WINTER 2010 New Jersey BANKER

Navigating Economic Uncertainty The View Back, the Way Ahead

Inside: Trends in Banking Gen Y The Case Against Social Media

BankHorizons 2009 / Banks and Credit Ratings / Board Portals

Endorsed by the New Jersey Bankers Association

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

NJBankers Board of Directors

Steven E. Brady Joseph F. Dempsey, Jr. Anthony Labozzetta William D. Moss Kevin Tylus President/Chief Executive Officer President Executive Vice President President/Chief Executive Officer Regional President Ocean City Home Bank New Jersey Middle Market Banking Mid-Atlantic Retail Division Two River Community Bank PNC Bank, N.A. JPMorgan Chase Bank, N.A. TD Bank, N.A. Peter M. Brown Robert Ranzinger, Sr. Chris Van Der Stad President/Chief Executive Officer Peter A. Dontas Margaret Lanning President/Chief Executive Officer President/Chief Executive Officer Manasquan Savings Bank Market Executive Senior Vice President/ Wawel Savings Bank New Millennium Bank Bank of America Senior Regional Credit Officer Walter Celuch Northeast Region Eugene W. Rogers Norman E. Beatty President/Chief Executive Officer Elizabeth E. Hance Wachovia Bank, N.A. Chief Executive Officer Immediate Former Co-Chairman Clifton Savings Bank President/Chief Executive Officer Newfield National Bank Chairman/President/ Magyar Bank Kevin M. Lenihan Chief Executive Officer Joseph Coccaro President/Chief Executive Officer D. Russell Taylor First Hope Bank President/Chief Executive Officer David J. Hemple Indus American Bank President/Chief Executive Officer Bogota Savings Bank President/Chief Executive Officer RSI Bank John H. Wessling, III Century Savings Bank Donald Mindiak Immediate Former Co-Chairman Robert E. Davis, Jr. President/Chief Executive Officer Frank J. Travea, III President/Chief Executive Officer President/Chief Executive Officer Stanley J. Koreyva, Jr. BCB Community Bank President/Chief Executive Officer Haven Savings Bank Rumson-Fair Haven Bank Executive Vice President/ Roebling Bank and Trust Company Chief Operating Officer Amboy Bank

The Warren Group Staff NJBankers Officers NJBankers Staff

John E. McWeeney, Jr. James R. Silkensen Timothy M. Warren Timothy M. Warren Jr. Robert C. Ahrens Co-President and Co-CEO Co-President and Co-CEO Chairman CEO & Publisher Chairman ext. 627 ext. 617 President/Chief Executive Officer [email protected] [email protected] David B. Lovins Vincent Michael Valvo GCF Bank President Group Publisher James M. Meredith Emily T. DeMasi & Editor in Chief Executive Vice President and Director of Communications Chief Operating Officer ext. 610 Jeffrey E. Lewis Gerald H. Lipkin ext. 614 [email protected] Controller George Chateauneuf First Vice Chairman Dir. of Operations Custom Publications & [email protected] Chairman/President/Chief Executive Officer Claire Anello Advertising Director Valley National Bank Michael P. Affuso, Esq. Database and Web site Manager Christina P. O’Neill Vice President and Director of ext. 631 Custom Publications Editor Helene Sansoucy Government Relations [email protected] Account Manager Frank A. Kissel ext. 628 Sarah Cunningham Paula Cassidy Second Vice Chairman [email protected] Account Manager Emily Torres Assistant to the Director of Chairman/Chief Executive Officer Advertising, Marketing & David W. Harkness Communications John Bottini Events Coordinator Peapack-Gladstone Bank Vice President and Director of ext. 604 Creative Director Business Development [email protected] Scott Ellison Manager, NJBA Service Cassidy Norton Senior Graphic Designer Kevin Cummings Corporation Jean Reiser Associate Editor Third Vice Chairman ext. 630 Assistant to the Co-Presidents Joyce Lin President/Chief Executive Officer [email protected] ext. 618 [email protected] Design Intern Investors Savings Bank Wendy C. Mandelbaum Controller/Office Manager Cynthia M. Zaccaro ext. 603 Administrative Assistant Robert H. King [email protected] ext. 632 Fourth Vice Chairman [email protected] www.thewarrengroup.com President Jenn Zorn Sterling Bank Vice President and Director of Brenda Malfatto 280 Summer Street • Boston, MA 02210 Education Receptionist 617-428-5100 ext. 611 ext. 600 [email protected] [email protected] John E. McWeeney, Jr. Published continually as a quarterly publication by the Co-President and Co-Chief Executive Officer Candida Johnson Counsel New Jersey Bankers Association from 1929 to Winter New Jersey Bankers Association Assistant Vice President/ Michael M. Horn, Esq., 1986. Revived as a quarterly publication by NJBankers Assistant to the McCarter & English, LLP and The Warren Group in 1998 under the name New Executive Vice President Jersey Bank & Thrift and continued as New Jersey Banker ext. 615 Mary Kay Roberts, Esq., in 2002. Combined with The League Leader, published James R. Silkensen [email protected] Riker, Danzig, Scherer, Hyland, Perretti LLP by the New Jersey League of Community Bankers, in Co-President and Co-Chief Executive Officer December 2008 and continued as New Jersey Banker. New Jersey Bankers Association Contributing Editor

Emily T. DeMasi

Winter 2010 New Jersey Banker 3 Table of Contents

New Jersey BANKER

Departments

6 Chairman’s Platform Evolving Out of the Crisis

8 From the Co-Presidents’ Office Looking to 2010 with Cautious Optimism Special Sections

10 Politics & Policy 16 BankHorizons 24 Trends in Banking A New Governor New Jersey Bankers Reach Marketing to Gen Y Beyond the Horizon 12 Upcoming Events 26 Trends in Banking 20 Trends in Banking the Case Against 34 Bank Notes A Whole New Social Media in Banking two-Way Arena 36 Bank Shots

Features

12 NJBankers Education 28 Behind the Teller Line 30 Swine Flu in the Workplace Foundation Awards A Bergen County Banking and Related Employment Scholarship to Spouse Program that is Law Issues of Fallen Hero Stimulating the Economy 32 Board Portals 101 27 Senior Management 29 Banks and Credit Ratings Photos

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MEMBER FINRA | MEMBER SIPC www.go2griffin.com Chairman’s Platform Evolving Out of the Crisis By Robert C. Ahrens here’s a saying that if all the of a magnitude not felt since the Great count on pain ahead. economists in the world were Depression or the savings and loan crisis of But that doesn’t mean that with an laid end to end, they would not the ’80s. evolving business plan, our banks won’t reachT a conclusion. And that just seems to What we do know is that the continue to do what we always have done characterize the uncertainty that continues environment we work, play and live in is in the communities we serve: support to lie ahead for us evolving and I don’t need to tell you what the financial needs of consumers and as bankers and as happens when a creature does not evolve businesses as they themselves face economic consumers. with its environment! This environment uncertainties. We certainly has presented us with a “financial cliff,” so Traditional banks never stopped lending have the “tradi- to speak. Bankers will step back, evaluate to businesses. The demand, however, has tional” uncertainty their business strategy and move in a changed. Small businesses are faced with that we have always direction that works in this new, though uncertainties including loss of income, dealt with as bank- still uncertain, environment. cutbacks by customers and even higher Robert C. Ahrens ing leaders: there We know, for example, that capital taxes. Chairman NJBankers are always chang- requirements will be increased. We Traditional banks never stopped President/Chief Executive Officer ing regulations, know that new regulations have and will mortgage lending and continue to provide GCF Bank [email protected] changing products, continue to beset our banks (even though consumer education and guidance the changing staff, we adhered to regulation all along). We borrower needs to make healthy, financial changing competition and changing demo- know that we’ll be paying in advance into decisions. Yet many consumers have lost graphics and psychographics. the FDIC fund. We know that there will be But now, we are faced with uncertainty hard decisions to be made and that we can continued on page 14

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240 Cedar Knolls Road, Cedar Knolls, NJ 07927 • visioncreativegroup.com From the Co-Presidents’ Office Looking to 2010 with Cautious Optimism By John E. McWeeney, Jr. and James R. Silkensen, NJBankers Co-Presidents and Co-CEOs anuary 1 marks the first anniversary Housing prices and equity markets levels of foreclosures, is either at, or near, of the “New” New Jersey Bankers continued to free fall while unemployment bottom in most places, and investors are Association, and what a year it has marched towards double digits. New Jersey beginning to read their 401K statements been.J It was just a year ago when President was certainly not spared as the state’s budget again as the stock market has experienced Barack Obama was preparing to take office, deficit deepened significantly under the a significant rebound. Here in New Jersey, weight of falling tax revenues. Finally, little the economic pain of the recession and did we know the onslaught that the banking years of frustration with Trenton have lead industry was going to incur from angry to the election of a new governor, Chris consumers, a frequently misinformed media Christie, and the hope that he can bring and legislators and regulators that were new leadership to the statehouse. Lastly, the determined to “fix” the system. general public and the media are somewhat Well, here we are one year later and what’s better informed about who the real culprits changed? In his first year in office, President were for the financial meltdown while our John E. McWeeney, Jr. James R. Silkensen Obama has put forth a broad and aggressive nation’s banks are in the eye of the storm of Co-President/Co-CEO Co-President/Co-CEO NJBankers NJBankers legislative agenda tackling far-ranging legislative and regulatory reform. Are we in [email protected] [email protected] issues like health care, energy and of course, a better place than a year ago? We think so. the financial system was still caught in the financial services. The credit markets have Are we where we want to be? No, and that’s grip of frozen credit markets and the global thawed and the debate over the economy probably still a ways off. Will our industry economy was spiraling downward into has shifted from recession vs. depression to survive and prosper again? Absolutely! what many hoped would only be a recession what shape the recovery is going to take. The but others feared would be a depression. housing market, while still facing historic NJBankers Year in Review After over 100 years of dialogue and the efforts of many, New Jersey’s banking industry finally united in January 2009 with the combination of the New Jersey Don’t just turn League of Community Bankers and the New Jersey Bankers Association. The “New” New Jersey Bankers Association them away. realized a seamless transition as our staffs and boards came together as one team. Our government relations efforts got off to a fast Turn them to us. start in January with a Washington “Fly-In” to welcome the two new members of the Saying no to a customer doesn’t have to end the relationship. New Jersey Congressional delegation, John There is an alternative. Refer them to UCEDC. As a non profit Adler and Leonard Lance, both members of resource, we lend to small businesses when banks can’t— the House Financial Services Committee. and we’ve been doing it for 30 years. So don’t just say no. February saw the successful completion of Say UCEDC! our second annual Bankers Legislative Day in Trenton with over 100 in attendance. March marked NJBankers participation in the ABA’s Government Relations Summit with over 50 attendees from New Jersey in a group that included over 700 bankers from across the country. Also in March, our members focused on key regulatory, governance and

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8 New Jersey Banker Winter 2010 moved into newly renovated space on the first plus committees, all now representative of coming out of Washington and prepare for floor in Cranford and the offices and work our new membership base. Our government a new administration in Trenton. We’re also stations on the second floor were renovated as relations efforts continued full throttle with finalizing our plans to launch a new and well. As spring approached, our new team was two visits to Washington, as the debate over improved NJBankers Web site and preparing hard at work on a number of fronts, including regulatory reform and key issues such as the for the final phase of renovations in Cranford, fighting off bad foreclosure legislation in proposed Consumer Financial Protection which will update our reception and kitchen Trenton; launching a pro-active editorial Agency and the elimination of the thrift areas. board campaign to tell the banking industry’s charter took center stage. Thanks to the story to the media; introducing the services of generous support of our member banks The Year Ahead TICIC, BCG and NJBA Service Corporation and bankers, we also successfully grew The year ahead promises to be challenging, to our expanded membership base and JebPAC, the Jersey Bankers Political Action yet rewarding. Hopefully the economy will expanding our education and professional Committee, to record levels. We also ran two cooperate and with all of our transition issues development offerings to meet the needs of a successful summer golf outings, one to benefit behind us NJBankers staff can direct its larger, more diverse membership base. While the NJ Coalition for Financial Literacy and efforts towards raising the bar on everything all this was going on, the staff was integrating the other to provide our bank and associate we do. On the advocacy front, we’re going our two databases and successfully ran the members with networking opportunities. to need a strong and united grassroots effort organization’s 105th Annual Convention. As fall arrived, our members participated from our members to ensure that our voices Our bankers know that there’s no such in highly successful events like the annual are heard in both Washington and Trenton. thing as a summer slowdown any more, and Senior Management Conference and The legislative and regulatory changes that NJBankers was no exception to that rule. BankHorizons, while also supporting will occur will shape the banking industry In July, a change in leadership occurred at community activities like the NJBankers for years to come. As our industry changes, NJBankers as former co-chairs Norm Beatty Annual Road Race to support the Food Bank so will the educational and professional and John Wessling stepped down after and financial literacy programs coordinated development needs of our bankers. NJBankers a historic year and Bob Ahrens assumed through the NJ Department of Banking will be working with our various committees the chairmanship to lead the organization and the ABA. Our primary focus for the to develop new and relevant educational forward. The summer months saw the last few weeks of 2010 is to continue our relaunch of NJBankers’ vast array of over 20- efforts to try to shape the regulatory reform continued on page 31

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Winter 2010 New Jersey Banker 9 Politics & Policy A New Governor By Michael P. Affuso, Esq. ew Jersey voters have elected Republican Chris Christie over Democratic counties and Corzine’s performance: Essex County (+70,000 vote plurality in 2009; drop of 15,000) Democratic incumbent Gov. Jon Hudson County (+50,000 vote plurality in 2009; drop of 12,000) NCorzine by a 49-44 percent margin. Christie Camden County (+17,000 vote plurality in 2009; drop of 15,000) is the former U.S. Attorney for New Jersey. Union County (+10,000 vote plurality in 2009; drop of 17,000) Independent Chris Passaic County (+10,000 vote plurality in 2009; drop of 17,000) Daggett, former Middlesex County (-5,000 vote plurality in 2009; drop of 35,000) Total Drop-off 110,000 commissioner of the state’s Department Republican counties and Christie’s performance: of Environmental Sussex County (+20,000 vote plurality in 2009; gain of 9,000) Protection, garnered Ocean County (+70,000 vote plurality in 2009; gain of 48,000) over 130,000 votes, Monmouth County (+65,000 vote plurality in 2009; gain of 50,000) Morris County (+45,000 vote plurality in 2009; gain of 23,000) more than any of the Somerset County (+23,000 vote plurality in 2009; gain of 14,000) Michael P. Affuso other nine independent Hunterdon County (+20,000 vote plurality in 2009; gain of 8,000) Vice President/ Director of Government Relations challengers. Despite Total Gain 152,000 NJBankers [email protected] being outspent three- to-one, Christie won by 100,000 votes over Corzine. The voters The Senate had only two special District 14 (Mercer/Middlesex): also elected, for the first time, a lieutenant elections. Democrat Jim Beach (District 6) Democratic incumbents Linda Greenstein governor – Republican and Monmouth and Republican Mike Doherty (District 23) and Wayne DeAngelo kept their seats against County Sheriff Kimberly Guadagno, who will defeated their respective challengers, which a challenge by Republican restaurateur Rob serve a four-year term concurrent with the did not affect the Democratic 23-17 edge. Calabro and attorney Bill Harvey. term of the governor. A few contested Assembly races of note: District 18 (Middlesex): Democratic Jon Corzine’s Democratic party enjoys a District 1 (Atlantic/Cape May/ incumbents Assemblymen Peter Barnes and 720,000 registered voter advantage. In 2005 Cumberland): Democratic incumbents Patrick Diegnan retained their seats against he was elected by 240,000 votes. In four years, Assemblymen Nelson Albano and Matthew a strong challenge by Republicans Joseph we see a 340,000 voter swing against him. Milam won against Republican challengers Sinagra and Robert Jones. The message could not have been more clear. Michael Donohue and Frank Conrad. District 22 (Middlesex/Somerset/Union): In traditionally Democratic counties Corzine District 3 (Cumberland/Gloucester/ Democratic incumbents Assemblyman lost significant majorities that he enjoyed Salem): Democratic incumbents John Gerald Green and Assemblywoman Linda in 2005, while Christie made significant Burzichelli and Celeste Riley will keep their Stender edged out the Republican challengers gains over the 2005 Republican totals in seats in a very close race between Riley and former Scotch Plains Mayor Dr. Martin traditionally Republican counties. Republican challenger Dr. Robert Villare. Marks and Bo Vastine. District 4 (Camden/Gloucester): District 25 (Morris): Republican Little Change in the Legislature Democratic incumbent Paul Moriarity Assemblyman Michael Patrick Carroll and The voters’ displeasure was directed solely retained his seat while Republican challenger attorney Anthony Bucco, son of State Senator at the governor. Democrats retained control Domenick DiCicco defeated Democrat Bill Anthony Bucco, defeated Democratic of the Assembly and presently hold a 48-32 Collins, as noted above -- the one seat picked challengers Wendy Wright and Rebekah margin. The Republicans picked up one up by Republicans. DiCicco is the Chief Conroy. Assemblyman Rick Merkt will seat in the 4th legislative district, cutting the Legal Officer of the Zurich Insurance North vacate his seat after his unsuccessful June Democrats’ margin in the Assembly to 47-33 American Claim Operation. gubernatorial election bid. at the new legislative session's beginning on District 5 (Camden/Gloucester): District 31 (Hudson): It is unclear whether January 10. Democrats Donald Norcross and his running Assemblyman Anthony Chiappone will take The Democrats lost an open seat where mate, Camden City Councilman Angel his Assembly seat in January after defeating Domenick DiCicco, a Republican challenger Fuentes, handily defeated Republicans Brian Republican challengers Irene Kim Asbury in the Gloucester/Camden District 4, defeated Kluchnik and Stephanie Velez-Gentry. and Manie Day. Chiappone was indicted this Democratic challenger Bill Collins to fill the Norcross ran for the seat of Assemblyman summer for cashing his legislative staffer’s seat of retiring Assemblywoman Sandra Love Joe Roberts, who announced his retirement paychecks for his personal and campaign (D). DiCicco clearly benefited from Christie’s this summer. Fuentes ran for the seat now bank accounts. His running-mate is police upset victory in Gloucester County, which he occupied by Assemblywoman Nilsa-Cruz carried 47-44 percent. Perez, who did not seek reelection. continued on page 13

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NJBANK/120109 NJBankers Education Foundation Awards Upcoming Events Scholarship to Spouse of Fallen Hero NJBANKERS CONFERENCES

Third Annual Bankers Legislative Day in Trenton State House Annex, Trenton, NJ Wednesday, February 10

Government Relations Summit Washington, DC Monday–Thursday, March 15–18

Directors and Managing Officers Conference Forsgate Country Club, Monroe Twp., NJ Friday, March 26

Security Seminar Choice of Locations Thursday and Friday, April 15 and 16

106th Annual Convention The Ritz-Carlton, Naples, FL Wednesday–Sunday, May 19–23

Annual Marketing Conference Forsgate Country Club, Monroe Twp., NJ Thursday, June 10

Scholarship Recipient: The New Jersey Bankers Education Foundation recently awarded a scholarship to Kara Connelly, whose Charity Golf Outing husband, Army Cpl. Brian M. Connelly, was killed in Iraq earlier this year. Connelly is majoring in psychology at Monmouth Mercer Oaks Golf Course University and expects to graduate in December 2010. Pictured (l to r) are Foundation Secretary and Treasurer James Meredith, Monday, June 14 executive vice president and COO of NJBankers; Foundation Chairman Robert Stillwell, president and CEO of Boiling Springs Savings Bank; Paul Gaffney, II, president, Monmouth University; Kara Connelly, scholarship recipient; Mary Jo Cittadino-Thomas, Senior Management Conference Connelly’s mother; Foundation Trustee Peter Brown, president and CEO of Manasquan Savings Bank and Col. (retired) Stephen Seaview Resort & Spa, Galloway Twp., NJ Abel, Deputy Commissioner for Veterans Affairs, state of New Jersey. Wednesday–Friday, September 22–24

ew Jersey Bankers Education President Paul G. Gaffney, II noted that the Foundation Chairman Robert university “is proud of its veterans and their Stillwell, president and CEO of families, so we are aggressively developing NBoiling Springs Savings Bank of Rutherford, programs to ensure their success in college.” announced a scholarship award to Kara The Foundation works closely with the Connelly, an undergraduate student at New Jersey Department of Military and Monmouth University, West Long Branch. Veterans Affairs, which reaches out to Connelly’s husband, Army Cpl. Brian M. families on the Foundation's behalf. “We Connelly, was killed in Iraq on Feb. 27, 2009 here at the department are proud of the when an explosive device struck his vehicle. efforts New Jersey and her citizens make Established in 2005 and funded by on behalf of everyone serving in uniform,” members of the New Jersey Bankers said Stephen G. Abel, a retired Army colonel Association, the Foundation provides serving as the state’s Deputy Commissioner scholarship funds for dependents of for Veterans Affairs. “but we are especially members of the U.S. Armed Forces who honored to assist the New Jersey Bankers have lost their lives or became permanently Education Foundation help the families disabled in the post 9/11 Afghanistan and whose loved ones made the ultimate sacrifice Iraq conflicts. Either the dependent or the protecting our way of life.” service member must have a connection to Connelly, a psychology major with New Jersey. Foundation Chairman Stillwell an expected December 2010 graduation said, “We see no better way to honor the date, hopes to work with elementary or service of these fallen heroes than by middle school children, and said she hopes assisting those who are left behind.” that others in her situation will consider The Foundation's funds covered furthering their education by taking Connelly's tuition and textbook expenses not advantage of educational benefit programs covered by government benefit programs or such as the Foundation. other scholarships. Monmouth University's It’s not too late to make a contribution student body has many veterans and to the Foundation for 2009. If interested, dependents and offers programs specifically please contact Jim Meredith at extension geared to meet their needs. University 614 or [email protected]. ■

12 New Jersey Banker Winter 2010 Politics and Policy and Historic Preservation Bond Act of 2009,” 50 other bankers and state association continued from page 10 authorizing $400 million in open space executives to oppose the administration’s detective Charles Mainor, who ran for the bonds, by a 52-48 percent margin. proposed elimination of the federal thrift seat held by Assemblyman Harvey Smith, also charter and support the continuation of the indicted this summer. On the National Front mutual charter. They met with New Jersey District 36 (Bergen/Essex/Passaic): NJBankers participated in two ABA Congressmen Rothman, Pascrell, Garrett and Democratic incumbent Assemblyman Fred “legislative fly-ins” to Washington, DC Lance. Silkensen and Hallock are the New Scalera and Assembly Financial Institutions to speak with members of the New Jersey Jersey representatives on the ABA’s Thrift Chairman Gary Schaer defeated Republican Congressional delegation on regulatory Charter Task Force. challengers Carmen Pio Costa and Don restructuring legislation. The House Financial Services Committee Diorio. On September 15, John McWeeney and began considering regulatory restructuring Assembly seats will be vacated by the Jim Silkensen of NJBankers, along with legislation in early October, starting with a bill following incumbents: Sandra Love (D-4); Gerry Banmiller of First Constitution Bank to create the proposed CFPA. Panel Chairman Joseph Roberts (D-5); Nilsa Cruz-Perez (D- in Collingswood, traveled to the Capitol with Barney Frank (D-MA) planned a full House 5); Daniel Van Pelt (R-9); Joseph Vas (D-19); nearly 70 other bankers and state association vote on a legislative package combining the Michael Doherty (R-23); Rick Merkt (R-25); executives. They met with New Jersey CFPA, systemic risk, resolution authority for Harvey Smith (D-31) and John Rooney (R- Congressmen Adler, Holt, Frelinghuysen troubled firms and related issues. 39). and Andrews to voice the banking industry’s NJBankers will continue to track After the election, the following members strong opposition to the proposed creation developments closely in the House and will will take those vacant seats: Domenick of a Consumer Financial Protection Agency meet with Senators Menendez and Lautenberg DiCicco (R-4); Donald Norcross (D-5); (CFPA). They maintained that new consumer as the Senate Commerce Committee begins Angel Fuentes (D-5); DiAnne Gove (R-9); protection regulation should focus on the work on this legislation. ■ Craig Coughlin (D-19); Erik Peterson (R-23); lightly regulated non-banking sector of the Anthony Bucco (R-25); Charles Mainor (D- financial services industry. Michael P. Affuso, Esq. is vice-president and 31); and Robert Schroeder (R-39). On September 23, Jim Silkensen of director of government relations of NJBankers. Voters passed the “Green Acres, Water NJBankers and Ray Hallock of Columbia He can be reached via e-mail at maffuso@ Supply and Flood Plan Protection Farmland Bank traveled to the Capitol with nearly njbankers.com.

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Winter 2010 New Jersey Banker 13 New Members Chairman’s Platform continued from page 6

New Bank Members jobs, which affects demand and how many 1st Colonial National Bank New Jersey Community Bank may qualify for mortgages. 1040 Haddon Ave., Collingswood, NJ 08108-2046 3441 Route 9 North, Freehold, NJ 07728 Traditional banks never stopped Phone: 856-858-8601 Phone: 732-431-2265 contributing to our communities. But in this Contact: Gerard Banmiller Contact: James Kinghorn E-Mail: [email protected] E-Mail: [email protected] case, the demand for aid has increased as more and more consumers and non-profit Community Access Bank Liberty Bell Bank entities struggle to fill the worsening gap and 16 Riverview Road, Monmouth Beach, NJ 07750 2099 Route 70 East, Cherry Hill, NJ 08003-1201 Phone: 908-433-3401 Phone: 856-489-8401 look to us for help. Contact: Philip Nisbet Contact: Kevin Kutcher If there is one word that can sum up E-Mail: [email protected] E-Mail: [email protected] how bankers will move forward into the uncertainty, it is “prudently.” New Associate Members A push to increase capital will determine how much lending can be allowed. That will Oppenheimber & Co., Inc. Ambassador Financial Group, Inc. 115 Broadhollow Road, Suite 150, Melville, NY 11747 1605 North Cedar Crest Boulevard, Suite 508, be prudent. Contact: Michael Murphy Allentown, PA 18104 An increase in regulation will add to the E-Mail: [email protected] Phone: 610-351-1633 requirements for a bank to comply with Contact: Michael Rasmussen Frank Devlin Associates E-Mail: [email protected] whether to add personnel to handle the 201 West Passaic Street, Suite 200, Rochelle Park, NJ 07662 changes or cut services that don’t “fit” the Contact: Vincent Luther Jr. Identity Theft 911, LLC regulatory requirements. A bank needs to E-Mail: [email protected] 4150 No. Drinkwater Boulevard, Suite 210, Scottsdale, AZ 85251 work this into a business plan. That will be REACT, LLC Phone: 480-355-8500 prudent. 317 Route 34, Suite 201, Colts Neck, NJ 07722 Contact: Adam Levin Non-performing loans and foreclosures Phone: 732-341-3380 E-Mail: [email protected] Contact: William Greenberg will affect a bank’s balance sheet and a bank E-Mail: [email protected] needs to address these situations and plan for workouts wherever possible. That will be prudent. And certainly, it will be prudent for a bank to evolve its business strategy to ensure sustained growth for the institution. The NJBankers motto indicates that “with New Jersey banks, New Jersey prospers.” September 2009 And with NJBankers, we can facilitate that prosperity. Take advantage of NJBankers Rivus Bond Fund resources to help guide you through these Managed by uncertain times. Train and motivate your staff using educational opportunities NJBankers offers. Get your board on board by having them attend the Directors and Managing Officers Conference or sign them up for the Bulletin for weekly updates. Join NJBankers as we speak to the media or head 1,650,893 Shares to Washington and Trenton to present our story. Common Stock NJBankers is your association. Become a resource. Use our resources. And gain Price $15.77 Per Share the information you’ll need to weather the uncertainty. ■

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New Jersey Bankers Reach Beyond the Horizon By Diana Lasseter Drake echnology was seemingly the allure exhibit hall for the Edinburgh Room, for the GUDPA is a process where there is 5 percent for the hundreds of bank professionals morning’s keynote address, a state and federal collateral on everything up to 75 percent of at the Forsgate Country Club on regulatory update from Terry K. McEwen, capital. Everything over 75 percent of capital, TOctober 23, attending BankHorizons 2009, director of the Division of Banking for the there is 100 percent collateral,” explained the New Jersey Bankers Association’s annual New Jersey Department of Banking and McEwen. Legislation was in the works to conference and expo. Attendees had the Insurance, and Gregory P. Wyka, assistant institute 100 percent collateral for the entire prospect of winning a 42-inch or 55-inch regional director of the Federal Deposit system. “We wanted to look at it because it’s flat-screen television and the opportunity to Insurance Corporation (FDIC). a more complex issue than going with 100 observe the offerings of 40 financial industry percent collateral. Different types of financial service providers, many showcasing decidedly Accountability and the Economy institutions participate in this program and high-tech products, from advanced money McEwen highlighted a number of we wanted to see the impact on the different systems to clever fraud detection devices. important legislative issues and regulatory types of institutions,” added McEwen. “The Ultimately, however, good old-fashioned concerns affecting the state’s banking industry. working group did come up with a threshold face-to-face communication was the true First up: the Governmental Unit Deposit that we think is viable for everyone and appeal of this much-anticipated meeting. Protection Act (GUDPA), a supplemental doesn’t necessarily hurt the community banks “I’ve been coming here for five years,” said insurance program set forth by the New and doesn’t necessarily give all national banks Lois Chup of Oritani Bank in Washington Jersey legislature to protect the deposits of what they want; it was a good compromise.” Township. “Networking is really important municipalities and local government agencies. McEwen then touched on the Residential and talking to other people about what is Changes were proposed to the current Mortgage Lending Act or ReMLA, which going on in the industry. That’s the real value program, and, according to McEwen, the now requires all mortgage bankers, brokers of this event.” Department of Banking and Insurance put and solicitors to be licensed starting in Networking, but also knowledge about together a working group that has over the January 2010. A more rigorous education important trends and developments. Early past several months come up with “sound process and credit and background checks on, banking professionals left the crowded recommendations” for the system. “Currently will bring accountability to that segment of the industry, said McEwen. “New Jersey had 48,000 foreclosures last year and we’re headed toward 60,000 or 70,000 this year,” he noted. “When you start seeing those numbers, you start having questions on the underwriting that was being done on the mortgage side of the industry. This will help to make sure that we don’t have as many issues in the future.” The future instead holds promise for bank growth, particularly for the state’s de novo banks, said McEwen. The Banking Enhancement Bill, expected to pass in November, will give NJ-chartered de novo banks the ability to set up branches in some 20 The BSA (Bank Secrecy Act) Committee held their meeting at BankHorizons. The Executive and Security committees and the Committee on Examination and Supervision also met at BankHorizons. states while still only being regulated by New Jersey. “We think this will greatly enhance the

16 New Jersey Banker Winter 2010 state charter value and will be a tremendous benefit to our economy,” noted McEwen. QAR The poor economy and its effect on New FDICIA Jersey’s banking industry were top-of-mind STAR for Wyka, who was recently assigned by the FDIC to oversee banks in New Jersey and SOX Puerto Rico for a one-year stretch. “We’re in OCC decent shape in New Jersey,” he said. OFACCRA Wyka discussed the condition of the Deposit Insurance Fund, the government BSA fund that protects most bank deposits that ACH has been reportedly seriously depleted during SEC the recession. As of June 30, said Wyka, the ATM fund had a net worth of $10 billion, exclusive of the $42 billion already reserved to cover losses in the next 12 months. “We’re figuring between now and the next several years, the fund will be resolving failing banks by about $100 billion. Most of that is going to happen this year and next,” he said. Consequently, the FDIC has proposed to have banks prepay their insurance assessment, which fuels the fund, by three years. “It’s not the first time we’ve been in this position,” he added, referring back to the savings and loan crisis of the late ’80s and You only need to know three letters to handle the alphabet early ’90s. “It was a strain, but we got through soup of internal audit - FOS. it, and we’ll get through this. No depositors Financial Outsourcing Solutions provides: lost a penny of insured deposits and I’m sure that will be the case here.” • Internal Audit Outsourcing • Regulatory Compliance Wyka touched on two additional federal • Information Technology Examinations • Training • BSA Compliance Examinations • Quality Assurance Reviews issues: the Temporary Liquidity Guarantee • Fraud Examinations • Asset Liability Management Audits Program, or TLGP, and changes to FDIC • Internal Audit Co-sourcing • Special Projects supervision of relatively young institutions. • FDICIA Implementation & Training • Sarbanes-Oxley Documentation & The aspect of the TLGP that completely • Trust Department Examinations Testing insures demand deposit accounts regardless of the balance has been revised to run through We’ve assembled a great team to serve you with advanced training, experience, and professional designations. Our combined team includes Certified Information Systems June 30, 2010, rather than Dec. 31, 2009. The Auditors, Certified Internal Auditors, Certified Bank Auditors, Certified Fraud Examiners, FDIC plans to raise fees on this service, so Certified Financial Services Auditors, and Certified Fiduciary Risk Management Specialists. institutions currently in the program have the Don’t get overwhelmed by all the acronyms. Put our team to work for you. opportunity to opt out, Wyka said. Financial Outsourcing Solutions As for the supervision of young banks, www.fosinternalaudit.com • 1.800.569.5199 Harrisburg • Lancaster • Lehigh Valley continued on page 18

Winter 2010 New Jersey Banker 17 BankHorizons year anniversary, you have to submit to the next year in commercial real estate: a lot of continued from page 17 FDIC a strategic plan for years four, five, six malls and commercial office buildings coming Wyka pointed out that a disproportionate and seven,” added Wyka. “You also have to due next year, which means we’ll have to number of failures in 2008 and 2009 have come to us for significant deviations from refinance and we’ll have to make sure through involved institutions in business for seven your business plan, such as a change of asset the appraisal process that we’re not validating years or less. New rules require all banks in liability mix or your product offering, different something that shouldn’t be validated,” said their first seven years of operation, regardless kinds of funding strategies or changes in your McEwen. He has proposed to the New Jersey of asset size, to be subject to an annual branch network.” Bankers Association that it convene a summit examination. “For those banks that are Both Wyka and McEwen warned of the on commercial real estate early next year. already operating and haven’t yet reached impending crisis for banks in commercial real your third year of operation, there is a new estate as developers and owners suffer under Technologies and Possibilities requirement that 60 days before your third- the credit crisis. “A lot of writs are coming due BankHorizons 2009 also held four concurrent education sessions: “Trends in Bank Robberies and Fraud,” “Mobile Banking: Key to Generating Deposits,” “NJ Energy 101: Opportunities for Rate Relief,” and “An Overview: Compliance Process Outsourcing,” each led by one of the day’s exhibitors. Chris Mackey, operations manager for Kriebel Security, a provider of physical and electronic banking security services, offered insight into the trends in bank robberies and fraud. “There has been a 14 percent increase since last year in bank-related crimes,” Gregory P. Wyka, assistant regional director of FDIC and Terry K. McEwen, director of the division of banking at the state Department of Banking and Insurance, provide a state and federal update as the keynote address to the BankHorizons observed Mackey. “The economy has made attendees. people desperate. It’s costing about $10,000 for one robbery – regardless of what they walk out of the bank branch with, that’s what we’re losing per robbery.” This includes everything from hold-ups to cybercrime and identity, check and credit card fraud. Mackey’s seminar described advancing technologies that can help banks better protect against both external and internal fraud and robbery. He touched on the following technologies: • Access-control vestibules designed with bullet-proof glass, metal detectors and lock- Educational sessions covered hot topics, including: “Trends in Bank Robberies and Fraud", "Mobile Banking: Key to Generating down features. Cost: $40,000 to $150,000, Deposits”, “NJ Energy 101: Opportunities for Rate Relief” and “An Overview: Compliance Process Outsourcing.” AML/RightSource depending on bank branch layout. Senior Vice President Jay Goodwin presented information on compliance process outsourcing. • The latest high-tech features of digital video recorders or DVRs. The buzzword is H.264, a new standard for video compression that has nearly two and a half times more video storage space than traditional compression systems. • Camera quality – the better the picture you’re taking, the more you can do with it afterward. Become educated on frame rate, quality of the picture, megapixels and storage space. Don’t just monitor custom- ers, but also employees inside vaults and in other key accounting areas. John E. McWeeney, Jr., co-president and co-CEO of NJBankers, Timothy Lenhoff, senior vice president of information joins Jenn Zorn, vice president and director of education, to systems at Columbia Bank (center), receives the attendance pick a winner for the attendance grand prize of an LCD TV. grand prize from Jenn Zorn, vice president and director of What security features do you have? Are education and David Harkness, vice president and director of you using them correctly? Mackey suggested business development at the conclusion of BankHorizons. bankers ask these questions and more. “A lot

18 New Jersey Banker Winter 2010 of people have fantastic security systems out popular highlight of BankHorizons 2009. “The Allan Beardslee of Advanced Money there. Maybe they just need to be focused a innovation was what we came to see,” said Systems, Inc., which offers coin and bill little differently,” he said. “Before you go and Glenn Steinberg of New Jersey Community counting and related technologies, said he spend a ton of money, see if what you have can Bank in Freehold. “I came looking for was pleased with the activity and response. work a little better for you.” particular vendors in one source, one location Walter Holodny, president of Advanced Tim Daniels and Thom Dickinson of and I was surprised by what some had to Money Systems, concurred: “We’re meeting Constellation NewEnergy, a supplier of energy offer.” a lot of customers and showing them great products and services to wholesale and retail Robert Pinto of Village Office Supply, innovation.” ■ electric and natural gas customers, also urged which handles forms and printing for the bankers to think differently – this time about banking industry, noted that visitors included Diana Lasseter Drake is a freelance writer and how they buy their electric power. The New a few startups. “The flow has been consistent editor working in Pennington. She can be reached Jersey Bankers Association recently endorsed and it’s a nice mix.” via e-mail at [email protected]. Constellation as an energy supplier for its members. The challenge, said Dickinson, is educating bankers that they have a choice in how they source their electricity. “What it Access Your comes down to is that utilities (like PSE&G and JCP&L) set an auction price one time a year and average it and you get what you Board Books get,” explained Dickinson. With a third-party supplier like Constellation, “you now have an opportunity to make a choice, manage your entry into the market and the kind of Anytime. pricing structure you use and come up with substantial operating cost reductions now and Anywhere. as time goes on.” Constellation wants to show banks how they can source electricity at a lower cost by working with a third-party supplier rather Low-Cost, Web-Based, than a traditional utility. “The question Secure Board Portal. comes up all the time: how come you guys can do it cheaper than the utilities do it? The answer is that the utilities don’t generate, they buy,” noted Dickinson. “We buy differently at different times of the year in different manners. The differences of timing in the market and not being compelled to buy a Director Access is a secure Internet portal Access timely and confidential documents certain amount at any given time allow us to that provides a convenient, online platform anytime, anywhere. In addition, Director be more nimble than utilities. We’re fast in the for board members and key executives. Access tracks and archives user Director Access connects you and your information, providing an audit trail for market because we have the ability to be there board to agendas, minutes, loan requests, improved accountability and every day.” Next steps for banks considering calendars, policies, procedures and other documentation in accordance with the switch to a third-party electricity supplier board-related issues. regulatory compliance requirements. include data and dialogue, added Dickinson. “Our relationship requires some information about your electricity usage to get started. Call 888-374-6200 today to schedule an online demo It begins a long-term process of looking or visit our website at www.DirectorAccessOnline.com/nj at the forward markets and continuing to review those objectives and continuing to shape what’s available in the market around what you are trying to accomplish for your organization. That is the essence of the beginning of significant achievements year after year.” 21 Harristown Rd, Glen Rock, NJ 07452 • 201.652.6000 • 888.374.6200•w ww.DirectorAccessOnline.com/nj The Exhibitor Experience • Core Processing • Item Processing • Integrated Packages • Corporate & Branch Capture The exhibit hall featuring 40 financial OFAC & Patriot Act Solutions • Web Hosting & Services industry service providers proved to be a

Winter 2010 New Jersey Banker 19 Trends in Banking / Special Section IAs W Yourhole Bank New Audit-Ready?Two-Way Arena How'Mor e,to Be Keettpe rReg, Fasulatetro' rasr eHa Today’sppy Watchwords

By Lon S. Cohen but it has branched out into online and mobile banking. Add the phenomenon of social media to this mix, and banking is a whole new two-way arena.

Banking Wherever Your customer impatiently stands in line with a shopping cart full of groceries and a fidgety baby in the baby seat. She gets a sinking feeling when she realizes that she didn’t put enough money into the checking account linked to your bank’s debit card to cover all of her errands. In order not to overdraw the checking account or get declined at the register after bagging up almost $200 worth of groceries, she needs to know the account balance and possibly transfer funds, all while standing on line in the grocery store. If your bank offers mobile banking, the customer takes out her smart phone and taps on your bank’s mobile app. A program opens with a list of her accounts showing that yes, her balance is low. She makes an immediate transfer of funds to cover the purchases, all before the cashier finishes ringing up the groceries. A 2009 Pew Internet & American Life study on wireless use reveals that a third of all Americans have accessed the Internet through a mobile device and 46 percent of American cell phone users think mobile access is very important for getting online information on the go. This is because we carry our mobile phones with us. “Mobile banking offers the convenience of anytime, anywhere access,” said Pam Livingston, vice president of business development at MShift, a provider of mobile banking solutions to the financial industry. “Cell phones are always with you; PCs are not.” Not all of your customers have a powerful smart phone (yet) but chances are that most of them have the ability to send a text message. Luckily there’s more than one way to offer your customers mobile banking. As a matter of fact, there are three: SMS Text Messaging: The simplest and most ubiquitous. Your customer sends a simple text command like “BAL” that will send back the desired information. In this case it might send the customer he transformative effect of a more transparent, mobile his account balance. culture on banking is going to be hard to miss, unless you’re Wireless Application Protocol: WAP for short. It sounds the type of bank that wants to be standing by the side of the complicated, but it’s not. It’s the technology behind mobile Web Troad while the traffic passes you by. Today’s customers look for the browsers. Software on the Web site detects if a customer is using a same banking products they are familiar with, but expect newer, mobile device and redirects them automatically to a slimmed down faster media to deliver their information – and they want to be able version of online banking. to talk back. Downloadable Smart Phone Applications: The most secure “Customers and business owners have a strong demand for and user-friendly. A vendor can develop a custom application new channels to speed up the delivery of account information, for your bank to provide direct access to your customer’s banking and ultimately save them time,” said Ed Malandro, executive information, via iPhones and BlackBerrys. vice president of consumer banking at Sun National Bank. “Basic “The single most important factor that influenced the bank’s customer needs have stayed relatively the same over the years, decision to implement mobile banking is that we wanted to be able but the delivery expectation continues to evolve.” In the past, the to deliver our services where and when our customers wanted them,” delivery channel may have been telephone banking or the ATM, said Frank Sorrentino, III, CEO of North Jersey Community Bank.

20 New Jersey Banker Winter 2010 Many banks say that offering customers the ability to conduct convenient transactions through a channel they already feel comfortable using is reason enough to adopt mobile banking. But it’s also a great way to save money. “According to multiple bank research studies, mobile banking is the lowest cost-per-transaction solution in today’s market,” said Malandro.

Social media is changing the way people think about business relationships An independent contractor just received a big check. He’s been waiting for it and wants to cash it right away. Because it’s a very long drive, he calls your banking center to find out if his local branch’s drive through window is open but he gets the wrong in- formation and when he arrives at the branch, it’s closed. The first thing he does is to send out an angry stream of Twitter messages (called tweets) telling the world exactly how he feels. If this customer simmers long enough, a few tweets might turn into a damaging blog post or YouTube video that goes viral. Online perception can quickly become reality, so being prepared to respond is important. “The key to success using social media is that if you’re not timely and responsive the channel won’t work,” said Jeannie Foulon, vice president of Vision Creative Group, a marketing agency that advises banks on how to use social media. If a bank is actively searching for mentions of the brand online, then someone can head off potential problems before they go viral. This may take a leap of faith since many banks are still uncomfortable The benefits of a coordinated social media plan can be immense, with the idea of sharing on an unsecured and unregulated third party positioning the bank as a leader in the community by providing site. Nor do they really understand how to take advantage of it even if guidance and information customers need, where they’re looking they can get over the idea. In fact, the biggest reason cited by a survey for it. Banks now have an opportunity to use technology to become from the American Bankers’ Association of bankers who have not a real part of the conversation. A bank can show it is more than adopted social media is that they just don’t get it. just a place for people to put money. Banking is, after all, a service- Foulon said it’s important that banks change the way they think oriented industry, and social media helps institutions become more because they’re not used to getting this type of feedback and acting transparent, bringing the bank to the people. upon it in public on social media. But they’d better get used to it. “It won’t happen all at once,” said Chris Casserly, internet “They have to rethink internal infrastructure and how they are going strategist at Vision Creative Group. “Banks will take baby steps to get to handle things via the Web,” she said. into social media.” It relies on an open line of communication between those running He said that banks can help focus the conversation online in two many different divisions of a bank and the social media manager. ways. One is by growing its network on the social Web to encompass It also requires shorter pass-through on decisions because of the some of the popular sites like Facebook, YouTube, Twitter and immediacy of the medium. LinkedIn. Second, a bank needs to develop a platform perspective Scott Mills, president of the William Mills Agency, said it’s that goes beyond its own Web site. That means contributing value- quicker to implement a social media campaign at a smaller bank added content that opens a dialogue with customers through blog because the decision-making process would take weeks instead of posts, podcasts, and videos. “Content elicits input and engages months and any hurdles might be easier to overcome. Another big dialogue,” Casserly said. advantage is the ownership of the social media program by higher- There’s a lot of buzz out there and banks are doing research level employees who may be more technically savvy and have a and investigating ways to get into social media. Casserly points out tighter customer service focus when developing the plan. “At a challenges in the early stages of adopting a social media plan. “A smaller bank it may be the director of marketing doing the actual bank was trying to create a Facebook page, but then realized it had tweeting,” explained Mills. shut off Facebook for the company employees, so they couldn’t access That’s an important point, because a new report from Celent, a their own marketing,” he said. “Selling social media to the bank’s research and advisory firm for financial institutions, shows many management team can be difficult.” He said the process is a gradual banks have placed social media in a silo and assigned a junior acceptance of social media with different points along the way. employee to deal with it. They stress that a social media plan needs to span multiple bank activities and have the buy-in of the executive team with a senior marketing executive leading the charge. continued on page 23

Winter 2010 New Jersey Banker 21 Opening the Door toSuccess

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Visit www.thewarrengroup.com for additional products and serVices active, resulting in a tremendous load on back-end systems, so the bank needs to ensure that it’s able to handle high- frequency interactions via widgets, which is significantly higher than the typical load on the online portal. On the up side, the average number of times a customer interacts with the bank increases from two to four sessions per month on the online portal to anywhere between 15 to 30 times via a widget. Two-Way Arena The greatest benefit is that by sitting continued from page 21 side-by-side with a user’s normal social number of people using social networks on networking activity, the widget acts like an Bite Sized Banking the Web is a staggering percentage of total always-on marketing and banking tool all A college student is on Facebook, chat- online users. wrapped into one piece of software. The ting with his friends and looking up photos As with any new technology, widgets mini apps seem to represent an end point in from a party he went to the night before. come with some downside. The widget technology trends as different channels are It’s late in the morning and he hasn’t left communicates with the same back-end merged into a single feed that is immediately his dorm room yet. One of his classmates systems that power the online portal relevant available to consumers whenever they need it. reminds him that for a class they’re in to the data it needs to serve up. It has to be “Widgets enable genuine meaningful together, he needs to do a big chunk of able to integrate with the bank’s security interactions between the bank and the required reading for the next day – from mechanisms, because scammers have tried customer,” said Harif, “while bringing the a textbook he hasn’t purchased yet. “Uh phishing and forgery among other techniques bank directly to where customers spend their oh,” he says to himself. He wants to run to trick the consumer into allowing access to time online.” ■ down to the book store to buy the text- sensitive account information. book, but he doesn’t know if he has WorkLight’s statistics show that 95 Lon Cohen is a freelance writer based in enough money in his bank account. percent of a bank’s widget users are very New York. He just checks the banking widget that he installed on his profile page and sees that he’s low on funds. He sends an IM to his mother asking for the extra cash. Immediately – even though she’s out to brunch with Dad – she does an automatic transfer from her savings account to the joint account through her mobile banking widget. He sees the transfer within a few minutes and heads off to the bookstore. “A widget is essentially a mini-application for highly-focused interactions typically made available via online, desktop, mobile and social Web 2.0 environments,” said Yonni Harif, marketing and business development manager at WorkLight, a company that develops Web 2.0 applications for businesses. A widget allows banks to engage customers via any popular Web 2.0 service or virtually wherever they spend time online in order to manage finances, transfer funds, track accounts, pay bills and other banking activities. Harif says that banks have launched widgets ranging from purely informational to fully transactional banking tools. In 2009, Generation X and Y make up about 43 percent of the Internet population, according to the same Pew/Internet study. A majority of them use social networks like Facebook or MySpace. Include teens, and the

Winter 2010 New Jersey Banker 23 Trends in Banking / Special Section

Marketing to Gen Y the future is here By Christina P. O’Neill eneration Y, born between 1979 and 1999, are your bank’s to be simple, clear and on-demand because some of the day-to-day future. They’ve already surpassed Baby Boomers in numbers money management concepts haven’t been taught in school, he says. and will exceed them in annual income by next year. They’re PNC Bank’s Virtual Wallet program, in development since G“digital natives,” the first generation to grow up with computers, late 2007, was launched in August of last year. It calls the checking but they’re also a social generation. How well you provide their account the Spending account; a short-term savings account with favored technology and how you use it to communicate with them a lower interest rate is the Reserve account, and a long-term savings will determine your success in recruiting and retaining them as with a higher rate is the Growth account. Customers can move money customers. between accounts by using a money-bar slider. For boomers, technology was an end in itself, says Larry Cohen, “We found that there are many customers trying to [aggregate director of the Consumer Financial Decisions group at SRI Consulting information] on their own,” Ley says. “They have a checking account Business Intelligence. But for Gens X and Y, it’s just another medium in which they might have tucked away $200 as a reserve. We tried to of exchange that they learn quickly. visualize that and put it in a context they can understand. The Virtual Gen Y is defined by the way it communicates and consumes Wallet represents how these folks think about their money.” information. Social networks are a critical bank marketing strategy for this valuable customer segment. Two-Way Communication: Are You Ready for This? Tony Coretto, managing partner of PNT Marketing Services Generation Y wants the capability of critiquing customer Inc. in Long Island City, NY, says institutions may start distinct, co- relationships, and sharing that critique with their friends. However, branded spinoff sites targeted to Gen Y, with snappier design than a few banks are prepared for that level of transparency. “plain-vanilla” banking site. Corporate transparency has become a critical element of the But the ease of establishing a long-term, Web-based banking value proposal, particularly since September 2008, the height of the relationship with Gen X and Gen Y also gives customers more financial panic on Wall Street. As scrutiny of banks heightens in the opportunity to research the competition. “Banks have to adopt face of wide-sweeping reform of the country’s financial system, Gen a different strategy of communication,” he says. Gen Y will be Y customers want full disclosure of fees and terms, and the ability to suspicious of a standard corporate line. Communications must be align their values with the values of companies they perceive are like relevant and targeted. “If you’re not on Facebook, you’re missing on them. an opportunity to provide information on your services, but you don’t That said, Gen Y is also more entrepreneurial than any other want to be overtly pitching or advertising.” customer set, and seems set to become the small-business owners of tomorrow. They’ll need some help to get there, though, in the form of Getting the Message Right products and services that facilitate their banking wisdom. Banks often stress the importance of Web site security when discussing social media, but they also want to get their message right. Greed is Good – NOT What does Gen Y want? Immediacy, individualism and social “Gen Y is socially conscious, and wants their bank to be, too,” says interaction – in addition to content that is not static. Gen Y’s SRI’s Cohen. Gen Y has been exposed to the big financial scandals and understanding of technology is innate – and their thirst for constant implosions of the past eight years. “This is a time of great velocity. For new information requires that banks constantly refresh their Web this generation to have this exposure at the time they are becoming sites with new information to attract a generation that uses Web independent, it will have long-term impact,” he says. products such as del.ici.ous and RSS feeds. Clients with Web sites five Of all groups surveyed, Millennials – those aged 18 to 24 – present or six years old that aren’t getting any new traffic are very likely not the lowest level of confidence that Social Security will be there for refreshing the site with information Gen Y wants. them. But while they believe they’ll have to work longer, they also want to not only do well, but to do good. “Many have a responsible Helping Gen Y Help Itself streak and a strong sense of civic duty,” says Cohen. “Gen Y may be PNC Bank teamed with research firm IDEO to do in-depth first to say greed is not good.” ethnographic studies to determine what differentiates Gen Y from other age cohorts. Researchers visited customers at home and asked Making it Stick about their money management strategies and what they wanted to Research has determined that it’s five to 10 times more expensive see in financial service tools. to recruit customers than to retain them. A banks’ challenge will Gen Y customers want help to help themselves, says Michael Ley, be how to keep Gen Y customers who move away from their home vice president of e-business and payments for PNC. Services have region when they leave college.

24 New Jersey Banker Winter 2010 Gen Y is a natural for time-saving online applications that quicker rate than in the past, placing banks which offer new services aggregate all their financial information into one convenient place, earlier at a competitive advantage as the adoption rate accelerates. For promoting “sticky” behavior that results in customer retention. the latecomers, new services become a “me-too” and profitability is “Sticky behavior makes accounts ‘stick’ with banks, and makes not what it could have been with an earlier adoption rate. In fact, there them harder to disentangle. Rather than a retention strategy, it can be are experts who see the day when mobile banking will be yet another a growth strategy,” notes Coretto. “If you’ve got a customer you want free service, used as way to increase sales and retention. to keep, enroll them in direct deposit payroll, online bill payment, Research shows that customers who regularly use online bill pay or automatic transfer payments to their credit card or mortgage. are up to 95 percent less likely to leave compared to others. Customers Anything that is a link that would have to be severed if the customer who don’t use online bill pay are 43 percent more likely to leave. A changes banks is one more reason to stay with the current bank.” person who uses a debit card is 1.5 times more likely to buy another How hard is it, really, to sever those links? “The perception is often banking product than someone who just uses checks. greater than the reality,” Coretto says. Filling out forms, providing As Gen X and Y research mortgages and other loan products, they identification, setting up direct deposit of payroll by providing your can comparison shop within their respective online communities, employer with a voided check from the new account (and usually comparing rates and points, and getting advice from their online waiting a pay cycle for the direct deposit to activate) takes maybe a community rather than the bank. They will also use Web calculators couple of days. Once a seamless system is in place, “customers are as a matter of course. loath to disrupt that.” It’s a far cry from a generation ago – or even more recently – when Young consumers who have tie-ins to Quicken, or account talking about money was considered taboo. “Given the community aggregation sites such as Mint.com or Yodlee.com, have even more ethic that has arisen with Facebook, LinkedIn, Twitter and other reasons to stay with their current bank, rather than pull out and social networking sites, there is an entirely different attitude about replace all their bank-related links. Once a customer has these sharing personal information,” Coretto says. “The advice comes from financial linkages in place “a bank has to do something egregiously the community, not a third party like a bank.” That naturally leads to bad to drive them away,” Coretto says. commoditization of financial products and services unless banks can somehow make their messages relevant to the community. ■ Acceptance While Gen Y are the early adopters of new technology, bankers Christina P. O’Neill is the editor of custom publications for The Warren say older demographic groups are also adopting new technology at a Group, publisher of New Jersey Banker.

“The Gramm-Leach-Bliley Act, which allows commercial banks to affiliate with investment banks, was not a cause of the economic crisis. It was actually a mitigating factor for those institutions that took advantage of it. ” John M. Baker Of Counsel

John M. Baker, Esq. A member of Stradley Ronon’s Investment Management/Mutual Funds Stradley Ronon Stevens & Young, LLP Practice Group, John Baker acts as counsel for banks and bank affiliates on [email protected] 202.419.8413 investment management, brokerage and privacy issues. Mr. Baker formerly served as senior counsel for BankBoston, N.A., where he was the primary legal advisor to the bank in its role as investment adviser to mutual funds with more than $9 billion in assets.

WWW.STRADLEY.COM | Philadelphia | Washington, D.C. | Harrisburg | Malvern | Cherry Hill | Wilmington

Winter 2010 New Jersey Banker 25 Trends in Banking / Special Section The Case Against Social Media in Banking By John Jaser ow cute and cuddly is social media companies actually gained enough new Facebook users have learned to be wary for banking? Not as sweet as the customers to warrant the expense of a full- about searching for information about headlines claim for banks looking blown social media effort? Everyone wants viruses. Criminals have established fake toH attract new customers while protecting to know! Web sites to warn visitors about bogus their personal information. In the risk arena, we find social media threats, such as the “Facebook Fan Check How do I dare now serve as a venue for phishers to trick Virus.” There, the Web site convinces speak contrary to the public into revealing their personal visitors to buy useless anti-virus software popular wisdom, information. Malicious scripts are routinely and reveal their credit card details in the which claims that planted in Facebook and Twitter profiles to process. anyone can tweet infect friends and followers. This is just one of many Facebook their way to fame Twitter users recently received threats. More recent attacks come inside and fortune? Because identical tweets from multiple users. On messages titled “Hello” and link to sites with the security risks are investigation, users found the suspicious names like 151.im and 121.im. Users who John Jaser growing faster than tweets had been generated by a malicious click those links will see a convincing replica the opportunities, and chatty tweets are script planted in Twitter profiles. Every of Facebook’s login page. Unfortunately, loosening employee lips. time a user visited the affected profiles, the they’ll be typing their ID and password into Let’s start by addressing the script infected the visitor’s profile, further the hands of cyber criminals. opportunities in social media. Have any spreading itself through the user’s followers. Beyond the risk of cyber crime are the risks posed by employees. The point of social media is chatting, but too often this innocent behavior reveals company secrets. GW Financial Find out why more banks are moving More disturbing are employees who don’t 2 Haven Street Suite 301 their BOLI portfolios our way! care. Reading, MA 01867 A recent Travelers’ survey of 2,000 www.cfnii.com Talk to John & John at M Benefit Solutions – Bank Strategies. American adults revealed that they regularly We’ve been doing it the same way, the right way, since we started - posted work-related information on social let us show you what compliance and service really means! media Web sites. Most disturbing is the 75 percent of those surveyed who said they were “not at all” or “not very concerned” Are you satisfied with the performance about damage to their professional reputation as a result of their online D. John Gagnon and service of your BOLI plan? GW Financial activities. 781-942-5700 [email protected] Recent findings from our free and confidential BOLI Audits Social media presents several flavors of 1) Existing BOLI lacking in performance – risk, including threats embedded into pages, Today’s products are better priced and offer improved performance phishing and other criminal techniques that 2) Misunderstanding between accrued and perceived benefit – exploit the social engineering chat, and the Is your understanding of your SERP benefit the same as the banks? unwitting slips of confidential information 3) Incorrect benefit expense recording (FICA, Medicare, etc.) – from employees. Would you rather pay a small tax now or a much larger tax during retirement? John Waters, CLU, ChFC 4) Missing 409A and compliance manual updates Social media represents a brave new GW Financial world. It can be a bonanza for people like 781-942-5721 Julie Powell, who got a book and movie [email protected] Through our relationship with M Benefit Solution, our approach offers > Interactive web-based compliance manual, cash values, financial reporting contract by blogging about her year-long Joint Venture Partner of > SAS 70 Level II certified IT systems and processes culinary journey through Julia Child’s > Largest product portfolio in industry cookbook. It can also be a bust for banks > Client support of over 200 professionals and 50 advanced degrees that get trashed by Facebookers with an axe > Independent Community Bankers Association (ICBA) endorsement to grind.

continued on page 33

26 New Jersey Banker Winter 2010 Senior Management Conference September 23-25, 2009, Seaview Resort & Spa Galloway Township, NJ John Gianacaci, senior vice president of BFS Consulting, shares a laugh with Robert C. Ahrens, president and CEO of GCF he New Jersey Bankers Association’s annual Senior Management Conference brought Bank and chairman of NJBankers, at the opening reception. a panel of experts together to present “Economic Revival: Fact or Fiction?” NJBankers and the Conference Committee thank our speakers and those who attended. Special Tthanks to our sponsors for helping to make the event a success.

Gerald H. Lipkin, chairman, president and CEO of Valley National Bank, moderates a panel discussing regulatory reform.

Participating in the Regulatory Reform panel are (l-r): Carter McDowell, chief legislative counsel, domestic and international banking issues, American Bankers Association; Alfred A. DelliBovi, president, Federal Home Loan Bank of New York; and Terry K. McEwen, director of the Division of Banking at the New Jersey Department of Banking and Insurance.

Lucinda P. Long, Esq. (third from left) senior vice president and general counsel of Valley National Bank, presided over a panel of attorneys at the New Law for New Economic Times session. Left to right: Robert M. Jaworski of Reed Smith LLP; Stuart Gold of Mandelbaum, Salsburg, Gold, Lazris & Discenza, PC; and Michael M. Horn of McCarter & English, LLP. Keynote speaker Steve Adubato, Ph.D., president of Stand and Deliver, presented “If the New Jersey Economy is So Important… Then Why is This Campaign About Something Else?” He solicited questions to bring to the gubernatorial candidates at the debate preceding the election.

Michael Sheridan, former chief examiner of the Department Edward C. Stokes, III, partner in the law firm of Stokes and of Banking and Insurance (center), accepts the Warren Hill Throckmorton, was presented with a resolution from the award from John E. McWeeney, Jr. (left) and James R. Silkensen association thanking him for his more than 20 years of service (right) co-presidents and co-CEOs of NJBankers. The award leading the Legal Committee and for reviewing countless is given to those outside the industry who demonstrate bills introduced into the state legislature, providing a written commitment and make contributions consistent with the analysis and his recommendation for a position, all on a pro values and principles of NJBankers and its members. bono basis. Robert C. Ahrens presented the resolution at the The Honorable Neil Jasey, commissioner of the New Jersey New Law for New Economic Times session. Department of Banking & Insurance, provided the closing remarks at the conference.

Winter 2010 New Jersey Banker 27 Behind the Teller Line A Bergen County Banking Program that is Stimulating the Economy By Diane Scriveri ow to moderate income individuals Eligibility the applicant is sent to one of the participating living or working in Bergen County Potential borrowers in a low to moderate financial institutions to work one-on-one with a could receive up to $82,500 towards income bracket who live or work in Bergen mortgage lending professional. Lthe purchase and closing costs of a first home, County may be eligible. The income levels are through a partnership between area banks: determined by the Department of Housing and How the program works Bogota Savings Bank, Urban Development (HUD) and will change Once counseling is complete, Bergen Oritani Bank, NVE from time to time as levels are updated. A family County’s Division of Community Development Bank, Spencer Savings of four can have household income of up to sends qualification letters to the participating Bank, Lakeland Bank, $64,000 to qualify for the program. It is only banks. The bank qualifies the applicant for as Mariner’s Bank, Clifton available to first-time homebuyers, defined as much mortgage as they can reasonably afford. Savings Bank, TD not having an ownership interest in a home Bergen County steps in to close the gap between Bank and its newest for the past three years. The price of the home the purchase price and the mortgage amount participant, Columbia to be purchased can not exceed 95 percent of by providing up to $65,000 in a non-interest Diane Scriveri Bank, and Bergen the median home price in Bergen County; the bearing loan, where a second mortgage lien is County’s Division of Community Development current limit is $460,750. Eligible property types filed upon closing. That loan must be repaid and the American Dream program. are owner-occupied, one-family homes and only when the home is sold or the homeowner Bogota Savings Bank has approved condominiums. no longer resides in the home as a personal American Dream Mortgages and provided The program also provides personal residence. financing for 16 first-time homebuyers assistance and counseling from a specialist An additional matching amount of up totaling $1,709,000, and has provided $15,000 at the Homeownership Center located in the to $15,000 is available as a grant. The grant in funding towards the operating costs of Bergen County seat of Hackensack. These classes is forgiven over a 10-year period. If the the Bergen County Homeownership Center. are a requirement of the program. The center homeowner stays in the home over 10 years, Jacqui Atkins is the contact at Bergen County has computers and other tools to help with a nothing needs to be paid back and the amount Community Development; her information search for homes and to research and receive is forgiven. The fund will match dollar for can be found at the Bogota Savings Bank Web professional advice. Classes are held on Saturday dollar with the homebuyer towards the down site, www.bogotasavingsbank.com, under mornings to assist homebuyers to navigate payment or purchase price of the home, up to “Community News and Information.” We are through the entire home buying process, the maximum of $15,000. An additional grant is very proud to be able to offer this program and including becoming a homeowner, dealing with available for up to $2,500 toward closing costs. partner with Bergen County to help as many Realtors®, attorneys, banks, credit and budgeting. This is a great time to become a homeowner neighbors as possible realize the American Once a prospective homeowner has if you live or work in Bergen County. Real Dream. completed the classes and is counseled on credit, estate prices have become more reasonable after years and years of appreciation and mortgage interest rates are at all time lows. The federal government is also offering tax credits of up to $8,000 to homebuyers. Homeownership is not for everyone, but if homeownership and the “American Dream” are right for you or someone you know, then this is a one-of-a-kind resource that is available to qualifying bank customers that live or work in Bergen County. ■

Diane Scriveri is the executive vice president and chief lending officer for Bogota Savings Bank Pictured from left to right: Bergen County Freeholder Bernadette McPherson; Bergen County Community Development Director with offices in Teaneck and Bogota. She is also Joseph Rutch; Homeownership Center Administrator J. Atkins; Freeholder Vernon Walton; Bergen County Executive Dennis McNerney; Bogota Savings Bank Assistant Vice President B. Kohles; Bogota Savings Bank Executive Vice President D. Scriveri; the chair of the Residential Lending/Affordable Bogota Savings Bank Chief Executive Officer Joseph Coccaro; Freeholder Julie O’Brien and Bergen County Homeownership Housing Committee for the New Jersey Bankers Administrator L. Organ. Association.

28 New Jersey Banker Winter 2010 Banks and Credit Ratings: What You Should Know

By Michelle Young onstrained by ever-increasing likely used in underwriting guidelines public images and tell their unique stories. competitive pressures, banks are or pricing benchmarks by insurance Stressed market conditions highlight the constantly searching for ways to providers, correspondent banks, deposit need for more transparency in the banking Cimprove their operations. Community brokers, institutional depositors, inter-bank industry. Depositors and institutional banks would be well-served if they knew fund dealers and other bank analysts and investors are interested in the on-going their credit ratings investors. All of these market participants financial strength of their banks and look for and considered how touch on one or more aspects of every bank’s information that communicates the bank’s their businesses could operation, financing, funding, contract status. An interactive credit rating provides be affected by those negotiation and regulatory compliance. an expedient and powerful means for a ratings. To illustrate the difference between bank to reach its customer base and other Credit ratings, interactive credit ratings and rating scores, constituents such as investors, directors, classified as interactive let’s consider a bank expanding into new regulators and municipalities. Constituents credit ratings or non- markets or adding product lines. The may be more confident to engage in business Michelle Young interactive public data credit rating scores, exist for all U.S. banks in the industry. An interactive credit rating is based on more than just financial results; it is developed with the participation of the subject bank. The rating considers the longer-term business strategy of a bank and provides it with an opportunity to share with analysts its unique profile, strategic plans and other qualitative factors, such as history of the management team, the bank’s risk management system and underwriting process. Thus, an interactive credit rating “Interactive credit ratings are not just for accessing financial provides a more thorough indication of a bank’s financial standing and market markets but also tools for banks to manage their public images position, and captures the bank’s long-term and tell their unique stories.” prospects, beyond the reported quarterly financials. As an independent third-party opinion of the financial condition of a bank, an interactive credit rating carries financial profile of such a bank would transactions with a bank whose ratings are tremendous significance to depositors, be impacted by the high start-up cost of based on a comprehensive quantitative investors, directors, regulators and other the expansion without benefiting from and qualitative interactive analysis from a market participants. the resulting revenues generated from recognized third party. Most full-service rating agencies that the expansion until a later date. As these As more banks fail or report impairment, offer interactive ratings cater to larger global factors are qualitative in nature and require the issue of transparency becomes and national banks. The lack of interactive a forward-looking evaluation of the bank unavoidable. It is important that banks have credit rating coverage for community banks beyond the current financial figures, they a vehicle to distinguish themselves from has resulted in constituents relying upon would be considered in a bank’s interactive competitors. An interactive credit rating can non-interactive public data rating scores credit rating. be that vehicle. ■ derived from regulatory filings and other Credit ratings can have an impact on a public quantitative data sources. Since bank’s funding costs from interest-bearing For more information on interactive credit non-interactive public data rating scores deposits and brokered CDs to short-term ratings for community banks, please contact are based on financial figures without the borrowings, like repos and fed funds, to Michelle Young, business development manager qualitative factors supporting a bank’s longer-term financing sources such as for A.M. Best Company, at 908-439-2200, latest performance results or long-term public or private equity or debt capital. extension 5144 or at michelle.young@ambest. strategic direction, they do not capture However, interactive credit ratings are com. Founded in 1899, A.M. Best Company is a the full story of the operation. These non- not just for accessing financial markets global, full-service credit rating agency dedicated interactive public data rating scores are but also tools for banks to manage their to serving the financial services industry.

Winter 2010 New Jersey Banker 29 Swine Flu in the Workplace and Related Employment Law Issues By Francine Esposito, Esq. wine flu is undoubtedly this season’s topic What is an employer’s obligation with the extent employers do require doctors’ notes of concern. On Oct. 23, 2009, President regard to illness in the workplace? from employees with flu-like symptoms, such Barrack Obama declared a national The Occupational Health and Safety Act notes should merely state that the employee is emergencyS due to the spread of this virus, (OSHA) requires employers to provide a safe and able to work and/or return to work, and should which has been deemed a “pandemic” or global healthy working environment for all employees. avoid specifics about any condition. As always, epidemic. Although OSHA officials have stated such provisions employers must remember that employees’ many employers have require employers to take certain precautions to medical information – whether they are infected taken the recommended prevent a swine flu outbreak in their workplace. or not – must be kept confidential. Therefore, simple steps to prevent The precautions recommended by both OSHA employers should avoid saying such things as swine flu spreading in officials and the Center for Disease Control “Anyone exposed to Jane should go to the doctor the workplace (including (CDC) can be found at www.cdc.gov/h1n1flu/ since she has swine flu,” or “Don’t worry, John posting signs on proper business/guidance. does not have swine flu.” methods of coughing, Francine Esposito sneezing, tissue Can an employer require employees with Can an employer require employees with disposal and hand washing), dealing with the flu-like symptoms to go to the doctor and flu-like symptoms to stay home? associated legal issues is, unfortunately, not as submit documentation stating they are fit to Yes. While employers normally want their simple. Indeed, an outbreak of any illness in the work? employees to report to work on a regular basis, workplace can create a variety of legal challenges Yes. The U.S. Equal Employment such is not the case when sick employees come for employers. Given this, the following is Opportunity Commission (EEOC) has recently to work and spread germs to unsuspecting co- intended to highlight the legal issues relating to issued guidance to assist employers in evaluating workers, or more concerning, start a swine flu employee health, absence, and compensation. the complex issues related to swine flu in the outbreak in a workplace. Unfortunately, during workplace. Although the Americans with the current bad economic times, employees Disabilities Act (ADA) limits an employer’s likely feel increased pressure to report to work, ability to make disability-related inquiries or despite illness, because they need the money or require medical examinations, the EEOC’s want to demonstrate their value to the employer guidance makes clear that asking employees in an effort to avoid being included in any about cold or flu symptoms is not likely to elicit impending layoff. What’s an employer to do? To information about a disability. start, employers should proactively communicate Even if an employee’s swine flu was their desire for sick employees to stay home to serious enough to constitute a hasten recovery and avoid the spread of illness. disability under the ADA When push comes to shove, however, CDC or applicable state law, and EEOC guidance make clear that employers employers would have have the right to require employees with flu-like the right to make medical symptoms to leave the workplace. inquiries and/or require medical examinations if Must an employer pay employees required they have a reasonable basis to stay home? to believe that the employee The answer depends on a number of factors. poses a “direct threat” of danger to To the extent employees have available sick himself or others. Whether an employee and other paid time off, they can be required poses a direct threat or danger is a to use such paid time off for their absences specific analysis that must be done on a in accordance with their employer’s policies. case-by-case basis. Depending on the length of an absence, It is noteworthy, however, that the employees also may be entitled to short-term EEOC’s guidance specifically acknowledges disability benefits or potentially even workers’ that the swine flu pandemic may become so compensation benefits if they can demonstrate severe that employers’ interests in protecting they contracted the flu on the job. themselves and their businesses from the spread With regard to regular compensation, of disease may outweigh employees’ rights under employees who are “non-exempt” or “hourly” the ADA and other antidiscrimination laws. To under the Fair Labor Standards Act (FLSA)

30 New Jersey Banker Winter 2010 need only be paid for time actually worked. The Co-President We extend to you, your employees and your question is more difficult as it relates to “exempt” continued from page 9 families our best wishes for the happiest of employees. In general, in order to be “exempt” holiday seasons. We look forward to serving from overtime under the FLSA, employees must offerings to meet the needs of our bankers you in the future and wish for all a prosperous predominantly perform executive, administrative and directors. Finally, we’ll be working with New Year. ■ or professional work, and be paid a weekly salary our extensive network of associate members that is not subject to deduction based upon hours and endorsed service providers to identify John E. McWeeney, Jr. is co-president and worked, due to partial day absences, or for time new solutions to help our bank members co-CEO of NJBankers. He may be reached via off when such employees are otherwise ready, better serve their customers, communities e-mail at [email protected]. James willing and able to work. and shareholders. R. Silkensen is co-president and co-CEO of In order to maintain their exempt status, We thank all of our bank and associate NJBankers. He may be reached via e-mail at exempt employees must be paid for full weeks members for your support over this past year. [email protected]. unless certain exceptions apply. Those exceptions, which may or may not apply when employees are forced to stay home due to swine flu, include when exempt employees: 1) perform no work in Looking to Reduce your an entire week; 2) are on a leave under the Family Medical and Leave Act (FMLA) (either partial or full days), and 3) have not yet become eligible Bank’s Operating Costs? for, or have exhausted, their entitlement to paid sick time. WE caN savE YOu TIME aND MONEY. These issues must be properly evaluated to avoid the destruction of employees’ exempt status and the resulting requirement to pay such employees for overtime worked. Absences due to swine flu may very well be covered by the FMLA (for otherwise eligible employees) since those suffering from the virus will likely be incapacitated for more than three days and receiving “continuing treatment” (i.e. at least one doctor visit and the need for prescription medication). Our proactive approach to If employees work from home, they must be managing computer networks paid for time worked, to the extent that it can will free-up capital to spend on An Atlantic Technology Solution be measured, if they are non-exempt, or exempt GROWING your business, not and on a reduced schedule FMLA leave. Exempt fixing it. employees not on a reduced schedule FMLA Once you have SAFETiNET™ leave must be paid for the entire day if they you won’t know how you worked without it! perform any work from home during that day. Introducing SAFETiNET™ Your IT Department’s Try SAFETiNET Risk What else should employers be concerned New Best Friend: about? • Managed Network Solutions Free for 30 Days: As the above demonstrates, employment law www.safetinet.com issues relating to swine flu can be very complex, • Managed Network Security and those outlined herein are only the “tip of the • Managed Network Infrastructure Call to Learn More: iceberg.” Accordingly, employers should not rely 1-888-921-2934 on this article as legal advice, but should confer with employment counsel to explore the specific Enjoy Peace of Mind with this circumstances they face, since such issues must new suite of products be assessed on a case-by-case basis. ■ and services customized to the needs of your bank. Francine Esposito, a partner in Day Pitney’s Labor Atlantic Technology Systems and Employment Department, represents a number 386 State Route 94 South Newton, NJ 07860 of banks and regularly speaks at New Jersey Bankers Association conferences. She is able to assist on Providing Professional IT Services to the the above-referenced issues and may be reached at Banking Industry for over 20 Years. [email protected] or at 973-966-8275.

Winter 2010 New Jersey Banker 31 Board Portals 101 By P.J. Schunke ikipedia, the largest online prior to a meeting. Those books aren’t sent best for your company, here are some of the encyclopedia, describes a board until all of the information is compiled. things you should consider: portal as “collaborative software Sometimes, this can be the day before the • The software should be simple and easy thatW allows board directors to securely access meeting, providing little or no time at all to navigate. Keep in mind the computer board documents and collaborate with other for review by the directors, and the books skill level of some of your directors. Con- board members may not include last-minute corrections. vincing them to convert from a traditional electronically.” Their With a portal, information can be posted as board package to an online board package definition is on the it becomes available. Changes can be made can be tough, so the easier to use, the eas- mark, but a board instantly and all directors notified. This offers ier the transition. portal has evolved into directors plenty of opportunities to peruse • Secure and immediate access to up-to-date much more. the books well before the meeting, at their board-related material, packages, minutes, For a growing leisure, wherever they are. loan requests, policies and procedures – number of boards, Portals provide improved security – anything important to your board. P.J. Schunke stacks of briefing no need to mail or e-mail confidential • Archiving of documents for the life of books sent to directors prior to board documents. No need to collect and destroy your bank. meetings have been replaced with a documents after a meeting. No need for • A search feature will help directors check laptop and an Internet connection. With a FedEx package to sit outside a board on past board materials to jog their mem- increasingly mobile executive management member’s house while he or she is on ories, which facilitates review of proposed and geographically dispersed board members vacation. Considering that some boards do policies and other drafts. on the move, a secure online board portal not allow books to be taken off premises at • Communicate using monthly meeting provides the best solution for the timely all, a portal ensures that the documents never comments and a forum area where mem- distribution of confidential information. leave the server. Measures can be put in place bers can post questions, concerns or sim- It provides a comprehensive archive of all to prevent editing, copying and even printing ply bounce ideas off one another in a se- board-related issues including news reports, of documents. Documents can be password cure environment. • Calendar of events for meetings, grand openings, conventions, golf outings, etc. List dates, times, locations and a brief de- The conversion to a board portal… places the scription for each event. focus on the quality of the work, rather than just • A PDF conversion tool, to convert docu- ments from Microsoft products to PDFs getting the work out. on the fly. • Upload capabilities including Word, Excel, PowerPoint and PDF documents, as well as MP3s, for when audio files are required. industry reports, competitive information, protected PDF files, ensuring that even if a • Member directory including photos, con- regular management reports, loan requests, laptop gets stolen, the documents cannot be tact information and committees to which policies, procedures and more. accessed. they belong. In short, online access to confidential Board portals will please auditors as • Secure messaging – send messages se- board information for board members at well. Portals can track and archive user curely within the group or individually by work, at home, or on vacation has replaced information, providing an audit trail for leaving the message on the server or send- paper-based delivery and unsecure email improved accountability and documentation ing it right to an outside email account. distribution. in accordance with the regulatory compliance • Polls and surveys for a comprehensive list The conversion to a board portal shifts requirements of the Sarbanes-Oxley Act. of board opinions. priorities. It places the focus on the quality Auditors can also securely log in to the portal • User permissions and logon trail – able to of the work, rather than just getting the work for external loan reviews, external compliance set permissions for each user drilled down out. A board portal provides a significant reviews and external financial reviews. to a specific document. savings in time, supplies, printing, assembly Board books can sometimes run to 300 • Customizable! Ideally, you want the ability and distribution – meeting preparation is pages. With increased emphasis on being to turn on or off any feature that doesn’t significantly reduced. No need to replace environmentally sound, advertise your work for your board. You want to change updated pages in board books – new portal company as “going green” with a paperless the look and feel – so that it resembles information is instantly up-to-date. Standard solution, and eliminate printing and toner your bank’s marketing standards. Every procedure for most companies is to send costs and help save the environment. bank is different and each has its own advance copies of briefing books to directors When picking a board portal that works needs.

32 New Jersey Banker Winter 2010 • Dedicated support staff – you want to be The Case Against information never completely disappears from able to work with an educated professional Social Media in Banking the Internet. Somebody, somewhere, has a use who will support, train and implement the continued from page 26 for information, and that use may not benefit product. the bank. • Training. For banks, it’s best to offer an “official” Are the rewards of social media worth the • Ease of implementation and guidance. Web site for marketing and general customer risk? Someday they might be. But that day has Getting a traditional board to convert to a service. As for social media, banks should yet to come. ■ paperless system of communicating may not establish a firm policy forbidding employees be an easy task. That’s why it is important to from referencing work details on these sites. John Jaser manages Internet Services and Security choose a company and a product that works Some employees may resist, claiming at Avon, CT-based COCC, Inc., (www.cocc.com), best for your bank; ideally, from a company that details revealed on a social media site a 43-year-old firm specializing in outsourced that understands banks. have little value. But I would counter that information technology and support. In an ever-changing economic environment, connectivity is paramount. Time is money; money drives business. Finding a solution to effectively communicate real-time information may seem impossible, but not anymore. A fully-enabled board portal allows you to focus on your corporate communication without losing focus on the Seeking bottom line. NJBankers recently signed on with FSI for the Director Access board portal. NJBankers Committed board members have found that the product BuSineSS Partner is easy to use after the initial setup and indeed provides the opportunity to view board information on a timely basis, at the board Must be well established and stable member’s convenience and is very valuable yet flexible and innovative. for updating information prior to a board meeting. No conflicts please! For more information on FSI’s Director Access, which provides the key elements outlined in this article, or any of FSI’s other services, please visit us at www. DirectorAccess.com or www.insideFSI.net. We know what you are looking Financial Services, Inc, headquartered for in a business partner. in Glen Rock, NJ, has been in business since 1954. FSI’s commitment to quality As an independent financial services provider for more than a century, services for the banking industry has been Wilmington Trust fully understands the concerns and goals of the banking unparalleled by any other servicer in the community, and we offer a full range of services to our bank clients with no conflicts country. As one of the largest independently of interest. Our goal is to be your strategic partner, acting as an extension of your staff owned solution providers to the banking while providing truly customized services. We’ve been serving community banking industry, FSI provides consistent, quality clients in New Jersey for decades, and we understand the importance of developing service to community banks via a staff of 200- lasting relationships. And, our conflict-free business model means you can be plus professional, experienced individuals. ■ assured that our allegiance is to you. Count on us for: Fixed Income Portfolio Management | Captive Insurance Management entity Management | Custody and Safekeeping | Trust and Agency Services P.J. Schunke is the president of Financial Portfolio Accounting | retirement Plan Services Services, Inc., providing data processing and item processing services for banks nationwide. In business for over 50 years, servicing over 100 clients, FSI offers turnkey solutions that enable you and your bank to concentrate on what you do best – banking. For more FIND ouT More | Chris Monigle 302.636.6244 | Mary Alice Avery 302.636.6127 information, contact Schunke at 201-652-6000 or [email protected]. © 2009 Wilmington Trust Corporation. Affiliates in Arizona, California, Connecticut, Delaware, Florida, Georgia, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Pennsylvania, South Carolina, Vermont, Amsterdam, Cayman Islands, Channel Islands, Dublin, Frankfurt, London, and Luxembourg.

Winter 2010 New Jersey Banker 33 Bank Notes

BANK OF NEW JERSEY as a trustee of the Clark Education Fund, Inc. and New Jersey. He earned a JD at Columbia Bancorp of New Jersey, Inc., the holding In recognition of her community service, she University in 1973. Prior to that, he earned his company for the Bank of New Jersey, has has also received Columbia Bank’s Annual AB in Political Science at Princeton University announced the promotion of Michael Lesler Community Service Award on two occasions. in 1970 where he graduated magna cum laude. to the position of president and COO of the He is married to Assemblywoman Mila Jasey. company and the bank. He will join the board COMMUNITY FIRST BANK of directors of the company and the bank. Peter Schoberl, chairman, president INDUS AMERICAN BANK Lesler had been serving as the executive and CEO of Community First Bank, was Indus American Bank has been approved vice president and CFO of the company and appointed a member of the Raritan Valley for its Small Business Administration (SBA) the bank. Before joining the Bank of New Community College Board of Trustees by the Preferred Lender Participant (PLP) status. As a Jersey, Lesler served as senior vice president Somerset County freeholders. Schoberl is a PLP, Indus can now streamline the procedures of Interchange Capital Company, the wholly former member of the Somerset County Park necessary to provide financial assistance to owned leasing subsidiary of Interchange Bank. Commission’s governing board. The college the small business community. Indus offers He previously served as senior vice president serves Somerset and Hunterdon counties. its small business customers the benefits of and chief financial officer of Bridge View Bank, the new SBA programs created through the based in Englewood Cliffs, NJ. DEPARTMENT OF BANKING American Recovery and Reinvestment Act of AND INSURANCE 2009. Some of these new incentives include BOILING SPRINGS SAVINGS BANK Gov. Jon Corzine named Neil Jasey as the faster loan approvals, reduced loan fees and James Maitland has been named assistant commissioner of the New Jersey Department higher loan guarantees. vice president. Maitland joined Boiling Springs of Banking and Insurance on July 17, 2009. Savings Bank in March 2002 as a computer Jasey worked for Prudential Insurance INVESTORS SAVINGS BANK technician and is currently the Director of Company of America for nearly 30 years, Investors Savings Bank has completed the Information Services. He graduated from beginning in 1975, including service as vice acquisition of six Banco Popular branches William Paterson University with a bachelor of president and general counsel for Prudential located in Clifton, East Orange, Montclair and arts majoring in art. Property and Casualty Company from 1986 Newark. For the first time, Investors will be Marcella Salazar was promoted to assistant to 1990. He also served Prudential as vice serving people and businesses in Newark, the secretary. Salazar began her banking career with president of enterprise planning, running the Garden State’s largest city. The bank also opened Boiling Springs in 1999 as a teller in the Park strategic planning process and conducting its first location in Montclair and expanded its Avenue office. She later became a departmental research for new business development. presence in Clifton by adding two more retail secretary and then an administrative assistant. He completed his Prudential career as vice banking offices. Banco Popular’s branch in Salazar graduated from Beth Israel Nursing president and deputy general counsel. His East Orange will merge with Investors’ East School with a nursing degree. She was a many accomplishments include leading the Orange location, less than a mile away from the registered nurse at Beth Israel Medical Center largest section of Prudential’s corporate law former Banco Popular branch. The branches in New York City. department with 280 employees and a total will remain open during remodeling to ensure budget of $68 million. no interruption of service to customers. COLUMBIA BANK Jasey formerly served his community as Columbia Bank has appointed Sharon president of the board of trustees for Family Reddin as regional manager in charge of the Connections, Inc., a mental health and NEW MILLENNIUM BANK bank’s North Central Region. In her new social service organization that services low- New Millennium Bank helped continue the position, Reddin assumes responsibility income families in Northern New Jersey. chase for a cure for cancer as a sponsor of the for four Columbia Bank branches in Clark, He is also a former chairman of the board of 6th Annual 5K Run/3K Walk to raise funds Colonia, Linden and Woodbridge. trustees of the Cristo Rey Model High School for The Cancer Institute of New Jersey. The Reddin joined Columbia Bank in 1996 as a in Newark, which is supported by various bank donated $1,175 to the institute toward manager of the Clark branch. In 1998, she was corporate sponsors, the Bill and Melinda Gates its ongoing research, treatment and prevention appointed a financial services officer. Prior Foundation and the Newark Archdiocese. The efforts. New Millennium Bank employees to that, she served as a branch manager for school, which opened in August 2007, serves also attended. Throughout October, the bank Peapack-Gladstone Bank in Mendham. low income and minority youth. donated $10 to The Cancer Institute for every Reddin serves as president of the Clark His legal career began as an associate in new transaction account opened at its new Chamber of Commerce, as a board member private practice in New York. He was admitted Franklin Township branch, which opened in of the Gateway Chamber of Commerce and to the practice of law in 1974 in New York October. The Cancer Institute of New Jersey

34 New Jersey Banker Winter 2010 Donna M. Hamilton Elisa Winter Frank Jessica Jaeger Michael Lesler Neil Jasey Neill A. Schreyer Peter Schoberl Sharon Reddin Holben Beardsworth is a research and treatment center in New Winter Holben, an award-winning designer responsibilities include approving commercial Brunswick dedicated to intensive research to for the financial services industry, has more loans, analyzing potential loan markets to advance cancer medicine and discover new than ten years of experience in design, branding develop prospects for loans, and meeting ways to control, cure and prevent cancer. and merchandising, brand strategy and identity growth targets for the lending portfolio. development. Winter Holben will specialize in A 30-year veteran in the banking industry NVE BANK collaborative projects in which the full range of with strong credit skills and management Jessica Jaeger has been promoted to branch branding and design elements and disciplines experience, Schreyer most recently served as manager of the NVE Hillsdale Office. She joined come together to create an integrated retail senior vice president and chief loan officer NVE more than seven years ago as a teller, environment. Prior to joining Studio 109 at Noble Community Bank, which merged steadily progressing to her current position. Designs, Beardsworth and Winter Holben with Highlands State Bank. Prior to that, he A graduate of Bergen County Community were both employed by a nationally recognized worked at The Bank of New York for 22 years, College, she most recently was assistant branch branding and retail communications firm that in commercial and real estate underwriting, manager of the Bergenfield office. specialized in the financial services industry. credit administration, credit risk management, strategic planning and business development. PARENTEBEARD LLC RIKER DANZIG He launched his banking career in 1979 as Two of the Top 40 accounting and consulting Riker Danzig Scherer Hyland & Perretti branch manager for Midlantic Bank. He holds firms in the United States – Parente Randolph LLP announced that Natasha Ziabkina, a bachelor’s degree in Business Administration LLC and Beard Miller Company LLP – have formerly a partner at Baker & McKenzie, has from Rutgers University and an MBA in officially merged to become ParenteBeard, LLC. joined the firm’s corporate practice group as a Finance from Fairleigh Dickinson University. The merger has created one of the top regional partner, resident in the firm’s New York office. SussexBank also appointed Michael J. certified public accounting firms in the Mid She brings extensive experience in domestic Gullifer as VP, commercial loan officer. He Atlantic, with over 170 partners and more than and cross-border mergers and acquisitions, is also based at the bank’s Loan Department 1,200 team members throughout Pennsylvania, capital markets, corporate finance, public and on Route 23 in Franklin. Among his duties, New York, New Jersey, Maryland, Delaware and private securities transactions, and multi- he will be responsible for loan growth, credit Texas. ParenteBeard LLC was officially formed country corporate restructuring. quality and credit performance. With over 28 on Oct. 1, 2009, following approval from the Ziabkina has established a successful years of experience in the banking industry, respective firms. Headquartered in Philadelphia, practice representing companies and he most recently served as VP, commercial the new firm will provide additional resources individuals in emerging markets, particularly lending for Lakeland Bank/The Newton Trust to meet the needs of new and existing clients. in the Russian Federation and other regions Company. Prior to that, he was regional It is ranked among the Top 20 firms in the U.S. in the Commonwealth of Independent States, service manager at The Bank of New York, and is an independent member of Baker Tilly seeking investment or pursuing other business overseeing all operations for 28 branches. International. goals in the U.S. Ziabkina, whose native He also served in various locations as branch language is Russian, received her JD from manager at National Community Bank of New PWCAMPBELL/STUDIO 109 DESIGNS, LLC New York University School of Law in 1998, Jersey and The Bank of New York. He holds Studio 109 Designs, LLC, a wholly-owned where she was the editor and executive board an AA in Business Administration from the subsidiary of PWCampbell Contracting, recently member of the Journal of International Law & County College of Morris and attended ABA appointed Frank Beardsworth as executive vice Politics, and her BA, magna cum laude, from Commercial Lending School. president of retail communications and Elisa Hunter College in 1995. She is admitted to Winter Holben as creative director. practice in New York. TD BANK Beardsworth has more than ten years of TD Bank named Mary Jane “Mimi” experience in the financial services industry SUSSEXBANK McDonough a vice president/senior loan with large-scale, regional to national rollouts for SussexBank announced the appointment officer in commercial lending for central New merchandising, branding and environmental of Neill A. Schreyer as senior vice president Jersey. McDonough will continue to develop graphics. He will be responsible for overseeing and commercial lending officer. Based at the commercial business among commercial and all operations and strategies for PWCampbell’s bank’s lending offices on Route 23 in Franklin, branding and merchandising products and Schreyer is responsible for managing a portfolio continued on page 38 services. of commercial loans for SussexBank. His

Winter 2010 New Jersey Banker 35 Bank Shots

JAPANESE BANKERS VISIT COMMUNITY BANK – Garden State Community Bank hosted a delegation of Japanese bankers in its Cranford office, who had come to the U.S. to learn about the successes of local, community banks in New Jersey. Pictured from left to right, front: Janet Grotto, first vice FRANKLIN HOUSE OPENS – The much-awaited Franklin House is ready for residents. Franklin House president and regional manager; Fay Hamid, senior vice president and retail banking regional recently opened the doors to its first tenants amid much fanfare at the new community on Mill Street executive and Bethany Fraschilla, retail banking officer and branch manager. in Franklin Borough. SussexBank is proud to have played a key role in sponsoring a subsidy grant from the Federal Home Bank of New York, thereby making available 94 low- to moderate -income housing units for area senior residents. Sponsored by the Episcopal Community Development, Inc., in cooperation with the NJ Housing and Mortgage Finance Agency, Franklin House Senior Apartments offers residents 55 years of age and older modern, independent living in a serene, natural setting, in close proximity to a variety of municipal and retail services. Pictured inside a model apartment are several key members of the team that helped open the doors to this long-awaited senior housing facility. Left to right are: SussexBank President and CEO Donald Kovach, Franklin Mayor Paul Crowley, former NJ State Senator Robert E. Littell, CFO Randy Steinberg of BEBP Development Co., NJ State Senator Steven V. Oroho, Jerry Haizel of Newark Episcopal Community Development, Inc., and SussexBancorp Board Director Richard Branca. TEAMWORK – Teamwork was a staple of life in the military for former Marine Corps Major Richard Vaill, and now he is bringing that mindset to New Jersey, where he hosted the inaugural meeting of the Veteran’s Business Association in conjunction with the Gateway Regional Chamber of Commerce. Vaill is the business development officer at The Provident Bank and created the VBA to help make all veterans working throughout New Jersey feel comfortable and connected. From left to right are: Marine Corps Lt. Col. Chris Norris; former Marine Capt. Tom Koenig; event organizer and former Marine Corps Major Richard Vaill; and former Army Capt. John Howlett. FRIDAY JEAN DAY SUPPORTS JUVENILE DIABETES RESEARCH – Lakeland Bank presented a donation of $2,110 to the Juvenile 125TH ANNIVERSARY SWEEPSTAKES – Anna Marshman (left), Diabetes Research Foundation. This contribution is a result assistant vice president and branch manager of Kearny Federal of a bank-wide employee program where employees donated Savings and Eric Kesselman, vice president and director of $10 each during the month of September and in turn were marketing (right) present first prize sweepstakes winner Daniel permitted to wear jeans on Fridays. From left to right: Tom McShane with a 46-inch flat screen HD TV as part of the Post, vice president and physical security officer at Lakeland bank’s 125th Anniversary Sweepstakes. A bank-wide Customer Bank and co-captain of the Lakeland Bank JDRF Walk Team; Appreciation Day, including refreshments and giveaways at Doug Rouse, executive director at JDRF’s Northern NJ/Rockland all Kearny Federal Savings retail branch sites, ended the County Chapter; and Thomas J. Shara, president and CEO at anniversary celebration. Lakeland Bank.

FEEDING THE HUNGRY – All five of Millington Savings Bank’s locations served as drop-off points for the annual Bernards Township Chamber of Commerce Thanksgiving Food Drive. Pictured during the recent kick-off ceremony at Millington Savings Bank headquarters in Millington are MSB employees CERTIFICATES FOR SERVICE – NJBankers visited Roma Bank to present certificates for years of service to Roma Bank employees. (from left to right) Susan Schumann, vice president of marketing Pictured from left to right are: John E. McWeeney, Jr., co-president and co-CEO, NJBankers; James R. Silkensen, co-president and and security; Janet Hedden, assistant branch manager; Beth co-CEO, NJBankers; Dawn Darrah (20 years), Pam Craig (25 years), Barry Zadworny (20 years), Maurice Perilli, chairman, Roma Bank Korkuch, assistant treasurer and bank manager; and Susan and Peter Inverso, president/CEO, Roma Bank. Absent from the photo is Madhu Kotta (20 years). Kirchheim, administrative assistant.

36 New Jersey Banker Winter 2010 TWO RIVER COMMUNITY BANK SPONSORS BLOOD DRIVE – William D. Moss, president and CEO of Two River Community Bank, noted that nearly 50 area residents took time to participate in a blood drive GOV. CORZINE ADDRESSES LOCAL BUSINESS OWNERS – North Jersey Community Bank hosted the held at three of the bank’s branches to raise awareness among bank customers of the critical need governor and local New Jersey business men and women for a small business summit. The governor for blood donations in central New Jersey. The drive benefited Central Jersey Blood Center. Pictured praised North Jersey Community Bank for its sound business model and initiatives designed to from left to right are: Natalie Kadash, volunteer coordinator for Central Jersey Blood Center; Jodi strengthen small business struggling in the down economy, and addressed the questions and Richardelli, vice president and branch manager of the Two River Middletown office; Roseann Mango, concerns of local small business owners that were in attendance. From left to right are Joseph senior vice president and branch administrator and William D. Moss, president and CEO of Two River Parisi, mayor of Englewood Cliffs; Tom DeMedici, president of NJCB; Gov. Jon Corzine and Frank Community Bank. Sorrentino, III, chairman and CEO of NJCB.

HISPANIC HERITAGE MONTH CELEBRATION – Camelia M. Valdes, Passaic County Prosecutor, was featured as the guest speaker at the Hispanic Heritage Month Luncheon hosted by the Diversity FOOD BANKS NEED HELP – The OceanFirst Foundation presented a check for $25,000 to the FoodBank of Monmouth and Ocean counties Committee at Morristown-based law firm Riker Danzig Scherer during the recent Hunger Awareness Run and Walk. Pictured from left to right are Douglas H. Fisher, secretary of agriculture, state Hyland & Perretti LLP. Valdes is the first Latina county prosecutor of New Jersey; Regina Ruggieri, Spring Lake Heights branch manager, OceanFirst Bank; Michael O’Brien, senior vice president and in the state of New Jersey, the first woman prosecutor in Passaic trust officer, OceanFirst Bank; Katherine Durante, executive director, OceanFirst Foundation; David Wintrode, director, OceanFirst County and the first lead prosecutor of Dominican ancestry in Foundation; and Susan Kelly, executive director, FoodBank of Monmouth and Ocean counties. the United States.

TEACHING A VALUABLE LESSON – Columbia Bank recently hosted a “Financial Literacy Day” at the Hawthorne Boys & Girls Club. Designed to teach basic money management skills, the special program was presented in three age levels – kindergarten through grade 3, grades 4 and 5 and grades 6 through 8. Shown with some of the students participating in the program are (from left) Jeri Brandes, director of administration and finance for the Hawthorne Boys and Girls Club; Margaret Hochkepple, assistant branch manager at the Columbia Bank branch in Hawthorne, and Yasmen Bagh, Columbia’s head teller.

Winter 2010 New Jersey Banker 37 Bank Notes Marlton. Kimelman is a 2002 graduate of responsibilities with Sovereign Bank Wholesale continued from page 35 Rider University in Lawrenceville, NJ. Mortgage, Greenpoint Mortgage and United industrial companies in Union and Eastern Joseph T. DiRosa has joined TD Bank as Guaranty (a division of AIG). Hamilton also Essex counties. She joined TD Bank in 2002 and a commercial portfolio loan officer in the possesses more than 15 years of retail banking has more than 25 years of experience in lending, bank’s regional commercial lending group experience. finance and banking. She previously served in Mahwah. He is responsible for providing as a senior vice president in middle market a range of lending services to commercial WELLS FARGO PRIVATE BANK lending at Allied Irish Banks in Baltimore. business customers throughout the region. Wells Fargo Private Bank has appointed She graduated from Towson University in DiRosa has 27 years of banking and lending John Garone as regional manager for Northern Baltimore in 1977 with degrees in economics experience. Prior to joining TD Bank, he served New Jersey based in Summit. Garone previously and Spanish. as a relationship manager/commercial lending served as the regional director for Wachovia TD Bank also named Courtney L. Bongard officer at JPMorgan Chase and at the Bank of Wealth Management in the region. He was manager of its Pitman, NJ store. Bongard is New York. DiRosa received an MBA from previously managing director for The Bank of responsible for new business development, Fairleigh Dickinson University in 1986 and an New York/Mellon. He received a bachelor’s consumer lending, and managing personnel undergraduate degree from William Paterson degree from Colgate University. and day-to-day operations. She joined TD University in 1982. Wells Fargo Private Bank also announced Bank in 2004 and has 12 years in banking. She the appointment of Brian LaGrua as regional previously served at TD Bank as the assistant TWO RIVER COMMUNITY BANK manager for Southern New Jersey based in Red store manager in Harbor Plaza. Donna M. Hamilton has joined Two River Bank. The region also includes Princeton and Stacy G. Kimelman was named manager Community Bank as vice president of the Cherry Hill. He was previously the regional of the TD Bank store in Marlton. She is bank’s Mortgage Banking and Retail Lending brokerage manager for the Summit/West New responsible for new business development, Division. Prior to joining Two River, Hamilton Jersey region. consumer lending and managing personnel served as vice president and regional sales Both Garone and LaGrua will oversee and day-to-day operations at the store. manager (Northeast Region) of Bear Stearns all wealth management functions for the region, Kimelman joined TD Bank in 2005 and has Residential Mortgage Corp. in Scottsdale, AZ. including private banking, credit, investment five years in banking, prevously serving at Her professional background also includes management, trust and estate services, and TD Bank as the assistant store manager in management and business development brokerage services, in their respective region. ■

38 New Jersey Banker Winter 2010 AT THE END OF THE DAY, YOU WANT RESULTS.

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