Introducing the Most Powerful Women in Banking: NEXT

May 2019 | americanbanker.com the rise of the THE purpose-driven CEO FUTURE OF LEADERSHIP introducing the most powerful women in banking: NEXT

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0C2_ABM0519 2 4/10/2019 3:29:03 PM Contents May 2019 | VOL. 129 | NO. 5

THE FUTURE OF LEADERSHIP 12 The Purpose-Driven Chief Executive How a rapidly changing workforce, the rise of socially responsible investors and a more activist public have fundamentally changed the role of the bank CEO

ALSO INSIDE

Briefings 4 Lessons from an ‘Insulting’ Ad A diverse Boston neighborhood got offended by a TD Bank poster. Here’s what other banks can do to avoid similar backlash

5 20 Really ROSIE How Regions Optimal Solutions Intelligence Engine, aka ROSIE, is The Most Powerful Women in Banking: Next helping boost cross-sales for the Get ready to meet 15 women — ages 40 and under — whose Alabama bank accomplishments and influence set them apart. 6 28 Digital Disconnect As banks push customers to self-serve channels, they’re missing out on opportunities to build a relationship. Is it possible to create a human connection in a digital age?

Reprint and reuse rights, call (877) 652-5295 Metrics and Measures 8 Kristen Bitterly, Citigroup 22 Lindsay Lawrence, 26 The Top 200 First Foundation Bank Rachel Bryant, Regions Bank 22 Publicly traded banks with under $2 Carrie Lichter, Fifth Third 27 billion of assets ranked by three-year Camille Burckhart, Popular 23 return on equity Erika Marquez, Sumitomo Mitsui 27 Chantel Chase, Zions Bancorp. 23 Abigail Mrozinski, Wilmington 28 Lian Duan, China Merchants 24 Trust BackPorch April Frazer, Wells Fargo 24 Jennifer Upshaw, Synovus 28 32 Emily Girsch, Lincoln Savings 25 Uma Wilson, UMB Bank 29 Quotes from Mastercard’s Ajay Banga, Jacqueline Howard, Ally 26 Wells Fargo’s Tim Sloan, BB&T’s Kelly Rana Yared, Goldman Sachs 29 King and more

americanbanker.com May 2019 American Banker 1

001_ABM_0519 1 4/12/19 6:38 PM Volume 129, No. 5 american banker.com Editor’sWhat’s View going on @ Executive Editor Bonnie McGeer Art Director Robin Henriquez Contributors Laura Alix, Hilary Burns, Penny Crosman, americanbanker.com Suleman Din, Victoria Finkle, Rob Garver, Alan Kline, Hannah Lang, Jackie Stewart, Kevin Wack

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CHIEF EXECUTIVE OFFICER ��Gemma Postlethwaite American Banker (ISSN 2162-3198) Vol. 129 No. 5, is published monthly by SourceMedia, One State Street Plaza, 27th Floor New York, CHIEF FINANCIAL OFFICER ��Sean Kron NY 10004. Subscription price: $149 per year in the U.S.; $229 per year for all other countries. Periodical postage paid at New York, NY EVP & CHIEF CONTENT OFFICER ��David Longobardi and additional U.S. mailing offices. POSTMASTER: send all address changes to American Banker, One State Street Plaza, New York, NY CHIEF STRATEGY OFFICER ��Jeff Mancini 10004. For subscriptions, renewals, address changes and delivery service issues contact our Customer Service department at (212) 803-8500 CHIEF DATA OFFICER �� Christian Ward or email: [email protected]. Send editorial inquires and manuscripts to American Banker, One State Street Plaza, 27th Floor, New SVP, CONFERENCES & EVENTS ��John DelMauro York, NY 10004. This publication is designed to provide accurate and authoritative information regarding the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering financial, legal, accounting, tax or other professional service. VP, PEOPLE & CULTURE ��Lee Gavin American Banker is a registered trademark used herein under license. © 2019 SourceMedia, Incorporated and American Banker. All rights reserved. www.americanbanker.com.

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002_ABM0519 2 4/5/2019 5:38:44 PM “The key to this business is advice. The way we combine technology and our advisors to deliver it is what sets us apart.”

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34481_26_AD_RHOMES_Amer_Banker_FP.indd003_ABM0519 3 1 4/10/20195/16/18 3:29:04 7:59 AMPM Briefings BRANDING | ARTIFICIAL INTELLIGENCE | DIGITAL BANKING

for a few reasons. While TD has its U.S. headquarters in New Jersey, the bank has long had a presence in the greater Boston area (though notably, not in Dorchester). TD also prides itself on diversity and inclusion, both in its ranks and in its corporate philanthropy. Plus the ad echoed a 2017 campaign by Samsung that got flak for similar reasons. In that case, a Boston subway hub displayed the company’s large banner ads reading: “We’ll keep your work stuff safe if you go to Alewife and your phone goes to Mattapan.” Though Alewife and Mattapan are at opposite ends of the same subway line, many read a more ominous subtext in that message: The phone wasn’t just left on the subway, but stolen — by somebody from Mattapan (another diverse Boston neighborhood). “I’m really surprised that they basically replicated a campaign that Lessons from a Marketing Misstep had previously been pilloried,” said Steven Reider, president of the consult- A diverse Boston neighborhood takes offense at a TD Bank ad. Here’s what other ing firm Bancography. “You can’t tell banks can do to avoid similar backlash me that if you’re advertising in the Boston market that you’re not aware of By Laura Alix that.” For Bill Forry, the publisher and editor of the family-owned Dorchester “When you’re Downtown, but your debit the signage from its branch and marketing decisions. And a swift Reporter, it was the operative phrase card’s somewhere in Dorchester.” apologized. correction is key when a message lands “somewhere in Dorchester” that stung. TD Bank used this line on a poster At best, the message was another poorly. “It’s not on your desk in Dorchester promoting its instant debit card example of tone-deaf marketing. At After all, banks spend a lot of money or in your couch back in Dorchester,” he reissuance, perhaps pleased with the worst, it stemmed from — and played on marketing — isn’t it worth the extra said. “There’s a sinister meaning to that alliterative play on different neighbor- to — racial and socioeconomic effort to get it right? and that’s why it engendered the hoods of Boston. But in Dorchester — prejudices. “I don’t think we can afford to response it did.” an ethnically diverse community that is While some may be tempted to dismiss our markets or the audiences Though it might be tempting to often stereotyped as crime-ridden — dismiss the incident as another product we serve and just chalk it up to, ‘they’re dismiss this as a big-bank bungle, the message hit a nerve. of internet-outrage culture, it offers critical,’ ” said Kevin Tynan, a bank Tynan said community banks are not A customer snapped a photo of the some important lessons, marketing marketing consultant. “We expect more immune. He suggests checking with poster inside TD’s Back Bay branch, and experts say. from our banks now than we ever did, others outside the marketing depart- it prompted plenty of stern words on Getting too cute in your advertising and you must relate to the consumer. ment before going public with a new Twitter and beyond. Boston Mayor is risky, and trying to come across as Other people want your clients, and ad. That can make the difference in Martin J. Walsh, who is a Dorchester local can sometimes read as inauthen- they will find ways to relate to your something like nailing the correct native, called it “really insulting.” tic. It is important to get a diversity of consumer.” dialect for the neighborhood you’re Within about a day, TD had pulled viewpoints into the room when making The marketing mishap was surprising targeting with a Spanish-language ad.

4 American Banker May 2019 americanbanker.com

004_ABM0519 4 4/5/2019 5:41:01 PM BRANDING | ARTIFICIAL INTELLIGENCE | DIGITAL BANKING

for a few reasons. While TD has its U.S. Forry said he believes that a greater ham, Ala., bank is counting on to headquarters in New Jersey, the bank diversity of voices in the bank’s compete against its deep-pocketed has long had a presence in the greater marketing and advertising teams could larger rivals. Boston area (though notably, not in have helped prevent an issue like this. “The value of ROSIE is the personal- Dorchester). TD also prides itself on “Mistakes do happen, but the best ization of a unique offer that is diversity and inclusion, both in its ranks prevention here is to have a diverse relevant,” Chief Operating Officer John and in its corporate philanthropy. group of people, whether in your Owen said. “It also equips our bankers Plus the ad echoed a 2017 campaign C-suite or ad agency,” he said. to have a really good, robust conversa- by Samsung that got flak for similar There is at least one more lesson in tion with a customer.” reasons. In that case, a Boston subway this for other bank marketers: If you Short for Regions Optimal Solutions hub displayed the company’s large do screw up, do not be too proud to Intelligence Engine, ROSIE pulls banner ads reading: “We’ll keep your apologize. information from more than 350 data work stuff safe if you go to Alewife and In its apology, TD said the “insensi- elements and suggests a new product your phone goes to Mattapan.” tive” ad does not reflect its core values or service best suited for a particular Though Alewife and Mattapan are around diversity and inclusion. It customer. For example, a branch at opposite ends of the same subway declined to comment further. banker talking with a customer might line, many read a more ominous Forry said he received a phone call get a nudge to offer a credit card that subtext in that message: The phone from TD’s regional president after the the customer has already qualified for. wasn’t just left on the subway, but photo went viral on Twitter — a gesture Or if the customer has a card already, stolen — by somebody from Mattapan he appreciated. the banker might get a prompt to talk (another diverse Boston neighborhood). But in his view, the fact that TD lacks about a new feature that allows “I’m really surprised that they a presence in Dorchester made the customers to lock the card from the basically replicated a campaign that slight in the ad worse. bank’s website or mobile app. Lessons from a Marketing Misstep had previously been pilloried,” said “It annoys me that they would ROSIE was one of several tech Steven Reider, president of the consult- insinuate our community into their investments that Owen highlighted at A diverse Boston neighborhood takes offense at a TD Bank ad. Here’s what other ing firm Bancography. “You can’t tell marketing if they really don’t have a Regions’ investor day in late February. banks can do to avoid similar backlash me that if you’re advertising in the presence here,” he said. “That’s part of The tool first came on line in the Boston market that you’re not aware of the frustration and the angst around summer of 2017. By Laura Alix that.” them doing it.” Regional banks have faced investor For Bill Forry, the publisher and pressure to rein in tech spending, editor of the family-owned Dorchester particularly in an environment with marketing decisions. And a swift Reporter, it was the operative phrase sluggish commercial loan demand and correction is key when a message lands “somewhere in Dorchester” that stung. Everything’s rising deposit costs. Bankers, however, poorly. “It’s not on your desk in Dorchester say such spending is necessary to After all, banks spend a lot of money or in your couch back in Dorchester,” he Coming Up compete. Regions may not have a $10 on marketing — isn’t it worth the extra said. “There’s a sinister meaning to that billion tech budget like JPMorgan effort to get it right? and that’s why it engendered the ROSIE Chase, but at least it can be a fast Regions says its AI system is “I don’t think we can afford to response it did.” boosting revenue by helping follower. dismiss our markets or the audiences Though it might be tempting to bankers chat up customers Regions also will face stiffer compe- we serve and just chalk it up to, ‘they’re dismiss this as a big-bank bungle, tition in some of its key markets if BB&T critical,’ ” said Kevin Tynan, a bank Tynan said community banks are not Who says you need a $10 billion tech and SunTrust complete their merger as marketing consultant. “We expect more immune. He suggests checking with budget to compete with the big banks? planned. Executives of both those from our banks now than we ever did, others outside the marketing depart- Regions Financial is experimenting banks have said that scale — specifi- and you must relate to the consumer. ment before going public with a new with a system dubbed ROSIE to help its cally, the scale needed to invest huge Other people want your clients, and ad. That can make the difference in bankers suggest the best new product sums into technology — was one of the they will find ways to relate to your something like nailing the correct or service for customers. Powered by chief motivations for the deal. consumer.” dialect for the neighborhood you’re artificial intelligence and big data, it is This year the $126 billion-asset The marketing mishap was surprising targeting with a Spanish-language ad. one of the high-tech tools the Birming- Regions plans to spend $625 million, or

americanbanker.com May 2019 American Banker 5

005_ABM0519 5 4/5/2019 5:41:02 PM Briefings

11% of its total revenue in 2018, on plans to increase usage in its online developed a “human digital” strategy. technology, Owen said. Of that, 42% is and mobile banking channels, Owen “We came up with a mission statement: earmarked for new technologies, 48% said. — Laura Alix personalized banking for all, anytime, for maintenance of existing infrastruc- anywhere,” Delorier said. ture and 10% for cybersecurity and risk Now, using Umpqua’s GoTo app, management. customers can choose a banker from a Other banks also are experimenting Digital directory of profiles that includes with AI and data analytics to broaden photos, areas of expertise and hobbies customer relationships. Bank of Disconnect (a mutual interest in cats, for example, America saw early success with its How can banks engage the has turned out to be important to chatbot Erica, for example, and Morgan ‘overbanked but underserved’? customers). Then that banker is Stanley uses an AI-powered system to Rilla Delorier says banks have become designated to respond whenever that aid its advisers. a victim of their own success at customer texts a question. If done well, AI tools can be an building digital channels. “People still like people,” Delorier important differentiator for a financial Delorier, executive vice president said. “Your hairdresser has a name, your institution, said Tiffani Montez, senior and chief strategy officer at Umpqua babysitter has a name, your doctor has analyst at Aite Group. Bank in Portland, Ore., argues that a name. Why shouldn’t your banker, the “The difference really becomes training customers to use digital person who is helping you with your around personalization,” she said. “How channels has caused them to see money, have a name?” can you take what you know about a banking as a self-serve activity — no GoTo is meant to democratize consumer — about how they spend relationship needed. private banking. “This is for people who money, where they spend money, what But Umpqua set out to change that. don’t have somebody to turn to their financial goals are — and use all “We needed to figure out how to take because their balance sheet doesn’t that information to deliver personalized our customer intimacy strategy and award them that luxury,” Delorier said. experiences?” bring it into the digital age,” Delorier Today 12,000 Umpqua customers But doing that well means showing said at American Banker’s Retail use GoTo, and 400 more sign up each the customer the right offer at the right Banking conference in Austin, Tex. day. New customers who get GoTo time and place, and banks do not She noted that during the recent make Umpqua their primary bank at always accomplish that, she said. 35-day government shutdown, many twice the rate of customers who do not Montez gave a recent personal federal workers used up their emergen- have GoTo, Delorier said. example: She called her financial cy savings — 50% fell behind on bills, The system is scalable. Delorier institution to report fraud on a card 25% had to defer their rent or mort- estimates that one banker can cover up and, as the call ended, the contact gage payment, and 25% stopped to 1,000 customers. Some already cover center rep offered her an auto loan paying for a medical bill or prescription. 800. “This is not instead of self-service,” refinance. “Wrong place. Wrong time. “Have we really helped people on she said. “When you have a mon- And I had a lease, so there was nothing the financial margin to weather a ey-in-motion decision or you need help, to refinance. Wrong offer,” she said. 35-day storm?” Delorier said. “We have you want a human who knows you. But ROSIE’s results so far have been an opportunity, because 78% of that’s not that often.” promising, Owen said. customers say they want financial Umpqua’s human-digital strategy is Last year, ROSIE made 65 million advice from their banks, but only 28% forcing it to rethink performance recommendations. Bankers passed 38 are getting it today. Customers are measurements, with a focus on million of those suggestions on to overbanked and underserved.” customer outcomes, Delorier added. customers. Regions ultimately earned Digital banking has played a role in “We have gone through a two-year, 7% more revenue from the customer this, she said. “We have lost the art of inside-out cultural transformation,” she group that used ROSIE than the control understanding the conversation in said. “We needed to change our group that did not. times when customers truly need mindset, change our hiring, our Regions is using ROSIE mostly in its somebody to turn to.” incentives, how we reward, our policies, branch network and call center, but To help fill the gaps, Umpqua our procedures.” — Penny Crosman

6 American Banker May 2019

006_ABM0519 6 4/5/2019 5:41:03 PM we’re excited to follow your LEAD.

Congratulations to our very own Jacqueline Howard and to all of American Banker’s 25 Most Powerful Women in Banking honorees. Your outstanding leadership and commitment to excellence inspires all of us in the banking and ﬁnancial services industry.

007_ABM0519 7 4/10/2019 3:29:04 PM Metrics & Measures PEER ANALYSIS

3-YR Net Total Noninterest Total Market Closing ROAE Interest Net Noninterest Expense Efficiency Assets Value Price Avg. ROAE ROAA Margin Income Income Growth Ratio Rank Institution/Ticker Location ($000) ($Millions) ($) (%) (%) (%) FTE (%) ($000) ($000) (%) FTE (%) Warning Signs Amid the Big Gains 33 Trinity Bank (TYBT) Fort Worth, TX 257,181 72.05 65.50 12.77 14.77 1.84 3.80 4,677 547 24.22 45.57 34 Summit Bank (SBKO) Eugene, OR 416,468 83.64 16.25 12.70 15.51 1.51 5.23 5,762 1,733 27.47 53.22 Community banks need to reinvent themselves. That’s the previous year — and rising noninterest expenses. 35 First Commerce Bank (CMRB) Lakewood, NJ 962,299 135.21 6.00 12.58 10.25 1.31 4.04 12,934 477 12.73 46.38 36 Capital Bancorp (CBNK) Rockville, MD 1,105,058 151.90 11.11 12.54 13.94 1.22 5.59 12,767 16,147 20.10 73.07 the takeaway Kevin Halsey had after compiling data for our Halsey said the expense growth of 6.37% could be inter- 37 Merchants Bancorp Hillsboro, OH 736,716 NA NA 12.48 14.67 1.45 4.02 10,236 3,572 10.37 55.22 annual ranking of publicly traded banks and thrifts with less preted two ways. Perhaps business demands like the need to 38 Crystal Valley Financial (CYVF) Middlebury, IN 566,448 79.32 51.10 12.47 13.73 1.59 4.30 8,625 4,311 3.68 60.98 than $2 billion of assets. keep up with technology are imposing an increasingly heavy 39 First Bancorp (FBLV) Lebanon, VA 1,810,942 182.45 44.00 12.44 13.86 1.50 3.95 26,367 13,707 7.25 54.66 40 FS Bancorp (FXLG) Lagrange, IN 760,553 144.75 66.00 12.40 13.63 1.29 3.77 9,383 5,815 22.72 65.28 Lower taxes and higher interest rates significantly im- toll. Or perhaps the tax savings is prompting small banks to 41 Home Loan Financial Corp. (HLFN) Coshocton, OH 210,576 18.74 34.00 12.39 13.21 1.76 4.46 3,632 1,254 (0.08) 50.55 proved profitability for this group last year. The median return invest. “It’s probably a little of both,” Halsey said. 42 Peoples Limited (PPLL) Wyalusing, PA 371,226 42.68 67.12 12.38 15.70 1.33 3.44 4,842 3,582 3.20 59.90 on average equity for the 601 institutions that fit the ranking But even the most optimistic spin gives him pause — be- 43 Capital Bank of New Jersey* Vineland, NJ 513,515 NA NA 12.26 15.26 1.38 3.62 6,861 1,368 5.04 56.70 criteria jumped 270 basis points in 2018, to 9.66%. The increase cause the apparent investments have not boosted revenue. 44 Heartland BancCorp (HLAN) Whitehall, OH 1,047,177 163.93 81.30 12.26 13.54 1.16 3.90 11,415 5,318 19.79 62.45 45 Silvergate Capital Corp. La Jolla, CA 1,999,812 NA NA 12.24 15.47 1.22 3.55 24,548 7,509 54.92 59.35 for the top 200 is even greater (an extra 10 basis points), rais- “They haven’t funded some engine that’s taken off yet,” he said. 46 LifeStore Financial (MHC) (LSFG) West Jefferson, NC 292,159 31.00 29.50 12.19 13.77 1.24 3.74 3,573 2,951 1.63 69.90 ing their median ROAE to a very impressive 12.45%. That is what needs to happen for small banks to compete 47 Cass Information Systems (CASS) St. Louis, MO 1,695,176 695.62 47.89 12.13 13.37 1.84 3.34 30,268 104,118 11.47 73.96 But Halsey, a consultant at Capital Performance Group, effectively, though. “There is a mandate to change the way in 48 Forsyth Bancshares Cumming, GA 303,881 NA NA 12.10 14.49 1.35 3.91 4,161 782 6.96 55.59 49 Southern First Bancshares (SFST) Greenville, SC 1,900,614 257.64 34.43 12.07 13.83 1.27 3.58 22,289 10,194 15.08 56.32 points out that those gains had little to do with improvements which they do business,” said Halsey, who argues that focus- 50 CBB Bancorp (CBBI) Los Angeles, CA 1,161,074 121.23 12.00 12.07 13.49 1.50 4.30 16,658 10,381 14.87 56.47 to bank operations. Particularly troubling trends include a de- ing on, and excelling in, particular niches like small-business 51 Lyons Bancorp (LYBC) Lyons, NY 1,081,697 126.81 40.00 11.99 13.17 0.95 3.46 9,997 11,242 10.65 67.42 cline in core deposit growth — to 4.2% last year, from 7.1% banking can help. “You can’t boil the ocean.” — Bonnie McGeer 52 High Country Bancorp (HCBC) Salida, CO 267,977 40.59 44.02 11.93 13.78 1.38 5.14 3,657 1,501 8.77 65.48 53 PSB Holdings (PSBQ) Wausau, WI 915,998 104.96 23.35 11.87 13.41 1.19 3.56 10,312 6,476 6.72 60.82 54 Community Bancorp. (CMTV) Derby, VT 720,347 87.45 16.90 11.87 14.09 1.24 3.98 8,398 5,951 3.80 63.99 3-YR Net Total Noninterest 55 1st Colonial Bancorp (FCOB) Cherry Hill, NJ 543,938 55.45 12.50 11.70 12.84 0.96 3.47 5,215 3,027 2.01 62.35 Total Market Closing ROAE Interest Net Noninterest Expense Efficiency 56 Susquehanna Community (SQCF) West Milton, PA 422,536 53.19 18.00 11.67 12.05 1.24 3.33 5,124 2,586 7.81 64.56 Assets Value Price Avg. ROAE ROAA Margin Income Income Growth Ratio 57 Sunwest Bank Irvine, CA 1,333,563 NA NA 11.63 13.78 1.58 4.35 20,049 6,133 2.11 50.71 Rank Institution/Ticker Location ($000) ($Millions) ($) (%) (%) (%) FTE (%) ($000) ($000) (%) FTE (%) 58 Commercial National (CEFC) Ithaca, MI 527,368 45.01 11.35 11.62 13.31 0.86 2.92 4,502 1,842 (4.16) 66.65 1 Oregon Bancorp (ORBN) Salem, OR 241,577 46.03 19.95 25.18 29.33 3.37 4.15 7,553 34,475 14.62 76.84 59 Baker Boyer Bancorp (BBBK) Walla Walla, WA 600,359 91.13 70.49 11.60 13.81 1.22 3.61 7,321 12,741 5.83 73.90 2 MetroCity Bankshares (MCBS) Doraville, GA 1,435,822 333.32 27.50 24.90 27.80 3.01 4.47 41,377 37,462 23.31 40.08 60 Farmers Bancorp (FABP) Frankfort, IN 568,115 88.62 42.50 11.58 13.57 1.46 4.06 7,924 4,839 4.28 60.16 3 Thomasville Bancshares (THVB) Thomasville, GA 879,101 232.37 39.00 18.89 21.34 2.00 3.78 16,911 12,820 3.32 46.92 61 US Metro Bank (USMT) Garden Grove, CA 389,110 56.32 3.47 11.55 7.58 1.09 4.15 3,851 4,851 23.28 64.40 4 Plumas Bancorp (PLBC) Quincy, CA 824,398 124.91 24.25 18.25 23.29 1.83 4.70 13,992 8,680 8.60 51.79 62 HomeTown Bank, N.A. Galveston, TX 593,364 NA NA 11.54 13.64 1.46 4.21 8,648 2,180 4.15 54.56 5 First Home Bancorp St. Petersburg, FL 364,059 NA NA 17.23 (2.12) (0.26) 5.82 (830) 29,538 109.77 99.71 63 Macatawa Bank Corp. (MCBC) Holland, MI 1,975,124 349.96 10.28 11.45 14.69 1.40 3.36 26,379 17,503 1.47 57.74 6 FS Bancorp (FSBW) Mountlake Terrace, WA 1,621,644 221.84 50.72 15.57 18.15 2.07 4.61 24,347 19,336 7.86 65.93 64 1st Summit Bancorp (FSMK) Johnstown, PA 1,073,271 135.10 123.00 11.36 11.97 1.06 2.83 11,191 5,198 (0.07) 61.33 7 Greene County Bancorp (GCBC) Catskill, NY 1,195,286 264.67 31.00 15.20 16.90 1.42 3.56 16,260 8,047 18.10 50.58 65 First Bancorp (FNLC) Damariscotta, ME 1,944,570 287.55 26.42 11.31 12.72 1.23 2.91 23,536 12,463 5.74 52.04 8 FFD Financial Corp. (FFDF) Dover, OH 394,084 52.27 52.50 15.09 16.31 1.48 3.91 5,500 1,727 12.69 53.04 66 Chino Commercial Bancorp (CCBC) Chino, CA 201,988 28.41 15.28 11.30 12.15 1.16 4.10 2,231 1,563 13.25 63.18 9 First General Bank Rowland Heights, CA 947,186 NA NA 15.02 18.67 2.31 4.47 21,105 1,814 14.80 29.19 67 FFW Corp. (FFWC) Wabash, IN 398,200 47.44 41.26 11.27 11.30 1.18 3.65 4,517 3,178 8.74 67.11 10 Mission Bancorp (MSBC) Bakersfield, CA 688,830 147.94 82.50 14.98 21.40 1.91 4.50 12,763 6,458 13.66 47.59 68 First Bancshares (FIBH) Bellevue, OH 222,493 21.69 38.10 11.25 13.36 1.31 4.26 2,876 1,455 (1.31) 63.38 11 Country Bank Holding Co. (CYHC) New York, NY 727,672 55.20 28500.00 14.88 14.82 1.48 4.19 10,362 514 5.01 52.43 69 State Bank Corp. (SBAZ) Lake Havasu City, AZ 655,337 107.23 13.27 11.23 14.22 1.34 3.89 8,581 5,644 5.11 60.02 12 Santa Cruz County Bank (SCZC) Santa Cruz, CA 662,408 122.61 50.00 14.74 18.15 1.75 4.66 11,380 3,222 10.48 49.06 70 Merchants Financial Group (MFGI) Winona, MN 1,766,499 199.87 75.00 11.23 10.41 1.28 4.20 21,650 18,412 3.28 64.75 13 Unity Bancorp (UNTY) Clinton, NJ 1,579,157 217.16 20.11 14.63 17.10 1.53 3.97 21,919 8,939 10.02 52.44 71 CSB Bancorp (CSBB) Millersburg, OH 731,722 104.26 38.02 11.22 12.89 1.31 3.98 9,412 4,764 6.94 58.17 14 First Farmers Financial (FFMR) Converse, IN 1,749,101 305.26 42.50 14.35 15.38 1.63 4.15 27,664 15,580 11.15 52.96 72 Cashmere Valley Bank (CSHX) Cashmere, WA 1,520,773 243.04 59.00 11.22 12.34 1.45 3.53 21,788 12,031 9.81 54.27 15 First IC Corp. (FIEB) Doraville, GA 500,737 53.61 8.15 14.04 14.31 2.16 4.59 9,636 10,204 14.94 52.55 73 Valley Republic Bancorp (VLLX) Bakersfield, CA 779,854 136.42 33.00 11.19 14.54 1.25 3.34 8,952 2,324 10.87 52.28 16 United Bancorp. of Ala. (UBAB) Atmore, AL 639,609 49.52 20.30 13.90 24.08 1.60 3.82 10,052 6,686 7.38 66.55 74 Seacoast Commerce (SCBH) San Diego, CA 1,040,131 198.37 20.80 11.16 11.31 1.30 5.97 12,900 8,168 39.35 68.86 17 Parke Bancorp (PKBK) Sewell, NJ 1,467,398 228.77 21.28 13.88 17.20 1.98 3.92 25,038 4,107 1.62 30.05 75 Northeast Bancorp (NBN) Lewiston, ME 1,194,127 173.98 21.14 11.09 13.00 1.55 5.12 17,935 7,129 6.83 57.95 18 Union Bankshares (UNB) Morrisville, VT 805,337 207.79 46.51 13.86 11.80 0.94 4.05 7,072 9,020 5.84 65.99 76 Citizens Financial Services (CZFS) Mansfield, PA 1,430,712 208.27 59.50 11.09 13.00 1.29 3.66 18,034 7,754 8.26 55.41 19 First Commerce Bancorp Lewisburg, TN 411,624 NA NA 13.84 15.67 1.38 4.02 5,285 1,328 9.04 52.85 77 Redwood Financial (REDW) Redwood Falls, MN 318,656 33.87 84.01 11.07 9.58 1.10 4.49 3,332 3,034 6.54 66.58 20 Fentura Financial (FETM) Fenton, MI 926,450 95.05 20.45 13.57 15.05 1.20 3.85 10,114 8,277 9.28 65.23 78 Benchmark Bankshares (BMBN) Kenbridge, VA 643,887 101.34 19.70 10.98 13.39 1.51 4.72 9,249 6,293 7.14 62.57 21 Truxton Corp. (TRUX) Nashville, TN 485,133 110.19 40.00 13.48 15.53 1.76 3.30 8,194 10,627 5.04 58.48 79 Steuben Trust Corp. (SBHO) Hornell, NY 551,105 64.14 38.50 10.97 12.45 1.27 3.74 6,944 4,118 5.10 60.92 22 Bridgewater Bancshares (BWB) Bloomington, MN 1,973,741 333.18 11.07 13.31 13.87 1.51 3.72 26,920 2,893 26.44 45.70 80 Malaga Financial Corp. (MLGF) Palos Verdes Est., CA 1,088,000 179.30 26.00 10.95 11.65 1.44 3.17 15,305 807 3.19 34.67 23 First National Corp. (FXNC) Strasburg, VA 752,969 99.24 20.00 13.31 16.36 1.34 3.93 10,135 8,563 3.16 64.08 81 Pinnacle Bank (PBNK) Gilroy, CA 359,927 62.67 12.00 10.90 14.39 1.49 5.01 5,352 3,264 11.85 62.29 24 Bank of South Carolina (BKSC) Charleston, SC 429,135 103.64 18.79 13.29 15.85 1.61 4.15 6,923 1,990 8.18 56.72 82 MBT Financial Corp. (MBTF) Monroe, MI 1,336,891 243.94 10.61 10.88 14.47 1.33 3.63 17,699 15,812 3.69 63.38 25 Marlin Business Services (MRLN) Mount Laurel, NJ 1,167,046 278.30 22.92 13.27 13.27 2.29 7.60 24,980 37,352 6.59 54.42 83 F&M Bancorp (FMOO) Miamisburg, OH 159,149 17.88 56.50 10.88 13.11 1.25 4.33 1,903 785 11.65 63.71 26 Timberland Bancorp (TSBK) Hoquiam, WA 1,200,315 239.85 28.90 13.24 14.66 1.80 4.31 18,722 12,616 7.59 54.62 84 Town and Country Financial (TWCF) Springfield, IL 784,354 56.29 19.70 10.87 11.37 0.84 3.45 6,431 10,860 5.00 74.76 27 Minster Financial Corp. (MTFC) Minster, OH 490,197 59.62 57.00 13.12 15.41 1.30 3.32 6,213 3,694 8.36 58.77 85 Virginia National (VABK) Charlottesville, VA 644,800 99.93 39.05 10.87 12.39 1.33 3.80 8,470 5,530 0.83 55.77 28 CNB Community Bancorp (CNBB) Hillsdale, MI 662,067 74.37 35.00 13.09 15.78 1.31 4.24 8,473 6,230 4.42 66.94 86 S.B.C.P. Bancorp (SBBI) Cross Plains, WI 986,995 83.81 87.00 10.87 11.28 1.25 3.54 11,949 10,985 3.25 59.94 29 Pacific City Financial Corp. (PCB) Los Angeles, CA 1,697,028 277.85 17.39 12.91 14.26 1.53 4.23 24,301 10,451 11.99 52.79 87 Choice Bancorp (CBKW) Oshkosh, WI 421,138 49.46 21.40 10.86 13.79 1.09 3.01 4,474 1,129 13.58 51.85 30 Bank First National Corp. (BFC) Manitowoc, WI 1,793,165 377.83 57.54 12.88 15.36 1.43 3.80 25,456 8,968 43.30 53.57 88 OP Bancorp (OPBK) Los Angeles, CA 1,044,186 146.65 9.35 10.86 12.27 1.49 4.49 14,253 9,329 12.59 58.79 31 Communities First Financial (CFST) Fresno, CA 467,208 70.61 24.20 12.86 16.68 1.46 4.45 6,249 1,736 18.48 54.39 89 KS Bancorp (KSBI) Smithfield, NC 400,415 29.91 27.00 10.82 15.75 0.92 3.37 3,542 3,172 2.54 71.61 32 Citizens Bank Carthage, TN 587,500 NA NA 12.85 12.99 2.25 4.12 13,137 2,348 1.72 29.71 90 First Ottawa Bancshares (FOTB) Ottawa, IL 290,429 71.79 117.76 10.80 10.61 1.20 4.41 3,509 3,077 6.86 62.25

8 American Banker May 2019 americanbanker.com

008_ABM0519 8 4/9/2019 4:36:08 PM PEER ANALYSIS TOP 200 COMMUNITY BANKS

3-YR Net Total Noninterest Total Market Closing ROAE Interest Net Noninterest Expense Efficiency Assets Value Price Avg. ROAE ROAA Margin Income Income Growth Ratio Rank Institution/Ticker Location ($000) ($Millions) ($) (%) (%) (%) FTE (%) ($000) ($000) (%) FTE (%) Warning Signs Amid the Big Gains 33 Trinity Bank (TYBT) Fort Worth, TX 257,181 72.05 65.50 12.77 14.77 1.84 3.80 4,677 547 24.22 45.57 34 Summit Bank (SBKO) Eugene, OR 416,468 83.64 16.25 12.70 15.51 1.51 5.23 5,762 1,733 27.47 53.22 the previous year — and rising noninterest expenses. 35 First Commerce Bank (CMRB) Lakewood, NJ 962,299 135.21 6.00 12.58 10.25 1.31 4.04 12,934 477 12.73 46.38 36 Capital Bancorp (CBNK) Rockville, MD 1,105,058 151.90 11.11 12.54 13.94 1.22 5.59 12,767 16,147 20.10 73.07 Halsey said the expense growth of 6.37% could be inter- 37 Merchants Bancorp Hillsboro, OH 736,716 NA NA 12.48 14.67 1.45 4.02 10,236 3,572 10.37 55.22 preted two ways. Perhaps business demands like the need to 38 Crystal Valley Financial (CYVF) Middlebury, IN 566,448 79.32 51.10 12.47 13.73 1.59 4.30 8,625 4,311 3.68 60.98 keep up with technology are imposing an increasingly heavy 39 First Bancorp (FBLV) Lebanon, VA 1,810,942 182.45 44.00 12.44 13.86 1.50 3.95 26,367 13,707 7.25 54.66 40 FS Bancorp (FXLG) Lagrange, IN 760,553 144.75 66.00 12.40 13.63 1.29 3.77 9,383 5,815 22.72 65.28 toll. Or perhaps the tax savings is prompting small banks to 41 Home Loan Financial Corp. (HLFN) Coshocton, OH 210,576 18.74 34.00 12.39 13.21 1.76 4.46 3,632 1,254 (0.08) 50.55 invest. “It’s probably a little of both,” Halsey said. 42 Peoples Limited (PPLL) Wyalusing, PA 371,226 42.68 67.12 12.38 15.70 1.33 3.44 4,842 3,582 3.20 59.90 But even the most optimistic spin gives him pause — be- 43 Capital Bank of New Jersey* Vineland, NJ 513,515 NA NA 12.26 15.26 1.38 3.62 6,861 1,368 5.04 56.70 cause the apparent investments have not boosted revenue. 44 Heartland BancCorp (HLAN) Whitehall, OH 1,047,177 163.93 81.30 12.26 13.54 1.16 3.90 11,415 5,318 19.79 62.45 45 Silvergate Capital Corp. La Jolla, CA 1,999,812 NA NA 12.24 15.47 1.22 3.55 24,548 7,509 54.92 59.35 “They haven’t funded some engine that’s taken off yet,” he said. 46 LifeStore Financial (MHC) (LSFG) West Jefferson, NC 292,159 31.00 29.50 12.19 13.77 1.24 3.74 3,573 2,951 1.63 69.90 That is what needs to happen for small banks to compete 47 Cass Information Systems (CASS) St. Louis, MO 1,695,176 695.62 47.89 12.13 13.37 1.84 3.34 30,268 104,118 11.47 73.96 effectively, though. “There is a mandate to change the way in 48 Forsyth Bancshares Cumming, GA 303,881 NA NA 12.10 14.49 1.35 3.91 4,161 782 6.96 55.59 49 Southern First Bancshares (SFST) Greenville, SC 1,900,614 257.64 34.43 12.07 13.83 1.27 3.58 22,289 10,194 15.08 56.32 which they do business,” said Halsey, who argues that focus- 50 CBB Bancorp (CBBI) Los Angeles, CA 1,161,074 121.23 12.00 12.07 13.49 1.50 4.30 16,658 10,381 14.87 56.47 ing on, and excelling in, particular niches like small-business 51 Lyons Bancorp (LYBC) Lyons, NY 1,081,697 126.81 40.00 11.99 13.17 0.95 3.46 9,997 11,242 10.65 67.42 banking can help. “You can’t boil the ocean.” — Bonnie McGeer 52 High Country Bancorp (HCBC) Salida, CO 267,977 40.59 44.02 11.93 13.78 1.38 5.14 3,657 1,501 8.77 65.48 53 PSB Holdings (PSBQ) Wausau, WI 915,998 104.96 23.35 11.87 13.41 1.19 3.56 10,312 6,476 6.72 60.82 54 Community Bancorp. (CMTV) Derby, VT 720,347 87.45 16.90 11.87 14.09 1.24 3.98 8,398 5,951 3.80 63.99 3-YR Net Total Noninterest 55 1st Colonial Bancorp (FCOB) Cherry Hill, NJ 543,938 55.45 12.50 11.70 12.84 0.96 3.47 5,215 3,027 2.01 62.35 Total Market Closing ROAE Interest Net Noninterest Expense Efficiency 56 Susquehanna Community (SQCF) West Milton, PA 422,536 53.19 18.00 11.67 12.05 1.24 3.33 5,124 2,586 7.81 64.56 Assets Value Price Avg. ROAE ROAA Margin Income Income Growth Ratio 57 Sunwest Bank Irvine, CA 1,333,563 NA NA 11.63 13.78 1.58 4.35 20,049 6,133 2.11 50.71 Rank Institution/Ticker Location ($000) ($Millions) ($) (%) (%) (%) FTE (%) ($000) ($000) (%) FTE (%) 58 Commercial National (CEFC) Ithaca, MI 527,368 45.01 11.35 11.62 13.31 0.86 2.92 4,502 1,842 (4.16) 66.65 1 Oregon Bancorp (ORBN) Salem, OR 241,577 46.03 19.95 25.18 29.33 3.37 4.15 7,553 34,475 14.62 76.84 59 Baker Boyer Bancorp (BBBK) Walla Walla, WA 600,359 91.13 70.49 11.60 13.81 1.22 3.61 7,321 12,741 5.83 73.90 2 MetroCity Bankshares (MCBS) Doraville, GA 1,435,822 333.32 27.50 24.90 27.80 3.01 4.47 41,377 37,462 23.31 40.08 60 Farmers Bancorp (FABP) Frankfort, IN 568,115 88.62 42.50 11.58 13.57 1.46 4.06 7,924 4,839 4.28 60.16 3 Thomasville Bancshares (THVB) Thomasville, GA 879,101 232.37 39.00 18.89 21.34 2.00 3.78 16,911 12,820 3.32 46.92 61 US Metro Bank (USMT) Garden Grove, CA 389,110 56.32 3.47 11.55 7.58 1.09 4.15 3,851 4,851 23.28 64.40 4 Plumas Bancorp (PLBC) Quincy, CA 824,398 124.91 24.25 18.25 23.29 1.83 4.70 13,992 8,680 8.60 51.79 62 HomeTown Bank, N.A. Galveston, TX 593,364 NA NA 11.54 13.64 1.46 4.21 8,648 2,180 4.15 54.56 5 First Home Bancorp St. Petersburg, FL 364,059 NA NA 17.23 (2.12) (0.26) 5.82 (830) 29,538 109.77 99.71 63 Macatawa Bank Corp. (MCBC) Holland, MI 1,975,124 349.96 10.28 11.45 14.69 1.40 3.36 26,379 17,503 1.47 57.74 6 FS Bancorp (FSBW) Mountlake Terrace, WA 1,621,644 221.84 50.72 15.57 18.15 2.07 4.61 24,347 19,336 7.86 65.93 64 1st Summit Bancorp (FSMK) Johnstown, PA 1,073,271 135.10 123.00 11.36 11.97 1.06 2.83 11,191 5,198 (0.07) 61.33 7 Greene County Bancorp (GCBC) Catskill, NY 1,195,286 264.67 31.00 15.20 16.90 1.42 3.56 16,260 8,047 18.10 50.58 65 First Bancorp (FNLC) Damariscotta, ME 1,944,570 287.55 26.42 11.31 12.72 1.23 2.91 23,536 12,463 5.74 52.04 8 FFD Financial Corp. (FFDF) Dover, OH 394,084 52.27 52.50 15.09 16.31 1.48 3.91 5,500 1,727 12.69 53.04 66 Chino Commercial Bancorp (CCBC) Chino, CA 201,988 28.41 15.28 11.30 12.15 1.16 4.10 2,231 1,563 13.25 63.18 9 First General Bank Rowland Heights, CA 947,186 NA NA 15.02 18.67 2.31 4.47 21,105 1,814 14.80 29.19 67 FFW Corp. (FFWC) Wabash, IN 398,200 47.44 41.26 11.27 11.30 1.18 3.65 4,517 3,178 8.74 67.11 10 Mission Bancorp (MSBC) Bakersfield, CA 688,830 147.94 82.50 14.98 21.40 1.91 4.50 12,763 6,458 13.66 47.59 68 First Bancshares (FIBH) Bellevue, OH 222,493 21.69 38.10 11.25 13.36 1.31 4.26 2,876 1,455 (1.31) 63.38 11 Country Bank Holding Co. (CYHC) New York, NY 727,672 55.20 28500.00 14.88 14.82 1.48 4.19 10,362 514 5.01 52.43 69 State Bank Corp. (SBAZ) Lake Havasu City, AZ 655,337 107.23 13.27 11.23 14.22 1.34 3.89 8,581 5,644 5.11 60.02 12 Santa Cruz County Bank (SCZC) Santa Cruz, CA 662,408 122.61 50.00 14.74 18.15 1.75 4.66 11,380 3,222 10.48 49.06 70 Merchants Financial Group (MFGI) Winona, MN 1,766,499 199.87 75.00 11.23 10.41 1.28 4.20 21,650 18,412 3.28 64.75 13 Unity Bancorp (UNTY) Clinton, NJ 1,579,157 217.16 20.11 14.63 17.10 1.53 3.97 21,919 8,939 10.02 52.44 71 CSB Bancorp (CSBB) Millersburg, OH 731,722 104.26 38.02 11.22 12.89 1.31 3.98 9,412 4,764 6.94 58.17 14 First Farmers Financial (FFMR) Converse, IN 1,749,101 305.26 42.50 14.35 15.38 1.63 4.15 27,664 15,580 11.15 52.96 72 Cashmere Valley Bank (CSHX) Cashmere, WA 1,520,773 243.04 59.00 11.22 12.34 1.45 3.53 21,788 12,031 9.81 54.27 15 First IC Corp. (FIEB) Doraville, GA 500,737 53.61 8.15 14.04 14.31 2.16 4.59 9,636 10,204 14.94 52.55 73 Valley Republic Bancorp (VLLX) Bakersfield, CA 779,854 136.42 33.00 11.19 14.54 1.25 3.34 8,952 2,324 10.87 52.28 16 United Bancorp. of Ala. (UBAB) Atmore, AL 639,609 49.52 20.30 13.90 24.08 1.60 3.82 10,052 6,686 7.38 66.55 74 Seacoast Commerce (SCBH) San Diego, CA 1,040,131 198.37 20.80 11.16 11.31 1.30 5.97 12,900 8,168 39.35 68.86 17 Parke Bancorp (PKBK) Sewell, NJ 1,467,398 228.77 21.28 13.88 17.20 1.98 3.92 25,038 4,107 1.62 30.05 75 Northeast Bancorp (NBN) Lewiston, ME 1,194,127 173.98 21.14 11.09 13.00 1.55 5.12 17,935 7,129 6.83 57.95 18 Union Bankshares (UNB) Morrisville, VT 805,337 207.79 46.51 13.86 11.80 0.94 4.05 7,072 9,020 5.84 65.99 76 Citizens Financial Services (CZFS) Mansfield, PA 1,430,712 208.27 59.50 11.09 13.00 1.29 3.66 18,034 7,754 8.26 55.41 19 First Commerce Bancorp Lewisburg, TN 411,624 NA NA 13.84 15.67 1.38 4.02 5,285 1,328 9.04 52.85 77 Redwood Financial (REDW) Redwood Falls, MN 318,656 33.87 84.01 11.07 9.58 1.10 4.49 3,332 3,034 6.54 66.58 20 Fentura Financial (FETM) Fenton, MI 926,450 95.05 20.45 13.57 15.05 1.20 3.85 10,114 8,277 9.28 65.23 78 Benchmark Bankshares (BMBN) Kenbridge, VA 643,887 101.34 19.70 10.98 13.39 1.51 4.72 9,249 6,293 7.14 62.57 21 Truxton Corp. (TRUX) Nashville, TN 485,133 110.19 40.00 13.48 15.53 1.76 3.30 8,194 10,627 5.04 58.48 79 Steuben Trust Corp. (SBHO) Hornell, NY 551,105 64.14 38.50 10.97 12.45 1.27 3.74 6,944 4,118 5.10 60.92 22 Bridgewater Bancshares (BWB) Bloomington, MN 1,973,741 333.18 11.07 13.31 13.87 1.51 3.72 26,920 2,893 26.44 45.70 80 Malaga Financial Corp. (MLGF) Palos Verdes Est., CA 1,088,000 179.30 26.00 10.95 11.65 1.44 3.17 15,305 807 3.19 34.67 23 First National Corp. (FXNC) Strasburg, VA 752,969 99.24 20.00 13.31 16.36 1.34 3.93 10,135 8,563 3.16 64.08 81 Pinnacle Bank (PBNK) Gilroy, CA 359,927 62.67 12.00 10.90 14.39 1.49 5.01 5,352 3,264 11.85 62.29 24 Bank of South Carolina (BKSC) Charleston, SC 429,135 103.64 18.79 13.29 15.85 1.61 4.15 6,923 1,990 8.18 56.72 82 MBT Financial Corp. (MBTF) Monroe, MI 1,336,891 243.94 10.61 10.88 14.47 1.33 3.63 17,699 15,812 3.69 63.38 25 Marlin Business Services (MRLN) Mount Laurel, NJ 1,167,046 278.30 22.92 13.27 13.27 2.29 7.60 24,980 37,352 6.59 54.42 83 F&M Bancorp (FMOO) Miamisburg, OH 159,149 17.88 56.50 10.88 13.11 1.25 4.33 1,903 785 11.65 63.71 26 Timberland Bancorp (TSBK) Hoquiam, WA 1,200,315 239.85 28.90 13.24 14.66 1.80 4.31 18,722 12,616 7.59 54.62 84 Town and Country Financial (TWCF) Springfield, IL 784,354 56.29 19.70 10.87 11.37 0.84 3.45 6,431 10,860 5.00 74.76 27 Minster Financial Corp. (MTFC) Minster, OH 490,197 59.62 57.00 13.12 15.41 1.30 3.32 6,213 3,694 8.36 58.77 85 Virginia National (VABK) Charlottesville, VA 644,800 99.93 39.05 10.87 12.39 1.33 3.80 8,470 5,530 0.83 55.77 28 CNB Community Bancorp (CNBB) Hillsdale, MI 662,067 74.37 35.00 13.09 15.78 1.31 4.24 8,473 6,230 4.42 66.94 86 S.B.C.P. Bancorp (SBBI) Cross Plains, WI 986,995 83.81 87.00 10.87 11.28 1.25 3.54 11,949 10,985 3.25 59.94 29 Pacific City Financial Corp. (PCB) Los Angeles, CA 1,697,028 277.85 17.39 12.91 14.26 1.53 4.23 24,301 10,451 11.99 52.79 87 Choice Bancorp (CBKW) Oshkosh, WI 421,138 49.46 21.40 10.86 13.79 1.09 3.01 4,474 1,129 13.58 51.85 30 Bank First National Corp. (BFC) Manitowoc, WI 1,793,165 377.83 57.54 12.88 15.36 1.43 3.80 25,456 8,968 43.30 53.57 88 OP Bancorp (OPBK) Los Angeles, CA 1,044,186 146.65 9.35 10.86 12.27 1.49 4.49 14,253 9,329 12.59 58.79 31 Communities First Financial (CFST) Fresno, CA 467,208 70.61 24.20 12.86 16.68 1.46 4.45 6,249 1,736 18.48 54.39 89 KS Bancorp (KSBI) Smithfield, NC 400,415 29.91 27.00 10.82 15.75 0.92 3.37 3,542 3,172 2.54 71.61 32 Citizens Bank Carthage, TN 587,500 NA NA 12.85 12.99 2.25 4.12 13,137 2,348 1.72 29.71 90 First Ottawa Bancshares (FOTB) Ottawa, IL 290,429 71.79 117.76 10.80 10.61 1.20 4.41 3,509 3,077 6.86 62.25

americanbanker.com May 2019 American Banker 9

009_ABM0519 9 4/9/2019 4:36:09 PM Metrics & Measures TOP 200 COMMUNITY BANKS

3-YR Net Total Noninterest 3-YR Net Total Noninterest Total Market Closing ROAE Interest Net Noninterest Expense Efficiency Total Market Closing ROAE Interest Net Noninterest Expense Efficiency Assets Value Price Avg. ROAE ROAA Margin Income Income Growth Ratio Assets Value Price Avg. ROAE ROAA Margin Income Income Growth Ratio Rank Institution/Ticker Location ($000) ($Millions) ($) (%) (%) (%) FTE (%) ($000) ($000) (%) FTE (%) Rank Institution/Ticker Location ($000) ($Millions) ($) (%) (%) (%) FTE (%) ($000) ($000) (%) FTE (%) 91 Liberty Bancorp (LBCP) Kansas City, MO 540,485 119.25 24.25 10.80 14.29 1.64 4.70 8,657 3,812 6.28 55.22 148 Heartland Bancshares Sebring, FL 380,287 NA NA 9.74 13.90 1.23 3.21 4,683 1,527 1.13 52.97 92 Cornerstone Community (CRSB) Red Bluff, CA 266,361 26.53 17.50 10.80 13.72 1.13 4.18 2,776 695 14.42 62.38 149 Solvay Bank Corp. (SOBS) Solvay, NY 908,130 94.68 43.00 9.73 10.97 0.96 2.95 8,539 5,261 3.29 61.75 93 Kentucky Bancshares (KTYB) Paris, KY 1,086,012 146.54 24.50 10.80 12.36 1.18 3.70 12,430 13,037 3.43 68.78 150 Presidio Bank (PDOB) San Francisco, CA 862,464 166.94 26.75 9.73 14.50 1.42 4.34 11,829 1,221 10.79 55.89 94 SB Financial Group (SBFG) Defiance, OH 986,828 120.38 18.59 10.79 9.61 1.23 3.95 11,638 16,554 9.72 69.30 151 Oconomowoc Bancshares (OCNB) Oconomowoc, WI 1,177,084 95.51 285.00 9.71 9.65 0.71 3.48 8,218 15,645 1.85 81.18 95 Fidelity D & D Bancorp (FDBC) Dunmore, PA 981,102 225.38 59.95 10.78 12.36 1.20 3.64 11,006 9,190 4.97 61.67 152 Jonestown Bank and Trust (JNES) Jonestown, PA 588,729 53.56 22.20 9.70 9.57 0.84 3.55 4,845 3,404 15.22 71.42 96 Mountain Commerce (MCBI) Knoxville, TN 849,145 118.37 19.12 10.74 14.41 1.28 3.53 10,183 1,945 4.32 48.52 153 Pacific Financial Corp. (PFLC) Aberdeen, WA 907,929 119.98 11.34 9.66 12.63 1.25 4.46 11,330 10,031 2.48 71.07 97 BEO Bancorp (BEOB) Heppner, OR 416,600 34.33 29.00 10.71 10.36 0.98 5.34 3,949 2,738 5.29 68.59 154 Auburn National Bancorp. (AUBN) Auburn, AL 818,077 125.77 35.00 9.66 10.14 1.08 3.40 8,834 3,325 6.49 60.57 98 Oak Valley Bancorp (OVLY) Oakdale, CA 1,094,887 147.04 18.18 10.70 12.26 1.08 3.89 11,537 4,438 11.62 62.40 155 Dart Financial Corp. (DRTF) Mason, MI 454,157 NA NA 9.65 10.39 0.91 4.17 3,860 10,066 5.34 81.80 99 Killbuck Bancshares (KLIB) Killbuck, OH 521,897 108.99 185.00 10.69 12.73 1.40 3.67 7,383 2,399 8.20 55.56 156 FCN Banc Corp. (FBVI) Brookville, IN 443,563 52.22 34.75 9.65 11.30 1.19 3.64 5,283 2,310 1.38 61.10 100 Level One Bancorp (LEVL) Farmington Hills, MI 1,416,215 188.41 24.31 10.69 10.68 1.07 3.92 14,386 7,126 10.06 68.19 157 Community Bank of Pickens County Jasper, GA 354,215 NA NA 9.63 13.16 1.38 4.34 4,790 2,692 (1.05) 62.77 101 First Community Bancorp Shelbyville, TN 474,754 NA NA 10.68 4.68 0.56 3.36 2,813 43,454 (0.36) 93.51 158 Allegheny Bancshares Franklin, WV 307,536 NA NA 9.63 10.35 1.29 4.51 3,884 2,346 9.29 63.44 102 SVB&T Corp. (SVBT) Jasper, IN 400,954 44.67 79.90 10.68 10.74 1.05 3.51 4,149 5,189 4.46 68.81 159 New Tripoli Bancorp (NTBP) New Tripoli, PA 480,323 61.85 972.00 9.62 9.73 1.10 3.18 5,045 821 0.72 58.00 103 Huron Valley Bancorp (HVLM) Milford, MI 150,846 12.11 14.10 10.67 12.03 1.21 4.28 1,754 447 6.73 62.08 160 FvCBankcorp (AQFH) Cornelius, NC 460,113 46.33 11.47 9.59 13.46 0.98 3.58 4,248 4,129 11.16 74.79 104 Community Financial (CFGW) Spokane, WA 434,324 45.39 28.35 10.63 13.06 1.27 4.72 5,235 5,225 14.24 69.84 161 Ledyard Financial Group (LFGP) Hanover, NH 487,261 64.78 20.10 9.59 11.00 1.07 3.37 5,152 12,093 7.51 78.51 105 American Bank Inc. (AMBK) Allentown, PA 621,969 65.84 11.60 10.61 11.70 1.17 3.10 7,270 1,194 7.33 50.16 162 Bank of Princeton (BPRN) Princeton, NJ 1,251,564 214.29 32.22 9.57 8.37 1.20 3.52 14,708 2,661 8.42 56.69 106 Centric Financial Corp. (CFCX) Harrisburg, PA 704,396 93.57 10.71 10.59 13.85 1.21 3.95 8,004 4,434 20.59 61.35 163 CBC Holding Co. (CBHC) Fitzgerald, GA 158,202 8.20 13.50 9.57 11.56 1.46 4.40 2,200 1,147 5.71 58.13 107 Chesapeake Financial (CPKF) Kilmarnock, VA 854,766 110.63 27.00 10.59 12.27 1.34 4.35 10,820 18,474 4.88 72.59 164 River Financial Corp. (RVRF) Prattville, AL 1,070,362 170.70 30.00 9.57 9.46 1.07 4.10 9,332 6,634 19.80 62.31 108 Northeast Ind. Bancorp (NIDB) Huntington, IN 334,211 43.31 35.90 10.57 11.46 1.28 3.60 4,167 3,259 10.01 63.45 165 Benton Financial Corp. (BTOF) Fowler, IN 167,052 20.56 30.00 9.54 10.19 1.42 4.16 2,304 768 7.25 65.82 109 Mifflinburg Bancorp (MIFF) Mifflinburg, PA 438,368 44.28 23.65 10.55 12.45 1.14 3.24 4,975 2,141 6.91 56.76 166 Andover Bancorp (ANDC) Andover, OH 395,770 56.24 23.00 9.50 10.15 0.96 3.21 3,864 3,120 (2.95) 72.35 110 Oak Ridge Financial (BKOR) Oak Ridge, NC 453,341 38.16 14.72 10.50 12.33 0.91 3.73 3,980 3,056 6.43 74.38 167 First Farmers and Merchants (FFMH) Columbia, TN 1,365,117 198.62 44.62 9.49 11.44 1.04 3.23 14,213 13,482 6.36 70.08 111 Woodlands Financial (WDFN) Williamsport, PA 414,311 44.71 29.00 10.48 13.82 1.35 3.67 5,460 3,465 4.31 67.47 168 Ballston Spa Bancorp (BSPA) Ballston Spa, NY 534,455 43.82 59.00 9.48 10.91 0.89 3.86 4,554 3,650 6.37 70.76 112 Avidbank Holdings (AVBH) San Jose, CA 917,144 143.24 24.00 10.48 11.83 1.28 4.58 11,120 2,414 18.59 58.41 169 County Bank Corp (CBNC) Lapeer, MI 616,564 79.57 45.55 9.45 12.00 1.13 3.76 6,960 5,613 0.25 66.41 113 Henderson Bancshares Troy, AL 875,923 NA NA 10.48 12.70 1.42 3.74 12,752 7,763 4.18 56.97 170 Virginia Community (VCBS) Louisa, VA 247,470 27.38 36.50 9.44 9.54 0.97 4.50 2,414 1,391 12.90 78.91 114 Embassy Bancorp (EMYB) Bethlehem, PA 1,099,387 112.50 15.05 10.47 12.10 0.96 3.19 10,079 1,733 4.85 60.51 171 Cornerstone Bancorp Palatine, IL 568,354 NA NA 9.43 12.69 1.26 3.78 7,009 4,366 8.97 62.13 115 Lighthouse Bank (LGHT) Santa Cruz, CA 303,939 62.09 23.86 10.45 13.47 1.75 5.40 4,937 310 14.26 49.00 172 York Traditions Bank (YRKB) York, PA 482,918 56.01 19.85 9.42 10.01 1.03 3.54 4,728 5,462 6.58 70.23 116 F & M Bank Corp. (FMBM) Timberville, VA 780,253 104.54 32.56 10.45 9.90 1.19 4.65 9,095 6,709 8.19 69.08 173 Coastal Financial Corp. (CCB) Everett, WA 952,110 191.36 16.09 9.41 11.40 1.14 4.24 9,701 5,467 16.86 65.08 117 Somerset Trust Holding Co. (SOME) Somerset, PA 1,230,098 103.42 42.41 10.43 12.45 0.91 4.39 10,829 12,721 12.72 75.08 174 Shore Bancshares (SHBI) Easton, MD 1,483,076 198.60 15.54 9.39 14.81 1.74 3.74 24,997 9,018 12.76 59.58 118 Evans Bancorp (EVBN) Hamburg, NY 1,388,207 172.45 35.80 10.35 13.20 1.20 3.73 16,356 15,081 12.18 68.07 175 Eagle Financial Services (EFSI) Berryville, VA 799,617 115.03 33.25 9.39 10.67 1.16 4.06 9,001 6,862 8.65 65.87 119 Southwest Georgia Financial (SGB) Moultrie, GA 534,701 49.39 19.40 10.34 11.09 0.92 3.99 4,682 4,361 4.59 72.16 176 QNB Corp. (QNBC) Quakertown, PA 1,175,452 131.02 37.57 9.36 10.47 0.96 3.13 11,335 5,304 9.13 62.92 120 Community First Bank of Ind. Kokomo, IN 286,626 NA NA 10.33 11.73 1.23 4.48 3,195 1,811 1.44 63.52 177 Bankwell Financial Group (BWFG) New Canaan, CT 1,873,665 225.00 28.95 9.35 10.19 0.94 3.18 17,433 3,678 9.30 58.95 121 Peoples Bancorp (PPBB) Bellingham, WA 1,731,729 302.41 237.50 10.30 12.46 1.40 4.25 23,670 19,324 2.51 65.78 178 Sturgis Bancorp (STBI) Sturgis, MI 431,575 62.07 29.50 9.35 11.19 1.01 3.77 4,373 5,019 (3.84) 73.22 122 Blackhawk Bancorp (BHWB) Beloit, WI 817,287 93.67 28.50 10.29 10.19 1.06 3.83 8,142 11,496 17.00 71.02 179 Harleysville Financial Corp. (HARL) Harleysville, PA 771,816 92.38 24.50 9.33 11.01 1.01 3.20 7,820 2,597 3.33 57.78 123 Colony Bankcorp (CBAN) Fitzgerald, GA 1,251,878 149.22 17.67 10.16 13.32 0.99 3.56 11,917 9,505 3.59 69.51 180 Three Shores Bancorp. (TSHR) Orlando, FL 1,882,689 176.46 9.71 9.31 12.79 0.95 2.92 17,172 8,677 2.84 59.10 124 Farmers Bankshares (FBVA) Windsor, VA 478,245 56.89 18.50 10.15 10.16 1.04 3.70 4,875 6,100 13.67 70.18 181 Mission Valley Bancorp (MVLY) Sun Valley, CA 350,968 48.18 14.90 9.30 8.30 1.16 4.94 3,832 2,683 9.47 68.28 125 NorthWest Indiana Bancorp (NWIN) Munster, IN 1,096,158 147.24 42.65 10.14 9.88 0.93 3.67 9,337 7,845 15.24 68.81 182 Pinnacle Bancshares (PCLB) Jasper, AL 220,981 26.09 25.00 9.29 9.86 1.17 3.77 2,596 1,761 5.18 66.43 126 Farmers and Merchants (FMFG) Hampstead, MD 417,158 51.08 30.35 10.10 10.79 1.14 3.84 4,713 1,432 2.12 62.23 183 Shore Community Bank (SHRC) Toms River, NJ 267,549 43.26 13.85 9.28 13.60 1.45 3.88 4,002 945 (0.57) 52.73 127 First Pulaski National Corp. Pulaski, TN 851,418 NA NA 10.09 12.18 1.22 3.84 10,127 5,255 6.33 60.23 184 Middlefield Banc Corp. (MBCN) Middlefield, OH 1,248,398 138.18 42.59 9.26 9.94 1.09 3.77 12,431 3,737 8.77 63.47 128 First Citizens Bancshares (FIZN) Dyersburg, TN 1,703,271 237.69 62.00 10.07 10.23 1.13 3.74 18,823 15,383 5.61 65.27 185 Surrey Bancorp (SRYB) Mount Airy, NC 309,150 60.27 14.77 9.26 11.72 1.69 4.53 5,102 2,646 5.54 58.02 129 River Valley Community (RVCB) Yuba City, CA 376,986 46.50 19.50 10.05 12.64 1.02 3.20 3,656 563 26.25 55.00 186 Logansport Financial (LOGN) Logansport, IN 173,245 24.98 40.50 9.25 9.76 1.27 3.70 2,231 885 1.98 61.81 130 West Town Bancorp (WTWB) Raleigh, NC 555,324 60.33 23.00 10.04 16.41 2.24 4.41 12,136 15,097 61.29 77.99 187 Peoples Bancorp of N.C. (PEBK) Newton, NC 1,093,251 166.07 27.70 9.23 10.81 1.22 4.39 13,382 15,590 2.63 71.04 131 Community National Corp. Lexington, TN 156,259 NA NA 10.02 9.14 0.86 4.19 1,288 655 11.10 72.15 188 Grand Bank Corp. (GABK) Marblehead, MA 328,925 67.92 6050.00 9.22 9.60 1.09 3.31 3,534 1,754 15.94 61.30 132 Farmers & Merchants (FMAO) Archbold, OH 1,116,163 319.77 28.79 10.00 10.86 1.34 3.80 14,949 10,873 9.56 61.64 189 Southern Michigan Bancorp (SOMC) Coldwater, MI 738,831 87.83 38.05 9.20 11.28 1.10 3.77 8,125 6,616 7.74 68.64 133 ACNB Corp. (ACNB) Gettysburg, PA 1,647,724 255.70 36.29 9.97 13.62 1.34 3.81 21,748 16,107 14.09 59.87 190 Central Valley Community (CVCY) Fresno, CA 1,537,836 274.93 20.05 9.20 10.07 1.35 4.44 21,289 8,463 4.76 61.23 134 Cortland Bancorp (CLDB) Cortland, OH 714,666 102.22 23.50 9.96 14.36 1.31 3.76 8,835 4,165 (1.89) 64.83 191 First Citrus Bancorp. (FCIT) Tampa, FL 403,299 50.94 25.50 9.19 12.13 1.03 4.10 3,895 1,838 9.70 64.68 135 First Capital (FCAP) Corydon, IN 794,162 171.59 51.00 9.93 11.47 1.19 3.79 9,266 6,646 6.70 61.13 192 SouthEast Bank Farragut, TN 1,244,226 NA NA 9.19 10.45 0.96 3.94 13,283 8,560 12.36 68.72 136 First Guaranty Bancshares (FGBI) Hammond, LA 1,817,211 186.23 21.15 9.92 9.98 0.82 3.41 14,213 7,110 16.66 66.34 193 CMUV Bancorp (CMUV) El Centro, CA 195,530 21.68 9.64 9.18 10.34 1.21 5.49 2,044 604 11.38 62.46 137 First Northern Community (FNRN) Dixon, CA 1,249,845 134.08 11.45 9.91 12.00 1.03 3.79 12,551 7,229 9.40 62.31 194 Citizens B & T Holdings Guntersville, AL 519,569 NA NA 9.18 10.93 0.99 3.74 4,778 3,249 10.93 71.02 138 United Security Bancshares (UBFO) Fresno, CA 933,058 180.48 10.65 9.91 13.23 1.61 4.27 14,017 4,483 5.70 54.14 195 Ames National Corp. (ATLO) Ames, IA 1,455,687 255.38 27.63 9.16 10.09 1.23 3.23 17,014 7,738 6.84 52.61 139 BancAffiliated (BAFI) Arlington, TX 751,688 49.73 127.00 9.90 4.17 0.48 2.55 3,413 4,257 (41.87) 70.91 196 CNB Corp. (CNBW) Conway, SC 1,187,973 120.48 74.50 9.16 11.51 1.10 3.12 12,905 9,074 2.26 61.48 140 Century Next Financial (CTUY) Ruston, LA 462,247 53.17 33.00 9.88 10.85 1.08 4.23 3,429 1,987 32.78 66.52 197 Riverview Bancorp (RVSB) Vancouver, WA 1,151,225 176.57 7.81 9.15 13.27 1.41 4.32 16,068 11,362 5.19 63.24 141 U & I Financial Corp. (UNIF) Lynnwood, WA 304,885 51.35 9.21 9.85 11.01 1.61 4.30 4,507 2,423 12.29 57.02 198 IFB Holdings (IFBH) Chillicothe, MO 69,973 9.09 51.75 9.14 9.84 1.17 3.35 827 293 (1.93) 60.44 142 First Bankers Trustshares (FBTT) Quincy, IL 930,044 108.83 35.25 9.84 9.68 0.89 3.04 8,382 17,515 (8.19) 60.68 199 Sound Financial Bancorp (SFBC) Seattle, WA 716,735 87.30 34.75 9.13 9.87 0.98 4.25 7,039 4,016 18.58 71.73 143 CalWest Bancorp (CALW) Santa Margarita, CA 195,253 28.73 0.39 9.83 10.32 0.88 3.71 1,623 908 22.23 81.15 200 Codorus Valley Bancorp (CVLY) York, PA 1,807,480 215.92 22.83 9.10 11.42 1.11 3.84 19,542 13,314 10.72 64.09 144 Citizens First Corp. (CZFC) Bowling Green, KY 475,982 64.33 25.35 9.83 10.12 1.01 3.52 4,819 3,608 3.33 67.74 Median: Top 200 institutions 715,701 101.34 27.70 10.69 12.45 1.24 3.85 8,603 4,935 7.25 62.24 145 First National of Groton (FIGR) Groton, NY 182,939 33.00 550.00 9.82 11.61 1.51 4.38 2,744 819 (0.10) 54.93 Median: All 601 institutions 500,795 64.28 21.38 8.04 9.66 0.96 3.73 4,591 3,006 6.37 68.72 146 Croghan Bancshares (CHBH) Fremont, OH 847,552 115.47 50.75 9.80 10.79 1.45 4.22 12,002 6,220 (0.11) 60.02 Average: Top 200 institutions 804,747 121.72 238.96 11.19 12.72 1.29 3.95 10,102 7,269 9.31 61.89 147 Security Capital Corp. Batesville, MS 546,716 NA NA 9.80 11.66 1.32 4.38 7,422 8,036 5.48 64.42 Average: All 601 institutions 659,741 92.31 108.33 7.44 8.96 0.93 3.78 6,481 5,331 8.84 69.62 Source: Capital Performance Group analysis of data from S&P Global Market Intelligence. Ranking is of bank holding companies, banks, and thrifts that had total assets of less than $2 billion as of Dec. 31, 2018, and that are publicly traded or report financials to the SEC. Ranking is based on three-year average ROAE for 2016 to 2018. Additional data shown is for the 12 months ended Dec. 31, 2018. Financials are sourced from SEC filings. If unavailable, regulatory financials were used. Excludes institutions that failed to report GAAP or regulatory data for any year during the ranking period. Excludes institutions with a leverage ratio of less than 5%, a Tier 1 risk-based capital ratio of less than 6%, or a total risk-based capital ratio of less than 10% in any quarter. Excludes industrial banks and institutions that operated as a subchapter S corporation at any time during the ranking period. Also excludes institutions that received a tax benefit of greater than 10% of net income in 2016, 2017 or 2018. Using the preceding criteria, 102 publicly traded institutions in this size range were excluded. A total of 601 institutions qualified for the ranking. All data as of March 17, including closing prices. * Denotes institutions that were acquired or merged between Jan. 1, 2019, and March 21, 2019. 10 American Banker May 2019

010_ABM0519 10 4/9/2019 4:36:10 PM TOP 200 COMMUNITY BANKS

011_ABM0519 11 4/9/2019 4:36:11 PM The Purpose-Driven Chief Executive How a rapidly changing workforce, a more activist public and the rise of socially responsible investors have fundamentally changed the role of the bank CEO By Alan Kline

From left: Mark Turner of WSFS, Bryan Jordan of First Tennessee, Kessel Stelling of Synovus, Nandita Bakhshi of Bank of the West and Steve Bradshaw of BOK Financial.

12 American Banker May 2019 americanbanker.com

012_ABM_0519 12 4/12/19 5:58 PM The Purpose-Driven Chief Executive How a rapidly changing workforce, a more activist public and the rise of socially responsible investors have fundamentally changed the role of the bank CEO By Alan Kline

ew issues in this country are as “The company is willfully giving up money,” divisive as gun violence, so investor Justin Danhof, the general counsel of when Bank of America a group called the Free Enterprise Project, announced after last year’s said to Moynihan during a question-and-an- Parkland, Fla., school shooting swer session at BofA’s 2018 annual meeting. that it would stop lending to “That’s an odd choice for a bank.” certainF gun manufacturers, it drew both Moynihan, though, said that the impact on praise and scorn from investors. the bottom line and share price was second- Some said they were proud to be share- ary to the feelings of BofA’s staff. More than holders in a company that was willing to take 150 employees had lost a friend or relative in a stand on an issue so politically charged. mass shootings and Moynihan told share- Others were incredulous, arguing to Chair- holders that, after Parkland, many had urged From left: Mark Turner of WSFS, Bryan Jordan of First Tennessee, Kessel Stelling of Synovus, man and Chief Executive Brian Moynihan that the bank to take meaningful action to help Nandita Bakhshi of Bank of the West and Steve Bradshaw of BOK Financial. the decision was financially irresponsible. curb the violence. “This doesn’t come from

americanbanker.com May 2019 American Banker 13

013_ABM_0519 13 4/12/19 5:59 PM us,” Moynihan said, referring to the ing factor for a lot of your workforce. interacting with regulators,” Turner said. earnings calls, where investment company’s senior leaders. “This comes Workers today want to understand “Today the role is much broader in analysts are more likely to press CEOs from our teammates, saying we have to what your purpose is, what you stand terms of constituents you interact with.” on strategies for boosting net interest help.” for, how you deal with customers, how Not that Turner is complaining. As margins or lowering efficiency ratios That Moynihan responded so swiftly you problem solve and how you engage he sees it, the added pressure is making than ask about their sustainability or to the wishes of employees says a lot in the communities that you are part of. the $126 billion-asset Regions a better diversity programs. about how workplace dynamics are That’s how a lot of employees grade bank. “If we are going to do business But nearly a dozen CEOs who spoke shifting — and how the role of the bank the value of the company, and if that well, we have to do the right thing and to American Banker for this story CEO itself is changing. grade slips, people will go to work at do it the right way,” said Turner, who insisted that they have to lead CEOs have historically operated places that will give them a better had previously been a CEO at Whitney differently primarily because the under the mantra that they would do sense of belonging.” Holding Co. in New Orleans and took makeup of the workforce is changing what’s in the best interests of share- Shifting expectations of regulators the helm at Regions last year. “If we do rapidly. holders, even if the business practices and investors are also fundamentally that, we believe it creates value for all Younger workers demand work-life weren’t necessarily good for customers changing the way bank CEOs are parties, which ultimately impacts balance, they expect their bosses to and society at large. There’s even a leading. returns for our shareholders over time.” take an interest in them professionally 2003 documentary called “The Corpo- Regulators are paying far more and personally and they want to be ration” that makes a case about how attention to issues around governance, The war for talent engaged in the communities where corporate practices — tied as they are reputation and culture than they did Workers in other industries have higher they live and work. Companies are to the pursuit of profit — fit the very before the financial crisis, and they expectations of their CEOs as well, but responding by investing heavily in staff definition of psychopathic behavior. have made clear that it is on CEOs to there’s no denying that after the development and training, encourag- But CEOs are now dealing with a far ensure that companies are treating financial crisis, bank CEOs in particular ing employees to volunteer during work different type of worker than their customers fairly, meeting their commu- needed to rethink their priorities. The hours, and providing once-unheard-of predecessors ever did. Owing partly to nity development obligations and not sketchy practices of some banks — perks — think personal concierges to the influx of millennials, who now make taking shortcuts to hit profit targets. from offering mortgages to consumers handle daily tasks and breast-milk up a majority of the workforce, employ- And while there will always be with questionable credit and little delivery for new moms traveling on ees today have high expectations of investors who care primarily about next income documentation to purposely business. how their companies should behave quarter’s results, an increasing number maximizing overdraft fees by reorder- How much clout do workers have and what they should stand for. The of them also expect CEOs to take ing checks to process ones with the today? When Bank of New York Mellon prediction is that these expectations leadership roles on pressing social, highest dollar amounts first — tar- tried earlier this year to impose will ratchet up further as even younger political and economic issues. Some are nished the entire industry and contrib- restrictions on working from home, the people enter the workforce. even basing investment decisions on uted to a perception that banks were staff revolted and Chairman and CEO This shift is happening at a time of companies’ records on issues such as prioritizing profits over doing right by Charles Scharf had to quickly table the rapid change in the financial services climate change, financial inclusion or customers, employees and the idea. “We have listened and learned,” industry, when attracting and retaining gender and racial equality. communities they serve. Scharf said in an email to employees in top talent has never been more The pressure is immense — not just It’s fair to wonder, then, if CEOs will early March. important. If CEOs aren’t focused on to meet all of these responsibilities, but remain so purpose-driven the next Workers also expect CEOs to pay building workplaces that are nurturing, to display leadership in doing so. Every time the economy turns and banks’ more than just lip service to issues forward-thinking, inclusive and val- step — and misstep — happens on a profits, which hit record highs in 2018, around corporate social responsibility ues-based, then their companies will much more public stage than it did in start to shrink. and workplace diversity. BOK, for surely lose the talent war, said Steve decades past, fanned by social media In his recent book “The Enlightened example, recently established a diversi- Bradshaw, the president and CEO of and a nonstop news cycle. Capitalists: Cautionary Tales of ty-and-inclusion council to help create the $38 billion-asset BOK Financial in The upshot is that the job of the Business Pioneers Who Tried to Do more opportunities for women and Tulsa, Okla. bank CEO is far more complex than it Well by Doing Good,” James O’Toole, a minorities and, to show that he’s “If you’re the CEO of a public was just 10 years ago, said John Turner, business professor at the University of serious about the effort, Bradshaw is company, your purpose is to increase the president and CEO of Regions Southern California, concluded that chairing the council himself. shareholder value — that description Financial in Birmingham, Ala. many companies’ good intentions are Perhaps the biggest change taking hasn’t changed,” said Bradshaw, a “Back then, the role was primarily often derailed by the short-term place is in the way CEOs are interact- 28-year veteran of BOK who became about running the bank, [managing] demands of shareholders. That ing with rank-and-file employees. CEO in 2014. “But that’s not a motivat- board relationships and periodically pressure is still evident on quarterly A generation ago, CEOs primarily

14 American Banker May 2019 americanbanker.com

014_ABM_0519 14 4/12/19 5:59 PM interacting with regulators,” Turner said. earnings calls, where investment Teresa Tanner strongly “Today the role is much broader in analysts are more likely to press CEOs advocated for Greg terms of constituents you interact with.” on strategies for boosting net interest Carmichael to become Not that Turner is complaining. As margins or lowering efficiency ratios Fifth Third’s chief executive he sees it, the added pressure is making than ask about their sustainability or the $126 billion-asset Regions a better diversity programs. because he wasn’t a bank. “If we are going to do business But nearly a dozen CEOs who spoke traditional banker. well, we have to do the right thing and to American Banker for this story do it the right way,” said Turner, who insisted that they have to lead job and you created happiness on your had previously been a CEO at Whitney differently primarily because the own time.” Holding Co. in New Orleans and took makeup of the workforce is changing Given these dramatic shifts, it is the helm at Regions last year. “If we do rapidly. crucial that managers — up to and that, we believe it creates value for all Younger workers demand work-life including the CEO — take a true parties, which ultimately impacts balance, they expect their bosses to interest in their employees, Marston returns for our shareholders over time.” take an interest in them professionally said. “In a fast-paced world this can be and personally and they want to be hard to do,” Marston acknowledged. The war for talent engaged in the communities where relied on a small circle of senior “But what I tell CEOs is that they have Workers in other industries have higher they live and work. Companies are leaders and board members for two choices: You can stop, talk to expectations of their CEOs as well, but responding by investing heavily in staff counsel and may have interacted with employees, make eye contact and ask there’s no denying that after the development and training, encourag- employees “once or twice a year,” said follow-up questions, or you can struggle financial crisis, bank CEOs in particular ing employees to volunteer during work Bryan Jordan, the chairman, president with turnover.” needed to rethink their priorities. The hours, and providing once-unheard-of and CEO of the $41 billion-asset First Sydney Finkelstein, a professor of sketchy practices of some banks — perks — think personal concierges to Horizon in Memphis, Tenn. Today, business at Dartmouth College and the from offering mortgages to consumers handle daily tasks and breast-milk CEOs are far more visible within their author of many books on leadership, with questionable credit and little delivery for new moms traveling on organizations, routinely meeting with agreed, adding that banks are already income documentation to purposely business. and seeking feedback from employees, losing top college graduates to a maximizing overdraft fees by reorder- How much clout do workers have through candid town halls, brown-bag technology industry that seems to have ing checks to process ones with the today? When Bank of New York Mellon lunches or simply by dropping into “an endless capacity to hire.” highest dollar amounts first — tar- tried earlier this year to impose branches or call centers unannounced. “There’s always been a lot of nished the entire industry and contrib- restrictions on working from home, the Jordan sometimes holds office hours variation with respect to how CEOs uted to a perception that banks were staff revolted and Chairman and CEO where he takes calls on his direct line treat people and how they think about prioritizing profits over doing right by Charles Scharf had to quickly table the from employees wanting to voice employees,” said Finkelstein, who also customers, employees and the idea. “We have listened and learned,” concerns or discuss company policies. hosts a podcast on leadership. “What’s communities they serve. Scharf said in an email to employees in Cam Marston, the president of changed is that those CEOs who spend It’s fair to wonder, then, if CEOs will early March. Generational Insights, a Mobile, Ala., less time on talent and people issues remain so purpose-driven the next Workers also expect CEOs to pay research and consulting firm, said that today are going to pay a bigger price time the economy turns and banks’ more than just lip service to issues younger workers want to be heard and than they ever did before.” profits, which hit record highs in 2018, around corporate social responsibility crave affirmation in ways that older The communication works both start to shrink. and workplace diversity. BOK, for generations never did. These are ways. Kessel Stelling, chairman and In his recent book “The Enlightened example, recently established a diversi- individuals who received an abun- CEO of the $45 billion-asset Synovus Capitalists: Cautionary Tales of ty-and-inclusion council to help create dance of attention and feedback when Financial in Columbus, Ga., said that Business Pioneers Who Tried to Do more opportunities for women and they were growing up and they want while “managing by walking around” is Well by Doing Good,” James O’Toole, a minorities and, to show that he’s the same in the workplace. not necessarily new, it is “more impera- business professor at the University of serious about the effort, Bradshaw is Marston’s research has also found tive today” because it both makes Southern California, concluded that chairing the council himself. that many people, particularly those employees feel more valued and gives many companies’ good intentions are Perhaps the biggest change taking under 45, expect their workplace to him vital feedback on policies, products often derailed by the short-term place is in the way CEOs are interact- make them happy. “Historically, or competitive threats in real time. demands of shareholders. That ing with rank-and-file employees. workplaces weren’t designed this way,” “It really allows me to be a better, pressure is still evident on quarterly A generation ago, CEOs primarily he said. “You had a job, you did your more informed leader,” he said.

americanbanker.com May 2019 American Banker 15

015_ABM_0519 15 4/12/19 5:59 PM When he was CEO at WSFS there, how long they should last and to business and talent decisions. program for midlevel managers, Financial in Wilmington, Del., Mark when they should be held. It was unusual for the head of HR to another management training program Turner made it part of his routine to The bank has also introduced perks help select the next CEO, but to Tanner for newly hired or recently promoted visit branches, operations centers, such as extended leave for new parents it made perfect sense. “That’s what HR employees and a series of online wealth management offices and other and overnight breast-milk delivery for is all about,” she said. “It’s about classes and one-day boot camps. locations and develop friendly relation- new mothers traveling on business, all making sure that we have the right The investments are paying off in ships with employees. as part of a broader effort to support talent, with the right skills for the future, reduced turnover and in the number of “Whether it’s in the back office or on employees and reduce turnover, said and there’s no more important job than jobs being filled by internal candidates. the front lines, CEOs and other Rosilyn Houston, the chief talent and the CEO.” Before the initiatives were put in place, executives need to know what’s going culture executive at the $91 billion-as- roughly 14% of vacant jobs went to on in their business,” said Turner, who set BBVA Compass. The pace of change existing employees, a figure that plainly stepped down as CEO in December but This heightened focus on employees’ The rapid pace of change in banking disappointed Bradshaw. “I didn’t know remains executive chairman of the $13 well-being is raising the stature of means that CEOs also have to foster a what the right number was, but I knew billion-asset company. “If we gain an banks’ human resources departments. culture of continuous learning — while it wasn’t that,” he said. account from a competitor, why? If we Sandy Weill, the former CEO at being continuous learners themselves. Today, that figure is closer to 30%. lose one, why did the customer say they Citigroup, used to disparage HR Competition — from other banks, The $26 billion-asset Investors were leaving? You can only get that departments as nothing but cost upstart financial technology firms, and Bancorp in Short Hills, N.J., has also information from the people who are centers. BBVA Compass, by contrast, even the likes of Google, Apple and ramped up its leadership and develop- seeing it firsthand. … rebranded its HR department as the Amazon — is only going to intensify ment programs as it has scaled up. “And only when you have genuine, office of talent and culture in 2016 and it’s on the CEO to make sure their Between 2008 and 2014, the company open relationships do you get real under then-CEO Manolo Sanchez, and companies are adapting to the shifting made seven acquisitions, more than honest feedback as opposed to hearing armed it with the resources needed to landscape and preparing their employ- quadrupling its size. ees for what’s next. Investors Chairman and CEO Kevin The most tangible way banks are Cummings said that in today’s chang- “MANAGING BY WALKING AROUND” IS “MORE adapting to this heightened competi- ing banking climate, top executives IMPERATIVE TODAY,” SAYS KESSEL STELLING, tion is through consolidation. Many have to be hyperfocused on teaching OF SYNOVUS. banks are pursuing scale not only to others how to lead and be comfortable gain access to more customers, but with making important decisions. also to use savings from efficiency “People are being asked to do more what they think you want to hear.” improve everything from hiring initiatives — closing overlapping things; the job they had last year is not Banks are giving workers a voice in practices to benefits offerings. branches and merging other duplica- the job that’s expected of them today myriad other ways as well: establishing Houston said it was a significant tive functions — to invest heavily in the and might not be the same job they are employee engagement councils that change because “it moved HR from an most cutting-edge technologies. doing next year,” Cummings said. “We meet regularly with the CEO, conduct- administrative function to a strategic And as banks become larger and had people come here when it was a $10 ing frequent surveys and providing function within the organization.” more complex, CEOs are prioritizing billion bank. Do you think the manager access to digital tools that allow At Fifth Third, the HR department worker training, and retraining, along of a $10 billion bank has the same employees to give instant feedback on played a crucial role in the promotion with leadership development. A case in responsibility as a $26 billion bank?” company policies. of Greg Carmichael, who had been its point is BOK, which has made about a Ray Davis, the longtime president BBVA Compass in Birmingham, Ala., chief operating officer, to the CEO dozen acquisitions over the last 20 and CEO of Umpqua Holdings in uses a Twitter-like tool, dubbed Ignite, position in 2015. Teresa Tanner, the years but only recently added formal Portland, Ore., has said that a CEO’s to gauge employee sentiment on a bank’s current chief administrative training programs designed to retain primary job at a growing company is to range of issues. It was through this tool officer, who was head of human talent and prepare midlevel managers support other leaders. that senior leaders first learned of resources at the time, was involved in for senior roles. “I really see my job as head of associates’ frustrations with the the search process from the beginning, Under Bradshaw, BOK has put in support,” Davis, who retired in 2016, frequency and length of meetings, and and strongly advocated for Carmichael place an executive coaching program wrote in his 2007 book, “Leading for they responded by creating what’s because he was not a traditional geared specifically toward up-and- Growth: How Umpqua Bank Got Cool called a “meeting manifesto,” a banker — he joined the bank as head coming managers who senior leaders and Created a Culture of Greatness.” guidebook that sets strict limits on of information technology — and she view as having executive potential. It “Because things are moving so meetings, including who needs to be believed he would bring fresh thinking also offers an advanced leadership quickly, I can’t assume that tools and

16 American Banker May 2019 americanbanker.com

016_ABM_0519 16 4/12/19 5:59 PM to business and talent decisions. program for midlevel managers, Rosilyn Houston, chief It was unusual for the head of HR to another management training program talent and culture executive help select the next CEO, but to Tanner for newly hired or recently promoted at BBVA Compass, it made perfect sense. “That’s what HR employees and a series of online says HR went “from an is all about,” she said. “It’s about classes and one-day boot camps. making sure that we have the right The investments are paying off in administrative function to a talent, with the right skills for the future, reduced turnover and in the number of strategic function within the and there’s no more important job than jobs being filled by internal candidates. organization.” the CEO.” Before the initiatives were put in place, roughly 14% of vacant jobs went to topics their predecessors had long The pace of change existing employees, a figure that plainly avoided. The rapid pace of change in banking disappointed Bradshaw. “I didn’t know The pressure on CEOs to speak up is means that CEOs also have to foster a what the right number was, but I knew coming in part from employees but culture of continuous learning — while it wasn’t that,” he said. also from pension funds, hedge funds being continuous learners themselves. Today, that figure is closer to 30%. and other large investors. In January, Competition — from other banks, The $26 billion-asset Investors support that worked yesterday are the chairman and CEO of BlackRock upstart financial technology firms, and Bancorp in Short Hills, N.J., has also sufficient today. I’m out there all the — the world’s largest asset manager even the likes of Google, Apple and ramped up its leadership and develop- time asking, ‘What is it you need?’ It’s a — called on his peers in banking and Amazon — is only going to intensify ment programs as it has scaled up. constant. It’s the only way we can keep other industries to use their bully and it’s on the CEO to make sure their Between 2008 and 2014, the company up with our growth.” pulpits to solve problems that politi- companies are adapting to the shifting made seven acquisitions, more than CEOs themselves also have to be cians won’t. landscape and preparing their employ- quadrupling its size. continuous learners. Cummings, for “Unnerved by fundamental econom- ees for what’s next. Investors Chairman and CEO Kevin example, was one of 90 managers at ic changes and the failure of govern- The most tangible way banks are Cummings said that in today’s chang- Investors who recently took part in a ment to provide lasting solutions, adapting to this heightened competi- ing banking climate, top executives 10-week leadership course in which society is increasingly looking to tion is through consolidation. Many have to be hyperfocused on teaching they studied how companies in other companies, both public and private, to banks are pursuing scale not only to others how to lead and be comfortable industries dealt with and resolved address pressing social and economic gain access to more customers, but with making important decisions. challenges. issues,” Larry Fink wrote in an open also to use savings from efficiency “People are being asked to do more WSFS’ Turner traveled the country letter to CEOs. “The world needs your initiatives — closing overlapping things; the job they had last year is not for three months in 2016, visiting with leadership.” branches and merging other duplica- the job that’s expected of them today companies across a wide range of JPMorgan Chase’s chairman and tive functions — to invest heavily in the and might not be the same job they are industries to learn how they are CEO is taking the responsibility most cutting-edge technologies. doing next year,” Cummings said. “We innovating, preparing employees for seriously. Jamie Dimon was among the And as banks become larger and had people come here when it was a $10 change and enhancing culture. He kept most prominent business leaders to more complex, CEOs are prioritizing billion bank. Do you think the manager the entire WSFS workforce updated on criticize President Trump for pulling the worker training, and retraining, along of a $10 billion bank has the same his findings through a weekly blog. United States out of the Paris Agree- with leadership development. A case in responsibility as a $26 billion bank?” And Nandita Bakhshi, the president ment on climate change in June 2017. point is BOK, which has made about a Ray Davis, the longtime president and CEO of the $87 billion-asset Bank He also was quick to condemn the dozen acquisitions over the last 20 and CEO of Umpqua Holdings in of the West in San Francisco, actually president for failing to call out racist years but only recently added formal Portland, Ore., has said that a CEO’s mystery shops rival banks. She keeps groups for inciting violence at a rally in training programs designed to retain primary job at a growing company is to multiple accounts at other banks and, Charlottesville, Va., two months later. talent and prepare midlevel managers support other leaders. every once in a while, she’ll visit their “In the past, boards and advisors to for senior roles. “I really see my job as head of branches in jeans and a T-shirt just to boards have advised company CEOs Under Bradshaw, BOK has put in support,” Davis, who retired in 2016, check out their customer experience. to keep their head down and stay out place an executive coaching program wrote in his 2007 book, “Leading for of the line of fire,” Dimon wrote in his geared specifically toward up-and- Growth: How Umpqua Bank Got Cool Corporate social responsibility annual letter to shareholders in April. coming managers who senior leaders and Created a Culture of Greatness.” CEOs these days are more likely to “Now the opposite may be true. If view as having executive potential. It “Because things are moving so take leadership roles on sensitive social companies and CEOs do not get also offers an advanced leadership quickly, I can’t assume that tools and and political issues — the kinds of involved in public policy issues, making

americanbanker.com May 2019 American Banker 17

017_ABM_0519 17 4/12/19 5:59 PM progress on all these problems may — and that’s evident in the mixed Will it last? be more difficult.” messages many are sending on issues Of course, CEOs have in the past been As head of the nation’s largest bank, around climate change. known to “overindex on the shareholder Dimon has pledged significant resourc- The nation’s four largest banks, piece of the equation,” as Fifth Third’s es to community development — JP- JPMorgan Chase, Bank of America, Tanner put it, so it’s questionable Morgan invested roughly $150 million in Wells Fargo and Citigroup, are all whether their current lofty mindset has Detroit’s economic recovery — and to members of Ceres, a Boston nonprofit staying power. addressing income inequality. This that works with companies to help When the banking industry is less includes funding a research institute reduce their overall impact on global flush, other pressures could shift the that studies the root causes of the issue warming and build sustainability into emphasis from long-term strategy to and, more recently, committing $350 their business practices. Yet, according short-term goals. million to fund worker training and to a recent report from the Rainforest Said Finkelstein, the Dartmouth job-placement programs nationwide. Action Network, those same four banks professor: “There is always a reason to Bob Rivers, the chairman and CEO were the world’s largest financiers of be skeptical, because they have a long of the $11.3 billion-asset Eastern Bank fossil fuel exploration in 2018. track record of behaving badly.” in Boston, also fully embraces the role Wells Fargo also successfully Then again, times have changed. of social change agent, arguing that blocked a recent shareholder proposal Some bank CEOs, Dimon among them, advocacy is actually good for business. that would have required it to disclose have been arguing against companies Rivers is something of an activist on the impact climate change is having giving quarterly earnings guidance, gender and racial equality, and last on its investment portfolio. precisely because, they say, it puts such year played a leading role in helping to Still, Ceres’ president and CEO, an intense focus on short-term profits defeat a referendum that would have Mindy Lubber, said bank CEOs today that it can lead to corporate misbehav- removed certain protections for are at least engaged on the issue of ior. Boards are far more professional lesbian, gay, bisexual and transgender climate change, which is more than than they were a decade ago — heavi- residents in Massachusetts. Eastern, can be said of CEOs just a decade ago. ly populated by CEOs and ex-CEOs which has long pledged 10% of its “When we would talk to CEOs 10 or with experience running companies — profits to charitable causes, also is 15 years ago about this, they’d say, and won’t tolerate excessive risk-taking. committed to helping close the wealth ‘That’s a nice little thing … now go talk Regulators are being more vigilant gap in the state through its support for to our foundations people,’ ” Lubber about making sure that banks’ policies small, minority-owned businesses. said. “It was nowhere near being a and business practices align with their Rivers said it’s not a coincidence board level or senior management stated values. The last thing they want that Eastern has posted record profits level discussion then, but it is now.” is another Wells Fargo phony-accounts for two years running. That’s because there is growing scandal on their hands. “It’s hard to differentiate yourself in recognition that “being a corporate As Bank of the West’s Bakhshi sees a crowded, competitive climate that’s leader means stepping out and it, the way CEOs are leading today is filled with a lot of sameness,” but the standing for values, not just the bottom the new normal. bank’s advocacy has been a compel- line,” she said. “I’ve worked at banks that had good ling differentiator in the marketplace, Lubber acknowledged that while the cultures, but it was never as deliberate Rivers said. “People have told me, ‘I socially responsible investors she works and as purposeful as it is now,” can bank anywhere, but I want to with might want to end financing for she said. move my accounts to Eastern Bank deep water oil exploration, banks have Besides, she asked, “Why wouldn’t because I want to support you.’ ” other constituents to consider. “It’s not you want to create a values-based Still, Eastern has the luxury of about getting every point right — we culture? Why wouldn’t you want to do committing 10% of its net income to understand it’s a journey and it may well for the environment? Why wouldn’t charitable causes because it’s a mutual take five or six years to get there,” you want to make progress on gender thrift and isn’t under pressure to Lubber said. “But it is about making equality? Why wouldn’t you want to maximize returns to shareholders. sure a system is being put in place to bring the underserved into the fold of CEOs of publicly traded banks have to assure integrity and progress. And the banking? It is our responsibility to be be more measured in their advocacy CEO has to be involved.” leaders of all of that.” □

18 American Banker May 2019

018_ABM_0519 18 4/12/19 5:59 PM Jennifer Upshaw Group Executive, Marketing

Here’s where we recognize women leaders on the rise.

Jennifer Upshaw represents one of the many emerging strong female leaders at Synovus. Her exceptional service and accomplishments with our company and in the community are certainly worthy of recognition. We’re proud to call Jennifer part of our family and congratulate her for being named one of the inaugural American Banker’s Most Powerful Women in Banking: Next honorees. While we’re pleased with the news of this prestigious recognition, we’re not surprised.

1-888-SYNOVUS | synovus.com

Synovus Bank, Member FDIC.

019_ABM0519 19 4/10/2019 3:29:07 PM MOST POWERFUL WOMEN IN BANKING: NEXT WELCOME TO OUR INAUGURAL NEXT LIST Get ready to meet 15 women — ages 40 and under — whose accomplishments and influence set them apart. This extension of our Most Powerful Women in Banking program is meant to highlight high-achieving women in the leadership pipeline. With the industry still struggling to improve the diversity in its top ranks, this list offers some insight into what the future holds — and some inspiration.

From left: Abigail Mrozinski of Wilmington Trust, Kristen Bitterly of Citigroup and Lian Duan of Photograph by Sasha Nialla China Merchants Bank. Illustrations by Robert Carter 20 American Banker May 2019 americanbanker.com

020_ABM_0519 20 4/15/19 9:48 AM Photograph by Sasha Nialla Illustrations by Robert Carter americanbanker.com May 2019 American Banker 21

021_ABM_0519 21 4/15/19 9:48 AM Kristen Camille She forged strong internal partnerships across both Bitterly the technology and operations platforms. And she Burckhart redefined roles on the team and recruited top talent. Citigroup The results include a satisfying spike in business, partic- Popular Inc. Head of capital markets for the ularly among the most sophisticated types of clients. Chief information Bitterly also has set out to offer clients insight Americas, Citi Private Bank on less traditional topics. She recently identified a and digital officer need for clients to better understand blockchain Overhauling Citi Private Bank’s technology, and led two panels that aimed to de- Many banks have a capital markets business in the mystify the concept for family office and advisory startup accelerator. Americas required finding someone board executives. But few can boast who not only had expertise in that sector, Across the private bank more broadly, Bitterly is of being a startup but also had the ability to lead a team through working to increase diversity in the ranks. As a co-founder shelter. a difficult change while growing revenue. The natural pick of Leadership 4 Tomorrow — a program meant to nurture As part of the was Kristen Bitterly. rising talent in the company — she has helped diverse lead- continuing rebuilding At the time she was in charge of investments in the pri- effort in Puerto Rico after vate bank’s Eastern region, which was producing year-over- Hurricane Maria, Banco Pop- year growth approaching 50%. Kristen has demonstrated her ability to ular’s nonprofit foundation She accepted the newly created role as head of capital “simultaneously manage a business and has several startups working markets in the Americas in March 2018 and went to work serve clients. —Tracey Warson out of its main location in centralizing a business in which every region and product line ” San Juan, taking advantage was operating independently. ers add management responsibilities. Her television appear- of the free Wi-Fi and desk The new position had its challenges early on. “There’s ances to discuss the markets are intended in part to show space still available there. always a moment where you go from being a producer and young women roles like hers are an option. — Rob Garver “Especially after the hur- everyone’s peer and then you get promoted,” Bitterly said. ricane, it became a safe ha- “That’s one of the most difficult transitions.” Nominating executive: ven,” said Camille Burckhart, Bitterly developed a business plan that focused on TRACEY WARSON the chief information and dig- diversifying revenue and reducing reliance on top clients. Head of North America, Citi Private Bank ital officer for parent company Popular and its bank unit. “People could actually work from our premises. And they Rachel Bryant financial risk management. She are part of the community.” Regions Bank is a key player on the regulatory For Burckhart, it is part of front, overseeing compliance a mission to help the island Head of market, liquidity, capital with the Volcker Rule and get back to normal, in this and strategic financial risk management the resolution planning case by letting grassroots process. She also entrepreneurs tap into her has been working on bank’s tech know-how. Rachel Bryant specializes in risk management, and she the Birmingham, Ala., “I’ve seen how many applies that framework not only to her job duties, but also to company’s transition entrepreneurs have actually her career path. away from the use of come back to the island, and “I continually look to the future, which has led me to take the London interbank how many young people calculated risks to move my career forward,” she said. “I was offered rate as a bench- have left companies to do willing to move for the jobs I wanted.” mark. super innovative stuff,” with In addition, Bryant led lofty goals like restarting Rachel’s efforts have resulted in a yearlong effort to improve agriculture, Burckhart said. significantly strengthening and the efficiency of Regions’ process “The sense of purpose is “ for making stress-test submissions to the Federal Reserve. amazing. I’m a mentor for a improving Regions’ ability to chart a “It is a lot,” Bryant acknowledged during a recent interview. few of them. They’re taking prudent, sustainable and profitable From mid-2017 through last year, Bryant led an overhaul matters into their own hands, course. —Martha Raber of the bank’s market and liquidity risk division. The project has not waiting for the govern- ” controlled expenses while also keeping Regions’ C-suite and ment to fix everything. That It’s hard to argue with what Bryant has accomplished by its board of directors better informed about developing risks. characterizes Puerto Ricans age 32. A graduate of Georgia Tech, she was in her mid-20s “There was real opportunity there to improve our mes- and makes me feel proud to when she was hired as an examiner by the Federal Reserve saging and impact,” Bryant said. — Kevin Wack be a Puerto Rican as well.” Bank of Atlanta. She later moved to Charlotte, N.C., for a role Burckhart is involved in as a team leader for the Federal Reserve Bank of Richmond. Nominating executive: other efforts to support local In September 2015, Bryant joined Regions Bank, where MARTHA RABER entrepreneurs dedicated to she is now the head of market, liquidity, capital and strategic Managing director for financial risk the country’s welfare. There is

22 American Banker May 2019 americanbanker.com

022_ABM_0519 22 4/12/19 6:33 PM Camille Chantel Chase She forged strong internal partnerships across both Zions Bancorp. the technology and operations platforms. And she Burckhart redefined roles on the team and recruited top talent. Business banking operations division manager The results include a satisfying spike in business, partic- Popular Inc. ularly among the most sophisticated types of clients. Chief information Bitterly also has set out to offer clients insight Chantel Chase knows the have a minimal piece that on less traditional topics. She recently identified a and digital officer value of efficiency, and her they do up front,” she said. need for clients to better understand blockchain many ventures at Zions “So when it comes into us, technology, and led two panels that aimed to de- Many banks have a Bancorp. have depended my team will grab it.” mystify the concept for family office and advisory startup accelerator. on it. The loan closers on her board executives. But few can boast When the company team prepare a list of items Across the private bank more broadly, Bitterly is of being a startup launched its business needed and then work with working to increase diversity in the ranks. As a co-founder shelter. banking resurgence project everyone involved — from of Leadership 4 Tomorrow — a program meant to nurture As part of the two years ago, Chase was appraisers to title compa- rising talent in the company — she has helped diverse lead- continuing rebuilding selected to join the senior nies — to collect each item effort in Puerto Rico after Startup Popular, which offers leadership team, with within a target time frame. Hurricane Maria, Banco Pop- credit to new businesses as responsibility for the appli- Kristen has demonstrated her ability to ular’s nonprofit foundation well as mentoring. She is part cation processing and loan “simultaneously manage a business and has several startups working of Parallel18, a countrywide closing functions. serve clients. —Tracey Warson out of its main location in startup incubator, and she The goal was to ” San Juan, taking advantage mentors fledgling firms in the improve the customer ers add management responsibilities. Her television appear- of the free Wi-Fi and desk local chapter of the Endeavor experience across the ances to discuss the markets are intended in part to show space still available there. network. enterprise — not just young women roles like hers are an option. — Rob Garver “Especially after the hur- Tech has a crucial role in incrementally, but ricane, it became a safe ha- helping Puerto Rico recover, to “best in class,” Nominating executive: ven,” said Camille Burckhart, she said, and that aid ex- Chase said. TRACEY WARSON the chief information and dig- tends even to the unbanked. The project Head of North America, Citi Private Bank ital officer for parent compa- A program launched last involved combin- ny Popular and its bank unit. year allows a bank customer ing three satellite “People could actually work to delegate withdrawals from processing centers from our premises. And they an ATM to someone else who into one location at financial risk management. She are part of the community.” doesn’t have a bank account. Zions’ Business Banking is a key player on the regulatory For Burckhart, it is part of Some island residents don’t Loan Center, streamlin- front, overseeing compliance a mission to help the island hold enough money to justify with the Volcker Rule and get back to normal, in this a bank account, Burckhart Chantel is an the resolution planning case by letting grassroots explained. Chase also played a process. She also entrepreneurs tap into her She has championed innovator and a role in the 2017 launch of a has been working on bank’s tech know-how. ideas like the one for the collaborator. product Zions calls Business the Birmingham, Ala., “I’ve seen how many ATM withdrawals as part of Her energy and Access, which has reduced company’s transition entrepreneurs have actually the crisis recovery. can-do attitude, processing time on Small away from the use of come back to the island, and “Going through an emer- along with Business Administration the London interbank how many young people gency like that, it gives you big-picture loans from several weeks to offered rate as a bench- have left companies to do a sense of purpose that not as little as four hours and mark. super innovative stuff,” with many bank tech people get,” thinking, make led to a dramatic increase In addition, Bryant led lofty goals like restarting she said. — Suleman Din her a force to be in the number of applica- a yearlong effort to improve agriculture, Burckhart said. reckoned with.” tions. “It’s had a positive the efficiency of Regions’ process “The sense of purpose is Nominating executive: —Lori Chillingworth impact on the client, on the for making stress-test submissions to the Federal Reserve. amazing. I’m a mentor for a TERUCA RULLAN ALVAREZ banker experience, and re- “It is a lot,” Bryant acknowledged during a recent interview. few of them. They’re taking Chief communications officer ing the loan process, and ally changed the way that From mid-2017 through last year, Bryant led an overhaul matters into their own hands, eliminating confusing and business banking is done at of the bank’s market and liquidity risk division. The project has not waiting for the govern- What she said: often differing application our company,” Chase said. controlled expenses while also keeping Regions’ C-suite and ment to fix everything. That “Her fortitude and tremen- instructions. “It’s definitely created a its board of directors better informed about developing risks. characterizes Puerto Ricans dous commitment enabled “We created a simpli- better experience.” “There was real opportunity there to improve our mes- and makes me feel proud to us to help our customers and fied way for a relationship — Hannah Lang saging and impact,” Bryant said. — Kevin Wack be a Puerto Rican as well.” communities during our re- manager in the field to Burckhart is involved in covery time and continues to submit a loan to our center, Nominating executive: Nominating executive: other efforts to support local propel our innovation further so instead of them having LORI CHILLINGWORTH MARTHA RABER entrepreneurs dedicated to devising new ways to solve to know all the ins and outs Director of business Managing director for financial risk the country’s welfare. There is real-life problems.” of our system, they just banking

americanbanker.com May 2019 American Banker 23

023_ABM_0519 23 4/12/19 6:33 PM Lian April Frazer Emily Girsch Duan Wells Fargo Lincoln Savings Bank China Merchants Head of banks for the corporate and investment Chief financial officer Bank Co., New York banking unit Branch Innovation is part of Emily Girsch’s daily routine. Deputy head April Frazer describes herself, who was still in her early 20s That’s why the chief financial officer at Lincoln Savings forthrightly, as a very driven when she joined Wachovia’s Bank in Cedar Falls, Iowa, spends a lot of time thinking about of legal and person. Which may explain investment banking group. the need to modernize bank regulations for the digital age. compliance how she became global head Early in her career, Frazer “Most bankers want to follow the rules, but sometimes the of banks at Wells Fargo before spent several years working rules need to change with the times,” said Girsch. Lian Duan is easy her 37th birthday. in Wachovia’s debt capital One of her responsibilities at Lincoln Savings is locking to spot among her The job title was a new one markets unit, where her work in new fintech partner- peers. when Frazer was appointed in provided a front-row seat to ships. The $1.3 billion-asset “If you gathered October 2017. She was asked bank has added 1.5 million the U.S.-based senior counsels of the major Chinese to lead a team of more than customers in five years banks operating in the United States, the group would 50 people inside the financial through the partnerships contain mostly veterans who served at high levels in institutions group, which works it has with fintechs like government supervisory agencies such as the Federal with banking clients worldwide. Square, Acorns, MoneyLion and Qapital. Reserve,” said Joseph Loffredo, assistant general man- Shortly after being named Lincoln Savings gets a deposit boost from these partner- ager and chief financial officer at the New York branch to the position, Frazer ships by being the bank of record for accounts opened on of China Merchants Bank Co. “But among this distin- created a consult- their mobile apps. guished group, you’d find one outlier, a lady about half ing team that offers Last year Girsch also oversaw a capital-raising effort — the age of most of the others.” insight not only to clients which was necessary because of fast loan growth. Loans Even so, Duan notes that her unique background but also within the San increased more than 18% in 2017 and nearly 12% last year, to has prepared her well for the role. Francisco bank itself. As $987 million at Dec. 31, Girsch said. She joined the bank in 2012, after four years interest rates rose in 2018, working as a legal counsel for a Chinese insurance the team provided guidance company. Fluent in English and Mandarin, Duan is able on the deposit funding strate- to serve as a key facilitator between the bank’s $10 billion-asset New York branch and the headquarters in April is thoughtful, Shenzhen, China. In this capacity, she’s helped guide the parent strategic, prepared, company, China Merchants Group, through several and knows how the financial crisis. important initiatives in recent years. to focus on the Amid the subsequent wave This includes getting Federal Reserve approval activities that of new regulations, Frazer to become a bank holding company and obtaining will make an remade herself as an expert in Uma Wilson authorization from the New York State Department of how the revamped rules would Financial Services to offer investment advisory services impact to drive impact markets. “The team Congratulations to Uma to high-net-worth clients. the business that I was working on,” she and all the NEXT! Top “I did a lot of work in transferring information from forward. recalled, “went through all of ” Women in Banking honorees. the branch to the head office to get them more accus- —Lisa McGeough the details of everything that tomed to what we are experiencing in the U.S.,” said came out from the regulators.” Your innovation, strength Duan, who was the first in-house counsel hired at the gies banks should adopt. That fine-grained work was and courage motivate us branch and now has three others on her staff. “They’re very much instru- used not only inside of Wells to achieve and deliver “That’s the key for a company operating in several mental in trying to help our Fargo, which acquired Wacho- more for our customers, jurisdictions.” —Victoria Finkle clients think through these key via in 2008, but also offered to dynamics that are impacting banks globally that were trying associates and communities. Nominating executive: our industry right now,” Frazer to get a handle on issues like UMB.com JOSEPH LOFFREDO said during a recent interview. stress testing and resolution Assistant general manager and chief financial officer In keeping with this broad- planning. “I’ve had a dynamic er approach to the work, her career,” Frazer said, adding What he said: role was expanded in March that her goal is to continue to “Ms. Duan has gained the respect and confidence of — beyond just the financial grow. — Kevin Wack her colleagues and counterparts in the foreign banking institutions group, to the larger . community with her strong reasoning power, capacity corporate and investment Nominating executive: and willingness to work, enthusiasm to learn about new banking unit. LISA MCGEOUGH Inspire. Motivate. Innovate. products and issues, ability to manage a professional This type of work was a Co-head of the corporate staff, and unfailingly pleasant demeanor.” logical next step for Frazer, and investment banking unit Member FDIC

24 American Banker May 2019 americanbanker.com

024_ABM_0519 24 4/12/19 6:33 PM April Frazer Emily Girsch The bank initially closed its Wells Fargo Lincoln Savings Bank private common stock offering Head of banks for the corporate and investment Chief financial officer with $15 million. But when Girsch learned banking unit of interest from two institu- Innovation is part of Emily Girsch’s daily routine. tional investors in California, she who was still in her early 20s That’s why the chief financial officer at Lincoln Savings flew out to meet with them in when she joined Wachovia’s Bank in Cedar Falls, Iowa, spends a lot of time thinking about person. investment banking group. the need to modernize bank regulations for the digital age. She ended up raising $30 Early in her career, Frazer “Most bankers want to follow the rules, but sometimes the million — a feat President and spent several years working rules need to change with the times,” said Girsch. Chief Executive Erik Skovgard said in Wachovia’s debt capital One of her responsibilities at Lincoln Savings is locking will enable Lincoln Savings “to continue markets unit, where her work in new fintech partner- to prosper and provided a front-row seat to ships. The $1.3 billion-asset grow well into the future.” bank has added 1.5 million Emily has a strong presence, in the A total of 90 investors customers in five years “boardroom, mentoring others and participated, including the two through the partnerships serving in the community. —Erik Skovgard institutional investors, Castle it has with fintechs like ” Creek Capital and EJF Capital. Square, Acorns, MoneyLion and Qapital. After joining Lincoln Savings in 2002 from an accounting Lincoln Savings gets a deposit boost from these partner- firm, Girsch, 40, moved up the ranks to the C-suite in just four ships by being the bank of record for accounts opened on years. She has been the CFO since her mid-20s. their mobile apps. — Hilary Burns Last year Girsch also oversaw a capital-raising effort — which was necessary because of fast loan growth. Loans Nominating executive: increased more than 18% in 2017 and nearly 12% last year, to ERIK SKOVGARD $987 million at Dec. 31, Girsch said. President and chief executive

the financial crisis. Amid the subsequent wave of new regulations, Frazer remade herself as an expert in Uma Wilson how the revamped rules would impact markets. “The team Congratulations to Uma that I was working on,” she and all the NEXT! Top recalled, “went through all of Women in Banking honorees. the details of everything that came out from the regulators.” Your innovation, strength That fine-grained work was and courage motivate us used not only inside of Wells to achieve and deliver Fargo, which acquired Wacho- via in 2008, but also offered to more for our customers, banks globally that were trying associates and communities. to get a handle on issues like UMB.com stress testing and resolution planning. “I’ve had a dynamic career,” Frazer said, adding that her goal is to continue to grow. — Kevin Wack . Nominating executive: LISA MCGEOUGH Inspire. Motivate. Innovate. Co-head of the corporate and investment banking unit Member FDIC

americanbanker.com May 2019 American Banker 25

025_ABM_0519 25 4/12/19 6:33 PM Jacqueline Carrie participated in a weeklong challenge, where they de- Howard vised and pitched business plans to a panel of judges. Lichter Winning teams received prizes and a chance to intern Ally Financial at Ally, with the latter meant to expose diverse young Fifth Third Bancorp Senior director, corporate citizenship people to banking careers. Ally’s shift away from “checkbook philanthropy” to Chief operational a more thoughtful approach entailed getting other For Jacqueline Howard, Ally Finan- areas of the company involved, from investor rela- risk officer cial’s focus on the issue of eco- tions to marketing. “We are looking at it less of just nomic mobility is personal. being philanthropic with giving grants and volun- Whenever a bank Her interest in helping close the teering, because it is so much bigger than that,” introduces new tech- wealth gap — a 2016 Federal Reserve she said. “Investors and customers are demanding it.” nology as a conve- study showed the median net worth for black In addition to her professional accomplishments, nience for customers, families is about 10% that of white families — prompted her Howard, 38, serves as an inspiration on a personal level. She it must deal with an to steer Ally toward a more concerted effort on this front. is open about her own life challenges, including losing her inevitable reality: “We have a responsibility in banking to drive money mother at age 12 and being diagnosed with breast cancer at enterprising thieves. mindfulness and help people understand their finances,” she age 30. “Having survived that, it took away a lot of my fear,” Take cardless ATMs as said. Howard said. “I am willing to go after what I want, success an example. As senior director of corporate citizenship, Howard, who or failure.” — Jackie Stewart This feature allows a is African-American, has created a strategy for the Detroit customer to withdraw cash company around helping underserved consumers build Nominating executive: from an ATM using just wealth, through financial literacy efforts, charitable giving ALISON SUMMERVILLE their smartphone. But some and volunteerism. And she has tied these efforts together in Business administration executive a more holistic corporate social responsibility program. She has substan- Ally’s partnership with the Thurgood Marshall College What she said: Fund and entertainer Sean “Big Sean” Anderson is one “Jacqueline is an enterprise thinker who coordinates tially enhanced recent highlight. Through the Moguls in the Making compe- cross-functional working groups. She seamlessly works across our operational risk tition in March, 50 students from historically black colleges the company with employees at all levels.” programs, focusing on driving front line accountability and strengthening David DePillo, the bank’s presi- Lindsay Lawrence dent, described the initiatives second line First Foundation Bank Lawrence undertook as oversight and “extremely impactful” challenge.” Chief operating officer for the bottom line. —Frank Forrest “But, perhaps the more Give Lindsay Lawrence a big job to do and she just might find impactful component was criminals have figured out a way to make it even bigger. her ability to lead these how to use phished account Over the past few years, First Foundation Bank in Irvine, teams through such tre- credentials to add a new Calif., has acquired two banks, one of which had two core mendous change, especially phone number and then systems. So Lawrence ended up overseeing three core con- over the course of a year, siphon off cash. versions last year. and still have her teams This is just one of the But, recognizing an opportunity to go beyond the task of smiling and motivated,” he problems Fifth Third Ban- unifying platforms, she also created an enterprise delivery said. corp deals with in its new Lawrence is pleased with high-tech war room, which She picks up processes and information the results too. “I really feel like it calls the cyber fusion we’ve been able to make a change and do something center. swiftly and is not afraid to confront “ unique, and I’ve kind of been able to put my fingerprint on it, As chief operational people who may have a much more which is pretty cool,” she said. risk officer, Carrie Lichter seasoned tenure. —David DePillo Lawrence is just as proud of her family life, and wants played a key role in bring- ” other women in the industry to know that balancing respon- ing the center to life. services team to work with the core delivery team. They were sibilities as a mother and as a business executive is possible. It began when Lichter tasked with helping the $5.5 billion-asset bank enhance its She has two children, Addison, 7, and Grayson, 5. and her team started up- own system, in part so it can better leverage data. — Hannah Lang dating the Cincinnati bank’s “We’re building out a data warehouse so that all of the overall risk management information from all of these various systems can be housed Nominating executive: practices. Cyber risk was together, so we can really get a true picture of who our DAVID DEPILLO top of mind, and in thinking clients are,” she said. President about how the bank could

26 American Banker May 2019 americanbanker.com

026_ABM_0519 26 4/12/19 6:34 PM Carrie Erika Marquez participated in a weeklong challenge, where they de- Sumitomo Mitsui Banking Corp. vised and pitched business plans to a panel of judges. Lichter Winning teams received prizes and a chance to intern Vice president in the global trade finance department at Ally, with the latter meant to expose diverse young Fifth Third people to banking careers. Bancorp Ally’s shift away from “checkbook philanthropy” to Chief operational While working in the global teams and across levels,” a more thoughtful approach entailed getting other trade finance department as evidenced by her areas of the company involved, from investor rela- risk officer at Sumitomo Mitsui Bank- success with the pricing tions to marketing. “We are looking at it less of just ing Corp., Erika Marquez initiative, said Hiromitsu being philanthropic with giving grants and volun- Whenever a bank found herself continually Yoshizawa, the head of teering, because it is so much bigger than that,” introduces new tech- puzzled by how the bank global trade finance for the she said. “Investors and customers are demanding it.” nology as a conve- was pricing particular Americas. In addition to her professional accomplishments, nience for customers, transactions. Senior management Howard, 38, serves as an inspiration on a personal level. She it must deal with an Bringing a background expects the new pricing is open about her own life challenges, including losing her inevitable reality: as a credit officer to her mother at age 12 and being diagnosed with breast cancer at enterprising thieves. better manage this risk, she new role as a specialist age 30. “Having survived that, it took away a lot of my fear,” Take cardless ATMs as knew that collaboration in export credit agency Howard said. “I am willing to go after what I want, success an example. across different teams was products, she felt sure that or failure.” — Jackie Stewart This feature allows a essential. But how to make the bank’s internal pricing customer to withdraw cash that happen in a seamless model was overestimating Nominating executive: from an ATM using just way? the risk of loans backed by ALISON SUMMERVILLE their smartphone. But some “The cyber fusion center government guarantees. Business administration executive is a place for those teams Marquez took the She has substan- to come together and initiative to dig into What she said: understand if it’s happening the pricing model “Jacqueline is an enterprise thinker who coordinates tially enhanced in one channel or multiple and discovered cross-functional working groups. She seamlessly works across our operational risk channels, collaborate on an anomaly that the company with employees at all levels.” programs, focusing stopping that, and also was causing the on driving front ensure that it’s mitigated bank to treat the loans line accountability across multiple channels,” as though they required and strengthening she said. “That collabora- significantly more reg- David DePillo, the bank’s presi- tion is key.” ulatory capital than they dent, described the initiatives second line In the case of cardless actually did. Lawrence undertook as oversight and ATM fraud, the information With the support of her “extremely impactful” challenge.” security team identifies the manager, Marquez shared model not only to make for the bottom line. —Frank Forrest phishing activity happening what she discovered with the bank more competitive “But, perhaps the more online, while the fraud team various bank departments in the market for export impactful component was criminals have figured out roots out illicit transactions that had a stake in the credit agency financing, her ability to lead these how to use phished account on a customer’s account. issue. She went on to devel- but also to have an even teams through such tre- credentials to add a new They then communicate op a proposal to formally broader impact. The model mendous change, especially phone number and then with the bank protection review the pricing model will apply to other products over the course of a year, siphon off cash. team, which works with law and its impact on the the bank offers, outside of and still have her teams This is just one of the enforcement to coordinate bank’s performance, and to the global trade finance smiling and motivated,” he problems Fifth Third Ban- an arrest. formulate a solution. department, with the ex- said. corp deals with in its new The cyber fusion center Marquez was given a pectation of more business Lawrence is pleased with high-tech war room, which facilitates a speedier leadership role in the effort, opportunities and increased the results too. “I really feel like it calls the cyber fusion response by allowing all of and formed a team of profitability. we’ve been able to make a change and do something center. those teams to do their part stakeholders from across — Rob Garver unique, and I’ve kind of been able to put my fingerprint on it, As chief operational in the same room. It’s also the bank that worked which is pretty cool,” she said. risk officer, Carrie Lichter a place where Fifth Third’s over a 12-month period to Nominating executive: Lawrence is just as proud of her family life, and wants played a key role in bring- tech teams can monitor find a new approach. The HIROMITSU YOSHIZAWA other women in the industry to know that balancing respon- ing the center to life. worldwide cyber threats in result was a revised pricing Head of global trade sibilities as a mother and as a business executive is possible. It began when Lichter real time and participate in model that allows the bank finance for the Americas She has two children, Addison, 7, and Grayson, 5. and her team started up- training scenarios to stay to offer better terms on — Hannah Lang dating the Cincinnati bank’s sharp. — Laura Alix government-guaranteed What he said: overall risk management . loans without significantly “Erika has the rare ability to Nominating executive: practices. Cyber risk was Nominating executive: increasing risk. excel at both business DAVID DEPILLO top of mind, and in thinking FRANK FORREST “Erika is particularly development and President about how the bank could Chief risk officer adept at working across implementation.”

americanbanker.com May 2019 American Banker 27

027_ABM_0519 27 4/12/19 6:34 PM Abigail Jennifer Upshaw Uma Wilson Mrozinski Synovus UMB Bank Wilmington Trust Senior director, marketing Director of product management Segment chief Synovus converted all 26 consensus — on both the financial officer of its separately brand- benefits of the transition UMB Bank’s commercial cards division ed community banks to and the execution timeline was losing clients in 2016, when Uma When M&T Bank was its own name over the — was to take the time to Wilson set out to turn things around. acquiring Wilming- past two years — a major connect with our market Wilson recognized that the bank’s ton Trust in 2011, it undertaking that allowed leaders and team mem- card products had fallen behind the tapped into Abigail Jennifer Upshaw to shine. times in terms of user experience. Mrozinski’s deep Upshaw, who was understanding of its director of retail banking newly added wealth when the planning start- Uma is a true leader. Her team approach is one of the many reasons business to help the merger go smoothly. ed in 2016, had become “ Though barely into her 30s at the time, Mrozinski senior director of the bank product department is so spearheaded the integration of the wealth and institutional marketing by the successful. —Jim Rine services division into M&T’s larger banking operations. time the transition ” Her role as the director of corporate analysis kept her in wrapped up last After earning buy-in from top management — “Uma’s pitch regular contact with M&T’s top executives as they navigat- year, a reflection was one of the most memorable I’ve experienced,” said UMB ed the risk assessment phase of the merger, with Mrozinski of her leadership President and Chief Executive Jim Rine — she launched a pro- giving strategic recommendations and participating in on what Synovus gram to overhaul the card offerings. She introduced new options long-term planning. describes as one of such as virtual cards and Automated Clearing House processing In the years that followed, the groundwork that the most important Mrozinski helped lay proved crucial to the success of the initiatives in its combined institution. 130-year history. The $350 million acquisition allowed M&T to supple- “The process involved ment its already strong commercial and retail banking literally thousands of issues to address, problems to bers,” she said. Rana Yared solve, and tasks to be Ever since she joined While extremely detail-oriented, carefully timed and coordi- Synovus fresh out of college Goldman Sachs Abby never loses sight of the bigger nated,” said Liz Wolverton, in 2003, Upshaw has been Partner and managing director, principal strategic “ chief strategy and custom- asked frequently to play strategic picture, which is critical investments team when working on complicated er experience officer. But, roles on large corporate despite those challenges, initiatives. She often has transactions. —Bill Farrell ” “the process was as close to been the most junior person The investments that Rana Yared’s team makes in startups flawless as any the compa- in the room participating help Goldman Sachs in two ways: Besides earning a profit, the products with a full suite of wealth and institutional client ny has ever implemented.” in otherwise highly senior company also uses a lot of the technology the startups develop services. Upshaw attributes the efforts, Wolverton said. as part of its internal digital transformation. Mrozinski went on to play a key role in Wilmington success to her ability to de- But as much as Upshaw One example of this dual benefit is Kensho, a developer of Trust’s management of the General Motors liquidation trust, velop relationships across has contributed already, artificial intelligence for financial analysis. Goldman was an one of the largest transactions in its history. all parts of the Columbus, Wolverton said she believes early investor in the company, which was recently bought by She helped negotiate with the Treasury Department Ga., company. the best is yet to come. and the Securities and Exchange Commission to get per- One of her major tasks — Tori Finkle mission for Wilmington Trust to establish publicly traded was managing the impact Rana is, and has always been, on an units of the liquidating trust — the first time that authority of the changes on employ- Nominating executive: accelerated track at Goldman Sachs, had ever been approved for such an entity. ees and customers alike. LIZ WOLVERTON “driven by her tireless work ethic, Her performance during the GM deal led to her being “Several of our local Chief strategy and customer deep functional skills, and a strong recruited to become chief financial officer of the wealth banks were more than 100 experience officer commercial intuition. and institutional services division, which she has helped years old and all had deep- ” grow into the third-largest business within M&T. ly rooted, emotional ties What she said: —Stephanie Cohen The division has had a compound annual growth rate of with communities, custom- “ While Jennifer would be the 20% for the years since 2012, with revenue now approach- ers and team members,” first to credit the full team S&P Global for more than $550 million. Goldman uses Kensho’s ing $900 million a year. — Rob Garver she said, leading to “dis- for the brand conversion technology in its equities division. . tinctive” but “not necessar- success, great teams are Another example is the electronic trading venue Tradeweb, Nominating executive: ily coordinated” operating only as effective as the which declared its intention to go public. BILL FARRELL procedures. leaders they’re willing to “I wouldn’t mention it if I didn’t think that we do well off of it,” Executive vice president for institutional client services “The only way to get follow.” Yared said of the pending IPO.

28 American Banker May 2019 americanbanker.com

028_ABM_0519 28 4/12/19 6:34 PM Jennifer Upshaw Uma Wilson and made other changes that put a premi- Synovus UMB Bank um on simplicity and efficiency. Senior director, marketing Director of product The system she put in place is scalable, making it attractive to both large customers management and smaller ones looking to grow their business. consensus — on both the Even without the benefit of a large bank’s benefits of the transition UMB Bank’s commercial cards division research and development operation, Wilson was and the execution timeline was losing clients in 2016, when Uma able to look beyond the “off-the-shelf” solutions that — was to take the time to Wilson set out to turn things around. other banks UMB’s size often rely on. connect with our market Wilson recognized that the bank’s The result is that UMB is now able to tailor leaders and team mem- card products had fallen behind the its offerings to individual clients, some of which times in terms of user experience. were unable to find the kind of options they wanted at competing banks. UMB recently onboarded an insurance firm, Uma is a true leader. Her team which signed up for just this reason. The bank also approach is one of the many reasons “ recently launched a cobranding deal with the Texas Rangers. the bank product department is so Over the past two years, Wilson’s strategy took a program successful. —Jim Rine that had been losing customers on a year-over-year basis and ” transformed it into the fastest-growing issuer of Visa cards in After earning buy-in from top management — “Uma’s pitch the region. — Rob Garver was one of the most memorable I’ve experienced,” said UMB President and Chief Executive Jim Rine — she launched a pro- Nominating executive: gram to overhaul the card offerings. She introduced new options JIM RINE such as virtual cards and Automated Clearing House processing President and chief executive

bers,” she said. Rana Yared Two U.K. investments Ever since she joined — Nutmeg, a robo-adviser, Synovus fresh out of college Goldman Sachs and Bud, a combination of a in 2003, Upshaw has been personal financial man- Partner and managing director, principal strategic asked frequently to play ager and open banking roles on large corporate investments team marketplace — will be initiatives. She often has important to Goldman been the most junior person The investments that Rana Yared’s team makes in startups as it builds its consumer in the room participating help Goldman Sachs in two ways: Besides earning a profit, the bank in that country, in otherwise highly senior company also uses a lot of the technology the startups develop Yared said. efforts, Wolverton said. as part of its internal digital transformation. Others include NYSHEX But as much as Upshaw One example of this dual benefit is Kensho, a developer of (it’s digitizing the con- has contributed already, artificial intelligence for financial analysis. Goldman was an tainerized freight industry Wolverton said she believes early investor in the company, which was recently bought by to provide certainty and the best is yet to come. collateral to shippers and — Tori Finkle carriers), Veem (payments Rana is, and has always been, on an tech) and NAV (credit education Nominating executive: accelerated track at Goldman Sachs, for small businesses). LIZ WOLVERTON “driven by her tireless work ethic, “Fintech investing is core to our business,” Chief strategy and customer deep functional skills, and a strong Yared said, adding that Goldman has been experience officer commercial intuition. involved in it for 20 years. ” And even though she works for a very large bank, Yared said What she said: —Stephanie Cohen she always thinks of the little guy. “It’s easy to forget that the “ While Jennifer would be the whole industry is to the benefit of individuals — pensioners, main first to credit the full team S&P Global for more than $550 million. Goldman uses Kensho’s street people,” she said. “We’re very passionate about keeping for the brand conversion technology in its equities division. that in mind as we invest.” — Penny Crosman success, great teams are Another example is the electronic trading venue Tradeweb, only as effective as the which declared its intention to go public. Nominating executive: leaders they’re willing to “I wouldn’t mention it if I didn’t think that we do well off of it,” STEPHANIE COHEN follow.” Yared said of the pending IPO. Chief strategy officer

americanbanker.com May 2019 American Banker 29

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TROELS BJERG “It has moved from being on the janitor’s agenda to the CEO’s agenda.” Chief operating officer at ISS, a facility services provider to Europe’s biggest banks, saying competition for millennial talent is putting heavy emphasis on workplace ambiance AJAY BANGA REP. RASHIDA “Boy, good times TLAIB are coming.” “What does a credit score TIM SLOAN Mastercard CEO, on say about the person’s “I could not keep myself what criminals are saying driving history or their in a position where I about the prospect of potential for accidents?” an ever-more-connected First-term Democrat on the was becoming a future distraction.” House Financial Services Committee, proposing a ban Embattled Wells Fargo CEO, on using credit scores to set announcing his resignation auto insurance rates

ELIZABETH DAVE MCKAY “They are getting between WARREN us and the moments of “About damn time.” truth of our customers.” U.S. senator, D-Mass., tweeting Royal Bank of Canada CEO, about Sloan’s resignation fretting about tech giants as a competitive threat particularly as more people turn to them when STEVE EISMAN shopping for financial services “This is not ‘The Big Short: Canada’ — I’m not calling for a housing collapse.” KELLY KING “We face a fundamen- Neuberger Berman portfolio BLOOMBERG NEWS manager made famous by “The tal choice — disrupt our Big Short,” on his view of how business or be disrupted.” a tottering Canadian housing Chairman and CEO of BB&T, market will impact banks there attributing its proposed merger with SunTrust to the urgent GREG need for digital transformation JOACIM OLSSON MANKIW TED “He does not have the “I unfortunately get the feeling that the intellectual gravitas for this bank’s management is trying to hide dark ROSSMAN important job.” facts rather than doing what is in its power “Frankly, I’m to bring clarity and calm to the market.” Chair of White House Council of underwhelmed.” Economic Advisers under George Swedish Shareholders’ Association CEO, after the Analyst at CreditCards.com, W. Bush, urging the Senate to embattled Swedbank released a heavily redacted saying Apple’s new rewards block Stephen Moore’s appoint- report on its alleged money laundering credit card is no better than ment to the Federal Reserve what already exists

32 American Banker May 2019

032_ABM0519 32 4/9/2019 3:45:56 PM Fifth Third would like to congratulate all of this year's honorees for American Banker's Most Powerful Women in Banking NEXT list, including our own, Carrie Lichter.

Thank you, Carrie, for making Fifth Third Bank and the communities we serve a Fifth Third better.®

Carrie Lichter Chief Operational Risk Ocer

Member FDIC.

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