Maryland Banker 4Q 2014

FOURTH QUARTER 2014

Appetite for

Risk FHLB ATLANTA RELEASES TEMPLATES TO AID BANKS’ RISK CALCULATIONS

THE OFFICIAL PUBLICATION OF THE MARYLAND BANKERS ASSOCIATION

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CHAIRMAN John A. Scaldara, Jr. Chairman and CEO The Columbia Bank

FOURTH QUARTER 2014

CHAIRMAN-ELECT Daniel J. Schrider President and CEO Sandy Spring Bank

Appetite for

Risk FHLB ATLANTA RELEASES TEMPLATES TO AID BANKS’ RISK CALCULATIONS

VICE CHAIRMAN George D. Swygert, Jr. Regional Executive Capital One, N.A.

THE OFFICIAL PUBLICATION OF THE MARYLAND BANKERS ASSOCIATION

PAST CHAIRMAN Robert A. DeAlmeida President and CEO Hamilton Bank

186 Duke of Gloucester St. Annapolis, MD 21401 410-269-5977 / 800-327-5977 www.mdbankers.com

President & CEO Kathleen M. Murphy

Contents Appetite for

Risk

Maryland Bankers Association

Publication Editor Cynthia L. Gentilcore Maryland Bankers Association

Board of Directors Judy Balloff Director, Enterprise Client Coverage, Bank of America Calvin E. Barker, Jr. Regional President-Baltimore Metro Region, BB&T George J. Behr, Jr. President and CEO, Arundel Federal Savings Bank Andrew M. Bertamini Regional President, Maryland Market, Wells Fargo Bank, N.A.

12

James R. Bosley, Jr. President and CEO, Farmers & Merchants Bank Kenneth C. Cook President and Vice Chairman of the Board, Revere Bank Ralph W. Emerson, Jr. Senior Vice President, M&T Bank Raymond W. Hamm, Jr. Market Executive Greater Maryland, Executive Vice President, PNC Bank, N.A. Michael E. Hough CEO of Maryland Division, Susquehanna Bank Kim Liddell Chairman, President & CEO, The National Bank of Cambridge Michael G. Livingston President and CEO, The Bank of Glen Burnie Carissa L. Rodeheaver President and CFO, First United Bank & Trust Raymond M. Thompson President and CEO, Calvin B. Taylor Banking Company J. Scott Wilfong Chairman, President and CEO, SunTrust, Greater Washington/ Maryland, SunTrust Bank

message from the Chairman ERM – We’re in this Together

5

message from the president Cultivating Tomorrow’s Leaders Today

6

Congratulations to the Maryland Banking School Class of 2014!

8

MBA Member Banks in the Driver’s Seat with MBA Benefits Alliance

11

Appetite for Risk

12

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used shoe drive brings new shoes To Maryland Families 16

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17

18

DEPARTMENTS: news and notes 18 professional development calendar 22

19 Fourth Quarter 2014 | 3

Message from the Chairman JOHN A. SCALDARA, JR. | MBA CHAIRMAN

CHAIRMAN & CEO

THE COLUMBIA BANK

ERM – We’re in this Together

E

nterprise risk management used to focus primarily on credit risk and corresponding reserves and on interest rate risk as the financial world sought to develop positional short-term and long-term strategies in anticipation of rising rates. Today, ERM has expanded to focus on closer-to-home operational risks. These include fraud, protection of customer privacy in the age of data breaches, and the increasing threats to mobile banking, the latter most often posed by an explosion of apps that cybercriminals and other hackers use as a conveyor for concealed malware.

Stress testing, which evaluates the risk exposure of an institution and ultimately its viability during a macroeconomic crisis, may be moving from a big-bank standard to a concern for smaller institutions. In the early years of the Great Recession, some larger banks’ risk profiles and asset value problems received more media attention than those of smaller institutions, though it was evident that some smaller institutions also took excessive risk.

Regulators required larger banks’ management to develop stress test criteria and also to evaluate liquidity using criteria of Basel II and then Basel III. Today, I’ve heard from management of many smaller banks that they expect stress testing requirements to trickle down to them, and they question where that trend may be heading.

Another hot risk-related topic the regulators continue to focus on is the Bank Secrecy Act, which was originally designed to root out money-laundering operations. The common concern in the industry is that banks have become the primary weapon of law enforcement to attack these illegal activities globally and that the expectations of banks are unreasonably high and forcing significant upgrades to controls. As a result, banks without the appropriate safeguards in place may face enforcement actions – or worse.

At our bank, we started the process with a risk appetite statement, similar to a template developed by the Federal Home Loan Bank of Atlanta. That template is tailored

to community banks, to help management and boards of directors determine exactly how much exposure to risk that leadership is willing to tolerate while executing its strategic plan (see cover story, page 12).

One of my top priorities this year focuses on enterprise risk management. We have created an MBA steering committee to guide us as we identify existing MBA programs and services that are most beneficial to our members as you fine-tune your risk strategies. As important, we want to determine what more we can do to help.

Additionally, the steering committee will be a place where risk management professionals can share information and

At our bank, we started the process with a risk appetite statement, similar to a template developed by the Federal Home Loan Bank of Atlanta.

That template is tailored to community banks, to help management and boards of directors determine exactly how much exposure to risk that leadership is willing to tolerate while executing its strategic plan. assist each other if they encounter an issue, and to share their experiences of dealing with these issues.

While banks’ risk management budgets vary widely by institution, the risk faced by all is real. I do not regard collaborative effort with respect to enterprise risk management as a threat to an individual bank’s competitiveness or as a violation of confidentiality. With so many adverse and unpredictable risk factors both inside and outside our organizations, the industry is in this together. ■ John Scaldara is the chairman of the Maryland Bankers Association. Reach him at jscaldara@thecolumbiabank.com.

Fourth Quarter 2014 | 5

Message from the President KATHLEEN M. MURPHY | PRESIDENT & CEO

MARYLAND BANKERS ASSOCIATION

Cultivating Tomorrow’s Leaders Today

A

s I prepared to write this column about how Maryland’s emerging banking leaders can connect with one another and with the MBA, I decided to do a Google search with a simple question: “What is an ‘emerging leader?’”

While there is no clear-cut definition of “emerging leader,” I gained a better appreciation for the variety of organizations which develop tomorrow’s leaders and the types of programs they offer.

If you are a manager of people who wants to become more effective, an opinion leader in your community, someone who aspires to move to the next level, an individual who has been tapped by your leadership to take on a broader role, a person who has personal and professional goals and wants to achieve them, you are an emerging leader. Whether you are an emerging leader or you are a bank CEO who sees tremendous leadership potential on your team, the Maryland Bankers Association offers a variety of opportunities which cultivate tomorrow’s leaders today.

Take a look at what’s available for emerging leaders in the banking industry:

The Maryland Banking School In August, we concluded the 39th year of MBA’s flagship leadership development program, and plans are underway to celebrate the 40th anniversary of The Maryland Banking School. Held at the University of Maryland, this three-year residence program consistently receives top ratings from graduates who say they are better prepared to anticipate and respond to what lies ahead for their banks and the industry because of the insights they have gained from fellow students and from the first-rate instructors, many of whom also teach at the prestigious Stonier Graduate School of Banking. Upon completion of a computer simulation where students “run” banks, graduates tell us that they have a much greater appreciation for what their CEOs and executive management teams do to make their banks successful.

Seniors are challenged to undertake a “capstone” project, which incorporates everything they have learned through the three-year session. The projects can analyze a product or practice at their bank; investigate a new idea to improve the 6 | The Maryland Banker

bank’s bottom line; or entail a SWOT analysis, just to name a few. Many of today’s Maryland bank CEOs graduated from the Maryland Banking School and made lifelong colleagues and friends. We encourage new students and alumni to be a part of the 40th anniversary celebration, Aug. 3–7, 2015.

BankNext – Exploring the Future of Banking Join us Wednesday, November 5, 2014, for the Mid-Atlantic’s most exciting banking conference. This action-packed day at the BWI Marriott brings together hundreds of bankers, an exhibit hall of innovative industry solution providers and invaluable and thought-provoking educational professional development sessions – all of which are exploring what’s next in banking. It’s the perfect venue for emerging leaders who want to stay up on the latest technology, talk with their peers about what’s working and stay connected. MBA’s Annual Awards Luncheon celebrates the Next Leaders in Banking, those under 50 years of age who are nominated by their institutions for the impact they are making in their banks and their communities.

The 11th annual Financial Education Awards are also presented to banks for their outstanding efforts to bring financial education to students and adults. A special CEO and C-level breakfast will explore what’s next in technology and enterprise risk management. And MBA’s Council of Professional Women in Banking and Finance convene for a quarterly networking and educational program. Join us!

Council of Professional Women in Banking and Finance Founded in 2012, this exciting Council brings together women leaders in banking and finance as well as those who are committed to helping women leaders succeed.

Its mission is to help women achieve their personal and professional goals through growth, opportunity, leadership and development. Networking events are offered throughout the year, culminating at the Council’s Annual Conference on the first Thursday of May. This is a fantastic forum for emerging women leaders to connect with others in the industry, hear success stories and reenergize for the opportunities ahead. Mark your calendar for Thursday, May 7, 2015.

Public Policy – Advocacy Is Essential No one makes a better advocate for the Maryland banking industry than those who contribute their time and talents to the industry. Emerging leaders should be keenly focused on the role that they can serve in connecting with and educating policy makers in Maryland and in Washington, D.C., on the important role of banking. The MBA offers several ways to do this, including the Annual Day in Annapolis, which takes place in the Maryland Statehouse during the legislative session, as well as the MBA’s Washington Visit, held in D.C. each year in the fall. The two national Associations with which MBA is affiliated – the American Bankers Association and the Independent Community Bankers of America – also convene bankers and state banker associations from across the country for federal policy summits in the spring annually.

With the upcoming elections in November, the 2015 legislative session in Annapolis will be an exciting time as we develop relationships with new legislators and strengthen relationships with those who are returning. A special breakfast will be held to honor the new legislators and to give our members a chance to get to know them. Look for information in the Maryland Weekly each Wednesday on these and other advocacy opportunities.

This column provides just a snapshot of opportunities available through your trade association to help emerging banking leaders grow and develop. Let us know where your interests are and we can find the right venue for you.

■ It’s my honor to serve this great industry. Please contact me at any time to discuss issues of importance to you at kmurphy@mdbankers.com or 443-837-1601.

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Fourth Quarter 2014 | 7

After more than two years of writing papers, completing projects, and three separate weeks of intensive in-residence work at the University of Maryland’s University College, seniors celebrate by striking a “power pose.”

Congratulations to the Maryland Banking School Class of 2014!

The Lilian T. Moffat Award, the top honor for Maryland Banking School, went to David Koch from Sandy Spring Bank. Pictured from left: Pat Holle, executive director of the school; Dan Schrider, MBA chairman-elect and president & CEO, Sandy Spring Bank; David Koch; and Kathleen Murphy, president & CEO, Maryland Bankers Association.

Top honors went to Pam Lipscomb from First United Bank & Trust for her consumer education work, winning for both Most Consumers Reached and Most Presentations. Pam did a total of 56 presentations and reached 863 consumers.

In a first-ever tie for the Board of Trustees Award, Pam Lipscomb, First United Bank & Trust, and Tom Herpel, Arundel Federal Savings Bank.

O

n Aug. 8, 2014, at the University of Maryland University College, 30 bankers joined the ranks of Maryland Banking School Alumni. Students completed a rigorous three-year program, including a one week in residence each summer and interim written projects. Core disciplines include technology and bank operations, leadership and management, economics and bank financial management, credit, sales and marketing and more. The program culminates in the third year with a bank management computer simulation where the students form “banks” and make management decisions, learning the practical aspects of loans, securities, investments, deposits, funding sources and capital. The “bank” management teams presented their results to the “shareholders” and “board of directors” for review.

■ 8 | The Maryland Banker

All classes join together with Maryland Banking School alumni for a special continuing education session. This year featured speakers from Goodwin Procter on various hot topics including cyber security, social media legal concerns, regulatory issues, and more.

CONGRATULATIONS TO THE GRADUATES OF THE CLASS OF 2014 AND THEIR FINANCIAL INSTITUTIONS FOR INVESTING IN THE INDUSTRY’S FUTURE LEADERS! Cathy Alexander Frederick County Bank Jon-Erik Alvestad* Old Line Bank Candace M. Bageant Susquehanna Bank Todd Bear* BlueRidge Bank Jamila Braithwaite Capital One, N.A. Karen L. Carre* The Bank of Glen Burnie Michelle Coates* Sandy Spring Bank Kelly E. Dickerson* CNB Timothy Foster* EagleBank Sandra Galan Community Bank of the Chesapeake Kathlene Hand* The Columbia Bank Dorian Henry-Jones Federal Reserve Bank of Richmond Thomas N. Herpel* Arundel Federal Savings Bank Homer V. Hervey, Jr.* OBA Bank Stacy Horst** United Bank

David Koch* Sandy Spring Bank Elizabeth Kramer The National Bank of Cambridge Pamela J. Lipscomb* First United Bank & Trust Laura Long Old Line Bank Kyle Morgan Mercantile Processing, Inc. Julia A. Morris* CNB Patricia S. Murchake The Bank of Glen Burnie Carl E. Pickens* Sandy Spring Bank Timothy Rozalski* Howard Bank Brenda Shane* Susquehanna Bank Crystal Stenhouse NBRS Financial Bank Angela Stinson Federal Reserve Bank of Richmond Karen Turner The Bank of Delmarva Victoria L. Warren Hamilton Bank Kimberly Wyre* Harford Bank

*Denotes student graduating w/ honors **Class President

In one of many traditions at the Maryland Banking School, seniors gather on their last day of classes for a photo in the class shirts.

Seniors gather for one last group photo with their new diplomas.

In their final year at Maryland Banking School, seniors work on a bank simulation exercise, BankExec, where they develop a strategy to compete in an economic environment against their peers in other “banks.” From the left: Sandy Galan, Community Bank of the Chesapeake; Todd Bear, BlueRidge Bank; Elizabeth Kramer, The National Bank of Cambridge; Vickie Warren, Hamilton Bank; and Tim Foster, EagleBank.

THANK YOU TO OUR SPONSORING INSTITUTIONS: Arundel Federal Savings Bank Bank of Ocean City BB&T BlueRidge Bank Calvin B. Taylor Banking Co. Capital One Chesapeake Bank of Maryland Chesapeake Bank & Trust CNB Community Bank of the Chesapeake EagleBank Easton Bank & Trust Co. Federal Reserve Bank of Richmond

First United Bank & Trust Frederick County Bank Hamilton Bank Harford Bank Howard Bank M&T Bank Mercantile Processing, Inc. Middletown Valley Bank NBRS Financial Bank OBA Bank Old Line Bank PNC Bank Provident State Bank

Queenstown Bank of Maryland Rosedale Federal Savings & Loan Association Sandy Spring Bank Shore Bank Susquehanna Bank The Bank of Delmarva The Bank of Glen Burnie The Columbia Bank The Farmers Bank of Willards The National Bank of Cambridge The Peoples Bank United Bank West Town Savings Bank

Fourth Quarter 2014 | 9

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■

Fourth Quarter 2014 | 11

Appetite for

Risk

FHLB ATLANTA RELEASES TEMPLATES TO AID BANKS’ RISK CALCULATIONS Just as financial advisors ask new clients about their financial goals and their risk tolerance, banks must evaluate their institutions’ own goals, risk appetite and security from external threats. If financial institutions wait until a setback occurs, it’s too late. Since 2007, the banking industry’s goal has been to stay ahead of “too late” while maximizing performance. Not an easy task when low rates of return are coupled with increased regulatory oversight and associated costs and new reports of cybersecurity breaches grow by the day. Despite the growing challenges, the Federal Home Loan Bank of Atlanta (FHLBank Atlanta) is one financial institution that has plans in place to be ahead of these risks.

12 | The Maryland Banker

BY CHRISTINA P. O’NEILL

Enterprise Risk Management Since even before the 2008 financial crisis, FHLBank Atlanta has taken a proactive approach to managing risks by evaluating and implementing new ways to effectively and efficiently harness and communicate risk issues into a sustainable framework, with the knowledge that a comprehensive plan would take years.

FHLBank Atlanta’s territory includes Maryland and Washington D.C., as well as Florida, one of the country’s hardest-hit states.

Over a six-month period, FHLBank Atlanta developed an internal risk appetite statement and report, which would serve as the basis for its Enterprise Risk Management (ERM) framework.

The success of FHLBank Atlanta’s Risk Appetite Report led CEO Wes McMullan to conclude that providing a prototype template of this Risk Appetite Report, at no cost for community banks, could help FHLBank Atlanta’s members with their initiatives in building out an ERM framework. (The template is available upon request by emailing Ken Yoo at kyoo@fhlbatl.com.)

“The good thing about it is, you don’t have to reinvent the wheel,” says Yoo. “Most banks already have solid information about their most significant risks, through risk assessments, risk management policies, risk limits and target thresholds. On the goal side, they have strategic plans, capital plans and incentive compensation plans, which reflect how much risk they are willing to take versus how much return they expect to make. The risk appetite statement and report just combine all these statements into one consolidated dashboard so you can see how the whole enterprise is managing risk versus return in a very easyto-read format,” he says.

FHLBank Atlanta conducted surveys with its management and board to determine the major risk categories to be included in the risk appetite

Risk Appetite Report As of March 2013

Sample Template Risk Level

Risk Category

Current

Capital Adequacy

Market Risk / Earnings

Market Risk / Earnings

Credit Risk (Concentration)

Credit Risk (Concentration)

Liquidity

Liquidity

Compliance / Regulatory

Compliance / Regulatory

Reputation/Strategic

Reputation/Strategic

Operational Risk

Zero

Texas Ratio 120.0

12.0

9.0

90.0

9.0

6.0

60.0

6.0

3.0

30.0

2011Q2

2011Q3

All Banks (Avg)

2011Q4

0.0

2012Q1

Focus Group (Avg)

3.0

2011Q2

2011Q3

All Banks (Avg)

Loan Loss Reserves / Gross Loans (%)

2011Q4

0.0

2012Q1

2011Q2

Focus Group (Avg)

Net Non-Core Funding Dependence (%)

20.0

3.0

15.0

150.0

2.0

10.0

100.0

1.0

5.0

2011Q2

2011Q3

All Banks (Avg)

2011Q4

2012Q1

0.0

Focus Group (Avg)

Sample Template

2011Q3

2011Q4

All Banks (Avg)

4.0

0.0

High

Moderate

NPAs / Assets (%)

12.0

0.0

Low

Operational Risk

Regulatory Leverage Ratio (%)

2012Q1

Focus Group (Avg)

Efficiency Ratio (%)

200.0

50.0

2011Q2

2011Q3

All Banks (Avg)

2011Q4

0.0

2012Q1

2011Q2

Focus Group (Avg)

2011Q3

2011Q4

All Banks (Avg)

2012Q1

Focus Group (Avg)

Risk Appetite Key Risk Indicators as of March 2013

Risk Categories 1. Capital Adequacy

1.a.

1.b.

1.c.

1.d.

Risk Appetite Levels

Risk Appetite Categories

Previous

Capital Adequacy

Key Risk Indicators: Focus Group vs. All Banks

The Maryland Banker spoke with FHLBank Atlanta’s chief risk officer, Ken Yoo, and chief information officer, Robert Bennett, to discuss the lessons Maryland bankers can apply to their institutions.

Achieve satisfactory CAMELS ratings for Capital Adequacy Maintain Total Equity / Total Assets within acceptable limits (%) Maintain capital ratios above regulatory capital requirements Maintain Leverage Ratio within acceptable levels

2. Market Risk / Earnings

2.a.

2.b.

2.c.

2.d.

2.e.

2.f.

Achieve satisfactory CAMELS ratings for Sensitivity to Market Risk Maintain Duration Gap above acceptable levels with up/down 100, 200, 300 bps rate shocks Maintain EVE above acceptable levels with up/down 100, 200, 300 bps rate shocks Maintain Interest Expense/ Avg. Assets within acceptable limits (%) Rate-sensitive Assets/Assets (%) Rate-sensitive Liabilities/Assets (%)

3.a.

3.b.

3.c.

3.d.

3.e.

3.f.

3.g.

Achieve satisfactory CAMELS ratings for Asset Quality Maintain NPA's (Non-Performing Assets) / Assets within acceptable level (%) Maintain NPL's (Non-Performing Loans) / Loans within acceptable level (%) Maintain ALLL within acceptable level Maintain Commercial Real Estate (CRE) Loans / Total RBC within acceptable level (%) Maintain Residential 1-4 within limits to RBC (%) Maintain C&I within limits to RBC (%)

Internal Sources

Current Level

Previous Level

Risk Trend

Board Oversight

Risk Appetite Level Definitions Zero Not willing to accept risks under any circumstances

Low Not willing to accept risks in most circumstances

Moderate

Willing to accept risks in certain circumstances

High Willing to accept risks in most circumstances

3. Credit Risk (Concentration)

4. Liquidity

4.a.

4.b.

4.c.

4.d.

4.e.

4.f.

Achieve satisfactory CAMELS ratings for Liquidity Maintain satisfactory Net Non-Core Funding Dependence (%) Maintain satisfactory Net Short-Term Liabilities / Assets (%) Maintain satisfactory FHLB funding availability Maintain acceptable liquidity ratios (%) Maintain acceptable levels of pledged securities

5.a.

5.b.

5.c.

5.d.

5.e.

5.f.

Achieve a satisfactory exam report Number of Internal audit reports less than satisfactory (%) Number of external audit reports less than satisfactory Number of customer complaints Number of new or proposed regulations or legislation Minimize Bank Secrecy Act / Anti-Money Laundering related losses ($000s)

6.a.

6.b.

6.c.

6.d.

6.e.

6.f.

Achieve satisfactory CAMELS ratings for Management Number of active litigation matters Community Reinvestment Act activities Tone of news reports (positive/negative) Succession planning in place for senior management / key personnel (%) Achievement of strategic goals

7.a.

7.b.

7.c.

7.d.

7.e.

7.f.

Number of material weaknesses Maintain acceptable level of operational losses ($000s) Maintain high level of critical system availability (%) Maintain adequate insurance coverage (e.g. flood / hazard) (%) Maintain optimal level of employee headcount (%) Minimize confidential data breaches

5. Compliance / Regulatory

6. Reputation/Strategic

7. Operational Risk

framework. They held weekly sessions over a six-month period with their senior management team to specifically address which risk metrics to include and the specific thresholds they wanted to manage those risk metrics within, and came up with an internal Excel-based template that would serve as the basis for their risk appetite report that includes nine major risk categories.

Once key risk indicators were identified, risk-tolerance indicators were divided into red, yellow and green (see chart on next page).

FHLBank Atlanta condensed the findings into a five-page quarterly report for discussions with the bank’s board of directors.

Legend Aggregate Risk Score - 95 - 100 90 - 94.9

- 85 - 89.9 - 80 - 84.9 - Less than 80

Individual Risk Level

Acceptable At Risk Unacceptable

Increasing Risk Stable Risk Decreasing Risk

- n/a

Internal Documents

BP Budget Plan CP Capital Plan ICP Incentive Comp Plan IP Internal Bank Policies

Board Committees

AC Audit Committee CC Credit Committee ERC Enterprise Risk Committee FC Finance Committee GCC Governance & Compensation Committee

Yoo says that ERM, when done right, can help banks better understand and articulate how they manage risks across their entire enterprise, which then helps banks, as one additional benefit, build better relationships with their regulators.

He encourages shareholder banks to come to FHLBank Atlanta for sharing of best practices. “There are a lot of ideas and practices we can suggest to members that initially, they wouldn’t have thought we could provide,” he observes. “It’s nice to see how the leadership at our bank embraces this idea that we’re all in this together and how well our community bank members manage risk is also an important way we can sustain long-lasting Continued on page 14

Fourth Quarter 2014 | 13

Risk Appetite Key Risk Indicators as of March 2013

Sample Metrics / Data 1. Capital Adequacy 1.a. Achieve satisfactory CAMELS ratings for Capital Adequacy

3. Credit Risk 1

3

3.a. Achieve satisfactory CAMELS ratings for Asset Quality

4

1

3

10.9

10.7

3.b. Maintain Non-Performing Assets / Assets within acceptable level (%)

1.b. Maintain Total Equity / Total Assets within acceptable limits (%)

17.5 1.c. Maintain capital ratios above regulatory capital requirements (%)

6

10.3

5.6

4

6

5.9

17.7

6.0

3.c. Maintain Non-Performing Loans / Loans within acceptable level (%)

8

10.4

155

1.d. Maintain Leverage Ratio within acceptable levels (%)

4

5.5

20

159.6

3.d. Maintain ALLL within acceptable level ($000s)

30

379.5

378.2

2. Market Risk / Earnings 2.a. Achieve satisfactory CAMELS ratings for Sensitivity to Market Risk

1

3

4

.12 2.b. Maintain Duration Gap between acceptable levels with up/down 100, 200, 300 bps rate shocks (years)

-8

3.e. Maintain CRE Loans / Total RBC within acceptable level (%)

300

400

3.f. Maintain Residential 1-4 within limits to RBC (%)

100

200

3.g. Maintain C&I within limits to RBC (%)

100

150

.12

-7

+7

+8

4. Liquidity

2.c. Maintain EVE above acceptable levels with up/down 100, 200, 300 bps rate shocks

4.a. Achieve satisfactory CAMELS ratings for Liquidity

0.99

0.89 2.d. Maintain Interest Expense/ Avg. Assets within acceptable limits (%)

1

3

7.0 4.b. Maintain satisfactory Net Non-Core Funding Dependence (%)

33.1

32.2

4

9.5

5.8

2.e. Rate-sensitive Assets/Assets (%)

63.7 2.f. Rate-sensitive Liabilities/Assets (%)

4.d. Maintain satisfactory FHLB funding availability

Legend Green

Risk is within acceptable threshold

Yellow

Increase in risk as threshold has been breached

Red

Increase in risk as threshold has been breached

28.6 Current Level 12 - month Avg

relationships together.” However, Yoo adds that the intent is not to eliminate all risk, since a certain level of risk is essential to profitability. “Our job with ERM is to help management and the board determine the right balance and that balance changes regularly; some categories that were important in years prior might decline in importance today, and vice versa.”

Cyber-security Risk Of equal concern to banks is data security. At a recent national American Bankers Association (ABA) meeting, bankers polled about their top three concerns consistently put cyber-security and cyber-fraud at the top of the list.

FHLBank Atlanta has examined data security separately from enterprise risk, but as a significant component to, risk appetite.

Bennett cites two types of companies: One that is aware that its computer system has been hacked, and a second that is unaware its system has been hacked. The frightening statistic: a computer breach took an average of 229 days to discover in 2013, according to Mandiant’s annual “M-Trends” report. Bennett explains that the damage to a bank’s IT infrastructure is not the biggest expense. “It’s the recovery afterward,” he says.

Bennett goes on to explain that cybercriminals are increasingly targeting smaller businesses – those that haven’t made security investments and who are often less skilled to deal with hackers. Small to medium-sized businesses (most of whom are customers of retail banks) made up 61 14 | The Maryland Banker

7.0

4.c. Maintain satisfactory Net Short-Term Liabilities / Assets (%)

63.9

4.e. Maintain acceptable liquidity ratios (%) 4.f. Maintain acceptable levels of pledged securities

29.4

30.6

31.5

percent of all breaches in 2013, up from 50 percent in 2012 ,with financial firms accounting for 34 percent of all cyberattacks in 2013, according to Symantec Corp.’s “Internet Security Threat Report 2014.”

“Staff training, updated patching of servers and complex passwords all contribute to bank security, as do background checks on vendors,” Bennett says.

Denial of service attacks, a nemesis of retailers, bring down a company’s IT system with a flood of external communication requests that disables the server. “It’s a diversion tactic,” Bennett cautions. “To fix the network problem, the IT staff must disable security firewalls, opening up a window of vulnerability through which hackers can enter.”

‘POP’ Go the Weasels Doug Johnson, senior vice president, risk management policy at the ABA, cites the wide scope of point-of-purchase (POP) risk outside of a bank’s purview. Despite that, retail banks can be responsible for reimbursing customers for loss. “What we see generally is that financial institutions are getting pennies on the dollar” from retailers after a breach for costs the banks have incurred for card, call center, maintenance, fraud monitoring, to clean up after the breach, he says.

Compounding this is consumers’ move away from credit to debit transactions, to manage short-term budgets and control interest and fees. Because fraudulent debit

transactions are harder to catch, contest and resolve than fraudulent credit charges, merchants dispute honoring chargebacks by contending they have a signature on file, which is most commonly the case with credit cards. Additionally, any particular retail transaction flagged by the consumer is likely not the initial exposure to a breach.

The ABA’s view is that those responsible for a breach should pay for the process to resolve breaches, an expense that now is largely borne by banks.

Due to a lack of a federal standard to date, most states, including Maryland, have drafted state-specific laws for notifying businesses and consumers about data breaches. The ABA is advocating for a national standard.

In the meantime, Johnson indicates, consumers can take the following steps to protect against fraud: • Discontinue paper statements to prevent risk of mailbox theft.

• Monitor account activity using online banking.

• Utilize bank alerts, online or through mobile phones to notify of transactions over a certain amount or outside the customer’s regular region.

As POS security tightens up, the ABA thinks that fraud will navigate toward online, so consumers signing up to receive alerts is an essential part of good computer hygiene. Consumers should also keep antiviral protection up to date, refrain from clicking on unknown contacts, and exercise caution about online retailers.

“The most important things banks can do is to say customers have part responsibility for security but also that the bank has their back,” monitoring accounts to protect the online environment to the greatest extent possible, Johnson says.

The larger question, he adds, is establishing a universal security standard to determine responsibility after a breach.

The ABA’s position is that the current Gramm-Leach-Bliley law requires a variety of customer information and notification requirements that the financial industry sees as its standard. However, it’s not surprising that retailers have a different view. The ABA advocates that a way must be found to raise standards to a level that non-bank entities in the payment system must abide by.

Technology Versus Due Diligence A move away from magnetic strip card technology to the more-secure EMV chip and pin technology now utilized in Europe is one piece of an overall security upgrade. “It’s the static number on the card that’s getting us in trouble,” Johnson says – the number embossed on the face of the card that can be used for multiple transactions. Chip technology assigns a random number to a particular transaction, rendering the static number useless, unless criminals use the card at an outlet that is not-chip enabled – in which case the transaction will go through.

Effective in 2015, if a bank puts a chip card in place and a retailer has not chip-enabled their point-of-sale devices, the retailer cannot charge a fraudulent transaction conducted on one of those devices to the bank.

Johnson notes that while retailers in general are wary of the cost of conversion, many smaller retailers now use iPads which are chip-enabled, an easier technology for a small enterprise than a larger one with many more point-of-sales points. Today, the cost

to convert is $1,000 to $2,000 per point-ofsale card device; on the card side, chip card costs have come down appreciably over the last few years, but is still expensive for an enterprise that has to issue millions of new cards. So tightened security will come in fits and starts, and the starts can be incremental.

Some consumers may already have chip-enabled cards; some institutions are getting an early jump on providing them as the customers’ magnetic strip cards expire, Johnson notes. Therefore, the 2015 deadline won’t be an all-or-nothing proposition; some banks will be fully compliant by then, while others are still working toward it.

Here Come the Domain Names We’re about to go through an Internet transition that surpasses the national designation of landline telephone area codes two generations ago. The expansion of the number of domain names, which takes effect next year, is the result of the handing over of responsibility from the National Telecommunications and Information Administration to the Internet Corporation for Assigned Names and Numbers (ICANN).

The ABA has jumped on this issue as well, advocating that the banking industry, rather than outsiders, should control the domain name .bank, and Johnson recommends that banks should muster marketing and IT staff together from a protection standpoint. For more information on the subject, see www.aba.com/Issues/ Index/Pages/DotBankDomain.aspx.

What’s on the Menu?

“Appetite for Risk” may seem counterintuitive for financial institutions postcrisis. Many financial products that used to be at the top of the menu became unavailable after the crash. Now that banks are cautiously re-entering higherrisk instruments, such as higher-interest rate credit cards for those with weaker credit scores, or longer-term auto loans, it’s time to determine just which of these dishes will sit well with banks and their boards. Just as important is the need for vigilance from within, particularly with the growing vulnerability of mobile payment systems to malware introduced on social media sites.

■

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NorcomCorrespondent.com Fourth Quarter 2014 | 15

Council of Professional Women in Banking and Finance’s

2014 Philanthropy Initiative

Used Shoe Drive Brings New Shoes to Maryland Families Bank employees, clients and community 17). The Council of Professional Women in leaders across Maryland donated their used Banking and Finance partnered with M&T shoes to help microenterprises in Haiti, Bank and The Family Tree for “15 for yet the 2014 Philanthropy Initiative came Families.” Representatives from the Council full circle this summer. One thousand new of Professional Women in Banking and Skecher’s Clogs were sent to the MBA in Finance who volunteered to help with the June to donate to a Maryland nonprofit distribution of the new shoes were: Karen organization as a result of the MBA Council Stiltner, Vice President - Relationship of Professional Women in Banking and Manager of M&T Bank, Irvina Mallory, Finance’s used shoe drive.

Senior Vice President, Private Banking The 34 banks participating in the used Officer of The Harbor Bank of Maryland, shoe drive nearly tripled their goal of Capital One Bank’s Branch Managers collecting 25,000 pairs of used shoes. When Crystal Carter and Barbara Weddle; the campaign ended on May 1, 2014 63,270 Bob DeAlmeida, Immediate Past MBA pairs of used shoes had been collected. So, Chairman, and President & CEO of rather than deploying 500 pairs of new Hamilton Bank; Maryland Bankers shoes to a Maryland nonprofit, 1000 pairs of Association’s President & CEO, Kathleen new shoes arrived in our state.

Murphy and Cindy Gentilcore, Chief The first new shoe distribution event Operating Officer. was held on June 10-11 at Westport The first night was a registered event GF_Banker'sNewsletter 1/10/14 8:30 AM Page 1 Academy in Baltimore (see photos on page for students and their families which

The leaders in providing legal advice to Maryland’s financial services industry

D. Robert Enten Carla Stone Witzel David S. Musgrave Marjorie A. Corwin Peter B. Rosenwald, II Christopher R. Rahl Brian L. Moffet Andrew D. Bulgin John C. Morton Victor A. Kwansa Travis W. Dalton Attorneys at Law 233 E. Redwood Street n Baltimore, MD 21202 410-576-4000 n www.gfrlaw.com

16 | The Maryland Banker

highlighted families playing together, one of four often-missed every day family activities: 1) Eating together; 2) Playing together; 3) Working together; and 4) Reading together.

The evening included dinner, activities and games, and at the end of the evening the students and their siblings each received a new pair of shoes. The additional new shoes were distributed the following school day to students who were not in attendance at “15 for Families.” A total of 262 pairs of news shoes were distributed at Westport Academy.

“The families and I are very appreciative for the AWESOME Family Night you all made happen. We got AMAZING feedback regarding every aspect of the night (the games, the shoes, the dinner, the opportunity to mix and mingle with other families …). It was the talk of the week, and we can identify our students in the neighborhood because of the shoes :). We thank you all again and look forward to a continued partnership,” said Melody M. Locke, principal at Westport Academy The second new shoe distribution took place between June 23 and August 2014 at the Bridges Summer Camp at St. Paul’s in Baltimore. The weeks-long summer camp is a program for Baltimore City children (third- and fourth-graders) who are mentored by St. Paul’s students as a graduation requirement. The children are paired up with the St. Paul student counselors who continue to mentor them through the school year. Again, the Council of Professional Women in Banking and Finance worked with M&T Bank on this event. A total of 242 pairs of new shoes were distributed at the Bridges Summer Camp at St. Paul’s in Baltimore.

The remaining 500 pairs of new shoes have been sent to First United Bank & Trust in Oakland to deploy in Garrett County. The council thought it only fitting that half of the new shoes be distributed by First United in recognition of the bank’s amazing effort in collecting 34,151 pairs of used shoes.

■

We recognize and thank the following banks and organizations for participating in the Used Shoe Drive and making it possible for MBA’s Council of Professional Women in Banking and Finance to lead, nurture and inspire children in Maryland – and to begin to build their own story by the many ways they will walk in their new pair of shoes!

Bay-Vanguard Federal Savings Bank

Harford Bank

Calvin B. Taylor Banking Company

Homewood Federal Savings Bank

Capital One Bank

Howard Bank

Chesapeake Bank of Maryland

M&T Bank

Cliber Compliance LLC

Madison Square Federal Savings Bank

Community Bank of the Chesapeake

Maryland Bankers Association

Congressional Bank

Middletown Valley Bank

EagleBank

North Arundel Savings Bank

Easton Bank & Trust

Old Line Bank

Fairmount Bank

Queenstown Bank of Maryland

Farmers & Merchants Bank

Sandy Spring Bank

Federal Reserve Bank of RichmondBaltimore Branch

Slavie Federal Savings Bank

First Shore Federal Savings and Loan Association

The Columbia Bank

First United Bank & Trust Frederick County Bank Hamilton Bank

The Bank of Glen Burnie The Harbor Bank of Maryland The National Bank of Cambridge Washington First Bank Wells Fargo Bank

Fourth Quarter 2014 | 17

News & Notes Members on the Move

Patrick van der Ham

Lena Marcellino

Taitia L. Elliott, senior vice president of commercial and retail banking at Frederick County Bank, graduated from the American Bankers Association (ABA) Stonier Graduate School of Banking and the Executive Leadership Program at The Wharton School of Business in Philadelphia, PA. Stonier is ABA’s national graduate school of banking, an intensive threeyear program for banking executives, and The Wharton School is worldrenowned for its academic strengths.

Middletown Valley Bank (MVB) welcomes two new team members, Emily Radaker, as controller, and Susan Grove, the manager for the Middletown Branch.

Radaker was previously employed at the accounting firm of Smith, Elliott & Kearns in Hagerstown for many years.

She has experience with MVB in both the external audit and internal audit areas.

Grove, a Hagerstown native, brings a wealth of experience to the bank’s team, with over 11 years in the Washington County banking market.

Monument Bank promoted Patrick van der Ham to executive vice president and director of business development. He

From left: CNB Chairman of the Board Clyde V. Kelly III; CNB President & CEO F. Winfield Trice Jr.; CNB Vice Chairman Jeffrey E. Thompson; and outgoing Chairman Wm. Maurice Sanger.

has amassed over 30 years of experience in various aspects of the financial industry, most recently serving as business development senior vice president for the past eight years.

Scott Nicholson was appointed senior vice president and commercial team leader.

He brings 35 years financial experience specific to commercial and real estate endeavors, while managing portfolios upwards of $1 billion.

Lena Marcellino was promoted to senior vice president and director of marketing. She has over 20 years of experience in the financial industry at both the lending and corporate levels and has served as Monument Bank’s corporate secretary for the past nine years.

Severn Savings Bank appointed James Anthony as executive vice president and chief operating officer of the bank to oversee management of operations. He joins Severn Savings Bank from Chesapeake Bancorp and Chesapeake Bank & Trust Company in Chestertown, where he served as chief executive officer, president and director.

He has over 15 years of experience in the financial services industry. He has served in key bank management positions including senior lending officer, head of investment services, and chief information

officer, prior to his position at Chesapeake Bank & Trust.

CNB appointed Clyde V. Kelly III chairman of the board of CNB. Kelly has been a director of the bank since 2005. He is the president of Kelly Distributors, Easton, Maryland. Kelly is past president of the Kent Island Rotary, Prospect Homeowners Association and the Maryland Beer Wholesalers Association.

Outgoing chairman Wm. Maurice Sanger has been a director of the bank since 1992, serving as chairman for the past three years. He will continue to serve as a director of CNB. Jeffrey E. Thompson will serve as CNB’s vice chairman. Thompson has been the bank’s attorney since 1986 and a director of the bank since 2005. He is a partner with Thompson and Richard LLP, a law firm in Centreville, Maryland.

Andrea Tonietti has joined Computer Services Inc. (CSI) as its new business development director for the Northeast region. She has more than eight years of experience in Software as a Service (SaaS) technology for community financial institutions. Her expertise derives from working with multiple enduser products, including regulatory compliance software solutions.

■

Share Your News What’s happening in our business? Have news to share? Celebrating a milestone? Share your bank’s achievement. Send your news and photos to MBA’s Cindy Gentilcore at cgentilcore@mdbankers.com.

18 | The Maryland Banker

Members in the Community Maryland Bankers Participate in National Leadership Meeting MBA Chairman John Scaldara, chairman and CEO of The Columbia Bank, and MBA’s President & CEO Kathleen Murphy joined their counterparts from state bankers associations across the U.S. in the ABA’s annual Summer Leadership Meeting that was held in Colorado in July. Also participating were former MBA Chairmen Mike Middleton, executive chairman of the Community Bank of the Chesapeake, who serves on ABA’s Government Relations Council, and Bill Grant, chairman and CEO of First United Bank & Trust, who serves on ABA’s board of directors. The purpose was to bring together the industry’s state and national leadership to discuss legislative and regulatory priorities as well as to address issues of strategic importance to the industry.

Picture (L to R): MBA’s President & CEO Kathleen Murphy; Mike Middleton, executive chairman, Community Bank of the Chesapeake; ABA Chairman Jeff L. Plagge, president & CEO, Northwest Financial Corp., Arnolds Park, Iowa; John Scaldara, MBA Chairman and chairman and CEO, The Columbia Bank; Bill Grant, chairman and CEO, First United Bank & Trust; and BankPac Committee Chairman W. Wesley Hoskins, president & CEO, First Community Bank, Corpus Christi, Texas.

The Bank of Glen Burnie Celebrates 65 Years On Aug. 12, 2014, The Bank of Glen Burnie hosted its 65th anniversary celebration at Michael’s Eighth Avenue in Glen Burnie. Congratulations to The Bank of Glen Burnie on their service to the community for the past 65 years!

Hebron Savings Bank Receives Two Honors from the Salisbury Area Chamber The Salisbury Area Chamber of Commerce held their 94th Annual Banquet Ceremony this past April and awarded Hebron Savings Bank the Large Business of the Year Award; and named Greg Johnson, Hebron Savings Bank’s president and CEO, as Businessman of Year.

Arundel Federal Named Top Maryland Mortgage Lender Arundel Federal Savings Bank was named as the top mortgage loan producer in Maryland and the 26th largest mortgage loan producer in the U.S. in a new report from the Independent Community Bankers of America publication Independent Banker magazine.

PNC Receives Highest Recognition for Supporting Employees in the Guard or Reserve PNC was named a recipient of the Secretary of Defense Employer Support Freedom Award in recognition of its exceptional commitment to employees serving in the Guard or Reserve. The award is the highest honor given by the U.S. Department of Defense. Each year since 1996, a select group of companies receive the recognition for providing support to service members and their families that goes beyond what the federal law requires.

PNC is one of 15 winners this year, chosen from among nearly 2,900 nominations submitted by Guard and Reserve members. “It is a privilege to have veterans and military families working for PNC throughout Maryland and it is truly an honor to receive this prestigious award,” said Laura Gamble, regional president for Greater Maryland. “We take pride in our commitment to those who serve, which starts with actively recruiting military reservists and veterans, and retaining them through professional development, mentoring and networking groups. In addition, PNC provides support during deployment and while transitioning to the workforce upon returning home.”

Woodsboro Bank Celebrates 115 Years This past May, Woodsboro Bank, headquartered in Frederick, marked a milestone in celebrating 115 years of service. Congratulations to Woodsboro Bank on this achievement.

Welcome New Associate Members Banc Consulting Partners Embrace Home Loans Garland McPherson & Associates, Inc.

Lenders Risk Morris Manning & Martin LLP MyRecoverySite.com Inc. Continued on page 21

Fourth Quarter 2014 | 19

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News & Notes Garrett Appointed B-CC Chamber Chairman

Clyde Garrett

Monument Bank’s Vice President Clyde Garrett was appointed as the 2014-2015 chairman of the Bethesda-Chevy Chase (B-CC) Chamber of Commerce this past June.

Maryland Commissioner of Financial Regulation Accepts Position at United States Treasury Department After four years serving Maryland as the commissioner of financial regulation, Mark Kaufman accepted a position at the United States Treasury Department as a counselor in the Office of the Secretary. He will be assisting former Maryland commissioner and current Deputy Treasury Secretary Sarah Bloom Raskin. With Kaufman’s departure, serving as Maryland’s acting commissioner of financial regulation will be current Deputy Commissioner Gordon Cooley.

In Memoriam This past summer, the Maryland banking industry lost several great leaders who are remembered so fondly and will be greatly missed.

R. M. “Mike” Menzies, a longtime banker and civic leader, passed away on Tuesday, June 24, 2014.

Mike served as president and CEO of Easton Bank and Trust Company for R. M. Menzies 16 of the bank’s 21 years, serving in other executive positions at several Maryland banking institutions, including The First Bank of Frederick, The Talbot Bank of Easton and Maryland National Bank in Easton and in Annapolis.

Mike devoted many years to the Independent Community Bankers of America (ICBA), serving as chairman from 2009-2010 and was notably the first Marylander to head a national banking trade group. He served in this role during the financial crisis and spoke before the U.S. Senate Finance Committee, U.S. Senate Small Business Committee, the Federal Reserve Board of Directors, the U.S. Senate Subcommittee on FDIC Insurance and the Senate Judiciary Committee.

He had a long history of community involvement, serving as chair of the Talbot Hospice Foundation, where he served as a board member for six years and president for fiscal years 2007 and 2008. He became chairman of the hospice capital campaign in 2008 and, under his leadership, the Talbot Hospice raised $5.4 million to expand its services. He was also chair of the United Fund of Talbot County; a director of the MidShore Community Foundation; a member of the Rotary Club of Easton; a member of the

Easton YMCA Investment Committee; and a member of the Maryland Institute of CPAs. In addition, he was a 1999 graduate of Leadership Maryland, where he served as treasurer.

for a year at Gaithersburg High School, he returned to Poolesville School, where he was principal from 1947 to 1952, when he was named superintendent of Queen Anne’s County schools. He oversaw the peaceful integration Susquehanna Bank of that county’s schools and played a pivotal and the Hagerstown role in the community college movement in community lost a dear the state. friend, Abbud “Bud” In 1967, Dr. Rhodes was appointed dean Dahbura, who passed away of continuing education at Anne Arundel on June 24, 2014. For many Community College. He remained in that job years, Bud attended MBA’s until retiring in 1973.

Abbud Dahbura Annual Convention with Dr. Rhodes was a founding member of Susquehanna Bank; he exuded happiness and Chesapeake College and served several terms changed the lives of all he knew. Bill Reuter, on its board. In 2013, the college presented chairman and CEO of Susquehanna Bancshares him its “Pride of the Peake” award. He was Inc. said about Bud, “He was the poster a member of the board of the Chesterwye child for the American Dream. I will miss his Center Inc. and director and treasurer of its humor, friendship and charm. A real loss to foundation. He served as Queenstown mayor Hagerstown and humanity in general.” for two years, a member of the town board for five years, and was a director of Easton Dr. Harry C. Rhodes, Memorial Hospital, where he also served on former director at various committees.

Queenstown Bank of Since 1952, Dr. Rhodes had lived in a home Maryland for 32 years, that overlooked Queenstown Creek and the passed away on Monday, Chester River, where in 1962 he completed a July 14, 2014 at the age of history of the Queenstown Bank of Maryland, 99. which was updated in 1980. He was a Dr. Harry C. Rhodes He began his career contributing author in 1976 of the history of as a teacher in 1935 at Poolesville School in St. Peter the Apostle Roman Catholic Church, Montgomery County, and five years later where he was an active communicant. In 1985, was the school’s vice principal. During World he authored “Queenstown: A Social History of War II, he enlisted in the Navy and served a Small American Town,” and “A Country Boy aboard minesweepers in the South Atlantic Grows Up.” Three years later, he completed a and Pacific until being discharged in 1946 history that traced the Rhodes family over 11 with the rank of lieutenant. After teaching generations.

■ Fourth Quarter 2014 | 21

SPECIAL EVENTS

Mar yland Bankers Association Professional Development Calendar

Sept. 30 – Oct. 1 Washington Visit Oct. 15

2014 FDIC Directors & Trustee College Cambridge

Nov. 5

BankNext (see next page for more details)

Nov. 19

2014 FDIC Directors & Trustee College – Ellicott City

A Local ABA Training Provider

Dec. 10–11 CFO & Financial Management Forum Jan. 9, 2015 “First Friday” Economic Outlook Forum

SEMINARS, WEBINARS, SCHOOLS, AND ONLINE TRAINING Compliance

Oct. 14

Oct. 15 Executive Management & Directors

Oct. 7 & 9 Enhancing Shareholder Value through Corporate Oct. 16

Transactions (GSB)

Oct. 15 2014 FDIC Directors & Trustee College – Cambridge Oct. 17 Oct. 22 Risk Management for Community Banks (GSB)

Nov. 4 Survival of the Fittest! New World Strategies for Every Oct. 20–22

Community Bank to Ponder (GSB) Oct. 20

Board Succession: Best Practices (GSB)

Nov. 5 Survive and Thrive: Six Strategic “Must Dos” and Best Oct. 21

Practice Strategies (GSB) Oct. 22 Nov. 19 2014 FDIC Directors & Trustee College – Ellicott City

Finance Oct. 23 Nov. 10 Managing Interest Rate Risk (AIB)

Dec. 10–11 CFO & Financial Management Forum

General Banking Oct. 27–28 Oct. 6 Law & Banking: Principles (AIB) Oct. 27

Principles of Banking (AIB)

Oct.14 General Accounting (AIB) Oct. 28

Law & Banking: Applications (AIB)

Oct.20 Principles of Banking (AIB) Oct. 29 Nov. 3 Principles of Banking (AIB)

Nov. 10 General Accounting (AIB)

Money & Banking (AIB) Oct. 30 Dec. 1 Economics for Bankers (AIB)

Law & Banking: Principles (AIB)

Principles of Banking (AIB) Nov. 3 Dec. 8 General Accounting (AIB)

Nov. 4 HR Management Nov. 5 Oct. 2–3 Strategic HR Forum (GSB)

Oct.17 Managing Generations in Today’s Workplace (GSB)

Nov. 5 Win the Talent War! Robust Talent Management and Nov. 6

Holistic Succession (GSB)

Insurance

Oct. 1 Ethics, Insurance Fraud & Anti-Money Laundering – Nov. 10–11

Bethesda Nov. 11

E&O, Identity Theft & Risk Management – Glen Burnie

Oct. 2 Ethics, Insurance Fraud & Anti-Money Laundering – Glen

Burnie & Towson

E&O, Identity Theft & Risk Management – Bethesda Nov. 12 Oct. 7 Ethics, Insurance Fraud & Anti-Money Laundering –

Columbia Nov. 13 Oct. 8 E&O, Identity Theft & Risk Management – Columbia &

Towson Nov. 14 Oct. 9 Ethics, Insurance Fraud & Anti-Money Laundering Nov. 17–18

Prince Frederick & Towson Nov. 17 Oct. 10 E&O, Identity Theft & Risk Management – Prince

Frederick Nov. 18 Oct. 14 Ethics, Insurance Fraud & Anti-Money Laundering –

Easton Nov. 19

Dec. 15

CRCM Online Review (AIB)

Long Term Partnership Care, Flood Insurance & Mold Risks – Towson E&O, Identity Theft & Risk Management – Glen Burnie, Easton & Towson Ethics, Insurance Fraud & Anti-Money Laundering – Glen Burnie, Prince Frederick & Towson E&O, Identity Theft & Risk Management – Prince Frederick Property & Casualty Pre-Licensing – Towson Ethics, Insurance Fraud & Anti-Money Laundering – Waldorf E&O, Identity Theft & Risk Management – Waldorf Ethics, Insurance Fraud & Anti-Money Laundering – Annapolis E&O, Identity Theft & Risk Management – Glen Burnie Ethics, Insurance Fraud & Anti-Money Laundering – Glen Burnie E&O, Identity Theft & Risk Management – Annapolis Life & Health Pre-Licensing – Towson Ethics, Insurance Fraud & Anti-Money Laundering – Bowie E&O, Identity Theft & Risk Management – Bowie Long Term Partnership Care & Annuities – Glen Burnie Ethics, Insurance Fraud & Anti-Money Laundering – Rockville E&O, Identity Theft & Risk Management – Towson Ethics, Insurance Fraud & Anti-Money Laundering – Towson E&O, Identity Theft & Risk Management – Rockville Ethics, Insurance Fraud & Anti-Money Laundering – Cumberland E&O, Identity Theft & Risk Management – Cumberland Ethics, Insurance Fraud & Anti-Money Laundering – Columbia E&O, Identity Theft & Risk Management – Towson Ethics, Insurance Fraud & Anti-Money Laundering – Towson E&O, Identity Theft & Risk Management – Columbia Life & Health Pre-Licensing – Glen Burnie Ethics, Insurance Fraud & Anti-Money Laundering – Largo Long Term Partnership Care, Flood Insurance & Mold Risks – Towson E&O, Identity Theft & Risk Management – Glen Burnie, Largo & Towson Ethics, Insurance Fraud & Anti-Money Laundering – Glen Burnie, Towson & Waldorf E&O, Identity Theft & Risk Management – Waldorf Life & Health Pre-Licensing – Glen Burnie & Rockville Ethics, Insurance Fraud & Anti-Money Laundering – Prince Frederick E&O, Identity Theft & Risk Management – Prince Frederick Ethics, Insurance Fraud & Anti-Money Laundering – Salisbury

Nov. 19 Nov. 20

Nov. 24 Nov. 25

Nov. 26 Dec. 1–3 Dec. 1 Dec. 2 Dec. 3

Dec. 4

E&O, Identity Theft & Risk Management – Glen Burnie E&O, Identity Theft & Risk Management – Salisbury Ethics, Insurance Fraud & Anti-Money Laundering – Glen Burnie Ethics, Insurance Fraud & Anti-Money Laundering – Rockville E&O, Identity Theft & Risk Management – Rockville Long Term Partnership Care & Annuities – Glen Burnie E&O, Identity Theft & Risk Management – Towson Property & Casualty Pre-Licensing – Glen Burnie Ethics, Insurance Fraud & Anti-Money Laundering – Hagerstown E&O, Identity Theft & Risk Management – Hagerstown Ethics, Insurance Fraud & Anti-Money Laundering – Bethesda E&O, Identity Theft & Risk Management – Towson Ethics, Insurance Fraud & Anti-Money Laundering – Towson E&O, Identity Theft & Risk Management – Bethesda

E&O, Identity Theft & Risk Management – Glen Burnie

Lending Oct. 6

Analyzing Financial Statements (AIB)

Intro to Agricultural Lending (AIB)

Oct. 7 & 9 Ag Lending in a New Business Climate (GSB) Oct 14, 21 & 28

Commercial Real Estate Appraisals (GSB)

Oct. 16

Loan Underwriting Mistakes (GSB)

Oct. 20

Consumer Lending (AIB)

Oct. 27

Commercial Lending (AIB)

Intro to Mortgage Lending (AIB)

Nov. 3

Analyzing Financial Statements (AIB)

Nov. 18 & 25

A Practical Guide to Consumer Lending (GSB)

Dec. 1

Analyzing Financial Statements (AIB)

Consumer Lending (AIB)

Sales & Marketing Oct. 6

Marketing Financial Services (AIB)

Oct. 27

The First 3 Calls on a Prospect (GSB)

Security & Technology Oct. 30

The Evolution of Social Technology (GSB)

Nov. 12

Security Awareness and Social Engineering (GSB)

Trust Oct. 22

IRA Beneficiary Distributions (GSB)

Oct. 29

IRA Reporting (GSB)

Nov. 3

CFTA Online Review (AIB)

Nov. 5

Roth IRA Distributions (GSB)

Nov. 12

Establishing and Amending IRAs (GSB)

Nov. 19

Understanding and Processing Transfers and Rollovers (GSB)

Dec. 1

Basic Administrative Duties of a Trustee (AIB)

Dec. 3

IRA Contributions (GSB)

Dec. 10

IRA Required Minimum Distributions (GSB)

Dec. 17

Traditional IRA Distributions (GSB)

For detailed and updated information on all professional development programs, visit the Calendar section of the MBA’s website at www.mdbankers.com.

22 | The Maryland Banker

EXPLORING THE FUTURE OF

BANKING EXPLORING THE FUTURE OF BANKING

WHEN:

Presented by

Wednesday, November 5, 2014 8:00 AM - 2:45 PM

WHERE: BWI Airport Marriott 1743 W. Nursery Rd. Linthicum, Maryland

You’re invited to participate in BankNext, the Capital Region’s premier exposition focused on emerging opportunities and innovative solutions for the banking industry.

REGISTER TODAY! www.banknextexpo.com

SPONSORSHIP OPPORTUNITIES AVAILABLE! Call 617-896-5307 or email banknext@thewarrengroup.com

INTERESTED IN EXHIBITING? Call 617-896-5307 or email banknext@thewarrengroup.com

BankNext is the paramount conference and tradeshow for bankers in Maryland and the entire Capital area. Attendees of this one-day show enjoy an exciting and thought-provoking program and prime opportunities to reach out to leaders in the community banking industry.

At BankNext you will interact with C-level executives, peers, and vendors. During educational sessions, you will hear from national speakers who are paving the way for the future of banking policies.

Helping you achieve your branch transformation goals to satisfy the custom in every customer.

The in-branch demands of your customers are various. Some demand simple transaction speed. ® Others require extensive personal attention. Diebold Opteva Branch Performance SeriesTM terminals were designed to provide the flexibility to respond along the entire spectrum of these needs. In the process, you can achieve your branch transformation goals. Your customers are satisfied. Your tellers are freed up to create higher-value sales. It’s another example of how Diebold is satisfying the personal tastes of both customers and the branches that serve them.

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

requests@diebold.com www.diebold.com