visit our 609-218-4037 www.signatureinfo.com web site Charles Jones and Signature Information Solutions are registered trademarks of Signature Information Solutions LLC. Data Trace is a registered trademark of Data Trace Information Services LLC. ©2013 Signature Information Solutions LLC. All rights reserved.

Winter 2014

Allstate New Jersey Insurance’s Value Proposition A COMPETITIVE PRICE WITH VALUE-DRIVEN QUALITIES “We are in the protection business – protecting that which is most important to you in life.”

While people know Allstate primarily for the “Good Hands” logo and insuring their autos and homes, the company brings much more to the communities it serves.

A FACE AND A PLACE IN YOUR COMMUNITY

Allstate’s relationship with the New Jersey Bankers began approximately seven years ago. What makes Allstate different is that, like community banks, it represents a name and a face in local communities. It is an agency that places a personal touch and addressing individualized needs above all else. The ability to have a personal touch with a local agency is where its value proposition begins.

A FULL RANGE OF PRODUCTS AND SERVICES

Most consumers are aware that you can

save money by bundling your insurance products. Allstate has a full range of innovative products and services to meet the needs of its customers. Outlined below are just a few of the innovations that Allstate has brought to the insurance marketplace: • Your Choice Auto – providing the opportunity for customers to choose the benefit that best serves their needs.

• Drive Wise – a discount focused on providing customers deep discounts for safe driving habits.

• Claim Satisfaction Guarantee – Allstate’s promise that if the company disappoints clients in handling their claims, it will refund six months of the premium for the car involved in the accident.

• A voluntary benefit portfolio rated #1 by LIMRA – focused on the benefit needs of business owners in anticipation of changes driven by the Affordable Care Act.

Allstate’s customer experience shifts from product-driven to relationship driven. This includes proactive consultative advice that shifts the view of Allstate from “insurer” to a broader “personal risk manager,” with expanded solutions and prevention offers.

At the end of the day, the financial strength of the company, combined with a strategy of differentiation, will allow Allstate New Jersey and its customers to prosper in this highly competitive insurance market place.

■ Neil J. Greco is the agency principal of the Neil J. Greco LLC Allstate Agency Roseland. For more information, he can be contacted at (973) 364-8040 or email njgreco@allstate.com

Be First with COCC

Our customers are our shareholders - it’s no secret who comes first!

We invest in our customers • More integration • More customization • More support

We deliver on every promise we make.

Customer satisfaction matters

COCC’s reference list = COCC’s customer list www.cocc.com 888.678.0444

Winter 2014 New Jersey Banker

23

Service Provider Management

Let’s Make a Deal

By John V. McIsaac

T

his is no game show! With the everchanging landscape of risk, the ubiquitous nature of technology and information, and the sophistication of increasingly mobile consumers, the ability to select, manage and achieve long-term performance with service provider relationships is a missioncritical requirement of all financial institutions.

John V. McIsaac The continued consolidation of financial institutions and the near-elimination of new bank charters position providers to compete with significant incentives and repricing at aggressive or even cut-throat levels – it is a pure take-away market for service provider growth. Recent agreements have bundled many capabilities with overall contracts offering savings from 30 to 60 percent off current invoices. Additionally, exit fees for agreements without explicitly disclosed deconversion fees have skyrocketed to unconscionable levels – equaling a year or more of processing fees to get your data! It is clearly a time to make a deal to capture today’s competitive offering.

One must be able to answer fundamental questions concerning the mission of the institution and the performance service providers must deliver to achieve the institution’s goals, including: • Are the goals and long-term strategies of the service provider in line with the direction of the institution?

• Will the provider be the next acquisition?

Or be in business for the term?

• Are the varying risks investigated and solutions appropriately mitigated?

• Do we have satisfactory nonperformance remedies?

• Is my provider on the winning side of new deals?

• What metrics do we follow? Operationally? Service responsiveness? Investment?

• Do we have a governance approach, tools and resources to ensure providers continue to meet the institution’s interests?

• Are solutions maintaining competitiveness in the market; functionality and pricing?

24 New Jersey Banker

Like a great chain, your institution has these complex dependencies on providers which are key to anchor your success. It is said that a chain is only as strong as its weakest link. Ultimately, you need to confirm that providers solutions do and will continue to deliver on the needs of your institution and that the price for the services is fair and competitive in context to your business goals.

UNDERSTAND YOUR STRATEGY AND TACTICS

Banks compete through the differentiation based on different business models and operating principals. These guiding principles establish the culture and vision of the institution; ranging from being operationally efficient delivering a limited, yet low cost service; to a product innovator and leader in new product capabilities; to a high-touch relationship and service driven provider. Comprehensive understanding and validation of the markets being served, value proposition offered, and the end consumers’ willingness to pay for services will drive or dictate the appropriate operating disciplines, service provider solutions, and the fees an institution is willing to pay for solutions.

The ability to negotiate a strong agreement to achieve the institution’s goals, operating principals and deliver the business impact requires clarity and execution commitment.

Specific operating tactics will substantially direct the type of solutions and resources required from service providers. In addition these tactics can dictate the appropriate skills and workplace culture to effectively utilize the solutions. For example, consider what is necessary to meet each of the following tactics: • sales lead generation and campaign management • high touch customer service and relationship management • empowering technology to users • flexibility and dependability of transaction growth • comprehensive reporting and market intelligence on community, customers, performance • cross selling of products and services • workflow efficiency with information integration across and within the business units • overall competitive value considering cost, rates, capabilities, service and support

In defining a clear understanding of your strategy and tactics will lead to a profound impact on the selection, prioritization, negotiation and adoption of solutions and provide the clarity to define required service level agreements.

NEGOTIATE YOUR EXPECTATIONS

In building a successful service provider relationship you must define the expectations for service and performance. You must define the means to confirm, adjust and renegotiate such understanding throughout the term of the relationship to correlate with changes in market and business conditions. This is reflected through the defining of change controls and a service level agreement (SLA).

As an example, digital channel solutions, like online and mobile banking services, are coterminous with the core system deals which were structured as five- or seven-year terms.

Such agreements lacked midstream controls or milestone terms to support the adjustment of performance and responsibilities based on market growth, acceptance or expansion of service, rapid price discounting in the market, and service controls that recognize that the bank has no direct transactional participation in the service. Furthermore, the performance controls often reflected those related to the core system, without the understanding that the mobile and digital channel banking solutions require a 24/7 availability to the end customer.

WHAT’S IN YOUR SLA?

What firm would state to their customers that they are not planning to provide good service and support? Would you tell your customer that you are not going to support them, or will only help when it is convenient? So why are so many firms relying upon simple, inflexible, or a one-size fits all performance measure as the set of controls in agreements concerning service and support response? Why, when new services are added, a renewed SLA is not defined?

The ability to manage risk resulting from your service provider chain of dependencies can be influenced by many channels – and often service providers are resisting the codification of performance, security and service responsiveness obligations and commitment.

The sales process describes and presents

Winter 2014

verbal representations of service. Service providers may deflect the need for an SLA, stating the additional exposure to liability and risk will dramatically increase the cost for the services. When seeking financial damages and satisfaction from nonperformance the banker often backs off in favor of price incentives; legitimizing the service providers claim that there is very low risk. The position to downplay problems and only verbally promote service and performance is an obvious indicator of concern. Bankers need to level the playing field and allow for time and seek expertise to face off to service providers which use highly skilled negotiators. The ability to define technology agreements and codify specifications surrounding written SLAs are complex.

THE FINAL WORD

The bottom line when an issue arises rests within the contract. A clear resolution with meaningful terms for service nonperformance should be addressed in the contract and service level agreements. There are many areas in agreements that are silent – which lead to likely conflicts when a situation arises. Take for example, a provider is retiring or sun setting an older product and forcing the banker to a new release for addi-

tional fees; the provider may be modifying a release, and leaving the testing and interface validation for interdependent products the responsibility of the client; or they may be planning to terminate an acquired product line all together at a convenient time to position a newer product. It is critical to look at the terms, warranties and conditions provided by the provider in these binding documents. If you do not see explicit service and performance language, then it should be added. If the provider resists, then question their stated representations through contracted rights to inspection and validation.

You must determine the response you would require from the provider in the event a critical operational impact should occur. Consider if your agreements have satisfactory responses to these issues: • Early termination language for nonperformance without liquidation fees and costs.

• Clear deconversion fee disclosures for each service in the agreement.

• Nonperformance and liquidation damages that are commensurate to the risk exposure and loss of business impact.

• Language to guarantee a timely response to direct and sub-contractor types of issues.

Reason says: go with the well-known.

Instinct says: go with the know-how.

• Warranties that explicitly support sun setting of services, rights to transition to newer products, and partial termination rights to adjust to business conditions.

In monitoring, reviewing, renewing or terminating a service provider relationship, keep in mind your overall goal is to receive a satisfactory solution which will work in meeting your business needs into the foreseeable future. You must be vigilant and mandate service level agreements that reflect the processing and service performance expectations of both your institution and your customer. The solution must address defined functionality requirements, cost considerations, warranty coverage, conversion needs, service support, contingency risk mitigation and availability to be effective in meeting your own operational requirement. You are responsible for your firm’s success and customer satisfaction. So, let’s make a deal. ■ John V. McIsaac is managing director of GRC Solutions, a wholly owned company of P&G Group, and brings over 36 years experience delivering industry-leading products and services to serve banks, trust departments, and securities firms.

He can be reached at (610) 291-5065 or jvmcisaac@grcrisksolutions.com.

At Grant Thornton we specialize in helping dynamic organizations like yours, because we are one too. We know how to confront the challenges you face and bring a real, competitive advantage of senior staff time, short decision-making chains and sound processes. To help unlock your potential, visit GrantThornton.com/Growth.

“Grant Thornton” refers to Grant Thornton LLP, the U.S. member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership.

Services are delivered by the member firms. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions.

Please see GrantThornton.com for further details.

Winter 2014 New Jersey Banker

25

NEW LEADERS: IN THEIR OWN WORDS

Gerald Gagne, member of the firm, Wolf & Company, P.C., and John E. McWeeney, Jr., president and CEO, NJBankers, congratulate the 2013 New Leaders in Banking.

How did you come to community banking, and why do you stay?

I started as a teller many years ago. I thought this would be a temporary path, but early on I realized I enjoyed being a community banker, and I recognized that there was a great deal of opportunity for professional growth in the field of banking.

What do you consider your biggest success?

I have always been very focused on setting goals for myself throughout my career and achieving them. I like to challenge myself, so I am able to move forward.

Angela Miraglia

Age: 46 Title: Senior Vice President, Southern NJ Retail Market Leader Bank: Fulton Bank of New Jersey Bank location: Mt. Laurel Town of residence: Williamstown

How do you see technology changing the banking industry over the next 10 years?

As the world continues to change and technology becomes even more encompassing, the traditional branch model will need to continue to evolve.

If you weren’t a community banker, what would you be doing?

I would have to say a CPA.

interests. They didn’t have an opening but hired me for the job anyway, so I guess I got lucky. This was in a time before internet job searching and career opportunities posted on websites were available. I stay because I enjoy what I do and the people I work with – especially the customers.

What do you consider your biggest success?

My family.

Christina Humphreys

Title: Executive Vice President, Senior Lender Bank: Fulton Bank of New Jersey Bank location: Mt. Laurel Town of residence: Mannington How did you come to community banking, and why do you stay?

After graduating from college I was relocating to Burlington County and happened to stop

by First Fidelity to inquire about job openings.

They handed me a giant black binder of all the positions in the bank and I picked the one I thought best aligned with my education and

26 New Jersey Banker

How do you see technology changing the banking industry over the next 10 years?

I wish I could see that far into the future to be able to answer this question fully. I see technology changing at a rapid pace and the banking industry attempting to keep up. We obviously will continue to dedicate resources – human and capital – toward technology. The key to being successful lies in understanding our processes and our customers, vetting technology related decisions fully and with all stakeholders, and ensuring the solution is cohesive. While I do not see branch banking going away anytime in the future, I see consumers using technology for their banking needs to a much larger degree than today.

If you weren’t a community banker, what would you be doing?

Practicing law (so I’m really glad I’m a community banker).

Winter 2014

Event photos by Donald Christensen, Christensen-Tamburri Communications, courtesy of NJBankers and The Warren Group.

I stay because it is a great place to work and I have been able to advance my career to where I am today.

What do you consider your biggest success?

My biggest success was being able to attend college full-time and earn my degree while maintaining a full-time position at the bank. I do not think I would have been able to do that if I was working someplace else.

Cliff Meinwieser

Age: 26 Title: Compliance Manager Bank: Millington Savings Bank Bank location: Millington Town of residence: Gladstone How did you come to community banking, and why do you stay?

I came into community banking as a teller while I was commuting to college. I had been banking with Millington Savings Bank since I was a child and it was the first place I decided to apply. I have been working here ever since.

How do you see technology changing the banking industry over the next 10 years?

I see it making a big impact on the banking industry. With the increased use of full-service ATMs, smartphones, and tablets that are able to process different banking transactions, the activity in physical branches will decrease and there will be a fundamental shift in the services offered at physical branch locations. As a result of this technological change, there will be a need for physical branches to transform from transaction processing locations to places where consumers will go to learn more about their finances and become more financially educated.

If you weren’t a community banker, what would you be doing?

I would stay in the field of finance, probably working for a larger financial institution or an investment bank.

CONGRATULATIONS! TO THE NEW LEADERS IN BANKING FROM

Winter 2014 New Jersey Banker

27

opportunities continue to this day. I stay for two main reasons: 1) I can honestly say that I finish every work day with a sense of accomplishment.

My teams and I recruit and train the employees that better our customers’ financial lives, and that is very empowering. 2) I believe that we deliver differently to our customer-base. We have the products and services that the larger banks have, but how we deliver sets us apart.

I am privileged to help execute that delivery model.

What do you consider your biggest success?

My biggest success thus far has been my promotion to senior vice president.

Dominique DuMouchel

Age: 35 Title: Senior Vice President, Human Resources Bank: Sun National Bank Bank location: Mount Laurel Town of residence: Kennett Square, PA How did you come to community banking, and why do you stay?

I came into community banking after working at much larger companies; JPMorganChase and Wilmington Finance, which was a subsidiary of American General/AIG. I came because of the opportunities to expand my skill set and scope of responsibilities, and both of those

How do you see technology changing the banking industry over the next 10 years?

Technology has enhanced our ability to deliver service to our customers, and I am confident that the industry will continue to embrace innovation. Mobile strategies will continue to expand. I envision more customer touchpoints and a more focused integration between inperson and remote/digital transactions. There will also be more focus on “big data” and how to leverage the data to make business decisions.

If you weren’t a community banker, what would you be doing?

I would be an anchor on ESPN’s SportsCenter.

because of my father and his influence. I stay because of Columbia Bank. It’s very rewarding to work for an institution that is so passionate about providing real value to its customers and so committed to building an elite brand.

What do you consider your biggest success?

Professionally speaking, I’d say my biggest success is how I’ve steadily progressed and grown as a leader over the years. At Columbia Bank I am very fortunate to be able to work with some of the brightest minds in the industry.

Simply having a seat at the table and having the opportunity to share my thoughts and ideas with them; that’s what I’m most proud of.

James Petrie

Age: 44 Title: Senior Vice President, Retail Lending Bank: Columbia Bank Bank location: Fair Lawn Town of residence: Maywood How did you come to community banking, and why do you stay?

My father started his career in community banking. After nearly four decades and numerous mergers and acquisitions, he ended up in a much larger institution with a “mega bank” mindset; however, he always spoke so fondly of his time in community banking. I guess you could say that I chose this industry

28 New Jersey Banker

How do you see technology changing the banking industry over the next 10 years?

I would say that technology will force institutions to remain competitive and pertinent to their customers. Advancements in technology will provide customers with an even greater ability to instantaneously compare products, review service quality, and execute transactions across many different institutions. Future technology is sure to add value and improve the customers’ experience; however, as an industry, it will also greatly reduce our margin of error.

If you weren’t a community banker, what would you be doing?

I would have been a teacher. I’ve always felt that many teachers do not get the credit that they

deserve, and I think I would’ve enjoyed trying to change that perception. Plus, as a father of young children, one of my greatest pleasures is seeing the wonder in a child’s eyes when they learn something exciting or new.

Winter 2014

one of my former colleagues had called me about an opportunity to work for a small community bank. I had two choices – either give this a shot or find a new career. So I made the transition – AND IT WAS THE BEST DECISION OF MY CAREER! I stay because I love working for a bank that genuinely cares about its employees and customers. I also stay because I love going to work every day with a group of professionals that I admire and I am proud to work among.

Janice Bolomey

Age: 45 Title: Senior Vice President, Director of Sales Bank: Unity Bank Bank location: Clinton Town of residence: Asbury How did you come to community banking, and why do you stay?

I had worked for two very large banks prior to making my decision to be a community banker.

At the time I made the change, big banks were evolving into widget-driven businesses. Customer service was no longer first and foremost. I was becoming disenchanted with banking, thinking that this was the way it was in all banks, and then

What do you consider your biggest success?

Professionally: Being fortunate enough to work for a company that empowers me to make a difference with no red tape or hurdles to overcome. No matter what the situation, I know I have the autonomy to do what is right for all parties involved. There is no greater feeling than going home at the end of the day feeling as though you made a difference.

Personally: Being a mother and being able to balance family and work to keep everyone happy.

How do you see technology changing the banking industry over the next 10 years?

Technology should continue to have a positive impact on the banking industry over the next decade, making it easier and more transparent for customers to conduct their banking. We will see a significant reduction in square footage of bank branches; we will see fewer and fewer physical branch locations and more alternative banking options. Technology will challenge banks to find a

balance of keeping up with the new methodologies while mitigating the risk associated with them. It will also provide banks with the opportunity to operate more efficiently and economically.

If you weren’t a community banker, what would you be doing?

I enjoy what I do and don’t imagine doing anything different, but if I had to choose something, I would follow my passion for cooking and pursue a dream of opening a restaurant.

NJBankers Auto Insurance All New Jersey Bankers Association members receive an exclusive 5% discount on auto insurance through Plymouth Rock Assurance. Drivers who switch to Plymouth Rock using a group discount save $517 per year and enjoy access to: • Get Home Safe® Free Cab Service • Crashbusters® Mobile Claim Service • Door to Door Valet Claim Service®

Get your free quote today!

NJBAQuote.com | 888-391-4910 A MEMBER OF

Plymouth Rock Assurance is a marketing name used by a group of separate companies that write and manage property and casualty insurance in multiple states.

Insurance in New Jersey is offered by Plymouth Rock Management Company of New Jersey on behalf of High Point Property and Casualty Insurance Company and their affiliates. Each company is financially responsible only for its own insurance products. Certain restrictions and limitations apply. For a full description, please visit PlymouthRockNJ.com.

Group discounts apply to policies written in High Point Property and Casualty Insurance Company. If the discount is not currently applied, it may be added upon request. May not be combined with any other group discounts. Offer available to New Jersey residents only.

Annual average savings based on customers who switched to High Point Property and Casualty Insurance Company using a group discount from 1/2010 to 4/2012.

Your premium may vary due to available discounts, eligibility requirements, driving record, and other factors. ©2013 Plymouth Rock Management Company of New Jersey. All rights reserved 6822/022013

Winter 2014 New Jersey Banker

29

Bank offers me many opportunities to learn and grow not only as an employee, but as a person.

I credit their dedication to their employees and their communities with making me enjoy and want to stay in community banking.

What do you consider your biggest success?

My biggest success is my family. My husband and I have a 3-year-old daughter and a son on the way in February. We both work full time jobs and care for our daughter. Managing career and home is very important to both of us and we enable and support each other to have continued successes. Being able to have it all is very fulfilling.

Jennifer Weisert

Age: 37 Title: Assistant Vice President, Branch Manager Bank: Manasquan Savings Bank Bank location: Howell Town of residence: Brick How did you come to community banking, and why do you stay?

I began my career in banking as a switchboard operator for Shrewsbury State Bank. I had never intended to make banking a career, but quickly found that it was a good fit for me. I took the initiative to learn different departmental roles at that institution prior to joining Manasquan Savings Bank as a teller. Manasquan Savings

How do you see technology changing the banking industry over the next 10 years?

Technology has become a driving force in the banking industry. Over the next 10 years, we will probably see that in addition to traditional branch banking, our customers will have many avenues to bank from anywhere at any time.

Smartphones and tablets will be the primary source of banking for most individuals. As community bankers, we need to keep up with technology or we will become obsolete. Where we will need to and can be different is in our attention to customer service.

If you weren’t a community banker, what would you be doing?

If not in community banking, I would be the

owner of a bookstore/café. We would have book clubs, children’s story times and of course, lots of fun!

I’m still here! Columbia is such a great place to work. The people who work here are not coworkers; they are family members. I also fell in love with community banking because this industry makes a difference in so many people’s lives, whether lending them money to buy their “dream home,” or to pay for the college education of their children, or to help them save for their retirement years. Community bankers also regularly give something back to the communities they so proudly serve. I really enjoy the opportunity to volunteer my time helping to build a Habitat for Humanity home or helping to paint classrooms at a local school for handicapped children. These are things we regularly do as part of our community service.

John Klimowich

Age: 50 Title: Executive Vice President, Chief Risk Officer Bank: Columbia Bank Bank location: Fair Lawn Town of residence: Fair Lawn How did you come to community banking, and why do you stay?

Purely by accident. During my college years, I worked for a local supermarket to support myself. After I graduated, I tried to find a job on Wall Street, but to no avail, because I didn’t have any practical experience. To get that needed experience, I took a “temporary” job at a town bank (Columbia Bank). Some 28 years later,

30 New Jersey Banker

What do you consider your biggest success?

Besides raising a family, I was recently promoted to executive vice president, chief risk officer. While it is both an honor and a privilege to join Columbia’s executive team and to be more heavily involved in even broader areas of the bank, my new position will be filled with a new set of responsibilities, opportunities and challenges. From supermarket clerk to community banker, it has been one fantastic ride so far!

How do you see technology changing the banking industry over the next 10 years?

I can describe my prediction in three simple words – more mobile technology. As individuals

and businesses continue to take advantage of new mobile banking apps, we will see a substantial usage increase. Just the convenience factor alone, of being able to do your banking from anywhere, at any time of the day or night, will make mobile banking a preferred banking method.

If you weren’t a community banker, what would you be doing?

If money wasn’t a consideration, I could see myself doing something sports-related, probably as a baseball statistician. Just think, you could watch baseball all day long – and get into the games for free!

Winter 2014

I stayed in community banking all these years because I enjoy the work that I do and the people that I work with.

What do you consider your biggest success?

I consider my biggest success to be the fact that I have been fortunate enough to work in the same bank for the past 31 years. I have seen incredible changes in banking during that time, along with the growth of Boiling Springs. I am proud to be a part of that success.

Kathy Tsiolas

Age: 49 Title: Senior Vice President, Controller Bank: Boiling Springs Savings Bank Bank location: Rutherford Town of residence: Rutherford How did you come to community banking, and why do you stay?

I began my career in community banking at the same bank I am still working for today, Boiling Springs. I started right out of high school and worked part-time as a data entry clerk and customer service representative while attending college and earning my degree in accounting.

How do you see technology changing the banking industry over the next 10 years?

There will be a continued move toward Internet and mobile banking. The traditional “brick and mortar” branches will lessen in number as electronic transactions will be the norm, making face to face customer service unnecessary. Continued regulatory change will be a factor in keeping up with technology demands. Security and authentication procedures will be critical.

If you weren’t a community banker, what would you be doing?

If I were no longer working in community banking, I’d like to work in a travel-related business. After sitting behind a desk for so many years, I would love the opportunity to travel and see different parts of the world.

Congratulations to all of the 2013 new leaders in banking.

Boiling Springs is especially proud to recognize a true leader in banking, our very own Kathleen Tsiolas.

Come Home to Better Banking

Corporate Headquarters: 25 Orient Way, Rutherford, NJ 07070 (201) 939-5000

Visit us at: www.bssbank.com

Member FDIC

Winter 2014 New Jersey Banker

31

working in a traditional style branch and in our accounting department have helped me develop my skills and obtain knowledge that enables me to provide guidance and leadership to my staff.

Our “hometown banking” atmosphere and our commitment to our customers is what makes Manasquan Savings Bank a great place to work.

Lisa L. Colonno

Age: 44 Title: Assistant Vice President, Branch Manager Bank: Manasquan Savings Bank Bank location: Point Pleasant Town of residence: Brick How did you come to community banking, and why do you stay?

After graduating from college, my job search was not heading in the direction I wanted and I quickly realized that retail was not the answer. I accepted a banking position with Summit Bank in a supermarket branch. The combination of sales and banking seemed like an interesting concept. I remained with Summit for nine years before becoming an assistant manager with Manasquan Savings Bank. The experiences of

What do you consider your biggest success?

My son Tyler is an exceptional student in the classroom and an outstanding player on the football field. He puts in a significant amount of time and effort to prepare himself for whatever he wants to accomplish. His drive and determination to succeed makes me proud to be his mom. His success is my biggest success.

How do you see technology changing the banking industry over the next 10 years?

Technology is changing every day and banks are going to make the necessary changes to stay competitive. Mobile banking is already taking over and with smartphones and tablets evolving every day, they will become the customer’s major form of banking. Imaging technology is being offered to consumers which will reduce the need for the traditional style of banking.

The days of customers visiting the bank to cash checks or open accounts will slowly diminish.

If you weren’t a community banker, what would you be doing?

I would have returned to college to receive a teaching degree. Being around children and

interacting with them on a daily basis would have been a rewarding experience. I would have loved the opportunity to become a soccer, basketball or even a football coach.

customers and providing responsible solutions.

Working for Sun National Bank was a nobrainer. The reason I stay is simple; I enjoy it.

Every member of my staff knows the individuals that walk into my branches by name. Within the community bank model, we market the same products and services as any large institution, but the difference is we do it with a real relationship driven model. I like that feeling.

Nick Thomas

Age: 42 Title: Assistant Vice President Bank: Sun National Bank Bank location: Old Bridge and West Windsor Town of residence: Ewing How did you come to community banking, and why do you stay?

Admittedly, in my most recent job searches I wasn’t enthusiastic about working for a large bank that expected five or six daily conference calls and constant reporting. I believe in developing lasting relationships, servicing my

32 New Jersey Banker

What do you consider your biggest success?

My biggest success is linked to the development of my two sons, Nicholas (17) and Timothy (14). Watching them grow and develop into fine young men is rewarding and phenomenal.

Professionally speaking, it’s coming to Sun National Bank and within my first year becoming the number-one manager and leading the number-one branch in the company.

How do you see technology changing the banking industry over the next 10 years?

Technology has significantly changed banking over the last 10 years. It will continue to drastically change the industry going forward.

For example, the popularity and increased dependency on smartphones will be a central instrument in this movement. I envision phones replacing debit and credit cards in the future. It may even be the preferred way to communicate with your banker. I do, however, fear that these

innovations may also bring about a reduction of staff in the retail branches.

If you weren’t a community banker, what would you be doing?

Managing a small banking consultant firm or possibly managing a branch at one of those larger banks – doing my best to avoid the conference calls.

Winter 2014

Powerful IT platform to enable your strategic business goals

Name: Temicka Wiggins

Age: 33 Title: Assistant Vice President, Chief Credit Administrator Bank: Heritage Community Bank Bank location: Denville Town of residence: Lyndhurst

• • • • • • •

Managed IT Infrastructure Managed Security Services Network Management Services Mobile Device Management IT Policy Management Data Backup and Disaster Recovery Managed Collaboration Solutions

How did you come to community banking, and why do you stay?

I came to work for a community bank because I wanted to work for a bank that cares about the community and the individuals that live in it. I stay because of the relationships that are built with our clients. We absolutely take pride in maintaining healthy relationships with our customers. That is our number one priority.

What do you consider your biggest success?

My biggest success has been my continued growth and willingness to learn within the banking industry. I’ve been in banking for 14 years, working as a bank teller, customer call center representative, consumer operations, and finally landing in commercial lending, where I’ve continued to learn and evolve as an administrator, portfolio officer, underwriter, and relationship manager.

How do you see technology changing the banking industry over the next 10 years?

I believe deposit operations will go from face-toface interaction to performing a majority of the banking functions online. Machines will start to take the place of physical tellers and more and more functions will be performed via smartphones and tablets.

If you weren’t a community banker, what would you be doing?

Maybe I’d entertain the idea of becoming a teacher.

But honestly I couldn’t imagine doing anything else. I love working as a community banker.

Atlantic Technology Systems delivers exceptional quality, price and performance; coupled with an unmatched level of expertise and support which continues as a true partnership with our clients through the entire information technology lifecycle.

You benefit from:

• • • • •

Our project management driven approach Our deep multi-faceted expertise Our customer service and support model Our professionalism and accountability Our tailored solutions which scale and adjust as your needs demand and your business grows

An Atlantic Technology Solution

SAFETiNET™ is your solution delivering expertise in regulatory compliance.

Since 2001, all federally insured financial institutions must demonstrate compliance with the Gramm-Leach-Bliley Act (GLBA) Data Protection provisions. GLBA requires financial institutions to provide administrative, technical and physical safeguards for customer records and information. Integral to these regulations is the requirement for Information and Data Security controls.

Atlantic Technology Systems 386 State Route 94 South Newton, NJ 07860

Providing Professional IT Services for over 20 years.

Winter 2014 New Jersey Banker

33

Bank Notes

Claire M. Chadwick

Mark J. Maurer

Donald A. Stanford

Gail Tilstra

Euege Giscombe

Paul M. Aguggia

Edward G. Poolas

Nancy E. Graves

Jeffrey J. Carfora

Imran Riaz

Amy L. Hellen

Patrick Mullen

ATLANTIC STEWARDSHIP BANK Claire M. Chadwick was promoted to executive vice president. Chadwick has been with the bank for five years. She holds a bachelor’s degree from Susquehanna University in Selinsgrove, PA. Previously, Chadwick served as senior vice president and chief financial officer. She has 25 years banking experience. Prior to Atlantic Stewardship Bank, she held various senior financial management positions for a local savings bank.

Mark J. Maurer has been promoted to executive vice president. He will serve at the bank’s Wayne office. As executive vice president, Maurer is responsible for managing the bank’s commercial lending department, serving the banking needs of small and medium-sized businesses throughout Atlantic Stewardship’s footprint.

Donald A. Stanford was promoted to senior vice president and senior credit officer. Stanford has been with the bank for one year. He holds a bachelor’s degree from Seton Hall University. He has over 30 years of progressive management experience within the financial services industry. Prior to Atlantic Stewardship Bank, Stanford held the position of credit officer for a large regional bank. Stanford has an extensive background in commercial lending, credit risk and loan review management.

Gail Tilstra was promoted to senior vice president. Tilstra has been with the bank for

34 New Jersey Banker

21 years. She holds a bachelor’s degree from Fairleigh Dickinson University. Previously, Tilstra was vice president and human resources officer.

CITY NATIONAL BANK City National Bancshares Corp., holding company of City National Bank, announced that Chairman of the Board Euege Giscombe has decided to retire after 22 years of exemplary service, including 16 years as chairman, effective Dec. 31, 2013. Giscombe joined the board in 1991, assumed the position of chairman in 1997 and served in that capacity for a 16-year period. During this time, the bank more than tripled in size, while expanding its regional market presence to serve communities throughout Northern New Jersey, Brooklyn, Harlem, Long Island, and Philadelphia. Giscombe served as the bank’s chairman through the 2009 financial crisis, a period which required a strategic repositioning to turnaround the bank, including closing of branches, workout of troubled credits and transition to a new management team.

CLIFTON SAVINGS BANK Paul M. Aguggia has been appointed chairman, chief executive officer and president of the company and the bank, effective Jan. 1, 2014. Aguggia currently serves as chairman of the global law firm Kilpatrick Townsend & Stockton LLP. Aguggia has practiced financial institution

law for nearly 25 years and has served as Clifton Savings’ primary legal counsel for over 10 years. Aguggia began his career at Willkie Farr & Gallagher LLP in New York City, and was associated with Muldoon Murphy & Aguggia LLP, a boutique banking law firm, for 10 years, serving as chairman of the firm from 2004 until its merger with Kilpatrick Townsend in 2008.

HIGHLANDS STATE BANK Edward G. Poolas has been appointed to senior vice president and commercial loan officer of the Vernon branch. Poolas brings 25 years of banking experience to the bank.

He has held various senior and executive positions. He will be centered in the Morris County area, but will also be working in the main office in Vernon.

PASCACK COMMUNITY BANK Junior Achievement of New Jersey announced that Nancy E. Graves of Pascack Community Bank and Pascack Community Bancorp, Inc. has been elected to its state board of directors. Graves currently is president, CEO and board director of Pascack Community Bank and Pascack Community Bancorp, Inc. and brings over 30 years of banking experience with her to the bank.

PEAPACK-GLADSTONE BANK/PEAPACKGLADSTONE FINANCIAL CORPORATION Anthony Bilotta Jr. has been appointed

Winter 2014

to the position of executive vice president, head of retail banking and marketing.

Bilotta joins Peapack-Gladstone Bank from Oritani Bank, where he was responsible for the retail banking and marketing functions for a 25-branch bank network. He replaces Robert Buckley, former senior vice president branch administrator, who will retire in January.

Jeffrey J. Carfora has been promoted to the position of senior executive vice president of the company and of Peapack-Gladstone Bank, the holding company’s wholly owned bank. Carfora remains as chief financial officer of both the company and the bank. Carfora is a Certified Public Accountant and career banker with over 33 years of financial experience. Prior to joining the company in March 2009, Carfora held senior level positions at New York Community Bank, Penn Federal Savings Bank, Carteret Savings Bank, Marine Midland Bank and PricewaterhouseCoopers. Carfora holds a bachelor’s degree in accounting and an MBA from Fairleigh Dickinson University, where he is a member of The PINNACLE, a society that recognizes and acknowledges the contributions of its most distinguished alumni.

She joined TD Bank in 2006 as a store manager and was promoted to senior management positions in 2010. She most recently served as a senior manager in the control functions group. Hellen received an MBA from Syracuse University and an undergraduate degree from Pennsylvania State University.

Edward Malandro was named senior vice president and head of North America ATM sales, innovation and analytics. Based in Mt. Laurel, he will help lead the bank’s ATM channel in North America, responsible for innovation, sales and analytics.

Rick Capozzi has been appointed to senior vice president and head of national sales. TD Wealth provides clients with customized private banking and wealth management services in partnership with TD Bank. Capozzi will focus on sales and marketing, business development, and training to lead and deliver a comprehensive wealth offering.

THE DEPARTMENT OF BANKING AND INSURANCE Patrick J. Mullen was appointed as the acting director of the Division of Banking for the New Jersey Department of Banking and Insurance. His principal responsibilities include the examination and supervision of all state chartered banks and savings banks, state chartered credit unions and statelicensed non-bank financial institutions (such as mortgage lenders and brokers, check cashers, pawnbrokers, and money transmitters).

TWO RIVER COMMUNITY BANK Anthony A. Mero has been named senior vice president and chief operating officer of the bank. In this capacity, Mero assumes responsibility for the day-to-day operations of the bank, including its information technology, deposit operations, facilities management, loan operations, retail banking and marketing divisions.

■

SUN NATIONAL BANK Imran Riaz has been named chief credit officer and senior vice president.

Riaz joins Sun with 20 years of in-depth experience in all aspects of credit and commercial lending, including structured credit, asset-based lending and enhanced portfolio analysis. Prior to joining Sun, Riaz was managing senior credit officer at TD Bank, where he was responsible for managing asset quality and risk parameters for a $6 billion lending portfolio as well as directing specialty lending, portfolio analysis and compliance initiatives. He held progressively responsible leadership positions in credit administration and lending at TD Bank over the past 14 years.

TD BANK Amy L. Hellen has been promoted to senior vice president and compliance administrative officer in Cherry Hill.

Hellen has 11 years of banking experience.

Winter 2014 New Jersey Banker

35

Bank Shots

A 20-member Japanese community banking delegation visited Atlantic Stewardship Bank in Wyckoff. The purpose of the visit was to learn about best practices and trends in community banking. Topics of discussion included strategies/policies to integrate and connect with the local community, methods to successfully compete against and differentiate from national bank competitors in the region, Atlantic Stewardship Bank’s unique tithing program, and innovative, unique products.

To ensure children from low-income households have the tools they need to succeed, the United Way of Northern New Jersey recently collected thousands of new school supplies through its annual Stuff the Bus School Supply Drive. Peapack-Gladstone Bank volunteers and their children joined this effort to ensure local needy children start the school year ready to learn.

Peapack-Gladstone Bank volunteers are seen working to sort school supplies.

Christopher Martin, president of The Provident Bank Foundation, signed a $100,000 check in support of a brandnew Neonatal Intensive Care Unit Videoconferencing System for parents. Joining him, are, from left: Ronald C. Rak, president and CEO of Saint Peter’s Healthcare System; Karen McMullen, a member of the Provident Bank Foundation board; Jane Kurek, executive director of The Provident Bank Foundation, and Mark Hiatt, MD, director of neonatology at The Children’s Hospital at Saint Peter’s University Hospital.

36 New Jersey Banker

BCB Community Bank sponsored a run/walk across the Bayonne Bridge to aid wounded U.S. Service personnel. Working in conjunction with the city of Bayonne, Police, Fire, EMS and Public Works departments and the New York/New Jersey Port Authority, BCB was able to have the entire span of the Bayonne Bridge closed to traffic between the hours of 8 a.m. and 10 a.m.

Runners and walkers could make their way across the bridge to Staten Island and back.

A volunteer crew of Columbia Bank employees recently teamed up with the Food Bank of South Jersey in Pennsauken to sort and distribute food to needy residents. The Columbia volunteers provided over 20 hours of community service. Columbia Bank is also a regular supporter of local food banks and feed-the-hungry programs throughout New Jersey and collects food items for Food Bank of South Jersey as part of their annual food collection efforts. Shown at the food bank’s distribution warehouse are Columbia Bank employees (standing, from left) Linda Hackley, Columbia’s Sicklerville branch manager; Patrick Taggart, commercial lender; Beverly Goodman, teller; and Shirley Levins, commercial lending secretary; (kneeling, from left) Theresa Freedman, Medford branch manager; and Danielle Milillo, head teller.

The Metro New Jersey Region of American Jewish Congress (AJC) honored Kevin Cummings, president and chief executive officer of Investors Bank with its prestigious National Human Relations Award at the Hilton at Short Hills. Pictured from left to right: Melvin Feigenbaum, Joseph Moeller, Amy Reisen Freundlich, Kevin Cummings, Paul Silverman and Christopher Martin.

Winter 2014

Spencer Savings Bank continued its 5K summer run series by participating in the 12th Annual Downtown Westfield 5K Run & Pizza Extravaganza. Bank employees and their family members joined over 2,500 participants for one of the largest non-corporate 5K races in the state, and enjoyed an evening of running, pizza, prizes, DJ entertainment, and live music. Spencer Savings’ Senior Vice President John Fitzpatrick was recognized for completing the race in seventh place for his age category. Pictured, from left: Eugene Mitchell, Rula Abualhuda, William Callahan, Annette Oriscello, John Fitzpatrick, Marta Alexandre, Erin Fitzpatrick, Thomas Mathews and Nuno Alexandre.

Unity Bancorp rang The NASDAQ Stock Market Closing Bell in Times Square on Thursday, August 22, marking 15 years that Unity Bancorp, Inc., parent company of Unity Bank, has been listed on the exchange, and highlighting several financial milestones achieved during 2013.

Pictured (from left) are: David Dallas, chairman; Rosemary Fellner, vice president and marketing director; Peter E. Maricondo, director; Donald E. Souders, director; Mary E. Gross, director; Allen Tucker, vice chairman; Janice Bolomey, senior vice president/director of sales; Alan Bedner, executive vice president and chief financial officer; James A. Hughes, president and CEO; Mark S. Brody, director; David Wicks, vice president, NASDAQ OMX; Raj Patel, director; Laurie Cook, senior vice president and controller; Robert H. Dallas, II, director; Linda McDermott, corporate secretary; Kevin O’Neill, NASDAQ OMX; and Wayne Courtright, director.

Sun National Bank executives recently celebrated the opening of the new Glassboro branch with a ribbon-cutting event, attended by borough officials and regional business leaders. A customized prototype designed to serve the needs of Rowan University and Glassboro merchants and residents, the new Sun branch is the first bank branch to be located in downtown Glassboro in 18 years.

Valley National Bank held its fifth annual breast cancer walk, Valley Goes Pink! The event kicked off in Wayne, and over 1,000 employees, family members and friends walked to raise money for the Cure Breast Cancer Foundation (CBCF).

Assisting New Jersey Banks in

Charting a Path to Success Since 1989

Consulting Services Implemented by Experienced Lenders and Risk Managers: Loan review ProgramS • General Loan Review • Portfolio Acquisition Review (Due Diligence) • Specialty/Structured Finance Review

Loan LoSS reServe methodoLogy • Methodology Validation • Methodology Refinement

Loan PortfoLio StreSS teSting

• Bottom Up Loan Level Approach • Top Down Capital Adequacy Assessment

CeiS review ConSuLting • Credit Risk Process Review • Loan Policy Maintenance • Loan and Credit Seminars

888-967-7380 • www.ceisreview.com Winter 2014 New Jersey Banker

37

NEW JERSEY’S ECONOMIC CONFERENCE

JANUARY 10, 2014

Thank you to our Sponsors presenting sponsor

outlook sponsors

breakfast sponsor

networking break sponsor

luncheon sponsor

photography by

event sponsors

media sponsors

Diebold ATM security.

Not like a security guard, like a security army.

With losses at $1 billion a year, threats to ATM security are increasing and alarming. It’s why Diebold is relentlessly proactive with an entire team dedicated to keeping its customers safe. From ATM security alert e-mails and ATM educational seminars to developing security solutions that combat sophisticated attacks, Diebold delivers a multilayered security approach. It’s another example of Diebold doing more to build the relationships that have inspired us to become security leaders and innovators for more than 150 years.

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

1.800.806.6827 www.diebold.com requests@diebold.com